Subject NOT available

15. After section 19 of the principal Act, the following section shall be inserted, namely: —

Insertion of new sec* tton 19A.

Assessment Of persona leaving India.

5

10 "19A. (I) Notwithstanding anything contained in section 3, when it appears to the Gift-tax Officer that any individual may leave India during the current assessment year or shortly after its expiry and that he has no present intention of returning to India, the gifts made by such individual during the period from the expiry of the previous year for that assessment year up to the probable date of his departure from India, shall be chargeable to ffift-tax in that assessment vear.

(2) The taxable gifts made in each completed previous yea] or part of any previous year included in such period shall be chargeable to gift-tax at the rate or rates specified in the Schedule and separate assessments shall be made in respect of each such completed previous year or part of any previous year. 15

(3) The Gift-tax Officer may estimate the value of the gifts made by such individual during such period or any part thereof, where it cannot be readily determined in the manner provided in this Act.

20

25

jo (4) For the purpose- of making an assessment under sub- section (1), the Gift-tax Officer may serve a notice upon such individual requiring him to furnish, within such time, not being less than seven days, as may be specified in the notice, a return in the same form and verified in the same manner as a return under sub-section (2) of section 13, giving particulars of the gifts made by him during each completed previous year comprised in the period referred to in sub-section (I) and during any part of the previous year comprised in that period; and the provisions of this Act shall, so far as may be, and subject to the provisions of this section, apply as if the notice were a notice issued under sub-section (2) of section 13.

(5) The gift-tax chargeable under this section shall be in addition to the tax, if any, chargeable under any other provision of this Act.

35

40 (6) Where the provisions of sub-section (2) are applicable, any notice issued by the Gift-tax Officer under sub-section (2) of section 13 or under section 16 in respect of any gift-tax charge- able under any other provisions of this Act may, notwithstanding anything contained in sub-section (2) of section 13 or section 16, as the case may be, require the furnishing of the return by such individual within such period, not being less than seven days, aa the Gift-tax Officer may think proper.".

16. In Chapter V of the principal Act, after section 21, the follow-

ing section shall be inserted, namely: —

Insertion of new jection 21 A.

5

Assess- ment of donea when donor can- not be found.

10

"21A. (I) Where a Giit-tax Officer after using all due and reasonable diligence cannot find the donor who has made any taxable gifts, for the purpose of service of notice under sub- section (2) of section 13 or under section 16, the Gift-tax Officer may make an assessment of the value of all such taxable gifts made by him and determine the gift-tax payable by him and for this purpose may, by the issue of the appropriate notice which would have had to be served upon the donor, require from the donee or donees any accounts, documents or other evidence which might, under the provisions of section 15, have been required from the donor.

15

(2) Where any assessment in respect of the taxable gifts made by the donor has been made under sub-section (1), every donee shall be liable for the gift-tax so assessed:

Provided that where the donees are more than one, they shall be jointly and severally liable for the amount of the gift-tax so assessed:

20

Provided further that the amount of the gift-tax which may be recovered from each donee shall not exceed the value of the gift made to him as on the date of the gift.

(3) The provisions of sections 13, 14 and 16 shall apply to a donee as they apply to any person referred to in those sections.".

25 17. In section 22 of the principal Act,—

(i) in sub-section (2) —

Amend- ment of section 22.

(a) in clause (a), the word "his" shall be omitted;

(b) in clause (f) —

30

(1) for the words, brackets and figures "sub-section (1) of section 46 of the Income-tax Act", the words, brackets and figures "sub-section (1) of section 221 M the Income-tax Act" shall be substituted;

(2) the word "or" shall be added at the end;

(c) after clause (f), the following clauses shall be

inserted, namely: —35

"(g) objecting to an order of the Gift-tax Officer under section 34 having the effect of enhancing the assessment or reducing a refund or an order refusing to allow th? ?la*m P ^e by the asseesee under that section;

or⁴⁰ "W G of I—2

(h) objecting to any fine imposed by the Gift-tax Officer under sub-section (2) of section 36;";

(ii) after sub-section (5), the following sub-sections shall be inserted, namely:—

5

10 "(5A) In disposing of an appeal, the Appellate Assistant Commissioner may consider and decide any matter arising out of the proceedings in which the order appealed against was passed, notwithstanding that such matter was not raised before the Appellate Assistant Commissioner by the appel- lant.

(5B) The order of the Appellate Assistant Commissioner disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for the decision,".

18. In section 23 of the principal Act,—

15 Amend- ment of lection 23.

(i) for sub-section (I),the following sub-section shall be substituted, namely:—

20 "(1) An assessee, objecting to an order passed by the Appellate Assistant Commissioner under section 17 or section 22 or sub-section (2) of section 36 or to an order passed by the Inspecting Assistant Commissioner under sub-section (3) of section 17, may appeal to the Appellate Tribunal within sixty days of the date on which the order is communicated to him.";

(") after sub-section (2), the following sub-sertion shall be 25 inserted, namely:—

30

35 "(2A) The Gift-tax Officer or the asaessee, as the case may be, on receipt of notice that an appeal against the order of the Appellate Assistant Commissioner has been preferred under sub-section (1) or sub-section (2) by the other party, may, notwithstanding that he may not have appealed against such order or any part thereof, within thirty days of the receipt of the notice, file a memorandum of cross objections, verified in the prescribed manner, against any part of the order of the Appellate Assistant Commissioner and such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the time specified in sub-section (1) or sub-section (2).";

(Hi) for sub-section (3), the following sub-section shall be substituted, namely;—

5

"(3) The Appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross objections after the expiry of the relevant period referred to' in sub-section (2) or sub-section (Z) or sub-section (2A) if it is satisfied that there was sufficient cause for not presenting it within that period.";

10

(iv) in sub-section (11), tor the words, brackets, ngures ana letter "sub-sections (5), (7) and (8) of section 5A of the Income- tax Act", the words, brackets and figures "sub-sections (1), (4) and (5) of section 255 of the Income-tax Act" shall be substituted. 19. In section 24 of the principal Act, to sub-section (3), the following Explanation shall be added, namely: —

Amend- ment of section 24.

15

"Explanation.—In computing the period of limitation for purposes of this sub-section, the time taken in giving an opportu- nity to the assessee to be reheard under the proviso to section 38 and any period during which any proceeding under this sec- tion is stayed by an order or injunction of any court shall be excluded.".

20

20. In section 25 of the principal Act, for sub-section (1), the following sub-section shall be substituted, namely:—

Amend- ment of section 25.

25

(1) An assessee objecting to an order passed by the Com- missioner under section 17 or to an order of enhancement passed by him under section 24 may appeal to the Appellate Tribunal within sixty days of the date on which the order is communicated to him.".

21. In section 26 of the principal Act,—

(i) for sub-sections (1) and (2), the following sub-sections

Amend- ment of section 26.

shall be substituted, namely: —

3o

35

40

"(1) The assessee or the Commissioner may, within sixty days of the date upon which he is served with notice of an order under section 23 or section 25, by application in the prescribed form, accompanied, where the application is made by the assessee, by a fee of rupees one hundred require the Appellate Tribunal to refer to the High Court any question of law arising out of such order and, subject to the other provisions contained in this section, the Appellate Tribunal shall, within one hundred and twenty days of the receipt of such application, draw up a statement of the case and refer it to the High Court.

(2) The Appellate Tribunal may, If it is satisfied that the applicant was prevented by sufficient cause from presenting the application within the period specified in sub-section (1), allow it to be presented within a further period not exceeding thirty days.";

5

(ii) after sub-section (3), the following sub-section shall be inserted, namely:—

10 "(3A) If, on an application made under this section, the Appellate Tribunal is of the opinion that on account of a conflict in the decisions of High Courts in respect of any particular question of law, it is expedient that a reference should be made direct to the Supreme Court, the Appellate Tribunal may draw up a statement of the case and refer it through its President direct to the Supreme Court.";

(Hi) in sub-sections (4), (5) and (6), after the words "High

15 Court", the words "or the Supreme Court" shall be inserted;

(iv) for sub-sections (7), (8) and (9), the following sub-sec- tion shall be substituted, namely:—

20 (7) The cost of any reference to the High Court or the Supreme Court which shall not include the fee for making the reference shall be in the discretion of the Court.".

22. In Chapter VI of the principal Act, after section 28, the follow- ing sections shall be inserted, namely:—

Insertion of new sections 28A -and 28B.

25 Tax to be paid not- withstand- ing refer- ence, etc,

'28A. Notwithstanding that a reference has been made to the High Court or the Supreme Court or an appeal has been preferred to the Supreme Court, tax shall be payable in accordance with the assessment made in the case.

28B. In this Chapter, "High Court" means—

(1) in relation to any State, the High Court of that State;

Definition of High Court.

(ii) in relation to the Union territories of Delhi and 30 Himachal Pradesh, the High Court of Punjab:

(Hi) in relation to the Union territories of Manipur and Tripura, the High Court of Assam;

(iv) in relation to the Union territory of Andaman and Nicobar Islands, the High Court at Calcutta;

35 (v) in relation to the Union territory of Laccadive, Mini- coy and Amtndivi Islands, the High Court of Kerala.'.

23. For section 29 of the principal Act, the following section shal

be substituted, namely:—

Substitu- tion of new s ection for section 29 Gift-tax by whom payable.

5

"29. Subject to the provisions of this Act, gift-tax shall be payable by the donor but when in the opinion of the Gift-tax Officer the tax cannot be recovered from the donor, it may be recovered from the donee:

Provided that where the donees are more than one, they shall be jointly and severally liable for the amount of tax determined to be payable by the donor:

10

Provided further that the amount of tax which may be recovered from each donee shall not exceed the value of the gift made to him as on the date of the gift.".

24. For sections 31, 32 and 33 of the principal Act, the following

sections shall be substituted, namely: —

Substitu- tion of new sections for sections 31, 32 and 33.

15

Notice of demand.

"31. When any tax, interest, penalty, fine or any other sum is payable in consequence of any order passed under this Act, the Gift-tax Officer shall serve upon the assessce a notice of demand in the prescribed form specifying the sum so payable.

20

Recovery of tax and penalties.

32. (I) Any amount specified as payable in a notice of demand under section 31 shall be paid within thirty-five days of the service of the notice at the place and to the person mentioned in the notice:

25

Provided that, where the Gift-tax Officer has any reason to believe that it will be detrimental to revenue if the full period of thirty-five days aforesaid is allowed, he may, with the previous approval of the Inspecting Assistant Commissioner, direct that the sum specified in the notice of demand shall be paid within such period being a period less than the period of thirty-five days aforesaid, as may be specified by him in the notice of demand.

30

(2) If the amount specified in any notice of demand under section 31 is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at four per cent, per annum from the day commencing after the end of the period mentioned in sub-section (1).

35

40

(3) Without prejudice to the provisions contained in sub- section (2), on an application made by the assessee before the expiry of the due date under sub-section (1), the Gift-tax Officer may extend the time for payment or allow payment by instal- ments subject to such conditions as he may think fit to impose in the circumstances of the case.

(4) If the amount is not paid within the time limited under sub-section (1) or extended under sub-section (3), as the case may be, at the place and to the person mentioned in the said notice, the assesseo shall be deemed to be in default.

5

10 (5) If, in a case where payment by instalments is allowed under sub-section (3), the assessee commits default in paying any one of the instalments within the time fixed under that sub- section, the assessee shall be deemed to be in default as to the whole of the amount then outstanding, and the other instalment or instalments shall be deemed to have been due on the same date as the instalment actually in default.

15 (6) Where the assessee has presented an appeal under section 22, the Gift-tax Officer may in his discretion and subject to such conditions as he may think fit to impose in the circumstances of the case, treat the assessee as not being in default in respect of the amount in dispute in the appeal, even though the time for payment has expired as long as such appeal remains undisposed of.

20 Mode of recovery.

25 33. The provisions contained in sections 221 to 227, 229, 231 and 232 of the Income-tax Act and the Second and Third Schedules to that Act and any rules made thereunder shall, so far as may be, apply as if the said provisions were provisions of this Act and referred to gift-tax and sums imposed by way of penalty, fine and interest under this Act instead of to income-tax and sums imposed by way of penalty, fine and interest under that Act and to Gift-tax Officer and Commissioner of Gift-tax instead of to Income-tax Officer and Commissioner of Income-tax.

30 Explanation I.—Any reference to sub-section (2) or sub- section (6) of section 220 of the Income-tax Act in the said provisions of that Act or the rules made thereunder shall be construed as references to sub-sections (2) and (6) respectively of section 32 of this Act.

35 Explanation II.—The Tax Recovery Officer and the Tax Recovery Commissioner referred to in the Income-tax Act or the rules made thereunder shall be deemed to be the Tax Recovery Officer and the Tax Recovery Commissioner for the purposes of recovery of gift-tax and sums imposed by way of penalty, fine and interest under this Act".

25. After Chapter VII of the principal Act, the following Chapter shall he inserted, namelv: —

Insertion of new Chapter VIIA.

"CHAPTER VIIA

REFUNDS

Refunds.

5

33A. (1) Where, as a result of any order passed in appeal 01 other proceeding under this Act, refund of any amount becomes due to the assessee the Gift-tax Officer shall, except as otherwise provided in this Act, refund the amount to the assessee withoul his havinc to make any claim in that behalf.

10

15

(2) Where an order giving rise to a refund is the subject matter of an appeal or further proceeding or where any other proceeding under this Act is pending, and the Gift-tax Officer is of the opinion that the grant of refund is likely to adversely affect the revenue, the Gift-tax Officer may, with the previous approval of the Commissioner withhold the refund till such time as the Commissioner may determine.

10

(3) Where a refund is due to the assessee in pursuance of an order referred to in sub-section (1) and the Gift-tax Officer does not grant the refund within a period of six months from the date of such order, the Central Government shall pay to the assessee simple interest at four per cent, per annum on the amount of refund due from the date immediately following the expiry of the period of six months aforesaid to the date on which the refund is granted.

25

30

(4) Where a refund is withheld under the provisions of sub- section (2), the Central Government shall pay interest at the aforesaid rate on the amount of refund ultimately determined to be due as a result of the appeal or further proceedings for a periofl commencing after the expiry of six months from the date of the order referred to in that sub-section to the date the refund is granted.

35

(5) Where under any of the provisions of this Act, a refund is found to be due to any person, the Gift-tax Officer, Appellate Assistant Commissioner or Commissioner, as the case may be, may, in lieu of payment of the refund, set off the amount to be refunded or any part of that amount, against the sum, if any, remaining payable under this Act by the person to whom the refund is due, after giving an intimation in writing to such person of the action proposed to be taken under this section.".

26. For section 34 of the principal Act, the following section shall be substituted, namely: —

Substitu- tion of new section for section 34.

"34. (i) With a viuw to rectifying any mistake apparent :rom the record—

Rectifica- tion of mistakes.

(a) the Gift-tax Officer may amend any order of assess- 5 ment or of refund or any other order passed by him;

(b) the Appellate Assistant Commissioner may amend any order passed by him under sub-section (1) of section 17 or under section 22:

to (c) the Inspecting Assistant Commissioner may amend any order passed by him under sub-section (3) of section 17;

(d) the Commissioner may amend any order passed by him under sub-section (1) of section 17 or under section 24;

(e) the Appellate Tribunal may amend any order passed

15 by it under sub-section (1) of section 17 or section 23 or section 25.

(2) Subject to other provisions of this section, the authority concerned—

(a) may make an amendment under sub-section (1) of

20 its own motion; and

(b) shall make such amendment for rectifying any such mistake which has been brought to its notice by the assessee, and where the authority concerned is the Appellate Assistant Commissioner or the Appellate Tribunal by the Gift-tax Officer also.

X

3O (3) An amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made under this section unless the authority concerned has given notice to the assessee of its intention so to do and has allowed the assessee a reasonable opportunity of being heard.

(4) Where an amendment is made under this section, an order shall be passed in writing by the Gift-tax authority con- cerned.

35 (5) Subject to the provisions of sub-section (2) of section 33, where any such amendment has the effect of reducing the assessment, the Gift-tax Officer shall make any refund which may be due t" such assessee,

5

(6) Where any such amendment has the effect of enhancing the assessment or reducing a refund already made, the Gift-tax Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be issued under section 31 and the provisions of this Act shall apply accordingly.

(7) No amendment under this section shall be made after the expiry of four years from the date of the order sought to be amended.".

27. In section 35 of the principal Act,—

10

Amend- ment of section 35, (i) after sub-section (2), the following sub-section shall be inserted, namely:—•

i5

" {2A) If a person abets or induces in any manner another person to make and deliver an account, statement or declara- tion relating to any gifts chargeable to tax which is false and which he either knows to be false or does not believe to be true, he shall, on conviction before a Magistrate, be punish- able with simple imprisonment which may extend to six months or with fine which may extend to one thousand rupees or with both.";

20

(ii) for the Explanation, the following Explanation shall be substituted, namely: —

"Explanation.—For the purposes of this section, 'Magis- trate' means a Presidency Magistrate or a Magistrate of the first class.".

28. For section 36 of the principal Act, the following section shall be substituted, namely: —

Substitution of new section for section 36.

30

5 of 1908.

Power regarding discovery, production of evi- dence, etc. "36. (1) The Gift-tax Officer, the Appellate Assistant Com- missioner, the Commissioner and the Appellate Tribunal shall, for the purposes of this Act, have the same powers as are vested in a Court under the Code of Civil Procedure, 1908, when trying a suit in respect of the following matters, namely: —

(0) discovery and inspection;

35

(b) enforcing the attendance of any person, including any officer of a banking company and examining him on oath;

(c) compelling the production of books of account and other documents; and

(d) Issuing commissions.

806 G. of 1.^3.

5 (2) Without prejudice to the provisions of any other law for the time being in force, where a person to whom a summons is issued either to attend to give evidence or produce books of account or other documents at a certain place and time, inten- tionally omits to attend or produce the books of account or document at the place or time, the authority empowered to issue such summons may impose upon him such fine not exceeding five hundred rupees as it thinks fit, and fine so levied may be recovered in the manner Drovided in Chapter VII.".

lo 29. To section 38 of the principal Act, the following proviso shall be added, namely: —

Amend- ment of section 38.

"Provided that the assessee concerned may demand that before the proceeding is so continued the previous proceeding or any part thereof be reopened or that before any order of assess- ment is passed against him, he be reheard.". 15

30. For section 39 of the principal Act, the following section shall be substituted, namely:—;

Substitu- tion of new section for section 39.

Computa- tion of period of limitation.

20 "39. In computing the period of limitation prescribed for an appeal or an application under this Act, the day on which the order complained of was served and if the assessee was not furnished with a copy of the order when the notice of the order was served upon him, the time requisite for obtaining a copy of such order, shall be excluded.".

31. In section 40 of the principal Act, after sub-section (2), the following sub-sections shall be inserted, namely: —

Amend- ment of section 40.

25

3O "(3) After a finding of total partition has been recorded by the Gift-tax Officer under section 20 in respect of any Hindu family, notices under this Act in respect of the gifts made by the family shall be served on the person who was the last manager of the Hindu family, or if such person is dead, then on all sur- viving adults who were members of the Hindu family imme- diately before the partition.

35 (4) Where a firm or other association of persons is dissolved, notices under this Act in respect of the gifts made by the firm or association may be served on any person who was a partner (not being a minor) or member of the association, as the case may be, immediately before its dissolution.".

32. For section 41 of the principal Act, the following section shall

be substituted, namely: —

"41. The provisions of sections 137 and 280 of the Income-tax

5

Substitu- tion of new section for section 41. Prohibi- tion of dis- closure of informa- tion.

10

Act shall apply to the disclosure of particulars contained in all accounts or in relation to statements, documents, evidence or affidavits given, produced or obtained in connection with or in the course of any proceedings under this Act, as they apply to or in relation to similar particulars under that Act, subject to the modification that the reference to any income-tax authority in clause (iv) of sub-section (3) of section 137 of that Act shall be construed as a reference to any Gift-tax authority.".

33. In section 41A of the principal Act, in sub-section (3), after

clause (j), the following clause shall be inserted, namely: —

Amend- ment of section 41A.

15

" (ia) in the case of an assessee mentioned in clause (a) of sub-section (1) or in clause (b) of sub-section (2), who presented an appeal under sub-section (1) of section 23 against the order of penalty passed by the Inspecting Assistant Commissioner under sub-section (3) of section 17, until the appeal is disposed of by the Appellate Tribunal;".

20 34. For section 43 of the principal Act, the following section shall

be substituted, namely: —

25

Substitution af new section for lection 43. Appearance before Gift- tax autho 1 :ies by authorised representa- tives.

"43. An assessee who is entitled to or required to attend before any Gift-tax authority or the Appellate Tribunal in con- nection with any proceeding under this Act, except where he is required under this Act to attend in person, may attend by a person who would be entitled to represent him before any In- come-tax authority or the Appellate Tribunal under section 288 of the Income-tax Act.",

30

Amend- ment of section 45.

35. In section 45 of the principal Act, in clause (e), for the words, brackets and figures "clause (i) of sub-section (3) of section 4", the word and figure "section 11" shall be substituted.

36. Tn section 46 of the principal Act, for sub-section (4), the

following sub-section shall be substituted, namely:—

Amend- ment of section 46.

35

40

"(4) The Central Government shall cause every rule made under this Act to be laid as soon as may be after it is made before each House of Parliament while it Is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and, if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modifications in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however that any such modification or annulment shall be without prejudice to the validity of any- thing previously done under that rule.".

45

STATEMENT OF OBJECTS AND REASONS

The Income-tax law has been recodified in the Income-tax Act, 1961. As the basic pattern of the Gift-tax law Is the same as that of the Income-tax law, it has become necessary to bring the provisions of the Gift-tax Act, 1958 in line with the scheme of the Income-tax Act, 1961.

It has also been found necessary to introduce certain changes in the provisions of the Gift-tax Act to meet the problems which have arisen in the working of the Act. The changes which are independent of those made as a result of the recodification of the Income-tax Act, 1961 are as follows: —

(1) Under the existing law gift-tax assessment proceedings can be taken against the donor only, the donee being liable to pay the tax after the liability has been determined and the amount of tax is found incapable of recovery from the donor. It is proposed to make the donee also liable, where the donor cannot be found, for the assessment and payment of tax in respect of a gift subject to the limitation that the tax payable by the donee shall not exceed the value of the gift received by him.

(2) Under the existing law the donees are liable to pay the tax determined as payable by the donor if it cannot be recovered from the donor. This liability is subject to the limitation of proportionate amount of tax on the value of gift received by the donee. It is proposed to amend the existing provision by limit- ing the liability of the donee to the extent of the value of the gift received by him as on the date of the gift.

(3) The absence of any power with the Commissioner of Gift-tax and the Central Board of Revenue to transfer the case of a gift-tax assessee without simultaneously transferring his income-tax case from one Gift-tax Officer to another has caused considerable administrative difficulties. With a view to remov- ing these difficulties it is proposed to invest these authorities with power to transfer a case from one Gift-tax Officer to another.

The present Bill seeks to secure the above objectives.

The Notes on Clauses explain in detail the various provisions of the Bill.

NEW DELHI;

The 1th November, 1962.

Notes on Clauses

Clause 2 (a) .—This clause substitutes the existing clauses (ii), (iii) and (iv) of section 2 by new clauses.

(i) New clause (ii) brings the definition of "Appellate Tribunal" in line with the definition of the term in section 2(4) of the Income-tax Act, 1961.

(ii) New clause (iii) corresponds to section 2 (iii) of the existing Act, but the definition of "assessee" has been made more comprehensive on the lines of section 2(7) of the Income-tax Act, 1961 so as to include all possible categories, e.g., persons who are themselves liable to pay tax on gifts made by them, persons liable to pay tax on gifts made by other persons and persons deemed under certain sections of the Act to be assessees or assessees in default.

(iii) A definition of "assessment" has been inserted on the lines of section 2(8) of the Income-tax Act, 1961.

(iv) It brings the definition of 'assessment year' in line with its definition as given in section 2(9) of the Income-tax Act, 1961.

Clause 2(b).—A definition of "charitable purpose" has been inserted on the lines of section 2(15) of the Income-tax Act, 1961.

Clause 2 (c).—Director of Inspection is not one of the authorities under the existing Act. This clause has been inserted to make the Director of Inspection an authority under the Act and to clarify that the term includes his deputies and assistants also.

Clause 2 (d) .—Reference to the "Income-tax Act, 1922" has been substituted by reference to the "Income-tax Act, 1961".

Clause 2(e).—Two new clauses (xvia) and (xvib) have been inserted in section 2 of the Act.

(i) A definition of "Inspector of Gift-tax" has been given as he has been made one of the authorities under the Act.

(ii) The term "legal representative" has been defined on the lines of section 2(29) of the Income-tax Act, 1961 as in the exist- ing Act there is no definition of this term although it is used in the Act.

Clause 2(f).—In the definition of the term "previous year" refer- ences to the provisions of the Income-tax Act, 1922 have been substituted by references to the corresponding sections of the Income- tax Act, 1961.

Clause 3.—Since the term "assessment year" has been defined in the Act, the words "every financial year" have been replaced by the

words "every assessment year" to clarify the intention. This brings the provisions in line with section 4 of the Income-tax Act, 1961.

Clause 4-—

Sub-clause (i).—In section 5(1) (v) reference to section 15B of the Income-tax Act, 1922 has been substituted by reference to the corresponding provision of the Income-tax Act, 1961.

Sub-clause (ii).—This clause seeks to bring the provisions regarding residence in line with the provisions of the Income- tax Act, 1961, while making allowance for the fact that the Gift- tax Act does not apply to the whole of India.

Clause 5.—This clause introduces a new section conferring on the Central Board of Revenue and the Commissioner power to transfer cases from one Gift-tax Officer to another.

Clause 6.—This clause introduces a new section which authorises the Board to empower persons to exercise the functions of a Director of Inspection and defines those functions.

Clause 7.—By this clause a new section 11 has been inserted which makes an Inspector of Gift-tax as an authority under the Act. The new section 11A substitutes the existing section 11 and is in line with section 118 of the Income-tax Act, 1961.

Clause 8.—This clause introduces a new provision on the lines of section 119(2) of the Income-tax Act, 1961 making it obligatory on the Gift-tax Officer to follow the instructions issued by the Director of Inspection, Commissioner and the Inspecting Assistant Commis- sioner within whose jurisdiction he performs his functions.

Clause 9.—This clause introduces a new section conferring on the Commissioner and the Inspecting Assistant Commissioner powers similar to those conferred under section 135 of the Income-tax Act, 1961 on like authorities for making enquiries.

Clause 10.—This clause amends section 13 of the existing Act on the lines of section 139 of the Income-tax Act, 1961. It has been made clear that the provisions of section 13, apart from applying to a person who has made a gift, also apply to a person who is assessable in respect of a gift made by any other person.

Clause 11.—This clause introduces a new section which is intended to state comprehensively the position as regards the persons who should sign and verify returns of gifts in respect of the various kinds of assessees. It is modelled on section 140 of the Income-tax Act, 1961.

Clause 12,—This clause makes certain drafting changes In section 15 of the Act to bring out that the amount of refund, if any, due to the assessee, is specified in the assessment order passed on the basis

of a return found to be correct and complete. Sub-sections (3) arid (5) of section 15 have also been amended to make it clear that the Gift-tax Officer nhall, in framing an assessment, consider any material which he might have gathered independently. These changes bring the provisions of the section in line with those of sections 143 and 144 of the Income-tax Act, 1961.

Clause 13.—This clause makes a drafting change in section 16 (i) (a) to clarify that it covers also the case of an assessee who has to file a return in respect of gifts made by another person. It has become necessary as a consequence of the amendment made in section 13.

Clause 14.—This clause replaces the existing section 17 by a new section to bring its provisions in line with the corresponding provi- sions in sections 271 and 274 of the Income-tax Act, 1961. The changes made are: —

(i) In the existing Section 17 maximum penalty only is specified. The new section lays down both the minimum and the maximum penalties for various offences.

(ii) The existing Section requires that the Gift-tax Officer should have previous approval of the Inspecting Assistant Com- missioner for all penalty orders passed by him. Under the new provisions the Inspecting Assistant Commissioner himself will pass orders in cases falling under section 17(1) (c) (deliberate concealment of particulars about gifts) where the minimum penalty imposable exceeds rupees one thousand. The need for obtaining previous approval of the Inspecting Assistant Com- missioner where penalty order is to be passed by the Gift-tax Officer is dispensed with.

Clause 15.—This clause introduces a new provision in the Act to enable the Gift-tax Officer to make assessments in cases where the donor is likely to leave India before the commencement of the assessment year or shortly after it without any intention of returning to India. This follows the corresponding provisions of section 174 o± the Income-tax Act, 1961.

Clause 16.—This clause introduces a new provision which empowers the Gift-tax Officer to make an assessment on the donees in a case where the donor is not available for assessment. Section 29 of the Act provides that the tax may be recovered from the donee if it cannot be recovered from the donor but there is no provision in the Act enabling the Gift-tax Officer to make an assessment on the donee if the donor cannot be found. The clause seeks to remove this deficiency. The clause also seeks to make the donees jointly and

severally liable for the tax while limiting the liability of a donee to the maximum of the value of the gifts received by him.

Clause 17—

Sub-clause (i) (a).—By this sub-clause the word 'his' has been omitted from section 22(1) (a) to entitle a donee also to file an appeal where an assessment is made on him.

Sub-clause (i) (b).—This sub-clause substitutes reference to section 46(1) of the Income-tax Act, 1922 by reference to the corresponding provisions contained in section 221(1) of the Income-tax Act, 1961.

Sub-clause (i) (c).—This sub-clause provides for additional rights of appeal against the Gift-tax Officer's orders rectifying a mistake under section 34 having the effect of enhancing the tax or reducing a refund or refusing to admit an assessee's claim under the section or against an order imposing fine for non-com- pliance with summons under section 36.

Sub-clause (ii).—This sub-clause seeks to make the existing practice a requirement under the law.

The changes mentioned follow the pattern of sections 246, 250 (6) and Explanation to Section 251 of the Income-tax Act, 1961.

Clause 18.—Sub-clause (i) substitutes sub-section (2) of section 23 by a new sub-section on the lines of section 253(1) of the Income-tax Act, 1961. It confers on the assessee additional rights of appeal against an order passed by the Appellate Assistant Commissioner imposing fine under section 36 and against an order passed by the Inspecting Assistant Commissioner imposing penalty under section 17 (3) of the Act. The provision for appeal against orders of the Commissioner under section 17 has been incorporated in section 25 which contains similar provisions.

Sub-clause (ii) introduces a new provision corresponding to section 253 (4) of the Income-tax Act, 1961 enabling the assessee or the Gift-tax Officer to file a memorandum of cross objections in an appeal filed before the Tribunal by the other party.

Sub-clause (iii) confers on the Tribunal power to condone delay in the filing of a memorandum of cross objections. This power is similar to the existing power of the Tribunal to condone delay in filing of appeals, and is in line with section 253 (5) of the Income-tax Act, 1961.

Sah-clause (iv) substitutes reference to sub-sections (5), (7) and (,8) of section 5A of the Income-tax Act, 1922 by references to the corresponding provisions in Sub-sections (I), (4) and (5) of section 255 of the Income-tax Act, 1961.

Clause 19.—This clause introduces a new Explanation which provides that in computing the limitation period of two years under section 24(3) the time spent in giving a rehearing to the assessee under section 38 or the time for which the proceedings under the section are stayed by a court shall be excluded. This provision la similar to the Eocplanation in section 263 of the Income-tax Act, 1961.

Clause 20.-—See notes on clause 18.

Clause 21.—This sub-clause substitutes existing sub-sections (1) and (2) of section 26 by new sub-sections. Following changes have been made to bring the provisions in line with those of section 256 oi the Income-tax Act, 1961: —

(a) The time within which an application should be made to the Tribunal to refer a question of law to the High Court has been reduced from 90 days to 60 days as provided in other direct tax laws.

(b) The Tribunal has been required to dispose of the applica- tion within 120 days.

(c) Under the new provision the Tribunal's power to con- done delay in entertaining a reference application has been res- tricted to 30 days.

Sub-clause (ii) introduces a new provision similar to that con- tained in section 257 of the Income-tax Act, 1961 enabling the Tribu- nal to refer a question of law direct to the Supreme Court if there is a conflict in the decisions of High Courts on that question.

Sub-clause (in) applies the procedural provisions of sub-sectioMS (4), (5) and (6) of section 26 to direct references to the Supreme Court also.

Sub-clause (iv).—Sub-sections (7) and (8) of section 26 have been substituted by a new sub-section, modelled on section 260(2) of the Income-tax Act, 1961, to provide that the cost of a reference to the Supreme Court shall be in the discretion of the Court as in the case of a reference to the High Court.

Sub-section (9), having become redundant, has been deleted.

Clause 22.—This clause introduces two new sections, viz., sections 28A and 28B. The former, based on section 265 of the Income-tax Act,

1961, provides that tax will be payable as per assessment made not- withstanding that a reference has been made to Courts. The latter, based on section 269 of the Income-tax Act, 1961, provides for a defini- tion of High Court in respect of States as well as Union territories.

Clause 23.—This clause substitutes existing section 29 by a new section. The new section while providing for the joint and several liability of the donees for the payment of tax limits the liability of a donee to the value of the gift.

Clause 24.— (i) This clause substitutes existing sections 31, 32 and 33 by new sections.

In section 31 interest, fine or any other sum payable under the Act has also been mentioned. Reference to time within which the amount due is to be paid has been omitted as the time for payment is pro- posed to be prescribed in section 32. The new section is based on sec- tion 156 of the Income-tax Act, 1961.

Section 32 has been redrafted to bring its provisions in line with those of section 220 of the Income-tax Act, 1961. The changes made are—

(a) for the sake of simplicity the time limit for payment has been specified as 35 days in normal cases. As a measure of safe- guard, it has been provided that this period may be reduced in cases where it will be detrimental to revenue to allow so much time;

(b) it has been provided that the assessee shall be liable to pay simple interest at 4% per annum from the date of expiry of the time specified in the notice of demand;

(c) a specific provision has been made authorising the Gift- tax Officer to extend the time for payment or allow payments by instalments subject to payment of interest at 4% per annum;

(d) it has been made clear that the power to treat an assessee, who has filed an appeal, as being not in default, is con- fined to the amount in dispute and that the power can be exer- cised even though the time for payment has expired as long as the appeal remains pending.

(Hi) Section 33 has been redrafted to apply the provisions of sec- tions 221 to 227, 229, 231 and 232 of the Income-tax Act, 1961 and Second and Third Schedules to that Act and rules framed under the Second Schedule for recovery of any sums due under the Act, Under the new section a uniform procedure for effecting recovery will be followed in all the States.

Clause 25.—This clause introduces a new provision on the lines of Chapter XIX of the Income-tax Act, 1961 requiring that if a refund becomes due to an assessee in appeal, etc., the Gift-tax Officer will re- fund the amount without the assessee having to make a claim for it. The Gift-tax Officer has been empowered to withhold refund or set it off against any amount due from the assessee in certain circumstances. Provision has also been made for payment of interest @ 4% per annum to the assessee if a refund is not granted within the prescribed period or withheld in certain circumstances.

Clause 26.—This clause brings the provisions of section 34 of th" Act in line with the corresponding provisions of section 154 of tht Income-tax Act, 1961.

Clause 27.—This clause introduces a new provision making abet- ment of evasion an offence punishable with imprisonment and/or fine.

Under the existing provision presidency magistrates, magistrates of the first class and magistrates of the second class, if specially empowered, can take cognisance of offence under the Act, The clause omits specially empowered magistrates of the second class.

These changes are in line with the provisions of sections 278 and 292 of the Income-tax Act, 1961 in section 35 of the Act.

Clause 28.-—This clause brings the provisions of section 36 in line with the corresponding provisions of section 131 of the Income-tax Act, 1961.

Clause 29.—This clause provides that in the event of one gift-tax authority being succeeded by another the assessee may demand that before the proceedings are continued he may be heard again. The provision is the same as in section 129 of the Income-tax Act, 1961.

Clause 30.—This clause makes only a drafting change in section 39 to bring out its intention more precisely. The new section is similar to section 268 of the Income-tax Act, 1961.

Clause 31.—This clause introduces a new provision on the lines of section 283 of the Income-tax Act, 1961 prescribing the procedure to be adopted for service of notice where a joint Hindu family is disrupted or a firm or other association of persons is dissolved.

Clause 32.—This clause substitutes a new section for the existing section 41 which applies the provisions of sections 137 and 280 of \e Income-tax Act, 1961 in place of the provisions of section 54 of the Income-tax Act, 1922. The prosecution under the new section for violating its prohibitory provisions will be sanctioned by the Central Government and not by the Commissioner as under the existing pro- vision.

Clause 33.—This clause provides that in a case where the Inspecting Assistant Commissioner passes order levying penalty, the name of the assessee can be published only after the appeal, if any, is disposed of by the Appellate Tribunal. This is In line with section 287 (3) of the Income-tax Act, 1&61.

Clauses 34 and 35.—These clauses are self-explanatory.

Clause 36.—This clause proposes to modify the provisions of sub- section (4) of section 46 on the lines of section 296 of the Income-tax Act, 1961.

FINANCIAL MEMORANDUM

The officers who administer the Income-tax Act administer the Gift-tax Act also. This Bill will, therefore, not involve any addi- tional expenditure.

*BILC No. 104 OF 1962

Jk. Bill to provide for special measures to ensure the public safety

and interest, the defence of India and civil defence and for the

trial of certain offences and for matters connected therewith.

WHEREAS the President has declared by Proclamation under clause (1) of article 352 of the Constitution that a grave emergency- exists whereby the security of India is threatened by external aggression;

AND WHEREAS it is expedient to provide for special measures to ensure the public safety and interest, the defence of India and civil defence and for the trial of certain offences and for matters connected therewith;

BE it, therefore, enacted by Parliament in the Thirteenth Year of the Republic of India as follows: —

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Defence of India Act, 1962.

(2) It extends to the whole of India and it applies also—

Short title, extent, app- lication, du- ration and saving*.

(a) to citizens of India outside India;

(b) to persons in the service of the Government, wherever they may be;

(c) in respect of the regulation and discipline of the naval, military and air forces or any other armed forces of the

*Thc President has, in pursuance of clause (3) of article 117 of the Constitution of India, recammeiiel to Lok Sab'ia the consideration of the Bill.

Union, to members of, and persons attached to, employed with, or following, those forces, wherever they may be;

(d) to, and to persons on, ships and aircraft registered in India, wherever they may be,

(3) It shall remain in force during the period of operation of the Proclamation of Emergency issued on the 26th October, 1962, and for a period of six months thereafter but its expiry under the operation of this sub-section shall not affect—

(a) the previous operation of, or anything duly done or suffered under, this Act or any rule made thereunder or any order made under any such rule, or

(b) any right, privilege, obligation or liability acquired, accrued or incurred under this Act or any rule made there- under or any order made under any such rule, or

(c) any penalty, forfeiture or punishment incurred in respect of any offence under this Act or any contravention of any rule made under this Act or of any order made under any such rule, or

(d) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid;

and any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed as if this Act had not expired.

Definitions.

2. In this Act, unless the context otherwise requires,—

(a) "civil defence" includes any measures not amounting to actual combat, for affording defence against any form of hostile attack by a foreign power or for depriving any form of hostile attack by a foreign power of its effect either wholly or in part whether such measures are taken before, during or after the time of the attack;

(b) "Civil Defence Services" mean the services formed wholly or mainly to meet the needs of civil defence;

(c) "enemy" means—

(i) any person or country committing external aggres- sion against India;

(ii) any person belonging to a country committing such aggression;

(in) such other country as may be declared by the Central Government to be assisting the country committing euek aggrMBion;

(iv) any person belonging to such other country;

(d) "enemy territory" means—

(i) any area which is under the sovereignty of or administered by, or for the time being in the occupation of, a country referred to in sub-clause (i), or a country referred to in sub-clause (Hi), of clause (c) of this section;

(ii) any area which the Central Government may, by notification in the Official Gazette, specify to be enemy territory for the purposes of this Act or any rule made thereunder;

(e) "military operations" mean the operations of the Armed Forces of the Union;

(f) "prescribed." means prescribed by rules made under this Act;

(g) "Proclamation of Emergency" means tht Proclama- tion issued under clause (1) of article 352 of the Constitution on the 26th October, 1962;

(h) "State Government" in relation to a Union territory mean* the administrator thereof.

CHAPTER II EMERGENCY POWERS

Power to make rules,

3. (1) The Central Government may, by notification in the Official Gazette, make such rules as appear to it necessary or expedient for securing the defence of India and civil defence, the public safety, the maintenance of public order or the efficient conduct of military operations, or for maintaining supplies and services essential to the life of the community.

(2) Without prejudice to the generality of the powers conferred by sub-section (1), the rules may provide for, and may empower any authority to make orders providing for, all or any of the following matters, namely:—

(1) ensuring the safety and welfare of the Armed Forces of the Union, ships and aircrafts and preventing the prosecution of any work likely to prejudice the operations of the Armed Forces of the Union.

(2) prohibiting anything likely to prejudice the training, ilBaipline or htalth of the Armed Forces of the Union;

(3) preventing any attempt to tamper with the loyalty of persons in, or to dissuade (otherwise than with advice given in good faith to the person dissuaded for his benefit or that of any member of his family or any of his dependents) persons from entering, the service of the Government;

(4) preventing or prohibiting anything likely to assist the enemy or to prejudice the successful conduct of military opera- tions or civil defence including—

(a) communications with the enemy or agents of the enemy;

(b) acquisition, possession without lawful authority or excuse and publication of information likely to assist the enemy;

(c) contribution to, participation or assistance in, the floating of loans raised by or on behalf of the enemy;

(d) advance of money to, or contracts or commercial dealings with the enemy, enemy subjects or persons residing, carrying on business, or being, in enemy territory; and

{&) acts, publications or communications prejudicial to civil defence;

(5) preventing the spreading without lawful authority or excuse of false reports or the prosecution of any purpose, likely to cause disaffection or alarm, or to prejudice India's relations with foreign powers or to prejudice maintenance of peaceful conditions in any area or part of India, or to promote feelings of ill-will, enmity or hatred between different classes of the people of India;

(6) requiring the publication of news and information;

(7) demanding security from any press used for the purpose of printing or publishing any newspaper, news-sheet, book or other document containing matters prejudicial to the defence of India and civil defence, the public safety, the maintenance of public order, the efficient conduct of military operations or the maintenance of supplies and services essential to the life of the community, the forfeiture of such security and the circumstances in which and the authority by whom such forfeiture may be ordered;

800 G of I Ex—5

(8) regulating the conduct of persons in respect of areas the control of which is considered necessary or expedient, and the removal of persons from such areas;

(9) requiring any person or class of persons to comply with any scheme of defence or civil defence;

(70) ensuring the safety of—

(a) ports, dockyards, lighthouses, light-ships and aerodromes;

(b) railways, tramways, roads, canals and all other means of transport by land or water;

(c) telegraphs, post offices, signalling apparatus and all other means of communications;

(d) sources and systems of water-supply, works for the supply of water, gas or electricity, and all other works for public purposes;

4 of 1939.

(e) vessels, aircraft, transport vehicles as denned in the Motor Vehicles Act 1&39, and rolling stocks of railways and tramways;

(f) warehouses and all other places used or intended to be used for storage purposes;

(g) mines, oil-fields, factories or industrial or commer- cial undertakings generally, or any mine, oil-field, factory or industrial or commercial undertaking in particular;

(h) laboratories and institutions where scientific or technological research or training is conducted or imparted;

(i) all works and structures being part of, or connected with, anything earlier mentioned in this clause; and

(j) any other place or thing used or intended to be used for the purposes of Government or a local authority or a semi-Government or autonomous organisation, the protec- tion of which is considered necessary or expedient for securing the defence of India and civil defence, the public safety, the public order, or the efficient conduct of military operations, or for maintaining supplies and services essential to the life of the community;

(11) the demolition, destruction or rendering useless in case of necessity of any building or other premises or any other pro- perty;

(12) prohibiting or regulating traffic, and the use of vessels, buoys, lights and signals, in ports and territorial, tidal and inland waters;

(13) the control of lights and sounds;

(14) the control of persons entering, travelling in or depart- ing from, India;

(15) notwithstanding anything in any other law for the time being in force,—

(i) the apprehension and detention in custody of any person whom the authority empowered by the rules to apprehend or detain, as the case may be, suspects, on grounds appearing to that authority to be reasonable, of being of hostile origin or of having acted, acting, being about to act or being likely to act in a manner prejudicial to the defence of India and civil defence, the security of the State, the public safety or interest, the maintenance of public order, India's relations with foreign States, the maintenanca of peaceful conditions in any part or area of India or th" efficient conduct of military operations, or with respect to whom that authority is satisfied that his apprehension and detention are necessary for the purpose of preventing him from acting in any such prejudicial manner,

(ii) the prohibition of such person from entering or residing or remaining in any area; and

(Hi) the compelling of such person to reside and remain in any area, or to do or abstain from doing anything;

(16) restricting and regulating the charter of foreign vessels;

(17) regulating the structure and equipment of vessels for the purpose of ensuring the safety thereof and of persons thore- in;

(18) regulating work in dockyards and shipyards in respect of the construction and repairs of vessels;

(19) prohibiting or regulating the sailings of vessels from ports, traffic at aerodromes and the movement of aircraft, and traffic on railways, tramways and roads, and reserving end re- quiring to be adapted, for the use of the Government, all or any accommodation in vessels, aircraft, railways, tramways or road vehicles for the carriage of persons, animals or goods;

(20) the impressment of vessels, aircraft, vehicles, and animals for transport;

(21) prohibiting or regulating the use of postal, telegraphic or telephonic services, including the taking possession of such services, and the delaying, seizing, intercepting or interrupting of postal articles or telegraphic or telephonic messages;

(22) regulating the delivery otherwise than by postal or tele- graphic service of postal articles and telegrams;

(23) the control of trade or industry for the purpose of regulating or increasing the supply of, and the obtaining of in- formation with regard to articles or things of any description whatsoever which may be used in connection with the conduct of military operations or civil defence or for maintaining supplies and services essential to the life of the community;

(24) the control of generation, supply, distribution, use or consumption of electrical energy;

(25) the control of agriculture (including the cultivation of agricultural lend and crops to be raised therein) for the purpose of increasing the production and supply of foodgrains and other essential agricultural products;

(26) the provision, storage and maintenance of commodities and things required for the conduct of military operations or for the defence of India and civil defence;

(27) the requisition of services of persons for maintaining supplies and services essential to the life of the community;

(28) the provision, construction, maintenance or alteration of buildings, premises or other structures or excavations required for the conduct of military operations or the defence of India and civil defence;

(29) the protection of property by the performance of such fire prevention and other duties as may be allotted to any person; (30) the securing of any building, premises or other struc- tures from being readily recognisable in the event of a hostile attack by a foreign power;

(37) ensuring the ownership and control of mines and oil- fields by the citizens;

(32) prohibiting, restricting or otherwise regulating the bringing into, or taking out of, India of goods or articles of any description (including coin, bullion, bank notes, currency notes, securities and foreign exchange), and bringing into any part or place in India of any such goods or articles as aforesaid Intended

8 of 187S.

10 be taken out of India without being removed from the ship, aircraft or other conveyance in which they are being carried, and applying the provisions of the Sea Customs Act, 1878, and in particular section 19 thereof to such prohibitions, restrictions and regulations,

(33) controlling the possession, use or disposal of, or dealing in, coin, bullion, bank notes, currency notes, securities or foreign exchange;

(34) the control of any road or pathway, waterway, ferry or bridge, river, canal or other source of water-supply;

(35) the requisitioning and acquisition of any movable pro- perty; and the principles on which and the manner in which compensation shall be determined and given in respect of such requisitioning or acquisition;

(36) prohibiting or regulating the possession, use or disposal of—

(a) explosives, inflammable substances, corrosive and other dangerous substances or articles, arms and ammuni- tions of war;

(b) vessels;

(c) wireless telegraphic apparatus;

(d) aircraft; and

(e) photographic and signalling apparatus and any means of recording information;

(37) prohibiting or regulating the bringing into, or taking out of, India and the possession, use or transmission of ciphers and other secret means of communicating information;

(38) prohibiting or regulating the publication of inventions and designs;

(39) prohibiting or regulating the publication of results of research work having a bearing on efforts relating to defence of India or military operations;

f*0) preventing the disclosure of official secrets;

(41) prohibiting or regulating meetings, assemblies, fairs and processions;

(42) preventing or controlling any use of uniforms, whether official or otherwise, flags, official decorations like medals, badges and other insignia and anything similar thereto, where such use is calculated to deceive or to prejudice the public safety, tne maintenance of public order, the defence of India and civil defence;

(43) ensuring the accuracy of any report or declaration legally required of any person;

(44) preventing the unauthorized change of names;

(45) preventing anything likely to cause misapprehension in respect of the identity of any official person, official document or official property or in respect of the identity of any person, document or property purporting to be, or resembling, an official person, official document or official property;

(46) the precautionary measures which the Government or any department thereof or any local authority, members of police forces and fire brigades and members of any other service or authority employed primarily for purposes other than civil defence purpose should be required to take within their res- pective jurisdictions or with respect to any personnel employed by them;

(47) the seizure and custody or destruction of injured, un- claimed or dangerous animals;

(48) the salvage of damaged buildings and property and dis- posal of the dead;

(49) the evacuation of areas and the removal of property or animals therefrom;

(50) the accommodation in any area of persons evacuated from another area and the regulation of the conduct of evacuat- ed persons accommodated in nuch area;

(57) the billeting of evacuated person or persons authorised to exercise functions under this Act;

(52) the instruction of members of the public in civil defence and their equipment for purposes of civil defence;

(53) the entry into, and search of, and place reasonably suspected of being used for any purpose prejudicial t,o the public safety or interest, to the defence of India and civil defence or to the efficient conduct of military operations, and for the seizure and disposal of anything found there and reasonably suspected of being used for such purpose:

(54) the preparation of any scheme of defence service or any other service connected with, the defence of India and re- quiring any person or class of persons to comply with such scheme;

33 or 1958.

(55) the eviction of unauthorised occupant from such pub- lic premises [as defined in the Public Premises (Eviction of Un- authorised Occupants) Act, 1958] as are, in the opinion of the Central Government, required for the purposes connected with the defence of India and civil defence, the public safety or inte- rest, the efficient conduct of military operations or the mainte- nance of supplies and services essential to the life of the commu- nity.

(3) The rules made under sub-section (1) may further—

(i) provide for the arrest and trial of persons contravening any of the rules or any order issued thereunder;

(if) provide that any contravention of, or any attempt to contravene, or any abetment of, or any attempt to abet, the con- travention of any of the provisions of the rules or any order issued under any such provision, shall be punishable with im- prisonment for a term which may extend to seven years, or with fine, or with both;

(in) provide for the seizure, detention and forfeiture of any property in respect of which such contravention, attempt or abetment as is referred to in clause (ii) has been committed and for the adjudication of such forfeiture whether by a court or by any other authority;

(iv) confer powers and impose duties—

(a) upon the Central Government or officers and autho- rities of the Central Government as respects any matter, notwithstanding that the matter is one in respect of which the State Legislature has power to make laws; and

(b) upon any State Government or officers and autho- rities of any State Government as respects any matter, not- withstanding that the matter is one in respect of which the State Legislature has no power to make laws;

(u) prescribe the duties and powers of public servants and other persons as regards preventing the contravention of, or securing the observance of, the rules or any order made there- under;

(vi) provide for preventing obstruction end deception of, and disobedience to, any person acting, and interference with any notice issued, in pursuance of the rules or any order made thereunder;

(vii) prohibit attempts by any person to screen from punish- ment any one, other than the husband or wile of such person, contravening any of the rules or any order made thereunder;

(uiil) empower or direct any authority to take such action as may be specified in the rules or as may seem necessary to such authority for the purpose of ensuring the public safety or interest or the defence of India and civil defence;

(ix) provide for charging fees in respect of the grant or issue of a licence, permit, certificate or other document for the purposes of the rules-

62 of 1957. 46 of 1950. 45 of 1950.

Special powers TO control civilian personnel employed in con- nection with the Armed Forces of theUnkvi.

4. The Central Government may, by notification in the Official Gazette, direct by general or special order that any persons who not being members of the Armed Forces of the Union are attached to, or employed with, or following those Forces, shall be subject to naval, military or air force law, and thereupon such persons shall be subject to discipline and liable to punishment for offences under the Navy Act, 1957, the Army Act, 1950 and the Air Force Act, 1950, as the case may be, as if they were included in such class of persons subject to any of those Acts as may be specified in the notification or in the absence thereof, by an officer empowered by the Central Government in this behalf-

Enhanced penalties.

5. (1) If any person with intent to wage war against India or to assist any country committing external aggression against India, con- travenes any provision of the rules made under section 3 or any order issued under any such rule, he shall be punishable with death or im- prisonment for life, or imprisonment for a term which may extend to ten years and shall also be liable to fine.

(2) If any person,—

22 Of I934 (a) contravenes any such provision of, or any such rule or order made under the Aircraft Act, 1934, as may be notified in this behalf by the Central Government, or

54 of 1959. 4 of 1884. 6 of 1908. 20 of 1952.

(b) 1B any area notified, in this behalf by a State Govern- ment, contravenes any such provision of, or any such rule made under, the Arms Act, 1959, the Indian Explosives Act, 1884, the Explosive Substances Act, 1908, or the Inflammable Substances Act, 1952, as may be notified in this behalf by the State Gov- ernment,

he shall, notwithstanding anything contained in any of the aforesaid Acts or rules made thereunder, be punishable with imprisonment for a term which may extend to five years, or, if his intention is to assist any country committing external aggression against India, or,

to wage war against India, with death, imprisonment for life or imprisonment for a term which may extend to ten years and shall in either case also be liable to fine.

(3) For the purposes of this section, any person who attempts to contravene, or abets or attempts to abet, or does any act preparatory to, a contravention of any provision of any law, rule or order shall be deemed to have contravened that provision.

6. During the continuance in force of this Act,—

Temporary amendments to Act*.

19 of 1923,

(1) the Indian Official Secrets Act, 1923 shall have effect as if—

(a) in sub-section (1) of section 5 thereof, after the words "in his possession or control", the words "any information likely to assist the enemy as denned in the Defence of India Act, 1962, or" had been inserted; and after the words "in such a place," the words "or which relates to or is used in, a protected area as denned in the rules made under the Defence of India Act, 1962, or relates to anything in such area," had been inserted;

(b) for sub-section (4) of section 5 thereof, the follow- ing sub-section had been substituted, namely: —

"(4) A person guilty of an offence under this sec- tion shall be punishable with imprisonment for a term which may extend to five years, or if such offence is committed with intent to assist any country committing external aggression against India or to wage war against India, with death or imprisonment for life or imprison- ment for a term which may extend to ten years and shall in either case also be liable to fine.";

(c) after clause (a) of section 12 thereof, the following clause had been inserted, namely: —

" (aa) an offence under section 5 shall be a cogniz- able and non-bailable offence;";

13 of T934

(2) the Aircraft Act, 1934 shall have effect as if—

(a) at the end of clause (r) of sub-section (2) of sec- tion 5, the following words had been inserted, namely: —

"including the taking of steps necessary to secure compliance with, or to prevent contravention of, the rules regulating such matters, or, where any such rule has been contravened, to rectify, or to enable proceedings to be taken in respect of, such contravention.";

806 G. of I, Ex—6,

(b) in clause (b) of sub-section (1) of section 8, for the words, brackets, letters and figures "clause (h) or clause (i) of sub-section (2) of section 5", the words, brackets, letters and figures "clause (d), (e), (7i), (i), (k) or (I) of sub- section (2) of section 5, or the commission of an offence punishable under section 11," had been substituted;

(c) in section 11, after the words "in the air", the words "or in such a manner as to interfere with any of the Armed Forces of the Union or any ships or aircraft" had been inserted;

(d) in section 13, for the words, brackets, letters and figures "clause (i) of sub-section (2) of section 5" the words, brackets, letters and figures "clause (c), (d), (e), (h), (i-), (j), or (7c) of sub-section (2) of section 5 or punishable under section 11" had been substituted; and

(e) section 14 had been omitted;

4 of 1936.

(3) the Payment of Wages Act, 1936, shall have effect as if after clause (i) of sub-section (2) of section 7 thereof, the following clause had been inserted, namely: —

" (ii) deductions made with the written authorisation of—

(i) the employed person; or

(ii) the president or secretary of the registered trade union of which the employed person is a member on such conditions as may be prescribed,

for contribution to the National Defence Fund or to any Defence Savings' Scheme approved by the State Govern- ment;":

4 af 1939- (4) the Motor Vehicles Act, 1939 (in this clause referred to as the "said Act") shall have effect subject to the following provi- sions, namely: —

(a) the State Government may, by notification in the Official Gazette, authorise, subject to such conditions, if any, as it may think fit to impose, any person—

(0 also to perform such functions of the State Gov- ernment under Chapter TV (in this clause referred to as the "said Chapter") of the said Act, other than the making of rules as may be specified in the notification; and

(ii) to perform to the exclusion of the State Trans- port Authority or Regional Transport Authority, as the case may be, such functions of the State Transport Authority or any Regional Transport Authority under the said Chapter as may be specified in the notification;

and the expression "proper authority" in this clause shall, in relation to the performance of any such function as afore- said, be construed in accordance with the provisions of such notification, if any, relating to that function;

(b) notwithstanding anything to the contrary in section 58 or section 62 of the said Act, the proper authority may grant a permit or a temporary permit under the said Chapter to be effective for any specified period not exceeding five years;

(c) the State Government may, by general or special order, in writing, provide that the proper authority,—

(i) in deciding to grant or refuse to grant a permit under the said Chapter, shall not be bound to take into consideration representations made by any persons other than the applicant for the permit or Co follow the proce- dure laid down in section 57 of the said Act, and may take into consideration an application for a stagte carriage permit or a public carrier's permit which has not. com- plied with the provisions of sub-section (2) of that .sec- tion;

(ii) in fixing the maximum and minimum fares or freights for stage carriages and public carriers, shall not be bound to give the representatives of the interests affected an opportunity of being heard or to follow the procedure laid down in section 43 of the said Act, or where such action is taken for the purpose of preventing the charge of excess fares or freights, to have regard to any of the considerations set forth in clauses (a) to (d) of sub-section (1) of that section;

(d) without prejudice to the provisions of section 60 of the said Act, the proper authority may, if in its opinion the public interest so requires, cancel, or modify the conditions of, or suspend for such period as it thinks fit, any permit or counter-signature under the said Chapter which Is valid in its jurisdiction;

(e) the State Government may, by general or special order in writing, exempt from all or any of the provisions of the said Chapter any transport vehicle used or required

for use in connection with any work or purpose declared by the State Government in the order to be a work or pur- pose connected with the defence of India, the conduct of military operations or civil defence;

(f) if the State Government by general or special order in writing so directs, the provisions of sub-section (2) of section 38 of the said Act shall have effect in relation to any controlled motor vehicles specified in the order as if the words "not being in any case more than two years or less than six months" had been omitted.

Explanation.—In this clause "controlled motor vehicle" means any motor vehicle declared by the Government to be a controlled motor vehicle by order made in this behalf.

CHAPTER III

CIVIL DEFENCE SERVICES

Constitution

pf Civil

Defence

Service.

7. (1) The State Government may constitute for any area within the State a body of persons to bo called the Civil Defence Service and may appoint a person (hereinafter called the Director) to com- mand such body.

(2) Subject to any orders which the Central Government may make in this behalf, any member of a Civil Defence Service of any State may at any time be required to discharge functions in relation to civil defence in any other State and shall while so discharging such functions be deemed to be a member of a Civil Defence Service of that other State and be vested with the powers, functions and pri- villages and be subject to the liabilities of a member of a Civil Defence Service of that other State.

Appointment

of members

and officers.

8. (1) Any authority authorised in this behalf by the State Gov- ernment may appoint as members of a Civil Defence Service so many persons who are fit and willing to serve as such as it is authorised by the State Government to appoint, and the Director may appoint any such member to any office or command in the Service.

(2) Every person so appointed to be a member of a Civil Defence Service shall be given a certificate of membership in such form as may be prescribed.

Dismissal of

members

of Civil

Defence

Servica.

9. The Director or any other authority authorised in this behalf by the State Government may, by order in writing, dismiss sum- marily from a Civil Defence Service any member thereof if, in the opinion of the Director or such other authority, he fails to discharge satisfactorily, or is guilty of misconduct in the discharge of, his duties as such member, or his continued presence in the Service is otherwise undesirable.

10. (1) The members of a Civil Defence Service shall perform such functions in relation to the carrying out of measures for civil defence as may be assigned to them by rules made under this Act or by any other law for the time being in force.

Functions of mem- bers of Civil Defence S orvices.

(2) The Director or any person authorised in this behalf by the Director or by the State Government mey by order at any time call out a member of a Civil Defence Service for training or to discharge any such functions as aforesaid.

Penalty.

11. If any member of a Civil Defence Service on being called out by an order under sub-section (2) of section 10 neglects or refuses without sufficient excuse to obey such order or to discharge his func- tions as a member of the Civil Defence Service or to obey any lawful order or direction given to him for the performance of his duties, he shall, on conviction by a competent court, be punishable with fine which may extend to five hundred rupees.

Power to makt nilea.

12. (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes ©f this Chapter.

(2) In particular, and without prejudice to the generality of the foregoing powers, such rules may—

(a) prescribe the duties of members of Civil Defence Services and regulate the manner in which they may be called out for service;

(b) regulate the organisation, appointment, conditions of service, discipline, accoutrement, and clothing of members of any or all of the Civil Defence Services;

(c) prescribe the form of certificates of membership of any or all of the Civil Defence Services;

(d) provide that a contravention of, or an attempt to con- travene, and any abetment of or attempt to abet the contraven- tion of, any of the provisions of the rules or of any order issued under any such provision shall be punishable with imprisonment for a term which may extend to seven years, or with fine, or with both;

(e) provide for the arrest and trial of persons contravening, or reasonably suspected of contravening, any of the provisions of the rules or of any order issued under any such provision;

(f) provide for the seizure, detention and forfeiture of any property in respect of which such contravention, attempt or abetment as is referred to in clause (d) hen been committed;

(g) prescribe the duties and powers of public servants and other persons as regards preventing the contravention of, or secur- ing the observance of, the rules or of any order issued thereunder;

(h) provide for preventing the obstruction and deception of, and disobedience to, any person acting, and interference with any notice issued, in pursuance of the rules or of any order issued thereunder;

(i) prohibit attempts to screen from punishment any person

contravening any of the rules-

CHAPTER IV

SPECIAL TRIBUNALS

Constitution Of Special Tribunals.

13. (I) The State Government may, for the whole or any part of the State, constitute one or more Special Tribunals which or each of which shall consist of three members appointed by that Government.

(2) No person shall be appointed as a member of a Special Tri- bunal unless he—

(a) is qualified under clause (2) of article 217 of the Consti- tution for appointment as a Judge of a High Court; or

5 of 1898 (b) has exercised the powers under the Code of Criminal Procedure, 1898 (hereinafter in this Chapter referred to as the Code) of any one or more of the following, namely:—

(i) Sessions Judge, Additional Sessions Judge, Chief Presidency Magistrate, Additional Chief Presidency Magis- trate,

(ii) District Magistrate, Additional District Magistrate.

Jurisdiction of Special Triburudg.

14. During the period during which the Proclamation of Emer- gency is in operation, the State Government may, by general or special order, direct that a Special Tribunal shall try any offence—

(a) under any rule made under section 3, or

(b) punishable with death, imprisonment for life or imprisonment for a term which may extend to seven years,

triable by any court having jurisdiction within the local limits of the jurisdiction of the Special Tribunal and may in any such order direct the transfer to the Special Tribunal of any particular case from any

other Special Tribunal or any other criminal court not being a High Court.

I

15. (1) A Special Tribunal may take cognizance of offences with- out the accused being committed to it for trial.

Procedure of Special Tribunals.

(2) Save in cases of trials of offences punishable with death or imprisonment for life, it shall not be necessary in any trial for a Special Tribunal to take down the evidence at length in writing, but the Special Tribunal shall cause a memorandum of the substance of what each witness deposes, to be taken down, and such memoran- dum shall be signed by a member of the Special Tribunal and shall form part of the record.

(3) A Special Tribunal shall not be bound to adjourn any trial for any purpose unless such adjournment is, in its opinion, necessary in the interests of justice.

(4) A Special Tribunal shall not, merely by reason of a change in its members, be bound to recall and to re-hear any witness who has given evidence, and it may act on the evidence already recorded by or produced before it.

(5) After an accused person has once appeared before it, a Special Tribunal may try him in his absence if, in its opinion, his absence has been brought about by the accused himself for the purpose of im- peding the course of justice, or if the behaviour of the accused in court has been such as, in the opinion of the Special Tribunal, to impede the course of justice.

(6) In the event of any difference of opinion among the members of a Special Tribunal, the opinion of the majority shall prevail.

(7) The State Government may, by notification In the Official Gazette, make rules providing for—

(i) the times and places at which Special Tribunals may sit;

and

(ii) the procedure to be adopted in the event of any member of a Special Tribunal being prevented from attending throughout the trial of any accused person.

(8) A Special Tribunal shall, in all matters in respect to which no procedure has been prescribed by this Act or by rules made there- under, follow the procedure prescribed by the Code for the trial of warrant cases by Magistrates.

Exclusion of public from proceedings of Special Tribunals.

16. In addition, and without prejudice, to any powers which a Special Tribunal may possess by virtue of any law for the time being in force to order the exclusion of the public from any proceedings, if at any stage in the course of a trial of any person before a Special

Tribunal, application is made by the prosecution, on the ground that the publication of any evidence to be given or of any statement to be made in the course of the trial would be prejudicial to the safety of the State, that all or any portion of the public shall be excluded during any part of the hearing, the Special Tribunal may make an order to that effect, but the passing of the sentence shall in any case take place in public.

17. A Special Tribunal shall have all the powers conferred by the Code on a Court of Session exercising original jurisdiction.

Power of Special Tribunals.

18. (1) A Special Tribunal may pass any sentence authorised by law.

Sentences of Special Tribunals.

(2) A person sentenced by a Special Tribunal—

xq of 1923.

(a) to death or imprisonment for life, or (b) to imprisonment for a term extending to ten years under section 5 of this act or under sub-section (4) of section 5 of the Indian Official Secrets Act, 1923, as amended by section 6 of this Act,

shall have a right of appeal to the High Court within whose juris- diction the sentence has been passed, but save as aforesaid and not- withstanding the provisions of the Code, or of any other law for the time being in force, or of anything having the force of law by whatsoever authority made or done, there shall be no appeal from any order or sentence of a Special Tribunal, and no court shall have authority to revise such order or sentence, or to transfer any case from a Special Tribunal, or to make any order under section 491 of the Code, or have any jurisdiction of any kind in respect of any proceedings of a Special Tribunal.

(3) The powers conferred upon the appropriate Government by Chapter XXIX of the Code shall apply in respect of a person sentenced by a Special Tribunal.

CHAPTER V

EMPLOYMENT OF TECHNICAL PERSONNEL IN THE NATIONAL SERVICE

19. In this Chapter, unless the context otherwise requires,—

Definitions.

(a) "employment in the national service" means employ- ment in a notified establishment in pursuance of an order passed under section 23;

(b) "employer" means any person who employs technical personnel to do any work in an establishment and includes any

person entrusted with the supervision and control of technical personnel in such an establishment;

(c) "establishment" means—

(i) any office, or

(ii) any place where any industry, trade, business or occupation is carried on; and includes any technical institu- tion or training centre established, selected or approved by the Central Government;

(d) "National Service Tribunal" means a Tribunal constitut- ed under section 21;

(e) "notified establishment" means any Government estab- lishment and any establishment declared by notification under sub-section (1) of section 22 to be engaged in work of national importance;

(f) "notified occupation" means any occupation which the Central Government may, by rules made under this Chapter, specify as a notified occupation for the purposes of this Chapter;

(g) "technical personnel" means all persons who possess knowledge of or skill in one or more of the notified occupations, whether or not they are employed in any establishment, and includes such persons or class of persons undergoing training in any of those occupations in any establishment as may be declar- ed by the Central Government by notification in the Official Gazette to be technical personnel for the purposes of this Chapter.

Liability for employment in national service.

20. All technical personnel, being citizens of India and not being members of the Armed Forces of the Union or members of any Reserve of any such Force who are liable, under the terms of then- service in such Reserve, to be called up for service at any time and not only on partial or general mobilisation, shall be liable under this Chapter to undertake employment in the national service.

National Service rribunals.

21. (1) The Central Government shall constitute, for such areas and in such places as it thinks fit, National Service Tribunals to exercise the functions assigned to such, tribunals by or under this Chapter.

(2) The composition, powers and procedure of National Service Tribunals shall be such as may be prescribed.

Notified!} establish- ments.

22. (1) The Central Government may, by notification in the Offi- cial Gazette, declare any establishment, which is engaged in work which, in the opinion of the Central Government, is likely to assist 806 G. at I. Ex—7.

the defence of India and civil defence, the efficient conduct of mili- tary operations, or the maintenance or increase of supplies and servi- ces essential to the life of the community, to be an establishment engaged in work of national importance and thereupon such estab- lishment shall be a notified establishment and while making such declaration, the Central Government may require that establishment to make such provisions as may be specified in the notification in regard to the terms of service and conditions of work of its employees.

(2) Every notified establishment shall be eligible to apply to a National Service Tribunal or to the Central Government for techni- cal personnel and having so applied, shall take into its employment such technical personnel within such period and on such terms and conditions as may be prescribed.

Employment of technical personnel in the national service.

23, (1) Subject to any rules made in this behalf under this Chap- ter, the Central Government may require a National Service Tribu- nal to report what technical personnel, whether employed in an astablishment or not, is available within its jurisdiction for employ- ment in the national service and may by order in writing,™

(a) require the employer in any establishment by which such technical personnel is employed to release such personnel as may be specified in the order, for employment in the national service;

(fa) direct any technical personnel to undertake such employ- ment in the national service as may be specified in the order;

(c) direct that any technical personnel engaged in any estab- lishment under conditions not amounting to employment in the national service shall, for the purposes of sub-section (8), be deemed to have been taken into employment in the national service; and

(d) require any notified establishment, notwithstanding that it has not made any application under section 22, to take into its employment 6uch technical personnel within such period as may be specified in the order.

(2) Notwithstanding anything in sub-section (7), a National Service Tribunal may—

(o) exercise the powers conferred on the Central Govern- ment by clauses (a) and (b) of sub-section (1);

(b) require by order any employer to give training in his establishment to persons for qualifying them as technical personnel;

(c) direct by order technical personnel to present themselves at such place and time as may be specified in the order for inter- view or inquiry, and if so required, for submission to a test of their technical skill.

(?) Any order made by the Central Government under sub-sec- tion (1) and by a National Service Tribunal under sub-section (2) shall be complied with within such period or on such date as may be specified in this behalf in the order.

(4) The Central Government or, as the case may be, a National Service Tribunal, may, by order in writing, transfer technical per- sonnel from one form or place of employment in the national service to another; and the employer and the personnel concerned shall comply with such order.

(5) No person included in the definition of technical personnel, who has been directed to undertake employment in the national service or transferred from one form or place of employment to another under the foregoing provisions, shall be discharged from 01 leave his employment in such service unless the employer or person concerned has previously obtained the permission of the Central Government or, as the case may be, of the National Service Tribunal.

(6) Any person included in the definition of technical personnel who is required to undertake employment in the national service 01 transferred from one form or place of employment to another under the foregoing provisions of this section, may be required by the Central Government, or, as the case may be, the National Service Tribunal concerned, to submit himself to be examined by such medi- cal authority as may be prescribed.

(7) An appeal shall lie to the Central Government against any order passed by a National Service Tribunal under this section and the decision of the Central Government shall be finaL

(

Provided that any rights which such technical personnel may have under the provident or superannuation fund or other scheme relating to gratuity, bonus or other benefit for the advantage of employees maintained by the establishment from which they are released shall be preserved.

Reinstate- ment.

24. (1) Every person who was employed in his former employ- ment otherwise than in a probationary or temporary capacity and whose employment in the national service has not been terminated

by dismissal for serious misconduct shall, on his release from such employment in the national service, be entitled to be reinstated in his former employment, in accordance with such conditions as may be prescribed:

Provided that in determining such conditions regard shall be had to the additional skill and experience acquired by him in the course of his employment in the national service.

(2) The Central Government may by rules made in this behalf provide for the appointment of Technical Personnel (Reinstatement) Tribunals to deal with such matters in relation to reinstatement of persons released from employment in the national service as may be prescribed.

25. (/) Subject to any rules made in this behalf, a National Ser- vice Tribunal may require any establishment (including a notified establishment) to post before a specified date and to keep posted, on its premises notices intimating that—

Relinqulsh- ment of employment by, dismissal of, a nd engagement by establish- ment of, technical personnel.

(a) no person included within the definition of technical personnel who Is employed In the establishment shall at any time after the posting of the notice, leave his employment without the previous permission in writing of the National Service Tribunal;

(b) if the National Service Tribunal refuses such permis- sion, that tribunal may lay down, subject to the prescribed conditions, the terms of service on which the employer shall continue to retain him in employment;

(c) If any such person leaves his employment without the previous permission in writing of the Tribunal as aforesaid he may be directed by the Tribunal to return to his employment.

(2) After notices referred to in sub-section (1) have been posted on the premises of any establishment (including a notified establish- ment), no employer in the establishment shall engage, discharge or dismiss any person included in the definition of technical personnel except in accordance with rules made In this behalf.

Penalties and pro- cedure.

26. (-?) Whoever contravenes any order of the Central Govern- ment or of a National Service Tribunal m&de under section 23 or wilfully fails to comply with any summons, requirement, direction or order issued or made by the Central Government or by a National Service Tribunal under any other provision of this Chapter shall be punishable with imprisonment for a term not exceeding six months, qr with fine not exceeding one thousand rupees, or with both.

(2) No court shall take cognizance of any offence punishable under sub-section (2) except with the previous sanction in writing,—

(a) in the case of contravention of any order or any wilful failure to comply with any summons, requirement or direction of the Central Government, of the Central Government;

(b) In the case of contravention of any order or any wilful failure to comply with any summons, requirement or direction of a National Service Tribunal, of the National Service Tribunal.

5 of 1898.

(3) Notwithstanding anything contained in the Code of Criminal Procedure, 1898, an offence punishable under sub-section (1) shall be cognizable.

(4) No court inferior to a Presidency Magistrate or a Magistrate of the First Class shall try any offence punishable under sub- section (1).

Service of summons notices, orders, etc 27. Any summons, notice, requirement, direction or order issued, made or given to any person under this Chapter may be served by being sent by post addressed to that person at his last known resi- dence.

Power 10 nuke rules.

28. (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Chapter.

*

(2) Without prejudice to the generality of the foregoing power, such rules may prescribe—

(a) the occupations which shall be notified occupations for the purposes of this Chapter;

(b) the composition, powers and procedure of National Service Tribunals;

(c) the technical personnel, which may be taken into the employment of any notified establishment under sub-sention (2) of section 22 and the period within which and the terms and conditions on which such personnel shall be so taken;

(d) the medical authority before whom any person may be required to submit himself for examination under sub- section (6) of section 23;

(e) the terms of service of technical personnel taken into employment in the national service;

(f) the conditions in accordance with which persons released from employment in the national service may be reinstated in their former employment;

(g) the appointment of Technical Personnel (Reinstate- ment) Tribunals and the matters in relation to reinstatement which such Tribunals may be required to deal with;

(h) the provisions relating to engagement, discharge or dismissal of persons by any employer in any establishment on the premises of which notices have been posted under sub- section (1) of section 25;

- (i) any other matter which may be prescribed or which is to be provided for by rules. (3) Any rule made under this Chapter may provide that a contravention of the rule shall be punishable with imprisonment for a term not exceeding six months, or with fine not exceeding one thousand rupees, or with both.

CHAPTER VI

REQUISITIONING AND ACQUISITION OF IMMOVABLE PROPERTY

Requisi- tioning of Immovable property.

2ft. (1) Notwithstanding anything contained in any other law for the time being in force, if in the opinion of the Central Govern- ment or the State Government it is necessary or expedient so to do for securing the defence of India, civil defence, public safety, maintenance of public order or efficient conduct of military opera- tions, or for maintaining supplies and services essential to the life of the community, that Government may by order in writing requi- sition any immovable property and may make such further orders as appear to that Government to be necessary or expedient in connection with the requisitioning:

Provided that no property or part thereof which is exclusively used by the public for religious worship shall be requisitioned.

(2) The requisition shall be effected by an order in writing addressed to the person deemed by the Central Government or the State Government, as the case may be, to be the owner or person in possession of the property, and such order shall be served in the prescribed manner on the person to whom it is addressed.

(3) Whenever any property is requisitioned under sub-section (l),*the period of such requisition shall not extend hcymirl thf period for which such property is required for any of the purposes mentioned in that sub-section.

Payment of compensa- tion.

30. Whenever in pursuance ot section fii tnc Central "jnvftrn- ment or the State Government, as the case may be, requisitions any Immovable property, there shall be paid to the persons Interested

compensation the amount of which shall he determined by taking¹ into consideration the following, namely:—

(i) the rent payable in respect of the property or if no rent is payable, the rent payable in respect of similar property in the locality;

(ii) if in consequence of the requisition of tho property the person interested is compelled to change his residence or place of business, the reasonable expenses (if any) incidental to such change;

Provided that where any person interested being aggrieved by th© amount of compensation so determined makes an appli- cation within the prescribed time to the Central Government or the State Government, as the case may bo, for referring the matter to an arbitrator, the amount of compensation to be paid shall be such as the arbitrator appointed in this behalf by the Central Government or tho State Government, as the case may be, may determine:

Provided further that where there is any dispute as to the title to receive the compensation or as to the apportionment of the amount of compensation, it shall be referred to an arbitrator appointed in this behalf by the Central Government or the State Government, as the case may be, for determination, and shall be determined in accordance with the decision of such arbitrator.

Explanation.—In this section, the expression "person interested" means the person who was in actual possession of the property re- quisitioned under section 29 immediately before the requisition, or where no person was in such actual possession, the owner of such property.

31. The Central Government or the State Government, as the case may be, may, with a view to requisitioning any property under section 20 or determining the compensation payable under section 30, by order—

Power to obtain informa- tion and give direc- lion.

(a) require any person to furnish to the authority mentioned therein such information in his possession relating to any pro- perty as may be specified;

(b) direct that the owner, occupier or the person in posses- sion of the property shall not, without the permission of Govern- ment, dispose of it or where it is a building, structurally alter it till the expiry of such period as may be specified in the ordw.

Power of entry into, and ins- pection of, property, etc.

32. Any person authorised in this behalf by the Central Govern- ment or the State Government, as the case may be, may enter Into any immovable property and inspect such property for the purpose of determining whether, and if so in what manner, an order under section 29 should be made in relation to such property or with a view to securing compliance with any order made under that section.

Eviction from re quisitioned property.

33. (1) Any person remaining in possession of any requisitioned property in contravention of any order made under section 29 may be summarily evicted from the property by any officer empowered in this behalf by the Central Government or the State Government, as the case may be.

(2) Any officer so empowered may, after giving to any woman not appearing in public reasonable warning and facility to withdraw, remove or open any lock or bolt or break open any door of any building or do any other act necessary for effecting such eviction.

Release from requisition.

35. (1) Whore any property requisitioned under section 29 is to be released from such requisition, the Government by which or under whose authority the property was requisitioned or any person generally or specially authorised by it in this behalf may, after such inquiry, if any, as it or he may in any case, consider necessary to make or cause to be made, specify by order in writing the person to whom possession of the property shall be given.

(2) The delivery of possession of the property to the person specified in the order under sub-section (1) shall be a full discharge of the Government from all liabilities in respect of the property, but shall not prejudice by any rights in respect of the property which any other person may be entitled by due process of law to enforce against the person to whom possession of the property is delivered.

36. (1) Any immovable property which has been requisitioned under section 29 may, in the manner hereinafter provided, be acquired in the circumstances and by the Government specified below, namely: —

(a) where any works have, during the period of requisition, been constructed on, In or over the property wholly or partly at the expense of any Government, the property may be acquired

by that Government if it decides that the value of or the right to use, such works shall, by means of the acquisition of the pro- perty, be preserved or secured for the purposes of any Govern- ment, or

(b) where the cost to any Government of restoring the property to its condition at the time of its requisition as aforesaid would, in the determination of that Government, be excessive having regard to the value oi' the property at that time, the property may be acquired by that Government.

(2) When any Government as aforesaid decides to acquire any immovable property, it shall serve on the owner, thereof or where the owner Is not readily traceable or the ownership is in dispute, by publishing in the Official Gazette, a notice stating that the Govern- ment has decided to acquire it in pursuance of this section.

(3) Where a notice of acquisition is served on the owner of the property or is published in the Official Gazette under sub-section (2), then, at the beginning of the day on which the notice 13 so served or published, the property shall vest in the Government free from any mortgage, pledge, lien or other similar encumbrances and the period of requisition thereof shall come to an end.

(4) Any decision or determination of a Government under sub- section (1) shall b^ final, and shall not be called in question in any court.

(5) For the purposes of this section, "works" includes every description of buildings, structures and improvements of the pro- perty.

37. (1) The compensation payable for the acquisition of any pro- perty under section 3fi shall be—

Compen- sation or acquisi- tion of re- quisitioned property.

(a) the price which the requisitioned property would have fetched in the open market if it had remained in the same con- dition as it was at the time of requisitioning and been sold ton the date of acquisition, or

(b) twice the price which the requisitioned property would have fetched iri the open market if it had been sold on the date of the requisition,

whichever is less.

(2) Where the owner of any property acquired under section 36 is aggrieved by the amount of compensation determined in accor- dance with sub-section (1), he may make an application within the prescribed time to the Central Government or the State Govern- ment, as the case may be, for referring the matter to an arbitrator appointed in this behalf by the Central Government or the State

806 G. Of I. Ex.—fi.

Government, and the amount of compensation to be paid shall be such as may be determined by the arbitrator in accordance with sub-section (I).

(3) Where there is any dispute as to the title to receive the com- pensation or as to the apportionment of the amount of compensa- tion, it shall be referred to an arbitrator appointed in this behalf by the Central Government or the State Government, as the case may be, for determination, and his decision thereon shall be final.

Power to

make rulei

38. (1) The Central Government or the State Government, as the case may be, may by notification in the Official Gazette, make rules for carrying out the purposes of this Chapter.

(2) In particular, and without prejudice to the generality of the foregoing powers, such rules may prescribe—

(a) the procedure to be followed in arbitration proceedings under this Chapter;

(b) the period within which the owner of any property or any other person Interested in the amount of compensation may apply to the Government concerned for referring the matter to an arbitrator;

(c) the principles to be followed in apportioning the costs of proceedings before the arbitrator;

(d) the method of payment of compensation; (e) the manner of service of notices and orders; (/) any other matter which has to be, or may be, prescribed.

39. Any property referred to in sub-section (2) of section 24 of

30 of 195a.

17 of 1947.

Certain

properties

requisi-

tioned undei

previous

law to be

deemed to

be requtal-

tioned

under this

Chapter.

the Requisitioning and Acquisition of Immovable Property Act, 1952, which continued, immediately before the commencement of that Act, to be subject to requisition under the Requisitioned Land (Continuance of Powers) Act, 1947, and has not, immediately before the commencement of this Act, been released from requisitioning shall, notwithstanding anything contained in any other law for the time being in force or in any judgment, decree or order of any court, be deemed to be the property requisitioned under sub-section (I) of section 29 if such property is, in the opinion of the Central Govern- ment, now required for any of the purposes specified in that sub- section:

Provided that—

(a) all agreements or awards for the payment of compen- sation in respect of any such property for any period of requisi- tion before the commencement of this Act and in force imme- diately before such commencement, shall continue to he in force

and shall apply to the payment of compensation in respect of that property for any period after such commencement;

30 of 1952,

17 Of I947.

(b) anything done or any action taken (including any orders, notifications or rules made or issued) under the Requisitioning and Acquisition of Immovable Property Act, 1952, or under the Requisitioned Land (Continuance of Powers) Act, 1947, and con- tinued under the first-mentioned Act, shall, in so far as it Is not inconsistent with the provisions of this Chapter or any rules or orders made thereunder, be'deemed to have been done or taken under this Chapter.

CHAPTER Vn

SUPPLEMENTAL

Pftwer to

delegate.

40. (1) The Central Government may, by order, direct that any power or duty which by this Act or by any rule made under this Act Is conferred or imposed upon the Central Government shall, in such circumstances and under such conditions, if any, as may be specified in the direction, be exercised or discharged also—

(a) by any officer or authority subordinate to the Central Government, or

(b) whether or not the power or duty relates to a matter with respect to which a State Legislature has power to make laws, by any State Government or by any officer or authority subordinate to such Government, or

(c) by any other authority.

(2) The State Government may, by order, direct that any power or duty wfhlch by this Act or by any rule made under this Act is con- ferred or imposed on the State Government or which, being by this Act or any such rule conferred or imposed on the Central Govern- ment, has been directed under sub-section (1) to be exercised or dis- charged by the State Government, shall, in such circumstances and under such conditions, if any, as may be specified in the direction, be exercised or discharged by any officer or authority not being (ex- cept in the case of a Union territory) an officer or authority subordi- nate to the Central Government.

Rules to be

laid before

Home* of

Parliament.

41. Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in