Ministry of Shipping
The Hooghly Docking and Engineering Company Limited (Acquisition and Transfer of Undertakings) Act, 1984, was enacted to nationalize the Hooghly Docking and Engineering Company Limited. The company, engaged in shipbuilding, ship repairing, and other engineering activities, faced significant financial difficulties and was unable to secure the necessary investments for modernization. The government deemed the company’s continued operation essential for national interests, particularly for reducing reliance on imported ships and materials, and thus enacted this Act to acquire and manage its undertakings. This Act falls under the Ministry of Ports, Shipping and Waterways.
Enactment Date, Number of Chapters, Number of Sections:
The Act was enacted on August 23, 1984, and deemed effective from June 28, 1984. It consists of seven chapters and 33 sections.
Act Governed By:
Initially, the acquired undertakings vested in the Central Government. However, the Act provided for the subsequent transfer of these undertakings to either an existing or a newly formed Government company. The Central Government retained certain powers, particularly regarding financial disbursement and oversight.
On Whom It Is Applicable:
The Act primarily applies to the Hooghly Docking and Engineering Company Limited, its employees, creditors, and any other parties with claims against the company. It also affects the Government company to which the undertakings were transferred.
Penalties/Punishments:
The Act outlines penalties, including imprisonment and fines, for offenses such as wrongfully withholding property, providing false information, and obstructing the acquisition process.
Important Pointers:
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Transfers all assets, rights, and liabilities of the company to the Central Government, then potentially to a Government company.
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Provides for compensation to the company in two installments, with interest.
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Protects the rights of the company’s employees, ensuring continued employment with comparable terms and conditions.
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Addresses the handling of the company’s provident fund and other employee funds.
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Establishes a Commissioner of Payments to manage the disbursement of funds to claimants and the company.
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Prioritizes claims against the company, giving precedence to employee dues and secured loans.
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Provides for the repeal of the corresponding ordinance and ensures the continuation of actions taken under the ordinance.