The Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972

The Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972, provides for the acquisition and transfer of the undertaking of Richardson and Cruddas Limited by the Central Government, along with the reconstruction of its register of members and related matters.

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

The Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972, was enacted to provide for the acquisition and transfer of the undertaking of Richardson and Cruddas Limited by the Central Government. This act aimed to address the mismanagement of the company and to ensure the continuity of production and supply of goods needed by the defense establishments, railways, steel plants, and power projects. The act falls under the administrative purview of the relevant ministry of the Central Government, which is responsible for the implementation and oversight of matters related to the acquisition and management of the company. The ministry plays a vital role in ensuring the smooth transition and operation of the undertaking.

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

The Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972, was enacted on 30th December, 1972, and is known as Act No. 78 of 1972. The act is structured into four main parts. Part I, titled “Acquisition and Transfer of the Undertaking of Richardson and Cruddas Limited,” has four chapters. Part II, titled “Rectification of the Register of Members of the Old Company,” has two chapters. Part III has one chapter and Part IV has four chapters. The act comprises 31 sections, covering various aspects such as the transfer of the undertaking, management of the old company, constitution and powers of the Tribunal, and miscellaneous provisions. The act has been amended over time to reflect changing requirements.

3: Act Governed By:

The Richardson and Cruddas 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 Custodian to manage the old company and a Tribunal to resolve disputes related to share ownership. The act is governed by the provisions outlined within it, as well as rules and regulations framed by the Central government. The act is a combination of central authority with a judicial process.

4: On Whom It Is Applicable:

The provisions of the Richardson and Cruddas Limited Act are applicable to the Richardson and Cruddas Limited, its members, the Central Government, the Custodian, the Tribunal, and the new company formed to take over the undertaking. The act ensures that all 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 various penalties for non-compliance and offenses:

• Wrongful Withholding of Property: Wrongfully withholding property of the undertaking 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:

• Acquisition: The act provides for the acquisition of the undertaking of Richardson and Cruddas Limited by the Central Government.

• Transfer to New Company: It mandates the transfer of the undertaking to a new government company.

• Custodian: It provides for the appointment of a Custodian to manage the old company.

• Tribunal: It establishes a Tribunal to resolve disputes related to share ownership and reimbursement claims.

• Reconstruction of Register: It provides for the reconstruction of the register of members of the old company.

• Rule-Making Power: It empowers the Central Government to make rules for carrying out the purposes of the act.

• Public Interest: It aims to ensure the continuity of production and supply of goods in the public interest.

• Protection for Actions: The act protects those who act in good faith and take measures according to its provisions. The act outlines clear definitions and procedures to handle the acquisition.

7: Act Copy: