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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 1

PUBLISHED BY AUTHORITY

No. 45] NEW DELHI, FRIDAY, DECEMBER 8, 1978/AGRAHAYANA 17, 1900

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

MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS (Legislative Department) New Delhi, the 8th December, 1978/Agrahayana 17, 1900 (Saka)

The following Act of Parliament received the assent of the President on the 8th December, 1978, and is hereby published for general infor- mation:—

THE BRITANNIA ENGINEERING COMPANY LIMITED (MOKAMEH UNIT) AND THE ARTHUR BUTLER AND COMPANY (MUZAFFARPORE) LIMITED (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1978

No. 41 OF 1978

[8th December, 1978]

An Act to provide for the acquisition and transfer of the right, title and interest of the undertakings of Britannia Engineering Com- pany in relation to the Mokameh unit owned by it and the right, title and interest of Arthur Butler and Company in relation to the undertakings owned by it with a view to ensuring the conti- nued manufacture of railway wagons and other goods essential to the needs of the country in general and the Railways in particular, and for matters connected therewith or incidental thereto.

WHEHEAS Britannia Engineering Company at the Mokameh unit and Arthur Butler and Company were engaged in the manufacture of railway wagons and other goods;

AND WHEREAS as a result of the closure of the wagon and other under- takings owned by the companies aforesaid, there was a substantial fall in the manufacture of railway wagons and other goods;

AND WHEREAS for the purpose of bringing the closed works of the com- panies aforesaid into operation the management of the Mokameh unit of Britannia Engineering Company and the management of the under-

(527)

65 of 1951.

takings of Arthur Butler and Company were taken over by the Central Government under the Industries (Development and Regulation) Act, 1951;

AND WHIBEAS it is necessary to acquire the said wagon and other undertakings to ensure the continued manufacture of railway wagons and

other goods which are essential to the needs of the country in general, and the Railways in particular;

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

Republic of India as follows: —

CHAPTER I

PRELIMINARY

Short title and com- mencement.

1. (I) This Act may be called the Britannia Engineering Company Limited (Mokameh Unit) and the Arthur Butler and Company (Muza- ffarpore) Limited (Acquisition and Transfer of Undertakings) Act, 1978.

(2) The provisions of sections 27 and 28 shall come into force at once and the remaining provisions of this Act shall be deemed to have oome into force on the 1st day of April, 1978.

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

Definitions.

1 of 1958.

(a), "appointed day" means the 1st day of April, 1978; (b) "Arthur Butler and Company" means Messrs. Arthur Butler and Company (MuzafTarpore) Limited, a company within the mean- ing of the Companies Act, 1956, and having its registered office at 40, Strand Road, Calcutta, in the State of West Bengal;

1 of 1956.

(c) "Britannia Engineering Company" means Messrs, Britannia Engineering Company Limited, a company within the meaning of the Companies Act, 195C, and having its registered office at 3, Netaji Subhasth Road, Calcutta, in the State c5 West Bengal;

(d) "Commissioner" means the Commissioner of Payments

appointed under section 15;

(e) "Government company" means a company within the

1 of. 19E6.

meaning of section 617 of the Companies Act, 1956 and referred to in section 5 of this Act;

(f) "Mokameh unit" means ithe wagon and other under'takings owned by Britannia Engineering Company at Mokameh, in the State of Bihar;

(g) "notification" means a notification published in the Official

Gazette;

(h) "prescribed" means prescribed by rules made under this

Act;

(i) "specified date", in relation to any provision of this Act, means such date as the Central Government may, by notification, specify for the purpose o£ that provision and different dates may be specified for different provisions of this Act;

(j) "wagon and other undertaking" means the undertaking which

is engaged in the manufacture of railway wagons and other goods;

1 of 1956.

(k) words and expressions used herein and not defined but defined in the Companies Act, 1956, have the meanings, respectively, assigned to them In that Act.

CHAPTER II

ACQUISITION AND TRANSFER or MOKAMEH UNIT AND UNDERTAKINGS OF ARTHUR BUTLER AND COMPANY

3. On the appointed day,—

(i) "the Mokameh unit and the right, title and interest of Britannia Engineering Company in relation to the Mokameh unit; and

(ii) the undertakings owned by Arthur Butier and Company and the right, title and interest of Arthur Butler and Company in relation to the said undertakings,

shall, by virtue of this Act, stand transferred to, and shall vest In, the Central Government.

Vesting In the Central Govern- ment of Mokameh unit and under- takings of Arthur Butler and Company.

General effect of vesting.

4. (1) The Mokameh unit, and the undertakings of Arthur Butler and Company, referred to In section 3, shall be deemed to include all assets, rights, lease-holds, powers, authorities and privileges and all property, movable and immovable, including lands, buildings, work- shops, stores, Instruments, machinery and equipment, cash balances, cash in hand, reserve funds, investments and book debts pertaining to the Mokameh unit or, as the case may be, the undertakings of Arthur Butler and Company, 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—

(a) of Britannia Engineering Company, in relation to the Mokameh unit, or

(b) of Arthur Butler and Company, in relation to the under- takings owned by it,

whether within or outside India, and all books of account, registers and other documents of whatever nature relating thereto.

(2) All properties as aforesaid which have vested in the Central Government under section 3 shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, Hen and all other incumbrances affecting it, and any attachment, injunction or decree or order of any court or other authority, restricting the use of such properties in any manner or appointing any receiver in respect of the whole or any part of such properties 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 inti- mation 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 (?) or any other person holding any charge, Hen 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 amounts speclflprf in the First Schedule and also out of

the monies determined under section 8, 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, as the case may be.

(5) If, on the appointed day, any suit, appeal or other proceeding of whatever nature instituted or preferred by or against Britannia Engineering Company in relation to the Mokameh unijt, or by or against Arthur Butler and Company in relation to any undertaking owned by it, is pending, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason of the transfer of the Mokameh unit or, as ;the case may be, the undertakings of Arthur Butler and Company, or of anything contained in this Act, but the suit, appeal or other proceed- ing may be continued, prosecuted or enforced by or against the Central Government or the Government company, as the case may be.

Power of Central Govern- ment to direct vesting of Mokameh unit and the under- takings of Arthur Butler and ina

5. (1) Notwithstanding anything contained in section 3, the Central Gbvernment may, if it is satisfied that a Government company (whether in existence at the commencement of this Act or incorporated there- after) is willing to comply, or has complied, with such terms and cond* tions as that Government may think fit to impose, direct, by notification, that the Mokameh unit and the undertakings referred to in section 3, and the right, title and interest of Britannia Engineering Company in relation to the Mokameh unit, and the right, title and interest of Arthur Butler and Company in relation to the undertakings owned by it, which have vested in the Central Government under section 3, shall, instead of continuing to vest in the Central Government, vest in the Govern- ment company either on the date of the notification or on such earlier or later date (not being a date earlier than the appointed day) as may be specified in the notification.

Govern- ment com- pany.

(2) Where the right, title and interest in relation to the Mokameh unit and in relation to the other undertakings referred to in section 3, vest in a Government company under sub-section (1), the Government company shall, on and from the date of such vesting, be deemed to have become the owner of the Mokameh unit and of the undertakings of Arthur Butler and Company and all the rights and liabilities of the Central Gov- ernment in relation to the Mokameh unit and the undertakings of Arthur Butler and Company shall, on and from the date of such vesting, be deemed to have been the rights and liabilities, respectively, of the Gov- ernment company.

6. (1) Every liability of Britannia Engineering Company in relation to, the Mokameh unit, or of Arthur Butler and Company in relation to the undertakings owned by it, in respect of any period prior to the appointed day, shall bo the liability of Britannia Engineering Company, or Arthur¹ Butler and Company, as the case may be, and shall be enforce- able against such company and not against the Central Government or the Government company.

(2) 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,—

Britannia Engineer- ing Com- pany and Arthur Butler and Com- pany to be liable for certain prior liabilities,

(i) no liability of Britannia Engineering Company, in rela-

tion to the Mokameh unit, and

(ii) no liability of Arthur Butler and Company, in relation

to the undertakings owned by it,

in respect of any period prior to the appointed day, shall be en- forceable against the Central Government or the Government com- pany, as the case may be;

(b) no award, decree or order of any court, tribunal or other authority in relation to the Mokameh unit, or in relation to the un- dertakings owned by Arthur Butler and Company, passed after the appointed day in respect of any matter, claim or dispute, which arose before that day, shall be enforceable against the Central Gov- ernment or the Govetnment company, as the) case may be;

(c) no liability incurred before the appointed day by—

(i) Britannia Engineering Company, in relation to the

Mokameh unit, or

(ii) Arthur Butler and Company, in relation to the under-

takings owned by it,

for the contravention of any provision of law for the time being in force shall be enforceable against the Central Government or the Government comp'anyj as the case may be.

CHAPTER III

PAYMENT OF AMOGNI1

7. (I) For the transfer to, and vesting in, the Central Government, Payment of amounts under section 0,—

(a) of the Mokameh unit and the right, title and interest of

Britannia Enginsoring Company, in relation to that unit; and

(b) of the undertakings owned by Arthur Butler and Company, and the right, 'title and interest of Arthur Butler and Company, in relation to those undertakings,

t'^re shall be given by the Central Government to Britannia Engineer- ing Company and Arthur Butler and Company, in cash and in the- manner specified in Chanter VT, an amount equal to the amour c specified, res- pectively, in the First Schedule, against Britannia Engineering Company and Arthur Butler and Company.

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

ties of—

(i) Britannia Engineering Company, in relation to the Mokameh

unit, and

(it) Arthur Butler and Company, in relation to the undertakings

owned by it,

shall be met, in accordance with the rights and interests of the creditors of the respective company from the amount due, respectively, to Bri- tannia Engineering Company and Arthur Butler and Company, under sub-section (!)•

Payment of further amount.

65 of 1951 8. (1) For the deprivation of Britannia Engineering Company of the management of the Mokameh unit and for the deprivation of Arthur Butler and Company of the management of the undertakings owned by it, there shall be given, in case, by the Central Government to the res- pective company, in addition to the amount specified in section 7, an amount computed at the rate of ten thousand rupees per annum for the period commencing on the date on which the management of such unit or, as the case may be, such undertakings, was taken over by the Central Government under the Industries (Development and Regulation) Act, 1951 and ending with the appointed day.

(2) In consideration of the retrospective operation of the provisions of sections 3, 4 and 6, there shall also be given, in cash, by the Central Government to Britannia Engineering Company and to Arthur Butler and Company an amount equal to an amounte calculated at the rate of ten thousand rupees per annum for the period commencing on the ap- pointed day and ending with the date on which this Act receives the assent of the President.

(3) The amount specified in section 7 and the amount computed under sub-sections (1) and (2) shall carry simple interest at the rate of four per cent per annum for the period commencing on the appointed day, and ending with the date on which the payment of amount is made by the Central Government to the Commissioner.

(4) The amounts determined in accordance with the provisions of sub-sections (3), (2) and (3) shall be given to Britannia Engineering Company and to Arthur Butler and Company in addition to the amount specified in the First Schedule.

CHAPTER IV

MANAGEMENT, ETC., OF MOKAMEH UNIT AND THE UNDERTAKINGS OF ARTHUR BUTLER AND COMPANY

9. On the appointed day, the general superintendence, direction, con- trol and management of the affairs and business of the Mokameh unit and of the undertakings owned by Arthur Butler and Company shall—

(a) where a direction has been made by the Central Government under section 5, vest in the Government company specified in such direction, or

Manage- ment, etc^ oi Moka- meh unit and the under- takings of Arthur Butler and Company.

(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 Britannia Engineering Company is authorised to exercise and do in relation to its Mokameh unit or, as the case may be, Arthur Butler and Company is authorised to exercise and do in relation to the undertakings owned by it.

10. (I) Every person, in whose possession or custody or control—

0) the Mokameh unit, or (ii) any undertaking o£ Arthur Butler and Company, or

Duty to deliver possessioit of Mo- kameh unit and under- takings of Arthur- Butler and Company.

any part of such unit or undertaking or any machinery, instrument or other movable assets forming part of such unit or undertaking, may be immediately before the appointed day, bhall forthwith deliver possession of the Mokameh unit or such undertaking 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 Central Government or the Government company may specify in this behalf.

(2) Every person who has, on the appointed day, in his possession or under his control any assets, books, documents or other papers relating to the Mokameh unit or any undertaking owned by Arthur Bailer and Company, which has vested in the Central Government or a Government company under this Act, and which belong to Britannia Engineering Company or, ag the case may be, Arthur Butler and Company, or would have so belonged if the Mokameh unit, or, as the case may be, the under- takings owned by Arthur Butler and Company, had not vested in the Central Government or the Government company, shall be liable to account for the said assets, books, documents and other papera to the Central Government or the Government company and shall deliver them up to the Central Government or the Government 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 Mokameh unit and the under- takings of Arthur Butler and Company which have vested in it under section 3.

[

Duty of the com- panies to furnish particu- lars.

11. Britannia Engineering Company and Arthur Butler and Company shall, within such period as the Central Government may allow in this behalf, furnish to that Government a complete inventory of all its pro- perties and assets, as on the appointed day, pertaining to the Mokameh unit or, as the case may be, the undertaking8 owned by Arthur Butler and Company which has or have vested in the Central Government under section 3, and, for this purpose the Central Government or the Govern- ment company shall afford Britannia Engineering Company or Arthur Butler and Company all reasonable facilities.

12. On the vesting in the Central Government or the Government

company of the management of the Mokameh unit or of any undertakings owned by Arthur Butler and Company, all persons in charge of the management of the Mokameh unit or, as the case may be, the undertake ings owned by Arthur Butler and Company immediately before the date of such vesting, shall be bound to deliver to the Central Government or the Government company or to such person or body of persons as the Central Government or the Government company may specify in this behalf, all assets, books of account, registers or other documents in their custody relating to the Mokameh unit or, as the case may be, any under- taking owned by Arthur Butler and Company.

Duty of persons in charge of manage- ment of Mokameh unit or under- takings of Arthur Butler and Com- pany to deliver assets, etc.

CHAPTER V

PROVISIONS RELATING TO EMPLOYEES OI MOKAMEH UNIT AND OF AKAHUK

BUTLER AND COMPANY

13. (1) EVery person who has been, immediately before the appointed

day, employed by—

(i) Britannia Engineering Company, in connection with the Employ- ment of employees to con- tinue.

Mokameh unit, or

(ii) Arthur Butler and Company, in connection with any under- taking owned by it,

shall become, on and from the appointed day, an employee of the Central Government or, as the case may be, oi the Government company, and shall hold office or service under the Central Government or the Govern- ment company, as tne case may be, with the same rights and privileges as to pension, gratuity and other mat lets as would have been admissible to him if there had been no ;>uch vesting and shall continue to do so unless and until his employment under the Central Government or the Government company, as the case may be, is duly terminated or until his remuneration and other conditions of service are duly altered by the Central Government or the Government company, as the case may be.

14 of 1947.

(2) Notwithstanding anything¹ contained in the Industrial Disputes Act, 1947, or in any other law tor the time being in force, the transfer of the services of any officer or other person employed in the Mokameh unit or any undertakings owned by Arthur Butler and Company, to the Central Government or the Government company shall not entitle such officer or other employee to any compensation under this Act or any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority.

Provi- dent fund and other funds,

14. (2) Where Britannia Engineering Company or Arthur Butler and Company has established a provident fund, superannuation fund, welfare fund or other fund for the benefit of persons employed in the Mokameh unit or, as the case may be, any of the undertakings owned by Arthur But- ler and Company, the monies relatable to the employees, whose services have become transfeired by or under this Act to the Central Government or the Government company shall, out of the monies standing, on the appointed day, to the ciedit of such provident fund, superannuation fund, welfare fund or other funds, stand transferred to, and vest in, the Central Government or the Government company, as the case may be.

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

CHAPTER VI

COMMISSIONER OF PAYMENTS

15. (1) The Central Government shall, for the purpose of disbursing the amount payable under sections 7 and 8 to Britannia Engineering; Company and to Arthur Butler and Company, by notification, appoint a Commissioner of Payments.

Appoint- ment of Com- missioner of Pay- ment!.

(2) The Central Government may appoint such qther persons as it may think fit to assist the Commissioner and thereupon the Commissioner mjy authorise one or more of such persons also to exercise all or any of the pcwers exercisable by him under Xhis Act and different persons may oc authorised to exciciso different pcwers.

Payment by Cen- tral Gov- ernment to the Commis- sioner.

Certain powers of the Central Govern- ment or Govern- ment com- pany.

liability has been discharged by the Central Government or the Govern- ment company.

(3) Save as otherwise provided in this Act, the liabilities of Britannia Engineering Company in relation to the Mokameh unit, or of Arthur Butler and Company in relation to any of the undertakings owned by it, in respect of any transaction prior to the appointed day, which have not been discharged on or before the specified date, shall be the liabilities of Britannia Engineering Company or Arthur Butler and Company, as the case may be.

18. Every person having a claim against Britannia Engineering Com- pany In relation to the Mokameh unit, or against Arthur Butler and Com- pany in relation to the undertakings owned by it, shall prefer such claim before the Commissioner within thirty days from the specified date:

Claims to be made to the 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.

Priority of claims.

19. The claims arising out of the matters specified in the Second Sche- dule shall have priorities in accordance with the following principles, namely: —

(a) category I shall have precedence over all categories and cate- gory II shall have precedence over category III and so on;

(b) the claims specified in each of the categories, except category IV, shall rank equally and be paid in full, but, if the amount is in- sufficient to meet such claims in full, they shall abate in equal pro- portion and be paid accordingly;

(c) the liabilities specified in category IV shall be discharged subject to the priorities specified in this section in accordance with the terms of the secured loan and the priority, inter se, of such loans; and

(d) the question of discharging any liability with regard to a matter specified in a lower category shall arise only if a surplus is left after meeting all the liabilities specified in the immediately higher category.

Examina- tion of claims.

20. (I) On receipt of the claims made under section 18, the Commis- sioner shall arrange the claims in the order of priorities specified in the Second Schedule and examine the same in accordance with such order of priorities.

(2) If on an examination of the claim, the Commissioner is of opinion that the amount paid to him under this Act is not sufficient to meet the liabilities specified in any lower category, he shall not be required to examine the claim in respect of such lower category.

Admission or rejection of claims.

21. (7) After examining the claims with reference to the priorities Bet out in the Second Schedule, the Commissioner shall fix a date on or before which every claimant shall file the proof of his claim failing which he will bo excluded from the benefit of the disbursement 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 having circulation in the major part of the country and one issue of such daily newspaper in the regional language as the Commis- sioner may consider suitable, and every such notice shall call upon the claimant to file the proof of his claim with the Commissioner within the period specified in the advertisement.

(3) Every claimant who fails to file the proof of his claim within the period specified by the Commissioner shall be excluded from the dis- bursement made by the Commissioner.

(4) The Commissioner shall, after such investigation as may, in his opinion, be necessary and after giving Britannia Engineering Company or, as the case may be, Arthur Butler and 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- cedure in all matters arising out of the discharge of his functions, includ- ing the place or places at which he may hold his sitting and shall, for the purpose of making any investigation under this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908, while trying a suit, in respect of the following matters, namely: —

5 of 1908.

(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 material object producible as evidence;

(c) the reception of evidence on affidavits; (d) the issuing of any commission for the examination of wit- nesses.

46 of I860.

(6) Any investigation before the Commissioner shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Penal Code and the Commissioner shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.

2 of 1974.

(7') A claimant who is dissatisfied with the decision of the Commis- sioner may prefer an appeal against the decision to the principal court of original jurisdiction within the local limits of whose jurisdiction the Mokameh unit or, as the case may be, the registered office of Arthur Butler and Company is situated:

Provided that where a person, who is a Judge of a High Court is appointed to be the Commissioner, such appeal shall lie to the High Court of the State in which the registered office of Britannia Engineer- ing Company or, as the case may be, Arthur Butler and Company 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 Commis- sioner.

22. After admitting the claim under this Act, the amount due in res- pect of such claim shall be paid by the Commissioner to the person or persons to whom such sums are due and on such payment the liability of Britannia Engineering Company in relation to the Mokameh unit, or of Arthur Butler and Company in respect of any claim relating to the undertakings owned by it shall stand discharged.

23. (1) If out of the monies paid to him in relation to the Mokameh unit or in relation to any undertaking owned by Arthur Butler and Company there is a balance left after meeting the liabilities as specified in the Second Schedule, the Commissioner shall disburse such balance to Britannia Engineering Company, or as the case may be, to Arthur Butler and Company.

Disburse- ment Of amounts to Britannia Engineer- ing Com- pany and Arthur Butler and Com- pany.

(2) Where the possession of any machinery, equipment or other pro- perty has vested in the Central Government or the Government company under this Act, but such machinery, equipment or other property does not belong to Britannia Engineering Company or, as the; case may be, Arthur Butler and Company, it shall be lawful for the Central Govern- ment to continue to possess such machinery or equipment or other pro- perty on the same terms and conditions under which they were possessed by Britannia Engineering Company or, as the case may be, Arthur Butler and Company, immediately before the appointed day.

24. Any money paid to the Commissioner which remains undisbursed or unclaimed for a period of three years .from the last date 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 Govenir memt by the person entitled to such payment and shall be dealt with as if such transfer had not been made, the order, if any, for payment of the claim being treated as an order for the refund of the revenue.

Undis- bursed or unclaimed amount to be deposit- ed with the Gene- ral Re- venue Account.

CHAPTER VII

MISCELLANEOUS

Act to have over- riding effect.

25. 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.

Contracts to ceaae to have effect un- less ratified by the Central Govern- ment or the Gov- ernment company.

26. (1) Every contract entered into by Britannia Engineering Com- pany in relation to the Mokameh unit, or Arthur Butler and Company in relation to any of the undertakings owned by it, which has vested in the Central Government under section 3, for any service, sale or supply and In force immediately before the appointed day, shall, on and from the expiry of 'one hundred and eighty days from the date on which this Act receives the assent of the President, cease to have effect unless such contract is, before the expiry of that period, ratified, in writing, by the Central Government, or the Government company, and in rati' fying such contract, the Central Government or the Government com- pany may make such alteration or modification therein as It may think fit:

Provided that the Central Government or the Government company 3hall not omit to ratify a contract and shall not make any alteration or modification in a contract unless it is satisfied that such contract is unduly oneroua or has been entered into in bad faith or is detrimental to the interests of, the Central Government or the Government com- pany.

(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 after giving the parties to the contract a reasonable opportunity of being heard and except after recording in writing its reasons for refusal to ratify the contract or for making any alteration or modification therein.

27. Any person who,—

Penalties.

(a) having in his possession, custody or control any property forming part of the Mokameh unit, or any of the undertakings owned by Arthur Butler and Company, wrongfully withholds such property from the Central Government or the Government company; or

(b) wrongfully obtains possession of, or retains, any property forming part of, the Mokameh unit, or any of the undertakings owned by Arthur Butler and Company; or

(c) wilfully withholds oi fails to furnish to the Central Gov- ernment or the Government company or any person or body of persons specified by that Government or the Government company, as the case may be, any document relating to 'the Mokameh unit,, or any of the undertakings owned by Arthur Butler and Company, which may be in his possession, custody or control; or

(d) fails to deliver to the Central Government or the Govern- ment company or any person or body of persons specified by that Government or the Government company, any assets, books of account, registers or other documents in his possession, custody or control relating to the Mokameh unit, or any of the undertakings owned by Arthur Butler and Company; or

(e) wrongfully removes or destroys any property forming part of the Mokameh unit, or any of the undertakings owned by Arthur Butler and Company or prefers any claim under this Act which he knows or has reason 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.

Offences by com- panies. 28: (1) "Where an offence under this Act has been committed by a company, every person who, at the time the offence 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 (2). where any offence under this Act has been committed by a company and it is proved that the offence hay been committed with the consent or conni- vance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, mana- ger, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Eocplanatlon.—For the purposes of this section,—

(a) "dompany" means any body corporate and Includes a firm or other association of individuals; and

(6) "director", in relation to a firm, means a partner In tne firm.

Protection oi' action taken in good faith.

29. (i) No suit, prosecution or other legal proceeding shall lie against the Central Government or any officer of that Government or the Gov- ernment company or other person authorised by that Government or the Government company for anything which is Jn good faith done or intended to be done under this Act.

(2) No suit or other legal proceeding shall lie against the Central Government or any of its officers or other employees or the Govern- ment company or any officer or other perston authorised by that com- pany 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.

Dele- gation of powext.

30. (I) The Central Government may, by notification, direct that all or any of the powers exercisable by it under this, Act, other than the powers conferred by sections 31 and 32, may also be exercised by such person or persons as may be specified in the notification.

(2) Whenever any delegation of power is made under sub-section, (1), the person to whom such power has been delegated shall act under the direction, control and supervision of the Central Government.

31. (I) The Central Government may, by notification, 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 powers, such rules may provide for all or any of the following matters, namely: —

(a) the time within which, and the manner in which, an inti- mation referred to in sub-section (3) of section 4 shall be given;

(b) the manner in which the monies in any provident fund or other fund, referred to in sub-section (2) of section 14 shall be dealt with;

(c) 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 made, before each House of Parliament while it is in session for a total period 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 tha session or successive sessions aforesaid, both Houses agree in making any modification 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, ag the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

32. If any difficulty arises in giving effect to the provisions of thJ" Act, the Central Government may, by order, not inconsistent with th" provisions 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.

33. It is hereby declared that this Act is for giving effect to the policy of the State towards securing the principles specified in clausie (b) of irticle 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.

THE FIRST SCHEDULE

(See sections 4, 7, 8 and 16)

Amount

Name of the company

S. No.

(Rupees in lakhsi

152.85

The Britannia Engineering Company

137.70

1 2

Arthur Bntler and Companv

THE SECOND SCHEDULE

(See sections 19, 20, 21 and 23)

ORDER or PRIORITIES

CMegory J

(i) Employees' dues on account of arrears of> tripartite settles ment for the period from the 1st day of January, 1975 to the 31st day of May, 1975.

(ii) Employees' dues on account of unpaid salaries, wages, provi- dent fund, Employees' State Insurance contribution or premium re- lating to Life Insurance Corporation of India.

Category II

Secured loans from nationalised banks and secured loans from In- dustrial Reconstruction Corporation of India for the post-take-over man- agement period. Category III

Central Government loans for the post-take-over management period.

Category IV

Secured loans from nationalised banks and secured loans from finan- cial institutions for the pre-take-over management period.

Category V

Revenue, taxes, cesses, rates or other dues to Centtal Government, State Government and local authorities or State Electricity Boaid for the pre-take-over management period.

Category VI

Trade and other creditors for the pre-take-over management period.

R. V. S. PERI SASTRI, •Secy, to the Govt. of India-

PRINTED BY THE GENERAL MANAGER, GOVERNMENT Ofr INDIA PRESS, MINTO ROAD, NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, 1 9 78