Section 1867 in The Gresham And Craven Of Indian (Private) Limited (Acquisition And Transfer Of Undertakings) Act, 1977
1867.
Statement of Objects and Reasons. - Messrs. Gresham and Craven of India (Private) Limited was a private company wholly owned by the Westinghouse Brake and Signal Company Limited of U.K. and its nominee. For various reasons including mismanagement, the company started incurring losses from 1966 and ultimately it had to he closed down on the 6th January 1971. It remained closed for three months and then the Government of India. after investigation, took over the management of the company on the 31st March, 1971, under the provisions of Section 18A of the Industries (Development and Regulation) Act, 1951. The factory was reopened on the 12th April, 1971. The company is mainly engaged in the manufacture of rolling stock components of the Indian Railways, such as vacuum brake equipment, ejectors, steam valves, vacuum exhausters etc. After takeover of the management by the Central Government, there had been considerable progress in the production performance of the company. The actual production for the year 1976-77 had been of the order of Rs. 177 lakhs. After careful consideration of the whole matter, the Government decided to acquire the undertakings of this company.At the time of takeover of the management of the company, it was clear that it was not possible for the company to meet all its past dues. Accordingly, moratorium was imposed on the 14th August. 1972 in accordance with the provisions of Section 18FB of the Industries (Development and Regulation) Act, 1951, on realisation of the dues from the company. The period of this moratorium which cannot exceed five years in aggregate, expired on the 13th August, 1977. since early action was necessary, the undertakings of the company were acquired by promulgation of the Gresham and Craven of India (Private) Limited (Acquisition and Transfer of Undertakings) Ordinance, 1977 on the 30th September, 1977.The Bill seeks to replace the said Ordinance. - Gazette of India, 21-11-1977, Part II, Section 2, Ext., page 727.[20th December, 1977.]An Act to provide for the acquisition and transfer of the undertakings of Messrs.Gresham and Craven of India (Private) Limited for the purpose of ensuring the continuity of production of goods which are vital to the needs of the Railways and of the industries manufacturing engineering products and for matters connected therewith or incidental thereto.Whereas Messrs. Gresham and Craven of India (Private) Limited were engaged in the manufacture and production of components of rolling stock like vacuum brake equipment, ejectors, steam brake valves and vacuum exhausters and the like needed by the Railways and the industries manufacturing engineering products;AND WHEREAS as a result of the losses suffered by the Company, there had been a closure of the works owned by the Company;AND WHEREAS for the purposes of speedily bringing the closed works of the Company into operation, the management of the undertakings of the Company was taken over by the Central Government for a limited period under section 18A of the Industries (Development and Regulation) Act, 1951 (65 of 1951.);AND WHEREAS it is necessary to acquire the undertakings of the Company to ensure the continuance of the production of goods which are vital to the needs of the Railways and of the industries manufacturing engineering products;BE it enacted by Parliament in the Twenty-eighth Year of the Republic of India as follows :-
