THE FUTWAH-ISLAMUR LIGHT RALILWAY LINE (NATIONALISATION) ACT, 1985
[Act, No. 83 of 1985]
[30th December, 1985]
An Act to provide for the acquisition, in the public interest, of the undertakings of the Futwah-islamput Light Railway Company Limited in relation to the Futwah-Islampur Light Railway Company Limited are in a dilapidated condition;
WHEREAS the tracks and rolling stock of the Futwah-Islampur Light ; Railway Line owned by the Futwah-Islampur Light Railway Company Limited are in a dilapidated condition,
AND WHEREAS the running of trains on the aforesaid line besides being hazardous and uneconomical, is also resulting in heavy loss to the Central Government;
AND WHEREAS the aforesaid Company is not in a position to make the assets serviceable for public use;
AND WHEREAS it is necessary in the public interest to acquire the undertakings of the said Company in relation to the said railway line;
BE it enacted by Parliament in the Thirty-sixth Year of the Republic of India as follows:-
Section 1. Short title
This Act may be called the Futwah-Islampur Light Railway Line (Nationalisation) Act, 1985.
Section 2. Definitions
In this Act, unless the context otherwise requires,-
(a) "appointed day" means the day on which this Act comes into force;
(b) "Company" means the Futwah-Islampur Light Railway Company Limited being a company as defined in the Companies Act, 1956 (1 of 1956)and having its registered office at 12, Mission Row, Calcutta;
(c) " notification' means a notification published in the Official Gazette;
(d) "undertakings", in relation to the Company, means the Futwah-Islampur Light Railway Line and all other undertakings of that Company relating to that Railway Line;
(e) wards and expressions used herein and no defined but defined in the Companies Act, 1956 shall have the meanings respectively assigned to them in that Act.
Section 3. Transfer to and vesting in the Central Government of the undertaking of the Company
On the appointed day, the undertakings of the Company and the right, title and interest of the Company in relation to such undertakings shall, by virtue of this Act, stand transferred to, and vest in, the Central Government.
Section 4. General effect of vesting
(1) 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, 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 day in the ownership, possession, power or control of the Company, whether within or outside India, 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, lien and all other encumbrances affecting them, and any attachment, injection, decree or order of any court, tribunal or other authority restricting the use of such properties in any manner or appointing any receiver in respect of the whole or any part of such properties shall be deemed to have been withdrawn.
(3) For the removal of doubts, it is hereby declared that the mortgagee of any property referred to in sub-section (2), or any other person holding any charge, lien 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 amounts payable under section 6 and 7 to the Company, but no such mortgage, charge, lien or other interest shall be enforceable against any property which has vested in the Central Government.
(4) Any licence or other instrument granted to the Company in relation to any undertaking which has vested in the Central Government under section 3 at any time before the appointed day and in force immediately before that day shall continue to in force on and after such day in accordance with its tenor in relation to and for the purposes of such undertaking., and, on and from the date of vesting of such undertaking under section 3 in the Central Government, that Government shall be deemed to be substituted in such licence or other instrument as it such licence or other instrument has been granted to that Government and that Government shall hold it for the remainder of the period for which the Company would have held it under the terms thereof.
Section 5. Owner of the Company to be liable for certain prior liabilities
(1) 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.
(2) For the removal of doubts, it is hereby declared that,-
(a) no liability of the Company in relation to its undertakings in respect of nay period before the appointed day, shall be enforceable against the Central Government;
(b) no award, decree or order of any court, tribunal or other authority in relation to the undertakings of the Company passed on or after the appointed day, in respect of any matter, claim or Diaspora, which arose before that day, shall be enforceable against the Central Government;
(c) no liability incurred by the Company before the appointed day, for the contravention of any provision of any law for the time being in force, shall be enforceable against the Central Government.
Section 6. Payment of amount
(1) For the transfer to, and vesting in, the Central Government, under section 3, of the right, title and interest of the Company in relation to its undertakings, there shall be paid in cash by the Central Government, before the expiry of a period of three months from the appointed day to the Company, an amount equal to a sum of nineteen lakhs twenty nine thousand five hundred and forty-two rupees.
(2) Notwithstanding anything contained 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 from the Company to that Government and the State Bank of Travancore constituted under section 3 of the State bank of India(Subsidiary Banks) Act, 1959 (38 of 1959) 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.
Section 7. Interest
The amount referred to in sub- section (1)of section 6 as reduced by the deductions under sub-section (2)of that section, shall, if not paid to the Company before the expiry of the period specified in the said subsection (1), carry simple interest at the rate of four percent per annum for the period commencing on the appointed day and ending on the date on which payment of such amount as so reduced is made by the Central Government to the Company:
Provided that if the amount as so reduced is tendered to the Company. But not accepted by it, no interest shall run from the date of such tender.
Section 8. Duty of persons in charge of management of the undertakings of the Company to deliver all assets etc.
On the vesting of the undertakings of the Company in the Central Government, all perosns in charge of the management of the undertakings immediately before such vesting, shall be bound to deliver to the Central Government all assets, books of account, registers or other documents in their custody relating to the undertaking.
Section 9. Duty of persons to account for assets, etc., in their possession
(1) Any person who has, on the appointed day, in his possession or under his control, any assets, books, documents or other papers relating to the undertakings owned buy the Company which have vested in the Central Government and which belong to the Company, or would have so belonged, 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 or persons as the Central Government may specify in this behalf.
(2) The Central Government may take or cause to be taken all necessary steps for securing possession of the undertakings of the Company which have vested in the Central Government under this Act.
(3) The Company shall, within wuch period as the Central Government may allow in this behalf, furnish to that Government a complete inventory of all its properties and assets, as on the appointed day, pertaining to the undertakings which have vested in the Central Government under section 3 and, for this purpose the Central Government shall afford to the Company all reasonable facilities.