Section 6
Transfer of undertakings of the Company from an existing Government company to a new Government company.
The National Company Limited (Acquisition and Transfer of Undertakings) Act, 1980
About this Act
An Act to provide for the acquisition and transfer of the undertakings of Messrs. National Company Limited with a view to securing the proper management of such undertakings so as to subserve the interests of the general public by ensuring the continued manufacture, production and distribution of articles made of jute, which are essential to the needs of the economy of the country and for matters connected therewith or incidental thereto.
(1) Notwithstanding anything contained in sections 3 and 4, where the
undertakings of the Company have been directed, under sub-section (1) of section 5, to vest in an existing
Government company, the Central Government may, if it is satisfied that a new Government company is
willing to comply, or has complied, with such terms and conditions as that Government may think fit to
impose, declare, by notification, that the undertakings of the Company be transferred to that new
Government company; and on the issue of such declaration, the right, title and interest of the Company in
relation to its undertakings, which had been directed under sub-section (1) of section 5 to vest in an
existing Government company, shall, instead of continuing to vest in that existing Government company,
vest in that new Government company with effect from the date on which such declaration is made.
(2) Where the right, title and interest of the existing Government company in relation to the undertakings of the Company vest under sub-section (1) in a new Government company, that new Government company shall, on and from the date of such vesting, be deemed to have become the owner in relation to such undertakings and the rights and liabilities of the existing Government company in relation to such undertakings shall, on and from the date of such vesting, be deemed to have become the rights and liabilities, respectively, of that new Government company.
(2) Where the right, title and interest of the existing Government company in relation to the undertakings of the Company vest under sub-section (1) in a new Government company, that new Government company shall, on and from the date of such vesting, be deemed to have become the owner in relation to such undertakings and the rights and liabilities of the existing Government company in relation to such undertakings shall, on and from the date of such vesting, be deemed to have become the rights and liabilities, respectively, of that new Government company.