Report No. 251
21. Hindustan Tractors Limited (Acquisition and Transfer of Undertakings) Act, Act 13 of 1978
Recommendation: Consider for Repeal
The Act provided for the acquisition and transfer of the undertakings of Hindustan Tractors Limited. In 1999, the Mahindra and Mahindra Group acquired 60% of Hindustan Tractors Limited, and by 2001 the rest of the company was also purchased. It was then renamed to Mahindra Gujarat Tractors Ltd., and is now a Mahindra and Mahindra enterprise.
The Act provided for the nationalisation of Hindustan Tractors and for 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.