Statute Law Repeals - Law Commission - Ministry of Justice

Bengal and North Western Railway Company
3.14 The Bengal and North Western Railway Company came into being in October
1882 as a result of an agreement made with the Secretary of State for India. The
government had started work in 1881 on constructing a rail link between Patna
and Bahraich, along the Ghaghara River. The company agreed to complete the
construction works and, in consideration of that investment, the government
would provide a tranche of land without charge (instead of providing a
guaranteed return). Once constructed the company became responsible for the
railway’s operation under the concession agreement, 12 although the line was to
remain the property of the state. The first phase of the line opened in April 1884.
3.15 In 1890 the company took over management of the Tirhoot State Railway, and
managed further lines up until 1943. The undertaking was then amalgamated
with the Rohilkund and Kumaon Railway and the Lucknow Bareilly Railway to
form the Oudh-Tirhut Railway. All existing contracts with the Indian government
were determined, and the railway became entirely state-owned. The original
Bengal and North Western Railway Company was formally wound up in 1946.
3.16 Prior to 1914 the company decided it needed to effect a financial restructuring
which would involve reducing a portion of the company’s capital via a capital
redemption fund. The restructuring was designed to facilitate in due course a sale
of the company’s assets to government. The Bengal and North Western Railway
Company Limited Act 1914 13 provided the necessary authority to the directors.
3.17 Given the subsequent merger and acquisition of the railway company, the 1914
Act has long become obsolete in the UK, and may be repealed.
Bombay Baroda and Central India Railway Company
3.18 The Bombay Baroda and Central India Railway Company was incorporated in
1855, at which point (as one of the first guaranteed railway companies assured of
a 5% return on its capital invested) it commenced work on construction of the
Surat to Bombay (today Mumbai) line. The line opened in stages, reaching
Baroda (today Vadodara) in 1861, Ahmedabad in 1863, and Viramgaon by
1871. 14
12 Under the agreement of 1882 the railways and “all other appurtenances” were to revert to
the Secretary of State at value at the end of 99 years, unless the Secretary of State
exercised his right to purchase in 1932 (the 50 year break point). When the railway
became fully state-owned (in 1943: see below) the agreement was superseded.
13 4 & 5 Geo.5 c.viii (1914).
14 Under the terms of four contracts made with the Indian government from 1855 to 1886 the
Secretary of State was empowered to exercise an option (on notice) to purchase the
railway works and premises.
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