(1) The Central Government or the existing, or new, Government c .
company, as the case may be, shall be entitled to receive, up to the speci- p o w 4 t B o l fled date, to the exclusion of all other persons, any money due to the theCent- Cdmpany in relation to any of the undertakinga owned by it, which have ral Govvested In the Central Government or such Government company, and eminent realised after the appointed day, notwithstanding that the realisation ^ J ^ v e r n ~ pertains to a period prior to the appointed day. company.
(2) The Central Government or the existing, or new* Government company, as the case may be, may make a claim to the Commissioner with regard to every payment made by that Government or Government company, after the appointed day, for discharging any liability of the Company in respect of any of the undertakings owned by it, in relation to any period prior to the appointed day, and every such claim shall have priority, in accordance with the priorities attaching under this Ordinance, to the matter in relation to which such liability has been discharged by the Central Government or the Government company.
(3) Save as otherwise provided in this Ordinance, the liabilities of the Company in relation to any of the undertakings owned by It, in respect of any transaction prior to the appointed day, which have not been discharged on or before the specified date, shall be the liabilities of the Company.
18. Every person having a claim against the Company with regard claims to any of the matters specified in the Schedule, pertaining to any under- to be taking owned by It, shall prefer such claim before th e Commissioner made to within thirty days from the specified date: miLionTr"
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 farther period of thirty days, but not thereafter.
216 THE GAZETTE OF I M J I A EXTRAORDINARY [PART II Priority 19- The claims made under section 18 shall have priorities in accordof claims, ance with the following principles, namely; —
(a) Category I shall have precedence over all other categories and Category II shall have precedence over Category III and so on;
(b) the claims specified in each of the categories 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 accordingly; and
(c) 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 liabilities specified in the immediately higher category.
Examina- 20- 0) On receipt of the claims made under section 18, the Comtion of missioner shall arrange the claims in the order of priorities specified in claims. the Schedule and examine the same in accordance with such order.
(2) If on an 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 any claim in respect of such lower category.
Admission ^ ^ After examining the claims with reference to the priorities or rejec- set out in the Schedule, the Commissioner shall fix a date on or before tion of which such claimant shall file the proof of his claim.
claims.
(2) Not less than fourteen days' notice of the date so fixed shall be given by advertisement in one issue of any daily newspaper in the English language having circulation in the major part of the country and one issue of any daily newspaper in such regional language as the Commissioner may consider suitable, and every such notice shall call upon the claimant to file the proof of his claim with the Commissioner within the period specified in the advertisement
(3) Every claimant who fails to file the proof of his claim within the period specified by the Commissioner shall be excluded from the disbursement made by the Commissioner.
(4) The Commissioner shall, after such investigation as may. in his opinion, be necessary and after giving the Company an opportunity of refuting the claim and after giving the claimant a reasonable opportunity of being heard, by order in writing, admit or reject the claim in whole or in part.
(̂ ) The Commissioner shall have the power to regulate his own procedure in all matters arising out of the discharge of his functions, including the place or places at which he may hold his sitting and shall, for, the purpose of making any investigation under this Ordinance, have the same powers, as are vested in a civil court under the Code of Civil Procedure, 1908, while trying a suit, in respect of the following K , matters, namely: —
(a) the summoning and enforcing the attendance of any witness and examining him on oath;
SEC. 1] THE GAZETTE OF INDIA EXTHAOBDINABY 217
(b) the discovery and production of any document or other material object producible as evidence;
(c) the reception of evidence on affidavits;
(d) the issuing of any commission for the examination of witnesses.
(6) Any investigat'on before the Commissioner shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of 45 of 1860. the Indian Penal Code and the Commissioner shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the 2 of 1974. Code of Criminal Procedure, 1973.
(7) A claimant who is dissatisfied with the decision of the Commissioner may prefer an appeal against such decision to the High Court within the local limits of whose jurisdiction the registered office of the Company is situated:
. Provided that where a person, who is a Judge of a High Court is appointed to be the Commissioner, such appeal shall be heard and disposed o/' bv not loss than two Judges of that High Court.
22. After admitting a claim under this Ordinance, the amount due Disbursein respect of such claim shall be paid by the Commissioner to the m e n t of person or persons to whom such amount is due and on such payment, the t ]° nep y liability of the Company in respect of any claim relating to the under- m iS s i o n e r takings owned by it shall stand discharged.
23. (I) If out of the monies paid to him in relation to any undertaking Disburseowned by the Company there is a balance left after meeting the liabilities ment ot as specified in the Schedule, the Commissioner shall disburse such balance a"10"11*3 ^ .t /-. to the to the Company. Company.
(2) Where the possession of any machinery, equipment or other property has vested in the Central Government or any existing, or new, Government company under this Ordinance but such machinery, equipment or other property does not belong to the Company, it shall be lawful lor the Central Government or, as the case may be, the existing, or new, Government company, to continue to possess such machinery or equipment or other property on the same terms and conditions under which they were possessed by the Company, immediately before the appointed day.
24. Any money paid to the Commissioner which remains undisbursed Undlsor unclaimed on the date immediately preceding the date on which the bursca or office of the Commissioner is finally wound ur>, shall be transferred by unclaimeHi the Commiss'on°r, before his office is finally wound up, to the Central . , , Revenue Account of the Central Government; but a claim to any money t e d wi^jj so transferred may be preferred to the Central Government by the person the geneentitled to such payment and shall be dealt with as if such transfer had ral renot been made, and the order, if any, for payment of the claim being vei»ue treated as an order for the refund of revenue.
3i8 THE 'GAZETTE OF INDIA EXTRAQRDDfABY [PART II—
CHAPTER VII MISCELLANEOUS Ordinance 25. The provisions of- this Ordinance shall have effect notwithstanding to have anything inconsistent therewith contained in any other law for the time riding being in force or in any instrument having effect by virtue of any law, effect. other than this Ordinance, or in any decree or order of any court, tribunal or other authority, tton^o?" ^ ^ W h e r e ^ y lability of the Company arising out of any item liability. specified In Part I of the Schedule is not discharged fully by the Commissioner out of the amount paid to him under this Ordinance, the Commissioner shall intimate in writing to the Central Government the extent of the liability which remains undischarged and that liability shall be assumed by the Central Government.
(2) The Central Government may, by order, direct the existing, or new, Government company In which the undertakings of the Company become vested by virtue of any direction made under sub-section (2) of section 5 or declaration made under sub-section (1) of section 6, to take over the liability assumed by the Central Government under sub-section
(2), and on receipt of such direction, it shall be the duty of such existing, or new, Government company to discharge such liability.
Manage- 27. Notwithstanding the vesting under this Ordinance of the underment to takings of the Company in the Central Government or an existing, or continue n e w Government company,— to vest in the (*) the Custodian who hag been managing the affairs of such Custodian undertaking before the date on which the undertaking had so vested u n t i l shall, until alternative arrangements have been made by the Central al erna- Government or, as the case may be, such Government company, for range- " ^e Management of such undertakings, continue to manage the affairs menta o f the undertakings, as if the Custodian had been authorised by the have been Central Government, or, as the case may be, such Government comm a d e ' pany, to manage such undertakings;
(b) the Custodian or any person authorised by him for this purpose shall, until alternative arrangements have been made by the Central Government or, as the case may be, such Government company, continue to be authorised to operate, in relation to the undertakings of the Company, any account of such undertakings in any bank as if the Custodian or the person authorised "by him had been authorised by the Central Government or such Government com- -pany to operate such account.
Contracts ^ Every contract entered into by the Company in relation to any of to have ^ e undertakings owned by it, which has vested In the Central Governeffect ment under section 3, for any service, sale or supply and in force immeunless diately before the appointed day, shall, on and from the expiry of a ratified p e r iod of one hundred and eighty days from the appointed day, cease to Central *"""* e f f e c t u n l e s s s u c h o o n t r a c t is> before the expiry of that period, ratl- Govwm- fled, in writing, by the Central Government or the existing, or new, mentor Government company in which such undertakings have been vested theOov- under this Ordinance, and in ratifying such contract, the Central Government e r n H i e n t o r s u c h Government company may make such alteration or c°™" modification therein as it may think fit: .
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 219
Provided that the Central Government or such Government company shall not omit to ratify a contract and shall not make any alteration or modification in a contract—
(ct) 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 such Government company, and
(b) except after giving the parties to the contract a reasonable opportunity of being heard and except after recording in writing its reasons for refusal to ratify1 the contract.or for making any alteration or modification therein.
29. Any person who,— Penalties.
(a) having in bis possession, custody or control any property forming part of the undertakings owned by the Company, wrongfully withholds such (property from the Central Government or the Government company; or
(b) wrongfully obtains possession of, or retains, any property forming part of, the undertakings owned by the Company; or
(c) wilfully withholds or fails to furnish to the Central Government or the existing, or new, Government company or any person or body of persons specified by that Government or such Government company, as the case may be, any document relating to the undertakings owned by the Company, which may be in his possession, custody or control; or
(d) fails to deliver to the Central Government or the existing, or new, Government company or any person or body of persons specified by that Government or Government company, any assets, books of account, registers or other documents in his possession, custody or control relating to the undertakings owned by the Company; or
(e) wrongfully removes or destroys any property forming part of the undertakings owned by the Company or prefers any claim under this Ordinance which he knows or has reason to believe to be false or grossly inaccurate, shall be punishable with imprisonment for a term which may extend to two years and also with fine which may extend to ten thousand rupees.