(1) Tins Ordinance may be called the Smith, Stanistreet and Company Limited (Acquisition and Transfer of Undertakings) Ordinance, 1977.
(2) It shall come into force on the 1st day of October, 1977.
2. In this Ordinance, unless the context otherwise requires,—
(a) "appointed day" means the 1st day of October, 1977 ;
(b) "Company" means the Smith, Stanistreet and Company Limited, being a company as defined m the Companies Act, 1956 and having its 1 of 19-1'6- registered office at 18, Convent Road, Caicutta-700014 ;
(c) "Commissioner" means the Commissioner of Payments appointed under section 14 ;
(d) "notification" means a notification published in the Official Gazette ;
(e) "prescribed" means prescribed by rules made under this Ordinance , (/) "specified date" means such date as the Central Government may, for the purposes of any of the provisions of this Ordinance, by notification specify and different dates may be specified for different provisions of this Ordinance ,
(g) words and expressions used herein and not defined but defined in the Companies Act, 1956 have the meanings respectively assigned to i of 1956.
them in that Act
CHAPTER II ACQUISITION AND TRANSFER OF THE UNDERTAKINGS OF THE COMPANY
3. On the appointed day, the undertakings of the Company, and the right, title and interest of the Company in relation to its undertakings, shall, by virtue of this Ordinance, be transferred to, and shall vest in, the Central Government.
4 (7) The undertakings of the Company shall be deemed to include all assets, rights, lease-holds, powers, authorities and privileges, and all property, movable and immovable, including lands, buildings, workshops, stores, instruments, machinery and equipment, cash balances, cash on hand, reserve funds, investments, book debts and other rights and interests in, or arising out of, such property as were immediately before the appointed day in the ownership, possession, power or control of the Company, whether within or outside India, SEC. 1] THE GAZETTE OF INDIA : EXTRAORDINARY 361 and all books of account, registers and all other documents of whatever nature relating thereto.
(2) All properties as aforesaid which have vested in the Central Government under section 3 shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, hen and all other encumbiances affecting it, and any attachment, injunction oi decree or order of any court restricting the use of such property in any manner or appointing any receiver in respect of the whole or any part of such property shall be deemed to have been withdrawn
(3) Every mortgagee of any property which has vested under this Ordinance in the Central Government and every person holding any charge, lien or other interest in, or in relation to, any such property shall give, within such time and in such manner as may be prescribed, an intimation to the Commissioner of such mortgage, charge, lien or other interest
(4) For the removal of doubts, it is hereby declared that the moitgagee of any property referred to in sub-section (3) or any other person holding any charge, hen or other interest in, or in relation to, any such property shall be entitled to claim, in accordance with his rights and interests, payment of the mortgage money or other dues, in whole or in part, out of the amount specified in section 7, and also out of the monies determined under section 8, but, no such mortgage, charge, lien or other interest shall be enforceable against any property which has vested in the Central Government.
(5) If on the appointed day, any suit, appeal or other proceeding by or against the Company, of whatever nature in relation to any property which has vested in the Central Government, under section 3, is pending, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason of the transfer of the undertakings of the Company or of anything contained in this Ordinance, but the suit, appeal or other proceeding may be continued, prosecuted or enforced by or against the Company.
5. ( /) Every liability of the Company in respect of any period prior to the appointed day, shall be the liability of the Company and shall be enforceable' against it and not against the Central Government, or, where the undertakings of the Company are directed, under section 6, to vest in a Government company, against that Government company.
(2) For the removal of doubts, it is hereby declared that,—
(a) save as otherwise expressly provided in this Ordinance, no liability of the Company in relation to its undertakings in respect of any period prior to the appointed day, shall be enforceable against the Central Government, or, where the undertakings of the Company are directed, under section 6, to vest in a Government company, against that Government company ;
(b) no award, decree or order of any court, tribunal or other authority in relation to the undertakings of the Company, passed after the appointed day, in respect of any matter, claim or dispute, which arose before that day, shall be enforceable against the Centra] Government, or, where the undertakings of the Company are directed, under section 6, to vest in a Government company, against that Government company ;
(c) no liability incurred by the Company before the appointed day, for the contravention of any provision of law tor the time being in force, Central Government or Government company not to be liable for prior liabilities 362 THE GAZETTE OF INDIA EXTRAORDINARY [PART II- Power of Central Government to direct vesting of the undertakings of the Company in a Government company Payment of amount.
Payment of further amount.
shall be enforceable against the Central Government, or, where the undertakings of the Company are directed, under section 6, to vest in a Government company, against that Government company.