Primary law, Tamil Nadu land law
The Tamil Nadu Public Works Engineering Corporation Limited (Acquisition and Miscellaneous Provisions) Act, 1980
The Legislature of the State of Tamil Nadu enacted the Tamil Nadu Public Works Engineering Corporation Limited (Acquisition and Miscellaneous Provisions) Act, 1980, Tamil Nadu Act No. 43 of 1980, to transfer the company’s undertakings, property, rights and interests to the State Government. The transfer takes effect on a date appointed by the State Government through notification, and the Act also addresses liabilities, employees, contracts and management of the undertakings.
What the Act governs
The Tamil Nadu Public Works Engineering Corporation Limited (Acquisition and Miscellaneous Provisions) Act, 1980, Tamil Nadu Act No. 43 of 1980, provides for State Government acquisition of the undertakings of the Tamil Nadu Public Works Engineering Corporation Limited. It was enacted by the Legislature of the State of Tamil Nadu and comes into force on a date appointed by the State Government through notification.
The Act applies mainly to the company, the State Government, company employees, persons managing company assets, and parties holding contracts connected with the undertakings. A property buyer or professional may need to consider it where land, buildings, leases, mortgages, charges or other interests were connected with the company’s undertakings.
Transfer of property and rights
On the appointed day, the company’s undertakings and its rights, title and interests in them transfer to and vest absolutely in the State Government.
The transferred undertaking includes:
- Movable and immovable property, including land, buildings and workshops.
- Leasehold interests, rights, powers, authorities and privileges.
- Stores, instruments, machinery and equipment.
- Cash, reserve funds, investments and book debts.
- Books of account, registers and other related documents.
Property vested in the State Government is freed from trusts, obligations, mortgages, charges, liens and other encumbrances. Attachments, injunctions, decrees or orders restricting use of that property are treated as withdrawn. Licences and other instruments relating to the undertaking continue with the State Government substituted for the company.
Liabilities, management and contracts
Key provisions include:
- The State Government assumes specified liabilities, including government loans and employee wages, salaries and other dues arising before the appointed day.
- The State Government must pay the company sixteen lakh sixty thousand nine hundred and sixty-six rupees in cash within six months from the appointed day.
- The State Government administers the affairs and business of the undertaking from the appointed day.
- Persons previously managing the undertaking must deliver its assets, accounts, registers and documents to the State Government.
- Service, sale or supply contracts in force before the appointed day cease after one hundred and eighty days unless ratified in writing by the State Government.
Employees and enforcement
Employees generally transfer to State Government service with the same remuneration, conditions and stated benefits, unless they give written notice within thirty days that they do not wish to transfer. Relevant provident, superannuation, welfare and other fund money also transfers to the State Government.
Wrongfully withholding, retaining, removing or destroying undertaking property or documents, or making a knowingly false or grossly inaccurate claim, may result in imprisonment, a fine, or both.
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
Does the Act transfer land owned by the company to the State Government?
Yes. Land, buildings, leasehold interests and other property connected with the company’s undertakings vest absolutely in the State Government on the appointed day.
What happens to a mortgage or charge over transferred company property?
The Act states that property vested in the State Government is freed and discharged from mortgages, charges, liens and other encumbrances.
Will an existing contract with the undertaking continue automatically?
A service, sale or supply contract in force immediately before the appointed day ceases after one hundred and eighty days unless the State Government ratifies it in writing. Parties must receive a reasonable opportunity to be heard before refusal or modification, and reasons must be recorded in writing.
What happened to employees of the Tamil Nadu Public Works Engineering Corporation Limited?
Employees generally became State Government employees on the appointed day with the same remuneration, terms, conditions and stated benefits. An employee could opt out by giving written notice to the State Government within thirty days following that day.
