Primary law, Tamil Nadu land law
The Bird and Company Limited (Acquisition and Transfer of Undertakings and Other Properties) Act, 1980
The Parliament of India enacted The Bird and Company Limited (Acquisition and Transfer of Undertakings and Other Properties) Act, 1980, Act No. 67 of 1980, dated 27th December, 1980, with effect from 25th October, 1980. It transferred Bird and Company Limited's undertakings, including its land and other property, and its shares in specified companies to the Central Government, while providing separate treatment for earlier liabilities and claims.
What the Act does
The Bird and Company Limited (Acquisition and Transfer of Undertakings and Other Properties) Act, 1980 was enacted by the Parliament of India as Act No. 67 of 1980, dated 27th December, 1980. It is treated as having come into force on 25th October, 1980, called the appointed day.
The purpose was to maintain production of goods considered vital to the country, support investment in the company's undertakings, prevent mismanagement and give the Central Government control through shares held in specified companies.
Property covered
The Bird and Company Limited (Acquisition and Transfer of Undertakings and Other Properties) Act, 1980 transferred the company's undertakings, rights, title and interests to the Central Government on the appointed day. The property included:
- Land, buildings, workshops, leaseholds and stores.
- Machinery, instruments and equipment.
- Cash, reserve funds, investments and book debts.
- Powers, authorities, privileges and other property rights.
- Books of account, registers and related documents.
- Property within or outside India that was under the company's ownership, possession, power or control immediately before the appointed day.
All shares held by Bird and Company Limited in the companies listed in Schedule I also transferred to the Central Government. This included equity or preference shares and shares pledged to a bank or another creditor.
Mortgages, charges and proceedings
Property transferred under the Act was freed from mortgages, charges, liens, trusts, obligations and other encumbrances. Court attachments, injunctions, decrees or orders restricting its use, or appointing a receiver, were treated as withdrawn.
A mortgagee or person holding a charge, lien or other interest had to notify the Commissioner of Payments in the prescribed manner. Such a person could claim payment from the amounts provided under the Act, but could not enforce the interest against the transferred property itself.
Pending suits, appeals and other proceedings concerning transferred property did not end because of the transfer. They could continue by or against the Central Government, or a Government company if the undertaking was later vested in that company.
Who may be affected
The Act may affect anyone claiming ownership, a mortgage, charge, lien or another interest in property that belonged to Bird and Company Limited immediately before 25th October, 1980. Earlier company liabilities remained enforceable against Bird and Company Limited, not against the Central Government or a Government company receiving the undertakings.
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Common questions
Did the Act transfer Bird and Company Limited's land to the Central Government?
Yes. The transferred undertakings included the company's immovable property, including land and buildings, held immediately before 25th October, 1980.
Can a mortgage over transferred property still be enforced against that property?
No. A mortgage, charge, lien or other interest could not be enforced against property vested in the Central Government. The holder could instead claim payment from the amounts provided under the Act.
Did the Central Government become responsible for Bird and Company Limited's earlier debts?
No. Liabilities relating to periods before 25th October, 1980 remained liabilities of Bird and Company Limited and were not enforceable against the Central Government or a Government company receiving the undertakings.
Were existing licences connected with the transferred undertakings cancelled?
No. Licences and other instruments in force immediately before the appointed day continued according to their terms. If an undertaking later vested in a Government company, that company was substituted under the licence or instrument.
