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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 2

PUBLISHED BY AUTHORITY.

No 19] NEW DELHI, THURSDAY, MARCH 29, 1984/CHAITRA 9, 1906

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

LOK SABHA

The following Bill was introduced in Lok Sabha on the 29th March,

1983: —

BILL, NO. 31 OF 1984

A Bill to provide, in the public interest, for the acquisition of certain

shares of the Mogul Line Limited in order to serve better the ship-

ping needs of the nation and for matters connected therewith or

incidental thereto.

BE it enacted by Parliament in the Thirty-fifth Year of the Republic

of India as follows:—

1. This Act may be failed the Mogul Line Limited (Acquisition of

Short title.

Shares) Act, 1984.

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

Defini- tions.

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

into force;

1 of 1956.

(b) "Company" means the Mogul Line Limited, being a company within the meaning of the Companies Act, 1956, and having its registered office at 16, N. G. N. Vaidya Marg (Bank Street), Bom- bay;

(1)

(c) "share" means a share in the capital of the Company, and includes a share pledged by any shareholder with any bank or ether creditor;

(d) "shareholder" means a person who, immediately before the appointed day, was registered by the Company as the holder of any share and includes his legal representative;

1 of 1936.

(e) 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.

3, (I) On the appointed day, all the shares of the Company which are not held by the Central Government shall, by virtue of this Act, stand transferred to, and shall vest in, the Central "Government,

(2) The Central Government shall be deemed, on and from the appointed day, to have been registered in the Register of in embers of the Company as the holder of each share which stands transferred to, and vested in, it by virtue of the provisions of sub-section (1).

Transfer

and

vesting of

certain

shares

of the

Company

in the

Central

Govern-

ment.

(3) All the shares which have vested in the Central Government under sub-section (1) shall, by force of such vesting, be freed and dis- charged of all trusts, liabilities, obligations, mortgages, charges, liens and other encumbrances affecting them, and any attachment, injunction or any decree or order of the court, tribunal or other authority restricting the use of such shares in any manner, shall be deemed to have been withdrawn.

(4) For the removal of doubts, it is hereby declared that the provi- sions of sub-sections (1) and (2) shall not be deemed to affect—

(a) any right of the Company subsisting, immediately before the appointed day, against any shareholder to recover from such shareholder any sum of money on the ground that the shareholder has not paid or credited to the Company the whole or any part of "the value of the shares h^ld by him, or on any other ground what- soever; or

(b) any right of the shareholder subsisting, immediately before the appointed day, against the Company to receive any dividend or other payment due from the Company.

Ifcanafits- snent of the Company.

4. For the purposes of enabling the Company to function as a Govern- ment company in which the entire share capital is held by the Central Government, the Central Government may, by notification in the Official Gazette, make such provisions (including amendments in the memoran- dum and articles of association of the Company) ag it may consider necessary and the provisions so made shall have effect nottwithstanding anything contained in the Companies Act, 1S56.

1 of 1938.

Payment of amounts.

5. (1) Every shafdholder whose shares in the capital of the Company are transferred to and rested in the Central Government muter section 3 shall, foil streh transfer and vesting, be given by that Government, in cash and hi the man- ner specified in section 6, m amount calculated at the rate of rupees ten per share.

(-) The amount payable to a siiweuoider under sub-section (I) shall cany simple interest at the rate of five and a half per cent, per annum for the period commencing on the appointed day aaid ending on the date on which payment of such amount is made by the Central Government to the shareholder or where such amount has been deposited under sub-section (4) of section 6, on the dete on which it is so deposited.

6. (1) The amounts payable to a shareholder in accordance with the pro- visions of section 5 shall be given to him in cash to be paid by cheque drawn on the Reserve Bank of India.

Manner of payment of amounts.

(2) A shareholder may make an application, in writing, to the Central Government for the payment of the amounts payable to him.

(3) On the Receipt of an application under sub-section (-), the CentM Government shall, after making such investigation as may, in its opinion, be necessary, make the payment.

(4) Tf any dispute arises as to the person entitled to receive the amounts payable in respect of any share, the Central Government shall deposit the¹ amount in the principal civil court of original jurisdiction within - the local limits of whose jurisdiction the registered office of the Company is situated for being paid to the person or persons entitled to be paid.

7. The provisions of this Act shall have effect notwithstanding anything 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.

Act to have overrid- ing effect.

8. (1) The Central Government may, by notification In the Official Gazette, make rules to carry out the provisions of this Act.

Power to make rules.

(2) 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.

STATEMENT OF OBJECTS AND REASONS

The Mogul Line Limited >s a public sector undertaking in the field of shipping functioning under the aegis OL the Ministry of Shipping and Transport. Al present, the Company h operating certain important services, such as, the Haj Passenger Service, Konkan Passenger Service, Coastal Cargo Service,. Bombay-Red Sea Cargo Service and the Overseas Tramp Service. The value of the net assets of the Company at present, that is, investment and working capital, is jyuch less than the amount of its loan liabilities. 18,94,483 shares of the Company (which constitute 99.65 per cent, of the total shares of the Company) are held by the President of India, whilst the remaining 6,707 shares (0.35 per cent, of the total shares of the Company) are held by pi ivate individuals/institutions.

2. With a view to dealing effectively with the problems faced by the Com- pany aud thereby to enable the undertakings of the Company to serve better the shipping needs of ihe nation, ii i-; considered necessary in the public interest to make the Company a fully owned Government company. Efforts to acquire by private negotiations the small per cent, of the shares of the Company which are held by the private individuals /institutions have for various reasons not borne fruit. Lt is accordingly proposed to acquire the said shares.

3. The Bill seeks to achieve the above objects.

N rw DELHI; K. VUAYA BHASKARA REDDY.

The 20th February, 1984.

FINANCIAL MEMORANDUM

Sub-clause (1) of clause 5 of the Bill provides for payment of an amount calculated at the rate of Rs. 10 per share to every shareholder of the Company. The number of shares which are proposed to be acquired under the provisions of this Bin is 6,707. Accordingly, the ex- penditure for acquiring the said shares will be Rs. 67,070. However, the actual expenditure may be less than the above amount as m a ny of the shareholders may not turn up to lodge their claim in view of Hie fact that the whereabouts of some of the shareholders are not known.

2. Sub-clause (2) of clause 5 of the Bill provides that the amount payable to a shareholder under sub-clause (1) shall carry simple interest at the rate of 5i per cent per annum for the period commencing on the appointed day and ending on the date on which payment of such amount is made by the Central Government to the shareholder or wher,e such amount has been deposited under sub-clause (4) of clause 6, on t he date on which it is so deposited. It is not possible to estimate at this stage the amount that may have to be paid by way of interest for that will depend upon the time within which various shareholders may apply for the amount.

'S. No expenditure is likely to be involved in connection with the work involved in the distribution of the amount as this work is proposed to be managed with the existing machinery of the Government.

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

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 8 of the Bill empowers the Central Government to make rules lor carrying out the provisions of the Bill. The matters in respect of which rules may be made would relate to matters of procedure and administrative detail and it is not practicable to provide for them in the Bill itself. The delegation of legislative power is, therefore, of a normal clwacter.

SUBHASH C. KASHYAP,

Secretary-General.

PHINTtfD BY THE OBNERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD,

NEW DELHI AND PUBLISHED BY TUB CONTROLLER OF PUBLICATIONS, DELHI, 1 9 84