Statute Law Repeals - Law Commission - Ministry of Justice

3.88 The South Indian Railway Act 1874 98 combined the former companies into a
single undertaking and gave binding force to the 1873 agreement. The effect was
to rescind all existing government contracts and to replace them with the
aggregated version, to extend to the new company the provisions enacted in the
1858 and 1860 Acts, 99 and to apply to the company the Indian Railway
Companies Act 1868. 100 The new company was to inherit all the assets of the
former companies from July 1874 onwards, including converted stocks and
shares, and interest on the company’s capital (with a fixed ceiling) was to be
guaranteed by the Secretary of State at 5% p.a. The railway company’s contractmaking
powers were extended beyond those set out in 1858 to embrace the
construction of new lines, culminating in eventual surrender or sale of the
undertaking to the government.
3.89 By 1888 additional contract-making and finance-raising powers were needed for
the railway company. Considerable progress had been made in completing and
opening new lines, including that between Madras and Tanjore. The South Indian
Railway (Additional Powers) Act 1888 101 authorised the company to enter into
contracts with government and third parties (including governments of any “native
state”) 102 for the construction and working of any railway operation, and to raise
moneys by share issue and mortgage or debenture borrowing (subject to
government sanction and ring-fencing of the amounts raised).
3.90 In 1891 the South Indian Railway Company’s contract with the government
expired and government then purchased all of its lines. A notice published the
previous October indicated the company’s intention to distribute the purchase
price amongst its directors and registered proprietors. 103
3.91 The South Indian Railway Company went into voluntary liquidation in September
1948. 104 On that basis, the four Acts from 1858 to 1888 are now unnecessary and
can be repealed as a whole.
98 37 & 38 Vict. c.cxii (1874).
99 As above.
100 31 & 32 Vict. c.26 (1868). This Act (repealed in 1964) enabled various guaranteed Indian
railway companies, including now the South Indian Railway, to raise moneys by the issue
of debenture stock.
101 51 & 52 Vict. c.v (1888).
102 This expression was designed to embrace states or territories under the suzerainty of the
British Crown, often with a separate prince or ruler, but which were not part of “British
India” (formally within the sovereign’s overseas dominions).
103 See the London Gazette, Issue 26102, 31 October 1890, p 5756.
104
See the Board of Trade archives at the National Archives under reference no.
BT31/31230/32802.
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