The Burn Company and Indian Standard wagon Company (Nationalisation) Ordinance, 1976

1. f • . . ltEGl.STBRED No. D.(t>. )· 7j IHUtll(~ EXTRAORDINARY l1ltT 11-l!i~ 1 PART II-Section 1 511f u~ ~ 51'1'ilnttl' PUBLISHED BY AUTHORITY ~ f~, !~, "!.-f 23, 1976/~1' 2, 1898 ffo 103] No. 103] NEW DELHI, WEDNESDAY, JUNE 23, 1976/ASADHA 2, 1898 ~ 1tl'T 'ft fq..- ~mlil:tiif@t~fffl Ai ~~ ~;f~ ~"~ ;;n~, 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 23rd June, 1976/Asadha 2, 1898 (Saka) THE BURN COMPANY ANQ INDIAN STANDARf' WAGON COMPANY (NATIONALISATION) ORDINANCE, 1976. No. 8 OF 1976 Promulgated by the President in the Twenty-seventh ·Year , . of the Republic of India. An Ordinance to'.provide for the acquisition of the undertakings of Burn and Company Limited and Indian Standard Wagon Company Limited with a view to ensuring the continuity of • the production of goods which are vita} to the needs of the economy of the country and for matters connected therewith or incidental thereto. WHEREAS Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action; Now, THEREFORE, in exercise of the powers conferred by clause (I) of article 123 of :the Constitution, the President is pleased to promulgate the following Ordinance ;...;:,... · >t~ CHAPTER I PRELIMINARY l. (1) This Ordinance may be called the Burn Company and Indian Standard Wagon Company (Nationalisation) Ordinance, 1976. (2) The provisions of sections 27 and 28 shall come into force at once and the remaining provisions of the Ordinance shall be deemed to have come into force on the 1st day of April, 1975. l 3 M of I&CS/7~1 2. In this -Ordinance, unless the context otherwise requires,--'­ (a) "appointed day" means the 1st day of .April, 1975; (b) "Commissioner" means the Commissioner of Payments appointed under section 14; • ( 889) Short title and com­ mencement. Definitions .• •· ' ;I • Transfer and vesting in Central Govern­ ment of the under­ takings of the two companies. General effect of vesting. . .e _.-... - : -..,,,, .:.. .• 890 'THE GAZffrTll OF INDlA F.XTRAORDlNAR~ {P_ART It-- (c) "Custodian" means the Custodian appointed under sub-sec_tion (2) of section 9 to take over, or carry on, the management of the undertakings of either or both of the two companies; • (d) "notification" means a notification published in the Ollkial Gazette; (e) "prescribed" means prescribed by rules made under this Ordinance; (D "specified date" means such date as the Ce!1!ral Govc_rnmen~ may, by notification, specify for the_ purpose ~f any prov_1s_1on of th!s Ord_mance: and different dates may be specified for cf1fferent prov1s1ons of this Ordinance, (g) "two. companies" m~ai~s Bun~ and Coml?any Limited _and Indian Standard Wagon Company L1m1tcd, bemg compames as defined m the Com­ panies Act, I 956, and both having their registered offices at IO C, Hungerford Street, Calcutta- I?; ......... I of 19~. (/z) words arid expressions used he~ein and not_ defined ~ut defined in t~e t of 1956. Companies Act, 1956, have the meanings, respecttvely, assigned to them m that Act. CHAPTER II ACQUISITION · OF THE tJNDERTAKJNGS OF THE TWO COMPANIES 3. On the appointed d_ay, the undertakings of each_ of_the tw<! companies and the right, title and interest of each of the two compames m relat1<?n to such un­ dertakings shall stand transferred to, and shall vest absolutely m, the Central Government. • 4. (J) The undertakings of each of the two companies 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, buil­ dings, workshops, stores, instruments, machinery and equipment, cash balances, cash on hand, reserve funds, investments and book debts 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 of either of the two companies, whether within or outside India, and all books of account, re­ gisters and all other documents of whatever nature relating thereto, and shall also be deemed to include the liabilities and obligations specified in sub-section (2) of section S. (2) All properlies as aforesaid which have vested in t11e ,Central Government __ under section 3 shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, lien and all other incumbrances affecting it and any attachment, injunction or decree or order of any court restricting the us~ of such properties in any manner or appointing any receiver in respect of the whole or any part of such property shall be deemed to have been withdrawn. (3) Every mortgagee of any property which has vested under this Ordinance . 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 intimation to the Commissioner of such • mortgage, charge, lien or other interest. (4) For the remov_al of doub~s, it is hereby declared that the mortgagee of any I?ropcrty refe~red to l!l sub-~ect10n. (3) or any other person holding any charge, hen or other 111terest m, or ll1 relatwn to, any such property shall be entitled to claim, in accordance ~ith his rigl~ts and interests, payment of the mortgage money or other dues, m whole or m part, out of the amount specified, in relation i to the company owning such property, in the First Schedule, but no such mort­ gage, charge, lien or other interest shall be enforceable against any property which has vested in the Central Government, (5) ~f, on t\1c appointed day, any _suit, _appeal or other proceeding of whatever nature.111 relatlo~ to any ~atter specified m sub-section (2) of section 5, in respect of ,any undertakmg of either of the two companies, instituted or preferred by or against either of the two companies, is pendirrg, the sam~ shall not abate, THE GAZETIE OF INDIA EXTRAORDINARY ·891 • bo discontinued or be in an • d" • . . , Y way, preJu 1c1ally affected by reason of the transfer of t~e undcrtakings of either of the two companies or of anything contained in this Ordinance, but the suit, appeal or other proceeding may be continued, prosecuted or :nforced by or against the Central Government, or, where the undertakings of either of the two companies are directed under section 6 to vest in a Government company, against that Government company. 5. (J) Every liability, other than the liability specified in sub-section (2), of each of the two companies in respect of any period prior to the appointed day, shall be the liability of the concerned company and shall be enforceable against it, and not against the Central · Government, or, where the undertakings of each of the two compai1ies are directed, under section 6, to vest in a Government company, against that Government company . . (2) Any liability arising in · respect of- (a) the loans advanced by the Central Government, or a State Government, or both, to either, or both, of the two companies (together with interest due thereon) after the management of the undertakings of the concerned company had been taken over by the Central Government; (b) the wages, salaries and other dues of employees of each of the two companies in respect of any_ period after the management of the undertakings of the two 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 Government company aforesaid and shall be discharged by that Govern­ ment or Government compa11y, as and when repayment of such loans or amounts becomes due or as and when such wages, salaries or other dues become due and payable. (3) For the removal of doubts, if is hereby declared that,- (a) save as otherwise expressly provided in th~s section or in any other provision ,9f ~b.is Ordinance, no liability, other than the liability specified in sub-sectio·~ (2), of either of the two companies in relation to its undertakings in respect of any period prior to the appointed day, shall be enforceable against the Central Government, or, where the undertakings of the two com­ panies are -directed under section 6 to vest in a Government company, against that Government company; (b) no award, decree or order of any court, tribunal or other authority in relation to the undertakings of either of the two companies, passed after the appointed day, in respect of any matter, claim or dispute, not being a matter, ·~!aim or dispute in relation to any matter referred to in sub-section (2), whic)l arose before that day, shall be enforceable against the Central Government or, where the undertakings of the two companies are directed, under section 6, to vest in a Government company, against that Government company; Owners of the two com­ panies to be liable for certain prior liabilities. . (c) no liability · incurred by either of the two companies before the ': appoin_te~ day, for the contravent~on, of any provision of Jaw for the time b~ing in force shall be enforceable agamst the Central Government, or, where the undertakings of the two companies are directed under section 6 to vest in a Government company, against that Government company. Power of the Central Govern­ ment to direct vesting or the untler­ takings of the two companies in a Govern­ ment com• pany. Payment of am-,uot. Payment of further amount. Manage­ ment, etc., of the undertakings of the IWO eompanic1. 892 THE GAZETTB OF IN~~~iNARY (l>ART _ ii_~_ === = =====cc.c-- ~ · d in sections 3 and 4, the Central . h d. anything contamc 6. (1) Notw1t stan mg t company is willing tcr comply, ·r. . f fied that a Govern men Government may, 1 tt is sa is 1 d·t· as that Government may think 1. d • h h terms and con t mns or has comp 1e , wit sue h • ht title and interest of the two fi • d" t b otification that t e rig , t to impose, 1rec, Y n ' . h" h have vested in that Govern- • • 1 • t their undcrtakmgs w IC compames 1n re at1on o 1. b'l"f of the two companies d . 3 nd such of the ta I I ,es • ment un er section , ~ . h 11 • t ad of continuing to vest in as are specified in sub-section (2) of section 5, s a ' ms e either on the date of the h Ce l G . t vest in the Government company t e ntra ove1 nmen , . d t artier than the appoint- notification or on such earlier or later date (not being a a e e ed day) as may be specified in the notification. . _ · d the liabilities referred to in sub-(2) Where the right, title and interest, an . . . section (2) of section 5 of each of the two companies, in relation to its undertakings, · ' d • b t" (1) the Government company vest 1n a Government company un er su -sec ton , _ shall on and from the date of such vesting, be deemed to have become the owner • ' · • d n th igbts and liabilities of the Central 1n relation to such undertakings, an a e r Government in relation to such undertakings shall, on and from the date of such vesting, be deemed to have become the rights and liabilities, respectively, of the Government company. CHAPTER III - PAYMENT OF AMOUNTS 7. For the transfer to, and vesting in, the Central Government, under section 3, of the right, title and interest of each of the two companies in relation to the undertakings owned by each of them, there shall be given by the Central Govern­ ment to each of the two companies, in cash and in the manner specified in Chapter VI, an amount equal to the amount specified against the name of such 'company in the First Schedule. 8. (1) In consideration of the retrospective operation of the 'provisions of sec­ tions 3, 4 and 5, there shall also be given, in cash, by the Central Government to each of the two companies an amount equal to an amount, calculated at the rates specified in section 5 of the Burn Company and Indian Standard Wagon Company (Taking Over of Management) Act, 1973, for the period commencing on the appointed day and ending on the date of promulgation of this 01:dit)ance. (2) The amount specified in section 7, and the amount determi~ed under sub-­ section (1), shall carry simple interest at the rate of four per cent. per annum for the period commencing on the date of promulgation of this Ordinance and end­ ing on the date on which payment of such amount is made by the Central Government to the Commissioner. (3) The amounts determined in accordance with the provisions of sub-sec­ tions (1) and (2) shall be given to each of the two companies in addition to the amount specified against its name in the First Schedule. CHAPTER IV MANAGl!MENT, ETC., OF THE UNDERTAKINGS OF THE TWO COMPANIES. 9. (1) The general superintendence, direction, conlrol and management of the ~ffairs a~d busin~ss of ~he under~akings of each of the two companies, the right, title and mterest tn relation to which have vested in the Central Government under section 3, shall,- (a) ~vhere ad irection has been made by the Central Government under sub­ sect10n (J) of section 6, vest in the Government company specified i h d . . n sue rrecuon, or 57 of 1973. Ii of 1956. 14 of 1947. SEC. ll THE G~ITE PF INDIA EXTRAORDINARY ' '. • • • , , ' · ."\ I 893 (b) 'Yhere no su~~ direction ~as been made by the Central Government, vest ~ one ()r m~re ~ustodi~ns appointed by the C~ntral Government u'nder sub- section ( 2) • • • ' • • ·: · • • ·" • • • ·-' '· • • .i ' • • ' • " ' • , • • • ' ~ . ' ' • . ·' and thereupon the Governmrnt company so specified or the Custodian so appointed, as the case may be, shall be entitled to exercise all such powers and do all such thi11gs as either, or both, of the two companies is or are autb,orjse.d to • e11ercise and do. (2) The Central Government may, appoint one or more individuals or a Govern­ ment company as the Custodian of the· undertak.ings of. either, or both, of -the two com~anies in relation to which' no direction has been made by it under sub-section (J) of section 6. - • • 1 ' 10. ({) On the ve.sting of the management of the undertakings of the two . '• · : ~,, •>f'' - ,. , •·· , ~~- . .... . 1,...,,r•·"' ~·· . , . , ,, ., . .,. "I .. , ...- .· - COmpanies m a Government company or ~>n the appointment of a Custodian, all persons in charge of the management of the underta1<ings of either. of the two c,ompanies immediately before ·such vesting or appointmeni, shall be boun4 to deliver to the Government company O( the Custodian, as th\: case m~y pe, ~II assets, books of account, regi~t~rs or other documents in tbeii: custo4y t~!Jting t9 such company. (2) The Central Government may issue such directions as it may deem desirable in the circumstances of the case to the Government company or the Custodian as to its or his powers and d,utie.s and the Government company or Custodian may ~l~o, i ~t ~~he~~ ~~~iris, ·a'pP,i~ to !he ~~~fr~: Goy.er!lni~nt"at any !im~ for 'instruc~ tions as to th~ manner in which the ma11agement of the undertakings of the two com­ panies shall be ~onduct~d by it~~ him.or i~· relatio~ t~ a~y ~the~ matter a~ising.in the co~irse of such man~ge~ent. • • " ' ' - • - ·' • • • • (3) The Custodian shall receive from the funds of the company, in relation to which he is· the Custodian, such remuneration as the Central Government may fix. and shall hold office during the pleasure of the Central Government. • 11. The Custodian of the undertakings of either, or both, of the companies shall maintain an account of the undertakings of the concerned company or companies in such form and manner and unde, such c;ond,itiqn~ ~~- Play be pres­ cribed and the provisions of the Companies A.ct, 1956, shall apply to the audit o·f the account so maintained as they apply . to the a,udit of the accounts of the company. CHAPTER V fROVI~IONS RELATING TO D,iPLOYEES Q~ THE TWO COMPANIFS 12. (J) Every person who is a workman within the meaning of the Industrial Disputes Act, 1947, and has been, immediately before the appointed day, employed in any undertaking of either of the two companies S'hall become, on and from the appointed day, an employee of the Central Government or, as the case may be, of the Government company in which the right, title and interest of the two companies have vested under this Ordinance, and shall bold office or service under the Central Government or the Government company, as the case may be, with the same rights and privileges as to pension, gratuity and other matters as would.have been admis­ sible to him if there had been no such vesting and shall continue to do so unless and until his employment under the Central Government or the Government com­ pany, 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 Govern­ ment company; as the case may be. 3 M of I&CS/76-2 Duty of persons in charge of manage­ ment of the under­ takings of the two companies to deliver all assets. etc. Accounts and audit. Employ­ ment of certain employees to con­ tinue. t f. "Provident and other iunds. rnent of Commis­ sioner of Payments. 894 THE GAZETTE OF INDIA EXTRAORDINARY [PART 11- (2) Every person who is not a workman within the meaning of the _Industrial Disputes Act, 1947, and who has been, immediately before the appomted day, employed in any undertaking of either of the two companies shall, become, as from the appointed day, an employee of the Central Government or the Government company, and shall hold office or service therein by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights . and privileges as to pension and gratuity and other matters as would have been admissible to him if the undertakings of the company in which he was employed had not been transferred to, and vested in, the Central Government or the Goyernment company and shall continue to do so unless and until his employment in the Central Government or the Government company is duly terminated or until his remuneration, terms and conditions of employment are duly altered by the Central Government or the Government company, as the case may be. (3) Notwithstanding anything contained in the Industrial Disputes Act, 1947, -0r in any other law for the time being in force, the transfer of the services of any officer or other person employed in any undertaking of either of the two companies, - -J to the Central Government or the Government company shall not entitle such offi­ cer or other employee to any compensation under this Ordinance or any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority. ( 4) Where, under the terms of any contract of service o·r otherwise, any person whose services become transferred to the Central Government or the Government company by reason of the provisions of this Ordinance is entitled to any arrears· of salary or wages or any payments for any leave not availed of or other payment, not being payment by way of gratuity or pension, such person may, except to the extent of such liability which has been taken over by the Central Government . or the Government company under sub-section (2) of section 5, enforce his claim against the company by which he was employed immediately before such transfer, as the case may be, but not against the Central Government or the Government company. 13. (1) Where either of the two companies have established a provident fund, superannuation, welfare or other fund for the benefit of the persons employed in any of its undertakings, the monies relatable to the officers or other employees, whose services have become transferred by or under this Ordinance to the Central Government or the Government company shall, out of the monies standing, on the appointed day, to the credit of such provident fund, superannuation, welfare or other fund, stand transferred to, and vest in, the Central Government or the Government company, as the case may be. (2) The monies which staad transferred under sub-section (1) to the Central Government or the Government company, as the case may be, shall be dealt with by that Government or Government company in such manner as may be prescribed. CHAPTER VI COMMISSIONER OF PAYMENTS 14. (1) The Central Government shall, for the purpose of disbursino the amounts payable, under section 7, section 8, and sub-section (2) of section {5 to each of the two companies, by notification, appoint a Commissioner of Payme~ts. 14 of J947. • SEc. __ 1]. __ THE GAZETTE OF INDIA EXTRAORDINARY 89S :_ - ·····--·· ·- -- - • ----~ - .:..:~:.~-:~----··.::~-;·~-·· - •• (2) The Central Government m • -==h===·=====.==-===.= • . . ay appoint sue other persons as 1t may think fit to assist the Commissioner and thereupon th c · · h · e omm1ss10ner may aut onse one or more of such persons also to exercise all or any of the powers exercisable by him under t~is Ordinance and different persons may be authorised to exercise diff crent powers. . (3) Any ~erson authorised by the Commissioner to exercise any of th~ powers cxerc1sablc by the Commissioner may exercise tho~e powers in the same ~anner and ':ith 1'~ same effect as if they have been conferred on that pei:son directly by this Ordinance and not by way of authorisation. (4) The salaries and allowances of the Commissioner and other persons appointed under this section shall be defrayed out of the Consolidated Fund of India. 15. (J) The Central Government shall, within thirty days from the specified • date, pay in cash to the Commissioner, for payment 10 each of the two companies,- (a) an amount equal to the amount specified against the name of such company in the First · Schedule; and • • (I,) an amount equal to the amount payable to er.ch oft.he two companies under section 8. (2) In addition to the sums referred to iit sub-section (1), there shall be paid by the Central Government to th~ Commissioner, in cash, such amount, payable under section 5 of the Burn Company and Indian Standard Wagon Company S7 of t9n (Taking Over of Management) Act, 1973, to each of the two companies in relation to the period commencing on the date on which the management of the under­ takii,gs of each of the two companies was taken over by the Central GoYernment and ending on the appointed day, as remains unpaid . . (3) A deposit account shall be opened by the Central Government in favour of the Commissioner, in the Public Accounts of India, and every amount paid under this Ordinance 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. (4) 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 Ordinance . . (5) Interest accruing on the amounts standing to the credit of the deposit account referred to in sub-section (3) shall enure to the benefit of the two companies. 16. (1) The Central Government or the Government company, as the case may oe. 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 the undertakings which have vested in the Central Goveri1ment or the Government company, realised after the appointed day, notwithstanding that the realisation pertains to a period prior to the appointed day. (2) The Central Government or the Government company, as tl1e case may be. mav make a claim to the Commissioner with regard to every payment made by thal G~vernmcnl 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 3 M of I & C S;76-3. Payment by the Cenlral Govern­ ment to the Com­ m1s1ioner. Certain powers of tho Central Govern­ ment or Govern­ ment company. f /, ; I l ! I 1 ' i I ! I . , ... . ... Claims to ~ made to the. Commi!I• sioner. Priority of claim,. Examina­ tion of claim,. Admi~ion of claims. 896 --- - -·--·· -···- --,:- - ~~, ~ r~~lrit;, i~ accordance with the priorities attachin~, under this Ordinance, to 1hc matter in relation to which such liability has been discharged by the Ceotr41 Go\'ernment or the Government company. (3) Save as otherwjse provided in thls Ordinance, the Jiab~itics of either of the two companies in respect of any transaction prior to the appointed ~a~ --:V~ich have 1101 been discharged on or before the specified date shall be the hab1hues of the res_p~ctive company. # 17. Every person having a claim against either of the two companies shall prefer such claim before the Commissioner withln thirty days from the specified date: 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. 18. The claims arising out of the matters specified in the Second Schedule shall have priorities in accordance with the following principles, namely:- (a) Category I shall have pre(;Cdence over all other categories and Category II shall have prectdence 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 insufficient to meet such claims in full, they shall abate in equal proportions and be paid accordinglv; - . (c) the liabilities specified in Category IV shall be discharged, sub_ject to the priorities specified in this section, in accordance with the terms of the secured loans and the priority, inter se, of such Joans; 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 liabili­ ties specified in the immediately higher category 19. ( J) On receipt of the claims made under section 17, the Commissioner 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 examination of the claims, the Commissioner is of opinion that the amount paid to him under this Ordinance is not sufficient to meet the liabilities specified in any lower category, he shall not be required to examine the claims in respect of such lower category. 20. (1) After examining the claims with reference to the priorities set ~ut in • the Second Schedule, the Commissioner shall fix a certain date on or before which every claimant shall file the proof of his Claim or be excluded from the benefit .of Che disbursement made hy the Commissioner. (2) Not less than fourteen days' notice of the date so fixed shall be oiven bv ~dvertisement i~ one issue of t~e daily n~wspaper in the English language :nd on~ ,~sue_ of sue~ darly newspaper 111 the regional language as the Commissioner may consider smtable, and every such notice shall call upon the claimant to file the proof. of his cla_im with· the Commissioner within the time specified in the advertisement. 5 . (- • t 5 of 1908. 45 of Jg60. 2 of 1974. "SEC. 1] -···- THE GAZETI'E Of INDIA EXTRAORDINARY 897 ·=--(~~~;;y claimant-_~;o -;~·ils to file ~;~;roof of his claim wit;l~~--~~~ ti1~~~. specified by the Comm,sinoner shall be excluded from th d' b . 1 d . . e Is ursemen s m:i e by the Comm1ss1oner. • (4) The Commissioner shall, after such investigation as may in his opinion be ne~ssary and aftc_r ~iving the ~ncemed company an opp<m:mity of refotin~ ~he cl~_m and ~ter g1v1~g the claimant a reasonable opportunity of being heard, ,n wntmg, admit or reJect the claim in whole or in part. . (5) The Co~ssioner shall ~ve the power to regulate his own procedure 1n all matters arising out of the discharge of his functions, including the place or places at which he will hold his sitting and shall, for the purpose of making any investigation under this Ordinance, have the same powers as arc vested in a civil cou,11 under the Code of Civil Procedure, 1908, while trying a suit, 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 ovidence; (c) the reception of evidence on affidavit,; (d) the issuing of any commission for the examination of witnesses. (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 345 and ·Chapter XXVI of the Code of Criminal Procedure, 1973. (7) A claimant who is dissatisfied with the decision of the Commissioner, • may prefer an appeal against the 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 a Commissioner, such appeal shall lie to the High Court at Calcutta and such appeal sltall be heard and disposed of by not less than two Judges of that High Court. 21. After admitting a claim under this Ordinance, the amount due in respect 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 each of the two companies in respect of such claim shall stand discharged. • 22. (1) . Jf, out of the monies paid to him jn relation to the undertakings of either of the two companies, there is a balance left after meeting the liabilities as specified in Second Schedule, the Commissioner shall disburse such balance to the concerned company. Disburse­ ment of money by Commis­ sioner to claimants. Disburse• ments of amounts to the two companies. (2) Where a11y machinery, equipment or other property has vested in the . Ceittral Government or a Government company under this Ordinance, but such machinery, equipment or other property does not belong to either of the two companies, the amount specified in the First Schedule shall, on a reference made to it by the Commissioner. be apportioned by the principal civil court of original jurisdiction within the local limits of whose jurisdiction the registered office of the concerned company is situated, between the company and the owner of such m'1chiiiery, equipment or other property, having due regard to the value of such machinery, equipment or other property on the appointed day. : • • ....,.. • / I • •· Undis­ bursed of unclaimed amount to he Llcrosited with the 1,:cncral revenue account. Assumption of liability. On.linance 10 have overriding effect. Contracts to cease to have effect unless ratified by tho Central Govern- . • ment or Government l'ompany. Penaltlee. 898 THE GAZE"ITE OF INDIA EXTRAORDINARY ~=~~~~=== ====---=====-- [PART 11- 23. Any money paid to the Commissioner which rem~ns und~sbursed or unclaimed for a period of three years from the last day on whtch the disbursement was made. shall be transferred by the Commissioner to the General Revenue Account or the Central Government; but a claim to any m•ney 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, the order, if any, for payment of the claim being treated as an order for the refund of revenue. CHAPTER VII MISCELLANEOUS 24. (/) Where any liability of either of the two companies arising out of any item specified in category I of the Second Schedule is not discharged fully b)i the Commissioner out of the amounts paid to him under this Ordinance, the Commi. ssioner shall intimate in writing to the Central Government the extent of the liability which remains undischarged, and to that extent the liability shall be assumed by t~c Central Government. (2) The Central Government may, by order, direct the Government company to take over any liability assumed by that Government under sub.section (J) and on receipt -of such direction, it shall be the duty of the Government company to discharge such liability; ~- The provisions of this Ordinance 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 Ordinance, or in any decree or order of any court, tribunal or other authority. 26. (/) Every contract entered into by either of the two companies in relation to any of its undertakings which have vest.ed 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 of promulgation of this Ordinance, cease to have effect unless such con. tract is, before the expiry of that period, ratified, in writing, by the Central Govern­ ment, or Government company, and in ratifying such contract the Centrai Govern• ment or Government company, may make such alteration or modification therein as it may think fit: Provided that the Central Government or Government company shall 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 onerous or has been entered into in bad faith or is detrimental to the interests of the Central Government or the Government company. ' (2) The Central Government or Government company shall not omit to ratify a contract, and, shall not make any alteration or modification therein. except after giving to the parties to the contract a reasonable opportunity of being heard and except aft~r recording in ~riting its reasons for refusal to ratify the contract or for makmg any alteration or modification therein. • 27. Any person who,- (a) having in1 hi~ possession, custody or control any property forming part of any undertaking of either of the two companies, wrongfully withholds such property from the Central Government •0 G r overnment company; or ·. ' • ,. . ~· • . . '".! •• • ., . . ' • ·,;· . . . . ••' .. . . . . . . .. ·.· . : •, .. . •' • • SEc. 1] • THE GAZE'I"l'E OF INDIA EXTRAORDINARY 899 (b) wrongfully obtains possession of, or retai11s, any property forming part of any undertaking of either of the two cornpanies, or wilfully withholds or fails to furnish to the Central Go~ernment or Gover~ment company or any person or body of persons specified by that Government or Govern• ment company, any docume11t relatir1g to suc11 undertaking which may be in his possession, custody or control or fails to deliver to the Central Govern­ ment or Gover11me11t con1pa11y or a11y persoi\ or body of perso11s specified by that Governme11t or Gover11·ment compa11y, any assets, books of account.. registers or other documc11ts in l1is possession, custody or control relating to the undertaki11gs of either of the two companies; or , (c) 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 f aJse or grossly inaccurate, shall be punishable with i_1nprisonment for a term which may extend to two years, or with fine which may extend to ten thousand rupees, or with both. 28. ( 1) Where an offence under ·--this Ordinance 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 diligence to prevent the commission of such off e11ce. (2) Notwithstanding anything contained in sub-section (1), where any offence under this Ordinance has bee11 committed by a company and it is proved that the offence has been com1nitted with tl1e consent 01· connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and pun~shed accordingly. Explanation.-For the purposes of this section,- . (a) ''company'' means any body corporate and includes a firm or other association of individt1als; and • . (b) ''director'', in relation to a firm, means a partner in the firm. Offences by com- • pan1es . • • 29. (1) No suit, prosecution or other legal proceeding shall lie against the Ce11tral Protection • Government or any officer of tha~ GovernhmenGt or the CustodiGan or the Government ~:tif:i° company or other person auth~r1sed by t ~t overumer1t or overnm~nt co~pany good faith. for anything which is in good f a1th done or intended to be done under this Ordinance. . (2) No suit or other legal proceeding shall lie agai11st the Central Government or any of its officers or other employees or the Government compa11y or any officer or other person authorised by that 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 Ordinance. • • 30. (1) Tlle Central G~vernment _may, ~y notification, direct that all or any of Delegation . the powers exercisable by J t-under tl11s Ordinance, other than the power conferred of powers. by section 31, may also be exercised.by such person or persons as may be specified in the notifi9ation. • (2) Whenever any delegation. of power is made under sub-s:ctio~ ( J), the person to whom such power has been delegated sl1all act under tlte d1rect1on, co_ntrol and supervision of the Ce11tral Government. • • .. l . i , • \ \ • !" . 'ly • I I ' I I I I ·, I 1 ! L j ./ j POY.'Cf to mate rules. Power to remove difficulties. Declaration as to the policy of the State, [PART II- 900 THE GAZETIE OF INDIA EXTRAORDINARY 31. (J) The Central Government may, by notification, make rules for carry­ ing out the provisions of this Ordinance. (2) In particular:and without prejudice to the gen~rality of the foregoing 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 intimation referred to in sub-section (3) of section 4 shall be given; (b) the form and the manner in which and the conditions under which the Custodian shall maintain the accounts as provided in section 11; (c) the manner in which the monies in any provident fund or other fund, referred to in section 13, shall be dealt with; (d) any other matter which is required to be, or may be, prt!Scribed. (3) Every rule made by the Central Government under this Ordinance 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 imme­ diately 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 ill such modified fonn or be of no effect, asthe 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 arii.es in giving effect to the provisions of this Ordinance, - the Central Government may, by order, not inconsistent with the provisions of this Ordinance, remove the difficulty: Provided that no such order shall be made after the expiry of a perioi of two years from the date of promulgation of this Ordinance. 33. It is hereby declared that this Ordinance is for giving effect to the policy of the State towards securing the principles specified in clause (b) of article 39 of the Constitution. • Expla11ation.-In this section, "State" has the same meaning as in article 12 o( the Constitution. THE FIRST SCHEDULE [See sections 7, 8 and 15 (2)] SJ. Name of the·-company • No. I. Burn arid Company Limited . 2. Indian Standard Wagon Company Limited THE SECOND SCHEDULE (See sections 18, 19, 20 and 24) ORDER OF PRIORITIES FOR THE DISCHARGE OF UABlLITIES OF PART "A" Category I- Post-take-over manageme,ii period Loans advanced by banks. Amount (Rupees in lakhs) 1,388.00 1,135 .00 THE TWO COMPANIES (a) , (b) Loans advanced by the Industrial Reconstruction c · . · d" · orporat1on of India (c) Cre 1t availed of for purposes of trade or man ~ t • . • : u1ac urJDg operations. t SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 901 Category Il'- (a) Revenue, taxes, cesses, rates or other dues of Central Government or a State Government. (b) Sales tax; rates and taxes; contributions to be made to the Employees' State Insurance Fund, and Additional Dearness Allowance payable to employees. • PART "B" Pre-take-over ma11agement period Category /I/- Arrears in relation to provident fund, salaries and wages and other amounts due to employees. Category IV- Secured loans. Category V- Revenue, . taxes, ccsses, rates or any other dues to the Central Government, a State Government, a local authority or a State Electricity Board. Category Vl- (a) Any credit availed of for purpose of trade or manufacturing operations. (b) Any other dues. FAKiIRUDDIN ALI AHME:Q President. K. K. SUNDARAM, Secretary to the Govt. of India t'JIJNnD BY THB MANAGER, GOVT. OP INDIA PRESS, ltlNO ROAD, Nl!W DEUn-110O27 ANll PlJBLT&Hl!D DY THI! CONTROLLER OF PUBLICATIONS, DELHJ-110006, 1976.