(1) Where any exemption from, o rany assessment with respect to, any tax has been granted or made or any benefit by way of set off or carry iorward, as the case may be, oi any unabsorbed depreciation or investment allowance or other allowance or loss has been extended or is available to a corporation under the Incometax Act, 1961, such exemption, assessment or benefit shall continue to have effect in relation to the company in which the undertaking of that corporation has vested.
Tax exemption or benefit to con tinue to nave effect.
43 of 1961-
(2) Where any payment made by a corporation is exempt fromi deduction of the tax at source under any provision of the Income-tax Act, 1961, the exemption from tax will continue to be available as if the provisions of the Act mace applicable to tbie corporation were operative in relation to the company in which the undertaking of that corporation has been vested.
43 of 1961-
(3) The transfer and vesting of the undertaking or any part thereof in terms of section 3 &hall not be construed as a transfer within the meaning of the Income-tax Act, 1961 for the purposes of capital gains.
7. Any guarantee given for or in favour of a corporation with respect to any loan or lease finance shall continue to be operative in relation to the company in which the undertaking of that corporation has vested by virtue of this Ordinance.
Guarantee to be operative.
S. (1) Every officer or other employee of a corporation (except a Director of the Board, Chairman, Managing Director or any other person entitled to manage the whole or a substantial part of the business and affairs of the corporation) serving in its employment immediately before the appointed day shall, in so far as such officer or other employee is employed in connection with the undertaking which has vested in a company by virtue of this Ordinance become, as from the appointed day an officer or oth/er employee, as the case may be, of the company in which the undertaking has vested and shall hold his office or service therein by the same tenure, at the same remuneration, upon the same terms and conditions, with the same obligations and with the same rights and privileges as to leave, passage, insurance, superannuation scheme, provident fund, other funds, retirement, pension, gratuity and other benefits as he would have held under that corporation if its undertaking had not vested in the company and shall continue to do so as an officer or other employee, aa the case may be, of the company or until the expiry of a period of six months from the appointed day if such officer or other employee opts not to be the officer or other employee of the company, within ucch period,
(2) Where an officer or other employee of a corporation opts under sub-section (1) not to be in the employment or service of the company in which the undertaking of that corporation has vested, such officer or other employee shall be deemed to have resigned.
Provisions in rc.vpect of officers and other employee* of corporations.
4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
(3) Notwithstanding anything contained in the Industrial Disputes Act, 1947 or in any other law for the time being in force, the transfer of the services of any officer or other employee of a corporation to a comtpany shall not entiile such officer or other employee to any compensation under the said Act or under any other law for the time being in force and no such claim shall be entertained by any court) tribunal or other authority.
14 of 1947
(4) The officers and other employees who have retired before the appointed day from the service of a corporation and are entitled to any benefits, rights or privileges shall be entitled to receive the same benefits, righis or privileges from the company in which the undertaking of ihat corporation has vested.
(5) The trusts of (he Provident Fund or Pilots Group Insurance and Superannuation Scheme of ihe corporation and any other bodies created for the welfare of officers or employees would continue to discharge their functions in the company as was being done hitherto in the corporation.
Tax exemption granted to Provident Fund or Pilots Group Insurance and Superannuation Scheme would continue to be applied to the company-
(6) Notwithstanding anything contained in this Ordinance or in the Companies Act, 1956 or in any other law for the time being in force or in the regulations of a corporation, no Director of the Board, Chairman, Managing Director or any other person entided to mange the which or a substantial part of the business and affairs of that corporation shall be entitled to any compensation against that corporation or against the company, as the case may be, for the loss of office or for the premature termination of any contract of management entered into by him with that corporation.
1 of 1956.
[\;wer of Central Government to give directions.
9. The Central Government may give to |a company directions as to the exercise and performance by that company of its functions, and that company shall be bound to give effect to any such directions.
Power to remove diffkL<ltifts.
XO. (1) If any difficulty arises in giving effect to the provisions of this Ordinance, the Central Government may, by order published in the Official Gazette, not inconsistent with the provisions of this Ordinance, remove the difficulty:
Provided that no such order shall be made after the expiry of a period of two years from the coming into force of this Ordinance.
(2) Every order made under sub-section (!) shall be laid before each House of Parliament.
SRC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 5