Report No. 251

13. Burmah Shell (Acquisition of Undertakings in India) Act, Act 2 of 1976

Category: Nationalisation

Recommendation: Consider for Repeal

This Act provided that on the appointed date, the right, title and interest of Burmah Shell undertakings in India would be transferred to the Central Government. It further gave the power to the Central Government to transfer these holdings to a Government Company. The Government acquired at the same time the Burmah Shell Refineries Limited, and vested all assets of the Company in this company, which was later renamed Bharat Petroleum Corporation Limited (BPCL) in 1977.

The Act provided for the nationalisation of Burmah Shell and matters connected therewith, such as amount to be paid on transfer of the undertaking of the Company, transfer of service of existing employees, etc. The purpose of this Act has been served insofar the nationalisation of the concerned entity was concerned.

The Act does not contain provisions of the management of the nationalised entity. Hence, this Act does not serve any continuing purpose with respect to the nationalised entity. As a matter of abundant caution, a study of all the nationalisation Acts should be done before with a view to consider repeal of these Acts. If necessary, a suitable savings clause should be inserted in the repealing Act.