The Oriental Gas Company Act, 1960

GOVERNMENT OF WEST BENGAL LAW DEPARTMENT Legislative West Bengal Act XV of 1960 THE ORIENTAL GAS COMPANY ACT, 1960. [Passed by the West Bengal Legislature.] [Assent of the President was first published in the Calcutta Gazette, Extraordivary, of the 1st October, 1960.] [1st October, 1960.] An Act to provide for the taking over for a limited period of the management and control, and the subsequent acquisition, of the undertaking of the Oriental Gas Company Limited. WHEREAS it is expedient to provide for increasing the production of gas and improving the quality thereof for supply to industrial undertakings, hospitals and other welfare institutions, to local authorities for street lighting and to the public in general for domestic consumption and for that pur- pose to provide for the taking over for a limited period of the management and control, and the subsequent acquisition, of the undertaking of the Oriental Gas Company Limited and for certain other matters incidental and ancillary thereto; It is hereby enacted in the Eleventh Year of the Republic of India, by the Legislature of West Bengal, as follows :- 1. (1) This Act may be called the Oriental Gas.Company Short title and Act, 1960.(cid:9) (2) It shall come into force on such date as the State commence- Government may, by notification in the Official Gazette, appoint. 2. In this Act unless the context otherwise requires,— Definitions. (1) "Calcutta" means the area described in Schedule I to the Calcutta Municipal Act, 1951, as amended West Ben. Act by notification under section 594 of that Act XXXDI together with such other area or areas as may, o61951. from time to time, be specified by the State Government by notification in the Official Gazette; (2) "Company" means the- Oriental Gas Company Limited referred to in Act V of 1857; "undertaking of the Company" means the properties (3) of the Company, movable or immovable, other than cash balances and reserve funds but including Price—Indian, 12 nP.; English, 3d. 2(cid:9) The Oriental Gas Company Act, 1960. [West Ben. Act (Sections 3, 4.) works, workshops, plants, machineries, posts; pipes, pipe-lines, appliances, apparatus, acces- sories, Surniture, equipments and stores, and lands appertaining thereto, actually in use immediately before the commencement of this Act, or intended to be used, in connection with the production of gas or supply thereof in Calcuttta and its environs; (4) "year" means a financial year. Taking 3. The State Government may, by notification in. the over of Official Gazette (a copy of which shall be served on the the manage- Company), take over for a period of five years with effect ment and from such date as may be specified in the notification (here- control of inafter referred to as the appointed day), not being earlier the under. taking than seven days from the date of publication of the notifica- of the tion in the Official Gazette, the management and control of Company. the undertaking of the Company for the purposes, and in accordance with the provisions, of this Act. Transfer. 4. With effect from the appointed day and for a period of five years thereafter— (a) the undertaking of the Company shall stand trans- ferred to the State Government for the purpose of management and control; lb) the Company and its agents, including managing agents, if any, and servants shall cease to exercise management or control in relation to the under- taking of the Company; (0 all contracts, excluding any contract or contracts in respect of agency or managing agency, subsisting immediately before the appointed day and affect- ing the undertaking of the Company shall cease to have effect or to be enforceable against the Com- pany, its agents or any person who was a surety thereto or had guaranteed the performance thereof and shall be of as full force and effect against or in favour of the State of West Bengal and shall be enforceable as fully and effectively as if instead of the Company the State of West Bengal had been named therein or had been a party thereto : Provided that— (i) except where the State Government by notification in the Official Gazette otherwise directs, the provisions of this clause shall not apply to any contract which was executed after the 1st day of January, 1958; (ii) any transfer by way of sale, exchange, gift, mort- gage, lease or otherwise, affecting the under- taking of the Company or any part thereof, made between the date of commencement of Th, Oriental Gas Corrupany Act, 1960.(cid:9) 3 XV of 1960.] (Section 5.) this Act and the appointed day shall have no effect whatsoever and shall stand cancelled, so, however, that such cancellation shall not affect any rights which the transferor and the transferee may otherwise have against each other; (d) subject to the provisions of clause (c), any proceeding pending or any cause of action existing before the appointed day in relation to the undertaking of the Company may be continued or enforced by or against the State of West Bengal and shall cease to be continued or enforced by or against the Company, its agents, sureties or guarantors; (e) persons employed by the Company in. connection with the undertaking of the Company and continuing in. office immediately before the appointed day shall be employed by the State Government on such terms and conditions, not being less advan- tageous than what they were entitled to imme- diately before the appointed day, as may be deter- mined by the State Government: Providedthat the State Government may, if it considers any such person to be unsuitable, discharge him, so, however, that, in the case of any such person who has been in continuous service under the Company for not less than one year immediately before the appointed day, the provisions of section 25FF of the Industrial Disputes Act, 1947, shall 14 of (cid:9) 1947.(cid:9) be applicable, that is to say, such discharge shall not take effect until the State Government has— (i) given him notice or paid him wages in lieu of notice, as provided in clause (a), and (ii) paid him compensation as provided in clause (b), of section 25F of the said Adt. 5. (1) On the transfer of the undertaking of the Company Delivery of posses. to the State Government, for the purpose of management and sion of control, under clause (a) of section 4, every person including under- a transferee referred to in the proviso to clause (c) of section taking of 4, in whose possession, custody or control the undertaking of the Company the Company or any part thereof may be, shall forthwith to the deliver possession of the undertaking of the Company or part State thereof, as the case may be, to the State Government. Govern- ment (2) If any person refuses or fails to comply with the and provisions of sub-section (1), an officer authorised by the penalty. State Government in this behalf, shall,— (a) if he is a Magistrate, enforce the delivery to the State Government of possession of the undertaking 4(cid:9) The Oriental Gas Company Act, 1960. [West Ben. Act (Sections 6, 7.1 of the Company or any part thereof, in respect of which such refusal has been made or failure has been committed, or (b) if he is not a Magistrate, apply to a Magistrate or, within the town of Calcutta, as defined in section 3 of the Calcutta Police Act; 1866, to the Ben. Act IV of Commissioner of Police, and such Magistrate or 1866. Commissioner, as the case may be, shall enforce the delivery to the State Government of possession of the undertaking of the Company or part thereof, as the case may be. (3) Whoever refuses or wilfully obstructs the delivery to the State Government of possession of the undertaking of the Company transferred to the State Government, for the pur- pose of management and control, under clause (a) of section 4, or any part thereof, shall, on conviction before a Magis- trate, be punishable, without prejudice to any other penalty to which he may be liable under any other law for the time being in force, with fine which may extend to one thousand rupees. Running 6. (1) The undertaking of the Company shall be run by .and use of the State Government and shall be used and utilised by the the under- State Government for purposes of production of o‘as and taking of the supply thereof to industrial undertakings, hospita' ls(cid:9) and Company. other welfare institutions, to local authorities for street lighting and for other purposes, if any, and to the public in general for domestic consumption, and for this purpose the State Government shall have all the powers of the Company under Act V of 1857. (2) The State Government may for effectively carrying out the purposes of this Act add, at its own cost, to the under- taking of the Company such new works, workshops, plants, machineries, posts, pipes, pipe-lines, appliances, apparatus, accessories, furniture, equipments, stores, lands, buildings, erections or fixtures as it may consider necessary. Acquisi- 7. (1) The State Government may, if it so thinks fit, at tion i.a.ny time within the period of five years referred to in section of the 4, acquire the undertaking of the Company by notification pub- under- taking lished in the Ojficia4 Gazette for the purposes of this Act. of the Company (2) On the publication of the notification under sub- and trans- section (1), the undertaking of the Company shall, on and fer of its manage- from the beginning of the clay on which the notification is so ment and published, vest absolutely in the State Government free from control to all iiacumbrances. the Com- pany in (3) If the undertakino, of the Company be not acquired case of by the State Government in accordance with the provisions non-acqui- of sub-section (1), the State Government shall, on the expiry sition. of the period of five years referred to in section 4, by order The Oriental Gas Company Act, 1960.(cid:9) 5 XV el 1960.1 (Section 8.) made in this behalf, transfer the management and control of the undertaking to the Company after removing or dis- posing of such additions to the undertaking as may have been made by the State Government at its own cost in accordance with the provisions of sub-section (2) of section 6, unless the Company agrees to pay the amount being the cost of such additions less such depreciation as may be,, agreed upon or, in the absence of agreement, determined by a Tribunal appointed for the purpose. The amount so agreed upon or determined shall be paid by the Company to the State Government within such time as may be agreed upon or allowed by the Tribunal and until such payment, the amount shall be a charge on the undertaking of the Company. 8. (1) In respect of the taking over of the management Compen- and control, under section 3, or acquisition under section 7, sation. of the undertaking of the Company, there shall be paid by the State Government to the Company compensation to be deter- mined under sub-section (2), as follows, that is to say,— (a) in the case of the taking over of the management and control of the undertaking of the Company, the annual compensation payable shall be a sum calcu- lated at two per centum of the sum representing the purchase price of the undertaking of the Company reduced by such depreciation as Pay be allowed by the Tribunal referred to in sub- section (2) after considering the period and the nature of the use and the present condition of the properties concerned on the appointed day; (b) in the case of acquisition of the undertaking of the Company, the total compensation payable shall be,— a sum representing the purchase price of the undertaking of the Company reduced by such depreciation as may be allowed by the Tribunal referred to in sub-section (2) after considering the period and the nature of the use and the present condition of the properties concerned on the date of vesting in the State Government under section 7, or a sum representing eight times the average net income of the undertaking of the Company over a period of five complet years preceding the year in which the undertaking of the Company has been transferred to the State Government under clause (a) of section 4 for the purpose of management and control, whichever is less. 6(cid:9) The Oriental Gas Company Act, 1960 [West Ben. Act (Section S.) Explanation.—In this. sub-section— (i) "purchase price of the undertaking of the Com- pany" means the aggregate of the prices of the different parts of the undertaking of the Company at the respective dates en which such parts were purchased, acquired or constructed by the Company; (ii) "net income of the undertaking of the Company" means the difference between the amount of gross revenue receipts and other general receipts accountable in the assessment of Indian income- tax arising from, and ancillary or incidental to, the business of the Company and the amount of expenditure incurred on the following— (a) rents, rates and taxes, (b) interest on loans and security deposits, (c) maintenance and repair, (d) collection charges, (e) cost of management, including the remuneration of managing agents, if any, (I) other expenses admissible under the law for the time being in force in the assessment of Indian income-tax and arising. from, and ancillary or incidental to, the business of the Company, and (g) such other expenses as may be prescribed by rules made under this Act. (2) The compensation payable in respect of the taking over under section 3 of the management and control, or in res- pect of the acquisition under sub-section (1) of section 7, of the undertaking of the Company or the amount payable by the Company under sub-section (3) of section 7 for the additions made by the State Government at its own cost to the undertaking of the Company shall be determined by a Tribunal which shall be appointed by the State Government consisting of a person who is or has been a Judge of a High Court, or a District Judge or an Additional District Judge and such Tribunal shall make an award in respect of the compensation so determined. (3) The State Government may appoint one or more persons possessing knowledge of any matter relating to the inquiry to assist the Tribunal in determining the compensation. The Oriental Gas Company Act, 1960. XV of 1960.] (Sections 9, 10.) (4) The Tribunal shall have the powers of a civil Act v(cid:9) court while trying suits under the Code of Civil Procedure, of 1908.(cid:9) 1908, in respect of the following matters :— (a) summoning and enforcing the attendance of any person and examining him on oath, (b) requiring the discovery and production of documents, (c) receiving evidence on affidavits, and (d) issuing commissions for the examination of witnesses or documents. (5) Any party aggrieved by the award of the Tribunal made under sub-section (2) may appeal to the High Court within thirty days from the date of such award. 9. (1) In the case of the taking over of the management Bfaimer of and control of the undertaking of the Company, the State payment Government shall pay to the Company the amount of the of com- compensation determined under section 8 in cash— pensation. (a) in respect of the period prior to the date of the award, within sixty days from the date of the award made by the Tribunal, or, as the case may be, from the date of the order of the High Court in the case of an appeal, and (b) thereafter, annually on the close of the year in respect of which the compensation is payable. (2) In the case of acquisition of the undertaking of the Company, as soon as possible after the date of the award made by the Tribunal, or, as the case may be, the date or the order of the High Court in the case of an appeal, the State Government shall pay to the Company the amount of compensation determined under section 8 in bonds carrying interest at the rate of three per centum per annum with effect from the date of issue and payable in twenty equal annual instalments : Provided that the State Government may at any time or from time to time pay one or more instalments, even before such payment is due, with interest up to the date of payment after giving notice in the Official Gazette of its intention to do so : Provided further that interest on such instalment or instalments shall cease on the expiry of the date of payment if payment of such instalment or instalments be not taken in pursuance of the notice referred to above. 10. (1) The State Government may make rules for carry- Power to ing out the purposes of this Act. make rules. 8(cid:9) The Oriental Gas Company Act, 1960. [West Ben. Act XV of 1960.] (Section 11.) (2) In particular, and without prejudice to the -generality of the foregoing provision, such rules may provide for any or all of the following matters, namely :— (a) the manner of service of the copy of the notification under section 3 on the Company, (b) the procedure to be followed by the Tribunal in determining the amount of compensation under section 8, (c) the determination of expenses referred to in item (g) of paragraph (ii) of the Explanation to sub- section (1) of section 8. 11. If any difficulty arises in giving effect to the provi- Removal sions of this Act, the State Government may take such steps of diffi- culties. or issue such orders not inconsistent with this Act as it may consider necessary for removing the difficulty. WBGP-6011-547A-5M