(1) Notwi.hstanding anything contained in sections 3 and 4, and subject to the provisions of section 7, the Central Government may, if it is satisfied that an existing Government company is willing to comply, or has complied, with such terms and conditions as that Government may think fit to impose, direct, by notification, that the undertakings of each of the two companies and the right, title and interest of each of the two companies in relation to its undertakings which have vested in the Central Government under section 3, shall, instead of continuing to vest in the Central Government, vest in that existing Government company cither on the date of the notification or on such earlier or later date (not being a date earlier than the appointed day) as may be specified in the notification.
(2) Where the right, title and interest of the two companies in relation to their undertakings vest, under sub-section (l)r in an existing Government company, that Government company shall, on and from the date of such vesting, be deemed to have become, and, until the transfer of the undertakings, by virtue of the provisions of section 7, to a new Government company, be deemed to be, the owner in relation to such undertakings, and the rights and liabilities of the Central Government in relation to such undertakings shall, on and from the date of such vesting, be deemed to have become, and, unlil the date of such transfer, be deemed to be, the rights and liabilities, respectively, of that existing Government company.
Power of Central Government to direct vesting of the undertakings of the two companies in an existing Government company.
7. ( I ) Notwithstanding anything contained in sections 3 and 4, where the undertakings of each of the two companies have been directed, under subsection ( i ) of section 6, to vest in an existing Government company, the Central Government may, if it is satisfied that a new Government compay is willing to comply, or has complied, with such terms and conditions as that Government may think fit to impose, declare, by notification, that the undertakings of each of the two companies and the right, title and interest of each of the two companies in relation to its undertakings be transferred to that new Government company, and on the issue of such declaration, the right, title and interest of each of the two companies in relation ic its undertakings which had been directed under subsection (1) of section 6 to vest in an existing Government company, shall, instead iof continuing to vest in that existing Government company, vest in that new Government company with effect from the date on which such declaration is made.
Transfer of the undertakings of the two companies from an existing Government company to a new Government company.
(2) Where the right, title and interest of the existing Government company in relation to the undertakings of the two companies vest, under sub-section (1) , in a new Government company, that Government company shall, on and from the date of such vesting, be deemed to have become the owner in relation to such undertakings and the rights and liabilities of the existing Government company in relation to such undertakings, shall, on and from the date of such vesting, be deemed tohave become the rights and liabilities, respectively, of that new Government company.
iHfi GAZEI-TE Ok INDIA EXTKAORIflNABy [PAHI I I -
CHAPTER m PAVMENI OF AMOUNTS 84 For the transfer to, and vesting in, the Central CJovennrosnt; uadet section 3, of the undertakings of each of the two companies, aftd the "right, title and interest of each of th& two companies in relation to its undtftakiags/thfire shall be paid by the Central Government to each of the two companies; ia cask aad,.in the manner specified in Chapter VI, an amount equal to the amount specified against the name of such company in the First Schedule.
f'a}mo \i of amount.
9, (1) For the deprivation of the two companies of the management of taeir undertakings during the period commencing on the date on which the 'unl&tttikJogs of each such company Was taken over in pursuance of the orders made1 by In* Central Government under the provisions of the Industries (Djevelopment and Regulation) Act, 1951 and ending on the appointed day, there shall bo'paid by the Central Government to each of the companies in cash, an amount of rupees fifty thousand.
65 of 1951, Payment of further amounts.
(2) The amount rcterred to in section 8 and the amount specified in subsection (J) shall carry simple interest at the rate of four per cent, per qppxufy few 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.
(3) The amount referred to b 1 sub-section (J) and, the amount''determttttd in accordance with the provisions of sub-section (2) shall be given by the* Central Government to the two companies in addition to the amount specified in sections.
(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 frorathe amount referred to in section 8, and also from the amount spedfieaifoijsubjpec^Ofy'(j^ and the amount' determined under sub-section (2), in accordance with the rights arid interests of the cn^ditws of the two companies.
CHAPTER IV MANAGEMENT, ETC., OV THE UNDERTAKINGS OF THE TWO COMPANIES MI The. general superintendence, direction, contwoi and m^na^einent of the affairs and business of the undertakings of eadh of th& two pompanies, the (right, title and interest in relation to which have vested in tha Centra^ Goveton* incut under scctish 3, shall,— Manage.
meat,, etc., of the uad^rtafciqgs of the two > companies (a) where a direction has been given by the Central Government under sub-section (J) of section 6, vest on and from the date "specified in such direction, in the existing Government company specified '"thereto; w
(b) where a declaration has been made under subjection'''(I) of section 7, vest, 00 aod from the date of such declaration,* <in>)-tifeef new Government company specified therein, and thereupon the existing, or new, Government company so specified, stiall be entitled to exercise, to the exclusion of all other person*, all fiu^^powers^aind do all such things as either, or both, of the two companies, is or are, nuthfflls<}dl to exercise a"nd do in relation to its or their undertakings.
SK, 1J THE GAZETTE OF INDIA EXTRAORDINARY ^ • U J T { 1 ) O n t h e v e s t i n g ' o f t h e m a n a g e m e n t ' o f t h e u n d e r t a k i n g s o f t h e t w t f <?oj»pajiies"ijj, omr existing, or -a new, Governmen. company, all persews in chwgo of the management of the undertakings of either of the two companies immediately before such vesting shall be bound to deliver to such Government company, all assets, books of account* registers and other documents in their dUflfcpdjy jwteting to the undertakings.
(2) The Central Government rmty issue such directions as it may deem desirable in the circumstances of the case to the existing, or new, Government company- aod^uch, Government company maiy also, if it is considered necessary so/to do, apply to the Central Government at any time for instructions as to thfrrmanncr in' which the management of the undertakings of the two companies shall be conducted or in relation to any other matter arising in the course of such manaeement.
Duty of persona In charge of management of undertakings of the two companies to deliver all assets, etc.
it. (1) Any person who has, on the appointed day, in his possession or under 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 UUp^nitimncC' shall be liable to account for the said assets, books, document* and other papers to the Central Government or the existing, or new, Government company, as the case may be, and shall deliver them to the Central Government or the cxis'.ing, or new, Government company or to such person or persons as the Central Government or the existing, or new, Government company, may specify in this behalf- Duly of persons to account for assets, etc., In their possession.
(2) The Central Government or the Government company aforesaid may take, or cause to be taken, all necessary steps for securing possession of the undertakings of the two companies which have vested in the Central Government or the Government company under this Ordinance.
(3) The two companies shall, within such period as the Central Government may allow in this behalf, furnish to that Government a complete inventory of all their properties and assets, as on the appointed day- pertaining to the 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 PROVISIONS RELATING TO TIUPLOYEES OF THE TWO COMPANIES