  bid no '2 0112" the ~1etal c0rporation of india (acouismon of undertaking) biilj 196' - / billto prouide for the acquiaition 'cif the underl4jdftg of the metal corporg-tion of lftdia limited for the purpo,e of encibling the cmttaz government in the public interest to exploit, to the fulleat utent porible, zinc and lead deposit' in and titound the zawci7" area in the state of ra;aatjum and to· utwae tho,e minercll ift nch manner cu to aub'en1e the common good bz it enacted by paruament in the sixteenth year of the repubuc of india as follows:- chapter i pratmdraky1 (1) this act may be called the mett corporation of india short title , (acquisition of undertaking) ~ lqflo ==t - ( (2) it shall be i:ieemed to have come into force on the 22nd day of october, 19s5 i deanluodi z in this act, unless the context otherwise requkes_-________ _ (a) "administrator" melull an admfnlbtrator appointed udder mction 11;, , (b) "company" or "the metal corporation of india" means the metal corporation of india limited, being a company as defined in the compani  act, 1958, having it j'eptered of!ce at calcutta; (c) "tribunal" meadi ~ tribunal coditituted· und  10 ction 11; (d) wor,:b,:&nd expresaiodi used but not defined in thli act and deftned in the companies aet, 1956, sball have the meaninib respectively aaaigned to them in that act  chapter iiaeqmaxtlon of trii: un'ddtaxing of 'l'rb mbtal corpoilatlolf nf india 3 on the commencement of this act, the undertaking of the cpmpany shall, by virtue of this act, be 1nnaferred to, and vest; in, the c:entral government ' undertakldiiof eompany to 'vest in central government geaeral eftect of vuttna under eecdon 30 • (1) the undertaking of the company shall be deemed to ill- 20 auide' til "~,' tilghts, leaseholds (in~luding mining leases, if any), ~! ':autb~es and :~vi1~~ ~all property, movable and immovable, inclucbng l8rids, bunain~, ~b, --mtn~, 'wtjrbjiops, projects, smeltera, -:nftnulcis, ito ti1ttudlmta, j fdwoltinery, locomotives, automobiles and ,other vehicles, mined or ~aeted zinc or 25 lead ores, codeentrates and metab, m process fir in stock m' in transit, cash balances, cash on hjalib, reserve fund, investment and book debts and all other rights and interests arising out of such prepetty n-"e'1!¢tneat_tely 1)erotte·the!~lm~bl>fh181lct'fn ~ the ownetkhtp;~dn, -po'werbr'etmtrol 6ft'he 'ebjil~ ih telalton 30 to' :£he- tml!~dfftg, '~h'er ''\irtt1iln or 1rfthwt tnma, -ahd ill1 'boob df'ab~t, 'l'~t!!'8,lrutps, p1ahs, 1iect1ons,dft'wbtib, ~rds -of wrvey aha ~all' othl!r ~ol!um~ts j cif~~ 'liat\we '~aimt ~tb, land shall also be deemed to ctiiclti8e ~ '~owdifa, lla1)l1ft!es 'ua ~bit­gatlons ,of wbateverkind then "iubaistidg of the cotl\p8dy in relation 3' to the undertaking (2) all property vesting in the central government under sub-retion (1) shall, by force of -i11at -veitttilr, be freed and discharged from any trusts, obugatf()di, morigages,''-iharges, hens and other encumbrances affecting it, and any attachment, injunction or anyfa ,;decree or omer of a¥urt"riiitrlctlnljfliejtae of·iucb:pr6~tty·~ ~ ''manner aha11 be deemed to jide~"~wd <t)- atm~ to· ~ other pnmalou' ccmtaidedn ld-: ti1ia, w • contracts add: working, aning8ments· wbicb am} aubaat;ld'li lmr ~tely before  the  commencement of this ai;:t and aflectlnl ~ ------i"c>ft'lommparl3'--ahau,-tn-ao-1ar_  they relate  ~ ~ undertaklnl of i the - c()ul~y, ceueto haye_~ cc be enforceable  ~ ~c~ or &,nj ~on wio -s ~ or bad ~teea th~ ~~~c ~t'eqf>andwll: be01 as full_fo:r;ee and e1fect  apinst or iii favour of the central g()riemment~uld enf0n:e6b~  fuli!' ~  ~t a if instead of the company the central government bad been named 10 ·therein· or had' been·« party til, (~)< subject to the other provisions contafnedl1 in tbfa ~ any~proceedingor cause of acuon pending or ex1btfdg immediate1t before the commen~::ol' thi, act by or agabist tjie com· ppny in relation to its undertaking may, as from· such· commen~ , ment, b:t! co~t~~edand 'enf~ ·by or againbt the centra! ~ ment as it might have been enforced by or! agplnsttlte-companyif this act had dot been passed,- and' bhall' ceato be enfb:reeable-!j1-or apidst the >company, its -surety- or' guarantor 5: (1) every oftleer or ~theremployeeof the c:ompany(excapt • ,:]: 20 director·or any managerialperaonnei  speeuled id'1ieotion' 19?a ofiltij 0  -;~ companies act, 1956, or any other peracm entltl~lto  dianage' the of  ,:: whole or~a sqbstantial paz:t,of the bulln _ of:the co~p"ny, under a cojdl)w • ~i  eement) inthe,employmentottheco~:many  immediately, before the commenoement  of this aclt ~i in so far 1\l&41lch 2s emp~oy:~ ill edlployeg,;in  ceimeation-with,the aftairs  af- the -under~ ~1i;of the··company, become u ,frdjjdrsuch coldjxlencementt , an ofb~ or other ~~o1e~ ,as· the: case may, he, of the cen~ra,l ~~ent ~d shall hald hisr otfice by thtl same t~\1re" at the same remuneration andumm, the same terms &nci conditions and 30 with the same rights and privilei~ as to pf-dsion and gx:atuity add other matters as he would have held under the company if this act had'not been-passed-~sball'colltlnue·to db 10 unless '8jid: 'until hla'employment in the· central ~ent is terminated or· until his remuneration, terms and conditions" are- duly' altered"by the 3s central government: ~ded' that if -the -a1t~ratiojl-1o made la~ dot,accep~h1e to j ~ suchotlieen>1" employe,his employment maybe t~ted by the cedtral govenunentrod pajtqedt,to himr by the central; government ofrcompenuticm equi\ullent to three dlodtha'remuneratioil in; the 40 ~ ~,~8dentlemployees' andonejdoilth~remunatlonln the cue 01 qther,employ~  provided :further· that nothing , eotabled in· thj& sedi~' ahall 8a})ly,lqaay of8eer ,or other· employee~wu has, by :dotice ,in· wr1iiq1 &twa to , tba-tcenu-al, govemmeat: within· thirty da7a-nat1ol1owid&i the eojnm 6dc8a\ent of thfa ad, intimated his intention of dot becom· fill an ofbcer or other employee of the central government (2) notwithstanding anything contained in the industrial disputes act, 1947, or in any other law for the time beinll in force, the ~ lt of 1m" tradlfer of the iervfeea of any oftlcer or other employee of the ~, company shall not entitle any such officer or employee to any compensation under that act or other law, and no iuf claim shall be entertained by any court, tribunal or other authority ~n- i notwithstanding anything contained in any law lor the time me alentl being in force, do director or managerial personnel specified in sec- 10 r:t ~~ tiod  197 a of the companies act, 1956, or other penon· entitled to 1 of 18h atlod manage· tk~; whole or a substantial part of the busines!$ and afrairs of' the company under a special agreement shall be entitled to any com,pensation against the company or the central government for the loss of ofbce or for the premature termination of 'any contract of is management entered ~o by him with the company ~~ 7 (1)' where any property has vested in the central government do  ,on under section 3, every person in whose possession or c!1stody or ~b' ~ whose control the property may be, shall deliver the property and ctocu- to the central government forthwith 20 mcb  = (z) any person who, on the commencement of this act,  o has in his possession or under his control any books, documents or other pa~a relating to the company which has vested in the central government under this act and which belong to the company or would have 10 belonged if the undertaking of the company 2s had not been acquired shall be hable to account for the said books, documents and papers to the central government and shall deliver them up to the central government or to such person lis the central government may specify in this behalf -(') -the central government may take all necessary steps for 30 seeuring pessesaion of all properties which have vested in that government under section 3 nut;:, to 8 the company shall, within thirty days from the commencement ::ru~arb of this att or within such further period as the central  government may allow in this behalf, furnish to that government 3s a complete inventory of all the properties and assets (including particulars of book debts and investments and belonglrigs) of the company at the commencement of this act, all liabilities and obligations of the company subsisting at such commencement and also of all agreements entered into by the company and in force on 40 such commencement including agreements, whether express' or impued, relating to leave, pension, gratuity and other terms of service 6f any oftietlr or other employee of the company under which, b)t vii't11e of this act, the central government has, or will have, or mat have, liabilities except such agreements as that government may exclude from the operation of this section, and for th1a-purpoae, , tbe----s central government ahall afford the company all reasonable facllltiel ~ i (1) where it appears to the central government that the ~ making of any agreement under which the company has or will have ment to ~ may have liabilities was not reasonably necessary for the purposes =,~m 'of the activities of the company or has not been entered into in ~t& lo·good faith, the central government may, within one year from 'the commencement of this act, apply to the tribunal for relief from the asreement and the tribunal, if satisfied after making  web inquiry iittiie matter as it thinks fit that the agreement was not reasonably necessary for the purposes of the activities of the com-15 pany or has not been entered into in good faith, may make an order cancewng or vawm, the agreement on such terms as it may think fit to impose and the agreement shall thereupon have efiiect accord-ingly (2) all the parties to the agreement which' is sought to be can-20 celled or varied under this section shall "be made parties to the proceeding 10 - ()) the central government shall pay c'!lllpedsation to the j::'r"" company for the acquisition of the undertaking of the company and acqullfuoa such compensitiod shall be detel'llltned in accordanee with the:!k~ 25 principles specified in the schedule and in the manner hereinafter  set oilt, that is to say,-(~ where the amount of compensation can be fixed by agreement, it shall be detennined in accordance with 8ucli agreement; 30 (b) where no such agreement can be reached the central government shall refer the matter to the tribunal within a period of three months from the date on which the centrai gov-~rnment and the company fail to reach an agreement regarding the amount of compensation 3, (2) notwithstanc:ung that separate valuations are calculated under the principles specified in the schedule in respect of the several matters referred to therein, the amount of compensation to be glvmt shall be deemed to be a  single compensation to be given for the undertaking as a whole 40 (3) the amount of compensation determined in accordance with the foregoing provisions shall be paid to the company in cash within - period of six months from the date of such determination: c ~jdc1e4 taat it· c_~tlqn is ddt paid' within, tit p,rted a~~~\ ~j!i~j1t,ral-gov ___ llt,sl)au ·pav ~,t ron, tlae8iq~ o'co~tiq~ ,at tbe: rat qifour per cent· ","·8dllqk~om,the ----,~li9~i~,qftqe!d i~ 5-9~' on () trlbuul  - 11 (1) 11a~igoveramedt may for the·purpol8l ofthls ad eodl  ·,!jribu  whiclhhajljcoblit·of··  le pel'loq·who ii, or  ,  ,  11 -u8et1·to be, a j •• ,,of, 1iich; court· or· of· the, su}ll'emecourt, 10 (2) th~ tdlnmal may ciioqie oqe or more· persopa po  lp ji~~~iaj ~lvl"q~ : of ajl7 qtatter relathac to any cufl qdu mqp:y to~ist tm trlb1uullin, d"'  b  , aqj q"tlojl wbidl·bu tq b~ d,:wedr-1w it un, • tbia~t ~  ~ (3) the tribunal shall have the powers of a civil court while 11 trying a suit under the code of civil procedure, 1908, in respect 'of i of 1101 thltf~uo~i matte-s, namely:-(4) swdmoning "and enforcing the attendance of any pel'8oll and examlnjng him on oath; (b) requiring the discovery and production of documents 0~20 - other material objeets prod~clble as evidence; (p) receiving evidedce on aftldavits; (d) issuing commissions for the axamjn"uodlof witn  ·or docqidents  (4) 'n1~ tribudal shall have wwer:to regqlate its own·proeedure 25 and decide all matters within its competence, and m4ly review any of its decislons in the event of there being a mistake on the face of the record, or correct any arithmetical or clerical en-or therein but subj~ct thereto, the decision of the tribunal on any matter within its jllri'ldiction shall be final and conclusive 30  chapl'er ivmalfag&mbnt abd adiiinistratiok  of thb undzrtasdfg i'formauon - d for the efficient management and admini$tratioll of the o goveru- -ment undertaking of the rompany vested in the central government by rmpany virtue of this act, that government may form a government 3' ~ comp$l1y in accordance with the provisions of the· companies act, 1 01 1  me:t of 195g·and on the formation of suell company, the undertaking togethu ~ with all, its properties, assets, liabilities and obugatiods speeified in ~c!tion ; (:t) df ,~tiotl - and weh bih~r' aprope~es,·' a~ liilfit utles itbd"'d6ligatidftsas'tnay hereafter 'be aequttedor incurreci'fdr the purposes of th'e undertalddf! ~n, !byvirtue of 'th!~ act~i!~tad~d=--__ _ ~erred to, add vest in, that government company ?s 1,13 (1) '?eadlq the' :formatiod of 'the govenmiedt eompally appolds referred to ill secitiod 12, the cedtra1 govemmeat may appobat ode, =:n;:' or more thad ode, administrator for the emeledt maoapmeat ud, ~ _ lamjiawratiud ·onbeloldttrta1dn  o ':f2)"-&ll!h ~t()r 'or ~tatots 'shill, in 'the·lm  ftjl~b'i i iild ,dmbti8ttatfon of the undertaldhg, act in 'acctjt"cluice ';nut !sul!b directions, if any, as may be issued by the central c:~~ennft'6it :!n this behalf  chapter v ~sis me 'u) alty''pel'lon)\vllo-'(d) havibgin his possession, custody or control any property 'tomifng 'part of the underlakinrot the company, wrongfully 'wfttihofds such property 'from the central government or wilfully  applies it to 'purpot&es other than those expresse'd ,in or authorised' by 'th1saet; or 20 (b) wroftgfully' 1)btains polsessldn 1:)fy ~",pehy ft)~ ,part' of the undertaltingof tiu! t!dm)1lmy -)d'eb ~lt  ~~ i th ' central government under this act;' fir (e) wilfully withhelds or falls to furnish to 'the cent~} government or any person specified by that government as 'required "by 'wb-s~~n !(z) ofseetibn·, any doeuth"erit wbich ,may be in ',his ~on, custody orcoi1trol; 'or c d) wilfully fan to furnish any particulars required under' ection 8; or '" 30 ce) when required to furnish any such particulars, furnishe any particulars which are false and which he either knows or believes to be false or does not believe to be true, shan be punishable wlth imprisonment for a term which may extend to two years, or with fine, or with both: ~s provided that the court trying any offence under t'lause (a) or ~l~u8e ('b) of tbl8 8ub-sectiod may,' at the time of convicting the aecusec:l person, order him to deuver up or refund within a time to be fixed by the court any p~operty wrongfully withheld or wilfully miaap~1ied or wrongfully obtained ! (2) no court shall take cognizance of an offence punishable under this section except with the previous sanction of the cel}tral govern- 5 ment or of an officer authorised !>y that government in this behalf , u no suit, prosecution or other legal proceeding shall lie~gainst the central government or an admitlistrator or ali officer or other employee serving in connection with the affairs of the undertajdng for anyth1n~ which is in good faith done or intended to be done under 10 this act'  ",;  - , power to make we ii (1) the central government may, by notiflcatibn fit ~e oftlcial gazette, make rules to carry out the purposes of thil act -(2) every rule made by the central government under this 11' act shall be laid as 80011 as may be &fier it is made before each house of parliament while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions and if, before the expiry of the session in which it is sp laid or the session immediately followinr both h~uses agree in 20 making any modification in the, rule or'" both houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, ~ the case may be; 10 however that any sucli modification or annulment aha1l be without prejudice to the validitv: of any,thing' previously done ujlder that rule a, 17 (1) the metal corporation of india (acqulsition of undertakin'g) ordinance, 1965, is bereby repealed (2) notwithstanding such repeal, anything done or any action taken under the said ordinance shall be deemed to have been done or taken under this act~ ; ,pii:dr~ lor d~ coii:pdba'l'iolf rca acqtji8mok or mil emment to the company in reaped of the acquiliuon of the undertakillr thereof shall be an amount equal to the iuid total of the value of the properties and assets of the company on' 'jle date of commencement of thti act c8iculated in accordance with the proviiitou of 10 paragraph d ze  the um total of the llabwu ad obupuodi of the company u on'the laid date calculated ill aeeordance with the provisions of paraaraph m p"ttjf1n'ph 11-(a) the market value of any land or buildidal; ti of ji"  (b) the actual· colt incurred by the company in acquiring any i' plant, machinery or other equipment- which has not been worked or used and is in good working condition and the written-down value (determined in accordance with the provisions of the income-to act, 1961) of any other plant, machinery or equiplllent; (c) the market value of any shares, aecuritiea or other investments 20 beldby the company; (d) the total amount of the premiums paid by the company ill respect of au leuehold properties reduced in the cue of each such premium by ad amount which bean to such premium the same proportion as the expired term· of the lease in respect of which suds 25 premium aha1l have been paid bean to the total term of the lear;   (e> the amount of debts due to the company, whether secured or unsec:ured, to the extent to which they are reasonably eonlidered to be recoverable; (f) the amount of calh held by the compey, wbeaar fa deposit 38 with - bank or othe~; (g) the value of all tangible ulets and propertl_ other thad tti_ fawn within any of the precedln, clauses , pa,,aph lll-'rhe total amount of liabilities add obuptioai -incurred by the company in connection with the formation, mana  ment and administration of the undertajdn, and ubalsttn, immediately before- the com~ma~ -of ~-ac:l""",-____ ~ __ , f~ ifa ~1!dependent u}iol1'bnpdrtstor meetin,  the 1"8-!~emaofld 'and; zmc~ both of which ~ essential riw materials ~'fid~' and rare· of considerable 'strategic importance ' pr~ -tiy/iftd' and zinc ore deposits in zawar area in rajasthan are ;\fle"c:mi11m~ sources· which can be worked 'on commercial &cue "tiil8area' wu'ne1dunder lease by the metal 'corporation of india r'raadfed, j a 'company' as defined in the' companies 'act,' t956~ which ~ults~~:~giiteted "oftlce in ~alcutta· ;"2! ttitder"8!l'bidiutiriai llcence granted to it  (6r1iinallicen~ grall-'ti!d'b1 1960 and amended in 1961), the company undertook a scheme jtb "b1creaae  mlde production, set up a zinc smelter tor producing electrolytic grade zinc and by-products and to expand its lead smelter the company had originally estimated the cost of the '(-=beme at- rs;·6'10 lakhs subsequently, the company tnlhcated increase in the cost of the scheme to rs 1,263 !akhs 'the compar1y was, however, unable to raise finances necessary far completing the project on an examination it was found that the company would require about rs 8 crores in rupee finance and rs 1 crore in foreign exchange to complete the project it was also found that the company had ordered much of the equipment, some of which had arrived and wu awaiting erection; some was lying at bombay port and incurring demurrage and some was awaiting shipment for want of letter of credit! the company had taken several loans, defaulted in the repayment of loans and in meeting the payments due on deferred loans and was in serious financial diftlculties any further loan to the company as asked for by it was, therefore, considered inadvisable besides, the company was unable to raise additional equity to match the loan capital ' 3 for want of finances, the construction work on the scheme had almost come to a standstill unless immediate action was taken to complete the project and run the equipment and machinery, there was risk of deterioration and much of the expenditure incurred on the project might have become intructuous serious shortages of zinc metal developed in vital lectors of defence and industry toll ow-ill' the ggression by pakistan and it also became apparent that importij of th1a metal even on a umlted scale 'may not be possible':-'fhu iiltuaucin bad added a dey and compewng urjenc7 to the jlfjc8tlily of taking immediate steps for the completion of the project ud-dertaken by the company and developing the zawar deposita  ' 4 the potentjaliues of zawar area in reprd to zinc and lead depoiits are large and it fa el88dtial that the full potential of this area mould berealued at the earliest exploration of the area and the development thereof 'would require large investmenta the company 'wu unable to eoxnplete even the umited scbeme it had undertaken for the ezploltauon of the depoeita it wu ther8fore in urgent national interest that the present scheme undertaken by the company should be completed as loon as possible and further steps taken for the de~elopment anclt:;:'2illzation of the potentialities of the deposits ·aij parliament was not in session, the undertaking of the metal corporation of india wu acquired under an ordfnad~ namely, the metal corporation of india (acquisition of undertakfng) ordinance, 1965 (6 of 1965) it is now proposed that the ordinance be replaced by an' act of paruament -:; n sanjiv a reddy new dam; i the 2nd no"ember, 1985  ;-'        i                                    !                                                                         "                                                    ~                                                            '                                                                ,                                                   i,                                                          i   1 \ acquiriticm 4~ com~~-c1&uie 4 of the ·bill delcribei the detaila of the wicwtaldng transferred to and vested in the cad-tral government the undertaking includes all usets, rights,leueholds, property including landa, buildings, works, mines, worbhopl, prplects, etc, cash balances, cash on hand, reserve funda add all borrowings, liabilities and obligation i ciiuae 10 provides for payment of compensation for the acquia-tion of the above~ the principles for determididg the compensation paydie' are apeclfled in the schedule the actual compensaticm payable wfll be known after a complete inventory of au aaseta and liabllitit is taken· add their value determined in accordance with the· schedule it may, however, be mentioned ~at as on lit april, 1964 (the latest date for which: balance;aheet u  available), the total paid-up capital and the reserves and surplulell  of the company were of the order of ra 270 crorea, and besides, the company had taken lecured loan of the order of ra 4" c1'orei and unsecured loan of the order of ra 77 lakhs besides pay1da compensation to the company, the government will have to take over the liabilities and obligations incurred by the company in cod-  nection with the forma~ion, management and administration of the undertaking and subsisting immediately before the acquisition by the government 2 adminutnlticm-clauae 13 of the bill provides for the appoldtment of one or more administrators for the efftctent management and administration of the undertajdng thfa involves expenditure on the pay and uowances of the administrator the expenditure on this account ii likely to be of the order of ra 10,000 the management and administration of the undertaking are idtencw to be entrusted to a government company at the earu  3 tribuncu-c1ause 11 of the bill provides for the appointment of a tribunal conslstlngof a sldgle penon who is ar bu been or" qualifted to be a j~dge of a high court or of the supreme court the tribunal is also empowered to choole one or more persona to assist it in determid1ng ad, question which baa to be decided by it under the bill the tribunal will have the powers of a civil court the tribunal will be appointed if do &jreeldent can be reached oa tba compensation to be paid the codstltutton of the trlbljdal  - clause 1801 the bill empowers the centralgovemment to make rul for carrym out the pu1'poiie8 of the act add all the would pertain to matten of detail or procedure the deleption of ie  lalive power involved fa of a doimal character , ,,' o j'- i' - - - !to, ' ~"   - billto provide for the acquisition of the undenaking of the metal corporation of india limited for the purpose of enablidg the central government in the public interest to exploit, to the fullest extent possible, zinc' and lead deposits in and around the zawar area in the state of rajasthan and to utilise those minerals in such manner as to subserve the common -good - ,  - - (8m; n sqllfltja rsddy, minisur of simi _mm) 