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REGISTERED NO. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 2

PUBLISHED BY AUTHORITY

No. II] NEW DELHI, MONDAY, JANUARY 19, 1976/PAUSA 29, 1897

Separate paging; is given to this Part in order that it may be filed as a separate compilation.

LOK SABHA

The following Bills were introduced in Lok Sabha on the 19th January, 1976: —

BILL NO. 14 OF 1976

A Bill to provide for the acquisition and transfer of the right, title and

interest of the Assam Sillimanite Limited in respect of its Refractory

Plant and for matters connected therewith or incidental thereto.

WHEREAS it is urgently necessary to augment the supplies of refracto- ries to meet the essential requirements of the iron and steel Industry;

65 of 1951.

AND WHEREAS for the said purpose, a licence to set up a refractory plant was granted to the Assam Sillimanite Limited under the Industries (Development and Regulation) Act, 1951;

AND WHEREAS in pursuance of the licence granted to it, the Assam Sillimanite Limited had imported machinery from abroad and com- menced the construction of the first stage of its Refractory Plant but the project of the said company did not proceed beyond the first stage on account of financial and other difficulties, and the pilot Refractory Plant, which was constructed by the said company, has been closed;

AND WHEREAS special type of refractories, including high alumina refractories, needed by the iron and steel industry may be manufactured at the Refractory Plant of the Assam Sillimanite Limited and such manu- facture will enable the country to progressively reduce the import of such special type of refractories:

65 of 1951

AND WHEREAS for the purpose of speedily bringing the Refractory Plant of the Assam Sillimanite Limited into operation, the management of the said Refractory Plant was taken over, for a limited period by the Central Government under section 18AA of the Industries (Develop- ment and Regulation) Act, 1951;

(375)

AND WHEREAS for the purpose of augmenting the supplies of refractories

to meet the essential requirements of the iron and steel industry, it is necessary to acquire the right, title and interest of the Assam Sil- limanite Limited in respect of its Refractory Plant;

BE it enacted by Parliament in the Twenty-sixth Year of the

Republic of India as follows: —

CHAPTER I

PBEUMTNARY

1. This Act may be called the Assam Sillimanite Limited (Acquisition Short title.

and Transfer of Refractorv Planti Act 197B.

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

Defini- tions.

(a) "appointed day" means the day on which this Act comes

Into force;

(b) "Commissioner" means the Commissioner of Payments ap-

pointed under section 14;

1 of 1950.

(c) "Company" means the Assam Silllmanite Limited, being " company as denned in the Companies Act, 1956 and having its regis- tered office at Gauhati in the State of Assam;

(d) "Refractory Plant" means the refractory manufacturing plant, owned by the Company, situated near Ramgarh in the State of Bihar;

(e) "specified date" means such date as the Central Govern- ment may, by notification in the Official Gazette, specify in relation to any provision of this Act and different dates may be specified in relation to different provisions of this Act;

.1 of 1956.

(f) words and expressions used herein and not denned but de- fined in the Companies Act, 1956 have the meanings respectively assigned to them In that Act.

CHAPTER II

ACQUISITION OF THE REFRACTORY PLANT

3. On the appointed day, the Refractory Plant shall, by virtue of this Act, stand transferred to, and the risrht, title and interest of the Company in relation to its Refractory Plant shall vest absolutely in, the Centrcl Government.

Refrac- tory- Plant t0 vest in the Central Gpvern-

ment.

4. (1) Notwithstanding anything contained in section 3, the Central Government may, if It Is satisfied that a Government company is willing to comply, or has complied, with such terms and conditions as that Gov- ernment may impose, direct, by an order In writing, that the right, title and interest of the Company in relation to the Refractory Plant shall, instead of continuing to vest In the Central Government, vest in the Government company either on the date of publication of the direction or on such earlier or later date (not being a date earlier than, the ap- pointed day) as may be specified in that direction.

Power of Central Govern- ment to direct vesting of the Befrac- tory Plant in " Govern- ment company.

(2) Where an order for vesting of the Refractory Plant in a Govern- ment company Is made under sub-section (1), all the rights and obliga- tions of the Central Government in relation to the Refractory Plant shall, 6n and from the date of such vesting, be deemed to have become the rights and obligations, respectively, of the Government company.

(3) The Government company shall, in the management and adminis- tration of the Refractory Plant, act in accordance with such directions, if any, as may be Issued by the Central Government in this behalf.

(4) The Government company may also apply to the Central Govern- ment at any time for instructions as to the manner in which the man- agement of the Refractory Plant shall be conducted or in relation to any matter arising in the course of such management.

General effect of vesting.

5. (i) The Refractory Plant shall be deemed to include all assets, rights, powers, authorities and privileges and all property, movable and immovable (not being any mining lease held by the Company before the appointed day), cash balances, cash on hand, reserve funds, invest- ments, book debts and all other rights and interests in, or arising out of, such property as were immediately before the appointed day, in the ownership, possession, power or control of the Company, whether within or outside India, and all books of account, registers and all other docu- ments of whatever nature relating thereto and shall also be deemed to include the liabilities and obligations specified in sub-section (2) of sec- tion 8.

(2) All property as aforesaid which have vested in the Central Gov- ernment under section 3 shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, lien and from all other incumbrances affecting it, and any attachment, Injunction or decree or order of any court restricting the use of such property in any manner or appointing any receiver in respect of the whole or any part of such property shall be deemed to have been withdrawn.

(3) Every mortgagee of any property which has vested under this Act in the Central Government and every person holding any charge, lien or other interest in or, in relation to, any such property shall give, within such time and in such manner as may be prescribed, an intima- tion to the Commissioner of such mortgage, charge, lien or other interest.

(4) For the removal of doubts, it Is hereby declared that the mort- gagee of any property referred to In sub-section (2) or any other person holding any charge, lien or other Interest in, or In relation to, any such property shall be entitled to claim, in accordance with his rights and interests, payment of the mortgage money or other dues, in whole or in part, out of the amount specified in relation to such property in section 9, but no such mortgage, charge, lien or other interest shall be enforceable against any property which has vested in the Central Government or the Government company.

(5) If, on the appointed day, any suit, appeal or other proceeding of whatever nature in relation to any matter specified in sub-section (2) of section 8, instituted or preferred against the Company is pending, the same shall not, in so far as it relates to the Refractory Plant, abate, be discontinued, or be, in any way, prejudicially affected by reason of transfer of the Refractory Plant or of anything contained in this Act, but

the suit, appeal or other proceeding may be continued, prosecuted and enforced by or against the Central Government or the Government com- pany, as the case may be.

0. (1) Every person, in whose possession or custody or under whose control the Refractory Plant or any part thereof or any machinery, ins- trument or other movable asset forming part of the Refractory Plant, may be immediately before the appointed day, shall forthwith deliver possession of the Refractory Plant or such part, machinery, instrument or other asset, as the case may be, to the Central Government or the Government company or to such person or body of persons as the Cen- tral Government or the Government company may specify in this behalf.

Duty to deliver posses- sion of the Refrac- tory Plant and 'documents relating thereto.

(2) Every person who has, on the appointed day, in his possession or under his control any books, documents or other papers relating to the Refractory Plant which has vested in the Central Government or a Government company under this Act, and which belong to the Company or would have so belonged if the Refractory Plant had not vested in the Central Government or the Government company, shall be liable to account for the said books, documents and other papers to the Central Government or the Government company, as the case may be, and shall deliver them up to the Central. Government or the Gov- ernment company or to such person or body of persons as the Central Government or the Government company may specify in this behalf.

(3) The Central Government may take or cause to be taken all neces- sary steps for securing possession of the Refractory Plant which has vested In it under section 3.

Duty to furnish parti- culars.

7. The Company shall, within such period as the Central Government may allow in this behalf, furnish to that Government a complete inventory of all the properties and assets of the Company as on the appointed day, pertaining to the Refractory Plant which has vested in the Central Gov- ernment under section 3, and for this purpose the Central Government or the Government company shall afford the Company all reasonable facilities.

8. (1) Every liability, other than the liability specified in sub-section (2), of the Company in relation to the Refractory Plant, in respect of any period prior to the appointed day, shall be the liability of the Company and shall be enforceable against it and not against the Central Government or the Government company.

Company to be liable for certain prior liabili-

ties. (2) Any liability in respect of—

1 Of 1956 (a) the amounts advanced to the Company (after the manage- ment of the Refractory Plant had been taken over by the Central Government) by the Hindustan Steel Limited (a company formed and registered under the Companies Act, 1956), together with interest due thereon;

(b) wages, salaries and other dues of employees of the Refrac-

tory Plant, in respect of any period after the management of such

plant had been taken over by the Central Government,

shall, on and from the appointed day, be the liability of the Central

Government and shall be discharged by that Government or, for and on

behalf of that Government, by the Government company, as and when

repayment of such amount becomes due or as and when such wages,

salaries and other dues become due and payable.

(3) For the removal of doubts, it is hereby declared that,—

(a) save as otherwise expressly provided in this section or in any other section of this Act, no liability other than the liability specified in sub-section (2) in relation to the Refractory Plant, in respect of any period prior to the appointed day shall be enforceable against the Central Government or the Government company, as the case may be;

(b) no award, decree or order of any court, tribunal or other authority in relation to the Refractory Plant, passed after the ap- pointed day in respect of any matter, claim or dispute in relation to any matter, not being a matter referred to in sub-section (2), which arose before that date, shall be enforceable against the Central Government or the Government company, as the case may be;

(c) no liability incurred by the Company before the appointed day, for the contravention, in relation to the Refractory Plant, of any provision oi law for the time being in force, shall be enforceable against the Central Government or the Government company, as the case may be.

CHAPTER III

PAYMENT OF AMOUNT

&. (I) The Company shall be given by the Central Government in

cash and In the manner specified in Chapter VI, an amount of one crore

seven lakhs and seventeen thousand rupees for the transfer to, and

veslng in, It, under section 3 of the Refractory Plant.

Amount to be paid for transfer and vesting of Refrac- tory Plant.

(2) The amount payable under sub-section (J) shall carry simple

interest at the rate of four per cent- per annum for the period commenc-

ing on the appointed day and ending on the date on which payment

of such amount is made by the Central Government to the Commis-

sioner.

(3) For the removal of doubts, it is hereby declared that the liabili-

ties of the Company in relation to the Refractory Plant, other than those

referred to in sub-section (2) of section 8, shall be met from the amount

referred to in sub-section (1), in accordance with the rights and lnte'

rests of the creditors of the Company.

Pay- ment of other amount.

10. {1) In addition to the amounts specified In section 9, there shall

also be given to the Company, in cash, by the Central Government an

amount computed at the rate of rupees two thousand and five hundred

per mensem for the deprivation of the Company of the management of Its

Refractory Plant during the period commencing on the 2nd day of Nov-

ember, 1&72, and ending on the appointed day.

(2) In addition to the amount referred to In sub-section (1), there

shall be given by the Central Government, in cash, to the Company,

simple interest at the rate of four per cent per annum on the amount

computed at the rate specified in sub-section (1), for the period com-

mencing on the appointed day and ending on the date on which payment

of such amount is made by the Central Government to the Commis-

sioner.

CHAPTER IV

MANAGEMENT, ETC., OF REFRACTORY PLANT

11. On the commencement of this Act, the general superintendence,- direction, control and management of- the affairs and business of the Re- fractory Plant shall,—

Manage- ment, etc, of Refrac- tory Plant.

(a) where a direction has been made by the Central Govern- ment under section 4, vest in the Government company specified ill such direction, or

(b) where no such direction has been made, vest in such person or body of persons as may be appointed by the Central Government in this behalf,

and thereupon the Government company so specified or the person or body of persons so appointed, as the case may be, shall be entitled to exercise all such powers and do all such things as the Company is autho- rised to exercise and do in relation to the Refractory Plant.

CHAPTER V

PROVISIONS RELATING TO EMPLOYEES OF REFRACTORY PLANT

Employ, ment of employee* to continue.

12. (I) Every person, who has been, immediately before the appoint- ed day, employed by the Company, shall, if employed in connection with the Refractory Plant, become, as from the appointed day, an employee of the Central Government or the Government company in which the Refractory Plant has vested, as the case may be, and shall hold his office or service therein by the same tenure, on the same remuneration and upon the same terms and conditions and same rights and privileges as to pension and gratuity and other like matters as he would have held the same under the Company if the Refractory Plant had not vested in the Central Government or the Government company, and shall con- tinue to do so unless and until his employment in the Central Govern- ment or the Government company is duly terminated or until his re- muneration, terms and conditions of employment are duly altered by the Central Government or the Government company, as the case may be.

14 of 1847.

(2) Notwithstanding anything contained in the Industrial Disputes Act, 1947, or in any other law for the time being in force, the transfer of the services of any employee of the Company to the Central Govern- ment or the Government company shall not entitle such employee to any compensation under this Act or under any other law for the time being in force and no such claim shall be entertained by any court, tri- bunal or other authority.

(3) Where, under the terms of any contract of service or otherwise, any person, whose services become terminated or whose services become transferred to the Central Government or a Government company by rea- son of the provisions of this Act, is entitled to arrears or salary or wages or any payment for any leave not availed of or other payment, not being payment by way of gratuity or pension, such person may, except to the extent such liability hag been taken over by the Central Government under sub-section (2) of section 8, enforce his claim against the Com- pany but not against the Central Government or the Government company.

Provident and other funds.

13. (1) Where the Company has established a provident fund, super- annuation, welfare or other fund for the benefit of the persons employed in the Refractory Plant, the monies relatable to the employees whose services have become transferred by or under this Act to the Central Government or a Government company shall, out of the monies stand- ing, on the appointed day, to the credit of such provident fund, superan- nuation, welfare or other fund, stand transferred to, and vested in, the Central Government or the Government company, as the case may be.

(2) The monies which stand transferred, under sub-section (1), to the Central Government or a Government company, shall be dealt with by that Government or Government company, as the case may be, in such manner as may be prescribed.

CHAPTER VI

COMMISSIONER OP PAYMENTS

14. (1) For the purpose of disbursing the amount payable to the Conv pany, the Central Government shall, by notification in the Official Gazette, appoint such person as it may think fit to be the Commissioner of Pay- ments.

Appoint- ment of Commis- sioner of Pay- ments.

(2) The Central Government may appoint such other persons as it may think fit to assist the Commissioner and thereupon the Commissioner may authorise one! or more of such persons) also to exercise all or any of the powers exercisable by him under this Act, and different persons may be authorised to exercise different powers.

(3) Any person authorised by the Commissioner to exercise any powers may exercise those powers in the same manner and with the same effect as if they have been conferred on that person directly by this Act and not by way of authorisation.

(4) The salaries and allowances of the Commissioner and other per

sons appointed under this section shall be defrayed out of the Consolidat-

ed Fund of India.

15. (1) The Central Government shall, within thirty days from the specified date, pay, in cash, to the Commissioner, for payment to the Company, an amount equal to the amount specified in section 9 and shall also pay to the Commissioner such amounts as may be payable to the Company under sub-sections (I) and (2) of section 10.

P"y- ment by the Central Govern- ment to the Commis- sioner.

(2) A deposit account shall be opened by the Central Government in favour of the Commissioner in the Public Account of India, and every amount paid under this Act to the Commissioner shall be deposited by him to the credit of the said deposit account in the Public Account of India, and thereafter the said deposit account shall be operated by the Commissioner.

(3) Interest accruing on the amount standing to the credit of the deposit account referred to in sub-section (2) shall enure to the benefit of the Company.

16. (1) Out of the amount paid to him under sub-section (1) of section 15, the Commissioner shall deduct in the first instance, all sums equal to the amount of arrears due to the persons who wsrc in employment of the Company, in connection with the Refractory Plant, on the 1st day of July, 1973,—

(a) in relation to a provident fund, pension fund or any other fund established for the welfare of such persons,

(b) as wages,

Priority of claims in relation to arrears of provident fund, etc.

(2) All sums deducted under sub-section (1) shall, in accordance with such ruley as may be made under this Act, be credited by the Commis- sioner to the relevant fund or paid by him to the persons to whom the said sums are due and on such credit or payment, the liability of the Company in respect of the amount of arrears due as aforesaid shall, to the extent of such credit or payment, stand discharged.

(3) Every deduction made under sub-section (1) shall have priority over all other debts, whether secured or unsecured.

17. (1) Save as otherwise provided In section 16, every secured debt due from the Company shall have priority over all other debts and shall be paid in accordance with the rights and interests of the secured credi- tors:

Priority in relation to other claims.

Provided that where the secured debts arc due to different creditors by reason of the hypothecation of different assets to them, such debts shall be repaid in full in accordance with the rights and interests of such creditors, unless the balance of the amount left after meeting the liabili- ties referred to In section 16 is insufficient to meet them, in which case thev shall abate in equal proportions and be paid accordingly.

(2) Notwithstanding anything contained in any other law for the time being in force, there shall be paid in priority to all other unsecured debts —

(a) all revenues, taxes, cesses, rates and any other dues payable Immediately before the appointed day, to the Central Government, State Governments, local authorities and State Electricity Boards in relation to the Refractory Plant, as the ca?e may be;

8 of 1923.

(b) all amounts due in respect of any compensation or liability for compensation under the Workmen's Compensation Act, 1923, in respect of the death or disablement of any employee of the Company in relation to the Refractory Plant, unless the Company has, under such a contract with insurers as Is mentioned in section 14 of the said Act, rights capable of being transferred to, and vested in, the workmen;

(c) all sums deducted by the Company from the salary or wages of any employee of the Refractory Plant for credit to any provident fund or any other fund established for t he welfare of the employees but not deposited to the credit of such funds.

<*\ The debts specified in sub-section (2) shall rank equally among themselves and be paid in full, unless the balance of the amount left after meeting the liabilities referred to in section 16, and sub-section (1) of this ^ t i o n, Is insufficient to meet them, in which case they shall abate in equpl proportions and be paid accordingly.

16. Every person having a claim against the Company in relation to the Refractory Plant shall prefer such claim before the Commissioner within thirty days from the specified date:

Claims toba made totha Commis- sioner.

Provided that if the Commissioner is satisfied that the claimant was prevented by sufficient cause from preferring the claim within the said period of thirty days, he may entertain the claim within a further period of thirty days, but not thereafter.

Proof of clatmj.

19. (1) The Commissioner shall fix a certain date on or before which every claimant shall file the proof of his claim or be excluded from the benefit of the deductions or disbursements made by the Commissioner.

(2) Not less than fourteen days' notice of the date so fixed shall be given by advertisement in one issue of the daily newspaper in the English language and in one issue of such daily newspaper in the regional langu- age as the Commissioner may consider suitable, and every such notice shall call upon the claimants to file the proof of their claims with the Commissioner within the time specified in the advertisement.

(3) Every claimant who fails to file the proof of his claim within the time specified by the Commissioner shall be excluded from the deduc- tions ur disbursements made by the Commissioner.

(4) The Commissioner shall, after such investigation as may, in his opinion, be necessary and after giving the Company an opportunity of refuting the claim and after giving the claimant a reasonable opportunity of being heard, in writing, admit or reject the claim in whole or in part.

(5) The Commissioner shall have the power to regulate his own pro-

6 of 1908.

cedure in all matters arising out of the discharge of his functions includ- ing the place or places at which he will hold his sittings and shall, for the purpose of making an investigation under this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1903, while trying a suit, in respect of the following matters, namely:—

(a) the summoning and enforcing the attendance of any witness and examining him on oath;

(b) the discovery and production of any document or other mate- rial object producible as evidence;

(c) the reception of evidence on affidavits;

(d) the issuing of any commission for the examination of wit- nesses.

45 of 1860.

2 of 1974.

(6) Any investigation before the Commissioner shall be deemed to be a judicial proceeding within the meaning of sections 103 and 228 of the Indian Penal Code and the Commissioner shall be deemed to be a civil court for the purpose of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.

(7) A claimant who is dissatisfied with the decision of the Commis- sioner may prefer an appeal against the decision to the principal civil court of original jurisdiction within the local limits of whose jurisdiction the Refractory Plant is situated;

Provided that where a person who is a Judge of a High Court is ap- pointed to be the Commissioner, such appeal shall lie to the High Court for the State in which the Refractory Plant is situated, and such appeal shall be heard and disposed of by not less than two Judges of that High Court.

Disburse- ment of money by the Commis- sioner to claim- ants.

20. Where, after meeting the claims admitted by him of secured cre- ditors, and unsecured creditors having priority under sub-section (2) of section 17, the total amount of the claims of other unsecured creditors ad- mitted by the Commissioner does not exceed the balance of the amount left after meeting the liabilities referred to in section 16, and sub-sections (1) and (2) of section 17, every admitted claim of such other unsecured creditors, shall rank equally among themselves and be paid in full, and the balance, if any, shall be paid to the Company; but where such amount is insufficient to meet in full the total amount of such admitted claims, all such claims shall abate in equal proportions and be paid accordingly.

21. Any money paid to the Commissioner which remains undisbursed or unclaimed for a period of three years from the first day on which the disbursement was made, shall be transferred by the Commissioner to the general revenue account of the Central Government; but a claim to any money so transferred may be preferred to the Central Government by the person entitled to such payment and shall be dealt with as if such trans- fer had not been made, the order, if any, for payment of the claim being treated as an order for the refund of the revenue.

Undia- bursed or unclaimed amount to be deposited to the feneral revenue account.

CHAPTER VII

MISCELLANEOUS

Pena]tle". 22. Any person, who,—

(a) having in his possession, custody or control any property forming part of the Refractory Plant, wrongfully withholds such property from the Central Government or the Government company, as the case may be; or

(b) wrongfully obtains possession of, or retains any property forming part of, the Refractory Plant or wilfully withholds or fails to furnish to the Central Government or the Government company or any person or body of persons specified by that Government or the Govern- ment company, as the case may be, any document relating to such Refractory Plant which may be in his possession, custody or control cr fails to deliver to the Central Government or the Government company or any person or body of persons specified by that Govern- ment or the Government company any assets, books of account, re- gisters or other documents in his custody or control, relating to the Refractory Plant; or

(c) wrongfully removes or destroys any property forming part of the Refractory Plant or prefers any claim under this Act which he knows or has reasonable-cause to believe to be false or grossly inaccurate,

shall be punishable with imprisonment for a term which may extend to two years or with fine which may extend to ten thousand rupees, Or with both.

Offence" by compa- nies.

23. (1) Where an offence under this Act has been committed by a com- pany, every person who at the time the offeree was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due dili- gence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with" the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secre- tary or other officer shall be liable to be proceeded against and punished accordingly.

Explanation.—For the purposes of this section,—

(a) "company" means any body corporate and includes a firm

or other association of individuals;

(b) "director", in relation to a firm, means a partner in the

firm.

Act to have over. riding effect.

24. The provisions of this Act shall have effect notwithstanding any- thing inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act, or in any decree or order of any court, tribunal or other authority.

25. (1) No suit, prosecution or other legal proceediiig shall He against the Central Government or any of its officers or other employees for any- thing which is in good faith done or intended to be done under this Act.

Protec- tion of action taken In good faith.

(2) No suit or other legal proceeding shall lie against the Central Government or any of its officers or other employees for any damage caused or likely to be caused by anything which is in good faith done or Intended to be done under this Act.

26. (1) Every contract entered into by the Company in relation to the Refractory Plant for any service, sale or supply, and in force immedi- ately before the appointed day, shall, on and from the expiry of one hundred and eighty days from the appointed day, cease to have effect unless such contract is, before the expiry of that period, ratified, in writ- ing, by the Central Government or the Government company, and, in ratifying such contract, the Central Government or the Government com- pany may make such alteration or modification therein as it may think fit:

Provided that a Government company shall not make any alteration

Contract! to cease to have effect unless ratified by the Central Govern- ment or Govern- ment company.

or modification in a contract without the previous approval of the Cen- tral Government:

Provided further that the Central Government or the Government „ ewi "n+ nmit t.n ratifv a contract, and shall not make any al-

teration or modification in a contract, unless it is satisfied, that such con- tract is unduly onerous or has been entered into in bad faith or is detrimental to the interests of the Refractory Plant.

(2) The Central Government or the Government company shall not omit to ratify a contract, and, shall not make any alteration or modifica- tion therein, except alter giving to the parties to the contract a reason- able opportunity of being heard and except after recording, in writing, its reasons for refusal to ratify the contract or for making any altera- tion or modification therein.

Delega- tion of powers.

27. (1) The Central Government may, by notification in the Official Gazette, direct that all or any of the powers exercisable by it under this Act may also be exercised by any person or persons as may be specified in the notification.

(2) Whenever any delegation of power is made under sub-section (I), the person to whom such power has been delegated shall act under the direction, control and supervision of the Central Government

28. (i) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Act.

Power to make rules.

(2) In particular, and without prejudice to the generality of the fore- going power, such rules may provide for all or any of the following mat- ters, namely:—

(a) the manner in which monies in any provident or other fund referred to in section 13 shall be dealt with;

(b) any other matter which is required to be, or may be, pres- cribed.

(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is madet before each House of Parlia- ment, while it is in session, for a total iperiod of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modifica- tion 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 anything pre- viously done under that rule.

29. If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, not inconsistent with the provi- sions of this Act, remove the difficulty:

Power to remove difficul- ties

Provided that no such order shall be made after the expiry of a period

of two years from the appointed day.

30. It is hereby declared that this Act is for giving effect to the policy of the State towards securing the principles specified in clause (b) of article 39 of the Constitution.

Declara- tion as to the policy of the State

Explanation.—In this section, "State" has the same meaning as in

article 12 of the Constitution.

STATEMENT OF OBJECTS AND REASONS

Messrs. Assam Sillimanite Limited, a company registered under the Companies Act. 1956, was granted a licence in January, I960, under the Industries (Development and Regulation) Act, 1951, to set up a refrac- tory plant with a total production capacity of 46,000 tonnes of refracto- ries per annum. The plant was to be set up in two stages. Although the company had a collaboration agreement with a foreign firm and plant and machinery were also imported from abroad, the project did not proceed beyond the first stage and even the first stage; was not fully completed. The construction of the second stage was not taken up at all. Only a pilot refractory plant was started but even this was closed down by the company on the 28th June, 1972, throwing more than two hundred work- ers out of employment.

2. Special types of refractories, including high alumina refractories, needed by the steel industry, may be manufactured at the Refractory Plant of the Company and such manufacture would enable the country to progressively reduce the import of such special types of refractories. Accordingly, for the purpose of speedily bringing the Refractory Plant into operation, the management of the Refractory Plant was taken over by the Central Government under section 18AA of the Industries (Deve- lopment and Regulation) Act, 1951, initially for a period of three years from 2nd November, 1972, which was subsequently extended by further one year. Hindustan Steel Limited, to which the management of the Refractory Plant was entrusted by the Central Government, has succeed- ed in bringing the pilot plant into full production. "With a view to putting the available equipment to good use and augmenting the produc- tion of refractories, it is necessary, in the interests of the general public, to acquire the right, title and interest of Messrs. Assam Sillimanite Limited in respect of its Refractory Plant. The Bill seeks to achieve the said object.

NEW DELHI; CHANDRAJIT YADAV.

The 29th December, 1975.

F I N A N C I AL M E M O R A N D UM

The Bill seeks to provide for the acquisition by the Central Govern- ment of the Refractory Plant of Messrs. Assam Sillimanite Limited. As a result of the proposed acquisition, the liabilities specified in sub- clause (2) of clause 8 of the Bill will have to be borne by the Central Government. The extent, of the! liability to be borne by the Central Government on this account is likely to be of the order of rupees forty- five lakhs.

Clause y of the Bill provides for payment by the Central Government, in cash, of an amount of rupees one crore, seven lakhs and seventeen thousand lor the transfer to, and vesting in, it of the Refractory Plant of the Company. The said amount will carry simple interest at the rate of four per cent, per annum for the period commencing on the appointed day and e'nding on the date on which the payment of the amount is made by the Central Government! to the Commissioner of Payments. Interest at the said rate is likely to be of the order of rupees one lakh and forty- three thousand.

Clause 10 of the Bill provides for payment of a further amount to the Company for the deprivation of the management of the Refractory Plant lrom the 2nd day of November, 1972, to the appointed day. The said amount will be calculated at the rate of rupees two thousand and five hundred per mensem. The amount will carry simple interest at the rate of four per cent, per annum for the period commencing on the appointed day and ending on the date on which the payment is made by the Cen- uui Uovcrnment to the Commissioner of Payments. The estimated ex- penditure by reason of clause 10 of the Bill ia likely to be of the order of rupees one lakh and four thousand.

Thus the total estimated non-recurring expenditure which will be involved if the Bill is exacted, is likely to be of the order of rupees one crore, fifty-four lakhs and sixty-four thousand, out of which a sum of about rupees forty-five lakhs will be payable to Hindustan Steel Limited.

Clause 14 of the Bill provides for the appointment of a Commissioner of Payments. The estimated recurring expenditure with regard to the salaries and allowances of the Commissioner of Payments and his staff is likely to be of the order of rupees ten thousand; per mensem.

The purposes of the acquisition of the Refractory Plant would be achieved only after the whole plant has been fully erected and suitably modified so as to enable the production of about thirty thousand tonnes per annum of high alumina and oiher specialised refractories for the use of the steel plants. The erection and modification of the Refractory Plant would involve an additional investment of the order of rupees six Crores, but such expenditure will be incurred after due appropriation by Parliament by law.

The Bill, if enacted, is not likely to involve any other recurring or

non-recurring expenditure.

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 28 of the Bill empowers the Central Government to make rules for carrying out the provisions of the Bill. The matters in respect of which rules may be made relate, among others, to the manner in which monies in any provident or other funds referred to in clause 13 shall be dealt with.

2. The matters in respect of which rules may be made are of adminis- trative detail and procedure and it is not practicable to provide for them in the Bill itself. Delegation of the legislative power is, therefore, of a normal character.

BiLt No. 19 OF 1976

A Bill to authorised payment and appropriation of certain further sums

from and out of the Consolidated Fund of India for the services oj

the financial year 1975-76.

BE it enacted by Parliament in the Twenty-sixth Year of the Bepublic

of India as follows: —

I. This Act may be called the Appropriation Act, 1976.

Short title.

2. From and out of the Consolidated Fund of India there may be paid and applied sums not exceeding those specified in column 3 of the Sche- dule amounting in the aggregate to the sum of three hundred and nine Crores, nine lakhs and twenty-two thousand rupees towards defraying the several charges which will come in course of payment during the financial year 1975-76, in respect of the services specified in column 2 of the Sche- dule.

Issue of Rs. 3,09,09, ^2,000 out of the Consolidat- ed Fund of India for the year 1975-70.

Appropria- tion.

3. The sums authorised to be paid and applied from and out of the Consolidated Fund of India by this Act shall be appropriated for the ser- vices and purposes expressed in the Schedule in relation to the said year.

THE SCHEDULE

(See sections 2 and 3)

2

I

3

Sums not exceeding

Services and purpoacs

Charged on

Voted by

No. of Vote

Total

the Consoli-

Parliament

dated Fund

Rs.

Rs.

R8.

1 Department of Agri-

10,00,000

10,00,000

culture Revenue

20,00,00,000

iO)00,oo,ooc

2 Asriculture . Capital

17,55,000

6

17.55.°°° Department of Food Revenue

7

1,000

1,000

Department of Rural Development . Revenue

19,62,000

19,62,000

11 Ministry of Commerce Revenue ,

Foreign Trade and Ex-

port Production , Revenue

1,16,04,000 65,02,00,000

1,16,04,000 63,02,00,000

Capital

92,12,13,000

92,12,13,000

-•

Defence Services—Army Revenue

19

5,15,11,000

5,15,11,000

30 Defence Services—Navy Revenue

21 Defence Services Air

11,29,70,000

11,29,70,000

Force Revenue

24 Department of Educa-

8,00,000

8,00,000

tion . Revenue

89,000

89,000

Ministry of Energy . Revenue

27

15,00,00,000

15,00,00,000

28 Power Development , Revenue

2p

••

Coal and Lignite . Revenue

50,00,000 4,50,00,000

50,00,000 4,50,00,000

Capital

Other Expenditure of

41

3,12,50,000

3,12,50,000

the Ministry of Finance . Capital

7,50,00,000

7,50,00,000

Delhi . . . Capital

20,00,00,000

20,00,00,000

••

Industries . . Capital

59

61 Civil Supplies and Co-

4J37.56.OOO

4.37 S^ooo

operation . . Capital

I,COO

I,COO

Information & Publicity Revenue

63

(6,000

6,000

66

• •

Labour and Employment Revenue

Ministry of Petroleum

69

f4,73,°o6

4,73,"8O

and Chemicals . Revenue

Ports, Lighthouses and

77

Shipping . Revenue

7,87,87,000 24,73,00,000

7,87,87,000 24,73,00,000

Capital

I

3

Sums not exceeding

Services and purposes

Total

No. of Vote

Voted by Parliament

Charged on the Consoli- dated Fund

Rs.

Rs.

Rs.

Road and Inland Water

78

,,

2,19,21,000

Transport . . Capital

2,19,21,oco

9,94,00,000

Department of Steel . Capital

9,94,oo,cco 79

So Department of Mines , Revenue

1,00,000

I,0O,CCO

81

••

Mines and Minerals . Revenue Capital

i,oo,oo,coo 8,10,00,000

I,OO,OO,CC0 8,10,00,000

Supplies and Disposals Revenue}

6,05,000 83

6,03,000

Department of Rehabi-

84

litation . . . Revenue

18,000

18,000

43,00,000

Capital

45,00,000

95 Atomic Energy Research, Derelopment and In- dustrial Projects . Revenue

••

Capital

1,65,00,000 10,00,000

1,65,00,000 10,00,000

96 Nuclear Power Schemes Revenue

::

9,00,000 28,00,000

Capital

9,00,000 28,00,000

Department of Space. Revenue

1,00,00,000 1,25,00,000

Capital

1,00,00,000 1,25,00,000

••

TOTAL

284,65,36,000 24,43,S6,ooo 309,09,22,1: co

STATEMENT OF OBJECTS AND REASONS

This Bill is introduced in pursuance of article 114(1) of the Constitu- tion of India, read with article 115 thereof, to provide for the appropria- tion out of the Consolidated Fund of India of the moneys required to meet the Supplementary expenditure charged on the Consolidated Fund of India and the grants made by the Lok Sabha for expenditure of the Cen- tral Government, excluding Railways, for the financial year 1975-76.

SUSHILA ROHATGI.

PRESIDENT'S RECOMMENDATION UNDER ARTICLE 117 OF THE CONSTITUTION OF INDIA

[Copy of letter No. F.5(l)-B(S&E)/76, dated the 8th January, 1976 from Shrimati Sushila Rohatgi, Deputy Minister in the Ministry of Finance to the Secretary-General, Lok Sabha.]

The President having been informed of the subject-matter of the pro- posed Bill to authorise payment and appropriation of certain further sums from and, out of the Consolidated Fund of India for the services of the year ending on the 31st day of March, 1976, recommends the introduction of the Appropriation Bill, 1976 in Lok Sabha and also recommends to Sabha the consideration of the: Bill under clauses (1) and (3) of article 117 of the Constitution read with clause (2) of article 115 thereof.

2. The Bill will be introduced in Lok Sabha after all the Supplemen- tary Demands for Grants for 1975-76 have been voted.

Bu,L No. 2X OF,, 1976,

A Bill to provide for the authorisation of appropriation of moneys out

of the Consolidated Fund of India to meet the amounts spent on

certain services during the financial year ended on., the 31st day of

March, 1974 in excess of the amounts granted for those a&r.vices' and

far that ye'ar.

ilE it enacted by Parliaments the Twenty-sixth Year¹ of'the fiepublic

ot India as follqws: —

1. This Act may be cajled the Appropriation (No. 2) Act, 1976.

Short title.

Issue of Re. 10,06,17,538 out of the Consolidat ed Fund (y[ India to meet certain excess expendi- ture for the year ended on thfe 31st March, 1974.

Appropria- tion.

THE SCHEDULE

(See sections 2 and 3)

I

3

3

HxcesR I

Services and purposes

No. of Vote

Total

Voted portion

Charged purtlon

I

Rs.

Rs.

Rs.

3,72,268

1 Department of Agriculture Revenue

3,72.268

23,985

Department of Internal Capital

23,985 13

Trade.

Overseas Communica-

15

tions Service. Capital

22,59,738

33,59.728

Capital Outlay on PostB

18

3.57,5O,oio

and Telegraph*. Capital

2.57,50,010

Defence Services—'Army Revenue

20

i'jo.532

..

1.50.533

Defence Services-

1,15,60,974

23

Pensions, etc. Revenue

1,15,60,974

Department of Social

27

Welfare. . . Capital

5 > 38,000

5,38,000

34,15,000

Stamps . . . Revenu-

34,I5,'3OO

33

Currency, Coinage and

35

Mint . . . Capital

41,156

4^156

Ministry of Health and

41

Family Planning. Revenue

15,11,538

I5.n>538

Cabinet . . . Revenue

5.56.303

5,56,30 3 47

Other Expenditure of

51

the Ministry nf Home Affairs. , . Revenue

24,55,725

²4,55,725

Chandigarh . . Revenue

53

Capital

2,64,591 7,64,924

2,64,591 7,<54,*>24

Andaman and Nicobar

54

Islands. . . Revenue

19.19,131

1fl.19.131

Arunachal Pradesh Revenue

1,71,16,981

1,71,1^981

55

Dadra and Nagar Haveli Revenue

8.97.995 5"

8.97,995 '

Lacadive, Minicoy and Revenue

57

..

Amindivi Islands . Capital

73.774

73,774 1,70,977

Broadcasting . Revenue

1,70,977 29.49,538 63

29,49,538

Ministry of Shipping

75

m p

94,669 and Transport . Revenue

94,669

3,293

Department of Minei Capital

3,292

80

..

6,04,290

Tourism , , Revenue

6,04,290

85

Public Works , Revenue

2.27.50,153

2,24,20,333

S7

3>39,Si9

Atomic Energy Research

90

m f

38,56,741 and Development Capital

38,56,741

5,15,264 A^chseoligy . Revenue

5,15,264

93

••

TOTAL

iOiO"|i7,538

9,95*58,031

io,59,5of

STATEMENT OF OBJECTS AND REASONS

This Bill is introduced in pursuance of article 114(1) of the Constitu- tion of India read with article 115 thereof, to provide for the appropriation out of the Consolidated Fund of India of the moneys required to meet the expenditure incurred in excesss of the appropriations charged on the Fund and the Grants made by the Lok Sabha for expenditure of the Central Government, excluding Railways, for the financial year ended on the 31st day of March, 1974.

SUSHILA ROHVTGI.

PRESIDENT'S RECOMMENDATION UNDER ARTICLE 117 OF THE CONSTITUTION OF INDIA

[Copy of letter No. F.5(2)-B(S&E)/76, dated the 8th January, 1976 from Shrimati Sushila Rohatgi, Deputy Minister in,the Ministry of Finance to the Secretary-General, Lok Sabha.]

The President having been informed of the subject-matter of the pro- posed Bill to provide for the authorisation of appropriation of moneys out of the Consolidated Fund of India to meet the amounts spent on cer- tain services during the financial year ended on the 31st day of March, 1974, in excess of the amounts granted for the said services and for that year recommends under clauses (1) and (3) of article 117 of the Consti- tution, read with sub-clause (2) of article 115 thereof, the introduction of the Appropriation (No. 2) Bill, 1976, in Lok Sabha and also recom- mends to Lok Sabha the consideration of the Bill.

BILL N O. 20 OF 1976

A Bill to authorise payment and appropriation of certain further sums

from and out of. the Consolidated Fund of India for the services of

the financial year 1975-76 for the purposes of Railways.

BE it enacted by Parliament in the Twenty-sixth Year of the Republic

of India as follows: —

1. This Act may be called the Appropriation (Railways) Act, 1976. Short title.

2. From and out of the Consolidated Fund of India there may be paid and applied sums not exceeding those specified in column 3 of the Sche- dule amounting in the aggregate to the sum of eighteen lakhs and thirty thousand rupees towards defraying *the several charges which will come in course of payment during the financial year 1975-76, in respect of the services relating to railways specified in column 2 of the Schedule.

Issue of Ra. 18,30,000 out of the Consoli- dated Fund of India for the finan- cial year 1975-76.

Appro- priation, 3. The sums authorised to be paid and applied from and out of the Consolidated Fund of India by this Act shall be appropriated for the services and purpose's expressed in the Schedule in relation to the said year.

THE SCHEDULE

(See sections 2 and 3)

I

2

3

Sums not exceeding

No. of Vote

Services and purposes

Voted by

Parliament

Charged on the Consoli- dated Fund

Total

Ra.

Rs.

Ri.

Working Expenses—Repairs and

5

7,75,000

7>75>ooo

Maintenance

1,36,000

1,36,000

6 WorkingExpenses—-Operating Staff

29,000

29,000

Working Expenses—Operation (Fuel)

7

Working Expenses— Operation other

8

3,00,000

5,00,000

than Staff and Fuel

Working Expenses—Miscellaneous

9

15,000

13,000

Expenses

14

2,10,000

i,10,000

Construction of New TjineB~Capital and Depredation Reserve Fund -

1,65,000

3,000

J,63,000

Open Line Works—'Capital, Depre elation Reserve Fund and Develop - ment Fund

18,30,000

3,000

TOTAL

t8,if,ooo

STATEMENT OF OBJECTS AND REASONS

This Bill is introduced in pursuance of article 114(1) of the Constitu- tion of India, read with article 115 thereof, to provide for the appropria- tion out of the Consolidated Fund of India of the moneys required to meet the supplementary expenditure charged on the Consolidated Fund of India and the grants made by the Lok Sabha for expenditure of the Central Government on Railways, for the financial year 1975-76.

KAMLAPATI TRIPATHI,

PRESIDENT'S RECOMMENDATION UNDER ARTICLE 117 OF

THE CONSTITUTION OF INDIA

[Copy of letter No. 75-B-4017, dated the 7th January, 1976 from Shri Kamlapati Tripathi, Minister of Railways to the Secretary-General, Lok Sabha.]

The President having been informed of the subject-matter of the pro- posed Appropriation Bill providing for the appropriation out of the Consolidated Fund of India of the moneys required to meet the expendi- ture charged on the Fund and the Supplementary Grants made by Lok Sabha, for 1975-76, recommends under clauses (1) and (3) of article 117 of the Constitution of India read with clause- (2) of article 115 thereof, the introduction in and consideration by Lok Sabha of the Appropriation Bill.

S. L. SHAKDHER, Secretary-General.

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MKW DKtHI AND PtJBUSHID BY THK CONTROIXKR OF PUBLICATIONS. OKLHI, 1976