REGISTERED No. D-(D)-72
The Gazette of India
EXTRAORDINARY
PART II—Section 1
PUBLISHED BY AUTHORITY
No. a] NEW DELHI, TUESDAY, MARCH 14, 1978/PKALGUNA 23, 1899
Separate paging is given to this Part in order that it may be filed
at a separate compilation
MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS (Legislative Department) New Delhi, the Uth March, 1978/Thaguna 23, 1899 (Saka)
The following Act of Parliament received the assent of the Presi- dent on the 13th March, 1978, and is hereby published for general information: —
THE MERCHANT SHIPPING (AMENDMENT) ACT, 1978
(No. 1 or 1978)
[13th March, 1978]
An ACT further to amend the Merchant Shipping Act, 1958.
BE it enacted by Parliament in the Twenty-ninth Year of the
Republic of India as follows: —
1. This Act may be called the Merchant Shipping (Amendment) Act,
Short title.
1978.
2. In section 14 of the Merchant Shipping Act, 1958 (hereinafter refer-
44 of 1958
red to as the principal Act), after clause (b), the following clause shall be inserted, namely: —
Amend- ment of eec- tion 14
"(bb) the amounts received by the said Committee on the issue
and sale of bonds and debentures;".
3. In sub-section (1) of section 15 of the principal Act, for the word
"six", the word "twelve" shall be substituted
Amend- ment of sec- tion 15.
4. In section 16 of the principal Act,—
Amend- ment of sec- tion .16, (i) in sub-section (1), for the words and figures "In any other form to persons of the description mentioned in section 21 for
( 9 )
10 THE GAZETTE OP INDIA EXTRAORDINARY [PART II—acquisition and maintenance of ships.", the following shall be substi- tuted, namely: —
"in any other form,—
(a) to persons of the description mentioned in section
21—
ii) for the acquisition and maintenance of ships, including modification, reconstruction and renovation thereof; and
(ii) for meeting any short-term financial require-
ments;
(b) to Indian ship-yards for the construction of new
ships.";
(ii) for sub-section (2), the following sub-sections shall be sub-
stituted, namely: —
1 of 19 " (2) The Committee shali not grant any loan or give any financial assistance under sub-section (2) except on such terms and conditions as the Central Government may from time to time specify, and any such term may, ii! the loan or financial assistance is granted or given to a company, provide for the appointment by the Committee of one or more directors of such company and such provision and any appointment of directors made in pursu- ance thereof shall be valid and affective 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 memoran- dum, articles of association or any other instrument relating to the company and any provision regarding share qualification, age limit, number of directorships, removal from office of director and such like conditions contained in any such law or instrument aforesaid, shall not apply to any director appointed by the Com- mittee in pursuance of the term as aforesaid.
(2A) Any director appointed in pursuance of sub-section
(2) shall,—
(a) hold office during the pleasure of the Committee and may be removed or substituted by any person by order in writing by the Committee;
(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 anything 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.
(2B) Every director appointed by the Committee shall be indemnified by the Committee against all losses and expenses incurred by him in, or in relation to, the discharge of his duties, except such as are caused by his own wilful act or default.
SEC 1] THE GAZETTE OF INDIA EXTRAORDINARY 11(2C) No suit or other legal proceeding shall lie against any director appointed by the Committee for any loss or damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or any other law or provision having the force of law.".
5. After section 16 of the principal Act, the following section shall be
inserted, namely: —
Insertion of new sec- tion 16 A.
Borrowing powers.
"16A. (1) The Committee may issue and sell bonds and deben- tures, with or without interest, for the purpose of carrying out the objects of the Fund.
(2) The bonds and debentures of the Committee shall be guar- anteed by the Central Government as to the repayment of the prin- cipal and the payment of interest, at such rate as may be fixed by the Central Government on the recommendation of the Committee at the time the bonds and debentures are issued.".
G. After section 17 of the principal Act, the following section shall be
inserted and shall be deemed always to have been inserted, namely: —
Insertion of new sec- tion 17 A.
"17A. Notwithstanding anything contained in any enactment for the time being in force relating to income-tax or wealth-tax, the Com- mittee shall not be liable to pay—
Exemption from liabi- lity to pay income- tax and wealth- tax.
(fl) income-tax in respect of its income, profits or gains;
and
(b) wealth-tax in respect of its net wealth,".
7. In section 18 of the principal Act, for the words "and thereupon all the property vested in the Committee shall vest in the Central Govern- ment.", the following shall be substituted, namely: —
Amend- ment of sec- tion 18.
"and thereupon—
(a) all the property vested in the Committee shall vest in
the Central Government; and
12 THE GAZETTE 6JF I^DIA EXTRAORDINARY [PART II—S"e. 1}8. In sub-section (2) of section 19 of the principal Act, after clause
(f), the following clause shall be inserted, namely: —
Amend- ment of sec- tion 19.
" (ff) the manner and terms of issue, sale and ^redemption of
bonds and debentures by the Committee;".
K. K. SUNDARAM, Secy, to the Gout, of India.