THE ASSOCIATED CEMENT (VESTING) ACT, 1974

The Associated Cement (Vesting) Act of 1974 is a key piece of legislation in Pakistan that pertains to the nationalization and control of cement factories. This act was enacted to vest ownership and control of certain cement factories and undertakings in the government, aiming to regulate the production, distribution, and pricing of cement to ensure its equitable availability and affordability for various construction and infrastructure projects.

Short title and commencement
Definitions
Vesting of Associated Cement in Corporation
Continuance in service of employees, etc.
Administration, etc., of the Associated Cement
Provident Fund
Investment by the Federal Government
Indemnity
Bar of jurisdiction
Power to make rules
Removal of difficulties
[Repeal]

1ACT No. VII OF 1975

[13th January, 1975]

An Act to provide for the vesting of the Associated Cement in the State Cement Corporation of

Pakistan Limited.

WHEREAS it is expedient to provide for the vesting of the Associated Cement in the State

Cement Corporation of Pakistan Limited and for matters connected there with or incidental thereto;

It is hereby enacted as follows:

___

Short title and commencement.

___(1) This Act may be called the Associated Cement

(Vesting) Act, 1974.

(2) It shall come into force at once.

Definitions.— In this Act, unless there is anything repugnant in the subject or context,

___

(a) “Associated Cement” means the undertakings known as Associated Cement

which immediately before the commencing day vested in the Federal

Government, together with all lands, buildings, machinery, appliances, fixtures

and funds appertaining thereto;

(b) “commencing day” means the day on which this Act comes into force; and

formed and registered under the Companies Act, 1913 (VII of 1913).

Vesting of Associated Cement in Corporation.— As from the commencing day,—

(a) the Associated Cement shall vest in the Corporation and all powers which

immediately before that day were exerciseable by the Federal Government in

relation to the Associated Cement shall be exerciseable by the Corporation ;

(b) all rights, properties, assets, liabilities, debts and obligations of the Federal

Government relating to the Associated Cement shall be the rights, properties,

assets, liabilities, debts and obligations of the Corporation;

for the purposes of the Associated Cement shall be deemed to have been

made on behalf of the Corporation;

(d) all suits and other legal proceedings in relation to the Associated Cement

instituted, or deemed to have been instituted, by or against the Federal

Government shall be deemed to be suits and proceedings instituted by or

against the Corporation and may be proceeded with accordingly ; and

1For Statement of Objects and Reasons, see Gaz. of P., 1974, Ext., Pt.III, p.1357.

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(e) all orders and instructions issued by the President or the Federal Government

before the commencing day in relation to the Associated Cement shall, to the

extent they are not inconsistent with the provisions of this Act, be deemed to

be orders and instructions issued by the Corporation.

Continuance in service of employees, etc.

___ (1) Every officer and employee

employed for the purposes of the Associated Cement shall, on the commencing day, become an

officer or employee, as the case may be, of the Corporation and shall hold office therein on such

terms and conditions, which are not less favourable than those to which he was entitled immediately

before the commencing day, as the Corporation may determine:

Provided that an officer or employee of the Corporation shall, unless his services are earlier

terminated in accordance with the terms and conditions applicable to him, retire from service on the

completion of the fifty-eighth year of his age.

(2) Any officer or employee who becomes an officer or employee of the Corporation under

sub-section (1) may be transferred—

(a) by the Corporation, to any company or project set up by it, or

(b) by the Federal Government, to any other corporation, company or industrial

unit controlled by it,

and shall hold office therein on terms and conditions which are not less favourable than those to

which he was entitled immediately before such transfer.

(3) Any officer or employee who becomes an officer or employee of the Corporation under

sub-section (1), or is transferred under sub-section (2), shall not be entitled to any compensation or to

the designation which he was holding immediately before the commencing day or, as the case may

be, the date of such transfer, and no claim for such compensation or designation shall be entertained

by any court, tribunal or other authority.

(4) If any question arises as to whether any person was, immediately before the commencing

day, an officer or employee employed for the purposes of the Associated Cement, the question shall

be referred to the Federal Government whose decision shall be final.

Administration, etc., of the Associated Cement.

___ (1) The Corporation shall, subject to

the provisions of this Act, be competent to administer, control, operate, manage, reorganise or

dispose of the Associated Cement in such manner as it deems fit.

(2) In particular and without prejudice to the generality of the foregoing provision, the

Corporation may, with the approval of the Federal Government, transfer the management of the

Associated Cement to one or more companies sponsored by the Corporation and registered under the

Companies Act, 1913 (VII of 1913).

Provident Fund.___ (1) Notwithstanding anything contained in the rules relating to the

Provident Fund of the Staff of the Associated Cement and the Provident Fund of the Workers of

Associated Cement, the accumulated balance standing to the credit of every officer or employee

referred to in sub-section (1) of section 4 in either of those Funds immediately before the

commencing day shall be paid to the Corporation.

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(2) An officer or employee referred to in sub-section (1) of section 4 shall be deemed to have

become as from the commencing day a member of the Provident Fund established, by the

Corporation and, in the records of such Provident Fund, a separate account shall be opened for such

officer or employee and be credited with the amount of the accumulated balance standing to the

credit of such officer or employee in the Provident Fund of the Staff of the Associated Cement or, as

the case may be, the Provident Fund of the Workers of the Associated Cement immediately before

the commencing day.

(3) Where the services of any officer or employee referred to in sub-section (1) of section 4

are transferred to any other corporation or company, the accumulated balance standing to the credit

of every such officer or employee in the Provident Fund of the Corporation immediately before such

transfer shall be paid to such other corporation or company and, in the records of the Provident Fund

of the corporation or company, a separate account shall be opened for such officer or employee and

be credited with the amount of the accumulated balance standing to his credit in the Provident Fund

of the Corporation immediately before such transfer.

Investment by the Federal Government.

___ (1) The investment made by the Federal

Government in the Associated Cement before the commencing day shall be deemed to be the

Federal Government’s equity in the Corporation:

Provided that the loans advanced for the expansion of the factories of the Associated Cement

and the interest thereon shall be repayable by the Corporation.

(2) The amount of equity referred to in sub-section (1) shall be determined by the

Federal Government in consultation with the Corporation.

Indemnity.— No suit, prosecution or other legal proceeding shall lie against the Federal

Government, the Corporation or any other person for anything in good faith done or intended or

purported to be done under this Act.

Bar of jurisdiction.___ (1) No court shall call in question, or permit to be called in

question any provision of this Act, or of any rule or order made or anything done or any action

taken or purporting to be made, done or taken thereunder.

(2) No court shall grant any injunction, make any order or entertain any proceedings in

relation to anything done or intended or purporting to be done under this Act.

Power to make rules.— The Federal Government may, by notification in the official

Gazette, make such rules as appear to it to be necessary or expedient for carrying out the purposes of

this Act.

Removal of difficulties.— If any difficulty arises in giving effect to any provision of

this Act, the Federal Government may make such order or issue such directive, not inconsistent with

the provisions of this Act, as may appear to it to be necessary or expedient for the purpose of

removing the difficulty:

Provided that no such order shall be made after the expiry of one year from the commencing

day.

[Repeal].— Omitted by the Federal Laws (Revision and Declaration) Ordinance,

1981 (XXVII of 1981),s.3 and Sch.,II.

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