 manufacturers limited (nationalisation) bill, 1984 arrangemej>ff of clauses chapter i preliminary clauses1 short title and commencement 2 definitions  chaprer ii acqulsl1'ion and transfer of the undertakings of the two companies3 transfer to, and vesting in, the central government of the undertakings of the two companies 4 general effect of vesting s companies to be liable rior certain prior liabilities ·6  power of central government to direct vesting of ,the undertakings of the two companies in an existing government· company 7 transfer of the undertakings of the two companies from an existing government company to a new government company  chapi'er iii payment of amounts8 payment of amount 9 payment of further amounts  chaprer iv management, etc, of the undertakings of the 1wocompanies10 management, etc, of the undertakings of the two companies 11 duty of persons in charge of management of undertakings of the two companies to deliver all assets i etc 12 duty of persons to account for assets, etc,· in their possession  chapi'er v provisions relating ro em'p'loyees of' me two comp~13 continuance of employees 14 provident fund and other funds  chapter vi commissioner of payments clauses15 appointment of commissioner of payments 16 payment by central government to the commissioner 17 certain powel's of central goverrunent or existing or new, government company 18 claims to be mad'c \0 the commissioner 19 priority of claims 20 examination of claims 21 admission or rejection of claims 22 disbursement of money by commissioner 23 disbursement of amounts to the companies 24 undisbursed or unclaimed amount to be deposited with the general revenue account  chapter vii miscellaneous25 act to have overriding eftect 26 -contracts to cease to have effect unless ratified by the cenb-al government or existing, or new, government company 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 sf£ond schedule  (to be/as introduced it 10k sabha) 1 that in the long title, line 1,-(1) ~r "f':)r" insert "the" (11) m "inchecktt ~ "inchek" 2 that in the long title, line 7,-!ql: "therto" read "thereto" 3 page 3, against line 2 insert the marginal c1tation,-"1 of 1956"   4 p~ge 4, line 33,-1bi "cenra 1 " ~"cent ra i" 5 page 6, line 4,-- f2l: 141m d ert 0 king s " ~ "undertakings" , ' ,- pa be 6, 'lin e 5',-(1) !su: ":4, st 00 d" ~ "int erest " 7 p;lg~ '0, line 8,-!ox "each" ~ "such" 8 page 0, line 11,-m "underto kin gs ii ~ "uncertakings"  , ,' page , line 20,-9 (1) fol: !iiayment" l:fill!1"payment" ( 11) tlu: "amo una s " ~ ljame unt s" 10 page ~, lines 22 and 23,-!ql: "deterhined" ~ "determined" 11 page"', line 24,-(1) before "companies" ~ in sert "two" (11) befpre "amount 'i insert "the" 12" page 8, in the marginal he8ding to clause 15,-!ql: ''pay s3'vin g" tc:lq ''pa y!!lent s " 13 page 8, line ~l,_ (i) !ql: "the section " r8:'~ed "this se;;ction"  (ti) !ql: !ldef!lyed" rejd "defrayed" 14 page 18, line 10,-!qr "by" ~ "be" new ulhi·  ,  manufacturers limited (nationalisation) bill, 1984 a billto provide for acquisition and transfer of the undertakings of the incheck tyres limited and the national rubber manufacturers limited, with a view to securing ti~ proper management of such undertakings so as to subsenje the interests of the generalpublic by ensuring the continued manujqcture, production and distribution of tyf'es, tubes and other' rubber goods which are essential to the -needs of the economy of the', country and fcit matters connected therewith or incidentc1l therto wrbreas the incllek tyres umited and the national rubber manufilcturers umited bad been eagaged in the manufacture, production and distributiqll of _ articles mentio'jed in the first schedule to the industries (development and 6,'j( otlp5] 'ltcplatioll) act, ]951, namely, ~tes, tubes and other rubber goods; and whereas ~e management of the undertakings of the incbek tyres limited a:nd the management of the undertakings of the national rubber manufacturers limited were taken over by the central government ulnder the provisions of the industries (development and regulation) act, 1951; , ann wherl!las for the purpose of securing the optimum utilisation of the 5 available facilities for the manufacture, production and distribution of tyres, tubes and other rubber goods by the undertakings of the two compal11,ies, investment of a large amount is necessary; and whereas it is necessally to acquire the undertakings of the inchek tyres limited and the national rubber manufacturers limited to enable the ccmral 10 oovemmcnt to have such investments made and to ensure that the interests of the geacnl public are served by the continuance, by the undertakings of the companies, of the manufacture, production ~ distribution of tbe aforesaid articles which are essential to the needs of the economy of the country; be it enacted by parliament in the thirty-fifth year of the repubfu: of india j 5 as follows:- chapter i preliminaryshort title 1 (1) tiiis act may be called the inebek tyros limited and national and rubber manufacturers limited (nationalisation) act, 1984 20 commencemem (2) it shall be deemed to have come into force on the 14th day of february, 1984 2 in this act, unless the context otherwise requires,-defiditiodl (a) "appointed day" means the 14th day of february, 1984 (b) "commissioner" means the commissioner of payments appointed 25 under section 15: (c) "existing govcrnnlem company" means a government company wbjch is ca·rrying on business on the appojnted day; (d) "new government company" means a government comp8dy formed and registered on or after the appointed day; 30 (e) "notification" means a notification published in the ofiieial gazet~; (i) "prescribed"· means prescribed by rules made under this act; (g) "specified date", in relation to any provision of this act, means such date 88 the central government may, by notification, specify for the purposes of that provision, and different dates may be specifie4 for 35 diffcl'ent provisions of this act; (h)' "two companies" mcaaa tbelnchek tyres limited and the nat10dal ' rubber manufacturers limited,~being:companies aa:d,~:"':tbe:con;tpapies' ' act, 1956, add'havingtbeirtegisteteddices at"'lestie hous~\j9"jawaijarlal 1 of 19s8 n"btv road, caleutta-700013;  ,,"   ', '40 (i) words and expressions used herein and not defined but defined in the companies act, 1956, shau have the meanings respectively assigned to them in that act  chapter ij 5 acquisition ~nd transfer of the undertakings of the two companles3 on the appointed day, the undertakings of eaeh of, the two eompanles, and tbe right, title and interest of eaeh of the two eompaaiea tn relation to its undertakinp, shall by virtue of this act, tand transferred to, 8iid shall vest in, the centra] government transfer to, and vesting in, tbe central government of the ud-dertakings of the two companies general effect of vesting 10 4 (1) the undertakings of each of the two companies referred to in section 3 shall be deemed to include all assets rights, lease-holds, powers, authorities and privileges, and all property, movable and immovable, including lands, buildings, workshops, s!ores instruments, machinery and equipment, cash balances, cash on hand, cheques, demand drafts, reserve funds, investments, 15 book debts and all other rights and interests in, or arising out of, such property as were immediately before the appointed day in the ownership possession, power or control of such company whether within or outside india, and all books of account, registers and all other documents of whatever nature relating thereto 2u (2) all properties as aforesaid which have vested in the ccntra( government under section 3 shall, by force of such vesting, be freed and discharged from any trust obligation, mortgage charge, lien and all other incumbrances affecting them, and any attachment, injunction, decree or order of any court tribunal or other authority restricting the use of such properties in any manner or ap-25 pointing any receiver in respect of the whole or any part of such propertiea shalt be deemed 10 have been withdrawn, (3) every mortgagee of any property which has vested under this act in the centra) government and every person holding any charge, lien or other interest in, or in relation to, any such property shall give, within snch time 30 and in such manner as may be prescribed, an intimation to the commissioner of such mortgage, charge, lien or other interest (4) for the removal of doubts, it is hereby declared that the mortgagee 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 :ls ent~tled to claim in accordance with his rights and interests, payment of the mortgage money or other dues, in whole or in part out of the amount specified in relation to the company owning such property, in the first schedule, ,and also' out' of the amounts referred to in section 9 but, no such mortgage, charge, lieri 'm other interest shall be enforceable against any property which· bas vested 40 in the central government (5) any licence or other instrument granted to either of t,he two companies in relation to any undertaking which has vested in the central government under section 3 at any time before the 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 reiation to and for the purposes of such undertaking, and, on 5 and from the date of vesting of such undertaking under section 6 in an existing government company, or under section 7 in " new government company, the existing, or new, government company as the case ,may be shall be deemed to be substituted in such lk:nc: or oth(!r instrument as if such iiccn::e or other inst:nmledt h~ been granted to sucb existing, or new, government company and 10 such ~iiung, or new, government company shall hold it for the remainder of the period ,for which the compan,y to which it was granted \\-'lmld have held it under the terms thereof (6) if 00 the appointed day any suit, appeal or other proceeding of whatever nature, in relation to any property which has vested in the central gevern-i j ment under section 3, instituted or preferred by or against either of the two companies is pending the same shall not abate be discontinued (it be, in any way, prejudicially affected by reason of the transfer of the undertakings of such company or of anything contained in this act, but t~e suit appeal or other proceeding may he continu:d prosecuted of enfof~ed hy or against the ~o central government, or where the undertakings of the two companies vest under section 6 (lr section 7 in an existing or a new, government company by of against sllch government company ::omparues to be liable for ce  taln prior liabllitiel 5 (1) evory liability, other than the liability specified in sub-section (2) of each of the two companies in respect of any period prior to the appointed 2') day, shall be the liability of the concerned company and shall be enforceable agrunst it and not against the central government, or where the undertakinp of the two companies vest in an existing or a new, government company against such government company ' (2) any liability arising in respect of materials supplied to either :~f) of the two companies after the management of its undertakings had "been taken over by the centl'81 government shall, on and from the appointed day, be the liability of the cenral government or of the exist· iilg, or new, government company aforesaid, 8iild shall be discharged by that goverllment or, as the case may be, the existing, or new, gov· 35 ernme:at company, os and when repayment for such supplies becomes due and payable -  (3) for the removal of doubts, it is hereby declared that-(0) save as otherwise expressly provided in this section or in any other provision of this act, no liability, other than the liability 40 specified in su'b-section (2), of either of the two companies in relation to its undertakings in respect of any period prior to the appointed clay shall be enforceable against the central government, or where the undertakings of the two companies vest in an existing or a new, government company against such government company; 45 (b) no award, decree or order of any court trihuti:l' or other autbority in relation to the undertakings of either of the two companies, passed oil or after the appointed day, in respect of any mauer claim or dispute not being a matter claim or dispute in retatioa~toany matter refe~ to in sub-section (2), which arme hc'fore that day 5hau be enforceab1e against the central govl"rnment, or where the iindert!1kin~!'i of the two 50 companies v~st in an exj~ing, or'a new, government company, agaidst such government com~ny; ~c) no liability incurre4 by either of the two companies before tho appomted day, for the contravention of any provision of ~w for the time 5 being in force, !'hall be enforceable against the central government, or where the undertakings of the two companies vest in an existiq, or a new, government company, against such govemment company 6 (l) ~otwithstanding anything contained in sections 3 and 4, and "w,ject power of to the pr!;'vlslons of section 7, the central government may if it is satisfied that central loan existing government company is willing to comply, ~ has complied, with =~~~ such terms add conditions as that government may think fit to impose, direct, direct by notification, that the ulldcrtaking~ (if ~:lch of the two companies and' the right vestfna title and in,terc'lt of eaeh of the two companies in relation to its lj'lkiertakings of the h· h h ed  h c i underw i~ - ave vest 111 t ~ c'ntra government under section 3, shall instead of taldnis 15 contlnmng to vest m the central government, vest in that existing 00\ ~mment of the company either on the date of the notification or on such earlier- or later date two can (not being a date t:ariier than the appointed day) as may be specified in the panles notificetioo in an f'!x-latin, govern (2) where tbe right, title and interest of the two companies in relation to ment 20 their undertakings vest, under suh-section (l), in an existing government company company, that c'lovernment com ixln y shall, on and from the date of such vesting, be deemed to have become and, until the transfer ·of the undertak:ings, by virtue of the rrovisions of sectiott 7, to a new govermnent company, be deemed to he, the owner in relation to such ljjidertatings 25 and the rights and liabilities of the central government in relation to such undertakings shall, on and from the date of such vesting, be deemed to have become, and, until the date of such transfer, be deemed to be, the rights and liabilities, respectively, of that existing government company 7 (1) notwithstanding anything contained in sections 3 and 4, where the transfer 30 undertakings of each of the two companies have been directed, under sub- ~~::_ unsection (j) of section 6, to vest in an existing government company, the central inp of government may, if it is satisfied that a new government company is wiiling to the two comply, or hal! complied, with such terms and conditions as that government coidpadimay think fit to ~mpose, declare by notification, that the undertakings of each es from 35 of the two companies and the right title and interest of each of the two companies ~~ : in relation to its undertakings he transferred to that new government company, ernment and on the issue of such declaration, the right, title and interest of each of the company two companies in relation fo its undertakings which had been directed under sub-- to a llew   g shall 'nstead goyera scctiod (1) of secllon 6 to vest in an existing overnment company , i mentcom-40 of codtinuing to vest in that existing government company, vest in that new gov- piul)' emmcnt company with effect from the date on which !luch declaration is made (2) where the right, title and interest of the existing government company in relation to the undertakings of the two companies vest under sub-section (1), in a new government company, that government company shau, on and from the 45 date c:a such vesting be deemed to have become the owner in relation to sucb undertakings anrl the rights and liabilities of the existing government company in ,-elation to such undertakings, shah, on add from the date of such vesting, be deemed to have become the rights end liabilities, respectively of that new oovemment company  chapter 1ii payme1'o'l of amountspayment of 1moullt 8 for the trausfer to and vesting 10, the central governmadt, udder section 3, of the ~dertoldngs of eacb 01 the two companies, and the ri8ht, title and insteod of each of the two companes in relation to ;, its uddertakings, there shall be paid by the central government to each of the two companies, in cash and in the manner specified in chapter vi an amount equal to the amount specified against the dame of each company in the first ~beduje puyment of furth£'r amounts 9(1) for the deprivation of the two companies of the "liuuiagemellt 1 0 of their undertokings during the period commencing on the date on which the undertakings of each such company was taken over in pursuanee of the orders made by the central government under the provisions of the 65 of in;;l industries (development and regulation) act, 1951 and ending on the appointed day, there shall be paid by the central government to eacl1 15 of the companies in cash, 81ft amount of rupees ftfty thousand 2) the amount referred to in section 8 and the amount specified in sub-section (1) shall carry simple interest at the rate of four per cent par bddujd for the period commencing on the appointed day and endinl on the date on which jayment of such amounas is made by the central 20 government to the commissioner  (j) the amount referred to in sub-section (1) add the amount deterhined inaeeordance with the provisions of sub-section (2) shall be given by the central governmmt to the companies in addition to amount spedfled in seetion 8 ( 4) for the removal of doubt~, i i is hereby declared that the ji~bilities of either of the two companies in relation to its undertakings which have vested in the centra] government under section 3, shall be discharged from the amount :referred to in section 8, and also from the amount specified in sub-section (i) and the amount determined under suh-section (2) in accordance with the rights 30 and interests of the creditors of the two companies  ch a'j)'fer iv management, etc, of the undertakings of the two companiesit the genera] superintendence, direction control and m8lllagetnent of the affairs and husiness of the undertakings of each of the two companies, the 35 right, title and interest in relation to which have vested in the central government under seetig, 3 shal1,-management, etc, of the under takings of the two companies (a) where a direction has been given by the central government under sub-section (1) of section 6, vest on and from the date specified in such direction in the existing government company specified therein; or 40 (b) where 'a declaration has been made under sub-section (1) of section 7, vest, on and from the date of such declaration, in the new government company specified therein, and thereupon the existing, or new, government company so specified, shall be entitled to eltercise, to the exolusion of all other persons, all such powers add 45 do all such tbidp as either, or both, of the two companies, is or are, authorised to exercise and do in relation to its or their undertakings 11 (1) on the vestmg of the manasement of the undertakings of the two duty of companies in an existing, ora new, government company, ali pcr8qbs1n perlollb cbarge of the management of the undertakings of either of the two colllimmies lnt chari  media " 0 manllle-id1 tely before such vesting shall be bound to deliver to such government ment of 5 company all assets, books of account, registers and other documents in their undercustody relating to the uodertakilngs takjnp of the (2) ~e ceotral government may issue such ~jt~tionsas ft 1118' deem !:~e~; desirable in the clr~urnstences of the case to the exlstmg, or new; goveulidcut deliver company and such government company ma"{ also, if it is constdered necessary all tpets, 10 ~o to do apply to the centra] ('j(wernment at any timeforinstructiom 8's to etc, the manner in which the m:magement of the underta1clngs of the two ~arjles shall be conducted or in relation to any other matter arising in the course or such management ,  12 (1) any person who has on tho a"pointed day in his passessidn or' duty of 15 under his control anv assetc;, books documents or other ool)ers retatio!!; to the::rsonl undertakings owned by either of the two companies which have vested 'n the co= centr~l government or in a'll exlstin~ or a new government company under for ,thill act, shall be liable to account· for the said as~efs book9 documents uleta, ajjd other papers to the central government or the' existhig6r new, govern- qrjat)eo 20 ment comoanv as the case may be and f!halj deliver them to the cctu:raj gov-  ~ '~rnroent or the extstinl! or new government companv orft)'sueji j)er!!on or"  pers~ns as the c'entra'1 ('jovernment or th~ eyfo;tinl! or new government c6mpany m~ s!)ec'ify in this behau (i) the central government ot th~ ('jovomml"nt romnany af~said may 25 tete or cause to br taken, ~11 nec~"sary stet'll' forseeur;n2possessiql',of the undertakings of the two comoani~ which havf~ vested in the central government or the government company undrr thi!' act (3) the two comoanies shan within such neri~ as the  central government may allow in this hehallfumish to that govcrn~entl'a co~pteteinven-30 tory or all their properties and assets ~·s on thl' :lonointed day oertalnlnll to the undertakings which have vested in the ('pottal oovprnmeot under section ~ and for this' pm,~')~e the centrql ("jovem111cnt or th" c'rovernment company aforesaid ~an afford to the two cojtif)anies all reasonable facilities  chapter v 85 provt!'ltons rl'ratt1ijr, to fm'y'tovffc; or tf{f two c'()mp~a~13 (n every pe~on who hac; he(,fl imolecll~telv h,,or" th~ ~ot'ointed codtjau-i-d t_· f' 'l oj h' ~'i_" -'lad anc;, of day, employed m llny un ert~  tnt! 0 ci'ner, t~' two  '  'i'" 511 10 , , '" emp yeu beeome,- " ' (a) on lind from the apl'ointed day, an cm~joy('e of ~he central 40 government and (b) where the undertlllcifl'!" of the twn conmani  ; lite directed under secti~ 6 or unl'ler ;c('tion 7 to ve!:t, in an e:ttistin,l! m a new, gtwemment company an employee of such govc-mment company on and from the date of !;uch vc!lting, 45 and shall hold office or ervice under the ('ontra1 (';nvrrnment f)r ftte n'l'tfnlp, or new government company a!'l t~e case 'tiav bt- with tb~ ri~bt~ and orlvfleges 8sto per1!1ion !'1'8tuitv and othe't matte1'!i ndmi~siblf' to him immediately before the appointed day, as modified by the memorandum of seltlom  t lipod by the repi'esentatives of the management and the employees of each of the tw6 companies oil the  10th day of february 1984, and sba~l col'ltmue  to do io unieaa and until his employment under the central government 'or 5 the exlstin& or new, govemment company as the case'may be, is duly tendnated or untn his remunoration and other conditions of service are ~uly altered , the central government or the existing or new government company, as tile cue may be 14 of ih7 (i) notwithstanding anythin~ contained in the industrial disl"utcs act, 1947, or in lily other law for the time being in force the transfer of the 10 seirvlcel tt uy oftker or other penron employed in any undertaking of either of the two companies to the central gove·rnment or the existing or new, goveminent company, shall tt'ot entitle !ruch officer or other employee t~ any ct:'mpimtion nnder this act or any other law for the time being in force 'and no such claim shalt be en!ertained by any court tribunal or other authority 15 i (i) 'mere either of the two companie!l has e<ltablished _ a provident proyident fund add ofhet fudda faad~ superannuation welfare or other fund fm the benefit of the persons ~ in any d its undertakin~ the moneys relatable to the ofticetil or adler e~ whose servi~ have become transferred bv  or under thii 20 act fo the central oovl'rnment or an exi!lting or a new government company ilba11 out of the moneys standing on the appointed day to the credit of such provident fo·nd,  superan~uation welfare or other fnnd stand tramferred to and sb"l vc'!lt in tl'te centrnl government or tl'te existing or new goveiiuneat company as tbe case may 'be " (2) the moneys which stand transferred unlir-r 'iub-!le'ction (1) to the ('entral 125 -government or tlle existinr' or new government comoanv at; the c:a~ mev be shall be dealt ~th by that govf'mment or the existing or new government complny in such manqer as mav he prescribed  chapter vi commtsstonpr of paymentsappointment of coapnii-15 (1) the central government· shall for the purpo!'le or disbu1'iiill;'" 30  ~ the amounts 1i8yable under sections 8 and 9 to each of the two com -1ianles, by notification, appoillt a commi85ioner of payments  ~ '-'~r of pay- , ~ (t) the central government may appoint· such other 1)ersons as it 35 may thh," fit to midst the commifttoner alld thereupoll the commissioner may rnthom one or more of liuch ,e~nns also to'ex~rci!le all or aity of the dowp1'ii ~ercisa'hl, by him unde? fbi, act and different per iioiis may be mlth01'j"t!'d to exercise different powers (j) arv pe1'so· !il1thnris("d b·' tbe ('ommis'lion"1" to e~erci~~ :m" of the plowers exercisablf'"bv the commissioner may e'(ercie;e those t'iow~ in ihe !;ame 40 manner and with the ,same effect ae; if ·thev h:we heen oonfl'rr~d on ih'lt nerson directly hy thi!! act and not'hy way of allthorl~ation  (4) the s"18,,," and ftlloncl!!ll of the connnlulonej' and ~h_ perwon!ll a"""'nted 1mdel' flu'! flpc'tion !iihnll 'hp' dplaynf nut of the ('on solldted flmd of iii"a 16 (1) the central government shau, witbin thirty days from the specified pa1ludt da{e,pay in cash to the commissioner, for payment to each of the two by cellcompanies_    tral goy ernment (a) an amount equal to the amount specified against the name of such to the 5 company in the first schedule; and commia-i ) sloner   () an amount equal to the amoun~payable to each of·the two companies under section 9  (2) a deposit account shau be opened by the central government in favour of the (;ommissioner in the p~b~k account of india and every amouotpaicl 10 under this act to thl! comrmssl<lner shall be deposited by him to the credit of the said dej:x>sit account and the said deposit account shau be operated by the c0mtnls81oner (3) separ:ate records shall be maintained by the commissioner in respect of the undertakmgs of each of the two companies in relation to whicb payments 15 have been made to him under this act ( 4) interest accruing on the amount standi iii to the credit ~ the deposit account referred to in sub-section (:) shall cnureto the benefit of tbe two companies 1'1 (1) the central govc1'uolent or the existing, or new, g0ger1iiiiftt ccml-certald 20 pany, as the case may he, shall be entitled to r~ive op to ··dle'specffied date, ",powers the exclusion of all other persons, ony money due to either c1fthc two ~dic ;" lc~ inrelatjon to it'! undertakings whieh have vcsto(fin the central·go¥enu:aat or1he  ~t existing, or new, government company, iii the case may be, and 11ni1iscd after·the 'or exjatappointed day notwithstanding th'lt the realisation pertains to _ period prior tothe ln" or 25 appointed day new, gov-  emment (2) the central government, or the existing, or new, ~t ~t clotnpally as the case may be; may make 3 claim to the commissioner with f8iclrd to tn«y paymenttlulde by it after the appointed dey, for discharging any liability of either of the two companie~, not being any liability specified in sub-teetioo (2) of section 305, in ~lation to any period prior to the appointed day, and every such claim shill have priority, in accordance with the priorities attaching, under this ~t ~ tbq  matter in relation to which such liability bas been discharged by the central government or the existing, or new, government 06rnpany (3) save as otherwise provided in this act, the liabilities of lcitberof 35 the two companicf; iii respect of any transaction prior to the appointed day which' ·bave not been discharged on or before the specified date shall be the liabilities of lhe respective company 18 every person having a claim against either of the ,twooompan-=s with clairna regard to any of the matters specified in the second schedule pcrtaidiq to any to be fo undertakings owned by it, shall prefer such claim before the commissioner within =d~o~ thirty days from the specified date: ml  loner provided that if the commissioner is satisfied that the claimant was prevented by 'sufficient cause from preferring the claim within the said period of thirty days, he may entertain the claim within a further period of thirty days but dot thereafter  - 5 19 the claims arising out of the matters s~ifie~ in thc second schedule priorit7 shall have priorities in accordance with the fouowldg pnncrpjes, namely:-of elafih ( q) category i shalt have precedence over all other categories and category ii sbau kave precedence over category iii, &ad so 00; (b) the claims specified in each of the categories shail rank equally and be paid in full, but, if thcaulount is insufficient to meet such claims in fu11, they shall abate in equal proportions aqd be paid accordingly, and (c) the qaestion of discharging any liability with regard to a mauer specified in a lower category shall arise only if a surplus is left· after 5 meeting all the liabilities specified in the immediately higher category l!:xaminatian of claima 20 (1) on receipt of the claims made under section 18, the commissioner sbiu' 1ltan,e  the claims in the' order of priorities specified· in the secadd sdliic1ule - and ex8dline the same in accordance with such order    (1) if, onexaminatioo of the claims, the commissioner is of opinion that "10 the amount paid to him under th\s act is not sufficient to meet the liabilities ~ed in any lower category~ he ~ ~ot be required to cxamide 1m cl~ in~ of !i~h lower ~~  r " '" ' 21 (1) after examining the claims with reference to  the' priorities ipecified in the second schedule, the commissioner shall fix a date on or beforel 15 which evety,claiow;lcshwl file the proof of his claim ' ' admij ilion or rejection of claims (2) not leas than fourteen days' notice' of the date so fixed shall be"giwd by ~ in one issue of: any daily newspaper in the english language baving~on in the major part of the country and in one issue of izl1 ' daily j101fip8pet' ~ suchregional langullge as the commissioner may ~"~o buitablc sad every' sucb notice sball call \jpod the c1aim,ant to" file the proof of'lds claim wkh the commissioner ~fiin the period specified in the advor-, ,tiaemeot -  ii ' (3) every claimant who fails to file the proof of his claim within the period specified by ~ commissioner, shall be excluded ~ the disbursc1:n~t j:dade 25  by the cnm~oder (4) the cddmissioder shall,' 'after such investigation as may, io his opid-  ion, be decoiisary< an:d after giving the concerned company an opportunity ci refutlngthe claim and after giving the claimant a reasonable opportunity of being heard admit;or reject by order in writing the claim in whole or m" part  30 (5) the commissioner shall have the power" 10 regulate his own procedure in au matten arising out of the discharge of his" functions, including the place or pkca at whichhe may hold his sittiap and shall for the purpo-e of making any investigatiotl, under this act, have the same powers as' are vested  in a civil court undef1he code of civil procedw"e, 1908,wbile tryma a auito 35 501180 ia respect of the following matters, name1y:- -(a) the summoning and eoforcing the; attendance of any witdcn aad examilling him on o"dth; (b) the ctisoovery and pro<tuction of any document or other ma~ object producible as evidence;'  !  r: 40 (c) the ~ece~tion of evidence on affidavits; (d) the rissu~g of any cohlmission for the ~xaminatioll of witneases (6) any investigation before the commissioner shall be deemed to be a judicial proceeding withiothe meaning of sections 193 and 228 of the indian  penal code and the commissioner shah be deemed to be a civil \:ourt for tho 5 45 of 1110 purposes of section 195 and chapter xxvi of the code of criminal procedure, a of 1874 1973 (7) a clwmanl who is dissatisfied with the decision of th,~ commissiollet may prefer an appeal against such decision to the principal civil cqu11 of 0ri&id~ jurisdiction within the local limits of wh'?sc jurisdktion the registered office of the concerned company is situated: 5 provided that where a persoq who is a judge of a high court is appointed to be the commissioner, such appeal shall lie to tbe high court exercising jurisdiction over the place in which the registered omce or the concerned company is situated and such appeal shall be heard and disposed of by not less than two judges of that high court 10 22 after admitting a claim under this act, the amount due in respect; disburseof such claim shall be paid by the commissioner to the person or persoll8 to ment of whom such amount is due, and on such payment, the liability of each qf the money by two comnllnies in respect of such claim shall stand discharged commisrsiotler 13 (1) if, out· of the moneys paid to him iu rl!jil\i;oo, ~9 the undertakings of disburae-15 either ?f lli~ two compani~s, there is a bal~c: leftafter ulef;ftihg thcjiapilities ment ot as spcqfied 1,n the second schedule, the codl1ll1s,sloner shall dis_~,wch ~ amounts to the concemec1 company '   , to the companies (2) where the possession of any machiilery, equipnient of'other propelty has vested in the centra'" '(}overnment' or the' existih'g; or new;' go"crnment 20 company,under this,iact,  but ~ch· machinery ,oijuipment 'oli other property does not belong to eitherofahe twopp!ppal1ies, it shall be l)lwful 10r the central p0vern~t ·or the existing, or ne~, 90vernmcilt company, as:~b~  case may be,: to continue to poss~s sufh machine~y or equipmeijt or ~~cr rfp~erty  on the same terms and conditions undcr which they were possess~4 dy clth:r !:i5 of the two companies immediatej), before the appointed day, '  24 any mone)' paid to, the conwnissioner which remains uddisbursed or vndisunclaimed on the date immediately preceding the date on which, the office of bursed the commissioner is finally wound up, shan be transferred by the commissioner, ~~ai:e~ before his' office is finally wound up, to the geth!ral revenue account of the amount 30 ce~tral government; but a claim to any money so iransfcrred may be preferred to be deto the central government by ~e penon entitled to such pllyment :l1nd shall p~bited be dealt with as if such transfer bad not been made, and the order, if any, for with the the payment of the claim' b~ing treated as an order for the refund of revenue ~:~~~~  chapter vii account35 ~ellaneous 25 the -proviaiol1l of this act shall have effect notwithataddinl any- act to thing inconsistent therewith contained in any other law for the time being in ~i~~e overforce qr in any instrument having effect by virtue of any law, other than tbis effe~~ act, or in  any decree or order of any court, -tribunal or other authority  '40 lit every contract entered into oy either of the ;two companies in rclationcontrllcts to any of its ulldertakings which has vested in the~  ~ntral government und~r to section 3 for any service, sale or supply, and in force imtnediately before the cease to appointed day, shall, on and from the expiry of a p::riod of one hundred and have efeighty days from such day, cease to have effect unl~ss such contract is, before ~ect u~_ 45  the expiry of that· period, ratified, in writing, by· tho, central government or fiee~ ~~ the existing, or new, government company and in,iatifying such contract, the the cen-central government or the existing, qr dcw, govl:mment company may mako tral gov-iuch alteration or modification therein as it may think fit:' , emment - or existjng, or new, government  compan, prov4d ~l the central goverumentor the existing, or new, government company shall not omit to ratify a contract and shall not make any al~rati\)n or modulcation in a contract-, 5 (a) unless it is satisfied that such contract is unduly onerous, or has been entered into in bild hutn, or is detruueutl1 to the interests of the central government or such government wmpauy; and (b) except after givw& the parties to the contract 6 reasonable opportunity of beldg heard and except after recording in writing its reasons for refusal to rattly the contract or 101' makldg any atterllioll or modification therein - 10 penalties 27 any person who--,_ (a) having in his possession, custody or control any property forming part of any ~rtaking df eithu of the two companies wronafully withholds such property from the central government or the existidg, or new government company; or '  _  15, (b) wrooifully o~ possession of, or retains any property form-1di part of any oodertaking of eitber of the two companies; or (c) wilfully withholds or fails to ftimish to the central govenuncnt or the exjstlng or new govcmmcot company or any porson or body of persons ipccificd by that government or government company, any dqcu-20 jj¥?dl rejatidg to such undertaking, which may be in his possession ~y or oodtrol; or ,_ _  (d) fails to deliver to the central goveroment or the emling, or new gov~ company, as the case may ~, 'w any person or ',body of pcls0d6 specified by that government, or government company, any 25 assets, books of account, registers or other documents in his possession, custody or control rdating to the undertakings of either of the two companies; or r (e) 'wroiilifully removes or destroys any property forming part of' an, uadcrtaking of eitlw of the two companies or prefers any daijd 30 which be knows or has reasooable ckusc to believe to be false or gr~y inaccurate, shall be punishable with imprisonment foi a term which may extend to two years, or with fme which may extend to ten tllousand rupees, '«with both, offences );y companies 28 (1) where an offence under this act, has been committed by a 35 company, every person who, at the time the otience was committed, was in charge ,of, and was responsible to the company for the, conduct of (he busidcss of the company, as well 88 the company shall be deemed to ;be pty of the offence and sball be liable to be proceeded against, and 'punished accordidglj : p'rovided that nothing contained in this sub-section shall render any such penon liaple to any pm;shtnent, if he proves that, the offence was committed without his knowledge or that he· bad exercised all due dili&ence to prevent the commission of such 01rence ' (2) notwithstanding anything contained in sub-section (1), where illy 45 offence ' under this act has been committed by a company and it is - proved that the ofteilce hal been committed with the codsenl or comllvidcc of, - ii attribiatabie to any neclect or the part of, any director manager, secretary or other officer of the company, such director manager, secrelary or other officer shall be deemed to he guilty of that offence and shall be liable to be proceeded against and punished accordingly 5 exp/anation-,-por the pu'rposes of this section,-, (a) "company" means any 'body corporate and includes a firm or other association of individuals; and (b) "c:tireotor", in relation to a firm, means a partner in the firm 29 (1) no suit pl'mecution or other legal proceeding shall lie against the ~rotec--  ffi hon of 10 central government or the ex,lsting, or new, government company or any 0 cer action or other' employee of that government or the govcrnm·!nt company or any taken person authorised by that government or government company for anything in ~ood which is in good faith done or intended to be done under this act  talth (2) no suit or other legal, proceeding, shall lie against the central govern-j 5 ment or the existing, or new government company, or 'any offir~r or qther employee of that government or government company or any person authori~cd by that government or government company for any dam:t!re caused ot lil~ly to be caused by anything wh!ch is in' good faith done or intended to be done under this act 20 30 (1) the central government, may, by notification,' direct that au or det legat--  ion 0 any of the powen; exercisoo,je by' it under this act, other than the powers powers conferred by this section, section 31 or section 32 may llso be exercised by s~h persoil or persons as m'ay be specified' in the notification (2) whenever any delegation of power is made under sub-section (1) the 25 person to whom such power has been delegated shall act under the direction conlrol and supervision of the central government 31 (1) 'the centr,al government may by ,nolifica!ion, make rules for power - 1 to make carrying out the provisions of this act rules q) in particular and without prejudice to the ~nera1itv of the fore!!oing 30 power, such rules may p~vide fop all or any of the fotlowiqg matters m:me1y:-(a) the time within which, and the manner in which an intimation rc-ff<rred to in sub·section (3) of section 4 shall be given; (b) the manner in which the moneys in any provident fund or other fund refefred to in section 14 shall be deaft with; , (c) any other matter which is required to be, or may be, prescribed 35 (3) every rule made by the' central government under this act shall be laid, as soon as maybe after it is made, before each house of parliament whne it is in ~ession, fot a total period of thirty days which may be comprised in one session or in two or more successive sessions and if, before the expiry 40' of the session immediately following the session or the successive se~j(}ns aforesaid, both houses agree in making any modification in the rule or both' houses agree that the rule should not qe mlki¢, the rule sun thereafter have effect only in sud'! modified form or be of no effect as the case mny he; so however, that any such modificatio~ or annulment shall be without ptf'judice 4~ to the validity of anyt~ing previously done under that rule 32 if any difbculty ari!ics in giving effect to the provisiops of this' act power the central government may, by order, not ioconsistent with the provi~ions of :0: dlfti thi" act, remove the difficulty: cultipj provided that no such order shall be made after the expiry ofa period of ·two yean from the appointed day 33 (1) tb~ inchek tyres limited and national rub~r mauaufacturen limited(nationalis~tion) ordinance, 1984, is hereby repealed repeal aud aving (2) notwithstanding such repeal, anything done or any action t~n udder 5 the said ordinance shall be deemed to have been done or taken under the cor- of 19" responding pfqvisions of this act ,  the first schedule[see sections 4 (4), 8 and 16 (1)] ---_--_  __ ___------ ----• ----- -----s1 no name of the company amount 10 (rupees in lakhs) inchek tyres limited' 83040 -------~- _--1 2 national rubber manufacturers limited 159m __---_  _-,  _---- _ ----_  _-------_  ~ the second schedule-[see sections 18, 19, 20(1) ,21 (1) and 23 (1)] order of priori'lds'for '1"iu disoiabgj: of liabili'l'ij:s of the two compum:b  category 1-" (a) wages, salaries and other dues payable to the employees of the companies ,  a (b) arrears in re1ation to contributions to be made by the com- 20 panies to the provident fund, 'employees' state inlurance f'ilnd, life insurance corporation premium and any other arrear under any law for the time being· in force  po~t-take-over ~gement p~riod: category il-principal amount of loans advanced by-(a) ~e centralgovernmentj (b) a state government; (c) banks and public financial institutions; 30 (d) any other sources category iii-(a) any credits availed of by the companies for the purpose of carrying on any trading or manufacturing operations, other than the liabilities specift~ in sub-secti~n (2) of section 5 35 (b) any dues 01 state electricity boards or other government and semigove~~nt institut~ons against supply of goods or servicea, ' oth~r than the liablltties spec1fied in sub-section (2) of section 5 (e) arrears of interest on loans and advances category iv-(a) revenue, taxes, cesses, rates or other dues to central government, a state govemment or any local authority (b) any other dues pretakeovet' management perioci 5 category v-1 principal amount of secured loans advanced by--(a) the central government; (b) a state government; 10 (c) banks and public financial institutions ( , category vi- ~ principal amount of 'unsecured loans advanced by-(a) the central government;  (b) & state government;  i (c) banks and public financial institutions; (d) any other sources category vil-(a) any eredits availed of by ~he companies for the purpose of carrying on any trading or manufacturing operations 20 (b) any dues of state electricity boards or other government and semi·government institutions against supply of goods or services (c) arrears of ~nterest on loans and advances (d) revenue, taxes, cesses, rates or other dues to central government, a state government or any local authority (e) any other loans or dues    statement of objects and reasonsthe inchek tyres limited commenced production of automobile 'lyres 'and tubes in kaiqnara (west bengal) in 1963 the undertaking started showing unfavourable operational results after 1970 and by june 1977 the company had an accumulated loss of rs 89 crores as against the paid up capital of rs 3 crores the management of the undertaking was taken over under the industries (development and regulation) act, 1951, on the 13th april, 1978 the undertaking employs about 1,380 persons 2 the national rubber manufacturers limited, calcutta, have ~ units the unit at tangra (calcutta) produces cycle tyres, tubes and rubber goods like fan and v belts, transmission and conveyor belts, ')loses, etc, and the other unit at kalyani produces reclaimed rubber in early 1970s, the production at both the units was affeeted due to labour trouble, erratic power supply, shortage of certain raw materials and poor quality of the finished products by march 1977, the company had an accumulated loss of rs 425 crores as against the paid up  capital of rs 130 crores the management of the tangra unit was taken over by the government under the industries (development and regulation) act, 1951, on the 23rd december, 1977, and that of the kalyani unit on the 10th february, 1978 the company employs about 3,120 persons 3 a common board of management was appointed as the "authorised person" under the industries (development and regulation) ad, 1951, for both the undertakings howeveii', operational results of the undertakings continued to be unfavourable even after the take-over of management for various reasons rehabilitation of the undertakings required large investments for repair, replacement, modernisation and change in product mix it was not possible for government to arrange for such investments without nationalisatlon of the undertakings the undertakings could not also generate adequate resources even for current operations for payment of wages the accumulated losses soared to rs 2581 crores in the  inchek tyres and to rs 1874 - crores in national rubber manufacturers by 31st march, 1982 the revival of these undertakings~ restructuring the capital base and the payment of past liabilities of these companies were, therefore, considered to be an immediate necessity among the various alternatives, nationalisation of the undertakings of the companies was considered to be the only acceptable alternative to achieve this process quickly, followed by a major renovation and modernisation programme involving substantial capital expenditure banks and financial institutions which had been nursing the undertakings found it no longer possi~)e to finance its losses the operations in the undertakings had come to a standstill in view, of these cfrcumstances it was considered necessary in the public interest to immediately acquire the undertakings of the inchek tyres limited and the national rubber manufacturers limited so that the undertakings could restart operations and the revival and modernisation programmes may be implemented early to avoid further losses and deterioration in the assets of the undertakings the nationalisation of the undertakings would also save about 4,500 workers from unemployment the inchek tyres limited and national rubber manufacturers limited (nationalisation) ordinance, 1984 (4 of 1984), was accordingly promulgated by the president on the 14th february, 1984 the said ordinance, apart from providing for the acquisition of the undertakings of the two companies and vesting the same in an existing or' a new government company, provided for payment of amounts to the companies for the acquisition, appointment of a commissiomr of payments for the purpose of disbursing the amounts to the companies and other incidental and consequential matters 4 the bill seeks to replace the aforesaid ordinance new' di!!lhi; narayan da'it tiwari the 27th february 1984  president's recommendation under article 117 of the ,constitution of india[copy of letter no 9/2/84-lr, dated 28 february, 1984 from shri narayan datt tiwari, minister of industry to the secretary-general, lok sabha] the pr-esident, having been informed of the subject matter of the inchek tyres limited and national rubber manufacturers limited (nationnlisation) bill, 1984, recommends under ~lauses (1) and (3) of article 117 of the constitutwn the introduction of the said bill in and its consideration by lok sabha clause 3 of the bill provides that, on the appointed day, the undertakings of each of the two companies, and the right, title and interest of each of the two companies in relation to its undertakings, shall stand transfetrred to, and shall vest in,the central government 2 under sub-clause (2) of clause 5 of the bill, any liability arising in respect of materials supplfel:i to either of the two companies after the management of the undertakings of the concerned companiell had been taken over by the central governmeht, shall, on and from the appointed day, by the liability of the central government or of the existin'g, or new, government company in which theundertaiings are vested under the provisions of the bill it is estimated that this amount is likely to be of the order of rs 47 lakhs 3 clause 8 of the bill provides for payment in cash and in the manner specified in chapter vi thereof, an amount equal to the amount specified against the name of each company in the first scheldule, for the transfer to, and vesting in, the central government of the undertakings of each of the two companies and the right, title and interest of each of the two companies in relation to its undertakings the total amount i8 of the order of rs 49004 lakhs 4 sub-clause (1) of clause 9 of the bill provide~ for payment of a further amount in cr!=h to each of the companies for the deprivation of the companies of the management of their underlakinj!s durin'g the period commencin~ on the date on which the undertakings of each company was taken over by the central government under the provisions of the tndust1'ie~ (development and regulation) act, 1951 and endfnjt on the- appointed day, an amount, of· rs 50000 5, sub-clause (2) of clr'use 9 of the 'bill provides for payment of simple interest at the rat~ of four per cent, per annum on th  amount spec~ed under clause 8 and l'lub-clause (1( nf clause 9 for the period <:ommencln~ on the apoointeo dav and endin~ on the date on which payment of such amounts is made by the central government to the commiasioner of 'payments it is estimated that this amount will be· of the order of rii 1 ,63~o per month 6 clause 15 of the bill nrovide!o1 that the central government shan appoint a cornmi~sioner of payment~ and may also appoint such other persons as i+ mav think fit to asl'li/;t the commissioner and thereupon the commissioner mav ruthorise one or more of l'luch pet'!lons also to exercise an or any of the powers exercisable by him 'nle salaries and allowance& of the commissioner and the ot'her nerbona appointed under the said clause shall be defrayed out of the consolidated fund of india 'nle estimated expenditure on this account is 1ilcely to be of the order of rs 25,000 per month '1 funds ,,>ill 81ao have to be providm to the existin~ or new government company in which the undertakings of the inchek tyree limited and national rubber manufacturers limited are vested, towards repairs and replacements during phase i period, and renovation and modernisation during phase ii period the estimated cost of implementing phase i would be around rs 9,26,00,000 (rupees nine crores and twenty-six lakha only) 8 it is anticipated that all the liabilities specified in the second schedule to the bill are not likely to be discharged fully by the commissioner of payments out of the amounts paid to him under the provisions of the bill the central government proposes to assume some of the undischarged liabilities, such as, repayment of loans given by banks and financial institutions after the management of the undertakings had been taken over by the central government, and principal amounts of loans and advances given by such banks and financial institutions at the behest of government (ie all the loans released by irci state bank of india and sta·e government of west bengal after 1-7-1976) before s'uch management was taken over and simple interest thereon the extent of liabi1i~y on this account will be known only subsequently after the commissioner of payments has made available his reports 9 the bill, if enacted, is not likely to involve any other recurring or non-recurring expenditure clause 31 of the bill empowers the central government to make rules to carry out the provtisions of the bill the mattel-s in respect of which rules may be made, inter alia, relate ,to the time within which, and the manner in which, intimation regarding any mortgage, charge, lien or other interest 'in, or in relation to, the properties which have vested in the central government under clause 3 of the bill shall be given to the commissioner of payments and the manner in which the moneys in any provident fund, superannuation, welfare or other fund maintained by either of the two companies shall be dealt with by the central government or the existing, or the new,-government compan¥ 2 the matters in respect of which rules may be made are matters of procedure and administrative detail the delegation of legislative power i~ thus of a normal character  a billto provide for the acquisition and transfer of the undertakings of the inchek tyres limited and the national rubber manufacturers limited, 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, production and distribution of tyres, tubes and other rubber goods which are essential to the needs of the economy of the country and for matters connected therewitb or incidental thereto (shri ncrrayan datt tiwari, minister of industry) 