The Bird and Company Limited (Acquisition and Transfer of Undertakings and Other Properties) Act, 1980
Administered Ministry: Ministry of Steel
Act details
| Short title | The Bird and Company Limited (Acquisition and Transfer of Undertakings and Other Properties) Act, 1980 |
|---|---|
| Long title | An Act to provide for the acquisition and transfer of the undertakings of the Bird and Company Limited for the purpose of ensuring the continuity of production of goods which are vital to the needs of the country and for the acquisition of shares held by the Bird and Company Limited in the specified companies for the purpose of securing to those undertakings the facilities and advantages derived by reason of such shareholding with respect to the operation and functioning of those undertakings and also to enable the Central Government to exercise such control over the affairs of the specified companies as is necessary to ensure that the affairs of those companies are not mismanaged and for matters connected therewith or incidental thereto. |
| Act number | 67 of 1980 |
| Act year | 1980 |
| Enactment date | 27 Dec 1980 |
| Ministry | Ministry of Steel |
| Jurisdiction | Central (Parliament of India) |
| Sections | 31 |
| Schedules | 2 |
| Status | Not repealed |
| Last checked on India Code | 2 Nov 2026 |
| Source | India Code, Government of India |
Summary
Summary of The Bird and Company Limited (Acquisition and Transfer of Undertakings and Other Properties) Act, 1980
Objectives
Acquisition for Public Interest: Acquire The Bird and Company Limited's undertakings to Act Overview
1. protect public interest due to mismanagement.
2. Continuity and Development: Ensure uninterrupted production of vital goods and facilitate necessary investments.
3. Regulatory Control: Acquire shares in associated companies to prevent further mismanagement.
Key Provisions
*Vesting of Undertakings: Immediate vesting of all undertakings in the Central Government or a designated Government company. *Management Transition: Provisions for the management of vested undertakings, ensuring operational continuity. *Employee Protection: Safeguards for the rights and interests of employees affected by the acquisition. *Financial Provisions: Mechanisms for determining and paying compensation to the original company. *Legal and Regulatory Framework:
• Overriding Effect: The Act's provisions supersede other laws.
• Penalties for Non-Compliance: Stipulations for penalties against violations.
• Protection for Good Faith Actions: Immunity for actions taken under the Act in good faith.
• Rule Making Authority: Empowerment to create rules for effective implementation.
Legislative history
Legislative History:
The Bird and Company Limited (Acquisition and Transfer of Undertakings and Other Properties) Act, 1980
Legislative History: The Bird and Company Limited (Acquisition and Transfer of Undertakings and Other Properties) Act, 1980
● Act Title - The Bird and Company Limited (Acquisition and Transfer of Undertakings and Other Properties) Act, 1980
● Act Number / Year - 67 of 1980
● Act ID (India Code) - 198067
● Presidential Assent Date - December 27, 1980
● Enforcement Date - October 25, 1980
● Nodal Ministry - Ministry of Steel
Precedent & Historical Rationale
● Restructuring of Historical Industrial Conglomerates - Bird & Company (originally a prominent British-era managing agency conglomerate founded in the 19th century) controlled vast interests in engineering, coal, jute, mining, and trading. Following post-independence financial mismanagement, severe liquidity crises, and mounting liabilities, the management of the company was initially taken over under the Industries (Development and Regulation) Act, 1951.
● Nationalisation for Industrial Recovery - Formulated to acquire the undertakings and properties of Bird and Company Limited to ensure effective utilization of production assets, safeguard employment, and protect public sector financial institution investments. The assets and engineering operations were nationalized and vested in public sector entities, leading to the creation/restructuring of enterprises like Bharat Process and Mechanical Engineers Limited (BPMEL) and heavy engineering/mining units in Eastern India.
Parliamentary Trajectory & Enactment
● Formulation - Introduced by the Union Ministry of Industry/Heavy Industry to replace the Bird and Company Limited (Acquisition and Transfer of Undertakings and Other Properties) Ordinance, 1980 (Ordinance 18 of 1980) promulgated by President N. Sanjiva Reddy on October 25, 1980.
● Parliamentary Passage - Debated and passed by both Houses of Parliament (Seventh Lok Sabha and Rajya Sabha) during the winter session in November–December 1980.
● Presidential Assent - Received Presidential Assent on December 27, 1980.
● Enforcement - Enforced on October 25, 1980.
Source - Official Record of Parliament, India Code, and Ministry of Steel.