 bill no 31 of 1884 the mogul line limited (acquisition of shares) bill, 1984a bill to provide, in the public interest, for the acquisition of certain shares of the mogul line limited in order to serve betlter tite shipping mecu of the nation and for matters connected therewith or incidental thereto be it enacted by parliament in the thirty-~fth year of the ropubuc of india as follows:-1 this act may be called the mogul line limited (acquisition of short shares) act, 1984 title 2 in this act, unless the context otherwise requires,-5 (a) "appointed day" means the date on which this act comes =i into force; o (b) "company" means the mogul line limited, being a company within the meaning of the companies act, 1956, and having its registered office at 16, n g n vaidya marg (bank street), bombay; (c) "share" means a share in the capital of the company, and includes a share pledged by any shareholder with any bank or other creditor; 5 (d) "shareholder" means a person who, immediately before the appointed day, was registered by the company as the holder of any } sh~ a~d includes his legal representativ~; (e) words and expressions used herein and not defined but defined in the companies act, 1956, have the meanings respectively assigned to them in that act 3 (1) on the appointed day, all the shares of the company which are not held by the central government shall, by virtue of this act, stand 5 transferred to, and shall vest in, the central crllvernment (2) the central crllvernment shall be deemed, on and from the appointed day, to have been registered in the register of members of the company as the holder of each share which stands transferred to, and vested in, it by virtue of the provisions of sub-section (1) 10 transfer and vesting of certain ahares of the company in the central government (3) all the shares which have vested in the central crllvernment under sub-section (1) shall, by foree of such vesting, be freed and discharged of all trusts, liabilities, obligations, mortgages, charges, liens and other encumbrances affecting them, and any attachment, injunction or any decree or order of the court, tribunal or other authority restricting j 5 the use of such shares in any manner, shall be deemed to have been withdrawn (4) for the removal of doubts, it i'8 hereby declared that the provi sions of sub-sections (1) and (2) shall not be deemed to affect-(a) any right of the company subsisting, immediately before ao the appointed day, against any shareholder to recover from such shareholder any sum of money on the ground that the shareholder has not paid or credited to the company the whole or any part of ," the value of the shares held by him, or on any other ground what soever; or 25 (b) any right of the shareholder subsisting, immediately before the appointed day, against the company to receive any dividend or other payment due from the company 4 for the purposes of enabling the company to function as a govern-manalemental the  company ment company in which the entire share capital is held by the central 30 government, the central crllvernment may, by nottification in the official gazette, make such provisions (including amendments in the memornndum and articles of association of the company) as it may consider necessary and the provisions so made shall have effect notwithstanding anything contained in the companies act, 1956 35 1 of 1958 -' paya»dt of amounts   s: (1) every ~ whose "res in 1m cdritai of the company are transferred to, and vested in, the central government under section 3 shah for such tranl!ifer and 1'estmg, be given by that government, j,n cash and in the specified in sectioo 6, an amount calculated at the rate of rupees tea per share (2) the anaount pay1iiiie to a shareholder under sub-section (1) shall : ' amy  simple i at the rate of five and a haft per ce:'it per annum  for ~ period eommejiicink on the appointed day and ending on the date on which payment of such amount is made by the central government tn flae sjunholder 01' where such amourt  been deplo5ited l1dc1ft' subsedion (4) ~ sedion 6, ~ the d_ 0- which it is $0 depo$itecl ~ 6 (l) the amounts payable to a shareholder in accordance with the provisions of section 5 shall be given to him in cash to be paid by cheque drawn on the reserve bank of india mluulerof payment of amounts (2) a shareholder may make an application, in writing, to the central 5 government for the payment of the amounts payable to him (3) on the receipt of an application under su~section (2), the central government shall, after making such investigation as may, in its opinion, be necessary, make the pa~ent (4) if any 'dispute arises as to the person entitled to receive the 10 amounts payable in respect of any shafe, the central government shall deposit the amount in the principal civil court of original jurisdiction within the local limits of whose jurisdiction the registlered office of the company is situated for being paid to the person or persons entitled to be paid act to have overriding effect 15 7 the provisions of this act shall have effect notwithstanding anything inconsisitent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law, other than this act, or in any decree or order of any court, tribunal or other authority !to 8 (1) the central government may, by notification in the official gazette, make rules to carry out the provisions of this act power to make rules (2) every rule made by the central government under this act shall be laid, as soon as may be after it is made, before each house of parliament, while it is in session, for a total period of thirty days which 25 may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both houses agree in making any modification in the rule or both houses agree that the rule sho'uld not be made, the rule shall thereafter have effect only in such modified form 30 or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule  statement of objects and reasonsthe mogul line limilted is a public sector undertaking in the field of shipping functioning under the aegis of the ministry of shipping and transport at present, the company is operating certain important services, such as, the haj passenger service, konkan passenger service, coastal cargo service, bombayred sea cargo service and the overseas tramp service the value of the net assets of the company at present, that is, investment and working capital, is much less than the amount of its loan liabilities 18,94,483 shares of the company (which constitute 996/> per cent of the tot&l shares of the company) are held by the president of india, whilist the remaining 6,707 shares (035 per cent of the total shares of the company) are held by private individuals/institutions 2 with a view to dealing effectively with the problems faced by the company t\l1d thereby to enable the undertakings of the company to serve better the shipping needs of the nation, it is considered necessary in the public interest to make the company a fully owned government company efforts to acquire by private negotiations the small per cent of the shares of the company which are held by the priva~ individuals/ institutions have for various reasons not borne fruit it is accordingly proposed to acquire the said shares 3 the bill seeks to achieve the above objects new delm:; k vijaya bhaskara reddy the 20th feb1'uary, 1984 sub-clause (1) of clause 5 of the bill provides for payment of an amount calculated at the rate of rs 10 per share to every shareholder of the company the number of shares which are proposed to be acquired under the provisions of this bill is 6,707 accordingly, the expenditure for acquiring the said shares will be ri  67,070 however, the actual expenditure may be less than the above amount as many of the shareholders may not tu,rn up to lodge their claim in view of the fact that the whereabouts oi some of the shareholders are not known 2 sub-clause (2) of clause 5 of the bill provides that the amount payable to a shareholder under sub-clause (1) shall carry simple interest at the rate of &t per cent per annum for the period commencing on the appointed day and ending on the date 0:'1 which payment of such amount is made by the central government to the shareholder or where such amount has been deposited under sub-clause (4) of clause 6, on the date on which it is so deposited it is not possible to estimate at this stage the amount that may have to be paid by way of interest for that will depend upon the time within which various shareholders may apply for the amount 3 no expenditure is likely to be involved in connection with the work involved in the distribution of the amount as this work is proposed to be managed with the existing machinery of the government 4 the b1l1, if enacted, is not likely to involve any other recurring or non-recurring expenditure clause 8 of the bill empowers the central government to make rules for carrying out the provisions of the bill the matters in respect of which rules may be made would relate to matters of procedure and administrative detail and it is not practicable to provide for them in the bill itself the delegation of  legislative power is, therefore, of a normal character  a billto provide, in the public interest, for the acquisition of certain shares of the mogul line limited in order to serve better the shipping needs of the nation and for matters connected therewith or incidental thereto (shri k vi;aya bhcuk4fa reddy, mi:niatjer oj shipping and tra7t8pott) 