Section 6 of The Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972
- (1)The old company shall, within such period as the Central Government may allow in this behalf, furnish to that Government, and the new company, a complete inventory of all the properties and assets (including particulars of investments) of the old company on the appointed day, all liabilities and obligations of the old company subsisting on that day and also all agreements entered into by the old company and in force on that day including agreements, whether express or implied, relating to leave, pension, gratuity and other terms of service of any officer or other employee of the old company under which, by virtue of this Act, the Central Government has, or will have, or may have, the liabilities and, for this purpose, the Central Government and the new company shall afford the old company all reasonable facilities.
- (2)The old company shall, if required by the Central Government or new company so to do, furnish such returns or information relating to the undertaking referred to in section 3, or, any person employed by the old company for the purpose of such undertaking, as may be specified in such requisition.
Summary
- The old company must provide a full list of all its properties, assets, and investments to the government and the new company.
- The company must also list all of its debts, liabilities, and legal obligations that exist on the start date.
- All active contracts must be reported, including agreements about employee pensions, gratuity, and other service terms.
- The government and the new company are required to help the old company by providing the facilities needed to finish this list.
- The company must provide extra information or reports about the business or its workers whenever the government asks for them.
Practical examples
FAQ
1. What exactly needs to be in the "inventory" mentioned in this section?
It must be a complete list of all assets, investments, liabilities, and agreements that were in place on the appointed day.
2. Does the company have to do this entirely on its own?
No, the law says the Central Government and the new company must provide reasonable facilities to help the old company prepare the list.
3. Does this include information about employees?
Yes, it includes all agreements related to employee service terms like pensions and any other information the government requests about employees.
Test yourself
Q1.Under Section 6 of The Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972, what is the required content of the inventory?
Q2.Under Section 6 of The Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972, the inventory must reflect the state of the company on which specific date?
Q3.Under Section 6 of The Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972, what is the government's duty regarding the creation of this inventory?
Q4.Under Section 6 of The Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972, who can demand "returns or information" from the old company?