The National Company Limited (Acquisition and Transfer of Undertakings) Act, 1980
Administered Ministry: Ministry of Textiles
Act details
| Short title | The National Company Limited (Acquisition and Transfer of Undertakings) Act, 1980 |
|---|---|
| Long title | 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. |
| Act number | 42 of 1980 |
| Act year | 1980 |
| Enactment date | 19 Jul 1980 |
| Ministry | Ministry of Textiles |
| Jurisdiction | Central (Parliament of India) |
| Sections | 35 |
| Schedules | 1 |
| Status | Not repealed |
| Last checked on India Code | 2 Nov 2026 |
| Source | India Code, Government of India |
Summary
Summary of The National Company Limited (Acquisition and Transfer of Undertakings) Act, 1980
Key Provisions
1. Transfer and Vesting: * Undertakings of National Company Limited vest in the Central Government (Section 3, referenced in 198058.pdf but details in 198042.pdf context are incomplete)
2. Definitions: *Appointed Day: 27th April, 1980 *Company: Messrs. National Company Limited, Calcutta *Existing/New Government Company: Defined in relation to the appointed day
3. Management and Liability: * Power of the Central Government to direct vesting in an existing Government company (Section 5, 198042.pdf)
• Company's liability for certain prior liabilities (Section 7, 198042.pdf)
• Assets, rights, and properties vest in the Central Government
• Freed from encumbrances
• Provisions for mortgagees and claimants
4. Sections 29 and 30: Came into force at once (exact date not specified)
• Remaining Provisions: Deemed to have come into force on 27th April, 1980 *Purpose:
• Acquisition and Transfer of the undertakings of Messrs. National Company Limited
• Ensure proper management to serve the general public's interests by continuing the manufacture, production, and distribution of jute articles essential to the country's economy
Legislative history
Legislative History:
The National Company Limited (Acquisition and Transfer of Undertakings) Act, 1980
● Act Title - The National Company Limited (Acquisition and Transfer of Undertakings) Act, 1980
● Act Number / Year - 42 of 1980
● Act ID (India Code) - 198042
● Presidential Assent Date - July 19, 1980
● Enforcement Date - April 27, 1980
● Nodal Ministry - Ministry of Textiles
Precedent & Historical Rationale
● Nationalisation of Critical Jute Infrastructure - Enacted to acquire and transfer the undertakings of the National Company Limited (a major jute manufacturing company based in Rajganj, West Bengal) to secure the proper management and revitalization of the unit.
● Socio-Economic Protection of Workers & Jute Sector - Formulated in response to severe financial mismanagement, operational sickness, and impending closure of the mill. To protect the livelihood of thousands of jute workers, ensure uninterrupted production of jute goods essential to the national economy, and rehabilitate industrial assets, the Central Government nationalized the company, subsequently vesting its management and assets into National Jute Manufactures Corporation (NJMC) Limited.
Parliamentary Trajectory & Enactment
● Formulation - Introduced by the Union Government to replace the National Company Limited (Acquisition and Transfer of Undertakings) Ordinance, 1980 (Ordinance 4 of 1980) promulgated by President N. Sanjiva Reddy on April 27, 1980.
● Parliamentary Passage - Debated and passed by both Houses of Parliament (Seventh Lok Sabha and Rajya Sabha) during the monsoon session in June–July 1980.
● Presidential Assent - Received Presidential Assent on July 19, 1980.
● Enforcement - Enforced on April 27, 1980 .
Source - Official Record of Parliament, India Code, and Ministry of Textiles.