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TEA COMPANIES (ACQUISITION AND TRANSFER OF SICK TEA UNITS) ACT

Ministry of Law and Justice

Act nº 37 of 1985


  • Chapter I
  • Chapter II
  • Chapter III
  • Chapter IV
  • Chapter V
  • Chapter VI
  • Chapter VII
  • Schedules
  • Amending Acts
  • Act nº 37 of 1985

Preamble

THE TEA COMPANIES (ACQUISITION AND TRANSFEROF SICK TEA UNITS) ACT, 1985

[Act, No. 37 of 1985]

[28th May, 1985]

PREAMBLE

An Act to provide for the acquisition and transfer of the sick tea units specified in the First Schedule and The right, title and interest of the tea companies in respect of the said tea units with a view to securing Proper reorganisation and management of such tea units so as to sub serve the interests of the general public by augmenting the production and manufacture of different varieties of tea which are essential to the needs of the economy of the country and for matters connected therewith or incidental thereto.

WHEREAS the sick tea units specified in the First Schedule had been engaged in the production and manufacture of different varieties of tea;

AND WHEREAS the management of the said tea units was taken over by the Central Government under the Tea Act, 1953; (29 of 1953)

AND WHEREAS the Central Government had invested large sums of money with a view to making the said tea units viable;

AND WHEREAS further investment of large sums of money is necessary for reorganising and rehabilitating the said tea units;

AND WHEREAS the acquisition by the Central Government of the said tea units is necessary to enable it to invest such large sums of money and to protect the large investments already made and also the interests of the workmen employed therein by proper reorganisation and management of the said tea units and thereby to augment the production and manufacture of different varieties of tea which are essential to the needs of the economy of the country;

BE it enacted by Parliament in the Thirty-sixth Year of the Republic of India as follows:--

Chapter I

Section 1. Short Title and commencement

(1) This Act may be called the Tea Companies (Acquisition and Transfer of Sick Tea Units) Act, 1985.

(2) It shall be deemed to have come into force on the 8th day of April, 1985.

Section 2. Definitions

In this Act, unless the context otherwise requires,--

(a) "appointed day" means the date of commencement of this Act ;

(b) "Commissioner" means the Commissioner of Payments appointed under section 13;

(c) "notification" means a notification published in the Official Gazette;

(d) "prescribed" means prescribed by rues made under this Act;

(e) "sick tea unit" means a tea unit, specified in column (2) of the First Schedule, the management of which had, before the appointed day, been taken over by the Central Government under the Tea Act, 1953, 29 of 1953; (29 of 1953)

(f) "specified date", in relation to any provision of this Act, means such date as the Central Government may, by notification, specify for the purposes of that provision and different dates may be specified for different provisions of this Act;

(g) "tea companies" means the companies (being companies as defined in the Companies Act, 1956) (1 of 1956) specified in column (3) of the First Schedule;

(h) "Tea Trading Corporation" means the Tea Trading Corporation of India Limited, a company incorporated and registered under the Companies Act, 1956; (1 of 1956)

(i) words and expressions used herein and not defined but defined in the Tea Act, 1953, (29 of 1953) shall have the meanings respectively assigned to them in that Act;29 of 1953,

(j) Words and expressions used herein and not defined either in this Act or in the Tea Act, 1953, (29 of 1953) but defined in the Companies Act, 1956, (1of 1956) shall have the meanings respectively assigned to them in the Companies Act, 1956, (1 of 1956)

Chapter II

Section 3. Acquisition of rights of tea companies in respect of sick tea units

(1) On the appointed day, every sick tea unit and the right, title and interest of every tea company in relation to its sick tea units or, as the case may be, sick tea unit shall, by virtue of this Act, stand transferred to, and vest in, the Central Government.

(2) Every sick tea unit which stands vested in the Central Government by virtue of sub-section (1) shall, immediately after it has so vested, stand transferred to, and vested in, the Tea Trading Corporation.

Section 4. General effect of vesting

(1) Every sick tea unit 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, reserve funds, investments, book debts and all other rights 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 tea company concerned, whether within or outside India, and all books of account, registers and all other documents of whatever nature relating thereto and shall also be deemed to include the liabilities specified in sub-section (1) section 24.

(2) All properties as aforesaid which have vested in the Tea Trading Corporation under sub-section (2) of 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, injunction, 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) Every mortgage of any property which has vested under this Act in the Tea Trading Corporation and every person holding any charge, lien or other interest in, or relation to, any such property shall give, within such time and in such manner as may be prescribed, an intimation to the Commissioner of such mortgage, charge, lien or other interest.

(4) For the removal of doubts, it is hereby declared that the mortgagee of any property referred to in sub-section (3) 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 directed to be given under sections 6 and 7 to the tea company concerned but no such mortgage, charge, lien or other interest shall be enforceable against any property which has vested in the Tea Trading Corporation.

(5) Any licence or other instrument granted to a tea company in relation to its sick tea unit which has vested in the Tea Trading Corporation under sub-section (2) of section 3 at any time before the appointed day and in force immediately before that day shall continue to be in force or and after such day in accordance with its tenor in relation to and for the purposes of such sick tea unit, and that Corporation shall be deemed to be substituted in such licence or other instrument as if such licence or other instrument had been granted to such Corporation and such Corporation shall hold it for the remainder of the period for which the tea company would have held it under the terms thereof.

(6) If, on the appointed day, any suit, appeal or other proceeding of whatever nature, in relation to any matter specified in sub-section (1) of section 24, in respect of the sick tea unit of any tea company which has vested in the Tea Trading Corporation under sub-section (2) of section 3, instituted or preferred by or against that company, is pending, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason of the transfer of the sick tea unit of such tea company or of anything contained in this Act, but the suit, appeal or other proceeding may be continued, prosecuted or enforced by or against the Tea Trading Corporation.

Section 5. Tea companies to be liable for certain prior

Subject to the other provisions of this Act, every liability, other than the liability specified in sub-section (1) of section 24, of a tea company in respect of any period prior to the appointed day, shall be the liability of that company and shall be enforceable against it and not against the Tea Trading Corporation.

Chapter III

Section 6. Payment of amount

Every tea company shall be given, by the Central Government, for the transfer to and vesting in that Government under sub-section (1) of section 3 of the sick tea unit or, as the case may be, each sick tea unit of that company and the right, title and interest of that company in relation to such sick tea unit, in case and in the manner specified in Chapter IV, such amount as is specified against the name of that sick tea unit in column (4) of the First Schedule.

Section 7. Payment of further amount

(1) Every tea company shall be given, by the Central Government, per annum, for the deprivation of the management of its sick tea unit, an amount as is specified against the name of that sick tea unit in column (5) of the First Schedule, for the period commencing on the date on which the management of such sick tea unit was taken over in pursuance of the order made by the Central Government under the provisions of the Tea Act, 1953, (29 of 1953) and ending on the appointed day.

(2) Every amount specified in columns (4) and (5) of the First Schedule shall carry simple interest at the rate of four per cent. per annum for the period commencing on the appointed day and ending on the date on which the payment of such amount is made by the Central Government to the Commissioner.

(3) The amount determined in relation to any tea company in accordance with the provisions of sub-section (2) shall be given by the Central Government to the tea company in addition to the amounts specified in columns (4) and (5) of the First Schedule against that company.

Chapter IV

Section 8. Management etc.of the sick tea units of the tea companies

The Tea Trading Corporation or any person which that Corporation may, by order in writing, specify. Shall be entitled to exercise the powers of general superintendence, direction, control and management of the affairs and business of a sick tea unit, the right, title and interest of the tea company in relation to which have vested in the Corporation under sub-section (2) of section 3 and do all such things as the tea company of the sick tea unit is authorised to exercise and do.

Section 9. Duty of persons in charge of management of the sick tea units to delivery all assets, etc

(1) On the vesting of the management of the sick tea units of the tea companies in the Tea Trading Corporation, the persons in charge of the management of such sick tea units immediately before such vesting shall be bound to deliver to the Tea Trading Corporation all assets, books of account, registers and all other documents in their custody relating to such sick tea units.

(2) The Central Government may issue such directions as it may deem desirable in the circumstances of the case to the Tea Trading Corporation and the said Corporation may also, if it is considered necessary so to do, apply to the Central Government at any time for instructions as to the manner in which the management of the sick tea units of the tea companies shall be conducted or in relation to any other matter arising in the course of such management.

Section 10. 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 any sick tea unit owned by a tea company which has vested in the Tea Trading Corporation under this Act shall be liable to account for the said assets, books, documents and other papers to the Tea Trading Corporation and shall deliver them up to that Corporation or to such person or persons as that Corporation may specify in this behalf.

(2) The Tea Trading Corporation may take or cause to be taken all necessary steps for securing possession of the sick tea units of the tea companies which have vested in that Corporation under this Act.

(3) Every tea company shall, within such period as the Tea Trading Corporation may allow in this behalf, furnish to that Corporation a complete inventory of all property and assets, as on the appointed day pertaining to its sick tea unit, which have vested in that Corporation under sub-section (2) of section 3, and for this purpose, the Corporation shall afford to such company all reasonable facilities.