Statute Law Repeals - Law Commission - Ministry of Justice

3.59 In 1853 - the year that the first passenger train in India ran - the agreement was
adjusted to vary the financial arrangements, including doubling of the share
capital, and to allow the railway company to build an extension to Shawpoor (now
Shahpur). A year later further contracts were in the offing, but new legislation was
required to reinforce the company’s financial dealings, particularly with regard to
interest payments and net receipts. The Great Indian Peninsula Railway
Company Act 1854 61 authorised the railway company to launch a new share
issue, and reclassify others, and required it to assign distinctive titles to all new
contracts and supporting share issues. It also required the railway company, if
and when the purchase option was exercised, to apportion and distribute the sale
receipt amongst its shareholders.
3.60 The 1854 Act repealed a small portion of the 1849 Act 62 but otherwise both Acts
remain intact.
3.61 By 1899 some 22 contracts had been executed with the East India Company and
its successor, the Secretary of State in Council of India. In August of that year, at
the 50 year break point under the 1849 agreement, the Secretary of State
exercised the option to purchase the railway undertaking (for a sum of just under
£35 million, plus the value of the debentures). The Secretary of State opted to
pay by annuity spread over the remaining 49 years and expiring in August 1948.
The Secretary of State was also to take over responsibility for the provident fund.
3.62 Transfer of the railway required the creation of a sinking fund, allowing the
various stockholders to exchange their stock for annuities. The Great Indian
Peninsula Railway Purchase Act 1900 63 authorised the formal transfer of the
operating assets in June 1900, together with the railway company’s leasehold
offices and three separate funds (including the provident fund), and required the
Secretary of State to establish the purchase price annuity fund. The railway
company was given additional contractual powers to maintain, manage and work
the railway system, and was empowered to set up the sinking fund to be
managed by annuity trustees (which fund would be distributed in August 1948).
Two classes of annuitant were established. Pensions for loss of office by certain
railway company employees were also to be paid.
61 17 & 18 Vict. c.xliv (1854) (“The 1854 Act”).
62
Section 7 of the 1849 Act (which governed call on share arrangements) was repealed by
section 10 of the 1854 Act.
63 63 & 64 Vict. c.cxxxviii (1900) (“The 1900 Act”).
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