The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984

The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, provides for the acquisition and transfer of the undertakings of these two companies by the Central Government, ensuring continued production and distribution of essential rubber goods.

1: Act Background and Ministry Under Which This Act Is:

The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, was enacted to provide for the acquisition and transfer of the undertakings of Inchek Tyres Limited and the National Rubber Manufacturers Limited by the Central Government. This act aimed to secure the proper management of these companies and to ensure the continued production and distribution of essential rubber goods. The act falls under the administrative purview of the Ministry of Industry, which oversees the implementation and management of nationalized industries. The ministry plays a vital role in ensuring the smooth transition and operation of such entities.

2: Enactment Date, Number of Chapters, Number of Sections:

The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, was enacted on 31st March, 1984, and is known as Act No. 17 of 1984. The act is structured into seven chapters, with no formal chapters. It comprises 33 sections, covering various aspects such as definitions, transfer of undertakings, payment of amounts, management of the undertakings, provisions relating to employees, appointment of a Commissioner of Payments, and miscellaneous provisions. The act also includes two schedules defining payments, interest rates, and priorities of liabilities. The act has been amended over time to reflect changing requirements.

3: Act Governed By:

The Inchek Tyres Limited and National Rubber Manufacturers Limited Act is governed by the Central Government, which has the power to make rules and regulations under the Act. The act also provides for the appointment of a Commissioner of Payments to handle claims. The act is governed by the provisions outlined within it, as well as rules and regulations framed by the Central government. It is therefore a combination of central authority with a judicial process.

4: On Whom It Is Applicable:

The provisions of the Inchek Tyres Limited and National Rubber Manufacturers Limited Act are applicable to Inchek Tyres Limited, National Rubber Manufacturers Limited, their employees, the Central Government, the Commissioner of Payments, and the existing or new government companies formed to take over the undertakings. The act ensures that all its actions and activities are in accordance with the regulations outlined, as well as the Act’s mandate and guiding principles. The general public are indirect beneficiaries of the Act’s provisions. The act’s focus is to protect public interest.

5: Penalties/Punishments:

The act prescribes penalties for various offenses, including:

• Wrongful Withholding of Property: Wrongfully withholding property of the undertakings can lead to imprisonment or fines.

• Failure to Furnish Information: Failure to provide required information or documents attracts penalties.

• False Claims: Making false claims before the Tribunal attracts penalties. The act emphasizes accountability and proper conduct during the acquisition process.

6: Important Pointers:

• Nationalization: The act nationalizes the undertakings of Inchek Tyres Limited and National Rubber Manufacturers Limited.

• Transfer to Government: It mandates the transfer of the undertakings to the Central Government and subsequently to government companies.

• Commissioner of Payments: It establishes the office of a Commissioner of Payments to handle claims and disbursements.

• Employee Protection: It safeguards the rights and conditions of service of existing employees.

• Rule-Making: It allows the Central Government to make rules for the management and procedures of the undertakings.

• Public Interest: It emphasizes the need to ensure continuity of production and supply of goods in the public interest. The act outlines clear definitions and procedures to handle the acquisition.

7: Act Copy: