The Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972
The Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972, Act No. 78 of 1972, enacted by Parliament on 30 December 1972, transferred the company’s undertaking to the Central Government on the appointed day and required its immediate transfer to a new government company. It covers the undertaking’s movable and immovable property, liabilities, contracts, records, employees and legal proceedings, and also provides for reconstruction of the old company’s register of members.
What the law does
The Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972 transferred the undertaking of Richardson and Cruddas Limited to the Central Government on the appointed day, identified in the text as 31 March 1973. The Central Government was then required to transfer the undertaking to a newly formed government company.
The acquisition was intended to maintain production and supply of goods needed by defence establishments, railways, steel plants and power projects. The stated background included company mismanagement and a large number of duplicate shares.
Property and obligations covered
The Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972 treats the transferred undertaking as including:
- All movable and immovable property connected with the undertaking.
- Assets, cash balances, reserve funds, investments, rights, powers and privileges.
- Books, accounts, records and documents, except the register of members and related documents.
- Existing borrowings, liabilities and obligations connected with the undertaking.
- Contracts, deeds, bonds, agreements, powers of attorney and other instruments relating to the undertaking.
Anyone possessing property, books or documents covered by the acquisition had to deliver or account for them to the Central Government or the new company. The old company also had to provide an inventory of assets, liabilities, obligations and agreements.
Employees and proceedings
The Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972 transferred eligible officers and employees connected with the undertaking first to the Central Government and then to the new company. Their existing service terms, pension, gratuity and related rights continued unless lawfully changed or terminated, subject to the provisions stated in the legislation.
Proceedings brought by the old company concerning the undertaking could continue through the Central Government or new company. Existing causes of action against the old company concerning the undertaking could likewise be enforced against them.
Relevance to property buyers and owners
The Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972 matters where land or another asset formed part of the company’s undertaking immediately before 31 March 1973. The supplied text does not identify individual properties or survey numbers, so any effect on a particular parcel depends on whether it belonged to or was controlled by the old company in connection with the undertaking.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Did all Richardson and Cruddas Limited land pass to the Central Government?
The legislation transferred immovable property that formed part of the company’s undertaking on the appointed day. The supplied text does not list individual parcels or survey numbers.
What was the appointed day for the transfer?
The text identifies 31 March 1973 as the appointed day.
Were existing property contracts cancelled by the acquisition?
Contracts, deeds, bonds, agreements, powers of attorney and other instruments relating to the undertaking generally continued in favour of the Central Government and then the new company.
How much was payable for transfer of the undertaking?
The Central Government was required to pay rupees thirty lakhs to the Custodian, who was to credit it to an account in the old company’s name and hold it in trust for the old company.
