रजिस्ट्री सं ० जी० 221
REGISTERED NO. D. 8 值
भारत का राजपत्र The Gazette of Irdia
असाधारण
EXTRAORDINARY
भाग II-लण्ड 1
PART II Section 1
प्राधिकार से प्रकाशित
PUBLISHED BY AUTHORITY
सं० 82]
नई विल्लो, बुधवार , विसम्बर 27 , 1972/पौष 6, 1894
No 82] NEW DELHI , WEDNESDAY , DECEMBER 27 , 1972 / PAUSA 6 , 1894
इस भाग में भिन्न पृष्ठ संख्या वी आती हैं जिससे कि यह अलग संकलन के रूप में रखा जा सके । Separate paging is given to this Part in order that it may be filled as a separate compilation.
MINISTRY OF LAW AND JUSTICE
(Legislative Department ) New Delhi , the 27th December , 1972 / Pausa 6. 1894 ( Saka )
The following Acts of Parliament received the assent of the President on the 24th December, 1972 , and are hereby published for general information : -
THE INDUSTRIAL FINANCE CORPORATION
(AMENDMENT) ACT , 1972
No. 74 OF 1972
[24th December , 1972 ]
An Act further to amend the Industrial Finance Corporation Act , 1948 Be it enacted by Parliament in the Twenty- third Year of the Republic of India as follows :-
title, 1. This Act may be called the Industrial Finance Corporation (Amend Shor : ment) Act , 1972 .
18 of 1948 . 2. In section 2 of the Industrial Finance Corporation Act, 1948 ( here- Amend- inafter referred to as the principal Act) ,
ment of section 2.
(a) after clause (b ) , the following clause shall be inserted , namely:
' (ba) " Court" means the High Court (or where there is no High Court and the powers of the High Court are exercised by the Court of Judicial Commissioner , such Court) within the local limits of whose jurisdiction the defendant or respondent carries on the whole or a substantial part of his business , and where the Central Government has , by notification in the Official Gazette and subject to such restrictions , limitations and conditions as it thinks fit , empowered any Court of civil jurisdiction subordinate to the High Court to exercise all or any of the powers conferred by this Act, such Court;' ;
(959 )
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(b) in clause ( c) , for the words " any public limited company" , the words " any limited company " shall be substituted ;
(c) after clause (f) , the following clause shall be inserted , namely:-
2of 1934, ' (f) " State co- operative bank " has the same meaning as in the Reserve Bank of India Act, 1934;' .
3. In section 4 of the principal Act,-
Amend- ment of section 4 .
(a) after sub -section (1 ) , the following sub- section shall be inserted , namely: -
" ( 14) On and from the commencement of the Industrial Finance Corporation (Amendment ) Act, 1972 , the authorised capital of the Corporation shall stand increased to twenty crores of rupees , divided into forty thousand shares of five thousand rupees each , and the shares representing the capital so increased may be issued , with the sanction of the Central Government , as and when the Corporation may deem fit . " ;
(b) in sub -section ( 7) , after the words " the Development Bank" , the words " the Reserve Bank " shall be inserted .
Amend- ment of section 10A.
4. In section 10A of the principal Act, in sub-section ( 4) , the words "Central Committee " wherever they occur shall , subject to such grammati- cal variations and omission of cognate expressions as may be necessary , be omitted .
Amend- ment of section 11 .
5. In section 11 of the principal Act , in sub - section (4 ) , for the words "the Central Committee or any other Committee " , the words " any Com- mittee" shall be substituted.
6. Section 14 of the principal Act shall be omitted.
7. In section 17 of the principal Act ,-
Omission of section14, Amend- ment of section17 .
(a) in sub -section ( 1 ) , the words " and of the Central Committee " shall be omitted;
(b) in sub - section ( 2) ,-
(i) the brackets and letter " ( a) " shall be omitted;
(ii) sub - clause (b ) shall be omitted;
(c) in sub -section (3 ) , for the words " or of the Central Com- mittee , each Director or member of the Committee , as the case may be," the words " each Director" shall be substituted;
(d) for sub -section ( 5) , the following sub - section shall be substi- tuted , namely: --
" (5) If for any reason the Chairman is unable to be present at a meeting of the Board, a Director authorised by the Chair- man in writing in this behalf , shall preside at that meeting and in default of such authorisation , the Board may elect a Director to preside at that meeting. " .
Amend- ment of Jection 20.
8. In section 20 of the principal Act, the words " and the Corporation may also subscribe to , or purchase, the shares of any financial institution which the Central Government may, in consultation with the Develop- ment Bank, notify in this behalf" shall be added at the end.
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9. In section 21 of the principal Act,-
Amend- ment of section 21 (a) in the proviso to sub - section ( 1) , for the words " shall not at any time exceed ten times the amount of the paid- up share capi- tal and the reserve fund of the Corporation" , the words , figures, letters and brackets " shall not at any time exceed ten times of such amount as is the aggregate of the paid-up share capital , the reserve fund established under sub- section ( 1) of section 32, the special re- serve fund established under section 32A, the benevolent reserve fund established under section 32B and any other reserves of the Corporation ( not being reserves for bad and doubtful debts or for depreciation of assets or a reserve created or maintained to meet any specific contingency) " shall be substituted;
(b ) to sub - section (2 ) , the following proviso shall be added , namely:-
"Provided that no such guarantee by the Central Govern- ment shall be required in respect of such bonds and debentures of the Corporation as are issued to the Development Bank." ;
(c) in the proviso to sub - section (4) , for the words " shall not at any time in the aggregate exceed ten times the amount of the paid- up share capital and the reserve fund of the Corporation" , the words "shall not at any time exceed , in the aggregate, the limit specified in the proviso to sub - section ( 1 ) " shall be substituted .
10. After section 21 of the principal Act, the following sections shall be inserted, namely:-
Insertion of new sections 21A and 21B.
tobe Bonds and debentures approved securities.
2 of 1882
"21A . Notwithstanding anything contained in any other law for the time being in force, the bonds and debentures issued or sold by the Corporation shall be , and shall be deemed always to have been, approved securities for the purpose of the Indian Trusts Act, 1882, the Insurance Act, 1938, and the Banking Regulation Act, 1949 .
4 of 1938 .
10 of 1949 .
Power to rights . transfer 21B . The rights and interests of the Corporation ( including any other rights incidental thereto ) in relation to any loan or advance granted, or any amount recoverable, by it may be transferred by the Corporation, either in whole or in part, by the execution or issue of any instrument , or by the transfer of any instrument by endorsement or in any other manner in which the rights and interests in relation to such loan or advance may be lawfully transferred , and the Cor- poration may, notwithstanding such transfer, act as the trustee for the transferee ." .
11. In section 23 of the principal Act ,--
Amend- ment of section 23 .
(a) in sub- section (1 ) ,-
(i) in clause (b) , the proviso shall be omitted;
(ii) in clause ( d ) , the words " and retaining as part of its assets , any stocks , shares , bonds or debentures which it may have to take up in fulfilment of its obligations thereto" shall be inserted at the end;
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(iii ) after clause (d) , the following clause shall be inserted , namely:-
"(da ) transferring for consideration any instrument re- lating to loans and advances granted by it to industrial con- cerns;" ;
( iv) clause ( h) shall be omitted;
(v) in clause ( i) ,-
(a) in the proviso, for the words " which may at the option of the Corporation be convertible " , the words "the amounts outstanding thereon may be convertible at the option of the Corporation" shall be substituted;
(b) after the proviso , the following Explanation shall be inserted , namely:---
"Explanation. In this clause , the expression " the amounts outstanding thereon" , used in relation to any loan or advance , shall mean the principal , interest and other charges payable on such loan or advance as at the time when the amounts are sought to be converted into stocks or shares;' ;
(vi) in clause ( ii) , the word " and" occurring at the end shall be omitted;
(vii) after clause ( ii) as so amended , the following clause shall be inserted, namely:-
"( iii ) doing any kind of business which the Central Government may, on the recommendation of the Develop- ment Bank, authorise; and" ;
(b) in sub-section ( 2) ,-
(1) for the words , brackets , letters and figure "No accom- modation shall be given under clauses (a) , (b ) , ( c) and (i) of sub- section ( 1 ) , unless it is secured by a sufficient" , the words, brackets, letters and figure " In granting accommodation under clause (a) , clause (b ) , clause (c) or clause (i) of sub -section (1 ) , the Corporation may have it secured by" shall be substituted;
(ii ) for the words " or unless it is guaranteed" , the words " or may haveit guaranteed " shall be substituted.
Amena- ment of section 24.
12. In section 24 of the principal Act, for the words " with a single Industrial concern for an amount exceeding two crores of rupees in the aggregate" , the words " with any single industrial concern for an amount which, together with the amount outstanding in respect of any arrange- ment already entered into by the Corporation with that concern , exceeds two crores of rupees in the aggregate " shall be substituted.
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13. In section 25 of the principal Act , for sub - section (2 ) , the follow- ing sub - sections shall be substituted , namely: -
Amend- ment of section 25 .
1 of 1956 .
" (2) Where any arrangement entered into by the Corporation with an industrial concern provides for the appointment by the Cor- poration of one or more Directors of such industrial concern , such provision and any appointment of Directors made in pursuance there- of shall be valid and effective notwithstanding anything to the con- trary contained in the Companies Act , 1956 , or in any other law for the time being in force or in the memorandum , articles of association or any other instrument relating to the industrial concern, and any provision regarding share qualification , age limit , number of direc- torships , removal from office of Directors and such like conditions contained in any such law or instrument aforesaid , shall not apply to any Director appointed by the Corporation in pursuance of the arrangement as aforesaid .
(3) Any Director appointed in pursuance of sub - section ( 2) shall-
(a) hold office during the pleasure of the Corporation and may be removed or substituted by any person by order in writ- ing by the Corporation ;
(b) not incur any obligation or liability by reason only of his being a Director or for anything done or omitted to be done in good faith in the discharge of his duties as a Director or any- thing in relation thereto ;
(c) not be liable to retirement by rotation and shall not be taken into account for computing the number of Directors liable to such retirement ." .
ment of section 26 .
14. Section 26 of the principal Act shall be re -numbered as sub- Amend- section (1 ) of that section and after sub- section ( 1 ) as so re- numbered , the following sub -sections shall be inserted , namely :-
'(2) The Corporation shall not enter into any kind of business with any industrial concern of which any of the Directors of the Cor- poration is a Director , manager , agent , employee or guarantor or in which one or more Directors of the Corporation together hold sub- stantial interest :
Provided that this sub - section shall not apply to any industrial concern if any Director of the Corporation-
1 of 1956 .
(i) is nominated as a Director on the Board of such concern by Government, or a Government company as defined in sec- tion 617 of the Companies Act , 1956 , or by a Corporation estab- lished by any other law , or
1 of 1956.
(ii) is elected on the Board of such concern by virtue of shares held in the concern by Government , or a Government company as defined in section 617 of the Companies Act , 1956 , or by a Corporation established by any other law ,
by reason only of such nomination or election , as the case may be .
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1 of 1956.
Explanation. " Substantial interest" , in relation to an industrial concern , means the beneficial interest held by one or more of the Directors of the Corporation or by any relative [as defined in clause (41) of section 2 of the Companies Act , 1956] of such Director, whe- ther singly or taken together , in the shares of the industrial concern , the aggregate amount paid - up on which either exceeds five lakhs of rupees or five per cent. of the paid- up share capital of the industrial concern , whichever is less .
(3) The provisions of sub - section ( 2 )-
(i) shall not apply to any transaction relating to the business entered into prior to the commencement of the Industrial Finance Corporation ( Amendment ) Act, 1972, and all such business and any transaction in relation thereto may be implemented or con- tinued as if that Act had not come into force;
( ii ) shall apply only so long as the conditions precedent to such disability as set out in the said sub- section continue. ' .
15. In section 27 of the principal Act , for sub - section ( 3) and sub - sec- tion (4) , the following sub - sections shall be substituted , namely: ---
Amend- ment of section 27.
"(3) All loans and advances granted to industrial concerns by the Corporation out of foreign currency borrowed under sub -section ( 1) shall be expressed in terms of foreign currency as equivalent of Indian currency , calculated in accordance with the rate of exchange prevailing at the time of grant thereof , and the amount due there- under shall be repayable in equivalent Indian currency , calculated in accordance with the rate of exchange prevailing at the time of repayment of such loan or advance .
(4) Any loss or profit in connection with any borrowing of foreign currency under sub - section (1 ) for the purpose of granting loans and advances under this Act or with its repayment to the concerned foreign lending agency, on account of any fluctuations in the rate of exchange accruing-
(a) during the period within which the loan or advance is repayable by the industrial concern or the period of actual repayment thereof by the concern , whichever is longer , shall be reimbursed by , or paidto , as the case may be, the recipients of such loans and advances ;
(b) after the expiry of the period specified in clause (a ),-
(i) shall be borne by the Corporation in respect of normal market fluctuations in foreign exchange;
(ii ) shall be reimbursed by, or paid to , as the case may be, the Central Government in respect of fluctuations other than the normal market fluctuations in foreign exchange.
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SEC. 11
965
Explanation . If any question arises as to whether any fluctuation as aforesaid is a normal market fluctuation or not , the same shall be decided by the Central Government whose decision thereon shall be final ." .
16. In section 28 of the principal Act ,-
Amend- ment of section 28.
(a) in sub -section ( 1 ) ,-
(i ) after the words " of any loan or advance or any instalment thereof" , the words " or in meeting its obligations in relation to any guarantee given by the Corporation " shall be inserted;
(ii) for the words " right to take over the management of the concern " , the words " right to take over the management , or possession, or both, of the concern " shall be substituted;
(b) in sub - section ( 3A ) ,-
(i) for the words "Where the management of an industrial concern is taken over by the Corporation or any property is transferred and realised by it " , the words " Where any action has been taken against an industrial concern " shall be substituted;
(ii ) for the words " as incidental to such management , or transfer and realisation " , the words " as incidental thereto " shall be substituted:
(iii ) after the words " which is received by it " , the words "from such management , or transfer and realisation " shall be omitted;
(c) in sub -section (4 ) , after the words " over the management" , the words " or possession " shall be inserted.
Amend- 17. In section 30 of the principal Act,--
ment of section 30.
(a) in sub - section ( 1 ) ,
(i ) after the words " any default in repayment of any loan or advance or any instalment thereof" , the words " or in meeting its obligations in relation to the guarantee given by the Corpога- tion" shall be inserted;
(ii) for the words "the District Judge within the local limits of whose jurisdiction the industrial concern carries on the whole or a substantial part of its business " , the words " the Court " shall be substituted;
(b) in sub -sections ( 3 ) to ( 9 ) , for the words " the District Judge" , wherever they occur , the words " the Court " shall be substituted ;
(c ) in sub - section ( 9 ) as so amended, in the second proviso , for the words "unless the High Court otherwise directs " , the words "unless the Court empowered to hear appeals from the decisions of the said Court otherwise directs " shall be substituted;
(d) in sub -section ( 11 ) , for the words " appeal to the High Court, and upon such appeal , the High Court may " , the words " appeal to THE GAZETTE OF INDIA EXTRAORDINARY
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[PART II-
the Court empowered to hear appeals from the decisions of the Court which passed the order and the appellate Court may" shall be substi- tuted;
(e) sub -section (13 ) shall be omitted ;
( f) after sub - section ( 13 ) as so omitted , the following sup- sections shall be inserted , namely: --
" (14) For the removal of doubts , it is hereby declared that any Court competent to grant an ad interim injunction under this section shall also have the power to appoint a receiver and to exercise all other powers incidental thereto.
(15) All proceedings ( whether by way of suits or appeals or other proceedings ) under this Act pending before a District Judge or an Additional District Judge or a High Court at the commencement of the Industrial Finance Corporation ( Amend- ment ) Act , 1972, shall , on such commencement , be proceeded with and disposed of as if this section had not been amended by the said Act.
(16) Every suit or other proceedings which are disposed of in accordance with the provisions contained in sub- section ( 15 ) or in respect of which time for appeal has not expired at the commencement of the Industrial Finance Corporation ( Amend- ment) Act , 1972 , may , on such commencement , be appealed against as if this section had not been amended by the said Act.".
18. In section 32 of the principal Act , in sub - section (2 ) , the second proviso shall be omitted.
Amend- ment of section 32 .
19. After section 32A of the principal Act , the following section shall be inserted, namely:-
Insertion of new section 32B,
"32B. (1 ) The Corporation shall establish a special fund, to be called the benevolent reserve fund .
Bene- volent reserve fund.
(2) To the benevolent reserve fund shall be credited-
(a) any part of the annual profit which may, from time to time, be allocated to the fund;
(b) all amounts received for the purposes of the fund by way of loans, gifts , grants , donations or benefactions from Gov- ernment or any other source ;
(c) income or profits from investments made from the fund;
(d) income accruing or arising to the fund by way of in- terest or otherwise .
(3) The benevolent reserve fund shall be used by the Cor- poration-
(a) for meeting the cost of feasibility studies , project re- ports , market and techno - economic surveys and such other purposes which , in the opinion of the Corporation , may promote the development of industries;
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SEC. 1 ]
967
(b) in the field of development banking and in financial and industrial management-
(i) for undertaking and promoting research;
(ii) for training in India or abroad of personnel of financial institutions ; and
( iii) for creating chairs in universities , academic institu- tions and research foundations ;
(c) for assisting projects promoted by technologists and new entrepreneurs--
( i) by subsidising the normal lending rate of interest of the Corporation in respect of loans or advances sanctioned to them;
(it) by providing technical and managerial assistance to projects promoted by them especially in less industrially developed regions ;
(d) for rendering any assistance that may be ancillary or ncidental to the aforementioned purposes ." .
20. In section 39 of the principal Act , after the words " Every Director , " , the words " member of any Advisory or other Committee, " shall be in- serted.
Amend- ment of section 39 .
21. In section 43 of the principal Act ,-
Amend- section 43 . ment of (a) in sub -section ( 1 ) , for the words " after consultation with the Development Bank and with the previous sanction of the Central Government" , the words " with the previous approval of the Deve- lopment Bank" shall be substituted;
(b) in sub - section ( 2 ) , in clause ( e ) , for the words " Board and of the Central Committee , " the word "Board, " shall be substituted;
(c) sub - section ( 3) shall be omitted .
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THE INDUSTRIAL DEVELOPMENT BANK OF INDIA ( AMENDMENT ) ACT , 1972
No. 75 or 1972
[24th December , 1972 ]
An Act to amend the Industrial Development Bank of India Act, 1964
B it enacted by Parliament in the Twenty-third Year of the Republic of India as follows:-
Short
title.
1. This Act may be called the Industrial Development Bank of India (Amendment) Act , 1972 .
18 of
2.In section 2 of the Industrial Development Bank of India Act, 1964 1964 (hereinafter referred to as the principal Act ) ,-
Amendment of sec- tion 2 .
(a) in clause (c) , the words " or in the maintenance , repair, test- ing or servicing of machinery of any description or vehicles or ves- sels or motorboats or trailers or tractors , or in fishing , or in providing shore facilities for fishing or maintenance thereof" shall be added at the end;
(b) in clause ( i) , for the word " Madras " , the words " Tamil Nadu" shall be substituted .
3. In section 9 of the principal Act , in sub - section ( 1 ) ,—
Amendment of sec-
tion 9 .
(a) in clause (a ) ,
(i) in sub -clause ( i ) ,-
(1) after the words " any loans or advances granted to industrial concerns" , the brackets and words " ( including con- cerns engaged or to be engaged in the development of any contiguous area of land as an industrial estate ) " shall be inserted;
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969
(2) for the words " on the expiry of not less than three years and not more than twenty - five years ", the words " within a period not exceeding twenty- five years " shall be substituted;
(ii) in sub - clause ( ii ) ,-
(1) after the words " any loans or advances granted to industrial concerns " , the brackets and words " ( including concerns engaged or to be engaged in the development of any contiguous area of land as an industrial estate) " shall be inserted;
(2) for the words " on the expiry of not less than three years and not more than ten years" , the words " within period not exceeding fifteen years " shall be substituted; a
(iii) in sub -clause ( ii ) ,-
(1) after the words " any loans or advances granted to industrial concerns " , the brackets and words " ( including con- cerns exporting products of industrial concerns ) " shall be inserted;
(2) for the words " and are repayable on the expiry of not less than six months and not more than ten years " , the words , brackets and letters " or the execution of any turn- key project outside India by any industrial concern as afore- said or by any person in India, and , in any case , are repay- able-
(i) within a period not exceeding twelve years in the case of persons outside India, and
(ii) within a period not exceeding fifteen years in other cases, "
shall be substituted ;
(b) in clause ( b ) , for the words " promissory notes of industrial concerns" , the words "promissory notes made , drawn , accepted or endorsed by industrial concerns or by any person selling capital goods manufactured by one industrial concern to another industrial concern" shall be substituted;
(c) in clause (c ) , for the words " any other financial institution " , the words " any other financial institution, whether within or outside India," shall be substituted;
(d) in clause (d ) ,-
(i ) in the proviso , for the words " which may at the option of the Development Bank be convertible " , the words " the amounts outstanding thereon may be convertible at the option of the Development Bank " shall be substituted;
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(ii) after the proviso , the following Explanation shall be inserted , namely : -
'Explanation . In this clause , the expression " the amounts outstanding thercon " used in relation to any loan or advance , shall mean the principal, interest and other charges payable on such loan or advance as at the time when the amounts are sought to be converted into stocks or shares . ' ;
(e) after clause ( d) and the Explanation thereto , the following clauses shall be inserted, namely : -
" (da) granting loans and advances-
(i) to any person exporting products of industrial con- cerns; or
(ii ) to any person outside India, in connection with the export of capital goods from India; or
(iii ) for the execution of turn - key projects outside India by any industrial concern or by any person in India;
(db) transferring for consideration any instrument relating to loans and advances granted by it to industrial concerns ; " ;
(f) after clause ( k) , the following clause shall be inserted, namely:--
" (ka ) acting as agent of-
(i) the Central Government or of the Reserve Bank , or
( ii) such other Government or person as the Central Government, on the recommendation of the Reserve Bank , may authorise; " .
4. After section 9 of the principal Act, the following section shall be inserted, namely:-
Insertion of new section 94.
Prohibit- ed busi- ness.
'9A. (1 ) The Development Bank shall not enter into any kind of business with any industrial concern , of which any of the directors of the Development Bank is a proprietor , partner , director , manager , agent , employee or guarantor , or in which one or more directors of the Development Bank together hold substantial interest :
Provided that this sub - section shall not apply to any industrial concern if any director of the Development Bank-
(i) is nominated as a director of the Board of such concern by Government , or a Government company as defined in section 617 of the Companies Act , 1956 , or by a Corporation established 1 of 1956 . by any other law; or
( ii ) is elected on the Board of such concern by virtue of shares held in the concern by Government , or a Government company as defined in section 617 of the Companies Act, 1956 , or 1 of 1956 . by a Corporation established by any other law ,
by reason only of such nomination or election , as the case may be.
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971
SEC. 1]
1 of 1956 .
Explanation . " Substantial interest " , in relation to an industrial concern , means the beneficial interest held by one or more of the directors of the Development Bank or by any relative [as defined in clause (41 ) of section 2 of the Companies Act, 1956 ] of such direc- tor , whether singly or taken together , in the shares of the industrial concern, the aggregate amount paid up on which either exceeds five lakhs of rupees or five per cent of the paid - up share capital of the industrial concern , whichever is the lesser .
(2) The provisions of sub - section ( 1) -
(i) shall not apply to any industrial concern as specified therein if the Development Bank is satisfied that it is necessary in the public interest to enter into business with that concern , and entering into any kind of business with such industrial con- cern shall be in accordance with and subject to such conditions and limitations as may be prescribed;
(ii ) shall not apply to any transaction relating to the busi- ness entered into prior to the commencement of the Industrial Development Bank of India (Amendment) Act , 1972 , and all such business and any transaction in relation thereto may be im- plemented or continued asif that Act had not come into force ;
( iii ) shall apply only so long as the conditions precedent to such disability as set out in the said sub - section continue.
5. After section 11 of the principal Act , the following section shall be inserted , namely :-
Insertion ofnew section 1A.
Powerto transfer rights.
" 11A . The rights and interests of the Development Bank ( includ- ing any other rights incidental thereto ) in relation to any loan or advance granted , or any amount recoverable , by it may be trans- ferred by the Development Bank, either in whole or in part , by the execution or issue of any instrument or by the transfer of any instrument by endorsement , or in any other manner in which the rights and interests in relation to such loan or advance may be law- fully transferred , and the Development Bank may , notwithstanding such transfer , act as the trustee for the transferee." .
6. In section 12 of the principal Act , for sub -section (3 ) and sub- section (4) , the following sub -sections shall be substituted , namely: --
Amend- ment of section12,
" ( 3) All loans and advances granted by the Development Bank out of foreign currency borrowed under sub -section (1 ) shall be expressed in terms of foreign currency as equivalent of Indian cur- rency, calculated in accordance with the rate of exchange prevailing at the time of grant thereof, and the amount due thereunder shall be repayable in equivalent Indian currency , calculated in accordance with the rate of exchange prevailing at the time of repayment of such loan or advance .
(4) Any loss or profit in connection with any borrowing of fore- ign currency under sub -section ( 1) for the purpose of granting loans and advances under this Act or with its repayment to the concerned foreign lending agency , on account of any fluctuations in the rate of exchange accruing- THE GAZETTE OF INDIA EXTRAORDINARY
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(a) during the period within which the loan or advance is repayable by the industrial concern or the period of actual re- payment thereof by the concern , whichever is longer, shall be reimbursed by , or paid to , as the case may be , the recipients of such loans and advances;
(b ) after the expiry of the period specified in clause ( a) ,-
(i) shall be borne by the Development Bank in respect of normal market fluctuations in foreign exchange;
(ii) shall be reimbursed by, or paid to, as the case may be, the Central Government in respect of fluctuations other than the normal market fluctuations in foreign exchange .
Explanation . If any question arises as to whether any fluctua- tion as aforesaid is a normal market fluctuation or not , the same shall be decided by the Central Government whose decision thereon shall be final ." .
7. After section 30 of the principal Act , the following section shall be Inserted , namely :-
Inser- tion of new sec- tion 30A .
1 of 1956.
Arrange- ment with Develop- ment Bank on appoint- ment of direc. tors to prevail.
" 30A. ( 1 ) Where any arrangement entered into by the Develop- ment Bank with an industrial concern provides for the appointment by the Development Bank of one or more directors of such industrial concern , such provision and any appointment of directors made in pursuance thereof shall be valid and effective notwithstanding any- thing to the contrary contained in the Companies Act , 1956, or in any other law for the time being in force or in the memorandum , articles of association or any other instrument relating to the industrial con- cern, and any provision regarding share qualification , age- limit, number of directorships , removal from office of directors and such like conditions contained in any such law or instrument aforesaid , shall not apply to any director appointed by the Development Bank in pursuance of the arrangement as aforesaid.
(2) Any director appointed as aforesaid shall-
(a) hold office during the pleasure of the Development Bank and may be removed or substituted by any person by order in writing of the Development Bank ;
(b) not incur any obligation or liability by reason only of his being a director or for anything done or omitted to be done in good faith in the discharge of his duties as a director or any- thing in relation thereto ;
(c) not be liable to retirement by rotation and shall not be taken into account for computing the number of directors liable to such retirement . " .
THE GAZETTE OF INDIA EXTRAORDINARY
SEC . 1 ]
973
8. In section 37 of the principal Act , in sub -section ( 2 ) , after clause Amend- (d ) , the following clause shall be inserted, namely:-
ment of section 37.
"(da) entering . into business with industrial concerns specified in sub -section ( 1 ) of section 9A and the conditions and limitations in regard thereto ; " .
K. K. SUNDARAM , Secu . to the Govt . of India .
PRINTED BY THE GENERAL MANAGER , GOVERNMENT OF INDIA PRESS , MINTO ROAD , NEW DELHI AND PUBLISHED BY THE MANAGER OF PUBLICATIONS , DELHI, 1972