 the metal corporation (nationalisation and miscella- neous provisions) bill, 1976 arrangement of clauses chapter i preliminaryclaus~ 1 short title and commencement 2 definitions 3 "undertaking"-meaning of  chapter ii taking over of management of the undertaking of the mi!'l'al corporation4 taking over of management of the undertaking of the metal corporation 5 appointment of administrator to take over the management of the undertaking 6 application qf act 1 of 1956  chapi'er iii acquisition of the undertaking of the metal corporation7 vesting of the undertaking of the metal corporation in the central government 8 central government to be the lessee of the state government 9 power of central government to direct vesting of the undertaking of the metal corporation in a government company  chapter iv payment of amounts10 payment of amount for deprivation of management 11 payment of amount for acquisition of the undertaking 12 time of payment  chapter v management, etc, of the undertaking of the metal corporation13 management, etc, of the undertaking  chapter vi provisions jlli:[ating to diployds of thi metals col\poution clausesit provisiodlltiating to employees 16 ptuyident and otheriudds  chaprer vii miscellaneous16 act to have overriding effect 17 contracts in bad faith may be canceiied or varied 18 protection of action taken m ,ova faith 19 delegation of powers 20 penalties 21 offences by companies 22 power to make rules 23 power to remove diftlcultiei 24 abolition of tribunal, etc 25 repeal of oi'dinance 12 c4 19'78 and ta\tihg  billto ptovide few the taking over of the management of ·the tmdertekiwg of the met corporation, after uch undertaking is deemed to 'mw ~eti tra"bferred to, am re-vested in, the acrid corpot'aticm, and for the bubnquent acquiaition of the undertaking of the metal corpotdron for the purpose of enabling the central gover"t1lm67&t, in the pubuc interest, to exploit to the fullest extent possible, the zinc and lead deposits in and around za""", 4i1'eiiin tjle state of rajasthan and to utilise those minerals in such manner as to subserve the common good, and for matte1" connected therewith m inciclefttal thereto be it enacte4 ,by parli~nt w the twenty-seventh y~r qf the repuqiic of incua as (ollows:- chaptp;:r i prelimuluys 1 (1) this act may be called the metal corporation (natfonatisation bhort "" and miscellaneous provisions) act, 1976 tit~     and com-(2) secwml 20 80021 sball cqlne in,to force at once and tbeotber menceprovitlions of this act shall be deemed tobave come into iwee on \he· ment 22ndgiay of otiiligber, ,965 2 intbts aot, -\hjless ihe oontut otherwije ~u41e,~ 10 (a) c4appo~ted day" means the 2nd day of 'au~ 1976; (b) "commencement of this act"' means the 22nd day of october, 1965; (e) "metal corporation" means the metal corporation of india limited, a company within the meaning of the companies act, 1956, 1 of 1956 and havin~ its registered office at calcutta; s 67 of 1957 (d) "mineral concession rules" means the mineral concession rules, for the time being in force, made by the central government under the mines and minerals (regulation and development) act, 1957; (e) "notification" means a notification published in the official 10 gazette; (1) "prescribed" means prescribed by rules made under this act '(g) words and expressions used in this act and not defined but defined in the companies act, 1956, have the meanings respectively 1 of 1956 assigned to them in that act is "und-taking" -meanlntot 3 for the purposes of this act, the undertaking of the metal corporation shall be deemed to include all assets, rights, lease' holds (including mining leases, if any), powers, allthorities and privileges and all property, movable· and immovable, including lands, buildings, works, mines workshops, projects, smelters, i'efineries, stores instruments, machinery, 20 locomotives, automobiles and other vehicles, mdned or extracted zinc or lead ores, concentrates and metals, in process, or in stock or in transit cash balances, cash in hand, re~rve fund, investments and book debts and all other rights and interests in, or arising out of, such property as were immediate'ly before the date of commenrement of this act in the 25 ownership possession, powl'r or control of the metal corporation, whether within or without india, and all books of account, registel'! maps sections, drawings records of survey and all other documents of whatever nature relating thereto; and shall also be deemed to include all boitowings, liabilities and obligauons of whatever kind of the metal cordot'8tion in 30 relation to its undertaking  chapter ii taking over of management of the undertaking of the metal corporationtakidi over of manage· ment of the undertakinjol the metal corporation 4(1) on the commencement of this act, the metal corporation of 35 india (acquisition of undertaking) act, 1986, shall stand repealed, and 36 of 1966 on such repeal, the underlakibk of the, metal corporatioo, which had been trandened to, and vested in, the cedtral govemment by virtue of the provisions of section 3 of the act so repealed and the undertakng of tile metal corporation together with au its properties, 'assets, liabilities 40 and obu~ation!l specified in sub-section (1) of section 4 of that ad and meh other properties, assets, liabilities and obligatons, acquired or imurre«!, fm the purposes of its :underlaking, after the z2ndday of odober, 1965, which stood, by virtue of the provisions of section 12 of the said act, tranalerred to, and vested in, the ("ovemment company 45 formed in pul'suadce of the provisions of section 12 of he act aforesaid shall, by virtue of the proniolla of this ad 1je deemed to have been retrlllllferred to, -re-y",w ill, the metal corporatiod, and,  the metal corporation (natiunalisation and miscellaneous provisions) bill, 1976 (to be/as~roduced in" 10k sabha)1 page (11), line 2,-f2r "metals" read "metal" 2 page 2, line 39,-for ''undertakng'' ~ 'tundertak1ng" 3 page 2, line 42,-for "obligatons" read "qbligat1ons" 4 page 2, line 46 ,-f2! "he ac t " re ad "the ac t " page 3, line 2,-read "tr ans ferred" f2r "ransferred" 6 page 9, line 36 ,-"or" for "on" read page 11, line 14,-read "abatement" fslr "abatment" new dellii; ~ugust 2~ 19~6 sravana ,1 98 (saka) immediately thereafter, the management of the undertaking of the metal corporation shall be deemed! to have been ransferred to, and \'ested id, the central government (2) any contract, whether express or implied, or other arrangement, 5 in ~o far as it relates to the management of the business and affairs of the undertaking of the metal corporation, and in force immediately before the commencement of this act, shall be deemed to have terminated on such commencement 1 of 1956, (1) all persons in charge of the management, including persons holding 10 offices as directors, managers or in any other managerial capacity specified in section 197a of the companies act, 19,j6, of the metal corporation immediately before the commencement of this act, shall be deemed to have vacated their offices as such on such commencement (4) notwithstanding anyth~ng contained in any other law for the time 15 being in force, no person in respect of whom any contract of managej1ent or other arrangement is tenninated by reason of the provisions of sub-section (2) or who cea~es to hold office by reason of the provisions contained in sub·section (3), shall be entitled to clatim any compensation for the premature termination of the contract of management or other 20 arrangement or for the loss of office, as the case may be 5 (1,) the central government may, as soon as it is convenient administratively so to do, 3ppoint, with effect from such earlier or later date (not beinr a date earher than the commencement of this act), any person or body of persons (including a government company, whether in 25 existence at the commencement of this act or incorporated thereafter) as the administrator of the undertaking of the metal corporation and the administrator so appointed shall carry on the management of such undertaking for and rm behalf of the central government appointment of administrator to take over the manage· ment of the undertaking (2) on the appointment of the administrator under sub-section (1), 30 the management of the undertaking of the metal corporation shall vest in such administrator and all pe>t'sons in charge of the management of such undertaking immediately before such am>ointment shall cease to be in charge of such management and shall be bound to deliver to the administrator all assets, books of account, registers and other documents 3s in their custody relating to the undertaking of the metal corporation (3) the central government may issue such directions (including instructions as to initiating, defending or continuing any legal proceedings before any court, tribunal or other authority) to the administrator as to his powers and duties as the central government may deem desirable 40 and the administrator may also apply to the central government at any time for instructions as to the manner in which the management of the undertakjn~ of the metal corporation, or in relation to any other matter arising in the course of such management, shall be conducted _ (4) where any property, the management of which h~s vested in the "'" central government under trection 4, is in the posseslilon, custody or oontrol of any person, such person shall deliver the property to the central government forthwith (5) any person who, at the commencement of this act, has in his possession or under his control any books, papers or other documents relating to the undertaking of the metal corporation shall be liable to 5 account for such books, papers and other documents to the administrator and shall deliver them up to the administrator or to such person as may be authorised by the central government or the administrator in this behalf (6) the metal corporation shall within such period as the central 10 government may allow in this behalf, furnish to that government a complete inventory of al1 the properties and assets (including particulars of book debts and investments and belongings) of the metal corporation at the commencement of this a~t, all' liabilities and obligations of the metal corporation subs·isting at such commencement and also of all is agreements entered into by the metal corporation and in force on such commencement, including agreements, whether express or implied, relating to leave, pension, gratuity and other tenns of service of any officer or other employee of the metal corporation under which, by virtue of the provis'ions of this act, the central government has, or will have, 20 or may have, liabilities, and for this purpose, the central govemment shall afford the metal corporation all reasonable facilities (7) the administrator shall hold office during the pleasure of the central government and shall receive, from the funds of the undertaking of the metal corporation such remuneration as may be fixed by the 25 cerltral government application of act 1 of 1956 g (1) notwithstanding anything contained in the companies act 1956, or in the memorandum or articles of association of the metal corporation so long af; the management of the undertaking of the metal corporation remains vested in the central government,-30 (a) <it shall not be lawful for the sbarehoiders of the mew corporation or any other person to nominate or appoint uy person to be a director of the metal corporation; (b) no resolution passed at any meeting of the shareholders of the metal corporation on or after the commencement of this act 3s shall be given eftect to unless approved by the central government; (c) no proceeding for the winding up of the me·tal corporation or for the appointment of liquidator or receiver in respect of the undertaking thereof shall lie in any court except with the consent of the central government  40 (2) subject to the provisions contained in subsection (1), and to the other provisions contained in this act and subject to such other exceptions, restj'ictions and limitations, if any, as the central government may, by notification specify in this behalf, the companies act, 1956, shall continue 1 of 1918 to apply to the metal corporation in the same ijumner as it applied thereto before the date of commencement of this act ai  chapter til acqulsmon of the undertaking of the metal corporation7 (1) on the appoiated day the undertakinr of the metal corporation ~d the rig~t, title anel interest of the metal corporation in relation t~ 5 lis undertaking, shall stand transferred to, and sbajj vest absolutely in the central government  vestinl of the undertaking of the metal corporation in the central government  (2) su~ject to the other provisions contained in this act, all property mcluded m the undertaking of the metal corporation which has vested in t~e central government under sub-section (1) shall, by force of such 10 vestmg, be freed and discharged from any trusts, obligations, mortgages, charges, liens! and other incumbrances affecting it, and any attachment, injunction or any decree or order of a court, tribunal or other authority restricting the use of such property in any manner shall be deemed t~ have been withdrawn is expzanation-for the removal of doubts, it is hereby declared that the mortgagee of any property included in the undertaking of the metal corporation, or any other person holding any charge, lien or other interest in, or in relation to, any such property, shall be entitled to claim, in accordance with his rights and ijnterests, payment of the mortgage 20 money or other dues, in whole or in part, from the central government but no such mortgage, charge, lien or othel;' interest shall be enforceable against any property which has vested in the ce~tral government (3) subject to the other provisions contained in this act, all contracts and working arrangements which are subsisting immediately before the 25 appointed day and affecting the metal corporation shall, in so far as they relate to the undertaking of the metal corporation, cease to have eliect or be enforceable against the metal corporation or any person who was surety or had guaranteed the performance thereof and shall be of as full force and effect against or in favour of the central government 30 and enforceable as fully and effectually as if, instead of the metal corporation, the central government had been named therein or had been a party thereto (4) subjee;t to the other provisions conta1ned in this act, any proceed-36 of 19661 central governmentto be the lessee of the state government ~~ ing or cause of action pending or existing immediately before the 3s appointed day by or against the metal corporation or the central government or the government company referred to in section 12 of the metal corporation of india (acquisition of undertaking) act, 1966 in relation to the undertaking of the metal corporation may, as from that uay, be continued and e'nforced by or against the central government or 40 the government company referred to in section 9, as it might have been enforced by or against the mfrlal cwporation, the central government or the government company, as the case may be, if this act had not been promulgated, and shall cease to be enforceable by or against the metal corporation, its surety or guarantor 4s 8 (1) where the right of the metal corporation under any mining lease granted, or deemed to have been granted to it by any state government or any other person, vest in the central government under section 7, the central government shall, on and from the date of such vesting be deemed to have become the lessee of such state government so or such other person, as the case may be, in relation to such mine, as if a mining lease in respect of su{'h mine had been granted ~o the ~entral government and the period of such lease shall be the entire penod for which such lease could have been granted by the state government or such other person under the mineral concession rules, and, thereupon all the 'rights under such mining lease, including surface, underground and other rights granted to the lessee shall be deemed to have been transferred to, and vested in, the central government (2) on the expiry of the term of any lease referred to in su1>section (1), such lease shall, if so desired by the central government, be renewed by the state governltlent or other person on the same terms and conditions on which such lease was held immediately before the appointed day by the metal corporation, for the maximum period for which such 10 lease could be renewed under the mineral concession rules, 9 (1) notwithstanding anything contained in section 7, the central government may, if it is satisfied that a government company is willing to comply, or has complied, with such terms and cond~tions as that government may think fit to impose, direct, by an order in writing, that is the undertaking of the metal corporation and the rightt, title and interest of the metal corporation in relation to such undertaking shall, instead of continuing to vest in the central government, vest in ,the government company either on the date of publication of the direction or on such earlier or later date (not being a date earlier than the appointed day) 20 as may be specified in ~he direction power of central governmentto direct vesung of the undertaklngof the metal corporation in a government company (2) where the right, title and interest of the metal corporation in relation to its undertaking vest in a government company under subsection (1), the government company shall, on and from the date of such vesting, be deemed to have become the lessee <in relation to the mines of 2s which the metal corporation was the lessee as if a mining lease in respect of such mines had been granted to th~ government company, and the period of such lease shall be the entire period for which such lease could have been granted under the l\lineral concession rules; and all the rights and liabilities of the central government in rel8tt1ion to such mines shall, 30 on and from the date of such vesting, be deemed to have become the rights and liabilities, respectively, of the government company, (3) the provisions of sub-section (2) of section 8 shall apply to a lease which vests in a government company as they apply to a lease which has 'vested in the central government and any reference therein to the 3s central government shall be construed as a reference to the government company (4) any reference hereafter in this act to the government company 9hal1 be construed as a reference to the government company which is appointed as the administrator under sub-section (1) of section 5, or as 40 the case may be, the government company referred to in the direction made under sub-section (1)  chapter iv payment of amountspayment of amount for deprivation 01 management 10 for the deprivation of the metal corpol'ation of the mana,ement 4s of its uudertaking, there shall be given, in cash, to the metal corporation by the central government, an amount, calculated at the rate of rupees eleven lakhs and thirty-nine thousand per annum, lor the period commeneidg on the 2znd day of october, 1965, add endina on the appointed day so it for the transfer to, and vesting in, the central government, under section 7 of the right, title and interest of the metal corporation' in relatioa to its undertaking, there shall be given, in cash, by the central government to the metal corporation, an amount of rupees one crore 5 and ninety-e!ght lakhs paymedt of amount foraequiaition of the undertaking tlmeof payment 12 (1) the amount determined under section 10, ancl the amount payable under section 11, shall be given by the central government to the metal corporation before the expiry of a period of three months maid 'he appointed day uhereafter referred to as the specified period) 10 (2) the amount referred to in sub-section (1) shall, if not paid before the expiry of the specified period, carry simple interest at the rate of four per cent, per annum, for the period commencing on the date of expiry of the specified period and ending on the date on which payment of such , " amount is made by the central governmen:t to the metal corporatio~: i 5 provi~ed that no interest shall run from the elate pn which the amrunt is tendered to the metall corporatioa if the amounu so tendered is not u~ed~~ ,  chapter v management, etc, of 'me undertaking of the metal corporationmanage-hidtii,v' , etc,otlhe under-' taldrie 20 13 the general superintendence, direction, control and management of the affairs and business of the undertaking of the metal corporation, the right, title and interest in relation to which have vested in the central government under section 7, shall vest in the government company specified in the dir(:ction made under sub-section (1) of section 9, 25 and, thereupon the government company shall be entitled' to exercise all such powers and do all such things as the metal corporation is authorised to exercise and do in relation to its undertaking  chapter vi provisions rel  ting to employees of the metal corporationprov!-s1ons~ latinl to empioyeer 30 u (1) every officer or other employee of the metal corporation (except a director or any managerial personnel specified in section 197f\ 10f 1956 of the companies act, 1956, or any other person entitled to manage the whole or a substantial part of the business of the metal corporation under a special agreement) in the employment of the ~tal corporation 35 immediately before the comm~ncement o~ thi,s ~ct shall, ~il so far as such employee is employed in connection with the affairs of the undertaking of the metal corporation, become, as from such commencement, an officer or other employee, as the case may be, of the central government or the government company and shall hold office by the 40 same tenure and at the same remuneration a?d upon the sa~ terms a~ conditions :md with the sume rights and pnv1leges as to pension, gratuity and other matters as he would have held under the metal corporation if this act had not been enacted and shall continue to do so until his employment under the central government or the goverrunent company is duly terminated or until his remuneration, terms and condi-45 tions are duly altered by the central government or the goverrunent company: provided that if the alteration so made is not acceptable to any such officer or o,ther employee, his employment shall be terminated by the ,  'central govetnment or the government company on payment of an amount equivalent to-(a) three month's remuneration, in the case of permanent employees, and (b) one months' remuneration, in the case of other employees: s provided further that nothing in this section shall apply to any: officer 'or other emp10yee who has, within thirty days next following the commencement: of this act, by notice in writing to the central government or the government company, as the case may be, intimated his intention of not becoming an officer or other employee of the central government 10 or the government company 14 ot uk7 (2) 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 the metal corporation to the central government 01' the government company shall not entitle is such oiiicer or other employee to any compensation under that act or other law, and no such claim shall be entertained by any court, tribunal or other authorities provident and other lunda 15 (1) where the metal corporation has established a provident, superannuation, welfare or other fund for the benefl,t of the persons em- 20 ployed in its undertaking, the monies relatable to the officers or other employees whose services have become transferred by or under this act to the central government or the government company, shall, out of the monies standing, on the appointed day, to the credit of such provi-· dent, superannuation, welfare or other fund, stand transferred to, and 25 vested in, the central government or the government company, as the case may be (2,) the monies which stand transferred, under sub-section (1), to the centr'al government or ,the government company as the case may be, shall be dealt with by that government or government company in such 30 manner as may be prescribed  chapter vii miscellaneousact to bave overridin, eftect, 16 the provisions of this act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time 3s being in force or in any instrument having effect by virtue of any law, other than this act, or in any decree or order of any court, tribunal or other authority 17 (1) if the central government is satisfied after such inquiry as contracts in bad faith maybe cancelled ar varied it may think fit that any' contract or agreement entered into at any time 40 within three years immediately preceding the commencement of this act between the metal corporation or the managing agents of metal corporation and any other person, in so far as such contract or agreement relates to the undertaking of the metal corporation, has been entered into ,in bad faith or is detrimental to the interests of the undertaking of the 45 metal corporation, it may make an order canc:elling (either unconditionally or subject to euch conditions as it may think fit to impose) or varying the contract or agreement, and thereafter the contract or agree-~e,'t shall have effect accordingly: provided that no such contract or agreement shall be cancelled or varied except after giving to the parmes to the contract or agreement a s reasonable opportl1nit~· of being herrd (2) any person aggrieved by an order made under sub-section (1) may make an applicamon to the high court at delhi for the variation or reversal of such order and thereupon such court may confirm, modify or reverse such order 10 protection ot action taken in good faith 18 (1) no suit, pm<:ecution or other ie~al proceeding shall lie a~inst the central government or any officer of that government or the administrator or the government comnflny or any officer or other person authorised hy that government or government comnany for anything which is in good faith don':'! or lntendf:'d to be done under' this act is (2) no suit or other legal proceeding shall lie against tbe central gov-'ernment or any of its officers or other employees or the government company or anv officer or other !ji!rson authorised by that company for anv dama~e causf"d or likely to be caui';ed by anything which is in good 1aith done or ~ntended to be done under this act dele,a-hon ot po\l\'ort 20 19 (1-) the central gm·ernment may, by notification direct that all or any of th(' powers exercisable by it under this act other than thf' power conferred by section 22, may also be exercised by such person or persons, as may he sp('cified in the nntification (2) whenever an  dele~ation of power is made under sub-sec,tion (1) 2s the persons to whom such power has been delelzatedshall act under the direction, control and supervision of the central government 20 any person who-penalties fa) havin~ in hil:; possession custody or ('ontrol any property forming' part of anv undertakinlz of thp metal corporation ~~-30 full  withholdr ruc'h l>roperty from the cf:'ntral government or government company: or '(b) wrongftlllv obtains possession of or retains any property formin~ part of the undertaking of the metal corporation or wilfully withholds or failr to furnish to the central governm~nt or thf" 3s government company or any person or body of persons sqecific'd by that government on government company any d~ment rf:'latinl! to such undertakinv which mav be in his possession, custody or control or fails to deliver to the central governmen~ or the government company or anv person or bodv of persons snecified by that 40 government or government c'ompanv, any assets books of ac'counts rem-stefl; or other documents in his oosresrion custody or ('o~trol relating to the undertaking of the metal corporation; or (0) wrongfully removes or destroys ariy property forminll l>art of any undertaking of the m~ttl corporatiori or prefers any clsun urider this act which he knows or has ,reasonable cause to believe to be false or ~rossly, inaccurate, shall be punishable with impris( nment for a term which may extend to two years, or with fine which may extend to ten thousand rupees, or with both s offence by companles 21, (1) where an offence under this act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence'! and shall be liable to be proceeded against and 10 punished accordingly: provided that nothing contained in this sub-sec'lttion shall render any such person liable to any punishment if he proves that the offence was commuted without his knowledge or that he had exercised all due diligence to prevent the commission of such offence 15 (2) notwithstanding anything ('ontained in sub-section (1), where any offence under this act has been committed by a company and it is proved that the offence has been committed with the consent or ronnivance of, or is attributable to any neglect on the part of, any d!rector, manager, secretary or other officer of the company, such director, mana~et", 20 secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordinf,ly exp!anation-for the purposes of this section,-(a) c'company" means any body corporate and includes a finn or other association of individuals: 25 (b) 'director", in relation to a firm, means a partner in the firm 21 (1) the central government may, by notification, make rules for carrying out the provisions of this act power to man rules (2) in particular, and without prejudice to the ~nerality of the foregoing power, such rules may provide forall or any of the following 30 matters, namely:-cui) the manner in which the monies in any provident or other fund referred to in sub-section (2) of section 1'5 shall be dealt wuh; (b) any other matter which is required to be, or may be, prescribed 35 (3) every rule made' by the centnl government under this act shall be laid, as soon as may be after it is made, before each house of  parliament while it is in session for a total period or thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session 40 or the successive sessions aforesaid, both houses agree in making any modificrttion in the rule or both houseg agree that the rule should not be made the rule shall thereafter have effect only in sueh' modified form or be of no effect, as the· case may be; so, however, that any modification or annulment shall be without prejudice to the validity of anything pre· viously done under that rule 23 if any difficulty arises in giving effect to the provisiong of this act, the central government may, by order, not inconsistent with the 5 provisions of this act, remove the difficulty: power to remove difficulties provided that no such order shall be made after the expiry of a period of two years from the date on which this act receives the assent of the president 24 (1) on the commencement of this act, the tribunal constituted abolition of tribunal, etc 10 un tier sub-sectiort( 1) of section 11 of the metal corporation of india 36 of 1966 (acquisition of undertaking) act, 1960, shall stand abolished and every proceeding pending before it, every order made by it and every appeal or application against any such order, shall stand abated, and, on such abatment, the central government shall take charge of all records of 15 proceedings, applications, memoranda, regrsters and other documents maintained by, or in connection with any proceedng before, the tribl'nal (2)' on the commencement of this act-20 30 (a) ev~ry suit, appeal or other proceeding of whatever nature in relation to the affairs or business of the undertaking of the metal corporation instituted before such commencement, and pending on such commencement shall not abate, be discontinued or be, in any way prejudicially affected by reason of anything contained in this act, but the suit, appeal or other proceeding may be continued, prosecuted and enforced by or against the metal corporation and not against the central government or the government company; (b) every suit, appeal or other proceeding of whatever nature instituted after such commencement but before the appointed day, in relation to the affairs or business of the undertaking of the metal corporation, and pending on the appo'inted day, shall not abate, be discontinued or, in any way, be prejudicially affected by reason of anything contained in this act, but such suit, appeal or other proceeding may be continued, prosecuted and enforced by or against the central government or the government company (3) anything done, any action taken or any contract entered into by 35 the central government, administrator or the government company at any time during the period commencing on the 22nd day of october, 1965, and ending on the appointed day shall be deemed t6 have been done, taken or enrered into by the central governmelltt or, as the case may be, the government company in the due course of management of the under-40 taking of the metal corporation 25 (1) the metal corporation (nationalisation and miscellaneous provisions) ordinance, 1976 is hereby repealed repeal of ordinance 12 of 1976 (2) notw~thstanding such repeal, anything done or any action taken and saving under the said ordinance shall be deemed to have becn done or taken 45 under the corresponding provisions of this act the metal corporation of india limited, a company, had a mmmg lease in respect of zinc-lead deposits in zawar area in rajasthan and owned a lead smelter 8,t tundoo in bihar it had undertaken to expand production from the zawar mines and to construct a zinc smelter near udaipur for producing electrolytic grade zinc and bye-products however, for various reasons, the corporation was not able to complete the projects it had undertaken the construc,uon work came to a standstill and the corporation failed to meet its repayment obligations to the suppliers of machinery and others 2 as zinc and lead are essential raw materials fot' the economy of the country and are of considerable strategic importance to the country, it was necessary in the public interest that the projects undertaken by the corporation should be completed as soon as possible in the circumstances, for the speedy development and expansion of the zinclead depos~ts, the undertaking of the metal corporation of india was acquired by the central government with effect from 22nd october, 1965 by a parliamentary legislation, enacted in 1965 the said act, having been struck down, was replaced by the metal corporation of india (acquisition of undertaking) act, 1966 (36 of 19(6) the undertaking of the corporation was la,ter vested in the hindustan zinc limited, udaipur, a government company, with effect from 10th january, 1966 3 section 10 of the 1966-act provided for payment of compen!llation for the acquisition of the undertaking by the central government to the metal corporation the principles for the determination of the amount of the compensation were specified in the schedule to the act and it was provided that where the amount of the compensation could be fixed by agreement, it shall be deternlined in accordance with such agreement; but where no such agreement could be reached, ;the central governme'nt shall refer the matter to a one-man tribunal the amount of compensation could not be determined by agreement because the corporation wa~ engaged for about four years from 196') in questioning the vires of 1965-act in the punjab high court and the vires of the 1966-act first in the supreme court and then in the calcutta high court the calcutta high court ultimately dismissed its writ petition on 1st april, 1969 4 pursuant to section 10 of the 1966-act, efforts were made to determine the amount of compensation by mutual agreement an offer of compensation of rs 198 crores was made to the corporation in april 1971 as there was no response to the offer from the corporation withil'l the time-limit specified jn the offer, a one-man tribunal was constituted on 29th november, 1971, as provided under section 11 of the 1966-act 5 thp tribunal collld not commence its proceedings as, in the meanwhile, some of thf' shareholders of the corporation filed a writ petition in the calcutta hi~h court, seeking tm injunction against the proceedings of the 'rribunal that petition was finally dismissed in july, 1972 6 thereafter, the tribunal directed the corporation in august, 1972, to file its claim the corporation, however, wan,1led inspection of the records before filing its claim, and, after protracted proceedings arising out of its pleas, the corporation ultimately 1iled <its claim on 27th april, 1974, claiming bs 10180 crores the central government filed a written reply in september, 1974, and the corporation filed its rejoinder in november, 1974 7 thereafter, the issues were to be framed, but the corporation wanted inspection of records once again and also sought financial assistance from the government to present its case effectively this plea of the corporation further delayed the determination of the amount of compensation finally, on 21st june, 1976, the corporation went to the extent of withdrawing from further participation in proceedings before the tribunal 8 the undertaking of the corporation was acquired for the speedy development of the zinc-lead deposits the prolongation of the pro('eedings before the tribunal by the corporation continued to leave indc'erminate the amount of compensat~on payable, which ultimately has to be capitalised this was standing in the way of formulation and execution of plans for further increase in production of these critical metals by the government company in which the undertaking was ves,ted under section 12 of the 1966-act 9 in pursuance of the continued objective of increased production of zinc and lead metals and to subserve the common good, which, for the reasons stated now, necessitated end'ing of the uncertainty in regard to the amount of compensation payable to the corporation, the me"tal corporation (nationalisation and miscellaneous provisions) ordinance, 1976, was promulgated by the president on 2nd august, 1976 10 the bill seeks to replace the said ordinance new delhi; chandrajit yadav the 6th augu8t, 1976  president's recommendation under article 117 of the constitution of india[copy of letter no 54018(1)176-met ii, dated the 9th august, 1976 from shri chandrajit yadav, minister of steel and mines to the secretary-general, lok sabha] the president having been informed of the subject matter of the proposed bill recomm~nds to the house the introduction of the bill under article 117 (1) of the constitution of india and also recommends the consideration of the bill under article 117 (3)  sllb-clause (1) of clause 4 of the bill seeks to provide that the right, title and interest in relation to the undertaking of the metal corporation, which had been transferred to, and vested in, the central government on 2~nd october, 19€5 under section 3 of the metal corporation of india (acquisition of undertaking) act, 1966 (36 of 1966), and was th~reafter transferred to, and vested in, the hindustan zinc lim~ted, a government company, sh~ll stand re-transferred to, and re-vested in, the metal corporation and immediately thereafter the management of the undertakillg of the metal corporation would vest in the central government according to the bill, the management of the undertaking of the metal corporation remained vested in the central government for the period commencing on 22nd october, 1965 and ending on 2nd august, 1976, ie the day on which the metal corporation (nationalisation and l\1iscellaneous provisions) ordinance, 1976 (12 of 1976) was promulgated by the pres,ident clause 10 of the bill, therefore, provides for the payment of an amount, at the rate of rs 1139 lakhs per annum, for the deprivation of the metal corporation of the management of its undertaking during the period aforesaid the total amount to be paid for the period aforesaid will thus come to rupees 12279 lakhs clause,7 of the bill seeks to provide that on and £rom the appointed day, ie the 2nd day of august, 1976, the wldet;taking of the metal corporation shall stand transferred to, and vested in, the central government clause 11 of the bill seeks to provide for the payment of an amount of rupees 198 lakhs to the metal corporation for the aoqui9ition of its undertaking clause 12 of the bill provides that the amount aforesaid is to be paid within a period of three months from 2nd august, 1976, and in case of non-payment of the amount within the period aforesaid, the amount will carry simple interest at the rate of 4 per cent per ~um until it is paid since it is not proposed to delay the payment of the amount, no expenditure is likely" to be involved for payment of any interest the bill, if enacted would, therefore, involve a non'recutting expenditure of a total amount of rupees 32079 lakhs (rupees 12279 lakhs + rupees 198 lakhs) since management of the undertaking of the metal corporation is proposed to be vested in th:, hindustan zinc limited immediate]y after it has vested in the central government, no other recurring and nonrecurring expenditure would be im·o]ved sub-clause (1) of clause 22 of the bill empowers the central government to make rules to carry out the provh,ions of the bill sub-clause (2) of that clause enumerates the matters in regard to which the rules may he made these' are matters of detail and could hardly be provided in the bill itself the de!egation of legislative power is, therefore, of a normal (·haracter memorandum regarding changes in the legislation to replace the imetal cotp'lration in(ltiona1i~atior and miscellaneous provisions) ordinance, 1976 besides necessary drafting and consequential changes the following changes have been made in the bill, namely:-1 an explanation has been inserted in sub-clause (2) of clause 7 the explanation is only of a clarificatory nature 2, in sub-clause (2) of clause 17, the word "delhi" has been substituted for the word "calcutta" in the ordinance the high court of calcutta was given jurisdiction tlj entertain appncations for the variation or reversal of orders passed under sub-clause (1) of that clause because the registered office of the metal corporation of india limited is at calcutta but since the ord,ers against which such applications may be made, could be made by the central government, the jurisdiction to hear such applications is being given to the high court at delhi 3, in sub-clause (1) of clause 24, a provision has been included requiring the central government to take charge of all records and other documents of the tribunal which has been abolished  a billto provide for the taking over of the management of the undertaking of the metal corporation, after such undertaking is deemed to have been transferred to, and re-vested in, the said corporation, and for the subsequent acquisition of the undertaking of the metal corporation for the purpose of enabling the central government, in the public interest, to exploit to the fullest extent possible, the zinc and lead deposits in and around zawar area in the state of rajasthan and to utilise those minerals in such manner as to subserve the common good, and for matte;s connected therewith or incidental thereto (shri chandrojit yadav minister of steel and mines) 