Subject NOT available

PAYMENT OF AMOUNTS

Payment of

amount.

8. For the transfer to, and vesting in, the Central Government, under stc- ttoo 3, of the undertakings "f each of the two companies, and the right, title and interest of- each of the two companies i.n relation to its undertakings, there shall be ptoid by the Central Government to each of the two companies, in cash and in the manne; specified in Chaptei VI, an amount equal to the amount spe- cified against the name of siiuh company In the First Schedule.

Payment of fur- ther amounts.

*5"f 1951 9. (1) For the deprivation <*f the two companies of the management of their undertakings during the period commend." on the date on which the undertakings! of each such company was taken over in pursuance of the orders made by the Central Government under the provisions of the Industries (Development and Regulation) Act, 1951, and ending on the appointed day, there shall be paid by the Central Government to each of the companies in cash, an amount of rupees fifty thousand.

(2) The amount referred to In section 8 and the amount specified in sub- section (1) shall carry simple Interest at the rate of four per cent, per annum for the period commencing on the appointed day end ending on the date on which payment of such amounts is made by the Central Government to (he Commissioner.

(3) The amount referred to in sub-section (1) and the amount determined in accordance with the provisions of subsection (2) shall be given by the Central Government to the two companies in addition to the amouirt specified in section 8.

(4) For the removal of doubts, it is hereby declared that the liabilities of either of the two companies in relation to its undertakings which have vested in the Central Government under section 3, shall be discharged from the amount referred to in section 8, and also from the amount specified in sub-section (1) and the amount determined under sub-section (2), in accordance with the rights and interests of the creditors of the two companies.

CHAPTER TV

MANAGEMENT, ETC. OF THF. UNDERTAKINGS OF THE TWO COMPANIES

1*. The general superintendence, direction, control and management of the affairs and business of the undertakings of each of the iwo companies, the right, title and interest in relation to which have vested in the Central Govern- ment under section 3, shall,—

(a) where a direction has been given by the Central Government

Manage- ment, etc., of the under- takings of the two com- panies.

under sub-section CM of section 6, vest on and from the date specified in such direction, in the existing Government company specified thereto; or

O) where a declaration has been made under sub-section (1) of

section 7, vest, on and from the date of such declaration, in the new Government company specified therein,

and thereupon the existing, or new. Government company so specified, shall be entitled to exercise, to the exclusion of all other persons, all such powers and do all such things as either, or both, of the two companies, is or are. authorised to exercise and do in relation to its or their undertaking

11. ( I) On the vesting of the management of the undertakings of the two compaaies in an existing, or. a new. Government company, all persona in charge of the management of the undertakings of either of the two companies immediately before such vesting shall be bound to deliver lo such Government company, all assets, books of account, registers and other documents in their custody relating to the undertakings.

Duty of persons in charge of manage- ment of under- takings of the two com- panies to deliver all asaeti, etc. (2) The Central Government may issue such directions as it may deem desirable in the circumstances of the case to the existing, or new, Government company and such Government company may also, if it is considered necessary so to do, apply to the Central Government at any time for instructions as to the manner in which the management of the undertakings of the two companies snail be conducted or in relation to any other matter arising in the course of such management.

Duty of person* to ac- count for assets, etc., In their pas- session.

VL (1) Any person who has, on the appointed day, in his possession or uniicr his control any assets, books, documents or other papers relating to the undertakings owned by either of the two companies, which have vested in the Central Government or in an existing, or a new. Government company under this Act, shall be liable to accouni for the said assets, books, documents and other papers to the Central Government or the existing, or new, Govern- ment company, as the case may be, and shall deliver them to the Central Gov- ernment or the existing, or new, Government company or to such person or persons as the Central Government or the existing, or new, Government com- pany may specify in this behalf-

(2) The Central Government or the Government company aforesaid may take, or cause t0 be taken, all necessary steps for securing possession of the undertakings of the two companies which have vested in the Central Govern- ment or the Government company under this Act.

(3) The two companies shall, within such period as the Central Govern- ment may allow in this behalf, furnish to that Government a complete inven- tory of all their properties and assets, as on the appointed day, pertaining to th© undertakings which have vested in the Central Government under section 3, and, for this purpose, the Central Government or the Government company aforesaid shall afford to the two companies all reasonable facilities.

CHAPTER V

PROVlSdONS RELATING TO EMPLOYEES OF THE TWO COMPANIES

Continu- ance • of employees 13. (7) Every person who has been, immediately before the appoint©* day, employed in any undertaking of either of the two companies shall become,—

(a) on and from the appointed day, an employee of the Central

Government, and

(b) where the undertakings of the two companies are directed, under section 6 or under section 7, to vest, In an existing, or a n"w, Government company, an employee of such Government company on and from the date of such vesting,

and shall hold office or service under thc Central Government or the existing, or new. Government company, as the case may be, with the rights and privi- leges as to pension, gratuity and other matters, admissible to him immediately

before the appointed day, as modilied by the Memorandum of Settleawut signed by th© representatives ol the management and the employees or. eaon of me two companies on the lUth day ot Jrebruaiy, iy"4t and shall continue to do so unless and until nis employment under tne Central Governmmt or toe existing, or new, Government company, as the case may be, is duly termi- nated or until his remuneration and other conditions ot service are duly altered by the Central Government, or the existing, or mew, Government company, at toe case may be.

14 "i 1947.

(-) .Notwithstanding anything contained in the Industrial Disputes Act, iy*7, or in any other law for the tune being in force, the transfer ot th" services of any oliicer or other person employed in any undertaking ot either ot the two companies, to the Central Government or the existing, or now, Government company, shall not entitle such officer or other employee to any compensation under ihis Aci or any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority.

Provid- ent fund and other funds.

14. (2) Where either of the two companies has established a piovide.

(2) The moneys which stand transferred under sub-section (I) to the Central Government or the existing, or new, Government company, as the case may be, snail be dealt with by that Government or the existing, or new, 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 die

amounts payable under section 8 and 9 to each ot' the two companies, by notifica- tion, appoint a Commissioner of Payments.

Appoint- ment of comnus- Nioner of Pig- ments.

(2) The Central Government may appoint siidi 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 niay be authorised to exercise different powers.

(3) Any person authorised by the Commissioner to exercise any of tht powers exercisable by the Commissioner 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 persons ap- pointed under this section shall be defrayed out of the Consolidated Fund of India.

16. (1) The Central Government shall, within thirty days from the specified date, pay in cash to the Commissioner, for payment to each of the two companies,—

(a) an amount equal to the amount specified against the name of such

company in the First Schedule; and

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

(h) an amount equal to the amount^ payable to each of the two

companies under section 9.

(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 and the said deposit account shall be operated by the Commissioner.

(3) Separate records shall be maintained by the Commissioner in respect of the undertakings of each of the two companies in relation to which payments have been made to him under this Act,

(4) 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 two companies.

Certain powers of Central Govern- ment or

existing, 17. (1) The Central Government or the existing, or new, Government com- pany, as the case may be, shall be entitled to receive up to the specified date, to the exclusion of all other persons, any money due to either of the two companies in relation to its undertakings which have vested in the Central Government or the existing, or new, Government company, as the case may be, and realised after the appointed day notwithstanding tint the realisation pertains to a period prior to the appointed day.

or new. Govern- ment com- pany.

(2) The Central Government, or the existing, or new, Government company, as the case may be, may make a claim to the Commissioner with regard to every payment made by it after the appointed day, for discharging any liability of either of the two companies, not being any liability specified in sub-section (2) of section 5, in relation to any period prior to the appointed day, and every such claim shall have priority, in accordance with the priorities attaching, under this Act, to the matter in relation to which such liability has been discharged by the Central Government or the existing, or new, Government company.

(3) Save as otherwise provided in this Act, the liabilities of either of the two companieE 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 ihe respective company.

18. Every person having a claim against either of the two companies with c Claims to be regard to any of the matters specified in the Second Schedule pertaining to any * made to undertakings owned by it, shall prefer such claim before the Commissioner within " the thirty days from the specified date: Commis c sioner.

Provided that if the Commissioner is satisfied that the claimant was prevented S¹

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.

19. The claims arising out of the matters specified in the Second Schedule ^

Priority >f claims.

shall have priorities in accordance with the following principles, namely:—

(a) Category I shall have precedence over all other categories and

Category II shall have precedence over Category III, and so on;

(W the claims specified in each of the categories shall rank equally and be paid in full, but, if the amount is insufficient to meet such claims in full, they shall abate in equal proportions and be paid accordingly, and

(c) 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. (1) On receipt of the claims made under section 18, the Commissioner snail arrange the claims in the order of priorities specified in the Second Schedule and examine the same in accordance with such order.

(ij) If, on examination of the claims, the Commissioner is of opinion that the amount paid to him under this Act is not sufficient to meet the liabi- lities spocified in any lower category, he shall not be required to examine tha claims in respect of such lower category.

21. (1) After examining the claims with reference to the priorities speci- fied in the Second Schedule, the Commissioner shall fix a date on or before which every claimant shall file the proof of his claim.

Admis- sion or rejec- tion of claims.

(2) Not less than fourteen days' notice of the date so fixed shall be given by advertisement in one issue of any daily newspaper in the English language having ittrculation in the major part of the country and in one issue of any daily newspaper in such regional language as the Commiseioner 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 hi the adver- tisement

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

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

5 of 1908.

(5) The Commissioner shall have the power to regulate his own procedure, in all matters arising out of the discharge of his functions, including the place or places at which he may hold his sittings and shall, for the purpose of mak- ing any investigation under this Act, have the same powers as are vested hi a civil court under the Code of Civil Procedure, 1908, while trying a euit. 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 material object producible as evidence;

(c) the reception of evidence on affidavits;

(d) the issuing of any commission for the examination of witnesses.

43 o* 1890. 2 of 1974.

(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 Fenal 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.

(7) A claimant who is dissatisfied with the decision of th.j Commissioner may prefer an appeal against such decision to the principal civil court of original jurisdiction within the local limits of whose jurisdiction the registered office of the concerned 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 exercising jurisdiction over the place in which the registered olfice of t1"e concerned com- pany is situated and such appeal shall be heard and disposed of by not less than two Judges of that High Court.

22. After admitting a claim under this Act, the amount due in respect of such claim shall be paid by the Commissioner to the person or persons to whom such amount is due, and on such payment, the liability of each of the two companies in respect of such claim shall stand discharged.

23. (1) If, out of the moneys paid to him in relation to the undertakings of either of the two companies, there is a balance left after meeting the liabilities ns specified in the Second Schedule, the Commissioner shall disburse such balance to the concerned company.

Disburse- ment of money by Commis- sioner. Disburse- ment of amounts to the compa- nies.

(2) Where the possession of any machinery, equipment Or other property has vested in the^ Central Government or the existing, or new, Government company under this Act, but such machinery, equipment or other pro- perty does not belong to either of the two companies, it shall be lawful for the Central Government or the existing, or new, Government company, as the case may be, to continue to possess such machinery or equipment or other property on the same terms and conditions under which they were possessed by either of the two companies immediately before the appointed day.

24. Any money paid to the Commissioner which remains undisbursed or unclaimed on the date immediately preceding the date on which the office of the Commissioner is finally wound up, shall be transferred by the Commissioner, before his office is finally wound up, 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 transfer had not been made, and the order, if any, for the payment of the claim being treated as an order for the refund of revenue.

CHAPTER VII

MISCELLANEOUS

25. The provisions of this Act shall have effect notwithstanding any-

Act to have over- riding effect.

thing inconsistent therewith contained in any other law for the time being in : force or in any instalment having effect by virtue of any law, other than this < Act, or in any decree or order of any court, tribunal or other authority.

aew, Gov- ernment

Provided that the Central Government or the existing, or new, Government company shall not omit to ratify a contract and shall not make any alteration or modification in a contract—

(a) unless it is satisfied that such contract is unduly onerous, or has been entered into in bad faith, or is detrimental to the interests of the Central Government or such Government company; and

(b) except after giving the parties to the contract a reasonable oppor- tunity 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.

Penalties.

27. Any person who,—

(a) having in 'his possession, custody or control any property farm- ing part of any undertaking of either of the two companies, wrongfully withholds such property from the Central Government or the existing, or new, Government company; or

(b) wrongfully obtains possession of, or retains, any property form- ing part of any undertaking of either of the two companies; or

(c) wilfully withholds or fails to furnish to the Central Government or the existing, or new, Government company or any person or body of persons specified by that Government or Government company, any docu- ment relating to ouch undertaking, which may be in his possession, custody or control; or

(d) fails to deliver to the Central Government or the existing, or new. Government company, as rhe case may be, or any person or body of persons specified by that Government, or Government company, any .assets, books of account, registers or other documents in his possession, custody or control, relating to the undertakings of either of the two companies; or

(e) wrongfully removes or destroys any property forming part of any undertaking of either of the two companies or prefers any claim 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.

Offences Hy 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 anv such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due dilieence to prevent the commission of such offence.

(2") Notwithstanding anvthinc contained in snb-scction (1). where anv offence under this Act has been committed bv a company and it is proved that the offence has been committed with the consent or connivance of. or in attributable to anv neelect on the part of, anv director, manager, secretary pr other officer of the company, such director,, manafier. secretary or other

officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.—For the purposes of this section,—

(a) "company" moans any body corporate and includes a firm <* other association of individuals; and

(b) "director'¹, in relation to a firm, means a partner in the firm.

29. (1) No suit, prosecution or other legal proceeding shall lie against the Central Government or the existing, or new, Government company or any officer or other employee of that Government or the Government company or any person authorised by that Government or Government company for anything 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 Govern- ment or the existing, or new, Government company, or any officer or other employee of that Government or Government company or any person authorised by that Government or Government company 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.

Delega- tion of powers 30- CO The Central Government may, by notification, direct that all or any of the powers cxercisable by it under this Act, other than the powers conferred by this section, section 31 or section 32, may ulso 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. (1) 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 foregoing power, such rules may provide for all or any of the following matters, namely: —

(a) the time within which, and the manner in which, an intimation referred to in subsection (3) of section 4 shall be given;

(b) the manner in which the moneys in any provident fund or other fund referred to in section 14 shall be dealt with;

(c) any other matter which is required to be, or may be, prescribed.

(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 the session or the 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, as 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 this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the difficulty:

Power to re- move diffi- culties, Provided that no such order shall be made after the expiry of a periqd.

of two years from the appointed day,

4 of 1984.

33. (1) The Tnchek Tyres Limited und National Rubber Manufacturers Reptal and saving.

Limited (Nationalisation) Ordinance, 1984, is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the cor- responding provisions of this Act.

THE FIRST SCHEDULE

[See. sections 4(4), 8 and 16(1)]

SI. No. Name of the Company Amount

(Rupees in lakhs)

1. Inchek Tyres Limited

330.40

2. National Rubber Manufacturers Limited 159-64

THE SECOND SCHEDULE

[See sections 18, 19, 20(1), 21.(1) and 23(1)]

ORDER OF PRIORITIES FOR THE DISCHARGE OF LIABILITIES OF THE TWO COMPANIES

Category I—

(a) Wages, salaries and other dues payable to the employees of

the companies.

(b) Arrears in relation to contributions to be made by the com- panies to the provident fund. Employees' State Insurance Fund, Life Insurance Corporation premium and any other arrear under any law for the time being in force.

Post-take-over management period

Category 11—

Principal amount of loans advanced by—

(a) the Central Government;

(b) a State Government;

(c) banks and public financial institutions;

(d) any other sources.

Category III—

(a) Any credits availed of by the companies for the purpose of carrying on any trading or manufacturing operations, other than the liabilit:es specified in sub-section (2) of section 5.

(b) Any dues of State Electricity Boards or other Government and semi-Government institutions against supply of goods or services, other than the liabilities specified m sub-section (2) of section 5.

(c) Arrears of interest on loans and advances.

Category IV—

(a) Revenue, taxes, cesses, rates or other dues to Central Gov-

ernment, a State Government or any local authority.

(b) Any other dues,

Pre-take-over management period

Category V—

Principal amount of secured loans advanced by—

(a) the Central Government;

(b) a State Government;

(c) banks and public financial institutions

Category VI—

Princpal amount of 'unsecured loans advanced by—

(a) the Central Government;

(b) a State Government;

(c) banks and public financial institutions;

(d) any other sources.

Category Vll—

(a) Any credits availed of by the companies for the purpose of carrying on any trading or manufacturing operations.

(b) Any dues of State Electricity Boards or other Government and semi-Government institutions ogainst supply of goods or services.

(c) Arrears of interest on loans and advances.

(d) Revenue, taxes, cesses, rates or other dues to Central Gov- ernment, a State Government or any local authority.

(e) Any other loans or dues.

STATEMENT OF OBJECTS AND REASONS

The Inchek Tyres Limited commenced production of automobile tyres and tubes in Kakinara (West Bengal) in 1963. The undertaking started showing unfavourable operational results after 1970 and by June 1977 the company had an accumulated l°ss of Rs. 8.9 crores as against the paid up capital of Rs. 3 crores. The management of the undertaking was taken over under the Industries (Development and Regulation) Act, 1951, on the 13th April, 1978. The undertaking employs about 1,380 persons.

2. The National Rubber Manufacturers Limited, Calcutta, have two units. The unit at Tangra (Calcutta) produces cycle tyres, tubes and rubbe* goods like fan and V belts, transmission and conveyor belts, hoses, etc., and the other unit at Kalyani produces reclaimed rubber. In ear\y 1970s, the production, at both the units was affected due to labour trouble, erratic power supply, shortage of certain raw materials and pcor quality of the finished products. By March 1977, the com- pany had an accumulated loss of Rs. 4.25 crores as against the paid up capital of Rs. 1.30 crores. The management of the Tangra unit was taken aver by the Government under the Industries (Development and Regulation) Act, 1951, on the 23rd December, 1977, and that of the Kklyani unit on the 10th February, 1978. The company employs about 3,120 persons.

3. A common Board of Management was appointed as the "autho- rised person" under the Industries (Development and Regulation) Act, 1951, Jor both the undertakings. However, operational results of the undertakings continued to be unfavourable even after the take-over of management for various Teasons. Rehabilitation of the undertakings required large investments for repair, replacement, modernisation and change in product mix. It was not possible for government to arrange for such investments without nationalisation of the undertakings. The undertakings could not also generate adequate resources even for current operations for payment of wages. The accumulated losses soared to Rs. 25.81 crores in the Inchek Tyres and to Rs. 18.74 crores in Nationul Rubber Manufacturers by 31st March, 1982. The revival of these undertakings, restructuring the capital base and the payment of past liabilities of these companies were, therefore, considered to be an imme- diate necessity. Among the various alternatives, nationalisation 6f the undertakings of the companies was considered to be the only acceptable alternative to achieve this process quickly, followed by a major renova- tion and modernisation programme involving substantial capital ex- penditure. Banks and financial institutions which had been nursing the undertakings found it no longer possible to finance its losses. The ope- rationa in the undertakings had come to a standstill. In view of these circumstances, it was considered necessary in the public interest to immediately acquire the undertakings of the Inchek Tyres Limited and the National Rubber Manufacturers Limited so that the undertakings could restart operations and the revival and modernisation programmes

may be implemented early to avoid further losses and deterioration in Ihe assets of the undertakings. The nationalisation of the undertakings would also save about 4,500 workers from unemployment. The Incheck Tyres Limited and National Rubber Manufacturers Limited (Nationalisa- tion) Ordinance, 1984 (4 of 1984), was accordingly promulgated by the President on the 14th February, 1984. The said Ordinance, apart from providing for the acquisition of the undertakings of the two companies and vesting the same in an existing or a new Government company, provided for payment of, amounts to the companies for the acquisition, appointment of a Commissioner of Payments for the purpose of dis- bursing the amounts to the companies and other incidental and conse- quential matters.

4. The Bill seeks to replace the aforesaid Ordinance.

NEW DELHI; NARAYAN DATT TIWARI.

The 21th February, 1984.

PRESIDENT'S RECOMMENDATION UNDER ARTICLE 117 OF TI

CONSTITUTION OF INDIA

[Copy of letter No. 9/2/84-LR dated 28th February, 1984 from Shri Narayan Datt Tiwari, Minister of Industry to the Secretary-General, Lok Sabha.]

The President, having been informed of the subject matter of the Incheck Tyres Lmitcd and National Rubber Manufacturers Limited (Nationalisation) Bill, 1934, recommends under clauses (1) and (3) of article 117 of the Constitution the introduction of the said Bill in and its consideration by Lok Sabha.

FINANCIAL MEMORANDUM

Clause 3 of the Bill provides that, on the appointed day, the under-

takings of each of the two companies, and the right, title and interest of each of the two companies in relation to its undertakings, shall stand transferred to, and shall vest in, the Central Government.

2. Under sub-clause (2) of clause 5 of the Bill, any liability arising,

in respect of materials supplied to either of the two companies after the management of the undertakings of the concerned companies had been taken over by the Central Government, shall, on and from the appointed day, be the liability of the Central Government or of the existing, or new, Government company in which the undertakings are vested under the provisions of the Bill. It is estimated that this amount is ttkely to be of the order of Rs. 47 lakhs.

3. Clause 8 of the Bill provides for payment in cash and in the manner specified in Chapter VI thereof, an amount equal to the amount specified against the name of each company in the First Schedule, for the transfer to, and vesting in, the Central Government of the under- takings of each of the two companies, and the right, title and interest of each of the two companies in relation to its undertakings. The total amount is of the order of Rs 490.04 lakhs.

4. Sub-clause (1) of clause 9 of the Bill provides for payment of a further amount in cash to each of the companies, for the deprivation of the companies of the management of their undertakings during the period commencing on the date on which the undertakings of each company was taken over by the Central Government under the provi- sions of the Industries (Development and Regulation) Act, 1951 and ending on the appointed day, an amount of Rs. 50,000.

5. Sub-clause (2) of clause 9 of the Bill provides for payment of simple interest at the rate of four per cent, per annum on the amount specified under clause 8 and sub-clause (1) of clause 9 for the period commencing on the appointed day and ending on the date on which payment of such amounts is made by the Central Government to the Commissioner of Payments. It is estimated that this amount will be of the order of Rs. 1,63,680 per month.

6. Clause 15 of the Bill provides that the Central Government shall appoint a Commissioner of Payments and may also 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. The salaries and allowances oi' the Commissioner and the other persons appointed under the said clause shall be defrayed out of the Consolidated Fund of India. The estimated expenditure on this account is likely to be of the order of Rs. 25,000 per month.

7. Funds will also hav^ to be provided to the existing, or new, jovernment company in which the undertakings of the Incheck Tyres

Limited and National Rubber Manufacturers Limited are vested, towards repairs and replacements during Phase I period, and renovation and modernisation during Phase II period. The estimated cost of implement- ing Phase I would be around Rs. 9,26,00,000 (rupees nine crores and twenty-six lakhs only).

8. It is anticipated that all the liabilities specified in the Second Schedule to the Bill are not likely to be discharged fully by the Com- missioner of Payments out of the amounts paid to him under the provi- sions of the Bill. The Central Government proposes to assume some of the undischarged liabilities, such as, repayment of loans given by banks and financial institutions after the management of the undertakings had been taken over by the Central Government, and principal amounts of loans and advances given by such banks and financial institutions at the behest of Government (i.e. all the loans released by.IRCI. State Bank of Tndia and State Government of West Bengal after 1-7-1976) before such management was taken over and simple interest thereon. The extent of liability on this account will be known only subsequently after the Commissioner of Payments has made available his reports.

9. The Bill, if enacted, is not likely to involve any other recurring or non-recurring expenditure.

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 31 of the Bill empowers the Central Government to make rules to carry out the provisions of the Bill. The matters in respect of which rules may be made, inter alia, relate to the time within which, and the manner in which, intimation regarding any mortgage, charge, lien or other interest in, or in relation to, the properties which have vested in the Central Government under clause 3 of the Bill shall be given to the Commissioner of Payments and the manner in which the moneys in any provident fund, superannuation, welfare or other fund maintained by either of the two companies shall be dealt with by the Central Govern- ment or the existing, or the new, Government company.

2. The matters in respect of which rules may be made are matters of procedure and administrative detail. The delegation of legislative power is thus of a normal character.

SUBHASH C. KASHYAP,

Secretary-General.

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