FUTWAH-ISLAMPUR LIGHT RAILWAY LINE (NATIONALISATION) ACT 1985
EmailTHE FUTWAH-ISLAMPUR LIGHT RAILWAY LINE (NATIONALISATION) ACT, 1985
ACT No. 83 OF 1985
30thDecember, 1985
An Act to provide for the acquisition, in the public interest, ofthe undertakings of the Futwah-islampur Light RailwayCompany Limited in relation to the Futwah-IslampurLight Railway Company Limited are in a dilapidated condition
WHEREAS the tracks and rollingstock of the Futwah- IslampurLight ;Railway Line owned by the Futwah-Islampur Light Railway Company Limited are in adilapidated condition,
AND WHEREAS the running oftrains on the aforesaid line besides being hazardous and uneconomical, is alsoresulting in heavy loss to the Central Government;
AND WHEREAS the aforesaidCompany is not in a position to make the assets serviceable for public use;
AND WHEREAS it is necessary inthe public interest to acquire the undertakings of the said Company in relationto the said railway line;
BE it enacted by Parliament inthe Thirty-sixth Year of the Republicof India as follows: –
CHAPTER I
PRELIMINARY
1.Short title: This Act may be called the Futwah-Islampur Light Railway Line (Nationalisation)Act, 1985.
2.Definitions: In this Act, unless the context otherwise requires,-
(a) "appointedday" means the day on which this Act comes into force;
(b) "Company" meansthe Futwah-Islampur Light Railway Company Limitedbeing a company as defined in the Companies Act, 1956 (1 of 1956)and having itsregistered office at 12, Mission Row, Calcutta;
(c) " notification’ meansa notification published in the Official Gazette;
(d) "undertakings",in relation to the Company, means the Futwah-IslampurLight Railway Line and all other undertakings of that Company relating to thatRailway Line;
(e) wardsand expressions used herein and no defined but defined in the Companies Act,1956 shall have the meanings respectively assigned to them in that Act.
CHAPTER II
ACQUISITION OF THE UNDERTAKINGS OF THE COMPANY
3.Transfer to and vesting in the CentralGovernment of the undertaking of the Company: On the appointed day, the undertakings of theCompany and the right, title and interest of the Company in relation to suchundertakings shall, by virtue of this Act, stand transferred to, and vest in,the Central Government.
4.General effect of vesting: (1) The undertakings of theCompany shall be deemed to include all assets, rights, lease-holds, powers,authorities and privileges, and all property, movable and immovable, includinglands, buildings, workshops, stores, instruments, machinery and equipment, cashbalances, cash on hand, cheques, demand drafts,reserve funds, investments, books debts and all other rites and interests in,or arising out of, such property as were immediately before the appointed dayin the ownership, possession, power or control of the Company, whether withinor outside India, and all books of account, registers and all other documentsof whatever nature relating thereto.
(2) All properties as aforesaidwhich have vested in the Central Government under section 3 shall, by force ofsuch vesting , be freed and discharged from any trust, obligation, mortgage,charge, lien and all other encumbrances affecting them, and any attachment,injection, decree or order of any court, tribunal or other authorityrestricting the use of such properties in any manner or appointing any receiverin respect of the whole or any part of such properties shall be deemed to havebeen withdrawn.
(3) For the removal of doubts,it is hereby declared that the mortgagee of any property referred to insub-section (2), or any other person holding any charge, lien or other interestin, or in relation to, any such property shall be entitled to claim, inaccordance with his rights and interests, payment of the mortgage money orother dues, in whole or in part, out of the amounts payable under section 6 and7 to the Company, but no such mortgage, charge, lien or other interest shall beenforceable against any property which has vested in the Central Government.
(4) Any licenceor other instrument granted to the Company in relation to any undertaking whichhas vested in the Central Government under section 3 at any time before theappointed day and in force immediately before that day shall continue to inforce on and after such day in accordance with its tenor in relation to and forthe purposes of such undertaking., and, on and from the date of vesting of suchundertaking under section 3 in the Central Government, that Government shall bedeemed to be substituted in such licence or otherinstrument as it such licence or other instrument hasbeen granted to that Government and that Government shall hold it for theremainder of the period for which the Company would have held it under theterms thereof.
5.Owner of the Company to be liablefor certain prior liabilities: (1) Every liability of the Company in respect of any period priorto the appointed day, shall be the liability of the Company and shall beenforceable against it and not against the Central Government.
(2) For the removal of doubts,it is hereby declared that, –
(a) noliability of the Company in relation to its undertakings in respect of nayperiod before the appointed day, shall be enforceable against the CentralGovernment;
(b) no award, decree or orderof any court, tribunal or other authority in relation to the undertakings ofthe Company passed on or after the appointed day, in respect of any matter,claim or Diaspora, which arose before that day, shall be enforceable againstthe Central Government;
(c) noliability incurred by the Company before the appointed day, for thecontravention of any provision of any law for the time being in force, shall beenforceable against the Central Government.
CHAPTER III
PAYMENT OF AMOUNT
6.Payment of amount: (1) For the transfer to, andvesting in, the Central Government, under section 3, of the right, title andinterest of the Company in relation to its undertakings, there shall be paid incash by the Central Government, before the expiry of a period of three monthsfrom the appointed day to the Company, an amount equal to a sum of nineteen lakhs twenty nine thousand five hundred and forty-tworupees.
(2) Notwithstanding anythingcontained in sub-section(1), out of the amount referred to in that sub-section,the Central Government shall deduct, in the first instance, any amount due fromthe Company to that Government and the State Bank of Travancore constitutedunder section 3 of the State bank of India(Subsidiary Banks) Act, 1959 (38 of1959) and the liability of that Company shall, to the extent of such deductions,stand discharged and such deductions shall have priority over all other debts,secured or unsecured.
7.Interest: The amount referred to in sub- section (1)of section6 as reduced by the deductions under sub-section (2)of that section, shall, ifnot paid to the Company before the expiry of the period specified in the saidsubsection (1), carry simple interest at the rate of four percent per annum forthe period commencing on the appointed day and ending on the date on whichpayment of such amount as so reduced is made by the Central Government to theCompany:
Provided that if the amount asso reduced is tendered to the Company. But not accepted by it, no interest shall run fromthe date of such tender.
CHAPTER IV
DUTY OF PERSONS IN CHARGE OF MANAGEMENT OF THE UNDERTAKING
OF THE COMPANY TO DELIVER ALL ASSETS ETC.
8.Duty of persons in charge ofmanagement of the undertakings of the Company to deliver all assets etc: On the vesting of theundertakings of the Company in the Central Government, all persons in charge ofthe management of the undertakings immediately before such vesting, shall bebound to deliver to the Central Government all assets, books of account,registers or other documents in their custody relating to the undertaking.
9.Duty of persons to accountfor assets, etc., in their possession: (1) Any person who has, on the appointed day, inhis possession or under his control, any assets, books, documents or otherpapers relating to the undertakings owned buy the Company which have vested inthe Central Government and which belong to the Company, or would have sobelonged, it the undertakings owned by the Company had not vested in the;Central Government, shall be liable to account for the said assets, books,document and other papers to the Central Government or to such person orpersons as the Central Government may specify in this behalf.
(2) The Central Government maytake or cause to be taken all necessary steps for securing possession of theundertakings of the Company which have vested in the Central Government underthis Act.
(3) The Company shall, withinwhich period as the Central Government may allow in this behalf, furnish tothat Government a complete inventory of all its properties and assets, as onthe appointed day, pertaining to the undertakings which have vested in theCentral Government under section 3 and, for this purpose the Central Governmentshall afford to the Company all reasonable facilities.
CHAPTER V
PROVISIONS RELATING TO EMPLOYEES OF THE UNDERTAKING OF THE COMPANY
10.Employment of certainemployees to continue: (1) Every person who has been, immediately before the appointedday, employed in any of the undertakings of the Company shall become, on andfrom the appointed day, an employee of the Central Government and sill holdoffice or service under the Central Government with the same rights andprivileges as to pensions, gratuity and other matters as would have beenadmissible to him if there had been no such vesting and shall continue to do sounless and until his employment under the Central Government is duly terminatedor unit his remuneration and other conditions of service are duly altered bythe Central Government:
Provided that unless anyextension of service is granted to such person after the appointed day inaccordance with the rules in that behalf in force for the time beings, suchperson shall retire compulsorily from the service of the Central Government, –
(a) Where he has attainedattains the age of fifty-eight years before, or on, or within a period of threemonths from, the appointed day, on the date of expiry of the said period ofthree months, or on the date on which he shall retire compulsorily from servicein accordance with the conditions of service of service applicable to himimmediately before the appointed day, whichever date is earlier;
(b) inany other case, on his attaining the age of fifty-eight years.
(2) Notwithstanding anythingcontained in the Industrial Disputes Act, 1947, or in any other law for thetime being in force, the transfer of the service of any officer or other personemployed in any undertaking of the Company to the Central Government shall notentitle such officer or other employee to any compensation under this Act orunder any other law for the time being in force and no such claim shall beentertained by any court, tribunal or other authority,.
11.Provident fund and otherfunds: (1) Where the Company hasestablished a provident fund, superannuating fund, welfare fund or any otherfund for the benefit of the persons employed in any of the undertakings of theCompany, the monies reliable to the officers or other employees whose serviceshave become transferred, by or under this, Act, to the Central Government,shall, out of the monies standing, on the appointed day, to the credit of suchprovident fund, superannuating fund, welfare fund or other fund, standtransferred to , and shall vest in, the Central Government.
(2) The monies which standtransferred under sub-section (1) to the Central Government shall be dealt withby that Government in such manner as may be prescribed by rules.
CHAPTER VI
MISCELLANEOUS
12.Act to have overridingeffect: The provisions of this Actshall have effect notwithstanding anything inconsistent therewith contained inany other law for the time being in force or any instrument having effect byvirtue of any law, other than this Act, or in any decree or order of any court,tribunal other authority
13.Penalties:Any person who, –
(a) havingin his possession, custody or control any property forming part of theundertakings of the Company, wrongfully withholds such property from theCentral Government; or
(b) wrongfullyobtains possession of, or retains, any property forming part of theundertakings of the Company: or
(c) wilfullywithholds or fails to furnish to the Central Government or any person orpersons specified by that Government any document relating to suchundertakings, which may be in his possession, custody or control; or
(d) fails to deliver to theCentral Government or any person or persons specified by that Government, anyassets, books of account, registers or other documents in his possession,custody or control, relating to the undertakings of the Company; or
(e) wrongfully removes ordestroys any property forming part of the undertakings of the Company orprefers any claim which he knows or has reason to believe to be false orgrossly inaccurate, shall be punishable with imprisonment for term which mayextend to two years, or with fine which may extend to ten thousand rupees, orwith both.
14.Offencesby Companies: (1) Wherean offence under this Act has been committed by a company, every person who, atthe time the offence was committed, was in charge of, and was responsible to,the company for the conduct of the business of the company, as well as thecompany, shall be deemed to be guilty of the offence and shall be liable to beproceeded against and punished accordingly:
Provided that nothing containedin this sub-section shall render any such person liable to any punishment, ifhe proves that the offence was committed without his knowledge or that he hadexercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anythingcontained in sub-section (1), where any offence under this Act has beencommitted by a company and it is proved that the offence has been committedwith the consent or connivance of, or is attributable to any neglect on thepart of, any director, manager, secretary or other officer of the company, suchdirector, manager, secretary or other shall be deemed to be guilty of thatoffence and shall be liable to be proceeded against and punished accordingly.
Explanation: For thepurposes of this section, –
(a) "company"means any body corporate and includes a firm or other association ofindividuals; and
(b)" director", inrelation to a firm, means a partner in the firm.
15.Protection action in goodfaith: (1) No suit, prosecution orother legal proceeding shall, like against the Central Government or anyofficer or other employee of that Government or any officer or other person authorised by that Government for anything which is in goodfaith done or intended to be done under this Act.
(2) No suit or other legalproceeding shall lie against the Central Government or any officer or otheremployee of that Government or any officer or other person authorisedby that Government for any damage caused or likely to be caused by anythingwhich is in good faith done or intended to be done under this Act.
16.Delegation of powers: (1) The Central Governmentmay, by notification direct that all or any of the powers exercisable by itunder this Act, other than the powers conferred by this section and sections 17and 18, may also be exercised by such person or persons as may be specified inthe said notification.
(2) Whenever any delegation ofpower is made under sub-section (1), the person to whom such power has beendelegated shall act under the direction, control and supervision of the CentralGovernment.
17.Powerto make rules: (1) TheCentral Government may, by notification, make rules for carrying out theprovisions of this Act.
(2) In Particular and withprejudice to the generally of the foregoing power such rules may provide themanner in which the monies I any provident fund or other fund under section 11shall be delta with.
(3) Every rule made by theCentral Government under this Act shall be laid, as soon as may be after it ismade, before each House of parliament, while it is in session, for a totalperiod of thirty days which may be comprised in one session or in two or moresuccessive sessions, and if, before the expiry of the session immediatelyfollowing the session or the successive session aforesaid, both Houses agree inmaking any modification in the rule or both House agree that the rule shouldnot be made, the rule shall thereafter have effect only in such modificationform or be of no effect, as the case may be; so however, that any suchmodification or annulment shall be without prejudice to the validity ofanything previously done under that rule.
18.Powerto remove difficulties: if any difficulty arises in giving effect to the provisions ofthis Act, the Central Government may, by order, not inconsistent with theprovisions of this Act, remove the difficulty:
Provided that no such ordershall be made after the expiry of a period of two years from the appointed day.
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