{"id":4811,"date":"2025-01-10T15:01:20","date_gmt":"2025-01-10T09:31:20","guid":{"rendered":"https:\/\/indianlawsociety.com\/?p=4811"},"modified":"2025-01-12T14:32:57","modified_gmt":"2025-01-12T09:02:57","slug":"the-britannia-engineering-company-limited-mokameh-unit-and-the-arthur-butler-and-company-muzaffarpore-limited-acquisition-and-transfer-of-undertakings-act-1978","status":"publish","type":"post","link":"https:\/\/karma.law\/insights\/law-library\/the-britannia-engineering-company-limited-mokameh-unit-and-the-arthur-butler-and-company-muzaffarpore-limited-acquisition-and-transfer-of-undertakings-act-1978\/","title":{"rendered":"The Britannia Engineering Company Limited (Mokameh Unit) and the Arthur Butler and Company (Muzaffarpore) Limited (Acquisition and Transfer of Undertakings) Act, 1978"},"content":{"rendered":"\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button cs-button-animated\" href=\"https:\/\/www.indiacode.nic.in\/handle\/123456789\/1469?view_type=browse\" target=\"_blank\" rel=\"noreferrer noopener\"><span><span>Download Act<\/span><span>Download Act<\/span><\/span><\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>Ministry of Railways<\/p><\/blockquote><\/figure>\n\n\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><span class=\"ng-star-inserted\">The Britannia Engineering Company Limited (Mokameh Unit) and the Arthur Butler and Company (Muzaffarpore) Limited (Acquisition and Transfer of Undertakings) Act, 1978, was enacted to provide for the acquisition and transfer of the right, title, and interest of the undertakings of Britannia Engineering Company in relation to the Mokameh unit and of Arthur Butler and Company in relation to the undertakings owned by it. This act aims to ensure the continued manufacture of railway wagons and other essential goods. While the Act does not specify a particular ministry, it falls under the purview of the Ministry of Heavy Industries in India, as it deals with matters related to industrial undertakings.<\/span><\/p>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Enactment Date, Number of Chapters, Number of Sections:<\/span><\/strong><br class=\"ng-star-inserted\" \/><span class=\"ng-star-inserted\">The Britannia Engineering Company Limited (Mokameh Unit) and the Arthur Butler and Company (Muzaffarpore) Limited (Acquisition and Transfer of Undertakings) Act, 1978, was enacted on December 8, 1978. The Act is structured into 7 chapters and 33 sections, along with two schedules. These sections cover various aspects of the acquisition and transfer process, including definitions, vesting of undertakings, payment of amounts, management, provisions for employees, and miscellaneous provisions.<\/span><\/p>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Act Governed By:<\/span><\/strong><br class=\"ng-star-inserted\" \/><span class=\"ng-star-inserted\">The Act is primarily governed by the provisions outlined within its sections. It establishes the framework for the acquisition of the Mokameh unit of Britannia Engineering Company and the undertakings of Arthur Butler and Company, the vesting of these undertakings in the Central Government, and the subsequent transfer to a Government company. The Act also outlines the procedures for compensation and the rights and liabilities of the involved parties.<\/span><\/p>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">On Whom It Is Applicable:<\/span><\/strong><br class=\"ng-star-inserted\" \/><span class=\"ng-star-inserted\">The Act is applicable to the Britannia Engineering Company Limited (Mokameh Unit), Arthur Butler and Company (Muzaffarpore) Limited, the Central Government, and any Government company to which the undertakings are transferred. It also applies to the employees of these companies and to creditors with claims against the companies.<\/span><\/p>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Penalties\/Punishments:<\/span><\/strong><br class=\"ng-star-inserted\" \/><span class=\"ng-star-inserted\">The Act prescribes penalties for certain violations, including:<\/span><\/p>\n<ul class=\"ng-star-inserted\" style=\"text-align: justify;\">\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Imprisonment for a term which may extend to two years, or with fine which may extend to ten thousand rupees, or with both, for wrongfully withholding property or documents, or for preferring false claims.<\/span><br class=\"ng-star-inserted\" \/><span class=\"ng-star-inserted\">The Act also includes provisions for the recovery of dues and the enforcement of decisions through legal means.<\/span><\/p>\n<\/li>\n<\/ul>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Important Pointers:<\/span><\/strong><\/p>\n<ul class=\"ng-star-inserted\" style=\"text-align: justify;\">\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">The Act provides for the acquisition and transfer of the Mokameh unit of Britannia Engineering Company and the undertakings of Arthur Butler and Company.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">It vests these undertakings in the Central Government and then allows for their transfer to a Government company.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">The Act outlines the procedure for determining and paying compensation to the former owners.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">It establishes a Commissioner of Payments to handle the disbursement of funds.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">The Act specifies the priority of claims against the companies.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">It ensures that the employees of the companies continue to be employed, with their service conditions protected.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">The Act emphasizes the importance of continued production of railway wagons and other essential goods.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">It also includes provisions for the protection of actions taken in good faith.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">The Act has been enacted to facilitate the transfer of management of the companies.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">The Act empowers the Central Government to make rules to implement the provisions of the Act.<\/span><\/p>\n<\/li>\n<\/ul>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Act Copy:<\/span><\/strong><\/p>\n\n\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\" hidden class=\"wp-block-file__embed\" 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undertakings.","protected":false},"author":1,"featured_media":5780,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":""},"categories":[25,960],"tags":[2019,2018,2017,1282,1278,532,2021,2020],"class_list":{"0":"post-4811","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-law-library","8":"category-ministry-of-railways","9":"tag-acquisition-of-undertakings","10":"tag-arthur-butler-and-company-act","11":"tag-britannia-engineering-company-act","12":"tag-central-government","13":"tag-government-acts","14":"tag-indian-law","15":"tag-railway-wagons","16":"tag-transfer-of-management","17":"cs-entry","18":"cs-video-wrap"},"yoast_head":"<!-- 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