1. (1) This Act may be called he Air Corporations (Transfer of Undertakings
and Repeal) Act. 1994.
(2) it shall be deemed to have come into force on the 29th day of January,
1994.
2. In this Act. unless the context otherwise requires,-
(a) “appointed day” means such date as the Central Government may ,
by notification in the Official Gazette, appoint under Section 3;
(b) “Company” means “Indian Airlines Limited” or “ Air India
Limited’ formed and registered under the Companies Act., 1956;
(c) “corporation” means “Indian Airlines” and “Air India “ established
under Section 3 of the Air Corporations Act, 1953 and “corporation”
means either of the corporations.
3. On such date as the Central Government may, by notification in the
Official Gazette, appoint, there shall be transferred to, and vest in,-
(a) Indian Airlines Limited, the undertaking of Indian Airlines;
(b) Air India Limited, the undertaking of Air India
4. (1) The undertaking of a corporation which is transferred to,
and which vests in a company under section 3 shall be deemed to include all
assets, rights powers, authorities and privileges and all properties, movable
and immovable, real or personal, corporeal or incorporeal, in possession or
reservation, present or contingent, of whatever nature and wheresoever situate,
including lands works, workshops, aircraft, cash balances, capital reserves,
Short
title and
commen
cement
Definitions
Undertakings
of
corporations
to vest in
companies
General
effect of
vesting of
undertakings
in the
companies
1 of 1956
27 of 1953
reserve funds, investments, tenancies, leases and book debts and all other
rights and interests arising out of such property as were immediately before
the appointed day in the ownership, possession or power of that corporation in
relation to its undertaking, whether within or outside India, all books of
account and documents relating thereto and shall also be deemed to include all
borrowings, liabilities and obligations of whatever kind then subsisting of that
corporation in relation to its undertaking.
(2) All contracts and working arrangements subsisting immediately
before the appointed day and affecting a corporation shall in so far as they
relate to the undertaking of that corporation, cease to have effect or to be
enforceable against that corporation and shall be of as full force and effect
against or in favour of the company in which the undertaking has vested by
virtue of this Act. and enforceable as fully and effectually as if, instead of the
corporation, the company had been named therein or had been a party thereto.
(3) Any proceeding or cause of action pending or existing
immediately before the appointed day by or against a corporation in relation to
its undertaking may, as from that day, be continued and enforced by or against
the company in which it has vested by virtue of this Act. as it might have been
enforced by or against that corporation if this Act. had not been passed, and
shall cease to be enforceable by or against that corporation.
5. With effect from the appointed day, all licences, permits,
quotas and exemptions granted to a corporation in connection with the affairs
and business of that corporation under any law for the time being in force shall
be deemed to have been granted to the company in which the undertaking of
that corporation has vesed.
6. (1) Where any exemption from, or any assessment with respect to
any tax has been granted or made or any benefit by way of set off or carry
forward, as the case may be, of any unabsorbed depreciation or investment
allowance or other allowance or loss has been extended or is available to a
corporation under the Income-tax Act., 1961 such exemption, assessment or
benefit shall continue to have effect in relation to the company in which the
undertaking of that corporation has vested.
(2) Where any payment made by a corporation is exempt from
deduction of the tax at source under any provision f the Income-tax Act., 1961,
the exemption from tax will continue to be available as if the provisions of the
said Act made applicable to the corporation were operative in relation to the
company in which the undertaking of that corporation has been vested.
(3) The transfer and vesting of the undertaking or any part thereof
in terms of section 3 shall not be construed as a transfer within the meaning of
the Income-tax Act,. 1961 for the purposes of capital gains.
7. Any guarantee given for or in favour of a corporation with respect to
any loan or lease finance shall continue to be operative in relation to the
company in which the undertaking of that corporation has vested by virtue of
this Act.
Licences, etc.
to be deemed
to have been
granted to
companies
43 of 1961
43 of 1961
43 of 1961
Tax
exemption
or benefit
to continue
to have
effect.
Guarantee
to be
operative.
8. (1) Every officer or other employee of a corporation (except a
Director of the Board, Chairman, managing Director or any other person
entitled to manage the whole or a substantial part of the business and affairs of
the corporation) serving in its employment immediately before the appointed
day shall in so far as such officer or other employee is employed in connection
with the undertaking which has vested in a company by virtue of this Act.,
become, as from the appointed day, an officer or other employee, as the case
may be, of the company in which the undertaking has vested and shall hold his
office or service therein by the same tenure, a the same remuneration, upon the
same terms and conditions, with the same obligations and with the same rights
and privileges as to leave, passage, insurance, superannuation scheme,
provident fund, other funds, retirement, pension, gratuity and other benefits as
he would have held under that corporation if its undertaking had not vested in
the company and shall continue to do so as an officer or other employee, as the
case may be, of the company or until the expiry of a period of six months from
the appointed day if such officer or other employee opts not to be the officer
or other employee of the company within such period.
(2) Where an office or other employee of a corporation opts under sub- section
(1) not to be in the employment or service of the company in which the
undertaking of that corporation has vested, such officer or other employee
shall be deemed to have resigned.
(3) Notwithstanding anything contained in the Industrial Disputes
Act., 1947 or in any other law for the time being in force, the transfer of the
services of any officer or other employee of a corporation to a company shall
not entitle such officer or other employee to any compensation under this Act.,
or under any other law for the time being in force and no such claim shall be
entertained by any court, tribunal or other authority.
(4) The officers and other employees who have retired before the
appointed day from the service of a corporation and are entitled to any
benefits, rights or privileges shall be entitled to receive the same benefits,
rights or privileges from the company in which the undertaking of that
corporation has vested.
(5) The trusts of the Provident Fund or Pilots Group Insurance and
Superannuation Scheme of the corporation and any other bodies created for
the welfare of officers or employees would continue to discharge their
function in the company as was being done hitherto in the corporation. Tax
exemption granted to Provident Fund or Pilots Group Insurance and
Superannuation Scheme would continue to be applied to the company.
(6) Notwithstanding anything contained in this Act or in the Companies
Act, 1956 or in any other law for the time being in force or in the regulations
of a corporation, no Director of the Board, Chairman, Managing Director or
any other person entitled to manage the whole or a substantial part of the
business and affairs of that corporation shall be entitled to any compensation
against that corporation or against the company, as the case may be, for the
loss of office or for the premature termination of any contract of management
entered into by him with that corporation.
Provisions in
respect of
officers and
other
employees
of
corporations
14 of 1947
1 of 1956
(9) The Central Government may give to a company direction as to the
exercise and performance by that company of its functions, and that company
shall be bound to give effect to any such directions.
(10) (1) If any difficulty arises in giving effect to the provisions of this Act,
the Central Government may, by order published in the Official Gazette, not
inconsistent with a the provisions of this Act, remove the difficulty.
Provided that no such order shall be made after the expiry of a period of two
years from the coming into force of this Act.
(2) Every order made under sub-section(1) shall be laid before each House of
Parliament.
(11) (1) on the appointed day, the Air Corporations Act, 1953 shall
stand repealed.
(2) The corporations shall, with the repeal of the Air Corporations Act, 1953,
cease to exist.
(12) (1) The Air Corporations (Transfer of Undertakings and Repeal)
Ordinance, 1994 is herby repealed.
(2) Notwithstanding such repeal of the Air Corporations (Transfer of
Undertakings and Repeal) Ordinance, 1994, anything done or any action
taken under the said Ordinance shall be deemed to have been done or taken
under the corresponding provisions of the Act.