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Section 8

Smith, Stanistreet and Company Limited (Acquisition and Transfer of Undertakings)Ordinance, 1977Ordinance · 1977

(1) For the deprivation of the Company of the management of its undertakings, there shall be given to the Company by the Central Government an amount calculated at the rate of ten thousand rupees per annum for the period commencing on the date on which the management of the undertakings of the Company was taken over by the Central Government and ending on the appointed day.

(2) The amount specified in section 7 and the amount determined under sub-section (7) shall carry simple interest at the rate of four per cent, per annum for the period commencing on the appointed day and ending on the date on which the payment of the amount is made by the Central Government to the Commissioner.

(3) The amount determined in accordance with the provisions of subsections (7) and (2) shall be given by the Central Government to the Company m addition to the amount specified in section 7.

(4) For the removal of doubts, it is hereby declared that the liabilities of the Company in relation to its undertakings which have vested in the Central Government under section 3, shall be discharged from the amount referred to in section 7, and also from the amounts determined under sub-sections (1) and

(2), in accordance with the rights and interests of the creditors of the Company.

SEC. I] THE GAZETTE OF INDIA : EXTRAORDINARY 363 1 of 1956.

CHAPTER IV MANAGEMENT, ETC., OF THE UNDERTAKINGS OF THE COMPANY

9. (./) The general superintendence, direction, control and management1 of the affairs and business of the undertakings of the Company, the right, title* and interest in relation to which have vested in the Central Government under section 3, shall,—

(a) where a direction has been issued by the Central Government under sub-section (1) of section 6, vest in the Government company specified in such direction; or

(fc) where no such direction has been issued by the Central Government, vest in one or more Custodians appointed by the Central Government under sub-section (2), and thereupon the Government 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 things as the Company is authorised to exercise and do in relation to its undertakings.

(2) The Central Government may appoint one or more individuals or a Government company as the Custodian of the undertakings of the Company in relation to which no direction has been issued by it under sub-section (1) of section 6.

Where this provision sits

ActSmith, Stanistreet and Company Limited (Acquisition and Transfer of Undertakings)Ordinance, 1977
Section8
StatusIn force as published by the source

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