 corricrenda tonti shippinj cohpany (taking orub of llanag~hent) bill, 1966 (to belas introduced in lok sabha) ge 4, in the marginal headins to clause 6,-for it faith etc" re~d ii faith, etc," ge8, ~ine 35, after "sort, ins8rt ", •• iljle __ ~, , e lou: after "company", insert ", il e 11, line 1, for ifrsecoyll'1endationu read "recohhendation't rect line numbers on page 8  bill no 50 of 1966  jayanti shipping company (taking over of management) bill, 1966 a bill n-"nn"lq for the taking over of the ma~gement of the undertaking the j ayanti shipping company limited for a limited period ordet to secure the proper management of the same it enacted by parliament in the seventeenth year of the  ,  \,; of india as follows:- chapter i preliminarythis act may be called the j ayanti shipping company (taking short 'of management) act, 1966  title in this act, unless the context otherwise requires,-definitions ,~~  (a) "company" means the jayanti shipping company ,i~~ited, being a company as defined in the companies act, 1956~ ;;: vlng its registered office in the uniqn territory of delhi; (b) "notified order" means an order notified in the official gazette; (e) "prescribed" means prescribed by rules made under this act; (d) "undertaking" means the property and assets of the 'company; (e) w()r'i' 1nj expressions used but not defined in this act and defined in the companies act 1956 shall have the meanings respectively assigned to them in that act  chapter ii the taking over of the management of the undertaking 0'::the jay anti shipping company 3 (1) the central government may, by notified order, appoint~ a body of persons (hereinafter referred to as the "board of contrcl")~ to take over the management of the whole or any part of the under-~ taking of the company or to exercise in respect of the whole or any part thereof such functions of management as may be specified the notified order board of control to take over the manage_ ment of the undertaking of the company (2) the board of control ;hall consist of a chairman and number of other members not exceeding ten as the central ment may think fit, to be appointed by that government (3) the central government may either in the notified issued under sub-section (1) or in a subsequent order specify one or more members of the board of control shall be a full-ti member or full-time members' thereof (4) the term of office of, the procedure to be follo~ed in discharge of their funct~ons by, and the manner of filling vaca  ~·-- among, the mem~ ~- r~ ,f th,; b,)clrd of centrol shall be ~uch as be prescribeu (5) the salaries, al1owanc~s ~nd f)thfl" remuneration and conditions of ~,'rvirf' at tp~, m"'tl1l)~r~ of ~he b'jard of con"rol sh be such as may 'lje d,~tf'rrr1ine1 by the central government   (6) any notifi~d order issued under sub-section (1) shall re in force for e uch period not exceeding five years as may be speci in the order: provided that if the central government is of opinion that in to secure the prop~1' jyl!:lna~ement of the u'ldertaking of the cuiu  --- it is expedie'1t tl-trt ~ny such nqtified ord~r should continl:':e in the expiry of the period of five years as aforesaid, it may, from to time, issue directions for such continuance for such period,  a,\  vropfllning two years at a time, as may be fpecified in the direcbut no such notified order shall in any case remain in force inor~ than a total period of ten years; and where any such is issued, a copy thereof shall be laid, as soon as may be,  ,  w·, each hou~e of parliament, (1) on the issue of a notified order under ,section 3 appointing effect ot of can lrol to take over the management of the undertaking notified company,-order issued (a) all persons in charge of the management, including under holding offices as directors or managers or any other sectiori 3 1 personnel of the company immediately before the issue of the notified order, shall 'be deemed to have vacated their as such; (b) any contract of management between the company and managing agent or any director or any other managerial  rsonnel thereof holding office as such immediately before the of the notified order shall be deemed to have terminated; (c) the board of control shall alone be entitled notwith--'-!linning anything contained in the companies act, 1956, to all the powers of the board of directors of the company ding the powers to sell or otherwise di~pose of any ships ()ther properties or assets of the company) whether such ~1~lprc! are derived from the said act or from the memorandum of association of the company or from any other (d) as from the date of the notified order, all the propertie~, _~ls and effects of the company shall be deemed to be in the y of the board of control who shall, as soon as may be such date, take all such steps as may be necessary tc take its possession or centrol all such properties, assets and effects all aci-ionable claim~ to which the company is or appears , be entitled subject to the other provislons contained in this act and :control of the central government, the board of control shall steps as may be necessary for the purpose of efficiently the business of the company and shall exerci~e such other and have such other dutif's as may _be prescribed appoint managing agent 5; (1) notwithstanding anything contained in the companill act, 1956, or in any other law for the time being in force, or in the memorandum or articles of association of the company, the board of control may, with a view to securing the proper management of the undertaking of the company, appoint with the previous approval of the central government any individual, firm or body corporate as the managing agent of the company (2) the managing agent shall receive such remuneration as may be determined by the board of control with the previous approval of the central government (3) the managing agent shall exercise in respect of the whole or any part of the undertakiag of the company such functions of management as may be specified in the order of appointment and~ as may from time to time be entrusted to it by the board of control ~ ~ (4) the managing agent shall not be removed from office except1 with the previous permission of the central government (5) in the discharge of his functions the managing agent be under the general liiuperintendence and control of the board control (6) the management of the undertaking of the company shall carried on pursuant to any· directions given by the board of con in accordance with the· provisions ob the notified order issued udlc1e111 sub-section (1) of section 3 and the managing agent or any person having any functions of management in relation to undertaking of the company or any part thereof shall comply such directions contract!; in bad faith etc maybe  cancelled or varied 6 without prejudice to the provisions contained in section 4, board of control may, with the previous approval of the c government, make an application to any court having jurisdi in this behalf for the purpose of cancelling or varying any contrad or agreement entered into, at any time before the issue of the fled order under sub-section (1) of section 3, between the coinp,~ and any other person and the court may, if satisfied after due inq that such contract or agreement had been entered into in bad and is detrimental to the interests of the company, make an cancelling or varying (either unconditionally or subject to conditions as it may think fit to impose) that contract or and the contract or agreement shall have effect accordingly 'j -notwithstanding anything contained in any law tor the time no right bag- in force, no person who ceases to hold any office by reason to com-• ,,_ provisions contained in clause (a) of sub-section (1) of sec- pensatio? ~ h t t 'f  t  ted b f for terml_ ~,,, o~ w ose con rac ? management is ernuna  y reason 0 nation of ljwovlsions c()ntamed m clause (b) of that sub-section, shall be officeor (ft1ad to any compensation for the loss of office or for the pre- ·contract mite termination of his contract of management: ~ ~~vided that nothing contained in this section shall affect the lht of any such person to recover 'from the company moneys re-ib11wjlt: otherwise than by way of such compensation notwithstanding anything contained in the companies act, ~ui'" in the memorandum or ,articles of association of the com-application of act 1 of 1956 '~'!:(a) it shall not be lawful for the shareholders of the com-·l<'nlftv or any other person to nominate or appoint any person to a director o'f the company; (b) no resolution passed at any meeting of the sharehold- of the company shall be given effect to unless approved by central government; : (c) no proceeding for the winding up of the company or for "appointment of a liquidator or receiver in respect thereof lie in any court except with the consent o'f the central iove~rnrnent to the provisions contained in sub-6ection (1), and other provisions contained in this act and subject to such _c~dti'oi restrictions and limitations, if any, as the central i"illblnejlt may, by notification in the official gazette, specify in the companies act, 1956, shall continue to apply to the in the same manner as it applied thereto before the issue order under sub-section (1) of section 3 any time it appears to the central government on the power of o'f any shareholder of the company or otherwise that the central of the notified order made under sub-section (1) of section govern_ fulfilled or that for any other reason it is not necessary ment ito can('e should remain in force, the central government may, order order, cancel such order and on the cancellation of any notified the management of the undertaking o'f the company shall under the shareholders of the company  chapter iii miscellaneousduty to deliver possession of property and docu_ ments relating thereto 10 (1) where 'a notified order has been made under su~ tion (1) of section 3 in relation to the undertaking of the com~ every person having possession, custody or control of any pr0l?! shall deliver the property to the b8ard of control or to any s1 person (including the managing agent) as may be authorised board in this behalf  (2) any person who, on the commencement o'f this act," in his possession or under his control any books, documents or papers relating to the undertaking of the company shall be account for the said books, docu~ents and papers to the control and shall deliver them up to the board or to any such (including the managing agent) as may be authorised by the in this behalf (3)'l'he central government may take all neceslry 'securing possession of all properties of the company' | duty     ||----------|| furnish  || particu- || lars    |11 the company shall, within ten days 'from the com men of this act or within such further period as th~ central ment may allow in this behalf, furnish to the board of complete inventory of all the properties and assets (incl  ,  a ticularsof book debts and investments and belongings) of pany at the commencement of this act, and of all and obligations of the company subsisting at such and also of all agreements entered into by the company and i~ from such commencement powers of inspection 12 (1) for the purpose of ascertaining whether any the property of the company or for any other purpose menuv  -,-this act or the rules made thereunder, any person authorised central government in this behalf shall have the right to-(a) en ter and inspect any premises; (b) require any person having the possession, control of any register or record of the company to register or record; (c)' require the occupier of any property belonging claimed to be the property of, the company, to submit person so authorised such accounts, books or other or to furnish to him such information as he may reason a necessary; and j6(d) examine any person having the control of, or employed iilpddection with, the company and require him to make any lilejdent touching the affa:rs of the company ~l - }'~any person authorised by the central government under ~n (1) shall be deemed to be a public servant within the _~of section 21 of the indian penal code "  f(j) if any person,-pena'ty ~"  for {alse ~1:(") when required by this act or by any order made slate_ this act to make any statement or furnish any ments r_t,· on, makes any statement or furnishes any information is false in any mferial particular and which he knows or to be false or dfs not believe to be true; or ) makes any such statement as aforesaid in any book, record, return or other document which he is required ,order made under th;s act to submit,  punishable with imprisonment for a term which may 'ft"n,n years, or with fine which may extend to two thousand with both ,having in his possession, custody or control any property part of the assets' of the 'company, wrongfully withsuch property from the board of control, or ,wrongfully obtains possession of any property forming ~the assets of the company, or wilfully withholds or fails to produce to any person " under this act, any register, record or other i,'" ~t ~hich may be in his possession, custody or :ontrol, or " ) ,falls, w'thout any reasonable cause, to submit any ac-, , ' books or other document~, when required to do so, ~"""''',"lable with imprisonment fo,r a term which ,may exyears, or with fine which may extend to two thousand 'with both  '  shall take cognizance of an offence punishable under --'cept with the previous sanction of the central gov-,,~ of an officer authorised by thqt government in this limitation on prosecu_ tion protec tion of action taken under the act 15 no suit, prosecution or other legal proceedings shall lie agaj the central government or the board of control or any mejll thereof or any other person (including the managing agent) for a thing which is in good faith done or intended to be done under 1 act overrid ing effect of act 16 the provisions of this act or any order or rule mj thereuncier shall have effect notwithstanding anything inconsist therewith contained in any law other than this act or any instrujlli having effect by virtue of any law other than'this act " 17 all salaries, allowances and other remuneration paid to j chairman and other members of the board of control, the mana; agent or any other person who may be appointed or employ~ connection with the affairs of the management of the company ~ all other expenses duly incurred in connection with such ment shall be paid out of the funds of the company payment ofremu neration and expenses out of the funds of company power of central (i{)vernment to give directions 18 notwithstanding anything contained in the foregoing sions of this act the central government may give such to the board of control as that government may deem fit for proper management of the undertaking of the company board of control shall comply with such directions power to make rules 19 (1) the central government may, by notification official gazette, make rules to carry out the purposes of and such rules may provide that they shall take effect either pectively or retrospectively on such· date, not earlier than the, day of  tune, 1966, as may be specified therein ' (2) every rule made by the central government under act shall be laid, as soon as may be after it is made, each house of parliament while it is in session for a total thirty days which may be comprised in one session or in two cessive sessions, and if, before the expiry of the session in is so laid or the session immediatly following, both houses in making any modification in th'rule or both houses agree the rule should not be made, the rule shall thereafter have only in such modified form or be of no effect, as the case so however, that any such modification or annulment shall be out prejudice to the validity of anything previously done that rule power to remove difficulties 20 if any difficulty arises in giving effect to the provi this act, the central government may, by order as ,,,,"'-quires, do anything (not inconsistent with the provisions act) which appears to it to be necessary for the pu removing the difficulty ~) the jayanti shipping company (taking over of manage- repeal f()rdijiance, 1966, is hereby repealed and ,,; savings "notwithstanding such repeal, anything done or any action  ',including any notified order issued, appointment made or given under the said ordinance, shall be deemed to have or taken under the corresponding provision of this act, act had commenced on the 10th day of june 1966 / :r 'i''''~' \ '" - :'ihli  statement of objects and reasonsjayanti shipping company ltd, was· a new venture 1961 the shipping development fund committee, a statutory had committed its'elf to advance a loan of up to rs 20'25 crores a period of years and out of this about rs 6'60 crores were advanced by 7th june, 1966  for some time past complaints had been made, both parliament and outside, against the management of this alleging mismanagement, misuse of company's funds; foreign exchange, non-deposit of provident fund and deductions, non-payment ofbtills for supplies and services, payment of salaries and family allotments, non-payment of for insurance of ships and so on an enquiry committee appointed to go into these complaints but they could not make headway due to the non-cooperation of the company meanwhile, the pressure of the creditors on' the company so great that it was on the verge of being dragged to insolvency ccedings accordingly, to payoff its creditors the company to government for permission to sell four of its ships--two to abroad and one or two in india government could not, agree to this because firstly ~s would result in depletion indian fleet and secondly even ~fter the sale of these 4 company would still be short by about rs l' 5 crores to liabilities upto 31-3-1967 since at the same time it was u  ··- to do something effective to safeguard the interests of the development fund committee, to maintain the reputation of national shipping industry in world shipping and to take dol);:;ctiji of the books of account, etc, with a view to examining how the of the company have been conducted, government decided to over the management of the company for a limited period as parliament was not in session, an ordinance called the shipping company (taking over of management) ordinance, wa" promulgated by the president on the 10th june, 1966 the bill seeks to replace the jayanti shipping company on'r of management) ordinance, 1966 new delhi; n sanjiva the 19th july, 1966  ~"( " > j [copy of letter no 3~md (78) /66, dated the 1st august, 1966 ~ shri c m poonacha, minister of state in the ~port and aviation to the secretary, lok sabtj ministry cf : if'iie president having been informed of the jbject matter 0f bill to provide for the taking over of the management of the liddej~tallong of the jayanti shipping company for a limited period order to secure the appropriate management of the same, rcunder article 117 (3) of the constitution of india, the mdsl'qej~ation of the said bill in the lok sabha  financial memorandumcontemplates the appointment of a board of control shall alone be entitled to exercise all the powers of the board tgr'tnlrc' of the jayanti shipping company the bill also contemthe appointment by the board of control of managing agents the management of the undertaking of the company and further that the managing agent shall receive such remuneration be determined by the board of control with the previous of the central government clause 17 of the bill, however, provides that all salaries, allowand other remunerations paid to the chairman and other of the board of control, the managing agent or any other who may be appointed or employed in connection with the of the management of the company and all other expenses incurred in connection with such management shall be paid of the funds of the company therefore, whatever expenses are incurred from the consolidated fund of india to meet the allowances and other remunerations of the chairman and members of the board of control or of the managing agent  be ultimately recouped from the funds of the j ayanti shipping and as such no net expenditure is likely to be incurred from ~- ~",uuated fund of india clause 19 authorises the central government to make rules for' carrying out the purposes of the bill clause 3 (4) of the bill con  ~ templates the making of rules providing for the term of office of, the1 procedure to be followed in the discharge of their functions by, and, the manner of filling vacancies among, the members of the board of control these are matters of detail and as such the delegation 0, the legislativ~ power is of a normal character ' bjll to provide for the taking over of the management of the un taking of the jayantl shipping compan~ ldnite~ f01' a lim period in order to secure the proper ~ment of the same (shri n salljiva reddy, minister of transport, aviation, shipping tit               tourism) 