Section 1434 in Bengal Chemical And Pharmaceutical Works Limited (Acquisition And Transfer of Undertakings) Act, 1980
1434.
Object and Reasons The Bengal Chemical and Pharmaceutical Works Limited (BCPW), Calcutta, were engaged in the manufacture of drugs and pharmaceuticals, chemicals and home products which were essential to the needs of the country. The Company began to show steady decline and the commercial activity of the Company stagnated from 1969-70 to 1971-72. Though it showed an upward trend till 1974-75, it started declining thereafter. The Company was also being mismanaged. After investigation into the affairs of the Company through an Investigation Committee, the management of the Company was taken over on the 15th December, 1977 by the Central Governmeny acting under the Section 18A of the Industries (Development and Regulation) Act, 1951. A Board of Management was appointed. It is necessary to acquire the undertakings of the Company for the purpose of reconstruction and rehavilitating it so as to subserve the interests of the general public by the augmentation of production and distribution of different varieties of pharmaceuticals and chemicals which are essential to the needs of the general public.[12th December, 1980]An Act to provide for the acquisition and transfer, in the public interest, of the undertakings of the Bengal Chemical and Pharmaceutical Works Limited, for matters connected therewith or incidental thereto.WHEREAS the Bengal Chemical and Pharmaceutical Works Limited were engaged in the production and distribution of articles specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 (65 of 1951), namely, chemicals (other than fertilizers), drugs, pharmaceuticals and other products, which are essential to the needs of the general public;AND WHEREAS the Central Government, being of opinion, after an investigation into the affairs of the company, that the affairs of the company have been managed in a manner highly detrimental to the public interest, had authorised, under section 18A of the Industries (Development and Regulation) Act, 1951(65 of 1951), a body of persons to take over the management of the Company;AND WHEREAS for the purpose of reconstructing and rehabilitating the undertakings owned by the Company so as to subserve the interests of the general public by the augmentation of production and distribution of different varieties of chemicals (other than fertilizers), drugs, pharmaceuticals and other products which are essential to the needs of the general public and to secure the continued supply thereof, it is necessary to acquire the undertakings of the Company;Be it enacted by Parliament in the Thirty-fifth Year of the Republic of India as follows:-
