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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section (ii)

PUBLISHED BY AUTHORITY

No. 155] NEW DELHI, THURSDAY, MARCH 33, 1967/CHAITRA 2, 1889

Separate paging is given to this Part in order that it may be filed

as a separate compilation.

MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION New Delhi, the 23rd March 1967

S. O. 1008.—Whereas by the notification of the Government of India in the Ministry of Finance, Department of Economic Affairs. No. F 6(46)-Covp /G6 dated the 13th February, 1967, issued under Section 69 of the Punjab Reorganisation Act, 1966 (31 of 1966), the Central Government had directed the Board of Direc tors of the Punjab Financial Corporation, Chandigarh, to convene a meeting for the consideration of a Scheme for the reconstitution and reorganisation of the said Financial Corporation, including proposals regarding the formation of new corporations and the transfer thereto of all the assets, rights and liabilities oil the said Financial Corporation;

And whereas in pursuance of such direction, the aforesaid Board of Directors at its meeting held on the 15th March, 1967, considered a Scheme for the said purposes;

And whereas the said Scheme has been approved at a general meeting of the shareholders of the said Financial Corporation held on the 17th March, 1967, by a resolution passed thereat unanimously;

And whereas the Scheme as so approved and set out in the annexure below

has been submitted to the Central Government for its sanction-

Now, therefore, In exercise of the powers conferred by sub-section (4) of the said section 60, the Central Government hereby sanctions and certifies the Scheme set out In the Annexure below-

(755 )

ANNEXURE

SCHEME FOR THE REORGANISATION OF THE PUNJAB FINANCIAL COR-

PORATION UNDER THE PUNJAB REORGANISATION ACT, 1966—SECTION

fi9 OF THE ACT

Preamble

Whereas the Government of Punjab and the Government of Haryana have requested the Central Government to reconstitute and reorganise the Punjab Financial Corporation in such a way as to constitute separate State Financial Corporations for the State of Punjab and the State of Haryana, it has become necessary in terms of Section 69 of the Punjab Reorganisation Act, 1066. to frame j scheme for the reeonstitution and reorganisation of the Punjab Financial Cor- poration so as to establish a separate State Financial Corporation for the State of Haryana and reconstitute the Punjab Financial Corporation.

Consequent on the decision of the two State Governments to have indepen- dent State Financial Corporations of their own, the Central Government has de- cided to constitute two .separate Financial Corporations known as the Himachal Pradesh Financial Corporation for the Union TetTitorjy of Himachal Pradesh and the Delhi Financial Corporation for the Union Territories of Delhi and Chandigarh.

Now therefore, the following scheme is prepared for the reorganisation and reconstitution of the Punjab Financial Corporation so that such of the assets, rights and liabilities of the Corporation In so far as they are relatable to the Haryana State and the three Union Territories are transferred to the new Haryana, Himachal Pradesh and the Delhi Financial Corporations and after such transfer the Punjab Financial Corporation shall be reconstituted to serve the needs of the State of Punjab

Scheme

I Definitions.—(i) 'Jurisdiction¹ bhall mean the jurisdiction of the residuary Punjab Financial Corporation the Haryana Financial Corporation, the Himachal Pradesh Financial Corporation and the Delhi Financial Corporation as denned below:

Area of jurisdiction

I Name of the Corporation

Seria) No.

Territories comprised in the State of Punjab.

Funjah Financial Corporation .

i

Territories, comprised in the State of Haryana.

Haryana Financial Corporation -

2.

Territories comprised in the Union Territory of Himachal Pradesh Financial

3.

I-llmachal Pradesh.

Corporation.

Territories comprised in the Union Territories of Delhi Financial Corporation

4-

Delhi and Chandigarh.

(11) The 'Population Ratio' shall mean the ratio of population as per the census of 1961 of the territories of the State of Punjab, the State of Haryana, Union Territory of Himachal Pradesh and the aggregate population of the Union Terri- tories of Delhi, and Chandigarh, namely, 45-80%, 31-22%, 11-56% & 11-42% res- pectively.

II- The assets, rights and liabilities of the Punjab Financial Corporation as at the close of the business on Hist March, 1067, shall be divided betweer. the four Corporations.

III. (1) The paid-up capital of the existing Corporation is Rs. 100 lakhs, sub- scribed in shares of the face value of Rs- 100 each as follows:—

Number o1

Number of share-

holders

shares held

in the class

1

1

1 r

1

T

12,151 12,151 12,251 201 4,901 20,000 19,250 S,ooo

. . . . . ..

4 21

P u n j ab G o v e r n m e nt H a r y a na G o v e r n m e nt . . . . . .. D e l hi A d m i n i s t r a t i on . . , . . .- C h a n d i g a rh A d m i n i s t r a t i on . . . .. H i m a c h al P r a d e sh G o v e r n m e nt R e s e r ve B a nt of I n d ia . . . . . .. S c h e d u l ed B a n ks C o - o p e r a t i ve B a n ks I n s u r a n ce C o m p a n i e s, I n v e s t m e nt T r u s ts a nd o t h er F i n a n c i al

I. 2. 3- 4- 5- 6. 7- 8. 9-

i n s t i t u t i o ns ( e x c l u d i ng s c h e d u l ed B a n ks a nd C o - o p e r a t i ve B a n k s)

6

10,750 P a r t i es r e f e r r ed to in c l a u se ( d) of s u b - s e c t i on ( 3) of S e c t i on

IO.

4 of t he A c t.

. . ..

152

3.345

189

1,00,000

(ii) In dividing the paid-up capital, the shares of the Governments and Ad- ministrations referred to at items 1 to 5 in sub para, (i) above shall be pooled together and form a single mass

'

(iii) (a) The paid-up capital including the; shares of the Governments and Administrations referred to in sub-para, (i) above shall be divided In the 'Popu- lation Ratio'.

(b) The allocation

, (iv) The shares so allocated shall be deemed to be the shares of the respective Corporation and shall stand guaranteed as to the payment of '.lividend and the repayment of principal by the Governments of Punjab and Haryana and the Administrators of the Union Territories of Himachal Pradesh, Delhi and Chandi- garh, as the case may be.

(v) The Authorised Capital of the reconstituted Punjab Financial Corporation and the new Haryana Financial Corporation, the Himachal Pradesh Financial Corporation and the Delhi Financial Corporation shall be fixed as follows:—

Punjab Financial Corporation . . . . . R s, 100 lakhs.

Haryana Financial Corporation Rs. 100 laks.

Himachal Pradesh Financial Corporation . . . Rs. 50 lakhs.

Delhi Financial Corporation Rs. 5° lakhs.

JV- Reserves.—Each of the sums comprised in the Reserves namely:— (i) Reserve Fund (Under Section 35 of the State Financial Corporations Act,

1951):

(a) The General Reserve, subject to the; adjustment mentioned hereinafter

in sub-para, (vlii) of Para. XV

(b) The Special Reserve for purposes of Section 30(1) (vlii) of Income Tax

Act, 1961,

(c) The Reserve Fund for Bad and Doubtful debts,

(d) The Gratuity Reserve,

(e) The Investment Reserve.

(ii) Special Reserve Fund (Under Section 35-A of the State Financial Corpor- ations Act) shall be divided in the population ratio.

V- Borrowings—(i) The borrowings from the Reserve Bank of India against Government securities [under Section 7(2)(aj of the State Financial Corporation- Act] shall be divided in the population ratio.

(il) The borrowings from the Reserve Bank of India against Bonds of the Corporation redeemable after the 31st March, 1967 shall be divided in the popu- lation ratio-

(lii) The borrowings under Section 7(4) of the State Financial Corporations Act, 1951 (63 of 1951) from Lhe Industrial Development Bank of India shall be apportioned amongst the four Corporation on the basis of the borrowings availed of aKainst the particular loans transferred to the respective Corporations-

VI. Subvention.—The subvention to be repaid under Section 35 of the State Financial. Corporations Act, 1951 (63 of 1951) by the Punjab Financial Corpora- tion on account of the dividend liability aggregating to Rs. 3:50 lakhs shall be retained by the residuary Punjab Financial Corporation out of the profits l'or the year ending 31st March, 1967 for repayment to the Punjab Government.

VII, Other liabilities.—(i) The "State Government Funds under Agency Agree- ment" shall be allocated to the respective Financial Corporations on the lasis of the 'Investment Ratio' of such loans-

(ii) The "Sundry Deposits" and "Borrowers' Imprest" shall be allocated to the respective Corporations to which the loan advanced or sought for relating to the Sundry Deposits or Borrowers' Imprest has been allocated.

(iii) The 'Staffl Provident Fund' shall be allocated among the respective Cor- porations In accordance with the members of the staff absorbed by each, except for the Managing Director, who is under contract and for whom a separate pro- vision is being made.

(iv) (a) The 'Divident Payable' for the year ending 31st March, 1967, shall be appropriated Worn the Profit and Loss Account and shall be allocated on cash basis out of the cash balances to the Punjab Financial Corporation, who shall be responsible to make the disbursements to shareholders as they stand in the re- gister of the shareholders of the Corporation at the close of business on the 31st March, 1967.

(b) Out of the dividend payable to the Punjab and Haryana State Govern- ments and the Administrators of the Union Territories of Delhi, HImachal Pra- desh and Chandigarh and the Reserve Bank of India an aggregate amount of, Rs. 1,20,000-00 shall be deducted as follows and added to the Special Reserve Fund under Section 35A of the State Financial Corporations Act, 1951 (63 of 1951) before the division of Reserves to the respective Corporations.

(/) LStatcJGovernmcntsfof Puniabjand Haryana andl Union Terri- tories of Delhi, Himachal Pradesh and Chandiggarh in pro- portion to the shares held by each on the 31st March, 1967 Rs. 60,000 • 00

(it) Reserve Bank of India Rs. 60,000-00

TOTAL RS. 1,20,000-00

(v) The 'Unclaimed Dividend' shall be allocated to the Punjab Financial Cor- poration on cash basis out of cash balances-

(vi) The 'Interest due on Agency Loams but not yet realised' shall be allocated on the basis of the Investment Ratio of such loans.

(vli) The 'Interest on Bonds accrued but not due' shall be the liability of the residuary Punjab Financial Corporation and the residuary Punjab Financial Corporation shall retain to itself an equivalent amount out of the cash balances.

(viii) The 'outstanding liabilities' shall be discharged by the residuary Punjab Financial Corporation, and the residuary Punjab Financial Corporation shall retain to Itself an equivalent amount out of the cash balances.

VIII. Provision for taxation.—The Provision for taxation' shall be allocated in cash out of the cash balances to the residuary Punjab Financial Corporation after

SEC. S(ii)] THfe GAzfcTlE OF INDIA tXifcAORDlNARY

' 759

deducting the advance tax pai'l and tax deducted at source and it shall be the responsibility of the residuarj Punjab Financial Corporation to pay all the income tex due from the Corporation- If any addltionnl liability in respect of the period ending 31st March, 1967, aiiscs in future, it shall claim from the Ilcryana, Hlmachal Pradesh and Delhi Financial Corporations proportionate amounts of tax liability on The 'Population Ratio'. If any refund of income tax is received by the Punjab Financial Cojporation, it shall pay the refund in the same propor- tion to the Haryana Hlmach.il Pradesh and Delhi Financial Corporations res- pectively.

IX. Profit and Loss Account.—(a) In making provisions under the Profit and Loss Account foi the year ending 31st Marc-h, 1967, the Punjab Financial Cor- poration shall make th^ following appropriations in the first instance —

(i) Provision for taxation, (ii) Provision for paying guaranteed dividend (iii) Provision for the repaying the outstanding subvention to the State Government.

(b) The balance, if any, shall be transferred to the various Reserve Funds as aurced to by the Board of Directors.

(r) (1) Provision for taxation shall be dealt with in accordance with Para VIII above.

(ii) Guaranteed Dividend shall be dealt with in accordance with Para- VII (iv) above.

(ill) Subvention—the amount ot Rs 3"50 lakhs shall tie dealt with as in Para VI above-

(d) Reserve shall be divided between the respective Corporations on the basis of the 'Population Ratio'.

X. Bonds and Debentures-—The "Bonds and Debentures" shall be allocated to the respective Corporations by reference to the distinctive numbers and other particulars in each series by the Central Government after taking into consider- ation, as far as possible, an equitable distribution amongst the respective Cor- porations, on the basis of maturity of bonds. Upon such allocation, the Bonds so specified shall be deemed to be the Bonds Issued by the respective Corporations to whom the Bonds have been so allocated. The Bonds guaranteed by the former Government of Punjab shall bo allocated between the Punjab and Haryana Finan- cial Corporations only The Bonds guaranteed by the former Government of Punjab and Delhi and/or Himac.ha] Pradesh Administrations shall be allocated between the Punjab, the Haryana, the Himachal Pradesh and the Delhi Financial Corporations These Bonds shall further stand guaranteed as to the payment of inte- rest and repayment of principal by the Governments of Punjab and Haryana and the Administrators of the Union Territories of Himachal Pradesh, Delhi and Chandi- garh, as the case may be. In specifying the distinctive numbers of the Bonds, the Central Government shall have due roRard to the jurisdictions of the Punjab, Haryana, Himachal Pradesh and Delhi Corporations in which the fixed assets of the Industrial concerns to which loans and advances had been granted by the Punjab Financial Corporation lie, so that the Corporation, which receives the assets in the shape of Cash & Bank balances, Investments and Loans and Advan- ces, is allocated a proportionate amount of the aggregate of (he liabilities, under the different heads 'Capital Reserves', 'Bonds & Debentures' and 'Borrowings from the Industrial Development Bank of India'-

XI. Cash and Bank Balances and Investments.—The 'Cash and Bank Balances and Investments' shall be subject to the adjustments mentioned in the various paras- After making these adjustments the net cash and bank balances and invest- ments shall be divided on the basis of the 'Population Ratio'.

XII. Loans & Advances—The 'Loans & Advances' representing the Corpora- tion's funds and the Agency funds shall be divided on the basis of Jthe 'Invest- ment Ratio'.

XIII. Premises, Land & Buildings.— (a) The premises, land and buildings shall be allocated to the Delhi Financial Corporation. The Delhi Financial Corporation shall provide accommodation to the reconstituted Punjab Financial Corporation and the Haryana Financial Corporation in the buildings on payment of rent- '

(b) The Delhi Financial Corporation shall pay in cash to the residuary Punlab Financial Corporation, the Haryana Financial Corporation and the Himachal