Ministry of Steel
The Bird and Company Limited (Acquisition and Transfer of Undertakings and Other Properties) Act, 1980, nationalized the Bird and Company Limited and its specified subsidiaries. The company, involved in manufacturing a range of essential goods, including heavy machinery and industrial equipment, was facing financial difficulties and mismanagement. The government deemed the company’s continued operation crucial for national needs and thus enacted this Act to acquire its undertakings and shares in associated companies. This Act falls under the Ministry of Heavy Industries and Public Enterprises.
Enactment Date, Number of Chapters, Number of Sections:
The Act was enacted on December 27, 1980, and deemed effective from October 25, 1980. It consists of seven chapters and 31 sections, along with two schedules listing the specified and transferred companies.
Act Governed By:
The acquired undertakings initially vested in the Central Government. The Act provided for the potential transfer of these undertakings to a government company. A Commissioner of Payments was appointed to oversee the financial aspects of the acquisition and disbursement of funds.
On Whom It Is Applicable:
The Act primarily applied to the Bird and Company Limited, its employees, shareholders, creditors, and the specified companies in which it held shares. It also affected the government company to which the undertakings were potentially transferred.
Penalties/Punishments:
The Act outlines penalties, including imprisonment and fines, for offenses such as wrongfully withholding property, making false claims, and obstructing the acquisition process. It also addresses offenses committed by companies.
Important Pointers:
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Transfers all assets, rights, and liabilities of the company to the Central Government, with the option of subsequent transfer to a government company.
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Provides for the acquisition of shares held by the company in specified companies.
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Ensures the continued employment of the company’s employees with terms and conditions no less favorable than before.
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Addresses the handling of the company’s provident fund and other employee funds.
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Appoints a Commissioner of Payments to disburse funds to the company, specified companies, and claimants.
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Establishes a priority of claims against the company.
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Provides for the override of other laws and the removal of difficulties in implementing the Act.