The Britannia Engineering Company Limited (Mokameh Unit) and the Arthur Butler and Company (Muzaffarpore) Limited (Acquisition and Transfer of Undertakings) Act, 1978
Act Name:
The Britannia Engineering Company Limited (Mokameh Unit) and the Arthur Butler and Company (Muzaffarpore) Limited (Acquisition and Transfer of Undertakings) Act, 1978
Purpose:
This Act was enacted to facilitate the acquisition and transfer of the undertakings (business operations, assets, liabilities) of two specific units: the Mokameh Unit of Britannia Engineering Company Limited and the Muzaffarpore Unit of Arthur Butler and Company Limited. Essentially, it provides a legal framework for taking over these units and transferring them, usually to a government entity or another company, to ensure smooth operation and management.
Background:
During the 1970s, the Indian government and private sector undertook several industrial restructuring initiatives. This involved acquiring units of companies to improve efficiency, safeguard workers’ rights, or reorganize industries. This Act was part of that trend, addressing the transfer of the two specific units mentioned.
Key Provisions:
Acquisition of all assets, liabilities, rights, and obligations of the specified units from their original companies.
Transfer of these undertakings to a designated new owner or company, legally validating the process.
Protection of the terms and conditions of service of employees associated with these units.
Regulation of financial and operational matters during the transfer to avoid disruption.
Impact:
The Act enabled a smooth and legal transfer of these industrial units, aiming to improve operational efficiency and maintain workers’ rights. It provided clarity and security for both the employees and the new management after the transfer.
Table Summary:
| Aspect | Details |
|---|---|
| Act Name | The Britannia Engineering Company Limited (Mokameh Unit) and the Arthur Butler and Company (Muzaffarpore) Limited (Acquisition and Transfer of Undertakings) Act, 1978 |
| Year Enacted | 1978 |
| Purpose | Acquisition and transfer of undertakings of two industrial units |
| Units Involved | Britannia Engineering Company (Mokameh Unit), Arthur Butler & Co. (Muzaffarpore Unit) |
| Key Provisions | Acquisition of assets and liabilities, transfer of undertakings, protection of employee rights |
| Significance | Facilitated orderly transfer and improved operation of the units while protecting employee interests |
| Type of Act | Industrial acquisition and transfer legislation |
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