(1) On the appointed day,—
(a) all shares in the capital of the company shall, by virtue of this Ordinance, be deemed to be transferred to and vested in the Central Government free from all trusts, liabilities and encumbrances;
and
(b) as compensation therefor the Central Government shall, in accordance with the provisions of section 4, pay to the shareholders the sum of rupees four crores and fifty lakhs only in the aggregate.
(2) For the removal of doubts it is hereby declared that the transfer and vesting of shares effected under clause (a) of sub-section (1) shall not be deemed to affect any right of the company subsisting immediately before the appointed day against any shareholder to recover from him 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 held by him or on any other ground whatsoever.
Vesting of shares of company in Central Government and compensation therefor.
4. (I) The amount of compensation payable under clause (b) of subsection (1) of section 3 to the shareholders shall be apportioned among the shareholders according to the number of shares held by such shareholders.
(2) The amount of compensation payable to a shareholder in accordance with the provisions of sub-section (1) shall be given to him, at his option—
(a) in cash (to be paid by cheque drawn on the Reserve Bank) in three equal annual instalments, the amount of each Instalment carrying interest at the rate of four per cent, per annum from the appointed day, or
(b) In saleable or otherwise transferable promissory notes or stock certificates of the Central Government issued and repayable at par, and maturing at the end of—
(i) ten years from the appointed day and carrying Interest from that day at the rate of four and a half per cent, per annum, or Apportionment and manner of payment of compensation.
fej£C 1] THE GAZETTE Of INDIA tfXTR'AOtolNAftY 347
(ii) thirty years from the appointed day and carrying interest from that day at the rate of five and a half per cent, per annum, or
(c) partly in cash (to be paid by cheque drawn on the Reserve Bank) and partly in such number of securities specified in sub-clause
(i) or sub-clause (ii), or both, of clause (b), as may be required by the shareholder, or
(d) partly in such number of securities specified in sub-clause
(i) of clause (b) and partly in such number of securities specified in sub-clause (ii) of that clause, as may be required by the shareholder.
(3) The first of the three equal annual instalments referred to. in clause
(a) of sub-section (2) shall be paid, and the securities referred to in clause (b) of that sub-section shall be issued, within sixty days from the date of receipt by the Central Government of the option referred to in that sub-section, or where no such option has been exercised, from the latest date before which such option ought to have been exercised.
,(4) The option referred to in sub-section (2) shall be exercised by a shareholder before the expiry of a period of three months from the appointed day (or within such further time, not exceeding three months, as the Central Government may, on the application of the shareholder, allow) and the option so exercised shall be final and shall not bfe altered or rescinded after it has been exercised.
(5) If a shareholder omits or fails to exercise the option referred to in sub-section £2), within the time specified in sub-section (4), he shall be deemed to have opted for payment in securities specified in sub-clause J(i) of claube (b) of sub-section (2).
(6) Notwithstanding anything contained in this section, a shareholder may, before the expiry of three months from the appointed day (or within such further time, not exceeding three months, as the Central Government may, on the application of the shareholder, allow) make an application in writing to the Central Government for,—
(a) the full payment of the compensation payable to him, if the compensation payable to him does not exceed rupees two lakhs; or
(b) an interim payment of an amount equal to seventy-five per cent, of the face value of the shares in respect of which compensation is payable to him, or rupees two lakhs, whichever is greater, if the compensation payable to him exceeds rupees two lakhs, indicating in such application whether the payment is desired in cash or in securities specified in sub-section (2), or in both.
(7) The Central Government shall, within sixty days from the receipt of the application referred to in sub-section (6), make the full payment or, as the case may be, the interim payament to the shareholder in accordance with the option indicated in Siuch application.
(8) The interim payment made to a shareholder under sub-section (7) shall be set off against the total amount of compensation payable to him under this Ordinance and the balance of the compensation remaining outstanding after such payment shall be given to the shareholder in accordance with the option exercised, or deemed to have been exercised, under sub-section ,(4) or sub-section (5), as the case may be:
348 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
Provided that where any part of the interim payment is obtained by the shareholder in cash, the payment so obtained shall be set off, in the first instance, against the first instalment of the cash payment referred to in sub-section (2), and in case the payment so obtained exceeds the amount of the first instalment, the excess amount shall be adjusted against the second instalment and the balance of such excess amount, if any, against the third instalment of the cash payment.
(9) If any dispute arises as to the person entitled to receive the compensation payable in respect of any share, the Central Government shall deposit the amount of such compensation in the court for being paid to the person or1 persons entitled to be paid.
Allocation of shares to Shipping Corporation oi India and certain other persons.
Amendment of memorandum and articles oi association of company.
Interim management of the company.
CHAPTER III MANAGEMENT OF COMPANY