the hind cycles limited and sen-raleigh lilm ed (nation a,lisation) bill, 19f3n (to be/as introduced in 10k s"bha) 1 page 2, line ~,-fq1: "releigh" ~ "raleigh" 2 page 5, in the mareinal heading to clause 6,-after "power c)f" insert "central" 3 page 8, line 17,-fo r " amoun t " ~ "arno un t s " 4 page 9, line 7,-fqr "underakings" ~ "undertakings" 5 page 11, line 42,-after "company" insert "concerned," a page 11, in the marginal heading to clause 26,-for "company" !qaq "companies" new delhi· , november 26, 1980 agra}1ayapa 5, 19 ()2 (sak a)  the hind cycles limited and sen-raleigh limited (nationalisation) bill, 1980 arrangement of clausescl\usu  chapter i preliminary1 short title and commencement 2 definitions  chapter ii acquisition of the undertakings of the two companies3 transfer to, and vesting in, centra} government of the undertakings of the two companies 4 general effect of vesting 5 owners of the two companies to be liable for certain prior lia bili ties 6 power of central government to direct vesting of the undertakings of the two companies in two government companies  chapter iii pa yment of amounts7 payment of amount 8 payment of further amounts  chapter iv management, etc, 0' the undertakings of' the two companies9 muagement, etc, of the undertakings of the two companies 10 duty of persons in charge of management of the undertakings of 'the two companies to deliver all assets, etc 11 duty of persons to account for assets, etc, in their poueuion 12 accounts and audit  chapter v provisions relating to employees of the tw'-l companies13 continuance of employees 14 ·ptqvi4ct fund and otber f'imda  chapl'er vi commissioner of payments clauses'15; appointment of commi&3ioner of payments 16 payment by central government to the commissioner 17 certain powers of central government or government companies 18 claims to be made to the commissioner 19 priority of claims 20 examination of claims 21 admission 'f rejection of claims 22 disbursement of money by the commissioner 23 dish'ursement of amount!' to the two companies 24 undisbursed or unclaimed amount to be deposited with the general revenue account  crapter vii miscellaneous25 act to have overriding effect 26 contracts to cease to have effect unless ratified by central government or gov€'rnment com;>anies 27 penalties 28 offences by companies 29 protection of action taken in good faith 30 delegation of powers 31 power to make rules 32 power to remove difficulties 33 repeal and saving the first schedule the second schedule the third schedule  'tiie hind cycles limited and sen-raleigh limited (nationallsation) bill, i980 a billto p1'o'uide jew the acquisition of the undertakings of hind cycle limited, and sen-raleigh limited, with a view to securing the proper management of such undertakings so as to subserve the interest of the general public by ensuring the continued manufacture, pr0-duction and distribution ot bicycles and their component parts and accessories which are essential to the needs of the economy of the country and few matters connected therewith or incident41 thet-eto whluas hind cycles limited and sen-raleigh limited had been engaged in the manufacture and production of articles mentioned :b1 the first schedule to the industries (development and regtllation) 85 et 11 act, 1951, namely, bicycles and their component parts and accessories; 5 and whereas the management of the undertakings of hind cycles limited and sen-raleigh limited were taken over by the central gov--nment under the provisions of the industries (development and 50uw1 regulation) act, 1951; a:jm whbrbas it is necessary to acquire the undertakings of hind 10 cycles limited and sen-raleigh limited to ensure that the intereeta of the eeneral public are served by the continuance, by the undertakings of the two companies, of the manufacture, production and diitribuotion of the aforesaid articles which are essential to the needl of the economy of the country; r be it enacted hy parliament in the 'l'hiriy-ftrst year of the 'republic of india as follows:- chapl'er ipreliminary ,- i 1 (1) th;s act, may be called the hinci cycles umited and sed 5 releigh limited (nationalisation) act, 1980   shol't title ~ ccftl- - acemeat(2) it shall be deemed to have come into force on the 15th day of october, 1980 2 in this act, unless the context otherwise requirel-(a) "appointed day" means the 15th day of october, 1980; 10 (b) "commissioner" means the commisbioner of p~ appointed under section 15; (e) "custodian" means the custodian appointed wad _~ section (2) of section 9 to take over or carry on, the management of the undertakings of either, nr both, of the two companies; is (d) "notification" means fl notification published in tlui ojftcial gazette; (e) "prescribed" means prescribed by rules made ujiidtir thia act; <1> "sen-raleigh limited" includes sen and pandit industries 20 limited, ancillary industries (lugs) private limited, an~lel7; industries (forgings) private limited, ancillary ~ (cranks) private limited and naokhali machine tools limited, all having their registered offices at i, middleton street, calcuua; (g) "specified date", in relation to any provision of this ad, 25 means such date as the central government may, by notification, specify for the p'ilrposes of that provision and cw!erent date may be specified for different provisions of this act; (h) "two companies" means hind cycles limited 'and sen-raleigh limited, being companies as deftned in the corilpameaat, 30 1956, and having their registered oftices at blrtagram, nagda (madhya 1 of ish pradesh), and 1, middleton street, calcutta, respectively; (i) words and expressions used herein and not defined but defined in the companies act, 1956, shall have the meanings, re~~ly, lor 1168 assigned to them in that act 35  chapter ii ac/iuisition of the vndertaldngs of the two compakds3 on the appointed day, the wid~rtajdngb of each of the' two ~'" p~iu'ea, and the rchf, title and'interest of each of the'two eoai  rfii relation to such undertakings, shall, by virtue of this' act: ·iam; ~~ 40 ierred to, and sbah vest in, tbe central govemmellt transfer to, anti veel in, in, catral gota'llment of the underta~ of the two companiel 4:' (jr' 'nie uftd~takin~' of eat'h co~rty referred to in sectiirn ~ o_el sarli be deemed to include· all assets, rights, lease-holds, powers, autllo-ret fft rifles 'and privileges, and all property; movable and immovable, including velt1n • latlas,: buildings, workshops, stores, instruments, machinm-y and equip-s ment cash balances, cash on hand, cheques, demand drafts, reserve funda, i1i~estments, book debts and all other rights and interests in; or arisfng out of, such proqerty as were immediarely before the appointed day in the ownership, possession, pow~ or control of such comp;any, whether within or outside india, and all books of account, regi8fers and 10 ah" other documents of whatever nature relating thereto, add shld allo be deemed to include the iiabllities specified in lsub-8ection (z) f section 5  (2) all preperties as aforesaid which have vested in the centriil covernment under section 3 shall, by force of such vesting, be freed and 15 discharged trom any trust, obligation, mortgage, charge, lien and au other encumbrances aft'ecting them, and any attachment, injunctiod, decree or order of any court restricting the use of such propertlei!j" ahy manner or appointing any receiver in respect of the whole or any part of such properties shall be deemed to have been withdrawn :l0 (3) every mortgagee of any property which has vested under this ad in the central government and every person holding any charje, lien or other interest in, or in relation to, any such property shall give, within such time and in such manner as may be prescribed, an intimation to the commissioner of such mortgage, charge, lien or other interest ~5 (4) for the removal of doubts, it is hereby declared that the mom-gagee of any property referred to in sub-section (3) 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 interests, payment of the mortgage money or other dues, in whele or go in part, out of the amo'unt specified, in relation to the companyow8ng such property, in the fi~t schedule, and also out of the amounts determined under section 8, but no such mortgage, charge, lien or other interest shall be enforceable against any property which has vested in the central government 35 (5) any licence or other instrument granted to either of the twe companies in relation to any undprtaking which has vested in the om trai government under section 3 at any time before th~ appointed day and in force immediately before that day shall continue to be in force on and after such day in accordance with its tenor in relation to and 40 for the purposes of such undertaking, and, on and from the date of vesting of such undertaking 1lndpr section 6 in a government company, such  government company shall be deemed to be substituted in such licence or other instrument as if such licence or other instrument had been granted to such government company and such government com-45 '?any shall hold it for the remainder of the period for which the company tq which it was granted, would have held it under the terms thereof :l\t~~· ;- (6)'ii; on the appou,wd day,'any 'wit, apptl8:i \p~,othitr p~ o'f ~1) :)~~'~~ w_tever·nature in relation ta any matter specified in lub,~eetiq,n ,(~) ~ ';!',j""" oieection 5, in respect of any undertaking of either of the two c0j:npbdf8l, instituted, or preferred by of, against either of the two, companies, is pending;,th" same shall not abatft-be discontinued or be, in any way, p~ej4-di~,, ~ lylufected by reason of the transfer of the undertaking& of either oftbe two ·eompanies or of , anything containe~ in this actt but the, $uit" appeal or other proceeding may be c~tmued, prosecuted or enforced by or against the central government, or, where the undertakings at, ~~" twocompanies are directed,under section 6, to vest in govei'jux1ept coirr' 10 panies, by or against the concerned government company " ' 5 (1) every liability, other than the liability specified in su~seetiod (2), of each of the two companies in respect of any period prior to the appointed day, shall be the liability of the concerned company and shall '" "', : be enfo~ceable agamst it and n'ot against the central government, ort 15 vlfher~ the undertakings of the two compan~es are directed, under section 6 to vest in government companies, agajn~t the concerned government owneraof the two companies to be liable for certain prior liabilities c9,mp~y·  (2) any jiability arising in re~pect of materials 8upplied to either of the two companies after the management of the undertakinp of the 2') company had been taken o-:!er by the central government shall on and from the appointed day, be the liability of the central government or of the coneemed government company aforesaid and shall be dlschlttged by that govemment or gove~mcnt company, as and when repaymedt for stichsup1!lies ~omes due and payable 2s ~3) for the removal ()f doub~, it is hereby declared that-(a) save a: otherwise expressly provided in this section or in  any other prg'jision of this act, no liability other than the " liability specified in sub-section (2), of either 'of 'the two companies in relation to its undertakings in reo;;pect of any period prior to the 3" appointed day, shall be enforceable against the central government, or, where the undertakings of the two companies are directed, under section 6, to vest in government companies, against the concerned government :::~'r:many; (b) no a-nard, decree or' order of any court, tribunal or other:15 authority in relation to the undertakings of either of the two companies, passed on or after the !lpp:jinted day, in respect ot any matter, claim or dispute, not being a mcatter, claim or di9::mte in relation to any matter referred to in sub,~section (2), which arose be(ore that day, shall· be enforc:eabl~ ,against the central government, or/where 4'0 the undertakings of the two companies are directed, under section 6, to vest in government companies, against the concerned government ,company; ' (c) no u$bility incurred by either of the two co~~es before the appointed day, for the contravention of any provi$ion ,ef, lawfpr 45  the time being in force,sl1a11 be enforceable against the central government, or, where the undertakings of, the two oompaai~ al'e , 4irected under seciion 0, to 'vebt in government c021lpani~ again\it ' i 'tm:,ooncernedgoverjuaent ~company powerot goverll_ mentto dimet,,)~ ~tihg'of the'widhttaktnjsof th6'1two··! compilltles h'l't'tvo '' governmentcompaniee 6 (1) notwithstanding anything coiitained in sections 3 and 4, the cent:rai:6oiiernment 'may,subject to'bnch't~tms andcomtniodb'u1t may t~ fit to impose, direct, by notification, that,~ac~of the, undergs of the two companies and the right, title and interest o,{each of the two 5 c6inpaniels in relation to theh lespective unc1el;takings which have 'wsted in that government under section 3,  and such qf the liaoilities pf ecich 01 the two companies as are specifi",din sub-section (2) of section 5, shall, 'instead of continuing to vest in me central government, vest in two government companies either on the date of the notification or' on such il' earlier or later date (not being a date earlier than the appointed'day) as may be jjqecifted in the notification (2) where the right, title and interest, and the liabilities referred to in su~section (2) of section 5, of each of the two companies, in r~1ation ~o its undertakings, vest in two gover~ent compqnies under sup-sectia;n f s '(1), the government companies "hall, on and  from the date of s'lc~  vesting, be deemed to have become the owners in relation to such un~r­takings, and all the rights and liabilities ~i tne central goverriine'n~' ~ relation to such undellakings swill, on and from the date of s~ch vesting, be deemed to have becolil(; the rights and liabilities, respectiv'e1y, of the 2" government companies   chapter iii " payment of amountspayment of amount ii '', 7 for 'the transfer to, and vesting in, the central government, w,-,,:r section 3, of the undertakings of each of the two companies and the right, 25 title anel interest of each of the two companies in relation to such uniertakinp, there shall be given by the central government to each of the companies, in cash and in the manner specified in chapter vi, an amount equal to the amount specified against tbe,nme of sueb company in the first schedule - ""-t" ·f paym~­of~ amolulta' 30 8, (1) for the deprivation of the two ~omp8nies of the m~eiit of their undertakings, there shall be given by the central governdleat to each of the companies in cash, an amou;nt calc~ated at the rate ' ',j - ? specift~ against the name of such company i'll, t!te second, sche4,ie for the period commencing on the date on which the management of 35 the ubdertoones of such company were  tak~over in purs~ of, the orders made by the centr'al government under th~ provisions of ~ 65 of 1951 industrie, (develop~ent and r~guhltion) actl 1951 and en~on}he  ?r~intedday ' ; , , :  i , ' (2) the amount specified in secthn 7' and the amount calculated ill 40 accordance with the provisions of sui}-section (1) shall carry sbqple iiiterest at the rate of four per cent per annum for the period cojdld8ll~, chi, on ike i appointed day  and' ending on the date on which pj9'dmntoi, shell' amount is m~de by the central government to the commissioiler ' j  '  j , - (3) the amounts detennined in accord-jnce with the prov~ 'ot: s~~fjec~ions_g j, a,n~;,~~? sb~n b~ given bryj,th~ ~~ntral g~~enpn'-n~ ~ t~' 451~:~tofl~~~~!_ ~~; a~~t~~n t~ h~e ~~ou~;t:; !i~~,!1,;l ,~~-,\"f!i!~ j4tn~~,_btc, of t¥e v1'q)i'or1~gb of t¥a two 0ij)mi'~ t (1) the general superintendence, direction, control and man,ement of the aftairs and business of the undertakmgs of each of the two companies, the right, title and interest in relation to which have vested s in the central government under section 3, shall,- (4) where a direction has been made by the central government under sub-section (1) of sectlon 6, vest in the government co~any specified in such dlrectionj or (b) where no such direction has been made by the central gov- 10 ernment, vest in one or more custodians appointed by the central gov'!fnment under sub-section (2), and thereupon the government company 'so specified or the custodian or custodians so a;>pointed, as the case may be, shall be entitled to exercise, to the exclusion of all other persons, all such powers and do all such 15 things as either, or both, of the two companies is, or are, authorised to exercise and do in relation to its or their undertakings (2) t~ central government may appoint one or more individuals or a government company as the custodian or custodians of the undertakings of either, or both, of the two co~anies in relation to which no 2u direction has been made by it ur!c;t'r sub-section (1) of section 6  (3) the cuitodian or custodians so appointed shall receive, froa the funds of the undertakings of the two companies, such remuneration as the central government may fix and shall hold office during the pleasure of the central govermnent 10 (1) on the vesting of the management of the undertakin of the two companies in government companies or on the appointment of a custodian or custodians, all persons in charge of the management of the unqertakings of either of the two companies immediately before such vestin, or appointment, shall be bound to deliver to the coilcemed 3 government company or the custodian or cuitodians, as the case ida1 0 be, all  ts, qoojgj of account, registers or other doc~enta in u:jetr c~tody r-=jat,ng to the undertakings diltj of pel'ioiui incharle of mat1ale-idedt of the  two compant- to deuver all  etc (2) the central government may issue such directions as it ~ deem desirable in the circumstances of the case to the government com- 3s panies or the custodian or custodians, and such government companies or the custodian or custodians may also, if it is considered n~ 10 to do, apply to the central government at any time for mtructiou as to the manner in which the manaaement of the undertakin, of~,~\w companie& shall be conducted or in relation to any other matter ariiiliii, in ~ coufse of such m'nlement duty rtf jmirioda to iiccoudt far  etc • in thiit pgiiiii-tlcm 11 (1) any person who has, on the appointed day, in ~ ~0i1 or udder his contorol any a9llets, books, documents or o~ pa~s ~­~ to any undertaking owned by the two com~nies, w~ ure vested in the central government or 'in government co~es under this act, and which belong to the two c(l~panies, or would, have, 80 45 belon&ed, if the undertakings owned by the two compan,ies had z,t ~ in the cedt,l'al government or such gov~lmt" ~~~,~ bi"~ ~ accoadt for tre said ule, books, ckiwmiii add· a: papers to the central government or the government companies and ibau cie!iver them up to t1le central tiovernmen' or audl \jqverdmclll' ~pwlles or to sucn person or persons as tne centra! tiovernmell\ or tbe concerned tiovernment company may specify in tj:us beha1f s (2) the central government or the government compawes aforesaid may take or cawe to be tajten all necessary steps tor securmg p<»iaes&od 01 tile unaenalwlgs ot tne two comparues w!l!cc nave vested ld tile lantral government or the government companies under tnis act ,(3) the two companies filiall within such period as the central gov-10 ernment may allow ul uus benaj1, turnlsh to toat uovernment a compjete ldventory ot au thelr properties and assets, as on the appoulted dhy, pertauung to tile un<1er\ajwlgs which have vested in the l:entral liovernment unaer sectlon 3, and, lor uus purpose, toe central tiovernmen' or tile uovernment companies aforesald sllah attorci to the two compaw8i is au reasooaole taclutle5 10': 1966 12 the custodian or custodians of the undertakings of either, or accounts both, of tile 'wo companies shah mluntaln an account ot tne undertaxlngs and audit 01 tile concerned company or comparues m such form and manner and under such conditions as may be prescnbed and the provlslons at the 20 comparues act, lttao, shall apply to ti:e audit of the accounts so mamtamed 8s they apply to tile auciit of the accounts of a company  chapter v provisions relating to employeji'a of tj:m two companiis13 (1) every person who haa been, immediately before the appointed codti-25 day, employea m any unc1erta!ung ot eltller of tile two compan,es shall nuance ef become,-employ  (a) on and from the appointed day, an employee of the central government, add 30, (b) where the undertakings of the two companies are d:ireeted, under sub-section (1) of section 6, to vest in government compamea, an employee of the concerned uovernment com,?any on and 1rom the date of such vesting or transfer, and shall hold o1llce or service wlder the central government or the cod-cerned government company, as the case may be, with the same rights 3s and prlvlleges as to pension, gratuity and other matters as would have been admissible to dim if there had been no such vesting and shall continue to do so unless and until his employment under the central government or the conceined government company, as the case may be, is duly terminated or until his remuneration and other conditions of service are duly 40 altered by the central government or the concerned government company, as uie cue may be 14 of 1m7 (~) 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 person employed in any undertaking at 4s either of the two companies, to the central government or a government company, shall not entitle such office-r or other employee to any campen- sation under this act or any other law for the time being in force and no  such claim shall be entertained by any -:ourt, tribunal or other authority  16 (1) where ~tber of toe two compadi bae es~blithed aprowilai fund, su,perannuation, welfare or other fund for tbe benefit of tqe pwseu· l'rovident fund and other tlmd& emp4oy~ in any of its undertakings the moneys re1atable to ttw ~ or o,ner employees wllose services nave become transterred by 01' uad8i tnis act to the central government or a government company sball, s out of the moneys standing, on the appomted day, to the credlt of such provident fund, superannuation, weltare or other fund, stand transferred to, and vest in, the central government or the concerned government company, as the case may be (2) the moneys which stand transferred under sub-section (l) totbe 10' central uovernment or the government company, as the case may ~ shall be dealt with oy tnat government or qovenunedt campedy m mea, manuer as may be prescnbed  chapter vi commissioner of payments is15 (1) the central government shall, w the pqrpose of dilbur&iq; the amount payable unaer &e(!uons 1 and 8 to, eaen of ule two comp_~ bj: aoti1lcauun, appoldt a comml>&ioner of paymenb appoin,-mentof commissioner of pay_ menta (2) the central government may appoint such other persons as it may tnmk fit to assist tile commissioner and thereupon tbe commissioner 20 may autnorlse one or more of s~ pello,dl also to exercise au or any 01 tne powers exerclsadle by twn unaer this act and d1l1erent persona may be miulerlsed to exercase ~erent powers  (3) any person authorised by the commissiioner to exercise any of tae powers exel'cls8bje by the corunissloner may exercise th06e powers 2s l1l me same manner and wah the same ettect as if they have been coaierred on tnat person directly by tnis act and not by way of 1uu,h0risation (4) l'he salaries and allowances of the commissioner and other per-6ojl8 at?,pwu1eo under 1jlls secuon silall be deuayed out of the conaoli- 30 da~ ~ wld oi lncua 16 (1) the central government shall, within thirty days from the speciliea date, pay m cash to t~ lonurussloner, lor payment to each 01 tjie two compawes,-(0) an amount equal to the amount specified apidai the dame at5s such company' in the j!'ll'st schedujej and payment by central governmentto the corrun:ssioner (b) an amount equal to the amount payable to each of the two compadie under hctlon 8 (2) a deposit account shall be opened by the central: gov8l'l1l8e~ ill favour of the commissioner in the public account of india and every 40 amount paid under this act to the commissioner ahall be depoeiied by him to the credit of the said depoait account and tbe said depgaii account shall be operated by the comrniyjoner (3) separate recorcls shall be maintained by tbe commillioder in r- peet of the wldertakidgs of each of the two campanies inrela~cmtowhida'4' payments have been made to him under tbia a,ct t'''' (;jia"'t acenrlng od the amount 'itanding to the credit of the ,aepotlt account referred to in sub-seetion (2) shall enure to the benefit dt'tte two eompanlel panie  17 (1) the central government or the concerned government corn-s 'ipany, 'as the ease may be, shall be entitled to reeeive, up to the specified date, to the exclusion of all other persons, any money due to either of ,the two companies in relation to the underakin,~ which have vested in the central government or the government comp:my and realised after the appointed day, notwithstanding that the re'111sation pertains to a period 10 prior to the appointed day (2) the central governmentot" the ctlneemed go"ernm~nteompany, 8sthe case may be, may make !l rlafm to the commissioner with regard to every payment made by that government or governm~rtt ~m­pany after the appointed dav fot d't;tehar~nt:! anv habflitv of either of is the two companies, nnt beine!: any liabilitv specifled in sub-sectl'on (2) of !i(!ction 5, in relst;on to anv period prm· to the appointed dav, and everv such claim shall have priorttv in accotdance wfth the priorities attachin~, under this ad, to tbe mattet in relation to which ~uch liabflitv has been discharged by the central government or tbe (;gvernment 20 company (3) save as otherwise provide1 in this act, the liabfllties of either of the two companies in respect of any transaction prior to the appointed day whi~h have not been dischqrged on or before the spe~lfled date shall be the liabilities of the respective company   25 18 every pe~on hrving a claim mainst either of the two compllnies w!th re~'lrd to anv of the matters spe~ifierl in the third 'rchc:!dllle pertainint:! to anv unde  takiylg owner) bv it sball prefe  such chim before the commisosioner within thirty days from the specifled date: claima to be made to the commissioner provided that if the commis~inner is satisfled that the claim'3nt was 30 prevented bv sufficient cause from pl"eferrin~ the claim within the said period of thirty davs he" may entertain the claim within a further period of tmrty days, but not thereafter priority of claims 19 the claim!'; made under ~ction 18 shall have priorities in accordance with the following principles namely:-!s (a) cate~orv i shall have precedence over 1111 other cate~orles and category ii shall have precedence over category iu, and si) on; (b) the claims specified in each af the cate~orles ihall rank 40 eqwlli~ and be paid in full but if the amount is insuftlc'ent to meet sueh' claim~ in full, they shall abate in equal proportions and be paid accordingly; and (c) the question of diseharging any liabflity with re~ard to a matter specified in a lower category shall arise only if a· surplus ios left afte! meeting all the liabiliti"esspecifted in the immediately higber category examination of clalldl 45 h (i) on receipt of the claims made und~r section 18, the commissioner shall arrange the claims in the order 01 priorities specifledin the th1rd schedule and ""mine the same in accordance with !luch o-der, (2) if, on examination of the claims, the commia&ioner i ·of opidicm that the amount paid to him under this act is not sufficient to meet the liabilities specified in any lower category, he shall not be required to examine the claims in respect of such lower category !1 (1) after examining the claims with reference to the priorities 5 specibed in the third schedule, the commissioner shall fix a date oil or before which every claimant shall tlle the proof of his claim (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 enrlfsh 1anlna~e havin!:! ci'rculation in the major part of the country and in one 10 issue of any dailv newspaner in such regronal lan~a~ as the commissioner may consider suitable, and every such notice shall call upon the claimant to file the proof of his claim wi'th the commissioner within the period specified in the advertisement (3) everv claimant who faila to file the proof of his claim within the is period specified bv the c1lmmissioner shall be excluded from the disbursements made by the commissioner (4) the commissioner shall after such investillation as may in his opinion be nece9sarv and after jtivin~ the concerned company an opnortunftv of refutin!:! the cla'm and after ~vinlt the claimant a reasonable 20 opportunitv of beinlt heard, bv order in writing, admit or reject the claim in whole or in part (5) the commissioner shall have the power to re~late his own procedure in all matters arisinll out or the discharge of his functions includinlt the place or places at which he may hold hi!'; sitt'in~ and shall for the 25 purpose of makinll any investi~ation under thi~ act have the same powers as are vested in a civil court under the code of civil procedure, 1908 while tryin~ a suit in respect of the followinll matters, namely:-(a) the summoninlt and enforcing the attendance of any witness and examining him on oath; 30 (b) the discovery and producti'on of any document or other material object producible as evidence; (e) the reception of evidence on affidavits; (d) the issuing of any commission for the examinati'on 01 wit nesses - 35 (6) anv investiltation before the commissioner ghall be deemed to be 8 judicial proceedi'ng with'n ·the meaning- of sections 193 and 228 of the indian penal code and the commissioner shall bp rleemed to be a -i5 of 1868 civil court for the purposes of section 195, and chapter xxvi, of the code 2 of 1974 of criminal procedure, 1973 40  (7) a claimant who is dissati!;f1ed with the decision of thecommissioner, may prefer an appeal against such decision to the ptincipal civil court of original jurisdiction within the local limits ofwbose jurisdiction the registered office of the concerned company is situated: provided that where a person who is a judge of a high court is 4s a1)pointed to be the comm's~ioner ~uch appeal ~hall he to the high court - msid1 jurisdiction over the place in which the registered otllce of the coneented company is situaud and such appeal shall be heard and disposed of by not less than two judges of that high court zz after admitting a claim under this act, the amount due in s respect df such claim shall be paid by the commissioner to the person or pe1"9ons to whom such amount i's due, and on such payment, the liability ot each of the two companies in respect of such claim shall stand  u_ h d  ") ~-~, uiiiic arge : , :  '! disbursement ofmone,' by the commissioner 23 (1) if out of the moneys paid to him in relation to the und ertak· 10  in~ of e'ither of the two companies there is a balance left after meetin~ the liabilities as llpecified in the third schedule the commissioner shall dfsburse such balance to the concerned company dieour_met'lt of amounts to the two com paniel (:!} where the possession of any machinery, equipment or other pro-is 'oerlv hr!'! vest~ it! thp ('!f'ntl'rl nnvernment or a goveament comdrnv under this act but sucb machinerv equioment or other pl'("perty dol"!; not helnn!! tn eithpr of the two comoanies it shall be fawful for thp central government 01' the ('oncprne'ti government company to continue to possess such machinery ill' eauipment or other propertv on the same tenns and condwon!c: under whlrh they were nnssessed by either 20 of the companies immediately be"fnre' the appointed day unes»-burled t unclaimed amount te be depoded with the general revenue aceount 24 anv money paiti to the cnmmi!c:!'iioner' which remrins untifc:;hul'sed or unclaimed on the date imme(li!\telv precedinlt the date on whfrh the office of the commis!'!ioner is final~y wound up shall be transferred bv the commissioner bpfnre hi!'! offil'e ;c: finally wouno up to the !tenera1 re-2s venue account "if the central gnvpmmpnt: but <l claim to any money so transferred may be preferred t, thp central government bv the perc:nn entitled to such pavrnent and liihall be dealt wfth as if such tranllfel' had not been made and the nrrjer if "'nv fo1' the payment of the claim being treated as an order for the refund of revenue  30 chapi'er vii miscdlan1lous25 the orovisions of this act shall have efrpct notwithsblndtnll! anvthin5/; inconsistent therewith in rnv clther law fot' the time bein~ in force act to have overridin, effect ilia or in any instrument havinv effect bv virtue of ~nv law other than this 3s act or in any d~ree or order of any court, tribunal or other authority contract toceale to have effect unless rat!-fled by central govemment or govern" ment c(doo ~ • everv contract entereti into bv either of the two coml)8nier in rplation to any of its underta'ldnf(rwhfeh has vested in the central govemment under sections for any remce s~le or supdly and in force immediately before the apoointed dav shall on and from' the exoi1'v 40 of a period of thirty dav!c: from the i'ippointpd dry cease to have effect unless such contract is before the expiry of that period, ratified in writing by the central governme"lt or the government company in which wah undertakinll has been vested under thi~ act and in ratifvin~ such contract, the central govemmpnt or such government comnany may 4s make such alteration or modification therein as it may think fit: f1ruorided that the ceutnu g~ or 81icb govemlmllt  jwulyshall not omit to ratify contract and shall not make ~yaltera· tion or modification in acontrar:t- (4) unless it is atisfied that such contract is unduly onerous or has been entered into in bad faith or is detrimental to ·the in-s terests of the central government or such government company; and  (b) except after giving the parties to the contract a'rauonable opportunity of being hearri aj"lc1 except after recording in writing tts reasons for refusal to mltify the contract or far making any al- 10 teration or modlfteatton thefflin  n any persen wao,-(ei) 'having tn his 'poai!i8bcrion, custody or ~ontrol _y properl:f forming j)art of any undertaking of either of the two cmnpanies, wrongfully withholds such property from the central goverument is or the government company concerned; or (b) wrongfully obtains oossession of, or retains, any property fonning part of any undertaktnc;r of either of the two companies; or (c) wilfully withholds or fails to furnish to the central governmentor the governmel~ co:~lpany concerned or any person or 20 body of persons specified bv that government or such gov~rnment company, any document relating to such undertaking, which may be in his po'~lession, custorlv or control; or (d) fan!' to deliver to the central government or the government com dan'! concerned or ~ny person or body of per~o'l!9 a1)fllctfted 2s by that government or govenment company, any assets, ~ks of account, te,!i!o;ters or other dot'uments in his possession custody or control, relathlg to the undpt'tnkings of either of the two companies; or (e) wrongfully remeves or -deevoys any property formtng part 30 of any undertaking of either <'f the two companies or prefers any claim which he knows or has reason to believe to be false or grossly inaccurate, shall be punishable with imprisgnment for a term which may extend to two years, or with fine which may extend to ten thousand rupees, or 3s with both -  , 28 (1) where an offence under this act has been committed bv 'a eompanv, every person who at the time the gtf8l1ce was eommftted was in th8l'ft m and was l'es'pomible to the eompany tor ,the ool'lduct 'of thebuliness of the mm"anv a8 well as the company, _ube 40 deemed to be miilt\t of the nffence and s"a11 be liable to be ,proeeec1ed against and punished accordingly: 'provided that nothin,!?, contained in this sub-!lectfon shall rendet any such pefsnn liable to any nunishmertt if 'he t)foves thstthe 6l!enc!ewas rmnmftted without his knowlec"/ote 0r that he 'had ex6cl8ed an due 45 diligence to prevent the commissinn of such offence ~) ~~wit~diqi 1u\ythua& containm in iu~ (1),  any ol~ce under this act~ been comolitt~ by i compaiu' qm, it is prov~ that tb  ,offe,nqe haa be~ committed witb the cojlle~ 01'1 c:qlmivance of, or is attributable to auy neglect oll the i't of, ny, ~ s tor, ~~ager, secretaj'y or other officer qf the company,suc:b dil'ectqr • m,an~, secxjttify or other oftlcer shall be deemed to ~ gpjlty of tha ollence and saau be liable 10 be proeeed8!d ag~nat add ~heci a~ ~y  10 (a) "company" means any bedy corporate and' includes a firm or other asaociation ot individuals; and (b) "director", in relation to a ftrm, means a cjartner in the fum  a)· no suit, pj'osec14tion or other legal proceeding shan lie against the central government or any atl\cer of that gqvemmant 01" i'i the custo<han or the government colilpanies or other pel"fk)d authori-d - by that government or government companies for anything which is ia good faith done or intended to be done under this act pro~ tion 01 actioq taken fitiood faith (2) no suit or other legal proceeding shall lie against the central government or any of its omcers or other employees or the custodian 20 or the government companies or any officer or other person authorised by those companies for any dam~e c~used or likely to be caused by anything which is in good faith done or intended to be done under this act dele gation of pow8l'll 30  (i) the eentral government may, by notiftcation, djrect tha~ all:' 2s or any of' t1te powers exercisable by it under this act, other than the powers conferred by this section and sectiona 31 and 32 ~y also be exercised by such person or persons as may be specified in the notifica· tion (2) whenever any delegation of power i$ made under sulhectiioll 30 (1), the person to whom such power has been delegated shall act under the direction, control and supervision of the central government 31 (1) the central government may by notification, mam rul~ for carrying out the provisions of this act power to mate rules (2) in particular, and without prejudice to the generality of the 3s foregoing power, such rules- may, provict for all or any of the following matters namely:-(a) the time within which, and the manner in whi<:h, 8jl intip, mation referred to in sub-section (3) of section 4 shall be given; (b) the form and manner in which, and the conditions under 40 which, the custodian or custodians shall maintain the aceoanta as req1llkecl: by section 12; (c) the manner in which the moneys in any provident fund or other- fund, referred to in section 14, shall' be dealt with; (a) any other matter which is required to be, or jd4ybe, prescribed (3)  every rule made by the central government under this act shall be laid, as soon as may be after it is made, before each house of parl1ament while it is inaession for a total period of thirty dajs which may be comprised in onesesaion or in two or more successive se&8iods, and if, betore the expiry of the· session immedlately followini s the se8slon or the successive sessions aforesaid, both houaea 8il'8e in maki0l any mocwlcation in the rule or both houses agree that the ruje should not be made, the rule shall thereafter have ej:fect only in such modlfied form or be of no effect, as the case may be; so, however, that any such modification or annulment sball be without prejudlce w 10 the validity of anything previously done under that rule 3% if any difficulty arises in giving etiect to the provisions of this act, tne central government may, by order, not incodsistent with the provisions of this act, remove the difficulty: provided that no such order shall be made after the expirj of a is period of two years from the appointed day 16 ot 1980 repeal and saving 33 (1) the hind cycles limited and sen-raleigh limited (nationalisation) ordinance, 1980, is hereby repealed (2) notwithstanding such repeal, anything done or any action taken under the ordinance so repealed snall be deemed to have been done or 20 taken under the corresponding provisions of this act  the first schedule[see sections 4(4), 7, 8(3) and 16(1) (a)] -------------sl name of the company ng amount (rupees in lakba) 2s 24147 70800 1 hind cycles limited 2 sen-raleigh limited 3 sen and pandit industries limited 2396 4 ancillary industries (lugs) private limited 131 5 ancillary industries (forgings) private limited 14& 6 ancillary industries (cranks) private limited 233 287 7 naokhali machine tools limited ------ the second schedule[see section 8(1)] 81 name of the company no  rate per annum 3s (rupees) ,000 - 1 hind cycles limited 2 sen-raleigh limited 3 sen and pandit industries limited 4 ancillary industries (lugs) private limited 8,900 ~ 500 5 ancillary industries (forginp) private limited 500 6 ancillary industries (cranks) private limited doo [se sectjodb 18, 20 (1), 21 (1) and 28 (1) ] order of priorities foil the discharge op' liabitl'l'ii's ar tid two companiis post take-over managemerd period ca"o:r:1i f-' •• 1 ,  ", ;'" (a) wages, salaries and ~er due payable to the empjoy" of the companies (b) deductions made from the salaries and wages of tw ~ijlll;to-10 yees for provident fund, the employees' state insurance ftuld, premium relating to the life insurance corporatiod of  india or for any other purpose categoty 11-principal amount of loans advaneed by-is  (i) the central government :(ii) a state government (iii) banks and financial institutions (iv) any other sources category iii-(a) arrears in relat!on to contributions to be made by the companies to provident fund, the employees' state insurance fund or under any other law for the time being in force providing for such contributions (b) any credits availed of by the companies for the purpose of carrying on any trading or manufacturing operations, other than those specified in sub-section (2) of section 5 (c) any dues of state electricity boards or other government or semi-government institutions against supply of goods or services, other than those specified in sub-section (2) of section 5 30 (d) arrears of interest on loans and advances catego'fy iv-(a) revenue, taxes, cesses, rates or other dues to the central government, a state government or any local authority (b) any other dues pre-take-over m4mgement period  ss category v-(a) wages, salaries and other dues payable to the employees of the companies (b) deductions made from the salaries and wages of the employees for provident fund, the employees' state insurance fund, premium relating to the life insurance corporation of india or for any other purpose   '  _ i~ ,1\ : // ' 'i) the, (;entjtl gov-unent (ii) a state govern~t (iii) banks, ,and· imbc,jal ~ti~utiods s (b) arrears in relation to contributions to be made~ \ companies to provident fund, the employees' ~tate insurance l'und ~~'qn}aer lfty ~het·"1'8w f&j:fh~ )[twruf~iilr'm%rde ~mi, for such contributions 10 ca~ titt~  i",  -jprtd~at aniountr"of"udjeeured1 loans'8dvahm1by;; , 'r, (i) the central government (ii) a state government ,  , (iii) banks and financial institutions  categorjl viii- is(a) any credits availed of by the !~ies tof'lft1e"'p~se of carrying on any trading 'or'dei1ulacfuiing'!opfratiom (b) any dues of state electricity boards or'dthet 'gbvernment or semi-government institutions against supply of goods ol"servitea (~  arrears of interest on loans and advances 20 (d)'~e1tue;'tftes, cerii!s'--rates :or otlier"dties'to the ~'fra1 j"i(k)gehutl~; &1st~te- governtttelit;or ;any' loesl liiuthofolty (e) any other loans or dues ,  ~d·j;n ·tbet:~tur  ~ productk>~ of;biey,¢l":,~,;tlleir,~u p  ~nqic:ce~lor more than 4:wcr decades 8dclthe"hava dllweloperi a ,~;br_ ina,  and,adequme t'qmilm817- acce!lwmce,fqj'  th,~pjdt ~ 'phua twonompanieai;8ccqulit;ior a total8lll1lll1 capaclw at~oje  tm"aldla,:ollbic?'cles ilawevar,; as tbere had bea a stead¥i faii-prijiiimtioft am the compudes'ooatinued tt incur cub- jo  };the 1lllug& ~ot,b two units of hind c~les·limited  and sed  ba1eiglluilli1ied, aq  lmlth'it  associate· and wbsldiary, 1ulits, wall taken owri:by·,·the central goveaameut ,tmd, the :provblcjl!1s-:of· the· lridastrlltl :(dmlepment and regulation) act, 1951, in january 1974 and september 1975 respectively 2 though national;sed banks and public financial in'3titutfons have been advancing large amounts of money the companies were facing acute shortage of liquid funds for their working capital requirements funds were also rpquired for modernisation of the plant and machinery of the tw'o companies but pending nationalisation of these two companies, it was not possible for government to invest anv more monev in these companies studies made of the financial condition of the companies revealed that the companies were not fit for reconstruction as the capital base had been eroded many times over and the companies could be re-started w;th unencumberpd assets only afte~ total elimination of the external liabtiities through a process of nationalisation it was also :felt that it would not be appropriate in the public i'ntet'est to allow theoge units to close down as between the two companies they accounted for about one-sixth of the total production of bicycle!'! in the country closure of the units also would have thrown out of emplovment it labour force of over six thousand in view of this, rt was decided to acquire the undertakin~ of the two companies so that fresh capital could be invested bv govemment the hind cycles limited and sen-raleigh limited (nationaliisatian) ordinance, 1980 (16 of 1980) was, therefore, promulgated by the president on the 15th october, 1980 3 the said ordinance, apart from providing for the acquisition and transfer of the undertakings of the two companies, provided for the payment of an amount for such acquisition, vesting of the undertakings of the companies in two government companies, appointment of a commissioner of payments for the pul'}y'se of disbursing the amounts payable to the companies, and for other incidental iu)d consequential matterw " the bm seeks to replace the aforesai'd ordinance new dam; charanjit chanana the 13th nooember, 1880 -, ": ' ~ [copy of letter no ime-49(28)/80(iii), dated the 18th november, 1980 from shri charanjit chanana minister of state in the ministry of industry to the secretary, lok sabha] 'the president, having been info inned of the subject matter of the' bill to provide for the acquisition of the undertakings of hind cycles limited and sen-raleigh ijmited, with a view to securing the proper management of such undertakings so as to subserve the interests of 'the general public by" ensuring the continued manufacture, j)foduction and distribution of' bicycles and their component parts and accessories which are essential to the needs of the economy of the country and for matters connected therewith or incidental thereto, recommends under cl8u8es (1) and (3) of artic1e 117 of the constitution the introduction of the said bill tn and its consideration by lok sabha  financial memorandumi > , cause 3 of, the bill pnvidel' ,fqr tae  acquisition of',~ undertaking_' of hind cycles limited and ~~roleoigh limi~edby the central government " ,; : " ) j , , "  '  : , ~' ' : -   ,    t _ ) '  ' ,2 clause, ~ of tbe bill provides for the payment m, cash of an, imom,lt of rs 981~qoo (rupees nine crorea eighty-one l4lkbs, and  thtity-eight  thm,asand only) for vesting, in the ceniral goy,~rnrnent i~e rilht~ tjpe and, interest of the two companies in relation to the un4~ry  iqngs o:wned by them s sub-clause' (1) of clause 8 6f the bill provid8fqr payment ot a further amount in cash in consideration for the c!ei1hvation of the·two companies of the management of their undertakings for the period commencing on the date on which the managemen~ of ~~,u~de~takings of the companies was taken over by the central gov'ernrrient and ending on the appointed day, ie, the 15th october, 1980 it is estimated that this amount will be of the order of rs 1,05,000 (rupees one lakh and five thousand only) 4 sub~lause (2) of clause 8 of the bill provides for payment of simple interest at the rate of four per cent per annum in respect of amounts payable under clause 7 and sub-clause (1) of clause 8, for the period commencing on the appointed day and ending on the date on which the payment of the amounts is made by the central government to the commissioner of payments it is estimated that this amount is likely to be of the order of rs 32'8 lakhs (rupees three lakhs and twenty-eight thousand only) per month 5 under sub-clause (2) of clause 5 of the bill, any liability arising in respect of materials supplied to either of the two companies after the management of the undertakings of the concerned company had been taken over by the central government, shall on and from the appointed day, be the liability of the central government or of the concerned government company in which the undertakings are vested under the provisions of the bill it is estimated that this amount is likely to be of the order of rs 2,77,00,000 (rupees two crores seventyseven lakhs only) 6 clause 15 of the bill provides for the appointment of a commissioner of payments by the central government for the purpose of disbursing the amounts payable to the two companies this clause also provides for the appointment of such other persons as it thinks fit to assist the commissioner in the ~xereise of his powers under the bill under sub~lause (4) of this clause, the salaries and allowances of the commissioner and other persons appointed will be defrayed out of the consolidated fund of india the estimated expenditure on this account is likely to be of the order of rs 10,000 (rupees ten thousand only) per month 7 funds will aoo have to be provided to the two new government companies set up to take over the undertakings of hlnd cycles limited and sen-raleigh limited towards modernisation this is ebtimated to be around rs 1,50,oo,~(~u~ p~!! ~~re ~~ ~t1 lakhs only) ,    8 it is anticipated that all the liabilities s~ifted in the third stlaedule to the- 'ijiu'lre not !11kel1'~ m' d'iielwtlld ul"iby ~b oowa  siaml'- ef paymellw out of thee ,amtlunt paid :toi'hlrn~ h 'plo~, of the bill '!be central government proposes to assume some of the qa, dischars~ 1jabqities, ,such as! p~yp1e~ts ,c;lue to,~~ ~jtlp19yt;eb pf t;jle uj,1~erta~~ • }'i!pa;y~e"t of ~~ gi~en b1  buks ~ ~,~~ tipns ~ ~map'a¥!~ent ctf ,th~ 4n~rta~n~ h  ~ beeq ~py~ !:>r • the central gq~e~l\1ent, }~~d lo1~ ,pnd 'ad~ce8 ~,ven, by,~¥~ b~ andflnaneial institutions at the behest of goventment' before such management was taken over the extent of liability on this account' wul· ~ ~ plll3t ~~w'lla~tp~ ~ s:p'!lalimicmr~~j,~ f~erts h~,pl~ ~¥nlfp~j$'~~,r' 9,~~ ~m,jf ej?,9c~d  js n~~ l~~~y "tq ~ypj!e !-nyt0tber  j'~~tip!$fpr, n~m-~!jqij!g ~~l£~}l4\t~ : jf'a'~elj'3r /bif thj~mtr-t:6w,~'ttle ,1~tmj~~ "tb  rules to carry out the provi_ 6t'11l~'i~ut the matters in respect of which rules may be made, inter alia relate to the time within which, and the manner in which, an --mtrrtiation regarding any mortgage, charge, lien, etc, on the prop('rtie:; which have vejtecl  in the central r~~ittitit r1m1l~j;tved 1ltf'tb!-'tonflllus~"ctf,l!t~!'tht1~ ~tt  'fttk~'1tt','wttieh, "~d~4!' ~18h!mts '~t"~kh,  "c!edmts'~ be maintained by the custodian or custodians and ·the mannet i'in which the moneys in any provident fund, s'i1perannuation, welfare or other fund maintained by the two companies shall be dealt with by the central government or the government company 2 the matters in respect of which such rules may be made are matters of procedure and adminh:trative detail the delegation of legislative power is thus normal in character  a billto provide for the acquisition of th!' undertakings of hind cycles limited, and sen-raleigh limited, with a view to securing the proper management of such undertakings 80 38 to subserve the interests of the general public by ensuring the continued manufacture, production and distribution of bicycles and their component parts and accessories which are essential to the needs of the economy of the country and for matters connected therewith or incidental thereto (shri cbatlll'\jit chanana, minister of state in the ministry of industry) 