REGISTERED NO. D. 221
The Gazette of India
EXTRAORDINARY
PART II—Section 1
PUBLISHED BY AUTHORITY
No. 49] NEW DELHI, MONDAY, DECEMBER 5, 1966/AGRAHAYANA 14, 1888
Separate paging is given to this Part in order that it may be filed
as a separate compilation.
MINISTRY OF LAW
(Legislative Department)
New Delhi, the 5th December, 1966/Agrahayana 14, 1888 (Saka)
The following Acts of Parliament received the assent of the Pre- sident on the 3rd December, 1966, and are hereby published for general information: —
THE DELHI MUNICIPAL CORPORATION (VALIDATION OF ELECTRICITY TAX) ACT, 1966
No. 35 OF 1966
[3rd December, 1966] An Act to validate the imposition and collection of certain taxes on the consumption or sale of electricity by the Delhi Municipal Corporation.
BE it enacted by Parliament in the Seventeenth Year of the Republic of India as follows: —
1. This Act may be called the Delhi Municipal Corporation (Vali- Short title dation of Electricity Tax) Act, 1966.
(537)
538 THE GAZETTE OF INDIA EXTRAORDINARY [PART I*2. (1) Notwithstanding anything contained in section 150 read with sub-section (2) of section 109 of the Delhi Municipal Corpora-
66 of 1957 tion Act, 1957, the resolution of the Delhi Municipal Corporation dated the 24th June, 1959, passed under sub-section (3) of section 150 aforesaid, in so far as the said resolution relates to the deter- mination of the rates at which tax shall be leviable on the con.
Validation of levy, collection, etc., of tax on consump- tion or sale of electricity.
sumption or sale of electricity shall be deemed to have been passec in accordance with law and the rates specified in the said resolution in respect of tax on the consumption or sale of electricity shall b< deemed to be, and to have been, the actual rates of the tax undej the said Act with effect on and from the 1st day of July, 1959 and uj to and inclusive of the 31st day of March, 1966.
(2) Notwithstanding anything contained in any judgment, decre< or order of any court to the contrary, all taxes on the consumptior or sale of electricity levied or collected or purporting to have beei levied or collected in pursuance of the resolution referred to ir sub-section (i) shall, for all purposes, be deemed to be, and to havi always been, validly levied or collected, and accordingly—
(a) all acts, proceedings or things done or taken by th< Delhi Municipal Corporation or by any other authority in con nection with the levy or collection of such taxes shall, for al purpose • be deemed to be, and to have always been, done oi taken in accordance with law;
(b) no suit or other proceedings shall be maintained or con^ tinued in any court against the Government, the Delhi Muni cipal Corporation or any person or authority whatsoever for th" refund of any taxes so paid; and
(c) no court shall enforce any decree or order directing th" refund of any taxes so paid.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 539THE METAL CORPORATION OF INDIA (ACQUISITION OF UNDERTAKING ACT/1066
No 36 OF 1966
[3rd December, 1966]
An Act to provide for the acquisition of the undertaking of the Metal Corporation of India Limited for the purpose^ofenabl- ing the Central Government in the public interest to exploit, to the fullest extent possible, zinc and lead deposits in and around the Zawar area in the State of Rajasthan and to utilise those minerals in such manner as to subserve the common good.
BE it enacted by Parliament in the Seventeenth Year of the Republic of India as follows: —
CHAPTER I
PRELIMINARY
1. (7) This Act may be called the Metal Corporation of India (Acquisition of Undertaking) Act, 1966.
Short title and commen. cement.
(2) It shall be deemed to have come into force on the 22nd day of October, 1965, except section 17 which shall be deemed to have come into force on the 13th day of September, 1966.
2. In this Act, unless the context otherwise requires,—
Definitions.
(a) "administrator" means an administrator appointed under section 13;
(b) "commencement of this Act" means the 22nd day of October, 1965;
1 of 1&56.
(c) "company" or "the Metal Corporation of India" means the Metal Corporation of India Limited, being a company as denned in the Companies Act, 1956, having its registered office at Calcutta;
(d) "Tribunal" means the Tribunal constituted under sec- tion 11;
1 of 1958.
(e) words and expressions used b"jt not defined in this Act and defined in the Companies Act, 1956, shall have the meanings respectively assigned to them in that Act.
54© THE GAZETTE OF INDIA EXTRAORDINARY IPAHT IICHAPTER II
ACQUISITION OF THE UNDERTAKING OP THE METAL CORPORATION OF INDIA
3. On the 22nd day of October, 1965, the undertaking of the com- pany shall, by virtue of this Act, be deemed to have been transferred to, and vested in, the Central Government.
Undertak- ing of company to vest in Central Govern- ment.
General effect of vesting under section 3,
4. (7) The undertaking of the company shall be deemed to in elude all assets, rights, leaseholds (including mining leases, if any) powers, authorities and privileges and all property, movable and immovable, including lands, buildings, works, .mines, workshops projects, smelters, refineries, stores, instruments, machinery, locomo tives, automobiles and other vehicles, mined or extracted zinc oi lead ores, concentrates and metals, in process or in stock or ir. transit, cash balances cash on hand, reserve fund, investments anc book debts and all other rights and interests arising out of such pro- perty as were immediately before the commencement of this Ad in the ownership, possession, power or control of the company ir relation to the undertaking, whether within or without India, and all books of account, registers, maps, plans, sections, drawings, records of survey and all other documents of whatever nature relating thereto, and shall also be deemed to include all borrowings, liabilities and obligations of whatever kind then subsisting of the company in relation to the undertaking.
(2) All property included as aforesaid in the undertaking which has vested in the Central Government under section 3 shall, by force of such vesting, be freed and discharged from any trusts, obligations, mortgages, charges, liens and other encumbrances affecting it, and any attachment, injunction or any decree or order of a court restrict- ing the use of such property in any manner shall be deemed to have been withdrawn.
(3) Subject to the other provisions contained in this Act, all con- tracts and working arrangements which are subsisting immediately before the commencement of this Act and affecting the company shall, in so far as they relate to the undertaking of the company, cease to have effect or be enforceable against the company or any person who was surety or had guaranteed the performance thereof and shall be of as full force and effect against or in favour of the Central Government and enforceable as fully and effectually as if instead of the company the Central Government had been named therein or had been a party thereto.
SEC. 1] THE GAZETTE OP INDIA EXTRAORDINARY 5 4l(4) Subject to the other provisions contained in this Act, any proceeding or cause of action pending or existing immediately before the commencement of this Act by or against the company in relation to its undertaking may, as from such commencement, be continued and enforced by or against the Central Government as it might have been enforced by or against the company if this Act had not been passed, and shall cease to be enforceable by or against the company. its surety or guarantor.
1 of 1950.
Provisions respecting officers and em- ployees of the company.
5. (/) Every officer or other employee of the company (except a director or any managerial personnel specified in section 197A of the Companies Act, 1956, or any other person entitled to manage the whole or a substantial part of the business of the company under a special agreement) in the employment of the company immediately before the commencement of this Act shall, in so far as such employee is employed in connection with the affairs of the undertaking of the company, become as from such commencement, an officer or other employee, as the case may be, of the Central Government and shall hold his office by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension and gratuity and other matters as he would have held under the company if this Act had not been passed and shall continue to do so unless and until his employment in the Cen- tral Government is terminated or until his remuneration, terms and conditions are duly altered by the Central Government:
Provided that if the alteration so made is not acceptable to any such officer or employee, his employment may be terminated by the Central Government on payment to him by the Central Government of compensation equivalent to three months' remuneration in the case of permanent employees and one month's remuneration in the case of other employees:
Provided further that nothing contained in this section shall apply to any officer or other employee who has, by notice in writing given to the Central Government within thirty days next following the commencement of this Act, intimated his intention of not becoming an officer or other employee of the Central Government.
14 of 1947.
(2) Notwithstanding anything contained in the Industrial Dis- putes Act, 1947, or in any other law for the time being in force, the transfer of the services of any officer or other employee of the company shall not entitle any such officer or employee to any com- pensation under that Act or other law, and no such claim shall be entertained by any court, tribunal or other authority.
1 of 1958.
Directors and man- aging agents not entitled to com- pensation.
6. Notwithstanding anything contained in any law for the time being in force, no director or managerial personnel specified in sec- tion 197A oi the Companies Act, 1956, or other person entitled to manage the whole or a substantial part of the business and affairs of the company unu_r a special agreement shall be entitled to any compensation against the company or the Central Government for the loss of office or for the premature termination of any contract oi management entered into by him with the company.
7. (1) Where any property has vested in the Central Government under section 3, every ^erson in whose possession or custody or under whose control the property may be, shall deliver the property to the Central Government forthwith.
Duty to deliver possession of pro- perty ac- quired and docu- ments relating thereto.
(2) Any person who, on the commencement of this Act, has in his possession or under his control any books, documents or othei papers relating to the company which have vested in the Central Government under this Act and which belong to the company oi would have so belonged if the undertaking of the company had noi vested in the Central Government shall be liable to account for the said books, documents and papers to the Central Government and shall deliver them up to the Central Government or to such person as the Central Government may specify in this behalf.
(3) The Central Government may take all necessary steps foi securing possession of all properties which have vested in thai Government under section 3.
Dutvto furnish particu. lars.
8. The company shall, within such period as the Central Govern- ment may allow in this behalf, furnish to that Government a complete inventory of all the properties and assets (including particulars o: book debts and investments and belongings) of the company at th< commencement of this Act, all liabilities and obligations o: the company subsisting at such commencement and also of al" agreements entered into by the company and in force on sucl commencement including agreements, whether express or implied relating to leave, pension, gratuity and other terms of ser vice of any officer or other employee of the company under which by virtue of this Act, the Central Government has, or wil have, or may have, liabilities except such agreements as that Gov ernment may exclude from the operation of this section, and fo: tnis purpose, the Central Government shall afford the company al reasonable facilities.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 543Right of Govern- ment to dis- claim certain agree- ments.
9. (1) Where it appears to the Central Government that the I making of any agreement under which the company has or will have c or may have liabilities was not reasonably necessary for the pur- * poses of the activities of the company or has not been entered into c in go-od faith, the Central Government may, within two years from c the commencement of this Act, apply to the Tribunal for relief from E the agreement and the Tribunal, if satisfied after making such inquiry r in the matter as it thinks fit that the agreement was not reasonably necessary for the purposes of the activities of the company or has not been entered into in good faith, may make an order cancelling or varying the agreement on such terms as it may think fit to impose and the agreement shall thereupon have effect accordingly.
(2) All the parties to the agreement which is sought to Ir^ can- celled or varied under this section shall be made parties to che proceeding.
10. (/) The Central Government shall pay compensation to the 1 company for the acquisition of the undertaking of the company and ' such compensation shall be determined in accordance with the ] principles specified in the Schedule and in the manner hereinafter \ < set out, that is to say,—
Compen- sation [or acquisi- tion Df under- taking.
(a) where the amount of compensation can be fixed by agreement, it shall be determined in accordance with such agree- ment;
(b) where no such agreement can be reached, the Central Government shall refer the matter to the Tribunal within a period of three months from the date on which the Central Gov- ernment and the company fail to reach an agreement i.=garding the amount of compensation.
(2) Notwithstanding that separate valuations are calculated under the principles specified in the Schedule in respect of the several mat- ters referred to therein, the amount of compensation to be given shall be deemed to be a single compensation to be given for the under- taking as a whole.
(3) The amount of compensation determined in accordance with the foregoing provisions shall be paid to the company in cash within a period of six months from the date of such determination:
Provided that if compensation is not paid within the period aforesaid, the Central Government shall pay interest on the amount of compensation at the rate of four per cent, per annum from the date of expiry of the said period.
544 THE GAZETTE OF INDIA EXTRAORDINARY [PART LICHAPTER III
TRIBUNAL
Constitu- tion of Tribunal.
11. (1) The Central Government may for the purposes of this Act constitute a Tribunal which shall consist of a single person who is, or has been, or is qualified to be, a Judge of a High Court or of the Supreme Court.
(2) The Tribunal may choose one or more persons possessing special knowledge of any matter relating to any case under i>" i'liry to assist the Tribunal in determining any question which has to be decided by it under this Act.
B of 1908 (3) The Tribunal shall have the powers of a civil court while trying a suit under the Code of Civil Procedure, 1908, in respect of the following matters, namely:—
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of documents or other material objects producible as evidence;
(c) receiving evidence on affidavits;
(d) issuing commissions for the examination of witnesses oi documents.
(4) The Tribunal shall have power to regulate its own procedure and decide all matters within its competence, and may review any of its decisions in the event of there being a mistake on the face of the record or correct any arithmetical or clerical error therein but subject thereto, the decision of the Tribunal on any matter within its jurisdiction shall be final and conclusive.
CHAPTER IV
MANAGEMENT AND ADMINISTRATION OF THE UNDERTAKING
1 of 1950 Formation of Govern- ment com- pany for manage- ment of under- taking.
12. For the efficient management and administration of the undertaking of the company vested in the Central Government by virtue of this Act, that Government may form a Government company in accordance with the provisions of the Companies Act, 1956 and on the formation of such company, the undertaking, together with all its properties, assets, liabilities and obligations specified in sub-section (i) of section 4 and such other properties, assets, liabili- ties and obligations as may, after the commencement of this Act, be
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 545acquired or incurred for the purposes of the undertaking, shall, by virtue of this Act, stand transferred to, and vest in, that Government company.
Appoint- ment of admi- nistrators.
13. (1) Pending the formation of the Government company referred to in section 12, the Central Government may appoint one, or more than one, administrator for the efficient management and administration of the undertaking.
(2) Such administrator or administrators shall, in the manage- ment and administration of the undertaking, act in accordance with such directions, it any, a;> may be issued by the Central Govern- ment in this behalf.
CHAPTER V
MISCELLANEOUS
Penalties.
14. (1) Any person who-
(a) having in his possession, custody or control any property forming part of the undertaking of the company, wrongfully withhold-; such properly from the Central Government; or
(b) wrongfully obtains possession of any property forming part of the undertaking of the company which has vested in the Central Government under this Act; or
(c) wilfully withholds or fails to furnish to the Central Government or any person specified by that Government as required by sub-section (2) of section 7 any document which may be in his possession, custody or control; or
(d) wilfully fails to furnish an inventory as required under section 8; or
(e) when required to furnish such inventory, furnishes any particulars therein which are false and which he either knows or believes to be laLe or doe, not believe to be true,
shall be punishable with imprisonment for a term which may extend to two years, or with fine, or with both:
Provided that the court trying any offence under clause (a) or clause (b) or clause (c) of this sub-section may, at the time of con- victing the accused person, older him to deliver up or refund within a time to be fixed by the court any property wrongfully withheld or
546 THE GAZETTE OF INDIA EXTRAORDINARY [PART Uwrongfully obtained or any document wilfully withheld or not iur nished:
Provided further that nothing contained in this section or anj other provision of this Act shall render any person liable to be con- victed of an offence in respect of anything done or omitted to b< done by him before the 13th day of September, 1966.
(2) No court shall take cognizance of an offence punishable undei this section except with the pievious sanction of the Central Govern- ment or of an officer authorised by that Government in this behalf.
15. No suit, prosecution or other legal proceeding shall lie againsi the Central Government or an administrator or an officer or othei employee serving in connection with the affairs of the undertaking of the company for anything which is in good faith done or intended to be done under this Act.
Protec-
tion of
action
taken
under
this
Act.
16. (1) The Central Government may, by notification in the Official Gazette, make rules to carry out the purposes of this Act.
Power
to make
rules.
(2) Every rule made by the Central Government 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 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 modification 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 b"; sc however that any luch modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
17. Notwithstanding any judgment, decree or order of any court,—
lof 1936
44 of 1065
Certain
M*ionu,
•tc,
deemed
tob*
taken
umder
thli
Act
(a) the Government company called the Hindustan Zinc Limited, having its registered office at Udaipur, formed under the Companies Act, 1956, in pursuance of section 12 of the Metal Cor- poration of India (Acquisition of Undertaking) Act, 1965, which has been declared to be unconstitutional and void, (hereinafter referred to ai the said Act), thall be deemed to be and to have been formed under the Companies Act, 1956, in pursuance of sec- tion 12 of thii Act; and the undertaking of the Metal Corporation of India together with all properties, assets, liabilities and obliga- tions referred to in section 12 of this Act shall be deemed to have
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 547been transferred to, and vested in, the said Government company on the date of its formation;
(b) any rule, order or appointment purporting to have beer, made, any decision or direction purporting to have been given, any action or proceeding purporting to have been taken, or any- thing purporting to have been done under any provision of the said Act shall be deemed to be and to have been a rule, order or appointment made, decision or direction given, action or pro- ceeding taken, or thing done under the corresponding provision of this Act.
18. (1) The Metal Corporation of Ind^a (Acquisition of Under- taking) Ordinance, 1966, is hereby repealed.
WotltM.
R*p4ud Md mrlnf.
(2) Notwithstanding su:h repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under this Act.
THE SCHEDULE
(See section 10)
PRINCIPLES FOR DETERMINING COMPENSATION FOR ACQUISITION OF
THE UNDERTAKING
Paragraph I.—The compensation to be paid by the Central Gov- ernment to the company in respect of the acquisition of the urider- taking thereof shall be an amount equal to the sum total of the value of the properties and assets of the company as on the commence- ment of this Act calculated in accordance with the provisions of paragraph II Uss the sum total of the liabilities and obligations of the company as on such commencement calculated in accordance with the provisions of paragraph III, together with interest on such amount calculated in accordance with the provisions of paragraph IV.
Paragraph II.— (a) The market value at the commencement of this Act—
(i) of any land or buildings;
(ii) of any plant, machinery or other equipment;
(iii) of any •hares, securities or other investments held by the company;
548 THE GAZETTE OF INDIA EXTRAORDINARY [PART II(b) the total amount of the premiums paid up to the commence- ment of this Act by the company in respect of all leasehold properties reduced in the case of each such premium by an amount which bears to such premium the same proportion as the expired term of the lease in respect of which such premium shall have been paid bears to the total term of the lease;
(c) the amount of debts due at the commencement of this Act to the cqmpany, whether secured or unsecured, to the extent to which they are reasonably considered to be recoverable;
(d) the amount of cash held at the commencement of this Act by the company, whether in deposit with a bank or otherwise;
(") the market value at the commencement of this Act of all tangible assets and properties other than those falling within any of the preceding clauses-
Paragraph III.—The total amount of liabilities and obligations incurred by the company in connection with the formation, manage- ment and administration of the undertaking and subsisting immedi- ately before the commencement of this Act.
Paragraph IV.—The interest referred to in paragraph I shall be on the amount mentioned in the said paragraph for the period com- mencing on the 22nd day ol October, 1965, and ending with the 13th day of September, 1966, calculated at the average bank rate during the said period.
S. P. SEN-VARMA,
Secy, to the Govt. of India.
FRTNTED TN INT1TA PY THE C t ' ^l> ' M, "M1NAGFP GO\EIIMMFNT (V TNt)T\ PpFSS, MINTO ROAD, NEW DEII1T AND I'I > I "SH^Tl PY THE MANAGER OF PUBLICATIONS,