REGISTERED No. D. ( D ) -72 रजिस्ट्रीसं ० डी-(डी) -72
Π भारत का राजपत्र
The Gazette of India
असाधारण
EXTRAORDINARY
भाग II-खण्ड 2
PART II Section 2
प्राधिकार से प्रकाशित
PUBLISHED BY AUTHORITY
सं० 50] नई दिल्ली, बृहस्पतिवार , दिसम्बर 22 , 1977 पौष 1 , 1899
No. 30 ] NEW DELHI THURSDAY , DECEMBER 22 , 1977 PAUSA 1 , 1899,
इस भाग में भिन्न पृष्ठ संख्या दी जाती है जिससे कि यह अलग संकलन के रूप में रखा जा सके ।
Separate paging is given to this Part in order that it may be filed as a separate compilation
LOK SABНА
The following Bills were introduced in Lok Sabha on the 22nd Decem- ber, 1977:-
BILL NO. 152 ог 1977
A Bill to provide for restructuring of the iron and steel companies in the public sector so as to secure better management and greater efficiency in their working and for matters connected therewith or incidental thereto .
BE It enacted by Parliament in the Twenty- eighth Year of the Republic of India as follows: -
CHAPTER I
PRELIMINARY
1 (1 ) This Act may be called the Public Sector Iron and Steel Com- panies ( Restructuring ) and Miscellaneous Provisions Act , 1977
Short title and com- mence- ment, (2) It shall come into force on such date as the Central Government may , by notification in the Official Gazette , appoint .
2. (1 ) In this Act , unless the context otherwise requires ,--
Defini- tions.
(a) "appointed day " means the date on which this Act comes into force;
(b) " Companies Act " means the Companies Act , 1956;
1 of1956,
(c ) " corresponding un't " , in relation to ,-
(2) the Integral Company , means that unit of the Integral Company which corresponds to the unit of the dissolved com- pany or the transferred company in which the concerned officer
(959 ) [PART II-
THE GAZETTE OF INDIA EXTRAORDINARY
960
or other employee was holding office before the transfer of the said unit;
(2) a transferee company , means that unit of a transferee company which corresponds to the unit of the dissolved company in which the concerned officer or other employee was holding office, before the transfer of the said unit ;
(d) " dissolved company " means a company specified in the First Schedule;
(e) "Integral Company " means the Steel Authority of India Limited, a company formed and registered under the Companies Act having its registered office at New Delhi ;
(f) " transferee company" means the company to which the undertakings of a dissolved company or of a transferred unit , as the case may be , stand transferred by virtue of the provisions of this Act ;
(g) "transferred company " means, ---
(2) Metallurgical and Engineering Consultants (India) Limited , a company formed and registered under the Companies Act having its registered office at Ranchi in the State of Bihar ;
( ii) National Mineral Development Corporation Limited, a company formed and registered under the Companies Act having its registered office at Hyderabad in the State of Andhra Pradesh;
(ii) Hindustan Steelworks Construction Limited , a company formed and registered under the Companies Act having its regis- tered office at Calcutta in the State of West Bengal ;
(w ) Bharat Refractories Limited , a company formed and registered under the Companies Act having its registered office at Bokaro Steel City in the State of Bihar ; or
(v ) India Firebricks and Insulation Company Limited , a com- pany formed and registered under the Companies Act having its registered office at Bombay in the State of Maharashtra ;
(h) " transferred unit" means ,-
(1) Kiriburu Iron Ore Mines , a unit of the National Mineral Development Corporation Limited;
( ii) Meghahatuburu Iron Ore Project , a unit of the National Mineral Development Corporation Limited;
(ni ) Ramgarh Refractory Plant , a unit of the Hindustan Steel Limited ( situated near Ramgarh in the State of Bihar) ;
( iv ) Refractory Project , a unit of the Hindustan Stcel Limit- ed (situated at Bhilai in the State of Madhya Pradesh ) ; or
(v ) Sıllımanite Mines , a unit of the Hindustan Steel Limited (situated in the State of Meghalaya)
(2) Words and expressions used herein and not defined but defined in the Companies Act have the meanings respectively assigned to them 'm that Act
"Under- taking - meaning of
3 For the purposes of this Act , the undertaking of a dissolved com- pany or of a transferred unit shall be deemed to include all assets , rights , leaseholds ( including mining leases , if any) , industrial or other licences , powers , authorities and privileges and all property , movable and immov- THE GAZETTE OF INDIA EXTRAORDINARY
SEC . 2 ]
961
able , including lands , buildings, works , mines , workshops , projects , smel- ters , stores , instruments , machinery , automobiles and other vehicles , cash or bank balances , cash in hand , investments and book debts and all other rights and interests in, or arising out of , such property as were immedi- ately before the appointed day in the ownership , possession, power or control of the dissolved company or the transferred unit , as the case may be (whether within or without India) , and all books of account , registers , maps , drawings , records of survey and all other documents of whatever nature relating thereto , and shall also be deemed to include all borrow- ings , liabilities and obligations of whatever kind of the dissolved com- pany or the transferred unit .
Explanation-Reference in this section to an undertaking of a trans- ferred unit shall be deemed to be a reference to the undertaking of the company of which that forms a unit as is relatable toit as if it were a separate company.
CHAPTER II
DISSOLUTION , TRANSFER AND VESTING OF UNDERTAKINGS OF CERTAIN COMPANIES
4. On the appointed day , the companies specified in the First Schedule shall stand dissolved and subject to the provisions of sections 6 and 7 , all the undertakings of such companies shall stand transferred to , and vest in , the Integral Company.
Dissolu tion, transfer and vest ing of undertak . ing of certain compa- nies in Integral Com-
5. On the appointed day , the undertakings of the following transferred units shali stand transferred to , and vest in, the Integral Company , namely:---
(a) Kıriburu Iron Ore Mines , a unit of the National Mineral Development Corporation Limited, and
Transfer and vest- ing of Kuriburu Iron Ore Mines , etc. in Integ- ral Com pany.
(b ) Meghahatuburu Iron Ore Project , a unit of the National Mineral Development Corporation Limited .
6. (1) On the appointed day , the undertakings of the following trans- ferred units shall stand transferred to , and vest in , the Bharat Refractories Limited, namely :-
(a) Ramgarh Refractory Plant of the Hindustan Steel Limited (situated near Ramgarh in the State of Bihar ) ,
(b) Sıllımanıte Mines of the Hindustan Steel Limited ( situated in the State of Meghalaya ) , and
T'ransfer and vest- ing of Refrac tory Plant etc in the Bharat Refrac- tories Limited,
(c) Refractory Project of the Hindustan Steel Limited ( situat- ed at Bhilai in the State of Madhya Pradesh) .
(2) Notwithstanding anything contained in the Companies Act , as from the appointed day , the registered office of the Bharat Refractories Limited shall stand transferred from Bokaro Steel City in the State of Bihar to Bhilai in the State of Madhya Pradesh .
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Transfer
of immov-
able pro-
Steel
7. On the appointed day , the right , title and interest of the Hindustan Steel Limited in the immovable properties owned byit in Ranchi District parties of of the State of Bihar , together with liabilities and obligations in relation Hindustan thereto , shall stand transferred to , and vest in, the Metallurgical and Engineering Consultants ( India) Limited.
Limited
CHAPTER III
το Metallur- gical and Engineer- ing Con- sultants (India) Limited.
TRANSFER OF SHARES
8. On the appointed day , all the shares held by the Bakaro Steel Limit- ed in the share capital of the Bharat Refractories Limited shall stand transferred to , and vest in , the Central Government
Transfer ofshares held by Bokaro Steel Limited to Cen- tral Gov- ernment .
9 On the appointed day , all the shares held by the Integral Company in the share capital of each of the companies specified in the Second Schedule shall stand transferred to , and vest in, the Central Government. Transfer ofshares held by Integral Company to Cen- tral Gov- ernment .
10. On the appointed day , all the shares held by the Integral Company in the share capital of the India Firebricks and Insulation Company Limited ( a company formed and registered under the Companies Act having its registered office at Bombay in the State of Maharashtra ) shall stand transferred to , and vest in, the Bharat Refractories Limited
Transfer ofshares held by Integral Company to Bharat Refrac- tories Limited.
11 On the appointed day , all the shares held by the Central Govern- ment in the share capital of the Indian iron and Steel Company Limited (a company under the Companies Act having its registered office at Calcutta in the State of West Bengal ) shall stand transferredto , and vest in, the Integral Company .
Transfer of shares held by Central Govern- ment to Integral Company.
12. The Central Government , the Bharat Refractories Limited or the Integral Company , as the case may be , shall be deemed, as from the appointed day , to have been registered in the register of members of the companies concerned as the holder of each share which stands transfer- red to, and vested in each of them by virtue of the provisions of sections 8, 9, 10 or 11 , as the case may be .
Central Govern- ment , etc , deemed to be register- ed in the register of mem- bers of compa- nies.
SEC . 2 ]
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963
13. ( 1 ) The Central Government may , from time to time , by order published in the Official Gazette , specify the amount by which the paid- up share capital of the Integral Company , the Bharat Refractories Limit- ed, the Metaliurgical and Engineering Consultants ( India) Limited, and the National Mineral Development Corporation Limited shall stand re- duced or increased as a result of transfer of shares , undertakings or im- movable properties , as the case may be , under the provisions of this Act ..
(2) In specifying the amount under sub - section ( 1 ) , the Central Government shall have regard to the following factors , namely :-
Power of Central Govern- ment to modify amount ofpaid- up share capital of Inte- gral Com- pany, etc , and issue of shares .
(i) the book value of shares referred to in sections 8 , 9 , 10 or 11 , as the case may be , of the concerned company , on the appointed day,
(i ) the net value of the undertakings of the dissolved company and transferred unit , as on the appointed day , and
(in) the book value of the immovable properties owned by the Hindustan Steel Limited referred to in section 7 as on the appointed day,
as are transferred to or from the companies referred to in sub - section (1) .
(3) Every order made under sub - section (1 ) shall be made within a period of one year from the appointed day and any such order may take effect prospectively or retrospectively , but not with effect from a date earlier than the appointed day.
(4) Any order made by the Central Government under this section may include a direction for the issue or cancellation of appropriate num- ber of shares so as to give effect to the provisions of this Act .
CHAPTER IV
PROVISIONS RELATING TO OFFICERS AND EMPLOYEES
Provisions relating to offi. cers and other employees of dis- solved compa- nies.
14. (1 ) Every officer (not being a director) or other employee holding office immediately before the appointed day in a dissolved company in relation to any undertaking of such company , other than an officer or other employee holding such office in relation to transferred units refer- red to in section 6 , shall , as from the appointed day, continue to hold office as such in the corresponding unit of the Integral Company by the same tenure and upon the same terms and conditions of service and with the same rights and privileges as to retirement benefits as would have been admissible to him if the company in which he was holding office had not been dissolved and shall continue to do so unless and until such tenure and terms and conditions are duly altered by the Integral Com- pany.
(2) Notwithstanding anything contained in sub - section ( 1 ) , rules relating to the conditions of service and Standing Orders applicable to the officers or other employees referred to in sub- section (1) , as imme- diately before the appointed day , shall continue to apply unless and until they are duly altered by the Integral Company or other authority , as the casemay be, THE GAZETTE OF INDIA EXTRAORDINARY [PART II- 964
Provi- sions relating to officers and em- ployees of transfer- red units.
15. (1 ) Every officer of other employee holding office immediately before the appointed aay im the transtered unit shall , as from the appointed day , continue to be an officer or other employee of the corres- ponding unit of the mansteree company by the saine tenure and upon the same terms and conditions of service and with the same rights and privileges as to retirement benefits as would have been admissible to him if the transterred unit m which he was hording office hard not been trans- ferred and shall continue to do so unless and until such tenure and terms and conditions are duly artered by the transferee company .
(2) Notwithstanding anything contained in sub - section (1 ) , rules relating to the conditions of service and Standing Orders applicable to the officers or other employees referred to in sub - section ( 1 ) , as immediately before the appointed day , shall continue to apply unless and until they are duly altered by the transferce company or other authority , as the case may be .
16. (1 ) Every person holding office as a director of a dissolved com- pany immediately before the appointed day shall , on that day , cease to hold office as such director .
Provisions relating to direc- tors
(2) Every person, being a director in whole -time employment of a dissolved company , immediately before the appointed day, shall continue to be an employee of the corresponding unit of the Integral Company with such designation and on such terms and conditions as may be deter- mined by the Integral Company .
Provi- sion re- lating to auditors
17. Every person appointed under section 619 of the Companies Act as an auditor of a dissolved company or of a transferred unit , holding office immediately before the appointed day, may continue to hold office as such auditor in the corresponding unit of the Integral Company or of any other transferee company , as the case may be , for the duration for which he was so appointed on the same terms and conditions as were applicable to hum immediately before the appointed day .
14 of 1947 .
Compen- sation for transfer not pay- able.
18. Notwithstanding anything contained in the Industrial Disputes Act, 1947, or in any other law for the time being in force , the transfer of services of any officer or other employee shall not entitle such officer or other employee to any compensation under that Act or under any other law for the time being in force and no claim for such compensation shall be entertained by any court, tribunal or other authority.
Provident fund.
19. Where a provident fund has been established by a dissolved com- pany or any other company in respect of a transferred unit for the benefit of the employees and the same stands vested in a trust, the moneys and other assets standing to the credit of each provident fund shall continue to be held in trust with the same objects as were applicable before the appointed day and the trustees of such trusts immediately before the appointed day shall , subject to the provisions of the trust deeds and the rules relating to such trusts , continue to function as trustees in respect of such provident fund of the corresponding unit of the Integral Company or of other transferee company , as the case may be , as if this Act had not been passed:
Provided that the right to nominate trustees and other rights relating to the trusts vested in the dissolved company or other company in respect SEC. 2 ]
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965
of the transferred unit , as the case may be , shall vest in the Integral Company or other transferce company , as the case may be.
welfare Gratuity, and other funds .
20. Where any gratuity , welfare or other fund has been established by a dissolved company or any other company in respect of a transferred unit for the benefit of its employees and 1s in existence immediately before the appointed day , all moneys and other assets standing to the credit of or relatable to such gratuity , welfare or other fund shall vest in the corresponding unit of the Integral Company or other transferee com- pany, as the case may be .
CHAPTER V
FINANCIAL PROVISIONS
Provisions with res- pect to income- tax and urtax 21. (1 ) The Integral Company shall be liable to pay any sum under the provisions of the Income- tax Act or the Companies ( Profits ) Surtax Act which any dissolved company would have been liable to pay if the dissolution had not taken place , in the like manner and to the same extent as the dissolved company .
(2) For the purpose of making an assessment of the income or , as the case may be , the chargeable profits of any dissolved company and for the purpose of levying any sum in accordance with the provisions of sub- section (1 ) ,
(a) any proceeding taken against any dissolved company before the appointed day shall be deemed to have been taken against the Integral Company and may be continued against the Integral Com- pany from the stage at which it stood immediately before the appointed day;
(b ) any proceeding which could have been taken against any dissolved company if the dissolution had not taken place , may be taken against the Integral Company ; and
(c) all the provisions of the Income - tax Act or , as the case may be, the Companies ( Pi fits ) Surta : Act shall apply accordingly
(3) The assessment of the income or, as the case may be , the charge- able profits of the previous year of any dissolved company in which the dissolution took place up to the appointed day shall be made as if such dissolution had not taken place, and all the provisions of the Income- tax Art and the Companies ( Profits ) Surtax Act shall, so far as may be , apply accordingly.
(4) The transfer to , and vesting in , the undertaking of any dis- solved company in the Integral Company under the provisions of this Act shall be deemed to be an amalgamation in relation to such conıpanies and the provisions of the Income - tax Act shall , so far as may be , apply accordingly as if references in the said Act to the amalgamating com- pany and the amalgamated company were references to the dissolved company and the Integral Company respectively .
(5) Where any capital asset forming part of any undertaking belong- ing to the transferred unit or , as the case may be , the Hindustan Steel Limited is, in pursuance of section 5 or section 6 or section 7 , transferred to, and vests in , the Integral Company or the Bharat Refractories Limited or , as the case may be , the Metallurgical and Engineering Con- sultants ( India) Limited , such capital asset shall be deemed to have been transferred in a scheme of amalgamation and the provisions of the THE GAZETTE OF INDIA EXTRAORDINARY
[PART II-
966
Income - tax Act shall , so far as may be , apply accordingly as if references in the said Act to the amalgamating company were references to the transferred unit or , as the case may be , the Hindustan Steel Limited and the references to the amalgamated company, being an Indian company , were references to the Integral Company or the Bharat Refractones Limited or , as the case may be, the Metallurgical and Engineering Consultants ( India) Limited.
(6) The accumulated loss and the unabsorbed depreciation , if any , of any dissolved company shall be deemed to be the loss or , as the case may be , allowance for depreciation of the Integral Company for the previous year in which the undertaking of the dissolved company vested in the Integral Company, and the provisions of the Income- tax Act relating to set off and carry forward of loss and allowance for deprecia- tion shall apply accordingly .
(7) The provisions of sub - sections ( 1 ) to ( 6) shall have effect notwith- standing anything to the contrary contained in the Income- tax Act or the Companies (Profits ) Surtax Act .
Explanation . For the purposes of this section ,-
(a) " Income - tax Act " means the Income - tax Act , 1961 ,
43 of 1961
7 of 1964 .
(b) " Companies ( Profits ) Surtax Act" means the Companies (Profits) Surtax Act , 1964 ;
(c) words and expressions used in this section and not defined in this Act but defined in the Income - tax Act or the Companies (Profits) Surtax Act shall have the meanings respectively assigned to them in the said Acts .
22. For the removal of doubts , it is hereby declared that no taxes , duties , fees or other charges of whatever nature ( including registration charges ) , shall be payable in respect of any transfer of shares or transfer of any undertakings or transfer of any immovable property under the provisions of this Act.
Taxes, fees ana other charges not pay- able
CHAPTER VI
MISCELLANEOUS
Saving of con- tracts, etc.
23 ( 1) All contracts , deeds , bonds , agreements and other instruments of whatever nature to which the dissolved company is a party subsisting or having effect immediately before the appointed day , shall , as from that day, be of full force and effect against , or in favour of the Integral Company or other transferee company, as the case may be, and may be enforced as fully and effectually as if, instead of the dissolved company, the Integral Company or other transferee company had been a party thereto
(2) All contracts , deeds , bonds , agreements and other instruments of whatever nature to which the company in respect of a transferred unit is a party if and in so far as it relates to matters pertaining to the under- takings of the transferred unit, subsisting or having effect immediately before the appointed day , shall, as from that day , be of full force and effect against , or in favour of the Integral Company or other transferee SEC. 2 ]
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967
company, as the case may be, and may be enforced as fully and effectually as if, instead of such company , the Integral Company or other transferee company had been a party thereto.
Saving of legal proceed- ings .
24. If, on the appointed day, there is pending any suit , arbitration , appeal or other legal proceeding of whatever nature by or against a dis- solved company, the same shall not abate, be discontinued or be in any way prejudicially affected by reason of the transfer under the provisions of this Act to the Integral Company or any other transferee company , as the case may be , of the undertakings of the dissolved company or of anything contained in this Act , but the suit , arbitration , appeal or other proceeding may be continued , prosecuted and enforced by or against the Integral Company or other transferee company, as the case may be , in the same manner and to the same extent as it would or might have been continued , prosecuted and enforced by or against the dissolved company 'f this Act had not been passed .
25. If any difficulty arises in giving effect to the provisions of this Act , the Central Government may, by order , published in the Official Gazette , make such provisions, not inconsistent with the provisions of this Act , as appears to it to be necessary , for the removal of the difficulty:
to re- move Power difficul- ties .
Provided that no such order shall be made after the expiry of a period of three years from the appointed day .
Act to override the pro visions ofother laws.
26. The provisions of this Act or of any order made thereunder shall have effect notwithstanding anything contained in the Companies Act or in any other law for the time being in force or in any contract , express or implied , or in any rules or regulations having effect by virtue of any law other than this Act .
27. (1) For the purpose of giving effect to the provisions of this Act , the Central Government may , by notification in the Official Gazette , make such amendments in the memorandum or articles of association , or both , of the Integral Company or other transferee company,
Power to amend memo- randum and articles of associa tion.
(2) Any amendments in the memorandum or articles of association of the Integral Company or other transferee company made in pursuance of sub - section (1) shall have effect notwithstanding anything contained in the Companies Act.
THE FIRST SCHEDULE [See sections 2 ( d) and 4 ]
1. Bhilai Ispat Limited , a company formed and registered under the Companies Act having its registered office at Bhilai in the State of Madhya Pradesh
2. Bokaro Steel Limited, a company formed and registered under the Companies Act having its registered office at Bokaro Steel City in the State of Bihar ,
3 Durgapur Mishra Ispat Limited a company formed and registered under the Companies Act having its registered office at Durgapur in the State of West Bengal, [PART II-
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4. Hindustan Steel Limited, a company formed and registered under the Companies Act having its registered office at Ranchi in the State of Bihar .
5. Rourkela Ispat Limited, a company formed and registered under the Companies Act having its registered office at Rourkela in the State of Orissa .
6. SAIL International Limited , a company formed and registered under the Companies Act having its registered office at Calcutta in the State of West Bengal ,
7. Salem Steel Limited , a company formed and registered under the Companies Act having its registered office at Salem in the State of Tamil Nadu.
THE SECOND SCHEDULE
(See section 9)
a 1. Metallurgical and Engineering Consultants (India) Limited , company formed and registered under the Companies Act having its registered office at Ranchi in the State of Bihar ,
2 Hindustan Steelworks Construction Limited, a company formed and registered under the Companies Act having its registered office at Calcutta in the State of West Bengal .
3. National Mineral Development Corporation Limited, a company formed and registered under the Companies Act having its registered office at Hyderabad in the State of Andhra Pradesh ,
4. Manganese Ore (India) Limited , a company formed and registered under the Companies Act having its registered office at Nagpur in the State of Maharashtra .
5. Mandovi Pellets Limited , a company formed and registered under the Companies Act having its registered office at Mormugao Harbour in the Union territory of Goa, Daman and Diu , THE GAZETTE OF INDIA EXTRAORDINARY
SEC. 21
STATEMENT OF OBJECTS AND REASONS
are There are at present sıx integrated steel plants in the country with a total installed capacity of 10.6 million tonnes of ingot steel . Of these , five steel plants with an aggregate capacity of 8.6 million tonnes are in the public sector . The plants at Bhilai , Durgapur and Rourkela owned and managed by Hindustan Steel Limited and the plant at Bokaro by Bokaro Steel Limited , both the companies being wholly - owned subsi- diaries of Steel Authority of India Limited. The fifth plant at Burnpur 1s under the Indian Iron and Steel Company Limited whose majority shares were acquired by Government in July , 1976. Bhilai and Bokaro Steel Plants are being expanded and this will raise the total steel pro- duction capacity in the public sector to 12.4 million tonnes . Steel Authority of India Limited also has a number of other subsidiaries con cerned with activities allied to steel production such as provision of consultancy , design and engineering services for ferrous and non - ferrous enterprises , heavy construction/erection work connected with steel and other sectors , development and operation of major mechanised iron ore mines to meet the demands for export and from steel plants , etc.
2. It is essential for proper development of the steel industry that public sector steel plants achieve maximum production and are managed with the greatest efficiency . For this purpose , it would be advisable to bring these plants under the overall control of an Integral Company which should function , to the maximum extent possible , as an integrated steel complex and all activities which are not directly related to steel production are kept outside its purview. Having regard to the present nature of these activities and potentialities for the future , it would also be greatly advantageous if the units/companies concerned therewith function directly under Government . Accordingly the present set -up 1s. being reorganised broadly as under: -
(i) Hindustan Steel Limited , Bokaro Steel Limited , Salem Steel Limited , SAIL International Limited , Bhilai Ispat Limited, Rourkela Ispat Limited and Durgapur Mishra Ispat Limited , wholly- owned subsidiaries of Steel Authority of India Limited (SAIL ) , will be merged in SAIL and will function as units of SAIL ,
( ii) The shares presently held by Government in Indian Iron and Steel Company Limited will be transferred to SAIL and it will become a subsidiary of SAIL .
( iii) Metallurgical and Engineering Consultants ( India) Limited, Hindustan Steelworks Construction Limited and National Mineral Development Corporation Limited , wholly - owned subsidiaries of SAIL, will become independent companies under the direct admi- nistrative control of Department of Steel . Kiriburu and Meghahatu- buru Iron Ores Mines of National Mineral Development Corporation Limited will be transferred to SAIL to serve as captive units of Bokaro Steel Plant .
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[PART II-
970
( w ) Bharat Refractories Limited , a wholly -owned subsidiary of Bokaro Steel Limited will become an independent company directly under the Department of Steel and other refractory units will also come under it .
3. Restructuring as aforesaid is undertaken to secure better manage- ment of, and greater efficiency in, the working of public sector steel plants. The terms and conditions applicable to the employees would remain unaltered .
4. The Bill seeks to achieve the above objects ,
BIJU PATΝΑΙΚ.
NEW DELHI;
The 14th December , 1977 .
971 THE GAZETTE OF INDIA EXTRAORDINARY
SEC 2]
BILL NO . 153 OF 1977
A Bill further to amend the Representation of the People Act , 1981 and the Indian Penal Code .
BE it enacted by Parliament in the Twenty- eighth Year of the Republic of India as follows :-
1. This Act may be called the Election Laws (Amendment) Act, 1977. Short title.
48 of1981 .
2. In the Representation of the People Act , 1951 ( hereinafter referred to as the principal Act ) , in sub - section (1 ) of section 77 ,-
Amend- ment of section
(a) for the words " the date on which he has been nominated " , 77 . the words " the date of publication of the notification calling the election" shall be substituted;
(b ) Explanation 1 , Explanation 2 and Explanation 3 shall be omitted.
3. In section 79 of the principal Act , for clause ( b ) , the following clause shall be substituted , namely: -
Amend- ment of section
79. ' (b ) " candidate" means a person who has been or claims to have been duly nominated as a candidate at any election and any such person shall be deemed to have been a candidate as from the time when, with the election in prospect , he began to hold himself out as a prospective candidate;' .
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[PART II- 972
4. In section 123 of the principal Act,--
(a) in clause (3 ) , the proviso shall be omitted;
Amend. ment of section 128 .
(b) in clause (7) , the proviso shall be omitted ;
(c) in the Explanation at the end, paragraph (3 ) shall be omitted.
5. In the Indian Penal Code , in section 171A, for clause (a) , the following clause shall be substituted, namely .-
Amend. ment of section 171A of Act45 of 1860.
(a) " candidate " means a person who has been nominated as a candidate at any election and includes a person who , when an election is in contemplation , holds himself out as a prospective candidate thereat; provided that he is subsequently nominated as a candidate at such election ;' .
SEC. 21
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973
STATEMENT OF OBJECTS AND REASONS
The Representation of the People ( Amendment ) Act , 1974 (58 of 1974) and the Election Laws ( Amendment ) Act , 1975 (40 of 1975 ) effected certain amendments in the Representation of the People Act, 1951 (43 of 1951 ) inter alia to provide that the expenditure incurred or authorised by a political party or any other association or body of persons or by any individual ( other than the candidate or his election agent ) shall not be deemed to be expenditure in connection with the election incurred or authorised by the candidate or by his election agent and also to remove the concept of " election in prospect " , so . that the ban contem- plated for the purposes of corrupt practices would apply only from the date of filing of the nomination ( instead of from the time when, with the election in prospect , the candidate began to hold himself out as a pros- pective candidate) till the date of declaration of the result .
2. The Election Laws ( Amendment) Act , 1975 also made amendments to section 123 ( relating to corrupt practices) of the Representation of the People Act , 1951 , for the following purposes : -
( 1) exclusion of a symbol allotted by the Election Commission from being challenged as a religious symbol under section 123 ( 3 ) ;
(ii) exclusion of the acts , such as making arrangements or pro- vıdıng facilities in connection with an election by a person in the service of the Government , from being construed as obtaining the assistance of the prohibited category of persons enumerated in sec- tion 123 (7 ) ; and
( ii ) making the publication in the Official Gazette of the appointment , resignation or termination, dismissal or removal from service of a person in the service of the Government , a conclusive proof of such appointment , resignation , etc.
3. The Election Laws (Amendment ) Act, 1975 also amended section 171A of the Indian Penal Code so as to define the expression " candidate" occurring therein , as meaning a person who has been nominated as a candidate at any election.
4. It is considered that the amendments made in the Representation of the People Act, 1951 and the Indian Penal Code, referred to above, far from ensuring free and fair elections , may have the effect of increas- ing money power and the chances of misuse of official machinery at elections . It is , therefore , proposed to amend the said Acts to restore the position that obtained earlier .
5. The Bill seeks to achieve the above object .
SHANTI BHUSHAN .
NEW DELHI;
The 17th December , 1977 .
AVTAR SINGH RIKHY ,
Secretary.
PRINTED BY THE GENERAL MANAGER , GOVERNMENT OF INDIA PRESS MINTO ROAD , NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS , DELHI , 1978