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bill no 127 of 2009 the indian medical council (amendment) bill, 2009 byshri varun gandhi , mp a billfurther to amend the indian medical council act, 1956be it enacted by parliament in the sixtieth year of the republic of india as follows:—short title1 this act may be called the indian medical council (amendment) act, 2009102 of 19562 after section 23 of the indian medical council act, 1956, the following section shall be inserted, namely:—5insertion of new section 23a"23a notwithstanding anything contained in this act, no person shall be eligible for enrolling his name in any state medical register as a medical practitioner unless he has served as a medical practitioner in a rural area for a minimum period of one year in such manner as may be prescribed"compulsory practice in rural areas for enrolment in state medical register sstatement of objects and reasonsthe current system of medical education makes it optional for the students to work in outreach, rural, public or ngo supported hospitals this has resulted in a very low percentage of students actually opting for this exposure leading to a real disconnect between medical knowledge of the students and community health needs the present system only assesses a student for knowledge in basic and clinical sciences and the underlying principlesrural primary health centres (phcs) remain understaffed and underutilized as a result of the acute and growing shortage of qualified health care professionals in the public health sector as a result, patients from rural areas are forced to find medical help in cities which leads to central institutions like aiims becoming over-burdened there is a substantial gap between increasing investments in health and proportionate improvement in access to health carearound 30,000 medical students complete medical education every year a majority of these choose to practice in urban areas, the private sector or abroad in order to ensure a sufficient supply of qualified medical practitioners with the requisite stamina and medical training to serve patients in rural areas and to give medical graduates invaluable experience and a grasp of medical issues at the grassroot level, it becomes imperative to draft the services of medical graduates to work in rural areas at least for one yearhence this bill lok sabha a billfurther to amend the indian medical council act, 1956(shri varun gandhi, mp)gmgipmrnd—5024ls(s5—08-12-2009 | Parliament_bills | bad6c23f-5c1b-5507-86ba-700b4cd085e1 |
bill no xlviii of 2014 the farmers of arid and desert areas (welfare and other special provisions) bill, 2014 a billto provide for the protective measures and special facilities for the farmers of arid, desertand drought prone areas, who are often affected by natural calamities causing loss ofcrops, livestock, etc, making them vulnerable to indebtedness, diseases andphysical infirmities, exploitation by moneylenders and others, by extendingwelfare measures by the central and state governments for them, for theestablishment of a welfare fund, for the removal of indebtedness,giving remunerative prices for their produce, providing hasslefree bank loans, improving farming practices throughscientific means to grow less water consuming crops, forcompulsory crop and livestock insurance and suchother measures and for matters connectedtherewith or incidental theretobe it enacted by parliament in the sixty-fifth year of the republic of india as follows:—1 (1) this act may be called the farmers of arid and desert areas (welfare and other special provisions) act, 2014short title, extent and commencement(2) it extends to the whole of india (3) it shall come into force with immediate effect5definitions2 in this act, unless the context otherwise requires,—(a) "appropriate government" means in the case of a state the government ofthat state and in other cases the central government;5(b) "arid areas" means areas which remain affected by aridity due to scanty or norainfall;(c) "drought prone areas" means any area which gets below normal rainfall inany season of a calendar year and which in the opinion of the central government is drought prone and declared to be so by notification in the official gazette, for such period as may be specified in the notification;10(d) "desert area" means an area full of sand, mostly remains waterless with fewplantation and vegetations;15(e) "farmer" means a person who owns agricultural land and cultivates or causesit to be cultivated for agricultural purposes or for horticulture purposes and includes all farmers big, middle, small and marginal farmers as identified by the appropriate government(f) "natural calamity" means with reference to arid and desert areas, drought,flood, excessive rains, storm, hailstorm, winds, frost, winterkill, lightening, fire, earthquake, wild life, insect infection, plant disease and such other natural causes as may be prescribed;20(g) "prescribed" means prescribed by rules made under this act; (h) "welfare fund" means the arid and desert areas farmers welfare fundestablished under section 4;25national plan for welfare of farmers of arid and desert areas3 (1) notwithstanding anything contrary contained in any other law for the time being in force, the central government shall, as soon as may be, formulate and publish in the official gazette, a national plan for the welfare of the farmers of arid, desert and drought prone areas in particular of gujarat, rajasthan etc as may be necessary, incidental or conducive for such plan and shall take appropriate measures for proper implementation of such plan(2) in particular and without prejudice to the generality of the provisions contained in sub-section (1) such national plan may include provision of,—30(a) immediate interim relief or ex-gratia payment to farmers affected by naturalcalamity;(b) diversification of crops which require very less water developed by variousagri research institutes suitable for arid, desert and drought prone areas ;35(c) comprehensive crop and livestock insurance scheme for the arid, desert anddrought prone areas in which insurance premium of small and marginal farmers shall be borne by the central government;(d) ensuring remunerative prices for the agricultural produce of the farmersthrough minimum support price mechanism or other appropriate measures;40(e) making easy availability of fertilizers, manure, pesticides and quality seeds ataffordable prices ;(f) irrigation projects to provide requisite irrigation facilities and ensuring timelycompletion of such irrigation projects;45(g) comprehensive measures for removing indebtedness, easy loans with nominalinterest from banks and other financial institutions, saving farmers from private moneylenders and unscrupulous traders, middlemen etc(h) establishing agricultural farms to ensure timely and adequate supply of qualityseeds and saplings at affordable prices;(i) establishing agricultural universities, krishi vigyan kendras and krishiinformation centres at conspicuous places for promotion of less water consuming crops and horticulture;5(j) establishing modern veterinary hospitals and clinics in every block to assistfarmers in animal husbandary ;(k) promoting dairy sector, rearing of animals, poultry, piggery, bee keeping etcto enhance farm income;(l) promoting cultivation of vegetables, floriculture, horticulture, spices,sericulture, herbals and plants of medicinal values alongwith handloom and handicrafts and other village arts to supplement the income of farmers;10(m) promoting traditional water bodies like wells, ponds, lakes, etc and rainwater harvesting and providing sprinklers etc and regular power supply to farmers; and15(n) providing such other facilities as may be necessary, incidental and expedientas may be prescribedestablishment of welfare fund4 (1) the central government, shall, as soon as may be, by notification in the official gazette, establish a welfare fund to be called the arid and desert areas farmers welfare fund for carrying out the purposes of this act20(2) the initial corpus of the welfare fund established under sub-section (1) shall berupee ten thousand crore to be provided by the central government after due appropriation made by parliament by law in this behalf(3) after the establishment of the welfare fund, money shall be provided to the welfare fund by the central government and the concerned governments of the states in such proportion and in such manner as may be prescribed25(4) the welfare fund shall also comprise money received from the general public,body corporate and domestic and foreign financial institutions as donations, gifts etc30(5) the welfare fund shall be utilised for providing immediate financial assistance,ex-gratia payments, compensation to the distressed farmers covered under this act affected by any natural calamity or disaster resulting in loss of crops in such manner, as may be prescribed(6) the welfare fund shall also be utilized for providing special assistance as may be formulated by the appropriate government for the children, women, physically challenged or infirm farmers, old farmers and such other persons vulnerable to the aftermath of natural calamity in such manner as may be prescribed355 it shall be the duty of the appropriate government to provide every farmer coveredunder this act,—(a) medical facilities including medicines and hospitalization, wherever requiredfree of cost ;welfare measures to be undertaken by appropriate government(b) educational facilities including higher education free of cost to the childrenof such farmers;40(c) maternity facilities to the spouses of such farmers; (d) adequate old age allowance which is sufficient to lead a dignified life; (e) disability pension to the physically challenged farmers; and(f) such other welfare and protective measures as may be deemed necessary and appropriate, or as may be prescribed456 the central government shall provide, after due appropriation made by parliament by law in this behalf, necessary requisite funds to the concerned governments of the states, from time to time, for carrying out the purposes of this actcentral government to provide fundspower to remove difficulty7 (1) if any difficulty arises in giving effect to the provisions of this act, the centralgovernment may, by order, published in the official gazette, not inconsistent with the provisions of this act, remove the difficulty:provided that no such order shall be made after the expiry of two years from thecommencement of this act5(2) every order made under sub-section (1) shall be laid, as soon as may be, after it ismade, before each house of parliamentact to have overriding effect108 the provisions of this act and the rules made thereunder shall have effect,notwithstanding anything inconsistent therewith contained in any other law for the time being in force but save as aforesaid the provisions of this act shall be in addition to and not in derogation of any other law for the time being in force dealing with the subject matter of this actpower to make rules9 the central government may, by notification in the official gazette, make rules forcarrying out the purposes of this act statement of objects and reasonsgujarat in particular the saurashtra and kutch regions and major parts of rajasthan are having arid and desert areas where sand is everywhere these areas face extreme heat in summer and extreme cold in winter many a time, they face heavy rains but mostly the rainfall is scanty and deficient similarly, large number of areas in various parts of our vast nation particularly in the states of andhra pradesh, telangana, jharkhand, bihar, madhya pradesh, maharashtra, odisha etc are frequently affected by unprecedented drought conditions and desert is spreading in many of such areas despite the harsh natural conditions and vagaries of nature, agriculture continues to be the main occupation in these regions and areas of the country and farmers are the backbone of the economy in these regions and areas too as is the case of the rest of the countryalthough the farmers of the entire nation depend on rains for their crops same is true for the farmers of arid and desert areas and those face frequent drought conditions but farmers of arid and desert face extreme weather conditions and bear the brunt of such weather conditions and generally lose their crops with the damage of the crops, the hopes and aspirations of the farmers too are lost the farmers of such areas remain indebted and distressedours is a welfare state and it is the duty of the state to protect the farmers of arid, desert and drought prone areas by giving sufficient protection the state should implement comprehensive crop and livestock insurance, extending soft loans by banks and financial institutions, providing timely adequate compensation when their crops are affected by natural calamity they must get remunerative prices for their produce and state should implement welfare measures for them a welfare fund should be set up for the farmers of arid and desert areashence this billahmed patel financial memorandumclause 4 of the bill provides for the establishment of welfare fund for the farmers of arid and desert areas with initial corpus of rupee ten thousand crore to be provided by the central government clause 5 provides for certain welfare measures to be undertaken by the appropriate governments clause 6 makes it mandatory for the central government to provide requisite funds to concerned statesthe bill, if enacted, will involve expenditure from the consolidated fund of india it is estimated that a sum of rupee twenty thousand crore, may be involved as recurring expenditure per annuma non-recurring expenditure of rupee five thousand crore may also be involved from the consolidated fund of india memorandum regarding delegated legislationclause 9 of the bill gives power to the central government to make rules for carrying out the purposes of the bill the rules will relate to matters of details onlythe delegation of legislative power is of normal character————— a billto provide for the protective measures and special facilities for the farmers of arid, desertand drought prone areas who are often affected by natural calamities causing loss ofcrops, livestock, etc, making them vulnerable to indebtedness, diseases andphysical infirmities, exploitation by moneylenders and others, by extendingwelfare measures by the central and state governments for them, for theestablishment of a welfare fund, for the removal of indebtedness,giving remunerative prices for their produce, providing hasslefree bank loans, improving farming practices throughscientific means to grow less water consuming crops, forcompulsory crop and livestock insurance and suchother measures and for matters connectedtherewith or incidental thereto—————(shri ahmed patel, mp)gmgipmrnd—3802rs(s3)—18-12-2014 | Parliament_bills | 8bee5701-349a-5684-a0c2-c7c434f72ca8 |
bill no 210 of 2018 the national food security (amendment) bill, 2018 by shri jagdambika pal, mp a billto amend the national food security act, of 2013be it enacted by parliament in the sixty-ninth year of the republic of india as follows:—1 (1) this act may be called the national food security (amendment) act, 2018short title and commencement(2) it shall come into force on such date as the central government may, by notificationin the official gazette, appoint(a) in clause (5), the words "or any combination thereof " shall be omitted; (b) for clause (6), the following clause shall be substituted, namely: —(6) "food security" means the supply to all persons, at all times other than during war, of the entitled quantity of foodgrains and meals specified under chapter ii, which meet their dietary needs and food preferences; and (c) for clause (9), the following clause shall be substituted, namely: —5(9) "meal" means fresh hot cooked food made from locally procured material and does not include pre-cooked meals or take home ration;" 3 in section 3 of the principal act,—amendment of section 3(i) in sub-section (1),—10(a) for the words "five kilograms of foodgrains", the words "five kilograms of foodgrains of the recipient's choice" shall be substituted; and(b) in the first proviso, for the words "thirty-five kilograms of foodgrains", the words "thirty-five kilograms of foodgrains as per the recipient's choice" shall be substituted (ii) sub-section (3) shall be omitted4 in section 8 of the principal act,—15amendment of section 8(a) for the words "entitled quantities of foodgrains or meals", the words "entitled quantities of foodgrains of the recipient's choice or meals" shall be substituted; and(b) the following provisos shall be added at the end, namely:—20provided that such food security allowance shall not be less than the market price of the foodgrains of the recipient's choice prevailing at the time, as ascertained by the state government:provided further that such allowance shall be made available to the recipient within forty-eight hours from the time that the recipient is informed of the unavailability of foodgrains of the recipient's choice" 5 in section 12 of the principal act, in sub-section (2), clause (h) shall be omitted25amendment of section 126 in section 44 of the principal act,—amendment of section 44(a) the words, "flood, drought, fire, cyclone or earthquake" shall be omitted; and (b) the proviso shall be omittedamendment of schedule ii307 in schedule ii to the principal act, in column 3 under the heading "type of meal", for the words "take home ration" occurring against serial numbers 1, 3 and 6, the words "hot cooked meal" shall be substituted statement of objects and reasonsthe national food security act was enacted in 2013 to ensure access to nutritious food to every person in the country however, even after five years since the passing of the act, statistics show that hunger and starvation continue to be rampant in the country the reason for the limited success of the national food security act is that there were intrinsic shortcomings and contradictions within the actthe term "food security" conveys that every person should have access to nutritious food of his or her own choice at affordable prices at all times however, the principal act, while based on a rights-based approach, failed to provide the element of choice to the beneficiaries the act permitted the government to provide whatever foodgrains are available, rather than the ones demanded by the beneficiary this bill therefore seeks to ensure that beneficiaries are able to choose the foodgrains that they consumethe principal act also provided that the government should promote cash transfers and food coupons however, this will lead to privatisation and result in higher prices for the beneficiaries moreover, it amounts to abdication of its duty by the state this bill seeks to ensure that beneficiaries are not adversely affected by provision of food coupons in place of affordable foodgrainsfurther, the principal act permitted the government to provide beneficiaries "take home ration" in place of hot cooked meals for pregnant and nursing women as well as young children this bill seeks to ensure that hot cooked meals are provided to pregnant and nursing women and to young childrenfinally, the principal act withdrew the guarantee of food security in situations in which it may be required the most, that is, in cases of natural calamities such as floods, fire, cyclone, earthquake or drought this bill seeks to make it incumbent upon the government to ensure food security to all persons at all times including and especially in cases of natural calamitieshence this billnovember 27, 2017 annexure extracts from the national food security act, 2013 (20 of 2013)definitions2 (5) "foodgrains" means rice, wheat or coarse grains or any combination thereof conforming to such quality norms as may be determined, by order, by the central government from time to time2 (6) "food security" means the supply of the entitled quantity of foodgrains and meal specified under chapter ii 2 (9) "meal" means hot cooked or pre-cooked and heated before its service meal or take home ration, as may be prescribed by the central government 3 (1) every person belonging to priority households, identified under sub-section (1)of section 10, shall be entitled to receive five kilograms of foodgrains per person per month at subsidised prices specified in schedule i from the state government under the targeted public distribution system:provided that the households covered under antyodaya anna yojana shall, to such extent as may be specified by the central government for each state in the said scheme, be entitled to thirty-five kilograms of foodgrains per household per month at the prices specified in schedule i:right to receive food grains and subsidised prices by persons belonging to eligible households under targeted public distribution systemprovided further that if annual allocation of foodgrains to any state under the act is less than the average annual offtake of foodgrains for last three years under normal targeted public distribution system, the same shall be protected at prices as may be determined by the central government and the state shall be allocated foodgrains as specified in schedule ivexplanation— for the purpose of this section, the "antyodaya anna yojana" means, the scheme by the said name launched by the central government on the 25th day of december, 2000; and as modified from time to time 8 in case of non-supply of the entitled quantities of foodgrains or meals to entitled persons under chapter ii, such persons shall be entitled to receive such food security allowance from the concerned state government to be paid to each person, within such time and manner as may be prescribed by the central governmentright to receive food security allowance in certain cases12 (1) the central and state governments shall endeavour to progressively undertake necessary reforms in the targeted public distribution system in consonance with the role envisaged for them in this actreforms in targeted public distrubution system(2) the reforms shall, inter alia, include—(a) doorstep delivery of foodgrains to the targeted public distribution system outlets;(b) application of information and communication technology tools including end-to-end computerisation in order to ensure transparent recording of transactions at all levels, and to prevent diversion;(c) leveraging "aadhaar" for unique identification, with biometric information of entitled beneficiaries for proper targeting of benefits under this act;(d) full transparency of records; (e) preference to public institutions or public bodies such as panchayats, selfhelp groups, co-operatives, in licensing of fair price shops and management of fair price shops by women or their collectives;(f) diversification of commodities distributed under the public distribution system over a period of time;(g) support to local public distribution models and grains banks; and (h) introducing schemes, such as, cash transfer, food coupons, or other schemes, to the targeted beneficiaries in order to ensure their foodgrain entitlements specified in chapter ii, in such area and manner as may be prescribed by the central governmentforce majeure44 the central government, or as the case may be, the state government, shall be liable for a claim by any person entitled under this act, except in the case of war, flood, drought, fire, cyclone or earthquake affecting the regular supply of foodgrains or meals to such person under this act:provided that the central government may, in consultation with the planning commission, declare whether or not any such situation affecting the regular supply of foodgrains or meals to such person has arisen or exists lok sabha———— a billto amend the national food security act of 2013————(shri jagdambika pal, mp)mgipmrnd—2264ls(s3)—17-12-2018 | Parliament_bills | 8f6fc796-19fb-543a-b76d-5f46be257058 |
to the copra cess bill, 1978 j-iq bglas in trqduced :in !ok sal>!la j 1 page 4, line 14,-!su: "sub- section (2)" ~ "suba8ction (1) ii 2 page 7, line ,,-for "amounts ares! ~ "a,m()unti,s'l ne\f delhi; tul:v 19 1978 asad'fia 28, 1900 ( sika) bill no 111 of 1978 - the copra cess bill, 1978 a billto provide for the impobition of cess on copra for the development of; the coconut industry and for matters connected theretc?ith be it enacted by parliament in the twenty-ninth year of the republic of india as follows: - 1 (1) this act may be called the copra cess act, 1978 (2) it extends to the whole of india (3) it shall come into force on such date as the central government 5 may, by notification in the official gazette, appoint short title, extent and commence ment 2 (1) in this act, unless the context otherwise requires,-de1lnl tion • (a) "board" means the coconut development board established under section 4 of the coconut development board act, 1978; 10 (b) "collector" means the officer appointed by the central gov· ernment to perform in any specified area the duties of a collector under the provisions of this act and the rules made thereunder, and includes any officer subordinate to that officer whom he may, by order in writing, authorise to perform his duties under tnose provisions; 15 (c) "copra" means the dry kernel of coconut and includes edible copra and desiccated coconut; (d) "managing agent" has the meaning assigned to it in the companies act, 1956; (e) "mill" means any premises in which or in any part of which, copra is crushed, or is ordinarily crushed, with the aid of power for the extraction of oil or is otherwise processed with the aid of power s expzanation-"power" means electrical energy or any other form of energy, which is mechanically transmittea and is not generated by human or animal agency; (f) "occupier", in relation to any mill, means the person who has the ultimate control over the affairs of the mill or the owner of the 10 mill in case he is not the occupier or where the said affairs are entrusted to a managing agent, such agent shall be deemed to be the occupier of the mill; (g) "oil" means oil extracted from copra; (h) "prescribed" means prescribed by rules made under this act is (2) all other words and expressions used in this act and not defined, but defined in the coconut development boai'j act, 1978, shall have the meanings respectively assigned to them in that act imposition of cess 3 (1) there shall be levied and collected as a cess, for the purposes of this act, on copra consumed in any mill in india with a view to pro- 20 ducing or manufacturing any goods therefrom, a duty of excise at such rate, not exceeding five rupees per quintal of copra, as the central gov-~rntn~t may, by notification in the official gazette, specify: provided that until such rate is specified by the central government, the duty of excise shthl be levied and cullected st'the il'ate 01 sixty paise 2s per quintal of copra applica_ tion of proceeds of cesa (2) the duty of excise leviable under sub-section (1) shall be payable by the occupier of the mill in which the copra is consumed 4:fte--pl'eeeelis'ofihe"dtity of exehe \levied liddeoueded ujlder'this act shall ibnt lite tredtted to' the 'conimlidatedpudd of 'india, ,add the 30 catal·government may, if parliament, by 1tpprqpl'iation made bylaw in this behalf, so provides, pay to the board, from time to, _e,famo"t of such proceeds, after deducting the expenses on collection and the amount, if any, it'elmtied:'uilcier •• dion i, , hiuiiii;1of1molley dt lday tllink fit for being utilised for the purposes of the coconut development 3s board act, 1978 5 the occupier of every mill shall,-occapier to supply cer-(a) if the mill was established before the commencement of this act, within fourteen days from such commencement, and -(b) 'if the millis established after the 'commencement of this 40 ~~t, within i:fourt~fm (days ,from such estatiliihment, tain~llrtl culars'to collec_ tor ftltnisb 'to :tke' colh!ctor 8<-sta,tement eontaimug the following particulars, nmnely:-'(i) the natne and situation of the 'mill; (ii) the name and address of the occupter; 45 (iii) the address to which the communications il'elating to 'the mlll may be sent; anti (iv) the total capacity of the mill 8 (1) ewery occupier of a mill shall furnish to the collector ew;~ ml)nth a' return, statina the total amount 9f copra consumed bl the min during the preceding month delivery ot monthly returns (2) the return referred to in sub-section (1) shall be furnished be-5 fore the seventh day of eaah month together with such other information as may be prescribed (3) every such return shall be made in such form and shall be verified in such mander as may be prescribed 7 (1) on receiving any return made under section 6, the coyectoc collection ot cell 10 shall assess the duty of excise in respect of the period to which the return relates, and if the amount has not already been paid, shall caure a notice to be served upon the occupier of the mill requidng him to make payment of the 8rwuftt assessed within ten days of the service- of the notice is (2) if the occupier of any mill fails to furnish in due time the return referred to in section 6 or furnishes a return which the collector has reason to believe is incorrect or defective, the collector shan assess the amount payable by him in such manner, if any, as may be prescribed, ard the provisions of sub-section (1) shall thereupon apply as if such 20 assessment had been made on the basis of a return 'furnished by the occupier: -provided that, in the case of a return which he has reason to belliieve is incorrect or defective, the collector shall not assess the duty of excise at an amount bigher than that at which it is aese9saldle on the basis of 25 the retuf'n without giving to the occupier a reasol'lable opportunity of proving the correctness or completeness of the return (3) a notice under sub-section (1) may1)e served on the oecl\pier of a mill either by registered post or by delivering or tendering it to the oecupier or his agenr1l at lihe mill finality of assessment 3ci 8 (1) any occup'er of a mill who is aggrieved by an assessment made udder section 7 may, wi-thin three months of service of tde nqtice referred to in sub-section ,1) of that secti{)n, appeal to such authot'ity as the central government may, by notification in the official gazette, appoint in this behalf, for the cancellation or modifi~ation of the assessmebrt anti, 35 on such appeal, the said authority may cancel or modify the u,seaament and order the refund to such occupier of the whole or part, as the case may be, of the amount paid, thereunder: provided that the authority so appointed shall not be inferior in rank to the collector by whom the assessme,nt was made 4'0 (2) the appellate authority may, if it is satisfied that· the appellant was prevented by sufficient cause from presenting the appeal within the -, aforesaid period of three months, allow it t{) be presented within a fup tiler period of one month (3) where the appellate authority is 01 gpinigft th&~ ey duty of exeise 4s has been shortlevied, no order enhancing the duty ot excise shall be made unless the appellant has been given notice to show cause, within one month from the date of service thereof, against the proposed order (4) the central government may, on the application of any person aggrieved by any order made under sub-section (1) or sub-section (3), cancel or modify such order, if such application is made within six s months from the date of the order made under sub-section (1) or subsection (3), as the case may be (5) the central government may, if it is satisfied that the applicant was prevented by sufficient cause from presenting the application within the aforesaid period of six months, allow it to be presented within a 10 further period of one month (6) the decision of the centtal government under sub-section (4) and subject to the decision of the central government, the decision oi the appellate authority under sub-section (2), shall be final | refund | of ||-----------|-------|| cess | on || oil | || ex- | || ported | || from | || india | |9 where any cess on copra is levied and collected under this act and is the oil extracted from the whole or any part of such copra is exported from india, then, the central government shall, subject to such conditions as may be prescribed, refund so much amount of eess as is equal to the cess collected in respect of the copra from which the oil 80 exported was extracted, to the occupier of the mill from whom such cess was 20 cohected, whether or not such copra is produced in or imported into india 10 where any duty of excise demanded from any person or any other sum payable by any person under this act is not paid,-recovery of sum due to government (a) the collector may deduct the amount so payable from any 2s money owing to such person which may be under the control of the collector or any other officer; or (b) the collector may recover the amount so payable by detaining and selling any grods belonging to such person which all'e under the cont'rol of the collector or any other officer; or 30 (c) if the amount cannot be recovered from such person in the manner provided in clause (a) or clause (b), the collectoll' may prepare a certificate signed by him specifying the amount due from such person and send it to the collector of the district in which such penon owns any property or resides or carries on his business and the 3s said collector shall, on receipt of such certificate, pro(!eed h recover from the said person the amount specified therein as if it were an arrear of land revenue 11 (1) the collector or any otftcer empr'wered by a ileneral or special order of the central government in this behalf shall have free access 40 at all reasonable times during working hou~s to any mill or any part nf a mill power to inapeet mill, and tlke copiell of account (2) the collector or any other officer may, at any time durinll working hours, with or without notice to the occupier, examine the purchase, sale and stock records and accounts of any mill and take copies of or 45 extracts from all or any of the said records or accounts for the purpose of testing the accuracy of any return or of infc,·rming himself as to the pb4"ticul~rs regarding which information is required for the purposes of this act or any rules made thereunder: -provided that nothing in this section shall be deemed to authorise 5 the examination of any description or form'jlae of any trade process 12 (1) all such copies and extracts and all information acquired by a collector or any other officer from any inspection of any mill or from any return submitted under this act shall be treated as confidential informa_ tion ac_ quired to be confidential, (2) if the collector or any such officer discloses to any person, other 10 than a superior officer, any such information as aforesaid, without the previous sanction of the central g)vernment or such other authority as may be prescribed, he shall be punishable with imprisonment for a term which may extend to six months and shall also be liable to ftne: provided that nothing in this section shall apply to the disclosure of i s any such information for the purpose of a pre s~cution in respect of the making of a false return under this act i of 1944 13 the provisions of the central excises and salt act 1944, and the rules made thereunder including those relating to refunds and exemptions from duty, shall, so far as may be, apply in relation to the levy and 20 collection of duty of excise on copra under this act, as they apply in relation to the levy and collection of duty payable to the central government under that act provisions of central excises and salt act 1944, etc to apply 14, (1) whoever-offences (a) evades the payment of any duty of excise payable under 2s this act, or (b) fails to furnish any return or information which it is his duty to furnish as provided by or under this act, or furnishes a return or information which is false in material particulars or which he does not believe to· be true, or 30 (c) obstructs the collector or any other officer in the performance of his duties under this act or any rules made thereunder, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to two thousand rupees, or with both 35· (2) any court trying an offence under this act may direct that the copra in re6pect of which it is satisfied that an offence punisbrble under this act has been committed, shall be forfeited to government and may also direct that all packages or coverings in which the copra is contained and every an'mal, vehicle, vessel or other conveyance used in 40 c8r'l'yingsuch copra shall be forfeited to government 15 (1) where an offence under this act has been committed by a offences by company, every person who, at the time the offence was committed, wiis comin charge of and was resp:>nsible to, the company for the conduct of the panies business of the company as well as the company, shall be deemed to be guilty 01 the offence and shall be liable to be proceeded against and 45 punished accordingly: pr>y1deci- that nothing colltaimeci in this bud-seetion shall rendelta, lnor pe!'8od liable to any punishment, if he p!'(njes that the ofhnee was committed without his knowledge or that he- had, exercised all due diligence to prevent the commission of such offence (2)' ~twithstanding anything contained in sub-section (1), where 5 any offence under this act has been committed by a company and it is proved that the offence has been committed with the consent or connt\'&n"ce 01, or is attributable to any neglect on the part of, any director mstmger, secretary or other offtcer of the company, such director, lmfteaetr seel'etal'y 01' other oftieer shail al80 be deemed'to be gu4tty of 10 tntt o_me and shad be liable to be proceeciecl against atid p\mimed acctgrciufll~· explmati6n-for the ptlrp08es (}f this seetion,-(ii) "'company" means any body corporate and includes a firm 01' ~tber association of individuals; and 15 (b) "director", in relation to a firm, means a partner in the ftnn li~ 16 no prosecution for any offence punishable under tllis act ~kall of prole-< lle instituted against any person except by or with the consent of, the cution collector 20 cofftpoei'-tion'61 oftencu-· 17 any offence punishable under this act may, either befor~ or after the institution of the prosecution, be compounded by the col:ector or any other officer authorised by him in this behalf on paym£ont to ~ cemrat government, for the purposes of this act, of such sum as the collector or such officer, as the case may be, thinks fit 25 ie no snit, prosec:aticm, or legal proceeding 'shall lie agam the cemtrld gvyernment or any person authorised by the cedtrat government for anything which is in good faith dbne ot intended to be done under this act or any rule or order made thereunder 1 • (1) the central government may, by notification in the official 30 ga::tte, make rules to carry out the provisions of this act protection of action taken in good faith power to make rules (j~ in parttcular, and without prejudice to the generality of the fttnu'''' power, 8uch rules may provide for an or any of the follnwiftg iiimteh, namely:-(a) informat!()!\ to beo furftfshed by an occupier of' a mm in thl"' 3s 1ilil~ return under lub-sec1ion (2) of section 6; (b) the form of the monthly return which every ~cupierof a mitt shall submit to the collector and the manner in which such return shall be verified under sub-section (3) of section 6; -{c) the lftalljler in whioh aesessment of dvty f)f exoise'shan be made where no 1"etum bas been fumished or ·the -retum wldh has been ·ful'nighedis believed ,by :thecollectorto ·be inoorweet « defective under sltbosection (2-) ·af sectien 7; s 1(d) the conditions subject ,to which tberefund of amounts ax:e made under section 9; ,,~) tae alhbority wwlout the pre~iousl8llction of ,wbich jil-!formation may not be disclosed under awhection (2) of aecuonu; :(f) any other matter which is -required to be, or may "be, 10 prescribed ~) e"ery -rule ~macie by the central government under ~ ,act ·shan be laid, as 110q1l 88 may be after itis made, befoj!e "eaoh ~use df cpblffiament,wlule it is measion for a total period of thirty clay which may be aomp'tiled in one leas ion or in two :or more iilccessive-i~, is and if, before the expiry of the session immediatelyfollowmg tae session or the successive sessions aforesaid, both houses agree in making any modification in the rule or both houses agree that the jrwe ' sht-uld not be made, the rule shall thereafter have effect only in such modified fqlll1;or'de t«lf :no effect, as the case may be; so, howe\ler, -that'any 20 such modification or annulment shall be without prejudice to the validity of anything previously done unaer that rule 20 in the produce cess act, 1966,-amendmentof (a) in sub-clause (ii) of clause (g) of section 2,-act 15 of 1966 (i) the words "copra or", in both the places where they occur, shall be omitted; (ii) the words "as the case may be," shall be omitted: (b) in section 6, the words "or copra", in both the plaees where they occur, shall be omitted; (c)-in the second schedule, selial number 2 and the ·utries relating thereto in 'columns 2, 3 and 4sbau,be omitted statement of objects and reasonsthe bill is complementary to the coconut development bpard bill, 1978 the coconut development board bill, 1978 seeks to provide for the development under the control of the union, of the coconut industry (excluding coir and coconut oil products industry) for the purpose, the bill seeks to provide for the establishment of a board to be called the coconut development board in order to ensure that the said board has the necessary resources to discharge its functions, the bill seeks to provide far the imposition of a cess on copra at present the cess on copra is being levied under the produce cess act, 1966 (15 of 1966) at the rate of 60 paise per quintal the bill empowers the central government to levy cess on copra at a maximum rate of rs 5 per quintal in view of this provision, copta is being excluded from the &!cond schedule to the produce cess act, 1966 by suitably amending the act the intention is to make over, after due appropriation by parliament, by law such amount 8s the central government may deem itt, to the coconut development board, so as to ens·ble it to discharge its functions effectively 2 the bill seeks to achieve the above objects new delhi; the 7th july, 1978 surjit singh barnala president's recommendation under article 117 of the constitijtion of india[copy of letter no 12(2) /77-ca i, dated the 13th july, 1978 from shri surjit singh barnala, minister of agricultu'l'e and irrigation to the secretary, lok sabha] the president, having been informed of the subject matter of the copra cess bill, 1978, recommends under clause (1) of article 117 of the constitution of india, the introduction of the bill in lok sabha and also recommends under clause (3) of article 117 of the constitution of india, the consideration of the bill by lok sabha with - view to eusutin that the cdodilut development board establtabed ,under tke cocomit :i>aweleipblent ~rd bill, 1m, has necessary retounttll to disc881'g itl funetidds, this bill seeks to pravide for levy of at on ogpta, a duty of excise, at aueh rate not scleeding as 5 per quidw 81 the central government may, by notification in the official goette, lpecify 2 tbe proc~ds of the aforementioned cess will be paid into the con-,diidted fund of iheile under clause 4 of the bl11 the central government may, if i'arliament, by appropriation mac!e by law, in this behalf, so provides, pay to the said boai'd from time to time, out of such proceie<1tt, af~~ deducting the expenses 'on collection, such ,lims of money ai that government may think fit 3 the ~l8ctioll of the aferementiol)ed c8si will involve boma expedditure from the consolidated fund bl india it is det pouible, at tho stage, tcj estimate tile iid9wlt ol 81mb 8kpenditul"e however, it is tentatively ettlmateg tllat the coat ei ,leetion of ceae would ~ about 2 per cent of the proceeds the total proceeds from this cess collection would be about rs 80 lakhs to rs 100 lakhs the expenses of collf!ction would be about rs 160 lakhs to rs 2 lakhs as only the balance of the proceeds, after deducting the cost of collection, may be utilised for making payments to the coconut de\relopment board, there will, in effect, be no net out-go from the consolidated fund of india the expenditure on the collection of the cess will be of a recurring nature 4 the bill does not involve any other expendit11l"e whether of 0 recurring or non-recurring nature memorandum regarding delegated legislationclause 19 of the bill seeks to empower the central government to make rules to carry out the provisions of the bill the matters in respect of which rules may be so made relate, inter alia, to the conditjons subject to which the refund of amounts are made under clause 9; information to be furnished by the occupier of a mill in the monthly ~turn under sub-clause (2) of clause 6; the form of the monthly return which every occupier of a mill may submit to the collector and the manner in which such return may be verified under sub-clause (3) of clause 6; the manner in which assessment of duty of excise shall be made where no return has been furnished or the return which has been furnished is believed by the collecbr to be incorrect or defective under sub-clause (2) of clause 7; and the authority without the previous sanction of which information may not be disclosed under sub-clause (2) of clause 12 as the matters in respect of which rules may be made pertain to matters of procedure or detail and· as the maximum limits of punishments which may be provided for by rules are laid down in the cjau88 itself, the delegation of legislative power is of a normal character extracts from the produce cess act, 1966 (15 of 1968) definitions 2 in this act, unless the context otherwise requires,- (g) "mill" means,- (it) in relation to copra or oil-seed and oil, any premises in which or in any part of which, copra or oil-seed, as the case may be, is crushed, or is ordinarily crushed, with the aid of power for the extraction of oil ezplanation-"power" means electrical energy or any other form of energy, which is mechanically transmitted and is dot generated by human or animal agency refutld oleesl on oils exported from india , g there shall be refunded from out of the proceeds of cess levied 'and collected under this act, on' such conditions as may be prescribed, all sums collected as cess on the quantity of oils exported from india, if such oils have been extracted from oil-seed or copra crushed in a mill in india, irrespective of whether the oil-seed or copra is produced :in, or imported into, india - the second schedule [see section 3 (2) ]'s :no name of the produce the maximum rate at which duty of excile may be collected actual rate at which duty of excite is to be collected until a dift'erent rate is ipecified by the central government any goods therefrom a , bill tq pr9~,ide fo)" ~e i~s,iijoa of c,", ,on ,copa for the i1evelo~toj th~:co~on11t ind1,1,~ and fo)" xnatr$ ,c@l)ected tjaerewitb (shri suriit singh barnala, min-later of agriculture and zrrig4ticm) | Parliament_bills | 0e01a70e-0baf-5890-8d93-3c457265c044 |
bill no 56 of 2020 the banking regulation (amendment) bill, 2020 a billfurther to amend the banking regulation act, 1949be it enacted by parliament in the seventy-first year of the republic of india as follows:—1 (1) this act may be called the banking regulation (amendment) act, 2020short title and commencement5(2) it shall come into force on such date as the central government may, by notificationin the official gazette, appoint:provided that different dates may be appointed for different provisions of this act and that different dates may be appointed for state co-operative banks, central co-operative banks and primary co-operative banks and any reference in any such provision to the commencement of this act shall be construed as a reference to the coming into force of that provision1010 of 19492 in the banking regulation act, 1949 (hereinafter referred to as the principal act), forsection 3, the following section shall be substituted, namely:—substitution of new section for section 361 of 1981'3 notwithstanding anything contained in the national bank for agriculture and rural development act, 1981, this act shall not apply to—act not to apply to certain cooperative societies(a) a primary agricultural credit society; or (b) a co-operative society whose primary object and principal business is providing of long term finance for agricultural development,5if such society does not use as part of its name, or in connection with its business, the words "bank", "banker" or "banking" and does not act as drawee of cheques'3 in section 56 of the principal act,—amendment of section 56(a) in the opening portion, for the words "the provisions of this act, as in force for the time being," the words "notwithstanding anything contained in any other law for the time being in force, the provisions of this act" shall be substituted;10(b) in clause (a), after sub-clause (ii), the following sub-clauses shall be inserted, namely:—'(iii) references to "memorandum of association" or "articles of association" shall be construed as references to bye-laws;1 of 195615(iv) references to the provisions of the companies act, 1956, except in part iii and part iiia, shall be construed as references to the corresponding provisions, if any, of the law under which a co-operative bank is registered;(v) references to "registrar" or "registrar of companies" shall be construed as references to "central registrar" or "registrar of co-operative societies", as the case may be, under the law under which a co-operative bank is registered;'; (c) clause (d) and sub-clauses (i) and (iii) of clause (e) shall be omitted;20(d) in clause (f),—(i) the words "or co-operative land mortgage banks"; and (ii) the words "or a co-operative land mortgage bank", shall be omitted;(e) clauses (fi), (fii) and (g) shall be omitted;25(f) for clause (i), the following clause shall be substituted, namely:—'(i) for section 12, the following section shall be substituted, namely:—"12 (1) a co-operative bank may, with the prior approval of the reserve bank, issue, by way of public issue or private placement,—issue and regulation of paid-up share capital and securities by co-operative banks30(i) equity shares or preference shares or special shares, on face value or at premium; and(ii) unsecured debentures or bonds or other like securities with initial or original maturity of not less than ten years,35to any member of such co-operative bank or any other person residing within its area of operation, subject to such conditions and ceiling, limit or restriction on its issue or subscription or transfer, as may be specified by the reserve bank in this behalf(2) save as otherwise provided in this act,—40(i) no person shall be entitled to demand payment towards surrender of shares issued to him by a co-operative bank; and(ii) a co-operative bank shall not withdraw or reduce its share capital, except to the extent and subject to such conditions as the reserve bank may specify in this behalf";';5(g) clauses (l), (n), (p), sub-clauses (ii) and (iv) of clause (q), clauses (r), (ria)and (sa), sub-clause (i) of clause (t), clauses (u), (v), (x), (y), (z) and (za) shall be omitted;(h) in clause (zaa),—(i) for the words "multi-state co-operative bank" wherever they occur, the words "co-operative bank" shall be substituted;10(ii) after the portion beginning with ''36aaa (i)where the reserve bank is satisfy'' and ending with ''shall not exceed five years'', the following proviso shall be inserted, namely:—15''provided that in case of a co-operative bank registered with the registrar of co-operative societies of a state, the reserve bank shall issue such order in consultation with the concerned state government seeking its comments, if any, within such period as the reserve bank may specify'';20(iii) for the portion beginning with "36aab where a multi-state cooperative bank" and ending with "(c) shall not be liable to be called in question in any manner", the following shall be substituted, namely:—"(10) the provisions of section 36aca shall not apply to a co-operative bank";(i) for clause (zb), the following clause shall be substituted, namely:—"(zb) part iic shall be omitted;";(j) sub-clause (i) of clause (zc) and clauses (zd) and (zf) shall be omitted;25(k) for clause (zg), the following clause shall be substituted, namely:—'(zg) in section 49b, references to "central government" shall be construed as references to "central registrar" or "registrar of co-operative societies", as the case may be, under the law under which a co-operative bank is registered;';(l) clause (zh) shall be omitted;30(m) for clause (zj), the following clause shall be substituted, namely:—'(zj) after section 53, the following section shall be inserted, namely:35power to exempt cooperative banks in certain cases40"53a notwithstanding anything contained in any other provision of this act, the reserve bank may, from time to time, on being satisfied that it is necessary so to do, declare by notification in the official gazette, that the provisions of item (iii) of clause (b) of sub-section (1) and sub-section (2) of section 10, clause (a) of sub-section (2) of section 10a, sub-section (1a) of section 10b and clause (b) of sub-section (1) of section 35b of this act shall not apply to a co-operative bank or class of co-operative banks, either generally or for such period as may be specified therein, subject to such conditions, limitations or restrictions as it may think fit to impose";' statement of objects and reasonsthe banking regulation act, 1949 was enacted to consolidate and amend the law relating to banking part v of the said act provides for the application of the banking regulation act, 1949 to co-operative banks, subject to certain modifications specified in section 56 thereof keeping in view the developments in the banking sector and regulation thereof overtime, it has become necessary to strengthen the provisions of the said act as applicable to co-operative banks2 it is proposed to bring the co-operative banks on par with the developments in the banking sector through better management and proper regulation of co-operative banks with a view to ensure that the affairs of the co-operative banks are conducted in a manner that protects the interests of the depositors it is further proposed to strengthen the co-operative banks by increasing professionalism, enabling access to capital, improving governance and ensuring sound banking through the reserve bank of india3 in view of the above, it is decided to amend the banking regulation act, 1949 by the banking regulation (amendment) bill, 2020, inter alia, to provide for the following:(i) to amend section 3, so as to make the provisions of the said act not applicable to—(a) a primary agricultural credit society; or (b) a co-operative society whose primary object and principal business is providing of long term finance for agricultural development, if such society does not use as part of its name, or in connection with its business, the words "bank", "banker" or "banking" and does not act as drawee of cheques;(ii) to substitute clause (i) of section 56, so as to provide for the issue and regulation of paid-up share capital and securities by co-operative banks;(iii) to amend clause (zaa) of section 56, so as to provide that in the case of a co-operative bank registered with the registrar of co-operative societies of a state, the reserve bank shall consult the concerned state government before issuing order for supersession of the board of directors under section 36aaa; (iv) to omit certain clauses of section 56 as the other provisions of the banking regulation act, 1949 would apply to co-operative banks;(v) to make other consequential changes in section 564 the bill seeks to achieve the above objectivesnew delhi;nirmala sitharamanthe 10th february, 2020 annexure extracts from the banking regulation act, 1949 (10 of 1949)3 nothing in this act shall apply to—(a) a primary agricultural credit society;act to apply to cooperative societies in certain cases(b) a co-operative land mortgage bank; and (c) any other co-operative society, except in the manner and to the extent specified in part v [10] m c part v application of the act to co-operative banks56 the provisions of this act, as in force for the time being, shall apply to, or in relation to, co-operative societies as they apply to, or in relation to, banking companies subject to the following modifications, namely:—| ||----------------|| act to apply || to co- || operative || societies || subject to || modifications |(d) for section 5a, the following sections shall be substituted, namely:—act to override byelaws, etc23 of 1965"5a (1) the provisions of this act shall have effect, notwithstanding anything to the contrary contained in the bye-laws of a co-operative society, or in any agreement executed by it, or in any resolution passed by it in general meeting, or by its board of directors or other body entrusted with the management of its affairs, whether the same be registered, executed or passed, as the case may be, before or after the commencement of the banking laws (application to co-operative societies) act, 1965(2) any provision contained in the bye-laws, agreement or resolution aforesaid shall, to the extent to which it is repugnant to the provisions of this act, become or be void, as the case may be"; (e) in section 6, in sub-section (1),—(i) in clause (b), the words ", but excluding the business of a managing agent or secretary and treasurer of a company" shall be omitted;| | | | | ||------|------|------|------|-----|(iii) in clause (m), after the word "company", the words "or co-operative society" shall be inserted; (f) for section 7, the following section shall be substituted, namely:—use of words "bank", "banker" or "banking""7 (1) no co-operative society other than a co-operative bank shall use as part of its name or in connection with its business any of the words "bank", "banker" or "banking", and no co-operative society shall carry on the business of banking in india unless it uses as part of its name at least one of such words(2) nothing in this section shall apply to—(a) a primary credit society, or(b) a co-operative society formed for the protection of the mutual interest of co-operative banks or co-operative land mortgage banks, or(c) any co-operative society, not being a primary credit society, formed by the employees of—(i) a banking company or the state bank of india or a corresponding new bank or a subsidiary bank of such banking company, state bank of india or a corresponding new bank, or(ii) a co-operative bank or a primary credit society or a co-operative land mortgage bank, insofar as the word "bank", "banker" or "banking" appears as part of the name of the employer bank, or as the case may be, of the bank, whose subsidiary the employer bank is";(fi) in section 8, for the proviso, the following proviso shall be substituted, namely:—"provided that this section shall not apply—1 of 1984(a) to any such business as aforesaid which was in the course of being transacted on the commencement of clause (iii) of section 42 of the banking laws (amendment) act, 1983, so, however, that the said business shall be completed before the expiry of one year from such commencement; or(b) to any business as is specified in pursuance of clause (o) of sub-section (1) of section 6;";(fii) in section 9, for the second proviso, the following provisos shall be substituted, namely:—1 of 1984"provided further that in the case of a primary credit society which becomes a primary co-operative bank after the commencement of clause (iii) of section 42 of the banking laws (amendment) act, 1983, the period of seven years shall commence from the day it so becomes a primary co-operative bank:provided also that the reserve bank may, in any particular case, extend the aforesaid period of seven years by such period as it may consider necessary where it is satisfied that such extension would be in the interests of the depositors of the co-operative bank"; (g) sections 10, 10a, 10b, 10bb, 10c and 10d shall be omitted; (i) sections 12, 12a, 13 and 15 to 17 shall be omitted; (l) for section 20 of the principal act, the following section shall be substituted, namely:—"20 (1) no co-operative bank shall—(a) make any loans or advances on the security of its own shares; or restriction on loans and advances(b) grant unsecured loans or advances—(i) to any of its directors; or (ii) to firms or private companies in which any of its directors is interested as partner or managing agent or guarantor or to individuals in cases where any of its directors is a guarantor; or(iii) to any company in which the chairman of the board of directors of the co-operative bank (where the appointment of a chairman is for a fixed term) is interested as its managing agent, or where there is no managing agent, as its chairman or managing director:provided that nothing in clause (b) shall apply to the grant of unsecured loans or advances—(a) made by a co-operative bank—(i) against bills for supplies or services made or rendered to government or bills of exchange arising out of bona fide commercial or trade transactions; or(ii) in respect whereof trust-receipts are furnished to the co-operative bank; (b) made by a primary co-operative bank to any of its directors or to any other person within such limits and on such terms and conditions as may be approved by the reserve bank in this behalf(2) every co-operative bank shall, before the close of the month succeeding that to which the return relates, submit to the reserve bank a return in the prescribed form and manner showing all unsecured loans and advances granted by it to companies in cases other than those in which the co-operative bank is prohibited under sub-section (1) to make unsecured loans and advances in which any of its directors is interested as director or managing agent or guarantor(3) if, on examination of any return submitted under sub-section (2), it appears to the reserve bank that any loans or advances referred to in that sub-section are being granted to the detriment of the interests of the depositors of the co-operative bank, the reserve bank may, by order in writing, prohibit the co-operative bank from granting any such further loans or advances or impose such restrictions on the grant thereof as it thinks fit, and may by like order direct the co-operative bank to secure the re-payment of such loans or advances within such time as may be specified in the order"; (n) in section 21, in sub-section (2), in clauses (c) and (d), for the words "any one company, firm, association of persons or individuals", the words "any one party" shall be substituted; (p) in section 23,—(i) for sub-section (1), the following sub-section shall be substituted, namely:— "(1) without obtaining the prior permission of the reserve bank, no co-operative bank shall open a new place of business or change otherwise than within the same city, town or village, the location of an existing place of business:provided that nothing in this sub-section shall apply to—(a) the opening for a period not exceeding one month of a temporary place of business within a city, town or village or the environs thereof within which the co-operative bank already has a place of business, for the purpose of affording banking facilities to the public on the occasion of an exhibition, a conference or a mela or any other like occasion;(b) the opening or changing the location of branches by a central co-operative bank within the area of its operation";(ii) after sub-section (4), the following sub-section shall be inserted, namely:—"(4a) any co-operative bank other than a primary co-operative bank requiring the permission of the reserve bank under this section shall forward its application to the reserve bank through the national bank which shall give its comments on the merits of the application and send it to the reserve bank:provided that the co-operative bank shall also send an advance copy of the application directly to the reserve bank";(q) in section 24,— [10] m c(ii) for sub-section (2a), the following sub-section shall be substituted, namely:—2 of 1934"(2a) a scheduled co-operative bank, in addition to the average daily balance which it is, or may be, required to maintain under section 42 of the reserve bank of india act, 1934 and every other co-operative bank, in addition to the cash reserve which it is required to maintain under section 18, shall maintain in india, assets, the value of which shall not be less than such percentage not exceeding forty per cent of the total of its demand and time liabilities in india as on last friday of the second preceding fortnight as the reserve bank may, by notification in the official gazette, specify from time to time and such assets shall be maintained in such form and manner, as may be specified in such notification"; [10] m c(iv) in sub-section (6), in clause (a), for the words "fourteen days", the words "thirty days" shall be substituted;"; [10] m c(r) section 25 shall be omitted; [10] m c(ria) in section 26a, for the words "banking companies", the words "co-operative bank" shall be substituted; [10] m c(sa) for section 30, the following section shall be substituted, namely:—audit"30 (1) without prejudice to anything contained in any other law for the time being in force, where the reserve bank is satisfied that it is necessary in the public interest or in the interest of the co-operative bank or its depositors so to do, it may at any time by general or special order direct that an additional audit of the co-operative bank accounts, for any such transactions or class of transactions or for such period or periods as may be specified in the order, shall be conducted and may by the same or a different order appoint a person duly qualified under any law for the time being in force to be an auditor of companies to conduct such audit, and the auditor shall comply with such directions and make a report of such audit to the reserve bank and forward a copy thereof to the co-operative bank(2) the expenses of, or incidental to, the additional audit specified in the order made by the reserve bank shall be borne by the co-operative bank1 of 1956(3) the auditor referred to in sub-section (1) shall have such powers, exercise such functions vested in and discharge the duties and be subject to the liabilities and penalties imposed on auditors of companies by section 227 of the companies act, 1956 and also that of the auditors, if any, appointed by the law establishing, constituting or forming the co-operative bank to the extent the provisions of the companies act, 1956 are not inconsistent with the provisions of such law(4) in addition to the matters referred to in the order under sub-section (1)the auditor shall state in his report—(a) whether or not the information and explanation required by him have been found to be satisfactory;(b) whether or not the transactions of the co-operative bank which came to his notice have been within the powers of the co-operative bank;(c) whether or not the returns received from branch offices of the co-operative bank have been found adequate for the purpose of his audit;(d) whether the profit and loss accounts, shows a true balance or profit or loss for the period covered by such account;(e) any other matter which he considers should be brought to the notice of the reserve bank and the shareholders of the co-operative bank";(t) in section 31,—(i) for the words "within three months" and "of three months", the words "within six months" and "of six months" shall, respectively, be substituted; (u) sections 32 to 34 shall be omitted; (v) in section 34a, sub-section (3) shall be omitted; (x) in section 35a, in sub-section (1), in clause (c), for the words "any banking company", the words "the banking of business any co-operative bank" shall be substituted;(y) section 35b shall be omitted;(z) in section 36, in sub-section (1),—(a) clause (b) shall be omitted;(b) for clause (d), the following clause shall be substituted, namely:—"(d) at any time if it is satisfied that for the re-organisation or expansion of co-operative credit on sound lines it is necessary so to do, by an order in writing and on such terms and conditions as may be specified therein,—(i) depute one or more of its officers to watch the proceedings at any meeting of the board of directors of the co-operative bank or of any other body constituted by it and require the co-operative bank to give an opportunity to the officer so deputed to be heard at such matters as the officer may consider necessary or proper for the reorganisation and expansion of co-operative credit on sound lines, and also require such officer to send a report of such proceedings to the reserve bank;(ii) appoint one or more of its officers to observe the manner in which the affairs of the co-operative bank or its offices or branches are being conducted and make a report thereon;";(za) in section 36a,—(i) for sub-section (1), the following sub-section shall be substituted, namely:—"(1) the provisions of section 11, section 18 and section 24 shall not apply to a co-operative bank which has been refused a licence under section 22 of whose licence has been cancelled under that section or which is or has been prohibited or precluded from accepting deposits by virtue of any order made under this act or of any alteration made in its bye-laws"; (ii) after sub-section (2), the following sub-section shall be inserted, namely:—23 of 1965"(3) subject to the provisions of sub-sections (1) and (2), a co-operative society carrying on business as a primary co-operative bank at the commencement of the banking laws (application to co-operative societies) act, 1965, or a co-operative society which becomes a primary co-operative bank after such commencement shall, notwithstanding that it does not at any time thereafter satisfy the requirements of the definition of primary co-operative bank in clause (ccv) of section 5, continue to be a primary co-operative bank within the meaning of this act, and may, with the approval of the reserve bank and subject to such terms and conditions as the reserve bank may specify in that behalf, continue to carry on the business of banking";(zaa) after section 36aa of the principal act, the following sections shall be inserted, namely:—36aaa (1) where the reserve bank is satisfied that in the public interest or for preventing the affairs of a multi-state co-operative bank being conducted in a manner detrimental to the interest of the depositors or of the multi-state co-operative bank or for securing the proper management of the multi-state co-operative bank, it is necessary so to do, the reserve bank may, for reasons to be recorded in writing, by order, supersede the board of directors of such multi- state co-operative bank for a period not exceeding five years as may be specified in the order, which may be extended from time to time, so, however, that total period shall not exceed five years(2) the reserve bank may, on supersession of the board of directors of the multi-state co-operative bank under sub-section (1) appoint an administrator for such period as it may determine(3) the reserve bank may issue such directions to the administrator as it may deem appropriate and the administrator shall be bound to follow such directions(4) upon making the order of supersession of the board of directors of a multi-state co-operative bank,—(a) the chairman, managing director and other directors as from the date of supersession of the board shall vacate their offices as such;39 of 2002(b) all the powers, functions and duties which may, by or under the provisions of the multi-state co-operative societies act, 2002 or this act or any other law for the time being in force, be exercised and discharged by or on behalf of the board of directors of such a multi-state co-operative bank or by a resolution passed in general meeting of such co-operative bank, shall, until the board of directors of such co-operative bank is reconstituted, be exercised and discharged by the administrator appointed by the reserve bank under sub-section (2):provided that the power exercised by the administrator shall be valid notwithstanding that such power is exercisable by a resolution passed in the general meeting of such multi-state co-operative bank(5) (a) the reserve bank may constitute a committee of three or more persons who have experience in law, finance, banking, administration or accountancy to assist the administrator in discharge of his duties(b) the committee shall meet at such times and places and observe such rules of procedure as may be specified by the reserve bank(6) the salary and allowances to the administrator and the members of the committee constituted by the reserve bank shall be such as may be specified by the reserve bank and be payable by the concerned multi-state co-operative bank(7) on and before expiration of period of supersession of the board of directors as specified in the order issued under sub-secion (1), the administrator of the multi-state co-operative bank shall call the general meeting of the society to elect new directors(8) notwithstanding anything contained in any other law or in any contract, or bye-laws of a multi-state co-operative bank, no person shall be entitled to claim any compensation for the loss or termination of his office(9) the administrator appointed under sub-section (2) shall vacate office immediately after the board of directors of the multi-state co-operative society has been constituted47 of 196136aab where a multi-state co-operative bank, being an eligibleco-operative bank, has been registered under section 13a of the deposit insurance and credit guarantee corporation act, 1961, as an insured bank, and subsequently—order of winding up of multi-state co-operative bank to be final in certain cases39 of 2002(a) in pursuance of a scheme prepared with the previous approvalof the reserve bank under section 18 of the multi-state co-operative societies act, 2002, an order sanctioning a scheme of compromise and arrangement or reorganisation or reconstruction has been made; or39 of 2002(b) on requisition by the reserve bank, an order for winding up ofthe multi-state co-operative bank has been made under section 87 of the multi-state co-operative societies act, 2002; or(c) an order for the supersession of the board and the appointmentof an administrator therefor has been made under section 36aaa,such order for sanctioning the scheme of compromise and arrangement or reorganisation or reconstruction under clause (a) or the winding up of themulti-state co-operative bank under clause (b) or an order for the supersession of the board and the appointment of an administrator under clause (c) shall not be liable to be called in question in any manner47 of 1961reimbursement to deposit insurance corporation by liquidator or transferee bank23 of 196536aac where a multi-state co-operative bank, being an insured bank within the meaning of the deposit insurance and credit guarantee corporation act, 1961 is wound up and the deposit insurance corporation has become liable to the depositors of the insured bank under sub-section (1) or sub-section (2) of section 16 of that act, the deposit insurance corporation shall be reimbursed by the liquidator or such other person in the circumstances, to the extent and in the manner provided in section 21 of that act (zb) part iia except sections 36aaa, 36aab and 36aac, part iic, part iii, except sub-sections (1), (2) and (3) of section 45, and part iiia except section 45wshall be omitted;(zc) in section 46,—(i) in sub-section (4), the word "or" occurring at the end of clause (i) and clause (ii) shall be omitted; (zd) in section 47, the words, brackets, figures and letters "sub-section (5) of section 36aa or" shall be omitted; (zf) in section 49a, for the proviso, the following proviso shall be substituted, namely:—"provided that nothing contained in this section shall apply to—(a) a primary credit society; (b) any other co-operative society accepting such deposits at the commencement of the banking laws (application to co-operative societies) act, 1965, for a period of one year from the date of such commencement; and(c) any savings bank scheme run by the government;";(zg) sections 49b and 49c shall be omitted;(zh) in section 50, the figures and letters "10, 12a, 16,", "35b," and "43a" shall be omitted; (zj) in section 52,—(i) in sub-section (2), the words, figures and letter "and the form in which the official liquidator may file lists of debtors to the court having jurisdiction under part iii or part iiia and the particulars which such lists may contain" shall be omitted;(ii) sub-section (4) shall be omitted;(zk) for section 55 and the first schedule, the following section shall be substituted, namely:—18 of 1891"55 (1) the bankers' books evidence act, 1891 shall apply in relation to a co-operative bank as it applies in relation to a bank as defined in section 2 of that actact 18 of 1891 and act 46 of 1949 to apply in relation to co-operative banks46 of 1949(2) the banking companies (legal practitioners, clients' accounts) act,1949, shall apply in relation to a co-operative bank as it applies in relation to a banking company as defined in section 2 of that act" ———— a billfurther to amend the banking regulation act, 1949________(smt nirmala sitharaman, minister of finance)mgipmrnd—5507ls—28-02-2020 | Parliament_bills | ad55e759-c521-57c9-9821-2b3c0342fce3 |
bib no 63 of 1185 , the national security (amendment) bill, 1985 a billfurther to amend the national security act, 1980, in its application to the state of punjab and the union territcnw of chtmdigarh bait enacted by parliament in the thirty-sixth year of the republic f india as follows:-1 this act may be called the national security (amendment) act, ~rt 1985 i title 6s of 1'80 amendmedt 01 sectiaa 14a 5 z in the national security act, 1980, as applicable to the state of plmjab and the union territory of chandigarh, in sub-sectiodj (1) of 'section 14a, for {he figures, letters and words 113rd' day of april 1"', the figures, letters and words "3rd day of april, 1986" shall be substltuted statement of objects and reasonsthe activities of the extremist and terrorist elements in the "disturbed areas" of punjab and chandlgarh continue to be a matter of seriouil concern to enable the administration to deal e1fectively with such elements in these "disturbed areas", the national security act, 1980 (65 of 1980), in its application to the state of punjab and the union territory of chandigarh was amended in 1984 by the national security (amendment) act, 1984 2 section 14a, as inserted by the said amendment act, speeifies the circumstances under which and the classes of cases in which a person may be detained, for a period longer than three months but not exceeding six months from the date' of his detention, without obtaining the opinion of an advisory board the provisions of the section apply at present only in the case of persons detained before the 3rd day of april 1985, s~nce the circumstances in which the section was inserte4 in 'the ,act, by 'and large, continue to exist, it is considered necessary to amend the section so as to bring within its purview persons who may be detained on or after the 3rd day of april, 1985 but before the 3rd day of april, 1986 3 the bill seeks to achieve the above objective nf:w deim; s b chavan the 19th march, 1985 - (65 of 1980) - - - - - 14a (l) notyiitiistanding anything contained in the foregoing provisions of this act, any person in'respect of whom an order of detention has been made under this act at any time before the 3rd day of april, 1985 may be detained witho1\t obtaining the opiniol}' of the advisory board for a period longer than three months, but not exceeding six' months, from the date of 'his detentioll where such person had been detained with a view to preventing him trom acting, in any disturbed area, in 'any manner prejudicial to-(a) the defence of india; ,or (b) the security of india; ur (c) the security of the 'state; or cin:umstadcos in which persons may be detained forperlods longer than three months without obtaining tile opinion of (d) the maintenance of public order; or advisory essential to the boards (e) the maintenance of supplies and 'jervices community ezp14nation i-the provisions of the ezplanation to sub-section (2) of section 3 shall apply for the p~oses of this sub-section'ps they apply for the purposes of that sub-section ' ' 32 of 1983 33 of 1983 explanation 2-in this 8ub-section, "disturbed area" means any area which is for the time being declared by notification un'der section 3 01 the punjab disturbed areas act, 1983, or under section 3 of the chandi--garh disturbed areas act, 1983, to be a disturbed area - - - - - a biu further to amend the national security act, 1980, in its application to {he state of punjab and the union teltitory of chandigath (ljhrl s b chiawm, minister of home adiiir&)' | Parliament_bills | f75106d2-45da-5e55-bd66-7bf8b50b8df9 |
bill no 55 of 2020 the medical termination of pregnancy (amendment) bill, 2020 a billfurther to amend the medical termination of pregnancy act, 1971be it enacted by parliament in the seventy-first year of the republic of india as follows:—short title and commencement1 (1) this act may be called the medical termination of pregnancy (amendment)act, 20205(2) it shall come into force on such date as the central government may, by notificationin the official gazette, appointamendment of section 234 of 19712 in the medical termination of pregnancy act, 1971 (hereinafter referred to as the principal act), in section 2,—(i) after clause (a), the following clause shall be inserted, namely:—10'(aa) "medical board" means the medical board constituted undersub-section (2c) of section 3 of the act;';(ii) after clause (d), the following clause shall be inserted, namely:—'(e) "termination of pregnancy" means a procedure to terminate a pregnancy by using medical or surgical methods'3 in section 3 of the principal act, for sub-section (2), the following sub-sections shall be substituted, namely:—amendment of section 35"(2) subject to the provisions of sub-section (4), a pregnancy may be terminated by a registered medical practitioner,—(a) where the length of the pregnancy does not exceed twenty weeks, if such medical practitioner is, or10(b) where the length of the pregnancy exceeds twenty weeks but does not exceed twenty-four weeks in case of such category of woman as may be prescribed by rules made under this act, if not less than two registered medical practitioners are, of the opinion, formed in good faith, that—15(i) the continuance of the pregnancy would involve a risk to the life of the pregnant woman or of grave injury to her physical or mental health; or(ii) there is a substantial risk that if the child were born, it would suffer from any serious physical or mental abnormality20explanation 1—for the purposes of clause (a), where any pregnancy occurs as a result of failure of any device or method used by any woman or her partner for the purpose of limiting the number of children or preventing pregnancy, the anguish caused by such pregnancy may be presumed to constitute a grave injury to the mental health of the pregnant woman25explanation 2—for the purposes of clauses (a) and (b), where any pregnancy is alleged by the pregnant woman to have been caused by rape, the anguish caused by the pregnancy shall be presumed to constitute a grave injury to the mental health of the pregnant woman30(2a) the norms for the registered medical practitioner whose opinion is required for termination of pregnancy at different gestational age shall be such as may be prescribed by rules made under this act(2b) the provisions of sub-section (2) relating to the length of the pregnancy shall not apply to the termination of pregnancy by the medical practitioner where such termination is necessitated by the diagnosis of any of the substantial foetal abnormalities diagnosed by a medical board35(2c) every state government or union territory, as the case may be, shall, by notification in the official gazette, constitute a board to be called a medical board for the purposes of this act to exercise such powers and functions as may be prescribed by rules made under this act(2d) the medical board shall consist of the following, namely:—40(a) a gynaecologist; (b) a paediatrician; (c) a radiologist or sonologist; and (d) such other number of members as may be notified in the official gazette by the state government or union territory, as the case may be"4 after section 5 of the principal act, the following section shall be inserted, namely:—insertion of new section 5a protection of privacy of a woman5"5a (1) no registered medical practitioner shall reveal the name and other particulars of a woman whose pregnancy has been terminated under this act except to a person authorised by any law for the time being in force(2) whoever contravenes the provisions of sub-section (1) shall be punishable with imprisonment which may extend to one year, or with fine, or with both"amendment of section 65 in section 6 of the principal act, in sub-section (2), after clause (a), the following clauses shall be inserted, namely:—10"(aa) the category of woman under clause (b) of sub-section (2) ofsection 3;(ab) the norms for the registered medical practitioner whose opinion is required for termination of pregnancy at different gestational age under sub-section (2a) of section 3;15(ac) the powers and functions of the medical board undersub-section (2c) of section 3" statement of objects and reasonsthe medical termination of pregnancy act, 1971 (34 of 1971) was enacted to provide for the termination of certain pregnancies by registered medical practitioners and for matters connected therewith or incidental thereto the said act recognised the importance of safe, affordable, accessible abortion services to women who need to terminate pregnancy under certain specified conditions2 with the passage of time and advancement of medical technology for safe abortion, there is a scope for increasing upper gestational limit for terminating pregnancies especially for vulnerable women and for pregnancies with substantial foetal anomalies detected late in pregnancy further, there is also a need for increasing access of women to legal and safe abortion service in order to reduce maternal mortality and morbidity caused by unsafe abortion and its complications considering the need and demand for increased gestational limit under certain specified conditions and to ensure safety and well-being of women, it is proposed to amend the said act besides this, several writ petitions have been filed before the supreme court and various high courts seeking permission for aborting pregnancies at gestational age beyond the present permissible limit on the grounds of foetal abnormalities or pregnancies due to sexual violence faced by women3 accordingly, the medical termination of pregnancy (amendment) bill, 2020, inter alia, provides for,—(a) requirement of opinion of one registered medical practitioner for termination of pregnancy up to twenty weeks of gestation;(b) requirement of opinion of two registered medical practitioners for termination of pregnancy of twenty to twenty-four weeks of gestation;(c) enhancing the upper gestation limit from twenty to twenty-four weeks for such category of woman as may be prescribed by rules in this behalf;(d) non applicability of the provisions relating to the length of pregnancy in cases where the termination of pregnancy is necessitated by the diagnosis of any of the substantial foetal abnormalities diagnosed by a medical board;(e) protection of privacy of a woman whose pregnancy has been terminated 4 the proposed bill is a step towards safety and well-being of women and will enlarge the ambit and access of women to safe and legal abortion without compromising on safety and quality of care the proposal will also ensure dignity, autonomy, confidentiality and justice for women who need to terminate pregnancy5 the bill seeks to achieve the above objectsnew delhi;dr harsh vardhanthe 14th february, 2020 annexure extract from the medical termination of pregnancy act, 1971 (34 of 1971) 3 (1) (2) subject to the provisions of sub-section (4), a pregnancy may be terminated by a registered medical practitioner,—when pregnancies may be terminated by registered medical practitioners(a) where the length of the pregnancy does not exceed twelve weeks, if such medical practitioner is, or(b) where the length of the pregnancy exceeds twelve weeks but does not exceed twenty weeks, if not less than two registered medical practitioners are, of opinion, formed in good faith, that—(i) the continuance of the pregnancy would involve a risk to the life of the pregnant woman or of grave injury to her physical or mental health; or(ii) there is a substantial risk that if the child were born, it would suffer from such physical or mental abnormalities as to be seriously handicappedexplanation i—where any pregnancy is alleged by the pregnant woman to have been caused by rape, the anguish caused by such pregnancy shall be presumed to constitute a grave injury to the mental health of the pregnant womanexplanation ii—where any pregnancy occurs as a result of failure of any device or method used by any married woman or her husband for the purpose of limiting the number of children, the anguish caused by such unwanted pregnancy may be presumed to constitute a grave injury to the mental health of the pregnant woman ———— a billfurther to amend the medical termination of pregnancy act, 1971————(dr harsh vardhan, minister of health and family welfare)mgipmrnd—5427ls(s3)—25-02-2020 | Parliament_bills | 8b57c17c-de2f-54ff-90d1-52a3dab6ea92 |
the constitution (tenth amendment) bill, 1956(as intboduobd in lox sa:bha) the constitution (tenth amendment) bill, 1956 (as introduced in lok sabha) a biijfurther to amend the constitution of india be it enacted by parliament in the seventh year of the repubuc of india as follows:-1 this act may be called the constitution (tenth amendment) short dtle act, 1956 10 2 in the seventh schedule to the constitution,-amendment of the seventh (a) in the union list, after entry 92, the following entry schedule shall be inserted, namely:-"92a taxes on the sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-state trade or commerce"; and (b) in the state list, for entry 54, the following entry shall be substituted, nam!=!ly:-"54 taxes on the sale or purchase of goods other taan newspapers, subject to the provisions of entry 92a of list i" is 3 in article 269 of th~onstitution,-~drtimeldt 0-- c (a) in clause (1), after sub-clause (f), the followinglub-clause a69 shall be inserted, namely:-"(g) taxes on the sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-state trade or commerce"; and 20 (b) after clause (2), the following clause shall be inserted, namely:-"(3) parliament may by law formulate principles for determining when a sale or purchase of goods takes place in the course of inter-state trade or commerce" s 4 in article 286 of the constitution,-amendment of article 386 (a) in clause (1), the explanation shall be omitted; and (b) for clauses (2) and (3), the following clauses shtll be substituted, namely:-"(2) perliament may by law formulate principles for 10 determining when a sale or purchase of goods takes place in any of the ways mentioned in clause (1) (3) any law of a state shall, in so far as it imposes, or authorises the i~position of, a' tax on the sale or purchase of goods declared by parliament by law to be of special is importance in inter-state trade or commerce, be subject to such restrictions and conditions in regard to the system of levy, rates and other incidents of the tax as parliament may by law specify" - 'statement of objects and reasonswhile "taxes on the sale or purchase of goods other than newspapers" is an entry in the state list, article 286 of the constitution subjects the states' power to impose such taxes to four restrictions, of which two are total and two are par~al under clause (1) of the article, a state is debarred from imposing such a tax when the sale or purchase takes place outside the state or in the course of import into, or export from, the country with regard to the first restriction, namely, the non-taxability of sales outside the state, an explanation is given in the clause that "a sale or purchase shall be deemed to have taken place in the state in which goods have actually been delivered as a direct result of such sale or purchas~ for the purpose cf consumption in that state" then, under clause (2), a state is debarred from imposing the tax on inter-state sales except in so far as parliament may otherwise provide lastly, under clause (3), parliament is authorised to declare the goods which are essential to the life of the cqmmunity, a!ld when such a declaration has been made, any law made by a state legislature imposing a tax on the sale or purchase of those goods has to receive the president's assent in order to be effective jvgh judicial authorities have found the interpretation of the article a difficult task and expressed divergent views as to th~ scope and effect, in particular, of the explanation in clause (1) and of clause (2) the majority view of the supreme court in the state of bombay v the united motots (india) ltd, (1953) scr 1069, was that sub-clause (a) and the explanation in clause (1) prohibited the taxation of a sale involving inter-state elements by all state" except the state in which the goods are delivered for the purpose of consumption therein, and furthermore, that clause (2) did not affect the power of that state to tax the inter-state sale even though parlia-ment had not made a law removing the ban imposed by that clause this resulted in dealers resident in one state being subjected to the sales tax jurisdiction and procedure of several other sti1tes with which they had dealings in the normal course of their business two-and-a-half years later, the second part of this decision was reversed by the supreme court in the bengal immunity company ltd v the state of bihar (1955) sca 1140 but here too the court was not unanimous in pursuance of clause (3) of the article, parliament passed" an act in 1952 declaring a number of goods like foodstuffs of various kinds, cloth, raw cotton, cattle feeds, iron and steel, coal, etc to be e~ntial to the life of the community since this declaration could not affect pre-existing state laws imposing sales tax on these ~oods, " the result was a wide disparity from state to states, not'only in the range of exempted goods, but also in the rates applicable to them the taxation enquiry commission, after examining the problem with great care and thoroughness, have made certain recommendations which may be summarised as follows in essence, sales tax must continue to be a sta~ source of revenue and its levy and administration must substantially pertain to the state govel'nments the sphere of power and responsibility of the state may, however, be said to end, and that of the union to begin, when the sales tax of one state impinges, administratively on the dealers, and fiscally on the consumers, of another stat~ broadly, therefore, inter-state sales should be the concern of the union, but the responsi'bilities pertaining to the union could be exercised through the state govemnlents, and in any case, the revenue should appropriately devolve on them intra-state sales, on the oth~r hand, should be left to the states, but with one important exception where, for instance, raw material produced in a state is important from the point of view of tb8 consumer or the industry of another state, certain restriction; have to be placed on the taxing pov{er of the state government as oth~ wise it can effect an increase in the cost of the manufactured article; whether lsuch manufacture ta~es place in the state which produces the raw material, or in another statel which imports the material from that state in either ca~e, to the extent that the finished 8bods are consumed in a state other than the one which taxes the raw material, the increase in cost on account of the tax is a matter of direct concern to the consumer of another state such cases of intra-state sales should appropriately be brought under the full control of the union these recommendations of the commission have been generally accepted by all the state governments the object of this bill is to give effect to the recommendations of the commission as regards the amendment of the constitutional provisions relating to sales tax - in clause 2, it is proposed to add a new entry 92a in the union' list placing taxes on inter-state sales and purchases within the exclusive legislative and executive power of the union, and to make entry 54 of the state list "subject to the provisions" of this new entry in clause 3, it is propose~ to add these taxes to the list given' in cl,lluse (1) of article 269, so that, although they will be levied and collected· in accordance with an act of parliament, they will net, form part of the consolidated fund of india, but will accrue to the states themselves in accordance with such principles of distribution as may be fol'mulated by parliament by law a further provision ij proposed in article 269 expressly empowering parliament to formulate by law principles for determining when a sale or purchase of goods takes pla{'e in the course of inter-state trade or commerce it is proposed in clause 4 to omit from caluse (1) of article 286 the explanation which has given risc to a great deal of legal controversy and practical difficulty in view of the centralisation of inter-state sales tax proposed in clause 2 of this bill, clause (2) of article 286 in its present form vtill cease to be appropriate in its place it is proposed to idsert a provision empowering parliament to fonllulate principles for determining when a sale or purchase of g'jocts takes place (a) outside a state, or (b) in the course of import of the goods - into'the territory of fmdia or (c) in the course of export of the goods out of thtj territory of india it is fui ther proposed to replace clause (3) of article 286 by a new clause on the lines recommended by the taxation enquiry commission under this revised clause parliament will have th~ power to cieolanby law the goods which are of special importance in inter-state trade or commerce and also to specify the restricuons and condi·tiona to which aziy state law (whether made before or after the parliamentary law) will be subject in reglu'd to the system of levy, ratep and {lther incidents of the tax on the·sale or purchase of those goods! manilal shah kew deuajthe 30th aj?ril 1956 - - - part xu - finance property contracts and suits •chapter i-finance - - - - • - - distribution of revenues between the union and the states - - - - tues levied 269 (1) the following duties and taxes shall be levied and collectand collected ed by the government of india but shall be assigned to the states itnion ~:t in the manner provided in clause (2), namely:-ili!il~~8 to (a) duties in respect of succession to property other than agricultural land; (b) estate duty in respect of property other than agricultural land; (c) terminal taxes on goods or passengers carried by railway, sea or air; - (d) taxes on railway fares and freights; (e) taxes other than stamp duties on transactions in stockexchanges and futures markets; (f) taxes on the sale or purchase of newspapers and on advertisements published therein (2) the net proceeds in any fim:ncial year of any such duty or tax, except in so far as those proceeds r~present proceeds attributable to states specified in part c of the first schedule shall not form part of the consolidated fund of india, but shall 'he assigned to the sta,tes within which that duty or tal' is leviable in that year, and shall be distributed among those states in accordance with such principles of distribution as may be formulated by parliament by law - - - - miscellaneous financial provisions - - - - - restrictions 286 (1) no law of a state shall impose, or authorise the imposlas to impo- tion of, a tax on the sale or purchase of goods where such sale or sition of tax purchase takes placeon the isle or purchase (a) outside the state; or of goods , - (b) in the course of the import of the goods into, or export of the goods out of, the territory of india_ explanation-for the purposes of sub-clause (a), a sale or purchase shall be deemed to have taken place in the state in which the goods have actually been delivered as a direct result of such sale or purchase for the purpose of consumption in that state notwithstanding the fact that under the general law relating to sale of goods the property in the goods has by reason of such sale! or purchase passed in another state (2) except in so far as parliament may by law otherwise provide, no law of a state shall impose, or authorise the imposition of, a tax on the sale or purchase of any goods where such sale or purchase takes place in the course of inter-state trade or commerce: provided that the president may by order direct that any tax on the sale or purchase of goods which was being lawfully levied by the government of any state immediately before the commencement of this constitution shall, notwithstanding that the imposition of such tax is contrary to the provisions of this clause, continue to be levied until the thirty-first day of march, 1951 (3) no law made by the legislature of a state imposing, or authorising the imposition of, a' tax on the sale or purchase of any such goods as have been declared by parliament by law to be essential for the life of the community shall have effect unless it has been reserved for the consideration of the president and has received his assent - - - - - list d-state list - 54 taxes on the sale or purchase of goods other than newspapers - - - - tax, and trni aslij the ' re as sit on or of a bill further to amend the constitution of india tax and by unf ani, the ':1 (shri m c shah, minister of r8fjf1iue and cifjil &potditure) , re al sit od or of | Parliament_bills | 3688c7e2-8b83-57ca-b88d-06e27160a816 |
bill no 68 of 2016 the appropriation (railways) bill, 2016 a billto authorise payment and appropriation of certain further sums from and out of the consolidated fund of india for the services of the financial year 2015-16 for the purposes of railways be it enacted by parliament in the sixty-seventh year of the republic of india as follows:—short title1 this act may be called the appropriation (railways) act, 20162 from and out of the consolidated fund of india there may be paid and appliedsums not exceeding those specified in column 3 of the schedule amounting in the aggregate to the sum of one thousand one hundred thirty crore, eighty-eight lakh, thirty thousand rupees towards defraying the several charges which will come in course of payment during the financial year 2015-16 in respect of the services relating to railways specified in column 2 of the scheduleissue of rs 1130,88,30,000 out of the consolidated fund of india for the financial year 2015-16appropriationthe schedule(see sections 2 and 3)| 1 | 2 | 3 ||-----------------------|-------------------------------------------------------|----------------|| sums not exceeding | | || no | | || of | | || vote | | || services and purposes | voted | charged || by parliament | on the | total || consolidated | | || fund | | || 3 | general superintendence and services on railways | || 4 | repairs and maintenance of permanent way and works | || 5 | repairs and maintenance of motive power | || 6 | repairs and maintenance of carriages and wagons | || 8 | operating expenses - rolling stock and equipment | || 11 | staff welfare and amenities | || 12 | miscellaneous working expenses | || 13 | provident fund, pension and other retirement benefits | || 16 | assets—acquisition, construction and replacement— | || other expenditure | | || capital | 1,000 | 9635,87,000 || railway safety fund | 1015,58,92,000 | 4,08,000 || t | | || o ta l | | || 1015,58,93,000 | 115,29,37,000 | 1130,88,30,000 || rs | rs | rs ||--------------------|---------------------|---------------| statement of objects and reasonsthis bill is introduced in pursuance of article 114(1) of the constitution of india, read with article 115 thereof, to provide for the appropriation out of the consolidated fund of india of the moneys required to meet the supplementary expenditure charged on the consolidated fund of india and the grants made by the lok sabha for expenditure of the central government on railways for the financial year 2015-16suresh prabhu ———— president's recommendation under article 117 of the constitution of india————[copy of letter no 2015-b-402/2 dated 2 march, 2016 from shri suresh prabhu, minister of railways to the secretary general, lok sabha]the president, having been informed of the subject matter of the proposed appropriation bill to authorize payment and appropriation of certain further sums from and out of the consolidated fund of india for the services of the financial year 2015-16 for the purposes of railways, recommends under clauses (1) and (3) of article 117 of the constitution of india, read with clause (2) of article 115 thereof, introduction in and consideration by lok sabha, of the appropriation bill———————— a billto authorise payment and appropriation of certain further sums from and out of the consolidated fund of india for the services of the financial year 2015-16 for the purposes of railways————(shri suresh prabhu, minister of railways)gmgipmrnd—4804ls(s3)—04032016 | Parliament_bills | 26bfbe42-73a5-572a-a8df-180790bd1782 |
bill no xxi of 2006 the compulsory registration of marriages bill, 2006 a billto provide for the compulsory registration of all marriages solemnized in the country soas to prevent child marriages, check bigamy or polygamy, help women to exercise their rights of maintenance from husband and custody of children, enable widowsto claim inheritance and to serve as deterrent to husband deserting theirwives and for matters connected therewith or incidental theretobe it enacted by parliament in the fifty-seventh year of the republic of india as follows:—1 (1) this act may be called the compulsory registration of marriages act, 2006(2) it extends to the whole of indiashort title, extend and commencement(3) it shall come into force with immediate effect5definitions2 in this act, unless the context otherwise requires,—(a) "appropriate government" means in the case of a state, the government of that state and in other cases the central government(b) "designated authority" means an authority or an officer designated for the purpose of registration of marriages under section 4(c) "prescribed" means prescribed by rules made under this act5compulsory registration of marriage3 (1) notwithstanding anything contained in any other law for the time being in forceor in any custom or usage to the contrary, all the marriages solemnized in the country after the commencement of this act shall be registered within sixty days of solemnization of marriage in such manner as may be prescribed(2) it shall be the responsibility of each husband to get his marriage registered with thedesignated authority10establishment of designateauthority4 (1) the appropriate government shall, by notification in the official gazettedesignate an authority or an officer for registration of marriages, where no such authorityor officer exists, in each district within its jurisdiction15(2) the designated authority shall maintain a register of marriage containing suchparticulars and details as may be prescribed and shall also keep the same in electronic form(3) the appropriate government shall prescribe the documents relating tosolemnization of marriage, which shall be furnished for the registration of the marriage(4) after the registration of the marriage under the provisions of this act, a marriagecertificate shall be issued to the couple giving such details as may be prescribed205 notwithstanding anything contained in any other law for the time being in force orany custom, the marriage performed after the commencement of this act shall be null and void if not registered within sixty days of solemnization of marriagemarriage without registration to be null and voidpenalty256 if a person fails to register his marriage within the prescribed period or gives falseinformation in registering his marriage, he shall be liable for fine which may extend to five thousand rupees:provided that such a person shall also not be entitled to any benefits under thevarious schemes of appropriate governments or their undertakings 7 the central government shall, after due appropriation made in this behalf, provide such sums of money as it may think fit for being utilised for the purposes of this actcentral government to provide money30power to remove difficulty8 if any difficulty arises in giving effect to the provisions of this act, the centralgovernment may, by order published in the official gazette, make such provisions, not inconsistent with the provisions of this act, as appear to it to be necessary or expedient for removing the difficulty:35provided that no such orders shall be made after the expiry of the period of three yearsfrom the date of commencement of this actoverriding effect of the act9 the provisions of this act shall have effect notwithstanding anything inconsistenttherewith contained in any other law for the time being in force, but save as aforesaid, the provisions of this act shall be in addition to and not in derogation of any other law for the time being applicable to marriages40power to make rules10 the central government may, by notification in the official gazette, make rules forcarrying out the purposes of this act statement of objects and reasonsin our country, marriage is treated as an institution our culture assigns great value to the solemnization of marriage between two individuals but, of late, there are numerous instances of abuse of the institution of marriage it has been seen that many times unscrupulous husbands altogether deny marriage leaving their wives in lurch, be it for seeking maintenance, custody of children or inheritance of property then, there are states where child marriages are rampant without any check every year, lakhs of marriages are performed in our country mostly in traditional way most of these marriages have no official record, as hardly a few of these marriages are registered recently, the supreme court, moved by the plight of women fighting for their right under wedlock, ruled that all marriages should be registered in order to prevent child marriages, check bigamy or polygamy, help women to exercise their rights of maintenance from husband and custody of children and enable widows to claim inheritance there is no such law at present to provide for compulsory registration of marriages in the country, though four states, namely, maharashtra, gujarat, karnataka and himachal pradesh have enacted laws for compulsory registration of marriage the proposal for a uniform law for the country has been pending for the last 15 yearstherefore, it is high time that a law on compulsory registration of marriage is enacted hence this billvanga geetha financial memorandumclause 4 of the bill provides that the appropriate government shall appoint designated authority or an officer for registration of marriages the expenditure in relation to union territories in this regard shall fall on the central government clause 7 of the bill provides that the central government shall provide required funds for the purposes of this bill the bill, therefore, if enacted, will involve expenditure from the consolidated fund of india it is estimated that a recurring expenditure of rupees twenty crore will be required for the purpose non-recurring expenditure to the tune of rupees one crore will also be required memorandum regarding delegated legislationclause 10 of the bill gives power to the central government to make rules for carrying out the purposes of this bill the rules will relate to the matters of detail onlythe delegation of legislative power is of normal character————— a billto provide for the compulsory registration of all marriages solemnized in the country so as to prevent child marriages, check bigamy or polygamy, help women to exercise their rights of maintenance from husband and custody of children, enable widows to claim inheritance and to serve as deterrent to husband deserting their wives and for matters connected therewith and incidental thereto————(shrimati vanga geetha, mp)mgipmrnd—6492rs(s1)—16-3-2006 | Parliament_bills | 8b753313-891a-50dd-a197-e63bc45093a4 |
the chartered accountants (amendment) bill, 1955 'as introduced in lok sabra) the chartered accountants (amendment) bill, 1955 (as introduced in lok sabra) a billfurther to amend the chartered accountants act, 1949 be it enacted by parliament in the sixth year of the republic of india as follows:-1 this act may be called the chartered accountants (amend- short title ment) act, 1955 5 10 is 2 in section 4 of the chartered accountants act, 1949, for clause ~~dt (v) of sub-section (1), the following clause shall be substituted, name- act ectlon 4, ly: -xxxviii of 1949· u(v) any person who has passed such other examination and completed such other training without india as is recognised by the central government or the council as being equivalent to the examination and training prescribed for members of the institute: provided that in the case of any person who is not permanently residing in india, the central government or the council, as the case may be, may impose such further conditions as ifj;jmjjl ft~ statement of objects and reasonsclause (v) of sub-section (n of section 4 of the chartered accountants act, 1949, empowers the council of the institute of chartered accountants of india to recognise examinations and training conducted outside india as equivalent to those prescribed for members of the institute for purposes of enrolment on its register since such recognition is generally to be granted only on a reciprocal basis, it is considered necessary, on grounds of public policy, that the central government should also have similar power for recognising foreign qualifications as equivalent to indian ones it is, therefore, proposed to amend the clause referred to so as to vest the central government also with power to recognise foreign qualifications for purposes of enrolment on the register of the institute c d deshmukh new delhi; the 8th july, 1955 annexureextract from the chartered accountants ac:r, 1949 (xxxviii of 1949) - - - - - ~ (1) any of the following persons shall be entitled to have his bntrj of name entered in the register, namely: -diiaci id the - - - - - (v) any person who has passed such other examination and completed such other training without india as is recognised by the council as equivalent to the examination and training prescribed for members of the institute: provided that in the case of any person who is not permanently residing in india, the council may prescribe such further conditions as it may think fit; - - - - - a billfurther to amend the chartered accountants act, 1949 (shri c d deshmukh, minister of finance) | Parliament_bills | 80879495-5f42-5277-9998-f720b9f486b5 |
bill no xi of 2009 the companies (amendment) bill, 2009 a bill further to amend the companies act, 1956be it enacted by parliament in the sixtieth year of the republic of india as follows:— 1 (1) this act may be called the companies (amendment) act, 2009short title and commencement(2) it shall come into force on such date as the central government may, by notification in the official gazette, appoint5amendment of section 22 in section 2 of the companies act, 1956 thereinafter referred to as the principal act,after clause (19aa) the following clause shall be inserted, namely,—19aaa "independent director" means an independent director as defined in section 255a 3 after section 255 of the principal act, the following section shall be inserted, namely,—10insertion of new section 255a255a "independent director", in relation to a company, means a non-executive director of the company, other than a nominee director,—(a) who, in the opinion of the board, is a person of integrity and possesses relevant expertise and experience;(b) who, neither himself nor any of his relatives—5(i) has or had any pecuniary relationship or transaction with thecompany, its holding, subsidiary or associate company, or its promoters, or directors amounting to ten per cent or more of its gross turnover or total income during the two immediately preceding financial years or during the current financial year;10(ii) holds or has held any senior management position, position of akey managerial personnel or is or had been employee of the company in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed;15(iii) is or has been an employee or a partner, in any of the threefinancial years immediately preceding the financial year in which he is proposed to be appointed, of—(a) a firm of auditors or company secretaries in practice orcost auditors of the company or its holding, subsidiary or associate company,or20(b) any legal or a consulting firm that has or had anytransaction with the company, its holding, subsidiary or associate company amounting to ten per cent or more of the gross turnover of such firm;25(iv) holds together with his relatives two per cent or more of the totalvoting power of the company; or30(v) is a chief executive or director, by whatever name called, of anynon-profit organization that receives twenty-five per cent or more of its income from the company, any of its promoters, directors or its holding, subsidiary or associate company or that holds two per cent or more of the total voting power of the company; or (c) who possesses such other qualifications as may be prescribedexplanation—for the purposes of this section, "nominee director" means a director nominated by any institution in pursuance of the provisions of any law for the time being in force, or of any agreement or appointed by any government, to represent its shareholding354 after section 312 of the principal act, the following section shall be inserted namely,—insertion of new section 312a40protection to independent directors from criminal liability312a (i) notwithstanding anything to the country contained in this act or in any other law for the time being in force, any independent director on the board of directors of a public limited company shall not be liable or punishable for any act or omission by the company or any officer of the company which constitutes a breach or violation of any of the provisions of this act or any other law for the time being in force(ii) no arrest warrant shall be issued against an independent director without authorization by a judge of the rank of the district judge, who shall give to the independent director an opportunity of being heard before issuing such authorization45provided that the aforesaid provisions in this section shall not apply if such independent director was directly involved in or responsible for such breach or violation or such breach or violation had been committed with this knowledge or consent or he was guilty of gross or wilful negligence or fraud in relation thereto statement of objects and reasonsin view of recent developments in corporate sector the role of independent directors has assumed importanceit is also observed that non executive independent directors are often harassed for the wrong doings of the full time executive directors who are hands on with the day to day administration of the companies it has therefore become necessary to immediately make the provisions in the existing companies act to effectively protect the interest of the community of independent directors in the larger interest of healthy growth of corporate governance in the corporate sector in the absence of such provisions it will be very difficult for the corporate sector to attract eminent persons with professional knowledge and unquestionable integrity to be independent directors on their boardin view of this it has been considered necessary to amend the companies act, 1956 by inserting a definition of independent director at appropriate places in the companies act, 1956 and by inserting a new section providing protection to independent directors in respect of any act or omissions by the company or any of its officers which constitutes a breach or violation of any of the provisions of the companies act or any other lawhence this billy p trivedi rajya sabha————— a billfurther to amend the companies act, 1956—————(shri yp trivedi, mp)gmgipmrnd—3550rs(s5)—31072009 | Parliament_bills | 5b75e0ca-c908-5cec-ac68-50321e9b4190 |
bill no 209 of 2017 the constitution (amendment) bill, 2017 by shrimati meenakashi lekhi, mp a billfurther to amend the constitution of indiabe it enacted by parliament in the sixty-eighthyear of the republic of india as follows:—short title1 this act may be called the constitution (amendment) act, 2017 statement of objects and reasonsclause (2) of article 124 of the constitution of india allows every judge of the supreme court to hold office until he attains the age of sixty-five years the age of retirement of supreme court judges, which was fixed at sixty-two years in the beginning, was enhanced to sixty-five years by the constitution (fifteenth amendment) act, 1963 since then, no revision has taken place in this regardthe department-related parliamentary standing committee on personnel, public grievances, law and justice, in its 39th report dated the 29th april, 2010, has recommended to raise the retirement age of the judges of the high courts from sixty-two to sixty-five hence, in view of this it is expedient and necessary to enhance the age of supreme court judges from sixty-five years to seventy years further, most of the reasons adduced by the fifth central pay commission in support of its recommendation for increasing the age of retirement of the central government employees, such as global practices, increase in life expectancy, improved health standards, need for utilization of experience and wisdom of senior employees, etc, would also apply to the judges besides this, after their retirement the judges are being appointed by government in various tribunals, appellate tribunals, etc which is antithesis and not in consonance as well as sprit of preamble to constitution of india the increase in age of retirement will altogether put a check on the re-employment of the judges of the supreme court after retirementindependence of judiciary is an essential attribute of rule of law, which is one of the basic features of the constitution judiciary must be free from all pressures including the pressures from executive as well as psychological pressure on the judges related to their future after retirement the judges are required to ensure the independence and impartiality of judiciary by keeping themselves free from any allurement of employment under the government after their retirementthe constitution specifically prohibits the chairman of union public service commission and its members, the chairman of state public service commission and its members for further employment either under the government of india or under the government of any state the constitution on the other hand nowhere restricts or prohibits retired chief justice and judges of the high courts to hold further employment either under the government of india or under any of the state governmentsarticle 148 (4) provides that the comptroller and auditor general shall not be eligible for further office either under the government of india or under the government of any state after he has ceased to hold his officethe chief justice and judges of the various high courts, the comptroller and auditor general of india, the chairman of union public service commission, the chairman of the state public service commission and the members of these commissions are constitutional functionaries and they should be kept free from all kinds of allurement of employment under the government after cessation of their office it is presumed that reappointment of judges would have effect of undermining the independence and fairness of judiciarythe constitution prohibits the comptroller and auditor general of india, the chairman, public service commission and its members from getting employment after cessation of their office, however, no such bar is there with regard to the chief justice and the judges of the supreme courtin view of the present state of vacancies of judges in the supreme court, it is extremely difficult to clear the heavy pendency of cases in the supreme court increasing the age of retirement by five more years would restrict occurrence of new vacancies on account of superannuation for the next five years during which time the existing backlog in vacancies could be cleared this would have a clear impact on reduction of pendency of cases in the supreme courtit is, therefore, proposed to increase the age of retirement of the judges of supreme court from sixty-five years to seventy yearsnew delhi;meenakashi lekhinovember 23, 2016 annexure extract from the constitution of india 124 (1) establishment and constitution of supreme court(2) every judge of the supreme court shall be appointed by the president by warrant under his hand and seal after consultation with such of the judges of the supreme court and of the high courts in the states as the president may deem necessary for the purpose and shall hold office until he attains the age of sixty-five years: lok sabha————a billfurther to amend the constitution of india————(shrimati meenakashi lekhi, mp)gmgipmrnd—4151ls(s3)—08122017 | Parliament_bills | af6b48be-0d47-5fbf-9a81-718e7dca8eb8 |
thbkerala appropriation (no5) bill,'i965 ''" a bill' to authoriae p4!1ment and appr0pri4tion of certain further aum8 from clnd out of the consoudclted fund of the state of keruk for the eroice of the financial year 196f)66 b it enacted by parliament in the sixteenth year of the republic of india 88 follows:-1 this act may be called the kerala appropriation (no5) act, short title 1965 i from and out of the consolidated fund of the state of kerala laue of there may be paid and applied 811jd& not exceeding those apecifted in !la column 3 of the sehedul~ amounting in the aggregate to the sum 888,400 of six lakhs, 8ixty-six thousand and four hundred"rupees towards de- ~ -:!, fraying the lleveral charges which will come in cou1"le of payment codioli-10 during the financial year 1965-88, in respect of the services speclfled dated in column 2 of the schedule li'und of the state of kera1a , tarthe ftnancial year 1181-88 approa the iwdi authorised to be paid and applied from add out of prtatiaa the ccmaol1ciated hdd of the state of kerala bt thli-act ihall be appropriated tor the aervlces and p\u'poiii8 exp ••• d -in -tbe-sche--dule in relation to the 1814 year this bill is introduced in purauanee of articles 2cm(i) and 206 of the coditituuon and the proclamation isauec:l under article 358 of the constitution in ~ 'of the state of kerala on the mth karch, 11, to provicie fer the appropriation out of the cououdated j'udd of the state of kerala of the moneys required to meet the 1upplementary expendinn! charged on the consolldated fund of the ste of kerala and the grants made by the lot sabha far expenditure of the govenun~t of iterala for the ftna~cial year 1968-88, ' i b r bhagat - 'j -," ~ " president's recommendation under article 207 or ~ , the constitution of inrita ' ' ,, [copy of letter no '5 (10) -bj65, dated the 12th november, 1985 fr~m shri bali ram bhagat, minister of planning to the secretary, lok sabha] ' , by virtue of the proclamation dated the 24th march, 1965, issued under' article 356 of the constitution, the president having been informed of the subject matter of the proposed bill to authorise pay--ment and appropriation of certain further sums from and out of the consolidated fund of the state of kerala for too services of the year, ending on the 31st day of march, 1966, recommends the introduction of the kerala appropriation (no5) bill, 1965, in the lok sabha and also recommends to the sabha the consideration ,of the bill under article 207 (1) jlnd (3) of the constitutipd read with article 205 thereof - a bill to authorise payment and appropriation of oertain further sums frcm and out of the consolidated fund of the state of kerala for the aervic:a jfthe financial year 1965-66 - , (shri bali ram bhattll, minisur 0/ plannini ) | Parliament_bills | 5d2fa0d2-6b33-5e67-b8be-222affcf1dc0 |
the union territory goods and services tax bill, 2017—————— arrangement of clauses——————clauses chapter i preliminary1 short title, extent and commencement 2 definitions chapter ii administration3 officers under this act 4 authorisation of officers 5 powers of officers 6 authorisation of officers of central tax as proper officer in certain circumstances chapter iii levy and collection of tax7 levy and collection 8 power to grant exemption from tax chapter iv payment of tax9 payment of tax10 transfer of input tax credit chapter v inspection, search, seizure and arrest11 officers required to assist proper officers chapter vi demands and recovery12 tax wrongfully collected and paid to central government or union territorygovernment13 recovery of tax(ii)clauses chapter vii advance ruling14 definitions 15 constitution of authority for advance ruling 16 constitution of appellate authority for advance ruling chapter viii transitional provisions17 migration of existing tax payers 18 transitional arrangements for input tax credit 19 transitional provisions relating to job work 20 miscellaneous transitional provisions chapter ix miscellaneous21 application of provisions of central goods and services tax act 22 power to make rules 23 general power to make regulations 24 laying of rules, regulations and notifications 25 power to issue instructions or directions 26 removal of difficulties bill no 59 of 2017 the union territory goods and services tax bill, 2017 a billto make a provision for levy and collection of tax on intra-state supply of goods or servicesor both by the union territories and the matter connected therewith or incidental theretobe it enacted by parliament in the sixty-eighth year of the republic of india as follows:— chapter i preliminary51 (1) this act may be called the union territory goods and services tax act, 2017short title, extent and commencement(2) it extends to the union territories of the andaman and nicobar islands,lakshadweep, dadra and nagar haveli, daman and diu, chandigarh and other territory(3) it shall come into force on such date as the central government may, by notificationin the official gazette, appoint:definitions2 in this act, unless the context otherwise requires,—(1) ''appointed day'' means the date on which the provisions of this act shall come into force5(2) ''commissioner'' means the commissioner of union territory tax appointed under section 3; (3) ''designated authority'' means such authority as may be notified by the commissioner;10(4) ''exempt supply'' means supply of any goods or services or both which attracts nil rate of tax or which may be exempt from tax under section 8, or under section 6 of the integrated goods and services tax act, and includes non taxable supply;(5) ''existing law'' means any law, notification, order, rule or regulation relating to levy and collection of duty or tax on goods or services or both passed or made before the commencement of this act by parliament or any authority or person having the power to make such law, notification, order, rule or regulation;15(6) ''government'' means the administrator or any authority or officer authorised to act as administrator by the central government;20(7) ''output tax'' in relation to a taxable person, means the union territory tax chargeable under this act on taxable supply of goods or services or both made by him or by his agent but excludes tax payable by him on reverse charge basis;(8) ''union territory'' means the territory of,—(i) the andaman and nicobar islands; (ii) lakshadweep; (iii) dadra and nagar haveli;25(iv) daman and diu; (v) chandigarh; or (vi) other territory explanation—for the purposes of this act, each of the territories specified in sub-clauses (i) to (vi) shall be considered to be a separate union territory;30(9) ''union territory tax'' means the tax levied under this act; (10) words and expressions used and not defined in this act but defined in the central goods and services tax act, the integrated goods and services tax act, the state goods and services tax act, and the goods and services tax (compensation to states) act, shall have the same meaning as assigned to them in those acts35 chapter ii administrationofficers under this act3 the administrator may, by notification, appoint commissioners and such other class of officers as may be required for carrying out the purposes of this act and such officers shall be deemed to be proper officers for such purposes as may be specified therein:40provided that the officers appointed under the existing law shall be deemed to be the officers appointed under the provisions of this actauthorisation of officers4 the administrator may, by order, authorise any officer to appoint officers of union territory tax below the rank of assistant commissioner of union territory tax for the administration of this act| powers ||-----------|| officers |5 (1) subject to such conditions and limitations as the commissioner may impose, an officer of the union territory tax may exercise the powers and discharge the duties conferred or imposed on him under this act5(2) an officer of a union territory tax may exercise the powers and discharge the duties conferred or imposed under this act on any other officer of a union territory tax who is subordinate to him(3) the commissioner may, subject to such conditions and limitations as may be specified in this behalf by him, delegate his powers to any other officer subordinate to him10(4) notwithstanding anything contained in this section, an appellate authority shall not exercise the powers and discharge the duties conferred or imposed on any other officer of union territory tax6 (1) without prejudice to the provisions of this act, the officers appointed under the central goods and services tax act are authorised to be the proper officers for the purposes of this act, subject to such conditions as the government shall, on the recommendations of the council, by notification, specify15authorisationof officers of central tax as proper officer in certaincircumstances(2) subject to the conditions specified in the notification issued under sub-section (1),—20(a) where any proper officer issues an order under this act, he shall also issue an order under the central goods and services tax act, as authorised by the said act under intimation to the jurisdictional officer of central tax;(b) where a proper officer under the central goods and services tax act has initiated any proceedings on a subject matter, no proceedings shall be initiated by the proper officer under this act on the same subject matter25(3) any proceedings for rectification, appeal and revision, wherever applicable, of any order passed by an officer appointed under this act, shall not lie before an officer appointed under the central goods and services tax act chapter iii levy and collection of taxlevy and collection307 (1) subject to the provisions of sub-section (2), there shall be levied a tax called the union territory tax on all intra-state supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the central goods and services tax act and at such rates, not exceeding twenty per cent, as may be notified by the central government on the recommendations of the council and collected in such manner as may be prescribed and shall be paid by the taxable person35(2) the union territory tax on the supply of petroleum crude, high speed diesel,motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the central government on the recommendations of the council40(3) the central government may, on the recommendations of the council, bynotification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both45(4) the union territory tax in respect of the supply of taxable goods or services orboth by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both5(5) the central government may, on the recommendations of the council, by notification, specify categories of services the tax on intra-state supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services:provided that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax:10provided further that where an electronic commerce operator does not have a physical presence in the taxable territory and also he does not have a representative in the said territory, such electronic commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall be liable to pay taxpower to grant exemption from tax158 (1) where the central government is satisfied that it is necessary in the publicinterest so to do, it may, on the recommendations of the council, by notification, exempt generally either absolutely or subject to such conditions as may be specified therein, goods or services or both of any specified description from the whole or any part of the tax leviable thereon with effect from such date as may be specified in such notification20(2) where the central government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the council, by special order in each case, under circumstances of an exceptional nature to be stated in such order, exempt from payment of tax any goods or services or both on which tax is leviable25(3) the central government may, if it considers necessary or expedient so to do for the purpose of clarifying the scope or applicability of any notification issued under sub-section (1) or order issued under sub-section (2), insert an explanation in such notification or order, as the case may be, by notification at any time within one year of issue of the notification under sub-section (1) or order under sub-section (2), and every such explanation shall have effect as if it had always been the part of the first such notification or order, as the case may be30(4) any notification issued by the central government under sub-section (1) of section 11 or order issued under sub-section (2) of the said section of the central goods and services tax act shall be deemed to be a notification or, as the case may be, an order issued under this act35explanation—for the purposes of this section, where an exemption in respect of any goods or services or both from the whole or part of the tax leviable thereon has been granted absolutely, the registered person supplying such goods or services or both shall not collect the tax, in excess of the effective rate, on such supply of goods or services or both chapter iv payment of taxpayment of tax409 the amount of input tax credit available in the electronic credit ledger of theregistered person on account of,—(a) integrated tax shall first be utilised towards payment of integrated tax andthe amount remaining, if any, may be utilised towards the payment of central tax and state tax, or as the case may be, union territory tax, in that order;40(c) the union territory tax shall first be utilised towards payment of unionterritory tax and the amount remaining, if any, may be utilised towards payment of integrated tax; (d) the union territory tax shall not be utilised towards payment of centraltax| transfer ||-------------------|| input tax credit |510 on utilisation of input tax credit of union territory tax for payment of tax dues under the integrated goods and services tax act in accordance with the provisions of sub-section (5) of section 49 of the central goods and services tax act, as reflected in the valid return furnished under sub-section (1) of section 39 of the central goods and services tax act, the amount collected as union territory tax shall stand reduced by an amount equal to such credit so utilised and the central government shall transfer an amount equal to the amount so reduced from the union territory tax account to the integrated tax account in such manner and within such time as may be prescribed10 chapter v inspection, search seizure and arrest11 (1) all officers of police, railways, customs, and those officers engaged in the collection of land revenue, including village officers, and officers of central tax and officers of the state tax shall assist the proper officers in the implementation of this actofficers required toassist properofficers15(2) the government may, by notification, empower and require any other class of officers to assist the proper officers in the implementation of this act when called upon to do so by the commissioner chapter vi demands and recovery2012 (1) a registered person who has paid the central tax and the union territory tax on a transaction considered by him to be an intra-state supply, but which is subsequently held to be an inter-state supply, shall be refunded the amount of taxes so paid in such manner and subject to such conditions as may be prescribedtax wrongfully collected and paid to central government or union territory government25(2) a registered person who has paid integrated tax on a transaction considered by him to be an inter-state supply, but which is subsequently held to be an intra-state supply, shall not be required to pay any interest on the amount of the central tax and the union territory tax payablerecovery of tax3013 (1) where any amount of tax, interest or penalty is payable by a person to the government under any of the provisions of this act or the rules made thereunder and which remains unpaid, the proper officer of central tax, during the course of recovery of said tax arrears, may recover the amount from the said person as if it were an arrear of central tax and credit the amount so recovered to the account of the government under the appropriate head of union terrirtory tax35(2) where the amount recovered under sub-section (1) is less than the amount due to the government under this act and the central goods and services act, the amount to be credited to the account of the government shall be in proportion to the amount due as union territory tax and central tax chapter vii advance rulingdefinitions14 in this chapter, unless the context otherwise requires,—40(a) ''advance ruling'' means a decision provided by the authority or the appellateauthority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100 of the central goods and services taxact, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant;45(b) ''appellate authority'' means the appellate authority for advance rulingconstituted under section 16(c) ''applicant'' means any person registered or desirous of obtaining registrationunder this act;(d) ''application'' means an application made to the authority under sub-section (1) of section 97 of the central goods and services tax act;(e) ''authority'' means the authority for advance ruling, constituted under section 15;515 (1) the central government shall, by notification, constitute an authority to be known as the name of the union territory, authority for advance ruling:constitution of authority for advance rulingprovided that the central government may, on the recommendations of the council, notify any authority located in any state or any other union territory to act as the authority for the purposes of this act10(2) the authority shall consist of—(i) one member from amongst the officers of central tax; and (ii) one member from amongst the officers of union territory tax, to be appointed by the central government15(3) the qualifications, the method of appointment of the members and the terms and conditions of their service shall be such as may be prescribed16 (1) the central government shall, by notification, constitute an appellate authority to be known as (name of the union territory) appellate authority for advance ruling for goods and services tax for hearing appeals against the advance ruling pronounced by the advance ruling authority:constitution of appellate authority for advance ruling20provided that the central government may, on the recommendations of the council, notify any appellate authority located in any state or any other union territory to act as the appellate authority for the purposes of this act(2) the appellate authority shall consist of—(i) the chief commissioner of central tax as designated by the board; and25(ii) the commissioner of union territory tax having jurisdiction over the applicant chapter viii transitional provisions30migration of existing tax payers17 (1) on and from the appointed day, every person registered under any of the existing laws and having a valid permanent account number shall be issued a certificate of registration on provisional basis, subject to such conditions and in such form and manner as may be prescribed, which unless replaced by a final certificate of registration under sub-section (2), shall be liable to be cancelled if the conditions so prescribed are not complied with35(2) the final certificate of registration shall be granted in such form and manner and subject to such conditions as may be prescribed40(3) the certificate of registration issued to a person under sub-section (1) shall be deemed to have not been issued if the said registration is cancelled in pursuance of an application filed by such person that he was not liable to registration under section 22 or section 24 of the central goods and services tax acttransitional arrangements for input tax credit4518 (1) a registered person, other than a person opting to pay tax under section 10 of the central goods and services tax act, shall be entitled to take, in his electronic credit ledger, credit of the amount of value added tax and entry tax, if any, carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law, not later than ninety days after the said day, in such manner as may be prescribed:provided that the registered person shall not be allowed to take credit in the following circumstances, namely:—(i) where the said amount of credit is not admissible as input tax credit underthis act; or5 (ii) where he has not furnished all the returns required under the existing lawfor the period of six months immediately preceding the appointed day; or(iii) where the said amount of credit relates to goods sold under such exemptionnotifications as are notified by the government:1074 of 1956provided further that so much of the said credit as is attributable to any claim related to section 3, sub-section (3) of section 5, section 6 or section 6a or sub-section (8) of section 8 of the central sales tax act, 1956 that is not substantiated in the manner, and within the period, prescribed in rule 12 of the central sales tax (registration and turnover) rules, 1957 shall not be eligible to be credited to the electronic credit ledger:15provided also that an amount equivalent to the credit specified in the second proviso shall be refunded under the existing law when the said claims are substantiated in the manner prescribed in rule 12 of the central sales tax (registration and turnover) rules, 195720(2) a registered person, other than a person opting to pay tax under section 10 of thecentral goods and services tax act, shall be entitled to take, in his electronic credit ledger, credit of the unavailed input tax credit in respect of capital goods, not carried forward in a return, furnished under the existing law by him, for the period ending with the day immediately preceding the appointed day in such manner as may be prescribed: provided that the registered person shall not be allowed to take credit unless the said credit was admissible as input tax credit under the existing law and is also admissible as input tax credit under this act25explanation—for the purposes of this section, the expression ''unavailed input taxcredit'' means the amount that remains after subtracting the amount of input tax credit already availed in respect of capital goods by the taxable person under the existing law from the aggregate amount of input tax credit to which the said person was entitled in respect of the said capital goods under the existing law3035(3) a registered person, who was not liable to be registered under the existing law orwho was engaged in the sale of exempted goods or tax free goods or goods which havesuffered tax at first point of their sale in the union territory and the subsequent sales of which are not subject to tax in the union territory under the existing law but which are liable to tax under this act or where the person was entitled to the credit of input tax at the time of sale of goods, shall be entitled to take, in his electronic credit ledger, credit of the value added tax and entry tax, if any, in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions, namely:—40(i) such inputs or goods are used or intended to be used for making taxablesupplies under this act;(ii) the said registered person is eligible for input tax credit on such inputsunder this act;45 (iii) the said registered person is in possession of invoice or other prescribeddocuments evidencing payment of tax under the existing law in respect of such inputs; and(iv) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day:provided that where a registered person, other than a manufacturer or a supplier of services, is not in possession of an invoice or any other documents evidencing5payment of tax in respect of inputs, then, such registered person shall, subject to such conditions, limitations and safeguards as may be prescribed, including that the said taxable person shall pass on the benefit of such credit by way of reduced prices to the recipient, be allowed to take credit at such rate and in such manner as may be prescribed (4) a registered person, who was engaged in the sale of taxable goods as well as exempted goods or tax free goods under the existing law but which are liable to tax under this act, shall be entitled to take, in his electronic credit ledger,—10(a) the amount of credit of the value added tax and entry tax, if any, carried forward in a return furnished under the existing law by him in accordance with the provisions of sub-section (1); and (b) the amount of credit of the value added tax and entry tax, if any, in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day, relating to such exempted goods or tax free goods in accordance with the provisions of sub-section (3)1520(5) a registered person shall be entitled to take, in his electronic credit ledger, credit of value added tax and entry tax, if any, in respect of inputs received on or after the appointed day but the tax in respect of which has been paid by the supplier under the existing law, subject to the condition that the invoice or any other tax paying document of the same was recorded in the books of account of such person within a period of thirty days from the appointed day:provided that the period of thirty days may, on sufficient cause being shown, be extended by the commissioner for a further period not exceeding thirty days:25provided further that the said registered person shall furnish a statement, in such manner as may be prescribed, in respect of credit that has been taken under this sub-section30(6) a registered person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law shall be entitled to take, in his electronic credit ledger, credit of value added tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions, namely:—(i) such inputs or goods are used or intended to be used for making taxable supplies under this act;(ii) the said registered person is not paying tax under section 10 of the central goods and services tax act;35(iii) the said registered person is eligible for input tax credit on such inputs under this act;(iv) the said registered person is in possession of invoice or other prescribed documents evidencing payment of tax under the existing law in respect of inputs; and40(v) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day (7) the amount of credit under sub-sections (3), (4) and (6) shall be calculated in such manner as may be prescribed45transitional provisions relating to job work19 (1) where any inputs received at a place of business had been desptached as such or desptached after being partially processed to a job worker for further processing, testing, repair, reconditioning or any other purpose in accordance with the provisions of existing law prior to the appointed day and such inputs are returned to the said place on or after the appointed day, no tax shall be payable if such inputs, after completion of the job work or otherwise, are returned to the said place within six months from the appointed day:provided that the period of six months may, on sufficient cause being shown, be extended by the commissioner for a further period not exceeding two months:5provided further that if such inputs are not returned within a period of six months orthe extended period from the appointed day, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142 of thecentral goods and services tax act10(2) where any semi-finished goods had been despatched from any place of businessto any other premises for carrying out certain manufacturing processes in accordance with the provisions of existing law prior to the appointed day and such goods (hereinafter in this section referred to as ''the said goods'') are returned to the said place on or after the appointed day, no tax shall be payable if the said goods, after undergoing manufacturing processes or otherwise, are returned to the said place within six months from the appointed day:provided that the period of six months may, on sufficient cause being shown, be extended by the commissioner for a further period not exceeding two months:15provided further that if the said goods are not returned within a period specified inthis sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142 of the central goods and services tax act:20 provided also that the person despatching the goods may, in accordance with theprovisions of the existing law, transfer the said goods to the premises of any registered person for the purpose of supplying therefrom on payment of tax in india or without payment of tax for exports within six months or the extended period, as the case may be, from the appointed day25(3) where any goods had been despatched from the place of business without paymentof tax for carrying out tests or any other process to any other premises, whether registered or not, in accordance with the provisions of existing law prior to the appointed day and such goods are returned to the said place of business on or after the appointed day, no tax shall be payable if the said goods, after undergoing tests or any other process, are returned to such place within six months from the appointed day:30provided that the period of six months may, on sufficient cause being shown, beextended by the commissioner for a further period not exceeding two months:35provided further that if the said goods are not returned within the period specified inthis sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142 of the central goods and services tax act:provided also that the person despatching the goods may, in accordance with the provisions of the existing law, transfer the said goods from the said other premises on payment of tax in india or without payment of tax for exports within six months or the extended period, as the case may be, from the appointed day40(4) the tax under sub-sections (1), (2) and (3) shall not be payable only if the persondespatching the goods and the job worker declare the details of the inputs or goods held in stock by the job worker on behalf of the said person on the appointed day in such form and manner and within such time as may be prescribed45miscellaneous transitional provisions20 (1) where any goods on which tax, if any, had been paid under the existing law atthe time of sale thereof, not being earlier than six months prior to the appointed day, are returned to any place of business on or after the appointed day, the registered person shall be eligible for refund of the tax paid under the existing law where such goods are returnedby a person, other than a registered person, to the said place of business within a period of six months from the appointed day and such goods are identifiable to the satisfaction of the proper officer:5provided that if the said goods are returned by a registered person, the return of such goods shall be deemed to be a supply10(2) (a) where, in pursuance of a contract entered into prior to the appointed day, the price of any goods is revised upwards on or after the appointed day, the registered person who had sold such goods shall issue to the recipient a supplementary invoice or debit note, containing such particulars as may be prescribed, within thirty days of such price revision and for the purposes of this act, such supplementary invoice or debit note shall be deemed to have been issued in respect of an outward supply made under this act15(b) where, in pursuance of a contract entered into prior to the appointed day, the price of any goods is revised downwards on or after the appointed day, the registered person who had sold such goods may issue to the recipient a credit note, containing such particulars as may be prescribed, within thirty days of such price revision and for the purposes of this act such credit note shall be deemed to have been issued in respect of an outward supply made under this act:20provided that the registered person shall be allowed to reduce his tax liability on account of issue of the credit note only if the recipient of the credit note has reduced his input tax credit corresponding to such reduction of tax liability25(3) every claim for refund filed by any person before, on or after the appointed day, for refund of any amount of input tax credit, tax, interest or any other amount paid under the existing law, shall be disposed of in accordance with the provisions of existing law and any amount eventually accruing to him shall be refunded to him in cash in accordance with the provisions of the said law:provided that where any claim for refund of the amount of input tax credit is fully or partially rejected, the amount so rejected shall lapse:30provided further that no refund shall be allowed of any amount of input tax credit where the balance of the said amount as on the appointed day has been carried forward under this act(4) every claim for refund filed after the appointed day for refund of any tax paid under the existing law in respect of the goods exported before or after the appointed day shall be disposed of in accordance with the provisions of the existing law:35provided that where any for refund of input tax credit is fully or partially rejected, the amount so rejected shall lapse:provided further that no refund shall be allowed of any amount of input tax credit where the balance of the said amount as on the appointed day has been carried forward under this act40(5) (a) every proceeding of appeal, revision, review or reference relating to a claim for input tax credit initiated whether before, on or after the appointed day, under the existing law shall be disposed of in accordance with the provisions of the existing law, and any amount of credit found to be admissible to the claimant shall be refunded to him in cash in accordance with the provisions of the existing law and the amount rejected, if any, shall not be admissible as input tax credit under this act:45provided that no refund shall be allowed of any amount of input tax credit where the balance of the said amount as on the appointed day has been carried forward under this act(b) every proceeding of appeal, revision, review or reference relating to recovery of input tax credit initiated whether before, on or after the appointed day, under the existing law shall be disposed of in accordance with the provisions of the existing law, and if any amount of credit becomes recoverable as a result of such appeal, revision, review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this act and the amount so recovered shall not be admissible as input tax credit under this act510(6) (a) every proceeding of appeal, revision, review or reference relating to anyoutput tax liability initiated whether before, on or after the appointed day under the existing law, shall be disposed of in accordance with the provisions of the existing law, and if any amount becomes recoverable as a result of such appeal, revision, review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this act and amount so recovered shall not be admissible as input tax credit under this act15(b) every proceeding of appeal, revision, review or reference relating to any outputtax liability initiated whether before, on or after the appointed day under the existing law, shall be disposed of in accordance with the provisions of the existing law, and any amount found to be admissible to the claimant shall be refunded to him in cash in accordance with the provisions of the existing law and the amount rejected, if any, shall not be admissible as input tax credit under this act20(7) (a) where in pursuance of an assessment or adjudication proceedings instituted,whether before, on or after the appointed day, under the existing law, any amount of tax, interest, fine or penalty becomes recoverable from the person, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this act and the amount so recovered shall not be admissible as input tax credit under this act25(b) where in pursuance of an assessment or adjudication proceedings instituted,whether before, on or after the appointed day under the existing law, any amount of tax, interest, fine or penalty becomes refundable to the taxable person, the same shall be refunded to him in cash under the said law and the amount rejected, if any, shall not be admissible as input tax credit under this act30(8) (a) where any return, furnished under the existing law, is revised after the appointed day and if, pursuant to such revision, any amount is found to be recoverable or any amount of input tax credit is found to be inadmissible, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this act and the amount so recovered shall not be admissible as input tax credit under this act35(b) where any return, furnished under the existing law, is revised after the appointedday but within the time limit specified for such revision under the existing law and if, pursuant to such revision, any amount is found to be refundable or input tax credit is found to be admissible to any taxable person, the same shall be refunded to him in cash under the existing law and the amount rejected, if any, shall not be admissible as input tax credit under this act40(9) save as otherwise provided in this chapter, the goods or services or both suppliedon or after the appointed day in pursuance of a contract entered into prior to the appointed day shall be liable to tax under the provisions of this act(10) (a) notwithstanding anything contained in section 12 of the central goods andservices tax act, no tax shall be payable on goods under this act to the extent the tax was leviable on the said goods under the existing law4532 of 1994(b) notwithstanding anything contained in section 13 of the central goods and servicestax act, no tax shall be payable on services under this act to the extent the tax was leviable on the said services under chapter v of the finance act, 199432 of 199445(c) where tax was paid on any supply, both under any existing law relating to sale ofgoods and under chapter v of the finance act, 1994, tax shall be leviable under this act and the taxable person shall be entitled to take credit of value added tax or service tax paid under the existing law to the extent of supplies made after the appointed day and such credit shall be calculated in such manner as may be prescribed(11) where any goods sent on approval basis, not earlier than six months before the appointed day, are rejected or not approved by the buyer and returned to the seller on or after the appointed day, no tax shall be payable thereon if such goods are returned within six months from the appointed day:5provided that the said period of six months may, on sufficient cause being shown, be extended by the commissioner for a further period not exceeding two months:provided further that the tax shall be payable by the person returning the goods if such goods are liable to tax under this act and are returned after the period specified in this sub-section:10provided also that tax shall be payable by the person who has sent the goods on approval basis if such goods are liable to tax under this act, and are not returned within the period specified in this sub-section15(12) where a supplier has made any sale of goods in respect of which tax was required to be deducted at source under any existing law relating to sale of goods and has also issued an invoice for the same before the appointed day, no deduction of tax at source under section 51 of the central goods and services tax act, as made applicable to this act, shall be made by the deductor under the said section where payment to the said supplier is made on or after the appointed day20explanation—for the purposes of this chapter, the expression ''capital goods'' shall have the same meaning as assigned to it in any existing law relating to sale of goods chapter ix miscellaneous21 subject to the provisions of this act and the rules made thereunder, the provisions of the central goods and services tax act, relating to,—25(i) scope of supply;application of provisions of central goods and services tax act(ii) composition levy; (iii) composite supply and mixed supply; (iv) time and value of supply; (v) input tax credit;30(vi) registration; (vii) tax invoice, credit and debit notes; (viii) accounts and records; (ix) returns; (x) payment of tax;35(xi) tax deduction at source; (xii) collection of tax at source; (xiii) assessment; (xiv) refunds; (xv) audit; (xvi) inspection, search, seizure and arrest;40(xvii) demands and recovery; (xviii) liability to pay in certain cases;(xix) advance ruling; (xx) appeals and revision; (xxi) presumption as to documents; (xxii) offences and penalties;5(xxiii) job work; (xxiv) electronic commerce; (xxv) settlement of funds; (xxvi) transitional provisions; and10(xxvii) miscellaneous provisions including the provisions relating to the imposition of interest and penalty, shall, mutatis mutandis, apply,—(a) so far as may be, in relation to union territory tax as they apply in relation to central tax as if they were enacted under this act;15(b) subject to the following modifications and alterations which the central government considers neceassry and desirable to adapt those provisions to the circumstances, namely:—(i) references to ''this act'' shall be deemed to be references to ''theunion territory goods and services tax act, 2017'';20(ii) references to ''commissioner'' shall be deemed to be references to''commissioner'' of union territory tax as defined in clause (2) of section 2 ofthis act;(iii) references to ''officers of central tax'' shall be deemed to be referencesto ''officers of union territory tax'';25(iv) references to ''central tax'' shall be deemed to be reference to ''unionterritory tax'' and vice versa;(v) references to ''commissioner of state tax or commissioner of unionterritory tax'' shall be deemed to be references to ''commissioner of central tax'';30(vi) references to ''state goods and services tax act or union territorygoods and services tax act'' shall be deemed to be references to ''central goods and services tax act'';(vii) references to ''state tax or union territory tax'' shall be deemed tobe references to ''central tax''power to make rules3522 (1) the central government may, on the recommendations of the council, by notification, make rules for carrying out the provisions of this act(2) without prejudice to the generality of the provisions of sub-section (1), the central government may make rules for all or any of the matters which by this act are required to be, or may be, prescribed or in respect of which provisions are to be or may be made by rules40(3) the power to make rules conferred by this section shall include the power to give retrospective effect to the rules or any of them from a date not earlier than the date on which the provisions of this act come into force(4) any rules made under sub-section (1) may provide that a contravention thereof shall be liable to a penalty not exceeding ten thousand rupees23 the board may, by notification, make regulations consistent with this act and therules made thereunder to carry out the purposes of this actgeneral power to make regulationslaying of rules, regulations and notifications51024 every rule made by the central government, every regulation made by the boardand every notification issued by the central government under this act, shall be laid, as soon as may be, after it is made or issued, 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 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 regulation or in the notification, as the case may be, or both houses agree that the rule or regulation or the notification should not be made, the rule or regulation or notification, as the case may be, shall thereafter have effect only in such modified form 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 or regulation or notification, as the case may bepower to issue instructions ordirections1525 the commissioner may, if he considers it necessary or expedient so to do for thepurpose of uniformity in the implementation of this act, issue such orders, instructions or directions to the union territory tax officers as he may deem fit, and thereupon all such officers and all other persons employed in the implementation of this act shall observe and follow such orders, instructions or directionsremoval of difficulties2026 (1) if any difficulty arises in giving effect to any provision of this act, the centralgovernment may, on the recommendations of the council, by a general or a special order published in the official gazette, make such provisions not inconsistent with the provisions of this act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of removing the said difficulty:provided that no such order shall be made after the expiry of a period of three yearsfrom the date of commencement of this act25(2) every order made under this section shall be laid, as soon as may be, after it ismade, before each house of parliament statement of objects and reasonspresently, the constitution empowers the central government to levy excise duty on manufacturing and service tax on the supply of services similarly, it empowers the state governments and union territories to levy sales tax or value added tax on the sale of goods in addition, many states also levy an entry tax on the entry of goods in local areas this exclusive division of fiscal powers has led to a multiplicity of indirect taxes in the country2 the present tax system on goods and services in the union territories is facing certain difficulties which are as under—(a) the multiplicity of taxes at the central and state levels has resulted in a complex indirect tax structure in the country that is ridden with hidden costs for the trade and industry;(b) there is no uniformity of tax rates and structure across the states and there is cascading of taxes due to "tax on tax"; and(c) the credit of excise duty and service tax paid at the stage of manufacture is not available to the traders while paying the state level sales tax or value added tax, and vice-versa further, the credit of state taxes paid in one state cannot be availed in other states hence, the prices of goods and services get artificially inflated to the extent of this "tax on tax" 3 in view of the above, it has become necessary to have a central legislation, namely, the union territory goods and services tax bill, 2017 the proposed legislation will confer power upon the central government for levying goods and services tax on the supply of goods or services or both which takes place within a union territory without legislature4 the proposed legislation will simplify and harmonise the indirect tax regime in the country it is expected to reduce the cost of production and inflation in the economy, thereby making the indian trade and industry more competitive, domestically as well as internationally it is also expected that introduction of goods and services tax will foster a common or seamless indian market and contribute significantly to the growth of the economy due to the seamless transfer of input tax credit from one stage to another in the chain of value addition, there is an in-built mechanism in the design of goods and services tax that would incentivise tax compliance by taxpayers the proposed goods and services tax will broaden the tax base and result in better tax compliance due to a robust information technology infrastructure5 the union territory goods and services tax bill, 2017, inter alia, provides for the following, namely:—(a) to levy tax on all intra-state supplies of goods or services or both except supply of alcoholic liquor for human consumption at a rate to be notified, not exceeding twenty per cent as recommended by the goods and services tax council (the council);(b) to empower the central government to grant exemptions, by notification or by special order, on the recommendations of the council;(c) to provide for apportionment of tax and settlement of funds on account of transfer of input tax credit between the central government, state government and union territory;(d) to provide for assistance by officers of police, railways, customs, and those engaged in the collection of land revenue, including village officers, and officers of central tax and officers of the state tax to proper officers in the implementation of the proposed legislation;(e) to provide for recovery of tax, interest or penalty payable by a person to the government which remains unpaid, by the proper officer of central tax;(f) to establish an authority for advance ruling in order to enable the taxpayer to seek a binding clarity on taxation matters from the department;(g) to provide for elaborate transitional provisions for smooth transition of existing taxpayers to goods and services tax regime;(h) to provide for application of certain provisions of the central goods and services tax act, 2017, inter alia, relating to definitions, time and value of supply, input tax credit, registration, returns other than late fee, payment of tax, assessment, refunds, audit, inspection, search, seizure and arrest, demands and recovery, appeals and revision, offences and penalties and transitional provisions in the proposed legislation; and (i) to empower the commissioner to issue orders, instructions or directions to the union territory tax officers 6 the notes on clauses explain in detail the various provisions contained in the union territory goods and services tax bill, 20177 the bill seeks to achieve the above objectivesnew delhi;arun jaitleythe 23rd march, 2017 notes on clausesclause 1 provides for short title, extent and commencement of the proposed act clause 2 defines various terms and expressions used in the proposed act clause 3 provides for appointment of commissioners and other class of officers as may be required for carrying out the purposes of the proposed actclause 4 confers power on the administrator to appoint officers of union territory tax below the rank of assistant commissioner of union territory tax for the administration of the proposed actclause 5 provides for conditions and exceptions for exercising the powers by the union territory tax officersclause 6 provides for authorisation of central tax officers, subject to certain conditions as shall be notified by the central government on recommendations of the council, to be proper officers for the purposes of the proposed actclause 7 provides for levy of union territory tax on all intra-state supplies of goods or services or both except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the central goods and services tax act at such rates not exceeding forty per cent this clause further provides that—(i) union territory tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel to be levied with effect from a date notified by the central government on the recommendations of the council;(ii) the central government to notify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both, on the recommendations of the council;(iii) the union territory tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis;(iv) the central government may notify categories of services, the tax on intra-state supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, on the recommendations of the council clause 8 confers powers on the central government to exempt either absolutely or conditionally goods or services or both of any specified description from the whole or any part of the union territory tax, on the recommendations of the council it also confers powers on the central government to exempt from payment of tax any goods or services or both, by special order, on which tax is leviable on the recommendations of the councilclause 9 provides for the manner and order in which input tax credit of integrated tax and input tax credit of union territory tax is to be utilisedclause 10 provides for transfer of credit of union territory tax to the integrated tax account when union territory tax credit has been used for payment of central taxclause 11 provides for officers of police, railways, customs and other officers engaged in collection of land revenue to assist officers involved in implementation of this actclause 12 provides for refund of union territory tax in situations where intra-state supplies are subsequently held to be inter-state suppliesclause 13 provides for recovery of union territory tax, interest or penalty by central tax officer while recovering arrears of central taxclause 14 defines terms and expressions such as advance ruling, applicant, application, etc, used in chapter viiclause 15 provides for constitution of advance ruling by the central government clause 16 provides for constitution of appellate authority for advance ruling by the central governmentclause 17 provides for migration of taxpayers registered under the existing law to be issued provisional registration under the proposed act, if the said taxpayer is required to be registered under the provisions of the proposed actclause 18 provides for transitional arrangements for carrying forward of input tax credit available under the existing lawclause 19 provides for transitional provisions relating to job-work clause 20 provides for miscellaneous provisions for transition of existing tax payers in various situationsclause 21 provides for application of specific provisions of the central goods and services tax act to the proposed actclause 22 confers powers on the central government to make rules for carrying out the provisions of the proposed act on recommendations of the councilclause 23 confers powers on the board to make regulations for carrying out the provisions of the proposed actclause 24 provides for laying of rules, regulations and notifications made by the central government before each house of the parliamentclause 25 confers powers to the commissioner to issue orders, instructions or directions to the union territory tax officers for uniform implementation of the provisions of the proposed actclause 26 confers powers on the central government to make such provisions not inconsistent with the provisions of the proposed act or the rules or regulations by a general or special order, on the recommendations of the council within a period of three years from the date of commencement of the proposed act financial memorandumclause 10 of the bill provides for apportionment of tax and settlement of funds on account of transfer of utilisation of input tax credit under this bill for the payment of tax dues under the integrated goods and services tax by the central government2 sub-clause (1) of clause 15 of the bill provides for the establishment of an authority for advance ruling3 sub-clause (1) of clause 16 of the bill provides for the establishment of an appellate authority for advance ruling4 sub-clause (1) of clause 21 of the bill provides for application of provisions of the central goods and services tax bill, 2017 relating to appeals, advance ruling and anti-profiteering so authorities established under central goods and services tax act will be utilised for the purposes of this bill thus there will be no extra financial expenditure under this bill5 the total financial implications in terms of recurring and non-recurring expenditure involved in carrying out the various functions under the bill would be borne by the central government most of the existing officers and staff of the central board of excise and customs and union territories would be used for carrying out the various functions under the bill however, it is not possible to estimate the exact recurring and non-recurring expenditure from the consolidated fund of india at this stage memorandum regarding delegated legislationclause 22 of the union territories goods and services tax bill, 2017 seeks to empower the government to make rules, inter-alia, in the following—(a) collection of taxes under section 7; (b) manner and time in which input tax credit will be transferred under section 10; (c) manner in which tax wrongfully collected and paid to central government or union territory government is to be refunded under section 19; (d) qualifications, the method of appointment of the members and the terms and conditions of their service for authority of advance ruling under section 15; (e) form and manner in which certification of registration on provisional basis is to be issued under section 17; (f) manner in which input tax credit is to be carried forward under section 18; (g) form, manner and time in which the job worker declares inputs held in stock on behalf of the manufacturer under section 19; (h) manner in which credit will be calculated on tax paid under existing law under section 20; and (i) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules 2 clause 23 of the bill empowers the board to make regulations to provide for any matter which is required to be, or may be, specified by regulation or in respect of which provision is to be made by regulations3 the matters in respect of which the said rules and regulations may be made are matters of procedure and administrative detail, and as such, it is not practicable to provide for them in the proposed bill itself the delegation of legislative power is, therefore, of a normal character———— a billto make a provision for levy and collection of tax on intra-state supply of goods or services or both by the union territories and the matter connected therewith or incidental thereto————(shri arun jaitley, minister of finance and corporate affairs)gmgipmrnd—5432ls(s3)—23-03-2017 the union territory goods and services tax bill, 2017 [to be/as introduced in lok sabha]1 page 6, line 17,- for "known as name" read " known as the name" 2 page 13, line 15,- for "considers neceassry" read "consider necessary" 3 page 13, line 24,- for "deemed to be reference" read "deemed to be references " 4 page 20, line 1,- for "union territories" read "union territory" new delhi; march 25, 2017______ chaitra 4, 1939 (saka) | Parliament_bills | fa24147c-4549-572f-b816-73becf14fe89 |
bill no xxii of 2017 the armed forces special powers (amendment) bill, 2017 a billfurther to amend the armed forces (special powers) act, 1958 and the armed forces(jammu and kashmir) special powers act, 1990be it enacted by parliament in the sixty-eighth year of the republic of india as follows:—short title and commencement1 (1) this act may be called the armed foces special powers (amendment)act, 2017(2) it shall come into force with immediate effect28 of 19585amendment of section 62 in the armed forces (special powers) act, 1958, in section 6, the following provisions shall be inserted, namely:—10"provided that the central government shall take a decision on sanction for institution of prosecution, suit or any other legal proceeding within three months of receiving a request for the same, failing which the sanction shall be deemed to have been given and where such sanction is expressly denied, it shall be communicated, along with the reasons, to the complaints and families of the victims, if any:provided further that no such sanction for institution of any prosecution, suit or any other legal proceeding shall be required if there is allegation of commission of45 of 1860sexual offence under section 354b, section 375, section 376, section 376a, section 376c or section 376d of the indian penal code, 1860"21 of 1990amendment of section 73 in the armed forces (jammu and kashmir) special powers act, 1990, in section 7, the following provisions shall inserted, namely:—5"provided that the central government shall take a decision on sanction for institution of prosecution suit or any other legal proceeding within three months of receiving a request for the same, failing which the sanction shall be deemed to have been given and where such sanction is expressly denied, it shall be communicated, along with the reasons, to the complaints and families of the victims, if any:1045 of 1860provided further that no such sanction for institution of any prosecution, suit or any other legal proceeding shall be required if there is allegation of commission of sexual offence under section 354b, section 375, section 376, sections 376a, section 376c or section 376d of the indian penal code, 1860" statement of objects and reasonsthe armed forces (special powers) act (afpsa), 1958 and the armed forces (jammu& kashmir) special powers act, 1990 have been in operation in several north-eastern and jammu and kashmir states of the country for many years now the rise of insurgency and militancy in these states had necessitated the enforcement of this act in order to enable armed forces to aid the civilian police forces in maintenance of law and orderover the years, however, the acts have attracted widespread criticism for breeding a culture of impunity with serious allegations of grievous offences like murder, rape, fake encounters,enforced disappearances having been committed in the name of counterinsurgency operations one of the reasons for such criticism has been the requirement of sanction from central government for launching prosecution against any member of armed forces under the afspa because such sanction does not come in a timely manner or does not come at all, there is hardly any accountability for the offences committedthe hon'ble supreme court in the case of naga people's movement of human rights notes that, 'in order that the people may feel assured that there is an effective check against misuse or abuse of powers by the members of the armed forces it is necessary that a complaint containing an allegation about misuse or abuse of the powers conferred under the central act, afspa should be thoroughly inquired into and, if it is found that there is substance in the allegation, the victim should be suitably compensated by the state and the requisite sanction under section 6 of the afspa should be granted for instruction of prosecution'in yet another writ petition asking for investigation for 1528 cases of enforced disappearances in manipur (extra judicial execution victim families association vs union of india), the hon'ble supreme court notes that, 'the law is therefore very clear that if an offence is committed even by army personnel, there is no concept of absolute immunity from trail by the criminal court constituted under the code of criminal procedure to contend that this would have a deleterious and demoralizing impact on the security forces is certainly one way of looking at it, but from the point of view of a citizen, living under the shadow of a gun that can be wielded with impunity, outright acceptance of the proposition advanced is equally unsettling and demoralizing particularly in a constitutional democracy like ours'the justice santosh hegde committee constituted by the hon'ble supreme court in the above with petition recommended that the central government be given a reasonable time limit to pass order on sanction under the afspa, preferably within three months from the date of its receipt of the request of the prosecution, failing which its sanction shall be presumedthe situation attains an alarming level of seriousness when the offences committeed are sexual in nature which clearly have an element of subjugation of the opposite gender and require severe condemnation the justice verma committee recommended that there should be no need for sanction for initiating prosecution in certain sexual offences and stated in its report that, 'we notice that impunity for systematic or isolated sexual violence in the process of internal security duties is being legitimized by the afspa'therefore, the bill intends to prescribe a time limit for decision on sanction failing which the sanction shall be deemed to have been given and where it has been denied, it must be supported with reasons in writing in case of sexual offences though, there should be no need of prior sanctionhence, this bill extract from the armed forces (jammu and kashmir) special powers act, 1990 (21 of 1990) 7 no prosecution, suit or other legal proceeding shall be instituted, except with the previous sanction of the central government, against any person in respect of anything done or purported to be done in exercise of the powers conferred by this actprotection of persons acting in good faith under this act rajya sabha———— a billfurther to amend the armed forces (special powers) act, 1958 and the armed forces(jammu and kashmir) special powers act, 1990————(shri husain dalwai, mp)gmgipmrnd—1771rs(s3)—04082017 | Parliament_bills | 84c6987f-8dea-515a-9d51-3f95d4aa2c3e |
bill no 127 of 2014 the textile undertakings (nationalisation) laws (amendment and validation) bill, 2014 a billfurther to amend the sick textile undertakings (nationalisation) act, 1974 and the textile undertakings (nationalisation) act, 1995 in order to continue with the lease-hold rights vested in the national textile corporation on completion of the lease-hold tenurewhereas the national textile corporation subserves the interests of the general public and the land continue to be in possession of the said corporation;and whereas various other textile undertakings have been nationalised from time to time and their assets vested absolutely in the central government and thereafter transferred to the national textile corporation limited by the central government free from all encumbrances;and whereas after the nationalisation of the textile undertakings, a large sum of money have been invested with a view to making the said textile undertakings viable;and whereas the central government has taken initiative to revive certain sick undertakings including the national textile corporation under a revival scheme sanctioned by the board for industrial and financial reconstruction under the sick industrial companies (special provisions) act, 1985;1 of 1986and whereas it is necessary for the proper and effective implementation of the revival scheme and to protect the public investment in the acquired textile undertakings and to explicitly clarify the status of such vesting of the lease-hold rights in the central governmentbe it enacted by parliament in the sixty-fifth year of the republic of india as follows:— chapter i preliminary51 (1) this act may be called the textile undertakings (nationalisation) laws(amendment and validation) act, 2014short title and commencement(2) it shall be deemed to have come into force with effect from the 24th october, 2014 chapter ii amendments to the sick textile undertakings (nationalisation) act, 197410amendment of section 357 of 19742 on and from the date of commencement of the sick textile undertakings(nationalisation) act, 1974 (hereafter in this chapter referred to as the principal act), in section 3, after sub-section (2), the following sub-sections shall be inserted and shall be deemed to have been inserted, namely:—15"(3) notwithstanding the transfer and vesting of any sick textile undertaking to the national textile corporation by virtue of sub-section (2), the lease-hold rights of the sick textile undertakings shall continue to remain vested in the central government on payment of lease-hold rents and shall be discharged, for and on behalf of that government, by the national textile corporation as and when payment of such leasehold rents or any amount becomes due and payable20(4) subject to sub-section (3), no court shall have jurisdiction to order divestment from the national textile corporation of the property vested in it by the central government"amendment of section 43 on and from the date of commencement of the principal act, in section 4, after subsection (7), the following sub-sections shall be inserted and shall be deemed to have been inserted, namely:—25"(8) notwithstanding the fact that the textile operations have been discontinued in any sick textile undertaking being revived, shall for all effects and purposes be deemed that the textile operations are being continued and no suit or proceeding shall be instituted or if instituted be maintainable against the national textile corporation on the ground that it has discontinued such activity in the sick textile undertaking3035(9) for the removal of doubts, it is hereby declared that the continued deemed vesting of the lease-hold land in the central government shall not affect, impair or in any manner prejudice the rights of the national textile corporation to prosecute or defend any proceedings as a subsequent vestee in respect of any such lease-hold rights and no such proceedings shall fail only on account of the non-implementation of that government"4 after section 40 of the principal act, the following section shall be inserted, namely:—insertion of new section 41 validation"41 notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority,—40(a) the provisions of this act, as amended by the textile undertakings(nationalisation) laws (amendment and validation) act, 2014, shall have and shall be deemed always to have effect for all purposes as if the provisions of this act, as amended by the said act, had been in force at all material times;5(b) any lease-hold property divested from the national textile corporation to any person under the provisions of this act, as it stood immediately before the commencement of the textile undertakings (nationalisation) laws (amendment and validation) act, 2014, shall stand transferred to and vest or continue to vest, free from all encumbrances, in the national textile corporation in the same manner as it was vested in the national textile corporation before such divesting of that property under the provisions of this act, as if the provisions of this act as amended by the aforesaid act, were in force at all material times;1015 20(c) no suit or other proceedings shall, without prejudice to the generalityof the foregoing provisions, be maintained or continued in any court or tribunal or authority for the enforcement of any decree or order or direction given by such court or tribunal or authority, notwithstanding any undertaking filed by the national textile corporation in any court or tribunal or authority, directing divestment of such lease-hold property from the national textile corporation vested in it under section 3 of this act, as it stood before the commencement of the taxtile undertakings (nationalisation) laws (amendment and validation) act, 2014, and such lease-hold property shall continue to vest in the national textile corporation under section 3 of this act, as amended by the aforesaid act, as if the said section was in force at all material times;25(d) any transfer of any propety, vested in the national textile corporation, by virtue of any order of attachment, seizure or sale in execution of a decree of a civil court or orders of any tribunal or other authority in respect of lease-hold property vested in the national textile corporation which is contrary to the provisions of this act, as amended by the textile undertakings (nationalisation) laws (amendment and validation) act, 2014, shall be deemed to be null and void and notwithstanding such transfer, continue to vest in the national textile corporation under this act" chapter iii 30 amendments to the textile undertakings (nationalisation) act, 1995a m e n d m e n t of section 339 of 19955 on and from the date of commencement of the textile undertakings (nationalisation)act, 1995 (hereafter in this chapter referred to as the principal act), in section 3, after subsection (2), the following sub-sections shall be inserted and shall be deemed to have been inserted, namely:—3540"(3) notwithstanding the transfer and vesting of any textile undertaking to thenational textile corporation by virtue of sub-section (2), the lease-hold rights of the textile undertakings shall continue to remain vested in the central government on payment of lease-hold rents and shall be discharged, for and on behalf of that government, by the national textile corporation as and when payment of such leasehold rents or any amount becomes due and payable(4) subject to sub-section (3), no court shall have jurisdiction to order divestment from the national textile corporation of the property vested in it by the central government"45amendment of section 46 on and from the date of commencement of the principal act, in section 4, after subsection (7), the following sub-sections shall be inserted and shall be deemed to have been inserted, namely:—50"(8) notwithstanding the fact that the textile operations have been discontinuedin any textile undertaking being revived, shall for all effects and purposes be deemed that the textile operations are being continued and no suit or proceeding shall be instituted or if instituted be maintainable against the national textile corporation on the ground that it has discontinued such activity in the textile undertaking5(9) for the removal of doubts, it is hereby declared that the continued deemed vesting of the lease-hold land in the central government shall not affect, impair or in any manner prejudice the rights of the national textile corporation to prosecute or defend any proceedings as a subsequent vestee in respect of any such lease-hold rights and no such proceedings shall fail only on account of the non-impleadment of that government"7 after section 38 of the principal act, the following section shall be inserted, namely:—insertion of new section39 validation"39 notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority,—10(a) the provisions of this act, as amended by the textile undertakings(nationalisation) laws (amendment and validation) act, 2014, shall have and shall be deemed always to have effect for all purposes as if the provisions of this act, as amended by the said act, had been in force at all material times;15 20(b) any lease-hold property divested from the national textile corporation to any person under the provisions of this act, as it stood immediately before the commencement of the textile undertakings (nationalisation) laws (amendment and validation) act, 2014, shall stand transferred to and vest or continue to vest, free from all encumbrances, in the national textile corporation in the same manner as it was vested in the national textile corporation before such divesting of that property under the provisions of this act as if the provisions of this act, as amended by the aforesaid act, were in force at all material times;2530(c) no suit or other proceedings shall, without prejudice to the generality of the foregoing provisions, be maintained or continued in any court or tribunal or authority for the enforcement of any decree or order or direction given by such court or tribunal or authority, notwithstanding any undertaking filed by the national textile corporation in any court or tribunal or authority, directing divestment of such lease-hold property from the national textile corporation vested in it under section 3 of this act, as it stood before the commencement of the textile undertakings (nationalisation) laws (amendment and validation) act, 2014, and such lease-hold property shall continue to vest in the national textile corporation under section 3 of this act, as amended by the aforesaid act, as if the said section was in force at all material times;3540(d) any transfer of any property, vested in the national textile corporation, by virtue of any order of attachment, seizure or sale in execution of a decree of a civil court or orders of any tribunal or other authority in respect of lease-hold property vested in the national textile corporation which is contrary to the provisions of this act, as amended by the textile undertakings (nationalisation) laws (amendment and validation) act, 2014, shall be deemed to be null and void and notwithstanding such transfer, continue to vest in the national textile corporation under this act"8 (1) the textile undertakings (nationalisation) laws (amendment and validation)ordinance, 2014 is hereby repealed| repeal ||-----------|| saving || ord 6 of || 2014 || 45 || ord 6 of || 2014 |(2) notwithstanding the repeal of the textile undertakings (nationalisation) laws(amendment and validation) ordinance, 2014, anything done or any action taken under the principal acts as amended by the said ordinance shall be deemed to have been done or taken under the principal acts, as amended by this act statement of objects and reasonsthe sick textile undertakings (nationalisation) act, 1974 and the textile undertakings(nationalisation) act, 1995 were enacted to vest in the central government the right, title and interest of the owners in respct of the sick textile undertakings and the textile undertakings referred to in sub-section (1) of section 3 of the respective acts and the same were transferred to and vested with the national textile corporation limited (ntc) under sub-section (2) of section 3 of the aforesaid acts2 the central government approved the scheme sanctioned by the board for industrial and financial reconstruction for the revival of sick textile mills under the sick industrial companies (special provisions) act, 1985 large sums of public funds have been invested in the mills with a view to making the said mills viable and protect the interest of workers3 some of these underetakings were on lease-hold land and on expiry of the lease-hold tenure, the original lessor in some cases initiated proceedings against the ntc before the court and got the order for vacation of the lease-hold land and for handing over the same to the lessors4 in the absence of adequate legal protection, the ntc which has land in its possession on lease-hold basis may not be in a position to protect the lease-hold lands5 it is, therefore, necessary for the proper and effective implementation of the revival scheme and to protect the public investments in the acquired textile undertakings to explicitly clarify the status of such vesting of the lease-hold rights in the central government6 as immediate action was required to be taken and parliament was not in session, the president promulgated the textile undertakings (nationalisation) laws (amendment and validation) ordinance, 20147 the bill seeks to replace the aforesaid ordinancenew delhi;santosh kumar gangwarthe 21st november, 2014 financial memorandumthe bill seeks to amend the sick textile undertakings (nationalisation) act, 1974 and the textile undertakings (nationaliation) act, 1995 in order to continue with the lease-hold rights vested in the national textile corporation on completion of the lease-hold tenure the bill, if enacted, is not likely to involve any recurring or non-recurring expenditure———— a billfurther to amend the sick textile undertakings (nationalisation) act, 1974 and the textile undertakings (nationalisation) act, 1995 in order to continue with the lease-hold rights vested in the national textile corporation on completion of the lease-hold tenure———— | Parliament_bills | 5734bb4f-c9bc-5bd7-9743-96487a8a0286 |
bill no xxxiii of 2004 the constitution (amendment) bill, 2004 a bill further to amend the constitution of indiabe it enacted by parliament in the fifty-fifth year of the republic of india as follows:—1 (1) this act may be called the constitution (amendment) act, 2004(2) it shall come into force with immediate effectshort title, and commencement2 after article 262 of the constitution, the following article shall be inserted, namely:—insertion of new article262a equal distribution of inter-state river water amongst the riparian states"262a nothing in article 262 shall prevent the central government from making any provision for equal distribution of inter-state rivers waters amongst all riparian states through which such inter-state rivers flow, as per the requirement of water for drinking as well as irrigation purposes of each of the states and in order to achieve this object the central government may, if it deem necessary to do so, nationalize all the inter-state rivers to bring them under its overall control" statement of objects and reasonsrecently, dispute on sharing of inter-state river water took a new dimension when punjab terminated all the agreements pertaining to sharing of inter-state river water through a legislation and restored the monopoly of punjab on such water the issue was referred to the supreme court by the president of india for opinion inter-state river water disputes are not new there is a long standing cauvery river water dispute amongst karnataka and other riparian states like tamil nadu, andhra pradesh, kerala and pondicherry such a dispute has been existing among punjab, haryana, rajasthan, delhi, up etc, for quite long these disputes have arisen because some states want to monopolies the inter state river water this has led to tension many a times between the states and has also resulted in hatred amongst the people of the states hence, it has become necessary to equally distribute the inter-state rivers water amongst all the states through which such river flows the water could be distributed as per the requirements of each state for drinking and irrigation purposes for this, if need be, the inter-state rivers could also be nationalizedhence this billalladi p rajkumar rajya sabha———— a billfurther to amend the constitution of india————(dr alladi p rajkumar, mp)mgipmrnd—5392rs(s-1)—17-02-2006 | Parliament_bills | e8084979-e7f0-5da2-9b92-ed9d895cc233 |
the supreme court (number of judges) bill~ 1956(as lntrodttcbd in lok sabra) the supreme court (number of]udges) bill,1956 (as introduced in lok sabha) a billto provide for an increase in the number of judges of the supreme court, excluding the chief justice be it enacted by parliament in the seventh year of the republic of india as follows:-s 1 this act may be called the supreme court (number of judges) act, 1956 2 the maximum number of juclies of the supreme court, short title excluding the chief justice of inaia, shall be ten maximum number of supreme court judici , other thad chief juaticlc statement of objects and reasons under article 124 of the constitution the supreme court shall consist of a chief justice and, until parliament by law prescribes a larger number, of not more than seven other judges the present strength of this court is the maximum permissible under this article and an increase in the number of judges is possible only by parliamentary legislation the chief justice of india has pointed out that in view of the larger number of constitutional appeals coming up for decision before the court it is necessary to have a constitutional bench sitting practically all the time and a constitutional bench has to have five judges in view of the requirement of article 145(3) other benches of the supreme court should ordinarily consist of a minimum of three judges, since they will generally be hearing appeals from various high courts disposed of by two or more judges the increase in the volume of work of the supreme court requires that there should be two such benches, instead of one as at present, functioning throughout the year and for this purpose three more judges require to be appointed the present bill seeks to meet this end g b pant new delhi; the 27th july, 1956 financial memorandumthis bill provides for an increase in the strength of the supreme court by three more judges the salary to be paid to each of these judges will be rupees four thousand per mensem and they will also be entitled to the use of an official residence without payment of rent under sub-paragraph (2) of paragraph 9 of part d of the second schedule to the constitution the total cost on account of these judges will, therefore, be rupees one lakh forty-four thousand per annum plus the cost of maintaining three official residences 2 the salaries, allowances and pensions payable to the judges of the supreme court of india are a charge on th6 consolidated fund of india under article 112(3) a bill to provide for an increase in the number of judges of the supreme court, excluding the chief justice the president has, in pursuance of clause (3) of article i 17 of the constitution of india, recommended to lok sabba the consideration of the bill m n kaul, secretary (shri govind bailabh pant, minister of home affairs) | Parliament_bills | cb6ee410-bc66-559a-bffe-f5da9ce39f53 |
bill no 6 of 1_ the representation of the people (amendment) bill, 1985( bill further 10 amend the representation of the people act, 19s1 be it enacted by parliament in the thirtfifth year of the republic of india as foll~ws:-1 (1) 'rhis act may be called the rel¥'esentation of the people (amendment) act, 1985 ' short title aad commencement 5 (2) it shall be deemed to have come into force on the 20th day of november, 1984 43 ot 1951 10 special prevision as to certain elections 2 in the representation of the people act;, 1951 (herejnafter referred insertion· tl) as the principal act), after lection 73, the following section shall be of dew inserted, namely~-8ection 7la "73a notwithstanding anything contained in section 73 or in any other provision of this act, with respect to the general electior for the purpo~ of constituting a new house of the people upon the expiry of the term of the house of the people in existence on the commencement of the representation of the people (amendment) actj 1965,-(a) the notification under section 73 may be issued without takin, into account the parliamentary constituencies in the state of assam and the parliamentary constituencies in the state of peujab; and(b) the election commission may take the steps in relation to elections from the parliamentary constituencies in the state of assam and the parliamentary constituencies in the state of 5 punjab separately and in such manner and on suc\1 dates as it may deem appropriate", ll ' and :t (1) the representation of the people (amendment) ordinance, savina 1984, is hereby repealed (2) notwithstanding such repeal anything done or any action taken 10 ,under the principal act, as amended by the said ordinanc,~all be deemed to have been done or taken under the principal act, as amended by tbi8 act sub-section ( 2 ) of· section 14 of the representation of the people act, 195 1 enable~ the president to call upon, by one or more notifications ' published in the gazette of india on such date or dates as may be recommelld~d by the election commission, all parliamentary constie tuendes to elect ml'mbcrs in accordance with the provisions of the said act and (-1 th2 rules and orders made thereunder for the purpose of consbtutirlg a new house of the people on the expiration of the duration of the ex:illting house or on its dissolution 2 in respect of the general election for constituting the eighth lok sabha, tne elect:on commission had recommended that the' presidential notification under section 14(2) of the representation ot the people am, 1~1 might be issued on the 20th november, 1984 callina upon all parliamentary constituencies other than those within the states of assam anq punjab to elect members in accordance with the provisions of that ad and of the rules and orders made thereunder in the case of assam, the commission felt that the revision of the electoral rolls which it had undertaken in pursuance of the undertaking given by it to the supreme court would take time and that the question of holding eiections from the parliamentary constituencies in assam could be taken up only after the completion of such revision in the case of punjab, the co~missj:ln was satisfied on the basis of the report of the chief electora1 officer, punjab and also the state government regarding the existing law and order situation in that state that elections from the c,mstituencies in that state could not be held with the rest of the country the commission accordingly decided to fix a separate programme in due course with respect to the elections from the parliamentary constituendes in assam and punjllb ·and recommended that suitable provisions might,be made in the representation of the people act, 1951 ~o provide the legal cover with regard· to the postponing ot the elections from the parliamentary constituencies in the states of assam and punjab the representation of the people (amendment) ordinance, 1984 was accordingly promulgated by the president on the 20th november, 1984 3 the \:lijl secks to replace the atoresaid ordinance new dlilhi; a k ben t~ 15th january, 1985 , a bill fqrtber to amend ~he reprelentation of the pegple act, 1951 ~ - - i (shri amok sen (mjnisl'r of law and lustke) | Parliament_bills | 80912294-6fea-5d5a-8b2a-170752a7f09c |
clause 2 of the bill provides for setting up of an electoral reforms commission it further provides that the commission shall have its own office and staff clause 5 provides for the laying of report of the commission on the table of each house of parliament and as such some expenditure will be involved in the printing etc of the sufficient number of copies of the report the bill, therefore, if enacted, will involve expenditure from the consolidated fund of india it is estimated that a non-recurring expenditure of rupees fifty crore will be involved no recurring expenditure is likely to be involved _ | Parliament_bills | 739afb9b-7213-5648-b69f-59cf0bba1b58 |
bill no 40 of 2008 the appropriation (no 2) bill, 2008 a billto authorise payment and appropriation of certain sums from and out of the consolidated fund of india for the services of the financial year 2008-09be it enacted by parliament in the fifty- ninth year of the republic of india as follows:— 1 this act may be called the appropriation ( no 2) act, 2008short title5 of 2008issue of rs 2592391,74,00,000 out of the consolidated fund of india for the year 2008-092 from and out of the consolidated fund of india there may be paid and applied sums not exceeding those specified in column 3 of the schedule amounting in the aggregate [inclusive of the sums specified in column 3 of the schedule to the appropriation (vote on account) act, 2008] to the sum of twenty-five lakhs ninety-two thousand three hundred and ninety-one crores and seventy-four lakh rupees towards defraying the several charges which will come in course of payment during the financial year 2008-09 in respect of the services specified in column 2 of the scheduleappropriation3 the sums authorised to be paid and applied from and out of the consolidated fundof india by this act shall be appropriated for the services and purposes expressed in the schedule in relation to the said year4 references to ministries or departments in the schedule are to such ministries or departments as existing immediately before the 6th december, 2007 and shall, on or after that date, be construed as references to the appropriate ministries or departments as reconstituted from time to timeconstruction of references to ministries and departments in the schedule the schedule| ( | see | sections 2, 3 and 4 ) ||---------------------------------------------------------|------------------------------------------------|---------------------------|| 1 | 2 | 3 || no | sums not exceeding | || of | services and purposes | voted by || vote | parliament | consolidated fund || rs | rs | rs || 1 | department of agriculture and cooperation | revenue || capital | 90,45,00,000 | 188,80,00,000 || 2 | department of agricultural research and | || education | revenue | 2680,00,00,000 || 3 | department of animal husbandry, dairying | || and fisheries | revenue | 1357,97,00,000 || capital | 16,00,00,000 | || 4 | atomic energy | revenue || capital | 2003,26,00,000 | 1,00,00,000 || 5 | nuclear power schemes | revenue || capital | 1526,88,00,000 | || 6 department of chemicals and petrochemicals | revenue | 296,80,00,000 || capital | 50,20,00,000 | || 7 | department of fertilisers | revenue || capital | 46,04,00,000 | 46,04,00,000 || 8 | ministry of civil aviation | revenue || capital | 171,98,00,000 | || 9 | ministry of coal | revenue || capital | 30,00,00,000 | || 10 | department of commerce | revenue || capital | 711,00,00,000 | || 11 | department of industrial policy and promotion | revenue || capital | 50,00,00,000 | || 12 | department of posts | revenue || capital | 426,61,00,000 | || 13 | department of telecommunications | revenue || capital | 200,75,00,000 | || 14 | department of information technology | revenue || capital | 99,50,00,000 | || 15 | department of consumer affairs | revenue || capital | | || 32,04,00,000 | | 32,04,00,000 || 16 | department of food and public distribution | revenue || capital | 375,45,00,000 | || 17 | ministry of corporate affairs | revenue || capital | 45,00,00,000 | || 18 | ministry of culture | revenue || capital | 46,32,00,000 | || 19 | ministry of defence | revenue || capital | 1006,68,00,000 | || 20 | defence pensions | revenue || 21 | defence services - army | revenue || 22 | defence services - navy | revenue || 23 | defence services - air force | revenue || 24 | defence ordnance factories | revenue || 25 | defence services - research and development | revenue || 26 | capital outlay on defence services | capital || 27 | ministry of development of north eastern | || region | revenue | 1327,50,00,000 || capital | 143,50,00,000 | || 28 | ministry of earth sciences | revenue || capital | 424,88,00,000 | || 29 | ministry of environment and forests | revenue || capital | 30,33,00,000 | || 30 | ministry of external affairs | revenue || capital | 845,93,00,000 | || 31 | department of economic affairs | || revenue | 4124,84,00,000 | || capital | 599,12,00,000 | || 1 | 2 | 3 ||---------------------------------------|-----------------------------------------------|--------------------|| no | sums not exceeding | || of | services and purposes | voted by || vote | parliament | consolidated fund || 32 | payments to financial institutions | revenue || capital | 2809,23,00,000 | || 33 | department of financial services | revenue || capital | 2,00,000 | || c | | || harged | | || — | interest payments | revenue || 35 | transfers to state and union territory | || governments | revenue | 52083,34,00,000 || capital | | 4867,50,00,000 || 36 | loans to government servants, etc | capital || c | | || harged | | || — | repayment of debt | capital || 38 | department of expenditure | revenue || capital | 6,00,00,000 | || 39 | pensions | revenue || 40 | indian audit and accounts department | revenue || capital | 2,95,00,000 | || 41 | department of revenue | revenue || capital | 82,00,000 | || 42 | direct taxes | revenue || capital | 203,00,00,000 | || 43 | indirect taxes | revenue || capital | 315,20,00,000 | || 44 | department of disinvestment | revenue || capital | 2330,00,00,000 | || 45 | ministry of food processing industries | revenue || capital | 44,40,00,000 | || 46 | department of health and family welfare | revenue || capital | 931,68,00,000 | || 47 | department of ayurveda, yoga and naturopathy, | || unani, siddha and homoeopathy(ayush) | revenue | 621,00,00,000 || capital | 2,00,00,000 | || 48 | department of health research | revenue || 49 | department of heavy industry | revenue || capital | 592,24,00,000 | || 50 | department of public enterprises | revenue || 51 | ministry of home affairs | revenue || capital | 70,23,00,000 | || 52 | cabinet | revenue || capital | 80,00,00,000 | || 53 | police | revenue || capital | 5344,49,00,000 | 7,05,00,000 || 54 | other expenditure of the ministry of | || home affairs | revenue | 999,03,00,000 || capital | 26,20,00,000 | || 55 | transfers to union territory | || governments | revenue | 1768,39,00,000 || capital | 72,00,00,000 | || 56 | ministry of housing and urban poverty | || alleviation | revenue | 855,00,00,000 || capital | 1,50,00,000 | || 57 | department of school education and | || literacy | revenue | 40667,00,00,000 || 58 | department of higher education | revenue || 59 | ministry of information and broadcasting | revenue || capital | 412,33,00,000 | || 60 | ministry of labour and employment | revenue || capital | 129,65,00,000 | || 61 | election commission | revenue || 62 | law and justice | revenue || capital | 3,00,000 | || c | | || harged | | || — | supreme court of india | revenue || 64 | ministry of micro, small and medium | || enterprises | revenue | 1931,11,00,000 || capital | 8,31,00,000 | || rs | rs | rs || 1 | 2 | 3 ||------------------|--------------------------------------------|--------------------|| no | sums not exceeding | || of | services and purposes | voted by || vote | parliament | consolidated fund || 65 | ministry of mines | revenue || capital | 51,80,00,000 | || 66 | ministry of minority affairs | revenue || capital | 75,00,00,000 | || 67 | ministry of new and renewable energy | revenue || capital | 30,20,00,000 | || 68 | ministry of overseas indian affairs | revenue || capital | 10,00,00,000 | || 69 | ministry of panchayati raj | revenue || 70 | ministry of parliamentary affairs | revenue || 71 | ministry of personnel, public grievances | || and pensions | revenue | 378,72,00,000 || capital | 47,01,00,000 | 9,00,00,000 || 72 | ministry of petroleum and natural gas | revenue || 73 | ministry of planning | revenue || capital | 18,00,00,000 | || 74 | ministry of power | revenue || capital | 306,56,00,000 | || c | | || harged | | || — | staff, household and allowances | || of the president | revenue | || 76 | lok sabha | revenue || 77 | rajya sabha | revenue || c | | || harged | | || — | union public service commission | revenue || 79 | secretariat of the vice-president | revenue || 80 | department of rural development | revenue || capital | 50,00,000 | || 81 | department of land resources | revenue || 82 | department of drinking water supply | revenue || 83 | department of science and technology | revenue || capital | 66,90,00,000 | || 84 | department of scientific and industrial | || research | revenue | 2071,40,00,000 || capital | 6,60,00,000 | || 85 | department of biotechnology | revenue || 86 | department of shipping | revenue || capital | 415,24,00,000 | || 87 | department of road transport and highways | revenue || capital | 13346,26,00,000 | 7,00,00,000 || 88 | ministry of social justice and empowerment | revenue || capital | 139,00,00,000 | || 89 | department of space | revenue || capital | 1779,20,00,000 | 35,00,000 || 90 | ministry of statistics and programme | || implementation | revenue | 1874,72,00,000 || capital | 24,28,00,000 | || 91 | ministry of steel | revenue || capital | 15,50,00,000 | || 92 | ministry of textiles | revenue || capital | 258,98,00,000 | || 93 | ministry of tourism | revenue || capital | 561,00,00,000 | || 94 | ministry of tribal affairs | revenue || capital | 50,01,00,000 | || 95 | andaman and nicobar islands | revenue || capital | 750,83,00,000 | || 96 | chandigarh | revenue || capital | 229,67,00,000 | 35,00,000 || 97 | dadra and nagar haveli | revenue || capital | 31,35,00,000 | || 98 | daman and diu | revenue || capital | 47,27,00,000 | || rs | rs | rs || 1 | 2 | 3 ||---------|-----------------------------------------|--------------------|| no | sums not exceeding | || of | services and purposes | voted by || vote | parliament | consolidated fund || 9 9 | lakshadweep | revenue || capital | 180,07,00,000 | || 100 | department of urban development | revenue || capital | 2019,38,00,000 | 26,00,00,000 || 101 | public works | revenue || capital | 355,18,00,000 | 1,00,00,000 || 102 | stationery and printing | revenue || capital | 13,00,000 | || 103 | ministry of water resources | revenue || capital | 109,76,00,000 | 3,00,00,000 || 104 | ministry of women and child development | revenue || 105 | ministry of youth affairs and sports | revenue || capital | 134,52,00,000 | || total | 597662,30,00,000 | 1994729,44,00,000 || rs | rs | rs | statement of objects and reasonsthis bill is introduced in pursuance of article 114(1) of the constitution of india to provide for the appropriation out of the consolidated fund of india of the moneys required to meet the expenditure charged on the consolidated fund and the grants made by lok sabha for expenditure of the central government, excluding railways, for the financial year 2008-09 p chidambaram ———— president's recommendation under article 117 of the constitution of india[copy of letter no f 2(17)-b(d)/2008 dated the 11 april, 2008 from shri p chidambaram, minister of finance to the secretary-general, lok sabha]the president, having been informed of the subject matter of the appropriation (no2) bill, 2008 to authorise payment and appropriation of certain sums from and out the consolidated fund of india for the services of the financial year 2008-2009, recommends under article 117(1) and (3) of the constitution the introduction of the appropriation (no 2) bill, 2008 in lok sabha and also the consideration of the bill lok sabha——— a billto authorise payment and appropriation of certain sums from and out of the consolidated fund of india for the services of the financial year 2008-09————(shri p chidambaram, minister of finance)mgipmrnd—1602ls(s1)—17-04-2008 | Parliament_bills | 75682919-07be-52c8-b2e7-a88c38e04e03 |
to the interests of the state that it should not be mined, the state government may with the concurrence of the central government, issue under the law relating to mining, licences to prospect that portion of the national park and if necessary issue thereafter mining certificates or mining leases in respect of that portion of the national park or of any part of that portion (3) where any mining certificate or mining lease is used in respect of any land within a national park, the holder of the certificate or the lease shall have such rights of passage, licences or other facilities as may be necessary for the, practical exercise of the rights guaranteed by such certificate or lease 10 (4) notwithstanding anything in the-law relating to mining, there shall be an implied condition in a mining certificate or mining lease issued pursuant to this section that any officer shall have such rights of entry into the land in respect of which a licence to prospect, 'a mining certificate or mining lease has been issued as may be necessary in order that he may carry out the object of this act in respect of such land of the national park generally | power | of ||--------------|-------|| 11 | || (j) | || the | || central | || government | || may | || make | || regulations, | || not | || inconsistent | || with | || this | || act, | || as | || to | || any | || or | || all | || the | || following | || matters, | || namel | || central | || government | to || make | || regulations | || (a) | || the | || exclusion | || of | || members | || of | || public | || from | || certain | || areas | || within | || a | || national | || park; | || 20 | || (b) | || the | || prohibition | || of | || the | || killing, | || maiming, | || trapping, | || capturing | || or | || impounding | || of | || any | || wild | || life | || within | || a | || national | || park | || and | || the | || disposal | || of | || such | || wild | || life | || killed, | || maimed, | || trapped, | || captured | || or | || impounded; | || (c) | || the | || prohibition | || of | || such | || animals, | || as | || may | || be | || specified, | || from | || being | || taken | || into | || or | || remaining | || within | || a | || national | || park; | || (d) the | || burning | || and | || cutting | || of | || vegetation | || within | || a | || national | || park; | || vy | || (c) | || the | || disposal | || of | || wild | || life, | || vegetation | || or | || other | || things | || formed | || within | || a | || national | || park; | || (p) | || the | || search | || of | || any | || person | || suspected | || of | || contravening | || any | || regulation | || made | || under | || this | || act; | || in | which || (g) | the || 30 | || park | or || » | || (i) | || the | || regulation | || of | || the | || conduct, | || obligation | || and | || duties | || of | || persons | || residing | || or | || travelling | || or | || camping | || in | || a | || national | || park | || and | || the | || safety | || of | || persons | || visiting | || such | || park | || and | || their | || liability | || for | || all | || reasonable | || expenses | || incurred | || in | || connection | || with | || searches | || to | || find | || persons | || who | || have | || become | || or | || are | || reasonably | || believed | || to | || have | || become | || lost | || therein; | |(i) the fees for the issue of permits to enter into or camps within a national park, for the admission of vehicles into and the taking of photographs within a national park or for the services connected with the use of enjoyment of a national park; 40(j) the protection, preservation and care of a national park and of permanent works and works of maintenance and of facilities and amenities and of wild life, and regulation and features of science, and scientific or historical interest therein; (k) the regulation of traffic and carriage of passengers within a national park; (0) the seizure and disposal of any vehicle, vessel, animal or other article or thing in respect of which there is a contravention of any regulation made under this act; (m) penalties in respect of the contravention of any regulation made under this act; (n) the construction and maintenance of hotels, rest houses, dwelling houses, buildings and works of public utility; (0) the powers and duties of officers in relation to the carrying out of the provisions of this act and regulations made thereunder; (p) the procedure to be adopted by the national parks committees at their meetings and the remuneration or allowances to be paid to members thereof and (q) such other matters as the central government may consider necessary for the efficient control and management of a national park or for the attainment of the object of its establishment (2) the central government may make different regulations under sub-section (1) of this section in respect of different national parks statement of objects and reasonsthe object of the establishment of national parks is the preservation and protection of wild life, plant life and objects of geological, archaeological, historical and other scientific and scenic interest and through their conservation and utilization to promote the education, health, aesthetic values of recreation of the people recently many tigers, leopards and other animals died in many zoos for want of proper and adequate facilities therefore, there is an urgent need to protect the animals and environment hence this bill new deu, subodh mohite november 6, 2000: financial memorandumclause 4 of the bill provides for the formation of a national parks advisory council; clause 6 provides for formation of a committee for cach national park; and clause 7 provides for appointment of a director-general of wild life and national parks and such other officers and employees as may be necessary payment of travelling allowance, etc to members of the advisory council and national park commitices, and salaries to director- general and other officers is likely to involve an annual recurring expenditure of about rupees one crore from the consolidated fund of india an amount of about rs 2 crore will also be involved from the consolidated fund of india towards non-recurring expenditure memorandum regarding delegated legislationunder clause 10(1), state governments are empowered to prescribe conditions and restrictions to be imposed on leasing out land in national parks under clause 11, the central government may make regulations for certain matters given under that section, since the regulations to be made will provide for matters of detail only, the delegation of legislative power is of a normal character | Parliament_bills | 81c548e1-0a13-584f-b563-c211646b82dd |
the cin& wjrkers \nd cinema theatre im)rksrs (regulation of employment) bill, 1981(to be/as introdilced in 10k sabha~ 1 page (i), against 'clause no6,-fol: "shall" occurring at both the places read' "to" 2 page ·4, line 49,-after "as" insert "may" 3 page 5~ in the marginal heading to clause 6,-!q1: "shall" occurring at both the places '~ "to" 4 page 5, line 1',-w ,"or qualified" mad "0 r is qualified" 5 page 12, line 14 from bottom,- fqr iiconciliaion" ~ "con'cilia tion" new delhi; , bid no, 124 gf 1181 fi ,1 i eie cine-workeas and cinema thea11te wd~ers (regulation of employment) bill, 1981 arrangement of clauses chapter i -u17sbs1 short title, extent and comme~cempnt 2 definitions chapter ii rl:gulation of employment of cine-workbrs3 prohibition of employment of cine-worker without agreement 4 conciliation officers it duties of conciliation officers 6 settlement shall be binding and shall be enforced by the competent authority 7 constitution of tribunals 8 disqualification for the presiding officers df tribunals 9 fillfng of vacancies 10 finality of orders constituting tribunals, etc 11 reference of disputes to tribunals 12 procedure and t;?owers of conciuatlon of'bcers anc! tribunals 13 duties of tribunals 14 publication of awards of tribunals 15 revision 16 application of act 19 of 1952 to cine-workers 17 penalties 18 offences by companies clauses19 cognizance of offences 20 magistrate's power to impose enhanced penalties 21 effect of laws and agreements inconsistent with this chapter , 22 protection of action taken under this chapter 23 power to exempt in special cases 24 power te make rules chapter iii luaulatiolf of d4l"loyment ar cnn:ma thza'l"d woiikd825 application of act 19 of 1952 26 application of act 39 of 1972 (regulation of employment) bill, 1981 billto provide for the regulation of the conditidnb of employment 01 certain cine-workers and cinema theatre worker, cmc:e for matters connected therewith be it enacted by parliament in tj:1e thirty-second year of the republic of india as follows:- chapter i preliminary5 1 (1) this act may be called the cine-workers and cinema sharum theatre workers (regulation of employment) act, 1981 extent ad coiddl8dee (2) it extends to the whole of india medt (3) it shan corne into force on such date as the central government may, by notification in the official gazette, appoint; 10 and different dates may be appointed for di1!erent provisions of this act and for different areas z in this act, unless the aontext otherwise requires,-deftnitions (a) "cinema theatre" means a place which is licenaed under part iii of the cinematograph act, 1952, or under 37 of 1_ any other law for the time being in force in a state for the exhibition of n cinematograph film; s (b) "cinematograph film" has the same meaning as in the cinematograph act, 1952; 37 ot 1_ (c) "cine-worker" means an individual-(i) who is employed, directly or through any cod-tractor or other person, in or in connection with the 10 production of a feature film to work as an artiste (including actor, musician or dancer) or to do any work, skilled, unskilled, manual, supervisory, technical, artistic or otherwise; and (ii) whose remuneration with respect to such is employment in or in connection with the production of such feature film does not exceed, where such remuderation is by way of monthly wages, a sum of one thousand rupees per month, and where such remuneration is by way of a lump sum, a sum of five thousand2o rupees; (d) "competent authority" means any authority authorised by the central government by notulcation in the official gazette to /perform all or any of the functions of the competent authority unner this act; gs (e) "contractor" means a person who furnishes or undertakes 'to furnish cine-workers for being employed in or in ,connection with the production of a feature ft1m, and includes a sub-contractor or agent; (j) "feature film" means a full length cinematograph 30 film produced wholly or partly in india with a format and a story woven around a number of characters where the plot is revealed mainly through dialogues and not wholly through narration, animation or cartoon depiction, and doe8 not include an advertisement film; 3s (g) "prescribed" means prescribed by rules made under this act; (h) "producer", in relation to a feature film, mean: the person by whom the arrangements necessary for the malting of such film (including the raising of finances and eil- 40 gaging cine-workers for the making of such fum) are undertaken; (~) "production", in relation to a feature film, includes any of the activities in respect of the making thereof; i (j) "tribunal" means a cine-workers tribunal const!- 4' tuted under section 7; (k) "wages" means all emoluments which are payable to a worker jn accordance with the terms of the contrut of' employment in cash, but does not include-(i) the' cash value of any foocl eonc!els'iod; (ii) any dearness allowance (that is to say, all cash 'payments, by whatever name called, ~aid to a worker on account of a rise in the cost of living or on account of his being required to work in a place other than the 5 place where he is normally residing), house rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the worker in respect of his employment or of work done in such employment; 10 (iii) any contribution paid or payable by the employer to any i?ension fund or provident fund or for the benefit of the worker under any law for the time being in force; (iv) any gratuity payable on the termination of is his contract chapter n regulation of employment of cine-woilkbrs3, (1) no person shall be employed as a cine-worker in or in connection with the production of any ,feature 1lhn unless,-prohi1ition of employment of cine-worker without agreement 20 (0) an agreement in writing is entered into with such person by the producer of s'uch film; or, where such penon is employed through a contractor or other person, by the , producer of such film and such contractor or other person; and 2s (b) such agreement is registered with the competent authority by t~e producer of such film (2) every agreement, referred to in sub-section (1) shall,-(0) be in the prescribed form; (b) specify the name of and such other partlculan u may be prescribed with respect to, the person to whose employment it relates (hereafter in this sub-eection referred to as the employee); 3s (c) specify the nature of assignment of the employee, his hours of work, the wages and other benefits (including benefits by way of provident fund, if any), to which he is entitled; the mode of payment of such wages and contribu-,tions to such provldent fund and all other terms and conditions of employment; , 45 (d) include, where such employee is employed through a contractor or other person, a specific condition to the eftect that in the event of the contractor or other person failing to discharge his obligations under the agreement to the employee with respect to payment of wages or any other matter, the producer of the film concerned shall be liable to discharge such obligations and shall be entitled to ,-be reimbursed with respect thereto by the contractor, or other person (3) a copy of the agreement referred to in "sub-aeetion (1) with respect to the employment of any person 8s a cineworker shall, if such person is entitled to the benefits of provident tund under secuon lti, also be 1orwarc1ed by tne pl"ouucer of the blm to the j:teglonal provident }4~wld commissioner cod-cerned under the ~mployees' provlaellt ~'unds ana miscellaneous provlblons act, 1952 4 the central government may, by notifieatiod in the offimal lfazette, appolilt sucn number of persons as i\ thidka at to be concu18tlon olllcers cnarged wltn tne duty of meolatmg and promoung the settlement of any diipute (heremafwr re1erred to as the dispute) between a cme-worlter ana the pro- 10 dueer of tbe tilm in, or in connection wnb, wblcb he has been empjoyed or the contractor or otner persoll ~nrougb whom he bas deen so employed, with respect to tne terms and conditi0d8 or termmauon, 01 employment of such cme-wor:ker i (1) where any dispute exists or is appreilended the cod- 15 ciliatiod otticer may bola concwanon pl'oceedlngs in the prescribed madder (2) the conciliatiod officer sball, for the purpose of bridjing about a settlement of the dlspute, without ae!ay, lilvestigate tne 20 wspute and au matters atlectmg the merits ana the rlgnt settlement l1lereof and may cw all such ttungs at; he ~ iit jar tue purpose 01 induclilg the partles to come to a fair and amicadle settlement of the ~pute (3) if a settlement 01 the c;iispute or of any of the ma~ers 25 in chspute is arrived at in the course of the conciliation proceedings, the conciliation officer shall send a report thereot to the central government together with a memoramrum of the settlement slgned by the parties to the dispute (4) if no such setuement is arrived at, the conciliation officer 30 shall, as soon as practicable, after the close of the investigation send to the central government a full report setting forth the jteps taken by him for ascertaining the facts a1u\ circumstances relating to the dispute and for bridging about a settlement thereof, together with a full statement of such facta and dr- 3s eumstances and the reasons on account of which, in his opinion, a settlement could dot be arrived at (s) if, od a constderation of the report reierred to in subsection' (4), the central government is satisfied that thel'e ia a 40 case for reference to a tribunal, it may make such reference under section 11 anc\ where that government does dot make ituch a reference, it shall record and communicnte to the parties concerned its reasona therefor (6) a report under this section shall be submitted within 4s three months of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the central government: provided that, subject to the approval of the conciliation 50 ofti~' the ti~e for the submission of the report may be extended by h penod as i,_ti be agreed upon in writing by an the parti~ 0 the dispu\tlit t every settlement arrived at in the course of a conciliation proceeding under this chapter snall be binding on all the parties to the diapute and shall not be called in question in any court and it shall be the duty of the competent authority to 5 enforce the terms of the said settlement s,ettlement shall be bincijne and shau be enforced by the competent· aufihority constitution of tribunals '1 (1) the central govemment may, by notification in the 0ileia1 guette, constitute one or more tribunals, to be caned the cbae-workers tribunals, with headquarters at such place as may he speci1ied 1n the notification, for the adjudication ot i 0 disputes relating to any matter speeiled in , a,reemedt of the nature referred to in section 3 (2) a tribunal shall consist of one person only to be appointed by the central govemment (3) a person shall not be qualified for appointment as the 15 presiding officer of a trib1dlal unless-(a) he is, or has been, or qualified to be, a judge of a high court; or (ib) he has, for a period of not less than three years, heen a district judge or an additional district judce; or 20 (c) he has held the oftlce of the presiding oflleer of 1 of in7 an iddustrlal tribunal constituted under the industrial disputes act, 1947, for a period of not less than two years (4) '1'he central government may, if it so thinks fit, appoint two persons as assessors to advise the tribunal in any proceed-ings before it 25 s no person shall be :'li'lpointed to or rotltlnue in, the offtce of the presiding officer of a tribunal if-disqualmcation for the presiding ofb-cers of trl bunal • (a) he is not an fndmendent person; or (b) he has attained the age of sixty-five years filling of vaeanci • finality of orden ~ tutin, tribunals, etc 30 9 if, for any reason, a vacancy (other than a temporarv absence) occurs in the office of the nrpsi('hn~ officet' of a tri-hunal the central government shall anpoint anl')ther per!!on in accortfllnce with the provisions of this act to fill the vacl'lncv, rnd the "roceedin~ mav be c(')ntinue~ before the tribunal from - the stat;!e at which the vacancy is filled 3~ 10, (1) no order of the central sovernment qn'dointing any person as the presidin~ offieer of a tribunal sbslll de! called in (fueo!iltfon in anv manner; and no act or proceedinl! before any trihunal shall be called in question in gnv manner on the ~ m'ound merely of any defect in the constitution of such tri-40 bunal -refereace of dispute to tribudals (2) no settlflm'1ent arriveri at in the roursp of a concilfatfon p1"o"eeriing shall be invaliri hv remon onlv of th", fact tllal ~eh settlement was arrived at after the expiry cit the period referred to in sub-section (6) of section 5 45 11 (n where on a ('n"si~erqtion (')1 the remrt referred to fn ~'nb~ertfon (4) of section 5 the centt-al gnvemment is satfsaed that it is nece"ssarv so to do it may, bv order in w"ittn~, refer the dispute or any matter apnearinlt to be connected with, or relevant to, the d:ls-pute, to a 't'rlbunal for a"rijudicatfon so (!) where in an order ref~rred tp in ~ub-sectton (1) of in a ii\1bsequent order, the central government has ~ectftect the pemts of dispute for adjudication, the tribunal shall conftne ita adjudication to those points and matters incidental thereto procedure and powers of ooncntation oftlcers add tribunals i of 1908 12 (1) subject to any rules that may be made in this behalf, a conciliation officer or a tribunal shall follow such procedure s as the officer or tribunal may think fit (2) a conciliation officer or a tribunal may, for the purpose of inquiry into any existing or apprehenried dispute, after giving reasonable notice, enter any premises 1n the ooc1lqation of iatiy party to the dispate r 0 (3) every ti:ibunal shall have the same powers as a~ vested in 8 civil court under the code of civil procedure, 1908, when trying a suit, in respect of the following mattel'j· namely:-(a) enforcing the attendance of any penon anoaa" 15 mining him on oath i (b) compelling the production of doeumentl' 8iici m,aterial objects; (c) issuing commissions for the examination of· witnesses; and ~o (d} in respect of such other matters as may be prescribed; and every inquiry or investigation by a tribunal shall be deemed to be a judicial· p1:oceeding within the meanlng of 45 ell 1880 sections 193 and 228 of the indian penal code and the tribunal 25 shall be neemed to be a civil court for the purposes of section 195 and chapter xxvi of the code of criminal procedure, 2 of 1174 1973 (4) a conciliation officer may call for and inspect any document which he has ground for considering to be relevant to 30 the dispute or to be necessary for the purpose of verifying the implementation of any award or carrying out any other duty imposeit on him under this chapter, and for the aforesaid t;lurposes, the conciliation officer shall have the same powers as are vested in a civil court under the code of civil proce- 35 dure, 1908, in respect of compelling the pl'oduction of doeu-5 of ::908 menta (5)· a tribunal may, if it so thinks fit, aopoint one or more persons having special knowledge of the matter under eonsi- j;;:j ~eration as assessor or asseasors to advise it in the pl'oceeding 40 befoile ft (6) a tribunal may grant to anv party to any pl'oceedfi1g' before· it, such interim or other reliefs (whether subject to any c~djtions or not), including stay of any order, issue of· any injunction or direction in re~ard to "ayment of wages or other 45 amounts payable under the a~eement referred to in section· 3, settin~ aside any unilateral termination of contract or the ·drsmissal of a worker or reinstating a worker, as it deems· just and proper in the circumstances of the case: provided that the tribunal shall not grant any such interim 50 relief unless all the parties to the proceeding have been served with a· notf~e on the application for such interim reuef and have been give~ a rc~onable opportunity of bei"g heard; , provided further that the tribunal may, having regard to 'the nature of the interim relief sought and the circumstances pf the case, pass appropriate orders granting such interim relief as it· deems just and proper in the circumstances of the case s before-the notice referred to in the preceding proviso is served on the parties to the proceeding: provided also that where the tribunal makes any order under thp proviso immediately preceding, it shall record the reasons fl)r making the order befol'e complying with the re-10 quirements specified in the first proviso (7) subject to any rules that may be made in this behai:t, the awarding of damages in, and the costs of, and incidental to, any proceeding before a tribunal shall be in the discretion of that tribunal and the tribunal shall have full power to determine is by and to whom and to what extent and subject to what conditions, if any, such damages or costs are to be paid, and to give all necessary directions for the purposes aforesaid and such damages or costs' may, on an application made to the central government by the person entitled, be directed j2(j) to be recovered by that government in the same manner as an arrear of land revenue duties of tribunals 13, where a dispute has been referred to a tribunal tor adjudication, it shall hold its prqceedings expeditiously and shall submit its award to the central government ordinarily 5 within a period of three months from the date on which sucii publication of awards of tribunals 2 industrial dispute is referred to it: provided that in computing the period of three months under this section, the period for which the proceeaings before the tribunal have been stayed by any injunction or order shall 30 be excluded 14 (1) every award of a tribunal shall, within a period of thirty days from the date of its receipt by the central government, be published in such manner as that government thinks fit (2) subject to the provisions of section 15, the award shall 35 be final and binding on all the parties to the dispute and shall not be called in question in any court in any manner whatsoever (3) the award of a tribunal shall be executed in the same 40 manner as it it were a decree of a civil court 15 (1) the high court may, on the application of any revision person aggrieved by the award of a tribunal, call for and examine the record of the tribunal, to satisfy itself as to the regularity of the proceeding before such tribunal or the correctness, legality or propriety of any awar~ passed therein and if, 4,5 in any case, it appears to the high court that any such award should be modified, annulled or reversed, it may pass such orders accordingly: providpd that where the presiding officer of the tribunal is a judge of a high court, such application shall be heard 50 and disposed of by not less than two judges of the high court: provided further that where the award of the tribunal -provides for the payment by the producer of any fum or, 88 the ~ase may be, the contractor or other person of anyamowlt either by· way 'of compensation to the cine-worker or by way 'of damages, no such application by the produ~er, contractor (jr 5 other person sholl be entertained by the high court unless the applicant deposits with the high court or with such ot~er t:uthority as may be prescribed the amount ordered to be patd: provided also that where, in any particular case, the high court is of opinion that the deposit of any amount j 0 erdered to be paid would cause undue hardship to the applicant, the high co"jrt may dispense with such deposit subject to such conditions as it may deem fit to impose 80 as to safeguard the interests of the cine-worker concerned (2) every application to the high court under bub-section is (1) shall be preferred within ninety days from the date on which the award was passed b~ the tribunal: provided that the high court· may, in its discretion, allow further time not exceeding one month for the filing of any such application, if it is satisfied that the applicant had sum- ito cient cause f01; not preferring the application within the time specified in this sub-section (3) in this section, "high court" means the high court within the local limits of whose jurisdiction, the headquarters of the tribunal is situated, 1t5 application of act 19 of 1952 to cineworkers 16 the employees' provident funds and miscellaneous provisions act, 1952, as in force for the time being, shall apply to every cine-worker who has worked in not less than five feature films with one or more producers,as if such cine-worker were an employee within the meaning of that 30 act pemtltles 17 (1) whoever contravenes the provisions of section 3 shall be punishable with fine wh~h shall not be less than ten thousand rupees but which may extend to fifty thousand rupees: 35 provided that the court may, for any adequate and special reasons to be mentioned in the judgment, impose a fine of less than ten thousand rupees (2) where any person convicted of an offence under subsection (1) is again convicted of an offence under the same 40 provision, he shall be punishable with fine which ·shall not be less than twenty thousand rupees but which may extend to one lakh rupees: provided that the court may, for any adequate and special reasons to be: mentioned in the judgment, impose a fine of le8845 than twenty thousand rupees· o1!ences by companies 18 (1) where an offence under this act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for tbe co$ct of the business of the company, asweu 50 as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: provided that nothing contained in this sub·section shall render any such person liable to any punishment if he proves 5 that the offence was committed without his knowledge or that he had exercised 'all due diligence to prevent the commission of such offence _ (2) notwithstanding anything contained in sub--section (1), wnere auy oftmce under this act has been committed by a 10 company and it is proved that the offence has been committed wi'th the consent or connivance of, or '; attributable to any neglect on the part of, any director, manager, secretary ot other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and 15 shall be liable to' be proceeded against and punished accordingly explanation-for the purposes of this section,-(a) "company" means any body corporate and includes a firm or other associ'ation of individuals; and !20 (b) "director", in relation to a firm, means a partner in the firm cognizance of offences 18 no court shall take cognizance of any offence under this act except on a complaint made by or with the permission in writing of, the central government or an officer empowered !25 by it in this behalf and no court inferior to that of a metropolitan magistrate or a judicial mag:strate of the first class shall try an offence punishable under thi~ act magistrate's power to im pose enhanced penalties 20 notwithstanding anythin~ contained in section 29 of the code of criminal pro~edure 1973 it shall be lawful for any 30 metropolitan magistrate or any judicial ma~strate of the first class to pass any sentence authorised by this act effect of baw8 and agreements inconsistent with thic; chapter; protection of action taken under this chapter 21 the provisions of this chapter shall have effect n9twith" standing anything inconsistent therewith contained in any other law tor the time being in force or in the terms of any 35 agreement ~r contract of service n (1) no spit, prosecution or other legal proceedings shall he against any competent authority, conciliation officer, or any other employee of the central government or the presiding officer of a tribunal, tor anything which is in good 'faith done, 40 or intended to be done, in pursuance of this act or any rule or order made thereunder (2) no sui't or other legal proceedings shall lie against the central government for any damage caused or likely to be caused by anything which is in good falth done or intended to be done in pursuance of this act or any rule or notification 45 or order made or issued thereunder 23 (1) the central government may, by notificatfon in the official gazette, and subject to such conditions and restrictions, power to exempt in specra! cases power too make rules if any, and for such period or periods as may ~ specified i~ the notification direct that all or any of the provisions· of this chapter or the'rules 'made thereunder shall not apply to, or in relation to any class of cine-workers or the production of any feature fil~ if that government is satisfied that it is just and 5 proper so to do having regard to the contents of any feature film or the objects for which such film is produced and all other relevant circumstances (2) every notification issued under sub-section (1) shall, as soon as may be, s'fter it is issued, be laid before each house cff' 10 parliament 24 (1) the central government may, by notification in the official gazette, make rules for carrying out the provisiollts of this chapter (2) in particular, and without prejudice to the gnerality 15 of the foregoing power, such rules may provide for all or any of the following matters, namely:-(a) the form in which an agreement may be entered into by a producer with a cine-worker under section 3 and the other conditions of employment; 20 (b) the manner in which proceedings may be helel bya conciliation officer under sub-section (1) of section 5; (e) the procedure to be followed by a concilfation officer or tribunal under section 12; (d) the matters referred to in clause (d) of sub-section 25 (3) of section 12; (e) the damages or costs that may be awarded by a tribunal under sub-section (7) of section 12; (f) any other matter which is required to be, or may be, prescribed 3') (3) every rule made by the central government under this chapter 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 may be comprised in one sessfon or in two or more successive sessions,· and if, before the expiry of the 35 sess;on immediately followi'ng the session or the successive sessions aforesaid, both houses agree in making any modification in the rule or both houses agree that the ruie should not be made, the rule shall thereafter have effect only in such modifled forin or be of no effect, as the case may be; so, however that¥> any such modific'btion or annulment shall be without prejudice to the validity of anything previously ~one under that rule chapter m regulation of' e:mployment of cinema 'l'\heatre workers25 the proviosions of the employees' provt'dent funds and 45 miscellaneous provisions act, 1952; as in force for the time being, shall apply to every cinema theatre in which five or more workers are employed <m any day, as i'f such cinema theatre application of act 190f 1952 were an establishment to which the aforesaid act had been applied by a notification of the central government under subsection (3) of section 1 thereof, and as if each such worker were an employee within the meaning of that act 5 26 the provisions of the payment of gratuity act, 1972, as application of in force for the time being, shall apply to and in relation to, act 39 of urn every worker employed in a cinema theatre in which five or more workers are employed or were employed on any day of to the preceding twelve months, as they apply to, or in relatioll to, employees within the meaning of that act statement of objects and reasonsexisting labour laws do not provide necessary safeguards to low paid artistes and technicians engaged in the production of feature ftlms with regard to their terms and conditions of employment, payment of wages and provision at other amenities employees of cinema theatres are generally not provided with facilities, such as, gratuity and provident fund it is, therefore, ~roposed to make suitable provisions with respect to these matters the following are the salient features of the bill:-(i) the bill would cover all cine-workers as defined therein, ie, an individual who i~ employed directly or through any contractor or other person in, or in connection with, the production of a feature film to work as an artiste and whose remuneration with respect to such employment does not exceed, where such remuneration is by way of monthly wages, a ·sum of one tho'usand rupees per month and where such remuneration is by way of a lump sum, a sum of five thousand rupees (ii) every producer of a feature film, before engaging cineworkers mentioned above, will be requirea to enter into a written agreement with each one of them in the prescribed form and the agreement shall be registered with the competent authority notified under the law and where the worker is entitled to the benefits of provident fund under the proposed legislation, a copy of such agreement should also be ceposited with the regional provident fund commissioner concerned where the cine-workers are engaged through a contractor or other person, the agreement will have to be executed by the prot:iucer and such contractor or olher person (iii) a dispute could be raised by the affected workman in case of breach of any of the terms and conditions of the agreement with the conciliation officer in the state in the event df the parties failing to arrive at a settlement, the conciliaion officer will report to the central government about the failure to arrive at a settlement and the central government may refer the dispute to single member cine-workers tribunals constituted under the law subject to revision by the high court, the awards of the tribunal will be final if any settlement is arrived at before the conciliation officer, it shall be binding on the parties to the dispute the above procedure for the raising of disputes closely follows the provisions of the industrial disputes act, 1947 (it') as the object of the legislation is to ensure that the cineworker is protected from exploitation as regards the terms and conditions of employment without imposing on this creative industry too harsh a set of regulations, penalties are proposed only in cases where \producer of - feature film fails ~ reglsler the agreement ei1tered into with a worker or when he takes work from a workei without executing an agreement (v) it is proposed to apply the employees' provident funds and miscellaneous provisions act, 1952, to such cine-workers as have completed assignments in five feature films w~th one or more different producers as -1'egal"ds -employees of cinema theatres, it is proposed to make the ppo\'isions of the payment of gratuity act, '1972, and the· employees' pmvident funds and milcellaneous provisions act, 1952, applicable to the -employees ef cinema theatres in which five or more persons are employed the bill seeks to achieve the above objects --new delhi; v asant sathe the 14th september, 1981 president's recommendation under article 117, of the constitution of india-[copy of letter no 313174-fpc vol iv, dated the 3rd august, 1981 from shri vasant sathe, minister of information ana broadcasting to the secretary, lok sabha] the president, having been informed of the subject matter at the cine-workers and cinema theatre workers (regulation of employment) bill, 1981, hereby recommends under article 117 (3) of the constitution, the consideration by lok sabha of the said bill sub-clause (1) of clause 3 of the bill requires the producer of a feature fum to enter into an agreement with a cine-worker and to register the same with the competent authority before such cine-worker is employed by the producer to work in the feature film "competent authority" has been defined in subclause (d) of clause 2 of the bill to mean any authority authorised by the central government by notification in the official gazette to perform all or any of the functions of the competent authority under the provisions of the bill it is proposed to entrust this function to the central labour commissioner in the state concerned as such, no additional expenditure is likely to be involved under this provision 2 clause 4 enables the central govemmentto appoint such number of persons as it thfuks fit to be conciliation officers charged with the duty of mediating in, and promoting the settlement of, any dispute which is connected with the terms and conditions of employment of a cin~worker it is proposed to appoint the conciliation officers appointed under the indus trial disputes act as conciliation officers for the purposes of the proposed bill also no additional expenditure is, therefore, likely to be incurred by the appointment of conciliation officer under the provisions of the bill 3 clause 7 empowers the central government to constitute one or more cine-workers tribunals for the adjudication of disputes relating to any matter specified in any agreement of the nature ~eferred to in clause 3 of the bill it is proposed to appoint such tribunals at bombay, calcutta, madras and bangalore in the first instance and at such other places as may be decided by the central government from time to time the tribunal ~hau consist of only one person as the presiding officer the tribunal will, however, have its own s1l::eleton staff it is estimated that this provision will require an expenditure of rs 80,000 as non-recurring and rs 4,82,400 as recurring 4 the bill does not involve any other expenditure whether of a recurring or non-recurring nature memorandum regarding delegated legislationclause 24 of the bill empowers the central government to make rules for carrying out the provisions of chapter ii of the bill, which provides for the regulation of employment of cine-workers the matters in respect of which such rules may be made are specified in that cls:use they, intler alia, relate to the form in which an agreement may be entered into by a producer with a cine-worker, the'manjler in which proceedings may be held by a conciliation ofticer and the pr0-cedure to be followed by him or the cine-workers tribunals and certain other matters the matters with respect to which rules may be made are matters of procedure or detail 2 the delegation of legislative power is, therefore, of a normal character a billto provide for the regulation of the conditions of einployment of certain cine-workers and cinema theatre workert and for matters conn~ted therewith | Parliament_bills | d0431a3e-dc86-53bf-906d-eecc96fb16a4 |
bill no 176 of 2017 the code of criminal procedure (amendment) bill, 2017 byshri dushyant chautala, mpa billfurther to amend the code of criminal procedure, 1973be it enacted by parliament in the sixty-eighth year of the republic of india as follows:—1 (1) this act may be called the code of criminal procedure (amendment) act, 2017 statement of objects and reasonswhen an information regarding the commission of cognizable offence, commonly known as first information report (fir), is given under section 154 of the code of criminal procedure, 1973 (cr pc), sub-section (2) of the same mandates the police authorities that a copy of such information should be supplied to the informant as well free of cost however, the code lacks any provision which bestows the same right upon an accused/suspect or his authorized representative in order to get the copy of fir after its registration with or without any costalthough section 207 of cr pc requires the concerned magistrate to furnish a copy of the fir to the accused but the provisions of section 207 come into play only after the filing of charge sheet under section 173 cr pc similarly, a combined reading of sub-sections (5) and (7) of section 173 of the cr pc also shows that after filing of the charge sheet, the police may also supply copy of the fir to the accused person along with other papers of the charge sheet however, the expression under sub-section (7) of section 173 cr pc "the police officer investigating the case finds it convenient so to do, he may furnish to the accused copies" also conveys a mere directory order to the investigative authorities to provide the copy of the fir to the accused or his representative, thereby again leaving discretion in their hands and the accused/suspect at their mercy on a plain reading of the statute, it is clear that the provisions of sections 207 and 173 of the cr pc are attracted only after filing of the charge sheet by the police there is no specific provision in the cr pc requiring the supply of the fir to the accused person or his authorized representative before the filing of the charge sheet and after the registration of firthe above lacuna in the statute, has led to various untoward circumstances where the police officials have summoned or in many cases even arrested the suspect/accused at the police station and kept them locked or bound within the police station on the pretense that there has been an fir filed against them, but seldom do they disclose the contents of that fir this leads to unnecessary harassment of the public and disproportionate allocation of power in the hands of the investigative agency leading to corruption and persecutionthere are several judgment of various high courts holding that fir is a "public document" within the meaning of section 74 of the evidence act, 1872 therefore, as required under the provisions of section 76 of the that act, certified copy of the fir has to be given to the accused person on his request on payment of the applicable legal fees by every public officer (such as the officer in charge of the police station) having the custody of such document in this regard, there is decision of the allahabad high court in shyam lal vs state of up, 1998 cri lj 2879 which said that " first information report is a public document and any person is entitled to have its certified copy either from the police authorities and/or from any court where it is lying if a person files an application and prepared to pay the proper court fee in such an event no authority can refuse supplying the certified copy of the first information report" and other similar judgments from the high courts of different states like decision of the karnataka high court in chnnappa andanappa siddareddy vs state, 1980 crl lj 1022; decision of the bombay high court in mohammed khalid shaikh v state of maharashtra [criminal application no 709 of 2010 decided on 4 march 2010]; decision of the delhi high court in court on its own motion through mr ajay choudhary vs state [wp (crl) no 468/2010 decided on 6 december 2010]however, no such provision has been provided explicitly in any statute and there is no decision of the supreme court available completely adjudicating on this issue leading to a divided opinion of various investigative agencies and lower courts in different states adding upto the adversities of an accused moreover even if the high court of a certain state has provided a judgment in favour of such issue, execution of such judgment without any written provision becomes a difficult task for the common public especially those who are poor and illiterate if the police authorities and lower courts do not provide them any assistance this is again leaving the common man at the mercy of the authorities adding to his woes moreover the payment of required legal fees under section 76 of the indian evidence act, 1872, further acts as a burden to an accused or his authorized representative who cannot afford to pay such fees in the present scenario, the only option which is available with the accused or his authorized representative to get a copy of fir is either to bribe the police officials in order to get a copy or pay some fees (bribe) to the staff working in the court of magistrate therefore, such a change in the justice system is the demand of the time to also bring the much needed "transparency in administration of criminal justice"recently the supreme court, in a judgment arising out of public interest litigation filed by the uttarakhand based youth bar association of india on the same issue, has accepted the fact that "it is vitally necessary that an accused person should be granted a copy of the first information at the earliest possible state in order that he may get the benefit of legal advice" and directed all the states to upload the firs on the official police websites of different states within 24 hours of their registration but again the execution of such direction in different states is yet to be followed especially in small and poor states who hardly have the staff and resources moreover, in a country where majority of the population is illiterate and poor, the availability of firs online hardly seems to be a workable solution since it won't be accessible to all and therefore requires a statutory provisionaccording to a news report carried on by the national social watch, a network of civil society organization in 2013, about three fourths of the total prisoners in indian prisons are under-trials and according to the national crime records bureau report for 2015, the occupancy rate at the all india level in indian prisons at the end of 2015 was 1144 per cent and almost seventy per cent of the convicts were illiterate in a scenario like this it is clear that majority of the prison inmates have no clue as to why they are in the prisons and they have been languishing in there for years, some of them even convicted, without even knowing and understanding the charges against them which goes against the spirit of fundamental rights of the accusedin 1997, a judgment in the case of dk basu vs state of west bengal changed the course of indian criminal justice system by providing certain basic rights to the accused so that they are not tormented by the system and this bill aims to seek the same remarkable feat by allowing the accused or his authorized representative access to fir on demand as a right which is a valuable document in respect of information not just for the complainant but for the accused as well since it allows him to prepare for a more informed defence which is essential for a fair trialindia being a developing country, majority of its population still consist of people who are illiterate and poor in case, if any such common man is accused of a crime and is deprived of the basic and document fir which would inform him of what he has been accused of and prepare him for the upcoming actions, it amounts to a clear victimization of the common man at the hands of the justice system and leads to violate the human rights of an accusedin order to improve the above mentioned conditions, we need to rectify and accommodate the term 'fir' with due precision in section 154(2) of cr pc which adherently gives right to the accused or his authorized representative to get a copy of fir on demand without any delay and before the stage of filing the charge sheet which will make the due process of law easier and fairer even on behalf of the accusedhence this billnew delhi;dushyant chautalajuly 07, 2017 annexure extracts from the code of criminal procedure, 1973 (act no 2 of 1974) 154 (1) information in cognizable cases(2) a copy of the information as recorded under sub-section (1) shall be given forthwith, free of cost, to the informant(3) lok sabha———— a billfurther to amend the code of criminal procedure, 1973————(shri dushyant chautala, mp)gmgipmrnd—2140ls(s3)—13-10-2017 | Parliament_bills | 08c855ad-d70d-5f06-ac77-f59f87c15e6a |
bill no 244 of 2017 the constitution (amendment) bill, 2017 by shri jagdambika pal, mp a billfurther to amend the constitution of indiabe it enacted by parliament in the sixty-eighth year of the republic of india as follows:—amendment of article 3242 in article 324 of the constitution, in clause (5),—(a) the words ''the election commissioners and'' shall be omitted;5(b) in the first proviso for the words ''the chief election commissioner'' at both the places, the words ''chief election commissioner and any other election commissioner'' shall be substituted; and(c) in the second proviso the words ''other election commissioner or a'' shall be omitted statement of objects and reasonsarticle 324(5) of the constitution intends to ensure the independence of the election commission of india (eci) and free it from external or political interference and thus expressly provides that the removal of the chief election commission (cec) from office shall be on ''like manner and on the like grounds as a judge of the supreme court" nevertheless, a similar impeachment procedure is not prescribed for the other election commissioners under article 324(5), and they are treated on par with the regional commissionersthe eci in its 2004 report expressly opined that the current wording of article 324(5)was ''inadequate'' and required an amendment to bring the removal procedures of election commissioners at part with the chief election commission (cec), and to provide them with the ''same protection and safeguard(s)" as are available to the chief election commission (cec) the proposed amendment is on the same lines as provided in background paper on electoral reforms prepared by the legislative department of the law ministry in 2010equating the removal procedures of the two election commissioners with that of the cec is also in line with the legislative intent of the parliament in 1991, the chief election commissioner and other election commissioners (conditions of service) act, 1991 was enacted whereby the retirement age of the cec was fixed at sixty five years, with a salary and other perquisites equal to that of a supreme court judge whereas the retirement age of the other election commissioners was fixed at sixty-two years with benefits equivalent to a high court judge however, in 1993, the above act was amended and the cec and other election commissioners were placed at par in the matters of retirement age, salaries and other benefits section 10 of the act provides for all three members to have an equal say in the decision making process, with any difference in opinion being resolved ''according to the opinion of the majority"it is thus clear that the cec is at the same position as the other election commissioners except that cec enjoys the status of first amongst equals moreover, the election commissioners are clearly superior to the regional commissioners given that the removal (impeachment) procedure of the judges of the high court and supreme court is also the same, the removal procedures cec under article 324(5) should also be extended to the other election commissionershence this billnew delhi;jagdambika palnovember 27, 2017 annexure extract from the constitution of india part xv324 (1) (5) subject to the provisions of any law made by parliament, the conditions of service and tenure of office of the election commissioners and the regional commissioners shall be such as the president may by rule determine:superintendence, direction and control of elections to be vested in an election commissionprovided that the chief election commissioner shall not be removed from his office except in like manner and on the like grounds as a judge of the supreme court and the conditions of service of the chief election commissioner shall not be varied to his disadvantage aftet his appointment:provided further that any other election commissioner or a regional commissioner shall not be removed from office except on the recommendation of the chief election commissioner lok sabha————— a billfurther to amend the constitution of india—————(shri jagdambika pal, mp)gmgipmrnd—2679ls(s3)—19-12-2017 | Parliament_bills | 2dcbf46c-4c37-55cc-946a-d5c369cc45a2 |
bill no lxxxviii of 2006 the clinical trial of drugs on patients (regulation) bill, 2006 a billto provide for regulation of increasing clinical trials of various new drugs on patientsbeing conducted by various pharmaceutical companies in the country to verify their clinical pharmacology or adverse effects; to determine their safety and efficacy and to protect the interests of patients undergoing these trials in the absence of any information or contract by these companies and for matters connected therewith or incidental theretobe it enacted by parliament in the fifty-seventh year of the republic of india as follows:—1 (1) this act may be called the clinical trial of drugs on patients (regulation) act,2006short title, extent and commencement(2) it shall come into force with immediate effect5definitions2 in this act, unless the context otherwise requires,—(a) "clinical trial" means the process of verifying the efficacy, safety and adverse effect of any new drug by pharmaceutical companies by testing it clinically on any patient with or without his consent;(b) "fund" means clinical trial fund created under section7; (c) "pharmaceutical company" means any establishment contracting or outsourcing clinical trials of any drug on patients;(d) "prescribed" means prescribed by rules made under this act; and (e) "registry" means clinical trial of drugs registry established under section 453 no pharmaceutical company shall conduct or outsource any clinical trial of a drug on any patient unless such clinical trial is registered under the provisions of this actpharmaceutical companies not to undertake clinical trial without registration104 (1) the central government shall, by notification in the official gazette, establish a registry to be known as the clinical trial of drugs registry for the purposes of performing functions assigned under this actestablishment of clinical trial of drugsregistry(2) the registry shall be headed by a registrar and shall have such number of officers and employees as may be specified and provided to it by the central government(3) the headquarters of the registry shall be at lucknow15(4) the terms and conditions of service of the registrar, officers and employees of the registry shall be such as may be prescribedregistration of clinical trials5 (1) every pharmaceutical company willing to conduct clinical trial of any drug in the country shall make an application for the registration of clinical trial to the registry in such form and in such manner as may be prescribed:20provided that the pharmaceutical companies which are conducting clinical trials in the country shall apply for registration of the clinical trial with the registry within one month of the commencement of this act (2) the registry shall, within one month of the filing of the application under subsection (1), either register the trial after verifying the fulfillment of the requirements under the provisions of this act or reject the application25(3) while rejecting any application for clinical trial under sub-section (2), the registry shall give the reasons in writing to the concerned pharmaceutical company6 (1) every pharmaceutical company or hospital or medical practitioner before conducting clinical trial shall explain the whole process to the patient and obtain his consent in writingpatient to be paid and explained the process of clinical trial30(2) every patient undergoing clinical trial shall be paid fifty thousand rupees by thepharmaceutical company conducting or outsourcing the trial of drugs before starting the trial(3) the hospital conducting the clinical trial shall ensure that the trial is conducted by the trained and qualified persons and ensure for its proper monitoring35clinical trial fund7 (1) the central government, shall by notification in the official gazette, constitutea clinical trial fund for the welfare of the family of the person and the person himself in case the trial goes wrong40(2) the fund shall consist of such sums of money as may be contributed in it by thecentral and the state governments and the donations received from various voluntary organizations and individuals(3) the central government shall administer the fund in such manner as may beprescribed8 in case the trial goes wrong, it shall be the responsibility of the hospital conducting the clinical trial to record and find out the reasons and fix the responsibility:hospital to record andfind reasons if trial goes wrong5provided that if the trial goes wrong due to negligence, the patient or his immediatefamily shall be entitled to claim damages from the hospital or pharmaceutical company, as the case may be9 the central government shall, after due appropriation made in this behalf, provide such sums of money as it may think fit for being utilized for the purposes of this actcentral government to provide funds penalty1010 whoever contravenes or attempts to contravene or abets the contravention of the provisions of this act shall be punishable with imprisonment for a term, which may extend to three years or with fine, which may extend to twenty lakhs rupees or with bothoffences by companies11 where a person committing a contravention of any of the provisions of this act or of any rule made thereunder is a company, every person who, at the time the contravention was committed, was in charge of, and was responsible to, the company for the conduct of business of the company as well as the company, shall be guilty of the contravention and shall be liable to be proceeded against and punished accordingly:15provided that nothing contained in this sub-section shall render any such person liable to punishment if he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent such contravention explanation— for the purpose of this section;—20(i) "company" means any body corporate and include a firm or other associationof individuals; and(ii) "director", in relation to a firm, means a partner in the firmpower to remove difficulties2512 if any difficulty arises in giving effort to the provisions of this act, the central government may, by order published in the official gazette, make such provisions, not inconsistent with the provisions of this act, as appear to it to be necessary or expedient for removing the difficult:provided that no such order shall be made after the expiry of the period of three years from the date of commencement of this actoverriding effect13 the provisions of this act shall be in addition to, and not in derogation of, the provisions in any other law, for the time being in force, relating to clinical trial of drugs30power to make rules14 the central government may, by notification in the official gazette, make rules forcarrying out the purposes of this act statement of objects and reasonsin the near future, india is going to be the world's favourite destination for conducting clinical trials of various new drugs being manufatured by pharmaceutical giants in the world these major pharmaceutical companies are outsourcing the clinical trials in our country in a big way according to a study, the total market for clinical research activities in india is expected to touch rupees two thousand crores it has been further stated in the study that in the next two years thirty per cent of global clinical trials will take place outside the us and western europe and india would be the most favoured country with the cut-throat competition, pharmaceutical companies are facing a lot of financial crunch due to spiraling research and development cost, and increasing overheads, therefore, outsourcing of clinical trial appears to be the viable option for them by contracting such work to india, these companies can save from forty to sixty per cent of the cost last year, nearly 175 trials were conducted in the country these trials are not limited to multinational companies but also to indian pharma companies which are also contracting trial for research purposes in view of the new patent regime there is no doubt that if india has to participate in new drug development then clinical trials are essential because the general use of drugs have to be tested in a variety of ethnic groups or different genetic or race profiles though our country can take advantage of this situation but at the same time, there are concerns which show that the indians are being used as guinea pigs for these clinical trials leading medical journals have noted how developing countries with poor and illiterate patients, weak legal framework, laxed bureaucracy and financially crunched hospitals have become hunting grounds for pharma giants to test new drugs the lucrative offers for trials are difficult to resist as they give plenty of money and promisesin the recent past, over 430 unsuspecting young women were used as guinea pigs by researchers to test if anti-cancer drug letrozole could be used to increase ovulation according to a report published in monthly index of medical specialities in december, 2003, letrozole belongs to schedule g of the drugs and cosmetics rules and can be sold only against prescription but it was found out that many unauthorized practitioners had been prescribing and retailers selling the drug in another, case, new chemical entities discovered in the us were unlawfully tested on 26 oral cancer patients at the regional cancer centre in thiruvananthapuram fairplay requires the patient undergoing clinical trial should be explained the whole process of the trial and his concent may be obtained in writing but, with the kind of money involved in these trials nobody bothers about these things further, in case the trial goes wrong, there is no legal remedy available in our country and the law is silent about any compensation to be paid to the patient on whom the trial was conducted in us and uk, the patients on whom the trials are conducted are paid anywhere between two to three lakhs by the pharmceutical companies but, in india, the poor illiterate patients are not paid a single paisa and rather are obliged by the doctor informing them that they are being treated by an imported drug free of charge which they cannot affortit is also required in these cases that the trained persons should undertake the job of clinical trial which should be closely supervised and monitored and responsibility should also be fixed if the trial goes wrong in view of the fact that extreme poverty and illiteracy make us susceptible to such trials and the law provides no assistance to the patients in conducting of clinical trials by pharma companies in our country, there is an ugent need for regulation on this aspect covering the various aforesaid propositionshence this billmahendra mohan financial memorandumclause 4 of the bill provides the establishment of the clinical trial of drugs registry, clause 7 of the bill provides that the central government shall contribute money to clinical trial fund further, clause 9 provides that central government shall provide funds for being utilized for the purpose of this act the bill, if enacted, involve expenditure from the consolidated fund of india to the tune of rupees twenty crore per annum no non-recurring expenditure is likely to be involved memorandum regarding delegated legislationclause 14 of the bill empowers the central government to make rules for carrying out the purposes of the bill as the matter will relate to details only, the delegation of powers is of normal character————— a billto provide for regulation of increasing clinical trials of various new drugs on patients beingconducted by various pharmaceutical companies in the country to verify their clinical pharmacology or adverse effects; to determine their safety and efficacy and to protect the interests of patients undergoing these trials in the absence of any information or contract by these companies and for matters connected therewith or incidental thereto————(shri mahendra mohan, mp) | Parliament_bills | b16864c1-12a7-5a97-8393-56c59cfda22b |
bill no xxx of 2020 the indian medicine central council (amendment) bill, 2020 a billfurther to amend the indian medicine central council act, 1970be it enacted by parliament in the seventy-first year of the republic of india as follows:—short title and commencementact, 2020ord 7 of 2020"3a (1) on and from the date of commencement of the indian medicine central council (amendment) ordinance, 2020, the central council shall stand superseded and the president, vice-president and other members of the central council shall vacate their offices and shall have no claim for any compensation, whatsoever5(2) the central council shall be reconstituted in accordance with the provisions of section 3 within a period of one year from the date of supersession of the central council under sub-section (1)power of central government to supersede central council and constitute board of governors10(3) upon supersession of the central council under sub-section (1) and until a new council is constituted in accordance with the provisions of section 3, the board of governors constituted under sub-section (4) shall exercise the powers and perform the functions of the central council under this act15(4) the central government shall, by notification in the official gazette, constitute the board of governors which shall consist of not more than ten persons as its members, who shall be persons of eminence and of unimpeachable integrity in the fields of indian medicine and indian medicine education and eminent administrators, and who may be either nominated members or ex officio members, to be appointed by the central government, one of whom shall be selected by the central government as the chairperson of the board of governors20(5) the chairperson and other members, other than ex officio members, shall be entitled to such sitting fee and travelling and other allowances as may be determined by the central government(6) the board of governors shall meet at such time and such place and shall observe such rules of procedure in regard to the transaction of business at its meetings, as is applicable to the council25(7) two-third of the members of the board of governors shall constitute the quorum of its meetings(8) no act or proceedings of the board of governors shall be invalid merely by reason of-—30(a) any vacancy in, or any defect in the constitution of, the board of governors; or(b) any irregularity in the procedure of the board of governors not affecting the merits of the case (9) a member having any financial or other interest in any matter coming before the board of governors for its decision shall disclose his interest in such matter before he may, if allowed by the board of governors, participate in such proceedings35(10) the chairperson and other members of the board of governors shall hold office during the pleasure of the central government3b during the period when the central council stands superseded,—certain modifications of act(a) the provisions of the act shall be construed as if for the words "central council", the words "board of governors" were substituted;40(b) the board of governors shall exercise the powers and discharge the functions of the council under this act and for this purpose, the provisions of this act shall have effect subject to the modification that references therein to the central council shall be construed as references to the board of governors;45power of central government to give directions3c (1) without prejudice to the provisions of this act, the board of governors or the central council after its reconstitution shall, in exercise of its powers and in the performance of its functions under this act, be bound by such directions on questions of policy, other than those relating to technical and administrative matters, as the central government may give in writing to it from time to time:provided that the board of governors or the council after its reconstitution shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section(2) the decision of the central government whether a question is a matter of policy or not shall be final"5ord 7 of 2020repeal and savings3 (1) the indian medicine central council (amendment) ordinance, 2020 is herebyrepealed48 of 197010 (2) notwithstanding such repeal, anything done or any action taken under the indian medicine central council act, 1970, as amended by the said ordinance, shall be deemed to have been done or taken under the corresponding provisions of the said act as amended by this act statement of objects and reasonsthe indian medicine central council act, 1970 (48 of 1970) provides for constitution of the central council of indian medicine for regulation of the educational standards of indian systems of medicine, maintenance of the central register of practitioners of indian systems of medicine and for matters connected therewith2 in order to streamline the functioning of the central council on issues of membership, bringing transparency in the mechanism of granting permission to colleges and practice of indian systems of medicine and improving standards in medical education, the central government proposed to replace the indian medicine central council act, 1970 and to supersede the central council of indian medicine established thereunder accordingly, the national commission for indian system of medicine bill, 2019 was introduced in the rajya sabha on 7th january, 2019 and was passed by that house on 18th march, 2020 the national commission for indian system of medicine bill, 2020 is pending in the lok sabha for consideration and passing3 as the membership of the president of the central council of indian medicine was only till 30th may, 2020, election of president was to be held in may, 2020 similarly, elections of members of the central council were also due in uttar pradesh, madhya pradesh, assam, bihar, jammu and kashmir, uttarakhand and maharashtra as the term of office of members of the central council is for a period of five years and the national commission for indian system of medicine bill, 2020 had already passed in the rajya sabha, it was considered inappropriate to conduct elections in those states and also in other states where the term was likely to be expired therefore, in order to complete time-bound granting of permission to colleges for the academic session 2020-21 and as an interim measure, the central government proposed for promulgation of an ordinance to amend the indian medicine central council act, 1970, inter alia, to empower the central government to supersede the central council of indian medicine and to constitute the board of governors to exercise the powers and perform the functions of the central council under the said act, till reconstitution of the central council accordingly, the indian medicine central council (amendment) ordinance, 2020 was promulgated by the president on the 24th day of april, 2020 under clause (1) of article 123 of the constitution4 the indian medicine central council (amendment) bill, 2020 which seeks to replace the indian medicine central council (amendment) ordinance, 2020 (ord7 of 2020) provides for empowering the central government to—(i) supersede the central council of indian medicine and to constitute the board of governors to exercise the powers and perform the functions of the central council under the said act, till reconstitution of the central council within a period of one year;(ii) give directions to the board of governors or the central council on questions of policy 5 the bill seeks to replace the aforesaid ordinancenew delhi;shripad naikthe 27th july, 2020 rajya sabha———— a billfurther to amend the indian medicine central council act, 1970————(shri shripad yesso naik, minister of state (independent charge) of the ministry of ayurveda, yoga and naturopathy unani, siddha and homoeopathy) | Parliament_bills | 4460c3b9-8147-51b4-94cf-15ea918fb43b |
bill no 5& of 1985 the punjab appropriation (vote on account) bill, 1985a bill to ptovide /ot the withdra'wiii of certain sums from and out of the como-lidq,ted fund df the state of pun;ab fot the ,ervices of a part of the ibi"ancial yeat 1985-86 be it enacted by parliament in the thirty-sixth year of the republic of india as follows: - short title 1 this act may be called the punjab appropriation (vote on account) act, 1985 5 2 frqm and out of the consolidated fund of the state of punjab there may be withdrawn s1ims not exceeding those specified in column 3 of the 'schedule amounting in the aggregateto the sum of two thousand cine hundred twenty-nine clores, ninety lakhs and ninety-one thousand rupees towards defraying the several chax:ges which will come in course 10 of payment during the financial year 1985-86 - with- drawal ot rs2129 9091000 - from and out ot the consolidated fundaf the state of punjab for the ftnanalaj year 1988-88 3 the sums authorised to be withdra~' from and out of the canso-appro "lldated fund of the state of punjab by this act shall be appropriated prlatlon for the services and purposes expr~ssed in the sch~ule in relation to _ the said year swill dot· exceeding servi~ and purposes voted by parliament qaaqred on the colllolidated fund to,!,1 no of votet appropriation ri lb ri state legislature ,58,91,000 revenue s6,ooo staff, houeehold and aljowancea of the governor revenue ii 411,94,000 council or ~initers rt~nue or 3 11,8068,000 administration justi 3,m,1i7,ooo 15 61,,,0,000 61,47,000 meotions 5 revenue &evenuc 705437,000 6 excl~e and tasalion revenue 3,114,10,000 lz,ooij 3114,p,ooo 7 fjnance revenue 4i,5b,~3ooo 33000 ',58•66,000 120 8 p8b1ic sa-vice ("ammbsion revenue 10,111000 9,'9008 1940,i'l00 9 civil sccrt:tariat revenue 1(1000 ''''74063,000 25 (l,ii,ooo 4,01,19,000 10 district administration revenue 11801,bg,ooo ii police revmue 11800,94,000 1i,!)4,~,ooo iii jails - revenue ,,000, 13 stationery and prhiting revenue 1i,3o,°stooo capital 14,110,000 30 j;tit1o - 3h,85,o(lo mbcellanrous services revenue rehabilitation, relief _ reettlement revenue 6,37000 fducation rf'vmue 1'11,8,66,000 16 6,17,000 "' ,133900q technical education scien('e and technology revenue capital 118,00,000 ·18 medical and public health , revenue so capital 50,000 50,000 , 1,311113,000 holllins and urban development , , reve'lll' 6,d1180oett ------~~------capital set vieet and purposes no of votel ~-prlation 5 ri lao information and publicity revenue 128,s8,ooo iii tourism and cultural a~i1i revenue 46,16,000 10 capftal 10,00000 10,00,000 lila labpuremplomj~lt and indwltnl'j'l'aln ing revenue 100,000 49li,71,ooo capital 0 851,000 8,q,000 revenue social 8q::uri ty welfarel and 14,7,7>44000 capital 57,,0,000 planning and stati tica , revenue 1000 87,16000 revenue 47320,000 isooo 4,79,9,000 capital 855140000 8,5514: 000 agriculture revenllc q0t45o8,ooo - 0,6,5 1,000 capital 20 5,90,000 ° \ soil and water conscr",uon revenue ~,ooo 1~19000 revl"nue food capital 457044,,0,000 90000 - 4574510•000 revenue animal hwlbandry 29 6,5788•000 6,5818000 revenue dairy developmcn t 8846000 30 80 s8t6,000 revenue ijpoo fiakerin 56•28•000 81 ,604:8000 8,,6,06,000 revenue foreats 1,000 8,56,07000 capital 450•000 revenue cornrnumty dc'vc'lopment 287",88000 2871,97,000 88 35 revenue °jodeo ind\lllrie<l ,~soooo 5,84,80,000 c/opital rrvenllt' civil aviation 35 capital ili,18g0000 revenue 1 :2,20,90000 capital lig:27soooo iis,li7,so,ooo 57,l178ii,ooo revenue road transport ",88,1111,000 37 60000000 capital 6,0000,000 s8 revenue multi-purpoee river projeetl 6,75119000 lao,8i,80,ooo capital 108180,000 no of votej st-rviccl and p~ aj?propr don rs ri ri 39 irrigation, drainace and flood control revenue 34041,86,000 34041,86000 capital 117,03,37,000 ·',03,37,000 ia 40 buildinp 30,01,67,000 l,jo,ooo 30,08,17000 clapltal g,1~o9b,ooe capital statement of,obj,ects and reasons'this bill is introduced in purs,uance of articles 204'(1) and 206 of the constitution read with the proclamation issued under article 356 of the constituuon in respect of the state of punjab on the 6th october, 1983 to prbvide for the appropriation out of the c,onsoli9ated fund of the , state of punjab of the moneys required to meet the expenditure, charged on the consolidated ,fund of the state of punjab and the grants made in advance by the lok sabba in respect of the estimated expenditur~ of the government of punjab, for a part of the financial year 1985-86 / vishwana:rh pratap singh ' " president's recommendation under article 207 of the , - constitution of india- , [copy 'bf leuer 'no 2,(149) -b (s) /sf dated the 15th march, 1985 from shri vishwanath' pratap singh, finance mini~ter to, the secretary-general, lok sabha] , , •• the, president, having been informed of the subject matter of the proposed bill to provide fol the nthdrawal of certain sums from and out of th,e consolidated fund of the state of ponjab for the services of apart of the fmancial yeai' 1985-86, rec;ommends ,under clauses (1) and (3) of article 207,1 of the constitution of india read with clause (2) of article 206 thereof and the proclamation dated the 6th october 1983 issued under article s56 of the constitution, the ,roduction of' the punjab appropriation (vote on account) bill, 1985 in and the' consideration 0' the bill by the lok sabha 2 the ,bill will b& introd\lced immediately after the demands for grants ~on account' for expenditure' of the government of funjab for '8 part of the· financial year 1985-86, have been voted " bill&0 ptovide for the wijhdra wal of certain ~ums from ~d "out of "the consolidated fund of the s~te of punjab for the services of a part of the tblanctal year 116t)86 " (shri vu;l~jdamjth p,atap singh, ministet of finahce) | Parliament_bills | ab16c794-b8cb-56a4-a1d7-55070e7b8d64 |
bill no 154 of 2014 the forest (conservation) amendment bill, 2014 by shri ashok mahadeorao nete, mp a billfurther to amend the forest conservation act, 1980be it enacted by parliament in the sixty-fifth year of the republic of india as follows:—short title1 this act may be called the forest (conservation) amendment act, 201469 of 19802 after section 3b of the forest (conservation) act, 1980, the following section shall be inserted, namely:—insertion of new section 3c clearance for deforestation for irrigation projects by district collector statement of objects and reasonsthe forest conservation act, 1980 was enacted with a view to conserve forests and to protect environment and ecology it is indeed a laudable initiative but, the provisions in this act come in the way of developmental work which are undertaken for the benefit of population at large any initiative, although it is very good, should not come in the way of development farmers depend upon irrigation for agricultural purposes but irrigation projects are not being taken up because of the provisions of this actit is, therefore, proposed that irrigation projects shall be exempted from the purview of the forest conservation act, 1980new delhi;ashok mahadeorao netenovember 12, 2014 lok sabha—————— a billfurther to amend the forest conservation act, 1980————(shri ashok mahadeorao nete, mp) | Parliament_bills | dce6a769-719b-53e0-9b0b-e36c2257cbec |
lok saeill ct{e i gel lli if' to 'rheappropriation (r~o4) bil~, 1~3 ('tiljlelaa introdllc~qd_j!llal:;- _ sabha) 1 pa~e 2, line 2,-- fql: _ "section" ~ "secti)ns" 2 pa ge 2, in colunn 2, 1mder the h e3ding ''services and purpo ses",-against vote no9, for "f-~rtilisersll ~-11 fert ilizer's it neitj delhi; au£ust __ 1 o----"'-----19tll~ sra van8 19, 1·c)rj (salea) bill no 92 of 1983 the appropriation (np4) bill, 1983 a billto authorise payment and appropriation of certain further sums from and out of the consolidated fund of india for the services of the financial yeat 1983-84 be it enacted by parliament in the thirty-fourth year of the republic of india as follows:-1 this act may be called the appropriation (no4) act, 1983 short title 2 from and out of the consolidated fund of india there may be 5 paid and applied sums not exceeding those specified in column 3 of the schedule amounting in the aggregate to the sum of six hwidred and thirty-six crores, fifty-five lakhs and sixty-one thousand rupees towards defraying the several charges which will come in course of payment during the financial year 1983-84, in respect of the services specified in 10 column 2 of the schedule issue of rs63655, 61,000 out of the consolidated fund of india for the year 1983-84 3 the sums authorised to be paid and applied from and out of the appro-consolidated fund of india by this act shall be appropriated for the ~riation services aad purposes expressed in the schedule in relation to the said year s:,rvic~s and pllrposl's sllm~ not ~xcrcding voted by i charged on the i total 5 plrliamt"nt crjnsolidlltt'd fund i i lb ra i-lb"-2 i a~riculturc r(~"enue 125,00,00,000 i 125,00,00,000 i clpital 4z,50,oo,ooo 42,50,00,000 10 19,00,000 9 miniury of ohemicals i lind fertiliser» revenue 19,00,000 i c'lpital 27,90,00,000 27,go,oo,ooo i 115 education revenue 55,00,000 i i 55,00,000 29 dr-partment of power r("vt'nue 50,00,00,000 50,00,00,000 is ~2 ministry of external affairs c1pital 21,10,44,000 "1,10,44,000 43 othrr expenditure of the ministry of finance c'lpital 1,1:',00,000 1,17,00,000 20 46 dc'partment of oivil supplies revenue 2,00,000 2,00,oeo 51 o'lbinet revenue 42,00,000 4:2,00,000 53 police revenue 50,00,000 50,00,000 5~ other expenditure of the ministry of 25 home affain revenue 26,62,000 26,62,000 sa and'uil'lfl and nicobar island, r''venue 1,50,00,000 i 1,50,00,000 25,00,00,000 30 &z industries revenue 25,00,00,000 i c·pital 20,00,00,000 i 20,00,00,000 66 broadca,ting revenue 2300,000 i 23,00,800 clpiral 20,00,00,000 'j llo,oo,oo,oco 67 ministry of 35 irn,ation revenue 115,00,00,000 25,00,00,000 79 poru, lighthouae~ and shipping revenue 2,16,66,000 11,16,66,000 7,19,00,000 7,19,00,000 capital i 80 road and inland water traaapol't capital i 5,00,00,000 5,00,00,000 40 81 minutry of social i welfare revenue 8,00,000 bt,oo,ooo _-------------------services and purposo n°'i of vote 5 sum~ not exceeding --vott'd by--: charg;d-:n tbe 1--------parli"lment i consolidlted i total , fund ---- ----------------10, ra, 10, ':)',00,00,000 15 1,00,00,000 ib department of sled c,pitai 2,000 2,000 c'~pilal 89 publie works 75,00,00,000 7:;,00,00,000 water supply and sewerage, iq revenue huusing and urban 15,00,00,000 9 1 development revenue 4,00,00,000 4,00,00,000 capital 15 94 atomic energy, research, d('vejopment and indusldal projects c'lpital 95 nuclear pow('r schemes 20 102 \ department ofspaec c"pital statement of objects and reasonsthis bi!j is introduced in pursuance of article 114(1) of the constitution of india, read with article 115 thereof, to provide for the appropriation out of the consolidated fund of india of the moneys required to meet the supplementary expenditure charged on the consolidated fund of india and the grants made by the lok sabba for expenditure of the central government, excluding railways, for the financial year 1983-84 pranab mukherjee president's recommendation under article 117 of the constitution of india[copy of letter no f '4 (63) -b (se) /83, dated the 2nd august, 1983 from shri pranab kumar mukherjee, minister of finance to the secretary, lok sabha] the president, having been jnformed of the subject matter of the proposed bill to authorise appropriation of certain further sums from and out of the consolidated fund of india for the services of the financial year ending on the 31st day of march, 1984, recommends the introduction of the appropriation (no4) bill, 1983 in lok sabba and also recommends to lok sabha the consideration of the bill under article 117 (l) and (3) of the constitution read with article 115 (2) thereof 2~ the bill will be introduced in lok sabha after all the supplementary demands for grants for 1983-84 have been voted a billto authorise payment and appropriation of certain further sums from and out of the consolidated fund of india for the services of the financial year 1983-84 (shti ptanab kumar mukherjee, minister ·01 finance) | Parliament_bills | 47082283-4841-5743-b26f-6f3d8b41c80b |
bill no 152 of 2015 the right to fair compensation and transparency in land acquisition, rehabilitation and resettlement (second amendment) bill, 2015 a billfurther to amend the right to fair compensation and transparency in land acquisition, rehabilitation and resettlement act, 2013be it enacted by parliament in the sixty-sixth year of the republic of india as follows:—short title and commencement1 (1) this act may be called the right to fair compensation and transparency in land acquisition, rehabilitation and resettlement (second amendment) act, 2015(2) it shall be deemed to have come into force on the 31st day of december, 2014substitution of certain expression throughout the actamendment of section 23 in the principal act, in sub-section (2) of section 2, after the second proviso, the following proviso shall be inserted, namely: —"provided also that the acquisition of land for the projects listed in sub-section (1)of section 10a and the purposes specified therein shall be exempted from the provisions of the first proviso to this sub-section"54 in the principal act, in section 3,—amendment of section 3(i) in clause (j), in sub-clause (i), for the words and figures "the companies act,1956", the words and figures "the companies act, 2013" shall be substituted;1 of 1956 18 of 2013(ii) after clause (y), the following clause shall be inserted, namely:—10'(yy) "private entity" means any entity other than a government entity or undertaking and includes a proprietorship, partnership, company, corporation, non-profit organisations or other entity under any law for the time being in force;'155 in the principal act, after chapter iii, the following chapter shall be inserted, namely:—insertion of new chapter iiia "chapter iiia provisions of chapter ii and chapter iii not to apply to certain projects2010a (1) the appropriate government may, in the public interest, by notification, exempt any of the following projects from the application of the provisions of chapter ii and chapter iii of this act, namely: —power of appropriate government to exempt certain projects(a) such projects vital to national security or defence of india and every part thereof including preparation for defence or defence production;(b) rural infrastructure including electrification; (c) affordable housing and housing for the poor people;25(d) industrial corridors set-up by the appropriate government and its undertakings (in which case the land shall be acquired up to one kilometer on both sides of designated railway line or roads for such industrial corridor); and(e) infrastructure projects including projects under public-private partnership where the ownership of land continues to vest with the government:30provided that the appropriate government shall, before the issue of notification, ensure the extent of land for the proposed acquisition keeping in view the bare minimum land required for such project(2) the appropriate government shall undertake a survey of its wasteland including arid land and maintain a record containing details of such land, in such manner as may be prescribed by the appropriate government"35amendment of section 246 in the principal act, in section 24, in sub-section (2), after the proviso, the following proviso shall be inserted, namely: —40"provided further that in computing the period referred to in this sub-section, any period or periods during which the proceedings for acquisition of the land were held up on account of any stay or injunction issued by any court or the period specified in the award of a tribunal for taking possession or such period where possession has been taken but the compensation is lying deposited in a court or in any designated account maintained for this purpose shall be excluded"amendment of section 31457 in the principal act, in section 31, in sub-section (2), in clause (h), after the words"affected families", the words "including compulsory employment to at least one member of such affected family of a farm labourer" shall be insertedamendment of section 468 in the principal act, in section 46, in sub-section (6), in the explanation, in clause (b), the words "any person other than" shall be omitted9 in the principal act, after section 67, the following section shall be inserted, namely:—insertion of new section 67a5"67a the authority shall, after receiving reference under section 64 and after giving notice of such reference to all parties concerned, hold the hearing in the district where the land acquisition takes place for settlement of the objections raised in the reference"hearing to be held by authority in district or districts to decide grievances10 in the principal act, for section 87, the following section shall be substituted, namely:—substitution of new section for section 8710offences by government officials2 of 1974"87 where an offence under this act has been committed by any person who is or was employed in the central government or the state government, as the case may be, at the time of commission of such alleged offence, the court shall take cognizance of such offence provided the procedure laid down in section 197 of the code of criminal procedure, 1973 is followed"15amendment of section 10111 in the principal act, in section 101, for the words "a period of five years", the words"a period specified for setting-up of any project or for five years, whichever is later," shall be substituted12 in the principal act, in section 105,—amendment of section 105(i) for sub-section (3), the following sub-section shall be substituted, namely:—20"(3) the provisions of this act relating to the determination of compensation in accordance with the first schedule, rehabilitation and resettlement in accordance with the second schedule and infrastructure amenities in accordance with the third schedule shall apply to the enactments relating to land acquisition specified in the fourth schedule with effect from 1st january, 2015";25(ii) sub-section (4) shall be omittedamendment of section 10913 in the principal act, in section 109, in sub-section (2), after clause (d), the following clause shall be inserted, namely:—30"(dd) the manner of undertaking a survey of waste land including arid land and maintenance of the record containing the details of arid land under sub-section (2) of section 10a;'' 14 in the principal act, in section 113, in sub-section (1),—amendment of section 113(i) for the words "the provisions of this part", the words "the provisions of this act" shall be substituted;35(ii) in the proviso, for the words "a period of two years", the words "a period offive years" shall be substituted15 (1) the right to fair compensation and transparency in land acquisition, rehabilitation and resettlement (amendment) ordinance, 2015, is hereby repealedrepeal and saving201540(2) notwithstanding such repeal, anything done or any action taken under the principal act, as amended by the said ordinance, shall be deemed to have been done or taken under the principal act, as amended by this act statement of objects and reasonsthe right to fair compensation and transparency in land acquisition, rehabilitation and resettlement act, 2013 (herein referred to as the fair compensation in land acquisition act) was enacted to provide for just and fair compensation to the owners of the land and affected families for the land acquisitions made under the said act and the 13 acts specified in the fourth schedule, which makes provision for acquisition of land for the purposes specified in the respective acts, in terms of the provisions made in the first, second and third schedule to the fair compensation in land acquisition act in other words, the benefits of compensation, rehabilitation and resettlement provided in the fair compensation in land acquisition act is proposed to be extended in cases of land acquisition made under the acts specified in the fourth schedule2 in view of the deadline provided in section 105 of the fair compensation in land acquisition act and the necessity of extending the enhanced compensation, rehabilitation and resettlement to land acquisitions under thirteen acts of the fourth schedule and to make necessary provisions for infrastructure projects the right to fair compensation and transparency in land acquisition, rehabilitation and resettlement (amendment) ordinance, 2014 was promulgated on the 31st december, 2014 on the 24th february, 2015 a replacement bill was introduced in lok sabha the bill was passed by lok sabha with some amendments on the 10th march, 2015 notice for motion for consideration and passing of the bill as passed by the lok sabha was given in rajya sabha on the 13th march, 2015 however, the bill could not be taken up for consideration in the rajya sabha as the rajya sabha was prorogued on the 28th march, 20153 section 105 of the act of 2013 as amended by the right to fair compensation and transparency in land acquisition, rehabilitation and resettlement (amendment) ordinance, 2014 extends the benefit of enhanced compensation in case of land acquisition made under the thirteen acts listed in the fourth schedule of the act4 section 105 of the act of 2013 as amended by the right to fair compensation and transparency in land acquisition, rehabilitation and resettlement (amendment) ordinance, 2014 provided to extend the benefit of enhanced compensation, rehabilitation and resettlement in case of land acquisitions done under the 13 acts listed in the fourth schedule of the actwith a view to give continuity to the provisions of the said ordinance, it was necessary to repromulgate the ordinance and get the same replaced by the replacement bill in parliament so that enhanced compensation and rehabilitation and resettlement made available through the provisions of earlier ordinance continue to remain in force in cases of land acquisitions made under the thirteen acts listed in the fourth schedule to the act of 20135 as the council of states was not in session and immediate action was required to be taken by the central government to give continuity to the provisions of the right to fair compensation and transparency in land acquisition, rehabilitation and resettlement (amendment) ordinance, 2014 and to expedite the process of land acquisition, the right to fair compensation and transparency in land acquisition, rehabilitation and resettlement (amendment) ordinance, 2015 (no 4 of 2015) was promulgated on 3rd april, 20156 the said ordinance contains enabling provision necessary to expedite the process of land acquisition for strategic and development activities, such as, national security or defence of india including preparation for defence and defence production; rural infrastructure including electrification; affordable housing and housing for poor people; industrial corridors set-up by the appropriate government and its undertakings (in which case the land shall be acquired up to one kilometre on both sides of designated railway line or roads for such industrial corridor); infrastructure projects including projects under public private partnership where the ownership of the land continues to vest with the government, it is proposed to continue with the "consent" clause provided under sub-section (2) of section 2 of the fair compensation in land acquisition act in case of the acquisitions provided in the act except in cases provided above7 further, to ensure the growth and development of the country, while safeguarding the welfare of farmers, it is proposed to empower the appropriate government to exempt them from "social impact assessment" and "special provisions for safeguarding food security" provisions of the fair compensation in land acquisition act however, the appropriate government shall, before the issue of notification, ensure the extent of land for the proposed acquisition keeping in view the bare minimum land required for such project the appropriate government shall undertake a survey of its wasteland including arid land and maintain a record containing details of such land, in such manner as may be prescribed by the appropriate government8 it is proposed to make consequential amendment by substituting the ''companies act, 1956'' with the ''companies act, 2013'' where the word ''company'' has been defined at present, the provisions of the fair compensation in land acquisition act extend to ''private company'' thereby excluding others like public company, proprietorship, partnership, nonprofit organisation, etc therefore, in place of the term ''private company'', the term ''private entity'' is proposed to be substituted and defined accordingly9 it is proposed to exclude all such period, that is the period during which the proceedings for acquisition of the land have been held up on account of any stay or injunction issued by any court, or the period specified in the award of a tribunal for taking possession or such period where possession has been taken but the compensation is lying deposited in a court or in designated account maintained for this purpose, in calculation of five years period as specified in sub-section (2) of section 24 of the fair compensation in land acquisition act, arising out of the land acquisition act, 189410 section 31 of the act is proposed to be amended so that in the rehabilitation and resettlement award passed by collector for affected families, compulsory employment to at least one member of such affected family of a farm labourer is also included11 section 46 is proposed to be modified so that the rehabilitation and resettlement benefits are available to land owners in case of purchase of land through private negotiations by non-governmental entities12 a new section 67 a is proposed to be inserted in the act mandating that the land acquisition, rehabilitation and resettlement authority shall hold the hearing in the district where the land acquisition takes place for settlement of the objections raised in the reference under section 64 of the act13 section 87 is proposed to be amended to provide that the court shall take cognizance of offence by government officials under the act in accordance with the procedure laid down in section 197 of the code of criminal procedure, 197314 section 101 which deals with return of unutilised land is being amended to increase the period after which unutilised land will be reverted back to land owner or to land bank from ''five years'' at present to ''a period specified for setting up of any project or for five years whichever is later''15 in section 113 of the fair compensation in land acquisition act, the word ''part''has been inadvertently used instead of the word ''act'' which needs to be rectified further, the period provided for removal of difficulties is being extended to five years16 the bill proposes to replace the right to fair compensation and transparency in land acquisition, rehabilitation and resettlement (amendment) ordinance, 2015 (4 of 2015)new delhi;birender singhthe 18th april, 2015 annexure extracts from the right to fair compensation and transparency in land acquisition, rehablitation and resettlement act, 2013 (30 of 2013) 2 (1) application of act(2) the provisions of this act relating to land acquisition, consent, compensation, rehabilitation and resettlement, shall also apply, when the appropriate government acquires land for the following purposes, namely :— provided further that the process of obtaining the consent shall be carried out along with the social impact assessment study referred to in section 4: 3 in this act, unless the context otherwise requires,—definitions (j) ''company'' means—1 of 1956(i) a company as defined in section 3 of the companies act, 1956, other than a government company; 24 (1) land acquisition process under act no1 of 1894 shall be deemed to have lapsed in certain cases(2) notwithstanding anything contained in sub-section (1), in case of land acquisition proceedings initiated under the land acquisition act, 1894, where an award under the said section 11 has been made five years or more prior to the commencement of this act but the physical possession of the land has not been taken or the compensation has not been paid the said proceedings shall be deemed to have lapsed and the appropriate government, if it so chooses, shall initiate the proceedings of such land acquisition afresh in accordance with the provisions of this act:provided that where an award has been made and compensation in respect of a majority of land holdings has not been deposited in the account of the beneficiaries, then, all beneficiaries specified in the notification for acquisition under section 4 of the said land acquisition act, shall be entitled to compensation in accordance with the provisions of this act chapter v rehabilitation and resettlement award31 (1) (2) the rehabilitation and resettlement award shall include all of the following, namely:— rehabilitation and resettlement award for affected families by collector(h) details of mandatory employment to be provided to the members of the affected families; 46 (1) (6) if any land has been purchased through private negotiations by a person on or after the 5th day of september, 2011, which is more than such limits referred to in sub-section (1) and, if the same land is acquired within three years from the date of commencement of this act, then, forty per cent of the compensation paid for such land acquired shall be shared with the original land ownersexplanation—for the purpose of this section, the expression—provisions relating to rehabilitation and resettlement to apply in case of certain persons other than specified persons (b) "specified persons" includes any person other than—(i) appropriate government; (ii) government company;21 of 1860(iii) association of persons or trust or society as registered under thesocieties registration act, 1860, wholly or partially aided by the appropriate government or controlled by the appropriate government offences by government departments87 (1) where an offence under this act has been committed by any department of the government, the head of the department, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:provided that nothing contained in this section shall render any person liable to any punishment if such person proves that the offence was committed without his knowledge or that such person exercised all due diligence to prevent the commission of such offence(2) notwithstanding anything contained in sub-section (1), where any offence under this act has been committed by a department of the government and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any officer, other than the head of the department, such officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly return of unutilised land101 when any land acquired under this act remains unutilised for a period of five years from the date of taking over the possession, the same shall be returned to the original owner or owners of their legal heirs, as the case may be, or to the land bank of the appropriate government by reversion in the manner as may be prescribed by the appropriate governmentexplanation—for the purpose of this section, "land bank" means a governmental entity that focuses on the conversion of government owned vacant, abandoned, unutilised acquired lands and tax-delinquent properties into productive use 105 (1) provisions of this act not to apply in certain cases or to apply with certain modifications(3) the central government shall, by notification, within one year from the date of commencement of this act, direct that any of the provisions of this act relating to the determination of compensation in accordance with the first schedule and rehabilitation and resettlement specified in the second and third schedules, being beneficial to the affected families, shall apply to the cases of land acquisition under the enactments specified in the fourth schedule or shall apply with such exceptions or modifications that do not reduce the compensation or dilute the provisions of this act relating to compensation or rehabilitation and resettlement as may be specified in the notification, as the case may be(4) a copy of every notification proposed to be issued under sub-section (3), shall be laid in draft 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 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 disapproving the issue of the notification or both houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the houses of parliament| ||---------------|| power to || remove || difficulties |113 (1) if any difficulty arises in giving effect to the provisions of this part, the central government may, by order, make such provisions or give such directions not inconsistent with the provisions of this act as may appear to it to be necessary or expedient for the removal of the difficulty:provided that no such power shall be exercised after the expiry of a period of two years from the commencement of this act| | | | | ||------|------|------|------|-----|———— a billfurther to amend the right to fair compensation and transparency in land acquisition, rehabilitation and resettlement act, 2013————(shri birender singh, minister of rural development, panchayati raj and drinking water and sanitation) | Parliament_bills | 6c3d4dd6-45c5-5945-804e-ea37e951b033 |
bill no 76 of 2014 the payment of compensation to persons attacked by wild animals bill, 2014 by shri mk raghavan, mp a billto provide for payment of compensation to persons attacked by wild animals and for matters connected therewithbe it enacted by parliament in the sixty-fifth year of the republic of india as follows:—short title and extent1 (1) this act may be called the payment of compensation to persons attacked by wild animals act, 2014(2) it extends to the whole of india3 (1) the central government shall frame a scheme for payment of compensation to persons attacked by wild animals(2) without prejudice to the generality of the foregoing provision, the scheme shall include:—5central government to frame a scheme for compensation to persons attacked by wild animals(i) payment of compensation of rupees two lakh in case of death caused by a wild animal;(ii) payment of compensation of rupees fifty thousand in case of an injury caused by a wild animal;(iii) an insurance scheme for persons residing near areas generally inhabited or frequented by wild animals; and10(iv) compensation in case of damage or loss to property or crops due to attack by wild animals(3) the central government may, by notification in the official gazette, make rules for payment of compensation to the persons attacked by wild animals154 notwithstanding anything contained in section 3, no compensation shall be payable to a person attacked by wild animal under the following circumstances:—compensation not payable in certain circumstances(i) if he has gone to a forest area or an area generally inhabited or frequented by wild animals for the purpose of hunting or capturing the wild animals alive;(ii) if he has attacked a wild animal except under the circumstance of self-defence;20(iii) if he has strayed into an area which is exclusively specified for wild animals;and(iv) if he commits any act which would result in hunting or torturing or leading to cruelty to or exploiting a wild animaladministration of the scheme255 the scheme shall be administered by such authority, not lower in rank than the district collector, as may be specified by the central government6 the provisions of this act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in forceact to have overriding effect power to make rules7 (1) the central government may, by notification in the official gazette, make rules for carrying out the purposes of this act3035(2) every rule made under this section 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 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 the 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, 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 reasonsin the recent days, there have been several cases of attacks by wild animals on innocent persons resulting in death or serious injury to those persons there have also been instances when property and crops were damaged by wild animalsit has also been seen that the victims of attack by wild animals are mostly poor peopleafter such attacks, it often happens that they either die or suffer from permanent disability in either case, their dependants have to fight for their survival at present there is no provision for payment of compensation to the persons attacked by wild animals there is a provision for punishment for cruelty to wild animals but there is no provision for compensation if wild animals attack innocent personstherefore, a provision, with due safeguards, has been made for payment of compensation to persons attacked by wild animalsm k raghavan financial memorandumclause 3 of the bill provides that the central government shall frame a scheme for payment of compensation to the persons attacked by wild animals the bill, therefore, if enacted, would involve expenditure from the consolidated fund of india it is likely to involve a recurring expenditure of about rupees three hundred crore per annuma non-recurring expenditure of about rupees two hundred crore is also likely to be involved memorandum regarding delegated legislationclause 7 of the bill empowers the central government to make rules for carrying out the purposes of the bill as the rules will relate to matters of detail only, the delegation of legislative powers is of a normal character———— a billto provide for payment of compensation to persons attacked by wild animals and for matters connected therewith————(shri mk raghavan, mp)gmgipmrnd—988ls(s3)—24072014 | Parliament_bills | 63a7d6a1-1a51-5438-bb28-a6cc63366c48 |
the finance bill, 2008 _________ arrangement of clauses __________ chapter i preliminary clauses1short title and commencement chapter ii rates of income-tax2income-tax chapter iii direct taxes income-tax3amendment of section 24amendment of section 105amendment of section 10a6amendment of section 10b7amendment of section 358amendment of section 35d9amendment of section 3610amendment of section 4011amendment of section 40a12amendment of section 4313amendment of section 44ab14amendment of section 4715amendment of section 4916amendment of section 80c17substitution of new section for section 80d18amendment of section 80-ib19amendment of section 80-id20amendment of section 88e21amendment of section 111a22amendment of section 115ad23amendment of section 115jb24amendment of section 115-o25amendment of section 115wb26amendment of section 115wc27amendment of section 115wd28amendment of section 115we29insertion of new section 115wkbclauses30amendment of section 13931amendment of section 14232amendment of section 14333amendment of section 14734amendment of section 15135amendment of section 15336amendment of section 153a37amendment of section 153b38amendment of section 153c39amendment of section 153d40amendment of section 15641amendment of section 19142amendment of section 19343amendment of section 194c44amendment of section 19545substitution of new section for section 19946amendment of section 20147amendment of section 20348amendment of section 206c49amendment of section 25150amendment of section 25451insertion of new section 268a52amendment of section 27153insertion of new section 273aa54insertion of new section 278ab55insertion of new section 282a56insertion of new section 292bb57amendment of section 292c58amendment of section 29559amendment of fourth schedule wealth-tax60amendment of section 1761amendment of section 17a62amendment of section 1863insertion of new section 18ba64amendment of section 23a65insertion of new section 35ga66insertion of new section 4267amendment of section 42d chapter iv indirect taxes customs68amendment of section 28b69amendment of section 10870amendment of section 11771amendment of section 129a72amendment of section 129d73insertion of new section 129ee74amendment of section 14175amendment of section 15876amendment of notification issued under sub-section (1) of section 25 of thecustoms act, 1962(iii)clausescustoms tariff77amendment of act 51 of 1975excise78amendment of section 279insertion of new section 3a80amendment of section 11b81amendment of section 11d82amendment of section 11dd83amendment of section 35b84amendment of section 35e85insertion of new section 35ff86amendment of central excise rules, 194487amendment of central excise (no 2) rules, 200188amendment of central excise rules, 2002excise tariff89amendment of act 5 of 1986 chapter v service tax90amendment of act 32 of 1994 chapter vi service tax dispute resolution scheme, 200891short title and commencement92definitions93applicability of scheme94settlement of tax payment95particulars to be furnished in declaration96time and manner of payment of tax arrear97appellate authority not to proceed in certain cases98no refund of amount paid under the scheme99removal of doubts100power to remove difficulties101power to make rules chapter vii commodities transaction tax102extent, commencement and application103definitions104charge of commodities transaction tax105value of taxable commodities transaction106collection and recovery of commodities transaction tax107furnishing of return108assessment109rectification of mistake110interest on delayed payment of commodities transaction tax111penalty for failure to collect or pay commodities transaction tax112penalty for failure to furnish return113penalty for failure to comply with noticeclauses114penalty not to be imposed in certain cases115application of certain provisions of income-tax act116appeal to commissioner of income-tax (appeals)117appeal to appellate tribunal118punishment for false statement119institution of prosecution120power to make rules121power to remove difficulties chapter viii miscellaneous122amendment of seventh schedule to act 14 of 2001123amendment of section 13 of act 58 of 2002124amendment of act 23 of 2004125amendment of act 18 of 2005 the first schedule the second schedule the third schedule the fourth schedule the fifth schedule the sixth schedule the seventh schedule the eighth schedule the ninth schedule bill no 17-c of 2008 the finance bill, 2008 abillto give effect to the financial proposals of the central government for the financial year 2008-2009be it enacted by parliament in the fifty-ninth year of the republic of india as follows:— chapter i preliminary1 (1) this act may be called the finance act, 2008short title and commencement(2) save as otherwise provided in this act, sections 2 to 67 shall be deemed to have come into force on the 1st day of april, 2008 chapter ii rates of income-taxincome-tax43 of 19612 (1) subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of april, 2008, income-tax shall be charged at the rates specified in part i of the first schedule and such tax as reduced by the rebate of income-tax calculated under chapter viii-a of the income-tax act, 1961 (hereinafter referred to as the income-tax act) shall be increased by a surcharge for purposes of the union calculated in each case in the manner provided therein(2) in the cases to which paragraph a of part i of the first schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding five thousand rupees, in addition to total income, and the total income exceeds one lakh ten thousand rupees, then,—(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after the first one lakh ten thousand rupees of the total income but without being liable to tax], only for the purpose of charging income-tax in respect of the total income; and(b) the income-tax chargeable shall be calculated as follows:—(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in the said paragraph a, as if such aggregate income were the total income;(ii) the net agricultural income shall be increased by a sum of one lakh ten thousand rupees, and the amount of income-tax shall be determined in respect of the net agricultural income as so increased at the rates specified in the said paragraph a, as if the net agricultural income as so increased were the total income;(iii) the amount of income-tax determined in accordance with sub-clause(i) shall be reduced by the amount of income-tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax in respect of the total income:provided that in the case of every woman, resident in india and below the age of sixtyfive years at any time during the previous year, referred to in item (ii) of paragraph a of part i of the first schedule, the provisions of this sub-section shall have effect as if for the words "one lakh ten thousand rupees", the words "one lakh forty-five thousand rupees" had been substituted:provided further that in the case of every individual, being a resident in india, who is of the age of sixty-five years or more at any time during the previous year, referred to in item (iii) of paragraph a of part i of the first schedule, the provisions of this sub-section shall have effect as if for the words "one lakh ten thousand rupees", the words "one lakh ninetyfive thousand rupees" had been substituted:provided also that the amount of income-tax so arrived at, as reduced by the amount of rebate of income-tax calculated under chapter viii-a of the income-tax act, shall be increased by a surcharge, for purposes of the union, calculated in each case in the manner provided in that paragraph and the sum so arrived at shall be the income-tax in respect of the total income(3) in cases to which the provisions of chapter xii or chapter xii-a or chapter xii-hor section 115jb or sub-section (1a) of section 161 or section 164 or section 164a or section 167b of the income- tax act apply, the tax chargeable shall be determined as provided in that chapter or that section, and with reference to the rates imposed by sub-section (1) or the rates as specified in that chapter or section, as the case may be:provided that the amount of income-tax computed in accordance with the provisions of section 111a or section 112 shall be increased by a surcharge, for purposes of the union, as provided in paragraph a, b, c, d or e, as the case may be, of part i of the first schedule:provided further that in respect of any income chargeable to tax under sections 115a,115ab, 115ac, 115aca, 115ad, 115b, 115bb, 115bba, 115bbc, 115e and 115jb or fringe benefits chargeable to tax under section 115wa of the income-tax act, the amount of incometax computed under this sub-section shall be increased by a surcharge, for purposes of the union, calculated,—(a) in the case of every individual, hindu undivided family, association of persons and body of individuals, whether incorporated or not, at the rate of ten per cent of such income-tax where the total income exceeds ten lakh rupees;(b) in the case of every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the income-tax act, at the rate of ten per cent of such income-tax;(c) in the case of every firm and domestic company, at the rate of ten per cent of such income-tax where the total income exceeds one crore rupees;(d) in the case of every company, other than a domestic company, at the rate of two and one-half per cent of such income-tax where the total income exceeds one crore rupees: provided also that in the case of every company having total income chargeable to tax under section 115jb of the income-tax act, and such income exceeds one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:provided also that in respect of any fringe benefits chargeable to tax under section115wa of the income-tax act, income-tax computed under this sub-section shall be increased by a surcharge, for purposes of the union, calculated,—(a) in the case of every association of persons and body of individuals, whether incorporated or not, at the rate of ten per cent of income-tax where the fringe benefits exceed ten lakh rupees;(b) in the case of every firm, artificial juridical person referred to in sub-clause (v)of clause (a) of section 115w of the income-tax act, and domestic company, at the rate of ten per cent of such income-tax;(c) in the case of every company, other than a domestic company, at the rate of two and one-half per cent of such income-tax (4) in cases in which tax has to be charged and paid under section 115-o or subsection (2) of section 115r of the income-tax act, the tax shall be charged and paid at the rates as specified in those sections and shall be increased by a surcharge, for purposes of the union, calculated at the rate of ten per cent of such tax(5) in cases in which tax has to be deducted under sections 193, 194, 194a, 194b,194bb, 194d and 195 of the income-tax act, at the rates in force, the deductions shall be made at the rates specified in part ii of the first schedule and shall be increased by a surcharge, for purposes of the union, calculated in each case, in the manner provided therein(6) in cases in which tax has to be deducted under sections 194c, 194e, 194ee, 194f,194g, 194h, 194-i, 194j, 194la, 196b, 196c and 196d of the income-tax act, the deductions shall be made at the rates specified in those sections and shall be increased by a surcharge, for purposes of the union, calculated,—(a) in the case of every individual, hindu undivided family, association of persons and body of individuals, whether incorporated or not, at the rate of ten per cent of such tax where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten lakh rupees;(b) in the case of every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the income-tax act, at the rate of ten per cent of such tax;(c) in the case of every firm and domestic company, at the rate of ten per cent of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees;(d) in the case of every company, other than a domestic company, at the rate of two and one-half per cent of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees (7) in cases in which tax has to be collected under the proviso to section 194b of the income-tax act, the collection shall be made at the rates specified in part ii of the first schedule, and shall be increased by a surcharge, for purposes of the union, calculated in the manner provided therein(8) in cases in which tax has to be collected under section 206c of the income-tax act, the collection shall be made at the rates specified in that section and shall be increased by a surcharge, for purposes of the union, calculated,—(a) in the case of every individual, hindu undivided family, association of persons and body of individuals, whether incorporated or not, at the rate of ten per cent of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds ten lakh rupees;(b) in the case of every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the income-tax act, at the rate of ten per cent of such tax;(c) in the case of every firm and domestic company at the rate of ten per cent of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees;(d) in the case of every company, other than a domestic company, at the rate of two and one-half per cent of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees (9) subject to the provisions of sub-section (10), in cases in which income-tax has to be charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 174a or section 175 or sub-section (2) of section 176 of the income-tax act or deducted from, or paid on, income chargeable under the head "salaries" under section 192 of the said act or in which the "advance tax" payable under chapter xvii-c of the said act has to be computed at the rate or rates in force, such income-tax or, as the case may be, "advance tax" shall be so charged, deducted or computed at the rate or rates specified in part iii of the first schedule and such tax shall be increased by a surcharge, for purposes of the union, calculated in each case in the manner provided therein:provided that in cases to which the provisions of chapter xii or chapter xii-a or chapter xii-h or section 115jb or sub-section (1a) of section 161 or section 164 or section 164a or section 167b of the income-tax act apply, "advance tax" shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that chapter or section, as the case may be:provided further that the amount of "advance tax" computed in accordance with the provisions of section 111a or section 112 of the income-tax act shall be increased by a surcharge, for purposes of the union, as provided in paragraph a, b, c, d or e, as the case may be, of part iii of the first schedule:provided also that in respect of any income chargeable to tax under sections 115a,115ab, 115ac, 115aca, 115ad, 115b, 115bb, 115bba, 115bbc, 115e and 115jb of the income-tax act, "advance tax" computed under the first proviso shall be increased by a surcharge, for purposes of the union, calculated,—(a) in the case of every individual, hindu undivided family, association of persons and body of individuals, whether incorporated or not, at the rate of ten per cent of "advance tax", where the total income exceeds ten lakh rupees;(b) in the case of every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the income-tax act, at the rate of ten per cent of such "advance tax";(c) in the case of every firm and domestic company, at the rate of ten per cent of such "advance tax", where the total income exceeds one crore rupees;(d) in the case of every company, other than a domestic company, at the rate of two and one-half per cent of such "advance tax", where the total income exceeds one crore rupees:provided also that in the case of every company having total income chargeable to tax under section 115jb of the income-tax act, and such income exceeds one crore rupees, the total amount payable as "advance tax" and surcharge on such income shall not exceed the total amount payable as "advance tax" on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:provided also that in respect of any fringe benefits chargeable to tax under section 115wa of the income-tax act, "advance tax" computed under the first proviso shall be increased by a surcharge, for purposes of the union, calculated,—(a) in the case of every association of persons and body of individuals, whether incorporated or not, at the rate of ten per cent of "advance tax", where the fringe benefits exceed ten lakh rupees;(b) in the case of every firm, artificial juridical person referred to in sub-clause (v)of clause (a) of section 115w of the income-tax act, and domestic company, at the rate of ten per cent of such "advance tax";(c) in the case of every company, other than a domestic company, at the rate of two and one-half per cent of such "advance-tax" (10) in cases to which paragraph a of part iii of the first schedule applies, where the assessee has, in the previous year or, if by virtue of any provision of the income-tax act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any net agricultural income exceeding five thousand rupees, in addition to total income and the total income exceeds one lakh fifty thousand rupees, then, in charging income-tax under sub-section (2) of section 174 or section 174a or section 175 or subsection (2) of section 176 of the said act or in computing the "advance tax" payable under chapter xvii-c of the said act, at the rate or rates in force,—(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after the first one lakh fifty thousand rupees of the total income but without being liable to tax], only for the purpose of charging or computing such income-tax or, as the case may be, "advance tax" in respect of the total income; and(b) such income-tax or, as the case may be, "advance tax" shall be so charged or computed as follows:—(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax or "advance tax" shall be determined in respect of the aggregate income at the rates specified in the said paragraph a, as if such aggregate income were the total income;(ii) the net agricultural income shall be increased by a sum of one lakh fifty thousand rupees, and the amount of income-tax or "advance tax" shall be determined in respect of the net agricultural income as so increased at the rates specified in the said paragraph a, as if the net agricultural income were the total income;(iii) the amount of income-tax or "advance tax" determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax or, as the case may be, "advance tax" determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax or, as the case may be, "advance tax" in respect of the total income: provided that in the case of every woman, resident in india and below the age of sixty-five years at any time during the previous year, referred to in item (ii) of paragraph a of part iii of the first schedule, the provisions of this sub-section shall have effect as if for the words "one lakh fifty thousand rupees", the words "one lakh eighty thousand rupees" had been substituted:provided further that in the case of every individual, being a resident in india, who is of the age of sixty-five years or more at any time during the previous year, referred to in item (iii) of paragraph a of part iii of the first schedule, the provisions of this sub-section shall have effect as if for the words "one lakh fifty thousand rupees", the words "two lakh twenty-five thousand rupees" had been substituted: provided also that the amount of income-tax or "advance tax" so arrived at shall be increased by a surcharge, for purposes of the union, calculated, in each case, in the manner provided therein (11) the amount of income-tax as specified in sub-sections (1) to (10) and as increased by a surcharge, for purposes of the union, calculated in the manner provided therein, shall be further increased by an additional surcharge, for purposes of the union, to be called the "education cess on income-tax", calculated at the rate of two per cent of such income-tax and surcharge so as to fulfil the commitment of the government to provide and finance universalised quality basic education(12) the amount of income-tax as specified in sub-sections (1) to (10) and as increased by a surcharge, for purposes of the union, calculated in the manner provided therein, shall also be increased by an additional surcharge, for purposes of the union, to be called the "secondary and higher education cess on income-tax", calculated at the rate of one per cent of such income-tax and surcharge so as to fulfil the commitment of the government to provide and finance secondary and higher education(13) for the purposes of this section and the first schedule,—(a) "domestic company" means an indian company or any other company which, in respect of its income liable to income-tax under the income-tax act, for the assessment year commencing on the 1st day of april, 2008, has made the prescribed arrangements for the declaration and payment within india of the dividends, including dividends on preference shares, payable out of such income;(b) "insurance commission" means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business, including business relating to the continuance, renewal or revival of policies of insurance;(c) "net agricultural income", in relation to a person, means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in part iv of the first schedule;(d) all other words and expressions used in this section and the first schedule but not defined in this sub-section and defined in the income-tax act shall have the meanings respectively assigned to them in that act chapter iii direct taxes income-tax3 in section 2 of the income-tax act,—amendment of section 2(a) in clause (1a), after explanation 2, the following explanation shall be inserted with effect from the 1st day of april, 2009, namely:—"explanation 3—for the purposes of this clause, any income derived from saplings or seedlings grown in a nursery shall be deemed to be agricultural income;";(b) for clause (15), the following clause shall be substituted with effect from the1st day of april, 2009, namely:—'(15) "charitable purpose" includes relief of the poor, education, medical relief, and the advancement of any other object of general public utility:provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity;'4 in section 10 of the income-tax act,—amendment of section 1026 of 1997(a) after clause (26aa) as omitted by the finance act, 1997, the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of april, 1990, namely:—'(26aaa) in case of an individual, being a sikkimese, any income which accrues or arises to him—(a) from any source in the state of sikkim; or (b) by way of dividend or interest on securities:provided that nothing contained in this clause shall apply to a sikkimese woman who, on or after the 1st day of april, 2008, marries an individual who is not a sikkimeseexplanation—for the purposes of this clause, "sikkimese" shall mean—(i) an individual, whose name is recorded in the register maintained under the sikkim subjects regulation, 1961 read with the sikkim subject rules, 1961 (hereinafter referred to as the "register of sikkim subjects"), immediately before the 26th day of april, 1975; or(ii) an individual, whose name is included in the register of sikkim subjects by virtue of the government of india order no 26030/36/ 90-ici, dated the 7th august, 1990 and order of even number dated the 8th april, 1991; or(iii) any other individual, whose name does not appear in the register of sikkim subjects, but it is established beyond doubt that the name of such individual's father or husband or paternal grandfather or brother from the same father has been recorded in that register;';(b) after clause (26aaa) as so inserted, the following clause shall be inserted with effect from the 1st day of april, 2009, namely:—"(26aab) any income of an agricultural produce market committee or board constituted under any law for the time being in force for the purpose of regulating the marketing of agricultural produce;";(c) in clause (29a), after sub-clause (g), the following sub-clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of april, 2002, namely:—45 of 1953''(h) the coir board established under section 4 of the coir industry act, 1953;"; (d) after clause (42), the following clause shall be inserted, namely:—''(43) any amount received by an individual as a loan, either in lump sum or in instalment, in a transaction of reverse mortgage referred to in clause (xvi) of section 47"a m e n d m e n t of section 10a5 in section 10a of the income-tax act, in sub-section (1), in the fourth proviso, for the figures "2010", the figures "2011" shall be substituted6 in section 10b of the income-tax act, in sub-section (1), in the third proviso, for the figures "2010", the figures "2011" shall be substitutedamendment of section 10b7 in section 35 of the income-tax act, with effect from the 1st day of april, 2009,—a m e n d m e n t of section 35(a) in sub-section (1), after clause (ii), the following clause shall be inserted, namely:—''(iia) an amount equal to one and one-fourth times of any sum paid to a company to be used by it for scientific research:provided that such company–(a) is registered in india, (b) has as its main object the scientific research and development, (c) is, for the purposes of this clause, for the time being approved by the prescribed authority in the prescribed manner, and(d) fulfils such other conditions as may be prescribed;";(b) in sub-section (2ab), after clause (5), the following clause shall be inserted, namely:—''(6) no deduction shall be allowed to a company approved under subclause (c) of clause (iia) of sub-section (1) in respect of the expenditure referred to in clause (1) which is incurred after the 31st day of march, 2008"8 in section 35d of the income-tax act, with effect from the 1st day of april, 2009,—amendment of section 35d(a) for the words "industrial undertaking", wherever they occur, the word"undertaking" shall be substituted;(b) for the words "industrial unit", wherever they occur, the word "unit" shall be substituteda m e n d m e n t of section 369 in section 36 of the income-tax act, in sub-section (1), after clause (xiv), the following clauses shall be inserted with effect from the 1st day of april, 2009, namely:—'(xv) an amount equal to the securities transaction tax paid by the assessee in respect of the taxable securities transactions entered into in the course of his business during the previous year, if the income arising from such taxable securities transactions is included in the income computed under the head "profits and gains of business or profession"explanation—for the purposes of this clause, the expressions "securities transaction tax" and "taxable securities transaction" shall have the meanings respectively assigned to them under chapter vii of the finance (no 2) act, 2004;(xvi) an amount equal to the commodities transaction tax paid by the assessee in respect of the taxable commodities transactions entered into in the course of his business during the previous year, if the income arising from such taxable commodities transactions is included in the income computed under the head "profits and gains of business or profession"explanation—for the purposes of this clause, the expressions "commodities transaction tax" and "taxable commodities transaction" shall have the meanings respectively assigned to them under chapter vii of the finance act, 2008' 10 in section 40 of the income-tax act, in clause (a),—amendment of section 40(a) in sub-clause (ia), with effect from the 1st day of april, 2005,—(i) for the words, brackets and figures "has not been paid during the previous year, or in the subsequent year before the expiry of the time prescribed under sub-section (1) of section 200", the following words, brackets and figures shall be substituted and shall be deemed to have been substituted, namely:—"has not been paid,—(a) in a case where the tax was deductible and was so deducted during the last month of the previous year, on or before the due date specified in sub-section (1) of section 139; or(b) in any other case, on or before the last day of the previous year";(ii) for the proviso, the following proviso shall be substituted and shall be deemed to have been substituted, namely:—"provided that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted—(a) during the last month of the previous year but paid after the said due date; or(b) during any other month of the previous year but paid after the end of the said previous year, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid";(b) sub-clause (ib) shall be omitted with effect from the 1st day of april, 2009amendment of section 40a11 in section 40a of the income-tax act, for sub-section (3), the following subsections shall be substituted with effect from the 1st day of april, 2009, namely:—''(3) where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure(3a) where an allowance has been made in the assessment for any year in respect of any liability incurred by the assessee for any expenditure and subsequently during any previous year (hereinafter referred to as subsequent year) the assessee makes payment in respect thereof, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, the payment so made shall be deemed to be the profits and gains of business or profession and accordingly chargeable to income-tax as income of the subsequent year if the payment or aggregate of payments made to a person in a day, exceeds twenty thousand rupees:provided that no disallowance shall be made and no payment shall be deemed to be the profits and gains of business or profession under sub-section (3) and this subsection where a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, in such cases and under such circumstances as may be prescribed, having regard to the nature and extent of banking facilities available, considerations of business expediency and other relevant factors''amendment of section 4312 in section 43 of the income-tax act, in clause (6), after explanation 5, the following explanation shall be inserted and shall be deemed to have been inserted with effect from the1st day of april, 2003, namely:—''explanation 6—where an assessee was not required to compute his total income for the purposes of this act for any previous year or years preceding the previous year relevant to the assessment year under consideration,—(a) the actual cost of an asset shall be adjusted by the amount attributable to the revaluation of such asset, if any, in the books of account;(b) the total amount of depreciation on such asset, provided in the books of account of the assessee in respect of such previous year or years preceding the previous year relevant to the assessment year under consideration shall be deemed to be the depreciation actually allowed under this act for the purposes of this clause; and(c) the depreciation actually allowed under clause (b) shall be adjusted by the amount of depreciation attributable to such revaluation of the asset"amendment of section 44ab13 in section 44ab of the income-tax act, in the explanation, in clause (ii), for the figures, letters and words "31st day of october", the figures, letters and words "30th day of september" shall be substituted14 in section 47 of the income-tax act,—amendment of section 47(a) after clause (x), the following clause shall be inserted, namely:—''(xa) any transfer by way of conversion of bonds referred to in clause (a)of sub-section (1) of section 115ac into shares or debentures of any company;";(b) after clause (xv), the following clause shall be inserted, namely:—''(xvi) any transfer of a capital asset in a transaction of reverse mortgage under a scheme made and notified by the central government"amendment of section 4915 in section 49 of the income-tax act, for sub-section (2a), the following subsection shall be substituted, namely:—''(2a) where the capital asset, being a share or debenture of a company, became the property of the assessee in consideration of a transfer referred to in clause (x) or clause (xa) of section 47, the cost of acquisition of the asset to the assessee shall be deemed to be that part of the cost of debenture, debenture-stock, bond or deposit certificate in relation to which such asset is acquired by the assessee" 16 in section 80c of the income-tax act,—amendment of section 80c(a) in sub-section (2), after clause (xxii), the following clauses shall be inserted, namely:—"(xxiii) in an account under the senior citizens savings scheme rules,2004;(xxiv) as five year time deposit in an account under the post office time deposit rules, 1981"; (b) after sub-section (6), the following sub-section shall be inserted, namely:— "(6a) if any amount, including interest accrued thereon, is withdrawn by the assessee from his account referred to in clause (xxiii) or clause (xxiv) of subsection (2), before the expiry of the period of five years from the date of its deposit, the amount so withdrawn shall be deemed to be the income of the assessee of the previous year in which the amount is withdrawn and shall be liable to tax in the assessment year relevant to such previous year:provided that the amount liable to tax shall not include the following amounts, namely:—(i) any amount of interest, relating to deposits referred to in clause(xxiii) or clause (xxiv) of sub-section (2), which has been included in the total income of the assessee of the previous year or years preceding such previous year; and(ii) any amount received by the nominee or legal heir of the assessee, on the death of such assessee, other than interest, if any, accrued thereon, which was not included in the total income of the assessee for the previous year or years preceding such previous year"17 for section 80d of the income-tax act, the following section shall be substituted with effect from the 1st day of april, 2009,—new section for section 80d'80d (1) in computing the total income of an assessee, being an individual or a hindu undivided family, there shall be deducted such sum, as specified in sub-section (2) or sub-section (3), payment of which is made by any mode, other than cash, in the previous year out of his income chargeable to taxdeduction in respect of health insurance premia(2) where the assessee is an individual, the sum referred to in sub-section (1)shall be the aggregate of the following, namely:—(a) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his family as does not exceed in the aggregate fifteen thousand rupees; and(b) the whole of the amount paid to effect or to keep in force an insurance on the health of the parent or parents of the assessee as does not exceed in the aggregate fifteen thousand rupeesexplanation—for the purposes of clause (a), "family" means the spouse and dependant children of the assessee (3) where the assessee is a hindu undivided family, the sum referred to in subsection (1) shall be the whole of the amount paid to effect or to keep in force an insurance on the health of any member of that hindu undivided family as does not exceed in the aggregate fifteen thousand rupees(4) where the sum specified in clause (a) or clause (b) of sub-section (2) or in sub-section (3) is paid to effect or keep in force an insurance on the health of any person specified therein, and who is a senior citizen, the provisions of this section shall have effect as if for the words "fifteen thousand rupees", the words "twenty thousand rupees" had been substitutedexplanation— for the purposes of this sub-section, "senior citizen" means an individual resident in india who is of the age of sixty-five years or more at any time during the relevant previous year(5) the insurance referred to in this section shall be in accordance with a scheme made in this behalf by—57 of 1972(a) the general insurance corporation of india formed under section 9 of the general insurance business (nationalisation) act, 1972 and approved by the central government in this behalf; or(b) any other insurer and approved by the insurance regulatory and development authority established under sub-section (1) of section 3 of the insurance regulatory and development authority act, 1999'41 of 1999 18 in section 80-ib of the income-tax act,—amendment of section 80-ib(a) in sub-section (9), after the second proviso, the following proviso shall be inserted, namely:—"provided also that where such undertaking begins refining of mineral oil on or after the 1st day of april, 2009, no deduction under this section shall be allowed in respect of such undertaking unless such undertaking fulfils all the following conditions, namely:—(i) it is wholly owned by a public sector company or any other company in which a public sector company or companies hold at least forty-nine per cent, of the voting rights;(ii) it is notified by the central government in this behalf on or before the 31st day of may, 2008; and(iii) it begins refining not later than the 31st day of march, 2012";(b) after sub-section (11b), the following sub-section shall be inserted with effect from the 1st day of april, 2009, namely:—'(11c) the amount of deduction in the case of an undertaking deriving profits from the business of operating and maintaining a hospital located anywhere in india, other than the excluded area, shall be hundred per cent of the profits and gains derived from such business for a period of five consecutive assessment years, beginning with the initial assessment year, if–(i) the hospital is constructed and has started or starts functioning at any time during the period beginning on the 1st day of april, 2008 and ending on the 31st day of march, 2013;(ii) the hospital has at least one hundred beds for patients; (iii) the construction of the hospital is in accordance with the regulations or bye-laws of the local authority; and(iv) the assessee furnishes along with the return of income, a report of audit in such form and containing such particulars, as may be prescribed, and duly signed and verified by an accountant, as defined in the explanation to sub-section (2) of section 288, certifying that the deduction has been correctly claimedexplanation— for the purposes of this sub-section—(a) a hospital shall be deemed to have been constructed on the date on which a completion certificate in respect of such construction is issued by the local authority concerned;(b) "initial assessment year" means the assessment year relevant to the previous year in which the business of the hospital starts functioning;(c) "excluded area" shall mean an area comprising—(i) greater mumbai urban agglomeration; (ii) delhi urban agglomeration; (iii) kolkata urban agglomeration; (iv) chennai urban agglomeration; (v) hyderabad urban agglomeration; (vi) bangalore urban agglomeration; (vii) ahmedabad urban agglomeration; (viii) district of faridabad; (ix) district of gurgaon; (x) district of gautam budh nagar; (xi) district of ghaziabad; (xii) district of gandhinagar; and (xiii) city of secunderabad;(d) the area comprising an urban agglomeration shall be the area included in such urban agglomeration on the basis of the 2001 census'19 in section 80-id of the income-tax act, with effect from the 1st day of april, 2009,—amendment of section 80-id(a) in sub-section (2), after clause (ii), the following clause shall be inserted, namely:—''(iii) engaged in the business of hotel located in the specified district having a world heritage site, if such hotel is constructed and has started or starts functioning at any time during the period beginning on the 1st day of april, 2008 and ending on the 31st day of march, 2013"; (b) in sub-section (6), after clause (d), the following shall be inserted, namely:—'(e) "specified district having a world heritage site" means districts, specified in column (2) of the table below, of the states, specified in the corresponding entry in column (3) of the said table:| | sno name of district | name of state ||-----|--------------------------|-----------------|| (1) | (2) | (3) |1agrauttar pradesh2jalgaonmaharashtra3aurangabadmaharashtra4kancheepuramtamil nadu5puriorissa6bharatpurrajasthan7chhatarpurmadhya pradesh8thanjavurtamil nadu9bellarykarnataka10south 24 parganaswest bengal(excluding areas falling within the kolkata urban agglomeration on the basis of the 2001 census)11chamoliuttarakhand12raisenmadhya pradesh13gayabihar14bhopalmadhya pradesh15panchmahalgujarat16kamrupassam17goalparaassam18nagaonassam19north goagoa20south goagoa21darjeelingwest bengal22nilgiritamil nadu''amendment of section 88e20 in section 88e of the income-tax act, after sub-section (2), the following subsection shall be inserted, namely:—''(3) no deduction under this section shall be allowed in, or after, the assessment year beginning on the 1st day of april, 2009"amendment of section 111a21 in section 111a of the income-tax act, in sub-section(1), in clause (i), for the words ''ten per cent'', the words ''fifteen per cent'' shall be substituted with effect from the 1st day of april, 2009amendment of section 115ad22 in section 115ad of the income-tax act, in sub-section(1), in the proviso, for the words ''ten per cent'', the words ''fifteen per cent'' shall be substituted with effect from the 1st day of april, 2009amendment of section 115jb23 in section 115jb of the income-tax act, after sub-section (2),—(a) the explanation shall be numbered as explanation 1 and in explanation 1as so numbered, after clause (g), for the portion beginning with the words ''if any amount referred '' and ending with the words "as reduced by—", the following shall be substituted and shall be deemed to have been substituted with effect from the 1st day of april, 2001, namely:—''(h) the amount of deferred tax and the provision therefor, if any amount referred to in clauses (a) to (h) is debited to the profit and loss account, and as reduced by—'';(b) in explanation 1 as so numbered, after clause (vii), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of april, 2001, namely:—"(viii) the amount of deferred tax, if any such amount is credited to the profit and loss account"; (c) after explanation 1 as so numbered, the following shall be inserted and shall be deemed to have been inserted with effect from the 1st day of april, 2001, namely:—''explanation 2— for the purposes of clause (a) of explanation 1, the amount of income-tax shall include—(i) any tax on distributed profits under section 115-o or on distributed income under section 115r;(ii) any interest charged under this act; (iii) surcharge, if any, as levied by the central acts from time to time; (iv) education cess on income-tax, if any, as levied by the central acts from time to time; and(v) secondary and higher education cess on income-tax, if any, as levied by the central acts from time to time"amendment of section 115-o24 in section 115-o of the income-tax act, after sub-section (1), the following subsection shall be inserted, namely:—''(1a) the amount referred to in sub-section (1) shall be reduced by the amount of dividend, if any, received by the domestic company during the financial year, if–(a) such dividend is received from its subsidiary; (b) the subsidiary has paid tax under this section on such dividend; and (c) the domestic company is not a subsidiary of any other company:provided that the same amount of dividend shall not be taken into account for reduction more than once explanation–for the purposes of this sub-section, a company shall be a subsidiary of another company, if such other company holds more than half in nominal value of the equity share capital of the company" 25 in section 115wb of the income-tax act,—amendment of section 115wb(a) in sub-section (1), in the explanation to clause (d), in clause (i), for the words "and includes employees' stock option", the words "and, where employees' stock option has been granted under any plan or scheme therefor, includes the securities offered under such plan or scheme" shall be substituted;(b) in sub-section (2), with effect from the 1st day of april, 2009,—(i) in clause (b), after sub-clause (ii), the following sub-clause shall be inserted, namely:—''(iii) any expenditure on or payment through non-transferable prepaid electronic meal card usable only at eating joints or outlets and which fulfils such other conditions as may be prescribed;"; (ii) in clause (e), for the explanation, the following explanation shall be substituted, namely:—''explanation–for the purposes of this clause, any expenditure incurred or payment made to–(i) fulfil any statutory obligation; or (ii) mitigate occupational hazards; or (iii) provide first aid facilities in the hospital or dispensary run by the employer; or(iv) provide crèche facility for the children of the employee; or(v) sponsor a sportsman, being an employee; or (vi) organise sports events for employees, shall not be considered as expenditure for employees' welfare;"; (iii) clause (k) shall be omittedamendment of section 115wc26 in section 115wc of the income-tax act, in sub-section (1), with effect from the1st day of april, 2009,—(i) in clause (c), for the words, brackets and letters "clauses (a) to (k)", the words, brackets and letters "clauses (a) to (l)" shall be substituted;(ii) in clause (d), for the words, brackets and letters "clauses (l) to (p)", the words, brackets and letters "clauses (m) to (p)" shall be substitutedamendment of section 115wd27 in section 115wd of the income-tax act, in sub-section (1), in the explanation, in clause (a), for the figures, letters and words "31st day of october", the figures, letters and words "30th day of september" shall be substitutedamendment of section 115we28 in section 115we of the income-tax act,—(a) for sub-section (1), the following sub-section shall be substituted, namely:—'(1) where a return has been made under section 115wd, such return shall be processed in the following manner, namely:—(a) the value of fringe benefits shall be computed after making the following adjustments, namely:—(i) any arithmetical error in the return; or (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; (b) the tax and interest, if any, shall be computed on the basis of the value of fringe benefits computed under clause (a);(c) the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax and interest, if any, computed under clause (b) by any advance tax paid, any tax paid on self-assessment and any amount paid otherwise by way of tax or interest;(d) an intimation shall be prepared or generated and sent to the assessee specifying the sum determined to be payable by, or the amount of refund due to, the assessee under clause (c); and(e) the amount of refund due to the assessee in pursuance of the determination under clause (c) shall be granted to the assessee:provided that no intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the return is made explanation–for the purposes of this sub-section,—(a) "an incorrect claim apparent from any information in the return"shall mean a claim, on the basis of an entry, in the return,—(i) of an item, which is inconsistent with another entry of the same or some other item in such return;(ii) in respect of which the information required to be furnished to substantiate such entry has not been so furnished under this act; or(iii) in respect of a deduction or value of fringe benefits, where such deduction or value exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction; (b) the acknowledgment of the return shall be deemed to be the intimation in a case where no sum is payable by, or refundable to, the assessee under clause (c), and where no adjustment has been made under clause (a)(1a) for the purposes of processing of returns under sub-section (1), the board may make a scheme for centralised processing of returns with a view to expeditiously determining the tax payable by, or the refund due to, the assessee as required under that sub-section(1b) save as otherwise expressly provided, for the purpose of giving effect to the scheme made under sub-section (1a), the central government may, by notification in the official gazette, direct that any of the provisions of this act relating to processing of returns shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in that notification; so, however, that no direction shall be issued after the 31st day of march, 2009(1c) every notification issued under sub-section (1b), along with the scheme made under sub-section (1a), shall, as soon as may be after the notification is issued, be laid before each house of parliament'; (b) in sub-section (2), in the proviso, for the words "twelve months from the end of the month", the words "six months from the end of the financial year" shall be substituted 29 after section 115wka of the income-tax act, the following section shall be inserted, namely:—insertion of new section 115wkbdeemed payment of tax by employee amendment of section 139amendment of section 142 amendment of section 143"115wkb (1) where an employer has paid any fringe benefit tax with respect to allotment or transfer of specified security or sweat equity shares, referred to in clause (d) of sub-section (1) of section 115wb, and has recovered such tax subsequently from an employee, it shall be deemed that the fringe benefit tax so recovered is the tax paid by such employee in relation to the value of the fringe benefit provided to him only to the extent to which the amount thereof relates to the value of the fringe benefit provided to such employee, as determined under clause (ba) of sub-section (1) of section 115wc(2) notwithstanding anything contained in any other provisions of this act, where the fringe benefit tax recovered from the employee is deemed to be the tax paid by such employee under sub-section (1), such employee shall, under this act, not be entitled to claim —(i) any refund out of such payment of tax; or (ii) any credit of such payment of tax against tax liability on other income or against any other tax liability"30 in section 139 of the income-tax act,—(a) in sub-section (1), in explanation 2, in clause (a), for the figures, letters and words "31st day of october", the figures, letters and words "30th day of september" shall be substituted;(b) in sub-section (9), in the explanation, in clause (c), in sub-clause (i), the words, figures and letters "before the 1st day of april, 2008" shall be omitted 31 in section 142 of the income-tax act, in sub-section (2c), in the proviso, for the words "on an application", the words "suo motu, or on an application" shall be substituted32 in section 143 of the income-tax act,—(a) for sub-section (1), the following sub-sections shall be substituted, namely:—'(1) where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:—(a) the total income or loss shall be computed after making the following adjustments, namely:—(i) any arithmetical error in the return; or (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; (b) the tax and interest, if any, shall be computed on the basis of the total income computed under clause (a);(c) the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax and interest, if any, computed under clause (b) by any tax deducted at source, any tax collected at source, any advance tax paid, any relief allowable under an agreement under section 90 or section 90a, or any relief allowable under section 91, any rebate allowable under part a of chapter viii, any tax paid on self-assessment and any amount paid otherwise by way of tax or interest;(d) an intimation shall be prepared or generated and sent to the assessee specifying the sum determined to be payable by, or the amount of refund due to, the assessee under clause (c); and(e) the amount of refund due to the assessee in pursuance of the determination under clause (c) shall be granted to the assessee: provided that an intimation shall also be sent to the assessee in a case where the loss declared in the return by the assessee is adjusted but no tax or interest is payable by, or no refund is due to, him:provided further that no intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the return is madeexplanation—for the purposes of this sub-section,—(a) "an incorrect claim apparent from any information in the return"shall mean a claim, on the basis of an entry, in the return,—(i) of an item, which is inconsistent with another entry of the same or some other item in such return;(ii) in respect of which the information required to be furnished under this act to substantiate such entry has not been so furnished; or(iii) in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction; (b) the acknowledgment of the return shall be deemed to be the intimation in a case where no sum is payable by, or refundable to, the assessee under clause (c), and where no adjustment has been made under clause (a)(1a) for the purposes of processing of returns under sub-section (1), the board may make a scheme for centralised processing of returns with a view to expeditiously determining the tax payable by, or the refund due to, the assessee as required under the said sub-section(1b) save as otherwise expressly provided, for the purpose of giving effect to the scheme made under sub-section (1a), the central government may, by notification in the official gazette, direct that any of the provisions of this act relating to processing of returns shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in that notification; so, however, that no direction shall be issued after the 31st day of march, 2009(1c) every notification issued under sub-section (1b), along with the scheme made under sub-section (1a), shall, as soon as may be after the notification is issued, be laid before each house of parliament'; (b) in sub-section (2), in clause (ii), for the proviso, the following proviso shall be substituted, namely:—''provided that no notice under clause (ii) shall be served on the assessee after the expiry of six months from the end of the financial year in which the return is furnished"33 in section 147 of the income-tax act, after the proviso, the following proviso shall be inserted, namely:—amendment of section 147''provided further that the assessing officer may assess or reassess such income, other than the income involving matters which are the subject matters of any appeal, reference or revision, which is chargeable to tax and has escaped assessment" 34 in section 151 of the income-tax act, after sub-section (2), the following explanation shall be inserted and shall be deemed to have been inserted with effect from the amendment of section 151amendment of section 153 amendment of section 153a amendment of section 153b1st day of october, 1998, namely:—''explanation—for the removal of doubts, it is hereby declared that the joint commissioner, the commissioner or the chief commissioner, as the case may be, being satisfied on the reasons recorded by the assessing officer about fitness of a case for the issue of notice under section 148, need not issue such notice himself" 35 in section 153 of the income-tax act, after sub-section (3),—(a) the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of june, 2003, namely:—''(4) notwithstanding anything contained in the foregoing provisions of this section, sub-section (2) of section 153a and sub-section (1) of section153b, the order of assessment or reassessment, relating to any assessment year, which stands revived under sub-section (2) of section 153a, shall be made within one year from the end of the month of such revival or within the period specified in this section or sub-section (1) of section 153b, whichever is later";(b) in explanation 1,—(i) in the proviso, for the brackets, figures, word and letter "(2) and (2a)", the brackets, figures, letter and word "(2), (2a) and (4)" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of june, 2003;(ii) after the proviso, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of june, 2007, namely:—''provided further that where a proceeding before the settlement commission abates under section 245ha, the period of limitation available under this section to the assessing officer for making an order of assessment, reassessment or re-computation, as the case may be, shall, after the exclusion of the period under sub-section (4) of section 245ha, be not less than one year;and where such period of limitation is less than one year, it shall be deemed to have been extended to one year; and for the purposes of determining the period of limitation under sections 149, 153b, 154, 155, 158be and 231 and for the purposes of payment of interest under section 243 or section 244 or, as the case may be, section 244a, this proviso shall also apply accordingly''36 section 153a of the income-tax act shall be renumbered as sub-section (1) thereof and,—(a) in sub-section (1) as so renumbered, in the second proviso, for the words"referred to in this section", the words "referred to in this sub-section" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of june, 2003;(b) after sub-section (1) as so renumbered and before the explanation, the following shall be inserted and shall be deemed to have been inserted with effect from the 1st day of june, 2003, namely:—''(2) if any proceeding initiated or any order of assessment or reassessment made under sub-section (1) has been annulled in appeal or any other legal proceeding, then, notwithstanding anything contained in sub-section (1) or section 153, the assessment or reassessment relating to any assessment year which has abated under the second proviso to sub-section (1), shall stand revived with effect from the date of receipt of the order of such annulment by the commissioner:provided that such revival shall cease to have effect, if such order of annulment is set aside"37 in section 153b of the income-tax act, in sub-section (1), with effect from the 1st day of june, 2003,—(i) in clause (a), for the word, figures and letter "section 153a", the words, brackets, figures and letter "sub-section (1) of section 153a" shall be substituted and shall be deemed to have been substituted;(ii) in the explanation,—(a) after clause (vi) and before the words "shall be excluded", the following clause shall be inserted and shall be deemed to have been inserted, namely:—''(vii) the period commencing from the date of annulment of a proceeding or order of assessment or reassessment referred to in subsection (2) of section 153a till the date of the receipt of the order setting aside the order of such annulment, by the commissioner,"; (b) in the proviso, for the words, brackets and letters "clause (a) or clause(b) of this section", the words, brackets and letters "clause (a) or clause (b) of this sub-section" shall be substituted and shall be deemed to have been substitutedamendment of section 153c38 in section 153c of the income-tax act, in sub-section (1), in the proviso, for the word, figures and letter "section 153a", the words, brackets, figures and letter "sub-section (1) of section 153a" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of june, 2007amendment of section 153d39 in section 153d of the income-tax act, for the word, figures and letter "section153a", the words, brackets, figures and letter "sub-section (1) of section 153a" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of june, 2003amendment of section 15640 in section 156 of the income-tax act, the following proviso shall be inserted, namely:—''provided that where any sum is determined to be payable by the assessee under sub-section (1) of section 143, the intimation under that sub-section shall be deemed to be a notice of demand for the purposes of this section"amendment of section 19141 in section 191 of the income-tax act, for the explanation, the following explanation shall be substituted and shall be deemed to have been substituted with effect from the 1st day of june, 2003, namely:—''explanation–for the removal of doubts, it is hereby declared that if any person, including the principal officer of a company,—(a) who is required to deduct any sum in accordance with the provisions of this act; or(b) referred to in sub-section (1a) of section 192, being an employer, does not deduct, or after so deducting fails to pay, or does not pay, the whole or any part of the tax, as required by or under this act, and where the assessee has also failed to pay such tax directly, then, such person shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default within the meaning of sub-section (1) of section 201, in respect of such tax"amendment of section 19342 in section 193 of the income-tax act, in the proviso, after clause (viii) and before the explanation, the following clause shall be inserted with effect from the 1st day of june,2008, namely:—42 of 1956''(ix) any interest payable on any security issued by a company, where such security is in dematerialised form and is listed on a recognised stock exchange in india in accordance with the securities contracts (regulation) act, 1956 and the rules made thereunder"amendment of section 194c43 in section 194c of the income-tax act, in sub-section (1), in clause (k), after the words ''hindu undivided family", the words "or an association of persons or a body of individuals, whether incorporated or not, other than those falling under any of the preceding clauses" shall be inserted with effect from the 1st day of june, 2008amendment of section 19544 in section 195 of the income-tax act, after sub-section (5), the following subsection shall be inserted, namely:—''(6) the person referred to in sub-section (1) shall furnish the information relating to payment of any sum in such form and manner as may be prescribed by the board" 45 for section 199 of the income-tax act, the following section shall be substituted, namely:—substitution of new section for section 199 credit for tax deducted"199 (1) any deduction made in accordance with the foregoing provisions of this chapter and paid to the central government shall be treated as a payment of tax on behalf of the person from whose income the deduction was made, or of the owner of the security, or of the depositor or of the owner of property or of the unit-holder, or of the shareholder, as the case may be(2) any sum referred to in sub-section (1a) of section 192 and paid to the central government shall be treated as the tax paid on behalf of the person in respect of whose income such payment of tax has been made(3) the board may, for the purposes of giving credit in respect of tax deducted or tax paid in terms of the provisions of this chapter, make such rules as may be necessary, including the rules for the purposes of giving credit to a person other than those referred to in sub-section (1) and sub-section (2) and also the assessment year for which such credit may be given"amendment of section 20146 in section 201 of the income-tax act, for sub-section (1), the following sub-section shall be substituted and shall be deemed to have been substituted with effect from the 1st day of june, 2002, namely:—''(1) where any person, including the principal officer of a company,—(a) who is required to deduct any sum in accordance with the provisions of this act; or(b) referred to in sub-section (1a) of section 192, being an employer, does not deduct, or does not pay, or after so deducting fails to pay, the whole or any part of the tax, as required by or under this act, then, such person, shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of such tax:provided that no penalty shall be charged under section 221 from such person, unless the assessing officer is satisfied that such person, without good and sufficient reasons, has failed to deduct and pay such tax"amendment of section 20347 in section 203 of the income-tax act, in sub-section (3), for the figures, letters and words "1st day of april, 2008", the figures, letters and words "1st day of april, 2010" shall be substituted48 in section 206c of the income-tax act,—amendment of section 206c(a) for sub-section (4), the following sub-section shall be substituted, namely:—''(4) any amount collected in accordance with the provisions of this section and paid to the credit of the central government shall be deemed to be a payment of tax on behalf of the person from whom the amount has been collected and credit shall be given to such person for the amount so collected in a particular assessment year in accordance with the rules as may be prescribed by the board from time to time"; (b) in sub-section (5), in the first proviso, for the figures, letters and words "1st day of april, 2008", the figures, letters and words "1st day of april, 2010" shall be substituted49 in section 251 of the income-tax act, in sub-section (1), after clause (a), the following clause shall be inserted, namely:—amendment of section 251"(aa) in an appeal against the order of assessment in respect of which the proceeding before the settlement commission abates under section 245ha, he may, after taking into consideration all the material and other information produced by the assessee before, or the results of the inquiry held or evidence recorded by, the settlement commission, in the course of the proceeding before it and such other material as may be brought on his record, confirm, reduce, enhance or annual the assessment;" 50 in section 254 of the income-tax act, in sub-section (2a), for the third proviso, the following proviso shall be substituted with effect from the 1st day of october, 2008, namely:—amendment of section 254''provided also that if such appeal is not so disposed of within the period allowed under the first proviso or the period or periods extended or allowed under the second proviso, which shall not, in any case, exceed three hundred and sixty-five days, the order of stay shall stand vacated after the expiry of such period or periods, even if the delay in disposing of the appeal is not attributable to the assessee"insertion of new section 268a51 after section 268 of the income-tax act, the following section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of april, 1999, namely:—filing of appeal or application for reference by income-tax authorityamendment of section 271"268a (1) the board may, from time to time, issue orders, instructions or directions to other income-tax authorities, fixing such monetary limits as it may deem fit, for the purpose of regulating filing of appeal or application for reference by any income-tax authority under the provisions of this chapter(2) where, in pursuance of the orders, instructions or directions issued under sub-section (1), an income-tax authority has not filed any appeal or application for reference on any issue in the case of an assessee for any assessment year, it shall not preclude such authority from filing an appeal or application for reference on the same issue in the case of–(a) the same assessee for any other assessment year; or (b) any other assessee for the same or any other assessment year(3) notwithstanding that no appeal or application for reference has been filed by an income-tax authority pursuant to the orders or instructions or directions issued under sub-section (1), it shall not be lawful for an assessee, being a party in any appeal or reference, to contend that the income-tax authority has acquiesced in the decision on the disputed issue by not filing an appeal or application for reference in any case(4) the appellate tribunal or court, hearing such appeal or reference, shall have regard to the orders, instructions or directions issued under sub-section (1) and the circumstances under which such appeal or application for reference was filed or not filed in respect of any case(5) every order, instruction or direction which has been issued by the board fixing monetary limits for filing an appeal or application for reference shall be deemed to have been issued under sub-section (1) and the provisions of sub-sections (2), (3) and (4) shall apply accordingly" 52 in section 271 of the income-tax act, after sub-section (1a), the following subsection shall be inserted and shall be deemed to have been inserted with effect from the 1st day of april, 1989, namely:—''(1b) where any amount is added or disallowed in computing the total income or loss of an assessee in any order of assessment or reassessment and the said order contains a direction for initiation of penalty proceedings under clause (c) of subsection (1), such an order of assessment or reassessment shall be deemed to constitute satisfaction of the assessing officer for initiation of the penalty proceedings under the said clause (2)"insertion of new section 273aapower of commissioner to grant immunity from penaltyinsertion of new section 278abpower of commissioner to grant immunity from prosecution45 of 1860insertion of new section 282aauthentication of notices and other documents53 after section 273a of the income-tax act, the following section shall be inserted, namely:—"273aa (1) a person may make an application to the commissioner for granting immunity from penalty, if—(a) he has made an application for settlement under section 245c and the proceedings for settlement have abated under section 245ha; and(b) the penalty proceedings have been initiated under this act(2) the application to the commissioner under sub-section (1) shall not be made after the imposition of penalty after abatement(3) the commissioner may, subject to such conditions as he may think fit to impose, grant to the person immunity from the imposition of any penalty under this act, if he is satisfied that the person has, after the abatement, co-operated with the income-tax authority in the proceedings before him and has made a full and true disclosure of his income and the manner in which such income has been derived(4) the immunity granted to a person under sub-section (3) shall stand withdrawn, if such person fails to comply with any condition subject to which the immunity was granted and thereupon the provisions of this act shall apply as if such immunity had not been granted(5) the immunity granted to a person under sub-section (3) may, at any time, be withdrawn by the commissioner, if he is satisfied that such person had, in the course of any proceedings, after abatement, concealed any particulars material to the assessment from the income-tax authority or had given false evidence, and thereupon such person shall become liable to the imposition of any penalty under this act to which such person would have been liable, had not such immunity been granted" 54 after section 278aa of the income-tax act, the following section shall be inserted, namely:—"278ab (1) a person may make an application to the commissioner for granting immunity from prosecution, if he has made an application for settlement under section 245c and the proceedings for settlement have abated under section 245ha(2) the application to the commissioner under sub-section (1) shall not be made after institution of the prosecution proceedings after abatement(3) the commissioner may, subject to such conditions as he may think fit to impose, grant to the person immunity from prosecution for any offence under this act, if he is satisfied that the person has, after the abatement, co-operated with the incometax authority in the proceedings before him and has made a full and true disclosure of his income and the manner in which such income has been derived:provided that where the application for settlement under section 245c had been made before the 1st day of june, 2007, the commissioner may grant immunity from prosecution for any offence under this act or under the indian penal code or under any other central act for the time being in force(4) the immunity granted to a person under sub-section (3) shall stand withdrawn, if such person fails to comply with any condition subject to which the immunity was granted and thereupon the provisions of this act shall apply as if such immunity had not been granted(5) the immunity granted to a person under sub-section (3) may, at any time, be withdrawn by the commissioner, if he is satisfied that such person had, in the course of any proceedings, after abatement, concealed any particulars material to the assessment from the income-tax authority or had given false evidence, and thereupon such person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have been guilty in connection with the proceedings" 55 after section 282 of the income-tax act, the following section shall be inserted with effect from the 1st day of june, 2008, namely:—"282a (1) where this act requires a notice or other document to be issued by any income-tax authority, such notice or other document shall be signed in manuscript by that authority(2) every notice or other document to be issued, served or given for the purposes of this act by any income-tax authority, shall be deemed to be authenticated if the name and office of a designated income-tax authority is printed, stamped or otherwise written thereon(3) for the purposes of this section, a designated income-tax authority shall mean any income-tax authority authorised by the board to issue, serve or give such notice or other document after authentication in the manner as provided in sub-section (2)"56 after section 292b of the income-tax act, the following section shall be inserted, namely:—insertion of new section 292bbnotice deemed to be valid in certain circumstances"292bb where an assessee has appeared in any proceeding or co-operated in any inquiry relating to an assessment or reassessment, it shall be deemed that any notice under any provision of this act, which is required to be served upon him, has been duly served upon him in time in accordance with the provisions of this act and such assessee shall be precluded from taking any objection in any proceeding or inquiry under this act that the notice was—(a) not served upon him; or (b) not served upon him in time; or (c) served upon him in an improper manner:amendment of section 292camendment of section 295amendment of fourth schedule"provided that nothing contained in this section shall apply where the assessee has raised such objection before the completion of such assessment or reassessment" 57 section 292c of the income-tax act shall be renumbered as sub-section (1) thereof and–(a) in sub-section (1) as so renumbered, after the words and figures "search under section 132", the words, figures and letter "or survey under section 133a" shall be inserted and shall be deemed to have been inserted with effect from the 1st day of june, 2002;(b) after sub-section (1) as so renumbered, the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of october, 1975, namely:—''(2) where any books of account, other documents or assets have been delivered to the requisitioning officer in accordance with the provisions of section 132a, then, the provisions of sub-section (1) shall apply as if such books of account, other documents or assets which had been taken into custody from the person referred to in clause (a) or clause (b) or clause (c), as the case may be, of sub-section (1) of section 132a, had been found in the possession or control of that person in the course of a search under section 132"58 in section 295 of the income-tax act, in sub-section (2), after clause (f), the following clause shall be inserted, namely:—''(fa) the form and manner in which the information relating to payment of any sum may be furnished under sub-section (6) of section 195;"59 in the fourth schedule to the income-tax act, in part a, in rule 3, in sub-rule (1), in the first proviso, for the figures, letters and words "31st day of march, 2008", the figures, letters and words "31st day of march, 2009" shall be substituted wealth-taxamendment of section 1760 in section 17 of the wealth-tax act,—(a) in sub-section (1), after the second proviso, the following proviso shall be inserted, namely:—''provided also that the assessing officer may assess or reassess such net wealth, other than the net wealth which is the subject matter of any appeal, reference or revision, which is chargeable to tax and has escaped assessment";of section 17a of section 18section 18bacommissioner to grant immunity from penaltysection 23a(b) in sub-section (1b), after clause (b), the following explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of october, 1998, namely:—''explanation—for the removal of doubts, it is hereby declared that the joint commissioner, the commissioner or the chief commissioner, as the case may be, being satisfied on the reasons recorded by the assessing officer about fitness of a case for the issue of notice, need not issue such notice himself"61 in section 17a of the wealth-tax act, after sub-section (4), in explanation 1, after the proviso, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of june, 2007, namely:—''provided further that where a proceeding before the settlement commission abates under section 22ha, the period of limitation referred to in this section available to the assessing officer for making an order of assessment or reassessment, as the case may be, shall, after the exclusion of the period under sub-section (4) of section22ha, be not less than one year; and where such period of limitation is less than one year, it shall be deemed to have been extended to one year" 62 in section 18 of the wealth-tax act, after sub-section (1), the following subsection shall be inserted and shall be deemed to have been inserted with effect from the 1st day of april, 1989, namely:—''(1a) where any amount is added or disallowed in computing the net wealth of an assessee in any order of assessment or reassessment and the said order contains a direction for initiation of penalty proceedings under clause (c) of sub-section (1), such an order of assessment or reassessment shall be deemed to constitute satisfaction of the assessing officer for initiation of the penalty proceedings under the said clause (c)" 63 after section 18b of the wealth-tax act, the following section shall be inserted, namely:—"18ba (1) a person may make an application to the commissioner for granting immunity from penalty, if–(a) he has made an application for settlement under section 22c and the proceedings for settlement have abated under section 22ha; and(b) the penalty proceedings have been initiated under this act(2) the application to the commissioner under sub-section (1) shall not be made after the imposition of penalty after abatement(3) the commissioner may, subject to such conditions as he may think fit to impose, grant to the person immunity from the imposition of any penalty under this act, if he is satisfied that the person has, after the abatement, co-operated with the wealth-tax authority in the proceedings before him and has made a full and true disclosure of his net wealth and the manner in which such net wealth has been derived(4) the immunity granted to a person under sub-section (3) shall stand withdrawn, if such person fails to comply with any condition subject to which the immunity was granted and thereupon the provisions of this act shall apply as if such immunity had not been granted(5) the immunity granted to a person under sub-section (3) may, at any time, be withdrawn by the commissioner, if he is satisfied that such person had, in the course of any proceedings, after abatement, concealed any particulars, material to the assessment, from the wealth-tax authority or had given false evidence, and thereupon such person shall become liable to the imposition of any penalty under this act to which such person would have been liable, had not such immunity been granted" 64 in section 23a of the wealth-tax act, after sub-section (9), the following subsection shall be inserted, namely:—"(9a) in disposing of an appeal against the order of assessment in respect of which the proceeding before the settlement commission abates under section 22ha, he may, after taking into consideration all the material and other information produced by the assessee insertion of new section 35gapower of commissioner to grant immunity from prosecution45 of 1860insertion of new section 42 notice deemed to be valid in certain circumstancesbefore, or the results of the inquiry held or evidence recorded by, the settlement commission, in the course of the proceedings before it and such other material as may be brought on his record, confirm, reduce, enhance or annul the assessment"65 after section 35g of the wealth-tax act, the following section shall be inserted, namely:—"35ga (1) a person may make an application to the commissioner for granting immunity from prosecution, if he has made an application for settlement under section 22c and the proceedings for settlement have abated under section 22ha(2) the application to the commissioner under sub-section (1) shall not be made after institution of the prosecution proceedings after abatement(3) the commissioner may, subject to such conditions as he may think fit to impose, grant to the person immunity from prosecution for any offence under this act, if he is satisfied that the person has, after the abatement, co-operated with the wealthtax authority in the proceedings before him and has made a full and true disclosure of his net wealth and the manner in which such net wealth has been derived:provided that where the application for settlement under section 22c had been made before the 1st day of june, 2007, the commissioner may grant immunity from prosecution for any offence under this act or under the indian penal code or under any other central act for the time being in force(4) the immunity granted to a person under sub-section (3) shall stand withdrawn, if such person fails to comply with any condition subject to which the immunity was granted and thereupon the provisions of this act shall apply as if such immunity had not been granted(5) the immunity granted to a person under sub-section (3) may, at any time, be withdrawn by the commissioner, if he is satisfied that such person had, in the course of any proceedings, after abatement, concealed any particulars, material to the assessment, from the wealth-tax authority or had given false evidence, and thereupon such person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have been guilty in connection with the proceedings" 66 after section 41 of the wealth-tax act, the following section shall be inserted, namely:—"42 where an assessee has appeared in any proceeding or co-operated in any inquiry relating to an assessment or reassessment, it shall be deemed that any notice under any provision of this act, which is required to be served upon him, has been duly served upon him in time in accordance with the provisions of this act and such assessee shall be precluded from taking any objection in any proceeding or inquiry under this act that the notice was—(a) not served upon him; or (b) not served upon him in time; or (c) served upon him in an improper manner:amendment of section 42d "provided that nothing contained in this section shall apply where the assessee has raised such objection before the completion of such assessment or reassessment" 67 section 42d of the wealth-tax act shall be renumbered as sub-section (1) thereof and after sub-section (1) as so renumbered, the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day october, 1975, namely:—''(2) where any books of account, other documents or assets have been delivered to the requisitioning officer in accordance with the provisions of section 37b, then, the provisions of sub-section (1) shall apply as if such books of account, other documents or assets which had been taken into custody from the person referred to in clause (a)or clause (b) or clause (c), as the case may be, of sub-section (1) of section 37b, had been found in the possession or control of that person in the course of a search under section 37a"52 of 1962amendment of section 28b amendment of section 108chapter ivindirect taxescustoms68 in section 28b of the customs act, 1962 (hereinafter referred to as the customs act),—(i) after sub-section (1), the following sub-section shall be inserted, namely:—''(1a) every person who has collected any amount in excess of the duty assessed or determined or paid on any goods or has collected any amount as representing duty of customs on any goods which are wholly exempt or are chargeable to nil rate of duty from any person in any manner, shall forthwith pay the amount so collected to the credit of the central government"; (ii) in sub-section (2), for the word, brackets and figure "sub-section (1)", the words, brackets, figures and letter "sub-section (1) or sub-section (1a), as the case may be," shall be substituted;(iii) in sub-section (4),—(a) for the words, brackets and figures "sub-section (1) or sub-section(3)", the words, brackets, figures and letter "sub-section (1) or sub-section (1a)or sub-section (3), as the case may be," shall be substituted;(b) for the word, brackets and figure "sub-section (1)", the words, brackets, figures and letter "sub-section (1) and sub-section (1a)" shall be substituted69 in section 108 of the customs act, in sub-section (1), the words "duly empowered by the central government in this behalf," shall be omitted and shall be deemed to have been omitted with effect from the 13th july, 200670 in section 117 of the customs act, for the words "ten thousand rupees", the words"one lakh rupees" shall be substitutedamendment of section 117amendment of section 129aamendment of section 129d71 in section 129a of the customs act, in sub-section (2), the following proviso and explanation shall be inserted at the end, namely:—'provided that where the committee of commissioners of customs differs in its opinion regarding the appeal against the order of the commissioner (appeals), it shall state the point or points on which it differs and make a reference to the jurisdictional chief commissioner of customs who shall, after considering the facts of the order, if is of the opinion that the order passed by the commissioner (appeals) is not legal or proper, direct the proper officer to appeal to the appellate tribunal against such orderexplanation—for the purposes of this sub-section, "jurisdictional chief commissioner" means the chief commissioner of customs having jurisdiction over the adjudicating authority in the matter' 72 in section 129d of the customs act,—(i) in sub-section (1), the following proviso shall be inserted at the end, namely:—''provided that where the committee of chief commissioners of customs differs in its opinion as to the legality or propriety of the decision or order of the commissioner of customs, it shall state the point or points on which it differs and make a reference to the board which, after considering the facts of the decision or order passed by the commissioner of customs, if is of the opinion that the decision or order passed by the commissioner of customs is not legal or proper, may, by order, direct such commissioner or any other commissioner to apply to the appellate tribunal for the determination of such points arising out of the decision or order, as may be specified in its order";(ii) for sub-section (3), the following sub-section shall be substituted, namely:—''(3) every order under sub-section (1) or sub-section (2), as the case may be, shall be made within a period of three months from the date of communication of the decision or order of the adjudicating authority"73 after section 129e of the customs act, the following section shall be inserted, namely:—insertion of new section 129eeinterest on delayed refund of amount deposited under the proviso to section 129eamendment of section 141 amendment of section 15852 of 1962amendment of notification issued under sub-section (1) of section25 of the customs act,1962amendment of act 51 of 1975"129ee where an amount deposited by the appellant in pursuance of an order passed by the commissioner (appeals) or the appellate tribunal (hereinafter referred to as appellate authority), under the first proviso to section 129e, is required to be refunded consequent upon the order of the appellate authority and such amount is not refunded within three months from the date of communication of such order to the adjudicating authority, unless the operation of the order of the appellate authority is stayed by a superior court or tribunal, there shall be paid to the appellant interest at the rate specified in section 27a after the expiry of three months from the date of communication of the order of the appellate authority, till the date of refund of such amount" 74 section 141 of the customs act shall be numbered as sub-section (1) thereof and, after sub-section (1) as so numbered, the following sub-section shall be inserted, namely:—''(2) the imported or export goods may be received, stored, delivered, despatched or otherwise handled in a customs area in such manner as may be prescribed and the responsibilities of persons engaged in the aforesaid activities shall be such as may be prescribed" 75 in section 158 of the customs act, in sub-section (2), for clause (ii), the following clause shall be substituted, namely:—"(ii) that any person who contravenes any provision of a rule or regulation or abets such contravention or who fails to comply with any provision of a rule or regulation with which it was his duty to comply, shall be liable to a penalty which may extend to fifty thousand rupees" 76 in the notification of the government of india in the ministry of finance (department of revenue) number gsr 277(e), dated the 1st april, 2003 which was issued in exercise of the powers conferred by sub-section (1) of section 25 of the customs act, 1962, the condition no 7, as inserted vide notification of the government of india in the ministry of finance (department of revenue) number gsr 673(e), dated the 17th november, 2005 which provides "that the importer shall be entitled to avail of the drawback or cenvat credit of additional duty leviable under section 3 of the said customs tariff act against the amount debited in the said certificate", shall be deemed to have, and always to have for all purposes validly, come into force on and from the 4th day of june, 2005 at all material timesexplanation— for the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable if this section had not come into forcecustoms tariff77 in the customs tariff act, 1975 (hereinafter referred to as the customs tariff act),—(i) in section 9a, for sub-section (2a), the following sub-section shall be substituted, namely:—(2a) notwithstanding anything contained in sub-section (1) and subsection (2), a notification issued under sub-section (1) or any anti-dumping duty imposed under sub-section (2), shall not apply to articles imported by a hundred per cent export-riented undertaking unless,—(i) specifically made applicable in such notifications or such impositions, as the case may be; or(ii) the article imported is either cleared as such into the domestic tariff area or used in the manufacture of any goods that are cleared into the domestic tariff area, and in such cases anti-dumping duty shall be levied on that portion of the article so cleared or so used as was leviable when it was imported into indiaamendment of section 2 insertion of new section 3a power of central government to charge excise duty on the basis of capacity of production in respect of notified goodsexplanation—for the purposes of this sub-section, the expression"hundred per cent export-oriented undertaking" shall have the meaning assigned to it in explanation 2 to sub-section (1) of section 3 of the central excise act,1944; (ii) the first schedule shall be amended in the manner specified in the second schedule;(iii) the second schedule shall be amended in the manner specified in the third scheduleexcise78 in section 2 of the central excise act, 1944 (hereinafter referred to as the central excise act), after clause (d), the following explanation shall be inserted, namely:—'explanation— for the purposes of this clause, "goods" includes any article, material or substance which is capable of being bought and sold for a consideration and such goods shall be deemed to be marketable' 79 after section 3 of the central excise act, the following section shall be inserted, namely:—''3a (1) notwithstanding anything contained in section 3, where the central government, having regard to the nature of the process of manufacture or production of excisable goods of any specified description, the extent of evasion of duty in regard to such goods or such other factors as may be relevant, is of the opinion that it is necessary to safeguard the interest of revenue, specify, by notification in the official gazette, such goods as notified goods and there shall be levied and collected duty of excise on such goods in accordance with the provisions of this section(2) where a notification is issued under sub-section (1), the central government may, by rules,—(a) provide the manner for determination of the annual capacity of production of the factory, in which such goods are produced, by an officer not below the rank of assistant commissioner of central excise and such annual capacity shall be deemed to be the annual production of such goods by such factory; or(b) (i) specify the factor relevant to the production of such goods and the quantity that is deemed to be produced by use of a unit of such factor; and(ii) provide for the determination of the annual capacity of production of the factory in which such goods are produced on the basis of such factor by an officer not below the rank of assistant commissioner of central excise and such annual capacity of production shall be deemed to be the annual production of such goods by such factory:provided that where a factory producing notified goods is in operation during a part of the year only, the annual production thereof shall be calculated on proportionate basis of the annual capacity of production:provided further that in a case where the factor relevant to the production is altered or modified at any time during the year, the annual production shall be re-determined on a proportionate basis having regard to such alteration or modification (3) the duty of excise on notified goods shall be levied, at such rate, on the unit of production or, as the case may be, on such factor relevant to the production, as the central government may, by notification in the official gazette, specify, and collected in such manner as may be prescribed:provided that where a factory producing notified goods did not produce the notified goods during any continuous period of fifteen days or more, the duty calculated on a proportionate basis shall be abated in respect of such period if the manufacturer of such goods fulfils such conditions as may be prescribed(4) the provisions of this section shall not apply to goods produced or manufactured, by a hundred per cent export-oriented undertaking and brought to any other place in india51 of 1975 5 of 1986explanation 1—for the removal of doubts, it is hereby clarified that for the purposes of section 3 of the customs tariff act, 1975, the duty of excise leviable on the notified goods shall be deemed to be the duty of excise leviable on such goods under the first schedule and the second s-chedule to the central excise tariff act, 1985, read with any notification for the time being in force explanation 2—for the purposes of this section, the expression "hundred per centexport-oriented undertaking" shall have the meaning assigned to it in section 3'80 in section 11b of the central excise act,—amendment of section 11b(i) in sub-section (1),—(a) for the words "duty of excise", wherever they occur, the words "duty of excise and interest, if any, paid on such duty" shall be substituted;(b) for the word "duty", wherever it occurs, the words "duty and interest, if any, paid on such duty" shall be substituted; (ii) in sub-section (2), except in clauses (a) and (c) of the first proviso,—(a) for the words "duty of excise", wherever they occur, the words "duty of excise and interest, if any, paid on such duty" shall be substituted;(b) for the word "duty", wherever it occurs, the words "duty and interest, if any, paid on such duty" shall be substituted81 in section 11d of the central excise act,—(i) after sub-section (1), the following sub-section shall be inserted, namely:—amendment of section 11d''(1a) every person, who has collected any amount in excess of the duty assessed or determined and paid on any excisable goods or has collected any amount as representing duty of excise on any excisable goods which are wholly exempt or are chargeable to nil rate of duty from any person in any manner, shall forthwith pay the amount so collected to the credit of the central government"; (ii) in sub-section (2), for the word, brackets and figure "sub-section (1)", the words, brackets, figures and letter "sub-section (1) or sub-section (1a), as the case may be," shall be substituted;(iii) in sub-section (4),—(a) for the words, brackets and figures "sub-section (1) or sub-section(3)", the words, brackets, figures and letter "sub-section (1) or sub-section (1a)or sub-section (3), as the case may be," shall be substituted;(b) for the word, brackets and figure "sub-section (1)", the words, brackets, figures and letter "sub-section (1) and sub-section (1a)" shall be substitutedamendment of section 11dd82 in section 11dd of the central excise act, in sub-section (1), for the words "buyer of such goods, the person", the words "buyer of such goods or from any person or where a person has collected any amount as representing duty of excise on any excisable goods which are wholly exempt or are chargeable to nil rate of duty, the person" shall be substituted83 in section 35b of the central excise act, in sub-section (2), the following proviso and explanation shall be inserted at the end, namely:—amendment of section 35b'provided that where the committee of commissioners of central excise differs in its opinion regarding the appeal against the order of the commissioner (appeals), it shall state the point or points on which it differs and make a reference to the jurisdictional chief commissioner of central excise who shall, after considering the facts of the order, if is of the opinion that the order passed by the commissioner (appeals) is not legal or proper, direct any central excise officer to appeal to the appellate tribunal against such orderexplanation—for the purposes of this sub-section, "jurisdictional chief commissioner" means the chief commissioner of central excise having jurisdiction over the adjudicating authority in the matter' 84 in section 35e of the central excise act,—amendment of section 35e(i) in sub-section (1), the following proviso shall be inserted at the end, namely:—''provided that where the committee of chief commissioners of central excise differs in its opinion as to the legality or propriety of the decision or order of the commissioner of central excise, it shall state the point or points on which it differs and make a reference to the board which, after considering the facts of the decision or order, if is of the opinion that the decision or order passed by the commissioner of central excise is not legal or proper, may, by order, direct such commissioner or any other commissioner to apply to the appellate tribunal for the determination of such points arising out of the decision or order, as may be specified in its order"; (ii) for sub-section (3), the following sub-section shall be substituted, namely:—''(3) every order under sub-section (1) or sub-section (2), as the case may be, shall be made within a period of three months from the date of communication of the decision or order of the adjudicating authority"85 after section 35f of the central excise act, the following section shall be inserted, namely:—insertion of new section 35ff interest on delayed refund of amount deposited under the proviso to section 35f''35ff where an amount deposited by the appellant in pursuance of an order passed by the commissioner (appeals) or the appellate tribunal (hereinafter referred to as the appellate authority), under the first proviso to section 35f, is required to be refunded consequent upon the order of the appellate authority and such amount is not refunded within three months from the date of communication of such order to the adjudicating authority, unless the operation of the order of the appellate authority is stayed by a superior court or tribunal, there shall be paid to the appellant interest at the rate specified in section 11bb after the expiry of three months from the date of communication of the order of the appellate authority, till the date of refund of such amount"amendment of central excise rules, 194486 (1) in the central excise rules, 1944, made by the central government in exercise of the powers conferred by section 37 of the central excise act, rule 12, as substituted by rule 2 of the central excise (eleventh amendment) rules, 1994 published in the official gazette vide notification of the government of india in the ministry of finance (department of revenue), number gsr 699(e), dated the 22nd september, 1994 shall stand amended and shall be deemed to have been amended retrospectively in the manners specified in column (2) of the fourth schedule on and from the corresponding date specified in column (3) of that schedule against the rule specified in column (1) of that schedule(2) notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done, at any time during the period commencing on and from the 8th july, 1999 and ending with the 30th day of june, 2001 under the rule as amended by sub-section (1), shall be deemed to be and always to have been, for all the purposes, as validly and effectively taken or done as if the amendment made by sub-section (1) had been in force at all material times(3) notwithstanding the supersession of the central excise rules, 1944 referred to in sub-section (1), for the purposes of that sub-section, the central government shall have and shall be deemed to have the power to make rules with retrospective effect as if the central government had the power to make rules under section 37 of the central excise act, retrospectively, at all material timesexplanation— for the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence, which would not have been so punishable if this section had not come into forceamendment of central excise (no 2) rules, 200187 (1) in the central excise (no 2) rules, 2001, made by the central government inexercise of the powers conferred by section 37 of the central excise act, rule 18 thereof as published in the official gazette vide notification of the government of india in the ministryof finance (department of revenue), number gsr 444(e), dated the 21st june, 2001 shall stand amended and shall be deemed to have been amended retrospectively in the manner as specified in column (2) of the fifth schedule on and from the corresponding date specified in column (3) of that schedule against the rule specified in column (1) of that schedule(2) notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done, at any time during the period commencing on and from the 1st day of july, 2001 and ending with the 28th day of february, 2002 under the rule as amended by subsection (1), shall be deemed to be and always to have been, for all the purposes, as validly and effectively taken or done as if the amendment made by sub-section (1) had been in force at all material times(3) notwithstanding the supersession of the central excise (no 2) rules, 2001 referred to in sub-section (1), for the purposes of that sub-section, the central government shall have and shall be deemed to have the power to make rules with retrospective effect as if the central government had the power to make rules under section 37 of the central excise act, retrospectively, at all material timesexplanation - for the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence, which would not have been so punishable if this section had not come into forceamendment of central excise rules, 200288 (1) in the central excise rules, 2002, made by the central government in exercise of the powers conferred by section 37 of the central excise act, rule 18 thereof as published in the official gazette vide notification of the government of india in the ministry of finance (department of revenue), number gsr 143(e), dated the 1st march, 2002 shall stand amended and shall be deemed to have been amended retrospectively in the manner as specified in column (2) of the sixth schedule on and from the corresponding date specified in column (3) of that schedule against the rule specified in column (1) of that schedule(2) notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done, at any time during the period commencing on and from the 1st day of march, 2002 and ending with the 7th day of december, 2006 under the rule as amended by sub-section (1), shall be deemed to be and always to have been, for all the purposes, as validly and effectively taken or done as if the amendment made by sub-section (1) had been in force at all material times(3) for the purposes of sub-section (1), the central government shall have and shall be deemed to have the power to make rules with retrospective effect as if the central government had the power to make rules under section 37 of the central excise act, retrospectively, at all material timesexplanation—for the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence, which would not have been so punishable if this section had not come into force excise tariffamendment of act 5 of 198689 the first schedule to the central excise tariff act, 1985 (hereinafter referred to as the central excise tariff act) shall be amended in the manner specified in the seventh schedule chapter v service tax90 in the finance act, 1994,—amendment of act 32 of 1994(a) in section 65, with effect from such date as the central government may, by notification in the official gazette, appoint,—(1) after clause (7a), the following clause shall be inserted, namely:—'(7b) "associated enterprise" has the meaning assigned to it in section 92a of the income-tax act, 1961;';43 of 1961(2) in clause (12),—(a) in sub-clause (a), for item (iv), the following item shall be substituted, namely:—''(iv) securities and foreign exchange (forex) broking, and purchase or sale of foreign currency, including money changing;"; (b) for sub-clause (b), the following sub-clause shall be substituted, namely:—''(b) foreign exchange broking and purchase or sale of foreign currency, including money changing provided by a foreign exchange broker or an authorised dealer in foreign exchange or an authorised money changer, other than those covered under sub-clause (a);"; (c) after sub-clause (b) as so amended, the following explanation shall be inserted at the end, namely:—'explanation— for the purposes of this clause, it is hereby declared that "purchase or sale of foreign currency, including money changing" includes purchase or sale of foreign currency, whether or not the consideration for such purchase or sale, as the case may be, is specified separately;';(3) in clause (19),—(a) in sub-clause (ii), the following explanation shall be inserted at the end, namely:—'explanation— for the removal of doubts, it is hereby declared that for the purposes of this sub-clause, "service in relation to promotion or marketing of service provided by the client" includes any service provided in relation to promotion or marketing of games of chance, organised, conducted or promoted by the client, in whatever form or by whatever name called, whether or not conducted online, including lottery, lotto, bingo;'; (b) the words "any information technology service and" shall be omitted;(c) in the explanation, clause (b) shall be omitted;(4) for clause (23), the following clause shall be substituted, namely:—'(23) "cargo handling service" means loading, unloading, packing or unpacking of cargo and includes,—(a) cargo handling services provided for freight in special containers or for non-containerised freight, services provided by a container freight terminal or any other freight terminal, for all modes of transport, and cargo handling service incidental to freight; and(b) service of packing together with transportation of cargo or goods, with or without one or more of other services like loading, unloading, unpacking, but does not include, handling of export cargo or passenger baggage or mere transportation of goods;'; (5) in clause (31), for the words "to a client", the words "to any person"shall be substituted;(6) after clause (53), the following clause shall be inserted, namely:—'(53a) "information technology software" means any representation of instructions, data, sound or image, including source code and object code, recorded in a machine readable form, and capable of being manipulated or providing interactivity to a user, by means of a computer or an automatic data processing machine or any other device or equipment;'; (7) for clause (57a), the following clause shall be substituted, namely:—'(57a) "internet telecommunication service" includes,—(i) internet backbone services, including carrier services of internet traffic by one internet service provider to another internet service provider,(ii) internet access services, including provision of a direct connection to the internet and space for the customer's web page,(iii) provision of telecommunication services, including fax, telephony, audio conferencing and video conferencing, over the internet;'; (8) in clause (64), for the explanation, the following explanation shall be substituted, namely:—'explanation— for the removal of doubts, it is hereby declared that for the purposes of this clause,—(a) "goods" includes computer software; (b) "properties" includes information technology software;';(9) in clause (68), for the words "to a client", the words "to any other person" shall be substituted;(10) in clause (75), for the words "to a customer", the words "to any person" shall be substituted;(11) after clause (86c), the following clause shall be inserted, namely:—'(86d) "processing and clearinghouse" means any person including the clearing corporation authorised or assigned by a recognised stock exchange, recognised association or a registered association to perform the duties and functions of a clearinghouse in relation to,—(i) the periodical settlement of contracts for, or relating to, the sale or purchase of securities, goods or forward contracts and differences thereunder;(ii) the delivery of, and payment for, securities, goods or forward contracts;(iii) any other matter incidental to, or connected with, securities, goods and forward contracts;';(12) in clause (90a), the explanation occurring at the end shall be numbered as explanation 1 thereof, and after the explanation 1 as so numbered, the following explanation shall be inserted, namely:—'explanation 2— for the removal of doubts, it is hereby declared that for the purposes of this clause "renting of immovable property" includes allowing or permitting the use of space in an immovable property, irrespective of the transfer of possession or control of the said immovable property;'; (13) in clause (92), for the words "to a client", the words "to any person" shall be substituted;(14) in clause (105),—(a) in sub-clauses (e), (h), (j), (k), (p), (q), (r), (s), (t), (u), (v),(w), (x), (y), (z), (za), (zc), (zi), (zj), (zu), (zzt) and (zzw), for the words"to a client", occurring at the beginning, the words "to any person" shall be substituted;(b) in sub-clauses (f), (l), (zb), (zh), (zm), (zo), (zq), (zt), (zz),(zzd), (zzg), (zzp), (zzv) and (zzx), for the words "to a customer", occurring at the beginning, the words "to any person" shall be substituted;(c) for sub-clause (g), the following sub-clause shall be substituted, namely:—"(g) to any person, by a consulting engineer in relation to advice, consultancy or technical assistance in any manner in one or more disciplines of engineering including the discipline of computer hardware engineeringexplanation— for the purposes of this sub-clause, it is hereby declared that services provided by a consulting engineer in relation to advice, consultancy or technical assistance in the disciplines of both computer hardware engineering and computer software engineering shall also be classifiable under this sub-clause;"; (d) in sub-clause (m), for the words "a client" and "the client", wherever they occur, the words "any person" and "such person" shall respectively be substituted;(e) for sub-clause (zzk), the following sub-clause shall be substituted, namely:—"(zzk) to any person, by a foreign exchange broker, including an authorised dealer in foreign exchange or an authorised money changer, other than a banking company or a financial institution including a non-banking financial company or any other body corporate or commercial concern referred to in sub-clause (zm);"; (f) in sub-clause (zzzu), for the words "internet telephony", the words "internet telecommunication service" shall be substituted;(g) after sub-clause (zzzzd), the following sub-clauses shall be inserted, namely:—"(zzzze) to any person, by any other person in relation to information technology software for use in the course, or furtherance, of business or commerce, including,—(i) development of information technology software,(ii) study, analysis, design and programming of information technology software,(iii) adaptation, upgradation, enhancement, implementation and other similar services related to information technology software,(iv) providing advice, consultancy and assistance on matters related to information technology software, including conducting feasibility studies on implementation of a system, specifications for a database design, guidance and assistance during the start-up phase of a new system, specifications to secure a database, advice on proprietary information technology software,(v) acquiring the right to use information technology software for commercial exploitation including right to reproduce, distribute and sell information technology software and right to use software components for the creation of and inclusion in other information technology software products,(vi) acquiring the right to use information technology software supplied electronically; (zzzzf) to a policy holder, by an insurer carrying on life insurance business, in relation to management of investment, under unit linked insurance business, commonly known as unit linked insurance plan (ulip) schemeexplanation— for the purposes of this sub-clause,—(i) management of segregated fund of unit linked insurance business by the insurer shall be deemed to be the service provided by the insurer to the policy holder in relation to management of investment under unit linked insurance business;(ii) the gross amount charged by the insurer from the policy holder for the said services provided or to be provided shall be equivalent to the difference between,—(a) premium paid by the policy holder for the unit linked insurance plan policy; and(b)the sum of premium paid for or attributable to risk cover, whether for life, health or other specified purposes, and the amount segregated for actual investment illustrationtotal premium paid for the unit linked insurance plan policy = rs100 risk premium = rs 10 amount actually invested = rs 85 gross amount charged for the service provided = rs 5 [100-(10+85)];(iii) in addition to the amount referred to in clause(ii), the gross amount charged shall include any amount charged subsequently, whether or not periodically, by the insurer from the policy holder in relation to management of investment under unit linked insurance business; (zzzzg) to any person, by a recognised stock exchange in relation to assisting, regulating or controlling the business of buying, selling or dealing in securities and includes services provided in relation to trading, processing, clearing and settlement of transactions in securities;(zzzzh) to any person, by a recognised association or a registered association in relation to assisting, regulating or controlling the business of the sale or purchase of any goods or forward contracts and includes services provided in relation to trading, processing, clearing and settlement of transactions in goods or forward contracts;(zzzzi) to any person, by a processing and clearinghouse in relation to processing, clearing and settlement of transactions in securities, goods or forward contracts including any other matter incidental to, or connected with, such securities, goods and forward contracts;(zzzzj) to any person, by any other person in relation to supply of tangible goods including machinery, equipment and appliances for use, without transferring right of possession and effective control of such machinery, equipment and appliances;";(15) in clause (106), after the words ''goods or material or'', the words "information technology software or" shall be inserted;(16) in clause (108), for the words ''process or material'', at both the places where they occur, the words ''process or material or information technology software'' shall be subsituted;(17) in clause (109a), in sub-clause (c), for the words "internet telephony", the words "internet telecommunication service" shall be substituted;(18) for clause (115), the following clause shall be substituted, namely:—'(115) "tour operator" means any person engaged in the business of planning, scheduling, organising or arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours in a tourist vehicle or a contract carriage by whatever name called, covered by a permit, other than a stage carriage permit, granted under the motor vehicles act, 1988 or the rules made thereunderexplanation— for the purposes of this clause, the expression"tour" does not include a journey organised or arranged for use by an educational body, other than a commercial training or coaching centre, imparting skill or knowledge or lessons on any subject or field;';(b) in section 66, with effect from such date as the central government may, by notification in the official gazette, appoint, for the word, brackets and letters "and (zzzzd)", the brackets, letters and word "(zzzzd), (zzzze), (zzzzf), (zzzzg), (zzzzh), (zzzzi) and (zzzzj)" shall be substituted;(c) in section 67, in the explanation, in clause (c), for the words "book adjustment", the following words shall be substituted, namely:—'book adjustment, and any amount credited or debited, as the case may be, to any account, whether called "suspense account" or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise';(d) after section 70, the following sections shall be inserted, namely:—'71 (1) without prejudice to the provisions of section 70, the board may, by notification in the official gazette, frame a scheme for the purposes of enabling any person or class of persons to prepare and furnish a return under section 70, and authorise a service tax return preparer to act as such under the scheme(2) a service tax return preparer shall assist the person or class of persons to prepare and furnish the return in such manner as may be specified in the scheme framed under this section(3) for the purposes of this section,—(a) "service tax return preparer" means any individual, who has been authorised to act as a service tax return preparer under the scheme framed under this section;(b) "person or class of persons" means such person, as may be specified in the scheme, who is required to furnish a return required to be filed under section 70 (4) the scheme framed by the board under this section may provide for the following, namely:—(a) the manner in which and the period for which the service tax return preparer shall be authorised under sub-section (1);(b) the educational and other qualifications to be possessed, and the training and other conditions required to be fulfilled, by a person to act as a service tax return preparer;(c) the code of conduct for the service tax return preparer; (d) the duties and obligations of the service tax return preparer; (e) the circumstances under which the authorisation given to a service tax return preparer may be withdrawn;(f) any other matter which is required to be, or may be, specified by the scheme for the purposes of this section72 if any person, liable to pay service tax,—best judgment assessment(a) fails to furnish the return under section 70;(b) having made a return, fails to assess the tax in accordance withthe provisions of this chapter or rules made thereunder,the central excise officer, may require the person to produce such accounts, documents or other evidence as he may deem necessary and after taking into account all the relevant material which is available or which he has gathered, shall by an order in writing, after giving the person an opportunity of being heard, make the assessment of the value of taxable service to the best of his judgment and determine the sum payable by the assessee or refundable to the assessee on the basis of such assessment'; (e) for section 77, the following section shall be substituted, namely:—"77 (1) any person,—penalty for contravention of rules and provisions of act for which no penalty is specified elsewhere(a) who is liable to pay service tax, or required to take registration, fails to take registration in accordance with the provisions of section 69 or rules made under this chapter shall be liable to pay a penalty which may extend to five thousand rupees or two hundred rupees for every day during which such failure continues, whichever is higher, starting with the first day after the due date, till the date of actual compliance;(b) who fails to keep, maintain or retain books of account and other documents as required in accordance with the provisions of this chapter or the rules made thereunder, shall be liable to a penalty which may extend to five thousand rupees;(c) who fails to—(i) furnish information called by an officer in accordance with the provisions of this chapter or rules made thereunder; or(ii) produce documents called for by a central excise officer in accordance with the provisions of this chapter or rules made thereunder; or(iii) appear before the central excise officer, when issued with a summon for appearance to give evidence or to produce a document in an inquiry, shall be liable to a penalty which may extend to five thousand rupees or two hundred rupees for every day during which such failure continues, whichever is higher, starting with the first day after the due date, till the date of actual compliance;(d) who is required to pay tax electronically, through internet banking, fails to pay the tax electronically, shall be liable to a penalty which may extend to five thousand rupees;(e) who issues invoice in accordance with the provisions of the act or rules made thereunder, with incorrect or incomplete details or fails to account for an invoice in his books of account, shall be liable to a penalty which may extend to five thousand rupees (2) any person, who contravenes any of the provisions of this chapter or any rules made thereunder for which no penalty is separately provided in this chapter, shall be liable to a penalty which may extend to five thousand rupees"; (f) in section 78, after the fourth proviso, the following proviso shall be inserted, namely:—''provided also that if the penalty is payable under this section, the provisions of section 76 shall not apply"; (g) in section 83, after the figures and letter "35f", the figures and letters"35ff," shall be inserted;(h) in section 86,—(i) in sub-section (2), the following proviso shall be inserted at the end, namely:—''provided that where the committee of chief commissioners of central excise differs in its opinion against the order of the commissioner of central excise, it shall state the point or points on which it differs and make a reference to the board which shall, after considering the facts of the order, if is of the opinion that the order passed by the commissioner of central excise is not legal or proper, direct the commissioner of central excise to appeal to the appellate tribunal against the order"; (ii) in sub-section (2a), the following proviso and explanation shall be inserted at the end, namely:—'provided that where the committee of commissioners differs in its opinion against the order of the commissioner of central excise (appeals), it shall state the point or points on which it differs and make a reference to the jurisdictional chief commissioner who shall, after considering the facts of the order, if is of the opinion that the order passed by the commissioner of central excise (appeals) is not legal or proper, direct any central excise officer to appeal to the appellate tribunal against the orderexplanation— for the purposes of this sub-section, "jurisdictional chief commissioner" means the chief commissioner having jurisdiction over the concerned adjudicating authority in the matter';(i) in section 94, in sub-section (4), for the words "chapter and every notification", the words and figures "chapter, scheme framed under section 71 and every notification" shall be substituted;(j) in section 95, after sub-section (1d), the following sub-section shall be inserted, namely:—''(1e) if any difficulty arises in respect of implementing, classifying or assessing the value of any taxable service incorporated in this chapter by the finance act, 2008, the central government may, by order published in the official gazette, not inconsistent with the provisions of this chapter, remove the difficulty:provided that no such order shall be made after the expiry of a period of one year from the date on which the finance bill, 2008 receives the assent of the president" chapter vi service tax dispute resolution scheme, 200891 (1) this scheme may be called the service tax dispute resolution scheme, 2008short title and commencement(2) it shall come into force on the 1st day of july, 2008definitions92 in this scheme, unless the context otherwise requires,—(a) "chapter" means chapter v of the finance act, 1994;32 of 1994(b) "designated authority" means an officer not below the rank of assistant commissioner of central excise as notified by the commissioner of central excise for the purposes of this scheme;(c) "person" means any person against whom any tax arrear is pending; (d) ''prescribed'' means prescribed by rules made under this scheme; (e) "tax arrear" means service tax, cess, interest or penalty due or payable or leviable under the chapter but not paid as on the 1st day of march, 2008, in respect of which,—(i) an order has been passed under the chapter; or (ii) a demand notice or a show cause notice has been issued on or before the 1st day of march, 2008 under the chapter; (f) all other words and expressions used herein and not defined but defined in the chapter or the rules made thereunder, shall have the meanings respectively assigned to them in the chapter or the rules made thereunderapplicability of scheme93 this scheme shall not be applicable to a decision, an order of determination, a demand notice or, as the case may be, show cause notice,—(i) relating to a tax arrear which includes service tax, and such service tax amount is in excess of twenty-five thousand rupees; or32 of 1994(ii) where such order or notice has been made or issued under section 73a of the finance act, 1994settlement of tax payment94 subject to the provisions of this scheme, where any person makes, on or after the1st day of july, 2008, but on or before the 30th day of september, 2008, a declaration to the designated authority in accordance with the provisions of section 95 in respect of tax arrear, then notwithstanding anything contained in the chapter, the amount payable under this scheme by the declarant shall be determined at the rates specified hereunder, namely:—(a) where the tax arrear has arisen due to determination, assessment or, as the case may be, order of an adjudicating authority,—(i) such tax arrear includes the amount of service tax not exceeding twentyfive thousand rupees, at the rate of fifty per cent of service tax amount;(ii) such tax arrear consists of only interest payable, or penalty levied or both, under the chapter, at the rate of twenty-five per cent of such tax arrear: provided that, if the amount of penalty levied exceeds the service tax amount to which it relates, service tax amount shall be considered to be the amount of penalty;(b) where the tax arrear has arisen due to show cause notice or demand notice, as the case may be,—(i) such tax arrear includes the amount of service tax not exceeding twentyfive thousand rupees, at the rate of fifty per cent of service tax amount;(ii) such tax arrear consists of only interest payable, or penalty leviable or both, under the chapter, at the rate of twenty-five per cent of the maximum penalty leviable and interest payable:provided that if the amount of penalty leviable exceeds the service tax amount to which it relates, service tax amount shall be considered to be the amount of penalty95 a declaration under section 84 shall be made to the designated authority and shall be in such form and shall be verified in such manner as may be prescribedparticulars to be furnished in declaration96 (1) within fifteen days from the date of receipt of the declaration under section 81, the designated authority shall, by order, determine the amount payable by the declarant in accordance with the provisions of this scheme:time and manner of payment of tax arrearprovided that where any material particular furnished in the declaration is found to be false, by the designated authority at any stage, it shall be deemed never to have been made and all the pending proceeding under the chapter shall be deemed to have been revived(2) the declarant shall pay, the sum determined by the designated authority within thirty days of the order by the designated authority under sub-section (1) and intimate the fact of such payment to the designated authority along with proof thereof and the designated authority shall thereupon issue a certificate to the declarant in such form as may be prescribed(3) every order passed under sub-section (1), determining the sum payable under this scheme, shall be conclusive as to the matters stated therein and no matter covered by such order shall be reopened in any other proceeding under the chapter(4) where the declarant has filed an appeal, reference or a reply to the show cause notice against any order or notice giving rise to the tax arrear before any authority, tribunal or court, then, notwithstanding anything contained in any other provision of the chapter, such appeal, reference, or reply shall be deemed to have been withdrawn:provided that where the declarant has filed a writ petition, appeal or reference before any high court or the supreme court against any order in respect of the tax arrear, the declarant shall file an application before such high court or the supreme court for withdrawing such writ petition, appeal or reference and after withdrawal of such writ petition, appeal or reference with the leave of the court, furnish proof of such withdrawal along with the intimation referred to in sub-section (2)97 no appellate authority shall proceed to decide any issue relating to the tax arrear specified in the declaration and in respect of which an order has been made under section 96 by the designated authorityappellate authority not to proceed in certain cases98 any amount paid in pursuance of a declaration made under section 94 shall not be refundable under any circumstancesno refund of amount paid under the scheme removal of doubts99 for the removal of doubts, it is hereby declared that, save as otherwise expressly provided in sub-section (3) of section 96, nothing contained in this scheme shall be construed as conferring any benefit, concession or immunity on the declarant in any proceedings other than those in relation to which the declaration has been madepower to remove difficulties100 (1) if any difficulty arises in giving effect to the provisions of this scheme, the central government may, by order, not inconsistent with the provisions of this scheme, remove the difficulty:provided that no such order shall be made after the expiry of a period of two years fromthe date on which the provisions of this scheme come into force(2) every order made under this section shall, as soon as may be after it is made, be laid before each house of parliamentpower to make rules101 (1) the central government may, by notification in the official gazette, makerules for carrying out the provisions of this scheme(2) without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—(a) the form in which a declaration may be made under section 95 and the manner in which such declaration may be verified;(b) the form of certificate which may be issued under sub-section (2) of section96;(c) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules(3) the central government shall cause every rule made under this scheme to 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 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 should not be made, the rule shall thereafter have effect only in such modified form 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 chapter vii commodities transaction tax102 (1) this chapter extends to the whole of indiaextent, commencement and application(2) it shall come into force on such date as the central government may, by notification in the official gazette, appoint(3) it shall apply to taxable commodities transactions entered into on or after the commencement of this chapterdefinitions103 in this chapter, unless the context otherwise requires,—43 of 1961(1) "appellate tribunal" means the appellate tribunal constituted under section252 of the income-tax act, 1961;(2) "assessing officer" means the income-tax officer or assistant commissioner of income-tax or deputy commissioner of income-tax or joint commissioner of incometax or additional commissioner of income-tax who is authorised by the board to exercise or perform all or any of the powers and functions conferred on, or assigned to, an assessing officer under this chapter;(3) "commodities transaction tax" means tax leviable on the taxable commodities transactions under the provisions of this chapter;(4) "prescribed" means prescribed by rules made under this chapter; (5) "taxable commodities transaction" means a transaction of purchase or sale of option in goods, or option in commodity derivative, or any other commodity derivative, traded in recognised associations;74 of 1952 43 of 1961(6) words and expressions used but not defined in this chapter and defined in the forward contracts (regulations) act, 1952, the income-tax act, 1961, or the rules made thereunder, shall have the meanings respectively assigned to them in those actscharge of commodities transaction tax104 on and from the date of commencement of this chapter, there shall be charged a commodities transaction tax in respect of every taxable commodities transaction specified in column (2) of the table below, at the rates specified in the corresponding entry in column (3) of the said table, on the value of such transaction and such tax shall be payable by the seller or the purchaser, as the case may be, specified in the corresponding entry in column (4) of the said table:—| sl no | taxable commodities | rate | payable by ||-----------------------------------|-------------------------------|--------|--------------|| transaction | | | || (1) | (2) | (3) | (4) || 1 | sale of an option in goods or | | || an option in commodity derivative | 0017 per cent | seller | || (1) | (2) | (3) | (4) ||---------------------------------|----------------------------------------|-----------------|---------|| 2 | sale of an option in goods or an | | || option in commodity derivative, | | | || where option is exercised | 0125 per cent | purchaser | || 3 | sale of any other commodity derivative | 0017 per cent | seller |105 the value of a taxable commodities transaction specified under column (2) of the table in section 104 shall, with reference to such transactions—value of taxable commodities transaction(a) against serial number 1, be the option premium; (b) against serial number 2, be the settlement price of the option in goods oroption in commodity derivative, as the case may be;(c) against serial number 3, be the price at which the commodity derivative issold106 (1) every recognised association (hereinafter in this chapter referred to as assessee)shall collect the commodities transaction tax from the seller or the purchaser, as the case may be, who enters into a taxable commodities transaction in that recognised association, at the rates specified in section 104collection and recovery of commodities transaction tax(2) the commodities transaction tax collected during any calendar month in accordance with the provisions of sub-section (1) shall be paid by every assessee to the credit of the central government by the seventh day of the month immediately following the said calendar month(3) any assessee who fails to collect the tax in accordance with the provisions of subsection (1) shall, notwithstanding such failure, be liable to pay the tax to the credit of the central government in accordance with the provisions of sub-section (2)furnishing of return107 (1) every assessee shall, within the prescribed time-limit after the end of each financial year, prepare and deliver or cause to be delivered to the assessing officer or to any other authority or agency authorised by the board in this behalf, a return in such form, verified in such manner and setting forth such particulars as may be prescribed, in respect of all taxable commodities transactions entered into during such financial year in that recognised association(2) where any assessee fails to furnish the return under sub-section (1) within the prescribed time-limit, the assessing officer may issue a notice to such assessee and serve it upon him, requiring him to furnish the return in the prescribed form and verified in the prescribed manner setting forth such particulars within such time as may be prescribed(3) an assessee who has not furnished the return within the time-limit prescribed under sub-section (1) or sub-section (2), or having furnished a return under sub-section (1)or sub-section (2) notices any omission or wrong statement therein, may furnish a return or a revised return, as the case may be, at any time before the assessment is madeassessment108 (1) for the purposes of making an assessment under this chapter, the assessingofficer may serve on any assessee, who has furnished a return under section 107 or upon whom a notice has been served under sub-section (2) of that section, whether a return has been furnished or not, a notice requiring him to produce or cause to be produced on a date to be specified therein such accounts or documents or other evidence as the assessing officer may require for the purposes of this chapter and may, from time to time, serve further notices requiring the production of such further accounts or documents or other evidence as he may require(2) the assessing officer, after considering such accounts, documents or other evidence, if any, as he has obtained under sub-section (1) and after taking into account any other relevant material which he has gathered, shall, by an order in writing, assess the value of taxable commodities transactions during the relevant financial year and determine the commodities transaction tax payable or the refund due on the basis of such assessment:provided that no assessment shall be made under this sub-section after the expiry of two years from the end of the relevant financial year(3) every assessee, in case any amount is refundable to it on assessment under subsection (2), shall, within such time as may be prescribed, refund such amount to the seller or the purchaser, as the case may be, from whom such amount was collectedrectification of mistake109 (1) with a view to rectifying any mistake apparent from the record, the assessing officer may amend any order passed by him under the provisions of this chapter within one year from the end of the financial year in which the order sought to be amended was passed(2) where any matter has been considered and decided in any proceeding by way of appeal relating to an order referred to in sub-section (1), the assessing officer passing such order may, notwithstanding anything contained in any other law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided(3) subject to the other provisions of this section, the assessing officer may make an amendment under sub-section (1), either suo motu or on any mistake brought to his notice by the assessee(4) an amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made under this section unless the assessing officer has given notice to the assessee of his intention so to do and has allowed the assessee a reasonable opportunity of being heard(5) an order of amendment under this section shall be made by the assessing officer in writing(6) subject to the other provisions of this chapter, where any such amendment has the effect of reducing the assessment, the assessing officer shall make the refund, which may be due to such assessee(7) where any such amendment has the effect of enhancing the assessment or reducing the refund already made, the assessing officer shall make an order specifying the sum payable by the assessee and the provisions of this chapter shall apply accordinglyinterest on delayed payment of commodities transaction tax110 every assessee, who fails to credit the commodities transaction tax or any part thereof as required under section 106 to the account of the central government within the period specified in that section, shall pay simple interest at the rate of one per cent of such tax for every month or part of a month by which such crediting of the tax or any part thereof is delayed111 any assessee who—(a) fails to collect the whole or any part of the commodities transaction tax as required under section 106; orpenalty for failure to collect or pay commodities transaction tax(b) having collected the commodities transaction tax, fails to pay such tax to the credit of the central government in accordance with the provisions of sub-section (2)of that section, shall be liable to pay,—(i) in the case referred to in clause (a), in addition to paying the tax in accordance with the provisions of sub-section (3) of that section, or interest, if any, in accordance with the provisions of section 110, by way of penalty, a sum equal to the amount of commodities transaction tax that he failed to collect; and(ii) in the case referred to in clause (b), in addition to paying the tax in accordance with the provisions of sub-section (2) of that section and interest in accordance with the provisions of section 110, by way of penalty, a sum of one thousand rupees for every day during which the failure continues; so, however, that the penalty under this clause shall not exceed the amount of commodities transaction tax that it failed to paypenalty for failure to furnish return112 where an assessee fails to furnish the return within the time-limits prescribed under sub-section (1) or sub-section (2) of section 107, it shall be liable to pay, by way of penalty, a sum of one hundred rupees for each day during which the failure continuespenalty for failure to comply with notice113 if the assessing officer in the course of any proceedings under this chapter is satisfied that the assessee has failed to comply with a notice under sub-section (1) of section108, he may direct that such assessee shall pay, by way of penalty, in addition to any commodities transaction tax and interest, if any, payable by him, a sum of ten thousand rupees for each day during which the failure continuespenalty not to be imposed in certain cases114 (1) notwithstanding anything contained in section 111 or section 112 or section113, no penalty shall be imposable for any failure referred to in the said sections, if the assessee proves to the satisfaction of the assessing officer that there was reasonable cause for the said failure(2) no order imposing a penalty under this chapter shall be made unless the assessee has been given a reasonable opportunity of being heard43 of 1961115 the provisions of sections 120, 131, 133a, 156, 178, 220 to 227, 229, 232, 260a, 261,262, 265 to 269, 278b, 282 and 288 to 293 of the income-tax act, 1961, shall apply, so far as may be, in relation to commodities transaction taxapplication of certain provisions of income-tax actappeal to commissioner of income-tax (appeals)116 (1) an assessee aggrieved by any assessment order made by the assessing officer under section 108 or any order under section 109, or denying his liability to be assessed under this chapter, or by an order imposing penalty under this chapter, may appeal to the commissioner of income-tax (appeals) within thirty days from the date of receipt of the order of the assessing officer(2) an appeal under sub-section (1) shall be in such form and shall be verified in such manner as may be prescribed and shall be accompanied by a fee of one thousand rupees43 of 1961(3) where an appeal has been filed under sub-section (1), the provisions of sections249 to 251 of the income-tax act, 1961, shall, as far as may be, apply to such appeal117 (1) an assessee aggrieved by an order made by a commissioner of income-tax(appeals) under section 116 may appeal to the appellate tribunal against such orderappeal to appettate tribunal(2) the commissioner of income-tax may, if he objects to any order passed by the commissioner of income-tax (appeals) under section 116, direct the assessing officer to appeal to the appellate tribunal against such order(3) an appeal under sub-section (1) or sub-section (2) shall be filed within sixty days from the date on which the order sought to be appealed against is received by the assessee or by the commissioner of income-tax, as the case may be(4) an appeal under sub-section (1) or sub-section (2) shall be in such form and verified in such manner as may be prescribed and, in the case of an appeal filed under subsection (1), shall be accompanied by a fee of one thousand rupees43 of 1961(5) where an appeal has been filed before the appellate tribunal under sub-section(1) or sub-section (2), the provisions of sections 253 to 255 of the income-tax act, 1961, shall, as far as may be, apply to such appealpunishment for false statement118 (1) if a person makes a false statement in any verification under this chapter or any rule made thereunder, or delivers an account or statement, which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable with imprisonment for a term which may extend to three years and with fine2 of 1974(2) notwithstanding anything contained in the code of criminal procedure, 1973, anoffence punishable under sub-section (1) shall be deemed to be non-cognizable within the meaning of that codeinstitution of prosecution119 no prosecution shall be instituted against any person for any offence undersection 113 except with the previous sanction of the chief commissioner of income-taxpower to make rules120 (1) the central government may, by notification in the official gazette, make rules for carrying out the provisions of this chapter(2) in particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—(a) the time-limits within which and the form and the manner in which the return shall be delivered or caused to be delivered or furnished under section 107; and(b) the form in which an appeal may be filed and the manner in which it may be verified under sections 116 and 117 (3) every rule made under this chapter 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 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 should not be made, the rule shall thereafter have effect only in such modified form 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 rulepower to remove difficulties121 (1) if any difficulty arises in giving effect to the provisions of this chapter, the central government may, by order published in the official gazette, not inconsistent with the provisions of this chapter, remove the difficulty:provided that no such order shall be made after the expiry of a period of two years from the date on which the provisions of this chapter come into force(2) every order made under this section shall be laid, as soon as may be after it is made, before each house of parliament chapter viii miscellaneous122 the seventh schedule to the finance act, 2001 shall be amended in the manner specified in the eighth scheduleamendment of seventh schedule to act 14 of 2001amendment of section 13 of act 58 of 2002123 in the unit trust of india (transfer of undertaking and repeal) act, 2002, in section13, in sub-section (1), for the words "for a period of five years computed from the appointed day", the words, figures and letters "for the period beginning on the appointed day and ending on the 31st day of march, 2009" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of february, 2008124 in the finance (no 2) act, 2004, with effect from the 1st day of june, 2008,—amendment of act 23 of 2004(i) in section 98, in the table, for serial number 4 and the entries relating thereto, the following serial number and the entries shall respectively be substituted, namely:—| sl no | taxable securities | rate | payable by ||---------------------------|----------------------|--------|----------------------------------|| transaction | | | || (1) | (2) | (3) | (4) || ''4 | ( | a | ) || in securities | | | || ( | b | ) | sale of an option in securities, || where option is exercised | | | || ( | c | ) | sale of a futures in securities |(ii) in section 99, for clause (a), the following clause shall be substituted, namely:—"(a) in the case of a taxable securities transaction relating to an option in securities, shall be—(i) the option premium, in respect of transaction at item (a) of serial number 4of the table in section 98;(ii) the settlement price, in respect of transaction at item (b) of serial number 4 of the table in section 98;"125 in the finance act, 2005,—amendment of act 18 of 2005 (i) in section 95, after sub-section (2), the following sub-section shall be inserted with effect from the 1st day of april, 2009, namely:—''(3) notwithstanding anything contained in sub-section (1), no banking cash transaction tax shall be charged in respect of any taxable banking transaction entered into on or after the 1st day of april, 2009"; (ii) the seventh schedule shall be amended in the manner specified in the ninth schedule part i income-tax paragraph a (i) in the case of every individual other than the individual referred to in items (ii) and (iii) of this paragraph or hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the income-tax act, not being a case to which any other paragraph of this part applies,—nil;(1) where the total income does not exceedrs 1,10,00010 per cent of the amount by which the total income exceeds rs 1,10,000;(2) where the total income exceeds rs1,10,000 butdoes not exceed rs 1,50,000rs 4,000 plus 20 per cent of the amount by which the total income exceeds rs 1,50,000;(3) where the total income exceeds rs 1,50,000 butdoes not exceed rs 2,50,000(4) where the total income exceeds rs 2,50,000rs 24,000 plus 30 per cent of the amount by which the total income exceeds rs 2,50,000(ii) in the case of every individual, being a woman resident in india, and below the age of sixty-five years at any time during the previous year,—nil;(1) where the total income does not exceed rs 1,45,00010 per cent of the amount by which the total income exceeds rs 1,45,000;(2) where the total income exceeds rs 1,45,000 butdoes not exceed rs 1,50,000rs 500 plus 20 per cent of the amount by which the total income exceeds rs 1,50,000;(3) where the total income exceeds rs 1,50,000 butdoes not exceed rs 2,50,000(4) where the total income exceeds rs 2,50,000rs 20,500 plus 30 per cent of the amount by which the total income exceeds rs 2,50,000(iii) in the case of every individual, being a resident in india, who is of the age of sixty-five years or more at any time during the previous year,—(1) where the total income does not exceed rs 1,95,000nil;(2) where the total income exceeds rs 1,95,000 butdoes not exceed rs 2,50,00020 per cent of the amount by which the total income exceeds rs 1,95,000;(3) where the total income exceeds rs 2,50,000rs 11,000 plus 30 per cent of the amount by which the total income exceeds rs 2,50,000the amount of income-tax computed in accordance with the preceding provisions of this paragraph, or in section111a or section 112, shall,—(i) in the case of every individual or hindu undivided family or association of persons or body of individuals having a total income exceeding ten lakh rupees, be reduced by the amount of rebate of income-tax calculated under chapter viii-a, and the income-tax as so reduced, be increased by a surcharge for purposes of the union calculated at the rate of ten per cent of such income-tax;(ii) in the case of every person, other than those mentioned in item (i), be increased by a surcharge for purposes of the union calculated at the rate of ten per cent of such income-tax: provided that in case of persons mentioned in item (i) above having a total income exceeding ten lakh rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as incometax on a total income of ten lakh rupees by more than the amount of income that exceeds ten lakh rupeesin the case of every co-operative society,—(1)where the total income does not exceed rs10,00010 per cent of the total income;(2)where the total income exceeds rs10,000 butrs1,000 plus 20 per cent of the amount bydoes not exceed rs 20,000which the total income exceeds rs10,000;(3)where the total income exceeds rs 20,000rs 3,000 plus 30 per cent of the amount by which thetotal income exceeds rs 20,000in the case of every firm,—rate of income-taxon the whole of the total income30 per centthe amount of income-tax computed at the rate hereinbefore specified, or in section 111a or section 112, shall, in the case of every firm having a total income exceeding one crore rupees, be increased by a surcharge for purposes of the union calculated at the rate of ten per cent of such income-tax:provided that in the case of every firm having a total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees paragraph din the case of every local authority,—rate of income-taxon the whole of the total income30 per centin the case of a company,—rates of income-taxi in the case of a domestic company30 per cent of the total income;ii in the case of a company other than a domestic company—(i) on so much of the total income as consists of,—(a) royalties received from government oran indian concern in pursuance of an agreement made by it with the government or the indian concern after the 31st day of march, 1961 but before the 1st day of april, 1976; or(b) fees for rendering technical servicesreceived from government or an indian concern in pursuance of an agreement made by it with thegovernment or the indian concern after the 29th day of february, 1964 but before the 1st day of april, 1976, and where such agreement has, in either case, been approved50 per cent;by the central government(ii) on the balance, if any, of the total income40 per centthe amount of income-tax computed in accordance with the preceding provisions of this paragraph, or in section 111aor section 112, shall, in the case of every company, be increased by a surcharge for purposes of the union calculated,—(i) in the case of every domestic company having a total income exceeding one crore rupees, at the rate of ten per cent of such income-tax;(ii) in the case of every company other than a domestic company having a total income exceeding one crore rupees, at the rate of two and one-half per cent:provided that in the case of every company having a total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees part ii rates for deduction of tax at source in certain casesin every case in which under the provisions of sections 193, 194, 194a, 194b, 194bb, 194d and 195 of the income-tax act, tax is to be deducted at the rates in force, deduction shall be made from the income subject to the deduction at the following rates:—rate of income-tax1 in the case of a person other than a company—(a) where the person is resident in india—| ( | i | ) on income by way of interest other than "interest on securities" ||-----------------------------|-----|------------------------------------------------------------------------------|| 10 per cent; | | || 30 per cent; | | || ( | ii | ) on income by way of winnings from lotteries, crossword puzzles, card games || and other games of any sort | | || ( | iii | ) on income by way of winnings from horse races || 30 per cent; | | || 10 per cent; | | || ( | iv | ) on income by way of insurance commission || 10 per cent; | | || ( | v | ) on income by way of interest payable on— |(a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a central, state or provincial act;(b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in india in accordance with the securities contracts (regulation) act, 1956 (42 of 1956) and any rules made thereunder;| ( | c | ) any security of the central or state government ||---------------|-----|-----------------------------------------------------|| 20 per cent; | | || ( | vi | ) on any other income |(b) where the person is not resident in india—(i) in the case of a non-resident indian—| ( | a | ) on any investment income ||---------------|-----|-----------------------------------------------------------------------|| 20 per cent; | | || 10 per cent; | | || ( | b | ) on income by way of long-term capital gains referred to in section || 115e | | || 15 per cent; | | || ( | c | ) on income by way of short-term capital gains referred to in section || 111a | | |rate of income-tax20 per cent;(d) on other income by way of long-term capital gains [not being long-termcapital gains referred to in clauses (33), (36) and (38) of section 10]20 per cent;(e) on income by way of interest payable by government or an indianconcern on moneys borrowed or debt incurred by government or the indian concern in foreign currency(f) on income by way of royalty payable by government or an indian concern in pursuance of an agreement made by it with the government or the indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1a) of section 115a of the income-tax act, to the indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1a) of section 115a of the income-tax act, to a person resident in india—20 per cent;(i) where the agreement is made on or after the 1st day of june, 1997but before the 1st day of june, 2005(ii) where the agreement is made on or after the 1st day of june, 200510 per cent;(g) on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(i)(f)] payable by government or an indian concern in pursuance of an agreement made by it with the government or the indian concern and where such agreement is with an indian concern, the agreement is approved by the central government or where it relates to a matter included in the industrial policy, for the time being in force, of the government of india, the agreement is in accordance with that policy—20 per cent;(i) where the agreement is made on or after the 1st day of june, 1997but before the 1st day of june, 200510 per cent;(ii) where the agreement is made on or after the 1st day of june, 2005(h) on income by way of fees for technical services payable by government or an indian concern in pursuance of an agreement made by it with the government or the indian concern and where such agreement is with an indian concern, the agreement is approved by the central government or where it relates to a matter included in the industrial policy, for the time being in force, of the government of india, the agreement is in accordance with that policy—20 per cent;(i) where the agreement is made on or after the 1st day of june, 1997but before the 1st day of june, 200510 per cent;(ii) where the agreement is made on or after the 1st day of june, 200530 per cent;(i) on income by way of winnings from lotteries, crossword puzzles, cardgames and other games of any sort(j) on income by way of winnings from horse races30 per cent; 30 per cent;(k) on the whole of the other income(ii) in the case of any other person—20 per cent;(a) on income by way of interest payable by government or an indianconcern on moneys borrowed or debt incurred by government or the indian concern in foreign currency(b) on income by way of royalty payable by government or an indian concern in pursuance of an agreement made by it with the government or the indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1a) of sectionrate of income-tax115a of the income-tax act, to the indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1a) of section 115a of the income-tax act, to a person resident in india—20 per cent;(i) where the agreement is made on or after the 1st day of june, 1997but before the 1st day of june, 2005(ii) where the agreement is made on or after the 1st day of june, 200510 per cent;(c) on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(ii)(b)] payable by government or an indian concern in pursuance of an agreement made by it with the government or the indian concern and where such agreement is with an indian concern, the agreement is approved by the central government or where it relates to a matter included in the industrial policy, for the time being in force, of the government of india, the agreement is in accordance with that policy—20 per cent;(i) where the agreement is made on or after the 1st day of june, 1997but before the 1st day of june, 2005(ii) where the agreement is made on or after the 1st day of june, 200510 per cent;(d) on income by way of fees for technical services payable by government or an indian concern in pursuance of an agreement made by it with the government or the indian concern and where such agreement is with an indian concern, the agreement is approved by the central government or where it relates to a matter included in the industrial policy, for the time being in force, of the government of india, the agreement is in accordance with that policy—20 per cent;(i) where the agreement is made on or after the 1st day of june, 1997but before the 1st day of june, 2005(ii) where the agreement is made on or after the 1st day of june, 200510 per cent; 30 per cent;(e) on income by way of winnings from lotteries, crossword puzzles, cardgames and other games of any sort30 per cent; 15 per cent;(f) on income by way of winnings from horse races (g) on income by way of short-term capital gains referred to in section111a20 per cent; 30 per cent;(h) on income by way of long-term capital gains [not being long-termcapital gains referred to in clauses (33), (36) and (38) of section 10](i) on the whole of the other income2 in the case of a company—(a) where the company is a domestic company—20 per cent;(i) on income by way of interest other than "interest on securities"30 per cent;(ii) on income by way of winnings from lotteries, crossword puzzles, card gamesand other games of any sort(iii) on income by way of winnings from horse races30 per cent;(iv) on any other income20 per cent;(b) where the company is not a domestic company—30 per cent;(i) on income by way of winnings from lotteries, crossword puzzles, card gamesand other games of any sort30 per cent;(ii) on income by way of winnings from horse races20 per cent;(iii) on income by way of interest payable by government or an indian concernon moneys borrowed or debt incurred by government or the indian concern in foreign currencyrate of income-tax(iv) on income by way of royalty payable by government or an indian concern in pursuance of an agreement made by it with the government or the indian concern after the 31st day of march, 1976 where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1a) of section115a of the income-tax act, to the indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1a) of section 115a of the income-tax act, to a person resident in india—30 per cent;(a) where the agreement is made before the 1st day of june, 1997 (b) where the agreement is made on or after the 1st day of june, 1997 butbefore the 1st day of june, 200520 per cent;(c) where the agreement is made on or after the 1st day of june, 200510 per cent;(v) on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(iv)] payable by government or an indian concern in pursuance of an agreement made by it with the government or the indian concern and where such agreement is with an indian concern, the agreement is approved by the central government or where it relates to a matter included in the industrial policy, for the time being in force, of the government of india, the agreement is in accordance with that policy—50 per cent;(a) where the agreement is made after the 31st day of march, 1961 butbefore the 1st day of april, 197630 per cent;(b) where the agreement is made after the 31st day of march, 1976 butbefore the 1st day of june, 199720 per cent;(c) where the agreement is made on or after the 1st day of june, 1997 butbefore the 1st day of june, 2005(d) where the agreement is made on or after the 1st day of june, 200510 per cent;(vi) on income by way of fees for technical services payable by government or an indian concern in pursuance of an agreement made by it with the government or the indian concern and where such agreement is with an indian concern, the agreement is approved by the central government or where it relates to a matter included in the industrial policy, for the time being in force, of the government of india, the agreement is in accordance with that policy—50 per cent;(a) where the agreement is made after the 29th day of february, 1964 butbefore the 1st day of april, 1976(b) where the agreement is made after the 31st day of march, 1976 butbefore the 1st day of june, 199730 per cent;(c) where the agreement is made on or after the 1st day of june, 1997 butbefore the 1st day of june, 200520 per cent;(d) where the agreement is made on or after the 1st day of june, 2005(vii) on income by way of short-term capital gains referred to in section 111a15 per cent; 10 per cent;(viii) on income by way of long-term capital gains [not being long-term capitalgains referred to in clauses (33), (36) and (38) of section 10]20 per cent;(ix) on any other income40 per cent;explanation—for the purpose of item 1(b)(i) of this part, "investment income" and "nonresident indian" shall have the meanings assigned to them in chapter xii-a of the income-tax actrate of income-taxthe amount of income-tax deducted in accordance with the provisions of—(a) item 1 of this part, shall be increased by a surcharge, for purposes of the union, calculated,—(i) in the case of every individual, hindu undivided family, association of persons and body of individuals, whether incorporated or not, at the rate of ten per cent of such tax where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten lakh rupees;(ii) in the case of every artificial juridical person referred to in sub-clause (vii) of clause (31) of section2 of the income-tax act, at the rate of ten per cent of such tax;(iii) in the case of every firm at the rate of ten per cent of such tax where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees; (b) item 2 of this part, shall be increased by a surcharge, for purposes of the union, calculated,—(i) in the case of every domestic company at the rate of ten per cent of such income-tax where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees;(ii) in the case of every company other than a domestic company at the rate of two and one-half per centof such income-tax where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees part iii rates for charging income-tax in certain cases, deducting income-tax from income chargeable under the head "salaries" and computing "advance tax"in cases in which income-tax has to be charged under sub-section (4) of section 172 of the income-tax act or subsection (2) of section 174 or section 174a or section 175 or sub-section (2) of section 176 of the said act or deducted from, or paid on, from income chargeable under the head "salaries" under section 192 of the said act or in which the "advance tax" payable under chapter xvii-c of the said act has to be computed at the rate or rates in force, such income-tax or, as the case may be, "advance tax" [not being "advance tax" in respect of any income chargeable to tax under chapter xii or chapter xii-a or fringe benefits chargeable to tax under chapter xii-h or income chargeable to tax under section 115jb or sub-section (1a) of section 161 or section 164 or section 164a or section 167b of the income-tax act at the rates as specified in that chapter or section or surcharge on such "advance tax" in respect of any income chargeable to tax under section 115a or section 115ab or section 115ac or section 115aca or section 115ad or section 115b or section 115bb or section 115bba or section 115bbc or section 115e or section 115jb or fringe benefits chargeable to tax under section 115wa] shall be charged, deducted or computed at the following rate or rates:—(i) in the case of every individual other than the individual referred to in items (ii) and (iii) of this paragraph or hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the income-tax act, not being a case to which any other paragraph of this part applies,—rates of income-taxnil;(1) where the total income does not exceed rs 1,50,00010 per cent of the amount by which the total income exceeds rs 1,50,000;(2) where the total income exceeds rs1,50,000 but doesnot exceed rs 3,00,000rs 15,000 plus 20 per cent of the amount by which the total income exceeds rs 3,00,000;(3) where the total income exceeds rs 3,00,000 but doesnot exceed rs 5,00,000(4) where the total income exceeds rs 5,00,000rs 55,000 plus 30 per cent of the amount by which the total income exceeds rs 5,00,000(ii) in the case of every individual, being a woman resident in india, and below the age of sixty-five years at any time during the previous year,—(1) where the total income does not exceed rs 1,80,000nil;(2) where the total income exceeds rs 1,80,000 but doesnot exceed rs 3,00,00010 per cent of the amount by which the total income exceeds rs 1,80,000;(3) where the total income exceeds rs 3,00,000 but doesnot exceed rs 5,00,000rs 12,000 plus 20 per cent of the amount by which the total income exceeds rs 3,00,000;(4) where the total income exceeds rs 5,00,000rs 52,000 plus 30 per cent of the amount by which the total income exceeds rs 5,00,000(iii) in the case of every individual, being a resident in india, who is of the age of sixty-five years or more at any time during the previous year,—nil;(1) where the total income does not exceed rs 2,25,00010 per cent of the amount by which the total income exceeds rs 2,25,000;(2) where the total income exceeds rs 2,25,000 but doesnot exceed rs 3,00,000rs 7,500 plus 20 per cent of the amount by which the total income exceeds rs 3,00,000;(3) where the total income exceeds rs3,00,000 but doesnot exceed rs 5,00,000(4) where the total income exceeds rs 5,00,000rs 47,500 plus 30 per cent of the amount by which the total income exceeds rs 5,00,000the amount of income-tax computed in accordance with the preceding provisions of this paragraph, or in section111a or section 112, shall,—(i) in the case of every individual or hindu undivided family or association of persons or body of individuals having a total income exceeding ten lakh rupees, be increased by a surcharge for purposes of the union calculated at the rate of ten per cent of such income-tax;(ii) in the case of every person, other than those mentioned in item (i), be increased by a surcharge for purposes of the union calculated at the rate of ten per cent of such income-tax:provided that in case of persons mentioned in item (i) above having a total income exceeding ten lakh rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of ten lakh rupees by more than the amount of income that exceeds ten lakh rupeesin the case of every co-operative society, —rates of income-tax10 per cent of the total income;(1) where the total income does not exceedrs 10,000(2) where the total income exceeds rs10,000 butdoes not exceed rs 20,000rs 1,000 plus 20 per cent of the amount by which the total income exceeds rs 10,000;(3) where the total income exceeds rs 20,000rs 3,000 plus 30 per cent of the amount by which the total income exceeds rs 20,000in the case of every firm,—rate of income-taxon the whole of the total income30 per centthe amount of income-tax computed at the rate hereinbefore specified, or in section 111a or section 112, shall, in the case of every firm having a total income exceeding one crore rupees, be increased by a surcharge for purposes of the union calculated at the rate of ten per cent of such income-tax :provided that in the case of every firm having a total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupeesin the case of every local authority,—rate of income-taxon the whole of the total income30 per centin the case of a company,—i in the case of a domestic company30 per cent of the total income;ii in the case of a company other than a domestic company—(i) on so much of the total income as consists of,—(a) royalties received from government or an indian concern in pursuance of an agreement made by it with the government or the indian concern after the 31st day of march, 1961 but before the 1st day of april, 1976; or(b) fees for rendering technical services received from government or an indian concern in pursuance of an agreement made by it with the government or the indian concern after the 29th day of february, 1964 but before the 1st day of april, 1976, and where such agreement has, in either case, been50 per cent;approved by the central government (ii) on the balance, if any, of the total income40 per centthe amount of income-tax computed in accordance with the preceding provisions of this paragraph, or in section111a or section 112, shall, in the case of every company, be increased by a surcharge for purposes of the union calculated,—(i) in the case of every domestic company having a total income exceeding one crore rupees, at the rate of ten per cent of such income-tax;(ii) in the case of every company other than a domestic company having a total income exceeding one crore rupees at the rate of two and one-half per cent:provided that in the case of every company having a total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees part iv [see section 2(12)(c)] rules for computation of net agricultural incomerule 1—agricultural income of the nature referred to in sub-clause (a) of clause (1a) of section 2 of the income-tax act shall be computed as if it were income chargeable to income-tax under that act under the head "income from other sources" and the provisions of sections 57 to 59 of that act shall, so far as may be, apply accordingly:provided that sub-section (2) of section 58 shall apply subject to the modification that the reference to section 40atherein shall be construed as not including a reference to sub-sections (3) and (4) of section 40arule 2—agricultural income of the nature referred to in sub-clause (b) or sub-clause (c) of clause (1a) of section2 of the income-tax act [other than income derived from any building required as a dwelling-house by the receiver of the rent or revenue of the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed as if it were income chargeable to income-tax under that act under the head "profits and gains of business or profession" and the provisions of sections 30, 31, 32, 36, 37, 38, 40, 40a [other than sub-sections (3) and (4) thereof], 41, 43, 43a, 43b and43c of the income-tax act shall, so far as may be, apply accordinglyrule 3—agricultural income of the nature referred to in sub-clause (c) of clause (1a) of section 2 of the income-tax act, being income derived from any building required as a dwelling-house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under that act under the head "income from house property" and the provisions of sections 23 to 27 of that act shall, so far as may be, apply accordinglyrule 4—notwithstanding anything contained in any other provisions of these rules, in a case—(a) where the assessee derives income from sale of tea grown and manufactured by him in india, such income shall be computed in accordance with rule 8 of the income-tax rules, 1962, and sixty per cent of such income shall be regarded as the agricultural income of the assessee;(b) where the assessee derives income from sale of centrifuged latex or cenex or latex based crepes (such as pale latex crepe) or brown crepes (such as estate brown crepe, re-milled crepe, smoked blanket crepe or flat bark crepe) or technically specified block rubbers manufactured or processed by him from rubber plants grown by him in india, such income shall be computed in accordance with rule 7a of the income-tax rules, 1962, and sixty-five per cent of such income shall be regarded as the agricultural income of the assessee;(c) where the assessee derives income from sale of coffee grown and manufactured by him in india, such income shall be computed in accordance with rule 7b of the income-tax rules, 1962, and sixty per cent or seventyfive per cent, as the case may be, of such income shall be regarded as the agricultural income of the assessee rule 5—where the assessee is a member of an association of persons or a body of individuals (other than a hindu undivided family, a company or a firm) which in the previous year has either no income chargeable to tax under the incometax act or has total income not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of individuals (other than a hindu undivided family, a company or a firm) but has any agricultural income then, the agricultural income or loss of the association or body shall be computed in accordance with these rules and the share of the assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or loss of the assesseerule 6—where the result of the computation for the previous year in respect of any source of agricultural income is a loss, such loss shall be set off against the income of the assessee, if any, for that previous year from any other source of agricultural income:provided that where the assessee is a member of an association of persons or a body of individuals and the share of the assessee in the agricultural income of the association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee from any other source of agricultural incomerule 7—any sum payable by the assessee on account of any tax levied by the state government on the agricultural income shall be deducted in computing the agricultural incomerule 8—(1) where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of april, 2008, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of april, 2000 or the 1st day of april, 2001 or the 1st day of april, 2002 or the 1st day of april, 2003 or the 1st day of april, 2004 or the 1st day of april, 2005 or the 1st day of april, 2006 or the 1st day of april, 2007, is a loss, then, for the purposes of sub-section (2)of section 2 of this act,—(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 2000, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 2001 or the 1st day of april, 2002 or the 1st day of april, 2003 or the 1st day of april, 2004 or the 1st day of april, 2005 or the 1st day of april, 2006 or the 1st day of april, 2007,(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 2001, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 2002 or the 1st day of april, 2003 or the 1st day of april, 2004 or the 1st day of april, 2005 or the 1st day of april, 2006 or the 1st day of april, 2007,(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 2002, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 2003 or the 1st day of april, 2004 or the 1st day of april, 2005 or the 1st day of april, 2006 or the 1st day of april, 2007,(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 2003, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 2004 or the 1st day of april, 2005 or the 1st day of april, 2006 or the 1st day of april, 2007,(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 2004, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 2005 or the 1st day of april, 2006 or the 1st day of april, 2007,(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 2005, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 2006 or the 1st day of april, 2007,(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 2006, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 2007,(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 2007, shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of april, 2008(2) where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of april, 2009, or, if by virtue of any provision of the income-tax act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of april, 2001 or the 1st day of april, 2002 or the 1st day of april, 2003 or the 1st day of april, 2004 or the 1st day of april, 2005 or the 1st day of april, 2006 or the 1st day of april, 2007 or the 1st day of april, 2008, is a loss, then, for the purposes of sub-section (10) of section 2 of this act,—(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april,2001, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 2002 or the 1st day of april, 2003 or the 1st day of april, 2004 or the 1st day of april, 2005 or the 1st day of april, 2006 or the 1st day of april, 2007 or the 1st day of april, 2008,(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 2002, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 2003 or the 1st day of april, 2004 or the 1st day of april, 2005 or the 1st day of april, 2006 or the 1st day of april, 2007 or the 1st day of april, 2008,(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 2003, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 2004 or the 1st day of april, 2005 or the 1st day of april, 2006 or the 1st day of april, 2007 or the 1st day of april, 2008,(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 2004, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 2005 or the 1st day of april, 2006 or the 1st day of april, 2007 or the 1st day of april, 2008,(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 2005, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 2006 or the 1st day of april, 2007 or the 1st day of april, 2008,(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april,2006, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 2007 or the 1st day of april, 2008,(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april,2007, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 2008,(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 2008, shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of april, 2009(3) where any person deriving any agricultural income from any source has been succeeded in such capacity by another person, otherwise than by inheritance, nothing in sub-rule (1) or sub-rule (2) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1) or, as the case may be, sub-rule (2)(4) notwithstanding anything contained in this rule, no loss which has not been determined by the assessing officer under the provisions of these rules or the rules contained in part iv of the first schedule to the finance act, 2000 (10 of 2000), or of the first schedule to the finance act, 2001 (14 of 2001), or of the first schedule to the finance act, 2002 (20 of 2002), or of the first schedule to the finance act, 2003 (32 of 2003), or of the first schedule to the finance (no 2) act, 2004 (23 of 2004) or of the first schedule to the finance act, 2005 (18 of 2005), or of the first schedule to the finance act, 2006 (21 of 2006) or of the first schedule to the finance act, 2007 (22 of 2007) shall be set off under sub-rule (1) or, as the case may be, sub-rule (2)rule 9—where the net result of the computation made in accordance with these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nilrule 10—the provisions of the income-tax act relating to procedure for assessment (including the provisions of section 288a relating to rounding off of income) shall, with the necessary modifications, apply in relation to the computation of the net agricultural income of the assessee as they apply in relation to the assessment of the total incomerule 11—for the purposes of computing the net agricultural income of the assessee, the assessing officer shall have the same powers as he has under the income-tax act for the purposes of assessment of the total income the second schedule[see section 77(ii)]in the first schedule to the customs tariff act,—(1) in chapter 24, in tariff items 2402 10 10 and 2402 10 20, for the entry in column (4) occurring against each of them, the entry "60%" shall be substituted;(2) in chapter 27, in tariff item 2716 00 00, for the entry in column (4), the entry "rs 2000 per 1000 kwh" shall be substituted the third schedule [see section 77(iii)]in the second schedule to the customs tariff act, against heading no 12, for the entry in column (3), the entry"rs 3000 per tonne" shall be substituted'in the second schedule to the customs tariff act,—(i)against heading no 12, for the entry in column (3), the entry "rs 3000 per tonne" shall be substituted;(ii) after heading no 26 and the entries relating thereto, the following shall be inserted, namely:—| heading no | description of article | rate of duty ||------------------------------------------------------|-------------------------------------------------------------|----------------|| (1) | (2) | (3) || "27 | pig iron and spiegeleisen in pigs, blocks or | 20% || other primary forms | | || 28 | ferrous products obtained by direct reduction | 20% || of iron ore and other spongy ferrous products, | | || in lumps, pellets or similar forms; iron having | | || minimum purity by weight of 9994%, in lumps, | | || pellets or similar forms | | || 29 | ferrous waste and scrap, remelting scrap ingots | 20% || of iron or steel | | || 30 | granules and powders, of pig iron, spiegeleisen, | 20% || iron or steel | | || 31 | iron and non-alloy steel in ingots or other | 20% || primary forms | | || 32 | semi-finished products of iron or non-alloy steel | 20% || 33 | flat rolled products of iron or non-alloy steel, | 20% || hot rolled, not clad, plated or coated | | || 34 | flat rolled products of iron or non-alloy steel, cold | 20% || rolled (cold-reduced) not clad, plated or coated | | || 35 | flat rolled products of iron or non-alloy steel, | 20% || plated or coated with zinc | | || 36 | bars and rods, hot-rolled, in irregularly wound | 20% || coils, of iron or non-alloy steel | | || 37 | other bars and rods of iron or non-alloy steel, not further | 20% || worked than forged, hot-rolled, hot-drawn or or hot- | | || extruded, but including those twisted after rolling | | || 38 | other bars and rods of iron or non-alloy steel | 20% || 39 | angles, shapes and sections of iron or non-alloy-steel | 20% || 40 | wire of iron or non-alloy steel | 20% || 41 | tubes and pipes, of iron or steel | 20% || 42 | basmati rice | rs 12000 || per tonne" | | | the fourth schedule (see section 86)| amendment | provisions of the central ||----------------------------------------------------------------|-----------------------------|| excise rules, 1944, to be | || amended | || (1) | || in the central excise rules, 1944, in rule 12, in sub-rule ( | 1 || after the proviso, the following proviso shall be inserted, | || namely:— | || rule 12 of the central excise | || rules, 1944 as substituted | || by notification number | || gsr 699(e), dated the | || 22nd september, 1994 | || "provided further that the rebate of duty paid on | || excisable goods cleared from factory for export shall also | || be admissible for that portion of duty paid for which refund | || has been granted in terms of the notification of the | || government of india in the ministry of finance (department | || of revenue) number gsr 508(e), dated the 8th july, 1999 | || [32/99-central excise, dated the 8th july, 1999] or number | || gsr 509(e), dated the 8th july, 1999 [33/99-central excise, | || dated the 8th july, 1999]" | |period of effect of amendment(3)(2)8th day of july, 1999 to the 30th day of june, 2001 (both daysinclusive) the fifth schedule (see section 87)| amendment ||-----------------------------|| excise (no 2) rules, 2001, || to be amended || (1) |in the central excise (no 2) rules, 2001, in rule 18, before the explanation, the following proviso shall be inserted, namely:—rule 18 of the central excise (no 2) rules, 2001 as published vide notificationnumber gsr 444(e), dated the 21st june, 2001 "provided that the rebate of duty paid on excisablegoods cleared from factory for export shall also be admissible for the portion of duty paid for which the refund has been granted in terms of the notifications of the government of india in the ministry of finance (department of revenue) number gsr 508(e), dated the 8th july, 1999 [32/99-central excise, dated the 8th july, 1999] or number gsr 509(e), dated the 8th july, 1999 [33/99-central excise, dated the 8th july, 1999], number gsr 565(e), dated the 31st july, 2001 [39/2001-central excise, dated the 31st july, 2001]"period of effect of amendment(3)(2)1st day of july, 2001 to 28th day of february, 2002 (both daysinclusive) the sixth schedule (see section 88)| amendment | provisions of the central ||----------------------------------------------------------------|-----------------------------------------------------|| excise rules, 2002, to be | || amended | || (1) | || in the central excise rules, 2002, in rule 18, before the | || explanation | , the following proviso shall be inserted, namely:— || rule 18 of the central excise | || rules, 2002 as published | || vide | notification number || gsr 143(e), dated the 1st | || march, 2002 | || "provided that the rebate of duty paid on excisable | || goods cleared from factory for export shall also be admissible | || for that portion of duty paid for which the refund has been | || granted in terms of the notifications of the government of | || india in the ministry of finance (department of revenue) | || number gsr 508(e), dated the 8th july, 1999 [32/99-central | || excise, dated the 8th july, 1999] or number gsr 509(e), | || dated the 8th july, 1999 [33/99-central excise, dated the 8th | || july, 1999], number gsr 565(e), dated the 31st july, 2001 | || [39/2001-central excise, dated the 31st july, 2001], or | || notification of the government of india in the erstwhile | || ministry of finance and company affairs (department of | || revenue) number gsr 764(e), dated 14th november, 2002 | || [56/2002-central excise, dated the 14th november, 2002], | || number gsr 765(e), dated the 14th november, 2002 [57/ | || 2002-central excise, dated the 14th november, 2002], or | || notification of the government of india in the ministry of | || finance (department of revenue) number gsr 513(e), | || dated the 25th june, 2003 [56/2003-central excise, dated | || the 25th june, 2003], number gsr 717(e), dated the 9th | || september, 2003 [71/2003-central excise, dated the 9th | || september, 2003]" | |period of effect of amendment(3)(2)1st day of march, 2002 to 7th day ofdecember, 2006 (both days inclusive) the seventh schedule (see section 89)in the first schedule to the central excise tariff act,— (1) in chapter 24,— (i) in tariff item 2402 20 10, for the entry in column (4), the entry "rs 659 per thousand" shall be substituted; (ii) in tariff item 2402 20 20, for the entry in column (4), the entry "rs1068 per thousand" shall be substituted; (2) in chapter 25, —(i) in tariff item 2523 10 00, for the entry in column (4), the entry "rs 450 per tonne" shall be substituted; (ii) in tariff items 2523 29 10, 2523 29 20, 2523 29 30, 2523 29 40 and2523 29 90 , for the entry in column (4), the entry "rs 900 per tonne" shall be substituted against each of them';(3) in chapter 39, in note 16, for the word "metallization", the words "metallization or lamination or lacquering"shall be substituted;(4) in chapter 85, in tariff item 8523 80 20, for the entry in column (4), the entry "12%" shall be substituted the eighth schedule (see section 122)in the seventh schedule to the finance act, 2001 (14 of 2001),—(1) in tariff item 2402 20 10, for the entry in column (4), the entry "rs 90 per thousand" shall be substituted; (2) in tariff item 2402 20 20, for the entry in column (4), the entry "rs 145 per thousand" shall be substituted;(3) after tariff item 2709 00 00 and the entries relating thereto, the following tariff items and entries shall be inserted, namely:—| | tariff item | description of goods | unit rate of duty ||------------|---------------|------------------------------------------------------------------|---------------------|| (1) | (2) | (3) | (4) || "8517 12 | - | telephones for cellular networks or for other wireless networks: | || 8517 12 10 | --- | push button type | u || 8517 12 90 | --- | other | u |(4) sub-heading 5402 20, tariff items 5402 20 10, 5402 20 90, 5402 33 00, 5402 46 00, 5402 47 00, 5402 52 00,5402 62 00, 5406 10 00 and the entries relating thereto shall be omitted the ninth schedule[see section 125(ii)]in the seventh schedule to the finance act, 2005 (18 of 2005),—(1) in tariff item 2402 20 10, for the entry in column (4), the entry "rs 70 per thousand" shall be substituted; (2) in tariff item 2402 20 20, for the entry in column (4), the entry "rs 110 per thousand" shall be substituted————a billto give effect to the financial proposals of the central government for the financial year 2008-2009————(as passed by lok sabha)mgipmrnd—1955ls(s5)—29-04-2008 | Parliament_bills | 358a92a5-0f8d-5a7b-b12e-75799ec61e5e |
bill no 211 of 2018 the right to disconnect bill, 2018 byshrimati supriya sule, mpa billto establish an employees' welfare authority to confer the right on every employee todisconnect from work related telephone calls and emails beyond work hours and on holidays and right to refuse to answer calls and emails outside work hours and for all matters connected therewith or incidental theretobe it enacted by parliament in the sixty-ninth year of the republic of india as follows:—1 (1) this act may be called the right to disconnect act, 2018 (2) it extends to the whole of indiashort title, extent and commencementdefinitions2 in this act, unless the context otherwise requires,—(a) "annual report" means a report giving the details of developmental activities taken up over the year by the authority and detailing about targets set and achieved;5(b) "appropriate government" means in the case of a state, the government of that state and in all other cases, the central government;(c) "authority" means the employees' welfare authority constituted under section 3;(d) "company" means an entity registered under the companies act, of 2013;10(e) "out-of-work hours" means the time other than which is agreed upon, between the employer and employee, in the work contract as the work hours;21 of 1860(f) "society" means an entity registered as society under the societies registration act, of 1860; and(g) "prescribed" means prescribed by the rules made under this act153 (1) with effect from such date as the central government may, by notification, appoint, there shall be constituted, for the purposes of this act, an authority, to be known as the employees' welfare authority consisting of the following members, namely:—constitution of the employees' welfare authority(a) minister of state, ministry of electronics and information technology—chairperson ex-officio;20(b) minister of state, ministry of communication—vice-chairperson ex-officio;(c) minister of state, ministry of labour and employment—vice chairperson ex-officio;25(d) secretaries of the union ministries of electronics and information technology, communication, labour and employment and statistics and programme implementation—member ex-officio;(e) chief labour commissioner—member ex-officio; (f) director general, labour bureau—member ex-officio;(2) the central government shall appoint such number of officers and staff as it considers necessary for the functioning of the authority30(3) the salary and allowances payable to and other terms and conditions of services of officers and staff of the authority shall be such, as may be prescribedmeetings of the authority4 (1) the authority shall meet at such times and places and shall observe such rules of procedure in regard to transaction of business at its meetings as may be prescribed by the central government35| | | ( | 2 | ) the expenditure incurred to attend meetings by the members referred to in sub- ||---------------------------------------------------------------------------------------------|----|------------------------------------------------------------------------------|-----|------------------------------------------------------------------------------------|| clauses ( | a | ) to ( | f | ) of section 3, shall be borne by the ministry concerned || functions of | | | | || the authority | | | | || 40 | | | | || 5 ( | 1 | ) the authority shall discharge such functions as may be necessary to ensure | | || the welfare of employees in the country and formulate a charter that outlines the terms and | | | | || conditions to be negotiated between employees and employers of a company or society, | | | | || within one year from the date of its constitution | | | | |(2) the authority shall disseminate any necessary knowledge and information collected on the use of digital and communication tools, to the state governments, to be disseminated to the companies and societies(3) the rights and benefits bestowed on employees, prescribed in this act, shall be in addition to those already enjoyed by them under different ongoing government employee welfare schemesbaseline study to collect data56 (1) the authority shall undertake a baseline study to collect comprehensive data about usage of digital and communication tools outside work hours and in personal life by all workers either employed in a company or society, which shall be completed within one year from the date of its constitution(2) the authority may direct the appropriate government, societies and companies to assist in conducting the baseline study107 every employee shall have the right to disconnect out of work hoursexplanation—for the purpose of this section:—| right ||---------------|| disconnect of || employees |(a) 'right to disconnect' means that while the employer may contact the worker after work hours, the employee is not obliged to reply or shall have right to refuse to answer such calls; and15(b) in case an employee refuses to reply any call during out-of-work hours, suchemployee shall not be subject to any disciplinary action by the employer8 (1) the authority shall direct every individual, company and society having more than ten employees to conduct negotiations with employees, unions or employee representatives to decide the terms and conditions for working out-of-work hours:20drafting of customised charter by individual companies and societiesprovided that the right to disconnect rules and protocols shall be negotiated at thelevel of individual company or society taking into consideration the diverse work cultures of different entities and their competitive needs25(2) the individual registered entity (company or society) shall produce its own charter detailing clarification on the out-of-work hours, service conditions of employees and the respective demands of the employers9 (1) the charter of individual entity made under sub-section (2) of section 8 shall identify on an individual basis, as to when an employee be contacted during out-of-work hours and holidays which are arrived at through negotiations and mutual agreement of employer and employeecharter to be included in the charter of individual entities30(2) every employee shall be entitled to right to disconnect, when contacted for workrelated purpose during time other than that agreed upon under sub-sections (1) and (2)10 an employer may contact any employee either through telecom, videocall, message, email in other form of communication out-of-work hours, during the time mutually agreed upon by such employee and employers| contact ||---------------|| call, message || and email, || etc |3511 every employee working during out-of-work hours mutually agreed, shall be entitledto overtime at the normal wage rateovertime pay for workingoutside work hours12 every registered company and society shall constitute a employees' welfare committees consisting of its employees to assist or represent the employees for negotiation of terms and conditions of out-of-work hours with employersemployees welfare committees of individual entitites4013 the appropriate government shall ensure that the negotiations for conditions ofoutside-work-hours, between employees and employer are conducted at regular intervals, to ensure flexibility in the rules of right to disconnectnegotiations to be conducted at frequent intervals14 the charter of the individual entity shall explicitly mention normal the out-of-work hours to be followed until an agreement is reached between the employer and its employees:in case of agreement not reachedprovided that if any employer contacts his employee during the period when there is no mutually agreed out-of-work period, the employee, during out of work hours,—5(a) shall not be obliged to respond and shall have right to disconnect; or (b) may choose to respond, for which he shall be entitled to get overtime pay in such manner as may be prescribed1015 every individual registered entity, company or society, shall frame a policy for its employees who are working in remote areas or, involved in teleworking or working from home, such policy has to be mutually agreed by employeespolicy for employees working remotely16 every individual registered entity, company or society, shall undertake awareness programmes to sensitive its employees, on reasonable use of digital and communication tools, for work related purposes, during travel and teleworkingawareness increasing activities by entities1517 the appropriate government shall, in consultation with the individual entities, provide counseling services to employees to help them maintain work-life balancecounseling for work-life balance degital detox centres18 the appropriate government shall set up digital detox centres and provide digital detox counseling services to citizens for reasonable personal use of digital and communication tools2019 every individual entity shall pay penalty at the rate of one per cent of total employees'remuneration for,—(a) any out-of-work service condition not defined in the charter made under section 9; (b) any out-of-work service condition not defined in the policy for employees working remotely under section 15; andpenalty to be paid by the entity for noncompliance with the provisions of the bill(c) any non-adherance to any of the provisions of this act25annual report and its laying before theparliament20 (1) the authority shall prepare once every year, as may be prescribed, an annual report giving the summary of its activities, including schemes it has undertaken and recommended to the government over the year and it shall contain statements of annual accounts of the authority30(2) a copy of the report shall be forwarded to the central government, and the central government shall lay the report before each house of parliamentcentral government to provide funds21 the central government, shall from time to time after due appropriation made byparliament by law in this behalf, provide requisite funds for carrying out the purposes of this act35power to remove difficulty22 (1) if any difficulty arises in giving effect to the provisions of this act, thecentral government, in consultation with the state governments, may make such order or give such direction, not inconsistent with the provisions of this act, as appears to it to be necessary or expedient for the removal of any difficulty:provided that no order shall be made under this section after the expiry of a period oftwo years from the commencement of this act40(2) every order made under this section shall be laid, as soon as may be after it is made,before each house of parliamentpower to make rules23(1) the cental government, in consultation with the state governments, may benotification in the official gazette, make rules for carrying out the purposes of this act45(2) every rule made 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 may be comprised in one session or in two or more successive sessions, and if, before theexpiry of the session immediately following the session or the successive sessions aforesaid, both houses agree in making any modification in the rule or both the 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, 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 rule5 statement of objects and reasonswith the advent of digital and communication technology, an average worker can work directly from his smart-phone according to the report released by the world economic forum, the proportion of mobile workers who could work from any location, is expected to rise beyond seventy per cent while this has benefits interms of work flexibility, it also carries with it a significant risk of erosion of boundaries between professional and personal life studies have found that if an employee is expected to be available round the clock, they tend to exhibit risks of over-work like sleep deprivation, developing stress and being emotionally exhausted this persistent urge to respond to calls and e-mails (termed as 'telepressure'), constant checking of e-mails throughout the day, and even on weekends and holidays,is reported to have destroyed to work-life balance of employeesaccording to a study, the constant monitoring of work related messages and e-mails, may over tax employees' brains leading to a condition called 'info-obesity' the condition is characterised by stress, burnouts and sleeplessness studies show that when employees are overburdened with work, either their productivity stays constant or even reduces with increase in work hours in the year 2014, a study conducted by the university of stanford found that the output and productivity of employees plateaued off after fifty work hours per week in fact, workers' productivity declined when they were over burdened with sixty work hours per week research depicts that employees who respond to work related calls and mails after 9 pm, had the worst quality of sleep which consequently had a bearing on their productivity the need is to respect the personal space of the employees by recognising their right to disconnect and not respond to their employer's calls, e-mails etc, during out-ofwork hours the need is also to recognise the rights of the employees, it also takes into consideration the competitive needs of the companies and their diverse work cultures flexibility in the right to disconnect rules and leaves it to the individual companies to negotiate terms of service with their employees is need of the hourthe digital transformation has direct impact on conditions in the employment contract, like the time and the place of work hence if an employees agrees to works during out-ofwork hours, overtime pay at the same rate as his wage rate is also necessary to check the surge in unpaid overtime work, brought about by digital transformationcases of lack of consensus between employer and employee during negotiations needs to be addressed in such cases the company is required to explicitly lay out their out-of-work demands from their employees, in the charter, and the employees can either choose to work or enforce their right to disconnect the companies shall be mandated to draft their own policy towards employees working remotely, tele-working and travelling for work the constitution of employees' welfare committees at every company to assist the employees in negotiations with employers is also required provision to ensure that these negotiations are held frequently at regular interval, to keep in line with the dynamic business demands are to be incorporated the present bill impose seeks to sanctions at the rate of one per cent of its total employees' remuneration, on entities (companies or societies) for any non-compliance with the provisions of the bill to rein in the adverse effects of hyperconnectivity on employees' personal life, the bill also provides for counseling services to increase awareness among employees and citizens, on reasonable use of digital and communication tools, for professional and personal useto free an employee from digital distractions and enable him to truly connect with the people around him, the bill provides for digital detox centres the bill thus champions for the rights and welfare of employees, by mandating individual entities to negotiate out-of-hour service conditions with their employees, and upholding the right of employee to disconnect the bill seeks to recognise right to disconnect as a way to reduce stress and ease tension between an employees personal and professional lifehence this billnew delhi;supriya sulenovember 22, 2018 financial memorandumclause 3 of the bill provides for the constitution of employees welfares authorityclause 4 provides for expenditure incurred in conducting meetings of the authority clause 5 provides for the various functions of the authority clause 17 provides for counseling services for maintaining work-life balance clause 18 provide for setting up digital detox centres clause 21 provides for requisite funds for carrying out the functions of this act the bill, therefore, if enacted, will involve expenditure from the consolidated fund of india it is estimated that a sum of a rupees one thousand crore would be involved as recurring expenditure per annuma non-recurring expenditure of rupees one thousand crore is also likely to be involved memorandum regarding delegated legislationclause 23 of the bill empowers the central government to make rules for carrying out the purposes of the bill as the rules will relate to matters of detail only, the delegation of legislative power is of a normal character———— a billto establish an employees' welfare authority to confer the right on every employee to disconnect from work related telephone calls and emails beyond work hours and on holidays and right to refuse to answer calls and emails outside work hours and for all matters connected therewith or incidental thereto————(shrimati supriya sule, mp) | Parliament_bills | 04baa47b-6eb1-57d2-a1ca-d2a9cac1bc5c |
bill no 57 of 2011 the warehousing corporations (amendment) bill, 2011 a billfurther to amend the warehousing corporations act, 1962be it enacted by parliament in the sixty-second year of the republic of india as follows:—1 (1) this act may be called the warehousing corporations (amendment) act, 2011short title and commencement(2) it shall come into force on such date as the central government may, by notificationin the official gazette, appoint58 of 196252 for section 5 of the warehousing corporations act, 1962 (hereinafter referred to as the principal act), the following section shall be substituted, namely:—substitution of new section for section 5 certain shares to be approved securities"5 notwithstanding anything contained in the acts mentioned in this section, the shares of the central warehousing corporation shall be deemed to be included among other securities enumerated in section 20 of the indian trusts act, 1882, and also to be approved securities for the purpose of the insurance act, 1938 and the banking regulation act, 1949"amendment of section 273 in section 27 of the principal act, for sub-section (4), the following sub-section shall be substituted, namely:—5"(4) the bonds and debentures of a state warehousing corporation may be guaranteed by the appropriate government as to the repayment of principal and the payment of interest at such rate as may be fixed by the appropriate government on the recommendation of the board of directors of the state warehousing corporation at the time the bonds or debentures are issued" 4 in section 30 of the principal act, in sub-section (2), the proviso shall be omittedamendment of section 305 in section 31 of the principal act, in sub-section (8), the proviso shall be omittedamendment of section 3110amendment of section 396 in section 39 of the principal act, for the provisos, the following provisos shall be substituted, namely:—15"provided that, in the case of a state warehousing corporation, any sum paid by the state government under any guarantee given in pursuance of sub-section (4)of section 27 shall not be treated as income, profits and gains of the state warehousing corporation, and any interest on the debentures or bonds issued by that corporation out of such sums shall not be treated as expenditure incurred by it:20provided further that in the case of any debenture-holder, such portion of an interest as has been paid out of any such sum advanced by the state government shall be deemed to be his income from interest on securities declared to be income-tax free within the meaning of section 86 of that act or any corresponding provision of law for the time being in force" statement of objects and reasonsthe warehousing corporations act, 1962 was enacted to provide for the incorporation and regulation of corporation for the purpose of warehousing of agricultural produce and certain other commodities as may be notified by the central government and for matters connected therewith the central warehousing corporation established under the said act is a profit earning public sector enterprise under the administrative control of the department of food and public distribution and a mini-ratna public sector enterprise as declared by the department of public enterprises one of the essential criteria for award of mini-ratna status to a central public sector enterprise is that no financial support or contingent liability on the part of the government should be involved in respect of that enterprise and that it should also not depend upon any budgetary support or government guarantee2 the central warehousing corporation has consistently paid dividend to the government of india since 1957-58 the net worth of the corporation has been positive from 2003 onwards the corporation has not taken any loan from the central government it is also not dependent upon budgetary support of the government moreover, the government has so far given no other guarantee to the corporation except for the payment of minimum guaranteed dividend as required under sub-section (1) of section 5 of the warehousing corporations act, 1962 hence, the said section 5 of the act is proposed to be suitably revised with consequential changes in sections 27, 30, 31 and 39 thereof the guarantee referred to in the said sub-section (1) of section 5 would be withdrawn and the central government would be absolved of its responsibility of being guarantor3 the bill seeks to achieve the above objectsk v thomasnew delhi;the 10th august, 2011 financial memorandumclause 2 of the bill seeks to substitute a new section for section 5 of the warehousing corporations act, 1962 so as to do away with the existing provision relating to the shares of the central warehousing corporation being guaranteed by the central government as to the repayment of the principal and the payment of annual dividend hence, the bill does not involve any financial implication the new section does not envisage any expenditure from the consolidated fund of india, either recurring or non-recurring annexure extracts from the warehousing corporations act, 1962(58 of 1962) 5 (1) the shares of the central warehousing corporation shall be guaranteed by the central government as to the repayment of the principal and the payment of the annual dividend at such minimum rate as may be fixed by the central government, by notification published in the official gazette, at the time of the issue of the sharesshares to be guaranteed by central government and to be trusted or approved securities(2) notwithstanding anything contained in the acts mentioned in this sub-section, the shares of the central warehousing corporation shall be deemed to be included among the securities enumerated in section 20 of the indian trusts act, 1882, and also to be approved securities for the purpose of the insurance act, 1938 and the banking companies act, 19492 of 1882 4 of 1938 10 of 1949 27 (1) borrowing powers of warehousing corporation(4) the bonds and debentures of a warehousing corporation may be guaranteed by the appropriate government as to the repayment of principal and the payment of interest at such rate as may be fixed by the appropriate government on the recommendation of the board of directors of the corporation at the time the bonds or debentures are issued 30 (1) disposal of profits1 of 1956(2) after making provision for bad and doubtful debts, depreciation on assets and all other matters which are usually provided for by companies registered and incorporated under the companies act, 1956, a warehousing corporation may, out of its net annual profits, declare a dividend:provided that for so long as the reserve fund is less than the paid-up share capital of the central warehousing corporation and until there has been repaid to the central government such sum, if any, as that government may have paid under a guarantee given in pursuance of sub-section (1) of section 5 or sub-section (4) of section 27, the rate of such dividend, in the case of the central warehousing corporations, shall not exceed the rate granted by the central government under sub-section (1) of section 531 (1) accounts and audit of warehousing corporation(8) notwithstanding anything hereinbefore contained in this section, the comptroller and auditor-general of india may, either of his own motion or on a request received in this behalf from the appropriate government, undertake in respect of a warehousing corporation such audit and at such time as he may consider necessary:provided that where the central government is required to make any payment on account of the guarantee given by it under sub-section (1) of section 5, such audit shall be undertaken by the comptroller and auditor-general of india or any person authorised by him in this behalf 43 of 196139 for the purposes of the income-tax act, 1961, a warehousing corporation shall be deemed to be a company within the meaning of that act and shall be liable to income-tax and super-tax accordingly on its income, profits and gains:provisions relating to income-tax and super-taxprovided that, in the case of the central warehousing corporation, any sum paid by the central government under the guarantee given in pursuance of sub-section (1) of section5 or, in the case of a warehousing corporation, any sum paid by the central or a state government under any guarantee given in pursuance of sub-section (4) of section 27 shall not be treated as income, profits and gains of a warehousing corporation, and any interest on the debentures or bonds issued by that corporation out of such sums shall not be treated as expenditure incurred by it:provided further that in the case of any shareholder or debenture-holder, such portion of a dividend or interest as has been paid out of any such sum advanced by the central government shall be deemed to be his income from interest on securities declared to be income-tax-free within the meaning of section 86 of that act ———— a billfurther to amend the warehousing corporations act, 1962————(prof kv thomas, minister of state for consumer affairs, food and public distribution) | Parliament_bills | 14ef3fcc-7961-571a-920b-4b85c982da6c |
bill no 9 of 2014 the appropriation (railways) vote on account bill, 2014 abillto provide for the withdrawal of certain sums from and out of the consolidated fund of india for the services of a part of the financial year 2014-15 for the purposes of railways be it enacted by parliament in the sixty-fifth year of the republic of india as follows:—short title1 this act may be called the appropriation (railways) vote on account act, 2014withdrawal of rs105851,57,48,000- from and out of the consolidated fund of india for the financial year 2014-15appropriationthe schedule(see sections 2 and 3)123sums not exceedingno of voteservices and purposesvotedchargedby parliamenton thetotalconsolidatedfund rs rs rs1railway board 92,67,00,000 92,67,00,0002miscellaneous expenditure (general)268,81,67,00070,33,0002,69,52,00,0003general superintendence and services on railways 2152,00,02,000 2152,00,02,0004repairs and maintenance of permanent way and works 3396,60,04,00024,14,0003396,84,18,0005repairs and maintenance of motive power 1551,63,03,000 1551,63,03,0006repairs and maintenance of carriages and wagons 3627,59,91,00060,0003627,60,51,0007repairs and maintenance of plant and equipment 2061,40,22,000 2061,40,22,0008operating expenses - rolling stock and equipment 3105,99,00,000 3105,99,00,0009operating expenses - traffic7818,23,16,000 7818,23,16,00010operating expenses - fuel 11243,61,50,0004,59,00011243,66,09,00011staff welfare and amenities 1664,29,06,000 1664,29,06,00012miscellaneous working expenses1760,05,98,00046,24,05,0001806,30,03,00013provident fund, pension and other retirement benefits 9314,20,01,00018,50,0009314,38,51,00014appropriation to funds 14701,10,33,000 14701,10,33,00015dividend to general revenues, repayment of loans takenfrom general revenues and amortization of over-capitalization 3038,84,33,000 3038,84,33,00016assets-acquisition, construction and replacement—other expenditure capital33607,70,00,00034,66,67,00033642,36,67,000railway funds…… 5696,26,67,0001,80,00,0005698,06,67,000railway safety fund 666,00,00,00066,67,000666,66,67,000t o ta l105767,01,93,00084,55,55,000105851,57,48,000 statement of objects and reasonsthis bill is introduced in pursuance of article 114 (1) of the constitution of india, read with article 116 thereof, to provide for the appropriation from and out of the consolidated fund of india of the moneys required to meet the expenditure charged on the consolidated fund of india and the grants made in advance by the lok sabha in respect of the estimated expenditure of the central government on railways, for a part of the financial year 2014-15mallikarjun kharge———— president's recommendation under article 117 of the constitution of india————[copy of letter no 2014-b-400/2, dated 11 february, 2014 from shri mallikarjun kharge, minister of railways to the secretary-general, lok sabha]the president, having been informed of the subject matter of the proposed appropriation bill providing for the withdrawal from and out of the consolidated fund of india of the moneys required to meet the expenditure charged on the fund and the grants made by the lok sabha for a part of the financial year 2014-15, recommends under clauses (1) and (3) of article 117 of the constitution of india, the introduction in and consideration by the lok sabha, of the appropriation bill———— a billto provide for the withdrawal of certain sums from and out of the consolidated fund of india for the services of a part of the financial year 2014-15 for the purposes of railways————(shri mallikarjun kharge, minister of railways)gmgipmrnd—4326ls(s3)—12022014 | Parliament_bills | e47d8f52-ba89-588f-b07a-7fa822c57d98 |
bill no lxvii of 2006 the persons affected by naxalite terrorism (relief and rehabilitation) bill, 2006 a billto provide for the relief, compensation and rehabilitation measures throughemployment and other means for the persons affected by naxalites or maoist terrorism in various parts of the country particularly in orissa, chhattisgarh, jharkhand, andhra pradesh, madhya pradesh, maharashtra, etc and for matters connected therewith and incidental theretobe it enacted by parliament in the fifty-seventh year of the republic of india as follows:—short title, extent and commencementdefinitions2 in this act, unless the context otherwise requires,—(1) "appropriate government" means in the case of a state, the government of that state and in other cases, the central government(2) "prescribed" means prescribed by rules made under this act545 of 1860 2 of 1974 37 of 1967(3) words and expressions used and not defined in this act but defined in the indian penal code, 1860, the code of criminal procedure, 1973 and the unlawful activities (prevention) act, 1967 shall have the meanings respectively assigned to them in those acts103 notwithstanding anything contained in any other law for the time being in force, the dependents of a citizen who loses his life in naxalite or maoist violence shall be given relief by the appropriate government by paying,—compensation to the dependents of persons killed by naxalites(i) an ex-gratia grant in the form of compensation of such amount which shall not be less than five lakh rupees in such manner as may be prescribed; and15(ii) financial assistance at the rate of two thousand rupees per month for such period as may be prescribed explanation— for the purposes of this section "dependents" include spouse, children and aged parents who are dependent on the deceased204 any person who is attacked by naxalite or maoist terrorists but survives the attack and receives severe injuries thereby permanently incapacitating him or seriously injuring him, the appropriate government shall,—(i) bear the entire costs of his medical treatment; and compensation to persons surviving but wounded by naxalite violence(ii) pay an ex-gratia grant as compensation of not less than two lakh rupees in such manner as may be prescribed25compensation for other losses5 (1) where the dwelling unit of any family is destroyed or damaged due to torching or bombing by the naxalites or maoists the appropriate government shall,—(a) provide a dwelling unit to such family in such manner as may be prescribed; and(b) bear the entire cost of repairs of the damaged dwelling unit30(2) where the livestock of a person is eliminated or killed or his standing crop is destroyed by the naxalites, the appropriate government shall pay adequate compensation to the owner of the livestock or the crop, as the case may be, in such manner as may be prescribed35(3) where the business establishment or shop or kiosk or hawking apparatusof a person is destroyed or damaged in naxalite or maoist violence, the appropriate governments shall pay such compensation to the owner as may be prescribedmiscellaneous provisions406 (1) the central government, as soon as may be, in consultation with thegovernments of the states affected by naxalite or maoist violence, shall formulate a national policy for those naxalites who wish to shun violence and return to the mainstream of the nation under the constitution for their rehabilitation through general amnesty and by providing them with employment, assistance for self employment and other means as that government may deem necessary to do so in the national interest45(2) the appropriate government may, if it deems fit, expedient and necessaryto do so, promote village level security system through teams of volunteers for the protection of their village from naxalite or maoist violence and provide thevolunteers with necessary weapons, and ammunition from time to time in such manner as may be prescribed57 the central government shall provide, after due appropriation made by parliamentby law in this behalf, adequate funds to the states affected by naxalite or maoist violence for carrying out the purposes of this actcentral government to provide fundsact to have overriding effect8 the provisions of this act and the rules made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force, but save as aforesaid the provisions of this act shall be in addition to and not in derogation of any other law for the time being in force10power to make rules9 the central government may, by notification in the official gazette, make rules forcarrying out the purposes of this act statement of objects and reasonsmany parts of our country are in the grip of naxalite violence being spearheaded by disgruntled elements mostly youth who identify themselves with different names such as naxalites, peoples war group (pwg), maoists, leninist-maoist, etc the worst affected states are chhattisgarh, jharkhand and parts of andhra pradesh, orissa, maharashtra, bihar, uttar pradesh, madhya pradesh, west bengal, karnataka and tamil nadu, etc the naxalites are killing hundreds of innocent people, policemen, personnel of paramilitary and armed forces, men, women and children every year just to create panic and spread terror houses and shops are being torched or blown up even the thatched huts of the poorest of the poor are not being spared crops too are being destroyed they kidnap innocent people for ransom they attack police stations to loot the weapons and kill the policemen they blow vehicles with mines in naxalite affected areas people do not venture out of their houses in the evening or night time they collect illegal taxes and in many areas they are running parallel governmentsdespite the fact that innocent people are killed or injured in naxalite violence, they are not compensated at all or a meagre sum is given as compensation with much hassles similar is the case of losers of houses, livestock, crops, establishments of business, etc in a democratic country like ours, it is the duty of the state to protect the life and property of its citizens and if the state fails to give the required protection, the affected persons and their dependents should be duly compensated by the statesimilarly, the disgruntled and misguided youth who join these outfits for variety of reasons should be brought back to the mainstream of the nation they should be given amnesty, employment opportunities and other incentives there should be a national policy for these naxalites who too are the citizens of this nationhence this billb j panda financial memorandumclause 3 of the bill provides for the compensation to the dependents of persons killed by naxalites clause 4 provides for compensation to persons surviving but wounded by naxalite violence clause 5 provides for compensation for other losses clause 6 provides for miscellaneous provisions and clause 7 makes it mandatory for the central government to provide funds for carrying out the purposes of this bill the bill, if enacted, will involve expenditure from the consolidated fund of india it is estimated that a sum of rupees five hundred crore may involve as recurring expenditure per annumno non-recurring expenditure is likely to be involved memorandum regarding delegated legislationclause 9 of the bill gives power to the central government to make rules for carrying out the purposes of the bill the rules will relate to matters of details onlythe delegation of legislative power is of normal character————— a billto provide for the relief, compensation and rehabilitation measures through employmentand other means for the persons affected by naxalites or maoist terrorism in variousparts of the country particularly in orissa, chhattisgarh, jharkhand,andhra pradesh, madhya pradesh, maharashtra, etc and for matters connected therewith or incidental thereto————(shri b j panda, mp)mgipmrnd—2222rs(s-1)—11082006 | Parliament_bills | 9fca0ade-6622-5ac4-ac50-763fae1b6033 |
bill no 33 of 2011 the scheduled castes and the scheduled tribes (reservation in posts and services) bill, 2011 by shri arjun meghwal, mp a billto provide for reservation in appointments or posts in civil services for members of the scheduled castes and the scheduled tribes in establishments and for matters connected therewith or incidental thereto be it enacted by parliament in the sixty-second year of the republic of india asfollows:—1 (1) this act may be called the scheduled castes and the scheduled tribes(reservation in posts and services) act, 2011short title, application and commencement5(2) it shall apply to every establishment under the state(3) it shall come into force on such date as the central government may, by notification in the official gazette, appointdefinitions2 in this act, unless the context otherwise requires,—(a) "appointing authority", in relation to a service or post in an establishment, means the authority empowered to make appointment to such service or post;(b) "establishment" means every such establishment owned, established, controlled, managed or financed by the government and includes—(i) a ministry or department or subordinate office or attached office of the government;5(ii) a public sector undertaking or statutory authority constituted under any central act;(iii) a corporation in which not less than fifty-one per cent of the paid-up share capital is held by the government;(iv) a university established by a central act and its affiliated colleges, including medical and engineering colleges and institutions;10(v) a primary or secondary school or any other educational institution; (vi) an industry, trade or business;1 of 1956(vii) a government company as defined under section 617 of the companies act, 1956; and15(viii) an autonomous body, organisation or institution receiving grant or aid from the consolidated fund of india; (c) "government" means the central government;20(d) "group 'a' post" or "group 'b' post" or "group 'c' post" or "group 'd' post"means a post which is classified as such by the president in exercise of the powers conferred by the proviso to article 309 of the constitution or by or under any act of parliament and includes an equivalent post in any establishment;(e) "prescribed" means prescribed by rules made under this act; (f) "promotion by non-selection" means promotion made on the basis of senioritycum-fitness;25(g) "promotion by selection" means promotion made on the basis of merit-cumseniority;(h) "recruitment year" means the calendar year for which the recruitment is made; and30(i) "scheduled castes" and "scheduled tribes" shall have the meanings respectively assigned to them in clauses (24) and (25) of article 366 of the constitution3 (1) the government shall reserve such percentage of posts for members of the scheduled castes and the scheduled tribes for appointment in civil services by direct recruitment and promotion, in such manner, as may be prescribedreservation in appointment by direct recruitment and promotion35(2) the vacancy reserved for members of the scheduled castes or the scheduled tribes under sub-section (1) shall be filled in such manner, as may be prescribed404 in the case of promotion by selection from one group 'a' post to another group 'a'post which carries the scale of pay, the maximum of which is equal to or less than the maximum of the scale of pay of a director in the central secretariat service or equivalent posts in other establishments, the officers belonging to the scheduled castes and the scheduled tribes shall be considered for appointmentinclusion of scheduled castes and scheduled tribes officers in select list in case of promotion within group 'a'5 (1) appointment to an unreserved vacancy shall be open to all eligible persons including a person belonging to the scheduled castes or the scheduled tribes45(2) where such unreserved vacancy is filled by direct recruitment or promotion by a person belonging to the scheduled castes or the scheduled tribes on the basis of merit, then, such person shall be appointed against the unreserved vacancy:unreserved vacancies to be open to members of scheduled castes and scheduled tribesprovided that no such appointment shall be made for promotion by non-selectionrelaxation of age6 (1) the maximum age limit fixed for direct recruitment to a service or post shall beincreased by five years for members of the scheduled castes and the scheduled tribes(2) the maximum age limit fixed for promotion to a post, if any, shall be increased byfive years for members of the scheduled castes and the scheduled tribes5fee concession7 the examination fee or application fee, determined for recruitment to a service orpost through competitive examination or otherwise, may be reduced to such extent for members of the scheduled castes and the scheduled tribes, as may be prescribed10relaxation in qualifications and experience8 (1) any standard of suitability, excluding the essential and desirable qualifications,required for appointment by direct recruitment to a post may be relaxed for members of the scheduled castes and the scheduled tribes, if sufficient number of such candidates possessing requisite standards are not available to fill the vacancies reserved for them:provided that no such appointment shall be made where the candidate is found unfit tohold the post15(2) the experience required for appointment by direct recruitment to a post may berelaxed for members of the scheduled castes and the scheduled tribes, if at any stage of selection, sufficient number of such candidates possessing the requisite experience are not available to fill the vacancies reserved for themreservation in case of promotion209 (1) where a qualifying examination is held to determine fitness of eligible personsfor promotion by non-selection and sufficient number of members of the scheduled castes and the scheduled tribes fulfilling the qualifying standards are not available to fill the vacancies reserved for them, such qualifying standards may be relaxed, consistent with the minimum standards of fitness required for appointment to the post, in the case of members of the scheduled castes and the scheduled tribes25(2) where qualifying examination is held to determine merit of eligible persons forpromotion by selection and sufficient number of members of the scheduled castes and the scheduled tribes fulfilling the qualifying standards are not available to fill the vacancies reserved for them, such qualifying standards may be relaxed, consistent with the minimum standards of merit required for appointment to the posts, in the case of members of the scheduled castes and the scheduled tribes3010 the vacancies reserved for members of the scheduled castes or the scheduledtribes shall respectively be filled by members of the scheduled castes and the scheduled tribes onlyreserved vacancies to be filled by members of scheduled castes and scheduled tribes3511 where posts in an establishment are to be abolished and as a result thereof, theservices of certain persons are required to be either surrendered or terminated, no such surrender or termination shall be made in respect of members of the scheduled castes and the scheduled tribes, if it results in lowering their representation in relation to the percentage of reservation fixed for themabolition of posts not to affect the representation of members of scheduled castes and scheduled tribes liaison officer4012 (1) every establishment shall designate an officer of such rank, as may be prescribed,to function as a liaison officer for the purpose of ensuring that the provisions of this act or the rules made thereunder or any direction or instruction issued by the government regarding reservation are not contravened(2) the liaison officer shall, from time to time, inspect and verify the documents,records and reports with respect to appointments of members of the scheduled castes and the scheduled tribes made by the appointing authority by direct recruitment or promotion(3) where the liaison officer is satisfied that any establishment has contravened the provisions of this act or the rules made thereunder or any direction or instruction issued, he shall submit a report of such contravention to the head of the establishment5(4) on receipt of the report of contravention under sub-section (3), the head of establishment shall take disciplinary action under section 17 against the person responsible for such contravention1013 (1) every appointing authority, or an officer authorised by him in this behalf, shall maintain such documents and records, and furnish every year a report on the appointments of members of the scheduled castes and the scheduled tribes made by direct recruitment and promotion, in such manner and at such time, as may be prescribedmaintenance of documents and records and furnishing of report by appointing authority(2) the appointing authority or any other officer authorised by him shall make availablesuch documents and records for inspection, furnish such information, and render such assistance, to the liaison officer, as may be necessary, to enable him to carry out his functions under this act1514 the government shall, subject to the availability of finance and other resources,develop and organise training programmes to advance the competence of members of the scheduled castes and the scheduled tribes for appointment to services and poststraining programme for scheduled castes and scheduled tribespenalty for making false claim2015 whoever knowingly makes a false claim that he is a member of the scheduled casteor the scheduled tribe, as the case may be, shall be liable to punishment for a term which may extend to three years or with fine which may extend to fifty thousand rupees or with both16 whoever knowingly issues a false scheduled caste or scheduled tribe certificateshall be liable for punishment for a term which may extend to three years or with fine which may extend to fifty thousand rupees or with bothpenalty for issuing false caste certificate2517 where any person responsible for implementing the provisions of this act or therules made thereunder, intentionally contravenes any of the provisions thereof, he shall be liable for disciplinary action under the service rules applicable to such persondisciplinary action for contravention of provisions of act power to issue directions18 the government may, for giving effect to the provisions of this act or the rulesmade thereunder, issue such directions to establishments, as it deems fit30existing office memoranda to continue19 all memoranda issued or purported to have been issued by the government inrelation to reservation of posts in civil services for members of the scheduled castes and the scheduled tribes, immediately before the commencement of this act, shall, in so far as theyrelate to the matters for which provisions have been made in this act and are not inconsistent therewith, be deemed to have been issued under this act as if this act had been in force on the date on which such memoranda were issued35power to make rules20 (1) the central government may, by notification in the official gazette, make rulesto carry out the provisions of this act(2) in particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—(a) the percentage of posts for reservation and the manner of reservation undersub-section (1) of section 3;40(b) the manner of filling vacancies under sub-section (2) of section 3;(c) the extent of reduction in examination fee and application fee undersection 7;(d) the rank of the officer to be designated as the liaison officer under sub-section (1) of section 12;(e) the documents and records to be maintained and the time and manner of furnishing report under sub-section (1) of section 13510(3) every rule made by the central government under this section 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 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 should not be made, the rule shall thereafter have effect only in such modified form 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 reasonsat present, administrative instructions issued by the central government from time to time, provide for reservation in appointments or posts in favour of the persons belonging to the scheduled castes and the scheduled tribes in civil services under the control of the central government these instructions have been issued in pursuance of clauses (4) and (4a) of article 16 and the proviso to article 335 of the constitution which empower the state to make provisions for reservation in appointments or posts in favour of the persons belonging to the scheduled castes and the scheduled tribes2 being sensitive to the need for providing adequate representation for the scheduled castes and the scheduled tribes in civil services under the control of central government and to give statutory backing to the instructions in the matter, it is proposed to bring forward a suitable legislation which will elevate the provisions of the reservation to a statutory right and also instil greater confidence amongst members of the scheduled castes and the scheduled tribes it will go a long way in meeting the constitutional goal of securing justice, liberty and equality for all citizens of the country and in promoting fraternity amongst them all3 in the light of m nagraj case decided by the supreme court in the year of 2006 the reservation in promotion has not been granted by many states of union of india and litigation in this regard has also reached in the complex situation so, it is also urgent need to make a law in this connection and clause 16(4a) of the constitution of india is needed further clarification and that clarification will meet with an enactment4 the bill seeks to achieve the above objectsnew delhi;arjun meghwaljuly 18, 2011 memorandum regarding delegated legislationsub-clause (1) of clause 3 of the bill empowers the central government to prescribe the extent and manner of reservation by direct recruitment and promotion in civil services for the members of the scheduled castes and the scheduled tribes sub-clause (2) thereof empowers the central government to prescribe the manner of filling such vacancy2 clause 7 of the bill empowers the central government to prescribe the extent of fee concession for the members of the scheduled castes and the scheduled tribes3 sub-clause (1) of clause 12 of the bill empowers the central government to prescribe the rank of the officer who may be designated as the liaison officer4 sub-clause (1) of clause 13 of the bill empowers the central government to prescribe the manner of maintaining documents and records, and the manner and time of furnishing report on appointments of the members of the scheduled castes and the scheduled tribes made by direct recruitment and promotion, by the appointing authority5 the matters in respect of which rules may be made or notification may be issued are essentially matters of detail or procedure the delegation of legislative power is, therefore, of a normal character————— a billto provide for reservation in appointments or posts in civil services for members of the scheduled castes and the scheduled tribes in establishments and for matters connected therewith or incidental thereto—————(shri arjun meghwal, mp) | Parliament_bills | c32816b9-8b80-5c97-a970-3dd630308d37 |
bill no 30 of 2013 the national institutes of technology, science education and research (amendment) bill, 2013 a billfurther to amend the national institutes of technology, science education and research act, 2007 be it enacted by parliament in the sixty-fourth year of the republic of india as follows:—short title and commencement1 (1) this act may be called the national institutes of technology, science education and research (second amendment) act, 2013(2) it shall come into force on such date as the central government may, by notification amendment of section 229 of 20072 in section 2 of the national institutes of technology, science education and research act, 2007 (hereinafter referred to as the principal act), for the words "the first schedule and the second schedule", the words "the first schedule, the second schedule and the third schedule" shall be substituted3 in section 3 of the principal act,—amendment of section 3(i) in clause (c), for the words "the first schedule and the second schedule" at both the places where they occur, the words "the first schedule, the second schedule and the third schedule" shall be substituted;5(ii) in clause (d), the words, brackets, figures and letter "or sub-section (1) of section 30a" shall be omitted;(iii) in clauses (g), (k) and (m), for the words "the first schedule and the second schedule" wherever they occur, the words "the first schedule, the second schedule and the third schedule" shall be substituted104 in section 4 of the principal act,—amendment of section 4(a) in sub-section (1), for the words "the first schedule and the second schedule", the words "the first schedule, the second schedule and the third schedule" shall be substituted;(b) after sub-section (1), the following sub-section shall be inserted, namely:—15insertion of new subsection (1a)"(1a) the bengal engineering and science university, shibpur shall be deemed to have been incorporated under this act, and on such incorporation, be called the indian institute of engineering science and technology, shibpur"5 after section 5 of the principal act, the following section shall be inserted, namely:—insertion of new section 5a20"5a on and from the commencement of the national institutes of technology, science education and research (amendment) act, 2013—(a) any reference to the bengal engineering and science university, shibpur in any law, contract or other instrument shall be deemed as a reference to the indian institute of engineering science and technology, shibpur;effect of incorporation of bengal engineering and science university, shibpur25(b) all property, movable and immovable, of or belonging to the bengal engineering and science university, shibpur, shall vest in the indian institute of engineering science and technology, shibpur;(c) all the rights and liabilities of the bengal engineering and science university, shibpur shall be the rights and liabilities of the indian institute of engineering science and technology, shibpur;30 35 40(d) every person (including director, officers and other employees) who is employed in the bengal engineering and science university, shibpur, immediately before the date of commencement of the national institutes of technology, science education and research (amendment) act, 2013, shall, on and after such commencement, become an employee of the indian institute of engineering science and technology, shibpur and shall hold his office or service by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same on the date of the commencement of the national institutes of technology, science education and research (amendment) act, 2013, as if the said act had not been brought into force and shall continue to do so until his employment is terminated or until such tenure, remuneration, terms and conditions are altered by the statutes or ordinances:45provided that the tenure, remuneration, terms and conditions of service of such person shall not be altered to his disadvantage without the previous approval of the central government:provided further that any reference to the chancellor and the vice-chancellor of the bengal engineering and science university, shibpur in any law, instrument or other document made before the commencement of the said act, shall be construed as a reference to the visitor and the director, respectively, of the indian institute of engineering science and technology, shibpur;5(e) vice-chancellor of the bengal engineering and science university, shibpur shall be the director of the indian institute of engineering science and technology, shibpur till such date the central government appoints new director for the indian institute of engineering science and technology, shibpur;10(f) any examination conducted by the bengal engineering and science university, shibpur immediately before the commencement of the national institutes of technology, science education and research (amendment) act, 2013 for admission or award of degrees shall be valid examination and shall be deemed to have been conducted by the indian institute of engineering science and technology, shibpur"6 in section 11a of the principal act,—amendment of section 11a15(a) in the marginal heading for the words "second schedule", the words "second schedule and third schedule" shall be substituted;(b) in the opening portion, for the words "the second schedule", the words "the second schedule and the third schedule" shall be substitutedamendment of section 30207 in section 30 of the principal act, in sub-section (1), after the words "the first schedule", the words "the second schedule and the third schedule" shall be inserted8 section 30a of the principal act shall be omittedomission of section 30aamendment of section 319 in section 31 of the principal act, in sub-section (2), the words, brackets, letters and figures "and clause (j) of sub-section (2) of section 30a" shall be omittedamendment of section 372510 in section 37 of the principal act, after clause (d), the following clauses shall be inserted, namely:—30"(e) the court, the academic council and the executive council of the bengal engineering and science university, shibpur performing functions as such immediately before the commencement of the national institutes of technology, science education and research (amendment) act, 2013 shall continue to function until a board is constituted for the indian institute of engineering science and technology, shibpur under this act, but on and after the constitution of a board under this act, the members of the court, the academic council and the executive council, shall cease to hold office;35xiii of 200440(f) the authorities of the bengal engineering and science university, shibpur, bywhatever names so called, performing functions as such immediately before the commencement of the national institutes of technology, science education and research (amendment) act, 2013 shall continue to function until a new authority is appointed or constituted for performing the same functions under the said act, but on and after such appointment or constitution, the authorities performing the functions under the bengal engineering and science university, shibpur act, 2004 or any statutes or ordinances made thereunder shall cease to hold office;45(g) every senate or any other authorities in the names so called constituted inrelation to every institute before the commencement of the national institutes of technology, science education and research (amendment) act, 2013 shall be deemed to be the senate constituted under the said act until a new senate is constituted under this act for that institute, but on the constitution of a new senate under this act, the members of the senate holding office before such constitution shall cease to hold office;50(h) until the first statutes and the ordinances are made and brought in forceunder the national institutes of technology, science education and research (amendment) act, 2013, the statutes, ordinances and rules made for thebengal engineering and science university, shibpur immediately before the commencement of the said act shall continue to apply to the indian institute of engineering science and technology, shibpur in so far as they are not inconsistent with the provisions of the said act"5power to remove difficulties11 (1) if any difficulty arises in giving effect to the provisions of the national institutesof technology, science education and research (amendment) act, 2013, the central government may, by order published in the official gazette, make such provisions not inconsistent with the provisions of this act, as appear to be necessary or expedient for removing the difficulty:10provided that no such order shall be made after the expiry of two years from the date ofcommencement of this act(2) every order made under this section shall, as soon as may be after it is made, be laidbefore each house of parliamentamendment of schedule1512 after the second schedule of the principal act, the following schedule shall beinserted, namely:— "the third schedule[see sections 3(g), (k)(m), 4(1) and 11a] list of indian institutes of engineering science and technology20sluniversity or societycorresponding instituteno(1)(2)(3)bengal engineering and scienceindian institute of engineering university, shibpurscience and technology, shibpur"repeal and savingsxiii of 20042513 (1) the bengal engineering and science university, shibpur act, 2004 is herebyrepealed10 of 1897(2) the provisions of the general clauses act, 1897 shall apply to the repeal of the said act as if the act referred to in sub-section (1) were a central act(3) notwithstanding such repeal, anything done or any action taken under the repealed act, shall be deemed to have been done or taken under the corresponding provisions of that act, as amended by this act30 statement of objects and reasonsthe national institutes of technology act, 2007 came into force on the 15th august,2007 this act was amended in 2012 and named as the national institutes of technology, science education and research (amendment) act, 2012 the ministry of human resources development in december, 2007 communicated to the state government of west bengal that the government of india decided in principle to upgrade bengal engineering and science university—shibpur, west bengal to indian institute of engieering science and technology—shibpur, west bengal for the aforesaid purposes, it has been felt necessary to bring the bengal engineering and science university—shibpur, west bengal under the national institutes of technology, science education and research act, 2007 by an amending legislation, namely, the national institute of technology, science education and research (amendment) bill, 20132 the national institutes of technology, science education and research(amendment) bill, 2013 inter alia, provides for:—(i) conversion of the bengal engineering and science university—shibpur, west bengal as indian institute of engineering science and technology—shibpur, west bengal, under the national institutes of technology, science education and research act, 2007;(ii) insertion of a sub-section (1a) in section 4 of the national institues of technology, science education and research act, 2007 for deemed incorporation of the indian institute of engineering science and technology—shibpur, west bengal specified in the proposed third schedule;(iii) omission of section 30a of the act so as to establish a common council for all the institutes listed in the first schedule, the second schedule and the proposed third schedule; and(iv) to repeal the bengal engineering and science university, shibpur, west bengal act, 2004 3 the bill seeks to achieve the above objectivesnew delhi;mm pallam rajuthe 18th december, 2012 ———— president's recommendation under article 117 of the constitution of india ————[copy of letter no 33-6/2012-tsiii, dated 19th february, 2013 from shri mmpallam raju, minister of human resource development to the secretary-general, lok sabha]the president, having been informed of the subject matter of the national institutes of technology, science education and research (amendment) bill, 2013, recommends the introduction and consideration of the bill in lok sabha under clauses (1) and (3) of article 117 of the constitution of india financial memorandumthe bill proposes to declare the indian institute of engineering science and technology— shibpur, west bengal as an institution of national importance under the provisions of national institutes of technology, science education and research act, 2007 the substantial assistance of the central government would be provided to the indian institute of engineering science and technology—shibpur, west bengal under plan heads by the department of higher education, ministry of human resource development2 for the current financial year, an amount of one crore rupees has been allocated for setting up of the indian institute of engineering science and technology—shibpur, west bengal an outlay of 59220 crore of rupees [30030 crore of rupees as non-recurring towards capital expenditure and 29190 crore of rupees as recurring expenditure] over a period of five years with the stipulation that sanction of funds would be on incremental basis after assessing the requirement as part of the annual budgetary exercise annexure extracts from the national institutes of technology act, 2007 (29 of 2007) 2 whereas the objects of the institutions mentioned in the first schedule and the second schedule are such as to make them institutions of national importance, it is hereby declared that each such institute is an institution of national importancedeclaration of certain institutions as institutions of national importancedefinitions3 (1) (c) "corresponding institute", in relation to a society mentioned in column (2) of the first schedule and the second schedule, means the institute as specified in column (3) of the first schedule and the second schedule;(d) "council" means the council established under sub-section (1) of section 30 or sub-section (1) of section 30a, as the case may be; (g) "institute" means any of the institutions mentioned in column (3) of the first schedule and the second schedule; (k) "schedule" means the first schedule and the second schedule annexed to the act; 21 of 1860(m) "society" means any of the societies registered under the societies registration act, 1860 and mentioned in column (2) of the first schedule and the second schedule; chapter ii the institutesincorporation of institutes4 (1) each of the institutes mentioned in column (3) of the first schedule and the second schedule shall be a body corporate having perpetual succession and a common seal and shall, by its name, sue and be sued 11a the board of every institute mentioned in the second schedule shall consist of the following members, namely:— board of institutes of second schedule chapter iii the councilestablishment of council30 (1) with effect from such date as the central government may, by notification, specify in this behalf, there shall be established for all the institutes specified in column (3) of the first schedule, a central body to be called the council 30a (1) with effect from such date as the central government may, by notification, specify in this behalf, there shall be established for all the institutes specified in column 3 of the second schedule, a central body to be called the councilestablishment of council for the institutes of second schedule(2) the council under sub-section (1) shall consist of the following members, namely:—(a) the minister in charge of the ministry or department of the central government having administrative control of the technical education, ex officio, chairman;(b) the secretary to the government of india in charge of the ministry or department of the central government having administrative control of the technical education, ex officio, vice-chairman;(c) the chairperson of every board of the institutes mentioned in the second schedule, ex officio;(d) the director of every institute mentioned in the second schedule, ex officio;(e) the chairman, university grants commission, ex officio;(f) the director general, council of scientific and industrial research, ex officio;(g) four secretaries to the government of india to represent the ministries or departments of the central government dealing with bio-technology, atomic energy, information technology and space, ex officio;(h) the chairman, defence research and development organisation, ex officio;(i) not less than three, but not more than five persons to be nominated by the visitor, at least one of whom shall be a woman, having special knowledge or practical experience in respect of education, industry, science or technology;(j) three members of parliament, of whom two shall be chosen by the house of the people and one by the council of states:provided that the office of member of the council shall not disqualify its holder for being chosen as or for being, a member of either house of parliament;(k) two secretaries to the state government, from amongst the ministries or departments of that government dealing with technical education where the institute is located, ex officio;(l) financial advisor, dealing with the human resource development ministry or departments of that government dealing with technical education where the institute is located, ex officio; and(m) one officer not below the rank of the joint secretary to the government of india in the ministry or department of the central government having administrative control of the scientific or technical education, ex officio, member-secretary31(1) (2) the term of office of a member elected under clause (j) of sub-section (2) of section30 and clause (j) of sub-section 2 of section 30a shall expire as soon as he ceases to be member of the house, which elected himterm of office of, vacancies among, and allowances payable to members of council 37 notwithstanding anything contained in this act—transitional provisions ———— a bill further to amend the national institute of technology, science education and research act, 2007————(shri mm pallam raju, minister of human resource development)gmgipmrnd—5128ls—26-2-2013 | Parliament_bills | e61caebe-b372-5fb7-9308-f7843edc7730 |
statement of objects and reasonsnew delhi, the capital of india represents the cultural traditions and diversity of ethnic india in a microcosm in view of the peculiar status of the capital where we have a state government and a more than active involvement of the central government, keeping the city clean and beautiful and preserving its cultural heritage acquires added significance poor people from every nook and comer of the country throng the capital in search of better opportunities and jobs for earning their livelihood poverty forces them to find shelter in slum and jhuggi jhopri clusters at present, delhi has around 1100 slum clusters encroaching around 4000 hectares of land and number of people living in slums are around 35 lacs government has a duty to relocate these slum dwellers suitably not only to enable them to live in clean and hygienic environment but also to save the environment of the adjoining places and reduce the immense pressure on the civic amenities it is also the duty of the government to nip this problem in the bud by ensuring that such slums do not come up in an unauthorised manner at goverment land henceforth slum relocation and rehabilitation of people is the work allocated to the slum and jj department of municipal corporation of delhi officials of government agencies like municipal corporation of delhi, new delhi municipal council, delhi development authority, delhi vidyut board and other civic bodies who are responsible for the management and upkeep of their land should be held accountable for any encroachment and strict punitive measures should be taken against them after fixing responsibility there should not be any dearth of funds for development of delhi members of parliament should be actively involved in all round development of delhi new delhi; sahib singh verma april 3, 2000 financial memorandumclause 4 of the bill provides that the central government shall provide alternate houses with all basic facilities to those who are living in slum areas the bill, if enacted, will involve expenditure from the consolidated fund of india clause 10 provides that the central government shall provide adequate funds for completion of plans and projects it is estimated that a sum of rupees four hundred crore will be involved as a recurring expenditure per annum memorandum regarding delegated legislationclause 11 of the bill empowers the central government to make rules for carrying out the purposes of this bill as the rules will relate to matters of detail only, the delegation of legislative power is of a normal character | Parliament_bills | 6c9c2fb0-a431-5dfd-961d-ea651670fee7 |
bill no lxi of 2013 the judicial appointments commission bill, 2013 a billto provide for the composition of the judicial appointments commission for the purpose of recommending persons for appointment as chief justice of india and other judges of the supreme court, chief justices and other judges of high courts, its functions, procedure to be followed by it and for matters connected therewith or incidental thereto be it enacted by parliament in the sixty-fourth year of the republic of india as follows:—1 (1) this act may be called the judicial appointments commission act, 2013short title and commencement(2) it shall come into force on such date as the central government may, bynotification in the official gazette, appointdefinitions2 in this act, unless the context otherwise requires,—(a) "chairperson" means the chairperson of the judicial appointments commission referred to in clause (a) of sub-section (1) of section 3;(b) "commission" means the judicial appointments commission referred to in sub-section (1) of section 3;(c) "member" means a member of the commission and includes its chairperson;5(d) "prescribed" means prescribed by the rules made under this act; (e) "regulations" means the regulations made by the commission under this act 3 (1) the judicial appointments commission, referred to in clause (1) of article124a of the constitution, shall consist of—constitution of judicial appointments commission10(a) the chief justice of india, chairperson, ex officio;(b) two other judges of the supreme court next to the chief justice of india in seniority—members, ex officio;(c) the union minister in charge of law and justice—member, ex officio;15(d) two eminent persons, to be nominated by the collegium consisting of the prime minister, the chief justice of india and the leader of opposition in the house of the people—members:provided that the eminent persons shall be nominated for a period of three years and shall not be eligible for re-nomination20(2) the secretary to the government of india in the department of justice shall be the convener of the commission(3) the fee and allowances payable to the eminent persons shall be such as may be prescribed4 it shall be the duty of the commission,—functions of commission25(a) to recommend persons for appointment as chief justice of india, judges of the supreme court, chief justices of high courts and other judges of high courts;(b) to recommend transfer of chief justices of high courts and the judges of high courts from one high court to any other high court; and30(c) to ensure that the person recommended is of ability, integrity and standing in the legal profession 5 in case of appointment of judge of a high court, the views of the governor and the chief minister of the concerned state as also of the chief justice of high court shall be elicited in writing in accordance with the procedure as may be specified by regulations made by the commissionprocedure for recommendation with respect to appointment of high court judges35officers and employees of commission6 (1) the central government may appoint such number of officers and other employees as it may consider necessary for the discharge of functions of the commission under this act(2) the terms and other conditions of service of the officers and other employees of the commission appointed under sub-section (1) shall be such as may be prescribed407 (1) the central government shall, within a period of three months from the date of coming into force of this act, intimate the vacancies existing in the supreme court and a high court to the commission for making of its recommendationsreference to commission for filling up of vacancies45(2) the central government shall, two months prior to the date of occurrence of any vacancy by reason of completion of the term of judge of the supreme court and a high court, make a reference to the commission for filling up the vacancies(3) the central government shall, within a period of two months from the date of occurrence of any vacancy by reason of death, resignation of the judge of the supreme court and a high court, make a reference to the commission for filling up the vacancies5procedure forshort-listing of candidates8 (1) the convenor of the commission shall initiate the process for selectionby inviting recommendations from the chief justices of high courts, the central government and the state governments in respect of candidates fulfilling the eligibility criteria(2) the commission may, by regulations, specify the procedure for short-listing of candidates for considering their appointment as judges to the supreme court10(3) the commission may, by regulations, specify the procedure for short-listing of candidates for considering their appointment as judges to the high court| meetings | of ||-------------|------|| commission | || 9 | ( || decide | |15(2) the commission shall have the power to specify, by regulations, theprocedure for the discharge of its functions under the act10 no act or proceedings of the commission shall be questioned or shall be invalidated merely on the ground of existence of any vacancy in, or defect in the constitution of, the commissionvacancies, etc, not to invalidate proceedings of commission20power to make rules11 (1) the central government may, by notification in the official gazette,make rules to carry out the provisions of this act(2) in particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—(a) the fee and allowances payable to the eminent persons under subsection (3) of section 3;25(b) the terms and other conditions of service of officers and otheremployees of the commission under sub-section (2) of section 6;(c) any other matter which is to be or may be prescribed, in respect ofwhich provision is to be made by the rules30power to make regulations12 (1) the commission may, by notification in the official gazette, makeregulations consistent with this act and the rules made thereunder to carry out the provisions of this act(2) in particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:—35(a) the procedure for recommendation with respect to appointment ofjudge of a high court under section 5;(b) the procedure for short-listing of candidates for consideringtheir appointment as judges of the supreme court under sub-section (2) ofsection 8;40(c) the procedure for short-listing of candidates for considering theirappointment as judges of the high court under sub-section (3) of section 8;(d) the procedure to be followed by the commission in discharging of itsfunctions under sub-section (2) of section 9;(e) any other matter which is required to be, or may be, specified byregulations or in respect of which provision is to be made by regulationsrules and regulations to be laid before parliament513 every rule and regulation made 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 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 regulation or both houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form 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 or regulation10power to remove difficulties1514 (1) if any difficulty arises in giving effect to the provisions of this act, the central government may, after consultation with the commission, by an order published in the official gazette, make such provisions, not inconsistent with the provisions of this act as appear to it to be necessary or expedient for removing the difficulty:provided that no such order shall be made after the expiry of a period of three years from the date of commencement of this act(2) every order made under this section shall, as soon as may be after it is made, be laid before each house of parliament statement of objects and reasonsthe judges of the supreme court are appointed by the president under clause (2) of article 124 of the constitution while the judges of the high courts are appointed by the president under clause (1) of article 217 of the constitution the president is required to hold consultation with such of the judges of the supreme court and of the high courts in the states as he may deem necessary for the purpose however, every judge of a high court shall be appointed by the president after consultation with the chief justice of india, the governor of the state and, in the case of appointment of a judge other than the chief justice, the chief justice of the high court2 the transfer of judges from one high court to another high court is made by the president after consultations with the chief justice of india under clause (1) of article 222 of the constitution3 as regards the appointment of judges of supreme court and high courts, the supreme court in the matters of the supreme court advocates-on-record association vs union of india and its advisory opinion 1998 in third judges case, had interpreted articles 124(2) and 217(1) of the constitution with respect to the meaning of "consultation" as "concurrence" it was also held that the consultation of the chief justice of india means collegium consisting of chief justice and two or four judges, as the case may be this has resulted in a memorandum of procedure laying down the process which is being presently followed for appointment of judges to both the high courts and the supreme court the memorandum of procedures confers upon the judiciary itself the power for appointment of judges4 after review of the pronouncements of the supreme court and relevant constitutional provisions, it was felt that a broad based judicial appointment commission could be established for making recommendations for selection of judges it would provide a meaningful role to the executive and judiciary to present their view points and make the participants accountable while introducing transparency in the selection process5 thus, the judicial appointments commission bill, 2013 seeks to broad base the appointment process and make it more participatory to ensure greater transparency and objectivity in the appointments to higher judiciary6 the proposed bill provides for the constitution of the judicial appointments commission, comprising of —(a) the chief justice of india, an ex officio chairperson; (b) two other judges of the supreme court next to the chief justice of india in seniority as ex officio members; (c) the union minister in charge of law and justice as ex officio member; and (d) two eminent persons, to be nominated by the collegium consisting of the prime minister, the chief justice of india and the leader of opposition in the house of the people, as members7 the proposed bill would enable equal participation of judiciary and executive, make the system of appointments more accountable, and thereby increase the confidence of the public in the institutions8 the bill seeks to achieve the above objectives new delhi;kapil sibalthe 24th august, 2013 financial memorandumsub-clause (1) of clause 3 of the bill provides for establishment of the judicial appointments commission, referred to in clause (1) of article 124a of the constitution, comprising —(a) the chief justice of india an ex officio chairperson; (b) two other judges of the supreme court next to the chief justice of india in seniority as ex officio members; (c) the union minister in charge of law and justice as ex officio member; and (d) two eminent persons to be nominated by the collegium consisting of prime minister, chief justice of india and the leader of opposition in the lok sabhasub-clause (2) of clause 3 provides that secretary to the government of india in the department of justice be the convener of the commissionsub-clause (3) of clause 3 provides that the fee and allowances payable to eminent person shall be such as may be prescribedsub-clause (1) of clause 6 provides that the central government may appoint such number of officers and other employees as it may consider necessary for the discharge of functions of the commission under this actthe expenditure on account of the aforesaid provisions would be negligible at this stage, it is not practicable to make an estimate of expenditure likely to be involved in the financial year 2013-2014, both recurring and non-recurring however, the expenditure would be met from the consolidated fund of india memorandum regarding delegated legislationclause 11 of the bill confers power upon the central government to make rules for carrying out the provisions of the bill the matters in respect of which rules may be made are—(a) the fee and allowances payable to the eminent persons under sub-section (3) of section 3; (b) the terms and other conditions of service of officers and other employees of the commission under sub-section (2) of section 6; and (c) any other matter which is to be or may be prescribed, in respect of which provision is to be made by the rules2 clause 12 of the bill confers power upon the judicial appointments commission to make regulations consistent with the act and the rules made thereunder to carry out the provisions of the act the matters in respect of which, regulations may be made are matters relates to—(a) the procedure for recommendation with respect to appointment of judge of a high court under section 5; (b) the procedure for short-listing of candidates for considering their appointment as judges of the supreme court under sub-section (2) of section 8; (c) the procedure for short-listing of candidates for considering their appointment as judges of the high court under sub-section (3) of section 8; (d) the procedure to be followed by the commission in discharging of its functions under sub-section (2) of section 9; and (e) any other matter which is required to be, or may be, specified by regulations or in respect of which provision is to be made by regulations3 the rules made by the central government and the regulations made by the commission shall be laid as soon as may be after they are made before each house of parliament4 the matters in respect of which the rules and regulations may be made are generally matters of procedure and administrative detail and it is not practicable to provide them in the bill itself the delegation of legislative power is, therefore, of a normal character———— a billto provide for the composition of the judicial appointments commission for the purpose of recommending persons for appointment as chief justice of india and other judges of the supreme court, chief justices and other judges of high courts, its functions, procedure to be followed by it and for matters connected therewith or incidental thereto————(shri kapil sibal, minister of law and justice) | Parliament_bills | 3f15996b-b0aa-54a5-8a44-4b43e2fd2fe4 |
financial memorandumclause 4 of the bill provides for the constitution of a river water regulatory a 10r clause 5 provides that the central government shall appoint the chairperson and 0 members of the authority clause 6 provides for the appointment of officers and staff f efficient functioning of the authority clause 8 provides for allocation of resources to st for implementing water harvesting policies framed by the authority the bill, therefor enacted, is likely to involve expenditure from the consolidated fund of india itise _ that a recurring expenditure of rupees two hundred crore is likely to be involved pe: a non-recurring expenditure of rupees fifty crore is also likely to be involved memorandum regarding delegated legislationclause 9 of the bill empowers the central government to make rules for carrying out - the purpose of the bill as the rules will relate to matters of detail only, the delegation of legislative power is of a normal character | Parliament_bills | 88a7c3c6-c586-5fc9-ae48-cd8b34817dd8 |
bill no 22 of 2008 the representation of the people (amendment) bill, 2008 a billfurther to amend the representation of the people act, 1950be it enacted by parliament in the fifty-ninth year of the republic of india as follows:—1 (1) this act may be called the representation of the people (amendment) act, 2008short title and commencement(2) it shall come into force on such date as the central government may, by notification in the official gazette, appointamendment of section 443 of 19502 in section 4 of the representation of the people act, 1950 (hereinafter referred to as the principal act), for sub-section (5), the following sub-section shall be substituted, namely:—33 of 2002"(5) save as provided in sub-section (4), the extent of all parliamentary constituencies except the parliamentary constituencies in the states of arunachal pradesh, assam, jharkhand, manipur and nagaland shall be as determined by the orders of the delimitation commission made under the provisions of the delimitation act, 2002 and the extent of the parliamentary constituencies in the states of arunachal pradesh, assam, jharkhand, manipur and nagaland shall be as provided for in the delimitation of parliamentary and assembly constituencies order, 2008 having regard to the provisions of sections 10a and 10b of the delimitation act, 2002" 3 in section 7 of the principal act,—amendment of section 7(i) in sub-section (ib), in clause (a), for the words "thirty-nine seats", the words"fifty-nine seats" shall be substituted;(ii) for sub-section (3), the following sub-section shall be substituted, namely:—33 of 2002"(3) the extent of each assembly constituency in all the states and union territories except the assembly constituencies in the states of arunachal pradesh, assam, jharkhand, manipur and nagaland shall be as determined by the orders of the delimitation commission made under the provisions of the delimitation act, 2002 and the extent of each assembly constituency in the states of arunachal pradesh, assam, jharkhand, manipur and nagaland shall be as provided for in the delimitation of parliamentary and assembly constituencies order, 2008 having regard to the provisions of sections 10a and 10b of the delimitation act, 2002"4 in section 8 of the principal act,—amendment of section 8(i) for sub-section (1), the following sub-section shall be substituted, namely:—"(1) having regard to all the orders referred to in sub-section (5) of section4 and sub-section (3) of section 7 relating to the delimination of parliamentary and assembly constituencies in all states and union territories, except the state of arunachal pradesh, assam, jharkhand, manipur and nagaland, made by the delimitation commission and published in the official gazette, the election commission shall—(a) after making such amendments as appear to it to be necessary for bringing up-to-date the description of the extent of the parliamentary and assembly constituencies as given in such orders, without, however, altering the extent of any such constituency;33 of 2002(b) after taking into account the provisions of the delimitation of parliamentary and assembly constituencies order, 1976, as made applicable pursuant to the orders made by the president under section 10a of the delimitation act, 2002 relating to delimitation of parliamentary and assembly constituencies in the states of arunachal pradesh, assam, manipur and nagaland, and the provisions of section 10b of the said act relating to delimitation of parliamentary and assembly constituencies in the state of jharkhand, consolidate all such orders into one single order to be known as the delimitation of parliamentary and assembly constituencies order, 2008 and shall send authentic copies of that order to the central government and to the government of each state having a legislative assembly; and thereupon that order shall supersede all the orders referred to in sub-section (5) of section 4 and subsection (3) of section 7 and shall have the force of law and shall not be called in question in any court";76 of 1972 33 of 2002(ii) in sub-section (3), for the words, brackets and figures "as provided in subsection (5) of section 10 of the delimitation act, 1972", the words, brackets and figures "as provided in sub-section (5) of section 10 of the delimitation act, 2002" shall be substituted 5 after section 8 of the principal act, the following section shall be inserted, namely:—insertion of new section 8a33 of 2002"8a (1) if the president is satisfied that the situation and the conditions prevailing in the states of arunachal pradesh, assam, manipur and nagaland are conducive for the conduct of delimitation exercise, he may, by order, rescind the deferment order issued under the provisions of section 10a of the delimitation act, 2002 in relation to that state, and provide for the conduct of delimitation exercise in the state by the election commissionpradesh, assam, manipur and nagaland(2) as soon as may be after the deferment order in respect of a state is rescinded under sub-section (1), the election commission may, by order, determine—(a) the parliamentary constituencies into which such state to which more than one seat is allotted in the first schedule shall be divided;(b) the extent of each constituency; and (c) the number of seats, if any, reserved for the scheduled castes or the scheduled tribes (3) as soon as may be after the deferment order in respect of a state is rescinded under sub-section (1), the election commission may, by order, determine—(a) the assembly constituencies into which such state shall be divided for the purpose of elections to the legislative assembly of that state;(b) the extent of each constituency; and (c) the number of seats, if any, reserved for the scheduled castes or the scheduled tribes33 of 2002(4) subject to the provisions of sub-section (1), the election commission shall, having regard to the provisions of the constitution and the principles specified in clauses (c) and (d) of sub-section (1) of section 9 of the delimitation act, 2002 determine the parliamentary and assembly constituencies in the states of arunachal pradesh, assam, manipur and nagaland in which seats shall be reserved, if any, for the scheduled castes and the scheduled tribes(5) the election commission shall,—(a) publish its proposals under sub-sections (2), (3) and (4) with respect to any state in the official gazette and also in such other manner as it thinks fit;(b) specify a date on or after which the proposals will be further considered by it;(c) consider all objections and suggestions which may have been received by it before the date so specified;(d) hold, for the purpose of such consideration, if it thinks fit so to do, one or more public sittings at such place or places in such state as it thinks fit;(e) after considering all objections and suggestions which may have been received by it before the date so specified, determine, by order, the delimitation of parliamentary and assembly constituencies in the state and also the constituency or constituencies in which seats shall be reserved, if any, for the scheduled castes and the scheduled tribes and cause such order to be published in the official gazette; and, upon such publication, the order shall have the force of law and shall not be called in question in any court and the delimitation of parliamentary and assembly constituencies order, 2008 shall be deemed to have been amended accordingly (6) every order made under sub-sections (1) and (2) and clause (e) of subsection (5) shall be laid before each house of parliament(7) every order made under sub-sections (1) and (3) and clause (e) of subsection (5) shall, as soon as may be after it is published under that sub-section, be laid before the legislative assembly of the state concerned6 in section 9 of the principal act, in sub-section (1), for clauses (a) and (aa), the following clauses shall be substituted, namely:—''(a) correct any printing mistake in the delimitation of parliamentary and assembly constituencies order, 2008 or any error arising therein from inadvertent slip or omission;(aa) make such amendments in the delimitation of parliamentary and assembly constituencies order, 2008 as appear to it to be necessary or expedient for consolidating with that order any notification or order relating to delimitation of parliamentary or assembly constituencies (including reservation of seats for the scheduled castes or the scheduled tribes in such constituencies) issued under section 8a of this act or any other central act;" 7 section 9a and section 9b of the principal act shall be omittedomission of sections 9a and 9b8 for the first schedule and the second schedule of the principal act, the following schedules shall be substituted, namely:—substitution of new schedules for the first schedule and the second schedule "the first schedule (see section 3) allocation of seats in the house of the peoplename of the state/union territorynumber of seats in the house as subsequently constituted as per the delimitation ofparliamentary andassembly constituencies order, 2008number of seats in the house as constituted in 2004 on the basis of the delimitation ofparliamentary and assemblyconstituencies order, 1976 as amended from time to timesl nototalreservedreservedtotalreservedreservedfor thefor thefor thefor thescheduledscheduledscheduled scheduledcastestribescastestribes1234567i states:1andhra pradesh426242732arunachal pradesh223assam141214124bihar4074065chhattisgarh112411146goa227gujarat262426248haryana1021029himachal pradesh414110jammu and kashmir6611jharkhand1415141512karnataka284285213kerala20220214madhya pradesh2945294615maharashtra4834485416manipur212117meghalaya22218mizoram111119nagaland1120orissa2135213521punjab13313422rajasthan2543254323sikkim1124tamil nadu39739725tripura212126uttarakhand55127uttar pradesh8018801728west bengal428242102| 1 | 2 | 3 | 4 | 5 | 6 | 7 ||------------------------|------------------------|-----|-----|-----|-----|-----|| ii union territories: | | | | | | || 1 | andaman and nicobar | | | | | || islands | 1 | | | 1 | | || 2 | chandigarh | 1 | | | 1 | || 3 | dadra and nagar haveli | 1 | | 1 | 1 | || 4 | delhi | 7 | 1 | | 7 | 1 || 5 | daman and diu | 1 | | | 1 | || 6 | lakshadweep | 1 | | 1 | 1 | || 7 | puducherry | 1 | | | 1 | || total | | | | | | | the second schedule (see section 7 and 7a)total number of seats in the legislative assembliesname of the state/ union territorynumber of seats in the house as constituted on the basis of the delimitation of parliamentary and assembly constituencies order, 1976 as amended from time to timenumber of seats in the house as subsequently constituted as per the delimitation ofparliamentary andassembly constituencies order, 2008totalreservedreservedtotalreservedreservedfor thefor thefor thefor thescheduledscheduledscheduled scheduledcastestribescastestribes1234567i states:1andhra pradesh294391529448192arunachal pradesh605960593assam1268161268164bihar243392433825chhattisgarh9010349010296goa4014017gujarat182132618213278haryana901790179himachal pradesh681636817310jammu and kashmir76611jharkhand819288192812karnataka224332224361513kerala14013114014214madhya pradesh2303441230354715maharashtra2881822288292516manipur601196011917meghalaya6055605518mizoram4039403819nagaland6059605920orissa1472234147243321punjab117291173422rajasthan2003324200342523sikkim322123221224tamil nadu23442323444225tripura6072060102026uttarakhand701237013227uttar pradesh403894038528west bengal29459172946816ii union territories:1delhi701370122puducherry305305under the constitution of jammu and kashmir, the number of seats in the legislative assembly of that state excluding the 24 seats earmarked for pakistan occupied territory is 87 out of which 7 seats have been reserved for the scheduled castes in pursuance of the jammu and kashmir representation of the people statement of objects and reasonsunder the provisions of articles 82 and 170(3) of the constitution, as amended by the constitution (eighty-fourth amendment) act, 2001, parliament enacted the delimitation act,2002 in terms of the provisions contained in the delimitation act, the delimitation commission was set up to readjust the division of each state and union territory into territorial constituencies for the purpose of elections to the house of the people and to the state legislative assemblies on the basis of 2001 census2 the delimitation commission has since completed the delimitation work in respect of 25 states/union territories and accordingly issued final orders under sections 8 and 9 of the delimitation act recently, the delimitation (amendment) ordinance, 2008 (ordinance 1of 2008) was promulgated on 14th january, 2008 to insert new sections 10a and 10b in the delimitation act section 10a of the delimitation act empowers the president to defer delimitation exercise in a state in certain cases in view of the prevailing conditions in north- east states of arunachal pradesh, assam, manipur and nagaland, four orders to defer the delimitation exercise in these states have been issued by the president on 8th february, 2008 section 10b of the delimitation act has nullified the delimitation commission's orders issued with respect to the states of jharkhand3 in view of above, in the states of arunachal pradesh, assam, manipur, nagaland and jharkhand, the delimitation of parliamentary and assembly constituencies order, 1976 will continue to apply the final orders in respect of the remaining 24 states/union territories (except the state of jharkhand) were required to be brought into force as provided in the second proviso to article 82 and the second proviso to clause (3) of article 170 of the constitution by specifying the date by the president, as to when the re-adjustments shall take effect in pursuance of the above provisions, the presidential order has been issued on19th february, 2008 making delimitation orders issued by the delimitation commission under the delimitation act, effective from immediate effect in all the 22 states/union territories except in the states of tripura and meghalaya in which case, the delimitation order shall take effect from 20th march, 2008 after the elections to the legislative assemblies in these states are over on 19th march, 20084 the representation of the people act, 1950 (43 of 1950) (the rp act) provides for the allocation of seats in and the delimitation of constituencies for the purpose of election to, the house of the people and the legislatures of the states, preparation of electoral rolls, etc, and for matters connected therewith the first schedule and the second schedule to the said act provides for allocation of seats in the house of the people and the total number of seats in the legislative assemblies alongwith the number of seats reserved for the scheduled castes and the scheduled tribes therein with the issuance of the presidential order specifying the date on which the delimitation orders notified by the delimitation commission shall take effect, it is necessary to amend the relevant provisions and the first and the second schedule of the rp act to reflect the changes made by the delimitation orders notified by the delimitation commission5 in the bill, it is also proposed to insert new section 8a in the rp act, which will enable the election commission to conduct delimitation exercise in the north-east states (where delimitation exercise had been deferred in the exigencies of the prevailing conditions), as soon as the conditions in these states become conducive to the conduct of delimitation work sections 8 and 9 of the rp act are proposed to be amended to enable the election commission to consolidate the delimitation orders issued by the delimitation commission into a single order by superceding the existing delimitation of parliamentary and assembly constituencies order, 1976 having regard to sections 10a and 10b of the delimitation act, 20026 the bill seeks to achieve the above said objectiveshans raj bhardwajnew delhi;the 28th february, 2008 memorandum regarding delegated legislationclause 4 (i) of the bill provides for substitution of sub-section (1) of section 8 of the representation of the people act, 1950 which empowers the election commission to consolidate all orders relating to delimitation of parliamentary and assembly constituencies into one single order to be known as the delimitation of parliamentary and assembly constituencies order, 2008, and to maintain them up-to-date2 caluse 5 of the bill provides for insertion of new section 8a in the said act subsection (1) of section 8 a empowers the central government to assess the situation in the north-east states, namely, arunachal pradesh, assam, manipur and nagaland as to whether the conditions prevailing there are conducive for the conduct of delimitation exercise and enable the government to take follow-up action, if necessary, by advising the president to rescind the deferment orders issued in respect of such states section 8a further empowers the election commission to undertake the delimitation exercise in the states where it was deferred, once the deferment order is rescinded by the president3 clause 6 of the bill provides for substitution of clauses (a) and (aa) of sub-section (1)of section 9 which empowers the election commission to make correction of any error of printing mistake in the delimitation of parliamentary and assembly constituencies order, 2008 or make such amendments which appear it to be necessary or expedient for consolidating with the delimitation orders and notifications4 the orders made under the bill is also required to be laid before each house of parliament the delegation of legislative powers is, therefore, of a normal character annexure extracts from the representation of the people act, 1950(43 of 1950)| | | | | | | ||------------------|----|-----|-----|-----|-----|-----|| 4 | | (1) | | | | || filling of seats | | | | | | || in the house of | | | | | | || the people and | | | | | | || parliamentary | | | | | | || constituencies | | | | | | || 76 of 1972 | | | | | | || 20 of 1963 | | | | | | |(5) save as provided in sub-section (4), the extent of all parliamentary constituencies except the parliamentary constituencies in the union territory of arunachal pradesh shall be as determined by the orders of the delimitation commission made under the provisions of the delimitation act, 1972 and the extent of the parliamentary constituencies in the union territory of arunachal pradesh shall be as determined by the order of the election commission under the provisions of the government of union territories act 1963| | | | | | | | ||-----------------|----|----|-----|-----|-----|-----|-----|| 7 | ( | 1 | ) | | | | || total number | | | | | | | || of seats in | | | | | | | || legislative | | | | | | | || assemblies | | | | | | | || and assembly | | | | | | | || constituencies | | | | | | | | (1b) notwithstanding anything contained in sub-section (1), in the legislative assemblies of the states of arunachal pradesh, meghalaya, mizoram and nagaland, to be constituted at any time after the commencement of representation of the people (third amendment) act, 1987 (40 of 1987),—(a) thirty-nine seats shall be reserved for the scheduled tribes in the legislative assembly of the state of arunachal pradesh;| ||-------------|| 76 of 1972 || 8 of 1980 || 20 of 1963 |(3) the extent of each assemly constituency in all the states and union territories except the assembly constituencies in the state of sikkim and in the union territory of arunachal pradesh shall be as determined by the orders of the delimitation commission made under the provisions of the delimitation act, 1972 the extent of each assembly constituency in the state of sikkim shall be as provided for in the delimination of parliamentary and assembly constituencies order, 1976, as amended by section 4 of the representation of the people (amendment) act, 1980 and the extent of each assemly constituency in the union territory of arunachal pradesh shall be as determined by the order of the election commission made under the provisions of the government of union territories act, 1963| ||-----------------|| consolidation || of delimitation || orders |8 (1) as soon as may be, after all the orders referred to in sub-section (5) of section 4or in sub-section (3) of section 7 relating to the delimitation of parliamentary and assembly constituencies have been made by the delimitation commission or, as the case may be, the election commission and published the official gazette, the election commission shall, after making such amendments as appear to it to be necessary for bringing up-to-date the description of the extent of the parliamentary and assembly constituencies as given in such orders, consolidate all such orders into one single order to be known as 1[the delimitation of parliamentary and assembly constituencies order, 1976] and shall send authentic copies of that order to the central government and to the government of each state having a legislative assembly; and thereupon that order shall supersede all the orders referred to in sub-section (5) of section 4 or in sub-section (3) of section 7 and shall have the force of law and shall not be called in question in any court 76 of 1972(3) the consolidation under sub-section (1) of the orders referred to in sub-section (5)of section 4, or as the case may be, sub-section (3) of section 7 shall not, as provided in subsection (5) of section 10 of the delimitation act, 1972, affect the representation in, and the territorial constituencies of, the house of the people or the legislative assembly of the state existing on the date of publication in the gazette of india of any such order or orders as may be relevant9 (1) the election commission may from time to time, by notification published in the gazette of india and in the official gazette of the state concerned,—| power | of ||---------------------------------------------------------------------------------------|----------|| e l e c t i o n | || commission | || to | maintain || delimitation | || order up-to- | || date | || ( | a || constituencies order, 1966, or, as the case may be, the delimitation of parliamentary | || and assembly constituencies order, 1976 or any error arising therein from inadvertent | || slip or omission; | |(aa) make such amendments in the delimitation of parliamentary and assembly constituencies order, 1976 as appear to it to be necessary or expedient for consolidating with that order any notification or order relating to delimitation of parliamentary or assembly constituencies (including reservation of seats for the scheduled castes or the scheduled tribes in such constituencies) issued under any central act; 38 of 198776 of 19729a (1) as soon as may be after the coming into force of the representation of the people (second amendment) act, 1987, the election commission shall, having regard to the provisions of the constitution and the principle specified in clause (d) of sub-section (1) of section 9 of the delimitation act, 1972, determine the assembly constituencies in the states of meghalaya, mizoram and nagaland in which seats shall be reserved for the scheduled tribes| power | of ||-----------------|------|| e l e c t i o n | || commission to | || determine the | || constituencies | || to be reserved | || for scheduled | || tribes | in || certain states | |(2) the election commission shall,—(a) publish its proposals under sub-section (1) with respect to any state in the official gazette and also in such other manner as it thinks fit;(b) specify a date on or after which the proposals will be further considered by it; (c) consider all objections and suggestions which may have been received by it before the date so specified;(d) hold, for the purpose of such consideration, if it thinks fit so to do, one or more public sittings at such place or places in such state as it thinks fit;(e) after considering all objections and suggestions which may have been received by it before the date so specified, determine, by order, the assembly constituency or constituencies in the state in which seats shall be reserved for the scheduled tribes and cause such order to be published in the official gazette; and, upon such publication, the order shall have the full force of law and shall not be called in question in any court and the delimitation of parliamentary and assembly constituencies order, 1976, or, as the case may be, the mizoram (delimitation of assembly constituencies) order, 1986 shall be deemed to have been amended accordingly (3) every order made under sub-section (2) shall, as soon as may be after it is published under that sub-section, be laid before the legislative assembly of the state concernedexplanation—for the purposes of this section "assembly constituency"means,—(a) in relation to the states of meghalaya and nagaland, the assembly constituencies in those states as specified in the delimitation of parliamentary and assembly constituencies order, 1976; and(b) in relation to the state of mizoram, the assembly constituencies as specified in the mizoram (delimitation of assembly constituencies) order, 198638 of 1992 76 of 19729b (1) as soon as may be after the coming into force of the representation of the people (amendment) act, 1992, the election commission shall, having regard to the provisions of the constitution and the principle specified in clause (d) of sub-section (1) of section 9 of the delimitation act, 1972, determine the three assembly constituencies in the state of tripura in which the three additional seats for scheduled tribes, as increased by sub-section (1c) of section 7, shall be reserved(2) the election commission shall,—power of e l e c t i o n commission to d e t e r m i n e c e r t a i n constituencies to be reserved for scheduled tribes in the state of tripura(a) publish its proposals under sub-section (1) in the official gazette and also in such other manner as it thinks fit;(b) specify a date on or after which the proposals will be further considered by it; (c) consider all objections and suggestions which may have been received by it before the date so specified;(d) hold, for the purpose of such consideration, if it thinks fit so to do, one or more public sittings at such place or places in the state as it thinks fit;(e) after considering all objections and suggestions which may have been received by it before the date so specified determine, by order, the three assembly constituencies in the state in which the said three additional seats shall be reserved for the scheduled tribes and cause such order to be published in the official gazette; and, upon such publication, the order shall have the full force of law and shall not be called in qustion in any court and the delimitation of parliamentary and assembly constituencies order, 1976, shall be deemed to have been amended accordingly (3) every order made under sub-section (2) shall, as soon as may be after it is published under that sub-section, be laid before the legislative assembly of the state of tripura the first schedule (see section 3) allocation of seats in the house of the peoplenumber of seats in the house as subsequently constitutedname of the state/ union territorynumber of seats in the house as constituted on 1-1-1973totalreservedreservedtotalreservedreservedfor thefor thefor thefor thescheduledscheduledscheduled scheduledcastestribescastestribes1234567i states:1andhra pradesh416242622arunachal pradesh1123assam141214124bihar53754075chhattisgarh1166goa27gujarat242326248haryana9210249himachal pradesh414110jharkhand611jammu & kashmir6612karnataka27428413kerala19220214madhya pradesh375829615maharashtra4533483416manipur212117meghalaya22218mizoram111119nagaland1120orissa2035213521punjab133133522rajasthan2343254323sikkim124tamil nadu39739725tripura212126uttarakhand527uttar pradesh8518801828west bengal40824282ii union territories:1andaman and nicobar islands112chandigarh113dadra and nagar haveli1114delhi717115daman and diu116lakshadweep11117puducherry11total52277415437941 the second schedule (see section 7 and 7a) total number of seats in the legislative assembliesname of the state/ union territorynumber of seats in the legislative assembly as constituted on 1-1-1973number of seats in the legislative assembly as subsequentlyconstitutedtotalreservedreservedtotalreservedreservedfor thefor thefor thefor thescheduledscheduledscheduled scheduledcastestribescastestribes1234567i states:1andhra pradesh287401129439152arunachal pradesh60593assam1148101268164bihar3184529243395chhattisgarh906goa304017gujarat168112218213268haryana811590179himachal pradesh681636816310jammu and kashmir75676611jharkhand22433212karnataka21629222433213kerala13311214013114madhya pradesh2963961230447515maharashtra2701516288182216manipur601196011917meghalaya60506055†18mizoram30403919nagaland52605920orissa1402234147223421punjab104231172922rajasthan1843121200332423sikkim3221224tamil nadu23442223442325tripura606196071726uttaranchal7027uttar pradesh4258940392128west bengal28055162945917———— a billfurther to amend the representation of the people act, 1950————(shri hans raj bhardwaj, minister of law and justice)mgipmrnd—688ls(s5)—03-03-2008 | Parliament_bills | d747d2b4-58e2-510b-b2c3-ccd292399538 |
bill no xx of 2014 the accident affected persons (equal compensation) bill, 2014 a billto provide for equal compensation to persons affected by accidents by the appropriate government and for matters connected therewith and incidental theretobe it enacted by parliament in the sixty-fifth year of the republic of india as follows:—1 (1) this act may be called the accident affected person (equal compensation) act,2014short title, extent and commencement(2) it extends to the whole of india5(3) it shall come into force with immediate effectdefinitions2 in this act, unless the context otherwise requires,—(a) "accident" means an unexpected and undesirable event causing injury to death of a person during travel (road, railway, aircraft), natural disasters, terrorist and extremists activites and stampede;(b) "affected person,'' means person killed or injured in the accidents; (c) "apppropriate government" means in the case of a state, the government of that state and in all other cases the central government;5(d) "compensation" means financial assistance provided by the central government to the accident affected persons under this act;(e) "dependent" means the parents, spouse, children and siblings of the affected person;(f) "fund" means 'accident affected persons compensation fund' established under section 4 of this act;10(g) "prescribed" means prescribed by rules made under this act; and (h) "qualified medical practitioner" means any person declared by the central or state government by notification in the official gazette to be a qualified medical practitioner for the purpose of this act15 3 (1) the central government shall in accordance with the loss or injury sustained, provide equal amount as compensation to every accident affected person(2) subject to the provisions of this act, amount of compensation shall be as follows:equal compensation to accident affected person(i) where death results from the accident, the dependents of the deceased shall be given rupees twenty lakhs;20(ii) where permanent disability results from the accident, the injured shall be given rupees ten lakh;(iii) where temporary disability results from the accident, the injured shall be given rupees four lakh; and(iv) where ordinary injury results from the accident, the injured shall be given rupees one lakh25(3) the nature of injury from accident, shall be examined and reported by a qualified medical practitioner, in such manner as may be prescribed(4) the compensation amount shall be disbursed to the affected persons or to his dependent within one week from the date of receipt of report of the qualified medical practitioner304 (1) the central government shall establish an accident affected persons compensation fund for the purposes of this act(2) the state governments shall contribute to this fund in such proportion as may be prescribedestablishment of accident affected persons compensation fund35(3) such other sums as may be received by way of donation, contribution for assistance both from domestic and international institutions shall also be credited to the fund(4) the fund shall be managed by a board which shall comprise of the following persons:—(i) the prime minister - ex-officio chairman;40(ii) the chief ministers of every state and lieutenant governer or chief administrators of union territories;(iii) ten retired judges of high court /administrative officers whose nomination shall be done by the central government in such manners as may be prescribed(5) the central government may require a state government to furnish for the purposes of this act, such statistical and other information as may be necessary for implementation of the provision of this act, in such form and within such period as may be prescribed5 (1) the appropriate government shall constitute a special team to effectively implement the provisions of this act within their jurisdictionconstitution of a special team by the appropriate government(2) the special team shall consist of ten members of which five shall be appointed by the central government and five by the state government5(3) the functions of the special team shall be to,—(i) visit the accident site and collect information relating to the victims; (ii) submit the accident related information to the accident affected personscompensation fund board;10(iii) ensure that the victims receive the compensation within the time limitprescribed under this act;(iv) any other works that may be assigned by the accident affected persons compensation fund board constituted under section 4 of this act 6 the central government shall, after due appropriation made by parliament in this behalf by law, provide adequate funds for carrying out the purposes of this actcentral government to provide adequate funds15savings7 the provisions of this act shall be in addition to and not in derogation of any otherlaw for the time being in force regulating any of the matters dealt within this actpower to make rules8 the central government may, by notification in official gazette make rules for carrying out the purposes of this act statement of objects and reasonsthe constitution of india provides right of equality to every citizen under the fundamental rights there is a provision for equality and non-discrimination before law under articles 14 to 16 and for social equality under articles 17 and 18 of the constitution the right to equality provided by the constitution provides that all persons within the territories of india should get equal protection under the law and should be treated equally before all in similar situations in case of accident affected person financial assistance is provided as compensation to them however at time the relatives of the deceased have to go to court for justice which is unfortunate thousands of suits are filed in courts for similar compensation in similar situations in many cases, courts have also given decisions to provide for equal amounts despite this, there is no clear policy regarding this at the government level everything depends on the administrative decision now, the time has come to formulate a clear cut law for providing fixed amounts as, compensation to the dead and injured in accidentshence, this billprabhat jha financial memorandumclause 3 of the bill provides for compensation of rupees twenty lakh for the person deceased in the accident, rupees ten lakh in case of permanent disability, rupees four lakh in case of temporary disability and rupees one lakh for ordinary injury clause 4 provides for establishment of an accident affected persons compensation fund clause 6 provides for adequate funds to carry out provisions of this act the bill, if enacted, will involve expenditure from the consolidated fund of india at present, it is not possible to determine the quantum of funds but it is estimated that a recurring expenditure of rupees twenty five thousand crore per year will be involvedin order to create infrastructure, a non-recurring expenditure of rupees five thousand crore from the consolidated fund of india may also be involved memorandum regarding delegated legislationclause 8 of this bill empowers the central government to make rules for carrying out the purposes of the bill the rules will relate to matters of details only the delegation of legislative power is, therefore, of a normal character———— a billto provide for equal compensation to persons affected by accidents by the appropriate government and for matters connected therewith and incidental thereto————(shri prabhat jha, mp)gmgipmrnd—3776rs(s3)—18-12-2014 | Parliament_bills | 24a28bc4-9927-5381-ac5e-7700e610416e |
| sums | not | exceeding ||--------------------|-----------|--------------|| charged | | || on | the | i || services | | || and | | || purposes | | || voted | | || by | | || consoli- | | || total | | || 5 | | || parliament | dated | || fund | | || 14 | | || 15 | | || rs, | | || rs, | | || rs, | | || postal | | || services | | || | | || | | || revenue | | || 259,78,00,000 | | || 1,00,000 | | || 2,59,79,00,000 | | || capital | | || 11,46,00,000 | | || e | | || 11,46,00,000 | | || 10° | | || telecommunication | | || services | | || » | | || revenue | | || 880,75,00,000 | | || 5,00,000 | | || 8,80,80,00,000 | | || ~ | | || capita! | | || 669,83,00,000 | | || 1,00,000 | | || 6,69,84,00,000 | | || 16 | | || 17 | | || 18 | | || 19 | | || 20 | | || ministry | | || of | | || defence | | || | | || revenue | | || 250,46,00,000 | | || 1,00,000 | | || 2,50,47,00,000 | | || capital | | || 18,96,00,000 | | || 1,08,00,000 | | || 20,04,00,000 | | || defence | | || pensions | | || | | || revenue | | || 353,28,00,000 | | || 5,00,000 | | || | | | || 3,53,33,00,000 | | || 15 | | || defence | | || services—army | | || reyenue | | || 1489,54,00,000 | | || 4900,000 | | || | | | || 14,90,03,00,000 | | || defence | | || services—navy | | || revenue | | || 170,63 | | || 00,060 | | || 3,00,000 | | || 1,70,04,00,000 | | || defence | services— | || air | | || force | | || | | || » | | || revenue | | || 421,08,00,000 | | || 5,00,000 | | || 4,21 | | || ,13,00,000 | | || 21 | | || defence | | || ordnance | | || pi | | || factories | | || a | | || + | | || revenue | | || 352,81,00,000 | | || 16,00,000 | | || 3,52,97,00,000 | | || 22 | | || capital | outlay | on || defence | | || services | | || | | || capital | | || 1926,14,00,000 | | || 96,00,000 | | || | | | || 19,27,10,00,000 | | || 23 | | || ministry | of | enyiron- || ment | | || and | | || forests | | || | | || revenue | | || 51,96,00,000 | | || ds | | || 51,96,00,000 | | || capital | | || 95,00,000 | | || 2,00,000 | | || 7,00, | | || minisiry | of | externat || affairs | | || | | || 5 | | || | | || revenue | | || 99,52,00,c00 | | || 100,000 | | || 99,53,00,000 | | || capital | | || 11,50,00,060 | | || a | | || 11,50,00,000 | | || department | of | eco- || nomic | | || affairs | | || - | | || revenue | | || 73,66,00,000 | | || 100,000 | | || 73,67,00,000 | | || 3 | | || cepital | | || 23,32,00,000 | | || - | | || 2332,00,000 | | || 26 | | || currency, | coinage | || and | | || stamps | | || | | || | | || revenue | | || 66,51,00000 | | || 600,000 | | || 66,57,00,000 | | || capital | | || 30,06,00,000 | | || 1,00000 | | || 30,07,00,000 | | || payments | to | financial || institutions | | || | | || revenue | | || 102,08,00,000 | | || 1,02,08,00,000 | | || capital | | || 5435,81,00,000 | | || 54,35,81,00,000 | | || 28 | | || cnarcep,—- | interest | || payments | | || | | || < | | || - | | || revenue | | || 5333,32,00,000 | | || | | | || 53,33,32,00,000 | | || 29 | | || transfers | to | state || governments | | || | | || revenue | | || 945,89,00,000 | | || | | | || 2783,83,00,000 | | || | | | || 37,29,72,00,000 | | || capital | | || 24,16,00,000 | | || | | | || 2175,24,00,000 | | || | | | || 2),59'40,00,000 | | || 30 | | || loans | to | government || servents, | | || ete | | || | | || capital | | || 38,76,00,000 | | || re | | || 38,76,00,000 | | || charged,— | repayment | ; || of | | || debt | | || - | | || capital | | || 42506,59,00,000 | | || |1,25,06,59,00,000 | | || 32 | | || 33 | | || department | of | || expenditure | | || | | || revenue | | || 76,30,00,000 | | || - | | || 76,30,00,000 | | || capital | | || 55,00,000 | | || a | | || 55,00,000 | | || pensions | | || | | || | | || revenue | | || 100,02,00,000 | | || 31,00,000 | | || 1,00,33,00,000 | | |1 2 2 faa a pe a eed es ep ss woeaue te pretenses no sums not exceeding of services and purposes —- dibs eee ie eee vote voted by { charged on the | parliament consolidted total fund rs, rs rs 34 | audit revenue 48,60,00,000 | 1,06,00,000 | 49,66,00,000 3 35 department of revenue revenue 24,26,00,0c0 \ capital "00,000 | | 5,00,600 36 | direct taxes revenue 45,75,00,000 1,00,000 45,76,00,0c0 q capital 15,00,00,000 34 15,60,00,000 10 37 | indirect taxes revenue 73,00,00,000 13,00,000 73,13,c0,6c0 capital 23,31 ,00,000 ei 2331,00,000 38 | ministry of food revenue 441,58,00,000 1,00,000 | 441,59,00,000 capital 23,10,00,060 53,00,000 23,63,00,000 39 | ministry of foot 'processing indusiries revenue §,52,00,000 5, 92,00,000 capital 1,11,00,000 40 | department of health revenue | 95,37,00,000 | 1,00,000 95,38,c0,000 capital 28,88,00,c00 | 1,00,000 28,89,00,000 41 | department of family welfare revenue 183,29,00,0c0 183,29,00,600 capital 3,00,000 200 ,000 42 | ministry of home affairs revenue §2,77,00,060 1,00,000 52,78,00,000 capital 2,16,00,000 - 2,16,00,000 43 | cabinet revenue 2,04,00,000 2,04,00,000 44 | police revenue 337,68,00,000 8,00,000 337,76,00,060 capital 45,73,00,000 272,00000 | 48,45,00,000 4s | other expenditure of the ministry of home affairs 4 revenue §2,19,00,0€0 1,00,000 52,20,l0,000 capital 20,71,00,000 1,38,00,000 22,09,00,600 46 | transfers to union ' territory governments reverie 16,54,00,000 16,54,00,000 5 capital 71,00, 9,71 00,000 3547 | department of j education revenue 285,63,00,600 an 285,63,c0,000 - | capital ), 00, 47,00,000 §6,00,000 48 | department of youth 'affairs and sports revenue 18,44,00,0c0 18,44,00,000 capital 00, - 00, 49 | art and culture revenue 21,02,00,0c0 21,02,00,000 50-| department of women and child development revenue $1,44,00,000 $1,44,00,000 capital 00,00 00, $1 | department of industrial development 2 revenue $2,72,00,000 52,72,00,000 capital 32,00, 52 | department of heavy i é industry ~ revenue 6,22,00,000 6,22,00,000 capital 48,31,00,000 48,31,00,000 | | 24,26,c0,0c0 ; 2 211,00,000 | 32,00,000 \ no, of services and purposes voted by parliament 53 | department of public enterprises - revenue 34 | department of small scale industries and agro ard rural industries é revenue 53,65,00,000 32,26,00,000 < ' capital 35 | ministry of information and broadcasting revenue 17,20,00,000 capital 4,45,00,000 56 | broadcasting services revenue capital 158,71,00,000 59,50,00,000 57 | ministry of labour revenue = capital 69,91,00,000 12,00,000 58 | law and justice, revenue 23,83,00,000 59 | department of ' company affairs revenue capital 1,83,00,000 1,00,000 60 | ministry of mines revenue capital 21,84,00,000 7,13,00,000 61 ; ministry of parliamentary affairs revenue 20,00,000 62 | ministry of personnel, public grievances and pensions » revenue capital 63 | ministry cf petroleum and naturalgas revenue capital 64 | pianning ' + revenue capital 65 | department of statistics revenue capital 66 | department of programme implemmentation » revenue 67 | department of power revenue capital 68 | department of non- conventional energy sources + revenue capital 69 | ministry 5f rural ' evelopment revenue capital 70 | department of science ' technology revenue capital sums not exceeding 'he rged on the | consolidated fund 53,65,00,000 10 32,53,00,000 17,21,00,000 4,45,00,000 158,72,00,000 4 59,53,00,000 69,92,00,600 12,00,000 4,32,00,000 25,15,00,000 1,83,00,000 300, 4,00,000 78,00,000 14,00,000 2,08,00,000 79,62,00,000 325,74°00;000 eh re | sums | not | exceeding ||-------------------|-------------|--------------|| services | and | purposes || voted | | || by | | || charged | | || on | | || the | | || parliament | | || consolidated | | || total | | || fond | | || 45,58,00,000 | | || 45,58,00,000 | | || department | of | || scientific | and | indust- || rial | research | || revenue | | || capital | | || 300, | | || 300, | | || 12,80,00,000 | | || }2,80,00,000 | | || revenue | | || department | of | || biotechnology | - | || 69,00,000 | | || 5 | | || 69,00,000 | | || ministry | of | steel || 2,14,68,00,000 | | || 1,00,000 | | || 214,69,00,000 | | || revenue | | || capital | | || 5,31,00,000 | | || 4 | | || 5,31,00,000 | | || surface | transport | || 9,50,00,000 | | || 33,00,000 | | || 9,83,00,000 | | || revenue | | || capital | | || 69,12,00,000 | | || 2,00,000 | | || 69,14,00,000 | | || roads | | || $8,09,00,000 | | || 8,79,00,000 | | || 96,88,00,000 | | || revenue | | || capital | | || 21,82,00,000 | | || 5% | | || 21,82,00,000 | | || ports, | lighthouses | || and | shipping | - || 39,73,00,000 | | || 3,00,000 | | || 39,76,00,000 | | || revenue | | || capital | | || 122,11,00,000 | | || "4 | | || 122,11,00,000 | | || | revenue | || ministry | of | textiles || 27,64,00,000 | | || 77,00,000 | | || 28,41,00,000 | | || capital | | || 37,35,00,000 | | || 83,00,000 | | || 38,18,00,000 | | || urban development | | || and | housing | || 36,11,00,000 | | || } | | || 2,73,00,000 | | || 38,84,00,000 | | || revenue | | || capital | | || public | works | - || 44,61,00,000 | | || , | | || 3,00,000 | | || 44,64,00,000 | | || 16,52,00,000 | | || 400,000 | | || 16,56,69,000 | | || revenue | | || capital | | || stationery | and | || printing | | || 19,90,00,00 | | || 19,90,00,000 | | || 5,00,006 | | || 35,00,000 | | || reyenue | | || capital | | || | | | || 50,56,00,000 | | || 1,00,000 | | || 50,57,00,000 | | || ministry | of | water || resources | | || + | | || s | | || revenue | | || capital | | || 3,02,00,000 | | || 4,50,00,000 | | || 7,52,00,000 | | || 77,50,00,000 | | || | | | || $1,78,00,000 | | || 128,68,00,000 | | || ministry | of | welfare || 7,15,00000 | | || 19,00,000 | | || 7,34,00,000 | | || revenue | | || capital | | || 85,66,00,000 | | || 1,00,000 | | || 85,67,00,000 | | || - | atomic | energy || revenue | | || capital | | || | | | || $2,34,00,000 | | || a | | || 82,34,00,000 | | || i | | || 65,92,00,000 | | || 65,92,00,000 | | || nuclear | power | || schemes | - | || 25,67,00,000 | | || revenue | | || capital | | || 13,14,00,000 | | || 13,14,00,000 | | || department | of | || flectronics | | || 1,28,00,000 | | || 1,28,00,000 | | || revenue | | || capital | | || 6,77,00,000 | | || 6,77,06,000 | | || department | of | ocean || development | | || 1,26,00,000 | | || 1,26,00,000 | | || reventie | | || capital | | || i | | || 71,86,00,000 | | || 100,000 | | || 71 | | || ,87,00,000 | | || department | of | space || 13,14,00,000 | | || 100,000 | | || 13,15,00, | | || revenue | | || capital | | || 4,54,00,060 | | || 2,00000 | | || 4,56,00000 | | || revenue | | || lok | sabha | || 1,61,00,000 | | || | | | || 100,000 | | || 1,62,00,000 | | || revenue | | || rajya | sabha | || 289 | | || \ | | |rs | -25,67,00,000 5,00,000 5,00,000 ei 2,33,00,000 | 2,33,00,000 93 capitel 188,33,00,000 00,000 89,: 14040,00000 180100000 14220 00000 andaman and nicobar istands ~ revenue capital ,58,00,000 ,00,000 233300000 aia bec 95 dadra and nay haveli © capital 700,000 ai 6,07,00,000 3350:000 ~ 38s00;000 7° lakshadweep + revenue capital 8,38, 8,38,00,000 ps 00008 at 51308000 chandigarh + revenue' capital 36,10,00, ,00, 37,18, 7 stowoniono | "2200808 | sso; damanand diu 'tora 4,37,00,000 4,37,00,000 zhen, 2i6o,dien 22920,22,00,000 | 23062,3s,00,000 |45982,57,00,000 statement of objects and reasonsthis bill is introduced in pursuance of article 114(1) of the constitution of india, read with article 116 thereof, to provide for the appropriation from and out of the consolidated fund of india of the moneys required to meet the expenditure charged on the consolidated fund and the grants made in advance by the lok sabha in respect of the estimated expenditure of the - central government, excluding railways, for a part of the financial year - 1992-93, ident's recummendation under article wt "of "the constitution of india[copy of letter no f, 2(248)-b(d)/91, dated 17th march, 1992 from manmohan singh, minister of finance to the secretary-general, lok ha] the president, having been informed of the subject matter of the te provide for the withdrawal of certain sums from and out of the 'onsolidated fund of india for the services of a part of the financial year 9-93, recommends the introduction and consideration of the bill in lok sabha under article 117(1) ae ® of the constitution of india read with cle 116(2) thereof | Parliament_bills | 4b1eedf6-f13d-550f-b6c4-1f2d457999cd |
'arrangemen'p'of clauses chapter i preliminary clauses1 short title, extent and commencement 2 application 3 definitions chapter ii cen'l'ral rt:gi,strai' and registhanon of societies 4 ,central registrar5 multi-5tate co-operative societies which may be r~gistered 6 applic,ation for registration, ,,7 registration s registration certificate 9 amendment of bye-laws of ii multi-state co-operative society 1~ when amendment of bye-laws comes into force u change of name 12 change of, address 13 liability 14 amalgamation or transfer of assets and liabilities, or division, of multi-state co-operative, societies 15 central registrar to preparescheme of amalgamation or reorganisati(ln of co-operative bank in certain cases 16 liability of a co-operative bank to the deposit insurance and credit guarantee corporation 17 cancellation of registration certificate of multi-state co-operative societies in certain cases, 18 conversion of co-operative society into multi-state co-operative society chapter til m,mbers of multi-state co-operative societies and their rights and liabilities 19 persons who may become members 20, members not to exercise rights till due payment made 21 expulsion of members , clauses22 votes of members 23 manner of exercising vote 24 restric:tions on balding of shares 25 restrictions on transfer of shares or interest 26 reqemption of shares 27 transfer of fil;terest on death of members 28 liability of 'past member and estate of deceased member, chapter iv direction and management ofmulti~state' co-operative socjetij:s29 general body, its constitution, powers and ~ct~od8 30 annual general meeting of the general body 31 special general meeting of the general body 32 board of directors 33 association of employees in the management decision making process 34 disqualification for a member of a board 35 election of members of board 36 holding of office in co-operative society ~ 37 1lestrictiom on holding of office 38 payment of honorarium 39 removal of elected members by general body 40 removal of member by central registrar 41 nominee of centr~l government or state government on the board 42 powers and functions of the board 43 meetings of the board 44 chief executive 45 p(,wers and functions of chief executive 46 committees of the board 47 central government's power to give directi?ns in the public interest 48 supersession of board 49 'securing possession of record~, etc e'() constitution of body of person~ for preparation of list, etc 51 acts of multi-state co-operative societies not to be invallca~ed by certain defects chapter v privileges of multi~st~te co-operative societies52 multi-state co-operative society to be body corporate '9 charge and set~off, in respect of share or contribution or interest - of members clauses54 share or contribution 'or interest not liable to attachment 55 register of members 56 admissibility of copy of entry as evidence 57 exemption from compulsory registration of instruments 58 deduction from salary to meet multi-state co-operative society's claim in certain cases ' 59 government aid to multi-state co-operative societies chapter vi properties and funds of multi-state co-operative societies60 funds not to be divided by way of profit -61 disposal of net prof)ts 62 iqvesttpent of funds 63 restrictions on loans 64 rest~ctionson borrowing 05 restrictions on other transactions with non-members 66 contributory provident fund chapter vii aunit, inquiry, mspection and surchahg!:67 audit 68 inspection of multi-state co-operative societies 69 inquiry by central registrar 70 inspection of books of indebted multi-state co-operative societies ' 71 costs of inquiry and inspe~tion 72 'recovery of costs 73 repayment, etc chapter viii settlement of disputes74 pisputes 75 limitation i6 settlement of disputes chapter ix "winding up of multi-state co-operative societtes '" 77 winding up of multi-state co-operative societies 78 winding up of co-operative banks at the direction of reserve bank ~ 79 reimbursement to the deposit insurance corpql'ation by liquidator clausesso liquidator 81 powers of liquidator 82 disposal of surplus assets 83 priority of' contributions assessed by 'liquidator 84 powel' 'of central registrar to cancel regis~tion {)of a multi - ' state'co~perative society ' chapter'x execution of decrees, ordbrs and decisions85 execution of decisions, etc 86 execution of orders of liquidator 87 attachment before award 88 central registrar or the person authorised 'by 'fum to be' ctvl court, for certain purposes 89 recovery of s~ms, due to govemmen~ cha~xl appeai~s and revision90 appeals 91 no appeal or revision in certain callel 92 revision 93 review 94 interlocutory orders chapter xll societies which bilcome multi state co-operative socfttiu consiquin'!'on peorganisation ,of statbs ,,'-, , 95 co-operative societies functioning' immediately before' 'reorganilo' , sation of states chapter xiit offences and penalties,96 offences 97 cognizance of offences , chapter lfivi i miscellaneous98 copy of act, rules, and bye-laws, etc, to be open to inspeotion 99 power to' exempt multi-state ,co-operative societies from conditions as to registration ," 100 liquidator to be public servant 101 notice necessary ih suits 102 certain ac~ not to apply 103 savings of existing multi-state co-operative iocietiti ,i " 104 power to amend second schedule 105 bar of jurisdiction of eourts 10,6 powers of civil court 107 indemnity 108 opening of branches 109 power to make rules 110 repeal 'ihe first sched~e the second sch!dule the multi-state co-operative societies bill, 1984 ' a billto consolidate and amc'nd thej law rclating to co-o,perat,tve societies with objects not confined to one state and serving the interests of members in more bhan one state be it enacted by parliament in the thirty-fifth year of the republic of india as foilows:- chapter i preliminary!l l (1) this act may be called the multi-state co-operative societies short act, 1984 ' title (2) it extends to the whole of india extent and commencement (3) it shall come into force on such date as the central government may, by notification in the official gazette, appoint 2 thi's act shall apply to-10 application, (a) all co-operative societies, with objects not confined to' 4')11(: state, which were incorporated before the commencement of this act, 2 of 1912 15 (i) under the co-operative societies act, 1~12, "or (ii) under any other law relating to co-operative societies in force in any state or in pursuance of the multi-unit cooperative societies act, 1942, , e of 1942 and the registration of which has not 'been cancelled before such commencement; and ' '1:) (b) all multi-state co-operative societies " 3 in this act, unless the context oth1:!rwise requires,-,~ defini-tions (a) "board" means the board of directors or the governing body , of a multi-state co-operative society by whatever name calred, to which the direction and! control, of the management of the affairs of the society is entrusted; 5 (b) "bye-laws" means the bye-laws for the time being in force which have been duly regis,tered under this act, and includes amend~ ments· thereto which have been duly registered untler this act; , (c) "central registrar" means the central registrar of cooperative societies appointed under sub-section (1) of section 4 and jo includes any officer empowered to exercise the powers of the central ~ regi'strar under" sub-section (2) of that section; ,11 (d) "chief executive" means a chief executive of a multi~stat co-operative society appointed under section 44; (e) 'oleo-operative bank" means a multi-state co-qperative '5 society which undertakes banking business; (f) "co-operative principles" means the co-operative, principle~ specified in the 'first schedule; (g) "co-operative society" means a society :registered or deemed to be registered under any law relating to co-operative societies for ·~o the time being in force in any state; (h) "co-operative year", in relation to any multi-state c~ operative society or class of such societies, means the year ending on the 30th day ~f june and where the accounts of such 'society or class of such societies are, with the previous sanction of the central 25 regi'5trar, balanced on any other day, the year endin~ on such day; (i) "deposit insuranee corporation" means the deposit insurance and credit cuarantee cotporationestablished under section 3 of the deposit insurance co,rporation act· 1961; 47 of 1981 , (j) ~'memher" mean's a person joining in the applicatiol1 for the 30 registration of a multi--8tate co-operative societ{y and 5nc1udes a person admitted to mem~t'ship after such registration in accordance with the provisions of this ad, the rules and the bye-laws; (k) "multi·state co-operative society" means a society registered or deemed to be registered under this act and include! a national 35 co-operative 'society; (1) "multi-state co-operative ,society with limited liability" means a society having the liability of its members limited by its bye-laws to the amount, if any, unpaid on <th~ shares respectively, held by them or to such amount as they may, respectively, thereby'lo undertake to contribute to the absets of the' society, in the event of its being wound up; (m) "national' co-operative society" ~ans a multi-state c~ 'operative socie~ ~pecifted in the second schedule; (n) "notification" means a notification published in the official gazette; 5 (0) "officer" means a president, vice-president, chairman, vice--chairman, managing director, secretary, manager, member of a board, treasurer, liquidator, an administrator appointed under section 48 and includes any other person empowered under thils act or the rules or the bye-laws to give directions in regard to the business of a multi-state co-operative society; (p) "prescribed" means prescribed by rules; 10 2 of 1934 (q) "reserve bank" means the reserve bank of india constituted under the reserve bank of india act, 1934; (r) "rules" means the' rules made under this act chapter ii central registrar and registration of societies15 4 (1) the central government may appoint a person to be the central central registrar of co~perative societies and may appoint such other regispersons as it may think fit to assist the central registrar trar (2) the central government may, by notification, direct that any power exercisable by the central registrar under this act (other than 20 the power of registration of a multi-state co-operative society) shall in relation to such society, and such matters as may be specified in the notification be exercisable also by any other officer of the central government or of a state government as may be authorised by th~ centrri government subject to such conditions as may be specified therein: provided that no officer of a state government shall be empowered to exercise such power in relation to a national co-operative society: provided fu~her that no officer of a state government below the rank of the registrar of co-operative societies shall be empowered to exercise any power exercisable by the central registrar under section 87 5 (1) no multi-state co-operative society shall be registered under multi-30 this act, unless the main objects of the society are to serve the int'?re~ts state coof members in more than one state operative societies which may be registered (2) subject to the provisions of sub-section (1), a multi-state cooperative society, which has as its objects the promotion of the economic 35 and social betterm~nt of ~ts members through mutual aid in accord~ce with the co-operative prmclples or a' multi-state co-opei"atlve socl~t~ established with the object of facilitating the operations of other such societies or of co-operative societies or of both may he register'?d ullder this act (3) the word "limited" or its equivalent in any indian language 40 fl· st shall he suffixed to the name 0 every mu tlate co-operative 90clcty regtstered under this act with limited liability, 6 (1) for the purposes of registration of a multi-state co-operative society under this act, an application shall, be made to the central registrar in such form and with such particulars as may be prescribed (2) the application shall be signed~ (a) in the case of a multi-stateco-operative 'society of which all 5 the members are individuals, by at least fifty;persons from each of the states concerned; (b) in the cas~ of a multi-state co-operative society of which the members are co-operative societies, by duly authorised representatives on behalf of at least two such societies as are not registered 10 in the same state; and ~ (c) in the case of a multi-state co-operative society of which another multi-state co-operative society and other co-operative societies are members, by duly authorised representatives of each of such societies: 15 ',~ provided that not less than two of the co-operative societies referred to in clause (b) or clause (c), as the case may be, shall be such as are not registered in the same state (3) the application shall be accompanied by four copies of the proposed bye-laws of the multi-state co-operative 'society and the persons 20' by whom or on whose behalf such application is made shall furnish such information in regard to the society as the central registrar may require 7 (1) if the central' registrar is sati'sfied-(a) that the application complies with the provisions of this act and the rules; (b) that the proposed multi-state co-operative society satisfies the basic criterion that its objects are to serve the interests of_ members in more" than one state; (e) that thete is no other multi-state co-operative having similar area of operation and identical objects; society (d) 'that the proposed bye-laws are not contrary to the provisions of this act and the rules; and (e) that the proposed multi-state co-operative society has reasonable prospects of becoming a viable unit, he may register the multi-state co-operative society and its bye-laws 35 (2) where the central registrar refuses to register a multi-state co-operative society, he shall communicate the order of refusal together with the reasons therefor, to such number of the applicants and in such manner as may be prescribed 5 (3) the application for registration shall be disposed of by the central registrar within a period of six months from the date of receipt thereof by him: provided that if the central registrar is unable to dispose of the application within the period aforesaid, he shall make a report to the 10 central gov~rnment stating therein the reasons for his inability to do so, and the central government may allow him such further period or periods as is considered necessary to dispose of such application belistration crti flcat'¥ 8 where a m'ulti-state co-operative society is registered under this act, the central registrar shall issue a certificate of registration signed is by him, which shall be conclusive evidence that the society therein mentioned is duly registered under this act, unless it is provea that the registration of the society has been cancelled 9 (1) no amendment of any bye-laws of a multi-state co-<lperative society shall be valid, unless such amendment has been registered under 20 this act amendment of bye-law!! of a multi statcooperative lociety (2) every proposal for such amendment shall be forwarded to the central registrar and if the central registrar is satisfied that the proposed amendment-(a) is not contrary to the provisions of this act or of the rules; (b) does not conflict with co-operative principles; and (c) will ,promote the economic in~erests of the members of the multi-state co-operative society, he may register the amendment within a period of six months from 30 the date of receipt thereof by him: provided that if the central registrar is unable to register the amendment within the period aforesaid he shall make a report to the central government stating therein the reasons for his inability to do so, and the central government may allow him such further period or periods 35 as is considered necessary to register the amendment (3) the central registrar shall forward to the multi-state co-operative society a copy of the registered amendment together with a certi· ~ ficate signed by him and such certificate shall be conclusive evidence that the amendment has been d'uly registered (4) where the central registrar refu~es to register an amendment 40 of the bye-laws of a multi-state co-opera11ve society, he shall communicate the order of refusal together with the reasons 1herefor to the chief executive of the society in the manner prescribed within seven days from the date of such refusal 10 an amendment of the bye-laws of a multi-state co-operative society shall, unless it is expressed to come into operation on a particular day, come into force on the day on which it is registered "'hen ·amenli· mentof bye-laws ciomes into force change ofnam~ 11, (1) a multi-state co-operative society may, by an amendment of its bye-laws, change its name but such change shall not affect any right 5 or obliga'ion of the multi-state co-operative society or of any of its members or past members, and any legal proceedings which might have been continued or commenced by or against the multi-state co-operative society by its former name may be continued or commenced by or against 10 its new name (2) where a mul~i-state co-operative society changes its name, the central registrar shall enter the new name on the register of multi-state co-operative societies in place of the former name and shall amend the cerhficate of registration accordingly changeo! address 12 every multi-state co-operative society shall have a principal place 15 of business and an address registered in the manner prescribed to which all notices and communications may be sent and any change in the principal place of business of a multi-state co-operative society shall be made with the previous approval of the central registrar liability 13 (1) no multi-state co-operative society with unlimited liability 20 shall be registered after the commencement of this act: provided that where a multi-unit co-operative society with un)fmited liability was functioning before the commencement of this att, such a society shall exercise the option within a period of one year from such 25 commencement either to continue to function as such or to convert itself into a multi-state co-operative society with limited liability by following the procedure specified in sub-sections (2) to (4) (2) subject to the provisions of this act and the rules, a multi-unit co-operative society may, by an amendment of its bye-laws, change the 30 extent of its liability (3) when a multi-uoit co-operative society has passed a resolution to change the extent of its liabuiy, it shall give notice thereof in writing to all its members and creditors, and, notwithstanding anything contained in the bye-laws or contract to the contrary, any member or creditor shall, 35 during the period of one month from the date of se,rvice of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be (4) any member or credit~r who does not exercise his option within > the period specified in 'sub-section (3) shall be deemed to have assented 40 to the change (5) an amendment of a bye-law of a multi-unit co-operative society changing the extent of its liability shall not be registered or shall not take effect until either-(a) the assent thereto of all members and creditors ha's been qbtained, or -·45 (b) all claims of members and creditors who exercise the option referred to in sub-section (3) within ,the period specified therein have been met in full or otherwise satisfied 14 (1) a multi-state co-operative society may, with the prior con-5suuation of the central registrar and by a resolution passed by a inajority of not less than two-thirds of the members present and voting at a general meeting of the society held for the purpose,-(a) transfer its assets and liabilwes in whole or in part to any other multi-state co-operative society or co-operative society; 10 (b) divide itself into two or more multi-state co-operative societies; amalia mationor transfer of assets and liabilities ordivllion of' multi-sttecooperative societies, (c) divide itself into two or inore co-operative societies , (2) any two or more multi-state co-operative societies may, with the prior consultation of the central registrar and by a resolution passed 15 by a majority of not less than two-thirds of the members present and voting at a general meeting of each 'such society, amalgamate themselves and form a new multi-state co-operative society (3) the resolution of a multi-state co-operative society under subsection (1) or sub-section (2) shall contain all particulars of the transfer 20 or division or amalgamation, as the case may be: ' provided that in the case of a co-operative bank, the central registrar shall not accord approval to any such resolution without the previous sanction in writing of the reserve bank (4) when a multi-state co-operative society has passed a resollltion 25 under sub-section (1) or sub-section (2), it 'shall give notice thereof in writing to all the members and creditors and, notwithstanding anything 'conttained in the bye-laws or contract ,to the contrary, any member 01' creditor, shall, during the period of one month of the date of service of the notice upon him, have the option of withdrawing his shares, deposits 30 or loans, as the case may be (5) any member or creditor who does not exercise his option within the period specified in sub-section (4) shall be deemed to have assented "to the proposals contained in the resolution (6) (a) a resolution passed by a multi-state co-operative society 35 under this section shall not take effect 'until the assent thereto of' all the members and creditors has been obtained (b) the multi-state co-operative society shall make arrangements for meeting in full or otherwise satisfying all claims of the members 40 and creditors who exercise the option within the period specified in subsection (4) (7) on reecipt of an application for the registration of new societies formed by division in accordance with the resolution passed under subsection (1) or of a new 'society formed by amalgamation in accordance with the resolution passed under sub-section (2), ,the central registrar, 45 on being satisfied that the resolution has become effective under subsection (6) shall, unless for reasons to be recorded in writing he thinks fit to refuse so to do, register the new societies or society, as the case may be, and the bye-laws thereof (8) on the issue of an' order under sumection (7), the provisions of 50 sectioill 17 shall, so far as may be, apply to the multi-state co-operative society so divided or the multi-state co-operative societies so amaliamated (9) where a resolution passed by a multi-state co-operative society under this section involves ithetransfer o~ any assets and liabilities, the resolution shall, notwithstanding anything contained in any other law for the time being in force, be a sufficient conveyance ,to vest the assets and liabilities in the transferee without any further assurance 5 l'of 1949 15 when an order of moratorium has been made by the central government under sub-6ection (2) of section 4'5 of the banking regulation act, 1949 in respect of a co-operative bank, the central registrar, with the ,previous approval of the reserve bank in writing, may, during the period of moratorium, prepare a scheme-10 (a) for the amalgamation of the co-operative bank with any other cch>perative bank; or (b) for the reorganisation of the co-operative bank central reaislrllr to prepare scheme of amal-iilmation orreoraanisation of cooperative bank in certain c1lses 16 notwithstanding anything contained in section 14 or any other provision of this act, where a co-operative bank, being an insured bank 15 within the meaning of the deposit insurance and credit guarantee corporation act, 1961, is amalagamated or reorganised and the deposit 47 of 1961 liability of a cooperative bank to the deposit insurance and credit guarantee corporation insuranc~ corporation has become liable to pay to the depositors of the insured bank under sub-section (2) of section 16 of that act, the bank with which such insured bank is amalgamated, or the new co-operative 20 bank formed after such amalgamation, or, as the case may be, the insured bank or transferee bank shall be under an obligation to repay to the deposit insurance corporation in the circumstances, to the extent \ and in the manner referred to in section 21 of the deposit insurance and credit guarantee corporation act, 1961 25 cancellation of reaistration eertiftc1lte of multi-state c0-operative societies in'certain cases 17 (1) where the whole of the assets and liabilities of a multi-state co-operative society are tran'$ferred to another multi-state co-operative society or to a co-operative society in accordance with the provisions of section 14, the registration of the first-mentioned multi-state co-operative society shall stand cancelled and the society shall ~ deemed to have 30 been dissolved and shall cease to exist as a corpo,rate body (2) where two or more multi-state co-operative societies are amalgamated into a new multi-state c~operative society in accordance with the provisions of section 14, the registration of each of the amalgamating societies 'shall stand cancelled on the registration of the new 35 slociety, and each of the amalgamating societies shall be deemed to have been dissolved and shall cea&e to exist as a corporate body (3) where a r~ulti-state co-gperative society divides itself into two or more multi-state co-operative societies or two or more co-ope,rative societies in accordance with the provisions of section 14, the registration 40 of that society shall stand cancelled on the registration of the new societies, and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body (4) the amalgamation or division of multi-state co-operative societies sh'all not in any manner whatsoever affect any right or obliga- 45 tion of the resulting multi-state co-operative society or societies or render defecti ve any legal proceedings by or against the multi-state co-operative society or societies, and any legal proceedings that might have been continued or commenced by or against the multi-state co-operative society or societies, as the case may be, before the amalgamation or division may be continued or commenced by or against the resulting multi-state co-operative society or societies 18 (1) a co-operative society may, by an amendment of its bye-5 laws, extend its jurisdiction and convert itself into a multi-state cooperative society: provided that no such amendment of bye-laws of a co-operative society shall be valid unless it has been registered by the central registrar i i conversion of co-operative society into multistate cooperative society, 10 (2) (a) every proposal for such amendment shall be forwarded to the central registrar (b) if the central registrar, after consulting the registrar: of cooperative societies of the states concerned , has satisfied himself that such amendment fulfils the requirement of sub-section (2) of section 9, 15 he may register the amendment within a period of six months from the date of receipt thereof by him: provided that if the central registrar is unable to register the amendment within the ~iod aforesaid, he shall make a report to the central government stating therein the reasons for his inability to do 20 so, and the central government may allow him such further period or period's as is considered necessary to register the amendment (3) the central registrar shall forward to the co-operative society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment 25 has been registered (4) where the central registrar refuses to regi'ster an amendment of the bye-laws of a co-operative society, he shall commun:cate the order of refusal together with the reasons therefor to the society in the manner ,prescribed within seven days from the date of refulal 30 (5) (a) once the amendment of bye-laws has been registered by the central regisirar, the co-operative society shall, as from the date of registration of amendment, become a multi-state co-operative society (b) the central registrar shall forward to the co-operative society a certificate signed by him to the effect that such society has been re-35 gistered as a multi-state co-operatiw society under this act and also forward a copy of the same to the registrar of co-operative'societies of the state concerned ' ~c) the re~istrar of co-operative societies referred to in clause (b) shall thereupon make an order directing that the society had, as from the 40 date of registration by the central registrar, ceased to be a society under the law relating to co-operativ'e! societies in force in ,that state chapter m members of multi-state co-op~rative socibties and their rights and liabilrnes45 19 (1) no person shall be admitted as member of a multi-state cooperative society except the following, namely:-persons who may become member!!, (a) an individual competent to contract under igecti<m ii qf the indian contract act, 1872; (b) any multi-state co-operative society or any c:o-operative society; (c) the central government; (d) a state government; (e) the national co-operative development corporation estab-5 lished under the national co-operative development corpqration act, 1962; 26 of 1962 (1) any other corporation owned or controlled by government; (g) any government company as defined in seetion 617 of the companies act, 1956; 10 1 of 1956 (h) such class or classes of persons or association of persons as may be permit~ by the central registrar having regard to the nature and activities of a multi-state co-operative society (2) such number of individuals possessing such qualifications as may be prescribed may be admitted as members of the national cooperative union of india limited:, new delhi 15 (3) save as otherwise provided in sub-section (2) and notwithstanding anything contained ill sub-section (1), no individual shall be eligible for admission as a member of a national co-operative society (4) any person eligible for membership of a multi-state co-operative 20 society may, on his application, be admitted as a member by such society (5) every application for admission as a member of a multi-sta~ co-operative society 'shall be disposed of by such society within a period of four months from the date of receipt of the application, and the decision of such society on the application shall be communicated to the ~5 applicant within fifteen days from the date of such decision: provided that if the application is not disposed of within the period aforesaid, or the 'decision is not communicated within a period of fifteen days of the expiry of the aforesaid period of four month's, the multi-state co-operative society shall be deemed to have made a decision, 30 on the date of expiry of such period, refusing admission to the applicant (6) notwithstanding anything contained in this section the central government may, having regard to the fact that the interest of any ~on or class of persons conflicts or is likely to confllct with the objects of any multi-state co-operative society or class of multi-state· co-operative 3ci societies, by general or special order 'published in t!te official gazette, declare that any person or class of persons engaged in or carrying on any profession, business or emplo)'!ment shall be disqualified from bt!ing admitted, or for continuing, as m-embers or shall be eligible· for membership only to a limited extent of any specified multi-state co--operative 40 society or class of multi-state co-operativesocieties, so long as such person or persons to; or are engaged in or carrying on that profession, bu'siness or eml?loyment, as the case may be 20 no member of a multi-state co-operative society shall exercise the rights of a member, unless he has made such payments to the society 15 in respect of membership, or has acquired 'such interest in the society, as may be specified in the bye-laws :-,members not to exercise rights ti1ldue payment made expulsion "1 of members n (1) a multi-state co-operative society may by resolution puaed by a majority of not less than two-thircbi of the 'members present and voting at a general meeting of members held for the purpose, expel a member for acts which are detrimental to the proper working of the 5 society: provided that the member concerned shall not be expelled unless he has been given a reasonable opportunity of making representation ill the matter (2) no member of the multi-state co-operative society who has been 10 expelled under sub-section (1) shall be eligible for re-admission u a member of that society, for a period of three years from the date of such expulsion: provided that the central registrar may, on application of the multi-state co-operative society and if satisfied that in the special circum-15 stances of the case, it is necessary so to do in toe interests of the multi-state co-opera1tive society, sanction the re-admission or admission within the said period, of any such member as a member of the said society votes of members 2% every member of a multi-state co-operative society, including a member who is an employee of suchi society, shall have one vote in the 20 affairs of the society: provided that-(a) a member who is an employee of such society shall not be entitled to vote-(i) at an election of a member of the board of such society; (i4) in any general meeting convened for framing the byelaws of such 'society or any amendments thereto: (b) in the case of an equality of votes, the chairman shall have a second or casting vote; (e) where any of the authorities referred to in clauses (c) to (g) of sub-section (1) of sectio~l 19 is a member of a multi-state co-operative 'society, each person nominated by such authority, on the board, in accordance with the provisions contained in this act and the rules, shall have one vote; (d) a muiti-s~te co-operative society, the members of which 35 include co-operative societies or other multi-state co-operative societies, may provide for an equitable system of voting havidg regard to the membership of, and the extent of business carried on by such co-operative societies, or multi-state co-operative societiel; and other relevant circumstances 40 23 every member of a multi-state l'o-operative society shall exercise his vote in person and no member shall be pel'ldltted to vote by proxy: manner ~ olasercisilll vote provided that a multi-state co-operative society or ace-operative society which is a member of another multi-state co-operative society, 45 may, ubject to the provisions of sub-section (3) of section 29 and the 7-rules, appoint its representative to vote on its behalf in the affairs of that other society lteitrictiona on holding ofsharea 24 no member, other than any of the authorities referred to in clauses (c) to (g) of sub-section (1) of section 19 or a multi-state c0-operative society or a co-operative society, shall hold more than such 5 portion of the total share capital of the society (in no case exceeding one-fifth thereof) as may be prescribed: provided that the central gove,rnment may, by notification, specify in respect of any class of societies a higher or lower maximum than one-fifth of the share capital 10 25 the transfer of the share or interest of a member in the capital of a multi-state co-operative society shall be subject to such conditions as to maximum holding as are specified in section 24 rcstrictlodaod transfer otshares or i, intertll t redemptlodot shares 26 shares held in a multi-state co-operative seciety by any of the authorities referred to in clauses (c) to (g) of sub-section (1) of sectioll 15 19 shall be redeemable in accordance with the bye-laws of such multi-state co-operative society and in a case where the bye-laws do not contain any provision in this regard, in such manner as may be agreed upon between the multi-state co-operative society and 'such authority 'l'radafer otlntereaton death ot members 27 (1) on the death of a member, a multi-state co-operative society ~o may transfer the share or interest of the deceased m~mber to the persod nominated in accordance with the rules made in this behalf, or, if there is no person so nominated, to such person as may appear to the board to be the heir or legal representative of the deceased member, or pay to such nominee heir or legal representative, as the case may be, a sum 25 representing th4l value of such member's share or interest as ascertained in accordance with the rules: provided that no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, as the case may k ~ (2) a multi-state co-operative society shall, unless within six months of the death of the member prevented by an order of a competent court, pay to such nominee, heir or legal rep,resentative, as the case may be, au other moneys due to the deceased member from the society (3) all transfers and payments made by a multi-state co--operative s5 society in accordance with the provisions of this section shall be valid and effectual against any demand made upon the society 'by any other peraon z8 (1) su~ject to the provisions of sub-section (2), the liability of a past member or of the estate of a deceased member of a mulu-btate 40 co-operative society for the debts of the society as they existed,-llabllity otput ',-member and-tate of deceased (ii) in the case of a past member, on the date on which he ceased to be a member; ~ember (b) in the case of a deceased member, on the date of his death, fihall conttnu~ for , period of two ,,1'1 from such date (2) notmthstanding anything contained in sub-section (i), where a mulustate co-operative society is ordered to be wound up under section 77, the liability of a past member who ceased to be a member or of the estate of a deceased member who died within two y~ars 5 immediately preceding the date of the order of winding up, shall continue until the, entire liquidation proceedings are completed, but such liability shall extend only to the debts of the society as they existed on the date of cessation of membership or death, as the case may be chapter iv direction and management of multi-state co-operative 10 societiils29 (1) the general body of a multi-state co-operative society shall consist of all the members of such society: genera1 bod, constitution, powc:r and tunctioa& provided that where the bye-laws of a multi-state co-operative society provide for the constitution of a smaller b0dy consisting of delegates of members of the society elected or selected in accordance with such byelaws, that smaller body shall exercise such powers of the general body as may be prescribed or as may be specified in the by,e-iaws of the society (2) subject to the provisions of this act, the rules and the bye-iawa, r20 the ultimate authority of a multi-state co-operative society shall vest in the general body of its members: provided that nothing contained in this sub-section shall affect the exercise by the board or any officer of a multi-state co-operative society of any power conferred on such board or such officer by this act or the 125 rules or the bye-laws (3) where in any, mt:eting of the general body or the board of a multi· state co-operative society, a co-operative society or another multi-state co-operative society is to be represented, such co-operative society or other multi-state co-operative society shall be represented in such 30 meeting only ,through the chairman or the chief executive o~ such cooperative society or other multi-state co-operative society, as the case may be, and where there is no board of such co-op,e,rative society or other multi-state co-operative society, for whatever reasons, through the administrator, by whatever name called, of 'such co-operative society or as other multi-state co-operative society 30 (1) every multi-state co-;operative society: shall, :witbin such period as may be prescribed, after the close of the year call a general meeting of its members in the manner prescribed for the purpose of-(a) consideration of the audit report and annual report; annual genetl meetiftg of the general bod, (b) disposal of net profits; 40 (c) approval of the programme of activities tor tbe ensuing year; -- , (d) amendment of bye-laws; (e) election, if any, of the members of the board, otber than ~5 nominated members, subject to the provisions of section 35: provided that the central registrar may, by general or special order, extend the period for holding such meeting for a further period not exceeding three months: ~ ii provided further that if in the opinion of the central registrar no such extension is necessary or such meeting is not called by ,the multi state co-operative society within the ,extended period, if any, granted by him, the central registrar or any person authorised by him in this behalf may call such meeting in the manner prescribed, and that meeting shall 5 be deemed to be a general meeting duly called by the society and the central registrar may order that expenditure incurred in calling such a· meeting shall be paid out of the funds of the society or by such ~ or pel'sons who, in the opinion of the central registrar, was or were responsible for the refusal or failure to convene the general meeting 10 (2) at every annual general meeting of a multi-state co-operative society the board shall lay before the society a statement showing the details of the loans or goods on credit, i~ any, given to any of the members of the board or to the spouse or a son or daughter of a member of the board during the preceding year or outstanding ajitainst him or against 15 i;uch spouse or son or daughter of the member of the board r special itme'l'al meetine of the aeneral body 31 (1) the chief executive may, at any time, on the direction of the board, call a special general meeting of the society and shall call such meeting within one month after the receipt of a requisition in writing from the central registrar or from such member or members or a 20 proportion of the total number of members, as may be provided in the bye-laws (2) if a special genpral meeting of a multi-state co-o~ative society is not called in accordance with the requisition referred to in sub-section (1) the central registrar or any person authorised by him in this behalf 25 shall have the power to call such meeting and that meeting shall be deemed to be a meeting called by the chief executive in accordance with the provisions of that sub-eection and the central registrar may order that the expenditure incurred in calling such meeting shall b8 paid out of th~ funds of the society or by such person or persons who 30 in the opinion of the central registrar, was or were responsible for the refusal or failure to convene the special general meeting ~1 boardof directon 32 subject to the provisions of this act and the rules there shall be a board of directors for every multi-state co-operative s~iety consisting of such number of members as may be provided for under the bye- 35 laws 33 every multi-state co-operative society shall devise such procedure, as may be specified in /fue bye-laws or in the administrative instructions, for association of the representatives of employees of such multi-state co-operative societies at such level or bodies as may be 40 specified in the bye-laws or the instructions issued in this regard, in the management decision maldng process asaociatlon of employe in the management decision making proeess diaquali-\ ftcalion r rot a member or board 34 no mem:ber of any multi-8tate co-operative society or nominee of a member-society on a national co-operative society shall be eligible for being chosen as, or for being, a member of the board of such multi-state co-operative society or national co-operative society or of any other co-operative society to which the multi-5tate co-operative society is aftluated, if such member-(4) has been adjudged by a competent court to be insolvent or of unsound mind; (b) is concerned or participates in ,the profits of any contract with the society; (c) has been convicted for an offence involving moral turpitude; 5 (d) holds any office or place of profit under the society: provided that the chief executive or such full-time employee of the society as may be notified by the central government from time to time or a person elected by the employees of such society to 10 represent them on the board of such society shall be eligible for befng chosen as or for being a member of such boardi (e) has been a member of the society for less than twelve months immediately preceding the date of such election or appointment; 15 (f) has interest in any business of the kind carried on by the society of which he is a member; (g) has taken loan or goods on credit from the society of which he is a member, or is otherw;se indebted to such society and after the receipti of a notice of default issued to him by such society, has defaulted-20 (~) in repayment of such loan or debt or in payment of the price of the goods taken on credit, as the case may be, within the date fixed for such repayment or payment or where 'such date is extended, which in no case shall exceed six months within the date sq extended, or (ii) when such loan or debt or the price of goods taken on credit is to be paid in instalments, in payment of any tmtalment, and the amount in default or any part thereof has remained unpaid on the expiry of six months from the date of such default: provided that a member of the board who has ceased to hold office as such under this clause shall not be eligible, for a period of one year, from the date on which he ceased to hold ofllce, for reelection as a member of the board of the multi-state co-operauve society of which he was a member or for election to the board of any other multi-state co-operative society; 35 (h) is a person against whom any amount due under a decree, decision or order s pending recovery under this act; 40 (i) is retained or employed as a legal practitioner on behalf ot or against the multi-state co-operative society, or on behalf of or againflt any other multi-state co-operative society which is a member of the former society 25 of 1961 explanation-for the purposes of this clause "legal practitioner" has the ~ame meaning as in clause (i) of sub-section (1) of secuon 2 of the advocates act, 1961: 45 (j) has been convicted for any offence under this act 35 (1) the superintendence, direction and control of the preperation of the elef'toral rolls for, and tbe conduct of, elections of the members of the board of such multi-state co-operative societies or class of multi state co-operativc societies as the central government may, by general 01' special order notify, shall be vested in sucb returning officers as may 5 be appointed by the central regicrtrar in tbis behau (2) the vote at such elections shall be by secret ballot (3) the term of office of the elected members of the board ~hal1 be such, not e~:ceeding three years from the date of election, as may be specified in the bye-laws of a multi-state co-operative society: 10 provided that the elected members shall continue to hold office till their successors are elected or nominated under the provisions of this act or the rules or the bye-laws and assume the charge of their office (4) no person shall be eligible to be elected as a member of the board of a multi-state co-operative society unless he is a member of the 15 general body of that 'soc~ty (5) the central government may make rules generally to provide for or to regulate matters in respect of elections of members of the board 36 notwithstanding anything contained in this act, no person shall be eligible to hold, at the same time, office of a president or chainrum 20 or vice-president or vice-chairman on the board of more than one multi-state co-operative society: holding of office in cooperativ:e socdety provided that any person holding, at the commencement of this act, the office of a president or chairman or vice-president or vice-chairman in more than one multi-state co-operative society shall, within three 2; months from such commencement by notice in wrlting signed by him, intimate the name of the multi-state co-operative society in which he wishes to 'serve and thereupon his office in the other multi-state cooperative society in which he does not wish to serve shall become vacant: , 30 "'-' provided further that in default of such intimation within the period r~red to in the preceding proviso, his offices in all the multi-state cooperative societies shall, at the expiration of the period aforesaid, become vacant 37 no person shall be eligible to hold the office of a president or 95 chairman or vice-president or vice-chairman on the board of a multi-state co-operative society, after he has held the office as aforesaid during two consecutive terms, whether full or part: provided teat a person who has ceased to hold the office of a president or chairman continuously for one full term of three years shall again 40 be eligible for election to the offices aforesaid explanation-where any person holding the office of the president or vice-president or chainnan or vice-chairman at the commencement of this act is again elected to that office <lfter such commencement he , shall for the purpose of this section, t·e deemed to have held oftice lor 45 one term before such election payment ;\;«' of honorarium 38 honorarium may be paid to the elected chairman or president of the board out of the profits of the multi-state co-operative society in respect of specific services rendered by him subject to such restrictions and condition's as may be prescribed removal of elected members by general body 5 39 an electerl member of a board who has acted adversely to the interests of multi-state co-operative society may, on the basis of a report from the central registrar or otherwise, be removed from the board upon a resolution of the general body passed at its meeting by a majority of not less than two-thirds of the members present and voting at the 10 meeting: provided that the memherl concerned shall not be removed unless he has been given a r'pasonable opportunity of making representation in the matter 40 if in spite of cessation of office under circ!umstanees mentioned in 15 section 34, ~tion 36, section 37 or section 39 a member of "he board reful'ies to vacate hi's office, the central registrar shall, by ol'der in writing, remove him from such office i | removal ||------------|| ofmem || ber || by || central || registrar |41 (1) where the central government ot a state government has subscribed to the share capital of a multi-state co-operative society or 10 has guaranteed the re-payment of principal and payment of interest on debentures issued by a multi-state co-operative l;iociety or has guaranteed the re-payment of principal and payment of interest on loans and advances to r multi-stlite co-operatlve society, the central gov'8dment 0f the state government in this behalf, as the case may be, or any person no~ iltce,u tralgov_ ernment or state government on the board !:i5 au+hol'iqed h th~ central c"rovernment or the state government, shall havf~ thp right to nominate on the board such number of persons aft may be !,rescribed , - (2) the bye-laws of a multi-state co-operative society may provide for ,the nomination of person'l in excess of the limits prescribed under sub~tion (1) (3) a pe,rson nominated undpr this l'~tjon shall hold office during the pleasure of the government by which he has been so nominated 42 (1) the board may exercise all such powers as may be necessary or exoechent for the purp'l~e of carrving out its functions under this act powers and functions of the board (2) without prejudice to the generality of the foregoing power, such s5 po·,ver shall include the power-(a) to admit members; (b) to :nte-pret the org~nisational ohiectives and 'set up speclfte goals to h 3chieved tow,lf(is these objectives; (c) to make perioiic appraisal of operation; (d) to appoint a chief executive and such other employees of f!he society (out of the list of persons referred to in sectton 50) as are not required to b~ appointed by the chief executive; 45 (e) to make provisions for re~lating the appointment of employees of the multi-state co-operative society and the scates of pay allowances and other conditions of service of, including di'sciplinary action against, such employees; ~ (f> to approve ann'ual and supplementary budget: (g) to acquire or dispose of immovable property; (h) to raise funds; (i) to sanction loans to the members; and (;) to take 'such other measures or to do such other acts as may be prescribed or required under this act meetings of the board 43 (1) the chief executive shall convene the meetings of the board at the instance of the chairman or president of the multi-state co-operative society (2) the total numher of meetings of the board in a year and the 10 venue of meetings may be such as may be prescribed: provided that the board shall meet at least once in every quarter chief ' ~ecutive ott (1) there shall be a chief executive, by whatever designation called, of every multi-state co-operative society, to 'qe appointed by the board and he shall be a full-time employee of such multistate' co- 15 operative society (z) the chief executive shall be a member of the board and of the ~uve committee and such other committees or sub-committee3 ~ maybe constituted under sub-section (1) of section 46 (3) the functional directors in national co-operative societies shall 20 also be members of the board (4) where the central government has subscribed to the extent of more than one-bah of the share capital of a national co-operative society, it shall be obligatory on such a socipty to seek prior approval of the central govemment to the appointment of chief executive and the 25 functional directors powers and 45 the chief executive shall exercif'e the powers and discharge the functions, specified below, namely:-~ functions \cdchief a-uttve, (4) day-to-day management of the business of the multi-state co-operative society; so (b) operating the· accounts of the multi-state co-operative , society and be respomrible for making arrangements for safe custody of cash; (e) signing on the dot!uments for and on behalf of the multi-state co-operative society; i 35 (d)" making _arrangements for th~ proper maint~nance of ii various books and records of the multi-state co-operatjve society - and for the correct pr<eparation, timely submh;sion of periodical ,(, statements and returns in accordance with the provisions of this act, '4! the rules and tlie bye-laws; "i 40 (e) eollvenin~ mee1inj:ts of the general body of the multi-state co-operative society the board and the executive committee and othe:r cbmmlttees (\l" 's'ub-eommittees constituterl undpr !'lllb-ser1lol1 (1) of eectlon 46 and maintaining proper records for such meetings; (1) making appointments to posts in the multi-state co-operative 4' society in accordance with the rules made under clause (e) of sub-:> section (2)" of section 42 except the p )sts in relation to which the , ,:t'v~:~' " < ~ power of appointment vests in the board under clause (d) of that sub-section,' (g) assisting the board in the fonnulation of policies ed objec-tives and planning; - 5 (i,t), furnishing t~ the board ~riodical information necespry for appral'smg the operations ami functions of the multi-state co-operative society; 10 (0 performing such other' duties, and exercisillg such other powers, as may be prescribed or as may be specified in the bye-iawl of the multi-state co-operative society, 46 (1) 'the board may, 'subject to such conditions as may be pn cribed, constitute an executive committee and other committees or subcommittees, as may be considered necessary, committees of t'he board (2) the executive committee or other committee or sub-committee 15 referred to in sub-section (1) shall perfot-m such functions as are assigned to it in accordance with the hye-iaws of the' multi-state cn-operativ:! society central government's power to live directions in the public interest 47 if the central government is' satisfied that in tjje public interest or for the purposes of sec-uring proper implementation of collo operative production and other developmental programmes approved or undertaken by the central gov~ment or to secure proper management of the business of the multi·state co-oparative 'societies generally or for preventing the affairs of the multi-state co-operative society being con ducterl in a manner detrimental to the interests of the ll;)etnbers, any 25 depositors or ereditors thereof, it is necessary to issue directions to any class of multi-state co-operative societies generany or to any multi-state co-operative society or societies in particular, the central government may isslle directions to them or t9 it, from time to time, and all such multi-state co-operative societies or the society >concerned, as the case 30 may be, shall be bound to comply with such directions 48 (1) if in the opinion of the central registrar the board of any multi-state co-operative society is persis~ntly making default or is negligent in the performhnce of the duties imposed on it by this act or the ~ules or the -bye-laws or has committed any act which is prejudicial to 35 the interests of the ~ociety or its members, or has omitted or faned to comply with any directions ven to it under section 47 or that there is a stalemate in the constitution or funetions ot the board, the central registrar may, after giving the boaj;'d nn opportunity to state its objections if any, and considerin~ 40 the objections, if received, by order in writing, remove the board and appoint one or more administrators, who need not be members of the society, to manage the affairs of the society for such period not exceeding one year, as may be specified in the order which period' may, at tne discretion of the central registrar, be extended from time to tim~; 45 so, however that the aggregate period ~s not ex'ceed two years (2) the centr<11 registrar may fix such ;remuneration for the adminfs-1rators as he mav think fit and the remuneration shall be paid otlt of the funds of th~ multi-state c~operative ~lety (3) f'the administrator shall, 'subject to the control of the central 50 registrar and to such instructions as he may from time to time give, have- power to ~xerc~f' all or an~ of the functions of the board or of / any officer of the multi-state cooperative society and take all such actions as may be required in the interests of the ·so~iety (4) save as otherwise provided: in sub·section (5), the administrator shall, before the expiry of his term of office, arrange for the c?nstitution of a new board in accgrdance with the bye-laws of the multi-state co· 5 operative society (5) if at any time during the period, the administrator is in office, the central registrar considers it necegsary or expedient so to do, he may, by order in writing giving reasons therefor, direct the admini~trator to a;rrange for the constitution of a new board for such multi-state j 0 caoperative society in accordance with the bye-laws of such soci~ and immediately on the constitution of such board, the administrator shall hand over the management of such society to such newly constituted board and cease to function (6) where a multi~tate co-operative society is ~ndebted to any 15 financial institution, the centr&l registrar shall, before taking any ~ction, ' under sub-section (1) in r~ of that society, consult the financial idstitution , (7) notwithstanding anything contained in this act, the central registrar shall, in the case of a co~opera~ive bank, if so required in 20 writing by the reserye bank in the public interest or for preventing the affairs of the caope11ltive bank being cqp-ducted in a manner detrimental to the interesta of the depositors or for~~securing the proper management of a co-operative bank, pass an order for the supersession of the board of that co-operative bank and for the appointment of an administrator therefor for ,such period qr ,periods not exceeding five years in the 25 aggregate as may from time to time be \;pecifted by the reserve bank 49 (1) if-securing ,jlcisleulon ofreeol'cis, etc: «(i) the records (including registers 1lnd books of accounts) of a multi-state eaoperative society' are likely to be tampered with or 30 destroyed or the funds or other property of such society are likely to be misappropriated or misapplied; or (b) the board of a multi-state 'co-operative 'society is reconstt ruted at a general meeting of the society; or (e) the board of a multi-state co-operati~ society is removed :$5 by the central registrar under sub~ction (1), of section 48; or (d) a multi·state co-o~at1tf society ·is ordered to be wound; up under section 77 and the outgoing members of the board refuse to hand over charge, of the record's and property of the society to those having, or entitled to receive such charge, 40 ~e central registx:ar may apply to the magistrate within wh~e jurisdiction the multi-state co-operative society functions for 'secojring the r~cords and property of the society (2) on receipt of an appli<:ation under sub-section (1), the magistrate' may, ~y :a warrant, authorise any police officer not belovi the rank of a sublnspector to enter and search any place where wch ret'ords and 45 property are kept or are believed to be kept and to seize such records and property; and the records and, property so seizt!d shall be handed over to the new board or administrator of the :tnultistate' co-operative society or the liquidator, as the case may be, (s) every such search and seizure shall h~ ,made in accordance· with 50 the provisions of the code of criminal proce~un 1973 " : ' 50 the central government shall-(a) constitute a body of persons in the manner prescribed for the preparation of a list of persons eligible for appointment to the body of posts of chief executives and other managerial posts in national i:::~~ 5 co-operative societies', ,the maximum p3y-scale of whicih exceeds paration such amount as may be prescribed; ot list, ' (b) make rules for regulating the recruitment, remuneration, etc allowances and other conditions of service of officers and other einployees of nationalco-operative societies 10 51 no act of a multi-state co-ope,rative society or of any board or ~f an,y committee or of any o~cer of the 'society shau bed~med to be lnvahd by reason only of the existence of any defect in the procedure or in the co~stitution of the society or of the board or of the committee thereof or in the appointment or election of an oftloer or on the ground 15 that such officer was disqualified to hold office , \ :-| acts | of ||------------|-------|| multi- | || state | co- || operative | || locieties | || not | || to | || be | || jdvalidat- | || ed | || by | || certain | || defects, | | chapter v privileglls of multi-state coopmatlve socie'nes52 the registration of a multistate co-operative society shall render it a body corporate by the name under which it is registered having multiatatecooperative lociety to be body corporate ~o perpetual succession alld a commoo seal" and with power to hold property, enter into contract, institute and def,end suits and other legal proceedings and to do all things necessary for the purposes for which it is constituted charle and set-off in respect otshare orcontrj-bunon or 4lterest otmem- ber • share or codtri· butjoa or interelt not liable toattacb· mom t53 a multi-state co-operative society shall have a chargeon the !lt5 share or contribution or interest in the capital and on the deposits of a member or past or decessed member and on any dividend, i bonus or profits payable to a member or past ,member or the estate of a deceased member in respect of any debt due from such member or past member, or the estate of such deceased member to the society, and 30 may se~-off any sum cr,edited or payable to a member or past member or the estate of deceased member in or towards payment of any such debt-54 (1) subject to the provisions of sectioft 53, the share f)r contribution or interest of a member or past or deceased member in the 35 capital of a multi-state co-operative society lihall not be liable to attachment or sale under any decree -or order of any court in respect of any debt or jiability incurred by such member, and an official assigrieeor a ,receiver under any law relating to insolvency shall not be entitled to or have any claim on such share or contribution or interest 40 (2) the reserve fund, or the bad debt reserves, or the provident , fund of the employees, of a multi-state co-operati~ society invested by such society in accordance with the provisions of this act and the rules shall not be liable to attachment under any decree or order of a court in respect of any debt or liability incurred by the 'society kepler ol,~ 55 any register qr list of members or shares kept by any multi-45 state co-operative society shall be prima 'facie evidence of any of the following particulars entered therein, namely:-(a) the date on which snyperson entered in such register 6r list became a member; (b) the date on which any such person ceased to be a member tlnlty of entry" evidence 56 (1) a copy of any entry in a book of a multi-state co-operative society regularly kept in the course of its business shall, if certified in such manner as may be prescribed be received in any suit or legal proceedings as prima ftjcie evidence of ,the exi'$t\id<:e of such entry an~ shall 5 be admitted as evidence of the matters, transactions and accounts therein recorded i~ every case wh~e, and to the 'same exrent as, the original entry itse1f is admissible {2) no officer of a multi-state co-operative society and no officer in whose office the books of a multi-state co-operative society are deposited 10 ,after liquidation shall, in any legal proceedings to which the 'society or the liquidator is not a party be compelled to produce any of the society's books or' documents the contents of which can be prove:! under this section, or to appear as a witness to prove the matters, transactions and accounts therein recorded, except under an order of a court or an 15 arbitrator made for a special cause ' 51 nothing in clauses (b) and (c) of sub-section (1) of section 17 of the registration act, 1908, shall apply tol~of 1908 exemption from com-(a) any instrument relating to shares in a multi-state cooperative society notwithstanding ,that the assets of the society 20 consist in whole at' in part of immovable property; or puliory~ gistration of instrumonu (b) any" debenture issued by any such society and not creating declaring, assigning limiting or' extinguishing any right, title or interest to or ·in immovable property, except in so far as it entitles the holder thereof to the security afforded by a registe{ed instrument whereby the society has mortgaged, conveyed or \ ot~erwise 25 transferred the whole or p~t of its immovable property "or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or (c) an endorsement upon or trander of any" debenture issued 30 by any such society "1eductiod 58 (1) notwithstanding anything contained in any law for the time from' ' being in force, a member of a multi-state co-operative society may salary to executive an agreement in favour of that society providing that his em-=i-state ployer disbursing his salary or wages shall be competent to deduct every 35 c:o-operatlft month from the salary or wages payable to him, such amount as may eoclety' be specified in the agreement and to pay the amount so deducted to the clllim in society in satisfaction of any debt or other demand owing by the member certain to the society caiei (2) on the execution of such agreement, the employer disbursing 40 the salary or wages of the members shall, if 'so required by the multi-state co-operative society by a requisition in writing and so long irs the society does not intimate that the whole -of such debt or other demand has been paid, m8kethe deduction in accordance with the agreement and pay the amount so deducted to the society within a periodot fourteen days of the date on which deduction has been made 45 as if it were a p8,1't of the 'salary or wages payable on the day as re-'quired under the payment of wages act, 1936, and such payment shall be valid dischlu'ge of the employer for his liability ,to pay the amount deducted , (3) if after the receipt of a requisition made wld<er sub-section (21), the employer disbursing the salary o,r wages of the member at any time fails to deduct the amoull·t specified in the requisition from the· salary or wages payable to the member concerned or makes default in r~, 5 mitting the amount deducted to the multi-stateco-operative society the society shall be entitled to recove,r any such amount from such empioyer as arrears of land revenue and the amount so due from such employer shall rank in priority in respect of the liability of such employer equal to that of the salary or wages in arrears, 10 59 notwitbstanding a,'lything co_oed iu any law ior dietime being in force, the central g01'enament ol' a sbitc government may, with a view to prome, 'jog co-operafive idovemelit,-(a) subscribe to the share capital of a idulti-state co-opencife society; government aid to multi-state cooperative societies, j 5 (b) pve loi\ds or make aclvantes to a mujdste cchpel'ltive society; (c)gu&i'antee the repayment of; principal aod payment 01 idierest on 4ebedtures issued by a multi-&ate co-ojlft1h:ive soci)'; llo (d) ~ the repayment of s1we capital of nwl1i-state co-opet'8dve iociety and dividends thereon at sucb rates as y be apecified ~ the central govenuneot or tile state govel'lllmtllt; ee)' guarantee tbe repayment of principal aod payment ,of interest 08 ioon5 and advances to a multi-state co-operauve 8odety; (f) give financial a<;sistance in any other form, lociuciing subsidies, to multi-state co-operadve society chapter vi properties anii funds of multi-state co-opebative socijr1'ies60 (1) no part of the funds, other than net profits, of a multi-state co-operative society shall be divided by way of bonus or dividend or 30 othenvise distributed among its members funds not to be divided bywa, of profit (2) the net profits of a multi-state co-operative society referred to in sub-section (1) in respect of a society earning profits shall be calculated by deducting from the gross profits for the year, au interest accrued and accruing in relation to amounts which are overdue, establishment 35 charges, interest payable on loans and deposits, audit fees, wotking expenses inclu,ding repairs, rent, taxes and depreciation, bonus payable to employees uncler the law relating to payment of bonus for the time being in fo,rce, and equalisation fund for such bonus, provision for payment of income-tax and making approved donations under the income-tax act, 43 011961 40 1961, development rebate, provision for d~velopment fund, bad debt fund, price fluctuation fund, dividend equalisation fund, share capital - redemption fund, investment fluctuation fund, provision for retirement benefit;; to employees, and after providing for or writing off bad' debts and 106ses not adjusted against any fund created out of profit: 45 provided that such society may, add to the net profits for the y~, interest accrued in the preceding years, but actually recovered dwinl the year: prov'l'ded further that in case of such multi-state co-operative societies as do not have share capital, the surplus of income over expenditure shall not be treated as net profits and such s'lttplus shall be dealt with 50 in accordance with the bye-laws if' 61 (1) a multi-state co-operative society shall, out of its net ~ts in any year-(a) transfer an amount not less than twenty-five per cent to the reserve fund; and (b) credit such portion, as may be pt'etleribed, to the co-operative 5 education fund maintained by the national co-operative union of india limited, new delhi (2) subject to such conditio~s as may be prescribed, the ~alance of' the net profits may be utilised for all or any of the following purposes, namely: - 10 , , (a) payment of dividend to members on their paid\up share capital at a rate not exceeding the prescribed limit; (b) constitution of, or contributi~n to, suclh special funds including education funds, as may be specified in the bye-laws; (e) donation of amounts not exceeding five per cent of the r5 net profits for any p111'pose connected with the development of - co-operative movement or charitable purpose as defined in section 2 of the chart table endowments act, 1890; 6 of 1890 (d) payment of ex gratia amount to employees of the mu1ti-state co-operative society to the extent and in the manner specified 20 in the byl!-laws (3) the funds of a multi-stae co-operative society shall not be utilised for any political purpose 62 a multi-state cqo()perative society f~ may' invest or deposit its 25 investmentor funds (a) in a co-operative bank, state co-operative bank, co-operative land mortgage bank, co-operative land development bank or central c<h>perative bank; or (b) in any of the securities specified in section 20 of the indian tr,usts act, 1882; or so2oflaaz (q in the shares or securities of any other multi-state c0-operative society or any co-operative soeiet\y; or' (d) in the shares, securities or assets of any other imtitution, with the previous apprqval of the centra~ registrar; or (e) with any bank; or :j5 <f) in such other mode as may be ,prescribed explanation-in clause (e), "bank" means any banking company as ~fined in claule (c) of section 5 of the banking regulation act, 1949, and includes,-10 of ih9 (i) the state bank of india constituted under the state 40 bank of india act, 1956; 23011915 38 of 1~59 " (ii) a subsidiary bank as defined in clause (k) of section 2 of the state bank of india (subsidiary banks) act, 1959; , (iii) a corresponding new bank constituted under section 3 of the· banking companies (acquisition and transfer of under- 45 takings) act, 1970 or a corresponding new bank constituted under ii of 19'70 section 8 of the banking companies (acquisition and transfer of undertakings) act, 1980 to tiling 13 (1) a mu1u-state co-operatiw 'society, other than a co-operatlve bank, shall not make a loan-, ~ reatr1etionson loans (a) to a member on the security of his share or on the security , of a non-member; or 5 (b) to a non-member: provided that with, the general or special sanction of the central registrar, a multi-state co-operative ~ociety' may i\'lake loans to another multi-state co-operative society (2) notwithstanding anything contained in 'iu:b-section (1), a multil 10 state co-operative society may make a loan to a depositor on the security of his deposit 84 a multi-state co-operattve society shall ret1e!ive deposits and loans only to such extent and unde-,r oguch conditions as may be specified in the bye-laws: restrktiona on borrowin, ]0 of 1949 15 provided that a co-operative bank shalt be governed by the provisions of the banking regulation act, 1949 65 save as provided in sections 6'3 and 64 the transaction of a multi· state co-operative s~iety with any person ~ther titan a member 'shall be subject to such prohibitions and i restrictions if any as may be 20 ptrescrn:>ed restrie-uobson other transactionswlth doftmembers contributory provident fund 66 (1) a multi-state co-operative socnety' having such numper or class of emp]oye~ as may be prescribed may establish a contributory provident fund for the benefit of such employeesto which shall be credited 'all contributions made by the employees and the society in 25 accordance with the bye~lawsof the i'ociety (2) monies standing to the credit of any contributory provident fund established by a multi-state co-operative society under suh-'section (1) shall not- (a) be used in the business of the society; 30 (b) form part of the qssets of the society; , (c) be liable tq attachment or 'be subject to any (,lther proce of any court or other authority (3) notwithstanding anything'contained in this section, a provident fund estabji~hed by a mult-state co-operative society to which tbe 35 prqvfsions of the emplo~' provident funds and miscellaneou8 provi-sions act 1952 apply, 'shall be governed by that act 19 of 191j2 chapl'er vii audit, inquiry, inspection and surcharge67 (1) the centra1 registrar shall audit, or cause to be audited 1jy audit 40 a person ,authorised by him by general or 'special ordet' in writing in this behalf the accounts of every multi-81ate co-operative aocfety at least once in each year (2)'e audit und£'r su~tion' (1) shall include an examination of mrerdue debts, if any the verification of tl'ie cash balance and securitieij, :25 and a valuation of the assets :mrl liabiuties of the multi-state co-operative society, " (3) the p~son auditing t1re accounts of a multi-state co-operative society shall have free access to the,books, accounts, papers, vouchers, stock an~ other property of such society and shall be allowed to verify its cash balance and securities (4) the directors, managers, administrators and ()th~ officers of t~ 5 multi-state co-operative soci~ty shall furnish to the person auditing the accounts of the society all such infonnat1oh as to its transactions and working as such person may require (5) the central registrar or the person authorised by him under sub-section (1) to audit th'e accounts of a mult1-state co-operative society i () shall have power where neccssary-(a) to summon at the time of the audit any officer, agent, servant or member of the society, past or present, who, he has reason to believe can give valuable mformntion in regard to transactions of the society or the manag(!mcnt of the affairs; and j 5-(b) to require the production of any book or d~cument relating to the affairs of, or any cash or securities be~onging to, the society by any officer agent, servant, or member of the society in possession of 'such books, do cum en ts cash or securities and in the event of serious irregularities discovered during audit to take them into 20 custody (6) if at the time of audit the accounts of a multi;state co-operative soci~ty are not complete, the central registrar or the per~n authorised by him under sub-section (1) to audit may cau'se the accounts to be written up, at the expense of the society 25 (7) audit fee, if any, due from any multi~tate co-gperative society shall be determined by the central registrar and shall de recoverable in the sam~ manner us is provided' in section 89 inspection of multi ~, state co_ 68 (1) the central registrar, or any person authorised by him by genehl or special order in, writing in this behalf, may inspect a multi- 30 state co-operative society o~rative societies (2) (a) for the purpose 'of inspedtion unde~ sub-section (1), 'the central ~egistrar or the person authorised by him under that sub-tsection shall at all times have access to all books, accounts, papers, vouchers, securities, stock and other property of that society and may, in the 3~ event of serious irregularities discovered during inspection, take them into custody and shall have power to verify th~ cash balance of the society and subject to the general ql" special order of the central registrar to call a meeting of the board and also a general meeting of the society wh~ such general meeting is, in his opinion, necessary '40 ~'(b) every officer or member of a multi-state co-operative society shall furnish such information with regard to the working of the society as the central registrar or the person making such inspection may require (3) a copy of the report 8f inspection und~r this secti~n ~\o\'l be communicated to the multi-state co-operative society within a period of three months from the date of completion of sllch inspection 68 (1) the central registrar may, of his own motion or on the application of a majority of the members of the board or of not less than one-third of the members, hold an inquiry or direct some person authorised, by him by order in writing in this behalf to hold an inquiry 5 into the c~nstitution, working and financial condition of a multi-state co-operati v'e society (2) the!' central registrar or the person authorised by him under sub-section (1) shall have the following powers, namely:-(a) he shall at all reasonable times have free access to the books, 10 accounts, documents, securities, cash and other properties belonging to or in the custody of the multi-state co-operative society and may summon any person in possession or responsible for the custody of any such books,accounts, documents, securities, cash or other properties to produce the same, at any place specified by him; 15 20 - (b) he may, notwithstanding any rule 'or bye-law specifyplg the period of notice for a general meeting of the multi-state co-operative society, require the officers of the society to call a general meeting of the society by giving notice of not less than seven jays at such time and place 'at the headquarters of the society to consider such matters,as may be directed by him; and where the officers of the society refuse or fail to cab such a meeting, he shall have power to call it hamself; (c) he may summon any person who is reasonably believed by him to have any knpwledge of the affairs of the multi-state co-opera-25 tive society to appear before him at any place at the headquarters of the society or any branch thereof and may examine such person on oath (3) any meeting called under dause (b) of sub-section (2) shall have all the po~crs of a general meeting of the society called under the bye-ju laws of the society and its proceedings shall bf! regulated by such byelaws (4) the central registrar shall within a period of three months of the date of receipt of the report, communicate' a brief summary of the report of the inquiry to the multi-state co-operative society the financial 35 institutions, if any to which the society is affiliated, and to the person or authority, if any, ~t whose instance the fnquiry iii made ' 70 (1) the central registrar shall, 011 the application of a creditor of a multi-state co-operative, society, inspect, or direct some person authorised by him by order in writing in this behalf to inspect, the 40 books of the society: provided that no such inspection shall be made 'unless the npplicant-ijl~pcctiuno! books ot indebted multi· state cooperative sodot!p~ ",{ ia) satisfies' the central registrar- that the debt is a sum then due, and that he has dem~nded payment thereof and has not received satisfaction withiil a reasonable time; and (0) depotiits with the central registrar such sum as security for the cost:; nf the prop·oed inspection ad -the central registrar may • require (2) 'i'he central registrar shall communicate the :result of any such 'inspection to the creditor 'j' costsot influlry an41ft ip4iction 71 where an inquiry ,is held under section 69 or an inspection is made under section 70, the central registrar may apportion the costs, or such , part of the 'costs, as ~e may think fit, between the mljlti-state co-operative 5 society, the membel's or creditor demanding an inquiry ~ inspection, and the offirefs or former officers and the members or past members of that society: provided that-'(a) no order 1)£ apportionment of the costs shall be made -under 10 this section unless the society or the person liable to pay the costs thereunder has' had a, reasonable opportunity of being heard; (b) the central registrarshall state in writing wlder his own hand the grounds on which the costs are apportioned ltflccl\'ery of costs 72 any sum awarded by way of costs under section 71 may be re- i ~ covered, on application to a magistrate having jurisdiction in the place , where the person, from whom the money i's claimable, actually and, vo:luntarily resid~ or ,carries on business, and such magistrate shall recover the same as if it were a fine imp0'5ed by himself repayment ete - 73 (1) ,if in the course of an audit, inquiry, inspectioll 0,1' the winding :,z;) up of a multi-state co-operative society, it is found that any person, who is or was enti'lls~d with the organisa~on or management of such 'society or whois or has at any time been an officer or an employee of the society luis made any payment contrary to this act, the rules or the bye-laws, or has caused any deficiency in tl\'e assets of the society by breach of 25 trust or wilful negligence or has misappropriated or fraudulently retained any money or other property belonging to such society, the central registrar may, of his own motion or on the application of ,the board, liquidator or any creditor, inquire himself or direct any person authorised by him, by an order in writing in this behalf, to inquire into the conduct 30 of su(!h person within a period o~ two years from the date' of the report of the audit, inspection oj' inquiry or the· date of the order of winding -up, as the'ease may be: provided that w~ the central registrar is satisfied that sucl1 i,n,qnirycould not be commenced during the period of two' years afore- 35 said on account of fraud or concealment of facts make, or direct the inquiry to be made, within such period' not exceeding six years from 'the date of the report of the audit, inspection or inquiry or the date of the order o! winding up, as he may think fit (2) where aninq~y is'made ulld'<'!l' sub-section (l), the central 40 registrar' may', after gtving ,the person concerned a reasonable opportunity of being heard, make an order requiring him to repay or restore the money or property or any part thereof, with interest at such rate, or to ftay contribution and costs or compensation to such extent as the c-entral r&gistrn,r l1,lily ~r~nsidcr ju~j; ,md ;quitable '45 74 (1) "notwithstanding /iulything contained 10 any other law £o~ the time being in force, if any djk'u~ (other than 8 dispute regarding dis-5 ciplinary action taken by a mufti-stateco-operat~e· society against its paid employee or an industr:al dispute as defined in clause (k) of seetion·2 of 140f 1947 the industrial disputes act, 1947) touching the con'3titution, management or business of a multi-state co-operative society arises- (a) among members, past members and persons claiming through members, past members and deceased members, or 10 - 15 (b) between a member, past member or a person claiming through a member, past, member or deceased member and the multi-state co-opera'tive society, its board or any officer, aglent or employee of the multi-state co-operative society or liquidator, past or present or (c) between the multi-state co-operative society or its board and any past board, any officer, agent or employee, or any past officer, past agent or past employee or the nominee, heirs or legal representatives of any deceased officer, deceased agent or deceased employee of the multi-state co-overative society, or 1ii0 (d) between the multi~state co-operative society and' any othat rnulti-state co-operative society between a multi-state co-o~ative society and liquidator of another iilulti-state co-operative society or between the liquidator of one multi-state co-operative, society and the liquidator ot another mljlti-state co-operative society, such dispute shall be referred to the central registrar fqr decision and no c~urt shall have juhsdiction to entertain any suit or other proceedings in respect of such dispute: provided that all disputes in which a national co-operative society ia 30 a party shall be refe,rred to the cer:ttral registrar or any officer em· powered to exercise ithe powers of the central registrar (2) :ror the purposes of 8ub-section(1), the following shall be deemed to be d~sputes touching the constitution, management or the b11sinew of a multi-state co-operative societyj name1y':-35 (a) a claim by the mu1ti-state co-oper!1tive sociey for any debt 01' demand due to it from a member or the nom:ne!e, heirs or legal representatives of a creceased member, whether such debt or demand be admitted or not; (b) a claim by a surety against the principlil deb~ where the multi-state co-operative society has recov-ered from the surety any amount in respect of aay debt or dema!1d d'ue to it from the principal debtor as a result of the default of the principal debtor, whether such debt or demand is admijted or not; (c) any dispute arising:u; ~e~tl,w11h' ~ eletltio~ qt'sdf ~ ~uji-~te ,~atiw ~ 45 limlta \ion i (3) if nny question arises whether a dispute referred td tlie central - registrar is or is not a dispute touching'the constitution, m~agement or business ofa multi-state c~operative society, the decision thereon of the central registrrr 'iiha11 be final and shall not be called in question in any ~~ , 5 ~ 75 (1) notwithstanding anything contained in the limftation act,' 1963, but subject to the specific provisions made in thi$ act, tit; period of ~6 of 1963 limitation in the case of a dispute referred to the central registrar ~han,- (a) when the dispute relates to the recovery of any swn includ- 10 ing, interest thereon due to a multi-state co-operative society by a , , member thereof, be compuued from the date on which such member ,dies or ceases to be a member of ithe 'society; , (b) save as otherwise provided in clause (c), when the dispute relates to any act or omission on the part of any of:the parties 15 referred to in clause (b) or clause (c) of sub-section (1) of section 74, be six years from the date on which the act or omission, with reference to which the dispute arose, took place; (c) when the dispute relates to a multi-state co-operative society which has been ordered to be ,wound v-p under secti,on 77 or in 20 respect of which an admini'strator has 'been appointed under section 48, be six years from the date of the order issued under section 77 or section 48, as the case may be; - (d) when -the dispute -is in respect of an election of an officer of a multi-state co-operative 'society, be one month from the date of 25 the declaration of the result of ,the election (2) the period of limitation in the case of any dispute, except 'those mentioned in sub-section (1), which are required to be referred to the central registrar shall be regulated by the provisions of the limitation act, 1963, as if the! dispute were a suit and the central registrar a go 36 of 1963 civil court "(3) +iotwithstanding anything contained in sub-sections (1) and (2), the central registrar may admit a dlispute after the expiry of the period of limitation, if the applicant satisfies the central registrar that he had sufficient cause for not rt!ferring the dispute within such pe~iod 35 76 (1) the central reg,istrar may, on receipt of the reference ;0£ dispute under section 74-· settlementof disputes :,,4, ~,-(0) elect to decide the dispute himself; or - (b) tranosfer it for disposal to any other person' who has been invested by the central go~rnment with powers in that behalf (2) the central registrar may withdraw any reference transferred under clause (b) of sub-section (1) and' decide it hhnselfor refer the ~~ for ~ecis!on td any ffl!erjusoq whcl has been in~~d by the ce'n frat governm~n~ wfth power~ lj1tltafbe~'aff , , ' ,', ", , er,'" ," ,' (3) the ceritral registrar or any other person to whom a dispute is referred for decision under this section may, pending the decision of the dispute, make such interlocutory orders as he may deem necessary in the interest of justice -chapter ix winding up of multi-state co-operativjij socien~77 (1) if the central-registral', after nn inquiry has been held under section 6!} or an inspection has been made under section 70, or on receipt of an application made by not less than three-fourths of the winding up of multi-statecooperative societies 10 member~ of a multi-state co-operative'society, is of opinion that the 'society ought tl) be wound up, ~e may, after giving ,the society a reasonable opportul}ity of making its representations, by order, direct it· to be wound up (2) the central registrar may, of his own motion and after giving 15 the multi-state co-operative society a reasonable opportunity of making its representations, make an order directing the winding up of the multi-state co-operative society- (a) where it is a condition of the registration of the soc:ety that the society shall consist of at least fifty members and the number·of 20 members has been reduced to less than fifty; or " (b) where the multi-state co-operative society has not commenced working within a period of six months of the date of its registration or such extended' period as the central registrar may allow in this behalf or has ceased to flulction in accordance with co-25 operative principles (3) the centrd registrar may cancel an order for the winding up of a multi-state co-operative society, at any time, in any' case where, in his opinion, the- society should continue to exist (4) a copy of ~-ilch order shall be communicated by registered post 30 'to the multi-state co-operative society and to the financial institutions, if any, of which the society is a member (5) notwithstanding anything contained in this section, no c~operative bank shall be wound up except with the previous sanction in writing of the reserve bank 35 78 notwithstanding anything to the contrary contained ·elsewbet'e in this act, the central registrar ,shall make an order for the wlndjag up of a co-operative bank, if so required by the reserve bank in the circumstances mentioned in section 13d of the deposit insurance add credit guarantee corporation act, 1961 winding up of co-ope tive hlulks at thedireetum of relerve bank_ ''i of 1981 , 47 of 1961 reimbursement to thej deposit insurance corporationby uqlu4t\qt 40 79 where a co-operative bank, being an insured bank wit:hin the meaning of the deposit insurance and credit guarantee corporation act, 1961 is wound up and the deposit insurance corporation ~as become llabie to the depositors of the in~ul'ed bank under su~lon (1) of 16 f tha" act the deposlt insurance corporation shall be resecbon 0 u , th ci ta· b d b the llquidator or such other persoll in e rcums neeli, 4a = t:s:xte~ and in tb'8 manner provided in section il q( ~ at:t - liquidation lh; (1) where the central registrar has made an order under sec\jn 77 for the winding up of a multi-state co-operative society, the central registrar may appoint a liquidator for the purpose ll'1d fix his remuneration (2) a liquidator shall, on appointment, take ,into his custody or ujlder 5 his control all the property, effects and actionable claims to which the multi-state co-operative society is or appears to be , , entitled and shall take such steps as he may deem necessary or expedient to prevent loss or deterioration of, or damage to, such property, effects and claims and he may carry on the business of th~ mu11i-state co-opera- 10 tive society so far ~ may be necessary ,with the previous approval of t~e central registrar ' " (3) where an appeal is preferred under clause (k) of sub-section (1) 9f section 90, an order for the wjnding up o~ a rpuw-state co-operative society made under section 77 shall not operate thereafter until ,the order 15 is confirmed in appeal: provided that ,the liquidator shall continue to have custody or control of the property, effects and actionable claims mentioned in sub-'section (2) an~ have authqtity to take the steps referred to in that sub,;section t4) where an order for the winding up of a multi~state co-operatiye 20 society is set aside in appeal, the property, effacts and actionable claims of the society shall re-vest in the society powers of 1iipidatcii 81 (1) subject to any rules made in this behalf, the whole of the assets of a multi-state' co~perative society in respect of which an order for winding up has '~n made, shal1 vest in the liquidator appointeo 25 under section 80 from the date on which the order takes effect and the liquidator shall have ;power to realise such assets by 'sale or otherwise (2) such liquidator shall also have p~wer, subject to the conkol of the central registrar-(a) to institute and def~nci suits and other legal proceedings on 30 behalf of the multi-state co-operative ~ociety by the name of his office; , , (b) to determine from time to time the contribution (including de~ts que and costs of liqufdation) to be made or remainmg to be ina(le by the members or past members or by the estates or nominees, 35 heirs or legal representatives of deceased members ox by any oftlcera or fonnerofficers, to the assets of the multi-state co-operative ~~; (c) to investigate all claims against the multi-state co-operative samet, a~d'subject to the provisions of ,this act, to decide questions 40 of prlarity arising between claimants; ' ' -(d) ,to pay cla-ims against'the multi-state co-operative society, including interest up to the date of winding up according to their respective priorities; if any, an full or rateably, as the assets of the society may ,permit; the 'surplus; if any, remaining afw payment 4-5 of ~,-<:1aijns, being ,applie~in:,payment of interest from the c1a1e of \ eucb order of 'winding up at a rate fixed by him but ndt e:kceedid~ the contract rate in my case; '"'i i' ,-;l to determi :~,~! what persons and in what proportions the costs of theliqutdation are to be borne~ (f) to determine whether any person is a member, past member or nominee of a deceased member: 5 (gr to give 'such directions in regard to the collection and distdbution 01 the assets of the multi-state cd-operative society as may appear, td him to be necessary· for winding up the affairs of that society; 10 (h) to carry on the business of the multi:state co-:-operative society so far a's may be neces$ary for the ;beneftcial winding up of the same; (i) to make any compromise or arrangentent with creditors or persons claiming to be creditors or having or alleging to have any claim, present' oj,' future, whereby the multi-state co-operative society may be rendered liable; 15 (j) to make any compromise or arrangement ~ith an:' person between wllom and the multi-state co-operative society there exi'sts any dispute and to refer any such dispute for decision; (k) after consulting the members of the multi-state co-operative society, to jiispose of the surplus, if any, remaining after paying the claims against the society, in such manner as may be prescribed; (l) to compromise all calls or liabilities to calls and debts' and liabilities capable of resulting in debts,· and all claims, present or future, certain or contingent, subsisting or alleged to be subsisting between the, multi-state co-operative society and a contributory 01' ,other debtor or person apprehending liability to the multi-state \::o-operative soci~ty and all questions in any way relating - to or affecting the assets or the winding up of the society on such terms as may be agreed and take any security for the, discharge ot any s\lch call liability, debt or claim and give a complete discharge in respect thereof (3) when the affairs of a multi-state co-operative society hay~ been wound up, the liquidator shall make a report to the central regbtrar and depo'sit the recordt; of the society in such place as the 'central 35 registrar may direct, 82 the surplus ~ssets as shown in the report of a uqutdaoor of a multi-btate co-operative society which is wound up,-' (a) fuay if the bye-laws o( the multi-state co-operative ''society specify the purpose for which surp!lus shall be utufsed be utiused bv the centnd registrar for the said pui'j'9se, and ~ (b) if the bye-laws aforesaid do not specify the purpose, be divided by the central registrar, with the pl'cvious sanction of the central government, :1rno~,gst, the member:;, of such multis~ate ro'-ovc'l"afiw se'cje~' in ~lid'1 manner b:; may be p~~, ,;: ofcaatr1-13 notwithstanding anything contamt:d in any law relating to in-1 40:1 trib tion assessed l a liquidator shall rank next to 'so veney iile con u ,"'1 ,1 1 debts d~e to the central governm'!nt or a state government or a oca authority in accordance with the order of priority in insolvency pro<,'ecdjngs >",," ' buttons ·assessed' byliquidator m (1) the central registrar may, after considering the report of the liquidatar made to him under sub-section (3) of section 81, order the regiitration of the multi-state co-operative society to be cancel~ed and on such cancellation, that society shall stand dissolved power of central registrar to aance' reg/atrationofa multi-state co-operative socjet;, (2) an order passed under sub-section (1) shall be comm~lcated by 10 registered post to the president of the mu1tist~te co-oper~t1ve society and to the fjnancjal institutions if any, of which the society was a member chapter x becu- tionof ' exlx:trrion of dijcriies, orders and decisions 85 every decision or order made under s';!ction '30 section 31, seetion 73, section 76 section 90, section 92 or section 93 shalt, if not cai-ried out,- qeeisions, eic (4) on a certificate signed by the central registrar or any person authorised by him in writing in this behalf, be deemed to be 110 a dec:ree ot a civu court and shall be executed in the same manner as if it were a decree of such court; 'or (b) where the decision or order provides for the recovery of money, be executed according to the law for the time being in force for the recovery of arrears of land revenue: ' r~ provided that any application for the recovery in such manner· ot any: sum 'shall be made-(0 to the collector ~nd shall be accompani~ by a certificate sispled by the central registrar or by any person authorised by him in writing in this behalf; ',' 30 '1 \ (if) within twelve years from the date fixed in the decision or order and if no such date is fixed, from the' date of the decision or order, as the case may be; or (c) be executed 'by the central regilitrar or any person author~, by him in writing in this behalf, by attachment and sale or 35 sale without attachment of any property of the person or a multi state co-operative society against whom the decision or order has been made executiq~ot , - :' every order made by the liquidator under section 81 shall be executed according to the law for the time being in force for the recovery 40 of arrears of land revenue orde~sof jiqwutor' ,87 (1) where th~ central registrar is satisfied that a party to any' reference ma~e to him qnder section 74 with inten t to defeat or delay the execution of any decision that may be passed thereon is about to-attachment \ bef0t:e ~ward tor (4) disp~se of the' who~e or any part of the property; or 45 , ~b) rem~ve the whole or any part of the property from its ~tll\g'1lftculcts," - ' the central registrar may, unless adequate 'security is furnished, direct conqitional attachment of the said property or such part theh!of as he thinks necessary (2)' the attachment under subsection (1) shall be executed by a 5 civil court having jurisdiction ip the same way as an attachment order passed by it~elf and shall have, the same effect as such order 88 the central registrar or any person authorise<;t by him in writing in this behalf shall be deemed, when exercising any powers under this act for the recovery of any amount by: the attachment and sale or by 10 sale without attachment of any property, or when passing any orders on any application made to him for such recovery or for taking a step-ln~aid of such recovery, to be a civil court for the purposes of article 186 of the 36 of 1963 ~ schedule to the limitation act, j 963 central rt-klstrlr or ftle person author!sedby him to be civil court tor certain p!jrposel ~, recovery of unu ;~ duetn , government st (1) all sums due from a m~lti-state co~operative society, or from - 15 an oftlcer or member or past member of a multi-state co-operative society, to the central gov,rnment or ,a state government, including any cost awarded tll the central government or the state government, as the case may be, under any provision of this act, may, on a certificate ,issued by the central registrar in this behalf, be recovered in the same ao manner as arrears of land revenue i appeal (2) sums due from a multi-state co-0p,8rative society to the central government or 11 state government and recoverable under sub-section (1) may be recovered firstly trom the property of the society and secondly from the m~mbers, pat members' or the estates of deceased 15 members, subject to the limit of their liability: ' provided that the liability of past members and the estate of deceased members shall in all cases be subject to the provisions of section 28 chapter xi appeals and revision 50 10 (1) subject to the provisions of section 91, an appeal shall lie under this section ngainstfa) an order made by the central registrar under 'sub~secti9n (2) of section 7 refusing to register a multi-state co-operative society; (b) an order made by the central registrar under sub-section 35 (4) of section 9 refusing to register an amendment of the bye-law of a multi-state co-operative society; (c) a decision of a multi-state co-operative society refusing or deemed to be refusing under sub-sectipn (5) of section 19 to admit any person as a member of the society who is ot~e;rwlse duly 40 qualified; for membership under tne bye-laws of the society; (d) a decision of a multi-state co-operative society u~der subsection (1) of section 21 expelling any of its members; (e) a decision of a multi-:state co-operative society removing an elected member of a board under section 39; 45 <i> an order made by the central regirtrar under section 40 removing a member from his oftlce~ " , (g) an order made by ~he central registrar under section 48 superseding the board of directors of a multi-state co-operative ~" 50 society; l (h) an order made by the central registrar under section 71 apportioning the costs of an inquiry held under section 69 or an inspection made under section 70; (i) an order made under sub-section (2) of section 73; 5 (j) a decision or order made under section 76; (k) an oider made by the central registrar under section 77" directing the winding up of a m1llti-state co-operative society; (l) an order made by the liquidator of a multi-state co-operative society under section 81; 10 (m) an ~r~r under section 87 directing attachment of prope~ty before award (2) an appeal against any decision or order wuier su~ (l)j shall be made within sixty days from the date of such decision or order,-, (a) if the decision or order was made by the central registrar, to the prescribed authority; j 5 (b) if the decision was made by a multi-state co-operative society (other than a national co-operative society), or a liquidator of such society, to the officer who is empowered to exercise the powers of the central registrar under sub-sect~on (2) of section 4j ot (c) if the decision was made by a national co-operative society 20 or a liquidator of such society, to the central registrar appointed under sub-section (1) of section 4 (3) 'nle appellate authority may, if satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the period of sixty days, admit the appeal within· such further period not 25 exceeding sixty days as that authority may deem fit 'if \ (4) in disposing of an appeal under this section, the appellate authority may, after giving the'parties a reasonable opportunity of making 30 their representations, pass such order thereon as that authority may defid1 ftt - - (5) the decision or order of the : appellate authority on appeal shall be final - - 91 notwithstanding anything contained in this act, where with the previous sanction in writing of, or on requisition by, the reserve bank, '35 a co-operative bank- | no | appeal ||----------|-----------|| nrrevi- | || sion | in || eertatn | || ra~e!l | |(a) is being wound up; or \, lr· • 1v1~lon (b) in resp~t of which a 'scheme lof amalgamation or reorganisation is given effect to; or (c) in respect of which a~ order for the supersession of the 40 board and the appointment of an administrator therefor has been made, no appeal, revision or review thereagainst shall lie or be permir!lible, and the sanction or requisition of the reserve bank shall not he liable to be call~ in question 92 (1)· subject to the provisions of section 91, the central government may, of its own motion or on an application, call for and examine the records of any proceedings in which no appeai lies to· the appellate authority under section 91 for the pui"pose of satisfying itself as to the 50 legality c!lr propriety of any decision or order made under this act and 11 1n any case it shall appear to the central government that ally such decision or order should be modified annulled or revised or remitted for reconsic;leration, the central gover~ment may, after giving the par~ to be a1iected thereby co reasonable opportunity of bemg heard, pas:; :such order thereon as it may deem fit: provided that the application' to the central government for the exercise of the power wlder this section shall be pre1~red within ninety dbys from the date on which the decision or order to which the appli~ catton relates was communicated to the applicant: 10 provided further that the central g<>vernment may, if satisfied that the appellant was prevented by sufficient cause from malq,ng the application within the said period of ninety days, admit the application after the expiry of the said period (2) the central government may suspeii'd the execution of the '5 decision or order pending ,the exercise of its power under sub-section (1) in respect thereof (3) the central government may award costs in proceedings under th1s section to be paid out of the funds of the multi-state c~operative j(\ciety concerned or by such party to the ~pplication for revishn "as the 20 central government may deem fit 83 ,(1) the appellate authority'under section 90 may, on the appli-review ~ation of any party interested, :review its own order in any case and pass in reference thereto such order· as it thinks fit: provided that no such application shall bt! entertained unless the 25 appellate authority is satisfied that there has been a discovery of new and important matter or evidence which after exercise of due diligence was not within the knowledge of the applicant or could not be produced by him at the time when the order was made or that there has been some mistake or error apparent on the face of the record or for any so other sufficient reason: ' provided further that no such order shall be made wlder this \tub-rction unless notice has been given to all interested parties and they have been afforded a reasonable opportunity of being heard (2) an application for review under sub-section (1) by any party 35hall be made within thirty days from the date of communication of rbe order of the appellate authority 'sought to be reviewed m where an appeal is made under section 90 or where the central in~r1ogovernment calls for the records of a case under section 92, the ,;ulory appellate authority or the central government, as the case may be, may, order • 4-:> iu order to prevent the ends of justice being def~ated, make, buch interlocutory orders, including an order of stay, pendma the declslon of the appeal or revision as such authority or the central government may deem fit chapter xii 41 societies which become mtjim-8'l'ate co·opl!'orative soclems consjrquent on reobganlsation of states37 of 1956 co-operative 1ocwt1e1 f1mc:tion-inl; eg (1) wh~re by virtue of the provisions of part ii ?f the ::itat r organisation act, 1956, or any other enactment relatmg to es i e t' of states, any coroperative society which lmmedjately reorgan sa ion t' tak la h d i b'ho 50 before the day on which the reorg8lll8& ion es pee, a ~d 0 l--wt immediately before reorgani· "ation of states confined to one state becomes as from tthat day, a multi-sta~ co-operative society, it shall be de~med to be a multi-state co-operative society registered under the corresponding provisions of ,this ~ct and ~he bye-laws of such 'society shall, in so far as they are not mconslstent with the provisions of this act, continue to be in force until altered or re-5 scinded (2) if it appears to the central registrar or any; officer authori~ in this behalf by the central gov~ent (hereafter in this sec!ion referred to as the authorised officer) that it is necessary or expedient to reconstitute or reorganise any society referred to in sub-section (1)\ 10 the central registrar or the authorised officer, as the case may be, may, with the previous approval of the central government, place before a meeting of the general body of that society, held in such manner as may be prescribed, a scl1eme for the reconstitution or reorganisation, including propasals regding-1 5 (a) the formation of new multi-state co-operative societies and the transfer thereto in whole or in part of the assets and liabilities , ' of that society, or (b) the transfer, in whole or in part, of the assets and liabilities of that socie,ty ,to any other multi-state co-operative society in sw existence immediately before the date of that meeting of the general body (hereafter in this section referred to as the existing multi-state co-operative society) ' (3) if the scheme is sanctioned by a resolution passed by a majority of the members present at the said meeting, either without modifications 2r ur with modifications to which the central registrar ~ the authorised ~ officer agrees, he shall certify the scheme and upon 'such certification, the scheme shall, notwithstanding anything to the contrary contained in any law, regulation or bye-laws for the time being in force, be binding on all the societies affected by the 'scheme as well as the share- holders and creditors of all "'such societies ' 30 (4) if the scheme is not sanctioned under sub-section (3), the central registrar or the authorised offi~ may refer the scheme to such judge of 'the appropriate high court, as may be nominated in this behalf by the chief justice thereof, and the decision of that judge in 35 regard to the scheme shall be final and shall be binding on au the societies aiected by the scheme as well as the shareholders and creditors of all such societies expzanation-in this rub-section, "apprqpriate high cow't" means the high court within the local limits of whose jurisdiction the principal 40 place of business of the multi-state co-operative society is situated (5) notwithstanding anything contained in this section where a scheme under sub-section (2) includes any proposal :reg~rding the transfer of the assets and liabilities of any multi-state co-operatfve society referred to in clause (b) thereof, the scheme shall not be binding 45 on such multi-state co-operative society or the shareholders and c,reditors thereof, unless the proposal regarding such transfer is accepted by that multi-state co-operative society by a resolution passed by a majllrity of the members present at a meeting of its general body ,chapter xiii, offences and penaltiesoffences h (1) a multi-siate co-operative society or an officer or member thereof wilfully making a false retw'n or fui'tli;shing false information, } or any person wilfully or withput any reasonable excuse disobeying any summons, requisition or lawful written order ~ued under the pr0-visions of this act, or wilfully not furnishing any information required from him by a person authorised in this behalf under it he provisions of this act, shall be ipunishable with fine which, may extend to two 10 hundred rupees , ' (2) any employer who without sufficient cause, fails to pay ,to a multi-state co-operative society the amount deducted by _ him under section 58 within a period of fourteen days from tlte date on which such deduction is made, shall, without prejudice to any &ction that may be 15 taken agairu;t him under any other -law for the time being in force, be punishable with fine which may ex'tend to five hundred rupees (~) any officer or custodian who wilfully'! fails to hand over custody pi' of books, accounts, documents, records, cash, 'security and othar property belonging to a multi-state co-operative society -of which he is an officer coinizanceof o1rences 20' or custodian, to a person entitled under section 49, section fr1, section 68, section 69 or section 80 shall be punishable with fine which may: extend to two hundred rupees and in the case of a continui\lg breach, with a further fine which l:qay extend to five hundred rupees for every day during which the breach is continued after conviction for the first such breach ~5 97 (1) no court inferior to that of a metropolitan magistrate or a, judicial magistrate of the first c1as~ shall try any offence under this act (2) no prosecution shall be instituted under this act without the 30 previous sanction of the cent;ral registrar and such sanction shall ~ot be given without giving to the person concerned a reasonable opportumty to represent his case· ~, chapter xiv miscellaneous_ 98 every multi-state co-operative s~ciety shall keep a copy of this 3;) ul and'ts bye laws and also a list of its members, open to act, the r es 1 - - te ed address inspection free of charge at alll'easo~ble ,times at the regas r of the society copy of act, rules, and byelaws, etc, to be open to inspection power to exempt multi-state cooperative 99 (1) notwithstanding anything contadinedf inreasotw8 !c~: r~:: b general or special or er, or 40 government may, y -' h ditions if any as may be specified h' d subject to suc con " f h t ere~n, an ulti-state co-operative society or class 0 sue th~e~n exempt any f ~h requirement of this act relating to regt~ra-, societies from any 0 e i , tion societi~,j from conditiorul as to reptntion (2) (a) the central government may, by general or special order and for reasons to be recorded therein,-(i) exempt any multi-state co-operative society or any class of such societies from any of the provisions of this- act or of the rules; or 5 (it) direct that such provisions shall, apply to such society or class of societies with such modification!:! not affecting the substance thereof as may be specified in' the order: ' pl'ovlded that no order shall be made undel' sub-clause (ii) so as to prejudice the interests of such society or class of s~ch societies 10 without a reasonable opportunity being given to make representation in the matter (b) every order made under clause (a) shall be published in the official gazette 100 any person appointed as liquidator under the provisions of this j 5 act shall, be deemed to be a public servant within the meaning of section 21 of the indian penal code 45 qf 1860 uquidator to be p,abllc aervant notice necessary in suits 101 no ~uit shall be instituted against a multi-state co-operativo society or any of its officers in re~ect of any act touchina the constitutlon, management or the business of the society until the expiration of ninety 20 days next after notic,e in writing has been delivered to the central registrar or left at his office, stating the cause of actiod, the name, description and place of residence of the plaintiff and ,the relief which he claims, and the plaint shall contain a statement that &uch notice has ,been so deli~ed or left l' of 1956, mof 1969 102 (l) th,e provisions of the companies act, 1956 -and the monopolies and restrictive trade practices act, 1969 shall not apply to multi-state co-operative societi~ certain acts not to apply '1 mof 1", (2) the multi-state co-operative, societies registered or deemed to be registered under the provisions of this act shall not indulge in mono-~ polistic and restrictive trade practices, as defined in the monopolies ane! - 0 restrictive trade pl·actices act, 1969 , ' 103 (1) every multi-state co-operative society existing immediately before the commencement of this act which has' been registered under 'savings of exist,; tngmulti-state cooperati"e sociries the co-operative societies act, 1912 or under any other act relating to co-operative societies iri force, in any state or in pursuance of the 35 ~ of 1911 provisions of the multi-unit co-operative societies act, 1942, shall be 6 of lm2 deemed to be registered under the cqitesponding provisions of ,this act and the bye-laws of such society) shall in so far as they are not inconsistent with the provisions of this act, or the rules, continue to be :in 4<-force until altered or rescinded (2) all appointments, rules and orders made, all notifications and notices issued and all suits and other proceedings instituted under any of the acts referred to in sub-section (1) shall, in so far as they are not inconsistent with the provision's of this ad, be deemed to have been respectively made, issued and instituted under this act, save that an 45 order made cancelling the registration of a multi-state co-operative society, shall be deemed, unless the society has already been finally liquidated, to be an order made under section 77 for its being wound up | power ||-----------|| amend || second || schedule |104 (1) if the central government is satisfied that any multi-state co-operative society should be designated as a national co-operative society or any national co-operative society specified in the second schedule should be omitted from the said schedule, it may, by notifica-5 tion, amend the said schedule so as tq include therein such multi-state co-operative society or exclude therefrom such national co-operative society, and thereupon the said schedule shall be deemed to have been amended accordingly (2) a copy of every" notification made under sub-section (1) shall lobe laid before each house of parliament as soon as may be after it is made , 105 (1) save as otherwise provided in this act no court shall have jurisdiction in respect of-' barot jurisdictlonol ' courts, ' (a) the registration of a multi-state co-operative society or its 15 bye-laws or or an amendment of the bye-iawsi (b) the removal of board of directors; '(c) any dispute required under section 74 to be referred to the central registrar; and (d) any matter concerning the winding up and the dissolution 20 of a multi-state co-operative society, (2) while a multi-state co-operative society is being wound up, no suit or 'other legal proceedings relating to the business of such society shall 'be proceeded with or instituted against the liquidator or against the society or any member thereof, except by leave of the 25 central registrar and subject to such terms and conditions as he may impose (3) save as otherwise provided in this act, no decision or order made under this act shall be questioned in any court powers ot civil court 106 (1) in exercising the functions conferred on him by or under '::\0 this act, the central registcar, or any other person deciding a dispute under section 76 and the liquidator of a multi-state co-operative society ahd n', person entitled to audit, inspect or h,?ld an inquiry under this act, - of 1808 shall have all the powers of a civil court, while trying a suit, under ·the code of civil procedure, 1908, in respect of the following matters, 3~ namt;iyi:- (a) summoning and enforcing the n1tendanae of any person and examining him on oath: (b) requiring the discovery and production of any document; (e) proof of facts by affidavits; and 40 (d) issuina com~lssions for examination of witnesses (2) in the case of an afftdavit, any officer appointed by the central registrar, or any other person deciding a dispute or the l1quidator, as the case may be, may administer oath to the deponent indemllity 107 no 'suit, prosecution or other iegal pi'oceedin~s shall lie agai~t 45 the central registrar or any person sub~rdinate to hfim ortha~ti~~ on hlds authority or against any other person, 1':1 respect 0 any mg in goo faith done or purporting to have been ~one under this act openineot branches 108 (1) notwithstanding anyth~ contained to the contrary in any 1 1 t· t operative societtes in force in a state, a multi-state aw re a in,!" 0 co- t' '" t not being a co-operatdve bank may' open branches 50 co-opera lye socje y,' , ' i or paces 0 f busine"s in any place in indla " power to make rules (2) where 'f! multi-state co-operauve ' society operis wanches or places of business in any state under sub-section (1) i the registrar of co-operative societies in such state shall not exercise any jurisdiction in relation to such branches or places of business nor shall call for any returns or information therefrom 188 (1) the central government may,by notification, make rules to carry out the provisions of this act (2) in particular, and' without prejudice to the generality of the foregoing power, such rulles may provide for au or any of the following matters, ~amely:-10 (i) the form to be used, the particulars to be given and the conditions to be complied with in the making of applicattons under section 6 for the registration of a multi-state co-operative society and the procedure in the matter of such applications; (ii) the number of the applicants and the manner in which the r order of refusal to register a multi-state co-operative society and 5 its bye-laws shall be communicated under sub-section (2) of section 7; (iii) the manner in which the order of refusal to register any amendment of the bye-laws shall be communicated under sub- 20 section (4) of section 9 and section 18; (iv) the procedure and conditions for change in the extent of the liability of a multi-state co-operative society under section 13 (v) the matters in respect of which a multi-state co-operative society may make bye-laws and the procedure to be followed,25 in making, altering and abrogating bye-laws under section 9, or 'section 18 and the condition~ to be satisfied prior to such making, alteration or abrogation; (vi) the conditions to be complied with under section 19 by persons applying for adinission as members, f~r the election and ~o admissiolt of members and the payment to be made and the interest to be acquired before the exercise of the right of membership; (vii) the number of individuals who may be admitted as members of the national c<h>perative union of india limited, new delhi as required by section 19 and their qualifications; (viii) the withdrawal and expulsion of' ~embers and the pay- % ments, if any, to be, made to members who withdraw or are expelled and the liability of past members or the estates of' deceased members; (ix) the votes oc members, as required by section 22; 40 (x) the maximum number of shares of a multi-state cooperative: society which may, subject to the provisions of 'section 24 be held by a member; (xi) the constitution and powers of a smaller body representing the general body under section 29; 45 (xii) general meet~ngs of the members under section 30 the period within which such meeting be called and the procedure at such meetings and the powers to be exercised by: such meetings; / (xiii) the proportion of individuals and multi-state co-operative societies in the constitution of the board of directors and the general ~ body under section 32; , i ' - ----, r(~t1) tlie election of members ot the boards underaection 315 and nomination of members to such boards, under section 61, the appointment or election ot omeel's and the pow81'8 to be ~ and the duties to be perfonned by the boards and other 5 j '(zv) the restrictions and conditions subject to which honorarlum may be paid under ection 38 to the elected chairman' or 'pnlident of the board of directors for serviees rendered; 'em) the additional measures and acts which may be taken or, 10 as the case may be, done by the board under section 42; , '(zeit) the number of meetings of the board, the venue of such idm'tidga and the number of committees or sub-committees for purpotea' of sections 43 and 46; (mtt) the appointment and regulation of work entrusted to 15 !'ion np1aefng the board in pursuanee of section 48; em) the constitution of a body of persons under section 50 tor toe prtparation of a list of persons eligible tor appointment to the poi1a of chief executives and other management pasts in national eb-gpeiratrve socletles and the amount of the maximum pa,le 20 appllcable to such posts; '(:) , t1ie recruitment, remuneration, allowances and other codditlona of service ot oftlcers and other employees of national c0-operative looeties under section 50; (ui) prohibiting a multi-state co-operative society from electing a defaulting membe,r, or a representative of defaulting membersociety, on its board: '(=:ii) the returns to be submitted by a multi-state co-operative iociety to :the central registrar, the persons by whom and the form m which such returns shall bewb~itted and in case of failure to wbmtt any such returns, the levy of expenses 0' p~paring it: (~i) tlie persons by whom and the form in which copies of entries in books of multf-state co-operative 'societies may be certlfted udder sectlon 56 and the charges to be levied for the supply of such eoptes: 35 45 "(mt1)" the terms and conditions on which the central governnient may make share-capital contribution or give financial or other aatsiance to multi-state co-operative societies under section 59 and the tenna and conditions on which the central government may paruitee the, "ayment of the principal or interest on debenturel fllued bv multi-state co-operative socie~e<j or 109n 3 or deposfts ~ by "them; , - '(=:o):t1te proeedure to be followed in proceedings before the central re~8trar or" "other persons decfdinll( dispute!'! ineludin!1 the appointment of a ~rdian for a -party to the df&l)1lte who is a mmol' or who, by reason of unsoundness of mind 'ot' mental infirmity, is ,mca"able of protecting his interests, and the levy of exjlenses relating to such proceedings; (xxvi) ithe mode in which the value of a deceased member', share or interest shall be ascertained and the nomination of a perlon to whom such share or interest may be paid or transferred; (xxvii) the paymen~ to be made and conditions to be compued with by members applying for loans, the period for which any loadj 5 may be made and the maximum amount which may be lent to any members; (xxviii) the formation and maintenance of reserve funds and other funds under section 61 and the" objects to which such funds may be applied, and the investment of any funds und~ the control 10 of a multi-state co-operative society under section 62:" (xxix) the conditions under which profits may be "distributed under section 61 to the members of a multi-state co-gpeu'ative soclety and the maximum rate at dividend which may be paid by multi-state co-operative societies; 15 (xxr) the prohibitions and restrictions subject roo which multi-state co-operative societies may, under section 65, transact business with person's who are not members; (xxxi) t~ accounts and books to be kept by a multistate cooperative society and the audit of such accounts and the charges, if 110 any, to be made for such audit under section 67 and the periodical publication of a balance-sheet showing the assets and liabiuties of a mulu-stale co-operative society; '(xxrii) the calculation and writing off of bad debts by multi-state co-operative socleties; 25 (xxxiii) the appointmeilt of persons for settlement of disputes under section 76; (xxriv) the procedure to be followed by a liquidator appointed under section 80 in respect of provisions of section 81; (~xv) the manner in which the surplus assets may be dividlld amongst the membprs of 1he multi-stat;e co-operative society under 30 section 82; 85; (zzrvi) the procedure for execution of decisions under section (xzxvii) the procedure to be followed in presenting and dispos-ing of appeals under section 90: 35 (xxxviii) the issue and service of pro~esses and for proof of service thereof; (xxxix) the manner of, effecting attac~ent; (:ely the custody, pregervation and sa1e of property under attacbment; 4-0 (orti) the iftv'e8tigation of claims by persons other than the defaulter to any right or interet in the attached pr()pel"ty, and the postponement of sale pending such investigation; (xlii) the inunediate sale of parish able articles; (xliii) the inspection of documents in the office of tbe central 4-5 registrar or of a~y othe~ officer or ~uthority and the levy of fees for grantlng cprtified copies of tee same; (xliv) the manner in which funds may be raised by a multi-state co-operative society or a class of multi-state co-operative societies by me~ of shares or debentures or otn~ise and the quantum of funds so raised: 5 i (xlv) the procedure under 'section 95 for reconstitution and reorganisation of societies which become multi-state co-operatiw societies consequent on reorganis~tion of a state; (xlvi) the methods of communicating or publishing any decision or orcjer required to be communicated or published under this act or 10 the rul; (xlvii) the' manner and the periodicity of returns of pendin~ cases of registration of multi-state co-operative societies and amendments of bye-laws to be sent by the central registrar to the central government; 1·5 (xlviii) an~ other matter which is required to be, or may be, prescribed ~; ' (3) everyrul~ made under this section shall be laid, as soon as may 1<, be after it is made, before each house of parliament, while it is in session, for a total period of thirty days which may be ~omprised in 20 one session or in two or more successive sessions, and if, before the expiry of the session immed:iately following th~ session or the successive aessions aforesaid, both hous~ in making any modification to 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 et!ect ·25 as the case may be; 'so, however, ,that any such modification or annulment aha11 be without prejudice to the validity of anything previously done under that rule ·um2 110 the multi-unit co-operative societies act, 1942 is hereby , repealed the first schedule [see section 3 (1) ] co-operative principles1 membership of a multi-state co-operative society (hereafter in this schedule referred to as the society) should be voluntary and open, 5 without any social, political, or religious di'scrimination, to all persoda who can make use of its services 2 in a society other than that with institutional membership, indivi-dual member should enjoy equal rights of voting-bne member, one t "jiji"iaiio vo e ," ,-, -3 (i) surplus or savings, if any, arising out of the operations of b 1iioc1ety belong to the society as a whole, and no individual member hu a claim to the surplus (ii) the surplus should be utilised for all or any of the following pur poses, namely:-15 (a) providing for development of ,the business ot the soclety; (b) providing services for th8'-common enjoyment ot members; (e) distribution among the members in proportion to their transactions with the society; , 4 the society should undertake education of its members, oftlce- 120 qearers and employees and the general public regarding the prlj1clplla and practice ot co-operation 5 the society should actively co-operate in every pracucal waywtth other co-operative societies at local, national or international levels 6 the share capital of a society shall receive strictly limited rate of 25 interest (that is to 'sayi dividend) 7 the affairs of a society should be administered by the managemat in accordance with democratically expressed will of the members 8 the management of the, society is accountable to its own membca the second schedule[see sections 3 (m) and 104] lis of national co-operative societies1 national co-operative land development banks federation limited, hyclerabad : ~ --~ 2 national federation of state co-operative banks limited, bombay s national co-operative union of india l~ted, new delhi 4 national agricultural co-operative marketing federation of ibdia limited, new delhi 5 5 national co-operative consumers' federation of india limited, new delhi 6 national federation of co-operative sugar factories limited, new delhi 7 national federation of industrial co-operatives limited, new 10 delhi 8 national co-operative housing federation limited, new delhi 9 indl;ln farmers' fertiliser co-operative limited, new delhi 10 all india federation of co-operative spinning mills limited, bombay 15 11 all india industrial co-operative banks' federation limited, bangalore 12 national co-operative dliiry federation of india limited, new delhi 13 petrofils co-operative limited, new delhi 14 national heavy engineering c<>-operative limited, new delhi 120 15 the all india handloom fabrics marketing co-operative society limited, bombay -16 the natiollal federation of urban co-operative banks and cl'edit societies limited, new delhi 17 krishak bharati co-operative limited, new delhi 18 national federation of fishermen's co-operative limited, bombay 19 national federation of labour co-operatives limi1led, new delhi ~ t 20 national co-0p,erative tobacco growers' federation limited, anadd co-operative societies with objects not confined to one state and 8e1'ving the interests of members of more thanolle state are at present governed by the provisions of the multi-unit co-operative societies act, 1942-a central act this i's only an enabling legislation facilitating the incorporation, regulation and winding up of multi-unit (state) c0-operative societies under the provisions of the co:-operative societies act of the state where the principal place of business of any such society is located as a result, different multi-unit co-aperative societies are governed by different co-operative laws in the country 2 since 1942, far-reaching changes have occurred in the organiutiona! structure, overall size and operations, etc, of multi-unit co-operative societies a number of national level co-operative societies and :federa~ tions, promoted :by co-operatives in the country have come up with the assistance of the central and state governments these federatioos and societies are engaged in diverse spheres of co-operative activity the provisions in the co-operative laws in different states govern1ne these multi-state societies tend to vary from one another thua the lack of uniformity and the inadequacies in the existing arrangements ,have rendered it necessary to replace ihe existing legislative framework of such co-operatives by a common comprehensive central legisla· tion and providing for a central authority to be responsible for their promotion, registration and supervision the present multi-state cooperative societies bill, framed in the l~ght of the recommendations of the expert commitee on multi-state co-operative societies legislation and in consultation with the state governments, seeks to achieve this objective and is intended to facilitate the further development and more effective functioning of multi-state co-operative societies 3 the proposed law will extend to the whole of india including jammu and kashmir the present multi-unit co-operative societies act, 1942 does not extend to janunu and kashmir, 4 the scope ot the bill is divided into several parts on the u8ual tines of co-operative legislation in the states providing, among other things, for the appointment of central registrar, registration of multi-state co-operative societies, members' ·rights and liabilities, management of co-operatives, privileges of multi-state co-operatives, their properties and funds, audit, inquiry, inspection, settlement of disputes, winding up and cancellation o~ registration of multi-state co-operative societies etc 5 some of the provisions contained in the state co-operative' laws and which have been 'irritants' to non-official leadership of the cooperative rnovenlent have not been inducted in the-bill the bill ~~ t\('t cnntajl\ ~~ - , " ~'!t'l~on for cqmpulsory amendment of 'bve-jijllr!\ or for compulsory amalgamation or division of societies nor does the proposed bill contemplate any powers to government nominees to veto the resolution of board of management of societies ~ objective is that while the autonomy of the co-operative should be supported and respected, the administrative arrangements for inspection; monitoring and audit of these societies are strengthened to ensil1:e that the societies function with responsibility to tpeir constituents and the community rao blrendra singh new dblm; the 20t;h match, 1984 president's recommendation under article 117 of the constitution ·of india[copy of letter no l l101z/1/80-l&m, dated the 19th april, 1934 from rao birendra singh, minister of agriculture to the secretary-general, lok sabha] the president, having been informed of the subject matter of the bill to consolidate and amend the law relating to co-operative societies with objects and confined to one state and serving the 'interests of members in mor~ than one state, recommends the introduction of the bill in lok sabha under clause (1) of article 117 of the constitution and ita consideration under clause (3) of that article cl"u~e 1-this clause inter aua seeks to extend the provisions of the bill to the whole of india including the state of jammu and kashmir cl4uae 2-as the subject relating to co-operative societies falls within the jurisdiction of ,the state, only those societies whose objects ex:tetld beyond one state come under the purview of the proposed bill and the types of 'societies that would ,be covered have been speeijled in the bill itself c14use 3-this clause relates to definitions of various words ind ex· pl'etsions used in the bill ci&use ol-provisiob has been made under this clause for the appointment of a central registrar with a proper 'scheme of delegation of powers to any officer of the central government or the state governmslt cz&ue 5-it provides that no multi·state co-operative society shall he registered unless ita main object is such as to render it necessary to serve the in~1:i of members in more than one state cl4usu 6, 7 and s-these clauses provide for making an application for the registration of a multi-state c(h)perative society, disposal of iiuch application by the central registrar and for the issue of registration certificate when registered -cl4'wes 9 (1m lo-these clauses deal with the procedure for the amendment of byelaws ~f a multi-state co-operative society and its codldd8n~t " clause 11 and 12-these clauses prescribe ,the procedure for change of name or adress of the multi·state co-operative society ~ 13-this clause provides" that only a multi-statc co-operativc society with limited liability shall be registered clause h-it deals with the procedure for amalgamation, transfer of assets and liabilities or division of multi-state co-operative societies c14~s 15 and 16-these clauses deal with preparation of a "me for the amalgamation or reorganisation of a multi-state co-operatlve bank with the previous approval of the reserve bank of india clause 17-the certificate of registration of a multi-state co-operative society shall stand cancelled in he circumstances as laid down hi this clause ' "' " "~ clg-use l8-it prescribes the procedure for conversion of a state based co-operative society into a multi-state co-operative society clame 19-the persons who are eligible to become members of a multistate co-operative society have been enumerated in this clau'de ;;cluse 2o-this clause provides for the members not to exercise their rig s as members till due payment is made by, them clause 21-~s clause deals with the procedure for expulsion of members of multi-state co-operative 'society clause 22-under this clause every member of a multi-state cooperative so~iety shall have one vote in the affairs of the society certam multi-state co-operative societies the members of which include co-operative societies or other multi-state co-operative societies may provide for an equitable system of voting - clause 23-thi-s clause provides for the manner in which a member can exercise his vote clauses 24 to 28-these clauses deal with the restrictions on transfer of shares or interests; redemption of shares and the manner in which the shares may be redeemable; transfer of share or interest on the death of a member to the person nominated or if no person is nominated, to the heir or legal representative of the deceased member and the liability of a past member and the estate of a deceased member for the debts of the society clause 29-this clause provides for the general body of a multi-state co-operative society and for its constitution, powers and functions it also provides that a co-operative society which is a member of a multi-state co-operative society shai1 be represented in the latter only through its chairman or the chief executive and where there is no chairman or the chief executive, the administrator, so that its participation in the general body of the multi-state co-operative society is effective clauses 30 and 31-these clauses provide for the annual general meeting and special ~neral meeting of the general body of a multi-state co-operative society clause 32-this clause provides for board of directors for every multi-state co-operative societies clause 33-this clause seeks to associate the representatives of the employees of the multi-state co-operative societies in the management decision making process clause 34-the disqualifications for members of the board of directors of a multi-state co-operative society have been specified in this clause c1a'use 35-this clause provides for the preparation of electo~al :reus f ljt· n of the member's of the board and thelr terms for the purp-ose 0 e t"1' 10 " ,", of office, etc u es 36 and 37-no person shall hold office of chairman ~r cla s chairman or vice-president in more than one multi-president, vic~ t state co-operhtive socle y and shall not be e1jgible to hold such office for more than two consecutive term! ltd chairman or president of multi-state co'-clause 38-the ~:~ e paid' honorarium in respect of specific services operative society cou e rendered by him under this clause and 4o-these clauses relate to removal of electe" clauses 39 1 body and by th~ central registrar plembel'l by the g~t1er!} ,: ' ' ' clause 41-where the government has subscribed to the sharecapital of a multi-state co-operative society it can nominate such number of nominees on the board of directors of a co-operative society as may be specified by the rules clauses 42 and 43-these clauses provide for powers and functions of the board and also provide that the board shall meet at least once in every quarter clauses 44 and 45-where the central government has made substantive contribution to the share-capital of a national co-operative society exceeding fifty per cent, the prior approval of the central government would be necessary for the appointment of chief executive and functional directors the powers and functions of the chief executiye have been enumerated in clause 35 clause 46-this clause provides for the constihltion of executive committee and other committees or sub-committees of the board czause 47-this clause empowers the central government to give directions to multi-state co-operative societies in public interest or in the interest of proper implementation of the developmental programmes clause 48-it provides that the board of a multi-state co-operative society could be superseded by the central registrar if that board persistently makes default or is negligent in the performance of its duties or commits any act which is prejudicial to the interests of the society or its members the total period of supersession is not to exceed two years clallse 49-this clause provides for securing possession of records, property, etc, of a multi-state co-operative society, by· the order of a magistrate, where such records are likely to be tampered with or destroyed or the properties likely to be mis-appropriated or mis-applied, under the circumstance5 enumerated in this clause clause 50-this clause provides that the selection of the chief executive and other managerial posts in national co-operative societies shall be made through a body of persons constituted in that behalf czau'le 51-this clause provides that no defect in the constitution of a multi-state co-operative society, etc, makes the acts of such society, etc, invalid clause 52-this clause confers corporate status on a multi-state cooperative society after its registration clauses 53 to 59-the provisions in these clauses confer certain privileges on multi-state co-operative societies such societies are afforded exemption from· compulsory registration of instruments (vide clause 57) clause 58 gives the facility to such a society for deduction of amounts from the salary of a member of multi-state co-operative society to meet the c1aims of such a societ~ an enabling provisiori" has been incorporated in clause 59 to facilitate govemment aid to mtdti state co-operative societies, clause 60-this clause provides that no part of the funds other than the net profits of a multi-state co-operative society shall be divided by way of bonus or dividend, etc cia'use 61-this clause relates to the disposal of net profits and contributions to statutory funds clause 62-the modes of investments of funds of a multi':'state cooperative society have been laid down in this clause clauses 63 td 65-these clauses lay down restrictions on loans, deposits and loal'l5 to be received and other transactions with non-members by multi-state co-operative society clause 66-this clause provides for the establishment of a contributory provident fund for the benefit of the employees of the multi-state cooperative society having such number or class of employees as may be prescribed cm-use 67-this clause empowers the central registrar to audit or cause to be audited the accounts at every multi-state co-operative society at least once in each year clau'j€ 68-the central registrar or any person authorised by him may inspect a multi·state co-operative society clauses 69 to 73-these clauses provide for an inquiry to be held by the central registrar into the constitution, working and financial condition of a multi-state co-operative society and also to inspect or authorise some person to inspect the books of the society on the application of creditor of the society it is also provided that where inquiry is held or inspection made, the central registrar may apportion the cost between the concerned members or creditors and the society and such cost may be recovered on an application to a magistrate having jurisdiction it is also provided for repayment or restoration of the money or property with interest or to pay contribution and costs or compensation as the central registrar may consider just and equitable in c8'ses where any payment has been made contrary to the provisions of the bill clauses 74 to 76-these clauses lay down the procedure for st!ttlement of disputes touching the constitution, management or business of a multi-state co-operative society, the person who shall decide the disputes and the period of limitation in relation to such dispu clauses 77 to 84-these clauses provide for the winding up of a multi-state co-operative society, appointment of a liquidator for such society and the powers and responsibilities of liquidator clauses 85 to 89-'nlese clauses provide for the procedure for execution of decrees, orders and decisions made under various clauses of the bill clause 89 provides that the sums due to governmen~ shall be recovered in the same manner as arrears of land revenue clauses 90 to 94-these clauses make provision for appeals, revision, review and interlocutory orders clause 95-this clause specifies detailed procedure to be followed in respect of societies which become multi-state co-operative societiee consequent on reorganisation of the states clause 41-where the government has subscribed to the sharecapital of a multi-state co-operative society it can nominate such number of nominees on the board of directors of a co-operative society as may be specified by the rules clauses 42 and 43-these clauses provide for powers and functions of the board and also provide that the board shall meet at least once in every quarter clauses 44 and 45-where the central government has made substantive contribution to the share-capital of a national co-operative society exceeding fifty per cent, the prior approval of the central government would be necessary for the appointment of chief executive and functional directors the powers and functions of the chief executi~ have been enumerated in clause 35 clause 46-this clause provides for the constitution of executive committee and other committees or sub-committees of the board clause 47-this clause empowers the central government to give directions to multi-state co-operative societies in public interest or in the interest of proper implementation of the developmental programmes cza11<;e 48-jt provides that the board of a multi-state co-operative society could be superseded by the central registrar if that board persistently makes default or is negligent in the performance of its duties or commits any act which is prejudicial to the interests of the society or its members the total period of supersession is not to exceed two years cla1lse 49-this clause provides for sec'uring possession of records, property, etc, of a multi-state co-operative society, by the order of a magistrate, where such records are likely to be tampered with or destroyed or the properties likely to be mis-appropriated or mis-applied, under the circumstances enumerated in this clause clause so-this clause provides that the selection of the chief executive and other managerial posts in national co-operative societies shall be made through a body of persons constituted in that behalf clatl'!e 51-this clause provides that no defect in the constitu~ion of a multi-state co-operative society, etc, makes the acts of such society, etc, invalid clause 502-this clause confers corporate status on a multi-state c0-operative society after its registration clauses 53 to 59-the provisions in these clauses confer certain privileges on multi-state co-operative societies such societies are afforded exemption from· compulsory registration of instruments (vide clause 57) clause 58 gives the facility to such a society for deduction of amounts from the salary of a member of multi-state co-operative society to meet the claims of such a societ:,\ an enabling provisiori' has been incorporated ;n clause 59 to facilitate government aid to m~1ti state co-operative societies, clause 60-this clause provides that no part of the funds other than the net profits of a multi-state co-operative society shall be divided by way of bonus or dividend, etc cia'use 61-this clause relates to the disposal of net profits and contributions to statutory funds clatue 62-the modes of in~estments of funds of a multi~state cooperative society have beert laid down in this clause clauses 63 td 65-these clauses lay down restrictions on loans, deposits and loans to be received and other transactions with non-members by multi-state co-operative society clause 66-tbib clause provides for the establishment of a contributory provident fund for the benefit of the employees of the multi-state cooperative society having such number or class of employees as may be prescribed c'1iause 67-tbis clause empowers the central registrar to audit or cause to be audited the accounts of every multi-state co-operative sciciety at least once in each year cla'ijse 68-the central registrar or any person authorised by him may inspect a multi-state co-operative society clauses 69 to 73-these clauses provide for an inquiry to be held by the central registrar into the constitution, working and financial condition of a multi-state co-operative society and also to inspect or authorise some person to inspect the books of the society on the application of creditor of the society it is also provided that where inquiry is held or inspection made, the central registrar may apportion the cost between the concerned members or creditors and the society and such cost may be recovered on an application to a magistrate having jurisdiction it is also provided for repayment or restoration of the money or property with interest or to pay contribution and costs or compensation as the central registrar may consider just and equitable in cases where any payment has been made contrary to the provisions of the bill clauses 74 to 76-these clauses lay down the procedure for st!ttlement of disputes touching the constitution, management or business of a multi-state co-operative society, the person who shall decide the disputes and the period of limitation in relation to such dispum clauses 77 to 84-these clauses provide for the winding up of a tnulti-state co-operative society, appointment of a liquidator for such society and the powers and responsibilities of liquidator clauses 85 to 89-these clauses provide for the procedure for execution of decrees, orders and decisions made under various clauees of the bill clause 89 provides that the sums due to governmen~ shall be recovered in the same manner as arrears of land revenue clauses 90 to 94-these clauses make provision for appeals, revision, review and interlocutory orders clause 95-this clause specifies detaile? procedure to ~ follow~d in respect of societies which become multl-state co-operative socletiee consequent on reorganisation of the states clauses 96 and 9'i-these clauses relate to offences and penait1es irl case of filing false return;; or furnishing false iniormation, etc clause 97 provides that no court inferior to that of a metropolitan magtstrate or a judicial magistrate of the first class shall try such offences and no prosec'ution shall be instituted wjthout the previous sanction of the central registrar clause 98-under this clause a copy of the legislation, rules, byelaws, etc is to be kept open for inspection free of charge clause 99-this clause seeks to empower the central government to exempt any multi-state co-operative society 01' claaa of such societiell from any of the provisions of the bill cla'use 100-a person appointed as a liquidator under the provisions of the bill shall be deemed to be a public rvant within the meaning of section 21 of the indian penal code clause 101-this clause provides that no suit can be instituted against a multi-state co-operative society or any or t officers unless a notice is given to the central registrar clause 102-this clause provides that the provistona of the cj)mpanies act, 1956 and the monopolies and restrictive traae ~ractices act, 1969, shall not apply to a multi-state co-operative socieu clause 103-under this clause the existing multi-s~ate co-operative societies shall be deemed to be registered under ·th provisions of the proposed legislation j clause 104-this clause seeks to empower the central {1overnment to include in or to exclude from the list of the nauanal co-operative societies specified in the second schedule, any national co-operative society by, notification, and al'8o provides that every such notification shall be laid before parliament clause l05-the jurisdiction of courts has been barred in respect of certain matters relating to the registration, winding up and the dissolution of a multi-state co-operative society clause l06-this claruse confers certain powers of a civil court on the central registrar or any other person deciding the dispute clause l07-this clause provides that no suit, etc, shall lie against the central registrar or his subordinates for anything done in good faith clause lob-this clause seeks to empower a multi-state co-operative society to open branches or places of business any where in india claw;e l09-this clause empowers the central government to make rules for carrying out the provisions of this legislation and enumerates various matters for which rules may be made and also provides for laying the same before parliament clause llo-this clause repeals the mul~i-unit co-operative societies a~1~ , i!, i the· first schedule-in this schedule co-operative principles have been enumerated the second schedule-this schedule contains the liat of national cooperative societies the multistate co-operative societies bill, 1984 s';ks to replace the existing multi-unit co-operative societies act, 1942 except for some additional expenditure that may arise under clauses 4 and 35 of the bill, no other new expenditure is envisaged by reason of the passing of the bill 2 clause 4 of the bill provides for the appointment of central registrar of co-operative societies and other persons to assist him presenuy, one of the officers in the ministry of agriculture has been designated as central registrar in an ex officio capacity some snleton supporting staff has also been provided to assist the central registrar simultaneclllsly some of the powers of the central registrar have also been delegated to the state officers with the passing of the bill, however, the central registrar will have to assume greater responsi'jilities in relation to multi-state co-operative societies this will necessitate a full-time central registrar with other officers and supporting staff to assist him in the discharge of the statutory functions under the various provisions of the bill to begin with, the following additional posts will be needed: posts number or posts scale or pay _- ------------------ ---gatt/lld call,ry : one central registrar one ri 11115°'11'150 r, 15qo-1800 joint central regiatrar one assistant director one ri_ 7oo-isclo rs 650-1040 senior penoual assiltant nrm gatttlld cij/ipj i one senior technical assistant onc araistant onc stenographer orade 'c' two lower divillon clerks two ri 5500900 ri 4115400 ri 415 800 ra 860-400 lb ,9f;gssi peon , 3 clause 35 of the bill lays down that the election of the l~lernbers d f directors of such multi-state co-operatlve socxeties or of the boar 0 - b tifted i al i f multi-state co-operative societies as may e no n a gener c ass 0 d hall be held under the superintendence, dl,l'ection and or special or er, s i officers as may be appointed by the central control of such return ngount of expenditure that might be involved on registrar the exact admat this stage the additional expenditure may this cannot be assesse be around rs 10,000 in a year 4 clause 59 of the bill provides for financial assistance to multi-state co-operative societies in the form of share capital, loans and advances, subsidies and guarantees the system envisaged in this pl'ovisiolt is already in vogue and no additional expenditure to the government is envisaged 5 the development of multi-state co-operative societies is ali approved plan scheme an amount of rs 200 lakhs has been included in the budget of the ministry for the financial year 1984-85 in respect of this 'scheme the expenditure involved and referred to in the preceding paragraphs together with expenditure on the existing staff wil1 hi accommodated within the budget allocation for the year suitabl~ provision will also be made for the subsequent years 6 the bill does not involve any non-recurring expenditurf clause 109 of the bill empowers the central government to make rules to carry out the provisions of the proposed legislation sub-clause (2) of this clause enumerates the matters with respect to which rules may be made under this clause these matters relate, inter alia to the procedure to be followed for the registration of multi-state co-operative societies; the conditions to be complied with by persons applying for admission as members of a multi-state co-operative society; the maximum number of shares of multi-state co-operative society which a member may hold; the election or nomination of members to the boards, the terms and conditions on which the central government may make share-capital contributions and conditions on which the central government may guarantee the payment of the prineipal or interest, etc the aforesaid matters relate to procedure and administrative t&etail and it is not practicable to provide them in the bill itself the de~latjon of legislation power is, therefore, of a normal character a bill·to consolidate and amend the law relating to co-operative societies with objects not confined to one state and serving the interests of members in more than one state (roo birencira singh, minister of agriculture) , 24 page 50, line 26,-for "adress" ~ "address" 25 page 50, line 6, from bottom,-"the" for "he" read 26 page 52, line 13,-for "clause 35" ~ "clause 45" 27 page 57, line 9,-after "shares of" insert "a" ~ deldi' , ms,y 54 1984-vaisakha 15, 1906 (saka) "himself 1 11 pabe 27, ilne 22,-f2£ "hamself" 12 page 29, lile 33,-aft er "or" omi t "the" 13 pa~e 29, line 3,,-for "sociey" _read "society" - 14 page 32, in the marginal heading to cla~se 80,-f2!: itliqu1datfon~1 read "liquidator" 15 page 34, in the marginal heading to clause 87,-aft er " award" 2!!e:! "tor it 16 - page 35,-against'line 13, insert the marginal citation,-~ "36 f 1963" 17 page 35, line 13,-omit "36 of ~963" 18 page 40, in the marginal headlng to clause 103,-for "socities" read "societies" 19 page 42, line 46,-for "meetlngs" 'read "meeting" 20 page 45, l~ne 8,-for "methods" read "method" page 46, line 32,-for "lis" ~ "list" -22 page 48, line 2 from bottom,-!2e "inducted" read "included" 23 page 49, line 4 frem bottom,-~ "objects and" read "objects not" tf:il!; nulti-stal'e co-ope:etativb s,ocieties bill, 19d4 (to be/as introduc·ed in lok sabha) 1 page 6, line 32,-ill "llabiliy" "11abi1i ty" 2 p~ge 7, line 41,-"reeclpt" "receipt" 3 page 8, line 17,-"amajag amat ed " read -"amajgamated" 4 page 13, in the marginal heading to clause 29,-after "body," insert "its" 5 page 15, line 37,-- for -"s" "1s" 6 page 16, line 1,-f2!: "preperation" ~ "preparation" '1 page 21, line 26,-!q! "decessed" !:!!!f! "deceased" e page 22, line 34,-for "executive" read "execute" --9 page '22,-against line 48, 1n the marginal c~tation,!qr "4 of 1916" ~ "4 of 1936" 10 page 23, l~ne 18,-\ !2! "socity" ~ "society" ,,' | Parliament_bills | e7e26a38-52e7-5d7c-8876-25e27e4100ec |
bill no 94 of 2013 the national bank for agriculture and rural development (amendment) bill, 2013 a billfurther to amend the national bank for agriculture and rural development act, 1981be it enacted by parliament in the sixty-fourth year of the republic of india as follows:—short title and commencement1 (1) this act may be called the national bank for agriculture and rural development(amendment) act, 20135(2) it shall come into force on such date as the central government may, by notification in the official gazette, appointamendment of section 261 of 1981 2 in section 2 of the national bank for agriculture and rural development act, 1981(hereinafter referred to as the principal act),—(a) for clause (d), the following clause shall be substituted, namely:—'(d) "central co-operative bank" means the principal co-operative society registered in a district in a state, the primary object of which is the financing of other co-operative societies in that district or to utilise the services of such cooperative societies on agency basis for its activities in that district with an option to undertake such activities in contiguous districts;';(b) for clause (e), the following clause shall be substituted, namely:—'(e) "chairman and managing director" means the chairman and managing director appointed under section 6 ;'; (c) for clause (f), the following clause shall be substituted, namely:—5'(f) "co-operative society" means a society or a co-operative registered, or deemed to be registered, under any central or state law, relating to cooperative societies or co-operatives or multi-state co-operative societies, for the time being in force;'; (d) clause (j) shall be omitted;10(e) after clause (k), the following clause shall be inserted, namely:—27 of 2006'(ka) "micro enterprise", "small enterprise" and "medium enterprise", shall have the meanings respectively assigned to them in the micro, small and medium enterprises development act, 2006; '; (f) after clause (o), the following clause shall be inserted, namely:—151 of 1956'(oa) "producer organisation" means a producer company as defined under clause (l) of section 581a of the companies act, 1956 and includes co-operative societies or societies or trusts established with one or more of the objectives provided in sub-section (1) of section 581b of the companies act, 1956;';20(g) in clause (q), for the explanation, the following explanation shall be substituted, namely:—'explanation— for the purposes of this clause,—25(a) activities conducive to development of rural areas include activities relating to production of goods or provision of services and activities for the promotion of cottage and village industries, agro industries, industry in the tiny and decentralised sector, micro enterprises, small enterprises and medium enterprises and small-scale industry and handicrafts, handlooms and other rural crafts;30(b) "rural area" means the area other than the area covered under the jurisdiction of the municipality as defined in clause (e) of article 243p of the constitution;';(h) in clause (u), after the words "principal co-operative society", the words"registered in a district" shall be inserted 3 in section 3 of the principal act,—amendment of section 335(a) in sub-section (3), for the word "bombay", the word "mumbai" shall be substituted;(b) in sub-section (4), the words "and in consultation with the reserve bank"shall be omitted 4 in section 4 of the principal act,—amendment of section 440(a) in sub-section (1), for the proviso, the following proviso shall be substituted, namely:— "provided that the central government may, by notification, increase the said capital up to twenty thousand crores of rupees";(b) for sub-section (2), the following sub-sections shall be substituted, namely:—45" (2) the capital of the national bank which has been subscribed by the reserve bank valued at twenty crores of rupees as on the date immediately preceding the commencement of the national bank for agriculture and rural development (amendment) act, 2013 shall, on such commencement, stand transferred to, and vested in, the central government5(3) the reserve bank shall be given by the central government, in cash, for transfer to, and vesting in the central government of the capital of the national bank which has been subscribed by the reserve bank, an amount equal to the face value of the said subscribed capital, valued at twenty crores of rupees:10provided that the national bank may issue capital to such institutions and persons in such manner as may be notified by the central government:provided further that the shareholding of the central government shall not at any time be less than fifty-one per cent of the total subscribed capital"5 in section 5 of the principal act,—amendment of section 5(a) in sub-section (3),—15(i) for the words "managing director", the words "chairman and managing director" shall be substituted;(ii) the proviso shall be omitted;(b) in sub-section (4), for the words "managing director", the words "chairman and managing director" shall be substituted;(c) sub-section (5) shall be omitted;20(d) in sub-section (6), the words "in consultation with the reserve bank, or the reserve bank", shall be omitted 6 in section 6 of the principal act,—amendment of section 6(a) in sub-section (1),—25(i) in clause (a), for the word "chairman", the words "chairman and managing director" shall be substituted;(ii) in clause (f), the words "the reserve bank," shall be omitted; (iii) clause (g) shall be omitted;(b) for sub-section (2), the following sub-section shall be substituted, namely:—30"(2) the chairman and managing director and other directors, excluding the directors referred to in clause (f), shall be appointed by the central government"; (c) in sub-section (3), the words "in consultation with the reserve bank," shall be omitted 7 in section 7 of the principal act,—35amendment of section 7(a) in sub-section (1), for the word "chairman", the words "chairman and managing director" shall be substituted;(b) in sub-section (1a), for the word "chairman", the words "chairman and managing director" shall be substituted;40(c) for sub-section (1b), the following sub-section shall be substituted, namely:—"(1b) in case of a vacancy in the office of the chairman and managing director, one of the whole-time directors as specified by the central government shall perform the functions and duties of the chairman and managing director during such vacancy";(d) in sub-section (3), for the word "chairman", the words "chairman and managing director" shall be substituted;(e) in sub-section (4), for the word "chairman", the words "chairman and managing director" shall be substituted 8 in section 8 of the principal act,—5amendment of section 8(a) in sub-section (1),—(i) for the words "the managing director and any whole-time director ", the words "any whole-time director" shall be substituted;10(ii) in the proviso, the words "managing director and any such" shall be omitted; (b) in sub-section (2),—(i) the words "in consultation with the reserve bank", shall be omitted; (ii) the words "the managing director or" shall be omitted;(c) in sub-section (3),—(i) the words "the managing director or of " shall be omitted ;15(ii) the proviso shall be omittedamendment of section 119 in section 11 of the principal act, for the words "managing director", at both the places where they occur, the words "whole-time director" shall be substituted10 in section 12 of the principal act,—amendment of section 1220(a) for sub-section (2), the following sub-section shall be substituted, namely:—25"(2) if the chairman and managing director for any reason is unable to attend any meeting, any whole-time director nominated by the chairman and managing director and in the absence of both the chairman and managing director and the nominated whole-time director, any other director nominated by the chairman and managing director in this behalf and in the absence of such nomination, any other director elected by the directors present at the meeting, shall preside at the meeting of the board"; (b) in sub-section (3), for the word "chairman", the words "chairman and managing director" shall be substituted30amendment of section 1911 in section 19 of the principal act, for clause (d), the following clause shall be substituted, namely:—35"(d) accept from the central government, a state government, a local authority, a state land development bank, a state co-operative bank, a central co-operative bank, a primary agricultural credit society or a scheduled bank or any person or body, whether incorporated or not, deposits repayable on such terms as the national bank may, either generally or specifically, fix; and" 12 in section 21 of the principal act,—amendment of section 21(a) in sub-section (1),—40 45(a) for the words "central co-operative banks, regional rural banks, or to any financial institution or to any class of financial institutions, which are approved by the reserve bank", the words "central co-operative banks, primary co-operative banks, scheduled banks, regional rural banks, primary agricultural credit societies, state land development banks, multi-state co-operative societies including multi-state co-operative banks, producer organisations or any financial institution or any class of financial institutions, which are approved by the reserve bank of india" shall be substituted;5(b) in clause (v), for the words "industries in the tiny and decentralised sector, village and cottage industries are of those engaged in the field of handicrafts", the words "agro industries, industries in the tiny and decentralised sector, village and cottage industries, micro enterprises, small enterprises and medium enterprises or of those engaged in the field of handicrafts, handlooms" shall be substituted;(c) after clause (v), the following shall be inserted, namely:—"(vi) swapping of debts of the farmers10explanation– for the purposes of this clause, the expression"swapping of debts" means replacing the high cost loans with low cost loans";(b) in sub-section (2), after clause (ii), the following clause shall be inserted, namely:—15"(iii) by way of pledge of fixed deposit receipts or other debt instruments issued by entities approved by the board";20(c) in sub-section (4), for the words, brackets and figure "state co-operative bank or a regional rural bank or an institution approved under sub-section (1)", the words, brackets and figure "state co-operative bank, a regional rural bank, a central cooperative bank, a primary co-operative bank, a scheduled bank, a primary agricultural credit society, a state land development bank, a multi-state co-operative society including a multi-state co-operative bank, producer organisation or to any financial institution or to any class of financial institutions, approved under sub-section (1)" shall be substituted;(d) after sub-section (4), the following sub-section shall be inserted, namely:—2530"(5) notwithstanding anything contained in sub-section (1), the national bank may, subject to such directions as may be issued by the central government from time to time, provide loans and advances, otherwise than by way of refinance, with a view to ensuring availability of sufficient credit to entities eligible under sub-section (1) on such terms and conditions, (including security) and repayable within such period not exceeding eighteen months, as the national bank may deem fit" 13 in section 22 of the principal act,—amendment of section 223540(a) for the words "enemy action, any state co-operative bank, central co-operative bank, regional rural bank or any such financial institution or any financial institution falling under any such class of financial institutions, as may be approved by the reserve bank in this behalf,", the words "enemy action or for such other reasons, any state co-operative bank, central co-operative bank, primary co-operative bank, scheduled bank, regional rural bank, primary agricultural credit society, state land development bank, multi-state co-operative society including a multi-state co-operative bank, producer organisation or to any financial institution or to any class of financial institutions, as may be approved by the reserve bank of india in this behalf," shall be substituted;45(b) in the first proviso, for the words "borrowing bank or institution", the words"borrowing bank, co-operative society, producer organisation or institution," shall be substituted;(c) in the second proviso, after the words "by the state government,", the words"but requirement of such guarantee may be waived by the national bank if other security to the satisfaction of the national bank is furnished" shall be inserted14 in section 23 of the principal act,—amendment of section 23510(a) for the words "small-scale industries, industries in the tiny and decentralised sector, village and cottage industries and those engaged in the field of handicrafts and other rural crafts, by any state co-operative bank, regional rural bank or any such financial institution or any financial institution falling under such class of financial institutions as may be approved by the reserve bank", the words "small-scale industries, agro industries, industries in the tiny and decentralised sector, village and cottage industries, micro enterprises, small enterprises and medium enterprises and those engaged in the field of handicrafts, handlooms and other rural crafts by any state co-operative bank, central co-operative bank, primary co-operative bank, scheduled bank, regional rural bank, primary agricultural credit society, state land development bank, multi-state co-operative society including a multi-state co-operative bank, producer organisation or any such financial institution or any financial institution falling under such class of financial institutions as may be approved by the reserve bank of india" shall be substituted;15(b) in the proviso, for the words, "a state co-operative bank" the words "a state co-operative bank or a central co-operative bank" shall be substituted 15 in section 24 of the principal act,—amendment of section 2420(a) for the words "state co-operative banks, regional rural banks", the words"state co-operative banks, regional rural banks, central co-operative banks, primary co-operative banks, scheduled banks, primary agricultural credit societies, state land development banks, multi-state co-operative societies including multi-state co-operative banks, producer organisations or to any financial institution or to any class of financial institutions approved by the reserve bank of india," shall be substituted;25(b) in the proviso, after the words " a state co-operative bank", the words "or a central co-operative bank" shall be inserted 16 in section 25 of the principal act,—amendment of section 25(a) in sub-section (1),—3035(i) in clause (a), for the words "a scheduled bank or any other financial institution approved by the reserve bank", the words "a scheduled bank or a central co-operative bank or a primary co-operative bank or a regional rural bank, or a primary agricultural credit society or a multi-state co-operative society including a multi-state co-operative bank or a producer organisation or any other financial institution approved by the reserve bank of india" shall be substituted;(ii) in clause (b), for the words "by any bank or institution", the words "by any bank or financial institution" shall be substituted;(iii) for clause (c), the following clause shall be substituted, namely:—40 45"(c) making loans and advances, on such terms and conditions as the national bank may think fit to impose, to a state land development bank or a state co-operative bank or a scheduled bank or a central cooperative bank or a primary co-operative bank or a regional rural bank or a primary agricultural credit society or a multi-state co-operative society including a multi-state co-operative bank or a producer organisation or any financial institution or any class of financial institutions, approved by the central government for the purpose of enabling such bank, co-operative society or society institution to make loans or advances to artisans, small-scale industries, agro industries, industries in the tiny and decentralised sector, village and cottage50industries, micro enterprises, small and medium enterprises and those engaged in the field of handicrafts, handlooms and other rural crafts and also rescheduling the payment of such loans and advances:5provided that the maximum period for which any such loan or advance may be granted, whether originally or by rescheduling the payment thereof, shall not exceed twenty-five years;";10(d) in clause (d), for the words "or a scheduled bank, loans and advances", the words "or a scheduled bank or a central co-operative bank or a primary co-operative bank or a regional rural bank or a primary agricultural credit society or a multi-state co-operative society including a multi-state cooperative bank or a producer organisation or to any financial institution or to any class of financial institutions, as may be approved by the central government, loans and advances" shall be substituted; (b) after sub-section (2), the following sub-section shall be inserted, namely:—15 20"(3) notwithstanding anything contained in sub-section (1), the national bank may, subject to such directions as may be issued by the central government from time to time, provide loans and advances otherwise than by way of refinance, with a view to ensuring availability of sufficient credit to entities eligible under sub-section (1) on such terms and conditions, including security and repayable within such period not exceeding twenty-five years, as the national bank may deem fit"17 after section 25 of the principal act, the following section shall be inserted, namely:—insertion of new section 25a combination of credits2530"25a notwithstanding anything contained in this chapter, the national bank may, subject to such directions as may be issued by the central government from time to time, provide loans and advances, by way of refinance or otherwise, for promoting agriculture and rural development which may be combination of different kinds of credits under section 21 or section 24 or section 25 or any of them to a state co-operative bank, a central co-operative bank, a primary co-operative bank, a scheduled bank, a regional rural bank, a primary agricultural credit society, a state land development bank, a multi-state co-operative society including a multi-state co-operative bank, a producer organisation or to a financial institution or class of financial institutions as may be approved by the central government, on such terms and conditions, including security and repayable within such period not exceeding twenty-five years, as the national bank may deem fit"3518 after section 30a of the principal act, the following section shall be inserted, namely:—insertion of new section 30b letters of credit40"30b the national bank may, subject to such directions as may be issued by the board from time to time, grant, open, issue, confirm or endorse letters of credit and negotiate or collect bills or other documents drawn thereunder"amendment of section 38a19 in section 38a of the principal act, for the words "in consultation with the reserve bank", the words "with the approval of the central government" shall be substituted20 after section 42 of the principal act, the following section shall be inserted, namely:—insertion of new section 42a"42a (1) the national bank shall establish and maintain a fund to be known as the national rural credit (short term operations) fund(2) the fund shall include,—5national rural credit (short term operations) fund(a) such sums of money as the central government and the state governments may contribute from time to time;(b) such sums of money as the reserve bank may contribute every year;and10(c) such further sums of money as the board may contribute every year(3) the amount in the said fund shall be applied by the national bank only to provide financial assistance by way of loans and advances under section 21"amendment of section 4721 in section 47 of the principal act, for the figures and word "42, 43 and 45", the figures, letter and word "42, 42a, 43 and 45" shall be substituted statement of objects and reasonsthe national bank for agriculture and rural development act, 1981 provided for establishment of a development bank to be known as the national bank for agriculture and rural development (the national bank) for providing and regulating credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas with a view to promoting integrated rural development and securing prosperity of rural areas2 a decision was taken by the government of india, in consultation with the reserve bank of india, to transfer the entire equity in the national bank to the central government accordingly, government of india issued a notification vide so 2373, dated the 16th september, 2010 which prescribed the proportion of subscription and ownership of the government of india and the reserve bank in the national bank respectively as ninetynine per cent and one per cent the said notification enabled the reserve bank to transfer seventy-one point five per cent ownership in the national bank out of seventy-two point five per cent held by it to the government of india the remaining one per cent equity of the reserve bank can be transferred only after carrying out the required amendments in the aforesaid act3 in view of the above, it is proposed to introduce the national bank for agriculture and rural development (amendment) bill, 2013 to amend the national bank for agriculture and rural development act, 1981 so as to transfer the remaining one per cent equity of the reserve bank in the national bank to the government of india consideration of rupees twenty crores the salient features of the bill, inter alia, are as under:—(a) to define certain expressions, namely, "micro enterprise", "small enterprise", "medium enterprise" and "producer organisation"; to substitute the definitions of "central co-operative bank", "co-operative society" and "chairman" and to omit the existing definition of "managing director";(b) to empower the central government to increase the capital of the national bank from five thousand crores of rupees to twenty thousand crores of rupees;(c) to make provision for transfer and vesting of the subscribed capital of the reserve bank in the national bank to the central government;(d) to enhance the scope of operations of the national bank for lending purposes;(e) to provide for establishing and maintaining a fund to be known as the national rural credit (short term operations) fund by the national bank for providing financial assistance by way of loans and advances 4 the bill seeks to achieve the above objectsnew delhi;p chidambaramthe 22 april, 2013 ———— president's recommendation under article 117 of the constitution of india[copy of letter no 7/3/2010-ac, dated 22 april, 2013 from shri p chidambaram, minister of finance to the secretary-general, lok sabha]the president, having been informed of the subject matter of the national bank for agriculture and rural development (amendment) bill, 2013, has recommended the introduction of the said bill in lok sabha under clause (1) of article 117 of the constitution of india financial memorandumclause 4 of the bill seeks to amend the proviso to sub-section (1) of section 4 of the national bank for agriculture and rural development act, 1981 so as to increase the capital of the national bank from five thousand crores of rupees to twenty thousand crores of rupees it also amends sub-section (2) of the said section for providing that the reserve bank shall be given by the central government, in cash, for transfer to, and vesting in the central government of the capital of the national bank which has been subscribed by the reserve bank, an amount equal to the face value of the said subscribed capital, valued at twenty crores of rupees2 clause 20 of the bill seeks to insert a new section 42a in the said act to provide that the national bank shall establish and maintain a fund to be known as the national rural credit (short term operations) fund sub-section (2) of proposed section 42aprovides that the fund shall include such sums of money as the central government may contribute from time to time3 any cash payment by the central government to be made to the reserve bank pursuant to the provisions of the bill or any contribution to the national rural credit (short term operations) fund will be made with the due approval of the parliament the amount of contribution to the made to the said fund cannot be estimated at present as it would depend upon the circumstances at the point of time of making such contribution annexure extracts from the national bank for agriculture and rural development act, 1981 (61 of 1981) 2 in this act, unless the context otherwise requires,—definitions (d) "central co-operative bank" means the principal co-operative society in a district in a state, the primary object of which is the financing of other co-operative societies in that district: provided that in addition to such principal society in a district, or where there is no such principal society in a district, the state government may declare any one or more co-operative societies carrying on the business of financing other co-operative societies in that district to be also or to be a central co-operative bank or central cooperative banks within the meaning of this definition;(e) "chairman" means the chairman appointed under section 6;2 of 1912(f) "co-operative society" means a society registered, or deemed to be registered, under the co-operative societies act, 1912 or any other law relating to co-operative societies for the time being in force in any state; ( j) "managing director" means the managing director appointed under section 6; (q) "rural development" means development of rural areas through any activities conducive to such developmentexplanation—for the purposes of this clause,—(a) activities conducive to development of rural areas include activities relating to production of goods or provision of services in rural areas and activities for the promotion of cottage and village industries, industry in the tiny and decentralised sector and small-scale industry and handicrafts and other rural crafts;(b) "rural area" means the area comprised in any village and includes the area comprised in any town, the population of which does not exceed ten thousand or such other figure as the reserve bank may specify from time to time; (u) "state co-operative bank" means the principal co-operative society in a state, the primary object of which is the financing of other co-operative societies in the state:provided that in addition to such principal society in a state, or where there is no such principal society in a state, the state government may declare any one or more co-operative societies carrying on business in that state to be also or to be a state cooperative bank or state co-operative banks within the meaning of this definition; chapter ii establishment of the national bank for agriculture and rural development and capital thereof3 (1) (3) the head office of the national bank shall be at bombay or at such other place as the central government may, by notification, specifyestablishment and incorporation of national bank for agriculture and rural development(4) the national bank may establish offices, branches or agencies at any place in india, and with the previous approval of the central government and in consultation with the reserve bank, at any place outside india4 (1) the capital of the national bank shall be one hundred crores of rupees:capitalprovided that the central government may, in consultation with the reserve bank and by notification, increase the said capital up to five thousand crores of rupees(2) the capital of the national bank shall be subscribed to by the central government and the reserve bank to such extent and in such proportion as may be notified by the central government in consultation with the reserve bank, from time to time:provided that the national bank may issue capital to such institutions and persons in such manner as may be notified by the central government:provided further that the combined shareholding of the central government and the reserve bank shall not at any time be less than fifty-one per cent of the total subscribed capital chapter iii management of the national bankmanagement5 (1) (3) subject to the provisions of sub-section (1) and save as otherwise provided in the regulations made under this act, the managing director shall also have powers of general superintendence, direction and management of the affairs and business of the national bank and may also exercise all powers and do all acts and things which may be exercised or done by the national bank:provided that during the period of any casual vacancy of the nature referred to in section 11 in the office of the managing director, the chairman may also exercise the powers and discharge the functions of the managing director until the person appointed by the central government under section 11 to act as managing director enters upon his office(4) any whole-time director appointed under sub-section (3) of section 6 shall assist the managing director in the discharge of his functions under sub-section (3) and perform such duties as the board may entrust or delegate to him(5) in the discharge of his powers and functions under sub-section (3), the managing director shall follow such directions as the chairman may give(6) in the discharge of its functions under this act, the national bank shall be guided by such directions in matters of policy involving public interest as the central government, in consultation with the reserve bank, or the reserve bank, may give in writingboard of directors6 (1) the board of directors of the national bank shall consist of the following, namely:—(a) chairman; (f) such number of directors elected in the prescribed manner, by shareholders other than the reserve bank, the central government and other institutions owned or controlled by the central government whose names are entered on the register of shareholders of the national bank ninety days before the date of the meeting in which such election takes place on the following basis, namely:—two directors;(i) where the total amount of equity share capitalissued to such shareholders is ten per cent or less of the total issued equity capitalthree directors;and(ii) where the total amount of equity share capitalissued to such shareholders is more than ten per cent but less than twenty-five per cent of the total issued equity capitalfour directors:(iii) where the total equity share capital issued to suchshareholders is twenty-five per cent or more of the total issued equity capitalprovided that until the assumption of charge by the elected directors under this clause, the central government may at any time nominate such number of directors not exceeding four from amongst persons having special knowledge of, an professional experience in, agricultural science, technology, economics, banking, co-operatives, law, rural finance, investment, accountancy, marketing or any other matter, the special knowledge of, and professional experience in, which would, in the opinion of the central government, be useful to the national bank for carrying out its functions; and(g) a managing director(2) the chairman and other directors, excluding the directors referred to in clause (f), shall be appointed by the central government in consultation with the reserve bank:provided that no such consultation shall be necessary in the case of directors appointed under clause (d) of sub-section (1)(3) where the central government is satisfied, in consultation with the reserve bank, that it is necessary so to do, it may appoint one or more whole-time directors with such designations as may be deemed appropriate by that government and any whole-time director so appointed shall also be member of the board7 (1) the chairman shall hold office for such term not exceeding five years and shall receive such salary and allowances as the central government may, at the time of appointment, specify and shall be eligible for re-appointmentterm of office of chairman and other directors, retirement and payment of fees(1a) notwithstanding anything contained in sub-section (1), the central government shall have the right to terminate the term of office of the chairman at any time before the expiry of the term specified under that sub-section by giving him a notice of not less than three months in writing or three months' salary and allowances in lieu of such notice(1b) in the case of a vacancy in the office of the chairman, the managing director shall perform the functions and duties of the chairman during such vacancy (3) the central government may, in consultation with the reserve bank, remove the chairman at any time before the expiry of his term of office after giving him a reasonable opportunity of showing cause against the proposed removal(4) the chairman and any other director, who is not an officer of the central government or a state government or an officer of the reserve bank or any body or corporation established by or under any central act or any state act and owned or controlled by such government, shall be paid such fees and allowances as may be prescribed for attending the meetings of the board or of any of its committees and for attending to any other work of the national bank:provided that no such fee shall be payable to the chairman or any other director, who is an officer of the government or an officer of the reserve bank8 (1) the managing director and any whole-time director appointed under sub-section (3) of section 6 shall,—(a) hold office for such term not exceeding five years as the central government may, at the time of appointment, specify, and shall be eligible for re-appointment;term of office of managing director and whole-time directors, conditions of service, etc(b) receive such salary and allowances and be governed by such terms and conditions of service as the board may, with the previous approval of the central government and in consultation with the reserve bank, determine: provided that the managing director and any such whole-time director appointed to the first board shall receive such salary and allowances and be governed by such terms and conditions of service as the central government may, in consultation with the reserve bank, determine(2) the central government may, in consultation with the reserve bank, remove the managing director or any whole-time director appointed under sub-section (3) of section 6 at any time before the expiry of his term of office, after giving him a reasonable opportunity of showing cause against the proposed removal(3) notwithstanding anything contained in sub-section (1) or sub-section (2), the central government shall have the right to terminate the term of office of the managing director or of any whole-time director appointed under sub-section (3) of section 6 at any time before the expiry of the term fixed under sub-section (1) by giving him notice of not less than three months in writing or three months' salary and allowances in lieu of such notice:provided that the central government shall, before terminating the term of office of the managing director or any whole-time director appointed under sub-section (3) of section 6, consult the reserve bank casual vacancy in the office of managing director meetings of board borrowings by the national bank11 if the managing director is by infirmity or otherwise rendered incapable of carrying out his duties or is absent on leave or otherwise, in circumstances not involving the vacation of his appointment, the central government may, after consultation with the reserve bank and the board, appoint another person to act in his place as managing director during his absence12 (1) (2) the chairman of the board, or, if for any reason he is unable to attend any meeting, the managing director and in the absence of both, the chairman and the managing director, any other director nominated by the chairman in this behalf, and in the absence of such nomination, any other director elected by the directors present at the meeting, shall preside at the meeting of the board(3) all questions which come up before any meeting of the board shall be decided by a majority of votes of the directors present and voting, and in the event of an equality of votes, the chairman, or, in his absence, the person presiding, shall have a second or casting vote chapter vborrowings by the national bank19 the national bank may, for the purpose of carrying out its functions under this act,— (d) accept from the central government, a state government, a local authority, a state land development bank, a state co-operative bank or a scheduled bank or any person or body, whether incorporated or not, deposits repayable on such terms as the national bank may, with the approval of the reserve bank, fix; and chapter vi credit functions of the national bankproduction and marketing credit21 (1) the national bank may provide by way of refinance, loans and advances, repayable on demand or on the expiry of fixed periods not exceeding eighteen months, to state co-operative banks, central co-operative banks, regional rural banks, or to any financial institution or to any class of financial institutions, which are approved by the reserve bank in this behalf, for financing— [10] m c(v) the production or marketing activities of artisans or of small-scale industries, industries in the tiny and decentralised sector, village and cottage industries or of those engaged in the field of handicrafts and other rural crafts [10] m c(4) notwithstanding anything contained in sub-sections (2) and (3), the national bank may also make loans and advances repayable on demand or on the expiry of fixed periods not exceeding eighteen months against promissory notes of a state co-operative bank or a regional rural bank or an institution approved under sub-section (1):provided that the borrowing institution furnishes a declaration in writing, setting out the purpose for which it has made loans and advances and such other particulars as may be required by the national bank [10] m cconversion loan for production credit22 where the national bank is satisfied that owing to drought, famine or other natural calamities, military operations or enemy action, any state co-operative bank, central cooperative bank, regional rural bank or any such financial institution or any financial institution falling under any such class of financial institutions, as may be approved by the reserve bank in this behalf, requires assistance under this section, it may provide to such bank or institution such financial assistance as it may deem fit by way of making loans and advances repayable on the expiry of fixed periods not exceeding seven years and on such terms and conditions as may be specified in this behalf by the national bank:provided that loans and advances may be made under this section only for the purpose of enabling the borrowing bank or institution,—(a) to pay any dues to the national bank for credit extended for financing agricultural operations or the marketing of crops under clause (i) of sub-section (1) of section 21, or(b) (i) to make loans or advances to central co-operative banks or primary rural credit societies in cases where the borrowing bank is a state co-operative bank, and(ii) to make loans and advances to primary rural credit societies in cases wherethe borrowing bank is a central co-operative bank,and such loans or advances in both the cases being repayable on the expiry of fixed periods not being less than eighteen months and not exceeding seven years, by way of reimbursement of loans and advances made by such co-operative banks or societies for agriculture or agricultural operations or for reimbursement of such loans or advances which have been converted into loans or advances repayable on expiry of fixed periods not being less than eighteen months and not exceeding seven years from the date of conversion:provided further that no loan or advance shall be made under this section to a state co-operative bank or a central co-operative bank unless such loan or advance is fully guaranteed as to the repayment of the principal and payment of interest, by the state governmentrescheduling of loans to artisans, smallscale industries, etc23 where the national bank is satisfied that owing to unforeseen circumstances the rescheduling of any loans and advances made to artisans, small-scale industries, industries in the tiny and decentralised sector, village and cottage industries and those engaged in the field of handicrafts and other rural crafts, by any state co-operative bank, regional rural bank or any such financial institution or any financial institution falling under such class of financial institutions as may be approved by the reserve bank in this behalf, has become necessary, it may provide to such bank or institution such financial assistance as it may deem fit by way of loans and advances repayable on the expiry of fixed periods not being less than eighteen months and not exceeding seven years against such securities as may be specified in this behalf by the national bank:provided that no loan or advance shall be made under this section to a state cooperative bank unless such loan or advance is fully guaranteed as to the repayment of the principal and payment of interest, by the state government but such guarantee may be waived by the national bank if other security to the satisfaction of the national bank is furnished, or if, for reasons to be recorded by it in writing, the national bank is satisfied that the guarantee or other security is not necessaryinvestment credit-medium term24 the national bank shall provide such financial assistance as it may consider necessary by way of making to state co-operative banks, regional rural banks, loans and advances repayable on the expiry of fixed periods not being less than eighteen months and not exceeding seven years against such securities as may be specified, in this behalf, by the national bank and such loans or advances may be made for agriculture, rural development or such other purposes as the national bank may, from time to time, determine:provided that no loan or advance shall be made under this section to a state cooperative bank unless such loan or advance is fully guaranteed as to the repayment of the principal and payment of interest, by the state government but such guarantee may be waived by the national bank, if other security to the satisfaction of the national bank is furnished, or if, for reasons to be recorded by it in writing, the national bank is satisfied that the guarantee or other security is not necessaryother investment credit25 (1) the national bank may provide such financial assistance as it may consider necessary for promoting agriculture and rural development by—(a) making loans and advances, by way of refinance, on such terms and conditions as the national bank may think fit to impose, to a state land development bank or a state co-operative bank or a scheduled bank or any other financial institution approved by the reserve bank in this behalf, and also rescheduling the payment of such loans and advances:provided that the maximum period for which any such loan or advance may be granted, whether originally or by rescheduling the payment thereof, shall not exceed twenty-five years;(b) purchasing or selling, or subscribing to the bonds or debentures issued by any bank or institution referred to in clause (a) and repayable within a period not exceeding twenty-five years from the dates on which they are issued;(c) making loans and advances on such terms and conditions as the national bank may think fit to impose, to a state co-operative bank or a scheduled bank for the purpose of enabling such bank to make loans or advances to artisans, small-scale industries, industries in the tiny and decentralised sector, village and cottage industries and those engaged in the field of handicrafts and other rural crafts and also rescheduling the payment of such loans and advances:provided that the maximum period for which any such loan or advance may be granted, whether originally or by rescheduling the payment thereof, shall not exceed twenty-five years;(d) making, where it is considered necessary so to do in connection with any financial assistance under clause (a) or clause (b) or clause (c) to a state land development bank or a state co-operative bank or a scheduled bank, loans and advances repayable on demand or on the expiry of a fixed period not exceeding eighteen months, by way of refinance or otherwise to such bank and also rescheduling the payment of such loans and advances for such period as the national bank may deem fit promotion of subsidiaries38a the national bank may, in consultation with the reserve bank, promote, form or manage or associate itself in promotion, formation or management of companies, subsidiaries, affiliates, societies, trusts or such other association of persons, as it may deem fit, for the purpose of carrying out its functions under this act disposal of surplus47 after making provision for bad and doubtful debts, depreciation of assets and all other matters for which provision is necessary or expedient or which is usually provided for by bankers, and for the funds referred to in sections 42, 43 and 45, the national bank shall transfer—(i) for a period of fifteen years, following the accounting year during which the national bank is established, the amount remaining (hereafter in this section referred to as surplus) to the research and development fund under section 44; and(ii) after the expiry of the said period of fifteen years, the board shall, after making provision for the fund referred to in clause (i), disburse or spend the balance of the surplus in such manner as may be approved by the board ———— a billfurther to amend the national bank for agriculture and rural development act, 1981————(shri p chidambaram, minister of finance)gmgipmrnd—519ls(s4)—29042013 | Parliament_bills | d0b1fc4d-6eed-57fc-a669-b52c8b2c2916 |
bill no 184 of 2014 the public premises (eviction of unauthorised occupants) amendment bill, 2014 a billfurther to amend the public premises (eviction of unauthorised occupants) act, 1971be it enacted by parliament in the sixty-fifth year of the republic of india as follows:—short title and commencement1 (1) this act may be called the public premises (eviction of unauthorised occupants)amendment act, 2014(2) it shall come into force on such date as the central government may, by notification in the official gazette, appoint540 of 1971amendment of section 22 in the public premises (eviction of unauthorised occupants) act,1971 (hereinafter referred as the principal act), in section 2,—(a) in clause (e), in sub-clause (2),—1 of 1956 18 of 201310(a) in item (i), for the words and figures "the companies act, 1956", thewords and figures "the companies act, 2013" shall be substituted;1 of 1956 18 of 2013(b) in item (ii), for the words and figures "the companies act, 1956", thewords and figures "the companies act, 2013" shall be substituted;(c) for item (iii), the following items shall be substituted, namely:—18 of 20135"(iii) any company as defined in clause (20) of section 2 of the companies act, 2013 in which not less than fifty-one per cent of the paidup capital is held partly by the central government and partly by one or more state governments and includes a company which is a subsidiary (within the meaning of that act) of the first-mentioned company and which carries on the business of public transport including metro railways60 of 2002explanation— for the purposes of item (vii), "metro railway" shall have the same meaning as assigned to it in clause (i) of sub-section (1) of section 2 of the metro railway (operation and maintenance) act, 2002 (iiia) any university established or incorporated by any central act;";10(d) for item (v), the following item shall be substituted, namely:—38 of 1963"(v) any board of trustees or any successor company constituted under or referred to in the major port trusts act, 1963;"; (e) in sub-clause (3),—1544 of 199466 of 1957(a) in item (i), for the words "municipal corporation", the words, brackets and figures "council as defined in clause (9) of section 2 of the new delhi municipal council act, 1994 or corporation or corporations notified under sub-section (1) of section 3 of the delhi municipal corporation act, 1957," shall be substituted;(b) after item (iii), the following item shall be inserted, namely:—2018 of 2013"(iv) any premises belonging to, or taken on lease by, or on behalf of any government company as defined in clause (45) of section 2 of the companies act, 201325explanation— for the purposes of this clause, the expression,"state government" occurring in clause (45) of the said section shall mean the government of the national capital territory of delhi" (f) in clause (fa) in sub-clause (ii) after the words 'in item (i) of sub-clause(2),' the words 'in item (iv) of sub-clause (3)' shall be inserted(g) in clause (fa) in sub-clause (v), for the words "corporation", the words"council, corporation or corporations" shall be substituted303 in section 4 of the principal act,—amendment of section 4(a) for sub-section (1), the following sub-section shall be substituted, namely:—35"(1) if the estate officer has information that any person is in unauthorisedoccupation of any public premises and that he should be evicted, the estate officer shall issue in the manner hereinafter provided a notice in writing within seven working days from the date of receipt of the information regarding the unauthorised occupation calling upon the person concerned to show cause why an order of eviction should not be made40(1a) if the estate officer knows or has reasons to believe that any personis in unauthorised occupation of the public premises, then, without prejudice to the provisions of sub-section (1), he shall forthwith issue a notice in writingcalling upon the person concerned to show cause why an order of eviction should not be made(1b) any delay in issuing a notice referred to in sub-sections (1) and (1a)shall not vitiate the proceedings under this act";45(b) in sub-section (2), in clause (b), in sub-clause (i), for the words "earlier than"the words "later than" shall be substituted4 in section 5 of the principal act,—amendment of section 5(a) for sub-section (1), the following sub-section shall be substituted, namely:—50"(1) if, after considering the cause, if any, shown by any person in pursuance of a notice under section 4 and any evidence produced by him in5support of the same and after personal hearing, if any, given under sub-clause (ii) of clause (b) of sub-section (2) of section 4, the estate officer is satisfied that the public premises are in unauthorised occupation, the estate officer shall make an order of eviction, for reasons to be recorded therein, directing that the public premises shall be vacated, on such date as may be specified in the order but not later than fifteen days from the date of the order, by all persons who may be in occupation thereof or any part thereof, and cause a copy of the order to be affixed on the outer door or some other conspicuous part of the public premises:10provided that every order under this sub-section shall be made by the estate officer as expeditiously as possible and all endeavour shall be made by him to issue the order within fifteen days of the date specified in the notice under sub-section (1) or sub-section (1a), as the case may be, of section 4"; (b) after sub-section (2), the following proviso shall be inserted, namely:—15"provided that if the estate officer is satisfied, for reasons to be recorded in writing, that there exists any compelling reason which prevents the person from vacating the premises within fifteen days, the estate officer may grant another fifteen days from the date of expiry of the order under sub-section (1) to the person to vacate the premises";5 in section 7 of the principal act,—amendment of section 720(a) in sub-section (2a), for the words "simple interest", the words "compound interest" shall be substituted;(b) in sub-section (3), for the words "within such time as may be specified in the notice", the words "within seven days from the date of issue thereof" shall be substituted;(c) after sub-section (3), the following sub-section shall be inserted, namely:—25"(4) every order under this section shall be made by the estate officer as expeditiously as possible and all endeavour shall be made by him to issue the order within fifteen days of the date specified in the notice"6 in section 9 of the principal act,—amendment of section 9(a) in sub-section (2), for the proviso, the following proviso shall be substituted, namely:—30"provided that the appellate officer may entertain the appeal in exceptional cases after the expiry of the said period, if he is satisfied for reasons to be recorded in writing that there was compelling reasons which prevented the person from filing the appeal in time";(b) for sub-section (4), the following sub-section shall be substituted, namely:—35"(4) every appeal under this section shall be disposed of by the appellate officer as expeditiously as possible and every endeavour shall be made to dispose of the appeal finally within one month from the date of filing the appeal, after providing the parties an opportunity of being heard" statement of objects and reasonsthe public premises (eviction of unauthorised occupants), act, 1971 was enacted to provide for speedy machinery for the eviction of unauthorised occupants from public premises, including the premises of government companies and those of corporations established by or under any central act2 the delhi metro railway corporation (dmrc) had requested that metro properties be declared as public premises by amending the pp (e) act, 1971 and to confer powers of an estate officer under the said act, to the officers of the dmrc to be appointed by the central government for dealing with the problem of eviction in a more expeditious manner3 clause (e) of section 2 of the pp(e) act, 1971 contains the definition of public premises item (i) of sub-clause (2) of clasue (e) of section 2 of pp(e) act, 1971 provides that any premises belonging to, or taken on lease by, or on behalf of any company as defined in section 3 of the companies act, 1956, in which not less than fifty-one per cent of the paid-up share capital is held by the central government or any company which is a subsidiary (within the meaning of that act) of the first-mentioned company as public premises the paid-up share capital held partly by the central government and partly by one or more state governments is not included under this item4 the companies act, 1956 now stands reenacted as companies act, 2013 5 it is, therefore, proposed to include within the meaning of public premises any premises belonging to, or taken on lease by, or on behalf of, any company as defined in clause (20) of section 2 of the companies act, 2013 in which not less than fifty-one per cent of the paid-up capital is held partly by the central government and partly by one or more state governments and includes a company which is a subsidiary (within the meaning of that act) of the first-mentioned company and which carries on business of public transport including metro railways by substituting existing item (iii) in sub-clause (2) of clause (e) under section 2 of the pp(e) act, 19716 as the major port trusts act, 1963 is being amended to include any successor company constituted under or referred to in this act to the existing board of trustees, it is proposed to make similar changes in item (v) of sub-clause (2) of clause (e) of section 2 of pp(e) act 19717 the public premises, in relation to the national capital territory of delhi means, any premises belonging to the municipal corporation of delhi, or any municipal committee or notified area committee under the provisions as contained in item (i) of sub-clause (3) of clause (e) of section 2 of public premises (eviction of unauthorised occupants), act, 1971 an issue was raised in a case before the hon'ble high court of delhi in a civil writ petition no 9664/2007 as to whether the expression "municipal committee" or "notified area committee" in the national capital territory of delhi would include the muncipal council as defined in clause (e) of section 2 of the public premises (eviction of unauthorised occupants), act, 1971 the hon'ble high court held that there is no question of any ambiguity in expression "any municipal committee or notified area committee" used in relation to any premises held by them and dismissed the writ petition to avoid reoccurrence of any litigation in future and to remove any doubts, it is proposed to bring muncipal council within the purview of public premises by amending section 2 of the pp(e) act, 19718 it is proposed to substitute the word "municipal corporation" by the phrase"corporation or corporations" notified under sub-section (1) of section (3) of the ''delhi municipal corporation act, 1957", as per recommendation of the parliamentary standing committee on urban development9 in relation to national capital territory of delhi, it is proposed to bring any premises belonging to, or taken on lease by, or on behalf of any government company as defined in clause (45) of section 2 of the companies act, 2013 under the purview of public premises, by incorporating a new item (iv) below section 2(e)(3)(iii) of the act10 it is also proposed to make consequential amendments in sub-clause (ii) and (v) of clause (fa) of section 2 of the act so that officers of the proposed companies and new delhi municipal council can be appointed as estate officers under section 3 of the pp(e) act, 197111 the parliamentary standing committee (psc) on urban development had given certain observations/recommendations on public premises (eviction of unauthorised occupants) amendment bill, 2011 further, the hon'ble supreme court had given twenty suggestions with regard to unauthorised occupancy in para 28 of its judgment dated 05072013 in civil appeal no 4064/2004 in the case of sd bandi vs divisional traffic officer, karnataka state road transport corporation (ksrtc) & ors the observations/ recommendations of the psc and the suggestions given by the hon'ble supreme court were aimed at smooth and speedy eviction of unauthorised occupants from the public premises in a time-bound manner in order to give statutory form to four recommendations of the parliamentary standing committee and eighteen suggestions given by the hon'ble supreme court in the aforesaid judgment, which have been accepted by the government, certain suitable amendments have been proposed in section 4, section 5, section 7 and section 9 of the pp(e) act, 197112 out of the above mentioned twenty suggestions given by the hon'ble supreme court, two suggestions were not accepted as it may have lead to further delays in the proceedings under pp(e) act, 197113 the bill seeks to achieve the above objectivesnew delhi;m venkaiah naiduthe 4th december, 2014 annexure extracts from the public premises (eviction of unauthorised occupants act, 1971) (40 of 1971)| | | | | ||------|------|------|------|-----|definitions2 in this act, unless the context otherwise requires,—| | | | | ||------|------|------|------|-----|(e) "public premises" means—61 of 1980(1) any premises belonging to, or taken on lease or requisitioned by, or onbehalf of, the central government, and includes any such premises which have been placed by that government, whether before or after the commencement of the public premises (eviction of unauthorised occupants) amendment act, 1980,under the control of the secretariat of either house of parliament for providing residential accommodation to any member of the staff of that secretariat;(2) any premises belonging to, or taken on lease by, or on behalf of,—1 of 1956(i) any company as defined in section 3 of the companies act, 1956,in which not less than fifty-one per cent of the paid-up share capital is held by the central government or any company which is a subsidiary (within the meaning of that act) of the first-mentioned company,1 of 1956(ii) any corporation (not being a company as defined in section 3 ofthe companies act, 1956, or a local authority) established by or under a central act and owned or controlled by the central government,(iii) any university established or incorporated by any central act, (v) any board of trustees constituted under the major port trustsact, 1963,38 of 1963 (3) in relation to the national capital territory of delhi;(i) any premises belonging to the municipal corporation of delhi, or any municipal committee or notified area committee;| | | | | ||------|------|------|------|-----|(iii) any premises belonging to, or taken on lease or requisitioned by, or on behalf of any state government or the government of any union territory;issue of notice to show cause against order of eviction4 (1) if the estate officer is of opinion that any persons are in unauthorised occupation of any public premises and that they should be evicted, the estate officer shall issue in the manner hereinafter provided a notice in writing calling upon all persons concerned to show cause why an order of eviction should not be made eviction unauthorised occupants5 (1) if, after considering the cause, if any, shown by any person in pursuance of a notice under section 4 and any evidence produced by him in support of the same and after personal hearing, if any, given under clause (b) of sub-section (2) of section 4 the estate officer is satisfied that the public premises are in unauthorised occupation, the estate officer may make an order of eviction, for reasons to be recorded therein, directing that the public premises shall be vacated, on such date as may be specified in the order, by all persons who may be in occupation there or any part thereof, and cause a copy of the order to be affixed on the outer door or some other conspicuous part of the public premises(2) if any person refuses or fails to comply with the order of eviction on or before the date specified in the said order or within fifteen days of the date of its publication under subsection (1), whichever is later, the estate officer or any other officer duly authorised by the estate officer in this behalf may, after the date so specified or after the expiry of the period aforesaid, whichever is later, evict that person from, and take possession of, the public premises and may, for that purpose, use such force as may be necessary 7 (1) 14 of 1978(2a) while making an order under sub-section (1) or sub-section (2), the estate officer may direct that the arrears of rent or, as the case may be, damages shall be payable together with simple interest at such rate as may be prescribed, not being a rate exceeding the current rate of interest within the meaning of the interest act, 1978power to require payment of rent or damages in respect ofpublicpremises(3) no order under sub-section (1) or sub-section (2), shall be made against any person until after the issue of a notice in writing to the person calling upon him to show cause within such time as may be specified in the notice, why such order should not be made, and until his objections, if any, and any evidence he may produce in support of the same, have been considered by the estate officer appeals9 (1) (2) an appeal under sub-section (1) shall be preferred,—(a) in the case of an appeal from an order under section 5, within twelve days from the date of publication of the order under sub-section (1) of that section;(b) in the case of an appeal from an order under section 5b or section 7, within twelve days from the date on which the order is communicated to the appellant; and(c) in the case of an appeal from an order under section 5c, within twelve days from the date of such order:provided that the appellate officer may entertain the appeal after the expiry of the said period, if he is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time, (4) every appeal under this section shall be disposed of by the appellate officer as expeditiously as possible ———— a billfurther to amend the public premises (eviction of unauthorised occupants) act, 1971————(shri m venkaiah naidu, minister of urban development, housing and urban poverty alleviation and parliamentary affairs)gmgipmrnd—3401ls(s-3)—08122014 | Parliament_bills | 109781ed-f8b9-526c-93bc-ba4affcc8b28 |
the consumer protection bill, 2018—————arrangement of clauses—————clauses chapter i preliminary1short title, extent, commencement and application2definitions chapter ii consumer protection councils3central consumer protection council4procedure for meetings of central council5objects of central council6state consumer protection councils7objects of state council8district consumer protection council9objects of district council chapter iii central consumer protection authority10establishment of central consumer protection authority11qualifications, method of recruitment chief commissioner and commissioners12vacancy, etc, not to invalidate proceedings of central authority13appointment of officers, experts, professionals and other employees of central authority14procedure of central authority15investigation wing16power of district collector17complaints to authorities18powers and functions of central authority19power of central authority to refer matter for investigation or to other regulator20power of central authority to recall goods, etc21power of central authority to issue directions and penalties against false or misleading advertisements22search and seizure23designation of any statutory authority or body to function as central authority24appeal25grants by central government clauses26accounts and audit27furnishing of annual reports, etc chapter iv consumer disputes redressal commission28establishment of district consumer disputes redressal commission29qualifications etc, of president and members of district commission30salaries, allowances and other terms and conditions of service of president and members of district commission31transitional provision32vacancy in office of members of district commission33officers and other employees of district commission34jurisdiction of district commission35manner in which complaint shall be made36proceedings before district commission37reference to mediation38procedure on admission of complaint39findings of district commission40review by district commission in certain cases41appeal against order of district commission42establishment of state consumer disputes redressal commission43qualifications etc, of president and members of state commission44salaries, allowances and other terms and conditions of service of president and members of state commission45transitional provision46officers and employees of state commission47jurisdiction of state commission48transfer of cases49procedure applicable to state commission50review by state commission in certain cases51appeal to national commission52hearing of appeal53establishment of national consumer disputes redressal commission54composition of national commission55qualifications etc, of president and members of national commission56transitional provision57other officers and employees of national commission58jurisdiction of national commission59procedure applicable to national commission60review by national commission in certain cases61power to set aside ex parte orders62transfer of cases clauses63vacancy in office of president of national commission64vacancies or defects in appointment not to invalidate orders65service of notice, etc66experts to assist national commission or state commission67appeal against order of national commission68finality of orders69limitation period70administrative control71enforcement of orders of district commission, state commission and nationalcommission72penalty for non-compliance of order73appeal against order passed under section 72 chapter v mediation74establishment of consumer mediation cell75empanelment mediators76nomination of mediators from panel77duty of mediator to disclose certain facts78replacement of mediator in certain cases79procedure for mediation80settlement through mediation81recording settlement and passing of order chapter vi product liability82application of chapter83product liability action84liability of product manufacturer85liability of product service provider86liability of product sellers87exceptions to product liability action chapter vii offences and penalties88penalty for non-compliance of direction of central authority89punishment for false or misleading advertisement90punishment for manufacturing for sale or storing, selling or distributing or importing products containing adulterant91punishment for manufacturing for sale or for storing or selling or distributing or importing spurious goods92cognizance of offence by court93vexatious search(iv)clauses chapter viii miscellaneous94measures to prevent unfair trade practices in e-commerce, direct selling, etc95president, members, chief commissioner, commissioner and certain officers to be public servants96compounding of offence97manner of crediting penalty98protection of action taken in good faith99power to give directions by central government100act not in derogation of any other law101power of central government to make rules102power of state government to make rules103power of national commission to make regulations104power of central authority to make regulations105rules and regulations to be laid before each house of parliament106power to remove difficulties107repeal and savings bill no 1 of 2018 the consumer protection bill, 2018 a billto provide forprotection of the interests of consumers and for the said purpose, to establish authorities for timely and effective administration and settlement of consumers' disputes and for matters connected therewith or incidental theretobe it enacted by parliament in the sixty-eighth year of the republic of india as follows:— chapter i preliminary51 (1) this act may be called the consumer protection act, 2018(2) it extends to the whole of india except the state of jammu and kashmirshort title, extent, commencement and application10(3) it shall come into force on such date as the central government may, by notification, appoint and different dates may be appointed for different states and for different provisions of this act and any reference in any such provision to the commencement of this act shall be construed as a reference to the coming into force of that provision(4) save as otherwise expressly provided by the central government, by notification, this act shall apply to all goods and servicesdefinitions2 in this act, unless the context otherwise requires,—(1) "advertisement" means any audio or visual publicity, representation, endorsement or pronouncement made by means of light, sound, smoke, gas, print, electronic media, internet or website and includes any notice, circular, label, wrapper, invoice or such other documents;5(2) "appropriate laboratory" means a laboratory or an organisation—(i) recognised by the central government; or (ii) recognised by a state government, subject to such guidelines as may be issued by the central government in this behalf; or10(iii) established by or under any law for the time being in force, which is maintained, financed or aided by the central government or a state government for carrying out analysis or test of any goods with a view to determining whether such goods suffer from any defect; (3) "branch office" means—(i) any office or place of work described as a branch by the establishment; or15(ii) any establishment carrying on either the same or substantially the same activity carried on by the head office of the establishment; (4) "central authority" means the central consumer protection authority established under section 10;20(5) "complainant" means—(i) a consumer; or (ii) any voluntary consumer association registered under any law for the time being in force; or(iii) the central government or any state government; or25(iv) the central authority; or (v) one or more consumers, where there are numerous consumers having the same interest; or(vi) in case of death of a consumer, his legal heir or legal representative; or (vii) in case of a consumer being a minor, his parent or legal guardian30(6) "complaint" means any allegation in writing, made by a complainant for obtaining any relief provided by or under this act, that—(i) an unfair contract or unfair trade practice or a restrictive trade practice has been adopted by any trader or service provider;35(ii) the goods bought by him or agreed to be bought by him suffer from one or more defects;(iii) the services hired or availed of or agreed to be hired or availed of by him suffer from any deficiency;40(iv) a trader or a service provider, as the case may be, has charged for the goods or for the services mentioned in the complaint, a price in excess of the price—(a) fixed by or under any law for the time being in force; or (b) displayed on the goods or any package containing such goods; or(c) displayed on the price list exhibited by him by or under any law for the time being in force; or(d) agreed between the parties;(v) the goods, which are hazardous to life and safety when used, are being offered for sale to the public—5(a) in contravention of standards relating to safety of such goods as required to be complied with, by or under any law for the time being in force;10(b) where the trader knows that the goods so offered are unsafe to the public; (vi) the services which are hazardous or likely to be hazardous to life and safety of the public when used, are being offered by a person who provides any service and who knows it to be injurious to life and safety;15(vii) a claim for product liability action lies against the product manufacturer, product seller or product service provider, as the case may be(7) "consumer" means any person who—20(i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or25 30(ii) hires or avails of any service for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such service other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person, but does not include a person who avails of such service for any commercial purposeexplanation—for the purposes of this clause,—(a) the expression "commercial purpose" does not include use by a person of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of self-employment;35(b) the expressions "buys any goods" and "hires or avails any services"includes offline or online transactions through electronic means or by teleshopping or direct selling or multi-level marketing;40(8) "consumer dispute" means a dispute where the person against whom a complaint has been made, denies or disputes the allegations contained in the complaint;(9) "consumer rights" includes,—(i) the right to be protected against the marketing of goods, products or services which are hazardous to life and property;45(ii) the right to be informed about the quality, quantity, potency, purity,standard and price of goods, products or services, as the case may be, so as to protect the consumer against unfair trade practices;(iii) the right to be assured, wherever possible, access to a variety ofgoods, products or services at competitive prices;(iv) the right to be heard and to be assured that consumer's interests will receive due consideration at appropriate fora;(v) the right to seek redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumers; and(vi) the right to consumer awareness;5 10(10) "defect" means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods or product and the expression defective shall be construed accordingly;(11) "deficiency" means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service and includes—15(i) any act of negligence or omission or commission by such person which causes loss or injury to the consumer; and(ii) deliberate withholding of relevant information by such person to the consumer;20(12) "design", in relation to a product, means the intended or known physical and material characteristics of such product and includes any intended or known formulation or content of such product and the usual result of the intended manufacturing or other process used to produce such product;(13) "direct selling" means marketing, distribution and sale of goods or provision of services through a network of sellers, other than through a permanent retail location;25(14) "director general" means the director general appointed under sub-section (2) of section 15;(15) "district commission" means a district consumer disputes redressal commission established under sub-section (1) of section 28;30(16) "e-commerce" means buying or selling of goods or services including digital products over digital or electronic network;(17) "electronic service provider" means a person who provides technologies or processes to enable a product seller to engage in advertising or selling goods or services to a consumer and includes any online market place or online auction sites;35(18) "endorsement", in relation to an advertisement, means—(i) any message, verbal statement, demonstration; or (ii) depiction of the name, signature, likeness or other identifiable personal characteristics of an individual; or(iii) depiction of the name or seal of any institution or organisation,40which makes the consumer to believe that it reflects the opinion, finding or experience of the person making such endorsement;45(19) "establishment" includes an advertising agency, commission agent, manufacturing, trading or any other commercial agency which carries on any business, trade or profession or any work in connection with or incidental or ancillary to any commercial activity, trade or profession, or such other class or classes of persons including public utility entities in the manner as may be prescribed;(20) "express warranty" means any material statement, affirmation of fact, promise or description relating to a product or service warranting that it conforms to such material statement, affirmation, promise or description and includes any sample or model of a product warranting that the whole of such product conforms to such sample or model;534 of 2006(21) "goods" means every kind of movable property and includes "food" as defined in clause (j) of sub-section (1) of section 3 of the food safety and standards act, 2006;(22) "harm", in relation to a product liability, includes—10(i) damage to any property, other than the product itself;(ii) personal injury, illness or death; (iii) mental agony or emotional distress attendant to personal injury orillness or damage to property; or15(iv) any loss of consortium or services or other loss resulting from a harm referred to in sub-clause (i) or sub-clause (ii) or sub-clause (iii), but shall not include any harm caused to a product itself or any damage to the property on account of breach of warranty conditions or any commercial or economic loss, including any direct, incidental or consequential loss relating thereto;20(23) "injury" means any harm whatever illegally caused to any person, in body, mind or property;(24) "manufacturer" means a person who—(i) makes any goods or parts thereof; or (ii) assembles any goods or parts thereof made by others; or25(iii) puts or causes to be put his own mark on any goods made by any other person; (25) "mediation" means the process by which a mediator mediates the consumer disputes;(26) "mediator" means a mediator referred to in section 75;30(27) "member" includes the president and a member of the national commission or a state commission or a district commission, as the case may be;(28) "misleading advertisement" in relation to any product or service, means an advertisement, which—(i) falsely describes such product or service; or35(ii) gives a false guarantee to, or is likely to mislead the consumers as to the nature, substance, quantity or quality of such product or service; or(iii) conveys an express or implied representation which, if made by the manufacturer or seller or service provider thereof, would constitute an unfair trade practice; or(iv) deliberately conceals important information;40(29) "national commission" means the national consumer disputes redressalcommission established under sub-section (1) of section 53;(30) "notification" means a notification published in the official gazette and the term notify shall be construed accordingly;(31) "person" includes—(i) an individual; (ii) a firm whether registered or not; (iii) a hindu undivided family; (iv) a co-operative society;521 of 1860(v) an association of persons whether registered under the societies registration act, 1860 or not;(vi) any corporation, company or a body of individuals whether incorporated or not;10(vii) any artificial juridical person, not falling within any of the preceding sub-clauses; (32) "prescribed" means prescribed by rules made by the central government, or as the case may be, the state government;15(33) "product" means any article or goods or substance or raw material or any extended cycle of such product, which may be in gaseous, liquid, or solid state possessing intrinsic value which is capable of delivery either as wholly assembled or as a component part and is produced for introduction to trade or commerce, but does not include human tissues, blood, blood products and organs;20(34) "product liability" means the responsibility of a product manufacturer or product seller, of any product or service, to compensate for any harm caused to a consumer by such defective product manufactured or sold or by deficiency in services relating thereto;25(35) "product liability action" means a complaint filed by a person before a district commission or state commission or national commission, as the case may be, for claiming compensation for the harm caused to him;(36) "product manufacturer" means a person who—(i) makes any product or parts thereof; or(ii) assembles parts thereof made by others; or30(iii) puts or causes to be put his own mark on any products made by any other person; or(iv) makes a product and sells, distributes, leases, installs, prepares, packages, labels, markets, repairs, maintains such product or is otherwise involved in placing such product for commercial purpose; or35(v) designs, produces, fabricates, constructs or re-manufactures any product before its sale; or(vi) being a product seller of a product, is also a manufacturer of such product;40(37) "product seller", in relation to a product, means a person who, in the course of business, imports, sells, distributes, leases, installs, prepares, packages, labels, markets, repairs, maintains, or otherwise is involved in placing such product for commercial purpose and includes—(i) a manufacturer who is also a product seller; or (ii) a service provider, but does not include—(a) a seller of immovable property, unless such person is engaged in the sale of constructed house or in the construction of homes or flats;5(b) a provider of professional services in any transaction in which, the sale or use of a product is only incidental thereto, but furnishing of opinion, skill or services being the essence of such transaction;(c) a person who—(i) acts only in a financial capacity with respect to the sale of the product;10(ii) is not a manufacturer, wholesaler, distributor, retailer, direct seller or an electronic service provider;15(iii) leases a product, without having a reasonable opportunity to inspect and discover defects in the product, under a lease arrangement in which the selection, possession, maintenance, and operation of the product are controlled by a person other than the lessor;(38) "product service provider", in relation to a product, means a person who provides any service in respect of such product;(39) "regulations" means the regulations made by the national commission, or as the case may be, the central authority;20(40) "regulator" means body or authority established under any other law for the time being in force;25(41) "restrictive trade practice" means a trade practice which tends to bring about manipulation of price or its conditions of delivery or to affect flow of supplies in the market relating to goods or services in such a manner as to impose on the consumers unjustified costs or restrictions and shall include—(i) delay beyond the period agreed to by a trader in supply of such goods or in providing the services which has led or is likely to lead to rise in the price;30(ii) any trade practice which requires a consumer to buy, hire or avail of any goods or, as the case may be, services as condition precedent for buying, hiring or availing of other goods or services;35(42) "service" means service of any description which is made available to potential users and includes, but not limited to, the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, telecom, healthcare, boarding or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service;40(43) "spurious goods" means such goods which are falsely claimed to be genuine;(44) "state commission" means a state consumer disputes redressal commission established under sub-section (1) of section 42;45(45) "trader", in relation to any goods, means a person who sells or distributes any goods for sale and includes the manufacturer thereof, and where such goods are sold or distributed in package form, includes the packer thereof;(46) "unfair contract" means a contract between a manufacturer or trader or service provider on one hand, and a consumer on the other, having such terms which cause significant change in the rights of such consumer, including the following, namely:—5(i) requiring manifestly excessive security deposits to be given by a consumer for the performance of contractual obligations; or(ii) imposing any penalty on the consumer, for the breach of contract thereof which is wholly disproportionate to the loss occurred due to such breach to the other party to the contract; or10(iii) refusing to accept early repayment of debts on payment of applicable penalty; or(iv) entitling a party to the contract to terminate such contract unilaterally, without reasonable cause; or15(v) permitting or has the effect of permitting one party to assign the contract to the detriment of the other party who is a consumer, without his consent; or(vi) imposing on the consumer any unreasonable charge, obligation or condition which puts such consumer to disadvantage;20(47) "unfair trade practice" means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice including any of the following practices, namely: —(i) making any statement, whether orally or in writing or by visible representation including by means of electronic record, which—25(a) falsely represents that the goods are of a particular standard,quality, quantity, grade, composition, style or model;(b) falsely represents that the services are of a particular standard, quality or grade;30(c) falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new goods;(d) represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which such goods or services do not have;35(e) represents that the seller or the supplier has a sponsorship or approval or affiliation which such seller or supplier does not have;(f) makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services;40(g) gives to the public any warranty or guarantee of the performance, efficacy or length of life of a product or of any goods that is not based on an adequate or proper test thereof:provided that where a defence is raised to the effect that such warranty or guarantee is based on adequate or proper test, the burden of proof of such defence shall lie on the person raising such defence;(h) makes to the public a representation in a form that purports to be—(a) a warranty or guarantee of a product or of any goods or services; or5(b) a promise to replace, maintain or repair an article or anypart thereof or to repeat or continue a service until it has achieved a specified result,10if such purported warranty or guarantee or promise is materially misleading or if there is no reasonable prospect that such warranty, guarantee or promise will be carried out;15(i) materially misleads the public concerning the price at which a product or like products or goods or services, have been or are, ordinarily sold or provided, and, for this purpose, a representation as to price shall be deemed to refer to the price at which the product or goods or services has or have been sold by sellers or provided by suppliers generally in the relevant market unless it is clearly specified to be the price at which the product has been sold or services have been provided by the person by whom or on whose behalf the representation is made;20(j) gives false or misleading facts disparaging the goods, services or trade of another personexplanation—for the purposes of sub-clause (i), a statement that is,—(a) expressed on an article offered or displayed for sale, or on its wrapper or container; or25(b) expressed on anything attached to, inserted in, or accompanying, an article offered or displayed for sale, or on anything on which the article is mounted for display or sale; or30(c) contained in or on anything that is sold, sent, delivered,transmitted or in any other manner whatsoever made available to a member of the public,shall be deemed to be a statement made to the public by, and only by, the person who had caused the statement to be so expressed, made or contained;35(ii) permitting the publication of any advertisement, whether in any newspaper or otherwise, including by way of electronic record, for the sale or supply at a bargain price of goods or services that are not intended to be offered for sale or supply at the bargain price, or for a period that is, and in quantities that are, reasonable, having regard to the nature of the market in which the business is carried on, the nature and size of business, and the nature of the advertisement40explanation—for the purpose of sub-clause (ii), "bargain price"means,—(a) a price that is stated in any advertisement to be a bargain price, by reference to an ordinary price or otherwise; or(b) a price that a person who reads, hears or sees the advertisement, would reasonably understand to be a bargain price having regard to the prices at which the product advertised or like products are ordinarily sold;(iii) permitting—5(a) the offering of gifts, prizes or other items with the intention ofnot providing them as offered or creating impression that something is being given or offered free of charge when it is fully or partly covered by the amount charged, in the transaction as a whole;(b) the conduct of any contest, lottery, game of chance or skill, forthe purpose of promoting, directly or indirectly, the sale, use or supply of any product or any business interest, except such contest, lottery, game of chance or skill as may be prescribed;10(c) withholding from the participants of any scheme offering gifts,prizes or other items free of charge on its closure, the information about final results of the scheme15explanation—for the purpose of sub-clause (iii), the participants of a scheme shall be deemed to have been informed of the final results of the scheme where such results are within a reasonable time published, prominently in the same newspaper in which the scheme was originally advertised;20(iv) permitting the sale or supply of goods intended to be used, or are of a kind likely to be used by consumers, knowing or having reason to believe that the goods do not comply with the standards prescribed by the competent authority relating to performance, composition, contents, design, constructions, finishing or packaging as are necessary to prevent or reduce the risk of injury to the person using the goods;25(v) permitting the hoarding or destruction of goods, or refusal to sell thegoods or to make them available for sale or to provide any service, if such hoarding or destruction or refusal raises or tends to raise or is intended to raise, the cost of those or other similar goods or services;(vi) manufacturing of spurious goods or offering such goods for sale oradopting deceptive practices in the provision of services;30(vii) not issuing bill or cash memo or receipt for the goods sold or servicesrendered in such manner as may be prescribed;35(viii) refusing, after selling goods or rendering services, to take back or withdraw defective goods or to withdraw or discontinue deficient services and to refund the consideration thereof, if paid, within the period stipulated in the bill or cash memo or receipt or in the absence of such stipulation, within a period of thirty days;(ix) disclosing to other person any personal information given in confidence by the consumer unless such disclosure is made in accordance with the provisions of any law for the time being in force consumer protection councils3 (1) the central government shall, by notification, establish with effect from such date as it may specify in that notification, the central consumer protection council to be known as the central councilcentral consumer protection council45(2) the central council shall be on advisory council and consist of the following members, namely:—(a) the minister-in-charge of the department of consumer affairs in the central government, who shall be the chairperson, and(b) such number of other official or non-official members representing such interests as may be prescribed4 (1) the central council shall meet as and when necessary, but at least one meeting of the council shall be held every yearprocedure for meetings of central council5(2) the central council shall meet at such time and place as the chairperson may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed5 the objects of the central council shall be to render advice on promotion and protection of the consumers' rights under this actobjects of central council106 (1) every state government shall, by notification, establish with effect from suchdate as it may specify in such notification, a state consumer protection council for such state to be known as the state councilstateconsumerprotection councils(2) the state council shall be an advisory council and consist of the following members, namely:—15(a) the minister-in-charge of consumer affairs in the state government whoshall be the chairperson;(b) such number of other official or non-official members representing suchinterests as may be prescribed;20(c) such number of other official or non-official members, not exceeding ten, asmay be nominated by the central government(3) the state council shall meet as and when necessary but not less than two meetings shall be held every year25(4) the state council shall meet at such time and place as the chairperson may think fit and shall observe such procedure in regard to the transaction of its business, as may be prescribedobjects of state council7 the objects of every state council shall be to render advice on promotion and protection of consumer rights under this act within the state308 (1) the state government shall, by notification, establish for every district with effect from such date as it may specify in such notification, a district consumer protection council to be known as the district councildistrict consumer protection council(2) the district council shall be an advisory council and consist of the following members, namely:—(a) the collector of the district (by whatever name called), who shall be the chairperson; and35(b) such number of other official and non-official members representing suchinterests as may be prescribed(3) the district council shall meet as and when necessary but not less than two meetings shall be held every year40(4) the district council shall meet at such time and place within the district as the chairperson may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed9 the objects of every district council shall be to render advice on promotion and protection of consumer rights under this act within the districtobjects of district council chapter iii central consumer protection authority5establishment of central consumer protection authority10 (1) the central government shall, by notification, establish with effect from suchdate as it may specify in that notification, a central consumer protection authority to be known as the central authority to regulate matters relating to violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of public and consumers and to promote, protect and enforce the rights of consumers as a class10(2) the central authority shall consist of a chief commissioner and such number ofother commissioners as may be prescribed, to be appointed by the central government to exercise the powers and discharge the functions under this act(3) the headquarters of the central authority shall be at such place in the national capital region of delhi, and it shall have regional and other offices in any other place in india as the central government may decide1511 the central government may, by notification, make rules to provide for thequalifications for appointment, method of recruitment, procedure for appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of the service of the chief commissioner and commissioners of the central authorityqualifications, method of recruitment, etc chief commissioner and commissioners2012 no act or proceeding of the central authority shall be invalid merely by reason of—(a) any vacancy in, or any defect in the constitution of, the centralauthority; orvacancy, etc not to invalidate proceedings of central authority(b) any defect in the appointment of a person acting as the chief commissioneror as a commissioner; or25(c) any irregularity in the procedure of the central authority not affecting themerits of the case13 (1) the central government shall provide the central authority such number of officers and other employees as it considers necessary for the efficient performance of its functions under this act30appointment of officers, experts, professionals and other employees of central authority(2) the salary and allowances payable to, and the other terms and conditions ofservice of, the officers and other employees of the central authority appointed under this act shall be such as may be prescribed35(3) the central authority may engage, in accordance with the procedure specified by regulations, such number of experts and professionals of integrity and ability, who have special knowledge and experience in the areas of consumer rights and welfare, consumer policy, law, medicine, food safety, health, engineering, product safety, commerce, economics, public affairs or administration, as it deems necessary to assist it in the discharge of its functions under this act40procedure of central authority14 (1) the central authority shall regulate the procedure for transaction of itsbusiness and allocation of its business amongst the chief commissioner and commissioners as may be specified by regulations(2) the chief commissioner shall have the powers of general superintendence,direction and control in respect of all administrative matters of the central authority:provided that the chief commissioner may delegate such of his powers relating to administrative matters of the central authority, as he may think fit, to any commissioner (including commissioner of a regional office) or any other officer of the central authorityinvestigation wing515 (1) the central authority shall have an investigation wing headed by adirector-general for the purpose of conducting inquiry or investigation under this act as may be directed by the central authority10(2) the central government may appoint a director-general and such number of additional director-general, director, joint director, deputy director and assistant director, from amongst persons who have experience in investigation and possess such qualifications, in such manner, as may be prescribed(3) every additional director-general, director, joint director, deputy director and assistant director shall exercise his powers, and discharge his functions, subject to the general control, supervision and direction of the director-general15(4) the director-general may delegate all or any of his powers to the additionaldirector-general or director, joint director or deputy director or assistant director, as the case may be, while conducting inquiries or investigations under this act(5) the inquiries or the investigations made by the director-general shall be submitted to the central authority in such form, in such manner and within such time, as may be specified by regulations20power of district collector2516 the district collector (by whatever name called) may, on a complaint or on areference made to him by the central authority or the commissioner of a regional office, inquire into or investigate complaints regarding violation of rights of consumers as a class, on matters relating to violations of consumer rights, unfair trade practices and false or misleading advertisements, within his jurisdiction and submit his report to the central authority or to the commissioner of a regional office, as the case may becomplaints to authorities17 a complaint relating to violation of consumer rights or unfair trade practices orfalse or misleading advertisements which are prejudicial to the interests of consumers as a class, may be forwarded either in writing or in electronic mode, to any one of the authorities, namely, the district collector or the commissioner of regional office or the central authority3018 (1) the central authority shall—powers and functions of central authority(a) protect, promote and enforce the rights of consumers as a class, and preventviolation of consumers rights under this act;(b) prevent unfair trade practices and ensure that no person engages himself inunfair trade practices;35(c) ensure that no false or misleading advertisement is made of any goods orservices which contravenes the provisions of this act or the rules or regulations made thereunder;(d) ensure that no person takes part in the publication of any advertisementwhich is false or misleading40(2) without prejudice to the generality of the provisions contained in sub-section (1), the central authority may, for any of the purposes aforesaid,—(a) inquire or cause an inquiry or investigation to be made into violations ofconsumer rights or unfair trade practices, either suo motu or on a complaint received or on the directions from the central government;45(b) file complaints before the district commission, the state commission or thenational commission, as the case may be, under this act;(c) intervene in any proceedings before the district commission orstate commission or national commission, as the case may be, in respect of any allegation of violation of consumer rights or unfair trade practices;5(d) review the matters relating to, and the factors inhibiting enjoyment of,consumer rights, including safeguards provided for the protection of consumers under any other law for the time being in force and recommend appropriate remedial measures for their effective implementation;(e) recommend adoption of international covenants and best internationalpractices on consumer rights to ensure effective enforcement of consumer rights;10(f) undertake and promote research in the field of consumer rights; (g) spread and promote awareness on consumer rights; (h) encourage non-governmental organisations and other institutions workingin the field of consumer rights to co-operate and work with consumer protection agencies;15(i) mandate the use of unique and universal goods identifiers in such goods,as may be necessary, to prevent unfair trade practices and to protect consumers' interest;(j) issue safety notices to alert consumers against dangerous or hazardous orunsafe goods or services;20(k) advise the ministries and departments of the central and state governmentson consumer welfare measures;(l) issue necessary guidelines to prevent unfair trade practices and protectconsumers' interest25power of central authority to refer matterfor investigation or to other regulator3019 (1) the central authority may, after receiving any information or complaint or directions from the central government or of its own motion, conduct or cause to be conducted a preliminary inquiry as to whether there exists a prima facie case of violation of consumer rights or any unfair trade practice or any false or misleading advertisement, by any person, which is prejudicial to the public interest or to the interests of consumers and if it is satisfied that there exists a prima facie case, it shall cause investigation to be made by the director-general or by the district collector(2) where, after preliminary inquiry, the central authority is of the opinion that the matter is to be dealt with by a regulator established under any other law for the time being in force, it may refer such matter to the concerned regulator along with its report35(3) for the purposes of investigation under sub-section (1), the central authority may call upon a person referred to in sub-section (1) and to produce any document or record in his possession20 where the central authority is satisfied on the basis of investigation that there is sufficient evidence to show violation of consumer rights or unfair trade practice by a person, it may pass such order as may be necessary, including—power of central authority to recall goods, etc40(a) recalling of goods or withdrawal of services which are dangerous, hazardousor unsafe;(b) reimbursement of the prices of goods or services so recalled to purchasersof such goods or services; and45(c) discontinuation of practices which are unfair and prejudicial to consumers'interest:provided that the central authority shall give the person an opportunity of being heard before passing an order under this section521 (1) where the central authority is satisfied after investigation that anyadvertisement is false or misleading and is prejudicial to the interest of any consumer or is in contravention of consumer rights, it may, by order, issue directions to the concerned trader or manufacturer or endorser or advertiser or publisher, as the case may be, to discontinue such advertisement or to modify the same in such manner and within such time as may be specified in that orderpower of central authority to issue directions and penalties against false or misleading advertisements10(2) notwithstanding the order passed under sub-section (1), if the central authorityis of the opinion that it is necessary to impose a penalty in respect of such false or misleading advertisement, by a manufacturer or an endorser, it may, by order, impose on manufacturer or endorser a penalty which may extend to ten lakh rupees:provided that the central authority may, for every subsequent contravention by a manufacturer or endorser, impose a penalty, which may extend to fifty lakh rupees15(3) notwithstanding any order under sub-section (1) and (2), where the centralauthority deems it necessary, it may, by order, prohibit the endorser of a false or misleading advertisement from making endorsement of any product or service for a period which may extend to one year:20provided that the central authority may, for every subsequent contravention, prohibitsuch endorser from making endorsement in respect of any product or service for a period which may extend to three years(4) where the central authority is satisfied after investigation that any person is found to publish, or is a party to the publication of, a misleading advertisement, it may impose on such person a penalty which may extend to ten lakh rupees25(5) no endorser shall be liable to a penalty under sub-sections (2) and (3) if he hasexercised due diligence to verify the veracity of the claims made in the advertisement regarding the product or service being endorsed by him30(6) no person shall be liable to such penalty if he proves that he had published or arranged for the publication of such advertisement in the ordinary course of his business:provided that no such defence shall be available to such person if he had previous knowledge of the order passed by the central authority for withdrawal or modification of such advertisement35(7) while determining the penalty under this section, regard shall be had to thefollowing, namely: —(a) the population and the area impacted or affected by such offence; (b) the frequency and duration of such offence; (c) the vulnerability of the class of persons likely to be adversely affected bysuch offence; and40(d) the gross revenue from the sales effected by virtue of such offence(8) the central authority shall give the person an opportunity of being heard before an order under this section is passedsearch and seizure4522 (1) for the purpose of conducting an investigation after preliminary inquiry under sub-section (1) of section 19, the director-general or any other officer authorised by him in this behalf, or the district collector, as the case may be, may, if he has any reason to believe that any person has violated any consumer rights or committed unfair trade practice or causes any false or misleading advertisement to be made, shall,—5(a) enter at any reasonable time into any such premises and search for anydocument or record or article or any other form of evidence and seize such document, record, article or such evidence;(b) make a note or an inventory of such record or article; or (c) require any person to produce any record, register or other document orarticle2 of 197410(2) the provisions of the code of criminal procedure, 1973, relating to search and seizure shall apply, as far as may be, for search and seizure under this act15(3) every document, record or article seized under clause (a) of sub-section (1) or produced under clause (c) of that sub-section shall be returned to the person, from whom they were seized or who produce the same, within a period of twenty days of the date of such seizure or production, as the case may be, after copies thereof or extracts therefrom certified by that person, in such manner as may be prescribed, have been taken(4) where any article seized under sub-section (1) are subject to speedy or natural decay, the director-general or such other officer may dispose of the article in such manner as may be prescribed20(5) in the case of articles other than the articles referred to in sub-section (4), provisions contained in clause (c) of sub-section (2) of section 38 shall mutatis mutandis apply in relation to analysis or tests23 the central government may, if it considers necessary, by notification, designate any statutory authority or body to exercise the powers and perform the functions of the central authority referred to in section 10designation of any statutory authority or body to function as central authority25appeal24 a person aggrieved by any order passed by the central authority under sections20 and 21 may file an appeal to the national commission within a period of thirty days from the date of receipt of such ordergrants by central government3025 the central government may, after due appropriation made by parliament by lawin this behalf, make to the central authority grants of such sums of money as that government may think fit for being utilised for the purposes of this actaccounts and audit26 (1) the central authority shall maintain proper accounts and other relevantrecords and prepare an annual statement of accounts in such form and manner as may be prescribed in consultation with the comptroller and auditor-general of india35(2) the accounts of the central authority shall be audited by the comptroller andauditor-general of india at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the central authority to the comptroller and auditor-general of india40(3) the comptroller and auditor-general of india or any other person appointed byhim in connection with the audit of the accounts of the central authority shall have the same rights, privileges and authority in connection with such audit as the comptroller and auditor-general of india generally has, in connection with the audit of the government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the central authority(4) the accounts of the central authority as certified by the comptroller and auditor-general of india or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the central government which shall cause the same to be laid before each house of parliament5furnishing of annual reports, etc27 (1) the central authority shall prepare once in every year, in such form and atsuch time as may be prescribed, an annual report giving full account of its activities during the previous year and such other reports and returns, as may be directed, and copies of such report and returns shall be forwarded to the central government(2) a copy of the annual report received under sub-section (1) shall be laid, as soon as may be after it is received, before each house of parliament10 chapter iv consumer disputes redressal commission1528 (1) the state government shall, by notification, establish a district consumer disputes redressal commission, to be known as the district commission, in each district of the state:establishment of district consumer disputes redressal commissionprovided that the state government may, if it deems fit, establish more than one district commission in a district(2) each district commission shall consist of—(a) a president; and20(b) not less than two and not more than such number of members as may beprescribed, is consultation with the central government29 the central government may, by notification, make rules to provide for the qualifications, method of recruitment, procedure for appointment, term of office, resignation and removal of the president and members of the district commissionqualifications etc, of president and members of district commission2530 the state government may, by notification, make rules to provide for salaries andallowances and other terms and conditions of service of the president, and members of the district commissionsalaries, allowances and other terms and conditions of service of president and members of district commission transitional provision3031 any person appointed as president or, as the case may be, a member of the district commission immediately before the commencement of this act shall continue to hold office as such as president, as the case may be, as member till the completion of his term for which he has been appointed32 if, at any time, there is a vacancy in the office of the president or member of a district commission, the state government may, by notification, direct—vacancy in office of member of district commission(a) any other district commission specified in that notification to exercise thejurisdiction in respect of that district also; or35(b) the president or a member of any other district commission specified in thatnotification to exercise the powers and discharge the functions of the president or member of that district commission also4033 (1) the state government shall provide the district commission with such officers and other employees as may be required to assist the district commission in the discharge of its functionsofficers and other employees of district commission(2) the officers and other employees of the district commission shall discharge their functions under the general superintendence of the president of the district commission5 (3) the salaries and allowances payable to, and the other terms and conditions of service of, the officers and other employees of the district commission shall be such as may be prescribedjurisdiction of district commission34 (1) subject to the other provisions of this act, the district commission shall havejurisdiction to entertain complaints where the value of the goods or services paid as consideration does not exceed one crore rupees:provided that where the central government deems it necessary so to do, it mayprescribe such other value, as it deems fit10(2) a complaint shall be instituted in a district commission within the local limits of whose jurisdiction,—15(a) the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, ordinarily resides or carries on business or has a branch office or personally works for gain; or(b) any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office, or personally works for gain, provided that in such case the permission of the district commission is given; or(c) the cause of action, wholly or in part, arises; or20(d) the complainant resides or personally works for gain(3) the district commission shall ordinarily function in the district headquarters and may perform its functions at such other place in the district, as the state government may, in consultation with the state commission, notify in the official gazette from time to time2535 (1) a complaint, in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided, may be filed with a district commission by—manner in which complaint shall be made(a) the consumer,—30(i) to whom such goods are sold or delivered or agreed to be sold or delivered or such service is provided or agreed to be provided; or(ii) who alleges unfair trade practice in respect of such goods or service;35(b) any recognised consumer association, whether the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service is provided or agreed to be provided, or who alleges unfair trade practice in respect of such goods or service, is a member of such association or not;(c) one or more consumers, where there are numerous consumers having the same interest, with the permission of the district commission, on behalf of, or for the benefit of, all consumers so interested; or40(d) the central government, the central authority or the state government, as the case may be:provided that the complaint under this sub-section may be filed electronically in such manner as may be prescribed45explanation—for the purposes of this sub-section, "recognised consumer association" means any voluntary consumer association registered under any law for the time being in force(2) every complaint filed under sub-section (1) shall be accompanied with such fee and payable in such manner, including electronic form, as may be prescribed36 (1) every proceeding before the district commission shall be conducted by thepresident of that commission and at least one member thereof, sitting together:proceedings before district commission5provided that where a member, for any reason, is unable to conduct a proceeding tillit is completed, the president and the other member shall continue the proceeding from the stage at which it was last heard by the previous member(2) on receipt of a complaint made under section 35, the district commission may, by order, admit the complaint for being proceeded with or reject the same:10provided that a complaint shall not be rejected under this section unless anopportunity of being heard has been given to the complainant:provided further that the admissibility of the complaint shall ordinarily be decided within twenty-one days from the date on which the complaint was filed15(3) where the district commission does not decide the issue of admissibility of the complaint within the period so specified, it shall be deemed to have been admittedreference to mediation2037 (1) at the first hearing of the complaint after its admission, or at any later stage, ifit appears to the district commission that there exists elements of a settlement which may be acceptable to the parties, except in such cases as may be prescribed, it may direct the parties to give in writing, within five days, consent to have their dispute settled by mediation in accordance with the provisions of chapter v(2) where the parties agree for settlement by mediation and give their consent in writing, the district commission shall, within five days of receipt of such consent, refer the matter for mediation, and in such case, the provisions of chapter v, relating to mediation, shall apply25procedure on admission of complaint38 (1) the district commission shall, on admission of a complaint, or in respect ofcases referred for mediation on failure of settlement by mediation, proceed with such complaint(2) where the complaint relates to any goods, the district commission shall,—30(a) refer a copy of the admitted complaint, within twenty-one days from thedate of its admission to the opposite party mentioned in the complaint directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by it;35(b) if the opposite party on receipt of a complaint referred to him under clause (a)denies or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time given by the district commission, proceed to settle the consumer dispute in the manner specified in clauses (c) to (g);40(c) if the complaint alleges a defect in the goods which cannot be determinedwithout proper analysis or test of the goods, obtain a sample of the goods from the complainant, seal it and authenticate it in the manner as may be prescribed and refer the sample so sealed to the appropriate laboratory along with a direction that such laboratory make an analysis or test, whichever may be necessary, with a view to finding out whether such goods suffer from any defect alleged in the complaint or from any other defect and to report its findings thereon to the district commission within a period of forty-five days of the receipt of the reference or within such extended period as may be granted by it;45(d) before any sample of the goods is referred to any appropriate laboratoryunder clause (c), require the complainant to deposit to the credit of the commission such fees as may be specified, for payment to the appropriate laboratory for carrying out the necessary analysis or test in relation to the goods in question;(e) remit the amount deposited to its credit under clause (d) to the appropriate laboratory to enable it to carry out the analysis or test mentioned in clause (c) and on receipt of the report from the appropriate laboratory, it shall forward a copy of the report along with such remarks as it may feel appropriate to the opposite party;5(f) if any of the parties disputes the correctness of the findings of the appropriatelaboratory, or disputes the correctness of the methods of analysis or test adopted by the appropriate laboratory, require the opposite party or the complainant to submit in writing his objections with regard to the report made by the appropriate laboratory;10(g) give a reasonable opportunity to the complainant as well as the oppositeparty of being heard as to the correctness or otherwise of the report made by the appropriate laboratory and also as to the objection made in relation thereto under clause (f) and issue an appropriate order under section 3915(3) the district commission shall, if the complaint admitted by it under section 36relates to goods in respect of which the procedure specified in sub-section (2) cannot be followed, or if the complaint relates to any services,—(a) refer a copy of such complaint to the opposite party directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by the district commission;20(b) if the opposite party, on receipt of a copy of the complaint, referred to him under clause (a) denies or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time given by the district commission, it shall proceed to settle the consumer dispute—25(i) on the basis of evidence brought to its notice by the complainant and the opposite party, if the opposite party denies or disputes the allegations contained in the complaint, or(ii) ex parte on the basis of evidence brought to its notice by the complainant, where the opposite party omits or fails to take any action to represent his case within the time given by the commission;30(c) decide the complaint on merits if the complainant fails to appear on the dateof hearing(4) for the purposes of sub-sections (2) and (3), the district commission may, by order, require an electronic service provider to provide such information, documents or records, as may be specified in that order35(5) no proceedings complying with the procedure laid down in sub-sections (1) and (2)shall be called in question in any court on the ground that the principles of natural justice have not been complied with(6) every complaint shall be heard by the district commission on the basis of affidavit and documentary evidence placed on record:40provided that where an application is made for hearing or for examination of parties in person or through video conferencing, the district commission may, on sufficient cause being shown, and after recording its reasons in writing, allow the same45(7) every complaint shall be disposed of as expeditiously as possible and endeavour shall be made to decide the complaint within a period of three months from the date of receipt of notice by opposite party where the complaint does not require analysis or testing of commodities and within five months if it requires analysis or testing of commodities:provided that no adjournment shall ordinarily be granted by the district commission unless sufficient cause is shown and the reasons for grant of adjournment have been recorded in writing by the commission:5provided further that the district commission shall make such orders as to the costsoccasioned by the adjournment as may be specified by regulations:provided also that in the event of a complaint being disposed of after the period so specified, the district commission shall record in writing, the reasons for the same at the time of disposing of the said complaint10(8) where during the pendency of any proceeding before the district commission, ifit appears necessary, it may pass such interim order as is just and proper in the facts and circumstances of the case5 of 1908(9) for the purposes of this section, the district commission shall have the same powers as are vested in a civil court under the code of civil procedure, 1908 while trying a suit in respect of the following matters, namely:—15(a) the summoning and enforcing the attendance of any defendant or witnessand examining the witness on oath;(b) requiring the discovery and production of any document or other materialobject as evidence;(c) receiving of evidence on affidavits;20(d) the requisitioning of the report of the concerned analysis or test from theappropriate laboratory or from any other relevant source;(e) issuing of commissions for the examination of any witness, or document;and(f) any other matter which may be prescribed by the central government2545 of 1860(10) every proceeding before the district commission shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the indian penal code,1860, and the district commission shall be deemed to be a criminal court for the purposes of section 195 and chapter xxvi of the code of criminal procedure, 19732 of 1974305 of 1908(11) where the complainant is a consumer referred to in sub-clause (vi) of clause (5)of section 2, the provisions of order i rule 8 of the first schedule to the code of civil procedure, 1908 shall apply subject to the modification that every reference therein to a suit or decree shall be construed as a reference to a complaint or the order of the district commission thereon355 of 1908(12) in the event of death of a complainant who is a consumer or of the opposite party against whom the complaint has been filed, the provisions of order xxii of the first schedule to the code of civil procedure, 1908 shall apply subject to the modification that every reference therein to the plaintiff and the defendant shall be construed as reference to a complainant or the opposite party, as the case may be40findings of district commission39 (1) where the district commission is satisfied that the goods complained againstsuffer from any of the defects specified in the complaint or that any of the allegations contained in the complaint about the services or any unfair trade practices, or claims for compensation under product liability are proved, it shall issue an order to the opposite party directing him to do one or more of the following, namely:—45(a) to remove the defect pointed out by the appropriate laboratory from thegoods in question;(b) to replace the goods with new goods of similar description which shall befree from any defect;(c) to return to the complainant the price, or, as the case may be, the charges paid by the complainant along with such interest on such price or charges as may be decided;5(d) to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party:provided that the district commission shall have the power to grant punitive damages in such circumstances as it deems fit;10(e) to pay such amount as may be awarded by it as compensation in a product liability action under chapter vi;(f) to remove the defects in goods or deficiencies in the services in question; (g) to discontinue the unfair trade practice or restrictive trade practice or not to repeat them;(h) not to offer the hazardous or unsafe goods for sale; (i) to withdraw the hazardous goods from being offered for sale;15(j) to cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature;20(k) to pay such sum as may be determined by it, if it is of the opinion that loss or injury has been suffered by a large number of consumers who are not identifiable conveniently:provided that the minimum amount of sum so payable shall not be less than twenty-five per cent of the value of such defective goods sold or service provided, as the case may be, to such consumers;25(l) to issue corrective advertisement to neutralise the effect of misleading advertisement at the cost of the opposite party responsible for issuing such misleading advertisement;(m) to provide for adequate costs to parties; and(n) to cease and desist from issuing any misleading advertisement30(2) any amount obtained under sub-section (1) shall be credited to such fund and utilised in such manner as may be prescribed(3) in any proceeding conducted by the president and a member and if they differ on any point or points, they shall state the point or points on which they differ and refer the same to another member for hearing on such point or points and the opinion of the majority shall be the order of the district commission:35provided that the other member shall give his opinion on such point or points referred to him within a period of one month from the date of such reference(4) every order made by the district commission under sub-section (1) shall be signed by the president and the member who conducted the proceeding:40provided that where the order is made as per majority opinion under sub-section (3), such order shall also be signed by the other member40 the district commission shall have the power to review any of the order passed by it if there is an error apparent on the face of the record, either of its own motion or on an application made by any of the parties within thirty days of such orderreview by district commission in certain casesappeal against order of district commission41 any person aggrieved by an order made by the district commission may prefer an appeal against such order to the state commission on the grounds of facts or law within a period of forty-five days from the date of the order, in such form and manner, as may be prescribed:5provided that the state commission may entertain an appeal after the expiry of the said period of forty-five days, if it is satisfied that there was sufficient cause for not filing it within that period:10provided further that no appeal by a person, who is required to pay any amount in terms of an order of the district commission, shall be entertained by the state commission unless the appellant has deposited fifty per cent of that amount in the manner as may be prescribed:provided also that no appeal shall lie from any order passed under sub-section (1) of section 81 by the district commission pursuant to a settlement by mediation under section 801542 (1) the state government shall, by notification, establish a state consumer disputes redressal commission, to be known as the state commission, in the stateestablishment of state consumer disputes redressal commission(2) the state commission shall ordinarily function at the state capital and perform its functions at such other places as the state government may in consultation with the state commission notify in the official gazette:20provided that the state government may, by notification, establish regional benches of the state commission, at such places, as it deems fit(3) each state commission shall consist of—(a) a president; and25(b) not less than four or not more than such number of members as may be prescribed in consultation with the central government43 the central government may, by notification, make rules to provide for the qualification for appointment, method of recruitment, procedure of appointment, term of office, resignation and removal of the president and members of the state commissionqualifications, etc, of president and members of state commission3044 the state government may, by notification, make rules to provide for salaries and allowances and other terms and conditions of service of the president and members of the state commissionsalaries, allowances and other terms and conditions of service of president and members of state commission transitional provision45 any person appointed as president or, as the case may be, a member of the state commission immediately before the commencement of this act to hold office as such, as president or member, as the case may be, till the completion of his term3546 (1) the state government shall determine the nature and categories of the officersand other employees required to assist the state commission in the discharge of its functions and provide the commission with such officers and other employees as it may think fitofficers and employees of state commission(2) the officers and other employees of the state commission shall discharge theirfunctions under the general superintendence of the president40(3) the salaries and allowances payable to and the other terms and conditions ofservice of, the officers and other employees of the state commission shall be such as may be prescribed47 (1) subject to the other provisions of this act, the state commission shall have jurisdiction—jurisdiction of state commission(a) to entertain—5(i) complaints where the value of the goods or services paid asconsideration, exceeds rupees one crore, but does not exceed rupees ten crore:provided that where the central government deems it necessary so to do, it may prescribe such other value, as it deems fit(ii) complaints against unfair contracts, where the value of goods orservices paid as consideration does not exceed ten crore rupees;10(iii) appeals against the orders of any district commission within thestate; and15(b) to call for the records and pass appropriate orders in any consumer disputewhich is pending before or has been decided by any district commission within the state, where it appears to the state commission that such district commission has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested or has acted in exercise of its jurisdiction illegally or with material irregularity(2) the jurisdiction, powers and authority of the state commission may be exercised by benches thereof, and a bench may be constituted by the president with one or more members as the president may deem fit:20provided that the senior-most member shall preside over the bench25(3) where the members of a bench differ in opinion on any point, the points shall be decided according to the opinion of the majority, if there is a majority, but if the members are equally divided, they shall state the point or points on which they differ, and make a reference to the president who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more of the other members and such point or points shall be decided according to the opinion of the majority of the members who have heard the case, including those who first heard it:30provided that the president or the other members, as the case may be, shall give opinion on the point or points so referred within a period of one month from the date of such reference(4) a complaint shall be instituted in a state commission within the limits of whose jurisdiction,—(a) the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, ordinarily resides or carries on business or has a branch office or personally works for gain; or35(b) any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business or has a branch office or personally works for gain, provided in such case, the permission of the state commission is given; or40(c) the cause of action, wholly or in part, arises; or (d) the complainant resides or personally works for gaintransfer of cases4548 on the application of the complainant or of its own motion, the state commissionmay, at any stage of the proceeding, transfer any complaint pending before a district commission to another district commission within the state if the interest of justice so requires49 (1) the provisions relating to complaints under sections 35, 36, 37, 38 and39 shall, with such modifications as may be necessary, be applicable to the disposal of complaints by the state commissionprocedure applicable to state commission(2) without prejudice to the provisions of sub-section (1), the state commission may also declare any terms of contract, which is unfair to any consumer, to be null and void550 the state commission shall have the power to review any of the order passed by it if there is an error apparent on the face of the record, either of its own motion or on an application made by any of the parties within thirty days of such orderreview by state commission in certain cases appeal to national commission51 (1) any person aggrieved by an order made by the state commission in exercise of its powers conferred by sub-clauses (i) or (ii) of clause (a) of sub-section (1) of section 47 may prefer an appeal against such order to the national commission within a period of thirty days from the date of the order in such form and manner as may be prescribed:10provided that the national commission shall not entertain the appeal after the expiry of the said period of thirty days unless it is satisfied that there was sufficient cause for not filing it within that period:15provided further that no appeal by a person, who is required to pay any amount in terms of an order of the state commission, shall be entertained by the national commission unless the appellant has deposited fifty per cent of that amount in the manner as may be prescribed20(2) save as otherwise expressly provided under this act or by any other law for the time being in force, an appeal shall lie to the national commission from any order passed in appeal by any state commission, if the national commission is satisfied that the case involves a substantial question of law(3) in an appeal involving a question of law, the memorandum of appeal shall precisely state the substantial question of law involved in the appeal(4) where the national commission is satisfied that a substantial question of law is involved in any case, it shall formulate that question and hear the appeal on that question:25provided that nothing in this sub-section shall be deemed to take away or abridge the power of the national commission to hear, for reasons to be recorded in writing, the appeal on any other substantial question of law, if it is satisfied that the case involves such question of law30(5) an appeal may lie to the national commission under this section from an order passed ex parte by the state commissionhearing of appeal52 an appeal filed before the state commission or the national commission, as thecase may be, shall be heard as expeditiously as possible and every endeavour shall be made to dispose of the appeal within a period of ninety days from the date of its admission:35provided that no adjournment shall ordinarily be granted by the state commission orthe national commission, as the case may be, unless sufficient cause is shown and the reasons for grant of adjournment have been recorded in writing by such commission:provided further that the state commission or the national commission, as the case may be, shall make such orders as to the costs occasioned by the adjournment, as may be specified by regulations:40provided also that in the event of an appeal being disposed of after the period sospecified, the state commission or the national commission, as the case may be, shall record in writing the reasons for the same at the time of disposing of the said appeal53 (1) the central government shall, by notification, establish a national consumerdisputes redressal commission, to be known as the national commission45establishment of national consumer disputes redressal commission(2) the national commission shall ordinarily function at the national capital region and perform its functions at such other places as the central government may in consultation with the national commission notify in the official gazette:provided that the central government may, by notification, establish regional benches of the national commission, at such places, as it deems fit 54 the national commission shall consist of—(a) a president; andcomposition, national commission5(b) not less than four and not more than such number of members as may be prescribed1055 (1) the central government may, by notification, make rules to provide for qualifications, appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of service of the president and members of the national commission:qualifications etc of president and members of national commissionprovided that the president and members of the national commission shall hold office for such term as specified in the rules made by the central goverment but not exceeding five years from the date on which he enters upon his office and shall be eligible for re-appointment:15provided further that no president or members shall hold office as such after he has attained such age as specified in the rules made by the central government which shall not exceed,—(a) in the case of the president, the age of seventy years; (b) in the case of any other member, the age of sixty-seven years;20(2) neither the salary and allowances nor the other terms and conditions of service of president and members of the national commission shall be varied to his disadvantage after his appointment25transitional provision7 of 2017 68 of 198656 the president and every other member appointed immediately before the commencement of section 177 of the finance act, 2017 shall continue to be governed by the provisions of the consumer protection act, 1986 and the rules made thereunder as if this act had not come into force57 (1) the central government shall provide, in consultation with the president of the national commission, such number of officers and other employees to assist the national commission in the discharge of its functions as it may think fitother officers and employees of national commission30(2) the officers and other employees of the national commission shall discharge their functions under the general superintendence of the president of the national commission35(3) the salaries and allowances payable to, and the other terms and conditions of service of, the officers and other employees of the national commission shall be such as may be prescribed58 (1) subject to the other provisions of this act, the national commission shall have jurisdiction—jurisdiction of national commission(a) to entertain—(i) complaints where the value of the goods or services paid as consideration exceeds rupees ten crores:provided that where the central government deems it necessary so to do, it may prescribe such other value, as it deems fit(ii) complaints against unfair contracts, where the value of goods orservices paid as consideration exceeds ten crore rupees;(iii) appeals against the orders of any state commission; (iv) appeals against the orders of the central authority; and5(b) to call for the records and pass appropriate orders in any consumer disputewhich is pending before or has been decided by any state commission where it appears to the national commission that such state commission has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity10(2) the jurisdiction, powers and authority of the national commission may be exercisedby benches thereof and a bench may be constituted by the president with one or more members as he may deem fit:provided that the senior-most member of the bench shall preside over the bench15(3) where the members of a bench differ in opinion on any point, the points shall be decided according to the opinion of the majority, if there is a majority, but if the members are equally divided, they shall state the point or points on which they differ, and make a reference to the president who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more of the other members and such point or points shall be decided according to the opinion of the majority of the members who have heard the case, including those who first heard it:20provided that the president or the other member, as the case may be, shall give opinion on the point or points so referred within a period of two months from the date of such reference2559 (1) the provisions relating to complaints under sections 35, 36, 37, 38 and39 shall, with such modifications as may be considered necessary, be applicable to the disposal of complaints by the national commissionprocedure applicable to national commission(2) without prejudice to sub-section (1), the national commission may also declare any terms of contract, which is unfair to any consumer to be null and void3060 the national commission shall have the power to review any of the order passed by it if there is an error apparent on the face of the record, either of its own motion or on an application made by any of the parties within thirty days of such orderreview by national commission in certain cases61 where an order is passed by the national commission ex parte, the aggrieved party may make an application to the commission for setting aside such orderpower to set aside ex parte orders transfer of cases3562 on the application of the complainant or of its own motion, the national commission may, at any stage of the proceeding, in the interest of justice, transfer any complaint pending before the district commission of one state to a district commission of another state or before one state commission to another state commission4063 when the office of president of the national commission is vacant or a person occupying such office is, by reason of absence or otherwise, unable to perform the duties of his office, these shall be performed by the senior-most member of the national commission:vacancy in office of president of national commissionprovided that where a retired judge of a high court or a person who has been a judicial member is a member of the national commission, such member or where the number of such members is more than one, the senior-most person amongst such members, shall preside over the national commission in the absence of president of that commission64 no act or proceeding of the district commission, the state commission or the national commission shall be invalid by reason only of the existence of any vacancy amongst its members or any defect in the constitution thereofvacancies or defects in appointment not to invalidate ordersservice of notice, etc565 (1) all notices, required by this act to be served, shall be served by delivering ortransmitting a copy thereof by registered post acknowledgment due addressed to opposite party against whom complaint is made or to the complainant by speed post or by such courier service, approved by the district commission, the state commission or the national commission, as the case may be, or by any other mode of transmission of documents including electronic means10(2) without prejudice to the provisions contained in sub-section (1), the notice requiredby this act may be served on an electronic service provider at the address provided by it on the electronic platform from where it provides its services as such and for this purpose, the electronic service provider shall designate a nodal officer to accept and process such notices1520(3) when an acknowledgment or any other receipt purporting to be signed by the opposite party or his agent or, as the case may be, by the complainant is received by the district commission, the state commission or the national commission, as the case may be, or postal article containing the notice is received back by such district commission, state commission or the national commission, with an endorsement purporting to have been made by a postal employee or by any person authorised by the courier service to the effect that the opposite party or his agent or complainant had refused to take delivery of the postal article containing the notice or had refused to accept the notice by any other means specified in sub-section (1) when tendered or transmitted to him, the district commission or the state commission or the national commission, as the case may be, shall declare that the notice has been duly served on the opposite party or to the complainant, as the case may be:25 30provided that where the notice was properly addressed, pre-paid and duly sent by registered post acknowledgment due, a declaration referred to in this sub-section shall be made notwithstanding the fact that the acknowledgment has been lost or misplaced, or for any other reason, has not been received by the district commission, the state commission or the national commission, as the case may be, within thirty days from the date of issue of notice(4) all notices required to be served on an opposite party or to complainant, as the case may be, shall be deemed to be sufficiently served, if addressed in the case of the opposite party, to the place where business or profession is carried on, and in case of the complainant, the place where such person actually and voluntarily resides3566 where the national commission or the state commission, as the case may be, onan application by a complainant or otherwise, is of the opinion that it involves the larger interest of consumers, it may direct any individual or organisation or expert to assist the national commission or the state commission, as the case may beexperts to assist national commission or state commission40appeal against order of national commission67 any person, aggrieved by an order made by the national commission in exerciseof its powers conferred by sub-clauses (i) or (ii) of clause (a) of sub-section (1) of section 58, may prefer an appeal against such order to the supreme court within a period of thirty days from the date of the order:45provided that the supreme court may entertain an appeal after the expiry of the saidperiod of thirty days if it is satisfied that there was sufficient cause for not filing it within that period:provided further that no appeal by a person who is required to pay any amount in terms of an order of the national commission shall be entertained by the supreme court unless that person has deposited fifty per cent of that amount in the manner as may be prescribedfinality of orders68 every order of a district commission or the state commission or the national commission, as the case may be, shall, if no appeal has been preferred against such order under the provisions of this act, be finallimitation period569 (1) the district commission, the state commission or the national commissionshall not admit a complaint unless it is filed within two years from the date on which the cause of action has arisen10(2) notwithstanding anything contained in sub-section (1), a complaint may be entertained after the period specified in sub-section (1), if the complainant satisfies the district commission, the state commission or the national commission, as the case may be, that he had sufficient cause for not filing the complaint within such period:provided that no such complaint shall be entertained unless the district commission or the state commission or the national commission, as the case may be, records its reasons for condoning such delayadministrative control1570 (1) the national commission shall have the authority to lay down such adequatestandards in consultation with the central government from time to time, for better protection of the interests of consumers and for that purpose, shall have administrative control over all the state commissions in the following matters, namely:—20(a) monitoring performance of the state commissions in terms of their disposalby calling for periodical returns regarding the institution, disposal and pendency of cases;(b) investigating into any allegations against the president and members of astate commission and submitting inquiry report to the state government concerned along with copy endorsed to the central government for necessary action;25(c) issuance of instructions regarding adoption of uniform procedure in thehearing of matters, prior service of copies of documents produced by one party to the opposite parties, furnishing of english translation of judgments written in any language, speedy grant of copies of documents;30(d) overseeing the functioning of the state commission or the districtcommission either by way of inspection or by any other means, as the national commission may like to order from time to time, to ensure that the objects and purposes of the act are best served and the standards set by the national commission are implemented without interfering with their quasi-judicial freedom35(2) there shall be a monitoring cell to be constituted by the president of the national commission to oversee the functioning of the state commissions from the administrative point of view(3) the state commission shall have administrative control over all the district commissions within its jurisdiction in all matters referred to in sub-section (1)40(4) the national commission and the state commissions shall furnish to the centralgovernment periodically or as and when required, any information including the pendency of cases in such form as may be prescribed(5) the state commission shall furnish, periodically or as and when required to the state government any information including pendency of cases in such form as may be prescribed455 of 190871 every order made by a district commission, state commission or the national commission shall be enforced by it in the same manner as if it were a decree made by a court in a suit before it and the provisions of order xxi of the first schedule to the code of civil procedure, 1908 shall, as far as may be, applicable, subject to the modification that every reference therein to the decree shall be construed as reference to the order made under this actenforcement of orders of district commission, state commission and national commissionpenalty for non-compliance of order572 (1) whoever fails to comply with any order made by the district commission orthe state commission or the national commission, as the case may be, shall be punishable with imprisonment for a term which shall not be less than one month, but which may extend to three years, or with fine, which shall not be less than twenty-five thousand rupees, but which may extend to one lakh rupees, or with both2 of 197410(2) notwithstanding anything contained in the code of criminal procedure, 1973, the district commission, the state commission or the national commission, as the case may be, shall have the power of a judicial magistrate of first class for the trial of offences under sub-section (1), and on conferment of such powers, the district commission or the state commission or the national commission, as the case may be, shall be deemed to be a judicial magistrate of first class for the purpose of the code of criminal procedure, 1973(3) save as otherwise provided, the offences under sub-section (1) shall be tried summarily by the district commission or the state commission or the national commission, as the case may be152 of 197473 (1) notwithstanding anything contained in the code of criminal procedure, 1973, where an order is passed under sub-section (1) of section 72, an appeal shall lie, both on facts and on law from—appeal against order passed under section 72(a) the order made by the district commission to the state commission;(b) the order made by the state commission to the national commission; and20(c) the order made by the national commission to the supreme court (2) except as provided in sub-section (1), no appeal shall lie before any court, from any order of a district commission or a state commission or the national commission25(3) every appeal under this section shall be preferred within a period of thirty days from the date of order of a district commission or a state commission or the national commission, as the case may be:provided that the state commission or the national commission or the supreme court, as the case may be, may entertain an appeal after the expiry of the said period of thirty days, if it is satisfied that the appellant had sufficient cause for not preferring the appeal within the said period of thirty days30 chapter v mediationestablishment of consumer mediation cell74 (1) the state government shall establish, by notification, a consumer mediationcell to be attached to each of the district commissions and the state commissions of that state35(2) the central government shall establish, by notification, a consumer mediation cell to be attached to the national commission and each of the regional benches(3) a consumer mediation cell shall consist of such persons as may be prescribed (4) every consumer mediation cell shall maintain—(a) a list of empanelled mediators;40(b) a list of cases handled by the cell; (c) record of proceeding; and (d) any other information as may be specified by regulations45(5) every consumer mediation cell shall submit a quarterly report to the district commission, state commission or the national commission to which it is attached, in the manner specified by regulationsempanelment of mediators75 (1) for the purpose of mediation, the national commission or the state commission or the district commission, as the case may be, shall prepare a panel of the mediators to be maintained by the consumer mediation cell attached to it, on the recommendation of a selection committee consisting of the president and a member of that commission5 10(2) the qualifications and experience required for empanelment as mediator, theprocedure for empanelment, the manner of training empanelled mediators, the fee payable to empanelled mediator, the terms and conditions for empanelment, the code of conduct for empanelled mediators, the grounds on which, and the manner in which, empanelled mediators shall be removed or empanelment shall be cancelled and other matters relating thereto, shall be such as may be specified by regulations(3) the panel of mediators prepared under sub-section (1) shall be valid for a period of five years, and the empanelled mediators shall be eligible to be considered for re-empanelment for another term, subject to such conditions as may be specified by regulations15nomination of mediators from panel76 the district commission, the state commission or the national commissionshall, while nominating any person from the panel of mediators referred to in section 75, consider his suitability for resolving the consumer dispute involved77 it shall be the duty of the mediator to disclose—duty of mediator to disclose certain facts20(a) any personal, professional or financial interest in the outcome of the consumerdispute;(b) the circumstances which may give rise to a justifiable doubt as to hisindependence or impartiality;(c) such other facts as may be specified by regulations25replacement of mediator in certain cases78 where the district commission or the state commission or the nationalcommission, as the case may be, is satisfied, on the information furnished by the mediator or on the information received from any other person including parties to the complaint and after hearing the mediator, it shall replace such mediator by another mediatorprocedure for mediation3079 (1) the mediation shall be held in the consumer mediation cell attached to thedistrict commission, the state commission or the national commission, as the case may be35(2) where a consumer dispute is referred for mediation by the district commission or the state commission or the national commission, as the case may be, the mediator nominated by such commission shall have regard to the rights and obligations of the parties, the usages of trade, if any, the circumstances giving rise to the consumer dispute and such other relevant factors, as he may deem necessary and shall be guided by the principles of natural justice while carrying out mediation(3) the mediator so nominated shall conduct mediation within such time and in suchmanner as may be specified by regulations40settlement through mediation80 (1) pursuant to mediation, if an agreement is reached between the parties withrespect to all of the issues involved in the consumer dispute or with respect to only some of the issues, the terms of such agreement shall be reduced to writing accordingly, and signed by the parties to such dispute or their authorised representatives(2) the mediator shall prepare a settlement report of the settlement and forward thesigned agreement along with such report to the concerned commission45(3) where no agreement is reached between the parties within the specified time orthe mediator is of the opinion that settlement is not possible, he shall prepare his report accordingly and submit the same to the concerned commissionrecording settlement and passing of order81 (1) the district commission or the state commission or the national commission,as the case may be, shall, within seven days of the receipt of the settlement report, pass suitable order recording such settlement of consumer dispute and dispose of the matter accordingly5(2) where the consumer dispute is settled only in part, the district commission or thestate commission or the national commission, as the case may be, shall record settlement of the issues which have been so settled and continue to hear other issues involved in such consumer dispute10(3) where the consumer dispute could not be settled by mediation, the district commission or the state commission or the national commission, as the case may be, shall continue to hear all the issues involved in such consumer dispute chapter vi product liabilityapplication of chapter1582 this chapter shall apply to every claim for compensation under a product liabilityaction by a complainant for any harm caused by a defective product manufactured by a product manufacturer or serviced by a product service provider or sold by a product sellerproduct liability action83 a product liability action may be brought by a complainant against a productmanufacturer or a product service provider or a product seller, as the case may be, for any harm caused to him on account of a defective product2084 (1) a product manufacturer shall be liable in a product liability action, if—(a) the product contains a manufacturing defect; orliability of product manufacturer(b) the product is defective in design; or (c) there is a deviation from manufacturing specifications; or (d) the product does not conform to the express warranty; or25(e) the product fails to contain adequate instructions of correct usage to preventany harm or any warning regarding improper or incorrect usage (2) a product manufacturer shall be liable in a product liability action even if heproves that he was not negligent or fraudulent in making the express warranty of a product3085 a product service provider shall be liable in a product liability action, if—liability of product service provider(a) the service provided by him was faulty or imperfect or deficient or inadequatein quality, nature or manner of performance which is required to be provided by or under any law for the time being in force, or pursuant to any contract or otherwise; or35(b) there was an act of omission or commission or negligence or consciouswithholding any information which caused harm; or(c) the service provider did not issue adequate instructions or warnings toprevent any harm; or(d) the service did not conform to express warranty or the terms and conditionsof the contract4086 (1) a product seller who is not a product manufacturer shall be liable in a productliability action, if—liability of product sellers(a) he has exercised substantial control over the designing, testing,manufacturing, packaging or labelling of a product that caused harm; or45(b) he has altered or modified the product and such alteration or modificationwas the substantial factor in causing the harm; or(c) he has made an express warranty of a product independent of any expresswarranty made by a manufacturer and such product failed to conform to the express warranty made by the product seller which caused the harm; or(d) the product has been sold by him and the identity of product manufacturer of such product is not known, or if known, the service of notice or process or warrant cannot be effected on him or he is not subject to the law which is in force in india or the order, if any, passed or to be passed cannot be enforced against him; or5(e) he failed to exercise reasonable care in assembling, inspecting or maintainingsuch product or he did not pass on the warnings or instructions of the product manufacturer regarding the dangers involved or proper usage of the product while selling such product and such failure was the proximate cause of the harm1087 (1) a product liability action cannot be brought against the product seller if, at thetime of harm, the product was misused, altered, or modifiedexceptions to product liability action(2) in any product liability action based on the failure to provide adequate warnings or instructions, the product manufacturer shall not be liable, if—(a) the product was purchased by an employer for use at the workplace and theproduct manufacturer had provided warnings or instructions to such employer;15(b) the product was sold as a component or material to be used in anotherproduct and necessary warnings or instructions were given by the product manufacturer to the purchaser of such component or material, but the harm was caused to the complainant by use of the end product in which such component or material was used;20(c) the product was one which was legally meant to be used or dispensed onlyby or under the supervision of an expert or a class of experts and the product manufacturer had employed reasonable means to give the warnings or instructions for usage of such product to such expert or class of experts; or25(d) the complainant, while using such product, was under the influence ofalcohol or any prescription drug which had not been prescribed by a medical practitioner30(3) a product manufacturer shall not be liable for failure to instruct or warn about a danger which is obvious or commonly known to the user or consumer of such product or which, such user or consumer, ought to have known, taking into account the characteristics of such product chapter vii offences and penalties3588 whoever, fails to comply with any direction of the central authority under sections 20 and 21, shall be punished with imprisonment for a term which may extend to six months or with fine which may extend to twenty lakh rupees, or with bothpenalty for non-compliance of direction of central authority punishment for false or misleading advertisement4089 any manufacturer or service provider who causes a false or misleading advertisement to be made which is prejudicial to the interest of consumers shall be punished with imprisonment for a term which may extend to two years and with fine which may extend to ten lakh rupees; and for every subsequent offence, be punished with imprisonment for a term which may extend to five years and with fine which may extend to fifty lakh rupees90 (1) whoever, by himself or by any other person on his behalf, manufactures for sale or stores or sells or distributes or imports any product containing an adulterant shall be punished, if such act—(a) does not result in any injury to the consumer, with imprisonment for a term which may extend to six months and with fine which may extend to one lakh rupees;45punishment for manufacturing for sale or storing, selling or distributing or importing products containing adulterant(b) causing injury not amounting to grievous hurt to the consumer, withimprisonment for a term which may extend to one year and with fine which may extend to three lakh rupees;(c) causing injury resulting in grievous hurt to the consumer, with imprisonmentfor a term which may extend to seven years and with fine which may extend to five lakh rupees;5(d) results in the death of a consumer, with imprisonment for a term which shallnot be less than seven years, but which may extend to imprisonment for life and with fine which shall not be less than ten lakh rupees(2) the offences under clauses (c) and (d) of sub-section (1) shall be cognizable and non-bailable10(3) notwithstanding the punishment under sub-section (1), the court may, in case of first conviction, suspend any licence issued to the person referred to in that sub-section, under any law for the time being in force, for a period up to two years, and in case of second or subsequent conviction, cancel the licenceexplanation—for the purposes of this section,—15(a) "adulterant" means any material including extraneous matter which is employed or used for making a product unsafe;45 of 1860(b) "grievous hurt" shall have the same meaning as assigned to it in section 320of the indian penal code2091 (1) whoever, by himself or by any other person on his behalf, manufactures for sale or stores or sells or distributes or imports any spurious goods shall be punished, if such act—punishment for manufacturing for sale or for storing or selling or distributing or importing spurious goods(a) causing injury not amounting to grievous hurt to the consumer, withimprisonment for a term which may extend to one year and with fine which may extend to three lakh rupees;25(b) causing injury resulting in grievous hurt to the consumer, with imprisonmentfor a term which may extend to seven years and with fine which may extend to five lakh rupees;30(c) results in the death of a consumer, with imprisonment for a term which shallnot be less than seven years, but may extend to imprisonment for life and with fine which shall not be less than ten lakh rupees(2) the offences under clauses (b) and (c) of sub-section (1) shall be cognizable and non-bailable35(3) notwithstanding the punishment under sub-section (1), the court may, in case of first conviction, suspend any licence issued to the person referred to in that sub-section, under any law for the time being in force, for a period up to two years, and in case of second or subsequent conviction, cancel the licencecognizance of offence by court92 no cognizance shall be taken by a competent court of any offence undersections 88 and 89 except on a complaint filed by the central authority or any officer authorised by it in this behalf40vexatious search93 the director general or any other officer, exercising powers under section 22, whoknows that there are no reasonable grounds for so doing, and yet—(a) searches, or causes to be searched any premises; or (b) seizes any record, register or other document or article,45shall, for every such offence, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to ten thousand rupees, or with both chapter viii miscellaneous94 for the purposes of preventing unfair trade practices in e-commerce, direct selling and also to protect the interest and rights of consumers, the central government may take such measures in the manner as may be prescribedmeasures to prevent unfair trade practices in e-commerce, direct selling, etc5presidents, members, chief commissioner, commissionerand certain officers to bepublic servants1045 of 186095 the presidents and members of the district commission, the state commission and the national commission, and officers and other employees thereof, the chief commissioner and the commissioner of the central authority, the director general, the additional director general, the director, the joint director, the deputy director and the assistant director and all other officers and employees of the central authority and other persons performing any duty under this act, while acting or purporting to act in pursuance of any of the provisions of this act, shall be deemed to be public servants within the meaning of section 21 of the indian penal codecompounding of offences96 (1) any offence punishable under sections 88 and 89, may, either before or after the institution of the prosecution, be compounded, on payment of such amount as may be prescribed:15provided that no compounding of such offence shall be made without the leave ofthe court before which a complaint has been filed under section 92:provided further that such sum shall not, in any case, exceed the maximum amount of the fine, which may be imposed under this act for the offence so compounded20(2) the central authority or any officer as may be specially authorised by him in this behalf, may compound offences under sub-section (1)(3) nothing in sub-section (1) shall apply to person who commits the same or similar offence, within a period of three years from the date on which the first offence, committed by him, was compounded25explanation—for the purposes of this sub-section, any second or subsequent offence committed after the expiry of a period of three years from the date on which the offence was previously compounded, shall be deemed to be a first offence(4) where an offence has been compounded under sub-section (1), no proceeding or further proceeding, as the case may be, shall be taken against the offender in respect of the offence so compounded302 of 1974(5) the acceptance of the sum of money for compounding an offence in accordance with sub-section (1) by the central authority or an officer of the central authority empowered in this behalf shall be deemed to amount to an acquittal within the meaning of the code of criminal procedure, 197397 the penalty collected under section 21 and the amount collected under section 96shall be credited to such fund as may be prescribed35manner of crediting penalty protection of action taken in good faith4098 no suit, prosecution or other legal proceedings shall lie against the presidentsand members of the district commission, the state commission and the national commission, the chief commissioner, the commissioner, any officer or employee and other person performing any duty under this act, for any act which is in good faith done or intended to be done in pursuance of this act or under any rule or order made thereunderpower to give directions by central government99 (1) without prejudice to the foregoing provisions of this act, the central authority,shall, in exercise of its powers or the performance of its functions under this act, be bound by such directions on questions of policy, as the central government may give in writing to it from time to time:5provided that the central authority shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section(2) the decision of the central government whether a question is one of policy or not shall be final10100 the provisions of this act shall be in addition to and not in derogation of the provisions of any other law for the time being in forceact not in derogation of any other law101 (1) the central government may, by notification, make rules for carrying out any of the provisions contained in this actpower ofcentral government to make rules(2) without prejudice to the generality of the foregoing power, such rules may provide for, —15(a) the other class or classes of persons including public utility entities underclause (19) of section 2;(b) the contest, lottery, game of chance or skill which are to be exempted underitem (b) of sub-clause (iii) of clause (47) of section 2;20(c) the manner of issuing bill or cash memo or receipt for goods sold or servicesrendered under sub-clause (vii) of clause (47) of section 2;(d) the number of other official or non-official members of the central councilunder clause (b) of sub-section (2) of section 3;(e) the time and place of meeting of central council and the procedure for thetransaction of its business under sub-section (2) of section 4;25(f) the number of commissioners in the central authority under sub-section (2)of section 10;30(g) the qualifications for appointment, method of recruitment, procedure ofappointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of service of the chief commissioner and other commissionersof the central authority under section 11;(h) the salary and allowances payable to, and the other terms and conditions ofservice of, the officers and other employees of the central authority under sub-section (2) of section 13;35(i) the qualifications for appointment of director general, additional directorgeneral, director, joint director, deputy director and assistant director and the manner of appointment under sub-section (2) of section 15;(j) the manner of taking copies or extracts of document, record or article seizedor produced before returning to the person under sub-section (3) of section 22;40(k) the officer and the manner of disposing of articles which are subject tospeedy or natural decay under sub-section (4) of section 22;(l) the form and manner for preparing annual statement of accounts by thecentral authority in consultation with the comptroller and auditor-general of india under sub-section (1) of section 26;45(m) the form in which, and the time within which, an annual report, other reports and returns may be prepared by the central authority under sub-section (1) of section 27;(n) the qualifications for appointment, method of recruitment, procedure for appointment, term of office, resignation and removal of the president and members of the district commission under section 29;5(o) the other value of goods and services in respect of which the district commission shall have jurisdiction to entertain complaints under proviso to sub-section (1) of section 34;(p) the manner of electronically filing complaint under the proviso tosub-section (1) of section 35;10(q) the fee, electronic form and the manner of payment of fee for filing complaintunder sub-section (2) of section 35;(r) the cases which may not be referred for settlement by mediation undersub-section (1) of section 37;(s) the manner of authentication of goods sampled in case of the national commission under clause (c) of sub-section (2) of section 38;15(t) any other matter which may be prescribed under clause (f) of sub section (9)of section 38;(u) the fund where the amount obtained may be credited and the manner ofutilisation of such amount under sub-section (2) of section 39;20(v) the form and the manner in which appeal may be preferred to the statecommission under section 41;(w) the qualifications for appointment, method of recruitment, procedure for appointment, term of office, resignation and removal of the president and members of the state commission under sub-section (4) of section 43;25(x) the other value of goods and services in respect of which the statecommission shall have jurisdiction under proviso to sub-clause (i) of clause (a) of sub-section (1) of section 47;(y) the form and manner of filing appeal to the national commission, and the manner of depositing fifty per cent of the amount before filing appeal, under sub-section (1) of section 51;30(z) the number of members of the national commission under clause (b) ofsub-section (1) of section 54;(za) the qualifications, appointment, term of office, salaries and allowances,resignation, removal and other terms and conditions of service of the president and members of the national commission under sub-section (1) of section 55;35(zb) the salaries and allowances payable to, and other terms and conditions ofservice of, the officers and other employees of the national commission under sub-section (3) of section 57;(zc) the other value of goods and services in respect of which the nationalcommission shall have jurisdiction under proviso to sub-clause (i) of clause (a) of sub-section (1) of section 58;40(zd) the manner of depositing fifty per cent of the amount under second provisoto section 67;(ze) the form in which the national commission and the state commission shallfurnish information to the central government under sub-section (4) of 70;(zf) the persons in the consumer mediation cell under sub-section (3) ofsection 74;(zg) the measures to be taken by the central government to prevent unfair trade practices in e-commerce, direct selling under section 94;(zh) the amount for compounding offences under sub-section (1) of section 96;5(zi) the fund to which the penalty and amount collected shall be credited under section 97; and(zj) any other matter which is to be, or may be prescribed, or in respect of which provisions are to be, or may be, made by rules102 (1) the state governments may, by notification, make rules for carrying out the provisions of this act:power of state government to make rules10 15provided that the central government may, frame model rules in respect of all or any of the matters with respect to which the state government may make rules under this section, and where any such model rules have been framed in respect of any such matter, they shall apply to the state until the rules in respect of that matter is made by the state government and while making any such rules, so far as is practicable, they shall conform to such model rules(2) in particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:—(a) the other class or classes of persons including public utility entities underclause (19) of section 2;20(b) the contest, lottery, game of chance or skill which are to be exempted underitem (b) of sub-clause (iii) of clause (47) of section 2;(c) the number of other official or non-official members of the state council under clause (b) of sub-section (2) of section 6;25(d) the time and place of meeting of the state council and the procedure for thetransaction of its business under sub-section (4) of section 6;(e) the number of other official and non-official members of the district council under clause (b) of sub-section (2) of section 8;(f) the time and place of meeting of the district council and procedure for thetransaction of its business under sub-section (4) of section 8;30(g) the number of members of the district commission under clause (b) of sub-section (2) of section 28;(h) the salaries and allowances payable to, and other terms and conditions of service of, the president and members of the district commission under section 30;35(i) the salaries and allowances payable to, and other terms and conditions ofservice of, the officers and other employees of the district commission under sub-section (3) of section 33;(j) the manner of authentication of goods sampled by the state commissionand the district commission under clause (c) of sub-section (2) of section 38;40(k) the manner of depositing fifty per cent of the amount before filing appealunder second proviso to section 41;(l) the number of members of the state commission under sub-section (3) ofsection 42;45(m) the salary and allowances payable to, and other terms and conditions ofservice of, the president and members of the state commission under section 44;(n) the salaries and allowances payable to, and other terms and conditions of service of, the officers and other employees of the state commission under sub-section (3) of section 46;5(o) the form in which the state commission shall furnish information to thestate government under sub-section (5) of section 70;(p) the persons in the consumer mediation cell under sub-section (3) ofsection 74;(q) any other matter which is to be, or may be prescribed, or in respect of whichprovisions are to be, or may be, made by rules10103 (1) the national commission may, with the previous approval of the centralgovernment, by notification, make regulations not inconsistent with this act to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this actpower of nationalcommissionto make regulations(2) in particular, and without prejudice to the generality of the foregoing power, such regulations may make provisions for—15(a) the costs for adjournment to be imposed by the district commission under the second proviso to sub-section (7) of section 38;(b) the costs for adjournment to be imposed by the state commission or thenational commission, as the case may be, under the second proviso to section 52;20(c) the maintenance of any other information by the consumer mediation cellunder sub-section (4) of section 74;(d) the manner of submission of quarterly report by consumer mediation cell to the district commission, the state commission or the national commission under sub-section (5) of section 74;25 30(e) the qualifications and experience required for empanelment as mediator, theprocedure for empanelment, the manner of training empanelled mediators, the fee payable to empanelled mediator, the terms and conditions for empanelment, the code of conduct for empanelled mediators, the grounds on which, and the manner inwhich, empanelled mediators shall be removed or empanelment shall be cancelledand the other matters relating thereto under sub-section (2) of section 75;(f) the conditions for re-empanelment of mediators for another term undersub-section (3) of section 75;(g) the other facts to be disclosed by mediators under clause (c) of section 77;35(h) the time within which, and the manner in which, mediation may be conductedunder sub-section (3) of section 79; and(i) such other matter for which provision is to be, or may be made by regulation104 (1) the central authority may, with the previous approval of the central government, by notification, make regulations not inconsistent with this act, for the purpose of giving effect to the provisions of this actpower of central authority to make regulations40(2) in particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:—(a) the procedure for engaging experts and professionals and the number ofsuch experts and professionals under sub-section (3) of section 13;(b) the procedure for transaction of business and the allocation of business ofthe chief commissioner and commissioner under sub-section (1) of section 14;45(c) the form, manner and time within which, inquiries or investigation made by the director general shall be submitted to the central authority under sub-section (5) of section 15; and(d) such other matter for which provision is to be, or may be made by regulation5rules and regulations to be laid before each house of parliament10105 (1) every rule and every regulation made under this act shall be laid, as soon asmay be after 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 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 regulation or both houses agree that the rule or regulation shall thereafter have effect only in such modified form 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 or regulation15(2) every rule made by a state government under this act shall be laid as soon as maybe after it is made, before the state legislaturepower to remove difficulties106 if any difficulty arises in giving effect to the provisions of this act, the centralgovernment may, by order in the official gazette, make such provisions not inconsistent with the provisions of this act as appear to it to be necessary or expedient for removing the difficulty:20provided that no such order shall be made after the expiry of a period of two yearsfrom the commencement of this act68 of 1986107 (1) the consumer protection act, 1986 is hereby repealedrepeal and savings25(2) notwithstanding such repeal, anything done or any action taken or purported to have done or taken under the act hereby repealed shall, in so far as it is not inconsistent with the provisions of this act, be deemed to have been done or taken under the corresponding provisions of this act10 of 1897(3) the mention of particular matters in sub-section (2) shall not be held to prejudice or affect the general application of section 6 of the general clauses act, 1897 with regard to the effect of repeal statement of objects and reasonsthe consumer protection act, 1986 was enacted to provide for better protection of the interests of consumers and for the purpose of making provision for establishment of consumer protection councils and other authorities for the settlement of consumer disputes, etc although, the working of the consumer dispute redressal agencies has served the purpose to a considerable extent under the said act, the disposal of cases has not been fast due to various constraints several shortcomings have been noticed while administering the various provisions of the said act2 consumer markets for goods and services have undergone drastic transformation since the enactment of the consumer protection act in 1986 the modern market place contains a plethora of products and services the emergence of global supply chains, rise in international trade and the rapid development of e-commerce have led to new delivery systems for goods and services and have provided new options and opportunities for consumers equally, this has rendered the consumer vulnerable to new forms of unfair trade and unethical business practices misleading advertisements, tele-marketing, multi-level marketing, direct selling and e-commerce pose new challenges to consumer protection and will require appropriate and swift executive interventions to prevent consumer detriment there is, therefore, a need to amend the act to address the myriad and constantly emerging vulnerabilities of the consumers in view of the above, it is proposed to repeal and re-enact the act3 the consumer protection bill, 2018 provides for the establishment of an executive agency to be known as the central consumer protection authority (ccpa) to promote, protect and enforce the rights of consumers; make interventions when necessary to prevent consumer detriment arising from unfair trade practices and to initiate class action including enforcing recall, refund and return of products, etc this fills an institutional void in the regulatory regime extant currently, the task of prevention of or acting against unfair trade practices is not vested in any authority this has been provided for in a manner that the role envisaged for the ccpa complements that of the sector regulators and duplication, overlap or potential conflict is avoided4 the bill also envisages provisions for product liability action on account of harm caused to consumers due to a defective product or by deficiency in services further, provision of "mediation" as an alternate dispute resolution mechanism has also been provided5 the bill provides for several provisions aimed at simplifying the consumer dispute adjudication process of the consumer disputes redressal agencies, inter alia, relating to enhancing the pecuniary jurisdiction of the consumer disputes redressal agencies; increasing minimum number of members in the state consumer disputes redressal commissions and provisions for consumers to file complaints electronically, etc6 the bill seeks to achieve the above objectivesnew delhi;ram vilas paswanthe 23rd december, 2017 notes on clausesclause 1 —this clause provides for the short title and commencement and application of the proposed legislationclause 2 —this clause provides for the definition of the expressions used in the proposed legislationclause 3—this clause provides for establishment of a central consumer protection council by the central government, which shall be an advisory council it also provides its compositionclause 4—this clause provides for the procedure for meetings of central council clause 5—this clause provides for the objects of central council, which shall be to render advice on promotion and protection of the consumers' rightsclause 6—this clause provides for establishment of state council by the state governments, which shall be an advisory council it also provides its compositionclause 7—this clause provides for the objects of the state council, which shall be to render advice on promotion and protection of the consumers' rightsclause 8—this clause provides for establishment of district consumer protection councils by the state governments, which shall be advisory councilsclause 9—this clause provides for the objects of the district consumer protection councils, which shall be to render advice on promotion and protection of the consumers' rightsclause 10—this clause provides for establishment of central consumer protection authority, its composition a chief commissioner and such number of other commissioners as may be prescribed, and its headquarter and regional and other officesclause 11—this clause provides that the central government may, by notification, make rules to provide for the qualifications for appointment, method of recruitment, procedure for appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of the service of the chief commissioner and commissioners of the central authorityclause 12—this clause provides that vacancy etc, in the central authority shall not to invalidate proceedings of central authorityclause 13—this clause provides that the central government shall provide the central authority such number officers and other employees as it considers necessary for the efficient performance of its functions under this legislation, and empowers the central government to prescribe the salary and allowances and the other terms and conditions of service of, the officers and other employees of the central authority and also empowers the central authority to engage, in accordance with the procedure specified by regulations, such number of experts and professionals to assist it in the discharge of its functionsclause 14— this clause provides that the central authority shall regulate the procedure for transaction of its business and allocation of its business among chief commissioner and commissioners as may be specified by regulationsclause 15—this clause provides for setting up of an investigation wing in the central authority headed by a director -general and with such number of additional director general, director, joint director, deputy director and assistant director, and delegation of powers by director-general to them as the case may be, while conducting inquiries or investigations the form and manner of investigation or inquiry by director-general and submit to central authority as may be specified by regulationsclause 16— this clause provides for powers of the district collector on matters relating to violations of consumer rights, unfair trade practices and false or misleading advertisements, within his jurisdiction and submit his report to the central authority or to the commissioner of a regional office, as the case may beclause 17—this clause provides for filing of complaint relating to violation of consumer rights or unfair trade practices or false or misleading advertisements which are prejudicial to the interests of consumers as a class, before the district collector or the commissioner of regional officer of the central authorityclause 18—-this clause provides for the powers and functions of the central authorityclause 19—this clause provides for the power of central authority to cause investigation to be made by the director-general or by the district collector or to refer matter for investigation to other regulatorclause 20— this clause provides for the power of central authority to recall goods, or withdrawal of services which are dangerous, hazardous or unsafe; reimbursement of the prices of goods or services so recalled to purchasers of such goods or services; and discontinuation of practices which are unfair and prejudicial to consumers' interestclause 21—this clause provides for the power of central authority to issue directions against false or misleading advertisements including imposition of penaltiesclause 22—this clause provides for the power of the director-general or any other officer authorised by him or the district collector for search and seizure after preliminary inquiry if there is any reason to believe that any person has violated any consumer rights or committed unfair trade practice or causes any false or misleading advertisementclause 23— this clause provides that the central government may, if it considers necessary, by notification, designate any statutory authority or body to exercise the powers and perform the functions of the central authority referred to in clause 10clause 24—this clause provides for preferring appeal to the national commission against any order passed by the central authority under clauses 20 and 21clause 25—this clause provides for making provision of grants by the central government to the central authority for being utilised for the purposes of this actclause 26—this clause provides for maintenance of proper accounts and other relevant records, preparation of an annual statement of accounts in such form as may be prescribed by the central government in consultation with the comptroller and auditor- general of indiaclause 27—this clause provides that the central authority shall submit an annual report on its functioning and performance and such other reports and returns as may be directed, and copies of such reports and returns shall be forwarded to the central governmentclause 28—this clause provides for establishment of district consumer disputes redressal commission at the district level by the state government with a president and not less than two members and not more than such number of members as may be prescribed in consultation with central government in each district commission this clause also empowers the state government to establish more than one district commission in a districtclause 29—this clause provides that the central government may, by notification, make rules to provide for the qualifications, method of recruitment, procedure for appointment, term of office, resignation and removal of the president and members of the district commissionclause 30— this clause provides that the state government may, by notification, make rules to provide for salaries and allowances and other terms and conditions of service of the president, and members of the district commissionclause 31— this clause provides that any person appointed as president or, as the case may be, a member of the district commission immediately before the commencement of this act shall continue to hold office as such as president, as the case may be, as member till the completion of his term for which he has been appointedclause 32—this clause empowers the state government to fill up the casual vacancies and other vacancies in the office of the president or member of a district commission, direct any other district commission to exercise the jurisdiction in respect of that district also; or the president or a member of any other district commission to exercise the powers and discharge the functions of the president or member of that district commission alsoclause 33—this clause makes provision for the state government to provide the district commission with such officers and other employees as may be required to assist the district commission in the discharge of its functions and that the officers and other employees of the district commission shall discharge their functions under the general superintendence of the president of the district commission this clause also makes provision for prescribing the salaries and allowances and the other terms and conditions of service of the officers and other employees of the district commission by the state governmentclause 34—this clause provides for the pecuniary and geographical jurisdiction for filing of complaints in the district commission the pecuniary jurisdiction shall be for value of goods or services not exceeding one crore rupees a consumer may file a complaint in a district commission within the local limits of whose jurisdiction he resides or personally works for gain this clause also makes provision for circuit benches of district commissionclause 35—this clause provides the manner in which complaint shall be made including enabling provision for filing of complaints electronically, fee to be prescribed for filing of complaintsclause 36—this clause provides for the manner of conducting proceedings by the district commission and includes time limit of twenty-one days for admissibility of complaints, deemed admissibility of complaints if admissibility is not decided within the said twenty-one daysclause 37—this clause provides for reference by the district commission of a complaint for mediation with the consent of both the parties to the disputeclause 38—this clause provides for the procedure on admission of a complaint by the district forumclause 39—this clause provides for finding of the district commission, after the proceeding has been conducted in a complaint if the district commission is satisfied that the goods complained against suffer from any of the defects specified in the complaint or that any of the allegations contained in the complaint about the services or any unfair trade practices are proved this clause specifies the relief or compensation, a district commission may grant to a consumerclause 40—this clause provides that a district commission shall have the power to review its orders if there is any error apparent on the face of recordclause 41—this clause provides for appeal against order of the district commission to the state commission on the grounds of facts or law in such form and manner as may be prescribed; entertaining appeals by the state commission after the expiry of the period of thirty days on being satisfied that there was sufficient cause for not filing it within that period; entertaining appeal by the state commission only after the appellant has deposited in the prescribed manner fifty per cent of the amount ordered to be paid to the complainant; barring appeal from an order passed under clause 80 on the basis of settlement reached between the partiesclause 42—this clause provides for establishment of state commission by the state government, setting up of regional benches of the state commission, composition of the state commission having a president and not less than four and not more than such number of members, as may be prescribed by the state government in consultation with the central governmentclause 43—this clause empowers the central government to make rules for the qualification for appointment, method of recruitment, procedure for appointment, term of office, resignation and removal of the president and members of the state commissionclause 44 - this clause provides that the state government will make rules to provide for salaries and allowances and other terms and conditions of service of the president and members of the state commissionclause 45— this clause provides that any person appointed as president or, as the case may be, a member of the state commission immediately before the commencement of this act to hold office as such, as president or member, as the case may be, till the completion of his termclause 46 - this clause makes provision for the state government to provide officers and other employees required to assist the state commission in the discharge of its functions and also to prescribe the salaries and allowances payable to and the other terms and conditions of service of, the officers and other employees of the state commissionclause 47—this clause provides for the pecuniary and geographical jurisdiction for filing of complaints in the state commission the pecuniary jurisdiction shall be for value of goods or services exceeds rupees one core but does not exceed rupees ten crore it also provides that a consumer can file a complaint in state commission within the local limits of whose jurisdiction he resides or personally works for gainclause 48—this clause empowers the state commission, at any stage of the proceeding, to transfer any complaint pending before the district commission to another district commission within the state if the interest of justice so requiresclause 49—this clause provides that the provisions under clauses 35, 36, 37, 38 and39 shall, with such modifications as may be necessary, be applicable for the disposal of disputes by the state commission and that the state commission will deal with matters relating to declaring any terms of contract, which is unfair to any consumer, to be null and voidclause 50—this clause empowers the state commission to review any order made by it, if there is an error apparent on the face of record either of its own motion or on an application made by any of the parties within thirty days of such orderclause 51—this clause provides for appeal against the order of the state commission to the national commission within a period of thirty days from the date of the order in such form and manner as may be prescribed if the appeal involves a substantial question of law; entertaining the appeal by the national commission after the expiry of the period of thirty days on being satisfied that there was sufficient cause for not filing it within that period; entertaining the appeal by the national commission only after the appellant has deposited in the prescribed manner fifty per cent of the amount ordered to be paidclause 52—this clause provides for disposal of appeal by the state commission or the national commission within a period of ninety days from the date of its admission; not granting of adjournment without sufficient cause; recording of reasons in writing if the appeal is disposed of after the specified period of ninety daysclause 53— this clause provides for establishment of the national consumer disputes redressal commission by the central government, which will ordinarily function in the national capital region and perform its functions at such other places as the central government may in consultation with the national commission notify in the official gazette the central government to establish regional benches of the national commission at such places, as it deems fitclause 54—this clause provides for composition of the national commission with a president and not less than four and not more than such number of members, as may be prescribed by the central governmentclause 55— this clause empowers the central government may, by notification, to make rules to provide for qualifications, appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of service of the president and members of the national commission with provision that the president and members of the national commission shall hold office for such term as specified in the rules made by the central government but not exceeding five years from the date on which he enters upon his office and shall be eligible for re-appointment and that no president or member shall hold office as such after he has attained such age as specified in the rules made by the central government which shall not exceed seventy years in the case of the president and sixtyseven years in the case of any other member sub-clause (3) of this clause provides that neither the salary and allowances nor the other terms and conditions of service of president and members of the national commission shall be varied to his disadvantage after his appointmentclause 56—this clause provides that the president and every other member of the national commission appointed immediately before the commencement of section 177 of the finance act, 2017, shall continue to be governed by the provisions of the consumer protection act, 1986 and the rules made thereunder as if this act had not come into forceclause 57—this clause makes provision for the central government to provide the national commission such number of officers and other employees to assist the national commission in the discharge of its functions and prescribing the salaries and allowances payable to, and the other terms and conditions of service of, the officers and other employees of the national commissionclause 58—this clause provides for the original and appellate jurisdiction for filing of complaints in the national commission the pecuniary jurisdiction will be for value of goods and services exceeding ten crore rupeesclause 59—this clause provides that the provisions relating to complaints under clauses 35, 36, 37, 38 and 39 shall, with such modifications as may be necessary, be applicable to the disposal of disputes by the national commission sub-clause (2) provides that the national commission may also declare any terms of contract which is unfair to any consumer to be null and voidclause 60—this clause provides for the national commission to review its own orders if there is an error apparent on the face of the recordclause 61—this clause provides for the aggrieved party applying to the national commission setting aside its order passed ex-parteclause 62—this clause empowers the national commission, at any stage of the proceeding, either on the application of the complainant or of its own motion to transfer any complaint pending before the district commission of one state to a district commission of another state or before one state commission to another state commissionclause 63—this clause provides that in the case of the position of president in the national commission is vacant or a person occupying such office is, by reason of absence or otherwise, or the president is unable to perform the duties for any reasons, these shall be performed by the senior-most member of the national commissionclause 64— this clause provides that no act or proceeding of the district commission, the state commission or the national commission shall be invalid by reason only of the existence of any vacancy amongst its members or any defect in the constitution thereofclause 65—this clause provides for the procedure for service of notice, etcclause 66—this clause provides that in the larger interest of consumers, the national commission or the state commission may direct any individual or organisation or expert to assist the national commission or the state commissionclause 67—this clause provides for appeal against the order of the national commission to the supreme court; appeal to the supreme court only after the appellant has deposited fifty per cent of the amount ordered by national commission to be paid in the manner as may be prescribed, etcclause 68 —this clause provides that every order of a district commission or the state commission or the national commission, as the case may be, shall, if no appeal has been preferred against such order under the provisions of this act, be finalclause 69 —this clause provides for a limitation period of two years from the date on which the cause of action has arisen for filing a complaint before the district commission, the state commission or the national commission with further provision that a complaint may be entertained after the limitation period if the complainant satisfies that he had sufficient cause for not filing the complaint within such period this clause also provides that no such complaint shall be entertained unless the district commission or the state commission or the national commission, as the case may be, records its reasons for condoning such delayclause 70 —sub-clause (1) of this clause provides the administrative control of the national commission over all the state commissions and the district commissions to ensure that the objects and purposes of the act are best served and the standards set by the national commission are implemented without interfering with their quasi-judicial freedom in exercising administrative control, the national commission will have authority to lay down adequate standards in consultation with the central government from time to time for better protection of the interests of consumers; to monitor performance of the state commission in terms of their disposal by calling for periodical returns regarding the institution, disposal and pendency of cases; investigating into any allegations against the president and members of a state commission and submitting inquiry report to the state government concerned along with copy endorsed to the central government for necessary action; issuance of instructions regarding adoption of uniform procedure in the hearing of matters, prior service of copies of documents produced by one party to the opposite parties, furnishing of english translation of judgments written in any language, speedy grant of copies of documents; overseeing the functioning of the state commission or the district commission either by way of inspection or by any other means the president may like to order from time to time sub-clause (2) provides for constitution of a monitoring cell by the president of the national commission to oversee the functioning of the state commissions from the administrative point of viewsub-clause (3) provides for the state commission to have administrative control over all the district commissions within its jurisdiction in all matters referred to in sub-clauses (1) and (2)sub-clause (4) provides for furnishing of any information including the pendency of cases by the national commission and the state commission to the central government periodically or as and when requiredsub-clause (5) provides for furnishing of any information including the pendency of cases by the state commission to the state government periodically or as and when requiredclause 71—this clause provides for enforcement of orders of district commission, state commission or national commission to be in the same manner as if it were a decree made by a court in a suit before it and the provisions of order xxi of the first schedule to the code of civil procedure, 1908 shall, as far as may be, applicable, subject to the modification that every reference therein to the decree shall be construed as reference to the order made under this actclause 72—-this clause provides for punishment for non-compliance of the orders of the district commission or the state commission or the national commission with imprisonment for a term which shall not be less than one month, but which may extend to three years, or with fine, which shall not be less than twenty-five thousand rupees, but which may extend to one lakh rupees, or with both; the district commission, the state commission or the national commission to have the power of a judicial magistrate of the first class for the trial of offences under sub-clause (1), and on conferment of such powers, the district commission or the state commission or the national commission, as the case may be, shall be deemed to be a judicial magistrate of first class for the purpose of the code of criminal procedure, 1973 sub-clause (3) provides summary trial power to the district commission or the state commission or national commissionclause 73— this clause provide for appeal against order passed under section 72sub-clause (2) provides no appeal shall lie before any court from any order of a district commission or a state commission or the national commission sub-clause(3) provides thirty days time from the date of the order of a district commission or a state commission or the national commission and also provides to condone delay by state commission or the national commission or the supreme court for entertaining the appeal beyond the thirty days if it is satisfied that the appellant had sufficient cause for not preferring the appeal within the said period of thirty daysclause 74—this clause provides for establishment of consumer mediation cell attached to the district commissions, state commissions and the national commission and each of the regional benches; sub-clause (3) empowers the state government and the central government to decide the composition of mediation cell; sub-clause (4) provides that every mediation cell shall maintain a list of empanelled mediators, a list of cases handled by the cell, record of proceeding and any other information as may be specified by regulations and submit a quarterly report to the district commission, state commission or the national commission to which it is attached in the manner specified by regulationsclause 75—this clause provides for the procedure of empanelment of mediators in the mediation cell attached to the district commission or state commission or national commission and empanelled mediators shall be valid for five years and eligible to be considered for another term subject to such conditions as may be specified by regulationsclause 76—this clause provides for nominating mediators from the panel, considering their suitability for resolving the consumer dispute involvedclause 77—this clause provides that it shall be the duty of mediator to disclose certain facts which may likely to give rise to a justifiable doubt as to his independence or impartialityclause 78—this clause provides for replacement of a mediator by the district commission or the state commission or the national commission on the information furnished by the mediator or on the information received from any other person including parties to the complaint and after hearing the mediatorclause 79—this clause provides for the procedure of mediation clause 80— this clause provides for provisions relating to settlement through mediation and the role of mediator when an agreement is reached between the parties with respect to all of the issues involved in the consumer dispute or with respect to only some of the issues, and in the event where no agreement is reached between the partiesclause 81—this clause provides for passing of order within seven days of the receipt of any settlement by the district commission, state commission or national commission recording that a settlement has been reached between the parties and disposal of the matter; hearing other issues in case of partial settlement of the dispute; continuing hearing all issues where the dispute could not be settledclause 82— this clause provides for product liability action by a complainant for any harm caused by a defective product manufactured by a product manufacturer or serviced by a product service provider or sold by a product sellerclause 83— this clause states that a product liability action may be brought by a complainant against a product manufacturer or a product service provider or a product seller, as the case may be, for any harm caused to him on account of a defective productclause 84—this clause provides for the grounds on which a product manufacturer shall be liable in a product liability actionclause 85—this clause provides for the grounds on which a product service provider shall be liable in a product liability actionclause 86—this clause provides for the circumstances under which a product seller who is not a product manufacturer shall be liable in a product liability actionclause 87—this clause provides for exceptions to product liability action against product seller and manufacturerclause 88—this clause provides for the penalty for non-compliance of direction of central authority issued under clause 21clause 89—this clause provides for punishment by a court for false or misleading advertisement by any manufacturer or service provider with imprisonment for a term which may extend to two years and with fine which may extend to ten lakh rupees; and for every subsequent offence, with imprisonment for a term which may extend to five years and with fine which may extend to fifty lakh rupeesclause 90— this clause provides for higher punishment with imprisonment and fine by a court to a person who, by himself or by any other person on his behalf, manufactures for sale or stores or sells or distributes or imports any product containing an adulterant, with provision for suspension and cancelation of licence issued to the personclause 91—this clause provides for graded punishment with imprisonment and fine by a court to a person who, by himself or by any other person on his behalf, manufactures for sale or stores or sells or distributes or imports any spurious goods, with provision for suspension and cancelation of licence issued to the personclause 92—this clause provides for a competent court to take cognizance of any offence under clauses 88 and 89 only on a complaint filed by the central authority or any officer authorised by it in this behalfclause 93—this clause provides for punishment for vexatious search by the director general or any other officer, exercising powers under clause 26, knowingly that there are no reasonable grounds for so doing and yet searches, or causes to be searched any premises or seizes any record, register or other document or article, with imprisonment for a term which may extend to one year, or with fine which may extend to ten thousand rupees or with bothclause 94—this clause empowers the central government to take such measures in the manner as may be prescribed for the purposes of preventing unfair trade practices in e-commerce, direct selling and also to protect the interest and rights of consumersclause 95— this clause provides that the presidents, members, officers and other employees of the district commission, the state commission and the national commission, the chief commissioner and all other officers and employees of the central authority and other persons performing any duty under the proposed legislation, shall be deemed to be public servants within the meaning of section 21 of the indian penal codeclause 96— this clause provides for compounding of offences punishable under sections 88 and 89 by the central authority either before or after the institution of the prosecution on payment of such amount as may be prescribedclause 97— this clause provides for the manner of crediting penalty under collected under clause 21 and the amount collected under clause 96clause 98—this clause makes provision for protection of action taken in good faith by the members of the district commission, the state commission or the national commission or the chief commissioner, the commissioner, any officer or employee and other person performing any duty under the proposed legislationclause 99— this clause empowers the central government to give directions on questions of policy to the central authorityclause 100—this clause provides that the provisions of this act shall be in addition to and not in derogation of the provisions of any other law for the time being in forceclause 101—this clause provides for the power to the central government to make rulesclause 102—this clause provides for the power to the state governments, to make rules, conforming to the model rules made by the central governmentclause 103—this clause empowers the national commission to make regulations not inconsistent with the proposed legislation to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of the proposed legislation, with previous approval of the central governmentclause 104—this clause empowers the central authority to make regulations consistent with this act, for the purpose of giving effect to the provisions of this act, with the previous approval of the central governmentclause 105—this clause provides for laying of every rule and every regulation made by the central government, the national commission and the central authority under the proposed legislation before each house of parliament and also every rule made by a state government before the state legislatureclause 106—this clause provides for the power to remove difficulties that may arise in giving effect to the provisions of the proposed legislationclause 107—this clause provides for repeal and savings financial memorandumclause 10 seeks to establish an authority to be known as the central consumer protection authority (central authority) to be headed by a chief commissioner and such number of other commissioners to exercise powers and discharge functions under the proposed legislation2 clause 11 provides for making rules by the central government in regard to the qualifications for appointment, method of recruitment, procedure for appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of the service of the chief commissioner and commissioners of the central authority3 clause 13 provides that the central government shall provide the central authority such number of officers and other employees as it considers necessary for the efficient performance of its functions and the salary and allowances payable to, and the other terms and conditions of service of, the officers and other employees of the central authority it also provides that the central authority may engage, in accordance with the procedure specified by regulations, such number of experts and professionals as it deems necessary to assist it in the discharge of its functions4 clause 15 provides that the central authority shall have an investigation wing for the purpose of conducting inquiry or investigation and may appoint a director-general and such number of additional director-general, director, joint director, deputy director and assistant director5 clause 30 provides for the salaries and allowances payable to, and other terms and conditions of service of, the president and members of district commission to be prescribed by the state government6 clause 33 provides that the state government shall provide the district commission such officers and other employees to assist the district commission in the discharge of its functions and the salaries and allowances payable to, and the other terms and conditions of service of, the officers and other employees of the district commission shall be prescribed by the state government7 clause 44 provides for the salaries and allowances payable to, and other terms and conditions of service of, the president and members of the state commissions to be prescribed by the state government8 clause 46 provides that the state government shall provide the state commission such officers and other employees to assist the state commission in the discharge of its functions and the salaries and allowances payable to, and the other terms and conditions of service of, the officers and other employees of the state commission shall be prescribed by the state government9 clause 55 provides that the central government may, by notification, make rules to provide for qualifications, appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of service of the president and members of the national commission10 sub-clause (1) of clause 57 provides that the central government, in consultation with the president of the national commission shall provide such number of officers and other employees to assist the national commission in discharge of its functions as it may think fit sub-clause (3) provides that the salaries and allowances payable to, and the other terms and conditions of the service of, the officers and other employees of the national commission shall be as may be prescribed by the central government11 sub-clause (2) of clause 70 seeks to set up a monitoring cell to be constituted by the president of the national commission to oversee the functioning of the state commissions from the administrative point of view12 sub-clause (1) of clause 74 provides that the state government shall establish a consumer mediation cell to be attached to each of the district commissions and the state commissions of that state sub-clause (2) provides that the central government shall establish a consumer mediation cell to be attached to the national commission sub-clause (3) provides that a consumer mediation cell shall consist of such persons as may be prescribed13 the financial implications arising from the establishment of the proposed central consumer protection authority is estimated at an annual recurring expenditure of eight hundred lakhs to cover operating costs including salaries and allowances appropriate budgetary allocations shall be made to meet this expenditure from the annual budget of the department of consumer affairs14 it would be difficult to indicate the exact expenditure involved in the appointment of additional members and officers and employees of the district commission and the state commission as this would depend upon the actual number of such members or officers and other employees appointed by the state governments however, the expenditure on this account would be incurred by the state governments the bill does not envisage any other expenditure of recurring or non-recurring memorandum regarding delegated legislationsub-clause (1) of clause 101 of the bill empowers the central government to make, by notification in the official gazette, rules for the purpose of carrying out the provisions of the proposed legislation sub-clause (2) specifies the matters in respect of which such rules may be made these matters, inter alia, include—(a) the other class or classes of persons including public utility entities under sub-clause (19) of clause 2; (b) the contest, lottery, game of chance or skill which are to be exempted under sub-item (b) of item (iii) of sub-clause (47) of clause 2; (c ) the manner of issuing bill or cash memo or receipt for goods sold or services rendered under item (vii) of sub-clause (47) of clause 2; (d) the number of other official or non-official members of the central council under item (b) of sub-clause (2) of clause 3; (e ) the time and place of meeting of central council and the procedure for the transaction of its business under sub-clause (2) of clause 4; (f) the number of commissioners in the central authority under sub-clause (2) of clause10; (g) the qualifications for appointment, method of recruitment, procedure for appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of service of the chief commissioner and other commissioners of the central authority under clause 11; (h) the salary and allowances payable to, and the other terms and conditions of service of, the officers and other employees of central authority under sub-clause (2) of clause 13; (i) the qualifications for appointment of director general, additional director general, director, joint director, deputy director and assistant director and the manner of appointment under sub-clause (2) of clause 15; (j) the manner of taking copies or extracts of document, record or article seized or produced before returning to the person under sub-clause (3) of clause 22; (k) the officer and the manner of disposing of articles which are subject to speedy or natural decay under sub-clause (4) of clause 22; (l) the form and manner for preparing annual statement of accounts by central authority in consultation with the comptroller and auditor-general of india under subclause (1) of clause 26; (m) the form in which, and the time within which, an annual report, other reports and returns may be prepared by the central authority under sub-clause (1) of clause 27; (n) the qualifications for appointment, method of recruitment, procedure for appointment, term of office, resignation and removal of president and members of the district commission under clause 29; (o) the other value of goods and services in respect of which the district commission shall have jurisdiction to entertain complaints under proviso to subclause (1) of clause 34; (p) the manner of electronically filing complaint under the proviso to sub-clause (1) of clause 35; (q) the fee, electronic form and the manner of payment of fee for filing complaint under sub-clause (2) of clause 35; (r) the cases which may not be referred for settlement by mediation under sub-clause (1) of clause 37; (s) the manner of authentication of goods sampled in case of national commission under item (c) of sub-clause (2) of clause 38; (t) any other matter which may be prescribed under item (f) of sub-clause (9) of clause 38; (u) the fund where the amount obtained may be credited and the manner of utilisation of such amount under sub-clause (2) of clause 39; (v) the form and the manner in which appeal may be preferred to the state commission under clause 41; (w) the qualifications for appointment, method of recruitment, procedure of appointment, term of office, resignation and removal of the president and members of the state commission under clause 43; (x) the other value of goods and services in respect of which the state commission shall have jurisdiction under proviso to sub-item (i) of item (a) of sub-clause (1) of clause 47; (y) the form and manner of filing appeal to the national commission, and the manner of depositing fifty per cent of the amount before filing appeal, under sub-clause (1) of clause 51; (z) the number of members of the national commission under item (b) of clause 54; (za) the qualifications, appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of service of president and members of the national commission under sub-clause (1) of clause 55; (zb) the salaries and allowances payable to, and other terms and conditions of service of, the officers and other employees of the national commission under sub-clause (3) of clause 57; (zc) the other value of goods and services in respect of which the national commission shall have jurisdiction under proviso to sub-item (i) of item (a) of sub-clause (1) of clause 58; (zd) the manner of depositing fifty per cent of the amount under second proviso to clause 67; (ze) the form in which the national commission and the state commission shall furnish information to the central government under sub-clause (4) of clause 70; (zf) the persons in the consumer mediation cell under sub-clause (3) of clause 74; (zg) the measures to be taken by the central government to prevent unfair trade practices in e-commerce, direct selling, etc, under clause 94; (zh) the amount for compounding offences under sub-clause (1) of clause 96; (zi) the fund to which the penalty and amount collected shall be credited under clause 97; and (zj) any other matter which is to be, or may be prescribed, or in respect of which provisions are to be, or may be, made by rules2 sub-clause (1) of clause 102 of the bill empowers the state government to make, by notification in the official gazette, rules for the purpose of carrying out the provisions of the proposed legislation sub-clause (2) specifies the matters in respect of which such rules may be made these matters, inter alia, include— (a) the other class or classes of persons including public utility entities under sub-clause (19) of clause 2; (b) the contest, lottery, game of chance or skill which are to be exempted under sub-item (b) of item (iii) of sub-clause (47) of clause 2; (c ) the number of other official or non-official members of the state council under item (b) of sub-clause (2) of clause 6; (d) the time and place of meeting of the state council and the procedure for the transaction of its business under sub-clause (4) of clause 6; (e ) the number of other official and non-official members of district council under item (b) of sub-clause (2) of clause 8; (f) the time and place of meeting of the district council and procedure for the transaction of its business under sub-clause (4) of clause 8; (g) the number of members of the district commission under item (b) of sub-clause (2) of clause 28; (h) the salaries and allowances payable to, and other terms and conditions of service of, the president and members of the district commission under clause 30; (i) the salaries and allowances payable to, and other terms and conditions of service of, the officers and other employees of the district commission under sub-clause (3) of clause 33; (j) the manner of authentication of goods sampled by the state commission and the district commission under item (c) of sub-clause (2) of clause 38; (k ) the manner of depositing fifty per cent of the amount before filing appeal under the second proviso to clause 41; (l) the number of members of the state commission under sub-clause (3) of clause 42; (m) the salary and allowances payable to, and other terms and conditions of service of, the president and members of the state commission under clause 44; (n) the salaries and allowances payable to, and other terms and conditions of service of, the officers and other employees of the state commission under sub-clause (3) of clause 46; (o) the form in which the state commission shall furnish information to the state government under sub-clause (5) of clause 70; (p) the persons in the consumer mediation cell under sub-clause (3) of clause 74; (q) any other matter which is to be, or may be prescribed, or in respect of which provisions are to be, or may be, made by rules3 sub-clause (1) of clause 103 of the bill empowers the national commission, with the previous approval of the central government, to make regulations not inconsistent with the proposed legislation to provide for all the matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of the proposed legislation sub-clause (2) provides that the regulations may make provisions for - (a) the costs for adjournment to be imposed by the district commission under the second proviso to sub-clause (7) of clause 38; (b) the costs for adjournment to be imposed by the state commission or the national commission, as the case may be, under the second proviso to clause 52; (c ) the maintenance of any other information by the consumer mediation cell under sub-clause (4) of clause 74; (d) the manner of submission of quarterly report by consumer mediation cell to district commission, state commission or the national commission under sub-clause (5) of clause 74; (e) the qualifications and experience required for empanelment as mediator, the procedure for empanelment, the manner of training empanelled mediators, the fee payable to empanelled mediator, the terms and conditions for empanelment, the code of conduct for empanelled mediators, the grounds on which, and the manner in which, empanelled mediators shall be removed or empanelment shall be cancelled and the other matters relating thereto under sub-clause (2) of clause 75; (f) the conditions for re-empanelment of mediators for another term under sub-clause (3) of clause 75; (g) the other facts to be disclosed by mediators under sub- clause (c) of clause 77; (h) the time within which, and the manner in which, mediation may be conducted under sub-clause (3) of clause 79; and (i) such other matter for which provision is to be, or may be made by regulation4 sub-clause (1) of clause 104 of the bill empowers the central authority, with the previous approval of the central government, to make regulations not inconsistent with the proposed legislation, for the purpose of giving effect to the provisions of this legislation sub-clause (2) provides that the regulations may make provisions for - (a) the procedure for engaging experts and professionals and the number of such experts and professionals under sub-clause (3) of clause 13; (b) the procedure for transaction of business and the allocation of business of the chief commissioner and commissioner under sub-clause (1) of clause 14; (c) the form, manner and time within which, inquiries or investigation made by the director general shall be submitted to the central authority under sub-clause (5) of clause 15; and (d) such other matter for which provision is to be, or may be made by regulation5 the matters in respect of which rules and regulations may be made relate to matters of procedure or administrative details 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 forprotection of the interests of consumers and for the said purpose, to establish authorities for timely and effective administration and settlement of consumers' disputes and for matters connected therewith or incidental thereto ————(shri ram vilas paswan, minister of consumer affairs, food and public distribution) | Parliament_bills | 73f4272a-28d4-5311-b11e-c8a048874dbe |
bill no 54 of 2007 the agricultural land acquisition regulatory authority bill, 2007 by shri hansraj gangaramji ahir, mp a billto provide for the constitution of an agricultural land acquisition regulatory authority for the purpose of regulation of land acquisition in the country and for matters connected therewith or incidental theretobe it enacted by parliament in the fifty-eighth year of the republic of india as follows:—1 (1) this act may be called the agricultural land acquisition regulatory authority act, 2007short title, extent and commencement(2) it extends to the whole of india5(3) it shall come into force at oncedefinitions2 in this act, unless the context otherwise requires,—(a) "agricultural land" means such land where any crop has been grown through cultivation at any time during the preceding ten years or any land having any forest cover;10(b) "appropriate government" means in the case of a state, the government of that state and in all other cases, the central government;(c) "authority" means the agricultural land acquisition regulatory authority constituted under section 3 of this act; and(d) "prescribed" means prescribed by rules made under this act53 the central government shall constitute a regulatory authority for regulation of acquisition of agricultural land to be known as the agricultural land acquisition regulatory authorityagricultural land acquisition regulatory authority4 (1) the authority shall consist of:—10composition of theauthority(i) a retired judge of supreme court who shall be the chairperson; (ii) five members having atleast ten years experience of teaching in agricultureuniversities and who shall be appointed in such manner as may be prescribed; and(iii) five other members having special knowledge in the field of agriculture tobe appointed in such manner as may be prescribed15(2) the chairperson and other members of the authority shall hold office for a periodof five years(3) the headquarters of the authority shall be at nagpur in the state of maharashtra (4) the authority shall have its office in every state/union territory20(5) the central government shall provide such number of officers and staff to the authority as are required for its efficient functioning5 the authority shall perform the following functions:—functions of the authority(a) collection of data pertaining to agricultural land in all the states;(b) monitoring all agricultural land acquisition in the country; (c) issuing prohibition order on acquisition of agricultural land wherevernecessary;25(d) issuing no objection certificate for agricultural land acquisition; and(e) conducting suo motu inquiry into any specific acquisition of agriculturalland in such manner as may be prescribed306 (1) after the commencement of this act, it shall be mandatory for every authority or agency under the state government or the central government to obtain a no-objection certificate from the authority for acquisition of land in such manner as may be prescribedland not to be acquired without noobjection certificate from the authority35(2) before issuing any no-objection certificate under sub-section (1), the authority shall satisfy itself by verifying relevant documents or visiting the site that the land being acquired by the appropriate government is not an agricultural land or, if it is an agricultural land, circumstances exist warranting the acquisition of such land(3) the authority shall give its decision regarding issue of no-objection certificate not later than three months from the date of receipt of application for a no-objection certificatepunishment7 any person violating the provisions of this act shall be punished with animprisonment which may extend to three years and a fine which shall not be less than ten per cent of the market value of the land acquired8 the central government shall provide adequate funds to the authority for meeting the expenditure relating to its offices, infrastructure and for implementing the provisions of this actcentral government to provide adequate fundspower to remove difficulty9 if any difficulty arises in implementing the provisions of this act, the central government shall have power to issue such orders not inconsistent with the provisions of this act by notification in the official gazette as are required to remove such difficultypower to make rules510 (1) the central government may, by notification in the official gazette, make rules for carrying out the purposes of the act10(2) every rule made 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 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 the 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, 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 reasonsas a result of population explosion, the pressure on resources of earth is on a constant increase year after year at present the size of rural population is more than 70 crore about two decades ago 185 crore hectare of land catered to the requirements of almost 80 crore people but the present scenario is that 18 crore 29 lakh hectares of land is catering to the needs of nearly 120 crore people with increase in population and stagnant land availability, the food security may no longer be there surveys conducted by planning commission, national sample survery organisation (nsso) and other agencies have all confirmed that size of arable land in the country is shrinking because fertile land is being sacrificed in the name of urbanization and industrialisation we are already witnessing that more and more farmers are turning landlessthere is no sensitization on the part of either planners or the government towards the fact that fertile land is a finite resource and needs to be conserved that is why, the per capita land availability which was 027 hectare in 1980 has come down to less than 020 hectare now what is truly surprising is the fact that most of the new urbanization or industrialisation is happening on land that is cultivable whereas the barren land which is about 77 crore hectare remains untouched it would have been more practical and less damaging if this land was used for urbanization and industrialisation but the governments keep on acquiring cultivable land for non-agricultural purposes the problem is compounded when it is realized that about 19 lakh acres of land is under litigation and 20 lakh acres of land is to be distributed under the land reforms actson the one hand per capita land availability is declining, on the other hand almost32 per cent population of the country is landless the concept of special economic zones (sezs) is likely to make lakhs of farmers landless as per an estimate, 3 lakh hectares of land is to be acquired for sezs most of this land is likely to be acquired from the farmers the acquisition of agricultural land is already causing dissatisfaction amongst farmers and at many places the protests have turned violent the decline in agricultural land may give rise to a number of problems such as the question of food security, increase in import of foodgrains and resultant dependence on other countries for our foodgrain requirements therefore, it is wrong to acquire agricultural land for non-agricultural purposesit is felt that legislation is needed to monitor and regulate the process of land acquisition in the country therefore, a bill is proposed to set up an agricultural land acquisition regulatory authority with a view to put a stop to acquisition of agricultural land for other purposes unless it is absolutely essentialhence this billnew delhi;hansraj gangaramji ahirapril 18, 2007 financial memorandumclause 3 of the bill provides for the setting up of a land acquisition regulatory authority clause 4 provides for composition of the authority clasue 5 provides that the authority shall perform a number of functions including collection of data on agricultural land clause 6 provides that the authority shall issue no-objection certificate before any acquisition of land is made clause 8 provides that the central government shall provide adequate funds to the authority for implementing the provisions of this actthe bill, therefore, if enacted would involve expenditure from the consolidated fund of india it is estimated that a recurring expenditure of rupees one hundred crore would be involveda non-recurring expenditure of about rupees ten crore is also likely to be involved memorandum regarding delegated legislationclause 10 of the bill empowers the central government to make rules for carrying out the provisions of the bill the rules will relate to matters of detail only therefore, the delegation of legislative power is of a normal character————— a billto provide for the constitution of an agricultural land acquisition regulatory authority for the purpose of regulation of land acquisition in the country and for matters connected therewith or incidental thereto—————(shri hansraj gangaramji ahir, mp)mgipmrnd—1962ls(s5)—07-05-2007 | Parliament_bills | 22c2beaf-7176-5e89-b168-06868994ea2e |
corrigenda to the uttar pradesh ap~priation bill, 1968 (to be/as introduced 1nl!o}{f:1!pha)1 page 4, line 31, for "outaly" rl3ad "outlay" -2 page 5, lil1g 3, column 2,- read "services" for "service" -!) correct line numbers on pages, 1, 2 and 4 new delhi; march 19, 1968 phaiguna 29, 1889 (saka) ~~~o~4jotl"8 the uttar pradesh appropriation bill, 1968 a bill'to authorile payment and appr0pri4tion f1j certain further iumi from and out f1j the conbolidated fund of the st4te of uttar pradeh lor the service of the jimnci4z year 1967-68 bs it enacted by parliament in the nineteenth year of the republic of india as follows:-1 this act may be called the uttar pradesh appropriation act, shon title 1868 z from and out of the consoltda1x!d fund of the state of utter iuue ot s pradesh there may be paid and applied sums not exceeding those & 19,82,87, specified in column 3 of the schedule amounting in the aggregate 300nd from t - ' da ouol to the swn of mneteen crores, nmety-two lakbs, sixty-8ev'ed thousan the como-and three hundred rupees towards defraying the several char udated which will come in course of payment during the financial yeat 1967-68, in res~ qf tile ~rvices apeci1ied in column 2 of the schedule , fund of the state of uttar pradeah for the ftnaneial jear 1887 approprla s the sums authorised to be paid and applied from and out of uo- the consolidated fund of the state of uttar pradesh by this act shall be appropriated for the services and purposes expressed in the schedule in relation to the said year total sums not rc:eedln semcta and purposes voted by ch-aed oil parliament tile consou· dated pwid , no lb ri 10 i :a1000 ta:l on larac land ;hoic:iiei' a5,ooo i l,n71,csoo land 1teftdue 11111100 iojoo 100 sales tu 100 :a 1~3300 stamp' 1,153300 11100 state ielfslature 100 1800e 14,ai100 21ectionl :14,1&1100 is - it 1400,00 10 general adminlltratloft 100 i~o ii 1817,,00 commillionel'l and district admiaiatration 15,1, jtno 3,,61700 administration of juldce :aa9i,300 111t4od :a:a15~700 jail, :a2,ii5,700 13 20 14 1,10-,14700 15 16 ,,,100 police 109_ 76~'700 j''''''' pood and civilsuppl1ea and other organilationl 3,80,100 17 75,500 sciendfic research and cultural a 75,500 l,a751 j400 eduadion i,a1,~ ii :&8,19,1100 medical a8,i9,100 3,15j400 pubuc health 375,400 19 :aoo agricllltural development 0' al 11,00 colodiaatlod 11,500 2a 115 animal hl1ibandry'" fisberies - - 34121 700 • 34:11,700 , ~~ i no· sums not exceeding of services and purpoiel vote voted by charged on parliament the consolidated fund total ra ri rs 24 co-operation 63900 '3900 2, industries 237700 2t37700 28 planning and co-ojdidation soo ,00 10 " 27 labour and employment 246800 2jt46,eoo 28 information directorate 9,000 9000 29 scheduled and backward classes 9;";300 9,,300 30 social welfare 200 200 31 irrigation works met from revenue 58,50,400 , 58,501400 33 irrigation estabushment 52,28800 ,2,28,800 33 public worts met from revenue 1,21,00,100 66,000 1,21,66,100 20 34 improvementofcommunic:ationa 100 100 35 public works establihment 2s,22,500 3,500 25,26,000 36 grants-in-aid of pub he work a 100 100 37 transport 166,02300 , 1,66,02300 39 superannuation allowancca and pensions 654000 · 6s4000 , 42 forest 2403100 "i/eo 2491soo 44 expenditure connected with national emergency 100 · 100 30 4s cab,ital outaly on alric:ultural chemes 29250000 293,0,000 46 capital outlay on iddasttfal ~d~~~ 75s1t400 7s510400 47 capital outla~ on multipurpose river chemel, 10,00,000 · 10,00,000 48 ca~tai outlay on irriptl orks, - - - 100 100 3' no swill dot ezceediot of service idd piu'poiel vote vocal '" charaed on 'pariiudedt the ccmeoll tclilal daled fuad ri ri r, 50 capital outlay on public work, 300 114100 1540400 10 ,i capital outlay on road tranlpon add other schemel 100 410 4,,'700 54 loan aod advance beuln, interest 15~0400 ' 1530,15150400 total 1984'9600 '",700 19oa873oo statement of objects and reasonsthis btu is introduced in pursuance of articles 204 (1) and 205 of -the constitution and the proclamation issued under article 356 of the constitution in respect of the state of uttar pradesh on the 25th february, 1968, to provide for the appropriation out of the consolidated fund of the state of uttar pradesh of the money required to meet the supplementary expenditure charged on the consolidated fund of the state of uttar pradesh and the grants made by the lok sabha for expenditure of the government of uttar pradesh for th'e ftnanclal year 1967-68 orarji desai president's recommendation under article 207 of the consti'rotion of india[copy of letter no f 5(3)-b/68 dated the 14th march, 1968 fr(\m shri morarji desai, deputy prime minister and minister of finance to the secretary, lok sabha] the president, having been informed of the subject matter of th'e proposed bill to authorise payment and appropriation of certain :further sums from and out of the consolidated fund of the state of uttar pradesh for the services of the year ending on the 31st day of march, 1968, recommends under clauses (1) and (3) of arti~le ~07 of the constitution read with article 205 thereof and the proclamation dated the 25th february, 1968 issued under article 356, the introduction of the uttar pradesh appropriation bill, 1968 in the lok sabha and also the consideration of the bill 2 the bill will be introduced in the lok sabha after all the supplementary demands for grants for 1967-68 have been voted a billto authorise payment and appropriation of certain further sums from and out of the consolidated fund of the state of uttar pradesh for the services of the financial year 1967-68 (shri morarfi desai, deputy prirm minister and minister of fintltlu) | Parliament_bills | 74748921-5f8e-5ebd-9be8-c18fc413a298 |
bill no 229 of 2016 the criminal law (amendment) bill, 2016 byshri dushyant chautala, mpa billfurther to amend the indian penal code, 1860 and the code of criminal procedure, 1973be it enacted by parliament in the sixty-seventh year of the republic of india as follows:—2 of 1974amendment of the first schedule3 in the first schedule to the code of criminal procedure,1973, under the heading"i- offences under the indian penal code", for the entries relating to section 304a, the following entries shall be substituted, namely:—| 1 | 2 | 3 | 4 | 5 | 6 ||-----------|-----------------|--------------|------------|--------------|------------|| 5 | | | | | || " 304a | causing | imprisonment | cognizable | non-bailable | magistrate || death by | for 5 years, or | of the first | | | || rash or | fine, or both | class" | | | || negligent | | | | | || act | | | | | | statement of objects and reasonsnegligence in criminal terms refers to such a degree which is so extreme in nature that it constitutes an offence similarly death caused by an act without an intention of causing death is said to be a negligent act or death caused by negligence but whenever there is negligence in one's commission or omission, there is a lack of caution when this lack of caution on one's part is so grave that it causes the death of another, the caution free mind is not free from the realm of mens reaan act lacking caution in itself is done with the knowledge that there is a lack of caution the doer may not be well aware of the consequences of his act but is very much aware of the amount of caution he is lacking while doing an act a person being aware of the amount of caution lacking on his part automatically makes him aware of the dangerous consequences that may result in due to such lack the act of negligence becomes so grave when it causes death of a person therefore, it is perhaps not wrong to say that the doer was aware of the lack of caution in his act and hence aware of the dangerous consequences of such lacking thus even without having any intention to cause homicide, the doer opts for a game of probability where there is a chance of death being caused this small probability is all that requires to cause death in certain cases this lack of caution cannot be held as a minor mistake on the part of the doer since he himself creates the opportunity for death to causesection 304a of the indian penal code provides for punishment for causing death by rash or negligent act, which is two years and is bailable in nature taking account of the recent cases wherein innocent lives were lost due to rash and negligent attitude of drivers, it is imperative that a deterrent by way of law should be created hence in no case this offence should be non-compoundable in nature and no bail should be granted to the accusedmoreover, the two years imprisonment may be taken undue advantage of by professional criminals who kill intentionally and try to fit their case within the realm of section 304a if the punishment is increased from two to five years, there shall be a deterrent effect on those who seem to take lives of others in a casual mannerthe bill, therefore, accordingly seeks to amend section 304a of the indian penal code,1860 and the first schedule to the code of criminal procedure, 1973hence this billnew delhi;dushyant chautalajuly 6, 2016 annexureextract from the indian penal code, 1860(no 45 of 1860) 304a whoever causes the death of any person by doing any rash or negligent act not amounting to culpable homicide, shall be punished with imprisonment of either description for a term which may extent to two years, or with fine, or with both extract from the code of criminal procedure, 1973[2 of 1974] chapter xvi— offences affecting the human body| 1 | 2 | 3 | 4 | 5 | 6 ||-----------|-----------------|--------------|------------|----------|------------|| "304a | causing | imprisonment | cognizable | bailable | magistrate || death by | for 2 years, or | of the first | | | || rash or | fine, or both | class" | | | || negligent | | | | | || act | | | | | || | | | | | | lok sabha———— a billfurther to amend the indian penal code, 1860 and the code of criminal procedure, 1973————(shri dushyant chautala, mp)gmgipmrnd—2629ls(s3)—30-09-2016 | Parliament_bills | 42b079ee-b109-5c7c-97f9-718afc4ea722 |
bill no 194 of 2018 the prevention of insults to national honour (amendment) bill, 2018 by shri parvesh sahib singh, mp a billfurther to amend the prevention of insults to national honour act, 1971be it enacted by parliament in the sixty-ninth year of the republic of india as follows:—short title and commencement1 (1) this act may be called the prevention of insults to national honour (amendment)act, 20185(2) it shall come into force on such date as the central government may, by notification in the official gazette, appoint69 of 19712 in the prevention of insults to national honour act, 1971, for section 3, the followingsection shall be substituted, namely:—10substitution of new section for section 3 prevention of singing of national anthem"3 whoever intentionally prevents the singing of the indian national anthem or causes disturbance to any assembly engaged in such singing or intentionally causes disrespect to the national anthem, shall be punished with imprisonment for a term, which may extend to three years, or with fine, or with bothexplanation—for the purposes of this section, the word "disrespect" shall include any person refusing to stand for or recite the national anthem except when such person is suffering from any physical disability in that regard" statement of objects and reasonsnational honour is embodied in various symbolic elements like national flag, national anthem and national symbols respecting them is a fundamental duty of every citizennational anthem of any nation has a unique significance of its own in the case of india, our national anthem is not only the symbol of our national honour but it is also a memory and a tribute for our freedom struggle written by shri rabindranath tagore, it contains flavor of unity and integrity of our nation it keeps up reminding of our rich cultural, natural and political diversity thus any kind of disrespect or insult to our national anthem is an insult to the integrity and unity of our countrythe prevention of insults to national honour (amendment) bill, 2018 is an effort to ensure full respect and honour for our national anthem the bill seeks from all persons to stand and recite the national anthem whenever it is played or sung in an assembly of people the aim is not only to provide respect and honour for our national anthem but also to inculcate among our citizens a feeling of belongingness for our national anthemhence this billnew delhi;parvesh sahib singh27 november, 2018 annexure extracts from the prevention of insults to national honour act, 1971 (69 of 1971) 3 whoever intentionally prevents the singing of the indian national anthem or causes disturbances to any assembly engaged in such singing shall be punished with imprisonment for a term, which may extend to three years, or with fine, or with bothprevention of singing of national anthem ———— a billfurther to amend the prevention of insults to national honour act, 1971————(shri parvesh sahib singh, mp)mgipmrnd—2268ls(s3)—14-12-2018 | Parliament_bills | 408d6c34-5425-5044-91c5-1568eb7d4c75 |
bill no 41 of 2012 the scheduled castes hamlets (provision of basic facilities) bill, 2012 by shri kodikunnil suresh, mp a billto provide for certain basic facilities to the persons belonging to the scheduled castes and living in hamlets and for matters connected therewithbe it enacted by parliament in the sixty-third year of the republic of india as follows:—short title and commencementfacilities) act, 2012definition2 in this act, unless the context otherwise requires, "hamlet" means a small village ora cluster of houses inhabited by the persons belonging to the scheduled castes53 (1) the central government shall, within a period of one year from the date of coming into force of the scheduled castes hamlets (provision of basic facilities) act, 2012, identify the hamlets inhabited by the persons belonging to the scheduled castes(2) for the purpose of identifying hamlets under sub-section (1), the central government shall use such methods as it may deem fitidentification of hamlets inhabited by persons belonging to scheduled castes104 the central government shall provide adequate funds to the state governments for the purposes of providing the following basic facilities free of cost to the persons belonging to the scheduled castes and living in hamlets identified under section 3, namely:—(i) potable water;funds to the state governments for providing certain basic facilities(ii) electricity;(iii) sewage facilities;(iv) toilet facilities;(v) road connectivity;15(vi) primary health centres;(vii) parks;(viii) crematorium; and(ix) pucca dwelling units205 the provisions of this act shall be in addition to and not in derogation of any other law for the time beingact not to be in derogation of any other law power to make rules6 (1) the central government may, by notification in the official gazette, make rules for carrying out the purposes of this act25 30(2) every rule made 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 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 the 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, 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 persons belonging to the scheduled castes have been, for centuries, the most neglected, marginalized and exploited after independence, the polity of our nation has realized the importance of development of weaker sections specially the scheduled castes consequently, planned efforts have been made for their upliftment by the successive governments however, the benefits of affirmative action by the successive governments for the welfare of persons belonging to the scheduled castes have reached only to a small section of these persons in the last sixty-four years majority of persons of these castes are facing a lot of problems due to poor living conditions in the hamlets where they live in they do not have access to the basic necessities of life like potable water, sanitation, pucca houses, electricity etc, and are, therefore, unable to live a dignified lifetherefore, it is proposed that all hamlets inhabited by the persons belonging to the scheduled castes should be provided with all basic facilities to improve their standard of livinghence this billnew delhi;kodikunnil sureshmarch 26, 2012 financial memorandumclause 3 of the bill provides for identification of hamlets inhabited by the persons belonging to the scheduled castes clause 4 provides that the central government shall provide adequate funds to the state governments for providing certain basic facilities to the persons belonging to the scheduled castes and living in hamlets the bill, therefore, if enacted, would involve expenditure from the consolidated fund of india it is estimated that a sum of rupees five thousand crore would be involved as recurring expenditure per annuma sum of rupees ten thousand crore would be involved as a non-recurring expenditure memorandum regarding delegated legislationclause 6 of the bill empowers the central government to make rules for carrying out the purposes of the bill as the rules will relate to matters of detail only, the delegation of legislative power is of a normal character———— a billto provide for certain basic facilities to the persons belonging to the scheduled castes and living in hamlets and for matters connected therewith————(shri kodikunnil suresh, mp)gmgipmrnd—43ls(s3)—17042012 | Parliament_bills | f289c0e2-e99c-5df6-9d37-3d799854c28e |
bill no xi of 2013 the securities and exchange board of india (amendment) bill, 2013 a billfurther to amend the securities and exchange board of india act, 1992be it enacted by parliament in the sixty-fourth year of the republic of india as follows:— 1 (1) this act may be called the securities and exchange board of india (amendment)act, 2013short title and commencement(2) it shall be deemed to have come into force on the 21st day of january, 2013amendment of section 15m"(1) a person shall not be qualified for appointment as the presiding officer of the securities appellate tribunal unless he —(a) is a sitting or retired judge of the supreme court or a sitting or retired chief justice of a high court; or5(b) is a sitting or retired judge of a high court who has completed not less than seven years of service as a judge in a high court (1a) the presiding officer of the securities appellate tribunal shall be appointed by the central government in consultation with the chief justice of india or his nominee"10repeal and savingord 1 of 20133 (1) the securities and exchange board of india (amendment) ordinance, 2013, is hereby repealed15 of 199215(2) notwithstanding such repeal, anything done or any action taken under the securities and exchange board of india act, 1992, as amended by the said ordinance, shall be deemed to have been done or taken under the corresponding provisions of that act, as amended by this act statement of objects and reasonsthe securities and exchange board of india act, 1992 (sebi act) was enacted to provide for the establishment of the securities and exchange board of india to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market2 the securities appellate tribunal (sat) was established under section 15k of the sebi act to adjudicate upon appeals against the decisions of the securities and exchange board of india section 15m of the said act, relating to qualifications for appointment as the presiding officer of the sat, provides that a person shall not be qualified for appointment as the presiding officer of the sat unless he is a sitting or retired judge of the supreme court or a sitting or retired chief justice of a high court3 the post of presiding officer of the sat has been lying vacant since the29th november, 2011 due to non-availability of a suitable candidate efforts to identify a suitable candidate to take up the assignment under the existing eligibility criteria, have not met with success, and, therefore, the post has been lying vacant the absence of a presiding officer has been hampering the functioning of the tribunal, which is the appellate authority of the security and exchange board of india the tribunal is important for smooth functioning of the capital markets4 in view of the above difficulties, there was a need to enlarge the field of selection for the post of presiding officer of sat by including sitting or retired judges of a high court with a minimum of seven years of service as a judge of a high court as one of the qualifications for the post of presiding officer of sat5 as there was an urgent need to fill the post of presiding officer of sat and parliament was not in session, it became necessary to amend section 15m of the sebi act by way of promulgation of an ordinance so as to include the sitting or retired judges of a high court with a minimum of seven years of service as a judge of a high court as one of the qualifications for the post of presiding officer of the sat accordingly, the securities and exchange board of india (amendment) ordinance, 2013 was promulgated on the 21st january, 20136 the bill seeks to replace the aforesaid ordinancenew delhi;p chidambaramthe 18th february, 2013 annexure extract from the securities and exchange board of india act, 1992 (15 of 1992)15m (1) a person shall not be qualified for appointment as the presiding officer of a securities appellate tribunal unless he is a sitting or retired judge of the supreme court or a sitting or retired chief justice of a high court:provided that the presiding officer of the securities appellate tribunal shall be appointed by the central government in consultation with the chief justice of india or his nomineequalification for appointment as presiding officer or member of the securities appellate tribunal rajya sabha————— a bill further to amend the securities and exchange board of india act, 1992—————gmgipmrnd—4936rs(s4)—21022013 | Parliament_bills | b51adae9-ca2b-5bc4-b91a-c44aefd3712d |
bill no lxix of 2007 the electricity (compulsory supply to katras and densely populated settlements) bill, 2007 a billto provide for the compulsory supply of electricity to the katras and densely populated settlements located in the metropolitan cities and major cities of the country and for matters connected therewith and incidental theretobe it enacted by parliament in the fifty-eighth year of the republic of india as follows:—1 (1) this act may be called the electricity (compulsory supply to katras and densely populated settlements) act, 2007short title, extert and commencement5(2) it extends to the whole of india(3) it shall come into force on such date, as the central government may, by notification in the official gazette appointdefinitions2 in this act, unless the context otherwise requires,—10(a) "appropriate government" means in the case of a state, the government ofthat state and in other cases the central government;(b) "densely populated settlements" means such settlements which are declared as densely populated settlements by the appropriate government for the purposes of this act5(c) "residential or commercial areas" means densely populated areas located in metropolitan cities and major cities of the country;(e) "prescribed" means prescribed by rules made under this act10supply of electricity to katras and densely populated settlements3 (1) notwithstanding anything contained in any other law for the time being in force, the appropriate government shall ensure that sixty per cent of the total electricty generated under its territorial jurisdiction, including the electricity generated by the foreign companies, shall be supplied to the katras and densely populated settlements located in the metropolitan cities and major cities(2) the appropriate government shall determine the quantum of electricity to be supplied to the metropolitan cities and major cities within its territorial jurisdiction in such manner as may be prescribed:15provided that in the katras and densely populated settlements the supply of electricity to the citizens living below poverty line shall be at half of the prescribed rate for six hour in a daypower to make rules4 the central government may, by notification in the official gazette, make rules for carrying out the purposes of this act statement of objects and reasonsthere is an acute shortage of electricity in the katras and densely populated settlements located in he metropolitan cities and major cities of the country the citizens living in the katras and densely populated settlements have to face a lot of difficulties due to the shortage of electricity during summer the situation becomes the worst due to non-availability of open spaces and parks nearby these katras and densely populated settlements, the citizens living there feel suffocated during failure of power due to non-availability of power their lives become hell, especially in the summertherefore, it is proposed to make the supply of electricity compulsory in the katras and densely populated settlement located in the metropolitan cities and major cities of the countryhence this billjai parkash aggarwal financial memorandumclause 3 of the bill, provides that the appropriate government shall supply electricity to the citizens living below poverty line in the katras and densely populated settlements for six hours a day at half of the rate the expenditure in respect of union territories in this regard shall be borne by the central govt the bill, therefore if enacted, will involve expenditure from the consolidated fund of india in the case of states this expenditure will be incurred from the consolidated fund of those states it is estimated that approximately a sum of rupees nine crore will involve as recurring expenditure per annum memorandum regarding delegated legislationclause 4 of the bill empowers the central government to make rules for carrying out the purposes of the bill the rules will relate to matters of details only the delegation of legislative power is of normal character rajya sabha———— abillto provide for the compulsory supply of electricity to the katras and densely populated settlements located in the metropolitan cities and major cities of the country and for matters connected therewith and incidental thereto ————(shri jai parkash aggarwal, mp)mgipmrnd—5057rs(s-5)—30-11-2007 | Parliament_bills | e9c7de20-552d-5728-be24-7e62547dfc1e |
the mlzoram appropriation bill, 1979· a billto authorise payment and approporiation of ce1taim further bums from and out of the consolidated fund of the union territory of mizorum for the services 01 the financial year 1978-79 be it enacted by parliament in the thirtieth year of the republic of india as follows:-1 this act may be called the mizoram appropriation act, 1979 short title 2 from and out of the consolidated fund of the union territory of 5 mizoram there may be paid and applied sums not exceeding those specified in column 3 of the schedule amounting in the aggregate to the sum of ten crores, thirty-two lakhs and seventy-one thousand rupees towards defraying the several charges which will come in course of, payment during the financial year 197'8-79 in respect of the services specljled loin column 2 of the schedule, issue of rsio,32, 71,000 from and out of the consolidated fund of the union territory ofmizoram for tbeflnanclal ~ear 1978-'19 appropm-ucm 3 the sums authorised to be paid and applied from and out of the consolidated fund of the union territory of mizoram by this act sh~ be appropriated for the services and purposes expressed in the schedule in relation to the said year - ---------------------,------ ------_ --- - - __ 1 ___ 1 _____________ ~ _____________________ 3 ____________ ___ s!:rvic:~ and purpos'~1 demand number sum not exceeding ----------------·5 voted by cbarpi od total parliament the coiiioli dated fund ri ri ri 11,00,000 10 4-adminiltration orjuatice revenue 11,00,000 5 electiolll revedue 7 taxea on vehiclea - revenue 6 revenue secretariat 11>4 1,000 9 revenue 10 b1imce~ti(il 'i;;'ur; i:' ~ti 15 11,00,000 adminiltrati~ ii revenue police 1,18,50,000 iii revenue jaib public works " 9,00,000 iliss0c0' 20 revenue -capital revenue ,1' o'ther administnltive services 11,77,000 18 revenue " retin:mi!ft t bedefi ti 19 revenue education 110 medicat, revenue iir revmue public health r,,illln~ r~ue capital 116'widt seewity 5: welfa1'e revrnue 10,02,000 capital !27,oo,ooo 119 11,000 2,000 ~~jl~dareaa revenue , milcet1odeouj fconomic services revenue i agriculture - revenue capital 14'~'ooo 35 ~ ,ooo food & nutrition ·r' revenue , capital , 08,000 3,38,33000 ~4 • orooo 3,38,33,000 revenue '~6,000 rarenll~ capital i i' •• , "(6' t • '"ill -| 3 7 ||-------------|| ! || revemll" || capital || l,uo,eeq || ;,00,000 || 1,38,89,000 || 3 || 0 || ,00j000 || ,83,000 || 10,00,000 |revenue capillli capital 4,83,000 10,00,000 | capital | 11,00,000 ||------------|--------------|| 11,00,000 | || i | || i | || public | debt || revenue | || capital | || 3j,41,000 | || jo,ooo | || i | || 1 | | statement of objects and reasonsthis b1ll is introduced in pursuance of sub-section (1) of section 29 of the government of union territories act, 1963, read with section 30 thereof and the order of the president made on the 11th november, 1978 under section 51 of that act, to provide for the appropriation out of the consolidated fund of the union territory of mizoram of the moneys required to meet the supplementary expenditure charged on the consolidated fund of the union territory of mizoram and the grants made by the lot sabha for the expenditure of the union territory of mizoram for the financial year 19'78-79 satish agarwal president's recommendation und~r the government of union territories act, 1963[copy of letter no f 3 (131) -b (s) /78, dated the 9th march, 1979 from shri satish agarwal, minister of state in the ministry of finance to the secretary, lok sabha] the president, having been informed of the subject matter of the proposed bill to authorise payment and appropriation of certain further sums from and out of the consolidated fund of the union territory of mlzoram for the services of the financial year ending on the 31st day of march, 1979, recommends under sub-sections (1) and (3) ofi section 23 of the government of union territories act, 1963, read with sub-section (2) of section 30 thereof and the order made by him on the 11th november, 1978 under section 51 of the said act, the introduc£lon of the mizoram appropriation bill, 19'79 in and the consideration of the bill by lok sabha 2 the bill will be introduced in lok sabha immediately ailter the supplementary demands for grants for expenditure of the union territory of mizoram for the year 1978-79 have been voted , , a billto authroise payment and appropriation of certain further sums from and out of the consolidated fund of the union ferritory of mizoram for ~e services of the financial year 1978-79 (shri satish agarwal, minister of state in the ministry of finance) | Parliament_bills | a44833a8-37d0-592e-9b39-002c374b2459 |
the motor vehicles (second amendment) bill, 1960(as introduced in lok sabha onr september, 1960) the 'motor vehicles (second amendment) bill,196o (as introduced in lok sabha)a bill further to amend the motor vehicles act, 1939 be it enacted by parliament in the eleventh year of the republic of india as follows:-1 (1) this act may be called the motor vehicle (second amend-sbornkse ment) act, 1960 :!c:o:dt of 19)9 5 (2) it shall come into force on such date as the central government may, by notification in the', official, gazette, appoint 2 in section 2 of the motor vehicles act, 1939 (hereinafter' alftedttmedt ofjec!ien 2 referred to as the principal act),-of act 4 of (i) in clause (9), for the figures and words "18,000 pounds 1939· 10 avoirdupois", the figures and word "8,200 kilograms" shall be substituted; (ii) in clause (10), for the words "five hundredweights", the figures and word "300 kilograms" shall be substituted; (iii) in clause (13), for the figures and words "6,000 pounds 15 avoirdupois", the figures and word "3,000 kilograms" shall be substituted; (iv) in clause (17), for the figures i:md words "900 pounds avoirdupois", the figures and word "500 kilograms" shall be substituted; 20 3 in section 42 of the principal act, in sub-section (3), clause (i), amc:ndiiwnt for the figures and words "1,700 pounds avoirdupois", the figures and ofsectiod42' word "soo kilograms" shall be substituted 4 in section 73 of the principal act, in sub-section (1) ,-amendment of section 73-(i) for the words "one mile", the figure and word "2 kilometres" shall be substituted; (ii) for the words "five miles", the figures end word "10 kilometres" shall be substituted 5 in the first schedule to the principal act,-amendment of the pint schedule (i) in part iii of form a, in item (b), for the figures and word "25 yards", the figures and word "25 metres" shall be sub$tituted; (ii) in form e, in items 15 and 16, for the abbreviation "lbs", 10 wherever it occurs, the abbreviation "kgms" shall be substituted; (iii) in form g, in items 14, 16 and 18, for the abbreviation "lbs", wherever it occurs, the abbreviation "kgms" shell be substituted amendment 6 in the second schedule to the principal act, in item 4, for the is of the words "twenty-five yards", the words "twenty-five metres" shall be ~=e substituted 7 in the third schedule to the principal act, in part ii, for the amendment of the third words "twenty-five yru'ds", the words "twenty-five metres" shall be schedule substituted 20 8 in the eighth schedule to the principal act,-amendment ofthe eighth schedule (i) in column 2 under the heading "maximum speed per hour",-(a) for the word "miles", the word "kilometres" shall be substituted; 2s (b) for the figures "35, 30, 25, 20 and 15", wherever they occur, the figures "60, 50, 40, 35 and 25" shall respectively be substituted; (~i) in item 2, for the figures and words "1,700 pounds avoll'-dupois" , wherever they occur, the figures and word "800 kilo- 30 grams" shall be substituted 9 in the ninth schedule to the principal act,-amendment of the ninth schedule (1) in part a,-(a) in mandatory sign no1, for the figure and ebbreviation "2 ft", the figures and abbreviation "60 em" and 3s fot" the figure and word "9 inch", the figures and abbreviation "25 cm" shall be substituted; (b) in mandatory sign no 2,-5 (i) for the figure and abbreviation "2 ft", the figures and abbreviation "60 cm" shall be substituted; (ii) for the figure and word "8 inch", the figures and abbreviation "20 cm" shall be substituted; 10 (iii) for the figures and word "20 inch", the figures and abbreviation "50 cm" shall be substituted; (iv) for the word "tons", the words "metric tons" shall be substituted; (c) in mandatory sign no5, for the figure and abbre-is viation "2 ft", the figures and abbreviation "60 cm" shall be substituted; (d) in mandatory sign no 8,-(i) for the figure and abbreviation "2 ft", the figures and abbreviation "60 cm" shall be substi-20 tuted; (ii) for the figures and word "21 inch", the figures and abbreviation "55 cm" shall be substituted; (iii) for the figures and word "15 inch", the figures and abbreviation "40 cm" shall be substituted; (z) in part b, under the heading "general design",-(a) for the figures "18"", wherever they occur, the figures and abbreviation "45 em" shall be substituted; 30 (b) for the figure and word "3 inch", the figure and abbreviation "8 cm" shall be substituted; (c) for the figures "15"", the figures and abbreviation "40 em" shall be substituted; (d) for the figure and word "9 inch", the figures and 35 abbreviation "25 cm" shall be substituted; (') in part c-(a) in informatory sign no 1-(i) for the figures "6 5 4, 3 2 and 1" the figures and abbreviation "200 em • 160 cm • 130 cm 100 em • 60 cul and 30 cm" shall respectively be substituted; 5 (ii) for the figure and abbreviation "3 ft" wherever they occur the figures and abbreviation "100 cm" shall be substituted; (iii) for the figure and abbreviation "1 ft the figures and abbreviation "30 em," shall be substituted; 10 (b) in informatory sign no3 for the word and abbreviation "two ft", the figures and abbreviation "60 cm" shall be substituted; (e) in informatory sign no4, for the words and abbreviation "two ft square", the figures, abbreviation 15 andword "60 em square" shall be substituted amendment 10 in the tenth schedule to the principal act in item 8 for the of the tenth words "fifteen miles" the figures and abbreviation "25km" shall be sc:hcdule ' substituted, statement of objects and reasonsas a further step towards the introduction of the metric system in the country, it is proposed to introduce metric units in motor transport also as major industries in the country have adopted or are going to adopt metric weights and measures, it will cause difficulty to industry and trade as well as to other forms of transport, if motor transport continues to use the present system the state governments will also find it difficult to enforce two systems of weights and measures, one for the purpose of trade and another for motor transport it is not, however, possible to adopt the exact equivalents of the existing units in the metric system, since such conversion would result in odd f1'6ctional rates in a number of cases, and the operation of such rates would be inconvenient to motor transport as also to the administration it is, therefore, proposed to round off the rates suitably resulting in minor variations thereof and amend the motor vehicles act, 1939, for the purpose new delhi; raj bahadur the 26th august, 1960 ddlditiens (no 4 of 1939) - - - - z - - - - (9) "heavy motor vehicle" means a tnmsport vehicle or omnibus the registered laden weight of which, or a motor car or tractor the unladen weight of which, exceeds 18,000 pounds avoirdupois; - - - - (10) "invalid carriage" means a motor vehicle the unladen weight of which does not exceed five hundredweights, specially designed and constructed, and not merely adapted, for the use of a person suffering from some physical defect or disability, and used solely by or for such a person; - - - - (13) "light motor vehicle" means a transport vehicle cr omnibus the registered laden weight of which, or a motor car or tractor the unladen weight of which, does not exceed 6,000 pounds avoirdupois; - - - - neceasity for permits (17) "motor cycle" means a motor vehicle, other then an invalid carriage, with less than four wheels the unladen weight of which, inclusive of any side-car attached to the vehicle, dom not exceed 900 pounds avoirdupois; - - - - (z - - - - (3) sub-section (1) shall not appl-y-- - - - (i) except as may otherwise be prescribed, to any goods vehicle which is a light motor vehicle end does not ply for hire or reward, or to any two wheeled trailer with a registered laden weight not exceeding 1,700 pounds avoirdupois drawn by a motor car , , , , 73 (1) any person authorised in this behalf by the state gov- power to emment may, if he has reason to believe that a goods vehicle or !:~~icle trailer is being used in contravention of section 72, require the driver to convey the vehicle to a weighing device, if any, within a distance of one mile from any point on the forward route or within a distance of five miles from the destination of the vehicle for weighment; and if on such weighment the vehicle is found to contravene in any respect the provisions of section 72 regarding weight, he may, by order in writing, direct the driver to convey the vehicle or trailer to the nearest place, to be specified in the notice, where facilities exist for the storage of goods, and not to remove the vehicle or trailer from that place until the laden weight has been reduced or the vehicle has otherwise been treated so that it complies with section 72 , , , , the first schedule forms form a[see section 7 (2)] form of application for licence to drivt a motor vehicle - - - - - , iti declaration as to physical fitness of applicant and knowledge of driving regulations and traffic signs the applicant is required to answer "yes" or "no" in the space provided opposite each question - - - - - (b) are you able to distinguish with each eye at a distance of 25 yards in good daylight (with glasses, if worn) a motor car number plate containing seven letters and figures? - , - - - [see section 24 (1)] form of application few the registration of a motewvehiclt - - - - - 15 maximum laden weight lbs 16 maximum axle weight (to be furnished in the ease of heavy motor vehicles only)-i (a) front axle ibs (b) rear axle ibs (c) any other axle lbs - - - - - form g [see section 24 (2)] form of certificate of registration - - - - - 14 registered axle weight (in the case of heavy motor vehiclqs only)-(a) front axle ibs (b) rear axle lbs (c) any other axle lbs additional particulars of alternative or additional trailer or trailers registered with an articulated vehicle-- - - - 16 unl9den weight lbs - - - - - - - - 18 registered axle weight in respect of each axle (in the case of heavy motor vehicles only) lbs - - - - the second schedule [see section 7 (5)] i diseases and disabilities absolutely·· disquali-fying a person for obtaining a licence to drive a motor vehicle - - - - - 4 inability to distinguish with each eye at a distance of twenty-five yards in good day light (with the aid of glasses, if - worn) a series of seven letters and figures in white on a bhck ground of the same size and arrangement as those of the registration mark of 8 motor car - - - - the third schedule [see sections 7(6) (8) and 17(6)] test of competence to drive - •- part iithe candidate shall satisfy the person conducting the test that he is cognizant of the provisions of sections 81, 82, 83, 84 and 85 and of the tenth schedule; that he knows the meaning of the tramc signs specified in the ninth schedule; and, if he has not been medically examined, that he is not so deaf as to be wlable to hear the ordinary sound signals, and is able to distinguish with each eye at a distance of twenty-five yards in good day light (with the aid of glasses, if worn) a registration mark containing seven letters and figures - - ii< - ii< - the eighth schedule [see section 71] limits of speed for motor vehiclesclass of vehicle maximum speed per hour miles ()) if all the wheels of the vehicle are with pneumatic tyres and the vehicle is not drawing a trailer:-(a) if the vehicle is a light motor vehicle or a motor cycle no limit (b) if the vehicle is a medium motor vehicle 35 (e) if the vehicle is a h€ilvy motor vehicle and a public service vehicle 30 (d) if the vehicle is a heavy motor v~hicle but not a public service vehicle 25 (2) if the vehicle is drawing not more than one trailer (or in the case of artillery equipment, not more than two trailers) and all the wheels of the drawing vehicle and the trai~er ~re fitted, with pneumatic tyres:- (a) if the vehicle is a light motor vehicle anci the trailer being two-wheeled has a laden weight not exceeding 1,700 pounds avoirdupois 35 (b) if the vehicle is a light motor vehicle and the trailer has more than two wheels or a laden weight exceeding 1,700 pounds avoirdupois 30 (c) if the vehicle is a medium motor vehicle 25 (d) if the vehicle is a heavy motor vehicle 20 (3) any case not covered by entry (1) or entry (2) 15 the ninth schedule[see sections 75, 77 and 78] traffic signs the tenth schedule[see sections 77 and 78] - driving regulations - - - - 8 the driver of a motor vehicle shall, when passing or meeting a procession or a body of troops or police on the march or when passing workmen engaged on road repair, drive at a speed not greater than fifteen miles an hour a billfurther to amend the motor vehicles act, 1939 (shri raj bahadur, minister of state in the 1\{inistry of transport and communications) | Parliament_bills | c809929b-17e7-5920-92ed-a7a46cadf33c |
the tra v ancore-cochin appropria- tion (vote on account) bill, i9s6(as introduced in lolt saliba) , , the travancore-cochin appropriation (vote on account) bill, 1956 '(as in'l'roducbd in lok sabka) a billto provide for the withdrawal of certain sums from and out of the consolidated fund of the state of travancore-cochin for the service of a part of the financial year 1956-57 be it enacted by parliament in the seventh year of the republic of india as follows:-1 this act may be called the travancore-cochin appropriation short title (vote on account) act, 1956: 5 2 from and out of the consolidated fund of the state of withdrawal travancore-cochin there may be withdrawn sums not exceeding io~ :;000 those specified in column 3 of the schedule amounting in the ag- from ~ci out gregate to the sum of ten crores and eighty-nine thousand rupees :j::t!tntowards defraying the several cha\-ges which will come in course of fund of the 10 payment during the financial year 1956-57 ~:~an~frc-cochin for the financial 3 the sums authorised to 'be withdrawn from and out of the ~ar 19s~-s7 consolidated fund of the state by this act shall be appropriated ti~~~pnafor the services and purposes expressed in the schedule in relation to the said year 3 i -1 i i escccdin, no of: servic:ea and purposes sum not vote i voted i~ - by , the 5 parlwnent iidated total fund , i i i i i alricu1tural income-tax and: i 10 isaleatax 2,35,000 : 2,35,000 ii land revenue 10,87,000 : 23,000 ii, 10,000 iii excise 4,36,000 ' 4,36,000 iv stamps 70,000 i 70,000 vi forest 23,52,000 23,52,000 vi i rqistration 3,68,000 3,68,000 is vii motor vehicles acta 1,76,000 1,76,000 viii irription 4,60,000 4,60,000 dibi charges 24,10,000 24,10,000 ix heads of states, ministers, secre-20 tariat and attached of6cea 8,25,000 l>4z,ooo 9,67,000 x state legislature 67,000 6,000 73,000 xi e1ections 1,20,000 1,20,000 xii district administration and ,miscellaneoui 7044>000 7,44000 xiii administration of justice 1232,000 1,,1,000 13,73000 25 xiv jails 2,34,000 2,3",000 xv police 28,16,000 28,16,000 xvi scientific: departments 92,000 92000 xvii education 1,77,32,000 2$,000 1117,57,000 xviii medic:al 43,53000 4353000 30 xix public health - 13,19,000 1319000 i 1",28,000 xx agriculture - 1428000 xxi rural development 1",63,000 1463000 xxii veterinary 3,08,000 3,08000 xxiii co-opcratiqjl 2,85,000 2,85,000 3s xxiv industries 46,73,000 46,73,000 | no | of ||------------------------------------|--------------------|| vote | || services and | || purposes | || sums | || dot | || exceeding | || s | || ~~ed | || ! | || t~':i | || i | || parliament | || 1 | || ;c:;t | || i | || total | || ___ | : || i | || 1 | ___ || labour | || and | || miscellaneous | || 10,06,000 | || - i | || 10,06,000 | || i | || i | || xxv | || xxvi | civil || works | || 69,1)0,000 | || i | || - | || i | || i | || 10 | || xxvii | || electricity | || 2180,000 | || pensions | || xxviii | || | || : | || stationery and-printing | || xxix | || 20,~,000 | || i | || i | || 2j,7s,000 | || i | || i | || i | || 7,37,000 | || i | || miscellaneous | || xxx | || i | || 6,88,000 | || i | || i | || 29,s3,000 | \_ || xxxi | || i | || community development projects | || 15 | || xxxii | || transport schemes | || 42,59 | || 000 | || i | || , | || xxxiii | || capital | outlay || (commercial) | || on | || i | || irrigation ' | || xxxiv | || capital outlay on irrigation (non- | || commercial) | || 20 | || i | || xxxv | || capital outlay on agricultural, | || improvement | || i | || 21,000 | || xxxvi | || capital | outlay || on | || industrial | || i | || development | || ! | || xxxvii | || i | || capital outlay on | || civil | || works | || 73,30,000 | || 73,30,000 | || 2s | || xxxviii | || ca8~~~tlay | || on | electricity/! || 8324,000 | || xxxix | capital account || o~er | ~or~' || outside the revenue account | || i | || j3,19,000 | || xl | || capital | outlay || schemes | || xli | || capital outlay on state schemes | || of | government trading || loans and advances | || xlii | || public | || debt-r,paymmt | || :1590,000 | || total | || i | || 66,17,000 | \ || 1 | || 9• | 34 || ,7 | || 2 | || ,000 | || i | | statement of objects and reasonsthis bill is introduced in pursuance of articles 204(1) and 206, read nith article 238 of the constitution, and ~roclamation issued by the president on the 23rd march, 1956 in exercise of the powers conferred on him by article 356 thereof, to- provide for the appropriation out of the consolidated fund of the state of travancore-cochin of the moneys required to meet the expenditure charged on the consolidated fund and the grants made in advance by the lok sabha in respect of the estimated expenditure of the government of travancore-:cochin for a part of the financial year 1956-57 c d deshmukh new dblhi; the 26th march, 1956 - billto provide for the withdrawal of certain sums from and out of the consolidated fund of the state of travancore-cochin for the service of a part of the financial year 1956-57 the president has, in pursuance of clauses (i) and (3) of article 207, read with article 238 of the constitution of india recommended to lok sabha the introduction and consideration of the bill m n kaul, s ecretaf"j/ (shri c d deshmukh, minister of finance) | Parliament_bills | 36e1d8a7-0678-5d22-a944-aeba7b99dae4 |
33, 34, koya bhine koya, rajkoya nagesia, nagasia 35 naikda, nayaka, cholivala nayaka, kapadia, nayaka, mota nayaka, nana nayaka 36 oraon, dhangad, 37 pardhan, pathari, saroti 38, pardhi, advichincher, phans pardhi, phanse pardhi, langoli pardhi, bahelia, bahcllia, chita pardhi, shikari, takankar, takia 39 paya patelia 40 pomla 41 42, rathawa 43 sawar, sawara thakur, thakar, ka thakur, ka thakar, ma thakur, ma thakar 44, thoti (in aurangabad, bhir, nanded, osmanabad and parbhani districts and rajura 45 tahsil of chandrapur district) 46 varli vitolia, kotwalia, barodia 47 part x—-manipuraimol anal angami chiru chothe gangte awrpvnre | Parliament_bills | d14d83af-419c-5b0c-9356-691770f5fc22 |
" , bid mo 57 ~ it" the constitution (twenty-first ammid- ment) bill, 1966 a'" bill i> further to amend the conmtution of i1idta ',~:<: be it enacted by parliament in the seventeenth year of the ~'re ;,;", public of india as follows: - l this act may be called the constitution (twenty-first amend- short l&wii&i, act 1- title i in article 324 of the constitution, in clause (1), the words amendincluding the appointment of election tribunals for the decision of ment of -"'wio8 and ctisputea arising out of or in connection with elections to article ~rlfalldellt and to the legislatures of states" shall be omitted 324 statement of objects and reasonsone of the important recommendations made by the election commission in its r~port on the third general elections in india iii 1962, and accepted by the government relates to the abolition of election tribunals and trial of election petitions by high courts if the proposal for a legislation to amend the representation of the people act; 1951, containing, inter alia, provisions for the trial of election petitions by high courts instead of by election tribunals, as at present, is accepted by parliament, it would be necessary to make a minor amendment in clause (1) of article 324 of'the constitution for the purpose of deleting therefrom the words ", including the appoinunent of election trib19lals for the decision of doubts and disputes arising out of or in connection with elections to parliament and to the legisla~es of states" " the bill is intended to give effect to the aforesaid object -new dahi; the 16th august, 1966 g s pathak !'l"~''''t'{f-/:" '"'r;':·l·~r""(1 i :1,'1 ~ " i'~~ v " ( - " - - - - part xv elections324 (1) the superintendence, direction and control of the pre-' superinparation of the electoral rolls for, and the conduct of, all elections tendence to parliament and to the legislature of every state and of elections direction to the' office!l of president and vice-president held 11dder this ,:~ :;n-constitution, including the appointment of election tribunals for the er:mons decision of doubts and disputes arising out of or in connection with to be ,_ elections to parliament and to the ~latures of states shall be ,vested in vested in a commission (referred to in this constitution as the ~ elec-election commission) : , ~~ a bill further to amend the constitution of india , (shri g s ptlihoji, minister 0/ l(lfj)) | Parliament_bills | bdff3605-fdf9-5a88-8e43-b25db601fc1b |
bill no 14 of 2011 the appropriation bill, 2011 a billto authorise payment and appropriation of certain further sums from and out of the consolidated fund of india for the services of the financial year 2010-11be it enacted by parliament in the sixty-second year of the republic of india as follows:— short title1 this act may be called the appropriation act, 2011sum of seventy-nine thousand five hundred ninety crores and forty-nine lakh rupees towards defraying the several charges which will come in the course of payment during the financial year 2010-11, in respect of the services specified in column 2 of the scheduleissue of rs 79590,49,00,000 out of the consolidated fund of india for the financial year 2010-11 appropriation the schedule| ( | see | sections 2 and 3) ||-------------------------------------------------------|--------------------------------------------------------|---------------------|| 1 | 2 | 3 || no | | || services and purposes | | || sums not exceeding | | || of | | || voted by | charged on the | total || vote | | || parliament | consolidated fund | || 1 | department of agriculture and cooperation | revenue || 2 | department of agricultural research and education | revenue || 3 | department of animal husbandry, dairying and fisheries | revenue || 4 | atomic energy | revenue || 5 | nuclear power schemes | capital || 7 | department of fertilisers | revenue || 9 | ministry of civil aviation | revenue || 11 department of commerce | revenue | 2035,58,00,000 || 12 department of industrial policy and promotion | revenue | 2,00,000 || 13 department of posts | revenue | 2097,84,00,000 || | | capital || 14 department of telecommunications | revenue | 1419,03,00,000 || 15 department of information technology | revenue | 3,00,000 || 16 department of consumer affairs | revenue | 83,70,00,000 || 17 department of food and public distribution | revenue | 3972,41,00,000 || | | capital || 18 ministry of corporate affairs | revenue | 1,00,000 || 19 ministry of culture | revenue | 32,64,00,000 || 32,64,00,000 | | || 20 ministry of defence | revenue | 609,37,00,000 || | | capital || 21 defence pensions | revenue | 9000,00,00,000 || 22 defence services—army | revenue | 1659,78,00,000 || 23 defence services—navy | revenue | 548,74,00,000 || 24 defence services—air force | revenue | || 25 defence ordnance factories | revenue | || 26 defence services—research and development | revenue | 14,85,00,000 || 27 capital outlay on defence services | capital | || 29 ministry of earth sciences | revenue | 58,69,00,000 || 30 ministry of environment and forests | revenue | 4,00,000 || | | capital || 31 ministry of external affairs | revenue | 131,68,00,000 || | | capital || 32 department of economic affairs | revenue | 3,00,000 || | | capital || 33 department of financial services | revenue | 3992,88,00,000 || | | capital || 35 transfers to state and union territory governments | revenue | 1340,00,00,000 || | | capital || 40 indian audit and accounts department | revenue | 171,15,00,000 || | | capital || 41 department of revenue | revenue | 3359,81,00,000 || | | capital || 42 direct taxes | capital | 1,00,000 || 43 indirect taxes | revenue | 285,36,00,000 || 45 ministry of food processing industries | revenue | 1,00,000 || rs | rs | rs ||--------|--------|--------|| 1 | 2 | 3 ||-----------------------------------------------------------|--------------------------------------------------|-----------------|| services and purposes | | || no | sums not exceeding | || of | | || voted by | charged on the | total || vote | | || parliament | consolidated fund | || 46 department of health and family welfare | revenue | 4,00,000 || 47 department of ayurveda, yoga and naturopathy, unani, | | || siddha and homoeopathy (ayush) | revenue | 93,07,00,000 || | | capital || 48 department of health research | revenue | 1,00,000 || 49 department of heavy industry | revenue | 1142,97,00,000 || | | capital || 50 department of public enterprises | revenue | 30,00,000 || 51 ministry of home affairs | revenue | 10,26,00,000 || | | capital || 53 police | revenue | 1982,08,00,000 || | | capital || 54 other expenditure of the ministry of home affairs | revenue | 16,50,00,000 || 55 transfers to union territory governments | revenue | 1,00,000 || 57 department of school education and literacy | revenue | 1557,93,00,000 || 58 department of higher education | revenue | 5,00,000 || 59 ministry of information and broadcasting | revenue | 1,00,000 || | | capital || 60 ministry of labour and employment | revenue | 84,68,00,000 || 61 election commission | | || revenue | 4,22,00,000 | || 62 law and justice | revenue | 1,00,000 || | c | || harged | | || — | supreme court of india | revenue || 64 ministry of micro, small and medium enterprises | revenue | 30,78,00,000 || 65 ministry of mines | revenue | 10,08,00,000 || 67 ministry of new and renewable energy | revenue | 1,00,000 || 68 ministry of overseas indian affairs | capital | 5,00,00,000 || 69 ministry of panchayati raj | revenue | 1520,00,00,000 || 70 ministry of parliamentary affairs | revenue | 1,45,00,000 || 71 ministry of personnel, public grievances and pensions | revenue | 11,05,00,000 || 72 ministry of petroleum and natural gas | revenue | 21000,00,00,000 || | | capital || 73 ministry of planning | revenue | 2,00,000 || 74 ministry of power | revenue | 7,36,00,000 || | c | || harged | | || — | staff, household and allowances of the president | revenue || 77 rajya sabha | revenue | 1,00,000 || | c | || harged | | || — | union public service commission | revenue || 79 secretariat of the vice-president | revenue | 21,00,000 || 80 ministry of road transport and highways | revenue | 683,91,00,000 || | | capital || 81 department of rural development | revenue | 5,00,000 || 83 department of drinking water and sanitation (previousl | | || department of drinking water supply) | revenue | 1,00,000 || 84 department of science and technology | revenue | 2,00,000 || rs | rs | rs || 1 | 2 | 3 ||--------------------------------------------------------|--------------------|---------------|| services and purposes | | || no | sums not exceeding | || of | | || voted by | charged on the | total || vote | | || parliament | consolidated fund | || 85 department of scientific and industrial research | revenue | 2,01,00,000 || 86 department of biotechnology | revenue | 1,00,000 || 87 ministry of shipping | revenue | 3,00,000 || | | capital || 88 ministry of social justice and empowerment | revenue | 2,00,000 || | | capital || 90 ministry of statistics and programme implementation | revenue | 4,00,000 || 92 ministry of textiles | revenue | 523,60,00,000 || | | capital || 93 ministry of tourism | revenue | 1,00,000 || 94 ministry of tribal affairs | revenue | 2,00,000 || 95 andaman and nicobar islands | revenue | 121,18,00,000 || 96 chandigarh | revenue | 330,29,00,000 || 97 dadra and nagar haveli | revenue | 32,24,00,000 || | | capital || 98 daman and diu | revenue | 87,00,00,000 || | | capital || 100 department of urban development | revenue | 2,00,000 || | | capital || 103 ministry of water resources | revenue | 1,00,000 || 104 ministry of women and child development | revenue | 1,00,000 || 105 ministry of youth affairs and sports | revenue | 3,00,000 || | t | || o t a l | | || | 79270,35,00,000 | 320,14,00,000 || rs | rs | rs | statement of objects and reasonsthis bill is introduced in pursuance of article 114(1) of the constitution of india, read with article 115 thereof, to provide for the appropriation out of the consolidated fund of india of the moneys required to meet the supplementary expenditure charged on the consolidated fund of india and the grants made by the lok sabha for expenditure of the central government, excluding railways, for the financial year 2010-11pranab mukherjee ———— president's recommendation under article 117 of the constitution of india[copy of letter no 4(28)-b(sd)/2010 dated the 3rd march, 2011 from shri pranab mukherjee, minister of finance to the secretary-general, lok sabha]the president, having been informed of the subject matter of the proposed bill to authorise payment and appropriation of certain further sums from and out of the consolidated fund of india for the services of the financial year 2010-11, recommends under article 117(1) and (3) of the constitution, the introduction of the appropriation bill, 2011 in lok sabha and also the consideration of the bill————— a billto authorise payment and appropriation of certain further sums from and out of the consolidated fund of india for the services of the financial year 2010-2011—————(shri pranab mukherjee, minister of finance)gmgipmrnd—6921ls(s3)—07-03-2011 | Parliament_bills | 6340c995-a522-57e7-bd65-cd72d250facd |
am no '7011'13 the arms (amendment) bill, 1983a bill - further to amend the a m1'/3 act, 1959 b it enacted by parliament in the thirty-fourth year of the republic of india as follows:-1 (1) this act may be called the arms (amendment) act, 1983 (2) it shall be deemed to have come into force on the 22nd day of 5 june, 1983 short title and commencement if of 1818 i in section 2 of the anns act, 1959 (hereinafter referred to as the amendprincipal act), b1 sub-section (1), after clause' (f), the fol1owing clause ment of thall be ~nserted, namely:-section~ , (ff) "magistrate" means an executive magistrate under the 2 of 1t'14 10 code of criminal procedure, 1973;' amendmentor action i, \ 3 section 3 of the principal act shall be re-numbered as sub-section (1) thereof and after sub-section (1), as so re-numbejoed, the following sub-ections shall be inserted, namely:-ci (2) notwithstanding anything contained in sub-section (1), no r 5 person, other than a person referred to in sub-section (3) shall acquire, have in his possession or carry, at any time, more than three ftreanns: provided that a penon who has in his possession more tlrearma than thr,"'e at the commencement of the anns (amendment) act, 10 1983, may retain with him any three of such flrearrnl and shall deposit, within thirty days from such commencement, the remaining firearms with the officer in charge of the nearest police station or, subject to the conditions prescribed for the purposes of sub-section (1) of section 21, with a licensed dealer or, where such person ia member of the armed forces of the union, in a unit armoll1'1 5 referred to in that sub-section (3) nothing contained in, sub-section (2) shall apply to any dealer in firearms pr to any member of a rifle club or rifle associatiod licensed or recognised by the central government usuig a pc>int d bore rtfte or an air rifle for target practice 10 (4) the provisions of sub-sections (2) to (6) (both inclusive) of section 21 shall apply in relation to any deposit of flrearms 'ullder the proviso to sub-section (2) as they apply in relation to the deposit of any arm or ammunition 1lllder sub-section (1) of that section" 15 t section 5 of the principal act shall be re-numbered as sud-aectlod (1) thereof and-(a) in sub-section (1) as so re-numbered, the 'proviso shall be omitted; (b) after sub-section (1) as so re-numbered, the following bub- 110 section shall be inserted, namely:-"(2) notwithstanding anything contained in sub-section (1), a person may, without holding a licence in this behalf, lell or transfer any arms or ammunition which he lawfully possesses for his own private use to another person who is entitled by virtue of 115 this act or any, other law for the time being in force to have, or is no~ prohibited by thls act or su~h other law from having in his possession such arms or ammunition: provided that no firearm or ammunition in respect of which a licence is required under section 3 and no arms in respect of so which a licence is required under section 4 shall be so sold or transferred by any person unless-(a) he has informed in writing the district magistrate having jurisdictirm or the officer in ch~ge of the nearest pollee station of his intention to sell oil' transfer such ftrearms, 55 ammunition or other arms and the name and address of the person to whom he intends to sell or transfer such firearms, ammunition or the other arms, and (b) a period of ,not less than forty-five days has expired after the giving of such ~nformation" 40 5 in section 9 of the principal act, in sub-section (1), in clause (4) ,-(a) in sub-elause (i), for the words "sixteen years", the words "twenty--one years" shall be substituted; '(b) in sub-clause (ii) , for the words lea term of not less thaa six months", the words "any term" shall bp substituted; and 45 (c) in sub-clause (iii), for the words rnd ftgures "code of criminal procedure, 1898", the words and figures "code of criminal 5 of 1_ procedure, 1973" shall be substituted, 2 of 1, new delhi; 2 page 7, line 36,-~ult"'-ao~ 1983 ravc:ina 5, 19u5 t5akaj corrigen~ !c1: "fir " ~ "1th i" " the arms (amendmm'll') bill, 1983 1 page 3, line 22,-nu: liof':fiences" ~ "of'fences" (tg be/as introduced in 10k sabha) t, in section 13 of the principal act, fer sub-section (2), the fouowul' jub-sections shall be substituted, namely:-"(2) on receipt of an application, the licensing authority shall call for the report of ,the officer in charge of the nearest pollce 5 station on that application, and such officer shall send his report within the prescribed time (2a) the licensing authority, after such inquiry, if any, as it may consider necessary, and after considering the report received under sub-section (2), shall, subject to the other provisions of this 10 chapter, by order in writing either grant the licence or refuse to grant the same: provided that where the officer in charge of the nearest pollce station does not send his report on the application within the pres-· cribed time, the licensing authority may, if it deems fit, make such order, after the expiry of the prescribed time, without further waiting for that report" 7 in chapter iv of the prindpal act, after section 24, the following sections shall be inserted, namely:-insertion otnew sectlons 24aand 24b 20 '24a (1) where the· central government is satisfied that there iii extensive disturbance of public peace and tranquillity or imminent danger of such disturbance in any area and that for the prevention of offiences involving the use of arms in such area, it is necessary or expedient so to do, it may by notification in the official gazette-(a) specify the limits of such area; prohibi_ tion topoae-sionot noti1led &mliin disturbed areas, etc, 115 (b) direct that before the commencement of the period specified in the notification (which period shall be a period commencing from a date not earlier than the fourth day after the date of publication of the notification in the official gazette), every person' having in his possession in such area any arms of such description as may be specified in the notification (the arms 35 so specified being hereafter in this section referred to as notified arms), shall deposit the same before such commencement fd accordance with the provisions of section 21 and for this purpose the possession by such person of any notified arms shall, notwithstanding anything contained in any other provision of thil act (except section 41) or in any other law for the time being in force, as from the date of publication of such notification in the official gazette be deemed to have ceased to be law:ful; (c) declare that as from the commencement of, and until the expiry of, the period specified in the notification, it shall not be lawful for any person to have in his possession in such area any notified arms; (d) authorise any such officer subordinate to the central government or a state government as may be specified in the notification,- 5 (i) to search at any time during the period specifled in the notification any person in, or passing through, or any premises in, or any animal or vessel 01' vehicle or other conveyance of whatever nature in or passing through, or any receptacle or other container of whatever nature in such area if such officer has reason to believe that any notifled arms are secreted by s~ch person or in such px:emlse or 5 on such animal or in such vessel, vehicle or other eonveyance or in such receptacle or other container; (ii) to seize at any time during the period specified in the notification any notified cj'lds in the possession of any person in such area or discovered through a search unckr 10' s-ub-clause (i), and detain the same during the period speci-fied in the notification (2) the period specified in a notification issued under sub-seetion (1) in respect of any area shall not, in the first instance, exceed ninety days, but the central government may amend such notiflca- 15 tion to extend such period from time to time by any period not exceeding ninety days at anyone time if, in the opinion of that government, there continues to be in such area such disturbance of public peace and tranquillity as is referred to in sub-section (1) or imminent danger thereof and that for the prevention of offence go involving the use of arms in such area it is necessary or expedient so 'to do (3) the provisions of the code of criminal procedure, lins, 2 gf 187 • relating to searches and seizures shall, so far as may be, apply to any search or seizure made under sub-section (1), ~5 (4) for the purposes of this section,-(/~) "arms" includes ammunition; (b) where the period specified in a notification, as originally issued under sub-section (1) is extended under sub-section (2), then, in relation to such notification, references in 8ub-aection go (1)to "the period specified in the notification" shall be construed as references to the period as so extended 24b (1) where the central government is satisfied that there is extensive disturbance of public peace and tranquillity or :imminent danger of such disturbance in any area and that for the prevention gs of offences involving the use of arms in such area it is necessary or expedient so to do, it may, by notification in the official gazette-(a) specify the limits of such area; prohibition a to carryinl of dotlfied anna in or throulh public place in disturbed area •• etc (b) direct that during the period specified in the notlftcaticm (which period shall be a period commencing from a date not 40 earlier than the second day after the date of publication of the notification in the official gazette) no person shall carry ol' otherwise have in his possession any arms of such description ii may be specified in the notification (the armi so specified being ,hereafter in this section referred to as notifted arms) throup 4-5 or in any public place in such area; (c) authorise any such officer subordinate to the central government or a state government u may be specified in the notification,-(i) to search at any time during the period specified in the notillcation any person in or passing through, or any premises in or forming part of, or any animal or vessel or vehicle or other conveyance of whatever nature, in or passing through, or any receptacle or other container of whatever nature in, any public place in such area if such officer has 10 reason to believe that any notified arms are secreted by such person or in such premises or on such animal or in" such vessel, vehicle or 9ther conveyance or in s'uch receptacle or_ other cqntainer; (ii) to seize at any time during the pedod specified in 15 the notification any notified arms being carried by or otherwise in the possession of any person, through or in a public place in such area or discovered through a search under sub-clause (i), and detain the same during the period specified in the notification go (2) the period specified in a notification issued under bull-section (1) in respect of any area shall not, in the first instance, exceed ninety days, but the central government may amend such notification to extend such period from time to time by any period not exceeding ninety days at anyone time if, in the opinion of that gov-: ernment, there continues to be in such area such disturbance of public peace and tranquillity as is referred to in sub-section (1) or imminent cldngej" thereof and that for the prevention of offences "involving the use of arms in such area it is necessary or expedient so to do 30 (3) the provisions of the code of criminal procedure, 1973, re-2 of 1974 lating to searches and seizures shall, so far as may be, apply to any search or seizure made under sub-section (1), (4) for the purposes of this section,-(a) ,carms" includes ammunition; 35 (b) "public place" means any place intended for use by, or accessible to, the public or any section of t~e public; and (c) where the per-iod specified in a notification, as originally issued under sub-section (1), is extended under sub-section (2), then, in relation to such notification, references iii sub-section (1) to "the period specified in the notification" shall be construed as references to the period as so extended" 8 in section 25 of the principal act,-amendmertt o·r sec' tion 25 (4) for sub-section (1), the following sub-sections shall be substituted, namely:-,c (1) whoever, 45 (a) manufactures, sells, transfens, converta, repairs, tests or proves, or exposes or offers for sale or transfer, or has in his possession for sale, tr~nsfer, conversion, repair test or proof, any arms or ammunition in contravention of section 5; or (b) shortens the barrel of a firearm or converts an imitation firearm into a fireann in contravention of section 5 6; or (c) acquires, has in his possession or carries, or manufactures, sells, transfers, converts, repairs, tests or proves, or exposes or offers 'for sale or transfer, or has in his possession for sale, transfer, conversion, repair, test or 10 proof, any prohibited arms or prohibited ammunition hi contravention of section 7; or (d) brings into, or takes out of, india, any arms or ammunition of any class or description in contravention of section 11, 15 shall be punishable with imprisonment for a term which shall not be less than three years but which may extend to seven years and shall also be liable to fine (la) whoever has in contravention of a notification issued under section 24a in his possession or in contravention of a!lo notification issued und(i!r section 24b carries or otherwise has in his possession, any arms or ammunition shall be punishable with imprisonment for a term which shall not be less than one year, but which may extend to five years and shall also be liable to fine ! !l5 (ib) whoever-(a) acquires, has in his possession or carries any firearm or ammunition in contravention of section 3; or (b) acquires, has in his possession or carries in any place specified by notification under" section 4 any arms of 30 such class or description as has been specified in that nowicatiou in contravention of that section; or (c) sells or transfers any fireann which does not bear the name of the maker, manufacturer's number or other identification mark stamped or otherwise shown the"reon u 35 required by sub-section (2) of section 8 or does any aet id contravention of ,sub-section (1) of that section; or (d) being a person to whom sub-clause (ti) or subclause (iii) of clause (a) of sub-section (1) of section 9 applies, acquires, has in his possession or carries any :firearm 40 or ammunition in contravention of that section; or (e) sells or transfers, or converts, repairs, tests or proves any firearm or ammunition in contravention of clause (b) of sub-section (1) of section 9; or 45 (f) brings into, or takes out of, india, any arms or ammunition in contravention of section 10; or (g) transports any arms or ammunition in contravention of section 12; or (h) fails ~o deposit arms or ammunition as required by 50 sub-sectldn \ ) of section 3, or sub-section (1) of section 21; or 5 10 (i) being a manufacturer of, or dealer in, ann or ammunition, fails, on being required to do so by rules made under section 44, to maintain a record or account or to make therein all such entries as are required by such rules or intentionally makes a false entry therein or prevents or obstructs the inspection of such record or account or the making of copies of entries therefrom or prevents or obstr'teb the entry into any premises or other place where anns or ammunition are or is manufactured or kept or intentionally fails to exhibit or conceals such arms or ammunition or refuses to point out where the same are or is manufactured or kept, shall be punishable with imprisonment for a tenn which shall - not be less than six months but which may extend to three yean and shall also be liable to fine: 15 provided that the court may for any adequate and speeial reasons to be recorded in the judgment impose a sentence of imprisonment for a term of less than six months"; (b) for sub-section (3), the following sub-section tall be subttituted, namely:-' llo ii (3) whoever sells 'or transfers any ftre~, ammunition or other arms- go (i) without infol1n:ing the dis1;rict magistrate having jurisdiction or the officer in charge of the nearest pollee station, of the intended sale or transfer of that firearm, ammunition or other arms; or (ii) before the expiration of the period of forty-five days from the date of giving such information to such district magistrate or the officer in charge of the pollce station, in contravention of the provisions of clause (a) or clause (b) of the proviso to sub-section (2) of section 5, shall be punishable with imprisonment for a term which may extend to six monthl, or with fine of an amount which may extend to five hundred rupees, or with both" 35 9 fir section 26 of the pri!1cipa1 act, the following section shall be substituted, namely:-subatltutlon of ne" aection 1orlec:-tion 28 secret contra ventions ,,2ft (1) v'¥hoever doe any act in contravention r)f any of the provisions of section 3, 4, 10 or 12 in such manner as to indicate an intention that such act may not be known to any public servant or to any person employed or working upon a railway, aircraft, vessel, vehicle or any other means of conveyance, shall be punishable with imprisonment for a term which shall not be less than sfx months but which may extend to seven years and also with flne 45 (2) whoever does any act in contravention of any of the provisions of section 5, 6, 7 or 11 in such manner as to indicate an intention that such act may not be known to any public servant or to any person employed or working upon a railway, aircraft, vessel, vehiele or any other means of comreyance, s~all bp punishlll)l~ with imprlson-ment for a term which shall not be less than five years but which may extend to ten years and also with fine (3) whoever on any search being made under section 22 cone,ali or attempts to conceal any arms or ammunition, shall be punishable with ;mprisonment for a term which may extend to ten yell'll and 5 also with fine" 10 in sections 27 and 28 of the principal act, for the words ii , or with fine, or with both", the words oland with fine" shall be substituted amend· mentof sections 27 aml28 11 in section 29 of the principal act, for the words iisix months, or with fine of an amount whkh may extend to five hundred rupees, or 10 :1 with both", the words "three years, or with fine, or with both" shall be substituted 12 in section 30 of the principal act, for the words "three months", the words i'six months" and for the words "five htmc!red,j, the worda "two thousand" shall be substituted 15 amendmentof section 29 rio amendmentot section 30 13 in section 34 of the principal act,-amendmentof &ection 3t (a) for the words and figures "sea customs act, 1878", words and figures i!customs act, 1962" shall be substituted; the 8 of 1878 82all862 (b) for the word and figures "section 16", the word figures "section 58" shall be substituted and 20 ii otl818 2 of 18'14 14 in sections 37 and 38 of the principal act, for the warda and figures "code of criminal procedure, 1898", the words and figure' "code' of crbninal procedure, 1973" shall be substituted amendmentof sections 37 and 38 amendmenlof section 41 15 in section 41 of the principal act, in clause (a), for the word "exempt any person or class of persons", the words and brackets lois uf'xempt any person or class of persons (either generally or in relation to such description of arms and amnmnition as may be spectfted in the notification)" shall be substituted 16 in section 44 of the principal act,-amendme'11t of section 44 (a) in sub-section (2) in clause (4), after the wor(fs fllicen- 30 sing 8'ilthorities", the word!=: "including the areas and the categories of anns and ammunition for which they may r,rant licences" han be inserted; (b) in sub-section (3), for the words "two buccessive lessiodl, and if before the expiry of the session in which it 1s so laid or the 35 session immediately following", the words "two or more successive sessions, and if before the expiry of the session immediately following the sec;sion or the s'uccessive sessions aforesaid" shall be substituted 17(1) the arms (amendment) ordinance, 1983, is hereby rephled 40 4 of 133(2) notwithstandin/! such repeal anything done or any action taken under the principal act as amend~d by the said ordinance, shall be deemed to have be""n done or taken undel" the prlncipal act is amended by this act the anna act, 1959 (54 of 1959) was enacted about twenty-four years ago of late, there has been an increasing incidence of crime involving use of firearms apart from un licenced firearms, the involvement of licenced firearms in crime has also been on the increase the arms (amendment) bill, 1981 (bill no xxi of 1981) was, therefore, introduced in parliament in 1981 to provide for greater vigilance on the issue of licences for firearms and sale and transfer of those arms with the objective of ensuring that firearms do not come into possession of anti-social elements the bill also provided for enhancement of punishment for offences as also for minim'um punishment for more serious offences under the act, with the objective of acting as a strong 'deten-ent 2 the aforesaid bill which was introduced in rajya sabha on the 24th august, 1981 was passed by that ho'use on 8th september, 1981 arid it is now pending in lok sabha after the passing of the dill by rajya sabha, a number of valuable suggestions for further amendments of the arms act, 1959 so as to make the provisions of ~he act more stringent and effective were received from mttmbers of parliament as also from other quarters the intention originally was to move the- necessary amendments to the bill after completing the examination of the various· suggestions in depth however, the trend of recent events in certain parts of the country was such that there was an imminent danger of extensive disturbance of public peace and tranq'uillity in ~ertain areas and it, therefore, became urgently necessary to make the provisions· of the arms act more· stringent and effective so as to prevent the misuse of arms and the commission of offences involving the use of arms the president, therefore, promulgated the arms (amendment) ordinance, 1983 (4 of 1983) on the 22nd day of june, 1983 3 subject to changes aimed at making the punishments for certain offences more stringent and to certain changes of a verbal or consequential nature, the ordinance provided for all the amendments contained in the arms (amendment) bill as passed by rajya sabha further, the ordinance provided for the insertion of new sections 24a and 24b in the act (vide clause 7 of the bill) new section 24a w;als with prohibition as to possession of notified arms in disturbed areas while new section 24b deals with prohibition as to carrying of or otherwise having in possession notified arms through or in public places in disturbed areas the ordinance also amended section 41 relating to the power to exempt and sub-seetion (2) of section 44 relating to the power to make rules to bring out the intention underlying those provisions more clearly 4 the bill seeks to replace the aforesaid ordinance new delhi; p c sethi, the 20th july, 1983 sub-section (2) of section 13 of the arms act, 1959 provides for the procedure to be followed by the licensing authority in deciding an application for the grant of a licence clause 6 of the bill seeks to substitute that sub-section by two new sub-sections (2) and (2a) under new sub-section (2), the licensing authority has to obtain a police report on an application for a licence the time within which su~h police reports have to be submitted is left to be prescribed by rules 2 clause rl of the bill seeks to insert two new sections 24a and 24b new section 24a seeks to empower the central government to prohibit, by notification in the official gazette, possession of arms and ammunition of th~ description mentioned in the notification in any area specifled in the notification, while new section 24b seeks to empower the central government to prohibit, by notification in the official gazette, carrying or otherwise having in possession arms and ammunition of the description mentioned in the notification through or in any jyllblic place in any area specified in the notification it has' been made clear in both the" sections that the central government can specify any area in a notification thereunder only if it is satisfied that there is extensive disturbance of public peace and tranquillity or imminent danger of such disturbance in :;uch area and that for the prevention of offences involving the use of arms in such area or, as the case may be, in public places in such area, it is necessary to take action under those sections in respect of such area or public places in such area under both the sections, the central government is empowered to authorise any officers subordinate to that government or a state government to search and seize arms in the circ'umstances mentioned in those' sections it has been made clear in both the sections that the provisions of the code of criminal procedure as to searches and seizures will apply to searches and seizures under those sections 3 the powers proposed to be delegated under the aforementioned provisions pertain to matters of detail or to contingency involving varying circumstances which cannot be visualised and provided for in the legislation itself the delegation of legislative power is, therefore, of a normal character, extracts from the arms act, 1959 (54 of 1959)'" - '" - 2 (1) in this act, unless the context otherwise requires,-definitions and interpretation '" - '" - - chapter ii acquisition, possession, manufacture, sale, import, export and transport of arms and ammunition3 no pe~on shall acquire, have in his possession, or carry any firearm or ammlmition unless he holds in this behalf a licence issued in accordance with the provisions of this act and "the rules made thereunder: licence for acquisition and possession of firearms and ammuni~ tion provided that a person may, without himself holding a licence, carry any firearm or ammunition in the presence, or under the written a'uthority, of the holder ,of the licence for repair or for renewal of the licence or for use by such holder '" '" '" '" ' 5, no person shall-(a) manufacture, sell, transfer, convert, repair, test or prove, or (b) expose or offer for sale or transfer or have in his possession for sale, transfer, conversion, repair, test or proof licence for manufacture, sale, etc, of arms and ammuni~ tion any firearm or any other arms of such class or description as may be prescribed or any ammunition, unless he holds in this behalf a licence issued in accordance with the provisions of this act ,and the rules made thereunder: provided that a person may, without holding a licence in this behalf, sell or transfer any arms or ammunition which he lawfully possesses for his own private use to another person who is entitled by virtue of this act or any other law for the time being in force to have, or is not prohibited by this act or such other law from having, in his possession, such arms or ammunition; but the person who has sold or transferred any firearm, or ammunition in respect of which a licence is required under section 3 or any arms in respect of which a licence is required under section 4, shall, immediately after the sale or transfer, inform in writing the district' magistrate having jurisd~cti9n or the officer in charge of the nearest police station, of such sale or transfer and the name and address, of the other person to whom the firearm, ammunition or other arms has or have been sold or transferred, - '" - '" 11-9 (1) notwithstanding anything in the foregoing provisions of this act,-(a) no person,-(i) who has not completed the ag~ of sixteen years, or (ti) who has been sentenced on conviction of any offence involving violence or moral turpitude to imprisonment for a term of not less than six months, at any time during a period of five years after the expiration of the sentence, or prohibition of acquisition or possession by, or of sale or transfer to, young persons andcertain other per-sods of firearms, etc (iii) who has been ordered to execute under chapter viii of the code of criminal procedure, 1898, a bond for keeping the 5 of 1898 peace or for good behaviour, at any time during the term of the bond, shall acquire, have in his possession or carry any firearm or amm'l1nition; '" '" '" 13 (1) - grantor licences (2) on receipt of an application, the licensing authority, after making such inquiry, if any, as it may consider necessary, shall, subject to the other provisions of this chapter, by order in writing either grant the licence or refuse to grant the same '" - chapter iv powebs and procedure '" 25 (1) whoever-punishment for certain offences (a) acquires, has in his possession or carries any firearm or ammunition in contravention of section 3; or (b) acquires, has in his 'possession or carries in any place specifted by notification under section 4 any arms of such class or description as has been specified in that notification, in contravention of that section; or (e) manufactures, sells, transfers, con't'erts, repairs, tests or proves, or exposes or offers for sale or transfer, or' has in his possession for sale, transfer, conversion, repair, test or proof, any arms or ammunition in contravention of section 5; or (d) shortens the barrel of a firearm or converts an imitation firearm into a firearm in contravention of section 6; or (e) acquires, has in his possession or carries, or manufactures, sells, tranders, converts, repairs, tests or proves, or exposes or offers for sale or transfer, or has in his possession for sale, transfer, conversion, repair, tes~ or proof, any prohibited arms or prohibited amm'unition in contravention of section 7; or <f> sells ot transfers any firearm which does not bear the name of the maker, manufacturer's number or other identification mark stamped or otherwise shown thereon as required·,by sub-section (2) of section a or does any act in contravention of sub-section (1) of that section; or (g) being a person to whom sub-clause (ii) or sub-clause (iii) of clause (a) of sub-section (1)·of section 9 applies, acquires, has in his possession or carries any firearm or ammunition in contravention of that section; or (h) sells or transfers, or converts, repairs, tests or pi dves any firearm or ammunition in contravention of clause (b) of sub-section (1) of section 9; 'or (i) brings into, or takes out of, india, any arms or ammunition in contravention of section 10; or (j) brings into, or takes out of, india, arms or ammunition of any class or description in contravention of secti0!l 11; or (k) transports any arms or ammunition in contravention of section 12; or (l) fails to deposit arms or ammunition as required by sub-section (1) of section 21; or (m) being a manufacturer of, or dealer in, arms or ammunition, fails, on being required to do so by rules made under section 44, to maintain a record or account or to make therein all such entries as are required by such rules or intentionally makes a false entry therein or prevents or obstructs the inspection of such record or account or the making of copies of entries therefrom or prevents or obstructs the entry into any premises or other place where arms or ammunition are or is manufactured or kept or intentionally fails to exhibitor conceals such arms or ammunition or refuses to point out where the same are or is manufactured or kept; shall be punishable with imprisonment for a term which may extend to three years, or with fine, or with both - - - - - (3) whoever having sold or transferred any firearms or ammunition or other arms under the proviso 'to section 5 fails to inform the district magistrate having jurisdic~ion or the officer in charge of the nearest pollee statio~, of such salle or transfer shall be punishable with imprisonment for a term which may extend to six months, or with fine of an amount which may extend to five hundred rupees, or with both - - - - - 28 whoever-secret contraventions (a) does any act in contravention of any of the provisions of section 3,4, 5, 6, 7, 10, 11 or 12 in such manner as to indicate an inten~ tion that such act may not be known to any public servant or to any person employed, or working upon a railway, aircraft, vessel, vehicle or any other means of conveyance; or (b) on any search being made under section 22 conceals or attempts to conceal any arms or ammunition; shall be puni<ihable with imprisonment for a term which may exfend to seven years, or with fine, or with both 27 whoever has in his possession any arms or s:nmunition with intent to use the same for any unlawful purpose or to enable any otner person to use the same for any unlawful purpose shall, whether such unlawful purpose has been carried into effect or not, be punishable with imprisonment for a term which may extend to seven years, or with fine, or with both punishmentfor possessing arms, etc, with intent to use them for unlawful purpose 28 whoever makes or attempts to make any use whatsoever of a firearm or an imitation firearm with intent to resist or prevent the lawful arre~ or detention of himself or any other person shall be punishable with imprisonment for a term which may extend to seven years, or with fine, or with both punish~ ment for use and possession of fire~ arms or imitation explanation-in this section the expression "imitation firearm" has firearms the same meaning as in section 6 in certain cases 29 whoever-(a) purchases any firearms or any other arms of such class or description as may be prescribed or any ammunition from any otlier person knowing that such other person 1s not licensed or authorised under section 5; or (b) delivers any arms or ammunition into the possession ot another person without previously ascertaining that such other person is entitled by virtue of this act or any other law for the time being in force to have, and is not prohibited by this act or such other law from having, in his possession the same; punishmentfor knowinglypur_ chasing arms, etc, from unlicensed person or for delivering arms, etc, to person not entishall be punishable with imprisonment for a term which may extend to tied to six months, or with fine of an amount which may extend to five hundred possess the same rupees, or with both 30 whoever contravenes any condition of a licence or any provision of this act or any rule made thereunder, for which no punishment is punish· menttor contraventionof licence or rule p~ovided elsewhere in this act shill be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to five hundred rupees, or with both '" 34 notwithstanding anything contained in the sea customs act, 1878, no arms or ammunition shall be deposited in any warehouse licensed under section 16 of that act without the sanction of the central government - - - - - sanction of central governmentfor warehousingof arms 37 save as otherwise provided in this act,-arrest and searches s of 1898 (a) all arrests and searches made under this act or under any rules made thereunder shall be carried out in accordance with the provisions of the code of criminal procedure, 18gs, relating respectively to arrests and searches made under that code; ~ (b) any person arrested and any arms or ammunition seized under this act by a person not being a magistrate or a police officer shall be deliyered without delay to the officer in charge of the nearest polic{l station and that officer shall-(i) either release that person on his executing a hond with or without sureties to appear before a magistrate and keep the things seized in his custody till the appearance of that person before the magistrate, or (ii) should that person fail to execute the bond and to furnish, if so required, sufficient sureties, produc! that person and those things without delay before the magistrate , of 1898 offences to be cognizable 38 every offence under this act shall be cognizable within the meaning of the code of criminal procedure, 18098 - - - - - power to exempt 41 where the central government is of the opldlon that it is necessary or expedient in the public interest so to do, it may, by notification in the official gazette and subject to such conditions, if any, as it may specify in the notification,-(a) exempt ~ny person or class of persons, or exclude any description of arms or ammunition, or withdraw any part of india, from the operation of all or any of the provisions of this act; and - - - - - 44 (1) - '" - - power to make rules (2) in particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-(a) the appointment, jurisdiction, control and functions of licensing authorities; - - '" - - (3) every rule made under this section shall be laid as soon as may be after it is made before eacb hquse of parua~eat while it is in ,ession 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 so laid or the session immediately following, both houses agree in 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, 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 t~at rule - - - - - ; a bill further to amend the arms act, 1959 | Parliament_bills | 59dbc3d8-4565-5476-b92d-152095578cb0 |
_no 8 alu77 the nagaland appropriation (vote on account) bill 1977 a bill10 provide for the withdrawal of certain sums from and out of the consolidated fund of the state of nagaland for the services of a part of the financial year 1977-78 be it enacted by parliament in the twenty-eighth year of the republic of india as follows :-1 this act may be called the nagaland appropriation (vote on short title account) act, 1977 s 2 from and out of the consolidated fund of the state of nagaland ~i~t;;7: 0::0 there may be withdrawn sums not exceeding those specified in column 3 of t!m 'and ~ut of the schedule amounting in the aggregate to the sum of thirty-four crores the consolidated , fund of the seventy-five lakhs and seventy-one thousand rupees towards defraymg the state of naga]and several charges which will come in course of payment during the financial for the financial 10 year 1977-78 year 1977-78 3 the sums authorised to be withdrawn from and out of the consoji- appropriation dated fund of the state of nagaland by this act shall be appropriated for the services and purposes expressed in the schedule in relation to the said year sums not excocdlq services and purposes voted by parliament chaqed on the consolidated fund no 01 vote/ appropnalion rs rs 1 state legislature revenue 2 head of state revenue 17,08,000 2,08,000 9,08,000 3 council of ministers revenue 3,57,000 4 5,43,000 1,09,000 administration of justice revenue 5 election revenue 9,90,000 6,88,000 6 land revenue, stamps and reaistration revenue 7 3,33,000 state excise revenue 8 3,96,000 sales tax revenue 9 taxes on vehicles : revenue 10 servicinl or debt revenue capital ii public service commission revenue 2,10,000 1,14,75,000 2, j'i,75, 000 2,08,000 12 49,29,000 civil secretariat revenue 13 81,67,000 district administration, special welfare scheme and tribal council - revenue 14 4,50,000 treasury and accounts administration revenue 15 4,17,000 special expenditure on maintcnadce of law and order includilll contribution for pensions and aratuities - revenue 20,00,000 16 villap guards revenue 17 civil police and fire service unit revenue capital 2,97,48,000 4,17,000 18 20,00,000 jails revenue 19 14,58,000 stationery and printing revenue 20 3,33,000 vi8i1adc:e commission revenue 21 4,55,000 workshop organisation revenue 2,29,000 22 naaaland houses revenue 23 1,54,000 administrative trainina institute revenue 7,48,000 24 state lotteries revenue 25 7,08,000 penlions and other retirement bencftts revenue 26 2,91,03,000 education revenue 27 4,98,000 art ad culture and gazetteers unit revenae 28 l,fio,s,ooo modioal, pubjiohealth and family planning revemie 29 urban dewlopmcnt revenue 6,31,000 30 14,88,000 information, publicity and tourism revenue 31 1,08,000 employment exchanp revenue 32 labour revenue 63,000 no of services and purposes sums dot excoecun v,i voted by cbaraed on total api);' parliament tile coasoliropnadated fund tion s lb lb lb 33 community developmeat · rtmldue 3~ 35,42,000 34 social welfare revenue 21,48,000 21,48,000 10 35 soldiers, sailon and ainnen's board · revenue 50,000 so,ooo 36 social security, welfare and community services · revenue 7,50,000 7,50,000 37 evaluation unit revenue 67,000 67,000 38 co-opcratiod revenue 13,88,000 13,88,000 capital 15,79,000 15,79,000 39 statistics revenue 6,08,000 6,08,000 is 40 weights add measures revenue 1,92,000 1,92,000 41 supply office at calcutta revenue 71,000 71,000 42 ariculture, minor irription, fisheries, etc revenue 97,35,000 97,35,000 43 soil conservatiod revenue 33,24,000 33,24,000 44 grain supply scheme · revenue 20,71,000 20,71,000 capital 1,16,40,000 1,16,40,000 45 adimal husbandry and dairy development · · revenue 60,70,000 60,70,000 capital 83,000 83,000 20 46 forest · revenue 1,18,29,000 1,18,29,000 47 iddustries revenue 58,98,000 58,98,000 capital 13,54,000 13,54,000 48 mineral development · revenue 12,90,000 12,90,000 49 power projects · · · revenue 1,61,12,000 1,61,12,000 capital 79,58,000 79,58,000 25 so road tradiport · revenue 32,08,000 32,08,000 capital 12,91,000 12,91,000 51 housilll loads and loans to govcmlllcdt servants capital 5,83,000 5,83,000 52 public works, housillj, roads add bridjcs · revenue 6,60,11,000 6,60,11,000 capital 2,60,56,000 2,60,56,000 53 functional buildidis and other developmental schemes capital 81,59,000 81,59,000 s4 water supply schemes - · · revenue 75,00,000 75,00,000 capital 55,83,doo , 55,83000 30 total 31,14,94,000 3,60,11,000 34,75,71,000 this bill is introduced il1 pursuance of articles 204(1) and 206 of the constitution read with the proclamation issued under article 356 of the constitution in respect of the state of nagaland on the 22nd march, 1975 to provide for the appropriation out of the consolidated fund of the state of nagaland of the moneys required to meet the expenditure charged on the consolidated fund of the state of nagaland and the grants made in advance by the lok sabha in respect of the estimated expenditure of the govemntent of nagajand, for a part of the financial year 1977-78 h m patel president's recommendation under article 207 of the constitution of india[copy of letter no f 3(33)-b(s)/77, dated the 28th march, 1977 from shri h m patel, minister of finance to the secretary-general, lok sabha] the vice-president ~ing as president, having been informed of the subject matter of the proposed biu to provide for the withdrawal of certain sums from and out of the consolidated fund of the state of nagalaad for the scl'yices of a part of the financial year 1977-78, recommends under clauses (1) and (3) of article 207 of the constitution of india read with article 206 thereof and the proclamation dated the 22nd march, 1975, issued under article 356 of the constitutiol1, the introduction of the nagaland appropriation (vote on account) bill, 1977, in lok sabha and also the consideration of the bill 2 the bill will be introd~ in lok sabha immediately after the demands for grants, 'on account' for the expemiiture of the government of the state of nagaland for the year 1977-78 have been voted ii billto provide jor the withdrawal oj certain sums jrom and out oj the consolidated fund oj the state oj nagalond for the services of a part of the financial year 1977-78 (shri h m patel, mini~r of fintll'lce) | Parliament_bills | 6ba5a181-bed0-5a22-a85b-eb4e1f3d6565 |
bill no 32 of 2013 the cinematograph (amendment) bill, 2013 byshri jp agarwal, mp a billfurther to amend the cinematograph act, 1952be it enacted by parliament in the sixty-fourth year of the republic of india as follows:—short title1 this act may be called the cinematograph (amendment) act, 2013amendment of section 237 of 19522 in section 2 of the cinematograph act, 1952 (hereinafter referred to as the principal act), for clause (dd), the following clause shall be substituted, namely:—amendment of section 5b3 in section 5b of the principal act, sub-section (2) shall be re-numbered as subsection (3) and before sub-section (3) as so re-numbered, the following sub-section shall be inserted, namely:—"(2) a film shall not be certified for public exhibition if it depicts scenes involving—5(i) sex, romance or illicit relationship; (ii) smoking or drinking; (iii) violence including incitement of violence; (iv) instigation of communal sentiments; (v) casteist expressions; or10(vi) damage to the unity and integrity of the country"4 after part ii of the principal act, the following part shall be inserted, namely:—insertion of new part iia "part iia certification of programmes telecast on television159a (1) for the purpose of sanctioning programmes telecast on television for public exhibition, the central government shall, by notification in the official gazette, establish a board of television programmes certification with head office at new delhiestablishment of board of television programmes certification(2) the board of television programmes certification shall consist of a chairperson and six other members, who shall be appointed by the central government20(3) the chairperson of the board of television programmes certification shall receive such salary and allowances as may be determined by the central government, and other members shall receive such allowances or fees for attending the meetings of the board of television programmes certification as may be prescribed(4) the other terms and conditions of service of the members of the board of television programmes certification shall be such as may be prescribed259b (1) the board of television programmes certification shall have regional offices in every state and union territoryregional offices of board of television programmes certification(2) every regional office of the board of television programmes certification shall have a director and four other members, who shall be appointed by the central government in consultation with the board of television programmes certification30(3) the terms and conditions of service of directors and other members in regional offices of the board of television programmes certification shall be such as may be prescribed9c all provisions relating to certification of films in this act shall apply mutatis mutandis to programmes telecast on televisionprovision of the act to apply mutatis mutandis to television programmes power to make rules359d (1) the central government may, by notification in the official gazette, make rules for the purpose of carrying into effect the provisions of this part40(2) every rule made 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 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 the 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, 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 reasonsthere has been a sharp increase in the number of programmes being telecast on television the number of television channels both the government and private channels has also increased considerably however, there is virtually no scrutiny by any government agency with regard to the nature, content and theme of the programme there are many programmes being telecast on the television which are of inferior quality and do not conform to the prescribed standards even a cursory scrutiny is not done before a programme is allowed to be telecast this adversely impacts the mind and psyche of our youth and growing children in order to provide appropriate motivation to sponsors of various television programmes, it is felt that there should be a board to scrutinize television programmes effectively and issue guidelines for producing healthy and meaningful programmes providing entertainment and knowledge in conformity with our culture and tradition accordingly, it is proposed that a separate board may be established to scrutinize the programmes to be telecast on televisionbesides, viewing of scenes, which promote sex, romance, violence, consuption of alcohol or smoking, with children is not only a matter of shame but also impacts adversely the highly-sensitive minds of children and youth they are prompted to imitate the things in real life what is seen by them in films and programmes on television this is one of the major reasons for increasing incidents of violence, kidnapping, rape etc across the country during the last few years besides, the films and serials which try to provoke communal and religious sentiments have the potential of causing rift among various classes of citizens of our country and they strike at the very root of national unityit is, therefore, necessary that films and programmes telecast on television are permitted for public viewing only after they have been scrutinized properly and fulfil the criteria laid down in the law for this purposehence this billnew delhi;jp agarwalfebruary 8, 2013 financial memorandumclause 4 of the bill seeks, inter alia, to establish a separate board for sanctioning television programmes there is also provision for setting up of regional offices in every state and union territory the proposal to establish a board and regional offices is likely to involve expenditure from the consolidated fund of india the bill, therefore, if enacted would involve expenditure from the consolidated fund of india it is estimated that an annual recurring expenditure of about rupees thirty crore will be involved from the consolidated fund of indiaa non-recurring expenditure of about rupees one hundred and ten crore is also likely to be involved memorandum regarding delegated legislationclause 4 of the bill seeks to insert, inter alia, a new section 9d in the principal act, which empowers the central government to make rules for carrying out the purposes of the bill since the rules will relate to matters of detail only, the delegation of legislative power is of a normal character annexure extract from the cinematograph act, 1952(act no 37 of 1952)| | | | | | ||--------------|------|------|------|------|-----|| definitions | | | | | || 2 | | | | | || (a) | | | | | || (b) | | | | | || (c) | | | | | || (d) | | | | | |(dd) "film" means a cinematograph film| | | | | | ||-----|------|------|------|------|-----|principles for guidance in certifying films5-b (1) a film shall not be certified for public exhibition if, in the opinion of the authority competent to grant the certificate, the film or any part of it is against the interests of the sovereignty and integrity of india the security of the state, friendly relations with foreign states, public order, decency or morality, or involves defamation or contempt of court or is likely to incite the commission of any offence(2) subject to the provisions contained in sub-section (1), the central government may issue such directions as it may think fit setting out the principles which shall guide the authority competent to grant certificates under this act in sanctioning films for public exhibition| | | | | ||------|------|------|------|-----|—————— a billfurther to amend the cinematograph act, 1952————(shri jp agarwal, mp)gmgipmrnd—5090ls(s-4)—27-02-2013 | Parliament_bills | 163664d8-49c6-5db9-b096-559d871f5eb7 |
bill no 79 of 2022 the jammu and kashmir appropriation bill, 2022 a billto authorise payment and appropriation of certain further sums from and out of the consolidated fund of the union territory of jammu and kashmir for the services of the financial year 2021-22 be it enacted by parliament in the seventy-third year of the republic of india, in exercise of powers vested under the jammu and kashmir reorganisation act, 2019 as follows:—short title1 this act may be called the jammu and kashmir appropriation act, 20225102 from and out of the consolidated fund of the union territory of jammu andkashmir, there may be paid and applied sums not exceeding those specified in column 3 ofthe schedule amounting in the aggregate to the sum of eighteen thousand eight hundred sixty crore, thirty-two lakh and thirty-four thousand rupees towards defraying the several charges which will come in course of payment during the financial year 2021-22 in respect of the services specified in column 2 of the scheduleissue of rs 18860,32,34,000 (supplementary grants) out of the consolidated fund of the union territory of jammu and kashmir for the financial year 2021-22 appropriation3 the sums authorised to be paid and applied from and out of the consolidated fund of the union territory of jammu and kashmir by this act shall be appropriated for the services and purposes expressed in the schedule to the said year the schedule (see sections 2 and 3) 1 23no ofservices and purposessums not exceedingvote/voted bycharged ontotalappropria-parliamentthetionconsolidated fund1general administration department revenue 2,84,74,0002,84,74,0003planning department revenue11,86,52,000 11,86,52,000capital651,79,90,000 651,79,90,0008finance department revenue1032,82,35,000 1032,82,35,000capital 14559,08,60,00014559,08,60,00010law department revenue 2,50,92,0002,50,92,00015food, civil supplies and consumer affairs department revenue12,30,000 12,30,00016public works department capital 1431,90,47,000 1431,90,47,00017health and medical education department revenue 416,97,48,000 416,97,48,00018social welfare department revenue481,14,53,000 481,14,53,00019housing and urban development department revenue32,36,07,000 32,36,07,000capital159,31,99,000 159,31,99,00026fisheries department capital3,10,51,000 3,10,51,00030tribal affairs department revenue30,42,94,000 30,42,94,000cap ital3,28,68,000 3,28,68,00032horticulture department capital31,38,46,000 31,38,46,00036cooperative department revenue9,35,88,000 9,35,88,000total :4295,88,08,00014564,44,26,00018860,32,34,000| rs | rs | rs ||-------|-------|-------| statement of objects and reasonsthis bill is introduced in pursuance of gazette of india, extraordinary, part ii, section 3, sub-section (ii), so 3938(e), dated the 31st day of october, 2019, issued consequent upon the proclamation issued on the 31st day of october, 2019, gazette of india, extraordinary, part ii, section 3, sub-section (ii), so 3937(e), dated the 31st day of october, 2019 under section 73 of the jammu and kashmir reorganisation act, 2019, read with articles 239 and 239a of the constitution and section 74 of the jammu and kashmir reorganisation act, 2019, to authorise payment and appropriation of certain further sums from and out of the consolidated fund of the union territory of jammu and kashmir of the moneys required to meet the supplementary expenditure charged on the consolidated fund of union territory of jammu and kashmir and the grants made for expenditure of the union territory of jammu and kahsmir (with legislature) for the financial year 2021-22 for the period from 1st day of april, 2021 to 31st day of march, 2022nirmala sitharaman ———— president's recommendation under section 36(1)(c) and (d), 44(1) and 74 of jammu and kashmir reorganisation act, 2019 ————[letter no 2(12)-b(s)/2021, dated 8th march, 2022 from smt nirmala sitharaman, minister of finance and corporate affairs addressed to the secretary general, lok sabha]the president, having been informed of the subject matter of the jammu and kashmir appropriation bill, 2022 to authorise payment and appropriation of certain further sums from and out of the consolidated fund of union territory of jammu and kashmir for the services of the financial year 2021-22, recommends, under section 36(1)(c) and (d), 44(1) and 74 of the jammu and kashmir reorganisation act, 2019, the introduction of the jammu and kashmir appropriation bill, 2022 in lok sabha and also the consideration of the bill———— a billto authorise payment and appropriation of certain further sums from and out of theconsolidated fund of the union territory of jammu and kashmir for the services of the financial year 2021-22————mgipmrnd—2217ls(s3)—10-03-2022 | Parliament_bills | a710e1e6-c945-58c1-b401-34e5de120955 |
bid no s2 of i"s the ap~ropriation (no3) bill, 1965 a billto authorise payment and appropriation of certain further 1um6 from and out of the consolidated fund of india for the service of the financial year 1965-66 be it enacted by parliament in the sixteenth year of the republic of india as follows:-1 this act may be called the appropriation (no3) act, 1965 short title z from and out of the consolidated fund of india there may be issue of 5 paid and applied sums not exceeding those specified in column 3 of ra the schedule amounting in the aggregate to the sum of one crore, :;:;:~5:~ seventy-five lakhs and fifteen thousand rupees towards defraying the several charges which will come in course of payment during the ftnancial year 1965-66, in respect of the services specified in column 2 of the schedule consolidated fundol india for the year 1965-66 appropriation 3 the sums authorised to be paid and applied from and out of the consolidated fund of india by this act shall be appropriated for s the services and purposes expressed in the schedule in relation to the said year 1----------------1---------------i sums dot exc:cc:din, ~-----------!'----------,---------i voted b, ~oa total services add p~s no s of vote i parliament the conaoliciatcd fudd ra ra ri ; defence services, etfective--navy 1,50,00,000 10 u opium 36 1,50,00,000 · ! 1,000 · 37 1,000 ,,000 s,ooo 71 15 other revenue expenditure of the ministry of finance i other revenue expenditure of the ministry of information and broadcasting 8,85,000 8,85,000 · 102 i overseas communications service i i 16,15,000 i 133 1,000 16,15,000 · : capital outlay of the ministry o~ i i industry and supply 1,000 · ,,000 capital outlay on roads i 1,000 20 141 148 j capital outlay on posta and telegraphs (not met from rcvenue) 1,000 1,000 ·total "1,75,03,000 ,,,, 1,15,15,000 , ~ statement of objects and reasonsthis bill is introduced in pursuance of article 114(1) of the constitution of india, read with article 115 thereof, to provide for the appropriation out of the consolidated fund of india of the moneys required to meet the supplementary expenditure charged on the consolidated fund of india and the grants made by the lok sabha for expenditure of, the central government, excluding railways, for the financial year 1965-66 t t rjushnamachabl president's recommendation under article 117 of the constitution of india[copy of letter no f 5 (5)-b/65, dated the 17th august, 1965 from shri t t krishnamachari, minister of finance to the secretary, lok sabha] the president having been informed of the subject matter of the proposed bhl to authorise pa?ment and appro,ilriation of certain further sums from and out of the consolidated fund of india for the services of the year ending on the 31st day of march, 1966, recommends the introduction of the appropriation (no3) bill, 1965 in the lok sabha and also recommends to the sabha the consideration of the bill under article 117 (1) and (3) of the constitution read with article 115 thereof, 2 the bill will be introduced in the lok sabha after a1'1 the supplementary demands for grants for 1965-66 have been voted a bill to authorise payment and appropriation of certain further sums from and out of the consolidated fund of india for the services of the financial year 1965-66 (shri t t krishnmnch!lri, minister of finance) | Parliament_bills | c94dd228-a1bc-5234-99eb-20466671592a |
bill no 53 of 2021 the appropriation (no 2) bill, 2021 a billto authorise payment and appropriation of certain sums from and out of the consolidated fund of india for the services of the financial year 2021-22be it enacted by parliament in the seventy-second year of the republic of india as follows:—short title1 this act may be called the appropriation (no 2) act, 20212 from and out of the consolidated fund of india there may be paid and appliedsums not exceeding those specified in column 3 of the schedule amounting in the aggregate to the sum of one hundred seventeen lakh sixteen thousand seven hundred eleven crore and thirty-five lakh rupees towards defraying the several charges which will come in course of payment during the financial year 2021-22 in respect of the services specified in column 2 of the scheduleissue of rs 11716711,35,00,000 out of the consolidated fund of india for the financial year 2021-22appropriation3 the sums authorised to be paid and applied from and out of the consolidated fundof india by this act shall be appropriated for the services and purposes expressed in the schedule in relation to the said yearconstruction of references to ministries or departments in the schedule the schedule(see sections 2, 3 and 4) 1 23no services and purposessums not exceedingofvoted bycharged ontotalvoteparliamenttheconsolidatedfund1department of agriculture, cooperation and farmers' welfare revenue122961,57,00,000122961,57,00,000capital56,00,00,00056,00,00,0002department of agricultural research and education revenue8513,62,00,0008513,62,00,000capital3atomic energy revenue16391,20,00,0001,00,00,00016392,20,00,000capital11403,20,00,00011403,20,00,0004ministry of ayurveda, yoga and naturopathy, unani, siddha andhomoeopathy (ayush) revenue2970,30,00,0002970,30,00,000capital5department of chemicals and petrochemicals revenue229,64,00,000229,64,00,000capital3,50,00,0003,50,00,0006department of fertilisers revenue83596,77,00,00083596,77,00,000capital444,62,00,000444,62,00,0007department of pharmaceuticals revenue461,29,00,000461,29,00,000capital9,12,00,0009,12,00,0008ministry of civil aviation revenue3184,15,00,0003184,15,00,000capital40,52,00,00040,52,00,0009ministry of coal revenue534,88,00,000534,88,00,000capital10 department of commerce revenue4699,01,00,0004699,01,00,000capital287,00,00,000287,00,00,00011 department for promotion of industry and internal trade revenue6570,66,00,0006570,66,00,000capital1211,58,00,0001211,58,00,00012 department of posts revenue34262,38,00,00080,00,00034263,18,00,000capital910,09,00,000910,09,00,00013 department of telecommunications revenue41803,44,00,00041803,44,00,000capital31133,56,00,00031133,56,00,00014 department of consumer affairs revenue3191,55,00,0003191,55,00,000capital46,05,00,00046,05,00,00015 department of food and public distribution revenue251248,34,00,000251248,34,00,000capital52725,96,00,00052725,96,00,00016 ministry of corporate affairs revenue686,13,00,000686,13,00,000capital51,00,00,00051,00,00,00017 ministry of culture revenue2609,23,00,0002609,23,00,000capital78,76,00,00078,76,00,00018 ministry of defence (civil) revenue30088,23,00,00070,00,00030088,93,00,000capital7698,41,00,00050,00,00,0007748,41,00,00019 defence services (revenue) revenue231945,49,00,000101,44,00,000232046,93,00,000capital20 capital outlay on defence services revenuecapital134978,85,00,00081,87,00,000135060,72,00,00021 defence pensions revenue115841,73,00,0008,27,00,000115850,00,00,000capital22 ministry of development of north eastern region revenue2031,51,00,0002031,51,00,000capital652,49,00,000652,49,00,00023 ministry of earth sciences revenue1738,69,00,0001738,69,00,000capital163,00,00,000163,00,00,00024 department of school education and literacy revenue103673,66,00,000103673,66,00,000capital| rs | rs | rs ||-------|-------|-------|| 1 | 2 | 3 ||--------------------------------------------------------------------------|------------------------------------------------------------------|--------------------|| no | services and purposes | sums not exceeding || of | voted by | charged on || vote | parliament | the || consolidated | | || fund | | || 25 department of higher education revenue | 65325,15,00,000 | || capital | 25,50,00,000 | || | | || 25,50,00,000 | | || 26 ministry of electronics and information technology revenue | 9274,66,00,000 | || capital | 446,00,00,000 | || | | || 446,00,00,000 | | || 27 ministry of environment, forests and climate change revenue | 3014,10,00,000 | || capital | 122,48,00,000 | || | | || 122,48,00,000 | | || 28 ministry of external affairs revenue | 16663,95,00,000 | 3,00,000 || capital | 1490,75,00,000 | || | | || 1490,75,00,000 | | || 29 department of economic affairs revenue | 4649,12,00,000 | || capital | 94900,41,00,000 | || | | || 94900,41,00,000 | | || 30 department of expenditure revenue | 454,74,00,000 | || capital | | || | | || 31 department of financial services revenue | 3710,78,00,000 | || capital | 47800,03,00,000 | || | | || 47800,03,00,000 | | || 32 department of investment and public asset management (dipam) revenue | 110,52,00,000 | || capital | | || | | || 33 department of revenue revenue | 201499,60,00,000 | 2,00,000 || capital | 13,02,00,000 | || | | || 13,02,00,000 | | || 34 direct taxes revenue | 8180,34,00,000 | || capital | 352,00,00,000 | || | | || 352,00,00,000 | | || 35 indirect taxes revenue | 20906,77,00,000 | 50,00,000 || capital | 452,00,00,000 | || | | || 452,00,00,000 | | || 36 indian audit and accounts department revenue | 5209,97,00,000 | 200,00,00,000 || capital | 24,95,00,000 | || | | || 24,95,00,000 | | || c | | || harged | | || — | interest payments | revenue || capital | | || | | || c | | || harged | | || — | repayment of debt | revenue || capital | | || | | || 6944151,48,00,000 | 6944151,48,00,000 | || 39 pensions revenue | 56473,12,00,000 | 400,00,00,000 || capital | | || | | || 40 transfers to states revenue | 71490,77,00,000 | 220843,00,00,000 || capital | 10000,01,00,000 | 46850,00,00,000 || 41 department of fisheries revenue | 1192,16,00,000 | || capital | 28,68,00,000 | || | | || 28,68,00,000 | | || 42 department of animal husbandry and dairying revenue | 3555,59,00,000 | || capital | 44,39,00,000 | || | | || 44,39,00,000 | | || 43 ministry of food processing industries revenue | 1308,66,00,000 | || capital | | || | | || 44 department of health and family welfare revenue | 114771,54,00,000 | || capital | 4355,61,00,000 | || | | || 4355,61,00,000 | | || 45 department of health research revenue | 2663,00,00,000 | || capital | | || | | || 46 department of heavy industry revenue | 927,85,00,000 | || capital | 67,42,00,000 | || | | || 67,42,00,000 | | || 47 department of public enterprises revenue | 21,81,00,000 | || capital | | || | | || 48 ministry of home affairs revenue | 7333,38,00,000 | 3,00,000 || capital | 286,99,00,000 | || | | || 286,99,00,000 | | || 49 cabinet revenue | 1961,04,00,000 | || capital | 137,00,00,000 | || | | || 137,00,00,000 | | || 50 police revenue | 95424,05,00,000 | 8,02,00,000 || capital | 9721,72,00,000 | 8,32,00,000 || rs | rs | rs || 1 | 2 | 3 ||-------------------------------------------------------------------------------------|------------------------------------------------------------------|--------------------|| no | services and purposes | sums not exceeding || of | voted by | charged on || vote | parliament | the || consolidated | | || fund | | || 51 andaman and nicobar islands revenue | 4721,23,00,000 | 1,00,000 || capital | 666,17,00,000 | || | | || 666,17,00,000 | | || 52 chandigarh revenue | 4530,11,00,000 | 37,56,00,000 || capital | 508,45,00,000 | 110,00,00,000 || 53 dadra and nagar haveli and daman and diu revenue | 2798,76,00,000 | || capital | 764,83,00,000 | || | | || 764,83,00,000 | | || 54 ladakh revenue | 2331,64,00,000 | || capital | 3626,36,00,000 | || | | || 3626,36,00,000 | | || 55 lakshadweep revenue | 1238,21,00,000 | || capital | 229,10,00,000 | || | | || 229,10,00,000 | | || 56 transfers to delhi revenue | 957,50,00,000 | || capital | 1,00,000 | || | | || 1,00,000 | | || 57 transfers to jammu and kashmir revenue | 30757,00,00,000 | || capital | | || 58 transfers to puducherry revenue | 1729,78,00,000 | || capital | 1,00,000 | || | | || 1,00,000 | | || 59 ministry of housing and urban affairs revenue | 36885,14,00,000 | 106,85,00,000 || capital | 25723,95,00,000 | 35,07,00,000 || 60 ministry of information and broadcasting revenue | 4058,61,00,000 | || capital | 12,62,00,000 | || | | || 12,62,00,000 | | || 61 department of water resources, river development and ganga rejuvenation revenue | 8756,92,00,000 | || capital | 344,77,00,000 | || | | || 344,77,00,000 | | || 62 department of drinking water and sanitation revenue | 128024,45,00,000 | || capital | | || | | || | | || 63 ministry of labour and employment revenue | 13269,37,00,000 | || capital | 37,13,00,000 | || | | || 37,13,00,000 | | || 64 law and justice revenue | 1745,82,00,000 | || capital | 1100,00,00,000 | || | | || 1100,00,00,000 | | || 65 election commission revenue | 242,16,00,000 | || capital | 7,00,00,000 | || | | || 7,00,00,000 | | || c | | || harged | | || — | supreme court of india | revenue || capital | | || | | || | | || 67 ministry of micro, small and medium enterprises revenue | 15329,65,00,000 | || capital | 370,00,00,000 | || | | || 370,00,00,000 | | || 68 ministry of mines revenue | 1498,49,00,000 | || capital | 68,33,00,000 | || | | || 68,33,00,000 | | || 69 ministry of minority affairs revenue | 4657,75,00,000 | || capital | 153,02,00,000 | || | | || 153,02,00,000 | | || 70 ministry of new and renewable energy revenue | 5743,00,00,000 | || capital | 10,00,00,000 | || | | || 10,00,00,000 | | || 71 ministry of panchayati raj revenue | 913,43,00,000 | || capital | | || | | || | | || 72 ministry of parliamentary affairs revenue | 65,07,00,000 | 65,07,00,000 || capital | | || | | || | | || 73 ministry of personnel, public grievances and pensions revenue | 1829,93,00,000 | 30,28,00,000 || capital | 186,71,00,000 | 11,65,00,000 || c | | || harged | | || — | central vigilance commission | revenue || capital | | || | | || | | || 75 ministry of petroleum and natural gas revenue | 15866,78,00,000 | || capital | 427,00,00,000 | || | | || 427,00,00,000 | | || 76 ministry of planning revenue | 1061,99,00,000 | || capital | 78,00,000 | || | | || 78,00,000 | | || rs | rs | rs || 1 | 2 | 3 ||------------------------------------------------------|------------------------------------------------------------------|--------------------|| no | services and purposes | sums not exceeding || of | voted by | charged on || vote | parliament | the || consolidated | | || fund | | || 77 | ministry of ports, shipping and waterways revenue | 1859,35,00,000 || capital | 353,00,00,000 | || | | || 353,00,00,000 | | || 78 | ministry of power revenue | 17727,03,00,000 || capital | 3180,77,00,000 | || | | || 3180,77,00,000 | | || c | | || harged | | || — | staff, household and allowances of the president | revenue || capital | | || 80 | lok sabha revenue | 854,00,00,000 || capital | | || 81 | rajya sabha revenue | 445,29,00,000 || capital | | || | | || | | || 82 | secretariat of the vice-president revenue | 7,43,00,000 || capital | | || | | || | | || c | | || harged | | || | | || - | union public service commission | revenue || | | || 304,17,00,000 | 304,17,00,000 | || capital | | || | | || | | || 84 | ministry of railways revenue | 275986,65,00,000 || capital | 304836,88,00,000 | 92,08,00,000 || 85 | ministry of road transport and highways revenue | 19668,06,00,000 || capital | 207840,29,00,000 | 10,00,00,000 || 86 | department of rural development revenue | 234019,08,00,000 || | | || 234019,08,00,000 | | || capital | | || | | || | | || 87 | department of land resources revenue | 2170,42,00,000 || | | || 2170,42,00,000 | | || capital | | || | | || | | || 88 | department of science and technology revenue | 5949,57,00,000 || capital | 122,00,00,000 | || 89 | department of biotechnology revenue | 3502,37,00,000 || | | || 3502,37,00,000 | | || capital | | || | | || | | || 90 | department of scientific and industrial research revenue | 5202,12,00,000 || | | || 5202,12,00,000 | | || capital | 22,15,00,000 | || | | || 22,15,00,000 | | || 91 | ministry of skill development and entrepreneurship revenue | 2711,53,00,000 || | | || 2711,53,00,000 | | || capital | 73,70,00,000 | || | | || 73,70,00,000 | | || 92 | department of social justice and empowerment revenue | 10197,62,00,000 || | | || 10197,62,00,000 | | || capital | 370,00,00,000 | || | | || 370,00,00,000 | | || 93 | department of empowerment of persons with disabilities revenue | 1171,76,00,000 || | | || 1171,76,00,000 | | || capital | 1,00,000 | || | | || 1,00,000 | | || 94 | department of space revenue | 5719,86,00,000 || capital | 8228,23,00,000 | 40,00,000 || 95 | ministry of statistics and programme implementation revenue | 1396,09,00,000 || | | || 1396,09,00,000 | | || capital | 13,04,00,000 | || | | || 13,04,00,000 | | || 96 | ministry of steel revenue | 39,25,00,000 || | | || 39,25,00,000 | | || capital | | || | | || | | || 97 | ministry of textiles revenue | 3591,61,00,000 || | | || 3591,61,00,000 | | || capital | 40,03,00,000 | || | | || 40,03,00,000 | | || 98 | ministry of tourism revenue | 2032,04,00,000 || | | || 2032,04,00,000 | | || capital | | || | | || | | || 99 | ministry of tribal affairs revenue | 2816,52,00,000 || capital | 2,00,000 | || | | || 2,00,000 | | || 100 ministry of women and child development revenue | 24930,00,00,000 | || | | || 24930,00,00,000 | | || capital | 5,00,00,000 | || | | || 5,00,00,000 | | || 101 ministry of youth affairs and sports revenue | 2549,41,00,000 | || | | || 2549,41,00,000 | | || capital | 46,73,00,000 | || | | || 46,73,00,000 | | || t | | || otal | | || : | 3650446,75,00,000 | 8066264,60,00,000 || rs | rs | rs | statement of objects and reasonsthis bill is introduced in pursuance of article 114 (1) of the constitution of india to provide for the appropriation out of the consolidated fund of india of the moneys required to meet the expenditure charged on the consolidated fund and the grants made by lok sabha for expenditure of the central government for the financial year 2021-22nirmala sitharaman ———— president's recommendation under article 117 of the constitution of india ————[letter no 2(11)-b(d)/2021 dated 8th march, 2021 from smt nirmala sitharaman, minister of finance to the secretary-general, lok sabha]the president, having been informed of the subject matter of the appropriation(no 2) bill, 2021 to authorise payment and appropriation of certain sums from and out of the consolidated fund of india for the services of the financial year 2021-22 recommends, under article 117(1) and (3) of the constitution the introduction of the appropriation (no2) bill, 2021 in lok sabha and also the consideration of the bill———— a billto authorise payment and appropriation of certain sums from and out of the consolidated fund of india for the services of the financial year 2021-22————mgipmrnd—1556ls(s3)—09-03-2021 | Parliament_bills | 569e99c0-c678-5ef3-b757-7ef68f2e44ae |
bill no 31 of 2015 the insurance laws (amendment) bill, 2015 a billfurther to amend the insurance act, 1938 and the general insurance business(nationalisation) act, 1972 and to amend the insurance regulatory and development authority act, 1999 be it enacted by parliament in the sixty-sixth year of the republic of india as follows:— chapter i preliminary1 (1) this act may be called the insurance laws (amendment) act, 2015short title and commencement(2) it shall be deemed to have come into force on the 26th day of december, 20145 chapter ii amendments to the insurance act, 19384 of 19382 in the insurance act, 1938 (hereafter in this chapter referred to as the insurance act), throughout the act,—10(a) for the words and figures "the indian companies act,1913", wherever they occur, the words and figures "the companies act, 2013" shall be substituted;7 of 1913 18 of 2013substitution of references to certain expressions by certain other expressions1 of 1956 18 of 2013(b) for the words and figures "the companies act,1956", wherever they occur, the words and figures "the companies act, 2013" shall be substituted'3 in section 2 of the insurance act,—amendment of section 2(i) for clauses (1) and (1a), the following clauses shall be substituted, namely:—535 of 2006'(1) "actuary" means an actuary as defined in clause (a) of sub-section (1)of section 2 of the actuaries act, 2006;41 of 1999(1a) ''authority'' means the insurance regulatory and development authority of india established under sub-section (1) of section 3 of the insurance regulatory and development authority act, 1999;';10(ii) clause (5a) shall be omitted; (iii) after clause (6b), the following clause shall be inserted, namely:—'(6c) "health insurance business" means the effecting of contracts which provide for sickness benefits or medical, surgical or hospital expense benefits, whether in-patient or out-patient travel cover and personal accident cover;';15(iv) for clause (7a), the following clause shall be substituted, namely:—'(7a) "indian insurance company" means any insurer, being a company which is limited by shares, and,—18 of 201320(a) which is formed and registered under the companies act, 2013as a public company or is converted into such a company within one year of the commencement of the insurance laws (amendment) act, 2015;(b) in which the aggregate holdings of equity shares by foreign investors, including portfolio investors, do not exceed forty-nine per cent of the paid up equity capital of such indian insurance company, which is indian owned and controlled, in such manner as may be prescribed25explanation--for the purposes of this sub-clause, the expression"control" shall include the right to appoint a majority of the directors or to control the management or policy decisions including by virtue of their shareholding or management rights or shareholders agreements or voting agreements;30(c) whose sole purpose is to carry on life insurance business or general insurance business or re-insurance business or health insurance business;';(v) clause (8) shall be omitted; (vi) in clause (8a),—35(i) for sub-clause (b), the following sub-clause shall be substituted, namely:—"(b) having a minimum paid-up capital of rupees one hundred crore in case of life insurance business, general insurance business and health insurance business;";40(ii) in sub-clause (d), after the words ''general insurance business'', the words ''or health insurance business'' shall be inserted; (vii) for clause (9), the following clause shall be substituted, namely:—'(9) "insurer" means—(a) an indian insurance company, or(b) a statutory body established by an act of parliament to carry on insurance business, or(c) an insurance co-operative society, or5(d) a foreign company engaged in re-insurance business through abranch established in india10explanation—for the purposes of this sub-clause, the expression"foreign company" shall mean a company or body established or incorporated under a law of any country outside india and includes lloyd's established under the lloyd's act, 1871 (united kingdom) or any of its members;';(viii) in clause (10), the words and figures "licensed under section 42" shall be omitted;(ix) in clause (11), in sub-clause (c), for the words "annuities payable out of any fund", the words "benefit payable out of any fund'' shall be substituted;15(x) clauses (12), (13) and (15) shall be omitted;7 of 1913 18 of 2013(xi) in clause (16), for the words, brackets, figures and letter "clauses (13) and(13a) of section 2 of the indian companies act, 1913", the words, brackets and figures "clause (68) and clause (72) of section 2 of the companies act, 2013" shall be substituted;20(xii) after clause (16), the following clauses shall be inserted, namely:—41 of 1999'(16a) "regulations" means the regulations framed by the insurance regulatory and development authority of india established under the insurance regulatory and development authority act, 1999;(16b) "re-insurance" means the insurance of part of one insurer's risk by another insurer who accepts the risk for a mutually acceptable premium;2515 of 1992(16c) ''securities appellate tribunal'' means the securities appellate tribunal established under section 15k of the securities and exchange board of india act, 1992;'; (xiii) clause (17) shall be omitted304 after section 2ca of the insurance act, the following section shall be inserted, namely:—35"2cb (1) no person shall take out or renew any policy of insurance in respect of any property in india or any ship or other vessel or aircraft registered in india with an insurer whose principal place of business is outside india save with the prior permission of the authority(2) if any person contravenes the provision of sub-section (1), he shall be liable to a penalty which may extend to five crore rupees"insertion of new section 2cb properties in india not to be insured with foreign insurers except with the permission of authority5 section 2e of the insurance act shall be omitted 6 in section 3 of the insurance act,—omission of section 2e amendment of section 3(i) for sub-section (2), the following sub-section shall be substituted, namely:—40"(2) every application for registration shall be made in such manner and shall be accompanied by such documents as may be specified by the regulations";45(ii) in sub-section (2a), in clause (d), for the figures, letter and word "5, 31a and32", the figures, word and letter "5 and 31a" shall be substituted;(iii) for sub-section (2c), the following sub-section shall be substituted, namely:—5"(2c) any person aggrieved by the decision of the authority refusing registration may, within thirty days from the date on which a copy of the decision is received by him, appeal to the securities appellate tribunal"; (iv) sub-section (2d) shall be omitted;(v) for sub-sections (3), (4), (5) and (5a), the following sub-sections shall be substituted, namely:—10"(3) in the case of any insurer having joint venture with a person having its principal place of business domiciled outside india or any insurer as defined in sub-clause (d) of clause (9) of section 2, the authority may withhold registration already made if it is satisfied that in the country in which such person has been debarred by law or practice of that country to carry on insurance business15(4) the authority may suspend or cancel the registration of an insurer either wholly or in so far as it relates to a particular class of insurance business, as the case may be,—(a) if the insurer fails, at any time, to comply with the provisions of section 64va as to the excess of the value of his assets over the amount of his liabilities, or20(b) if the insurer is in liquidation or is adjudged as an insolvent, or(c) if the business or a class of the business of the insurer has been transferred to any person or has been transferred to or amalgamated with the business of any other insurer without the approval of the authority, or25(d) if the insurer makes default in complying with, or acts incontravention of, any requirement of this act or of any rule or any regulation or order made or, any direction issued thereunder, or(e) if the authority has reason to believe that any claim upon the insurer arising in india under any policy of insurance remains unpaid for three months after final judgment in regular court of law, or30(f) if the insurer carries on any business other than insurance businessor any prescribed business, or41 of 1999(g) if the insurer makes a default in complying with any directionissued or order made, as the case may be, by the authority under the insurance regulatory and development authority act, 1999, or3518 of 2013 57 of 1972 42 of 1999 15 of 2002(h) if the insurer makes a default in complying with, or acts incontravention of, any requirement of the companies act, 2013 or the general insurance business (nationalisation) act, 1972 or the foreign exchange management act, 1999 or the prevention of money laundering act, 2002, or40(i) if the insurer fails to pay the annual fee required under section3a, or(j) if the insurer is convicted for an offence under any law for the time being in force, or4539 of 2002(k) if the insurer being a co-operative society set up under the relevant state laws or, as the case may be, the multi-state co-operative societies act, 2002, contravenes the provisions of law as may be applicable to the insurer5(5) when the authority suspends or cancels any registration under clause(a), clause (d), clause (e), clause (f), clause (g) or clause (i) of sub-section(4), it shall give notice in writing to the insurer of its decision, and the decision shall take effect on such date as it may specify in that behalf in the notice, such date not being less than one month not more than two months from the date of the receipt of the notice in the ordinary course of transmission10(5a) when the authority suspends or cancels any registration under clause (b), (c), (j) or (k) of sub-section (4), the suspension or cancellation, as the case may be, shall take effect on the date on which notice of the order of suspension or cancellation is served on the insurer"; (vi) for sub-section (5c), the following sub-section shall be substituted, namely:—15 2041 of 1999"(5c) where a registration is suspended or cancelled under clause (a), clause (d), clause (e), clause (f), clause (g) or clause (i) of sub-section (4), the authority may at its discretion revive the registration, if the insurer within six months from the date on which the suspension or cancellation took effect complies with the provisions of section 64va as to the excess of the value of his assets over the amount of his liabilities or has had an application under subsection (4) of section 3a accepted, or satisfies the authority that no claim upon him such as is referred to in clause (e) of sub-section (4) remains unpaid or that he has complied with any requirement of this act or the insurance regulatory and development authority act, 1999, or of any rule or any regulation, or any order made thereunder or any direction issued under those acts, or that he has ceased to carry on any business other than insurance business or any prescribed business, as the case may be, and complies with any directions which may be given to him by the authority"257 for section 3a of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 3apayment of annual fee by insurer"3a (1) an insurer who has been granted a certificate of registration under section 3 shall pay such annual fee to the authority in such manner as may be specified by the regulations30(2) any failure to deposit the annual fee shall render the certificate of registration liable to be cancelled"8 for section 4 of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 435"4 the insurer shall pay or undertake to pay on any policy of life insurance or agroup policy issued, a minimum annuity and other benefits as may be determined by regulations excluding any profit or bonus provided that this shall not prevent an insurer from converting any policy into a paid-up policy of any value or payment of surrender value of any amount"minimum limits for annuities and other benefits secured by policies of life insurance409 in section 5 of the insurance act,—amendment of section 5(i) in sub-section (1), both the provisos shall be omitted; (ii) sub-section (3) shall be omitted10 for section 6 of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 645requirement as to capital"6 (1) no insurer not being an insurer as defined in sub-clause (d) of clause (9)of section 2, carrying on the business of life insurance, general insurance, health41 of 1999insurance or re-insurance in india or after the commencement of the insurance regulatory and development authority act, 1999, shall be registered unless he has,—(i) a paid-up equity capital of rupees one hundred crore, in case of a person carrying on the business of life insurance or general insurance; or5(ii) a paid-up equity capital of rupees one hundred crore, in case of a person carrying on exclusively the business of health insurance; or(iii) a paid-up equity capital of rupees two hundred crore, in case of a person carrying on exclusively the business as a re-insurer:1018 of 201315 of 1992provided that the insurer, may enhance the paid-up equity capital, as provided in this section in accordance with the provisions of the companies act, 2013, the securities and exchange board of india act, 1992 and the rules, regulations or directions issued thereunder or any other law for the time being in force:15 provided further that in determining the paid-up equity capital, any preliminary expenses incurred in the formation and registration of any insurer as may be specified by the regulations made under this act, shall be excluded (2) no insurer, as defined in sub-clause (d) of clause (9) of section 2, shall be registered unless he has net owned funds of not less than rupees five thousand crore"11 in section 6a of the insurance act,—20(i) for sub-section (1), the following sub-section shall be substituted, namely:—amendment of section 6a"(1) no public company limited by shares having its registered office in india, shall carry on life insurance business or general insurance business or health insurance business or re-insurance business, unless it satisfies the following conditions, namely:—25(i) that the capital of the company shall consist of equity shares each having a single face value and such other form of capital, as may be specified by the regulations;(ii) that the voting rights of shareholders are restricted to equity shares;30(iii) that, except during any period not exceeding one year allowed by the company for payment of calls on shares, the paid-up amount is the same for all shares, whether existing or new:3547 of 1950provided that the conditions specified in this sub-section shall not apply to a public company which has, before the commencement of the insurance (amendment) act, 1950, issued any shares other than ordinary shares each of which has a single face value or any shares, the paid-up amount whereof is not the same for all of them for a period of three years from such commencement";40(ii) in sub-section (2), after the words "paid-up amount of the", the word"equity"shall be inserted;(iii) for sub-section (4), the following sub-section shall be substituted, namely:—"(4) a public company as aforesaid which carries on life insurance business, general and health insurance business and re-insurance business—4518 of 2013(a) shall, in addition to the register of members maintained under the companies act, 2013, maintain a register of shares in which the name, occupation and address of the beneficial owner of each share shall be entered including any change of beneficial owner declared to it within fourteen days from the receipt of such declaration;18 of 2013 510(b) shall not register any transfer of its shares—(i) unless, in addition to compliance being made with theprovisions of section 56 of the companies act, 2013, the transferee furnishes a declaration in the prescribed form as to whether he proposes to hold the shares for his own benefit or as a nominee, whether jointly or severally, on behalf of others and in the latter case giving the name, occupation and address of the beneficial owner or owners, and the extent of the beneficial interest of each;15(ii) where, after the transfer, the total paid-up holding of thetransferee in the shares of the company is likely to exceed five per cent of its paid-up capital unless the previous approval of the authority has been obtained to the transfer;(iii) where, the nominal value of the shares intended to betransferred by any individual, firm, group, constituents of a group, or body corporate under the same management, jointly or severally exceeds one per cent of the paid-up equity capital of the insurer, unless the previous approval of the authority has been obtained for the transfer2012 of 2003explanation—for the purposes of this sub-clause, the expressions "group" and "same management" shall have the meanings respectively assigned to them in the competition act, 2002";(iv) sub-sections (3), (6), (7), (8), (9) and (10) shall be omitted;25(v) in sub-section (11),— (a) in the opening portion, the words, brackets and figures "except those of subsections (7), (8) and (9)" shall be omitted;(b) in clause (i) the word "and" shall be omitted; (c) clause (ii) shall be omitted;30(d) in the explanation 1, in clause (ii), in sub-clause (c), the words "managing agent" shall be omitted12 section 6aa of the insurance act shall be omitted 13 in section 6b of the insurance act,—omission of section 6aaamendment of section 6b(i) in sub-section (1),—35(a) for the words "life insurance business", the words "life or general or health insurance or re-insurance business" shall be substituted; and(b) for the words "central government", the word "authority" shall be substituted;40(ii) in sub-sections (2) and (3), for the words "high court", the words "the securities appellate tribunal" shall be substituted;"(iii) sub-section (4) shall be omitted14 sections 6c, 7, 8 and 9 of the insurance act shall be omittedomission of sections 6c, 7, 8 and 915 in section 10 of the insurance act,—amendment of section 1045(i) in sub-section (1), for the words "prescribed in this behalf", the words"specified by the regulations" shall be substituted;(ii) in sub-section (2),—6 of 1946(a) the words, brackets and figures, "after the expiry of six months from the commencement of the insurance (amendment) act, 1946", shall be omitted;5(b) the words "under the law of the insurer's country" occurring at the end, shall be omitted (iii) after sub-section (2a), the following sub-section shall be inserted, namely:—10"(2aa) where the insurer carries on the business of insurance, all receipts due in respect of each sub-class of such insurance business shall be carried to and shall form a separate fund, the assets of which shall be kept separate and distinct from other assets of the insurer and every insurer shall submit to the authority the necessary details of such funds as may be required by the authority from time to time and such funds shall not be applied directly or indirectly, save as expressly permitted under this act or regulations made thereunder"1516 for section 11 of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 11accounts and balance sheet20"11 (1) every insurer, on or after the date of the commencement of the insurance laws (amendment) act, 2015, in respect of insurance business transacted by him and in respect of his shareholders' funds, shall, at the expiration of each financial year, prepare with reference to that year, balance sheet, a profit and loss account, a separate account of receipts and payments, a revenue account in accordance with the regulations as may be specified(2) every insurer shall keep separate accounts relating to funds of shareholders and policyholders18 of 201325 30(3) unless the insurer is a company as defined in clause (20) of section 2 of the companies act, 2013, the accounts and statements referred to in sub-section (1) shall be signed by the insurer, or in the case of a company by the chairman, if any, and two directors and the principal officer of the company, or in case of an insurance cooperative society by the person in-charge of the society and shall be accompanied by a statement containing the names, descriptions and occupations of, and the directorships held by, the persons in charge of the management of the business during the period to which such accounts and statements refer and by a report on the affairs of the business during that period"17 for section 12 of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 12audit3518 of 201340"12 the balance sheet, profit and loss account, revenue account and profit and loss appropriation account of every insurer, in respect of all insurance business transacted by him, shall, unless they are subject to audit under the companies act, 2013, be audited annually by an auditor, and the auditor shall in the audit of all such accounts have the powers of, exercise the functions vested in, and discharge the duties and be subject to the liabilities and penalties imposed on, auditors of companies by section 147 of the companies act, 2013"18 in section 13 of the insurance act,—amendment of section 13(i) for sub-section (1), the following sub-section shall be substituted, namely:—45"(1) every insurer carrying on life insurance business shall, once at least every year cause an investigation to be made by an actuary into the financial condition of the life insurance business carried on by him, including a valuation of his liabilities in respect thereto and shall cause an abstract of the report of such actuary to be made in accordance with the regulations:provided that the authority may, having regard to the circumstances of any particular insurer, allow him to have the investigation made as at a date not later than two years from the date as at which the previous investigation was made:541 of 1999provided further that every insurer, on or after the commencement of the insurance regulatory and development authority act, 1999, shall cause an abstract of the report of the actuary to be made in such manner as may be specified by the regulations"; (ii) for sub-section (4), the following sub-section shall be substituted, namely:—10"(4) there shall be appended to every such abstract a statement prepared in such form and in such manner as may be specified by the regulations:provided that, if the investigation referred to in sub-sections (1) and (2) is made annually by any insurer, the statement need not be appended every year but shall be appended at least once in every three years";15(iii) for sub-section (6), the following sub-section shall be substituted, namely:—'(6) the provisions of this section relating to the life insurance business shall apply also to any such sub-class of insurance business included in the class "miscellaneous insurance" and the authority may authorise such modifications and variations of regulations as may be necessary to facilitate their application to any such sub-class of insurance business:20 25provided that, if the authority is satisfied that the number and amount of the transactions carried out by an insurer in any such sub-class of insurance business is so small as to render periodic investigation and valuation unnecessary, it may exempt that insurer from the operation of this sub-section in respect of that sub-class of insurance business'19 for section 14 of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 14 "14 (1) every insurer, in respect of all business transacted by him, shall maintain—record of policies and claims30(a) a record of policies, in which shall be entered, in respect of every policy issued by the insurer, the name and address of the policyholder, the date when the policy was effected and a record of any transfer, assignment or nomination of which the insurer has notice;35(b) a record of claims, every claim made together with the date of the claim,the name and address of the claimant and the date on which the claim was discharged, or, in the case of a claim which is rejected, the date of rejection and the grounds thereof; and(c) a record of policies and claims in accordance with clauses (a) and (b)may be maintained in any such form, including electronic mode, as may be specified by the regulations made under this act40 (2) every insurer shall, in respect of all business transacted by him, endeavourto issue policies above a specified threshold in terms of sum assured and premium in electronic form, in the manner and form to be specified by the regulations made under this act"4520 for section 15 of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 15submission of returns"15 (1) the audited accounts and statements referred to in section 11 or subsection (5) of section 13 and the abstract and statement referred to in section 13 shall be printed, and four copies thereof shall be furnished as returns to the authority within six months from the end of the period to which they refer5(2) of the four copies so furnished, one shall be signed in the case of a company by the chairman and two directors and by the principal officer of the company and, if the company has a managing director by that managing director and one shall be signed by the auditor who made the audit or the actuary who made the valuation, as the case may be"21 section 16 of the insurance act shall be omitted1022 sections 17 and 17a of the insurance act shall be omitted 23 in section 20 of the insurance act,—omission of section 16 omission of sections 17and 17aamendment of section 20(i) for sub-section (1), the following sub-section shall be substituted, namely:—15"(1) every return furnished to the authority or certified copy thereof shall be kept by the authority and shall be open to inspection; and any person may procure a copy of any such return, or of any part thereof, on payment of such fee as may be specified by the regulations"; (ii) in sub-section (2), the words and figures "or section 16" shall be omitted;20(iii) in sub-section (3), for the words "one rupee", the words "such fee as may be specified by the regulations" shall be substituted24 in section 21 of the insurance act,—amendment of section 21(i) in sub-section (1), in clause (d), the words and figures ''or section 16'' shall be omitted;(ii) for sub-section (2), the following sub-section shall be substituted, namely:—25"(2) the securities appellate tribunal may, on the application of an insurer and after hearing the authority, cancel any order made by the authority under clause (d) of sub-section (1) or may direct the acceptance of such a return which the authority has declined to accept, if the insurer satisfies the tribunal that the action of the authority was in the circumstances unreasonable:30provided that no application under this sub-section shall be entertained unless it is made before the expiration of four months from the date when the authority made the order or declined to accept the return"25 in section 22 of the insurance act,—amendment of section 2235(i) in sub-section (1), the words, brackets, letter and figures"or an abstract of a valuation report furnished under clause (c) of sub-section (2) of section 16" shall be omitted;(ii) in sub-section (2), the words, brackets and figures "or, as the case may be, of sub-section (2) of section 16" shall be omitted4026 for sections 27, 27a, 27b, 27c and 27d of the insurance act, the following sections shall be substituted, namely:—substitution of new sections for sections 27, 27a, 27b, 27c and 27dinvestment of assets'27 (1) every insurer shall invest and at all times keep invested assets equivalent to not less than the sum of—(a) the amount of his liabilities to holders of life insurance policies in india on account of matured claims, and(b) the amount required to meet the liability on policies of life insurance maturing for payment in india, less—5(i) the amount of premiums which have fallen due to the insurer onsuch policies but have not been paid and the days of grace for payment of which have not expired, and10(ii) any amount due to the insurer for loans granted on and within the surrender values of policies of life insurance maturing for payment in india issued by him or by an insurer whose business he has acquired and in respect of which he has assumed liability in the following manner, namely:—15(a) twenty-five per cent of the said sum in governmentsecurities, a further sum equal to not less than twenty-five per cent of the said sum in government securities or other approved securities; and(b) the balance in any of the approved investments, as may be specified by the regulations subject to the limitations, conditions and restrictions specified therein20(2) in the case of an insurer carrying on general insurance business, twenty per cent of the assets in government securities, a further sum equal to not less than ten per cent of the assets in government securities or other approved securities and the balance in any other investment in accordance with the regulations of the authority and subject to such limitations, conditions and restrictions as may be specified by the authority in this regard25explanation—in this section, the term "assets" means all the assets of insurer at their carrying value but does not include any assets specifically held against any fund or portion thereof in respect of which the authority is satisfied that such fund or portion thereof, as the case may be, is regulated by the law of any country outside india or miscellaneous expenditure or in respect of which the authority is satisfied that it would not be in the interest of the insurer to apply the provisions of this section30(3) for the purposes of sub-sections (1) and (2), any specified assets shall, subject to such conditions, if any, as may be specified, be deemed to be assets invested or kept invested in approved investments specified by regulations35(4) in computing the assets referred to in sub-sections (1) and (2), any investment made with reference to any currency other than the indian rupee which is in excess of the amount required to meet the liabilities of the insurers in india with reference to that currency, to the extent of such excess, shall not be taken into account: provided that nothing contained in this sub-section shall affect the operation of sub-section (2):4045 provided further that the authority may, either generally or in any particularcase, direct that any investment shall, subject to such conditions as may be imposed, be taken into account, in such manner as may be specified in computing the assets referred to in sub-sections (1) and (2) and where any direction has been issued underthis proviso, copies thereof shall be laid before each house of parliament as soon as may be after it is issued50(5) where an insurer has accepted re-insurance in respect of any policies of life insurance issued by another insurer and maturing for payment in india or has ceded reinsurance to another insurer in respect of any such policies issued by himself, the sum referred to in sub-section (1) shall be increased by the amount of the liability involved in such acceptance and decreased by the amount of the liability involved in such cession(6) the government securities and other approved securities in which assets are under sub-section (1) or sub-section (2) to be invested and kept invested shall be held by the insurer free of any encumbrance, charge, hypothecation or lien510(7) the assets required by this section to be held invested by an insurer incorporated or domiciled outside india shall, except to the extent of any part thereof which consists of foreign assets held outside india, be held in india and all such assets shall be held in trust for the discharge of the liabilities of the nature referred to in subsection (1) and shall be vested in trustees resident in india and approved by the authority, and the instrument of trust under this sub-section shall be executed by the insurer with the approval of the authority and shall define the manner in which alone the subject-matter of the trust shall be dealt withexplanation—this sub-section shall apply to an insurer incorporated in india whose share capital to the extent of one-third is owned by, or the members of whose governing body to the extent of one-third consists of members domiciled elsewhere than in india15further provisions regarding investments27a (1) no insurer carrying on life insurance business shall invest or keep invested any part of his controlled fund and no insurer carrying on general business shall invest or keep invested any part of his assets otherwise than in any of the approved investments as may be specified by the regulations subject to such limitations, conditions and restrictions therein20(2) notwithstanding anything contained in sub-section (1) or sub-section (2) of section 27, an insurer may, subject to the provisions contained in the next succeeding sub-sections, invest or keep invested any part of his controlled fund or assets otherwise than in an approved investment, if—25(i) after such investment, the total amounts of all such investments of the insurer do not exceed fifteen per cent of the sum referred to in sub-section (1) of section 27 or fifteen per cent of the assets referred to in sub-section (2) as the case may be;30(ii) the investment is made, or, in the case of any investment already made, the continuance of such investment is with the consent of all the directors present at a meeting and eligible to vote, special notice of which has been given to all the directors then in india, and all such investments, including investments in which any director is interested, are reported without delay to the authority with full details of the investments and the extent of the director's interest in any such investment35(3) an insurer shall not out of his controlled fund or assets as referred to in section 27,—(a) invest in the shares of any one banking company; or (b) invest in the shares or debentures of any one company, more than the percentage specified by the regulations40(4) an insurer shall not out of his controlled fund or assets as referred to in sub-section (2) of section 27 invest or keep invested in the shares or debentures of any private limited company45(5) all assets forming the controlled fund or assets as referred to in sub-section (2), of section 27, not being government securities or other approved securities in which assets are to be invested or held invested in accordance with this section, shall (except for a part thereof not exceeding one-tenth of the controlled fund or assets as referred to in sub-section (2) thereof in value which may, subject to such conditions and restrictions as may be prescribed, be offered as security for any loan taken for purposes of any investment), be held free of any encumbrance, charge, hypothecation or lien5(6) if at any time the authority considers any one or more of the investments of an insurer to be unsuitable or undesirable, the authority may, after giving the insurer an opportunity of being heard, direct him to realise the investment or investments, and the insurer shall comply with the direction within such time as may be specified in this behalf by the authority10(7) nothing contained in this section shall be deemed to affect in any way the manner in which any moneys relating to the provident fund of any employee or to any security taken from any employee or other moneys of a like nature are required to be held by or under any central act, or act of a state legislatureexplanation—in this section "controlled fund" means—(a) in the case of any insurer carrying on life insurance business—(i) all his funds, if he carries on no other class of insurance business;15(ii) all the funds in india appertaining to his life insurance businessif he carries on some other class of insurance business also20explanation—for the purposes of sub-clauses (i) and (ii), the fund does not include any fund or portion thereof in respect of which the authority is satisfied that such fund or portion, as the case may be, is regulated by the law in force of any country outside india or it would not be in the interest of the insurer to apply the provisions of this section;(b) in the case of any other insurer carrying on life insurance business—(i) all his funds in india, if he carries on no other class of insurancebusiness;25 30(ii) all the funds in india appertaining to his life insurance businessif he carries on some other class of insurance business also; but does not include any fund or portion thereof in respect of which the authority is satisfied that such fund or portion thereof, as the case may be, is regulated by the law of any country outside india or in respect of which the authority is satisfied that it would not be in the interest of the insurer to apply theprovisions of this section27b (1) all assets of an insurer carrying on general insurance business shall, subject to such conditions, if any, as may be prescribed, be deemed to be assets invested or kept invested in approved investments specified in section 2735provisions regarding investments of assets of insurer carrying general insurance business40(2) all assets shall (except for a part thereof not exceeding one-tenth of the totalassets in value which may subject to such conditions and restrictions as may be prescribed, be offered as security for any loan taken for purposes of any investment or for payment of claims, or which may be kept as security deposit with the banks for acceptance of policies) be held free of any encumbrance, charge, hypothecation or lien4562 of 1968(3) without prejudice to the powers conferred on the authority by sub-section(5) of section 27a nothing contained in this section shall be deemed to require any insurer to realise any investment made in conformity with the previsions of subsection (1) of section 27 after the commencement of the insurance (amendment) act,1968, which, after the making thereof, has ceased to be an approved investment within the meaning of this section27c an insurer may invest not more than five per cent in aggregate of his controlled fund or assets as referred to in sub-section (2) of section 27 in the companiesinvestment by insurer in certain casesbelonging to the promoters, subject to such conditions as may be specified by the regulationsmanner and condition of investment527d (1) without prejudice to anything contained in this section, the authoritymay, in the interests of the policyholders, specify by the regulations, the time, manner and other conditions of investment of assets to be held by an insurer for the purposes of this act1041 of 1999(2) the authority may give specific directions for the time, manner and other conditions subject to which the funds of policyholders shall be invested in the infrastructure and social sector as may be specified by the regulations and such regulations shall apply uniformly to all the insurers carrying on the business of life insurance, general insurance, or health insurance or re-insurance in india on or after the commencement of the insurance regulatory and development authority act, 199915(3) the authority may, after taking into account the nature of business and to protect the interests of the policyholders, issue to an insurer the directions relating to the time, manner and other conditions of investment of assets to be held by him:provided that no direction under this sub-section shall be issued unless the insurer concerned has been given a reasonable opportunity of being heard27e no insurer shall directly or indirectly invest outside india the funds of the policy holders"prohibition for investment of funds outside india2027 for section 28, section 28a and section 28b of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 28, section 28a and section 28b"28 every insurer shall submit to the authority returns giving details of investments made, in such form, time and manner including its authentication as may be specified by the regulations"2528 for section 29 of the insurance act, the following section shall be substituted, namely:—statement and return of investment of assets substitution of new section for section 29 prohibition of loans30"29 (1) no insurer shall grant loans or temporary advances either on hypothecation of property or on personal security or otherwise, except loans on life insurance policies issued by him within their surrender value, to any director, manager, actuary, auditor or officer of the insurer, if a company or to any other company or firm in which any such director, manager, actuary or officer holds the position of a director, manager, actuary, officer or partner:provided that nothing contained in this sub-section shall apply to such loans, made by an insurer to a banking company, as may be specified by the authority:35provided further that nothing in this section shall prohibit a company from granting such loans or advances to a subsidiary company or to any other company of which the company granting the loan or advance is a subsidiary company if the previous approval of the authority is obtained for such loan or advance18 of 201340(2) the provisions of section 185 of the companies act, 2013 shall not apply to a loan granted to a director of an insurer being a company, if the loan is one granted on the security of a policy on which the insurer bears the risk and the policy was issued to the director on his own life, and the loan is within the surrender value of the policy(3) subject to the provisions of sub-section (1), no insurer shall grant—5(a) any loans or temporary advances either on hypothecation of propertyor on personal security or otherwise, except such loans as may be specified by the regulations including the loans sanctioned as part of their salary package to the fulltime employees of the insurer as per the scheme duly approved by its board of directors;(b) temporary advances to any insurance agent to facilitate the carryingout of his functions as such except in cases where such advances do not exceed in the aggregate the renewal commission earned by him during the immediately preceding year10(4) where any event occurs giving rise to circumstances, the existence of whichat the time of grant of any subsisting loan or advance would have made such grant a contravention of this section, such loan or advance shall, notwithstanding anything in any contract to the contrary, be repaid within three months from the occurrence of such event15(5) in case of default in complying with the provisions of sub-section (4), thedirector, manager, auditor, actuary, officer or insurance agent concerned shall, withoutprejudice to any other penalty which he may incur, cease to hold office under, or to act for, the insurer granting the loan on the expiry of three months"29 for section 30 of the insurance act, the following section shall be substituted, namely:—20substitution of new section for section 30"30 if by reason of a contravention of any of the provisions of section 27, 27a,27b, 27c, 27d or section 29, any loss is sustained by the insurer or by the policyholders, every director, manager or officer who is knowingly a party to such contravention shall, without prejudice to any other penalty to which he may be liable under this act, be jointly and severally liable to make good the amount of such loss"25liability of directors, etc, for loss due to contravention of section 27, 27a, 27b, 27c, 27d or section 29 amendment of section 3130 in section 31 of the insurance act, for sub-section (1), the following sub-section shall be substituted, namely:—30"(1) none of the assets in india of any insurer shall, except in so far as assets arerequired to be vested in trustees under sub-section (7) of section 27, be kept otherwise than in the name of a public officer approved by the authority, or in the corporate nameof the undertaking, if a company or an insurance co-operative society, as the case may be"31 in section 31a of the insurance act,—(a) in sub-section (1), in clause (c)—-amendment of section 31a35(i) for sub-clauses (i) and (ii) to the proviso, the following sub-clauseshall be substituted, namely:—"(i) the payment of commission to an insurance agent, in respect ofinsurance business procured by or through him;"; (ii) clause (iii) to the proviso shall be omitted;407 of 1913(b) in sub-section (3), for the words, figures and letter "or in section 86b of theindian companies act, 1913", the words "or in any other law for the time being in force" shall be substituted32 for section 31b of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 31b45"31b no insurer shall in respect of insurance business transacted by him, shallpay to any person by way of remuneration, whether by way of commission or otherwise in excess of such sum as may be specified by the regulations" power to restrict payment of excessive remuneration33 section 32 of the insurance act shall be omittedomission of section 3234 in section 32a of the insurance act,—amendment of section 32a(i) in sub-section (1), the words, brackets, letter and figures ''specified in subclause (b) of clause (9) of section 2 and,'' shall be omitted;5(ii) sub-sections (2) and (3) shall be omitted35 in section 32b of the insurance act, for the words "rural or social sector", the words "rural and social sectors" shall be substituted36 after section 32c of the insurance act, the following section shall be inserted, namely:—amendment of section 32b insertion of new section 32d10"32d every insurer carrying on general insurance business shall, after the commencement of the insurance laws (amendment) act, 2015, underwrite such minimum percentage of insurance business in third party risks of motor vehicles as may be specified by the regulations:15obligation ofinsurer in respect of insurance business in third party risks of motor vehiclesprovided that the authority may, by regulations, exempt any insurer who is primarily engaged in the business of health, re-insurance, agriculture, export credit guarantee, from the application of this section"37 for section 33 of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 3320power of investigation and inspection by authority"33 (1) the authority may, at any time, if it considers expedient to do so by order in writing, direct any person (herein referred to as "investigating officer") specified in the order to investigate the affairs of any insurer or intermediary or insurance intermediary, as the case may be, and to report to the authority on any investigation made by such investigating officer:25provided that the investigating officer may, wherever necessary, employ any auditor or actuary or both for the purpose of assisting him in any investigation under this section18 of 201330(2) notwithstanding anything to the contrary contained in section 210 of the companies act, 2013, the investigating officer may, at any time, and shall, on being directed so to do by the authority, cause an inspection to be made by one or more of his officers of the books of account of any insurer or intermediary or insurance intermediary, as the case may be, and the investigating officer shall supply to the insurer or intermediary or insurance intermediary, as the case may be, a copy of the report on such inspection35 40(3) it shall be the duty of every manager, managing director or other officer of the insurer including a service provider, contractor of an insurer where services are outsourced by the insurer, or intermediary or insurance intermediary, as the case may be, to produce before the investigating officer directed to make the investigation under sub-section (1), or inspection under sub-section (2), all such books of account, registers, other documents and the database in his custody or power and to furnish him with any statement and information relating to the affairs of the insurer or intermediary or insurance intermediary, as the case may be, as the investigating officer may require of him within such time as the said investigating officer may specify45(4) any investigating officer, directed to make an investigation under subsection (1), or inspection under sub-section (2), may examine on oath, any manager, managing director or other officer of the insurer including a service provider or contractor where the services are outsourced by the insurer or intermediary or insurance intermediary, as the case may be, in relation to his business(5) the investigating officer shall, if he has been directed by the authority to cause an inspection to be made, make a report to the authority on such inspection5(6) on receipt of any report under sub-section (1) or sub-section (5), the authority may, after giving such opportunity to the insurer or intermediary or insurance intermediary, as the case may be, to make a representation in connection with the report as, in the opinion of the authority, seems reasonable, by order in writing, —(a) require the insurer, to take such action in respect of any matter arisingout of the report as the authority may think fit; or(b) cancel the registration of the insurer or intermediary or insuranceintermediary, as the case may be; or10(c) direct any person to apply to the court for the winding up of the insureror intermediary or insurance intermediary, as the case may be, if it is a company, whether the registration of the insurer or intermediary or insurance intermediary, as the case may be, has been cancelled under clause (b) or not15 20(7) the authority may by the regulations made by it specify the minimuminformation to be maintained by insurers or intermediary or insurance intermediary, as the case may be, in their books, the manner in which such information shall be maintained, the checks and other verifications to be adopted by insurers or intermediary or insurance intermediary, as the case may be, in that connection and all other matters incidental thereto as are, in its opinion, necessary to enable the investigating officer to discharge satisfactorily his functions under this sectionexplanation—for the purposes of this section, the expression "insurer" shall include in the case of an insurer incorporated in india—(a) all its subsidiaries formed for the purpose of carrying on the businessof insurance exclusively outside india; and(b) all its branches whether situated in india or outside india25(8) any insurer or intermediary or insurance intermediary aggrieved by any order made under this section may prefer an appeal to the securities appellate tribunal30(9) all expenses of, and incidental to, any investigation made under this section shall be defrayed by the insurer or intermediary or insurance intermediary, as the case may be, shall have priority over the debts due from the insurer and shall be recoverable as an arrear of land revenue"38 in section 34b of the insurance act, for sub-section (4), the following sub-section shall be substituted, namely:—amendment of section 34b35"(4) if any person in respect of whom an order is made by the authority undersub-section (1) or under the proviso to sub-section (2), contravenes the provisions of this section, he shall be liable to a penalty of one lakh rupees for each day during which such contravention continues or one crore rupees, whichever is less"39 in section 34c of the insurance act, for sub-section (1), the following sub-section shall be substituted, namely:—amendment of section 34c40"(1) if the authority is of opinion that in the public interest or in the interest ofan insurer or his policyholders it is necessary so to do, it may, from time to time, by order in writing, appoint, in consultation with the central government with effect from such date as may be specified in the order, one or more persons to hold office as additional directors of the insurer:45provided that the number of additional directors so appointed shall not, at anytime, exceed five or one-third of the maximum strength fixed for the board by the articles of association of the insurer, whichever is less"40 section 34g of the insurance act shall be omittedomission of section 34g41 in section 34h of the insurance act,—amendment of section 34h(i) in sub-section (1), for the words "an officer authorised by the authority", the words "a deputy director or an equivalent officer" shall be substituted;5(ii) in sub-sections (7) and (8), for the words "central government", the words"securities appellate tribunal" shall be substituted42 in section 35 of the insurance act,—amendment of section 35(i) for sub-section (1), the following sub-section shall be substituted, namely:—10"(1) notwithstanding anything contained in any other law for the time being in force, no insurance business of an insurer shall be transferred to or amalgamated with the insurance business of any other insurer except in accordance with a scheme prepared under this section and approved by the authority";15(ii) in sub-section (3), for clauses (b) and (c), the following clauses shall be substituted, namely :—"(b) balance sheets in respect of the insurance business of each of the insurers concerned in such amalgamation or transfer, prepared in such forms as may be specified by the regulations;20(c) actuarial reports and abstracts in respect of the life insurance business of each of the insurers so concerned, prepared in conformity with the regulations specified in this regard"43 for section 36 of the insurance act, the following section shall be substituted, namely:—25substitution of new section for section 36 sanction of amalgamation and transfer by authority30"36 when any application under sub-section (3) of section 35 is made to the authority, the authority shall cause, a notice of the application to be given to the holders of any kind of policy of insurer concerned alongwith statement of the nature and terms of the amalgamation or transfer, as the case may be, to be published in such manner and for such period as it may direct, and, after hearing the directors and considering the objections of the policyholders and any other persons whom it considers entitled to be heard, may approve the arrangement, and shall make such consequential orders as are necessary to give effect to the arrangement"44 in section 37a of the insurance act, for sub-section (4), the following sub-sections shall be substituted, namely:—amendment of section 37a35"(4) the scheme shall thereafter be placed before the central government for itssanction and the central government may sanction the scheme without any modification or with such modifications as it may consider necessary, and the scheme as sanctioned by the central government shall come into force on such date as the central government may notify in this behalf in the official gazette:provided that different dates may be specified for different provisions of thescheme40(4a) every policyholder or shareholder or member of each of the insurers, before amalgamation, shall have the same interest in, or rights against the insurer resulting from amalgamation as he had in the company of which he was originally a policyholder or shareholder or member:45provided that where the interests or rights of any shareholder or member are lessthan his interest in, or rights against, the original insurer, he shall be entitled to compensation, which shall be assessed by the authority in such manner as may be specified by the regulations(4b) the compensation so assessed shall be paid to the shareholder or member by the insurance company resulting from such amalgamation5(4c) any member or shareholder aggrieved by the assessment of compensation made by the authority under sub-section (4a) may within thirty days from the publication of such assessment prefer an appeal to the securities appellate tribunal"45 for sections 38, 39 and 40 of the insurance act, the following sections shall be substituted, namely:—substitution of new sections for sections 38, 39 and 4010assignment and transfer of insurancepolicies"38 (1) a transfer or assignment of a policy of insurance, wholly or in part, whether with or without consideration, may be made only by an endorsement upon the policy itself or by a separate instrument, signed in either case by the transferor or by the assignor or his duly authorised agent and attested by at least one witness, specifically setting forth the fact of transfer or assignment and the reasons thereof, the antecedents of the assignee and the terms on which the assignment is made15 20(2) an insurer may, accept the transfer or assignment, or decline to act upon any endorsement made under sub-section (1), where it has sufficient reason to believe that such transfer or assignment is not bona fide or is not in the interest of the policyholder or in public interest or is for the purpose of trading of insurance policy(3) the insurer shall, before refusing to act upon the endorsement, record in writing the reasons for such refusal and communicate the same to the policyholder not later than thirty days from the date of the policyholder giving notice of such transfer or assignment25 30(4) any person aggrieved by the decision of an insurer to decline to act upon such transfer or assignment may within a period of thirty days from the date of receipt of the communication from the insurer containing reasons for such refusal, prefer a claim to the authority(5) subject to the provisions in sub-section (2), the transfer or assignment shall be complete and effectual upon the execution of such endorsement or instrument duly attested but except, where the transfer or assignment is in favour of the insurer, shall not be operative as against an insurer, and shall not confer upon the transferee or assignee, or his legal representative, any right to sue for the amount of such policy or the moneys secured thereby until a notice in writing of the transfer or assignment and either the said endorsement or instrument itself or a copy thereof certified to be correct by both transferor and transferee or their duly authorised agents have been delivered to the insurer:35 40provided that where the insurer maintains one or more places of business in india, such notice shall be delivered only at the place where the policy is being serviced(6) the date on which the notice referred to in sub-section (5) is delivered to the insurer shall regulate the priority of all claims under a transfer or assignment as between persons interested in the policy; and where there is more than one instrument of transfer or assignment the priority of the claims under such instruments shall be governed by the order in which the notices referred to in sub-section (5) are delivered:45provided that if any dispute as to priority of payment arises as between assignees, the dispute shall be referred to the authority(7) upon the receipt of the notice referred to in sub-section (5), the insurer shall record the fact of such transfer or assignment together with the date thereof and the name of the transferee or the assignee and shall, on the request of the person by whom the notice was given, or of the transferee or assignee, on payment of such fee as may be specified by the regulations, grant a written acknowledgement of the receipt of such notice; and any such acknowledgement shall be conclusive evidence against the insurer that he has duly received the notice to which such acknowledgment relates505(8) subject to the terms and conditions of the transfer or assignment, the insurer shall, from the date of the receipt of the notice referred to in sub-section (5), recognise the transferee or assignee named in the notice as the absolute transferee or assignee entitled to benefit under the policy, and such person shall be subject to all liabilities and equities to which the transferor or assignor was subject at the date of the transfer or assignment and may institute any proceedings in relation to the policy, obtain a loan under the policy or surrender the policy without obtaining the consent of the transferor or assignor or making him a party to such proceedings10explanation—except where the endorsement referred to in sub-section (1)expressly indicates that the assignment or transfer is conditional in terms of subsection (10) hereunder, every assignment or transfer shall be deemed to be an absolute assignment or transfer and the assignee or transferee, as the case may be, shall be deemed to be the absolute assignee or transferee respectively15(9) any rights and remedies of an assignee or transferee of a policy of life insurance under an assignment or transfer effected prior to the commencement of the insurance laws (amendment) act, 2015 shall not be affected by the provisions of this section(10) notwithstanding any law or custom having the force of law to the contrary, an assignment in favour of a person made upon the condition that —20(a) the proceeds under the policy shall become payable to the policyholderor the nominee or nominees in the event of either the assignee or transferee predeceasing the insured; or(b) the insured surviving the term of the policy, shall be valid:25provided that a conditional assignee shall not be entitled to obtain a loanon the policy or surrender a policy(11) in the case of the partial assignment or transfer of a policy of insurance under sub-section (1), the liability of the insurer shall be limited to the amount secured by partial assignment or transfer and such policyholder shall not be entitled to further assign or transfer the residual amount payable under the same policy| 30 ||-----------------------------------------------------------------------------------------|| by || policyholder || 39 || ( || 1 || ) the holder of a policy of life insurance on his own life may, when effecting || the policy or at any time before the policy matures for payment, nominate the person or || persons to whom the money secured by the policy shall be paid in the event of his || death: || 35 |provided that, where any nominee is a minor, it shall be lawful for the policyholder to appoint any person in the manner laid down by the insurer, to receive the money secured by the policy in the event of his death during the minority of the nominee40 45(2) any such nomination in order to be effectual shall, unless it is incorporated in the text of the policy itself, be made by an endorsement on the policy communicated to the insurer and registered by him in the records relating to the policy and any such nomination may at any time before the policy matures for payment be cancelled or changed by an endorsement or a further endorsement or a will, as the case may be, but unless notice in writing of any such cancellation or change has been delivered to the insurer, the insurer shall not be liable for any payment under the policy made bona fide by him to a nominee mentioned in the text of the policy or registered in records of the insurer(3) the insurer shall furnish to the policyholder a written acknowledgment of having registered a nomination or a cancellation or change thereof, and may charge such fee as may be specified by regulations for registering such cancellation or change45(4) a transfer or assignment of a policy made in accordance with section 38 shall automatically cancel a nomination:provided that the assignment of a policy to the insurer who bears the risk on the policy at the time of the assignment, in consideration of a loan granted by that insurer on the security of the policy within its surrender value, or its reassignment on repayment of the loan shall not cancel a nomination, but shall affect the rights of the nominee only to the extent of the insurer's interest in the policy:5provided further that the transfer or assignment of a policy, whether wholly or in part, in consideration of a loan advanced by the transferee or assignee to the policyholder, shall not cancel the nomination but shall affect the rights of the nominee only to the extent of the interest of the transferee or assignee, as the case may be, in the policy:10provided also that the nomination, which has been automatically cancelled consequent upon the transfer or assignment, the same nomination shall stand automatically revived when the policy is reassigned by the assignee or retransferred by the transferee in favour of the policyholder on repayment of loan other than on a security of policy to the insurer15(5) where the policy matures for payment during the lifetime of the person whose life is insured or where the nominee or, if there are more nominees than one, all the nominees die before the policy matures for payment, the amount secured by the policy shall be payable to the policyholder or his heirs or legal representatives or the holder of a succession certificate, as the case may be20(6) where the nominee or if there are more nominees than one, a nominee or nominees survive the person whose life is insured, the amount secured by the policy shall be payable to such survivor or survivors25(7) subject to the other provisions of this section, where the holder of a policy of insurance on his own life nominates his parents, or his spouse, or his children, or his spouse and children, or any of them, the nominee or nominees shall be beneficially entitled to the amount payable by the insurer to him or them under sub-section (6)unless it is proved that the holder of the policy, having regard to the nature of his title to the policy, could not have conferred any such beneficial title on the nominee30 35(8) subject as aforesaid, where the nominee, or if there are more nominees than one, a nominee or nominees, to whom sub-section (7) applies, die after the person whose life is insured but before the amount secured by the policy is paid, the amount secured by the policy, or so much of the amount secured by the policy as represents the share of the nominee or nominees so dying (as the case may be), shall be payable to the heirs or legal representatives of the nominee or nominees or the holder of a succession certificate, as the case may be, and they shall be beneficially entitled to such amount(9) nothing in sub-sections (7) and (8) shall operate to destroy or impede theright of any creditor to be paid out of the proceeds of any policy of life insurance40(10) the provisions of sub-sections (7) and (8) shall apply to all policies of lifeinsurance maturing for payment after the commencement of the insurance laws (amendment) act, 201545(11) where a policyholder dies after the maturity of the policy but the proceedsand benefit of his policy has not been made to him because of his death, in such a case, his nominee shall be entitled to the proceeds and benefit of his policy3 of 1874(12) the provisions of this section shall not apply to any policy of life insuranceto which section 6 of the married women's property act, 1874, applies or has at any time applied:50provided that where a nomination made whether before or after the commencementof the insurance laws (amendment) act, 2015, in favour of the wife of the person who has insured his life or of his wife and children or any of them is expressed, whether or not on the face of the policy, as being made under this section, the said section 6 shall be deemed not to apply or not to have applied to the policy40 (1) no person shall, pay or contract to pay any remuneration or reward, whether by way of commission or otherwise for soliciting or procuring insurance business in india to any person except an insurance agent or an intermediary or insurance intermediary in such manner as may be specified by the regulations5prohibition of payment by way of commission or otherwise for procuring business(2) no insurance agent or intermediary or insurance intermediary shall receive or contract to receive commission or remuneration in any form in respect of policies issued in india, by an insurer in any form in respect of policies issued in india, by an insurer except in accordance with the regulations specified in this regard:10provided that the authority, while making regulations under sub-sections (1)and (2), shall take into consideration the nature and tenure of the policy and in particular the interest of the agents and other intermediaries concerned15(3) without prejudice to the provisions of section 102 in respect of a contravention of any of the provisions of the preceding sub-sections or the regulations framed in this regard, by an insurer, any insurance agent or intermediary or insurance intermediary who contravenes the said provisions shall be liable to a penalty which may extend to one lakh rupees ''46 section 40a of the insurance act shall be omittedomission of section 40a47 for sections 40b and 40c of the insurance act, the following sections shall be substituted, namely:—substitution of new sections for sections 40b and 40c20"40b no insurer shall, in respect of insurance business transacted by him in india, spend as expenses of management in any financial year any amount exceeding the amount as may be specified by the regulations made under this act;2540c every insurer transacting insurance business in india shall furnish to the authority, the details of expenses of management in such manner and form as may be specified by the regulations made under this act"limitation of expenses of management in life insurance businesslimitation of expenses of management in general, health insurance and re-insurance businessamendment of section 4148 in section 41 of the insurance act, for sub-section (2), the following sub-section shall be substituted, namely:—"(2) any person making default in complying with the provisions of this section shall be liable for a penalty which may extend to ten lakh rupees"3049 for section 42 of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 42"42 (1) an insurer may appoint any person to act as insurance agent for the purpose of soliciting and procuring insurance business:appointment of insurance agentsprovided that such person does not suffer from any of the disqualifications mentioned in sub-section (3)35(2) no person shall act as an insurance agent for more than one life insurer, one general insurer, one health insurer and one of each of the other mono-line insurers:40provided that the authority shall, while framing regulations, ensure that no conflict of interest is allowed to arise for any agent in representing two or more insurers for whom he may be an agent(3) the disqualifications referred to in the proviso to sub-section (1) shall be the following:—(a) that the person is a minor; (b) that he is found to be of unsound mind by a court of competentjurisdiction;5(c) that he has been found guilty of criminal misappropriation or criminalbreach of trust or cheating or forgery or an abetment of or attempt to commit any such offence by a court of competent jurisdiction:provided that where at least five years have elapsed since the completion of the sentence imposed on any person in respect of any such offence, the authority shall ordinarily declare in respect of such person that his conviction shall cease to operate as a disqualification under this clause;10 15 (d) that in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurer or in the course of an investigation of the affairs of an insurer it has been found that he has been guilty of or has knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or insured;(e) that in the case of an individual, who does not possess the requisitequalifications or practical training or passed the examination, as may be specified by the regulations;20(f) that in the case of a company or firm making, a director or a partner or one or more of its officers or other employees so designated by it and in the case of any other person the chief executive, by whatever name called, or one or more of his employees designated by him, do not possess the requisite qualifications or practical training and have not passed such an examination as required under clauses (e) and (g);25(g) that he has not passed such examination as may be specified by theregulations;(h) that he has violated the code of conduct as may be specified by theregulations30(4) any person who acts as an insurance agent in contravention of the provision of this act, shall be liable to a penalty which may extend to ten thousand rupees and any insurer or any person acting on behalf of an insurer, who appoints any person as an insurance agent not permitted to act as such or transacts any insurance business in india through any such person shall be liable to penalty which may extend to one crore rupees35(5) the insurer shall be responsible for all the acts and omissions of its agents including violation of code of conduct specified under clause (h) of sub-section (3) and liable to a penalty which may extend to one crore rupees" 50 for sections 42a, 42b and 42c of the insurance act, the following sections shall be substituted, namely:—substitution of new section for sections 42a, 42b and 42c40'42a (1) no insurer shall, on or after the commencement of the insurance laws(amendment) act, 2015, appoint any principal agent, chief agent, and special agent and transact any insurance business in india through them45(2) no person shall allow or offer to allow, either directly or indirectly, as aninducement to any person to take out or renew or continue an insurance policy through multilevel marketing schemeprohibition of insurance business through principal agent, special agent and multilevel marketing(3) the authority may, through an officer authorised in this behalf, make acomplaint to the appropriate police authorities against the entity or persons involved in the multilevel marketing scheme5explanation—for the purpose of this section "multilevel marketing scheme"means any scheme or programme or arrangement or plan (by whatever name called) for the purpose of soliciting and procuring insurance business through persons not authorised for the said purpose with or without consideration of whole or part of commission or remuneration earned through such solicitation and procurement and includes enrolment of persons into a multilevel chain for the said purpose either directly or indirectly'51 in section 42d of the insurance act,—amendment of section 42d(i) for the words "licence" and "licence issued", wherever they occur, the words"registration" and "registration made", shall respectively be substituted;10(ii) in sub-section (1), in clause (a) of the proviso, for the word, brackets and figure "sub-section (4)", the word, brackets and figure "sub-section (3)" shall be substituted;(iii) in sub-section (3),—15(a) after the words "directors or partners", the words "or one or more of its officers or other employees so designated by it and in the case of any other person, the chief executive by whatever name called, or one or more of his employees designated by him" shall be inserted;20(b) for the words, brackets, letters and figures "in clauses (b), (c), (d), (e)and (f) of sub-section (4) of section 42", the words, brackets, letters and figures " in clauses (b), (c), (d), (e) and (g) of sub-section (3) of section 42" shall be substituted; (iv) for sub-sections (8) and (9), the following sub-sections, shall be substituted, namely:—25 30"(8) any person who acts as an intermediary or an insurance intermediary without being registered under this section to act as such, shall be liable to a penalty which may extend to ten lakh rupees and any person who appoints as an intermediary or an insurance intermediary or any person not registered to act as such or transacts any insurance business in india through any such person, shall be liable to a penalty which may extend to one crore rupees35(9) where the person contravening sub-section (8) is a company or a firm, then, without prejudice to any other proceedings which may be taken against the company or firm, every director, manager, secretary or other officer of the company, and every partner of the firm who is knowingly a party to such contravention shall be liable to a penalty which may extend to ten lakh rupees"52 for section 42e of the insurance act, the following section shall be substituted, namely:—40"42e without prejudice to the provisions contained in this act, the authority may, by regulations made in this behalf, specify the requirements of capital, form of business and other conditions, to act as an intermediary or an insurance intermediary"substitution of new section for section 42e condition for intermediary or insurance intermediary53 for section 43 of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 43record of insurance agents45"43 (1) every insurer and every person who, acting on behalf of an insurer employs insurance agents shall maintain a record showing the name and address of every insurance agent appointed by him and the date on which his appointment began and the date, if any, on which his appointment ceased (2) the record prepared by the insurer under sub-section (1), shall be maintained as long as the insurance agent is in service and for a period of five years after the cessation of appointment"54 section 44 of the insurance act shall be omittedomission of section 4455 for sections 44a and 45 of the insurance act, the following sections shall be substituted, namely:—substitution of new sections for sections 44a and 45'44a for the purposes of ensuring compliance with the provisions of sections40, 40b and 40c, the authority may, by notice—5power to call for information(a) require from an insurer such information, certified if so required by anauditor or actuary, as it may consider necessary;10(b) require an insurer to submit for its examination at the principal place ofbusiness of the insurer in india, any books of account, register or other document, or to supply any statement which may be specified in the notice;(c) examine any officer of an insurer on oath, in relation to any suchinformation, book, register, document or statement and the insurer, shall comply with any such requirement within such time as may be specified in the notice1545 (1) no policy of life insurance shall be called in question on any groundwhatsoever after the expiry of three years from the date of the policy, ie, from the date of issuance of the policy or the date of commencement of risk or the date of revival of the policy or the date of the rider to the policy, whichever is laterpolicy not be called in question on ground of misstatement after three years20(2) a policy of life insurance may be called in question at any time within threeyears from the date of issuance of the policy or the date of commencement of risk or the date of revival of the policy or the date of the rider to the policy, whichever is later, on the ground of fraud:provided that the insurer shall have to communicate in writing to the insured or the legal representatives or nominees or assignees of the insured the grounds and materials on which such decision is based25explanation i—for the purposes of this sub-section, the expression "fraud"means any of the following acts committed by the insured or by his agent, with intent to deceive the insurer or to induce the insurer to issue a life insurance policy:—(a) the suggestion, as a fact of that which is not true and which the insureddoes not believe to be true;30(b) the active concealment of a fact by the insured having knowledge orbelief of the fact;(c) any other act fitted to deceive; and(d) any such act or omission as the law specially declares to be fraudulent35explanation ii—mere silence as to facts likely to affect the assessment of the risk by the insurer is not fraud, unless the circumstances of the case are such that regard being had to them, it is the duty of the insured or his agent keeping silence, to speak, or unless his silence is, in itself, equivalent to speak40(3) notwithstanding anything contained in sub-section (2), no insurer shall repudiate a life insurance policy on the ground of fraud if the insured can prove that the misstatement of or suppression of a material fact was true to the best of his knowledge and belief or that there was no deliberate intention to suppress the fact or that such misstatement of or suppression of a material fact are within the knowledge of the insurer:45provided that in case of fraud, the onus of disproving lies upon the beneficiaries, in case the policyholder is not aliveexplanation—a person who solicits and negotiates a contract of insurance shall be deemed for the purpose of the formation of the contract, to be the agent of the insurer5(4) a policy of life insurance may be called in question at any time within three years from the date of issuance of the policy or the date of commencement of risk or the date of revival of the policy or the date of the rider to the policy, whichever is later, on the ground that any statement of or suppression of a fact material to the expectancy of the life of the insured was incorrectly made in the proposal or other document on the basis of which the policy was issued or revived or rider issued:10provided that the insurer shall have to communicate in writing to the insured or the legal representatives or nominees or assignees of the insured the grounds and materials on which such decision to repudiate the policy of life insurance is based:15provided further that in case of repudiation of the policy on the ground of misstatement or suppression of a material fact, and not on the ground of fraud, the premiums collected on the policy till the date of repudiation shall be paid to the insured or the legal representatives or nominees or assignees of the insured within a period of ninety days from the date of such repudiation20explanation—for the purposes of this sub-section, the mis-statement of or suppression of fact shall not be considered material unless it has a direct bearing on the risk undertaken by the insurer, the onus is on the insurer to show that had the insurer been aware of the said fact no life insurance policy would have been issued to the insured25(5) nothing in this section shall prevent the insurer from calling for proof of age at any time if he is entitled to do so, and no policy shall be deemed to be called in question merely because the terms of the policy are adjusted on subsequent proof that the age of the life insured was incorrectly stated in the proposal'56 sections 47a and 48 of the insurance act shall be omittedomission of sections 47a and 4857 for section 48a of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 48a30"48a no insurance agent or intermediary or insurance intermediary shall be eligible to be or remain a director in insurance company:35provided that any director holding office at the commencement of the insurance laws (amendment) act, 2015 shall not become ineligible to remain a director by reason of this section until the expiry of six months from the date of commencement of the said act:insurance agent or intermediary or insurance intermediary not to be director in insurance companyprovided further that the authority may permit an agent or intermediary or insurance intermediary to be on the board of an insurance company subject to such conditions or restrictions as it may impose to protect the interest of policyholders or to avoid conflict of interest"58 in section 49 of the insurance act, in sub-section (1),—40amendment of section 49(i) the words, brackets, letters and figures "being an insurer specified in subclause (a) (ii) or sub-clause (b) of clause (9) of section 2" shall be omitted;(ii) the words and figures "or to the central government under section 11 of the indian life insurance companies act, 1912" shall be omitted7 of 191259 for sections 52 and 52a of the insurance act, the following sections shall be substituted, namely:—substitution of new sections for sections 52 and 52a5prohibition of business on dividing principle"52 no insurer shall commence any business upon the dividing principle, that is to say, on the principle that the benefit secured by a policy is not fixed but depends either wholly or partly on the result of a distribution of certain sums amongst policies becoming claims within certain time-limits, or on the principle that the premiums payable by a policyholder depend wholly or partly on the number of policies becoming claims within certain time-limits:10provided that nothing in this section shall be deemed to prevent an insurer fromallocating bonuses to holders of policies of life insurance as a result of a periodical actuarial valuation either as reversionary additions to the sums insured or as immediate cash bonuses or otherwise1552a (1) if at any time the authority has reason to believe that an insurer carrying on life insurance business is acting in a manner likely to be prejudicial to the interests of holders of life insurance policies, it may, after giving such opportunity to the insurer to be heard appoint an administrator to manage the affairs of the insurer under the direction and control of the authoritywhen administrator for management of insurance business may be appointed20(2) the administrator shall receive such remuneration as the authority may direct and the authority may at any time cancel the appointment and appoint some other person as administrator"60 in section 52bb of the insurance act,—amendment of section 52bb(a) in sub-section (2), for the words "the central government and the central government", the words "the securities appellate tribunal and the securities appellate tribunal" shall be substituted;25(b) in sub-section (3), for the words "central government", the words "securities appellate tribunal" shall be substituted;(c) in sub-section (10), in clause (a), the words "or the central government"shall be omitted3061 for section 52d of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 52d termination of appointment of administrator35"52d if at any time, it appears to the authority that the purpose of the order appointing the administrator has been fulfilled or that, for any reason, it is undesirable that the order of appointment should remain in force, the authority may cancel the order and thereupon the administrator shall be divested of the management of the insurance business which shall, unless otherwise directed by the authority, again vest in the person in whom it was vested immediately prior to the appointment of the administrator or any other person appointed by the insurer in this behalf"62 in section 52e of the insurance act, for the words "central government", the word"authority" shall be substituted40amendment of section 52e amendment of section 52f63 in section 52f of the insurance act, for the words "punishable with imprisonment which may extend to six months, or with fine which may extend to one thousand rupees, or with both", the words "liable to penalty of rupees ten thousand each day during which such failure continues or rupees ten lakh, whichever is less" shall be substituted64 in section 52g of the insurance act, in sub-section (2), the words "central government or" shall be omitted45amendment of section 52g65 sections 52h, 52-i, 52j, 52k, 52l, 52m and 52n of the insurance act shall be omittedomission of sections 52h, 52-i, 52j, 52k, 52l, 52m and 52n66 in section 53 of the insurance act,—amendment of section 535(a) in sub-section (1), the following explanation shall be inserted at the end, namely:—18 of 2013 'explanation—for the purpose of sections 53 to 61a, "tribunal" means the national company law tribunal constituted under sub-section (1) of section408 of the companies act, 2013'; (b) in sub-section (2), in clause (b), sub-clause (i), shall be omitted10amendment of section 5867 in section 58 of the insurance act, for sub-section (4), the following sub-section shall be substituted, namely:—1518 of 2013"(4) an order of the tribunal confirming a scheme under this section whereby the memorandum of a company is altered with respect to its objects shall as respects the alteration have effect as if it were an order confirmed under section 4 of the companies act, 2013, and the provisions of sections 7 and 17 of that act shall apply accordingly"68 section 59 of the insurance act shall be omittedomission of section 59 amendment of heading69 in part ii a of the insurance act, for the heading "insurance association of india, councils of the association and committees thereof" the following heading shall be substituted, namely:—20"life insurance council and general insurance council and committees thereof"70 sections 64a and 64b of the insurance act shall be omittedomission of sections 64a and 64b71 for sections 64c and 64d of the insurance act the following sections shall be substituted, namely :—substitution of new sections for sections 64c and 64d"64c on and from the date of commencement of this act,—25councils of life insurance and general insurance(a) the existing life insurance council, a representative body of the insurers, who carry on the life insurance business in india; and30(b) the existing general insurance council, a representative body of insurers, who carry on general, health insurance business and re-insurance in india, shall be deemed to have been constituted as the respective councils under this actauthorisation to represent in councils64d it shall be lawful for any member of the life insurance council or the general insurance council to authorise any of its officer to act as the representative of such member at any meeting of the council concerned"3572 for section 64f of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 64f"64f (1) the executive committee of the life insurance council shall consist of the following persons, namely:—5(a) four representatives of members of the life insurance council electedin their individual capacity by the members in such manner as may be laid down in the bye-laws of the council;executive committees of the life insurance council and the general insurance council(b) an eminent person not connected with insurance business, nominatedby the authority;(c) three persons to represent insurance agents, intermediaries andpolicyholders respectively as may be nominated by the authority;10(d) one representative each from self-help groups and insurance cooperative societies:provided that one of the representatives as mentioned in clause (a) shallbe elected as the chairperson of the executive committee of the life insurance council15(2) the executive committee of the general insurance council shall consist of the following persons, namely:—(a) four representatives of members of the general insurance councilelected in their individual capacity by the members in such manner as may be laid down in the bye-laws of the council;20(b) an eminent person not connected with insurance business, nominatedby the authority; and(c) four persons to represent insurance agents, third party administrators,surveyors and loss assessors and policyholders respectively as may be nominated by the authority:25provided that one of the representatives as mentioned in clause (a) shallbe elected as the chairperson of the executive committee of the general insurance council30(3) if anybody of persons specified in sub-sections (1) and (2) fails to elect any of the members of the executive committees of the life insurance council or the general insurance council, the authority may nominate any person to fill the vacancy, and any person so nominated shall be deemed to be a member of the executive committee of the life insurance council or the general insurance council, as the case may be, as if he had been duly elected thereto35(4) each of the said executive committees may make bye-laws for the transaction of any business at any meeting of the said committee(5) the life insurance council or the general insurance council may form such other committees consisting of such persons as it may think fit to discharge such functions as may be delegated thereto40(6) the secretary of the executive committee of the life insurance council and of the executive committee of the general insurance council shall in each case be appointed by the executive committee concerned:provided that each secretary appointed by the executive committee concerned shall exercise all such powers and do all such acts as may be authorised in this behalf by the executive committee concerned"amendment of section 64g73 in section 64g of the insurance act, in sub-section (2), for the words "by nomination by the authority", the words "in such manner as may be laid down in the bye-laws of the council concerned" shall be substituted74 section 64-i of the insurance act shall be omittedomission of section 64-i75 in section 64j of the insurance act, for sub-section (2), the following sub-section shall be substituted, namely:—amendment of section 64j5"(2) for the purpose of enabling it to effectively discharge its functions, the executive committee of the life insurance council may collect such fees as may be laid down in the bye-laws made by the council from the insurers carrying on life insurance business"76 in section 64l of the insurance act, for sub-section (2), the following sub-section shall be substituted, namely:—amendment of section 64l10''(2) for the purpose of enabling it to effectively discharge its functions, the executive committee of the general insurance council may collect such fees as may be laid down in the bye-laws made by the council from the insurers carrying on general insurance business''1577 in section 64n of the insurance act, for the words "the central government may prescribe", the words "the authority may specify" shall be substitutedamendment of section 64n78 in section 64r of the insurance act, in sub-section (1),—(a) for clause (c), the following clause shall be substituted, namely:—amendment of section 64r"(c) keep and maintain up-to-date, a copy of list of all insurers who are members of the either council;";20(b) in clause (d), for the words "with the previous approval of the authority make regulations for", the words "make bye-laws for" shall be substituted79 sections 64s and 64t of the insurance act shall be omittedomission of sections 64s and 64t80 sections 64u, 64ua, 64ub, 64uc, 64ud, 64ue, 64uf, 64ug, 64uh, 64u-i, 64uj,64uk and 64ul of the insurance act shall be omittedomission of sections 64u, 64ua, 64ub, 64uc, 64ud, 64ue, 64uf, 64ug, 64uh, 64u-i, 64uj, 64uk and 64ul2581 after section 64ul of the insurance act, the following section shall be inserted, namely:—insertion of new section 64ula transitional provisions30"64ula (1) notwithstanding anything contained in this part, until the rates, advantage and terms and conditions laid down by the advisory committee under section 64uc are de-notified by the authority with effect from such date as the authority may by notification in the official gazette determine, and the rates, advantages and terms and conditions are decided by the insurer concerned, the rates, advantages and terms and conditions notified by the advisory committee shall continue to be in force and shall always be deemed to have been in force and any such rates, advantages and terms and conditions shall be binding on all the insurers35(2) the authority shall, in consultation with the central government, prepare a scheme for the existing employees of the tariff advisory committee on its dissolution, keeping in view the interests of such employees on such terms and conditions as it may, by order, determine''82 for section 64um of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 64um surveyors or loss assessors5'64um (1) save as otherwise provided in this section, no person shall act as a surveyor or loss assessor in respect of general insurance business after the expiry of a period of one year from the commencement of the insurance laws (amendment) act, 2015, unless he—(a) possesses such academic qualifications as may be specified by the regulations made under this act; and10(b) is a member of a professional body of surveyors and loss assessors, namely, the indian institute of insurance surveyors and loss assessors:provided that in the case of a firm or company, all the partners or directors or other persons, who may be called upon to make a survey or assess a loss reported, as the case may be, shall fulfil the requirements of clauses (a) and (b)15(2) every surveyor and loss assessor shall comply with the code of conduct in respect of his duties, responsibilities and other professional requirements, as may be specified by the regulations made under the act20(3) notwithstanding anything contained in the foregoing provisions, a class or class of persons acting as a licensed surveyor or loss assessor prior to the commencement of the insurance laws (amendment) act, 2015 shall continue to act as such for such period as may be specified by the regulations made under this act:provided that the surveyor or loss assessor shall, within the period as may be notified by the authority, satisfy the requirements of clause (a) and clause (b) of subsection (1), failing which, the surveyor or loss assessor shall be automatically disqualified to act as a surveyor or loss assessor2530(4) no claim in respect of a loss which has occurred in india and requiring to bepaid or settled in india equal to or exceeding an amount specified in the regulations by the authority in value on any policy of insurance, arising or intimated to an insurer at any time after the expiry of a period of one year from the commencement of the insurance laws (amendment) act, 2015, shall, unless otherwise directed by the authority, be admitted for payment or settled by the insurer unless he has obtained a report, on theloss that has occurred, from a person who holds a licence issued under this section to act as a surveyor or loss assessor (hereafter referred to as "approved surveyor or loss assessor"):35provided that nothing in this sub-section shall be deemed to take away or abridge the right of the insurer to pay or settle any claim at any amount different from the amount assessed by the approved surveyor or loss assessor40(5) the authority may, at any time, in respect of any claim of the nature referred to in sub-section (4), call for an independent report from any other approved surveyor or loss assessor specified by him and such surveyor or loss assessor shall furnish such report to the authority within such time as may be specified by the authority or if no time limit has been specified by him within a reasonable time and the cost of, or incidental to, such report shall be borne by the insurer45(6) the authority may, on receipt of a report referred to in sub-section (5), issue such directions as it may consider necessary with regard to the settlement of the claim including any direction to settle a claim at a figure less than, or more than, that at which it is proposed to settle it or it was settled and the insurer shall be bound to comply with such directions:5 provided that where the authority issues a direction for settling a claim at a figure lower than that at which it has already been settled, the insurer shall be deemed to comply with such direction if he satisfies the authority that all reasonable steps, with due regard to the question whether the expenditure involved is not disproportionate to the amount required to be recovered, have been taken with due despatch by him: provided further that no direction for the payment of a lesser sum shall be made where the amount of the claim has already been paid and the authority is of opinion that the recovery of the amount paid in excess would cause undue hardship to the insured:10provided also that nothing in this section shall relieve the insurer from any liability, civil or criminal, to which he would have been subject but for the provisions of this sub-section15(7) no insurer shall, after the expiry of a period of one year from the commencement of the insurance laws (amendment) act, 2015 pay to any person any fee or remuneration for surveying, verifying or reporting on a claim of loss under a policy of insurance unless the person making such survey, verification or report is an approved surveyor or loss assessor20(8) where, in the case of a claim of less than the amount specified in sub-section (4)in value on any policy of insurance it is not practicable for an insurer to employ an approved surveyor or loss assessor without incurring expenses disproportionate to the amount of the claim, the insurer may employ any other person (not being a person disqualified for the time being for being employed as a surveyor or loss assessor) for surveying such loss and may pay such reasonable fee or remuneration to the person so employed as he may think fit25 30(9) the authority may in respect of any claim of value of less than the amount specified in sub-section (4) on an insurance policy, if the claim has not been or is not proposed to be reported upon by a surveyor or loss assessor, direct that such claim shall be reported upon by an approved surveyor or loss assessor and where the authority makes such direction, the provisions of sub-sections (5) and (6) shall apply in respect of such claim35(10) where, in relation to any class of claims, the authority is satisfied that it is customary to entrust the work of survey or loss assessment to any person other than a licensed surveyor or loss assessor, or it is not practicable to make any survey or loss assessment, it may, by an order, exempt such class of claims from the operation of this section'83 for sections 64v and 64va of the insurance act, the following sections shall be substituted, namely:—substitution of new sections for sections 64v and 64va assets and liabilities how to be valued40"64v (1) for the purpose of ascertaining compliance with the provisions of section 64va, assets shall be valued at value not exceeding their market or realisable value and certain assets may be excluded by the authority in the manner as may be specified by the regulations made in this behalf(2) a proper value shall be placed on every item of liability of the insurer in the manner as may be specified by the regulations made in this behalf45(3) every insurer shall furnish to the authority along with the returns required to be filed under this act, a statement, certified by an auditor, approved by the authority, in respect of general insurance business or an actuary approved by the authority in respect of life insurance business, as the case may be, of his assets and liabilities assessed in the manner required by this section as on the 31st day of march of each year within such time as may be specified by the regulationssufficiency of assets64va (1) every insurer and re-insurer shall at all times maintain an excess of value of assets over the amount of liabilities of, not less than fifty per cent of the amount of minimum capital as stated under section 6 and arrived at in the manner specified by the regulations5(2) an insurer or re-insurer, as the case may be, who does not comply with subsection (1), shall be deemed to be insolvent and may be wound-up by the court on an application made by the authority10(3) the authority shall by way of regulation made for the purpose, specify alevel of solvency margin known as control level of solvency on the breach of which the authority shall act in accordance with the provisions of sub-section (4) without prejudice to taking of any other remedial measures as deemed fit:15provided that if in respect of any insurer the authority is satisfied that either by reason of an unfavourable claim experience or because of a sharp increase in the volume of new business, or for any other reason, compliance with the provisions of this sub-section shall cause undue hardship to the insurer, it may direct that for such period and subject to such conditions as it may specify, the provisions of this sub-section shall apply to that insurer with such modifications provided that such modifications shall not result in the control level of solvency being less than what is stipulated under sub-section (1)20(4) if, at any time, an insurer or re-insurer does not maintain the required controllevel of solvency margin, he shall, in accordance with the directions issued by the authority, submit a financial plan to the authority, indicating a plan of action to correct the deficiency within a specified period not exceeding six months25(5) an insurer who has submitted a plan, as required under sub-section (4), theauthority shall propose modifications to the plan, if the authority considers the same inadequate, and in such an eventuality, the authority shall give directions, as may be deemed necessary, including direction in regard to transacting any new business, or, appointment of an administrator or both30(6) an insurer or re-insurer, as the case may be, who does not comply with theprovisions of sub-section (4) shall be deemed to have made default in complying with the requirements of this section35(7) the authority shall be entitled at any time to take such steps as it mayconsider necessary for the inspection or verification of the assets and liabilities of any insurer or re-insurer, or for securing the particulars necessary to establish that the requirements of this section have been complied with as on any date, and the insurer or re-insurer, as the case may be, shall comply with any requisition made in this behalf by the authority, and in the event of any failure to do so within two months from the receipt of the requisition, the insurer or re-insurer, as the case may be, shall be deemed to have made default in complying with the requirements of this section40(8) in applying the provisions of sub-section (1) to any insurer or re-insurer, asthe case may be, who is a member of a group, the relevant amount for that insurer shall be an amount equal to that proportion of the relevant amount which that group, if considered as a single insurer, would have been required to maintain as the proportion of his share of the risk on each policy issued by the group bears to the total risk on that policy:45provided that when a group of insurers ceases to be a group, every insurer in that group who continues to carry on any class of insurance business in india shall comply with the requirements of sub-section (1) as if he had not been an insurer in a group at any time:provided further that it shall be sufficient compliance of the provisions of the foregoing proviso if the insurer brings up the excess of the value of his assets over the amount of his liabilities to the required amount within a period of six months from the date of cessation of the group:5provided also that the authority may, on sufficient cause being shown, extend the said period of six months by such further periods as it may think fit, so, however that the total period may not in any case exceed one year10(9) every insurer shall furnish to the authority return giving details of solvency margin in such form, time, manner including its authentication as may be specified by the regulations"84 for section 64vc of the insurance act, the following section shall be substituted, namely:—substitution of newsection forsection 64vc62 of 196815restrictions on opening of new place of business''64vc no insurer shall, after the commencement of the insurance (amendment)act, 1968, open a new place of business or close a place in india or outside india or change otherwise than within the same city, town or village, the location of an existing place of business situated in india or outside india, except in the manner as may be specified by the regulations''85 part iii and part iiia of the insurance act shall be omittedomission of part iii and part iiia86 part iv of the insurance act shall be omittedomission of part iv20amendment of section 10287 in section 102 of the insurance act, for the words "not exceeding five lakh rupees for each such failure and punishable with fine", the words "of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less" shall be substituted2588 for sections 103 and 104 of the insurance act, the following sections shall be substituted, namely:—substitution of new sections for sections103 and 104"103 if a person carries on the business of insurance without obtaining a certificate of registration under section 3, he shall be liable to a penalty not exceeding rupees twenty-five crores and with imprisonment which may extend to ten yearspenalty for carrying on insurance business in contravention of section 330104 if a person fails to comply with the provisions of section 27, section 27a, section 27b, section 27d and section 27e, he shall be liable to a penalty not exceeding twenty-five crore rupees"penalty for contravention of sections 27, 27a, 27b, 27d and 27e89 in section 105 of the insurance act, for the words "not exceeding two lakh rupees for each such failure", the words "not exceeding one crore rupees" shall be substitutedamendment of section 10590 for sections 105b and 105c of the insurance act, the following sections shall be substituted, namely :—35substitution of new sections for sections 105b and 105c"105b if an insurer fails to comply with the provisions of section 32b, section 32cand section 32d, he shall be liable to a penalty not exceeding twenty-five crore rupeespenalty for failure to comply with sections 32b, 32c and 32d power to adjudicate5105c(1) for the purpose of adjudication under sub-section (2) of section 2cb, sub-section (4) of section 34b, sub-section (3) of section 40, sub-section (2) of section41, sub-sections (4) and (5) of section 42, sub-sections (8) and (9) of section 42d, section 52f and section 105b, the authority, shall appoint any officer not below the rank of a joint director or an equivalent officer to be an adjudicating officer for holding an inquiry in the prescribed manner after giving any person concerned a reasonable opportunity of being heard10(2) upon receipt of the inquiry report from the officer so appointed, the authority,after giving an opportunity of being heard to the person concerned, may impose any penalty provided in sections aforesaid15(3) while holding an inquiry, the adjudicating officer shall have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which in the opinion of the adjudicating officer, may be useful for or relevant to the subject matter of the inquiry and if on such inquiry, is satisfied that the person has failed to comply with the provisions of any of the sections specified in sub-section (1), he may recommend such penalty as he thinks fit in accordance with the provisions of any of those sections20105d while recommending the quantum of penalty under section 105c, the adjudicating officer and while imposing such penalty, the authority shall have due regard to the following factors, namely:—factors to be taken into account by the adjudicating officer(a) the amount of disproportionate gain or unfair advantage, whereverquantifiable, made as a result of the default;25(b) the amount of loss caused to the policyholders as a result of thedefault; and(c) the repetitive nature of default"91 in section 106a of the insurance act, in sub-section (12),—amendment of section 106a(i) clauses (a), (b) and (f) shall be omitted;(ii) in clause (d), the words "or a provident society" shall be omitted3092 sections 107 and 107a of the insurance act shall be omittedomission of section 107 and 107a93 for section 109 of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 109 cognizance of offence35"109 no court shall take cognizance of any offence punishable under this act or any rules or any regulations made thereunder, save on a complaint made by an officer of the authority or by any person authorised by it"94 for section 110 of the insurance act, the following section shall be substituted, namely:—substitution of new section for section 110"110 (1) any person aggrieved—40(a) by an order of the authority made on and after the commencement of theappeal to securities appellate tribunalinsurance laws (amendment) act, 2015, or under this act, the rules or regulations made thereunder; or(b) by an order made by the authority by way of adjudication under this act,5may prefer an appeal to the securities appellate tribunal having jurisdiction in the matter10(2) every appeal made under sub-section (1) shall be filed within a period of forty-five days from the date on which a copy of the order made by the authority is received by him and it shall be in such a form and be accompanied by such fees as may be prescribed:provided that the securities appellate tribunal may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period15(3) on receipt of an appeal under sub-section (1), the securities appellate tribunal may, after giving parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, conforming, modifying or setting aside the order appealed against(4) the securities appellate tribunal shall make available copy of order made by it to the authority and parties20(5) the appeal filed before the securities appellate tribunal under sub-section (1)shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within six months from the date of receipt of appeal(6) the procedure for filing and disposing of an appeal shall be such as may be prescribed2515 of 1992(7) the provision contained in section 15u, section 15v, section 15w, section15y and section 15z of the securities and exchange board of india act, 1992 shall apply to the appeals arising out of the provisions of this act, as they apply to the appeals under the securities and exchange board of india act, 1992''95 section 110e of the insurance act shall be omittedomission of section 110e3096 sections 110g and 110h of the insurance act shall be omittedomission of sections 110g and 110h97 after section 110h of the insurance act, the following section shall be inserted, namely:—''110ha any penalty imposed by the authority under this act shall be recoverable as an arrear of land revenue"3598 in section 111 of the insurance act,—insertion of new section 110hapenalty to be recoverable as arrear of land revenue amendment of section 111(a) in sub-section (1), the words "or provident society" occurring at both the places shall be omitted;(b) in sub-section (2), in the proviso, the words "or to a provident society" shall be omitted4099 for section 113 of the insurance act, the following section shall be substituted, namely:—substitution of new section for section113"113 (1) a policy of life insurance shall acquire surrender value as per the norms specified by the regulationsacquisition of surrender value by policy(2) every policy of life insurance shall contain the formula as approved by the authority for calculation of guaranteed surrender value of the policy5(3) notwithstanding any contract to the contrary, a policy of life insurance under a non-linked plan which has acquired a surrender value shall not lapse by reason of non-payment of further premiums but shall be kept in force to the extent of paid-up sum insured, calculated by means of a formula as approved by the authority and contained in the policy and the reversionary bonuses that have already been attached to the policy:10provided that a policy of life insurance under a linked plan shall be kept in force in the manner as may be specified by the regulations(4) the provisions of sub-section (3) shall not apply—15(i) where the paid-up sum insured by a policy, inclusive of attached bonuses, is less than the amount specified by the authority or takes the form of annuity of amount less than the amount specified by the authority; or(ii) when the parties, after the default has occurred in payment of the premium, agree in writing to other arrangement"100 in section 114 of the insurance act,—20(a) in sub-section (2),—amendment of section 114 (i) clause (aa) shall be omitted; (ii) after clause (aa) as so omitted, the following clause shall be inserted, namely:—"(aaa) the manner of ownership and control of indian insurance company under sub-clause (b) of clause (7a) of section 2;";25 (iii) clause (c) and clause (f) shall be omitted;(iv) after clause (l), the following clauses shall be inserted, namely:—"(la) the manner of inquiry under sub-section (l) of section 105c;30(lb) the form in which an appeal may be preferred under sub-section (2)and the fee payable in respect of such appeal and the procedure for filing and disposing of an appeal under sub-section (6) of section 110;'';(b) in sub-section (3), the words, brackets, figures and letters "or under sub-section (1) of section 64ub and every regulation made under sub-section (3) of section 64ub" shall be omitted35101 in section 114a of the insurance act, in sub-section (2),—amendment of section 114a(i) for clauses (a) and (aa), the following clause shall be substituted, namely:—"(a) manner of making application for registration and documents to be accompanied under sub-section (2) of section 3;";(ii) for clause (d), the following clause shall be substituted, namely:—40"(d) such annual fee to the authority and manner of payment under subsection (1) of section 3a;";(iii) after clause (d), the following clauses shall be inserted, namely:—"(da) such minimum annuity and other benefits to be secured by the insurer under section 4;(daa) determination of preliminary expenses that may be excluded for calculation of the stipulated paid-up equity capital for the insurers under sub-section (1) of section 6;5(db) such equity capital and such forms of capital including hybrid capital required under sub-section (i) of section 6a;";(iv) clause (e) shall be omitted;(v) after clause (e), as so omitted, the following clause shall be inserted, namely:—"(ea) separation of account of all receipts and payments in respect of each classes and sub-classes of insurance business as required under sub-section (1)and sub-section (2aa) of section 10; and its waiver under the said section;";10(vi) in clause (f), for the words, brackets, figures and letter "under sub-section (1a)of section 11", the words, brackets and figures "under sub-section (1) of section 11"shall be substituted;(vii) for clause (g), the following clause shall be substituted, namely:—15"(g) the manner in which an abstract of the report of the actuary to be specified and the form and manner in which the statement referred to in section 13 shall be appended;"; (viii) after clause (g), the following clauses shall be inserted, namely:—"(ga) maintenance of records of policies and claims under clause (c) of sub-section (1) of section 14;20(gb) manner and form of issuance of policies in electronic form under subsection (2) of section 14;"; (ix) for clause (h), the following clause shall be substituted, namely:—25"(h) the fee for procuring a copy of return or any part thereof under sub-section (i) of section 20;"; (x) for clause (i), the following clause shall be substituted, namely:—"(i) investment of assets and further provisions regarding investments by an insurer and investment by insurers in certain cases under sections 27, 27a,27b, 27c and time, manner and other conditions of investment of assets under section 27d;";30(xi) for clauses (ia), (ib), (ic), (id) and (ie), the following clauses shall be substituted, namely:—"(ia) the form in which a return giving details of investments made, time and manner including its authentication under section 28;35(ib) the loans including the loans sanctioned to the full-time employees of the insurer under clause (a) of sub-section (3) of section 29;(ic) the sum to be paid by the insurer to any person under section 31b; (id) the obligation of insurer in respect of rural or social or unorganised sector and backward classes under section 32b and 32c;40(ie) the minimum percentage of insurance business in third party risks of motor vehicles under section 32d;"; (xii) for clause (j), the following clause shall be substituted, namely:—"(j) the minimum information to be maintained by insurers or intermediary or insurance intermediary, as the case may be, in their books, the manner in which such information shall be maintained, the checks and other verifications in that connection and all other matters incidental thereto under sub-section (7) of section 33;"; (xiii) after clause (j), the following clauses shall be inserted, namely:—5"(ja) the form in which balance-sheets in respect of the insurance business of each of the insurers concerned and the manner in which actuarial reports and abstracts in respect of the life insurance business are to be prepared under clauses (b) and (c) of sub-section (3) of section 35;(jb) the manner of assessment of compensation under the proviso to sub-section (4a) of section 37a;10(jc) the fee to be charged by the insurer under sub-section (3) of section 39;(jd) the manner and amount of remuneration or reward to be paid or received by way of commission or otherwise to an insurance agent or an intermediary or insurance intermediary under section 40;15(je) the manner and form of expenses of management under sections 40band 40c;"; (xiv) clauses (k) and (l) shall be omitted;(xv) for clause (m), the following clause shall be substituted, namely:—20"(m) the requisite qualifications or practical training or examination to bepassed for appointment as an insurance agent under clause (e) of sub-section (3) of section 42;";(xvi) clause (n) shall be omitted; (xvii) for clause (o), the following clause shall be substituted, namely:—25"(o) the code of conduct under clause (h) of sub-section (3) ofsection 42;";(xviii) clause (p) shall be omitted; (xix) clause (va) shall be omitted;30(xx) in clause (vb), the words, brackets and figure "sub-section (2) of" shall be omitted;(xxi) clause (w) shall be omitted;(xxii) for clause (x), the following clauses shall be substituted, namely:—"(x) academic qualifications and code of conduct for surveyors and loss assessors under sub-sections (1) and (2) of section 64um;35(xa) the period for which a person may act as a surveyor or loss assessorunder sub-section (3) of section 64um;";(xxiii) for clause (y), the following clause shall be substituted, namely:—"(y) the manner of exclusion of certain assets under sub-section (1), the manner of valuation of liabilities under sub-section (2) and time for furnishing statement under sub-section (3) of section 64v;";40(xxiv) for clause (za), the following clause shall be substituted, namely:—"(za) the matters specified under sub-section (1) of section 64va relating to sufficiency of assets;"; (xxv) after clause (zaa), the following clauses shall be inserted, namely:—"(zab) the form, time, manner including authentication of the return giving details of solvency margin under sub-section (9) of section 64va;(zac) the manner of opening and closing places of business under section64vc;";5(xxvi) after clause (zb), the following clause shall be inserted, namely:—"(zba) the norms for surrender value of life insurance policy under sub-section (1) of section 113;"102 in the insurance act, the fifth schedule, the sixth schedule and the eighth schedule shall be omittedomission of fifth, sixth and eighth schedules chapter iii10 amendments to the general insurance business (nationalisaton) act, 197257 of 1972103 in the general insurance business (nationalisation) act, 1972, after section 10a, the following section shall be inserted, namely:—insertion of a new section 10b15"10b the general insurance corporation and the insurance companies specified in section 10a may, raise their capital for increasing their business in rural and social sectors, to meet solvency margin and such other purposes, as the central government may empower in this behalf:enhancement of equity capital of general insurance companiesprovided that the shareholding of the central government shall not be less than fifty one per cent at any time"20omission of section 2557 of 1972104 section 25 of the general insurance business (nationalisation) act, 1972 shall beomitted chapter iv amendments to the insurance regulatory and development authority act, 199941 of 1999amendment of section 2105 in section 2 of the insurance regulatory and development authority act, 1999, insub-section (1),—25(i) in clause (b), after the words "development authority", the words" of india", shall be inserted;(ii) for clause (f), the following clause shall be substituted, namely:—30'(f) "intermediary" or "insurance intermediary" includes insurance brokers, re-insurance brokers, insurance consultants, corporate agents, third party administrator, surveyors and loss assessors and such other entities, as may be notified by the authority from time to time'41 of 1999amendment of section 335106 in section 3 of the insurance regulatory and development authority act, 1999, insub-section (1), after the words ''development authority'' the words ''of india'' shall beinserted41 of 1999amendment of section 16107 in section 16 of insurance regulatory and development authority act, 1999, insub-section (1), clause (c) shall be omitted108 (1) the insurance laws (amendment) ordinance, 2014, is hereby repealedrepeal and savings404 of 1938 57 of 1972 41 of 1999(2) notwithstanding such repeal, anything done or any action taken under the insuranceact, 1938, the general insurance business (nationalisation) act, 1972 and the insurance regulatory and development authority act, 1999 as amended by the said ordinance, shall be deemed to have been done or taken under the corresponding provisions of the said acts, as amended by this act statement of objects and reasonsthe insurance act, 1938 (insurance act) provides for and regulates the insurance business in the country however, with the enactment of the insurance regulatory and development authority act, 1999 (the irda act), the insurance business was opened up to the private sector as a result of opening up of the insurance business, the number of insurance companies has increased from six nationalised companies in 1999 to fifty-three insurance companies as on today the irda act paved the way for establishment of the insurance regulatory and development authority (irda) to protect the interest of holders of insurance policies and to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto the general insurance business (nationalisation) act, 1972 (gibna act) nationalised the general insurance business in india and provided for the acquisition and transfer of shares of indian general insurance companies, in order to serve better the need of the economy, by securing the development of general insurance business in the best interest of the public2 at the instance of the insurance regulatory and development authority (irda), the law commission of india (the commission) had examined the insurance act, 1938 and the irda act and submitted its 190th report to the government on the 1st june, 2004 the recommendations of the commission covered legal issues concerning repudiation of life insurance policies; nomination, assignment and transfer of policies; merger of the irda act with the insurance act, 1938; setting up of a grievance redressal mechanism, deletion of redundant provisions of the insurance act, 1938, etc irda constituted a committee of experts under sh kp narasimhan, ex-chairman, lic (the kpn committee) on the 7th march, 2005 to examine the recommendations made by the commission the committee submitted its report to irda on the 26th july, 20053 irda offered its comments on the recommendations of the commission and the kpn committee, and proposed some amendments to the life insurance corporation act, 1956, gibna act, the insurance act, 1938 and the irda act after examining the recommendations of the law commission, kpn committee and irda, the insurance laws (amendment) bill, 2006 was prepared it incorporated amendments to the insurance act,1938, the life insurance corporation act, 1956, the gibna act and the irda act the proposed insurance laws (amendment) bill, 2006 was referred to a group of ministers (gom)4 accordingly, the gom examined the proposed amendments and decided that the amendment to the life insurance corporation act, 1956 may be carried out separately and not with amendments to the other insurance related acts accordingly, the insurance laws (amendment) bill, 2008 with a view to amend the insurance act, 1938, the gibna act and the irda act, through a total of 111 clauses, was prepared the insurance laws (amendment) bill, 2008 was introduced in rajya sabha on the 22nd december, 2008 on introduction in the rajya sabha in december 2008, the bill was referred to the standing committee on finance for examination and report the standing committee submitted its report to parliament on the 13th december, 2011 after examination and processing of the standing committee report, the government on the 14th november, 2012, and on other occasions thereafter, gave notice to introduce 88 official amendments to the insurance laws (amendment) bill, 2008 the bill, however, could not be taken up for consideration and passing5 subsequently in august, 2014 the government proposed 11 additional official amendments to the insurance laws (amendment) bill, 2008, in addition to the earlier 88 the bill could, however, not be taken up by the house and was referred to a select committee of the rajya sabha under the chairmanship of dr chandan mitra on 14th august, 20146 the select committee, in its report presented to parliament on 10th december, 2014, made various recommendations suggesting certain amendments in the 2008 bill based on its recommendations, the select committee incorporated amendments to the insurance laws (amendment) bill, 2008 along with the 99 official amendments proposed by government earlier, and reported a revised bill, termed as the insurance laws (amendment) bill, 2014, with its report7 the cabinet in its meeting held on the 10th december, 2014 approved the proposal to enable the bill as reported by the select committee to be taken up for consideration and passing accordingly, the finance minister gave notice of a motion in the rajya sabha that the bill as reported by the select committee be taken into consideration and be passed however, the bill could not be taken up for consideration in the rajya sabha during the winter session 20148 in view of the urgency of the matter and given the circumstances that existed, which rendered it necessary to give immediate effect to the proposed amendments in the insurance laws by way of promulgation of an ordinance, the cabinet approved on the 24th december, 2014 the promulgation of the insurance laws (amendment) ordinance, 2014 to amend the insurance act, 1938, the gibna act and the irda act in accordance with the insurance laws (amendment) bill, 2008 as reported by the select committee of the rajya sabha, and for suitably introducing a bill in parliament to replace the ordinance in the next session for consideration and passing the ordinance came into force with effect from the 26th december, 2014 after the presidential assent9 accordingly, to replace the above ordinance, the insurance laws (amendment)bill, 2015 is being introduced in parliament the insurance laws (amendment) bill, 2015 proposes to amend the insurance act, 1938, the insurance regulatory and development authority act, 1999 and the general insurance business (nationalisation) act, 1972 the said bill, inter alia, seeks to—(i) define "health insurance business" and retain capital requirements for health insurers at the level of rs 100 crore to discourage non-serious players;(ii) raise foreign equity investment cap in insurance sector from 26 per cent to49 per cent with appropriate safeguards of mandating indian ownership and control it also defines the term "control" in the insurance act itself by adding the following explanation after the proposed text of clause (7a) of section 2 of the insurance act, 1938:'explanation—the term "control" shall include the right to appoint a majority of the directors or to control the management or policy decisions including by virtue of their shareholding or management rights or shareholders agreements or voting agreements';(iii) redefine "re-insurance" as the insurance of part of one insurer's risk by another insurer who accepts the risk for a mutually acceptable premium", and thereby exclude the possibility of 100 per cent ceding of risk to a re-insurer;(iv) permit foreign re-insurers to open branches only for re-insurance business in india;(v) facilitate entry of lloyd's of london in insurance business in india in joint venture with indian partners and also as branch of foreign re-insurer;(vi) provide for permanent registration of the insurers with annual renewal fee and right to cancel the registration on breach of conditions specified by the irda;(vii) provide for maintenance of a register of claims and policies by insurers in any form, including electronic;(viii) specify fine on intermediaries and insurance companies for misconduct of intermediaries and to make appropriate provision in the legislation to effectively deter multilevel marketing of insurance products in the interest of policyholders and to curtail the practice of mis-selling;(ix) enable agents to work across companies in various business categories; (x) enable inclusion of representatives of self-help groups and insurance cooperative societies in insurance councils;(xi) broaden scope of proposed section 64um of the insurance act to more broadly empower the authority to regulate the functions, code of conduct, etc, of surveyors and loss assessors;(xii) allow flexibility to irda to define new insurance intermediaries in a dynamic world, as the industry progresses;(xiii) remove restriction on divestment by indian promoters of insurance companies, which were required earlier to divest to 26 per cent or such other, prescribed percentage in the manner and period prescribed by the central government;(xiv) remove requirement of deposits by insurers for registration in view of these being regulated by the irda on the basis of solvency margin;(xv) provide for obligatory underwriting of third party risks of motor vehicles on the pattern of insurance in rural areas and social sectors with exemption to various standalone / mono-line insurers such as those operating in areas like health, re-insurance, agriculture, export credit guarantee;(xvi) make provision for absolute and conditional assignments of life insurance policies;(xvii) entrust responsibility of appointing insurance agents to insurers with irda to regulate their eligibility, qualifications and other aspects;(xviii) make life insurance policy unchallengeable on whatsoever ground after three years of issue of the policy and limiting the grounds for challenge during the period within three years;(xix) delete provisions relating to tariff advisory committee (tac) in view of the detariffing of rates and premiums with effect from the 1st january, 2007;(xx) provide for making life insurance council and general insurance council as self-regulating bodies by empowering them to frame bye-laws for elections, meetings, levy and collection of fees from its members;(xxi) provide for powers of adjudication to the authority and appeal to securities appellate tribunal against the decisions of the authority;(xxii) bar courts from taking cognizance of any offence punishable under the insurance act, save on a complaint made by an officer of irda;(xxiii) delete redundant provisions and make consequential amendments to various provisions in the insurance act;(xxiv) allow insurance companies to raise capital through newer instruments on the pattern of banks;(xxv) enable formulation of regulations by irda for payment of commission and control of management expenses provided that irda shall take into account the interests of the agents and other intermediaries concerned;(xxvi) enable formulation of regulations for opening and closing of foreign branches and the closing of domestic branches of indian insurers and norms for opening domestic branches;(xxvii) address matters relating to the functions, code of conduct, etc, of surveyors and loss assessors through regulations;(xxviii) allow the public sector general insurance companies and general insurance corporation (gic) to raise capital from the market to meet future capital requirements, provided that the government's shareholding would not be allowed to come below 51 per cent at any point of time; and(xxix) include "corporate agent" and "third party administrator'' in the definition of "insurance intermediaries" in the irda act 10the proposed amendments are aimed at bringing about improvements and revision in the laws relating to insurance business in india to remove archaic provisions and incorporate modern day practices emerging in a changing dynamic environment, which includes private participation the amendments also incorporate provisions to provide irda with the flexibility to discharge its functions more effectively and efficiently11the bill seeks to replace the aforesaid ordinancearun jaitleynew delhi;the 14th february, 2015 notes on clausesclause 2—this clause seeks to substitute the words "indian companies act, 1913"and "the companies act, 1956" throughout the insurance act, 1938 with the words "the companies act, 2013"clause 3—this clause seeks to amend section 2 of the act so as to amend the definitions of actuary, authority, indian insurance company, insurance co-operative society, insurer and to insert the new definitions of health insurance business, re-insurance and the securities appellate tribunal in the said sectionclause 4—this clause seeks to insert a new section 2cb in the act to prohibit insurance of the properties in india, ship, vessel, aircraft registered in india from foreign insurer india save with the prior permission of the authority it also proposed a penalty of five crore of rupees for contravention of this provisionclause 5—this clause seeks to omit section 2e of the act relating to insurers, who enter into new contracts before commencement of the act, as it has become redundantclause 6—this clause seeks to amend section 3 of the act to regulate the manner of making application for registration of insurers by regulation and provide for appeal to securities appellate tribunal against the refusal of registration by the authority and suspension or cancellation of registration in certain casesclause 7—this clause seeks to substitute section 3a of the act to provide for annual fee in place of annual renewal of registration of insurers by regulationsclause 8—this clause seeks to substitute section 4 of the act to provide for minimum limit for annuities and other benefits secured by policies of life insurance by regulationsclause 9—this clause seeks to amend section 5 of the act to omit the redundant provisionsclause 10—this clause seeks to substitute section 6 of the act to provide for capital of rupees one hundred crore for exclusive health insurance business and minimum net owned funds of rupees five thousand crore for a foreign re-insurer opening branch in indiaclause 11—this clause seeks to amend section 6a of the act to regulate the capital structure, voting rights, maintenance of records of the shareholders, etc, of life, general, health insurance and re-insurance companies and to omit certain redundant provisionsclause 12—this clause seeks to omit section 6aa of the act relating to manner of divesting of the excess shareholding by promoters in certain casesclause 13—this clause seeks to amend section 6b of the act to include general, health insurance business and re-insurance for compliance of capital structure, empower the authority to regulate the same in place of the central government and empower the securities appellate tribunal to hear appeals in place of the high courtclause 14—this clause seeks to omit sections 6c, 7, 8 and 9 of the act relating to capital structure, company limited by guarantee and deposits by the insurers before registrationclause 15—this clause seeks to amend section 10 of the act to empower the authority to regulate the separation of accounts and funds of insurersclause 16—this clause seeks to substitute section 11 of the act to empower the authority to regulate preparation of annual accounts and balancesheet by insurersclause 17—this clause seeks to substitute section 12 of the act to provide for audit of insurance businessclause 18—this clause seeks to amend section 13 of the act to omit the redundant provisions relating to actuarial investigation and empower the authority to regulate the insurance business through actuariesclause 19—this clause seeks to substitute section 14 of the act to provide for maintenance of records of policies and claims in any form, including electronic mode and issuance of policies above a specified threshold in terms of sum assured and premium in electronic formclause 20—this clause seeks to substitute section 15 of the act to omit certain redundant provisions relating to submission of returns by insurersclause 21—this clause seeks to omit section 16 of the act relating to returns by insurers established outside indiaclause 22—this clause seeks to omit sections 17 and 17a of the act relating to exemption from certain provisions of the indian companies act, 1913 and furnishing of balance sheet and accounts to registrar of companies and non-application of the act to the preparation of accounts for the period prior to 1968clause 23—this clause seeks to amend section 20 of the act to empower the authority to regulate filing of copy of the returns of the insurers and allowing their inspection for a fee as specified by regulationsclause 24—this clause seeks to amend section 21 of the act to provide for appeal to the securities appellate tribunal by insurers against the final order of the authority not accepting a return or other statement submitted to itclause 25—this clause seeks to amend section 22 of the act to make consequential amendments relating to powers of the authorityclause 26—this clause seeks to substitute sections 27, 27a, 27b, 27c and 27d of the act to provide for broad guidelines for investment by insurers and prohibit investment of funds outside india the objective is to make the investment provisions more effectiveclause 27—this clause seeks to substitute sections 28, 28a and 28b to empower the authority to regulate statements, returns of investment of assets of insurersclause 28—this clause seeks to substitute section 29 of the act to provide for granting of loans or advances to subsidiaries of insurance companies with the prior approval of the authorityclause 29—this clause seeks to substitute section 30 of the act to provide for liability of directors, managers or officers for loss sustained by insurer or policyholders due to contravention of the provisions relating to investmentsclause 30—this clause seeks to amend section 31 of the act to provide that none of the assets in india of any insurer shall be kept otherwise than in the name of a public officer approved by the authorityclause 31—this clause seeks to amend section 31a of the act to omit redundant provisions relating to management of the insurance companiesclause 32—this clause seeks to substitute section 31b of the act to empower the authority to regulate the payment of excessive remunerationclause 33—this clause seeks to omit section 32 of the act relating to employment of managing agentsclause 34—this clause seeks to amend section 32a of the act to prohibit the common officer for insurers and prescribe a full-time officerclause 35—this clause seeks to amend section 32b of the act to provide for insurance business in rural and social sector in place of rural or social sectorclause 36—this clause seeks to insert a new section 32d in the act for obligation on all insurers in respect of third party risks of motor vehicles except any insurer who is primarily engaged in the business of health, re-insurance, agriculture, export credit guaranteeclause 37—this clause seeks to substitute section 33 of the act to provide for coverage of intermediary or insurance intermediary for investigation and inspection by the authority and allows any insurer or intermediary or insurance intermediary aggrieved by any order made under this section to prefer an appeal to the securities appellate tribunalclause 38—this clause seeks to amend section 34b to enhance the penalty of one lakh rupees for each day during which such contravention continues or one crore rupees, whichever is less, for contravention of the orders of the authority for removal of managerial persons from officeclause 39—this clause seeks to amend section 34c of the act to provide for consultation with the central government for appointment of additional directors of the insurers by the authority in public interestclause 40—this clause seeks to omit section 34g of the act relating to the power of the authority to order closure of foreign branches of indian insurance companiesclause 41—this clause seeks to amend section 34h of the act to designate deputy director or an equivalent officer of the authority as authority for search and seizure ordered by the authority and substitute the securities appellate tribunal in place of the central governmentclause 42—this clause seeks to amend section 35 of the act to empower the authority to regulate amalgamation and transfer of insurance businessclause 43—this clause seeks to substitute section 36 of the act relating to the sanction of amalgamation and transfer of insurance business by the authority by omitting redundant provisionsclause 44—this clause seeks to amend section 37a of the act to provide for thescheme for amalgamation to be notified in the official gazette after approval of the central government this clause allows the policyholder or shareholder or member of each of the insurers to file an appeal before the securities appellate tribunal against the recommendation of the authority for amalgamationclause 45—this clause seeks to substitute sections 38, 39 and 40 of the act dealing with assignment and transfer of insurance policies to make a clear distinction between absolute and conditional assignments of life policies it also empowers the authority to regulate payment of commission for procuring business by taking into consideration the nature and tenure of the policy and in particular the interest of the agents and other intermediaries concernedclause 46—this clause seeks to omit section 40a of the act to omit the redundant provisions relating to limitation of expenditure on commissionclause 47—this clause seeks to substitute sections 40b and 40c of the act to regulate management expenses of life, general and health insurers and re-insurersclause 48—this clause seeks to amend section 41 of the act by enhancing the penalty from five hundred rupees up to ten lakh rupees in case an insurer contravenes the provision relating to prohibition of rebatesclause 49—this clause seeks to substitute section 42 of the act to regulate the appointment of insurance agents by insurers in respect of eligibility, disqualification and other aspects and to make the insurer responsible for all the acts and omissions of its agents including violation of code of conduct specified under clause (h) of sub-section (3) and liable to a penalty which may extend to one crore rupeesclause 50—this clause seeks to substitute sections 42a, 42b and 42c of the act with new section 42a which prohibits insurance business through principal agent, special agent and multilevel marketingclause 51—this clause seeks to amend section 42d of the act to provide for registration in place of licensing of intermediary or insurance intermediary by the authority and imposition of penalty up to one crore rupees on any person acting as an intermediary or an insurance intermediary without registrationclause 52—this clause seeks to substitute section 42e of the act to regulater equirement of capital, form of business and other conditions for intermediary or insurance intermediaryclause 53—this clause seeks to substitute section 43 of the act to enable the insurersto keep the records of insurance agents as long as the insurance agent is in service and for a period of five years after the cessation of appointmentclause 54—this clause seeks to omit section 44 of the act relating to shifting of agents from one insurer to another insurerclause 55—this clause seeks to substitute sections 44a and 45 of the act to provide that no policy of life insurance shall be called in question on any ground after the period of three years it also provides that the policy can be called in question by the insurer within the period of three years only in case of fraudclause 56—this clause seeks to omit sections 47a and 48 of the act relating to claims on small life insurance policies and directors of insurers being companiesclause 57—this clause seeks to substitute section 48a of the act to prohibit insurance agents or insurance intermediaries from becoming director in any insurance companyclause 58—this clause seeks to amend section 49 of the act relating to restriction of dividends and bonuses in order to omit certain redundant provisionsclause 59—this clause seeks to substitute sections 52 and 52a of the act in orderto omit redundant provisions in the section relating to prohibition of the business on dividing principle it further provides for appointment of an administrator by the authority to manage the affairs of the insurerclause 60—this clause seeks to amend section 52bb of the act to provide for appeal to the securities appellate tribunal in place of the central government against the order of attachment of property by the authorityclause 61—this clause seeks to substitute section 52d of the act to provide for termination of appointment of an administrator by the authority in place of the central governmentclause 62—this clause seeks to amend section 52e of the act to provide for final decision on appointment of an administrator by the authority in place of the central governmentclause 63—this clause seeks to amend section 52f of the act to provide the penalty of ten thousand rupees for each day of withholding the documents of property from the administrator appointed by the authority during which such failure continues or ten lakh rupees, whichever is lessclause 64—this clause seeks to amend section 52g of the act to omit the words"central government" as a consequential changeclause 65—this clause seeks to omit sections 52h to 52n (both inclusive) of theact relating to acquisition of the undertakings of the insurers in certain cases by the central government, being redundantclause 66—this clause seeks to amend section 53 of the act to provide for insertion of explanation defining tribunal under the companies act, 2013clause 67—this clause seeks to make consequential amendments in section 58 of the act to substitute relevant sections of the companies act, 2013 in place of indian companies act, 1913clause 68—this clause seeks to omit section 59 of the act relating to return of deposits as such deposits by insurers before registration are proposed to be discontinuedclause 69—this clause seeks to amend the heading in part ii a of the act clause 70—this clause seeks to omit sections 64a and 64b of the act relating to incorporation of the insurance association of india and entry of names of the members in the registerclause 71—this clause seeks to substitute sections 64c and 64d of the act to provide for consequential amendment to the section dealing with the life insurance council and general insurance councilclause 72—this clause seeks to substitute section 64f of the act relating to composition, function and operational issues of the life insurance council and the general insurance council to make them the self-regulatory organisationsclause 73—this clause seeks to amend section 64g of the act to empower the executive committees of life insurance council and general insurance council to nominate members on casual vacancies in such manner as may be laid down in the bye-laws of the council concernedclause 74—this clause seeks to omit section 64-i of the act relating to holding of examination for insurance agents by the life insurance councilclause 75—this clause seeks to amend section 64j of the act to enable the life insurance council to collect such fees as may be laid down in the bye-laws of the council from the insurers carrying on life insurance businessclause 76—this clause seeks to amend section 64l of the act to enable the general insurance council to collect such fees as may be laid down in the bye-laws of the council from the insurers carrying on general insurance businessclause 77—this clause seeks to amend section 64n of the act to empower the authority to specify the manner for holding of joint meeting of the executive committees of the life and general insurance councilsclause 78—this clause seeks to amend section 64r of the act to empower the life insurance council and the general insurance council to make bye-laws for elections, meetings, levy and collection of fees, etcclause 79—this clause seeks to omit sections 64s and 64t of the act relating to transitory provisionsclause 80—this clause seeks to omit sections 64u to 64ul (both inclusive) of the act relating to tariff advisory committee and control of rates in view of the de-tariffing with effect from 01-01-2007clause 81—this clause seeks to insert a new section 64ula in the act to provide transitory provisions for continuation of rates, terms and conditions fixed by the tariff advisory committeeclause 82—this clause seeks to substitute section 64um of the act to empower the authority to regulate the functions, code of conduct, etc, of surveyors and loss assessorsclause 83—this clause seeks to substitute sections 64v and 64va of the act to empower the authority to regulate valuation of the assets and procedure for calculation of solvency margin of insurersclause 84—this clause seeks to substitute section 64vc of the act to empower the authority to regulate opening and closing of places of business of insurersclause 85—this clause seeks to omit part iii and part iiia of the act relating to provident societies, which are no longer permitted to underwrite the insurance business it also omits the provisions relating to insurance co-operative societiesclause 86—this clause seeks to omit part iv of the act relating to mutual insurance companies and life insurance societies, as they are not allowed to underwrite insurance business in indiaclause 87—this clause seeks to amend section 102 of the act to enhance the penalty for default in complying with, or act in contravention of, the act to one lakh rupees for each day during which such failure continues or one crore rupees, whichever is lessclause 88—this clause seeks to substitute sections 103 and 104 of the act to enhance the fine not exceeding twenty-five crore rupees and with imprisonment which may extend to ten years in case a person carries on business of insurance without obtaining a certificate of registration it also enhances the maximum limit of penalty for contravention of provisions relating to investment of controlled fund or assets to twenty-five crore rupeesclause 89—this clause seeks to amend section 105 of the act to enhance the penalty not exceeding one crore rupees in case any executive of the insurer wrongfully obtains or withholds the property under the actclause 90—this clause seeks to substitute sections 105b and 105c of the act to enhance penalty in case an insurer fails to comply with the obligations for rural or social sector or third party insurance for motor vehicles to not exceeding twenty-five crore rupeesit further provides for powers of adjudication to the authority and provides penalty for contravention where there is no separate penalty provided in the actclause 91—this clause seeks to amend section 106a of the act which is consequential in natureclause 92—this clause seeks to omit sections 107 and 107a of the act being redundant clause 93—this clause seeks to substitute section 109 of the act to provide that no court shall take cognizance of any offence punishable under the act save on a complaint made by an officer of the authority or by any person authorised by itclause 94—this clause seeks to substitute section 110 of the act to provide for appeal to the securities and appellate tribunal against the decision of the authority and omit certain redundant provisionsclause 95—this clause seeks to omit section 110e of the act being redundant clause 96—this clause seeks to omit sections 110g and 110h of the act relating to appeals in view of the provision for appeal to the securities appellate tribunalclause 97—this clause seeks to insert a new section 110ha in the act to provide forrecovery of penalties imposed by the authority as arrears of land revenueclause 98—this clause seeks to amend section 111 of the act to omit the words"provident society"clause 99—this clause seeks to substitute section 113 of the act to omit redundant provisions relating to acquisition of surrender value of life insurance policiesclause 100—this clause seeks to amend section 114 of the act to omit and insert the provisions relating to rule making powers in respect of which substantive provisions have been made in the actclause 101—this clause seeks to amend section 114a of the act to omit and insert the provisions relating to regulation making powers in respect of which substantive provisions have been made in the actclause 102—this clause seeks to omit the fifth schedule, sixth schedule and eighth schedule from the act being redundantclause 103—this clause seeks to amend the general insurance business(nationalisation) act, 1972 to insert section 10b to empower the central government to allow public sector general insurance companies to raise money from the market to meet their capital requirementsclause 104—this clause seeks to omit section 25 from the general insurance business(nationalisation) act, 1972 relating to properties in india not to be insured with foreign insurers except with permission of central government as the said provision has been kept in the insurance act, 1938clause 105—this clause seeks to amend section 2 of the insurance regulatory and development authority act, 1999 in order to substitute "insurance regulatory and development authority" with "insurance regulatory and development authority of india"and include corporate agents and third party administrators in the definition of intermediariesclause 106—this clause seeks to amend section 3 of the insurance regulatory and development authority act, 1999 consequent upon the change of the name of the insurance regulatory and development authority to insurance regulatory and development authority of indiaclause 107—this clause seeks to omit clause (c) of sub-section (1) of section 16 of the insurance regulatory and development authority act, 1999 relating to imposition of levy on insurers by the authority as a percentage of premium income of the insurers for insurance regulatory and development authority fundclause 108—this clause seeks to repeal the insurance laws (amendment) ordinance,2014 and to save the amendments made to the insurance act, 1938, the general insurance business (nationalisation) act, 1972 and the insurance regulatory and development authority act, 1999 by the insurance laws (amendment) act, 2015 memorandum regarding delegated legislationclause 100 of the bill seeks to amend section 114 of the insurance act, 1938 which empowers the central government to make rules the matters on which rules may be made, inter alia, relate to-(i) the manner of inquiry under sub-section (1) of section 105c; (ii) the form in which an appeal may be preferred under sub-section (2) and the fee payable in respect of such appeal; (iii) the procedure for filing and disposing of an appeal under subsection (6) of section 110clause 101 of the bill seeks to amend section 114a of the insurance act, 1938 which empowers the insurance regulatory and development authority to make regulations consistent with the act and the rules made thereunder, to carry out the purposes of the act the matters on which regulations may be made, inter alia, relate to (i) manner of making application for registration and documents under sub-section (2) of section 3; (ii) annual fee to the authority and manner of payment under sub-section (1) of section 3a; (iii) the manner in which an abstract of the report of the actuary to be specified; (iv) the fee for procuring a copy of return under sub-section (1) of section 20; (v) the form in which a return giving details of investments made under section 28; (vi) the loans including the loans sanctioned to the full time employees of the insurer under clause (a) of sub-section (3) of section 29; (vii) the sum to be paid by the insurer to any person under section 31b; (viii) the obligation of insurer in respect of rural or social or unorganised sector and backward classes under sections 32b and 32c; (ix) the minimum percentage of insurance business in third party risks of motor vehicles under section 32d; (x) the form in which balance sheets in respect of the insurance business of each of the insurers concerned and the manner in which actuarial reports and abstracts in respect of the life insurance business are to be prepared under clauses (b) and (c) of sub-section (3) of section 35; (xi) the manner of assessment of compensation under the proviso to sub-section (4a) of section 37a; (xii) the fee to be charged by the insurer under sub-section (3) of section 39; (xiii) the manner of payment of benefits under sub-section (12) of section 39; (xiv) the manner and amount of remuneration or reward to be paid or received by way of commission or otherwise to an insurance agent or an intermediary or insurance intermediary under section 40; (xv) the manner and form of expenses of management under section 40c; (xvi) the requisite qualifications or practical training or examination to be passed for appointment as an insurance agent under clause (e)of sub-section (3) of section 42; (xvii) the code of conduct under clause (h) of sub-section(3) of section 42; (xviii) the manner of exclusion of certain assets, the manner of valuation of liabilities and time for furnishing statement under section 64v; (xix) the manner of opening and closing places of business under section 64vc; (xx) the norms for surrender value of life insurance policy under sub-section (1) of section 1132 the rules made under section 114 and the regulations made under section 114a of the insurance act, 1938, shall have to be laid, as soon as they are made, before both houses of parliament3 the matters in respect of which rules and regulations may be made are matters of procedure or 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 annexure extracts from the insurance act, 1938 (4 of 1938) definitions2 in this act, unless there is anything, repugnant in the subject or context,—(1) "actuary" means an actuary possessing such qualifications as may be specified by the regulations made by the authority; 41 of 1999(ia) "authority" means the insurance regulatory and development authority established under sub-section (1) of section 3 of the insurance regulatory and development authority act, 1999; (5a) "chief agent" means a person who, not being a salaried employees of an insurer, in consideration of any commission—(i) performs any administrative and organising functions for the insurer, and(ii) procures life insurance business for the insurer by employing or causing to be employed insurance agents on behalf of the insurer; (7a) "indian insurance company" means any insurer being a company—1 of 1956(a) which is formed and registered under the companies act, 1956; (b) in which the aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed twenty-six per cent paid-up equity capital of such indian insurance company;(c) whose sole purpose is to carry on life insurance business or general insurance business or re-insurance business43 of 1961explanation—for the purposes of this clause, the expression "foreign company" shall have the meaning assigned to it under clause (23a) of section 2 of the income-tax act, 1961 (8a) "insurance co-operative society" means any insurer being a co-operative society,— (b) having a minimum paid-up capital, (excluding the deposits required to be made under section 7) of rupees one hundred crores; (d) whose sole purpose is to carry on life insurance business or general insurance business in india; (9) "insurer" means—(a) any individual or unincorporated body of individuals or body corporate incorporated under the law of any country other than india, carrying on insurance business not being a person specified in sub-clause (c) of this clause which—(i) carries on that business in india, or (ii) has his or its principal place of business or is domiciled in india, or(iii) with the object of obtaining insurance business, employs a representative, or maintains a place of business, in india;7 of 1913(b) any body corporate (not being a person specified in sub-clause (c) of this clause) carrying on the business of insurance, which is body corporate incorporated under any law for the time being in force in india, or stands to any such body corporate in the relation of a subsidiary company within the meaning of the indian companies act, 1913, as defined by sub-section (2) of section 2 of that act, and(c) any person who in india as a standing contract with underwriters who are members of the society of lloyd's whereby such person is authorised within the terms of such contract to issue protection notes, cover notes, or other documents granting insurance cover to others on behalf of the underwriters, but does not include a principal agent, chief agent, special agent, or an insurance agent or a provident society as defined in part iii;(10) "insurance agent" means an insurance agent licensed under section 42 who recieves or agrees to receive payment by way of commission or other remuneration in consideration of his soliciting or procuring insurance business including business relating to the continuance, renewal or revival of policies of insurance; (11) "life insurance business" means the business of effecting contracts of insurance upon human life, including any contract where by the payment of money is assured on death (expect death by accident only) or the happening of any contingency dependent on human life, and any contract which is subject to payment of premiums for a term dependent on human life and shall be deemed to include— (c) the granting of superannunation allowances and annuities payable out of any fund applicable solely to the relief and maintenance of persons engaged or who have been engaged in any particular profession, trade or employment or of the dependents of such persons;7 of 1913(12) "manager" and "officer" have the meanings assigned to those expressions in cluases (9) and (11) respectively of section 2 of the indian companies act, 1913;(13) "managing agent" means a person, firm or company entitled to the management of the whole affairs of a company by virtue of an agreement with the company, and under the control and direction of the directors expect to the extent, if any, otherwise provided for in the agreement, and includes any person, firm or company occupying such position by whatever name called explanation—if a person occupying the position of managing agent calls himself manager or managing director, he shall nevertheless be regarded as managing agent for the purposes of section 32 of this act; (15) "principal agent" means who, not being a salaried employee of an insurer, in consideration of any commission,—(i) performs any administrative and organising functions for the insurer, and(ii) procures general insurance business whether wholly or in part by employing or causing to be employed insurance agents on behalf of the insurer;7 of 1913(16) "private company" and "public company" have the meanings respectively assigned to them in clauses (13) and (13a) of section 2 of the indian companies act, 1913;(17) "special agent' means a person who, not being a salaried employee of an insurer, in consideration of any commission, procures life insurance business for the insurer whether wholly or in part by employing or causing to be employed insurance agents on behalf of the insurer, but does not include a chief agent 2e the provisions of this act shall not apply to an insurer as defined in paragraph (i)or (iii) of sub-clause (a) of clause (9) of section 2 in relation to any class of his insurance business where such insurer has ceased, before the commencement of this act, to enter into any new contracts of that class of businessthis act not to apply to certain insurers, ceasing to enter into new contracts before commencement of actregistration3 (1) (2) every application for registration shall be made in such manner as may be determined by the regulations made be the authority and shall be accompanied by—7 of 1913 6 of 1882 10 of 1866(a) a certified copy of the memorandum and articles of association, where the applicant is a company and incorporated under the indian companies act, 1913, for under the indian companies act, 1882, or under the indian companies act, 1866 or under any act repealed thereby, or, in the case of any other insurer specified in subclause (a), (ii) or sub-clause (b) , of clause (9) of section 2, a certified copy of the deed of partnership or of the deed of constitution of the company, as the case may be, or in the case of an insurer having his principal place of business or domicile outside india, the document specified in clause (a) of section 63;7 of 1913 6 of 1882 10 of 1866(b) the name, address and the occupation, if any, of the directors where the insurer is a company incorporated under the indian companies act, 1913 or under the indian companies act, 1882 or under the indian companies act, 1886 or under any act repealed thereby, and in the case of an insurer specified in sub-clause (a) (ii) of clause(9) of section 2 of the names and addresses of the proprietors and of the manager in india, and in other case the full address of the principal office of the insurer in india, and the names of the directors and the manager at such office and the name and address of some one or more persons resident in india authorised to accept any notice required to be served on the insurer;(c) a statement of the class or classes of insurance business done or to be done, and a statement that the amount required to be deposited by section 7 or section 98before application for registration is made has been deposited together with a certificate from the reserve bank of india showing the amount deposited(d) where the provision of section 6 or section 97 apply, a declaration verified by an affidavit made by the principal officer of the insurer authorised in that behalf that the provisions of those sections as to paid-up equity capital or working capital have been complied with;(e) in the case of an insurer having his principal place of business or domicile outside india, a statement verified by an affidavit made by the principal officer of the insurer setting forth the requirements (if any) not applicable to nationals of the country in which such insurer is constituted, incorporated or domiciled which are imposed by the laws or practice of that country upon indian nationals as condition of carrying on insurance business in that country;(f) a certified copy of the published prospectus, if any, and of the standard policy forms of the insurer and statements of the assured rates, advantages, terms and conditions to be offered in connection with insurance policies together with a certificate in connection with life insurance business by an actuary that such rates, advantages, terms and conditions are workable and sound:provided that in the case of marine accident and miscellaneous insurance business other than workmen's compensation and motor car insurance the above requirements regarding prospectus, forms and statements shall be complied with only is so far as the prospectus, forms and statements may be available;(g) the receipt showing payment of fee as may be determined by the regulations which shall not exceed fifty thousands rupees for each class of business as may be specified by the regulations made by the authority;(h) such other documents as may be specified by the regulations made by the authority 2a if, on receipt of an application for registration and after making such inquiry as he deems fit, the authority is satisfied that—(a) the financial condition and the general character of management of the applicant are sound;(b) the volume of business likely to be available to, and the capital structure and earning prospects of, the applicant will be adequate;(c) the interests of the general public will be served if the certificate of registration is granted to the applicant in respect of the class or classes of insurance business specified in the application; and(d) the applicant has complied with the provisions of sections 2c, 5, 31a and 32and has fulfilled all the requirements of this section applicable to him, the authority may register the applicant as an insurer and grant him a certificate of registration(2c) any person aggrieved by the decision of the authority refusing registration may, within thirty days from the date on which a copy of the decision is received by him, appeal to the central government(2d) the decision of the central government on such appeal shall be final and shall not be questioned before any court(3) notwithstanding anything contained in sub-section (2a), in the case of any insurer having his principal place of business or domicile outside india the authority shall withhold registration or shall cancel a registration already made, if it is satisfied that in the country in which such insurer has his principal place of business or domicile indian nationals are debarred by the law or practice of the country relating to, or applied to insurance from carrying on the business of insurance, or that any requirement imposed on such insurer under the provisions of section 62 is not satisfied(4) the authority shall cancel the registration of an insurer either wholly or in so far as it relates to a particular class of insurance business, as the case may be,—(a) if the insurer fails to comply with the provisions of section 7 or section 98 as to deposits, or(aa) if the insurer fails, at any time, to comply with the provisions of section65va as to the excess of the value of his assets over the amount of his liabilities, or(b) if the insurer is in liquidation or is adjudged an insolvent, or (c) if the business or a class of the business of the insurer has been transferred to any person or has been transferred to or amalgamated with the business of any other insurer, or(d) if the whole of the deposit made in respect of insurance business has been returned to the insurer under section 9, or(e) if, in the case of an insurer specified in sub-clause (c) of clause (9) of section2, the standing contract referred to in that sub-clause is cancelled or is suspended and continues to be suspended for a period of six months, or(ee) if the central government so directs under sub-section (4) of section 33, and the authority may cancel the registration of an insurer—(f) if the insurer makes default in complying with, or acts in contravention of, any requirement of this act or of any rule or any regulation or order made or, any direction issued thereunder, or(g) if the authority has reason to believe that any claim upon the insurer arising in india under any policy of insurance remains unpaid for three months after final judgment in regular course of law, or(h) if the insurer carries on any business other than insurance business or any prescribed business, or41 of 1999(i) if the insurer makes a default in complying with any direction issued or order made, as the case may be, by the authority under the insurance regulatory and development authority act, 1999, or(j) if the insurer makes a default in complying with or acts in contravention of, any requirement of the companies act, 1956 or the life insurance corporation act, 1956 or the general insurance business (nationalisation) act, 1972 or the foreign exchange regulation act, 19731 of 1956 31 of 1956 57 of 1972 46 of 1973(5) when the authority withholds or cancels any registration under sub-section (3)clause (a), clause (aa) or clause (e), clause (ee), clause (f), clause (g), or clause (h) of subsection (4), he shall give notice in writing to the insurer of its decision, and the decision shall take effect on such date as may specify in that behalf in the notice, such date not being less than one month nor more than two months from the date of the receipt of the notice in the ordinary course of transmission(5a) when the authority cancels any registration under clause (b), clause (c), or clause (d), or sub-section (4) the cancellation shall take effect on the date on which notice of the order of cancellation is served on the insurer (5c) where a registration is cancelled under clause (a), clause (aa), clause (e), clause(f), clause (g), or clause (h), or clause (i), or clause (j) of sub-section (4), the authority may at discretion revive the registration, if the insurer within six months from the date on which the cancellation took effect makes the deposits required by section 7 or section 98, or complies with the provisions of section 64va as to the excess of the value of his assets over the41 of 1999amount of his liabilities or has his standing contract restored or has had an application under sub-section (4) of section 3a accepted, or satisfies the authority that no claim upon him such as is referred to in clause (g) of sub-section (4) remains unpaid or that he has complied with any requirement of this act or the insurance regulatory and development authority act, 1999, or of any rule or any regulation, or any order made thereunder or any direction issued under those acts, or that he has ceased to carry on any business other than insurance business or any prescribed business, as the case may be, and complies with any directions which may be given to him by the authority renewal of registration41 of 19993a (1) an insurer who has been granted a certificate of registration under section 3shall have the registration renewed annually for each year after that ending on the 31st day of march, after the commencement of the insurance regulatory and development authority act, 1999(2) an application for the renewal of a registration for any year shall be made by the insurer to the authority before the 31st day of december of the preceding year, and shall be accompanied as provided in sub-section (3) by evidence of payment of the fee as determined by the regulations made by the authority which may vary according to the total gross preminum written direct in india, during the year preceding the year in which the application is required to be made under this section, by the insurer in the class of insurance business to which the registration relates but shall not—(i) exceed one-fourth of one per cent of such premium income or rupees five crores, whichever is less;(ii) be less, in any case, than fifty thousand rupees for each class of insurance business: provided that in the case of an insurer carrying on solely re-insurance business, the provisions of this sub-section shall apply with the modification that instead of the total gross premium written direct in india, the total premiums in respect of facultative re-insurances accepted by him in india shall be taken into account(3) the fee as determined by the regulations made by the authority for the renewal of a registration for any year shall be paid into the reserve bank of india or where there is no office of that bank, into the imperial bank of india acting as the agent of that bank, or into any government treasury, and the receipt shall be sent along with the application for renewal of the registration(4) if an insurer fails to apply for renewal of registration before the date specified insub-section (2) the authority may, so long as an application to the court under sub-section (5d) of section 3 has not been made, accept an application for renewal of the registration on receipt from the insurer of the fee payable with the application and such penalty, not exceeding the fee as determined by the regulations made by the authority, and payable by him, as the authority may require:provided that an appeal shall lie to the central government from an order passed bythe authority imposing a penalty on the insurer(5) the authority shall, on fulfilment by the insurer of the requirements of this section,renew the registration and grant him a certificate of renewal of registration 6 of 1946minimum limits for annuities and other benefits secured by policies of life insurance4 (1) no insurer, not being a co-operative life insurance society to which part iv ofthis act applies, shall pay or undertake to pay on any policy of life insurance issued after the commencement of the insurance (amendment) act, 1946, an annuity of less than one hundred rupees of a gross sum of less than one thousand rupees exclusive of any profit or bonus provided that this shall not prevent an insurer from converting any policy into a paid-up policy of any value or payment of surrender value of any amount(2) nothing contained in this section shall apply to any policy of the descriptionknown as a group policy, where the number of persons covered by the policy is not less thanfifty or such smaller number as may be approved by the authority and a standard form of the policy has been certified in writing by the authority to be a policy of such description or to any policy undertaking to pay a gross sum of more than five hundred rupees or an annuity of more than fifty rupees, issued—(a) by an insurer to any person in his permanent employ in respect of the life of that person, or(b) under any scheme, approved by the authority and complying with such conditions, if any, as he may think fit to impose, whereby premiums due from persons employed under any employer are collected by or under the supervision of the employer, or to any policy issued by a mutual insurance company to which part iv applies and which the authority may by order in writing exempt from the provisions of this section, for so long as the company complies with such conditions, if any, as may be prescribed5 (1) restriction on name of insurer(2) if any insurer, through inadvertence or otherwise, is without such consent as aforesaid registered by a name identical with that by which an insurer already in existence whether previously registered or not is carrying on business or so nearly resembling it as to be calculated to deceive, the first-mentioned insurer shall, if called upon to do so by the authority on the application of the second-mentioned insurer, change his name within a time to be fixed by the authority:6 of 1912provided that nothing in this section shall apply to any insurer carrying on business before the 27th day of january, 1937, under the indian life assurance companies act, 1912:6 of 1946provided further that in the application of this section of any insurer who begins to carry on insurance business after the commencement of the insurance (amendment) act, 1946, the reference to an insurer in existence in sub-section (1) and this sub-section shall be construed as including references to a provident society (as defined in part iii) in existence, whether or not the society is in the course of being dissolved(3) no insurer other than a provident society as defined in part iii, who begins to carry on insurance business after the commencement of this act, shall adopt as its name and no such insurer carrying on business before the commencement of this act shall continue after the expiry of six months from the commencement thereof to use as its name any combination of words which includes the word "provident"requirement as to capital41 of 19996 no insurer carrying on the business of life insurance, general insurance or reinsurance in india on or after the commencement of the insurance regulatory and development authority act, 1999, shall be registered unless he has,—(i) a paid-up equity capital of rupees one hundred crore in case of a person carrying on the business of life insurance or general insurance; or(ii) a paid-up equity capital of rupees two hundred crores in case of a person carrying on exclusively the business as a re-insurer: provided that in determining the paid-up equity capital specified under clause (i) or clause (ii) the deposit to be made under section 7 and any preliminary expenses incurred in the formation and registration of the company shall be excluded:41 of 1999provided further that an insurer carrying on business of life insurance, general insurance or re-insurance in india before the commencement of the insurance regulatory and development authority act, 1999 and who is required to be registered under this act, shall have a paid-up equity capital in accordance with clause (i) and clause (ii), as the case may be, within six months of the commencement of that act6a (1) no public company limited by shares having its registered office in india, shall carry on life insurance business, unless it satisfies all the following conditions, namely:—(i) that the capital of the company consists only of ordinary shares each ofwhich has a single face value;(ii) that, except during any period not exceeding one year allowed by the companyfor payment of calls on shares, the paid-up amount is the same for all shares, whether existing or new:requirements as to capital structure and voting rights and maintenance of registers of beneficial owners of shares47 of 1950provided that the conditions specified in this sub-section shall not apply to a publiccompany which has, before the commencement of the insurance (amendment) act, 1950, issued any shares other than ordinary shares each of which has a single face value or any shares the paid-up amount whereof is not the same for all of them for a period of three years from such commencement(2) notwithstanding anything to the contrary contained in any law for the time being inforce or in the memorandum or articles of association but subject to the other provisions contained in this section the voting right of every shareholder of any public company as aforesaid shall in all cases be strictly proportionate to the paid-up amount of the shares held by him47 of 1950(3) no public company as aforesaid which carries on life insurance business shall,after the commencement of the insurance (amendment) act, 1950, issue any shares other than ordinary shares of the nature specified in sub-section (1)(4) a public company as aforesaid which carries on life insurance business—7 of 1913(a) shall maintain, in addition to the register or members to be maintained underthe indian companies act, 1913, register of shares in which shall be entered the name, occupation and address of the beneficial owner of each share, and shall incorporate therein any change of beneficial owner declared to it within fourteen days from the receipt of such declaration;(b) shall not register any transfer of its shares—7 of 1913(i) unless, in addition to compliance being made with the provisions ofsection 34 of the indian companies act, 1913 the transferee furnishes a declaration in the prescribed form as to whether he proposes to hold the shares for his own benefit or as a nominee, whether jointly or severally, on behalf of others, and inthe latter case giving the name, occupation and address of the beneficial owner or owners, and the extent of the beneficial interest of each;(ii) where, after the transfer, the total paid-up holding of the transferee in the shares of the company is likely to exceed five per cent, of its paid-up capital or where the transferee is a banking or an investment company, is likely to exceed two and a half per cent of such paid-up capital, unless the previous approval of the authority has been obtained to the transfer;(iii) where, the nominal value of the shares intended to be transferred by any individual, firm, group, constituents of a group, or body corporate under the same management, jointly or severally exceeds one per cent of the paid-up equity capital of the insurer, unless the previous approval of the authority has been obtained for the transfer explanation—for the purposes of this sub-clause, the expressions "group"and"same management" shall have the same meanings respectively assigned to them in the monopolies and restrictive trade practices act, 196954 of 1969 47 of 1950(6) if the total paid-up holding of any person in the shares of a compny referred to in sub-section (1) on the commencement of the insurance (amendment) act, 1950, exceed two and a half per cent of its paid-up capital where that person is a banking company or an investment company, or five per cent of its paid-up capital in any other case, he shall not be entitled to any vote as a shareholder of the company in respect of such excess holding of shares47 of 1950(7) where the total paid-up holding of any person in the shares of a company referred to in sub-section (1) on the date of the commencement of the insurance (amendment) act,1950 exceeds five per cent of its paid-up capital where that person is a banking company or an investment company, or ten per cent if its paid-up capital in any other case, he shall dispose of the excess holding of shares within three years from such commencement or such further period not exceeding two years as may be allowed to him by the central government(8) if, after the expiry of three years or of such further period as may be allowed to any person under sub-section (7), the total paid-up holding of any such person has not been reduced to the limits specified in that sub-section, any shares in excess of the limits specified in that sub-section shall vest in the administration-general of the state in which the registered office of the company concerned is situate and the administrator general shall take such steps as may be necessary for taking charge of any property which has been so vested in him and shall dispose of the said shares and the proceeds thereof in such manner as may be prescribed7 of 1913(9) subject to the other provisions contained in this section, but notwithstanding anything contained in the indian companies act, 1913, or in the memorandum or articles of association of any such company as is referred to in sub-section (1), no such company shall refuse to register the transfer of any shares where the transfer is for the purpose of securing compliance with the provision of sub-sections (7) and (8)(10) the central government may, subject to such restrictions as it may think fit to impose, exempt from the operation of sub-sections (6), (7) and (8) any insurance company, in any case where the total paid-up holding of such insurance company in shares of any other insurance company exceeds the limits specified in the said sub-sections, if the other insurance company is or is to be made a subsidary company of the insurance company62 of 1968(11) the provisions of this section, except those of sub-sections (7), (8) and (9) shall, on and from the commencement of the insurance (amendment) act, 1968, also apply to insures carrying on general insurance business subject to the following modifications, namely:—47 of 1950 62 of 1968(i) that references in sub-sections (1), (3), (5) and (6) to the insurance(amendment) act, 1950, shall be construed as references to the insurance (amendment) act, 1968; and(ii) references in sub-section (10) to sub-sections (7) and (8) shall be omittedexplanation—for the purposes of this section, the holding of a person in the shares of a company shall be deemed to include—(i) the total paid-up holding in such shares held by such person in the name of others; and(ii) if any shares of the company are held—(a) by a public limited company, of which such person is a member holding more than ten per cent of the paid-up capital, or(b) by a private limited company, of which such person is a member, or (c) by a company, of which such person is a managing director, manager, managing agent or in which he has a controlling interests, or(d) by a firm in which such person is a partner, or (e) by such person jointly with others, such part of the total paid-up holding of the company or firm or of the total joint holding in those shares, as is proportionate of the contribution made by such peson to the paid-up capital of the company, the paid-up capital of the firm or the joint holding, as the case may be6aa (1) no promoter shall at any time hold more than twenty-six per cent or such other percentage as may be prescribed, of the paid-up equity capital in an indian insurance company:manner of divesting excess shareholding by promoter in certain casesprovided that in a case where an indian insurance company begins the business of life insurance, general insurance or re-insurance in which the promoters hold more than twenty-six per cent of the paid-up equity capital or such other excess percentage as may be prescribed, the promoters shall divest in a phased manner the share capital in excess of the twenty-six per cent of the paid-up equity capital or such excess paid-up equity capital as may be prescribed, after a period of ten years from the date of the commencement of the said business by such indian insurance company or within such period as may be prescribed by the central governmentexplanation—for the removal of doubts, it is hereby declare that nothing contained in the proviso shall apply to the promoters being foreign comapny, referred to in sub-clause (b) of clause (7a) of section 2(2) the manner and procedure for divseting the excess share capital under subsection (1) shall be specified by the regulations made by the authority7 of 19136b (1) for the prupose of enabling any public company carring on life insurance business or bring its capital structure into conformity with the requirements of section 6a, an officer appointed on this behalf by the central government may, notwithstanding anything contained in the indian companies act, 1913,—provision for securing compliance with requirements relating to capital structure(a) examine any scheme proposed for the purpose aforesaid by the directors of the company:provided that—(i) the scheme has been placed before a meeting of the shareholders for their opinion and has been forwarded to the officer together with the opinion of the shareholders thereon, and(ii) the scheme does not involve any diminution of the liability of the shareholders in respect of unpaid-up share capital; (b) invite objections and suggestions in respect of the scheme so proposed;and(c) after considering such objections and suggestions to the scheme so proposed, sanction it with such modifications as he may consider necesssary or desirable (2) any shareholder or other person aggrieved by the decision of the officer sanctioning a scheme under sub-section (1) may, within ninety days of date of the order sanctioning the scheme, prefer an appeal to the high court within whose jurisdiction the registered office of the insurer is situate for the purpose of modifying or correcting any such scheme for the purpose specified in sub-section (1)(3) the decision of the high court where an appeal has been preferred to it under subsection (2), or of the officer aforesaid where no such appeal has been preferred, shall be final and binding on all the shareholders and other persons concerned62 of 1968(4) the provisions of this section shall, on and from the commencement of the insurance(amendment) act, 1968, also apply to insurers carrying on general insurance business6c (1) where a public company limited by shares carrying on insurance business has passed a special resolution for converting itself into a public company limited by guarantee, it may apply to the central government with a scheme for putting the special resolution into effect, including any provision for the alternation of the memorandum or articles of association insofar as it may be necessary for this purposeconversion of company limited by shares into company limited by guarantee(2) if the central government, after giving such notice to any person concerned as it thinks fit, is satisfied—(a) that the scheme makes suitable provision with respect to the repayment, conversion or liquidation of the paid up capital of the company,(b) that the consent of the creditors to the conversion of the company limited by shares into a company limited by guarantee has been obtained, or that suitable provisions have been made for discharging, determining or securing the debts or claims of such creditors, and(c) that the scheme is otherwise reasonable, it may sanction the scheme and thereupon the scheme shall become binding on the company and on all the persons concerned (3) against the decision of the central government sanctioning a scheme under subsection (2), any person aggrieved thereby may, within ninety days of the date of the order sanctioning the scheme, prefer an appeal to the high court within whose jurisdiction the registered office of the insurer is situate(4) the decision of the high court where an appeal has been preferred to it under subsection (3) or of the central government where no such appeal has been preferred, shall be final and binding on all the persons concerned7 of 1913(5) where a scheme has been sanctioned under this section, the company shall file with the registrar of companies a certified copy of the scheme as sanctioned, and thereupon the provisions of the indian companies act, 1913, relating to companies limited by guarantee shall become applicable to the companydeposits7 (1) every insurer shall, in respect of the insurance business carried on by him in india, deposit and deep deposited with the reserve bank of india in one of the offices in india of the bank for and on behalf of the central government the amount hereafter specified, either in cash or in approved securities estimated at the market value of the securities on the day of deposit, or partly in cash and partly in approved securities so estimated,—(a) in the case of life insurance business, a sum equivalent to one per cent of his total gross premium written in india, in any financial year commencing after the 31st day of march, 2000, not exceeding rupees ten crores;(b) in the case of general insurance business, a sum equivalent to three per cent of his total gross premium written in india, in any financial year commencing after the 31st day of march, 2000 not exceeding rupees ten crores;(c) in the case of re-insurance, a sum of rupees twenty crores:provided that, where the business done or to be done in marine insurance only and relates exclusively to country craft or its cargo or both, the amount to be desposited under this sub-section shall be one hundred thousand rupees only:provided further that in respect of any insurer not having a share capital and carrying on only such insurance business as in the opinion of the central government is not carried on ordinarily by insurers under separate policies, the central government may, by notification in the official gazette, order that the provisions of this sub-section shall apply to such insurer with the modification that instead of the sum of rupees twenty lakhs or rupees ten lakhs, as the case may be, the deposit to be made by such insurer shall be such amount, being not less than one hundred and fifty thousand rupees, as may be specified in the said order(2) where the insurer is an insurer specified in sub-clause (c) of clause (9) of section2, he shall be deemed to have complied with the provisions of this section as to deposits, if in respect of insurance business carried on by him in india under a standing contract of the nature referred to in sub-clause (c) of clause (a) of section 2 a deposit of an amount one-anda-half times that specified in sub-section (1) has been made in the reserve bank of india in one of the offices in india of the bank for and on behalf of the central government in cash or approved securities estimated at the market value of securities on the day of deposit by or on behalf of the underwriters who are members of the society of lloyd's with whom he has his standing contract62 of 1968(3) where the depsoit is to be made by an insurer not carrying on insurance business in india immediatley before the commencement of the insurance (amendment) act, 1968, a deposit of rupees ten lakhs shall be made before the application for registration is made, and the provisions of clause (ii) of sub-section (ia) shall apply to such insurer after his registeration as they apply to an insurer specified in clause (a) of sub-section (1)(4) an insurer shall not be registered for any class of insurance business in addition to the class or classes for which is already registered until the full required under sub-section (1) has been made(5) where an insurer who intends to become a member of a group, does not carry on all the classes of insurance business carried on by the other insurers in such group, or, where out of the several insurers who desire to from themselves into a group, any insurer does not carry on all the classes of insurance business carried on by the other insurers who desire to form themselves into the group, such insurer may be registered for that class or those classes of insurance business which is or are carried on by the other insurers of the group or the proposed group, as the case may be, and where any application for registration is made by any such insurer, the authority may notwithstanding anything contained in sub-section (2a) of section 3 or sub-section (4), register such insurer for one or more additional classes of inssurance, if the following conditions are fulfilled, namely:—(a) the authority is satisfied that registration for the proposed one or moreadditional classes of insurance business would qualify the insurer to become a memberof a group;(b) agreements have been executed by all the insurers in the group or proposedgroup, as the case may be, and such agreements, in the opinion of the authority, satisfy the requirements of the explanation to sub-section (ib); and62 of 1968(c) the insurer has, after the commencement of the insurance (amendment) act,1968 made deposit of a sum not less than the total of all the instalments of deposit which he would have been required to make after such commencement till the date of his becoming a member of the group, he had been a member of the group from such commencement(6) the authority shall cancel the registration made in pursuance of the provisions of sub-section (5), if the insurer referred to therein fails to become, whithin a period of three months from the date of such registration, a member of the group or proposed group, as the case may be, and, where such registration has been cancelled, the provisions of this act shall apply to the insurer as if he had not been registered for the class or classes of insurance business in relation to which his registration has been cancelled6 of 1912(7) securities already deposited with the authority of currency in compliance with theindian life assurance companies act, 1912, shall be transferred by him to the reserve bank of india and shall, to the extent of their market value as at the date of the commencement of this act, be deemed to be deposited under this act, as the instalment or as part of theinstalment to be made under the foregoing provisions of this section before the application for registration is made whether any such application is or is not in fact made(8) a deposit made in cash shall be held by the reserve bank of india to the credit of the insurance and shall except to the extent, if any, to which the cash has been invested in securities under sub-section (9a), be returnable to the insurer in cash in any case in which under the provisions of this act a deposit is to be returned; and any interest accruing due and collected on securities deposited under-sub-section (1) or sub-section (2) shall be paid to the insurer, subject only to deduction of the normal commission chargeable for the realisation of interest(9) the insurer may at any time replace any securities deposited by him under this section with the reserve bank of india either by cash or by other approved securities or partly by cash and partly by other approved securities, provided that such cash, or the value of such other approved securities estimated at the market rates prevailing at the time of replacement, or such cash together with such value, as the case may be, is not less than the value of the securities replaced estimated at the market rates prevailing when they were deposited(9a) the reserve bank of india shall, of so requested by the insurer,—(a) sell any securities deposited by him with the bank under this section and hold the cash realised by such sale as deposit, or(b) invest in approved securities specified by the insurer the whole or any part or a deposit held by it in cash or the whole or any part of cash received by it on the sale of or on the maturing of securities deposited by the insurer, and hold the securities in which investment is so made as deposit, and may charge the normal commission on such sale or on such investment (9b) where sub-section (9a) applies,—20 of 1940(a) if the cash realised by the sale of or on the maturing of the securities(excluding in the former case the interest accrued) falls short of the market value of the securities at the date on which they were deposited with the bank, the insurer shall make good the deficiency by a further deposit either in cash or in approved securities estimated at the market value of the securities on the day on which they are deposited, or partly in cash and partly in approved securities so estimated, within a period of two month from the date on which the securities matured or were sold or where the securities matured or were sold before the 21st day of march, 1940, within a period of four months from the commencement of the insurance (amendment) act, 1940; and unless he does so the insurer shall be deemed to have failed to comply with the requirements of this section as to the deposits; and(b) if the cash realised by the sale of or on the maturing of the securities(excluding in the former case the interest accrued) exceeds the market value of the securities at the date on which they were deposited with the bank, the central government may, if satisfied that the full amount required to be deposited under sub-section direct the required to be deposited under sub-section (1) is in deposit, direct the reserve bank to return the excess(10) if any part of a deposit made under this section is used in the discharge of any liability of the insurer, the insurer shall deposit such additional sum in cash or approved securities of the estimated at the market value of the securities on the day of deposit, or partly in cash and partly in such securities, as will make up the amount so used the insurer shall be deemed to have failed to comply with the requirements of sub-section (1), unless the deficiency is supplied within a period of two months from the date when the deposit or any part thereof is so used for discharge of liabilitiesreservation of deposits8 (1) any deposit made under section 7 or section 98 shall be deemed to be part of the assets of the insurer but shall not be susceptible of any assignment or charge; nor shall it be available for the discharge of any liability of the insurer other than liabilities arising out of policies of insurance issued by the insurer so long as any such liabilities remain undischarged; nor shall it be liable to attachment in execution of any decree except a decree obtained by a policyholder of the insurer in respect of a debt due upon a policy which debt the policyholder has failed to realise in any other way(2) where a deposit is made in respect of life insurance business the deposit made in respect thereof shall not be available for the discharge of any liability of the insurer other than liabilities arising out of policies of life insurance issued by the insurerrefund of deposit9 where an insurer has ceased to carry on in india all classes of insurance business and his liabilities in india in respect of all classes of insurance business have been satisfied or are otherwise provided, for the court may, on the application of the insurer,order the return to the insurer of the deposit made by him under this actseparation of accounts and funds10 (1) where the insurer carries on business of more than one of the following classes, namely, life insurance, fire insurance, marine insurance or miscellaneous insurance, he shall keep a separate account of all receipts and payments in respect of each such class of insurance business and where the insurer carries on business of miscellaneous insurance whehter alone or in conjunction with business of another class, he shall, unless the authority waives this requirement in writing, keep a separate account of all receipts and payments in respect of each of such sub-classes of miscellaneous insurance business as may be prescribed in this behalf:provided that no sub-class of miscellaneous insurance business shall be, prescribed under this sub-section if the insurance business comprised in the sub-class consist of insurance contracts which are terminable by the insurer at intervals not exceeding twelve months and under which, if a claim arises, the insurer's liability to pay benefit ceases within one year of the date on which the claim arose6 of 1946(2) where the insurer carries on the business of life insurance all receipts due in respect of such business, shall be carried to and shall form a separate fund to be called the life insurance fund the assets of which shall, after the expiry of six months from the commencement of the insurance (amendment) act, 1946, be kept distinct and separate from all other assets of the insurer and the deposit made by the insurer in respect of life insurance business shall be deemed to be part of the assets of such fund; and every insurer shall, within the time limited in suh-section (1) of section 15 in regard to the furnishing of the statements and accounts referred to in section 11, furnish to the controller a statement showing in detail such assets as at the close of every calendar year duly certified by an auditor or by a person qualified to audit under the law of the insurer's country:provided that such statement shall, in the case of an insurer to whom section 11applies, be set out as part of the balance-sheet mentioned in clause (a) of sub-section (1) of that section:provided further that an insurer may show in such statement all the assets held in his life department, but at the same time showing any deductions on account of general reserves and other liabilities of that department:provided also that the authority may call for a statement similarly certified of such assets as at any other date specified by him to be furnished within a period of three months from the date with reference to which the statement is called foraccounts and balance-sheet11 (1) every insurer, in the case of an insurer specified in sub-clause (a) (ii) or subclause (b) of clause (9) of section 2 in respect of all insurance business transacted by him, and in the case of any other insurer in respect of the insurance business transacted by him in india shall at the expiration of each financial year prepare with reference to that year—(a) in accordance with the regulations contained in part i of the first schedule, a balance-sheet in the form set forth in part ii of that schedule;(b) in accordance with the regulations contained in part i of the second schedule, a profit and loss account in the forms set forth in part ii of that schedule, except where the insurer carries on business of one class only of the following classes, namely, life insurance, fire insurance of marine insurance and no other business;(c) in respect of each class or sub-class of insurance business for which he is required under sub-section (1) of section 10 to keep a separate account of receipts and payments, a revenue account in accordance with the regulations, and in the form or forms, set forth in the third schedule applicable to that class or sub-class of insurance business41 of 1999(1a) notwithstanding anything contained in sub-section (1), every insurer, on or after the commencement of the insurance regulatory and development authority act, 1999, in respect of insurance business transacted by him and in respect of his shareholders funds, shall, at the expiration of each financial year, prepare with reference to that year, a balancesheet, a profit and loss account, a separate account of receipts and payments, a revenue account in accordance with the regulations made by the authority(ib) every insurer shall keep separate accounts relating to funds of shareholders and policyholders7 of 1913(2) unless the insurer is a company as defined in clause (2) of sub-section (1) of section 2 of the indian companies act, 1913 accounts and statements referred to in subsection (1) shall be signed by the insurer, or in the case of a company by the chairman, if any and two directors and the principal officer of the company, or in the case of a firm by two partners of the firm, and shall be accompanied by a statement containing the names, descriptions and occupations of, and the directorships help by, the persons in charge of the management of the business during the period to which such accounts and statement refer and by a report on the affairs of the business during that period6 of 1912(3) where an insurer carrying on the business of insurance at the commencement of this act has prepared the balance-sheet and accounts required by the indian life assurance companies act, 1912, or has based his accounts upon the financial and not the calender year, the provisions of this section shall, if the central government so directs in any case, apply until the 31st day of december, 1939, as if sub-section (1) reference to the calendar year where references to the financial yearaudit7 of 1913 7 of 191312 the balance-sheet, profit and loss account, revenue account and profit and lossappropriation account of every insurer, in the case of an insurer specified in sub-clause (a)(ii) or sub-clause (b) of clause (9) of section 2 in respect of all insurance business transanctedby him, and in the case of any other insurer in respect of the insurance business transacted by him in india, shall, unless they are subject to audit under the indian companies act, 1913 be audited annually by an auditor, and the auditor shall in the audit of all such accounts have the powers of, exercise the functions vested in, and discharge the duties and be subject to the liabilities and penalties imposed on, auditors of companies by section145 of the indian companies act, 1913actuarial report and abstract13 (1) every insurer carrying on life insruance business shall, in respect of the lifeinsurance transacted by him in india, and also in the case of an insurer specified in subclause (a) (ii) or sub-clause (b) of clause (9) of section 2 in respect of all life insurancebusiness transacted by him, once at least every year course an investigation to be made by an actuary into the financial condition of the life insurance business carried on by him, including a valuation of his liability in respect thereto and shall cause an abstract of the report of such actuary to be made in accordance with the regulations contained in part i of the fourth schedule and in conformity with the requirements of part ii of that schedule:provided that the authority may, having regard to the circumstances of any particularinsurer, allow him to have the investigation made as at a date not later than two years from the date as at which the previous investigation was made:47 of 1950provided further that for an insurer carrying on life insurance business in india at the commencement of the insurance (amendment) act, 1950, the last date as at which the first investigation after such commencement should be caused to be made by an actuary shall be—(a) the 31st day of december, 1950, or the date of expiration of five years from the date at which the last investigation was made by an actuary before such commencement, which ever is earlier, where the said last investigation was at a date—(i) before the 31st day of december, 1946 but not more than five years before such commencement, or(ii) after the 30th day of december, 1946 but before the 31st day of december, 1947, and had disclosed a deficit in the life insurance fund; or (b) the 31st day of december, 1951, where the last investigation by an actuary before such commencement was at a date—(i) after the 30th day of december, 1946, but before the 31st day of december, 1947, and did not disclose a deficit in the life insurace fund; or(ii) after the 31st day of december, 1947, but before the 31st day of december, 1948; (c) the 31st day of december, 1952, where the last investigation by an actuary before such commencement was as at any date after 30th day of december, 1948, but before the 1st day january, 1950:41 of 1999provided also that for an insurer carrying on life insurance business in india immediatelybefore the commencement of the insurance regulatory and development authority act, 1999, the last date as which the first investigation after such commencement should be caused by an actuary, shall be the 31st day of march, 2001:provided also that, in the case of an insurer who has not caused an investigation to be made by an actuary as at any date prior to such commencement, the date of commencement of life insurance business in india shall, for the purpose of the preceding proviso, be deemed to be the date as at which the last investigation was made by an actuary before such commencement and such investigation shall be deemed to have disclosed no deficit in the life insurance fund:41 of 1999provided also that every insurer, on or after the commencement of the insuranceregulatory and development authority act, 1999, shall cause an abstract of the report of the actuary to be made in the manner specified by the regulations made by the authority| | | | | ||------|------|------|------|-----|(4) there shall be appended to every such abstract a statement, in conformity with their requirement of a part ii of the fifth schedule and prepared in accordance with the regulations contained in part i of that schedule of the life insurance business in force at the date to which the account of the insurer are made up for the purposes of such abstract:provided that, if the investigation referred to in sub-sections (1) and (2) is made annually by any insurer, the statement need not be appended every year but shall be appended at least once in every three years:provided further that the statement referred to in sub-section (4) shall be appended in the form and in the manner specified by the regulations made by the authority| | | | | ||------|------|------|------|-----|(6) the provisions of this section relating to the life insurance business shall apply also to any such sub-class of insurance business included in the class "miscellaneous insurance" as may be prescribed under sub-section (1) of section10; and the authroity may authorise such modification and variation of regulations contained in part i of the forth and fifth schedules and of the requirement of part ii of those schedules as may be necessary to facilitate their application to any such sub-class of insurance business:provided that, if the authority is satisfied that the number and amount of transactions carried out by an insurer in any such sub-class of insurance business is so small as to render periodic investigation and valuation unnecessary, it may exempt that insurer from the operaiton of this sub-section in respect of that sub-class of insurance business14 every insurer in the case of insurer specified in sub-clause (a) (ii) or sub-clause (b)of clauses (9) of section 2 in respect of all business transacted by him, and in the case of any other insurer in respect of the insurance business transacted by him in india, shall maintain—register of policies and register of claims(a) a register or record of policies in which shall be entered in respect of every policy issued by the insurer, the name and address of the policy holder, the date when the policy was effected and a record of any transfer, assignment of nomination of which the insurer has notice, and(b) a register of record of claims, in which shall be entered every claim made together with the date of the claim, the name and address of the claimant and the date on which the claim was discharged, or, in the case of a claim which is rejected, the date of rejection and the ground thereforsubmission of returns15 (1) the audited accounts and statements referred to in section 11 or sub-section(5) of section 13 and the abstract and statement referred to in section 13 shall be printed, and four copies thereof shall be furnished as returns to the authority within six months from the end of the period to which they refer:provided that the said period of six months shall in the case of insurers having their principal place of business or domicile outside india and in the case of insurers constituted, incorporated or domiciled in india but also carrying on business outside india be extended by three months, and provided further that the central government may in any case extend the time allowed by this sub-section for the furnishing of such returns by a further period not exceeding three months(2) of the four copies so furnished one shall be signed in the case of a company by the chairman and two directors and by the principal officer of the company and, if the company has a managing director or managing agent, by that director or managing agent, in the case of a firm, by two partners of the firm, and, in the case of an insurer being an individual, by the insurer himself and one shall be singed by the auditor who made the audit or the actuary who made the valuation, as the case may be(3) where the insurer's principal place of business or domicile is outside india he shall forward to the authority along with the documents referred to in section 11, the balancesheet, profit and loss account and revenue account and the valuation reports and valuation statements, if any, which the insurer is required to file with the public authority of the country in which the insurer is constituted, incorporated or domiciled, or, where such documents are not required to be filed, a certified statement showing the total assets and liabilities of the insurer at the close of the period covered by the said documents and his total income and expenditure during that periodreturns by insurers established outside india16 (1) where, by the law of the country in which an insurer, not being an insurer specified in sub-clause (a) (ii) or sub-clause (b) of clause (9) of section 2, is constituted, incorporated or domiciled, the insurer is required to prepare and to furnish to a public authority of that country documents of substantially the same nature as the documents required to be furnished as returns in accordance with the provisions of section 15, the provisions of sub-section (2) of this section shall apply to such insurer in lieu of the provisions of sections 11, 12, 13, and 15(2) the insurer shall, within the time specified in sub-section (1) of section 15, furnish to the authority four certified copies in the english language of every balance-sheet, account, abstract, report and statement supplied to the public authority referred in sub-section (1) of this section, and in addition thereto, four certified copies in the english language of each of the following statements, namely:—(a) a statement audited by an auditor or by a person duly qualified under the law of the insurer in india as at the date of any balance-sheet so furnished;(b) for each class or sub-class of insurance business for which he is required under sub-section (1) of section 10 to keep a separate account of receipts and payments, a revenue account for the period covered by any account so furnished, prepared in accordance with the regulations and in the form or forms, set forth in the third schedule applicable to that class or sub-class of insurance business and similarly audited showing separately with respect to business transacted by the insurer in india the details required to be supplied in a revenue account furnished under this clause of this subsection;(c) a separate abstract of the valuation report in respect of all business transacted in india in each class or sub-class or insurance business to which section 13 refers, prepared in the manner required by that section; and(d) a declaration in the prescribed form stating that all amounts received by the insured directly or indirectly whether from his head office or from any other source outside india have been shown in the revenue account except such sums as properly appertain to the capital account7 of 1913 6 of 1882 10 of 1866exemption from certain provisions of the indian companies act, 191317 where an insurer, being a company incorporated under the indian companies act,1913 or under the indian companies act, 1882 or under the indian companies act, 1866 or under any act repealed thereby, in any year furnishes his balance-sheet and accounts in accordance with the provisions of section 15, he may at the same time send to the registrar of companies, copies of such balance-sheet and accounts; and where such copies are so sent, it shall not be necessary for the company to file copies of the balance-sheet and account with the registrar as required by sub-section (1) of section 134 of the first mentioned act and such copies so sent shall be chargeable with the same fees and shall be dealt with in all respects as if they were filed in accordance with that section17a nothing in this act shall apply to the preparation of accounts by an insured and the audit and submission thereof in respect of any accounting year which has expired prior to the commencement of this act, and notwithstanding the other provisions of this act such accounts shall be prepared, audited and submitted in accordance with the law in force immediately before the commencement of this act this act not to apply to preparation of accounts, etc, forperiods prior to this act coming into force custody and inspection of documents and supply of copies20 (1) every return furnished to the authority or certified copy thereof shall be kept by the authority and shall he open to inspection; and any person may procure a copy of any such return, or of any part thereof, on payment of a fee of six annas for every hundred words or fractional part thereof required to be copied, any five figures being deemed equivalent to one word(2) a printed or certified copy of the accounts, statements and abstract furnished in accordance with the provisions of section 15 or section 16 shall, on the application of any shareholder or policy holder made at any time within two years from the date on which the documents was so furnished, be supplied to him by the insurer within fourteen days when the insurer is constituted, incorporated or domiciled in india and in any other case within one month of such application(3) a copy of the memorandum and articles of association of the insurer, if a company shall on the application of any policy holder, be supplied to him by the insurer on payment of one rupee21 (1) if it appears to the authority that any return furnished to it under the provisions of this act is incorrect or defective in any respect it may—powers of authority regarding returns (d) decline to accept any such return unless the inaccuracy has been corrected or the deficiency has been supplied before the expiry of one month from the date on which the requisition asking for correction of the inaccuracy or supply of the deficiency was delivered to the insurer or of such further time as the authority may specify in the requisition and if it declines to accept any such return, the insurer shall be deemed to have failed to comply with the provisions of section 15 or section 16 for section 28 or section 28a or section 28b or section 64v relating to the furnishing of returns (2) the court may on the application of an insurer and after hearing the authority cancel any order made by authority under clauses (a), (b) or (c) of sub-section (1) or may direct the acceptance of any return which the authority has declined to accept, if the insurer satisfied the court the action of the authority was in the circumstances unreasonable:provided that no application under this sub-section shall be entertained unless it is made before the expiration of four months from the time when the authority made the order or declined to accept the returnpowers of authority to order revaluation22 (1) if it appears to the authority that an investigation or valuation to which section13 refers or an abstract of a valuation report furnished under clause (c) of sub-section (2) of section 16 does not properly indicate the condition of the affairs of the insurer by reason of the faulty basis adopted in the valuation, it may, after giving notice to the insurer and giving him an opportunity to be heard, cause an investigation and valuation as at such date as the authority may specify to be made at the expense of the insurer by an actuary appointed by the insurer for this purpose and approved by the authority and the insurer shall place at the disposal of the actuary so appointed and approved all the material required by the actuary for the purposes of the investigation and valuation within such period, not being less than three months, as the authority may specify(2) the provisions of sub-sections (1) and (4) of section 13, and of sub-sections (1)and (2) of section 15 or, as the case may be, of sub-section (2) of section 16, shall apply in relation to an investigation and valuation under this section:provided that the abstract and statement prepared as the result of such investigation and valuation shall be furnished by such date as the authority may specify investment, loans and managementinvestment of assets27 (1) every insurer shall invest and at all times keep invested assets equivalent to not less than the sum of—(a) the amount of this liabilities to holders of life insurance policies in india on account of matured claims, and(b) the amount required to meet the liability on policies of life insurance maturing for payment in india, less—(i) the amount of premimums which have fallen due to the insurer on such policies but have not been paid and the days of grace for payment of which have not expired, and(ii) any amount due to the insurer for loans granted on and within the surrender values of policies of life insurance maturing for payment in india issued by him or by an insurer whose business he has acquired and in respect of which he has assumed liability, in the manner following, namely, twenty-five per cent of the said sum in government securities, a further sum equal to not less than twenty-five per cent of the said sum in government securities or other approved securities and the balance in any of the approved investments specified in sub-section (1) of section 27a or, subject to the limitations conditions and restrictions specified in sub-section (2) of that section, in any other investment(2) for the purposes of sub-section (1),—(a) the amount of any deposit made under section 7 or section 98 by the insurer in respect of his life insurance business shall be deemed to be assets invested or kept invested in government securities;47 of 1950(b) the securities of, or guaranteed as to principal and interest by, the government of the united kingdom shall be regarded as approved securities other than government securities for a period of four years from the commencement of the insurance (amendment) act, 1950, in the manner and to the extent herinafter specified, namely:—(i) during the first year, to the extent of twenty-five per cent in value of the sum referred to in sub-section (1);(ii) during the second year, to the extent of eighteen and three fourth per cent in value of the said sum;(iii) during the third year, to the extent of twelve and a half per cent in value of the said sum; and(iv) during the fourth year, to the extent of six and a quarter per cent, in value of the said sum: provided that, if the authority so directs in any case, the securities specified in clause (b) shall be regarded as approved securities other than government securities for a longer period than four years, but not exceeding six years in all, and the manner in which and the extent to which the securities shall be so regarded shall be as specified in the direction;(c) any prescribed assets shall, subject to such conditions, if any, as may be prescribed, be deemed to be assets invested or kept invested in approved investments specified in sub-section (1) of section 27a(3) in computing the assets referred to in sub-section (1),—(a) any investment made with reference to any currency other than the indian rupee which is in excess of the amount required to meet the liabilities of the insurer in india with reference to that currency, to the extent of such excess; and(b) any investment made in the purchase of any immovable property outside india or on the security of any such property, shall not be taken into account: provided that nothing contained in this sub-section shall affect the operation of subsection (2):47 of 1950provided further that the authority may, either generally or in any particular case, direct that any investment, whether made before or after the commencement of the insurance (amendment) act, 1950, and whether made in or outside india, shall, subject to such conditions as may be imposed, be taken into account, in such manner as may be specified in computing the assets referred to in sub-section (1) and where any direction has been issued under this proviso copies thereof shall be laid before parliament as soon as may be after it is issued(4) where an insurer has accepted reassurance in respect of any policies of life insurance issued by another insurer and maturing for payment in india or has ceded reassurance to another insurer in respect of any such policies issued by himself, the sum referred to in sub-section (1) shall be increased by the amount of the liability involved in such acceptance and decreased by the amount of the liability involved in such cession(5) the government securities and other approved securities in which assets are under sub-section (1) to be invested and kept invested shall be held by the insurer free of any encumbrance, charge, hypothecation or lien(6) the assets required by this section to be held invested by an insurer incorporated or domiciled outside india shall, except to the extent of any part thereof which consists of foreign assets held outside india, be held in india and all such assets shall be held in trust for the discharge of the liabilities of the nature referred to in sub-section (1) and shall be vested in trustees resident in india and approved by the authority and the instrument of trust under this sub-section shall be executed by the insurer with the approval of the authority and shall define the manner in which alone the subject-matter of the trust shall be dealt withexplanation—this sub-section shall apply to an insurer incorporated in india whose share capital to the extent of one-third is owned by, or the members of whose governing body to the extent of one-third consists of members domiciled elsewhere than in india27a (1) no insurer shall invest or keep invested any part of his controlled fund otherwise than in any of the following approved investments, namely:—further provisions regarding investments(a) approved securities; (b) securities of, or guaranteed as to principal and interest by the government of the united kingdom;(c) debentures or other securities for money issued with the permission of the state government by any municipality in a state;(d) debentures or other securities for money issued by any authority constituted under any housing or building scheme approved by the authority or a state government or by any authority or body constituted by any central act or act of a state legislature;(e) first mortgage on immovable property situated in india under any housing or building scheme of the insurer approved by the authority or a state government;(f) debentures secured by a first charge on any immovable property, plant or equipment of any company which has paid interest in full for the five years immediately preceding or for at least five out of the six or seven years immediately preceding on such or similar debentures issued by it;(g) debentures secured by a first charge on any immovable property, plant or equipment of any company where either the book value or the market value, whichever is less, of such property, plant or equipment is more than three times the value of such debentures;(h) first debentures secured by a floating charge on all in its assets of any company which has paid dividends on its ordinary shares for the five years immediately preceding or for at least five out of the six or seven years immediately preceding;(i) preference shares of any company which has paid dividends on its ordinary shares for the five years immediately preceding or for at least five out of the six or seven years immediately preceding;(j) preference share of any company on which dividends have been paid for the five years immediately preceding or for at least five out of the six or seven years immediately preceding and which have priority in payment over all the ordinary shares of the company in winding up;(k) shares of any company which have been guaranteed by another company, such other company having paid dividends on its ordinary shares for the five years immediately preceding or for at least five out of the six or seven years immediately preceding:provided that the total amount of shares of all the companies under guarantee by the guaranteeing company is not in excess of fifty per cent of the paid up amount of preference and ordinary shares of the guaranteeing company;(l) shares of any company on which dividends of not less than four per centincluding bonus have been paid for the seven years immediately preceding or for at least seven out of the eight or nine years immediately preceding;(m) first mortgages on immovable property situated in india or in any other country where the insurer is carrying on insurance business:provided that the property mortagaged is not leasehold property with an outstanding term of less than thirty years and the value of the property exceeding by one-third, or if it consists of buildings, exceeds by one-half, the mortgaged money;(n) immovable property situated in india or in any other country where the insurer is carrying on insurance business:provided that the property is free of all encumbrances; (o) loans on life interests, or on policies of life insurance within their surrender valuses issued by him or by an insurer whose business he has acquired and in respect of which business he has assumed liability;(p) life interests;2 of 1934 6 of 1912(q) fixed deposits with banks included for the time being in the second schedule to the reserve bank of india act, 1934 or with co-operative societies registered under the indian co-operative societies act, 1912, or under any other law for the time being in force, the primary object of which is to finance other co-operative societies similarly registered;(r) debentures of, or shares in co-operative societies registered under the indian co-operative societies act, 1912, or under any other law for the time being in force;2 of 1912(s) such other investment as the authority may, by notification in the official gazette, declare to be approved investments for the purposes of this section (2) notwithstanding contained in sub-section (1), an insurer being a company or a cooperative life insurance society as defined in clause (b) of sub-section (1) of section 95, may, subject to the provisions contained in the next succeeding sub-section, invest or keep invested any part of his controlled fund otherwise than in an approved investment, if—(i) after such investment, the total amounts of all such investments of the insurer do not exceed fifteen per cent of the sum referred to in sub-section (1) of section 27,(ii) the investment is made, or, in the case of any investment already made, the continuance of such investments is with the consent of all the directors present at a meeting and eligible to vote, special notice of which has beeen given to all the directors then in india, and all such intestments, including investments in which any director is interested, are reported with out delay to the authority with full details of the investments and the extent of the director's interest in any such investment (3) an insurer shall not out of his controlled fund invest or keep invested in the share of any one banking company or investment company more than—(a) two and a quarter per cent of the sum referred to in sub-section (1) of section 27, or(b) two percent of the subscribed share capital and debentures of the banking company or investment company concerned, whichever is less(4) an snsurer shall not out of the controlled fund invest or keep invested in the shares or debentures of any one company other than a banking company or investment company more than—(a) two and a quarter per cent of the sum referred to in sub-section (1) of section 27, or(b) ten per cent of the subscribed share capital and debentures of the company, whichever is less:provided that nothing in this sub-section shall apply to any investment made with the previous consent of the authority by an insurer, being a company with a view to forming a subsidiary company carrying on insurance business(5) an insurer shall not out of his controlled fund invest or keep invested any sum in the shares or debentures of any private limited company(6) where an investment is in partly paid-up shares, the uncalled liability on such shares shall be added to the amount invested for the purpose of computing the percentages referred to in clause (a) of sub-section (3) and clause (a) of sub-section (4)(7) notwithstanding anything contained in sub-sections (3) and (4), where new shares are issued to the existing shareholders by a company the existing shares of which are covered by clause (i) or clause (k) or clause (l) of sub-section (1) and of which an insurer is already a shareholder, the insurer may subscribe to such new shares:provided that the proportion of new shares subscribed by him does not exceed the proportion which the paid-up amount on the shares held by him immediately before such subscription bears to the total paid-up capital of the company at the time of such subscription(8) if, on an application submitted through the authority the authority is satisfied that special grounds exist warranting such exemption, the authority may for such period, to such extent and in relation to such particular investments and subject to such conditions as may be specified by it in this behalf, exempt an insurer from all or any of the provisions of sub-sections (3), (4) and (7)2 of 1912(9) an insurer shall not keep more than three per cent of the controlled fund in fixed deposit or current deposit, or partly in fixed deposit and partly in current deposit, with any one banking company or with any one co-operative society registered under the indian cooperative societies act, 1912, or under any other law for the time being in force and doing banking business:provided that in applying this sub-section to the amount in deposit with a banking company on any day all the premiums collected by that company on behalf of the insurer during the preceding thirty days shall be excluded:provided further that the authority may permit a co-operative life insurance society as defined in clause (b) of sub-section (1) of section 95 to keep more than three per cent of its controlled fund in fixed deposit with any co-operative society referred to in this sub-section, if the fixed deposit is secured by a first mortgage on any immovable property(10) all assets forming the controlled fund, not being government securities or other approved securities in which assets are to be invested or held invested in accordance with section 27, shall (except for a part thereof not exceeding one-tenth of the controlled fund in value which may, subject to such conditions and restrictions as may be prescribed, be offered as security for any loan taken for purposes of any investment), be held free of any encumbrance, charge, hypothecation or lien(11) if at any time the authority considers any one or more of the investments constituting an insurer's controlled fund to be unsuitable or undesirable, the authority may, after giving the insurer an opportunity of being heard, direct him to realise the investment or investments, and the insurer shall comply with the direction within such time as may be specified in this behalf by the authority47 of 1950(12) every insurer in existence at the commencement of the insurance (amendment)act, 1950, whose investments or any part thereof at such commencement contravene or contravenes any of the provisions of this section, shall, within ninety days from such commencement, submit to the authority a report specifying all such investments, and if the authority is satisfied that it will not be in the interest of the insurer or any class of insurers generally to any such investments, it may, by order, direct that the provisions of this section other than the provisions contained in sub-section (11) shall not apply in relation to anysuch investments or to any class of investments generally for such period or periods as may be specified in the order(13) without prejudice to the powers given to the authority by sub-section (11), nothing contained in this section shall be deemed to require any insurer to realise any investment made in conformity with the provisions of sub-section (1) after the commencement of this act which, after the making thereof, has ceased to be an approved investment within the meaning of this section(14) nothing contained in this section shall be deemed to affect in any way the manner in which any moneys relating to the provident fund of any employee or to any security taken from any employee or other moneys of a like nature are required to be held by or under any central act, or act of a state legislatureexplanation—in this section "controlled fund" means—(a) in the case of any insurer specified in sub-clause (a) (ii) or sub-clause (b) of clause (9) of section 2 carrying on life insurance business—(i) all his funds, if he carries on no other class of insurance business; (ii) all the funds appertaining to his life insurance business if he carries onsome other class of insurance business also; and(b) in the case of any other insurer carrying on iife insurance business—(i) all his funds in india, if he carries on no other class of insurance business; (ii) all the funds in india appertaining to his life insurance business if hecarries on some other class of insurance business also;but does not include any fund or portion thereof in respect of which the authority is satisfied that such fund or portion thereof, as the case may be, is regulated by the law of any country outside india or in respect of which the authority is satisfied that it would not be in the interest of the insurer to apply the provisions of this section62 of 196827b (1) no insurer carrying on general insurance business shall, after thecommencement of the insurance (amendment) act, 1968, invest or keep invested any part of his assets otherwise than in any of the following approved investments, namely:—further provisions regarding investments(a) the investments specified in clauses (a) to (e), (n), (q) and (r) of sub-section(1) of soction 27a;(b) debentures secured by a first charge on any immovable property, plant orequipment of any company which has paid interest in full for the three years immediately preceding or for at least three out of the four or five years immediately preceding on such or similar debentures issued by it;(c) debentures secured by a first charge on any immovable property, plant orequipment of any company where either the book value or the market value, whichever is less, of such property, plant or equipment is more than twice the value such debentures;(d) first debentures secured by a floating charge on all its assets or by a fixed charge on fixed assets and floating charge on all other assets of any company which has paid dividends on its equity shares for the three years immediately preceding or for at least three out of the four or five years immediately preceding the date of the investment;(e) preference shares of any company which has paid dividends on its equity shares for the three years immediately preceding or for at least three out of the four or five years immediately preceding;(f) preference shares of any company on which dividends have been paid for the three years immediately preceding or for at least three out of the four or five years immediatedy preceding and which have priority in payment over all the equity areas of the company in winding up;(g) shares of any company which have been guaranteed by another company, such other company having paid dividends on its equity shares for the three years immediately preceding or for atleast three out of the four or five years immediately preceding:provided that the total amount of shares of all the companies under guarantee by the guaranteeing company is not in excess of fifty per cent of the paid-up amount of preference and equity shares of the guaranteeing company;(h) shares of any company on which dividends of not less than four per centincluding bonus have been paid for the three years immediately preceding or for at least three out of the four or five years immediately preceding;(i) first mortgages on immovable property situated in india or in any other country where the insurer is carring on insurance business:providing that the property mortgaged is not leasehold property with an outstanding term of less than fifteen years and the value of the property exceeds by one-third, or if it consists of buildings, exceeds, by one-half, the mortgage money;(j) such other investments as the authority may, by notification in the official gazette, declare to be approved investments for the purposes of this section (2) any prescribed assets shall, subject to such conditions, if any, as may be prescribed, be deemed to be assets invested or kept invested in approved investment specified in subsection (1)(3) notwithstanding anything contained in sub-section (1), an insurer may, subject to the provisions contained in the next succeeding sub-sections, invest or keep invested any part of his assets otherwise than in an approved investment specified in sub-section (1), if—(i) after such investment, the total amount of all such investments of the insurer do to exceed twenty-five per cent of his assets, and(ii) the investment is made, or, in the case of any investment already made, the continunace of such investment is with the consent of all the directors, other than the directors appointed under section 34c, present at a meeting and eligible to vote, special notice of which has been given to all the directors then in india, and all such investments, including investments in which any director is interested, are reported without delay to the authority with full details of the investments and the extent of the director's interest in any such investment: provided that the making, or the continuance, of such investment is not objected to by any director appointed under section 34c(4) an insurer shall not invest or keep invested any part of his assets in the shares of any one banking company or investment company more than—(a) ten per cent of his assets, or(b) two per cent of the subscribed share capital and debentures of the banking company or investment company concerned, whichever is less(5) an insurer shall not invest or keep invested any part of his assets in the shares or debenturers of any one company other than a banking company or investment company more than—(a) ten per cent of his assets, or (b) ten per cent of the subscribed share capital and debentures of the company, whichever is less:1 of 1956provided that nothing in this sub-section shall apply to any investment made by an insurer in the shares of any other insurer if such other insurer is a company within the meaning of section 3 of the companies act, 1956 and carries on insurance or re-insurance business in india(6) an insurer shall not invest or keep invested any part of his assets in the shares or debentures of any private company(7) where an investment is in partly paid-up shares, the uncalled liability on such shares shall be added to the amount invested for the purpose of computing the percentages referred to in clause (a) of sub-section (4) and clause (a) of sub-section (5)(8) notwithstanding anything contained in sub-sections (4) and (5), where new shares are issued to the existing sharedholders by a company, the existing shares of which are covered by clause (e) or clause (g) or clause (h) of sub-section (1) and of which an insurer is already a shareholder, the insurer may subscribe to such new shares:provided that the proportion of new shares subscribed by him does not exceed the proportion which the paid-up amount on the shares held by him immediately before such subscription bears to the total paid-up capital of the company at the time of such subscription(9) if, on an application submitted to the authority is satisfied that special grounds exist warranting such exemption, may, for such period, to such extent and in relation to such particular investments and subject to such conditions as may be specified by it in this behalf, exempt an insurer from all or any of the provisions of sub-sections (4), (5) and (8)2 of 1912(10) an insurer shall not keep more than ten per cent of his assets in fixed deposit or current deposit, or partly in fixed deposit and partly in current deposit, with any one banking company or with any co-operative society registered under the co-operative societies act, 1912, or under any other law for the time being in force and doing banking business:provided that in applying this sub-section to the amount in deposit with a banking company on any day, all the premiums crediting during the preceding sixty days, to the account of the insurer with such banking company and the amounts deposited, during the preceding thirty days, by such insurer with that banking company for payment of claims or out of re-insurance, recoveries, shall be excluded(11) all assets shall (except for a part thereof not exceeding one-tenth of the total assets in value which may subject to such conditions and restrictions as may be prescribed, be offered as security for any loan taken for purposes of any investment or for payment of claims, or which may be kept as security deposit with the banks for acceptance of policies) be held free of any encumbrance, charge, hypothecation or lien(12) if at any time the authority considers any one or more of the investments constituting an insurer's assets to be unsuitable or undesirable, it may, after giving the insurer an opportunity of being heard, direct the insurer to realise the investment or investments, and the insurer shall comply with the direction within such time as may be specified in this behalf by the authority62 of 1968(13) every insurer in existence at the commencement of the insurance (amendment)act, 1968, whose investments or any part thereof at such commencement do or does not fulfil the requirements of this section, shall, within ninety days from such commencement, submit to the authority a report specifying all such investments, and, if the authority is satisfied that it will not be in the interest of the insurer or any class of insurers generally to realise any such investments it may, by order, direct that the provisions of this section, other than the provisions contained in sub-section (12), shall not apply in relation to any such investments or to any class of investments generally for such period or periods as may be specified in the order62 of 1968(14) without prejudice to the powers conferred on the authority by sub-section (12), nothing contained in this section shall be deemed to require any insurer to realise any investment made in conformity with the provisions of sub-section (1) after the commencement of the insurance (amendment) act, 1968, which, after the making thereof, has ceased to be an approved investment within the meaning of this section(15) nothing contained in this section shall be deemed to affect in any way the manner in which any moneys relating to the provident fund of any employee or to any security taken from any employee or other moneys of a like nature are required to be held by or under any central, provincial or state act(16) in this section, unless the context otherwise requires, "assets" means—(a) in the case of an insurer carrying on life insurance business in india, all his assets to be shown under the column "other classes of business" in the balancesheet in form a, in part ii of the first schedule, but excluding any times against the head "other accounts (to be specified)"(b) in the case of an insurer specified in sub-clauses (a) (ii) or sub-clause (b) of clause (9) of section 2, who is not carrying on life insurance business in india, all his assets required to be shown in the balance-sheet in form a, in part ii of the first schedule but excluding any items against the head "other accounts (to be specified)";(c) in the case of an other insurer, the assets required to be shown in the statement in form aa, in part ii of the first schedule, but excluding office furniture, but does not include any assets specifically held against any funds or portion thereof in respect of which the authority is satisfied that such fund or portion thereof, as the case may be, is regulated by the law of any country outside india or in respect of which the authority is satisfied that it would not be in the interest of the insurer to apply the provisions of this section27c no insurer shall directly or indirectly invest outside india the funds of the policy holdersprohibition for investment of funds outside indiamanner and conditions of investment27d (1) without prejudice to anything contained in sections 27, 27a and 27b, the authority may, in the interests of the policy-holders, specify by the regulations made by it, the time, manner and other conditions of investment of assets to be held by an insurer for the purposes of this act(2) the authority may give specific directions for the time, manner and other conditions subject to which the funds of policy holders shall be invested in the infrastructure and social sector as may be specified by regulations made by the authority and such regulations shall uniformly to all the insurers carrying on the business of life insurance, general insurance, or re-insurance in india on or after the commencement of the insurance regulatory and development authority act, 1999(3) the authority may, after taking into account the nature of business and to protect the interest of the policy holders, issue to an insurer to directions relating to the time, manner and other conditions of investment of assets to be held by him:provided that no direction under this sub-section shall be issued unless the insurer concerned has been given a reasonable opportunity of being heardstatement of investment of assets28 (1) every insurer carrying on the business of life insurance shall every year, within thirty-one days from the beginning of the year, submit to the authority return showing as at the 31st day of december of the preceding year the assets held invested in accordance with section 27, and all other particulars necessary to establish that the requirements of that section have been complied with, and such return shall be certified by a principal officer of the insurer(2) every such insurer shall also furnish, within fifteen days from the last day of march, june and september, a return certified as aforesaid showing as at the end of each of each of said months the assets held invested accordance with section 27(2a) in respect of the government securities and other approved securities invested and kept invested in accordance with sub-section (1) of section 27 an insurer shall submit along with the returns referred to in sub-sections (1) and (2) a certificate, where such assets are in the custody of a banking company, from that company, and in any other case, from the chairman, two directors and a principal officer, if the insurer is comany, or otherwise from a principal officer of the insurer, to the effect that the securities are held free of any encumbrance, charge, hypothecation, or lien, and every such certificate after the first shall also state that since the date of the certificate immediately proceding all the securities have been so held(2b) in respect of the assets forming the controlled fund within the meaning of section27a, and which do not from part of the government securities and approved securities invested and kept invested in accordance with section 27, an insurer shall submit, along with the returns referred to in sub-sections (1) and (2), a statement, where such assets are in the custody of a banking company, from that company, and, in any other case, from the chairman, two directors and a principal officer if the insurer is a company, or from a principal officer of the insurer if the insurer is not a company, specifying the assets, which are subjected to a charge and certifying that the other assets are held free of any encumbrance, charge, hypothecation, or lien, and every such statement after the first shall also specify the charges created in respect of any of those assets since the date of the statement immediately preceding, and, if any such charges have been liquidated, the date on which they were so liquidated(3) the authority may at his discretion require any insurer to whom sub-section (1)applies to submit before the 1st day of august in each or any year a return of the nature referred to in sub-section (1), certified as required by that sub-section and prepared as at the30th day of june(4) in the case of an insurer having his principal place of business or domicile outside india the authority may, on application made by the insurer, extend the periods of fifteen and thirty-one days mentioned in the foregoing sub-sections to thirty days and sixty days, respectively(5) the authority shall be entitled at any time to take such steps as it may consider necessary for the inspection or verification of the assets invested in compliance with section 27 or for the purpose of securing the particulars necessary to establish that the requirements of the section have been complied with the insurer shall comply with any requisition made in this behalf by the authority and if he fails to do so within two months from the receipt of the requisition he shall be deemed to have made default in complying with the requirements of this section28a (1) every insurer carrying on life insurance business, shall every year within thirty-one days from the beginning of the year submit to the authority a return in the from specified by the regulations made by the authority showing as at the 31st day of march of the preceding year, the investments made out of the controlled fund referred to in section 27a, and every such return shall be certified by a principal officer of the insurerreturn of investments relating to controlled fund and changes therein(2) every insurer referred to in sub-section (1) shall also submit to the authority a return in the form specified by the regulations made by the authotiry showing all the changes that occurred in the investments aforesaid during each of the quarters ending on the last day of march, june, september and december within thirty-one day from the close of the quarter to which it relates, and every such return shall be certified by a principal office of the insurerreturn of investmentsrelating tothe assets and changes therein28b (1) every insurer carrying on general insurance business, shall, every year, within thirty-one days from the beginning of the year, submit to the authority a return in the form specified by the regulations made by the authority showing as at the 31st day of march of the preceding year the investments made out of his assets referred to in section 27b, and every such return shall be certified by a principal officer of the insurer(2) every insurer referred to in sub-section (1) shall also submit to the authority a return in the form specified by the regulations made by the authority showing all the changes that occurred in the investments aforesaid during each of the quarters ending on the last day of march, june, september and december within thirty-one days from the close of the quarter to which it relates, and every such return shall be certified by a principal officer of the insurer(3) every insurer shall submit, along with the returns referred to in sub-sections (1)and (2), a statement, where any part of the assets are in the custody of a banking company, from that company, and in any other case, from the chairman, two directors and a principal officer, if the insurer is a company, or from a principal officer of he insurer, if the insurer is not a company, specifying the assets, which are subject to a charge and certifying that the other assets are held free of any encumbrance, charge, hypothecation or lien, and every scuh statement after the first shall also specify the charges created in respect of any of those assets since the date of the statement immediately preceding, and, if any such charges have been liquidated, the date on which they were so liquidatedprohibition of loans29 (1) no insurer shall grant loans or temporary advances either on hypothecation ofproperty or on personal security or otherwise, except loans on life policies issued by him within their surrender value, to any director, manager, managing agent, actuary, aduitor or officer of the insurer if a company, or where the insurer is a firm, to any partner therein, or to any other company or firm in which any such director, manager, managing agent, actuary, officer or partner holds the position of a director, manager, managing agent, actuary, officer or partner:provided that nothing contained in this sub-section shall apply to loans made by an insurer to a banking company:provided further that nothing in this section shall prohibit a company from granting such loans or advances to a subsidiary company or to any other company of which the company granting the loan or advance is a subsidiary company and where any such loan or advance is made out of any life insurance fund the matter shall be reported within thirty days of the making of such loan or advance to the authority7 of 1913(2) the provisions of section 96d of the indian companies act, 1913 shall not apply to a loan granted to a director of an insurer being a company, if the loan is one granted on the security of a policy on which the insurer bears the risk and the policy was issued to the director on his own life, and the loan is within the surrender value of the policy(3) subject to the provisions of sub-section (1), no insurer carrying on life insurance business shall grant—(a) any loans or temporary advances either on hypothecation of property or on personal security or otherwise, except such loan as are specified in sub-section (1) of section 27a;(b) temporary advances to any chief, special or insurance agent to facilitate the carrying out of his functions as such except in cases where such advances do not exceed in the aggregate—(i) in the case of a chief agent, the over-riding renewal commission earned by him during the year immediately preceding;(ii) in the case of a special agent, the renewal commission earned by him during the year immediately preceding;(iii) in the case of an insurance agent, the renewal commission earned by him during the year immediately preceding;explanation—the temporary advance referred to in clause (b) of this sub-section shall also be admissible in the case of any special agent or insurance agent newly appointed, but such advance—(a) shall be repayable within two years from the date on which such special agent or insurance agent was first appointed, and(b) shall not exceed, in the case of the special agent, five hundred rupees, and in the case of the insurance agent, one hundred rupees, and the total amount of all advances so made shall not exceed ten thousand rupees in the case of any insurer whose business in force is one crore of rupees or more and five thousand rupees in any other case47 of 1950(4) every loan or advance existing at the commencement of the insurance (amendment)act, 1950 which contravenes the provision of sub-section (3) shall be notified by the insurer to the authority within thirty days of such commencement and shall, notwithstanding any contract to the contrary be repaid within one year from such commencement(5) where any event occurs giving rise to circumstances, the existence of which at the time of the grant of any subsisting loan or advance would have made such grant a contravention of this section, such loan or advance shall, notwithstanding anything in any contract to the contrary, be repaid within three months from the occurrence of such event(6) in case of default in complying with the provisions of sub-section (4) or subsection (5), the director, manager, auditor, actuary, officer or partner, or the chief, special or insurance agent concerned shall, without prejudice to any other penalty which he may incur, cease to hold office under, or to act for, the insurer granting the loan on the expiry of the said period of one year or three months, as the case may be30 if by reason of a contravention of any of the provisions of section 27, section 27asection 27b or section 29, any loss is sustained by the insurer or by the policy holders, every director, manager, managing agent, officer or partner who is knowingly a party to such contravention shall, without prejudice to any other penalty to which he may be liable under this act, be jointly and severally liable to make good the amount of such lossliability of directors, etc, for loss due to contravention of sections 27, 27a, 27b and 29assets of insurer how to be kept31 (1) none of the assets in india of any insurer shall, except in the case of deposits made with the reserve bank of india under section 7 or section 98 or in so far as assets are required to be vested in trustees by sub-section (4) of section 27, be kept otherwise than in the name of a public officer approved by the authority or in the corporate name of the undertaking, if a company, or in the name of the partners, if a firm, or in the name of the proprietor, if an individual 7 of 1913provisions relating to managers, etc47 of 195031a (1) notwithstanding anything to the contrary contained in the indian companies act, 1913, or in the articles of association of the insurer, if a company, or in any contract or agreement, no insurer shall after expiry of one year from the commencement of the insurance (amendment) act, 1950,—| | | | | ||------|------|------|------|-----|(c) be directed or managed by, or employ as manager or officer or in any capacity, any person whose remuneration or any part thereof takes the form of commission or bonus in respect of the general insurance business of the insurer: provided that nothing in this sub-section shall be deemed to prohibit—(i) the payment of commission to a chief agent, special agent or an insurance agent, in respect of life insurance business procured by or through him;(ii) the payment of commission to a principal agent or an insurance agent in respect of general insurance business procured by or through him;(iii) the payment of commission, with the approval of the central government and for such period as it may determine, to a person not being an officer of an insurer who was, on the 1st day of november, 1944, employing on behalf of an insurer, chief agents or special agents and continues so to do in respect of insurance business procured by or through him;| ||------------|| 7 of 1913 |(3) if in the case of any insurance company provision is made by the articles of association of the company or by an agreement entered into between any person and the company for empowering a director or manager or other officer of the company to assign his office to any other person, any assignment of office made in pursuance of the said provision, shall, notwithstanding anythings, to the contary contained in the said provision or in section 86b of the indian companies act, 1913 be void| ||---------------|| power to || restrict || payment of || excessive || remuneration |31b (1) the authority may if it is satisfied that any insurce, in the case of an insurer specifiede in sub-clause (a) (ii) or sub-clause (b) of clause (9) of section 2 in respect of all insurance business transacted by him, and in the case of any other insurer in respect of the insurance business transacted by him in india, is paying any person remuneration, whether by way of commission or otherwise, on a scale disproportionate, according to the normal standards prevailing in insurance business, to the resources of the insure, call upon the insurer to comply within six months with such directions as it may think fit to issue in the matter, and if compliance with the directions so issued requires the alteration of any of the terms of the contract entered into by the insurer with such person no compensation shall be payable to such person by the insurer by reason only of such alteration or of the resignation of such person if the altered terms are not acceptable to him and no payment by way of renewal comission or otherwise shall be made to such person by the insurer in respect of any premiums paid after the date of such resignation except at such rate as may be approved by the authority in this behalf(2) every insurer shall, before the close of the month following every year, submit to the authority a statement, in the form specified by the regulations made by the authority showing the remuneration paid, whether by way of commission or otherwise, to any person in cases where such remuneration exceeds such sum as may be specified by the reguations made by the authority(3) where any person not being a chief agent, principal agent or special agent is in receipt of remuneration exceeding the sum of five thousand rupees in any year, the authority may, by notice in writing, require the insurer to submit certified copies of the agreement entered into between the insurer and any such person, and in the insurer shall comply with any such requisition within the time specified in the notice(4) every direction under this section shall be issued by an order made by the authority:provided that no order under this section shall be made unless the person concerned has been given an opportunity of being heard32 (1) no insurer shall, after the commencement of this act, appoint a managing agent for the conduct of his business7 of 1913limitation on employment of managing agents and on the remuneration payable to them(2) where any insurer engaged in the business of insurance before the commencementof this act employ us a managing agent for the coduct of his business, them, notwithstanding anything to the contrary contained in the indian companies act, 1913, and notwithstanding anything to the contrary contained in the articles of the insurer, if a company, or in any agreement entered into by the insurer, such managing agent shall cease to hold office on the expiry of three years from the commencement of this act and no compensation shall be payable to him by the insurer by reason only of the premature termination of his employment as managing agent7 of 1913(3) after the commencement of this act, notwithstanding anything contained in theindian companies act, 1913, and notwithstanding anything to the contrary contained in any agreement entered into by an insurer or in the articles of association of an insurer being a company, no insurer shall pay to a managing agent and no managing agent shall accept from an insurer as remuneration for his services as managing agent more than two thousand rupees per month in all, including salary and commission and other remuneration payable to and receivable by him, for his services as managing agent32a (1) a managing director or other officer of an insurer specified in sub-clause (b) of clause (9) of section 2 and carrying on life insurance business shall not be a managing director or other officer of any other insurer carrying on life insurance business or of a banking company or of an investment company:prohibition of common officers and requirement as to wholetime officersprovided that the authority may permit such managing director or other officer to be a managing director or other officer of any other insurer carrying on life insurance business for the prupose of amalgamating the business of the two insurers or transferring the business of one insurer to the other(2) where an insurer specified in sub-clause (b) of clause (9) of section 2 has, life insurance fund or more than twenty-five lakhs of rupees or insurance funds totalling more than fifty lakhs of rupees, the manager, managing director or other officer of the insurer shall be a whole-time employee of this insurer:provided that the authority may, for such period as it thinks it, permit the employment of any specified person as a part-time manager, managing director or other officer of such insure(3) nothing in this section shall prevent—(a) the manager, managing director or other officer of an insurer being the manager, managing director or other officer of a subsidiary company of the insurer with the previous approval of the authority;(b) the manager, managing director or other officer of an insurer exclusively carrying on life insurance business being the manager, managing director or to her officer of an insurer not carrying on life insurance business:(c) any office, of a branch of one insurer carrying on general insurance business from being any officer a branch in the same town of another insurer carrying on general insurances business(d) an officer in the employment of an insurer from giving professional adviceexplanatnion—in this section the expression "officer" does not include a director41 of 1999insurance business in rural or social sector32b every insurer shall, after the commencement of the insurance regulatory and development authority act, 1999, undertake such percentages of life insurance business and general insurance business in the rural or social sector as may by specified, in the official gazette by the authority, in this behalf investigationpower of investigation and inspection by authority33 (1) the authority may, at any time, by order in writing, direct any person (hereafter in this section referred to as "investigating authority") specified in the order to investigate the affairs of any insurer and to report to the authority on any investigation made by such investigating authority:provided that the investigation authority may, wherever necessary, employ any auditor or actuary or both for the purpose of assisting him in any investigation under this section1 of 1956(2) notwithstanding anything to the contrary contained in section 235 of the companies act, 1956, the investigating may, at any time, and shall, on being directed so to do by the authority, cause an inspection to be made by one or more of his officers books of account; of any insurer and his and the investigating authority shall supply to the insurer a copy of his report on such inspection(3) it shall be the duty of every manager, managing director or other officer of the insurer to produce before the investigating authority directed to make the investigation under sub-section (1), or inspection under sub-section (2), all such books of account, registers and other documents in his custody or power and to furnish him with any statement and information relating to the affairs of the insurer as the said investigating authority may require of him within such time as the said investigating authority may specify(4) any investigating authority, directed to make an investigation under sub-section (1), or inspection under sub-section (2), may examine on oath, any manager, managing director or other officer of the insurer in relation to his business and may administer oaths accordingly(5) the investigating authority shall, if he has been directed by the authority may to cause an inspection to be made, and may, in any other case, report to the authority on any inspection made under this section(6) on receipt of any report under sub-section (1) or sub-section (5), the authority may, after giving such opportunity to the insurer to make a representation in connection with the report as, in the opinion of the authority, seems reasonable, by order in writing,—(a) require the insurer, to take in such action respect of any matter arising out of the report as the authority may think fit; or(b) cancel the registration of the insurer; or(c) direct any person to apply to the court for the winding up of the insurer, if acompany, whether the registration of the insurer has been cancelled under clause (b)or not(7) the authority may, after giving reasonable notice to the insurer, publish the report submitted by the investigating authority under sub-section (5) or such portion thereof as may appear to it to be necessary(8) the authority may by the regulations made by it specify the minimum information to be maintained by insurers in their books, the manner in which such information shall be maintained, the checks an other varifications to be adopted by insurers in that connection and all other matters incidental thereto as are, in its opinion, necessary to neable the investigating authority to discharge satisfactorily his functions under this sectionexplanation—for the purposes of this section, expression "insurer" shall include in the case of an insurer incorporated in india—(a) all its subsidiaries formed for the purpose of carrying on the business ofinsurance exclusively outside india; and(b) all its branches whether situated in india or outside india(9) no order made under this section other than an order made under clause (b) of sub-section (6) shall be capable of being called in question in any court(10) all expenses of, and incidental to, any investigation made under this section shall be defrayed by the insurer, shall have priority over that debts due from the insurer and shall be recoverable as an arrear of land revenue 34b (1) power of authority to remove managerial persons from office(4) if any person in respect of whom an order is made by the authority under sub-section (1) or under the proviso to sub-section (2) contravenes the provisions of this section, he shall be punishable with fine which may extend to two hundred and fifty rupees for each day during which such contravention continues 34c (1) if the authority is of opinion that in the public interest or in the interest of an insurer, or his policy holders it is necessary so to do, it may, from time to time, by order in writing, appoint, with effect from such date as may be specified in the order, one or more persons to hold office as additional directors of the insurer:power of authority to appoint additional directorprovided that the number of additional directors so appointed shall not, at any time, exceed five or one-third of the maximum strength fixed for the board by the articles of association of the insurer, whichever is less power of authority to under closure of foreign branches34g without prejudice to the generality of the powers conferred by sub-section (1) of section 34, the authority may, if it has reasons to believe that the working of any branch outside india of an insurer being an insurer specified in sub-clause (b) of clause (9) of section 2, is generally resulting in a loss or that the affairs of that branch are being conducted in a manner prejudicial to the interests of the policy holders or the public interest, it may, after giving an opportunity to the insurer of being heard, direct that the insurer shall cease, within such period, not being less tyhan one year, as may be specified in the order, to carry on insurance business in the country in which such branch is situated and if the insurer fails to comply with such order he shall be deemed to have failed to comply with the provisions of this actseizure search and34h (1) where the chairperson of the authority in consequence of information in his possession, has reason to believe that—(a) any person who has been required under sub-section (2) of section 33 to produce, or cause to be produced, any books, accounts or other documents in his custody or power has omitted or failed to produce, or cause to be produced, such books, accounts or other documents, or(b) any person to whom a requisition to produce any books, accounts or other documents as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any books, accounts or other documents which will be useful for, or relevant to, an investigation under sub-section (1) of section 33 or an inspection under sub-section (1a) of that section, or(c) a contravention of any provision of this act has been committed or is likely to be committed by an insurer, or(d) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure higher than a reasonable amount, or(e) any claim which is due to be settled by an insurer, has been or is likely to be rejected or settled at a figure lower than a reasonable amount, or(f) any illegal rebate or commission has been paid or is likely to be paid by an insurer, or(g) any books, accounts receipts, vouchers, survey reports or other documents, belonging to an insurer are likely to be tampered with, falsified or manufactured, he may authorise any subordinate officer of his, not lower in rank than an officer authorised by the authority (hereafter referred to as the authorised officer) to—(i) enter and search any building or place where he has reason to suspect that such books, accounts or other documents, or any books or papers relating to any claim, rebate or commission or any receipts, vouchers, reports or other documents are kept;(ii) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available;(iii) seize all or any such books, accounts or other documents, found as a result of such search;(iv) place marks of identification on such books, accounts or other documents or make or cause to be made extracts or copies therefrom (7) if a person legally entitled to the books, accounts, papers, receipts, vouchers, reports or other documents seized under sub-section (1) objects for any reason to the approval given by the chairperson of the authority under sub-section (5), he may make an application to the central government stating therein the reason for such objection and requesting for the return of the books, accounts, papers, receipts, vouchers, reports or other documents(8) on receipt of the application under sub-section (7), the central government may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit amalgamation and transfer of insurance businessamalgamation and transfer of insurance business35 (1) no life insurance business of an insurer specified in sub-clause (a) (ii) or subclause (b) of clause (9) of section 2 shall be transferred to any person or transferred to or amalgamated with the life insurance business of any other insurer except in accordance with a scheme prepared under this section and approved by the authority (3) before an application is made to the authority to approve any such scheme notices of the intention to make the application together with a statement of the nature of the amalgamation or transfer, as the case may be, and of the reason therefor shall, at least two months before the application is made, be sent to the authority and certified copies, four in number, of each of the following documents shall be furnished to the authority, and other such copies shall during the two months aforesaid be kept open for the inspection of the members and policy holders at the principal and branch officers and chief agencies of the insurers concerned, namely:— (b) balance-sheets in respect of the insurance business of each of the insurers concerned in such amalgamation or transfer, prepared in the form set forth in part ii of the first schedule and in accordance with the regulations contained in part i of the schedule;(c) actuarial reports and abstracts in respect of the life insurance business of each of the insurers so concerned, prepared in conformity with the requirements of part ii of the fourth and fifth schedules and in accordance with the regulations contained in part i of the schedule concerned; sanction of amalgamation and transfer by authority36 (1) when any application such as is referred to in sub-section (3) of section 35 is made to the authority, the authority shall cause, if for special reasons it so directs, notice of the application to be sent to every person resident in india who is the holder of a life policy of any insurer concerned and shall cause a statement of the nature and terms of the amalgamation or transfer, as the case may be, to be published in such manner and for such period as it may direct, and, after hearing the directors and such policy holders as apply to be heard and any other persons whom it considers entitled to be heard, may approve the arrangement, it is satisfied that no sufficient objection to the arrangement has been established and shall make such consequential orders as are necessary to give effect to the arrangement, including orders as to the disposal of any deposit made under section 7 or section 98provided that—(a) no part of the deposit made by any party to the amalgamation or transfer shall be returned except where, after effect is given to the arrangement, the whole of the deposit to be made by the insurer carrying on the amalgamated business or the person to whom the business is transferred is completed,(b) only so much shall be returned as is no longer required to complete the deposit last mentioned in clause (a), and(c) while the deposit last mentioned in clause (a) remains incomplete no accession, resulting from the arrangement, to the amount already deposited by the insurer carrying on the amalgamated business or the person to whom the business is transferred shall be appropriated as payment or part payment of any instalment of deposit subsequently due from him under section 7 or section 98 (2) if the arrangement involves a reduction of the amount of the insurance and other contrancts of the transfer or insurer or of any or all of the insurers concerned in the amalgamation, the authority may approve the arrangement reducing the amount of such contracts upon such terms and subject to such conditions as he may think proper, and the reduction of contracts as approved by the authority shall be valid and binding on all the parties concerned 37a (1) power of authority to prepare scheme of amalgamation(4) the scheme shall thereafter be placed before the central government for its sanction and the central government may sanction the scheme without any modification or with such modifications as it may consider necessary; and the scheme as sanctioned by the central government shall come into force on such date as the central government may specify in this behalf:provided that different dates may be specified for different provisions of the scheme assignment or transfer or policies and nominationsassignment and transfer of insurance policies38 (1) a transfer or assignment of a policy of life insurance, whether with or without consideration may be made only by an endorsement upon the policy itself or by a separate instrument, signed in either case by the transferor or by the assignor, his duly authorised agent and attested by at least one witness, specifically setting forth the fact of transfer or assignment(2) the transfer or assignment shall be complete and effectual upon the execution of such endorsement or instrument duly attested but except where the transfer or assignment is in favour of the insurer shall not be operative as against an insurer and shall not confer upon the transferee or assignee, or his legal representative, and right to sue for the amount of such policy or the moneys secured thereby until a notice in writing of the transfer or assignment and either the said endorsement or instrument itself of a copy thereof certified to be correct by both transferor and transferee or their duly authorised agents have been delivered to the insurer:provided that where the insurer maintains one or more places of business in india, such notice shall be delivered only at the place in india mentioned in the policy for the purpose or at his principal place of business in india(3) the date on which the notice referred to in sub-section (2) is delivered to the insurer shall regulate the priority of all claims under a transfer or assignment as between persons interested in the policy, and where there is more than one instrument of transfer or assignment the priority of the claims under such instruments shall be governed by the order in which the notices referred to in sub-section (2) are delivered(4) upon the receipt of the notice referred to in sub-section (2), the insurer shall record the fact of such transfer or assignment together with the date thereof and the name of the transferee or the assignee and shall, on the request of the person by whom the notice was given, or of the transferee or assignee, on payment of a fee not exceeding one rupee, grant a written acknowledgement of the receipt of such notice; and any such acknowledgement shall be conclusive evidence against the insurer that he has duly received the notice to which such acknowledgement relates(5) subject to the terms and conditions of the transfer or assignment, the insurer shall, from the date of receipt of the notice referred to in sub-section (2) recognise the transferee or assignee named in the notice as the only person entitled to benefit under the policy, and such person shall be subject to all liabilities and equities to which the transferor or assignor was subject at the date of the transfer or assignment and may institute any proceedings in relation to the policy without obtaining the consent of the transferor or assignor or making him a party to such proceedings(6) any rights and remedies of an assignee or transferee of a policy of life insurance under an assignment or transfer effected prior to the commencement of this act shall not be affected by the provisions of the section(7) notwithstanding any law or custom having the force of law to the contrary, an assignment in favour of a person made with the condition that it shall be inoperative or that the interest shall pass to some other person on the happening of a specified event during the lifetime of the person whose life is insured, and an assignment in favour of the survivor or survivors of a number of persons, shall be validnomination by policyholder39 (1) the holder of a policy of life insurance on his own life may, when effecting thepolicy or at any time before the policy matures for payment, nominate the person or persons to whom the money secured by the policy shall be paid in the event of his death:provided that, where any nominee is a minor, it shall be lawful for the policy holder to appoint in the prescribed manner any person to receive the money secured by the policy in the event of his death during the minority of the nominee(2) any such nomination in order to be effectual shall, unless it is incorporated in the text of the policy itself, be made by an endorsement on the policy communicated to the insurer and registered by him in the records relating to the policy and any such nomination may at any time before the policy matures for payment be cancelled or changed by an endorsement or a further endorsement or a will, as the case may be, but unless notice in writing of any such cancellation or change has been delivered to the insurer, the insurer shall not be liable for any payment under the policy made bona fide by him to a nominee mentioned in the text of the policy or registered in records of the insurer(3) the insurer shall furnish to the policy holder a written acknowledgement of having registered a nomination or cancellation or change thereof, and may charge a fee not exceeding one rupee for registering such cancellation or change(4) a transfer or assignment of a policy made in accordance with section 38 shall automatically cancel a nomination;provided that the assignment, of a policy to the insurer who bears the risk on the policy at the time of the assignment, in consideration of a loan granted by that insurer on the security of the policy within its surrender value, or its reassignment on repayment of the loan shall not cancel a nomination, but shall affect the rights of the nominee only to the extent of the insurers' interest in the policy(5) where the policy matures for payment during the lifetime of the person whose life is insured or where the nominee or, if there are more nominees than one, all the nominees die before the policy matures for payment, the amount secured by the policy shall be payable to the policy-holder or his heirs or legal representatives or the holder of a succession certificate, as the case may be(6) where the nominee or, if there are more nominees than one, a nominee or nominees survive the person whose life is insured, the amount secured by the policy shall be payable to such survivor or survivors3 of 1874(7) the provisions of this section shall not apply to any policy of life insurance to which section 6 of the married women's property act, 1874 applies or has at any time applied:6 of 1946provided that where a nomination made whether before or after the commencement ofthe insurance (amendment) act, 1946, in favour of the wife of the person who has insured his life or of his wife and children or any of them is expressed, whether or not on the face of the policy, as being made under this section, the said section 6 shall be deemed not to apply or not to have applied to the policy40 (1) no person shall, after the expiry of six months from the commencement of this act, pay or contract to pay any remuneration or reward whether by way of commission or otherwise for soliciting or procuring insurance business in india to any person except an insurance agent or an intermediary or insurance intermediaryprohibition of payment by way of commission or otherwise for procuring business(1a) in this section and sections 40a, 41 and 43, reference to an insurance agent shall be construed as including reference to an individual soliciting or procuring insurance business exclusively in the territories which, immediately before the ist november, 1956 were comprised in a part b state notified in this behalf by the central government in the official gazette and holding a valid licence as insurance agent under the law of that part b state(2) no insurance agent shall be paid or contract to be paid by way of commission or as remuneration in any form an amount exceeding, in the case of life insurance business, forty per cent of the first year's premium payable on any policy or policies effected through him and five per cent of a renewal premium, payable on such a policy or, in the case of business of any other class, fifteen per cent, of the premium:provided that insurers, in respect of life insurance business only, may pay, during the first ten years of their business to their insurance agents fifty-five per cent of the first year's premium payable on any policy or policies effected through them and six per cent of the renewal premiums payable on such policies:47 of 1950provided further that nothing in this sub-section shall apply in respect of any policy of life insurance issued after the 31st day of december, 1950, or in respect of any policy of general insurance issued after the commencement of the insurance (amendment) act, 1950(2a) save as hereinafter provided, no insurance agent or intermediary or insurance intermediary shall be paid or contract to be paid by way of commission or as remuneration in any form any amount in respect of any policy not effected through himprovided that where a policy of life insurance has lapsed, and it cannot under the terms and conditions applicable to it be revived without further medical examination of the person whose life was insured thereby, an insurer, after giving by notice in writing to the insurance agent through whom the policy was effected if such agent continues to be an agent of the insurer an opportunity to effect the revival of the policy within a time specified in the notice, being not less than one month from the date of the receipt by him of the notice, may pay to another insurance agent who effects the revival of the policy an amount calculated at a rate not exceeding half the rate of commission at which the agent through whom the policy was effected would have been paid had the policy not lapsed, on the sum payable on revival of the policy on account of arrear premiums (excluding any interest on such arrear premiums) and also on the subsequent renewal premiums payable on the policy(3) nothing in this section shall prevent the payment under any contract existing prior to the 27th day of january, 1937, of gratitudes or renewal commission to any person, whether an insurance agent within the meaning of this act or not, or to his representatives after his decease in respect of insurance business effected through him before the said datelimitation of expenditure on commission40a (1) no person shall pay or contract to pay to an insurance agent, shall receive or contract to receive by way of commission or remuneration in any form in respect of any policy of life insurance issued in india by an insurer after the 31st day of december, 1950, and effected through an insurance agent, an amount exceeding—(a) where the policy grants an immediate annuity or a deferred annuity in consideration of a single premium, or where only one premium is payable on the policy, two per cent of that premium(b) where the policy grants a deferred annuity in consideration of more than one premium, seven and a half per cent of the first year's premium, and two per cent of each renewal premium, payable on the policy, and(c) in any other case, thirty-five per cent of the first year's premium seven and a half per cent of the second and third year's renewal premium and thereafter five per cent of each renewal premium payable on the policy:provided that a case referred to in clause (c) an insurer, during the first ten years of his business, may pay to an insurance agent, and an insurance agent may receive from such an insurer, forty per cent of the first year's premium payable on the policy:provided further that in a case referred to in clause (c), where the rate of commission payable on the first year's premium is equal to or less than twenty-one per cent thereof, and the rate on the fourth and fifth years' premiums does not exceed six per cent thereof, the life insurance corporation of india may pay to an insurance agent, and the insurance agent may receive from it, commission on the sixth and subsequent years' renewal premiums payable on the policy at a rate not exceeding six per cent of each renewal premium (2) no person shall pay or contract to pay to a special agent, and no special agent shall receive or contract to receive, by way of commission or as remuneration in any form, in respect of any policy of life insurance issued in india by an insurer after the 31st day of december, 1950, and effected through a special agent, an amount exceeding—(a) in a case referred to in clause (a) of sub-section (1), one half per cent of the premium,(b) in a case referred to in clause (b) of sub-section (1), two per cent of the first year's premium payable on the policy, and(c) in a case referred to in clause (c) of sub-section (1), fifteen per cent of the first year's premium payable on the policy:provided that in a case referred to in clause (c), an insurer, during the first ten years of his business, may pay to a special agent, and a special agent may receive from such an insurer, seventeen and a half per cent of the first year's premium payable on the policy62 of 1968(3) no person shall pay or contract to pay to an insurance agent, and no insurance agent shall receive or contract to receive, by way of commission or remuneration in any form, in respect of any policy of general insurance issued in india by an insurer after the commencement of the insurance (amendment) act, 1968 and effected through an insurance agent, an amount exceeding fifteen per cent of the premium payable on the policy where the policy to fire or marine insurance or miscellaneous insurance47 of 1950(4) no person shall pay or contract to pay to a principal agent, and no principal agent shall receive or contract to receive, by way of commission or remuneration in any form, in respect of any policy of general insurance issued in india by an insurer after the commencement of the insurance (amendment) act, 1950, and effected through a principal agent an amount exceeding—(a) in the case referred to in clause (a) of sub-section (3), twenty per cent of the premium payable on the policy, and(b) in the case referred to in clause (b) of that sub-section, fifteen per cent of the policy, less any commission payable to any insurance agent in respect of the said policy:provided that the authority may, in such circumstances and to such extent and for such period as may be specified, authorise the payment of commission or renumeration exceeding the limits specified in this sub-section to a principal agent of an insurer incorporated or domiciled elsewhere than in india, if such agent carries out and has continuously carried out in his own office duties on behalf of the insurer which would otherwise have been performed by the insurer (5) without prejudice to the provisions of section 102 in respect of a contravention of any of the provisions of the preceding sub-section by an insurer, any insurance agent who contravenes the provisions of sub-section (1) or sub-section (3) shall be punishable with the fine which may extend to one hundred rupees40b (1) every insurer transacting life insurance business in india shall furnish to the authority, within such time as may be prescribed, statements in the prescribed form certified by an actuary on the basis of premiums currently used by him in regard to new business in respect of mortality, rate of interest, expenses and bonus loadinglimitation of expenses of management in life insurance business(2) after the 31st day of december, 1950, no insurer shall, in respect of life insurance business transacted by him in india, spend as expenses of management in any calendar year an amount in excess of the prescribed limits and in prescribing any such limits regard shall be had to the size and age of the insurer and the provision generally made for expenses of management in the premium rates of insurers:provided that where an insurer has spent such expenses in any year an amount in excess of the amount permissible under this sub-section, he shall not be deemed to have contravened the provisions of this section, if the excess amount so spent is within such limits as may be fixed in respect of the year by the authority after consultation with the executive committee of the life insurance council constituted under section 64f, by which the actual expenses incurred may exceed the expenses permissible under this sub-section (3) in respect of any statement mentioned in sub-section (1), the authority may require that it shall be submitted to another actuary appointed by the insurer for the purpose and for certification by him, whether with or without modifications(4) every insurer transacting life insurance business in india shall incorporate in the revenue account—(a) a certificate signed by the chairman and two directors and by the principal officer of the insurer, and an auditor's certificate, certifying that all expenses of management in respect of life insurance business transacted by the insurer in india have been fully debited in the revenue account as expenses, and(b) if the insurer is carrying on any other class of insurance business in addition to life insurance business an auditor's certificate certifying that all charges incurred in respect of his life insurance business and in respect of his business over than life insurance business have been fully debited in the respective revenue accountsexplanation—in this section,—(a) "calendar year" or "year" means, in relation to an insurer who is required to furnish returns in accordance with sub-section (2) of section 16, the period covered by the revenue account furnished by such insurer under clause (b) of that sub-section;(b) "expenses of management" means all charges wherever incurred whether directly or indirectly, and includes—(i) commission payments of all kinds; (ii) any amount of expenses capitalised; (iii) in the case of an insurer having his principal place of business outside india, a proper share of head office expenses which all not be less than such percentage as may be prescribed of the total premiums (less reinsurances) received during that year in respect of life insurance business transacted by him in indiabut does not include in the case of an insurer having his principal place of business in india any share of head office expenses in respect of life insurance business transacted by him outiside indialimitation of expenses of management in general insurance business40c (l) after the 31st day of december, 1949, no insurer shall, in respect of any class of general insurance business transacted by him in india, spend in any calender year as expenses of management including commission of remuneration for procuring business an amount in excess of the prescribed limits and in prescribing any such limits regard shall be had to the size and age of the insurer:provided that where an insurer has spent as such expenses in any year an amount in excess of the amount permissible under this sub-section, he shall not be deemed to have contravened the provisions of this section, if the excess amount so spent is within such limits as may be fixed in respect of the year by the authority after consultation with executive committee of the general insurance council constituted under section 64f, by which the actual expenses incurred may exceed the expenses permissible under this sub-section(2) every insurer as aforesaid shall incorporate in the revenue account a certificate signed by the chairman and two directors and by the principal officer of the insurer, and by an auditor certifying that all expenses of management wherever incurred, whether directly or indirectly, in respect of the business referred to in this section have been fully debited in the revenue account as expensesexplanation—in this section,—(a) "calender year" shall have the meaning assigned to it in section 40b; (b) "expenses of management" means all charges, wherever incurred whether directly or indirectly, including commission payments of all kinds and, in the case of an insurer having his principal place of business outside india, a proper share of head office expenses, which shall not be less than such percentage as may be prescribed, of his gross premium income (that is to say, the premium income without taking into account premiums or re-insurance ceded or accepted) written direct in india during the year, but in computing the expenses of management in india the following, and only the following, expenses may be excluded, namely:—(i) in the case of an insurer having his principal place of business in india, a share of head office expenses in respect of general insurance business transacted by him outside india not exceeding such percentage of his gross direct premium written outside india as may be prescribed;(ii) in the case of an insurer having his principal place of business outiside india, a share of the expenses of his office in india in respect of general insurance business transacted by him outside india through his office in india, not excedding such percentage of his gross direct premium written outside india through his office in india, as may be prescribed;(iii) any expenses debited to profit and loss account relating exclusively to the management of capital, and dealings with share holders and a proper share of managerial expenses calculated in such manner as may be prescribed; and(iv) any expenses debited to claims in the revenue account in form f of part ii of the third schedule; (c) "insurance business transacted in india" includes insurance business wherever effected relating to any properly situate in india or to any vessal or aircraft registered in india41 (1) prohibition of rebates(2) any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred rupeeslicensing of insurance agents42 (1) the authority or an officer authorised by it in this behalf shall, in the manner determined by the regulations made by it and on payment of the fee determined by the regulations, which shall not be more than two hundred and fifty rupees, issue to any person making an application in the manner determined by the regulations, a licence to act as an insurance agent for the purpose of soliciting or procuring insurance business:provided that,—(i) in the case of an individual, he does not suffer from any of the disqualifications mentioned in sub-section (4); and(ii) in the case of a compnay or firm, any of its directors or partners does not suffer from any of the said disqualifications;41 of 1999provided further that any licence issued immediately before the commencement of theinsurance regulatory and development authority act, 1999 shall be deemed to have been issued in accordance with the regulations which provide for such licence(2) a licence issued under this section shall entitle the holder to act as an insurance agent for any insurer41 of 1999(3) a licence issued under this section, after the date of the commencement of theinsurance regulatory and development authority act, 1999, shall remain in force for a period of three years only from the date of issue, but shall, if the applicant, being an individual does not, or being a company or firm any of its directors or partners does not, suffer from any of the disqualifications mentioned in clauses (b), (c), (d), (e) (f) and (g) of sub-section (4) andthe application of renewal of licence reaches the issuing authority at least thirty days before the date on which the licence ceases to remain in force, be renewed for a period of three years at any one time on payment of the fee determined by the regulations made by the authority which shall not be more than rupees two hundred and fifty, and additional fee of an amount determined by the rgulations not exceeding rupees one hundred by way of penalty, if the application for renewal of the licence does not reach the issuing authority at least thirty days before the date on which the licence ceases to remain in force(3a) no application for the renewal of a licence under this section shall be entertained if the application does not reach the issuing authority before the licence ceases to remain in force:provided that the authority may, if satisfied that undue hardship would be caused otherwise, accept any application in contravention of this sub-section on payment by the applicant of a penalty of seven hundred and fifty rupees(4) the disqualifications above referred to shall be the following:—(a) that the person is a minor; (b) that he is found to be of unsound mind by a court of competent jurisdiction;(c) that he has been found guilty of criminal misappropriation or criminal breach of trust of cheating or forgery or an abetment of or attempt to commit any such offence by a court of competent jurisdiction:provided that where at least five years have elapsed since the completion of the sentence imposed on any person in respect of any such offence, the authority shall ordinarily declare in respect of such person that his conviction shall cease to operate as a disqualification under this clause;(d) that in the course of any judicial proceeding relating to any policy of insurance or the winding up of an insurance company or in the course of an investigation of the affairs of an insurer it has been found that he has been guilty of or has knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or an insured;(e) that in the case of an individual, he does not possess the requisite qualifications and practical training for a period not exceeding twelve months, as may be specified by the regulations made;(ea) that in the case of a company or firm making an application under subsection (1) or sub-section (3), a director or a partner or one or more of its officers or other employees so designated by it and in the case of any other person, the chief executive, by whatever name called, or one or more of his employees designated by him, do not possess the requisite qualifications and practical training and have not passed such an examination as required under clauses (e) and (f);(f) that he has not passed such examination as may be specified by the regulations made by the authority in this behalf:provided that a person who had been issued a licence under sub-section (1) of this section or sub-section (1) of section 64um shall not be required to possess the requisite qualifications, practical training and pass such examination as required by clauses (e) and (f);(g) that he violates the code of conduct as may be specified by the regulations made by the authority (5) if it be found that an insurance agent being an individual is, or being a company or firm contains a director or partner who is suffering from any of the disqualifications mentioned in sub-section (4), then, without prejudice to any other penalty to which he may be liable, the authority shall, and if the insurance agent has knowingly contravened any of the provisions of this act may, cancel the licence issued to the agent under this section(6) the authority may issue a duplicate licence to replace a licence lost, destroyed or mutilated, on payment of such fee not exceeding fifty rupees as may be determined by the regulations(7) any person who acts as an insurance agent without holding a licence issued under this section to act as such shall be punishable with fine which may extend to five hundred rupees, and any insurer or any person acting on behalf of an insurer, who appoints as an insurance agent any person not licensed to act as such or transacts any insurance business in india through any such person shall be punishable with fine which may extend to one thousand rupees(8) where the person contravening sub-section (7) is a company or a firm, then, without prejudice to any other proceedings which may be taken against the company or firm, every director, manager, secretary or other officer of the company, and every partner of the firm who is knowingly a party to such contravention shall be punishable with fine which may extend to five thousand rupees42a (1) the authority or an officer authorised by it in this behalf shall in the prescribed manner and on payment of the prescribed fee which shall not be more than twenty-five rupees for a principal agent or a chief agent and ten rupees for a special agent, register any person who makes an application to it in the prescribed manner if—(a) in the case of an individual, he does not suffer from any of the disqualifications mentioned in sub-section (4) of section 42, or(b) in the case of a company or firm, any of its directors or partners does not suffer from any of the said disqualifications, and a certificate to act as a principal agent, chief agent or special agent, as the case may be for the purpose of procuring insurance business shall be issued to him(2) a certificate issued under this section shall entitle the holder thereof to act as a principal agent, chief agent or special agent, as the case may be, for any insurer,(3) a certificate issued under this section shall remain in force for a period of twelve months only from the date of issue, but shall, on application made in this behalf, be renewed from year to year on production of a certificate from the insurer concerned that the provisions of clauses 2 and 3 of the part a of the sixth schedule in the case of a principal agent, the provisions of clauses 2 and 4 of part b of the said schedule in the case of a chief agent, and the provisions of clauses 2 and 3 of the part c of the said schedule in the case of a special agent, have been complied with, and on payment of the prescribed fee, which shall not be more than twenty-five rupees, in the case of a principal agent or a chief agent, and ten rupees in the case of a special agent, and an additional fee of the prescribed amount not exceeding five rupees by way of the penalty, in cases where the application for renewal of the certificate does not reach the issuing authority before the date on which the certificate ceases to remain in force:provided that, where the applicant is an individual, he does not suffer from any of the disqualifications mentioned in clauses (b) to (d) of sub-section (4) of section 42, and where the applicant is a company or a firm, any of its directors or partners does not suffer from any of the said disqualifications(4) where it is found that the principal agent, chief agent or special agent being an individual is, or being a company or firm contains a director or partner who is suffering from any of the disqualifications mentioned in sub-section (4) of section 42, without prejudice to any other penalty to which he may be liable, the authority shall, and where a principal agent, chief agent or special agent has contravened any of the provisions of this act may, cancel the certificate issued under this section to such principal agent, chief agent or special agent(5) the authority which issued any certificate under this section may issue a duplicate certificate to replace a certificate lost, destroyed or mutilated on payment of the prescribed fee, which shall not be more than two rupees(6) any person who acts as a principal agent, chief agent or special agent, without holding a certificate issued under this section to act as such, shall be punishable with fine which may extend to five hundred rupees, and any insurer or any person acting on behalf of an insurer, who appoint as a principal agent, chief agent or special agent any person not entitled to act as such or transacts any insurance business in india through and such person, shall be punishable with fine which may extend to one thousand rupees(7) where the person contravening sub-section (6) is a company or a firm, then, without prejudice to any other proceedings which may be taken against the company or firm, every director, manager, secretary or any other officer of the company, and every partner of the firm who is knowingly a party to such contravention shall be punishable with fine which may extend to five hundred rupees47 of 1950(8) the provisions of sub-sections (6) and (7) shall not take effect until the expiry of six months from the commencement of the insurance (amendment) act, 1950(9) no insurer shall, on or after the commencement of the insurance (amendment) act,2002, appoint or transact any insurance business in india through any principal agent, chief agent or special agent47 of 195042b (1) no insurer shall, after the expiration of seven years from the commencement of the insurance (amendment) act, 1950, appoint, or transact any insurance business in india, through a principal agentregulation of employment of principal agents(2) every contract between an insurer and a principal agent shall be in writing and the terms contained in part a of the sixth schedule shall be deemed to be incorporated in, and form part of, every such contract47 of 1950(3) no insurer shall, after the commencement of the insurance (amendment) act, 1950, appoint any person as a principal agent except in a presidency town unless the appointment is by way of renewal of any contract subsisting at such commencement47 of 1950(4) within sixty days of the commencement of the insurance (amendment) act, 1950, every principal agent shall file with the insurer concerned a full list of insurance agents employed by him indicating the terms of the contract between the principal agent and each of such insurance agents, and, if any principal agent fails to file such a list within the period specified, any commission payable to such principal agent on premiums received from the date of expiry of the said period of sixty days until the date of the filing of the said list shall, notwithstanding anything in any contract to the countrary, cease to be so payable(5) a certified copy of every contract as is referred to in sub-section (2) shall be furnished by the insurer to the authority within thirty days of his entering into such contract, and intimation of any change in any such contract shall be furnished by the insurer with full particulars thereof to the authority within thirty days of the making of any such change(6) if the commission due to any insurance agent in respect of any general insurance business procurred by such agent is not paid by the principal agent for any reason, the insurer may pay the insurance agent the commission so due and recover the amount so paid from the principal agent concerned47 of 1950(7) every contract as is referred to in sub-section (2), subsisting at commencement of the insurance (amendment) act, 1950 shall, with respect to terms regarding remuneration, be deemed to have been so altered as to be in accordance with the provisions of sub-section (4) of section 40a(8) if any dispute arises as to whether a person is or was a principal agent, the matter shall be referred to the authority, whose decision shall be final(9) every insurer shall maintain a register in which the name and address of every principal agent appointed by him, the date of such appointment and the date, if any, on which the appointment ceased shall be enteredagents42c (1) every contract between an insurer carrying on life insurance business and a chief agent shall be in writing, and shall specify the area (not being less in extent than a district or the equivalent thereof) for which the chief agent is appointed, and the terms contained in part b of the sixth schedule shall be deemed to be incorporated in, and form part of every such contract(2) no chief agent shall, either directly or through insurance agents or special agents employed by or through him procure life insurance business for the insurer in any area outside the area for which he has been appointed or in any area for which another chief agent has been appointed or in any area in which the head office or any branch office of the insurer is operating and, neither the head office or any branch office of the insurer shall operate in any area for which a chief agent has been apointed:47 of 1950provided that nothing in this sub-section shall be deemed to prohibit the head office ofan insurer which had been operating at the commencement of the insurance (amendment) act, 1950 for a period of not less than ten years before such commencement within the municipal limits of any town where the head office is situate, and a chief agent who, in pursuance of an agreement in writing, had been operating for a similar period within such limits, from continuing to operate within the said limits:provided further that nothing in this sub-section shall be deemed to prohibit an insurance agent from procuring life insurance business in or from any area and submitting the proposals direct to the principal office of the insurer in india47 of 1950(3) within sixty days of the commencement of the insurance (amendment) act, 1950every chief agent shall file with the insurer concerned a full list of the insurance agents employed by him, indicating the terms of the contract between the chief agent and each of such insurance agents and the business secured by each of such agents, and if any chief agent fails to file such a list with the period specified, any commission payable to such chief agent on premiums received from the date of the expiry of the said period of sixty days until the date of the filing of the said list, shall, notwithstanding anything in any contract to the contrary, cease to be so payable(4) every contract between an insurer carrying on life insurance business and special agent, or between a chief agent of such insurer and a special agent, shall be in writing and the terms contained in part c of the sixth schedule shall be deemed to be incorporated in, and form part of, every such contract:2 of 1912provided that the authority may, in the case of a contract between a co-operative lifeinsurance society as defined in clause (b) of sub-section (1) of section 95 and a co-operative society registered under the indian co-operative societies act, 1912, or under any other law for the time being in force and acting as a special agent, alter, to such extent as he thinks fit, all or any of the said terms(5) a certified copy of every contract as is referred to in sub-section (1) or sub-section(4) shall be furnished by the insurer or the chief agent to the authority within thirty days of his entering into such contract, and intimation of any change in any such contract shall be furnished by the insurer or the chief agent with full particulars there of to the authority within thirty days of the making of any such change(6) no such contract as is referred to in sub-section (1) or sub-section (4) shall be entered into or renewed for a period exceeding ten years at any one time, and, notwithstanding the terms of any contract to the contrary, no option to renew any such contract given to any of the parties shall be enforceable with the consent of the other47 of 1950(7) every contract between an insurer and person acting on behalf of such insurer who before the commencement of the insurance (amendment) act, 1950, has been employing insurance agents for the purpose of life insurance business, which is subsisting on such commencement, shall terminate after the expiration of ten years from such commencement, if it does not terminate earlier:provided that every such contract shall be modified by the parties before the ist day of january, 1951, to bring it into conformity with this act, and any such modification shall—(i) as respects remuneration, whether in respect of business already procured or in respect of business to be procured thereafter, be such as may be mutually agreed upon between the parties, subject, in the case of remuneration payable on business procured before such commencement, to a maxmum of an over-riding commission of two and a half per cent plus a further commission not exceeding three-quarters per cent on premiums in respect of which no commission is payable to any insurance agent;(ii) be deemed to include all the terms specified in part b or part c of the sixth schedule, as the case may be: provided further that, in the event of any dispute as to the terms of any fresh contract, the matter shall be referred to arbitration47 of 1950(8) any such contract as is referred to in sub-section (7) which was subsisting on the1st day of january, 1949, but has terminated or has been terminated before the commencement of the insurance (amendment) act, 1950, shall be subject to the maximum limits specified in clause (i) of the proviso to sub-section (7) as respects remuneration, if any, payable on business procured before the termination of the contract(9) nothing in this section shall be deemed to prevent any special agent from receiving any renewal commission on policies effected through him as an insurance agent at any time before his appointment as such special agent(10) if any dispute arises as to whether a person is or was a chief agent or a special agent for the purposes of this act, the matter shall be referred to the authority whose decision shall be final(11) every insurer shall maintain a register in which the name and address of every chief agent appointed by him, the date on which the appointment was made and the date, if any, on which the appointment ceased shall be entered, and a separate register in which similar particulars relating to every special agent shall be entered, and every chief agent shall maintain a register in which similar particulars relating to every special agent appointed by him shall be enteredissue of licence to intermediary or insurance intermediary42d (1) the authority or an officer authorised by it in this behlaf shall, in the manner determined by the regulations made by the authority and on payment of the fees determined by the regulations made by the authority, issue to any person making an application in the manner determined by the regulations, and not suffering from any of the disqualifications herein mentioned, a licence to act as an intermediary or an insurance intermediary under this act:provided that,—(a) in the case of an individual, he does suffer from any of the disqualifications mentioned in sub-section (4) of section 42, or(b) in the case of a company, or firm, any of its directors or partners does not suffer from any of the said disqualifications (3) a licence issued under this section shall remain in force for a period of three years only from the date of issue, but shall, if the applicant, being an individual does not, or being a company or firm any of its directors or partners does not suffer from any of the disqualifications mentioned in clauses (b), (c), (d), (e) and (f) of sub-section (4) of section 42and the application for renewal of licence reaches the issuing authority at least thirty days before the date on which the licence ceases to remain in force, be renewed for a period of three years at any one time on payment of the fee, determined by the regulations, made by the authority and additional fee for an amount determined by the regulations, not exceeding one hundred rupees by way of penalty, if the application for renewal of the licence does not reach the issuing authority at least thirty days before the date on which the licence ceases to remain in force (8) any person who acts as an intermediary or an insurance intermediary without holding a licence issued under this section to act as such, shall be punishable with fine, and any insurer, or any person who appoints as an intermediary or an insurance intermediary or any person not licensed to act as such or transacts any insurance business in india through any such person, shall be punishable with fine(9) where the person contravening sub-section (8) is a company or a firm, then, without prejudice to any other proceedings which may be taken against the company or firm, every director, manager, secretary or other officer of the company, and every partner of the firm who is knowingly a party to such contravention shall be punishable with fine42e (1) no intermediary or insurance intermediary shall be paid or contract to be paid by way of commission, fee or as remuneration in any form, an amount exceeding thirty per cent of the premium payable as may be specified by the regulations made by the authority, in respect of any policy or policies effected through him:commission, brokerage or fee payable to intermediary or insurance intermediaryprovided that the authority may specify different amounts payable by way of commission, fee or as remuneration to an intermediary or insurance intermediary or different classes of business of insurance(2) without prejudice to the provisions contained in this act, the authority may, by the regulations made in this behalf, specify the requirements of capital, form of business and other conditions to act as an intermediary or insurance intermediary register of insurance agents43 every insurer and every person who acting on behalf of an insurer employs insurance agents shall maintain a register showing the name and address of every insurance agent appointed by him and the date on which his appointment began and the date, if any, on which his appointment ceasedprohibition of cessation of payments of commission44 (1) notwithstanding anything to the contrary contained in any contract between any person and an insurance agent, providing for the forfeiture or stoppage of payment of renewal commission to such insurance agent no such person shall, in respect of life insurance business transacted in india, refuse payment to an insurance agent of commission due to him on renewal premium under the agreement by reason only of the termination of his agreement, except for fraud:provided that—(a) such agent ceases to act for the insurer concerned after the central government has notified in the official gazette that it is satisfied that the circumstances in which the said insurer is placed are such as to justify the agent's ceasing to act for him; or(b) such agent has served the insurer continually and exclusively in respect of life insurance business for at least five years and policies assuring a total sum of not less than fifty thousand rupees effected through him for the insurer were in force on a date one year before his ceasing to act as such agent for the insurer, and that the commission on renewal premiums due to him does not exceed four per cent in any case; or(c) such agent has served the insurer continually and exclusively for at least ten years and after his ceasing to act as such agent he does not directly or indirectly solicit or procure insurance business for any other person47 of 1950explanation— for the purposes of this sub-section, service of an insurance agent under a chief agent of the insurer, whether before or after the commencement of the insurance (amendment) act, 1950, shall be deemed to be service under the insurer(2) any commission payable to an insurance agent, under the provisions of clauses(b) and (c) of the proviso to sub-section (1) shall, notwithstanding the death of the agent, continue to be payable to his heirs for so long as such commission would have been payable had such insurance agent been alive44a for the purposes of ensuring compliance with the provisions of sections 40a,40b, 40c, 42b and 42c the authority may by notice—power to call for information(a) require from an insurer, principal agent, chief agent or special agent such information, certified if so required by an auditor or actuary, as he may consider necessary;(b) require an insurer, principal agent, chief agent or special agent to submit for his examination at the principal place of business of the insurer in india, any book of account, register or other document, or to supply any statement which may be specified in the notice;(c) examine any officer of an insurer or a principal agent, chief agent or special agent on oath, in relation to any such information, book, register, document or statement and adminster the oath accordingly, and an insurer, principal agent, chief agent or special agent shall comply with any such requirement with such time as may be specified in the notice special provisions of lawpolicy not to be called in question on ground of misstatement after two years45 no policy of life insurance effected before the commencement of this act shall after the expiry of two years from the date of commencement of this act and no policy of life insurance effected after the coming into force of this act shall after the expiry of two years from the date on which it was effected, be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer, or referee, or friend of the insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policyholder and that the policyholder knew at the time of making if that the statement was false or that it suppressed facts which it was material to disclose:provided that nothing in this section shall prevent the insurer from calling for proof of age at any time if he is entitled to do so, and no policy shall be deemed to be called in question merely becasue the terms of the policy are adjusted on subsequent proof that the age of the life insured was incorrectly stated in the proposalclaims on small life insurance policies47a (1) in the event of any dispute relating to the settlement of a claim on a policy of life insurance assuring a sum not exceeding two thousand rupees (exclusive of any profit or bonus not being a guaranteed profit or bonus) issued by an insurer in respect of insurance business transacted in india, arising between a claimant under the policy and the insurer who issued the policy or has otherwise assumed liability in respect thereof, the dispute may at the option of the claimant be referred to the authority for decision, and the authority may after giving an opportunity to the parties to be heard and after making such further inquiries as it may think fit, decide the matter(2) the decision of the authority under this sub-section shall be final and shall not be called in question in any court, and may be executed by the court which would have been competent to decide the dispute if it had not been referred to the authority as if it were a decree passed by that court(3) there shall be charged and collected in respect of the duties of the authority under this section such fees whether by way of percentage or otherwise as may be prescribeddirectors of insurers being companies7 of 1913 6 of 1882 10 of 186648 (1) where the insurer is a company incorporated under the indian companies act, 1913, or under the indian companies act, 1882, or under the indian companies act, 1866, or under any act repealed thereby and carries on the business of life insurance, not less than one-fourth of the whole number of the directors of the company the number to be elected not being less than two in any case shall, notwithstanding anything to the contrary in the articles of association of the company, be elected in the prescribed manner by the holders of policies of life insurance issued by the company(2) only and all persons holding otherwise than as assignees policies of life insurance issued by the company of such minimum amount and having been in force for such minimum period as may be prescribed shall unless disqualified under sub-section (2a) be eligible for election as directors under sub-section (1), and only and all persons holding policies of life insurance issued by the company and having been in force at the time of the election for not less than six months shall be eligible to vote at such elections:provided that the assignment of a policy to the person who took out the policy shall not disqualify that person for being eligible for election as a director under sub-section (1)(2a) a person shall be ineligible for election as a director under sub-section (1) of any company if he is a director, officer, employee, or legal or technical adviser of that company or of any other insurer, and shall cease to be a director under sub-section (1) if after election he acquires any disqualification specified in this sub-section or no longer holds the qualifications required by sub-section (2):provided that nothing in this sub-section shall disqualify a person who is an elected director under sub-section (1) and is not otherwise disqualified under this sub-section, from being re-elected:provided further that the authority may exempt any director of a subsidiary company of the insurer from any disqualification imposed by this sub-section(3) the central government may, for such period, or to such extent and subject to such conditions as may be specified by it in this behalf, exempt from the operation of this section—(a) any mutual insurance company as defined in clause (a) of sub-section (1) of section 95, in respect of which the authority certifies that in its opinion owing to the conditions governing membership of the company or to the nature of the insurance contracts undertaken by it the application of the provisions of this section to the company is impracticable, or(b) any company in respect of which the authority certifies that in its opinion the company, having taken all reasonable steps to achieve compliance with the provisions of this section, has been unable to the obtain the required number of directors with the required qualifications(4) this section shall not take effect, in respect of any company in existence at the commencement of this act, until the expiry of one year therefrom, and in respect of any company incorporated after the commencement of this act, until the expiry of two years from the date of registration to carry on life insurance business48a no insurance agent who solicits or procures life insurance business, and no chief agent or special agent, shall be eligible to be or remain a director of any insurance company carrying on life insurance business:life insurance agents not to be directors of life insurance companies6 of 1946provided that any director holding office at the commencement of the insurance(amendment) act, 1946, shall not become ineligible to remain a director by reason of this section until the expiry of six months from the commencement of that act| ||----------------|| restriction on || dividends and || bonuses || 6 of 1912 |49 (1) no insurer, being an insurer specified in sub-clause (a) (ii) or sub-clause (b) of clause (9) of section 2, who carries on the business of life insurance or any other class or sub-class of insurance business to which section 13 applies shall, for the purpose of declaring or paying any dividend to shareholders or any bonus to policyholders or of making any payment in service of any debentures, utilize directly or indirectly any portion of the life insurance fund or of the fund of such other class or sub-class of insurance business, as the case may be, except a surplus shown in the valuation balance-sheet in such form as may be specified by the regulations made by the authority submitted to the authority as part of the abstract referred to in section 15 as result of an actuarial valuation of the assets and liabilities of the insurer; nor shall he increase such surplus by contributions out of any reserve fund or otherwise unless such contributions have been brought in as revenue account applicable to that class or sub-class of insurance business on or before the date of the valuation aforesaid, except when the reserve fund is made up solely of transfers from similar surpluses disclosed by valuations in respect of which returns have been submitted to the authority under section 15 of this act or to the central government under section 11 of the indian life assurance companies act, 1912:provided that payments made out of any such surplus in service of any debentures shall not exceed fifty per cent of such surplus including any payment by way of interest on the debentures, and interest paid on the debentures shall not exceed ten per cent of any such surplus except when the interest paid on the debentures is offset against the interest credited to the fund or funds concerned in deciding the interest basis adopted in the valuation disclosing the aforesaid surplus:provided further that the share of any such surplus allocated to or reserved for the shareholders (including any amount for the payment of dividends guaranteed to them, whether by way of first charge or otherwise) shall not exceed such sums as may be specified by the authority and such share shall in no case exceed ten per cent of such surplus in case of participating policies and in other cases the whole thereof prohibition of business on dividing principle52 (1) no insurer shall after the commencement of this act begin, or after three years from that date continue to carry on, any business upon the dividing principle, that is to say, on the principle that the benefit secured by a policy is not fixed but depends either wholly or partly on the results of a distribution of certain sums amongst policies becoming claims within certain time-limits, or on the principle that the premiums payable by a policyholder depend wholly or partly on the number of policies becoming claims within certain time-limits:provided that nothing in this section shall be deemed to prevent an insurer from allocating bonuses to holders of policies of life insurance as a result of a periodical actuarial valuation either as reversionary additions to the sums insured or as immediate cash bonuses or otherwise:provided further that an insurer who continues to carry on insurance business on the dividing principle after the commencement of this act shall with hold from distribution a sum of not less than forty per cent of the premiums received during each year after the commencement of this act in which such business is continued so as to make up the amount required for investment under section 27(2) on the expiry of the period of three years referred to in sub-section (1), or on the insurer's ceasing before such expiry but at any time after the commencement of the insurance13 of 1941(amendment) act, 1941 to carry on business on the dividing principle, the insurer shall forthwith cause an investigation to be made by an actuary, who shall determine the amount accumulated out of the contributions received from the holders of all policies to which the dividing principle applies and the extent of the claims of those policyholders against the realisable assets of the insurer, and shall, before the expiration of six months from the date on which he is entrusted with the investigation, make recommendations regarding the distribution, whether by cash payments or by the allocation of paid-up policies or by a combination of both methods, of such assets as he finds to appertain to such policyholders; and the insurer shall, before the expiry of six months from the date on which the actuary makes his recommendations, distribute such assets in accordance with those recommendations13 of 1941(3) where at any time prior to the commencement of the insurance (amendment) act,1941, an insurer has ceased to carry on business on the dividing principle, the insurer shall, before the expiration of two months from the commencement of that act, report to the authority the measurers taken or proposed by him for the distribution among holders of policies to which the dividing principle applies of the assets due to them; and the authority may either sanction such measures or refuse its sanction, and, if it refuses its sanction or if the insurer does not report to it as required by this sub-section, the provisions of subsection (2) shall apply to the insurer forthwith management by administrator52a (1) if at any time the authority has reason to believe that an insurer carrying on life insurance business is acting in a manner likely to be prejudicial to the interests of holders of life insurance policies, it may, after giving such opportunity to the insurer to be heard as it thinks fit, make a report thereon to the central governmentwhen administrator for management of insurance business may be appointed(2) the central government, if it is of opinion after considering the report that it is necessary or proper to do so, may appoint an administrator to manage the affairs of the insurer under the direction and control of the authority(3) the administrator shall receive such remuneration as the central government may direct and the central government may at any time cancel the appointment and appoint some other person as administrator 52bb (1) (2) any person aggrieved by an order made by the administrator under sub-section (1)may, within fourteen days from the date on which the order is served on him, appeal against such order to the central government and the central government may pass such order thereon as it thinks fitpowers of administrator respecting property liable to attachment under section 106(3) an order made by the administrator under sub-section (1) shall, subject to any other order made by the central government on appeal, be in force for a period of three months from the date of the order unless, before the expiry of the said period, an application is made under sub-section (1) of section 106 to the court competent to exercise jurisdiction under that sub-section, and when such an application is made, the order shall, subject to any order made by that court, continue inforce as if it were an order of attachment made by that court in proceeding under that section (10) save as provided in this section or in section 106, and notwithstanding anything contained in any other law for the time being in force,—(a) no suit or other legal proceeding shall lie in any court to set aside or modify any order of the administrator or the central government made under this section, and termination of appointment of administrator52d if at any time, on a report made by the authority in this behalf, it appears to the central government that the purpose of the order appointing the administrator has been fulfilled or that for any reason in is undesirable that the order of appointment should remain in force, the central government may cancel the order and thereupon the administrator shall be divested of the management of the insurance business which shall, unless otherwise directed by the central government, again vest in the person in whom it was vested immediately prior to the date of appointment of the administrator52e any order or decision of the central government made in pursuance of section52a or section 52d shall be final and shall not be called in question in any courtfinality of decision appointing administratorpenalty for withholding documents of property from administrator52f if any director or officer of the insurer or any other person fails to deliver to the administrator any books of account, registers or any other documents, in his custody relating to the business of the insurer, the management of which has vested in the administrator, or retains any property of such insurer, he shall be punishable with imprisonment which may extend to six months, or with fine which may extend to one thousand rupees, or with both52g (1) protection of action takenunder sections 52a to 52d(2) no suit or other legal proceeding shall lie against the central government or the authority for any damage caused or likely to be caused by anything which is in good faith done or intended to be done under section 52a, section 52b, or section 52d acquisition of the undertakings of insurers in certain cases52h (1) if, upon receipt of a report from the authority, the central government is satisfied that an insurer,—(a) has persistently failed to comply with—power of central government to acquire undertakings of insurers in certain cases(i) any direction given to him under section 34, section 34f or section 34g, or (ii) any order made under section 34e; or(b) is being managed in a manne detrimental to the public interest or to the interests of his policyholders, or shareholders, and that—(i) in the public interest, or (ii) in the interests of the policyholders or shareholders of such insurer, it is necessary to acquire the undertaking of such insurer, the central government may, by notified order, acquire the undertaking of such insurer (hereafter in this section and in sections 52-i, 52j and 52n and in the eighth schedule referred to as the acquired insurer) with effect from such date as may be specified in the order (hereinafter in this section and in section 52-i and 52j and in the eighth schedule referred to as the appointed day):provided that no undertaking of an insurer shall be so acquired unless such insurer has been given a reasonable opportunity of showing cause against the proposed actionexplanation—for the purposes of this section and of sections 52-i to 52n—(a) "notified order" means an order published in the official gazette,(b) "undertaking", in relation to an insurer incorporated outside india means theundertaking of the insurer in india(2) subject to the other provisions contained in this section and in sections 52-i to52m, on the appointed day, all the assets and liabilities of the undertaking of the acquired insurer shall stand transferred to, and vest in, the central government(3) the assets and liabilities of the undertaking of the acquired insurer shall be deemed to include all rights, powers, authorities and privileges and all property whether movable or immovable, including, in particular cash balances, reserve funds, investments, deposts and all other interest and rights in, or arising out of, such property as may be in the possession of, or held by, the acquired insurer immediately before the appointed day and all books, accounts and documents relating thereto, and shall also be deemed to include all debts, liabilities and obligations, of whatever kind, then existing of the acquired insurer(4) notwithstanding anything contained in sub-section (2), the central government may, if it is satisfied that all the assets and liabilities of the undertaking of the acquired insurer should, instead of vesting in the central government, or continuing to so vest, vest in a corporation or company, whether established under the scheme made under section 52-i or not (hereafter in this section and in sections 52-i to 52n and in the eight schedule referred to as the acquiring insurer), or order, direct that the assets and liabilities of the said undertaking, shall vest in the acquiring insurer, either on the publication of the notifed order or on such other date as may be specified in this behalf in the direction(5) where the undertaking of the acquired insurer vests in an acquiring insurer under sub-section (4), the acquiring insurer shall, on and from the date of such vesting, be deemed to have become the transferee of the acquired insurer and all the rights and liabilities in election to the acquired insurer shall, on and from the date of such vesting be deemed to have been the rights and liabilities of such acquiring insurer(6) unless otherwise expressly provided by or under this section or sections 52-i to52m, all contracts, deeds, bonds, agreements, power-of-attorney, grants of legal representation and other instruments of whatever nature subsisting or having effect immediately before the appointed day and to which the acquired insurer is a party or which are in favour, of the acquired insurer shall be of as full force and effect against or in favour, of the central government or, as the case may be, the acquiring insurer, and may be enforced or acted upon as fully and effectually as if in the place of the acquired insurer the central govrernment or the acquiring insurer had been a party thereto or as if they had been issued in favour of the central government or the acquiring insurer, as the case may be(7) if, on the appointed day, any suit, appeal or other proceeding of whatever nature, is pending by or against the acquired insurer, the same shall not abate, be discontinued or be, in any way prejudicially affected by reason of the transfer of the undertaking of the acquired insurer or of anything contained in this section or in sections 52-i to 52m, but the suit, appeal or other proceeding may be continued, prosecuted and enforced by or against the central government or the acquiring insurer, as the case may be52-i (1) the central government may make a scheme for carrying out the purposes of sections 52h and 52j to 52m (both inclusive) in relation to the acquired insurerpower of central government to make scheme(2) in particular, and without prejudice to the genearlity of the foregoing power, the said scheme may provide for all or any of the following matters, namely:—(a) tranfer of the undertaking, including the property, assets and liabilities of the acquired insurer to an acquiring insurer, and the capital, constitution, name and office of the acquiring insurer;(b) the constitution of the first board of management (by whatever name called)of the acquiring insurer and all such matters in connection therewith or incidental thereto as the central government may consider to be necessary or expedient;(c) the contiuance of the service of all the employees of the acquired insurer(excepting such of them as, not being workmen within the meaning of the industrial disputes act, 1947, are specifically mentioned in the scheme) in the central government or in the acquiring insurer, as the case may be, on the same terms and conditions, so far as may be, as are specified in clauses (i) and (j) of sub-section (2) of section 37a so far as they may apply;(d) the continuance of the rights of any person who, on the appointed day, is entitled to, or is in receipt of, a pension or other superannuation or compassionate allowance or benefit from the acquired insurer or any provident, pension or other fund or any authority administering such fund to be paid by, and to receive from the central government or the acquiring insurer, as the case may be, or any provident, pension or other fund or any authority administering such fund, the same pension, allowance or benefit so long as he observes the conditions on which the pension, allowance or benefit was granted, and if any question arises whether he had so observed such condition, the question shall be determined by the central government and the decision of the central government thereon shall be final;(e) the manner of payment to the acquired insurer in full satisfaction of his claim in relation to the compension payable in accordance with the provisions of section 52j;(f) the provision, if any, for completing the effectual transfer to the central government or the acquiring insurer of any asset or liability which forms part of the undertaking of the acquired insurer in any country outside india;(g) such incidental, consequential and supplemental matters as may be necessary to secure that the transfer of the undertaking, property, assets and liabilities of the acquired insurer to the central government or the acquiring insurer, as the case may be, is effectual and complete (3) the central government may, be notification in the official gazette, and to, amend or vary any scheme made under this section(4) every scheme made under this section shall be published in the official gazette (5) copies of every scheme made under this section shall be laid before each house of parliament as soon as may be after it is made(6) the provisions of sections 52h and 52j to 52m and of any scheme made under this section shall have effect notwithstanding anything to the contrary contained in any other provision of this act or in any other law or any agreement, award or other instrument for the time being in forcecompensation to be given to the acquired insurer52j (1) the acquired insurer shall be given by the central government or the acquiring insurer, as the case may be, such compensation in respect of the transfer of the undertaking of the acquired insurer as is determined in accordance with the principles contained in the eighth schedule(2) the amount of compensation to be given in accordance with the principles contained in the eighth scheduled shall be determined, in the first instance, by the central government or the acquiring insurer, as the case may be, in consultation with the authority, and shall be offered by it to the acquired insurer, in full satisfaction thereof(3) if the amount of compensation offered in terms of sub-section (2) is not acceptable to the acquired insurer, he may, before such date as may be notified by the central government in the official gazette, request the central government in writing to have the matter referred to the tribunal constituted under section 52k(4) if before the date notified under sub-section (3) the central government does not receive request as provided in that sub-section, the amount of compensation offered under sub-section (2), or where a reference has been made to the tribunal, the amount determined by it, shall be compensation payable under sub-section (1) and shall be final and binding on all the parties concerned(5) where the central government does not receive request as provided in sub-section(3), the compensation payable in pursuance of the provisions of this section shall become due for payment on the expiry of one year from the appointed day, and where a reference has been made to the tribunal under sub-section (3), the amount determined by the tribunal as compensation shall become due for payment on the expiry of one year from the appointed day or on the date of decision of the tribunal, whichever is earlier(6) if between the appointed day and the date on which the compensation becomes due in pursuance of sub-section (5), any facts come to light which call for revision of the amount of the compensation, the necessary modification of the amount of the compensation shall be made and the amount of the compensation so determined shall be compensation payable in pursuance of sub-section (1)(7) there shall also be paid simple interest at the rate of three per cent per annum on the amount of the compensation for the period from the appointed day to the date on which payment of the compensation becomes due52k (1) the central government may, for the purposes of sections 52h to 52j, constitute a tribunal which shall consist of a chairman and two other membersconstitution of the tribunal38 of 1949(2) the chairman shall be a person who is, or has been, a judge of a high court or of the supreme court and of the two other members, one shall be a person who, in the opinion of the central government has had experience of matters connected with general insurance and the other shall be a person who is chartered accountant within the meaning of the chartered accountants act, 1949(3) if, for any reason, a vacancy occurs in the office of the chairman or any other member of the tribunal, the central government may fill the vacancy by appointing another person thereto in accordance with the provisions of sub-section (2), and any proceedings may be contributed before the tribunal so constituted from the stage at which the vacancy occurred(4) the tribunal may, for the purpose of determining any compensation payable under section 52j, choose one or more persons having special knowledge or experience of any relevant matter to assist it in the determination of such compensation52l (1) the tribunal shall have the powers of a civil court, while trying a suit, under the code of civil procedure, 1908, in respect of the following matters, namely:—5 of 1908tribunal to have powers to civil court(a) summoning and enforcing the attendance of any person and examining himon oath;(b) requiring the discovery and production of documents;(c) receiving evidence on affidavits;(d) issuing commissions for the examination of witnesses or documents(2) notwithstanding anything contained in sub-section (1) or in any other law for the time being in force, the tribunal shall not compel the central government or the authority—(a) to produce any books of account, or other documents which the centralgovernment or the authority claims to be confidential nature;(b) to make any such books or documents a part of the record of the proceedingsbefore the tribunal;(c) to give inspection of any such books or documents to any party before it andto any other person45 of 1860(3) any proceeding before the tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the indian penal code and the tribunal shall be deemed to be a civil court for the purposes of section 195 and chapter xxxv of the code of criminal procedure, 18985 of 189852m (1) the tribunal shall have power to regulate its own procedureprocedure of the tribunal(2) the tribunal may hold the whole or any part of its inquiry in camera (3) any clerical or arithmetical error in any order of the tribunal or any error arising therein from any accidental slip or omission may, at any time, be corrected by the tribunal either of its own motion or one the application of any of the partiesspecial provisions for the dissolution of acquired insurers52n where any acquired insurer, being a company, has in accordance with the provisions of this act, collected and distributed any monies paid to him by the central government or the acquiring insurer, as the case may be, by way of compensation or otherwise, and has also complied with any directions given to him by the central government or the acquiring insurer, as the case may be, for the purpose of securing that the ownership of any property or any right is effectively transferred to the central government or the acquiring insurer, as the case may be, the central government may, on application being made to it in this behalf by such insurer, grant a certificate to the insurer that there is no reason from the continued existence of the insurer, and upon the publication of such certificate, the insurer shall be dissolved winding upwinding up by the court1 of 195653 (1) the tribunal may order the winding up in accordance with the companies act,1956 of any insurance company and the provisions of the act shall, subject to the provisions of this act, apply accordingly(2) in addition to the grounds on which such an order may be based, the tribunal may order the winding up of an insurance company— (b) if the authority who is hereby authorised to do so, applies in this behalf to the tribunal on any of the following grounds, namely:—(i) that the company has failed to deposit or to keep deposited with the reserve bank of india the amounts required by section 7 or section 98; 58 (1) scheme for partial winding up of insurance companies7 of 1913(4) an order of the tribunal confirming a scheme under this section whereby the memorandum of a company is altered with respects to its object shall as respects the alteration have effect as if it were on order confirmed under section 12 of the indian companies act,1913, and the provisions of sections 15 and16 of the act shall apply accordinglyreturn of deposits59 in the winding up of an insurance company (otherwise than in a case of whichsection 58 applies) and in the insolvency of any other insurer the liquidator or assignee as the case may be shall apply to the tribunal for an order for the return of the deposit made by the company or the insurer as the case may be under section 7 or section 98 and the tribunal shall on such application order a return of the deposit subject to such terms and conditions as it shall direct part ii a insurance association of india, councils of the association and committees thereof47 of 1950incorporation of the insurance association of india64a (1) all insurers carrying on insurance business in india at the commencement ofthe insurance (amendment) act, 1950, all insurers who may after such commencement begin to carry on issurance business in india, and, if the central government, by notification in the official gazette, so declares all provident societies carrying on insurance business in india on the date of such notification and all provident societies which may begin to carry on insurance business in india after such date are hereby constituted a body corporate by the name of the insurance association of india(2) all insurers and provident societies incoporated or domiciled in india shall beknown as members of the insurance association of india, and all insurers and providentsocieties incorporated or domiciled elsewhere than in india shall be known as associate members of that association(3) the insurance association of india shall have perpetual succession and a common seal and shall have power to acquire, hold and dispose of all property, both movable and immovable, and shall by the said name sue and be suedentry of names of members in the register64b (1) the authority shall take or cause to be taken through such agency as he thinks fit such steps as may be necessary to have the names of all insurers and provident societies, who or which are entitled to have their names entered in the register of members and associate members of the insurance association of india maintained for this purpose entered therein(2) where any insurer or provident society has ceased to carry on business as such, the authority shall cause such steps to be taken as may be necessary to have the name of such insurer or provident society, as the case may be, removed from the register64c there shall be two councils of the insurance association of india, namely:—councils of the insurance association of india(a) the life insurance council consisting of all the members and associate members of the association who carry on life insurance business in india, and(b) the general insurance council consisting of all the members and associate members of the association who carry on general insurance business in india64d it shall be lawful for any member of the life insurance council or the general insurance council to authorise any individual, whether an officer of the insurer or not, to act as the representative of such member at any meeting of the council concerned or to stand as a candidate for any election held by that councilauthority of members of association to act through agents 64f (1) the executive committee of the life insurance council shall consist of the following persons, namely:—(a) two official nominated by the authority, one as the chairman and the other as a member;executive committees of the life insurance council and the general insurance council(b) eight representative of members of the insurance association of india carrying on life insurance business elected in their individual capacity by the said members in such manner, from such groups of members and from such areas as may be specified by the authority;(c) one non-official not connected with any insurance business, nominated by the authority; and(d) five person conected with life insurance business, nominated by authority for the purpose of representing such groups of insurers carrying on life insurance business or such areas as have not been able to secure adequate representation on the executive committee of the life insurance council or for any other purpose (2) the executive committee of the general insurance council shall consist of the following persons, namely:—(a) two officials nominated by the authority, one as the chairman and the other as member;(b) eight representative of members of the insurance association of india carrying on general insurance business elected in their individual capacity by the said members in such manner, from such groups of members and from such areas as may be specified by the authority;(c) one non-official not connected with any insurance business, nominated by the authority; and(d) five persons connected with life insurance business, nominated by the authority for the purpose of representing such groups of insurers carrying on general insurance business or such areas as have not been able to secure adequate representation on the executive committee of the general insurance council or for any other purpose (3) if anybody of person specified in sub-sections (1) and (2) fails to elect any of the members of the executive committees of the life insurance council or the general insurance council, the authority may nominate any person to fill the vacancy, and any person so nominated shall be deemed to be member of the executive committee of the life insurance council or the general insurance council, as the case may be, as if he had been duly elected thereto(4) no official nominated by the authority shall be entitled, whether as chairman or as a member, to vote in respect of any matter coming up before any meeting of the executive committee of the life insurance council or the executive committee of the general insurance council, as the case may be, and subject thereto each of the said executive committees may, with the approval of the authority, make bye-law as for the transaction of any business at any meeting of the said committee, and any such bye-law may provide that any member of the committee who is interested in any matter for the time being before that committee may not be present at or take part in any meeting thereof(5) the life insurance council or the general insurance council may from such other committees consisting of such persons as it may think fit to discharge such functions as may be delegated thereto:provided that any action taken by any of the said councils under this sub-section shall be with the previous consent of the authority, and nothing in this sub-section shall derogate from any of the powers vested in the executive committees(6) the secretary of the executive committee of the life insurance council and of the executive committee of the general insurance council shall in each case be an official nominated by the authority64g (1) resignation and filling up of casual vacancies(2) casual vacancies in the executive committee of the life insurance council or of the general insurance council, whether caused by resignation, death or otherwise, shall be filled by nomination by the authority, and any person so nominated to fill the vacancy shall hold office until the dissolution the committee to which he has been nominated 64-i the life insurance council, may with the approval of the authority, authorise its executive committee to hold examinations for individuals wishing to qualify themselves as insurance agents for the purpose of procuring life insurance business, and, if the authority, by notification in the official gazette, so declares then, notwithstanding anything contained in section 42, only individuals who have passed any such examination shall be eligible to apply for a licence under section 42:power of executive committee of life insurance council to hold examinations for insurance agentsprovided that nothing in this sub-section shall affect the right of any individual, who has been licensed to act as an insurance agent under section 42 before the date of such notification, to act as such, or to have his licence renewed from time to time64j (1) functions of executive committee of life insurance council(2) for the purpose of enabling it effectively to discharge its functions, the executive committee of the life insurance council may collect such sums of money, whether by way of fees or otherwise, as may be prescribed from all members and associate members of the insurance association of india who carry on life insurance business (2) for the purpose of enabling it effectively to discharge its functions, the executive committee of the general insurance council may collect such fees as may be prescribed from all insurers carrying on general insurance business:functions of the executive committee of general insurance councilprovided that if the general insurance council thinks fit, it may by a resolution passed by it, waive the collection of the prescribed fees for any year and where any such resolution has been approved by the authority, the executive committee of the general insurance council shall not collect any fees in relation to that yearpowers of the executive committeesto acttogether in certain cases64n the central government may prescribe the circumstances in which, the manner in which and the conditions subject to which, the executive committee of the life insurance council and the executive committee of the general insurance council may hold joint meetings for the purpose of dealing with any matter of common interest to both committees, and it shall be lawful for the two committees at any such joint meeting to delegate any matter under consideration for the determination of a sub-committee appointed for this purpose from amongst the members of the two committees 64r (1) for the efficient performance of its duties, the life insurance council or the general insurance council, as the case may be, may— (c) keep and maintain up-to-date a copy of the list of all insurers who are members or associate members of the insurance association of india;general powers of life insurance council and general insurance council(d) with the previous approval of the authority, make regulations for—(i) the holding of elections other than the first elections; (ii) the summoning and holding of meetings, the conduct of business thereat and the number of persons necessary to form a quorum;(iii) the submission by insurers to the executive committee of the life insurance council, or the general insurance council, of such statements or information as may be required of them and the submission of copies thereof by the insurers to the authority;(iv) the levy and collection of any fees; (v) the regulation of any other matter which may be necessary for the purpose of enabling it to carry out its duties under this act 64s the central government may exercise such powers as may be necessary for bringing the life insurance council, the general insurance council or the executive committee of any of the said councils, as the case may be, into effective existence for the purposes of this part, and any such powers shall include—power of central government to remove difficulties(a) the power to hold, in such manner as may be directed by the central government, the first elections to the executive committees of the life insurance council and the central insurance council;(b) where a notification under sub-section (1) of section 64a has been issued declaring provident societies to be members of the insurance association of india, the powers to associate provident societies effectively in the exercise of all powers and the discharge of all function of the life insurance council and the executive committee thereof;(c) the power to make the provisions of section 40b applicable to the provident societies specified in clause (b) in the same manner as they apply to insurerspower to exempt64t the central government may, subject to such conditions and restrictions as it may think fit to impose, exempt any insurers specified in sub-clause (c) of clause (9) of section 2 from the operation of all or any of the provisions of this part part iib tariff advisory committee and control of tariff rates62 of 1968establishment of tariff advisory committee64u (1) with effect from the commencement of the insurance (amendment)act, 1968 there shall be established a committee, to be called the tariff advisory committee (hereafter in this part referred to as the advisory committee) to control and regulate the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business(2) the advisory committee shall be a body corporate having perpetual succession and a common seal, with power, subject to the provisions of this act, to acquire, hold and dispose of property, both movable and immovable, and to contract, and may, by the said name, sue and be sued64ua (1) the advisory committee shall consist of the following members, namely:—composition of the advisory committee(a) the chairperson of the authority ex officio, who shall be the chairman; (b) a senior officer of the office of the authority nominated by the authority who shall be the vice-chairman;(c) not more than ten representatives of indian insurers, elected (in their individual capacities) by such insurers in such manner, from such areas and from among such insurers or groups of insurers as may be prescribed;(d) not more than four representatives of insurers incorporated or domiciled elsewhere than in india but registered in india, elected (in their individual capacities) by such insurers in such manner, and from among such insurers or groups of insurers as may be prescribed (2) the secretary to the advisory committee shall be an officer of the office of the authority nominated by the authority64ub (1) the authority may, by notification in the official gazette, make regulations to carryout the purposes of this partpower to make rules in respect of matters in this part(2) in particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:—(a) the functions to be discharged by the advisory committee; (b) the term of office of the members of the advisory committee, the procedure for their election and the manner of filling casual vacancies in the advisory committee;(c) the travelling and other allowances payable to the members of the advisory committee;(d) the procedure for holding the meetings of the advisory committee and for transaction of business thereat (3) the advisory committee may, by notification in the official gazette, with the previous approval of the authority make regulations for all or any of the following matters, namely:—(a) the constitution, powers and duties of regional committees and of sub-committees constituted by the advisory committee or any regional committee;(b) the method of election of candidates for regional committees and subcommittees, their eligibility, term of office and method of filling casual vacancies;(c) the procedure for convening meetings and transaction of business by regional committees and sub-committees;(d) the appointment of officers and other employees of the advisory committee and of regional committees or sub-committees constituted by or under the advisory committee or any regional committee and the terms and conditions of their service including travelling and other allowances;(e) such other matters pertaining to procedure as are not inconsistent with the provisions of this act or rules made thereunder, and may, from time to time, with the previous approval of the authority add to amend or vary any such regulations62 of 1968(4) the regulations made by the tariff committee of the general insurance council under section 64-o as they were in force immediately before the commencement of the insurance (amendment) act, 1968, shall, after such commencement, continue to be in force until rules are made by the authority under sub-section (1) and immediately after such rules have come into effect, the regulations aforesaid shall cease to be valid(5) the chairperson of the authority shall be in direct charge of the establishment of the advisory committee and the secretary of the advisory committee shall work under his direction and controlpower of advisory committee to regulate rates, advantages, etc64uc (1) the advisory committee may, from time to time and to the extent it deems expedient, control and regulate the rates, advantages, terms and conditions that may be offered by insurers in respect of any risk or of any class or category of risks, the rates, advantages, terms and conditions of which, in its opinion, it is proper to control and regulate, and any such rates, advantages, terms and conditions shall be binding on all insurers:provided that the authority may, permit any insurer to offer, during such period(being not more than two years but which may be extended by periods of not more than two years at a time) and subject to such conditions as may be specified by him, rates, advantages, terms and conditions different from those fixed by the advisory committee in respect of any particular category of risks, if it is satisfied that such insurer generally issues policies only to a restricted class of the public or under a restricted category of risks(2) in fixing, amending or modifying any rates, advantages, terms or conditions, relating to any risk, the advisory committee shall try to ensure, as far as possible, that there is no unfair discrimination between risks of essentially the same hazard, and also that consideration is given to past and prospective loss experience:provided that the advisory committee may, at its discretion, make suitable allowances for the degree of credibility to be assigned to the past experience, including allowances for random fluctuations and may also, at its discretion, make suitable allowances for future fluctuations and unforeseen future contingencies, including hazards of conflagration or catastrophe or both(3) every decision of the advisory committee shall be valid only after and to the extent it is ratified by the authority, and every such decision shall take effect from the date on which it is so ratified by the authority or, if the authority so orders in any case, from such earlier date as he may specify in the order(4) the decisions of the advisory committee in pursuance of the provisions of this section shall be final(5) where an insurer is guilty of breach of any rate, advantage, term or condition fixed by the advisory committee, he shall be deemed to have contravened the provisions of this act:provided that instead of proceeding against the insurer for such contravention, the authority may, if the insurer removes the contravention by recovering the deficiency in the premium, or where it is not practicable to do so, modifies suitably or cancels the contract of insurance, compound the offence on payment to the advisory committee of such fine, not exceeding rupees one thousand, as he may decide in consultation with the advisory committeetransitional provisions64ud (1) notwithstanding anything contained in this part, until the names of the members of the advisory committee elected for the first time after the commencement of the insurance (amendment) act, 1968, are notified, the tariff committee of the general insurance council appointed under regulations made under sub-section (2) of section 64-o as it was in force immediately before the commencement of the insurance (amendment) act, 1968, and in existence on each commencement (hereafter in this part referred to as the tariff committee) shall continue to function and shall be deemed to be the advisory committee duly elected under this part and the authority of insurance shall become the chairman of that committee with effect from the commencement of the insurance (amendment) act, 1968, and function as such, and any chairman of the tariff committee holding office immediately before such commencement shall cease to be the chairman thereof from the date of such commencement but shall continue to be an ordinary member of the advisory committee:provided that the chairperson of the authority shall become the chairman of the advisory committee with effect from the commencement of the insurance regulatory and development authority act, 1999 and function as such, and any chairman of the tariff committee holding office immediately before such commencement shall cease to be the chairman(2) notwithstanding anything contained in this part, the constitutions of the regional councils established under section 64p, as in force immediately before the commencement of the insurance (amendment) act, 1968 (hereafter referred to as the regional councils), and of the sectional committees formed thereunder, existing immediately, before such commencement, shall continue to be in full force and be of full effect, until the regulations made by the advisory committee for the first time under section 64ub come into effect and as soon as such regulations have come into effect such constitutions shall cease to have effect(3) notwithstanding anything contained in this part, until the secretary to the advisory committee is nominated under sub-section (2) of section 64ua, the secretary to the tariff committee holding office immediately before the commencement of the insurance (amendment) act, 1968, shall function as the secretary and shall be deemed to have been duly nominated under this part(4) all rates, advantages, terms and conditions fixed by the tariff committee or the regional councils prior to the commencement of the insurance (amendment) act,1968, and in force immediately before such commencement shall continue, except to such extent as they may be altered, replaced or abolished by the advisory committee, to be valid and fully in force as if they were rates, advantages, terms and conditions fixed by the advisory committeepower of the advisory committee to require information, etc64ue (1) the advisory committee require, by notice in writing, any insurer to supply to it such information or statements, periodical or ad hoc, as it may consider necessary, to enable it to discharge its functions under this part and every insurer shall comply with such requirements within such period as may be specified by the advisory committee in this behalf, failing which the insurer shall be deemed to have contravened the provisions of this act(2) any information supplied under this section shall be certified by a principal officer of the insurer or where the advisory committee has agreed in advance, by such other officer or officers of the insurer as the principal officer of the insurer may nominate for the prupose and if the notice so requires, also by an auditor(3) the authority may, at any time, in writing, depute any subordinate of it to make a personal inspection of the books of account, ledgers, policy-registers and other books or documents of any insurer to verify the accuracy of any return or statement furnished by him under sub-section (1), or to verify that full particulars have been supplied by him in respect of all policies issued by him, and the insurer shall provide all facilities for such inspection and make available to such person all the books of account, ledgers, policy-registers and other books or ducuments of the62 of 1968 41 of 1999 62 of 1968 62 of 196862 of 1968insurer which might be needed by him for such verification and the person deputed may himself extract from out of the books and records of the insurer such information as may be needed to fill up or complete the returns required to be submitted to the advisory committee under this section(4) the advisory committee may, at any time, on the application of an insurer, make arrangements for the inspection of an organisation which is concerned with the inspection or risks, adjustment of losses or fire-fighting appliances, and may, whenever necessary, advise insurers about the adequacy of the arrangements for the inspection or risks and adjustment of losses or the suitability of such appliance:provided that no such inspection shall be made without the written permission of the concerned organisation62 of 196864uf (1) on the commencement of the insurance (amendment) act, 1968, allthe assets and liabilities of the general insurance council appertaining to its tariff committee and to its regional council and their sectional committees existing on that day shall be transferred to, and vest in, the advisory committeeassets and liabilities ofgeneralinsurance council to vest in, advisory committee(2) the assets appertaining to the tariff committee, the regional councils, andtheir sectional committees shall be deemed to include all rights and powers and all property, whether movable or immovable including, in particular, cash balance, reserve funds; investment, deposits and all other interests and rights in, or arising out of, such property as may be in the possession of the tariff committee, regional councils and the sectional committees and all books of account or documents thereof; and liabilities shall be deemed to include all debts liabilities and obligations of whatever kind existing and appertaining to the work of the tariff committee, the regional councils and their sectional committees62 of 1968(3) where the general insurance council has established a provident or superannuation fund or any other fund for the benefit of the employees of its tariff committee or regional councils and constituted a trust in respect therefor (hereafter in this section referred to an existing trust), the monies standing to the credit of any fund at the commencement of the insurance (amendment) act, 1968, shall subject to the provisions of sub-section (4), stand transferred to, and vest in, on such commencement, the advisory committee(4) where any employee of the tariff committee, or the regional councils, of thegeneral insurance council does not become an employee of the adivsory committee, the monies and other assets appertaining to any fund referred to in sub-section (3)shall be apportioned between the trustees of the fund and the advisory committee inthe prescribed manner; and in case of any dispute regarding such apportionment, the decision of the central government thereon shall be final62 of 1968(5) the advisory committee shall, as soon as may be after the commencement ofthe insurance (amendment) act, 1968, constitute in respect of the monies and other assets which are transferred to, and vested in, it under sub-section (3), one or more trusts having, as far as practicable, objects similar to the objects of the existing trust62 of 1968(6) where all the monies and other assets belonging to an existing trust aretransferred to, and vested in, the advisory committee under sub-section (3), the trusteesof such trust shall, on the commencement of the insurance (amendment) act, 1968, be discharged from the trust except as respects things done or omitted to be done by them before such commencement62 of 1968contracts, etc, to be effective by or against the advisory committee64ug (1) unless otherwise expressly provided by or under this act, all contracts,agreements and other instruments of whatever nature subsisting or having effect immediately before the commencement of the insurance (amendment) act, 1968, and to which the tariff committee, or any regional council is a part or which is in favour of the committee or that council, shall be of as full force and effect against or in favour of the advisory commitee and may be enforced or acted upon as fully and effectually as if, instead of the tariff committee, or the regional council, the advisory committee had been a party thereto or as if they had been entered into or issued in favour of the advisory committee62 of 1968(2) if, at the commencement of the insurance (amendment) act, 1968, any suit, appeal or other legal proceeding of whatever nature is pending by or against the tariff committee, or any regional council then it shall not abate, be discontinued or in any way be prejudicially effected by reason of the transfer to the advisory committee of the assets and liabilities of the tariff committee, and the regional councils or of anything done under this act, but the suit, appeal or other proceeding may be continued prosecuted or enforced by or against the advisory committeeemployees, etc, to continue62 of 196864uh (1) every whole-time employee of the tariff committee, or the regional councils who was employed by that committee or those councils wholly or mainly in connection with its or their statutory duties immediately before the commencement of the insurance (amendment) act, 1968, shall, on and from such commencement, become an employee of the advisory committee and shall hold his office in it by the same tenure, at the same remuneration, and upon the same terms and conditions and with the same rates and privileges as to pension, gratuity and other matters as he would have held on such commencement if this part and not been enacted, and shall continue to do so until his employment under the advisory committee is terminated or until the remuneration, terms and conditions, are duly altered by the advisory committee:62 of 1968provided that nothing contained in this sub-section shall apply to any employee who has given notice to the central government in writing either prior to or within two months from the commencement of the insurance (amendment) act, 1968, intimating his intention of not becoming an emplyee of the advisory committee14 of 1947(2) where the central government is satisfied that for purpose of securing uniformity in the scales of pay, remuneration and other terms and conditions of service applicable to employees of the tariff committee, or the regional councils, it is necessary so to do, or that a reduction in the remuneration payable or revision on the other terms and conditions of service applicable to employees or any class of them is called for, the central government may, notwithstanding anything contained in sub-section (1), or in the industrial disputes act, 1947, or in any other law for the time being in force in any award, settlement, or agreement for the time being in force, alter (whether by way of reduction or otherwise) the remuneration and other terms and conditions of service to such extent and in such manner as it thinks fit; and if the alteration is not acceptable to any employee, the advisory committee may terminate his employment by giving him compensation equivalent to three month' remuneration, unless the contract of service with such employees provides for a shorter notice of terminationexplanation—the compensation payable to an employee under this sub-section shall be in addition to, and shall not affect any pension, gratuity, provident fund money or any other benefit to which the employee may be entitled under his contract of service62 of 1968(3) if any question arises as to whether any person was a whole-time employee of the tariff committee, or the regional council, on the commencement of the insurance (amendment) act, 1968, or as to whether any employee was employed wholly or mainly in connection with the statutory duties of the tariff committee, or any regional council, immediately before such commencement, the question shall be referred to the central government whose decision thereon shall be final14 of 1947(4) notwithstanding anything contained in the industrial disputes act, 1947, or in any other law for the time being in force, the transfer of the services of any employees of the tariff committee, or the regional councils, to the advisory committee, shall not entitle any such employee to any compensation under that act or other law, and no such claim shall be enterained by any court, tribunal or other authority64ui (1) where any property of the tariff committee, or the regional councils(appertaining to its or their statutory duties) has been transferred to, and vested in, the advisory committee, then,—(a) every person in whose possession, custody or control any such property may be, shall deliver the property to the advisory committee forthwith;duty of person having custody or control of property deliver such property to the advisory committees62 of 1968(b) any person, who, on the commencement of the insurance (amendment)act, 1968, has in his possession, custody or control any books, documents and other papers relating to the tariff committee, or the regional councils, shall be liable to account for the said books, documents and papers to the advisory committee and shall deliver them to the advisory committee or to such person as the committee may direct (2) without prejudice to the provisions contained in this section, it shall be lawful for the advisory committee to take all necessary steps for securing possession of all properties which have been transferred to, and vested in, it under this act64uj (1) the advisory committee may constitute such regional committees as and when it deems fit for one or more of the prescribed regionspower of advisory committee to constituteregionalcommittees(2) each regional committee shall consist of not more than seven person of which not more than five shall be elected by such groups of insurers carrying on general insurance business in the region as may be prescribed and not more than two shall be nominated by the authority(3) for the purpose of enabling it effectively to discharge its duties, any regional committee may constitute such sub-committee as it may think fit, whether consisting of members of the regional committee or not(4) it shall be the duty of every regional committee to advise the advisory committee on any question connected with the fixation of rates advantages, terms and conditions for risks in its region which may be referred to it by the advisory committee of advice, and in addition, every regional committee shall perform such other functions as may be delegated to it by the advisory committee by regulations made by it with the previous approval of the central government(5) where, in the exercise of any functions delegated to it under this section, any regional committee or any sub-committee thereof restrains an insurance agent from procuring or causing to be procured general insurance business in any area, such agent may prefer an appeal to the authority against such order within thirty days from the date of service of that order on him and the authority may, after giving such agent an opportunity of being heard, pass such orders thereon as it may think fit and the orders made by the authority on such appeal shall be final62 of 1968(6) notwithstanding anything contained in this section, every regional council and every sectional or other committee of such regional council, in existence immediately before the commencement of the insurance (amendment) act, 1968, shall, until it is abolished by the advisory committee, be deemed to be a regional committee or sub-committee as the case may be, established in accordance with the provisions of this section and shall function as such and shall have all the powers and responsibilities which it had immediately before such commencement, and if the term of any such council or committee expires before regional committees constituted under sub-section (1) and sub-committees constituted under sub-section (3) come into existence, such terms shall be deemed to have been validly extended up to the time when such regional committees and sub-committees are establishedlevy of fees by advisory committee64uk (1) every insurer shall annually before the prescribed date make payment to the advisory committee in the prescribed manner of such fees, not exceeding for any year, in the case of an insurer doing only re-insurance business in inda, one per cent of his total premiums in respect of facultative re-insurance accepted by him in india in the preceding year and in the case of any other insurer, one per cent of the total gross premium written direct by him in india in the preceding year, as may be specified by the advisory committee for the purpose of this part(2) the advisory committee may collect, in addition to the fees mentioned in sub-section (1), reasonable fees and charges from any person to cover the cost of any specific services rendered by it(3) if an insurer fails to make payment within the prescribed date of any fee required to be paid under sub-section (1) he shall be deemed to have failed to comply with the provisions of this act(4) the authority may, so long as an application to the court under sub-section(5d) of section 3 has not been made, revive the registration which might have been cancelled for failure to make payment of the fee required to be made under subsection (1), if the insurer makes payment of such fee together with such penalty not exceeding the actual amount of fee payable as the authority may requirepower to remove difficulties64ul if any difficulty arises in giving effect to the provisions of this part, thecentral government may, by order, make such provisions or give such directions not inconsistent with the provisions of this act as may appear to it to be necessary or expedient for the removal of the difficulty:provided that no such power shall be exercised after the expiry of a period of vour years from the commencement of this partlicensing of surveyors and loss assessors62 of 196864um (1) (a) save as otherwise provided in this section, no person shall act asa surveyor or loss assessor in respect of general insurance business after the expiry of a period of one year from the commencement of the insurance (amendment) act, 1968, unless he holds a valid licence issued to him by the authority62 of 1968 41 of 1999(b) every person who intends to act as a surveyor, or loss assessor after the expiry of a period of one year from the commencement of the insurance (amendment) act, 1968 but before the commencement of the insurance regulatory and development authority act, 1999 shall make an application to the authority within such time, in such form, in such manner and on payment of such fee, not exceeding rupees two hundred and fifty, as may be prescribed41 of 1999(ba) every person who intends to act as a surveyor or loss assessor after the expiry of a period of one year from the commencement of the insurance regulatory and development authority act, 1999, shall make an application to the authority within such time, in such manner and on payment of such fee as may be determined by the regulations made by the authority:41 of 1999provided that any licence issued immediately before the commencement of the insurance regulatory and development authority act, 1999, shall be deemed to have been issued in accordance with the regulations providing for such licence(c) every licence issued under this section shall remain in force, unless cancelled earlier, for a period a five years from the date of issue thereof, and may be renewed for a period of five years at a time, on payment of such fee, not exceeding rupees two hundred, as may be determined by the regulations(d) no licence to act as a surveyor or loss assessor shall be issued unless—(i) the applicant, where he is an individual, satisfies the authority that he—41 of 1999(a) has been in practice as a surveyor or loss assessor on the date of commencement of the insurance regulatory and development authority act, 1999, or(b) holds a degree of a recognised university in any branch of engineering, or(c) is a fellow or associate member of the institute of chartered accountants of india or the institute of cost and works accountants of india, or(d) possesses actaurial qualifications or holds a degree or diploma of any recognised university or institute in relation to insurance, or(e) holds a diploma in insurance granted or recognised by the government, or(f) possesses such other technical qualifications as may be specified by the regulations made by the authority, and(g) does not suffer from any of the disqualifications mentioned in sub-section (4) of section 42;(ii) the applicant, where he is a company or firm, satisfies the authority that all his directors or partners, as the case may be, possess one or more of the qualifications specified in clause (i) and none of such directors or partners suffer from any of the disqualifications mentioned in sub-section (4) of section 42;(e) every application for the renewal of the licence shall be made at least thirty days before the expiry of the period of validity thereof(f) the authority may, if he is satisfied that any licence issued or renewed under this section has been lost or destroyed, issue a duplicate licence on payment of a fee of rupees five and the duplicate licence so issued shall remain in force for the remainder of the period of validity of the licence in lieu of which it is issued(g) without prejudice to the powers conferred by sub-section (7), the authority, if satisfied that the holder of any licence has made a statement which is false in material particulars with regard to his eligibility for obtaining such licence or has, after the issue or renewal of such licence, acquired any of the disqualifications mentioned in subsection (4) of section 42, may, after giving a reasonable opportunity to the holder of such licence of being heard, by order cancel such licence and notify such cancellation in the official gazette(1a) every surveyor and loss assessor shall comply with the code of conduct in respect of their duties, responsibilities and other professional requirements as may be specified by the regulations made by the authority62 of 1968(2) no claim in respect of a loss which has occurred in india and requiring to be paid or settled in india equal to or exceeding twenty thousand rupees in value on any policy of insurance, arising or intimated to an insurer at any time after the expiry of a period of one year from the commencement of the insurance (amendment) act, 1968, shall, unless otherwise directed by the authority, be admitted for payment or settled by the insurer unless he has obtained a report, on the loss that has occurred, from a person who holds a licence issued under this section to act as a surveyor or loss assessor (hereafter referred to as "approved surveyor or loss assessor"):provided that nothing in this sub-section shall be deemed to take away or abridge the right of the insurer to pay or settle any claim at any amount different from the amount assessed by the approved surveyor or loss asessor(3) the authority may, at any time, in respect of any claim of the nature referred to in sub-section (2), call for an independent report from any other approved surveyor or loss assessor specified by him and such surveyor or loss assessor shall furnish such report to the authority within such time as may be specified by the authority or if no time limit has been specified by it within a reasonable time and the cost of, incidental to such report shall be borne by the insurzer(4) the authority may, on receipt of a report referred to in sub-section (3), issue such directions as it may consider necessary with regard to the settlement of the claim including any direction to settle a claim at a figure less than, or more than, that at which it is proposed to settle it or it was settled and the insurer shall be bound to comply with such directions:provided that where the authority issues a direction for settling a claim at a figure lower than that at which it has already been settled, the insurer shall be deemed to comply with such directions, if he satisfies the authority that all reasonable steps, with due regard to the question whether the expenditure involved is not disproportionate to the amount required to be recovered, have been taken with due despatch by him:62 of 1968provided further that no direction for the payment of a lesser sum shall be made where the amount of the claim has already been paid and the authority is of opinion that the recovery of the amount paid in excess would cause undue hardship to the insured:provided also that nothing in this section shall relieve the insurer from any liability, civil or criminal, to which he would have been subject but for the provisions of this sub-section(5) no insurer shall, after the expiry of a period of one year from the commencement of the insurance (amendment) act, 1968, pay to any person any fee or remuneration for surveying, verifying or reporting on a claim of loss under a policy of insurance unless the person making such survey, verification or report is an approved surveyor or loss assessor(6) where, in the case of a claim of less than twenty thousand reupees in value on any policy of insurance it is not practicable for an insurer to employ an approvedsurveyor or loss assessor without incurring expenses disproportionate to the amount of the claim, the insurer may employ any other person (not being a person disqualified for the time being for being employed as a surveyor or loss assessor) for surveying such loss and may pay such reasonable fee or remuneration to the person so employed as he may think fit(7) if the authority is satisfied that an approved survey or loss assessor has been guilty of wilfully making a false statement knowing it to be false or of being knowingly a partly to the settlment of a claim in a fraudulent manner, he may, after giving such surveyor or loss assessor an opportunity of being heard, cancel the licence issued to him with effect from such date as may be specified by him and shall notify such cancellation in the official gazette(8) any surveyor or loss assessor whose licence has been cancelled shall not be eligible for having a licence to act as a surveyor or loss assessor for a period of three years from the date on which the cancellation is notified in the official gazette(9) the authority may, in respect of any claim of value of less than twenty thousand rupees on an insurance policy, if the claim has not been or is not proposed to be reported upon by a surveyor or loss assessor, direct that such claim shall be reported upon by an approved surveyor, or loss assessor and where the authority makes such direction, the provisions of sub-sections (3) and (4) shall apply in respect of such claim(10) where, in relation to any class of claims, the authority is satisfied that it is customary to entrust the work of survey or loss assessment to any person other than a licensed surveyor or loss assessor, or it is not practicable to make any survey or loss assessment, it may, by an order published in the official gazette, exempt such class of claims from the operation of this sectionpart iicsolvency margin, advance payment of premium and restrictions on the openingassets and liabilities how to be valuedof a new place of business64v (1) for the purpose of ascertaining complaince with the provisions of section64va,—(i) assets shall be valued at values not exceeding their market or realisable value and the assets hereafter mentioned shall be excluded to the extent indicated, namely:—(a) agents' balances and outstanding premiums in india, to the extent they are not realised within a period of thirty days; (b) agents' balances and outstanding permium outside india, to the extent they are not realisable;(c) sundry debts, to the extent they are not realisable;(d) advances of an unrealisable character;(e) furniture, fixtures, dead stock and stationery; (f) deferred expenses; (g) profit and loss appropriation account balance and any fictitious assets other than pre-paid expenses;(h) such other asset or assets as may be specified by the regulations made in this behalf; (ii) a proper value shall be placed on every item of liability and liabilities in respect of share capital, general reserve and other reserves of similar nature not created to meet specific liabilities and investment reserve, reserve for bad and doubtful debts, and depreciation fund shall be excluded and liabilities thereafter mentioned shall be included to the extent indicated, namely:—(a) provision for dividends declared or recommended, and outstanding dividends in full;(b) reserves for unexpired risks in respect of—(i) fire and miscellaneous business, 50 per cent (ii) marine cargo business, 50 per cent and (iii) marine full business, 100 per cent, of the premium, net of re-insurances, during the preceding twelve months;(c) estimated liability in respect of outstanding claims, in full;(d) amount due to insurance companies carrying on insurance business, in full;(e) amounts due to sundry creditors, in full;(f) provision for taxation, in full; (g) such other liability which may be made in this behalf to be included for the purpose of clause (ii)explanation—in case of an insurer whose principal place of business or domicile is outside india, where, in the accounts filed with the public authority of the country in which the insurer is constituted, incorporated or domiciled, in respect of marine insurance business, the provisions for unexpired risks and outstanding claims are not shown separately, the liabilities under items (b) and (c) of clause (ii) in respect of marine insurance business shall be taken together at a figure of not less than the total permium less re-insurance in respect of that class of business during the preceding twelve months(2) every insurer shall furnish to the authority with his returns under section 15or section 16; as the case may be, a statement certified by an auditor approved by the authority in respect of general insurance business, or an actuary approved by the authority in respect of life insurance business, as the case may be, of his assets and liabilities assessed in the manner required by this section as on the 31st day of march of the preceding year(3) every insurer shall value his assets and liabilities in the manner required by this section and in accordance with the regulations which may be made by the authority in this behalfsufficiency of assets41 of 199964va (i) an insurer shall, at all times before the commencement of the insurance regulatory and development authority act, 1999, maintain an excess of the value of his assets over the amount of his liabilities of not less than the amount arrived at as follows (hereafter in this section referred to as the "relevant amount"), namely:—(i) in the case of an insurer whose total premium income less re-insurances in respect of general insurance business (hereafter in this sub-section referred2 of 1912 2 of 1912 62 of 1968 41 of 1999to as the "said income") in the preceding twelve months did not exceed five crores of rupees, one-fifth of the said income subject to a minimum of—(a) five lakhs of rupees in the case of an insurer who is a co-operative society registered under the co-operative societies act, 1912, or any other law for the time being in force in any state relating to co-operative societies, or(b) ten lakhs of rupees in the case of any other insruer; and(ii) in the case of an insurer whose said income in the preceding twelve months exceeded five crores of rupees, the aggregate of one-fifth of the first five crores of rupees of the said income and one-tenth of the amount by which the said income in the preceding twelve months exceeded five crores of rupees: provided that where a number of insurers occupying the status of parent and subsidiary companies prepare, under the laws of the country of origin of the parent company, a consolidated balance sheet, the provisions of this sub-section shall apply to such of them as are not members of any group as if they constituted a single insurer, subject to the further condition that the relevant amount shall, in no case, be less than a sum equal to—(i) the number of such insurers multiplied by ten lakhs of rupees, or (ii) where all the insurers are co-operative societies registered under the cooperative societies act, 1912, or any other law for the time being in force in any state relating to co-operative societies, the number of such insurers multiplied by five lakhs of rupees: provided further that if in respect of any insurer the central government is satisfied that either by reason of an unfavourable claim experience or because of a sharp increase in the volume of new business, or for any other reason, compliance with the provisions of this sub-section would cause undue hardship to the insurer, it may direct that for such period and subject to such conditions as it may specify, the provisions of this sub-section shall apply to that insurer with the modification that instead of the proportion of one-fifth, wherever mentioned in this sub-section, such other proportion being not less than one-tenth as may be specified by that government shall be applicable to that insurer:provided also that in the case of an insurer carrying on insurance business at the commencement of the insurance (amendment) act, 1968, it shall be sufficient compliance with the provisions of this sub-section until the 31st december, 1972 or until such subsequent date, not being later than 31st december, 1976 as the central government may, at its discretion, allow for any particular insurer, if the progressively brings up the excess of the value of his assets over the amount of his liabilities, in such manner as may be prescribed, to the relevant amount(1a) every insurer shall, at all times, on or after the commencement of the insurance regulatory and development authority act, 1999, maintain an excess of the value of his assets over the amount of his liabilities of not less than the amount arrived at as follows (hereinafter to in this section as the "required solvency margin" namely:—(i) in the case of an insurer carrying on life insurance business, the required solvency margin shall be the higher of the following amounts—(a) fifty crores of rupees (one hundred crores of rupees in case of reinsurers); or(b) the aggregate sums of the results arrived at in items (i) and (ii) stated below:—(i) the aggregate of the results arrived at by applying the calculation described in item (a) below (step i) and the calculation described in item (b) below (step ii):(a) for step 1—(a1) there shall be taken, a sum equal to a percentage determined by the regulations not exceeding five per cent of the mathematical reserves for direct business and re-insurance acceptances without any deduction for re-insurance cessions;(a2) the amount of mathematical reserves at the end of the preceding financial year after the deduction of re-insurance cessions shall be expressed as a percentage of the amount of those mathematical reserves before any such deduction; and(a3) the sum mentioned in item (a1) above shall be multiplied—(a31) where the percentage arrived at under item (a2) above is greater than eighty-five per cent (or in the case of a re-insurer carrying on exclusive re-insurance business, fifty per cent) by that greater percentage; and(a32) in any other case, by eighty-five per cent (or in the case of a re-insurer carrying on exclusive re-insurance business, by fifity per cent);(b) for step ii·—(b1) there shall be taken, a sum equal to a percentage determined by the regulations made by the authority not exceeding one per cent of the sum at risk for the policies on which the sum at risk is not a negative figure, and(b 2) the amount of sum at risk at the end of the preceding financial year for policies on which the sum at risk is not a negative figure after the deduction of re-insurance cession shall be expressed as a percentage of the amount of that sum at risk before any such deduction, and(b 3) the sum arrived at under item (b1) above shall be multiplied—(b31) where the percentage arrived at under item (b2) above is greater than fifty per cent by that greater percentage; and(b32) in any other case by fifty per cent(ii) a percentage determined by the regulations made by the authority of the value of assets determined in accordance with the provisions of section 64v;(ii) in the case of an insurer carrying on general insurance business, the required solvency margin, shall be the highest of the following amounts:—(a) fifty crores of rupees (one hundred crores of rupees in case of reinsurer); or(b) a sum equivalent to twenty per cent of net premium income; or (c) a sum equivalent to thirty per cent of net incurred claimssubject to credit for re-insurance in computing net premiums and net incurred claims being actual but a percentage, determined by the regulations not exceding fifty per cent: provided that if in respect of any insurer, the authority is satisfied that either by reason of an unfavourable claim experience or because of sharp increase in the volume of the business, or for any other reason, compliance with the provisions of this sub-section would cause undue hardship to the insurer, the authority may direct, for such period and subject to such conditions, such solvency margin not being less than the lower of the amount mentioned in sub-clause (i) or sub-clause (ii) above, as the case may beexplanation— for the purpose of this sub-section, the expressions—(i) "mathematical reserves" means the provision made by a insurer to cover liabilities (excluding liabilities which have fallen due and liabilities arising from deposit back arrangement in relation to any policy whereby an amount is deposited by re-insurer with the cedant) arising under or in connection with policies or contracts for life insurance business, mathematical reserves also include specific provision for adverse deviations of the bases, such as mortality and morbidity rates interest valuation for this purpose;(ii) "net incurred claims" means the average of the net incurred claims during the specified period of not exceedding three preceding financial years;(iii) "sum at risk", in relation to a life insurance policy, means a sum which is—(a) in any case in which an amount is payable in consequence of death other than a case falling within sub-clause (b) below, the amount payable on death, and(b) in any case in which the benefit under the policy in question consists of the making, in consequence of death, of the payments of annuity, payment of a sum by instalments or any other kind of periodic payments, the present value of that benefit, less in either case the mathematical reserves in respect of the relevant policies (2) an insurer who does not comply with the provisions of sub-section (1) shall be deemed to be inslovent and may be wound up by the court(2a) if, at any time an insurer does not maintain the required solvency margin in accordance with the provisions of this section, he shall, in accordance with the directions issued by the authority, submit a financial plan, indicating a plan of action to correct the deficiency to the authority within a specified period not exceeding three months(2b) an insurer who has submitted a plan under sub-section (2a) to the authority shall propose modifications to the plan if the authority considers it inadequate, and shall give effect to any plan accepted by the authority as adequate(2c) an insurer who does not comply with the provisions of sub-section (2a)shall be deemed to be insolvent and may be wound up by the court(3) the authority shall be entitled at any time to take such steps as he may consider necessary for the inspection or verification of the assets and liabilities of any insurer or for securing the particulars necessary to establish that the requirements of this section have been complied with as on any date and the insurer shall comply with any requisition made in this behalf by the authority, and if he fails to do so within two months from the receipts of the requisition, he shall be deemed to have made default in complying with the requirements of this section(4) the provisions of this section shall not apply to an insurer, specified in subclause (c) of clause (9) of section 2(5) in applying the provisions of sub-section (1) to any insurer, who is a member of a group, the relevant amount for that insurer shall be an amount equal to that proportion of the relevant amount which that group, if considered as a single insurer, would have been required to maintain as the proportion of his share of the risk on each policy issued by the group bears to the total risk on that policy:provided that when a group of insurers ceases to be a group, every insurer in that group who continues to carry on any class of insurance business in india, shall comply with the requirements of sub-section (1) as if he had not been an insurer in a group at any time:provided further that it shall be sufficient compliance with the provisions of the foregoing proviso if the insurer brings up the excess of the value of his assets over the amount of his liabilities to the required amount within a period of six months from the date of cessation of the group:provided also that the central government may, on sufficient cause being shown, extend the said period of six months by such further periods as it may think fit, so however that the total period may not in any case exceed one year(6) the central government may, by notification in the official gazette, reduce the sum of ten lakhs of rupees or five lakhs of rupees, as the case may be, referred to in sub-section (1) to a lower figure not less than one hundred thousand rupees in respect of a country craft insurer or in respect of an insurer not having a share capital and carrying on only such insurance business as, in the opinion of the central government, is not carried on ordinarily by insurers under separate policies(7) every insurer shall furnish to the authority his returns under section 15 or section 16, as the case may be, in case of life insurance business a statement certified by an actuary approved by the authority, and in case of general insurance business a statement certified by an auditor approved by the authority, of the required solvency margin maintained by the insurer in the manner required by sub-section (1a)62 of 1968restrictions on opening of a new place of business64vc (1) no insurer shall, after the commencement of the insurance (amendment)act, 1968, open a new place of business in india or change otherwise than within the same city, town or village, the location of an existing place of business situated in india without obtaining the prior permission of the authority(2) the authority may grant permission under sub-section (1) subject to such conditions as it may think fit to imose either generally or with reference to any particular case(3) where, in the opinion of the authority, an insurer has, at any time failed to comply with any of the conditions imposed on him under this section, the authority may, by order in writing and after affording reasonable opportunity to the insurer for showing cause against the action proposed to be taken against him, revoke any permission granted under this sectionexplanation—for the purposes of this section, "place of business" includes a branch, a sub-branch, inspectorate, organisation office and any other office, by whatever name called| | | | | ||------|------|------|------|-----| part iii provident societiesdefinition of "provident society"65 (1) in this part "provident society" means, a person who, or a body of persons(whether corporate or unincorporate) which, not being an insurer registered for the time being under part ii of this act, carries on the business of insuring the payment, on the happening of any of the contingencies mentioned in sub-section (2), of—(a) an annuity of or equivalent to one hundred rupees or less payable for an uncertain period, or(b) a gross sum of one thousand rupees or less, whether paid or payable in a lump sum or in two or more instalments over a certain period, exclusively in both cases (a) and (b) of any profit or bonus not being a guaranteed profit or bonusexplanation—for the purposes of this sub-section, a period is "certain" if its duration is ascertainable in advance and "uncertain" if its duration is not so ascertainable(2) the contingencies referred to in sub-section (1) are the following, namely:—(a) the birth, marriage or death of any person or the survival by a person of a stated or implied age or contingency;(b) failure of issue; (c) the occurrence of a social, religious or other ceremonial occasion;(d) loss of or retirement from employment; (e) disablement in consequence of sickness or accident;(f) the necessity of providing for the education of a dependent; (g) any other contingency which may be prescribed or which may be authorised by the state government with the approval of the central government (3) for the purposes of sub-sections (1) and (2)—(a) contracts entered into before the commencement of this act shall not be taken into account;(b) two or more policies issued to one person shall, for the purposes of determining whether the limits fixed by sub-section (1) have or have not been exceeded, be deemed to be one policy if the contingencies on the happening of which the sums are payable under the policies (whether the contingencies be the same of different) relate to one person only, whether he be the policyholder or some other person5 of 1912(4) every person or body of persons for the time being registered as a provident society under the provident insurance societies act, 1912, and every person or body of persons for the time being registered as a provident society under this act shall be deemed to be a provident society for all the purposes of this act(5) if the question arises whether any person or body of persons is or is not a provident society within the meaning of this section authority shall decide the question and its decision shall be final47 of 195065a no person shall, after the commencement of the insurance (amendment) act,1950, begin to carry on in india any business specified in sub-section (1) of section 65, and no provident society carrying on any such business in india shall, after the expiry of one year from such commencement, continue to carry on any such business, unless he or it is—(a) a public company, or2 of 1912(b) a society registered under the co-operative societies act, 1912 or under any other law for the time being in force in any state relating to co-operative societies, orprohibition of transaction fo insurance business by provident societies other than public companies or co-operative societies(c) a body corporate incorporated under the law of any country outside indianot being of the nature of a private companyrestrictions on provident societies66 no provident society shall undertake any form of insurance not falling within thelimits fixed by sub-section (1) of section 65, nor shall any provident society be eligible to beregistered under section 3name67 no provident society established after the commencement of this act shall adoptas its name, and no provident society established before the commencement of this act shall continue after the expiry of six months from the commencement thereof to use as its name, any combination of words which fails to include the word "provident" or which includes the word "life"47 of 195068 [rep by the insurance (amendment) act, 1950, sec 48 (wef 1-61950)]dividing business69 (1) no provident society shall carry on any business upon the dividing principle,that is to say, on the principle that the benefit secured by a policy is not fixed but depends either wholly or partly on the results of a distribution of certain sums amongst policiesbecoming claims within certain time-limits, or on the principle that the premiums payable by a policyholder depend wholly or partly on the number of policies becoming claims within certain time-limits(2) the authority shall, as soon as possible, take steps to have any provident society which carries on business on dividing principle wound-up:provided that, where any such provident society in existence at the commencement of this act applies within three months of such commencement to the authority for permission to continue carrying on its business with a view meanwhile to reorganise its business in accordance with the provisions of this act, the authority may at its discretion, with due regard to the past history of the society, permit the society to continue business for a period not exceeding two years from the date of receipt of such permission, so however that no new business on the dividing principle is undertaken by the society13 of 1941(3) where after the commencement of the insurance (amendment) act, 1941, a providentsociety is to be wound-up in pursuance of this section, or where, whether before or after the commencement of that act, a provident society ceases to carry on business on the dividing principle, the provisions of sub-section (2) and sub-section (3) of section 52 shall, so far asmay be, apply in like manner as they apply to an insurer ceasing to carry on business on the dividing principleregistration5 of 1912 41 of 199970 (1) no provident society except a provident society registered under the provisions of the provident insurance societies act, 1912, shall receive any premium or contribution until it has obtained from the authority, before the date of commencement of the insurance regulatory and development authority act, 1999, a certificate of registration(2) every application for registration shall be accompanied by—7 of 19136 of 1882 10 of 1866(a) a certified copy of the rules of the society, and when the society is a company incorporated under the indian companies act, 1913 or under the indian companies act, 1882 or under the indian companies act, 1866 or under any act repealed thereby, a certified copy of the memorandum and articles of association or where the society is not such a company a certified copy of the deed of constitution of the society;(b) the names and addresses of the proprietors or directors, and the managers of the society, the full address of the registered office of the society, the full address of the principle office of the society in india, the name of the manager at such office, and the name and address of some one or more persons resident in india authorised to accept any notice required to be served on the society;(c) a certificate from the reserve bank of india that the initial deposit referred to in section 73 has been made;(d) a declaration verified by an affidavit made by the principal officer of the society authorised in that behalf that the minimum working capital required by section 72, is available; and(e) the receipt showing payment in the prescribed manner of the prescribed fee for registration being not more than two hundred rupees (3) the authority may refuse to issue a certificate of registration until he is satisfied that the rules of the society comply with the provisions of this act and that the society complies with the provisions of sections 65a, 67 , 71, 72, 73, and 73a but if he is so satisfied he shall register the society and its rules5 of 1912(4) the authority may, after giving previous notice in writing in such manner as he thinks fit specifying the grounds for the proposed cancellation, and allowing the society concerned an apportunity of being heard, apply to the court and obtain sanction for cancellation of the registration made under this section or made under the provisions of the provident insurance societies act, 1912—(a) if it is satisfied from the returns furnished under the provisions of this act or as the result of an inquiry made under section 87—(i) that the society is insolvent or is likely to become so, or (ii) that the business of the society is conducted fraudulently or not in accordance with the rules thereof, or what it is in the interests of the policy holders that the society should cease to carry on business, or (c) if the society, having failed to comply with any requirement or having contravened any provision of this act, has continued such failure or contravention for a period of one month after notice of such failure or contravention has been conveyed to the society by the authority: provided that the authority may, if it thinks, fit, instead of applying for cancellation of the registration under sub-clause (i) of clause (a) of this sub-section make a recommendation to the court that the contracts of the society should be reduced in such manner and subject to such conditions as he may indicate:provided further that the authority may, without previous notice and without application to the court for sanction,—(a) cancel the registration of a provident society which has failed to have its registration renewed, or(aa) cancel the registration of a provident society if any deposit required by section 73, has not been made, or(b) cancel, on such terms and conditions as it think fit, the registration of any provident society which applies to it for such cancellation if it is satisfied that the society has ceased to carry on insurance business and that all its liabilities in respect of insurance policies are either satisfied or otherwise provided for, or(c) cancel the registration of a provident society if he has reason to believe that any claim upon the society arising in india under any policy of insurance remains unpaid for three months after final judgment in regular course of law (5) when a registration is cancelled the provident society shall not, after the cancellation has taken effect, enter into any new contracts of insurance, but all rights and liabilities in respect of contracts of insurance entered into by it before such cancellation takes effect shall, subject to the provisions of section 88, continues as if the cancellation had not takes place(6) where a registration is cancelled under clause (b) of sub-section (4), or clause (c)of the second proviso to that sub-section, or because the society has failed to have its registration renewed, the authority may at its discretion revive the registration of the provident society, within six months from the date on which the cancellation took effect, makes the deposits required by section 73 or satisfies the authority that no claim upon it such as is referred to in the said clause (c) remains unpaid or has had an application under sub-section(3) of section 70a accepted, as the case may be, and complies with any directions which may be given to it by the authority(7) the authority may, on payment of the prescribed fee which shall not exceed five rupees, issue a duplicate certificate of registration to replace a certificate lost, destroyed or mutilated, or in any other case where it is of opinion that the issue of a duplicate certificate is necessaryrenewal of registration5 of 191270a (1) every provident society registered under this act, or under the provident insurance societies act, 1912, shall have its registration renewed annually for each period of twelve months after that ending on the 30th day of june, 1942(2) an application for the renewal of a registration shall be made by the society to the authority before the 30th day of june preceding the period for which renewal is sought, and shall be accompained as provided in sub-section (3) by evidence of payment of the prescribed fee which shall not exceed two hundred rupees but may vary according to the volume of insurance business done by the society(3) the prescribed fee for the renewal of a registration for any year shall be paid into the reserve bank of india, or where there is no office of that bank, into the imperial bank of india acting as the agent of that bank, or into any government treasury, and the receipt, shall be sent along with the application for renewal of the registration(4) if a provident society fails to apply for renewal of registration before the date specified in sub-section (2) the authority may, so long as it has taken no action under section 88 to have the society would-up, accept an application for renewal of registration on receipt from the society of the fee payable with the applications and such penalty, not exceeding the prescribed fee payable by the society, as he may require(5) the authority shall, on being satisfied that the society has fulfilled the requirements of this section, renew the registration and grant it a certificate of renewal of registration13 of 194170b (1) every provident society registered under section 70 before the commencementof the insurance (amendment) act, 1941 shall, before the expiration of three months from the commencement of the insurance (amendment) act, 1941 furnished to the authority such particulars in addition to those already supplied for the purpose of obtaining registration as are required by sub-section (2) of section 70 of this act as amended by the insurance (amendment) act, 1941supplementary information and reports of alterations in particulars furnished with application for registration5 of 1912 13 of 1941(2) every provident society registered under the provisions of the provident insurancesocieties act, 1912, shall, before the expiration of three months from the commencement of the insurance (amendment) act, 1941 furnished to the authority so far as it has not already done so the documents and information required by clauses (a) and (b) of sub-section (2) ofsection 70 to accompany an application by a provident society for registration under the section(3) when any alteration occurs or is made which affects any of the matters which are required under the provisions of sub-section (2) of section 70 to accompany an application by a provident society for registration under that section, or are to be furnished to the authority under this section, the provident society shall furnish forthwith to the authority full particulars duly authenticated of such alternationcertain provisions of part ii to apply to provident societies71 the provisions of sub-sections (2) and (3) of section 10, section 20, sub-section(1) of section 27, sections 27a, 28, 29, 31a, 31 b, 32, 46 and 53 shall apply to provident societies as they apply to insurers, and in such application references to shareholders of an insurer shall be constructed as references to members of a provident society and references to section 7 or section 98 shall be constructed as refernces to section 73:provided that a provident society may charge a fee not exceeding one rupee for supplying a copy of any document referred to in sub-section (2) of section 20working capital72 no provident socity shall be registered unless it has a paid-up capital sufficient to provide as working capital a net sum of not less than five thousand rupees exclusive of deposits made under this act and exclusive in the case of a company of any expenses incurred in connection with the formation of the companydeposits73 (1) every provident society shall, if established before the commencment of this act within one year from such commencement, or, if established a after the commencement of this act before the society applies for registration under section 70, deposit and keep deposited with the reserve bank of india in one of the offices in india of the bank, for and on behalf of the central government, cash or approved securities acounting at the market value of the securities of the date of deposit to five thsouand rupees, and shall thereafter make in each calendar year a further deposit amounting to not less than one-fifth of the premium income for the preceding calendar year as shown in the revenue account of the society(including admission fees and other fees received by the society) untill the total amount so deposited and kept in fifty thousand rupees(2) the provisions of sub-sections 8, 9, 9a, 9b and 10 of section 7 and of sub-section(1) of section 8 and of section 9 shall apply to the deposits made under this section as they apply to deposits made by an insurerrestriction on name of provident society73a (1) a provident society shall not be registered by a name identical with that by which an insurer or another provident society in existence is already registered, or so nearly resembling that name as to be calculated to deceive, except when the provident society in existence is in the course of being dissolved and signifies its consent, or the insurer in existence signifies his consent, to authority(2) if a provident society, through inadvertence or otherwise, is without such consent as aforesaid registered by a name identical with that they by which an insurer or another provident society already in existence is registered, or so nearly resembling it as to be calculated to deceive, the first-mentioned society shall, if called upon to do so by the authority on the application of the insurer or the second-mentioned society, change its name within a time to be fixed by the authority:provided that nothing in this section shall apply to any provident society carrying on business before the commencment of the insurance (amendment) act, 19466 of 1946rules74 (1) every provident society shall in its rules set forth—(a) the name, the object and the location of the registered office of the society; (b) the contingencies or classes of contingency on the happening of which money is to be paid;(c) the conditions to be complied with before, and the payments to be made on, admission to society;(d) the rates of premium of contribution, and the periods for which or the times at which premiums or contributions are payable;(e) the maximum amount payable to a subscribe or policyholder; (f) the nature and amounts of the benefits provided for by the society; (g) the circumstances in which a bonus may be paid to a policyholder;(h) the nature of the evidence required for the proof of the happening of any contingency on which money is to be paid;(i) the circumstances in which policies may be forfeited or renewed or the whole or a part of the premiums paid on a policy may be returned, or surrender value of a policy may be granted;(j) the penalities for delay in paying or failure to pay premiums or contributions; (k) the proportion of the annual income of society which may be disbursed onand the provisions to be made for meeting the expenses of the management of the society;(l) the person or persons who or the authority which shall have power to investthe funds of the society;(m) the provisons for appointment of auditors and their remunerations; (n) the procedure to be adopted in altering the rules of the society;(o) unless these are provided for in the articles of association of a society which is a company incorporated under the indian companies act, 1913 or under the7 of 19136 of 1882 10 of 1866indian companies act, 1882, or under the indian companies act, 1866, or under any act repealed thereby,—(i) the mode of appointment and removal, the qualification and the powersof a director, manager, secretary or other officer of the society;(ii) the manner of raising additional capital; and (iii) the provisions for the holding of general meetings of the members andpolicy-holders and for the powers to be exercised and procedure to be followed thereat; and (p) such other matters as may be prescribed5 of 1912(2) where the rules of any provident society registered under the provident insurancesocieties act, 1912 fail to comply with the expiry of twelve months from the commencement of this act amend the rules so as to comply with these provisionsamendment of rules75 (1) no amendment of any rule of a provident society shall be valid until it has beensent to the authority and has been registered by it(2) the authority on being satisfied that the proposed amendment is not contrary to the provisions of this act shall, unless it is of opinion that the amendment unfairly affects the rights of existing members or policyholders of the society, issue to the society an acknowledgement of the registration of the amended rulesupply of copy of rules76 every provident society shall on demand deliver free of cost to any member of thesociety a copy of the rules of the society and to any person other than a member a copy of such rules on the payment of a sum not exceeding one rupeeregistered office77 every provident society shall have in india a principal office (on the outside of which it shall keep displayed its name in a conspicuous position in legible characters) to which all communications and notices may be addressed, and shall give notice to the authority of any change in the location thereof within twenty-eight days of its occurrence78 where any notice, advertisement or other official publication of a provident society contains a statement of the amount of the authorised capital of the society, the publication also contain a statement of the amount the capital which has been subscribed and the amount paid-uppublication of authorised capital to contain also subscribed and paid-up capital79 every provident society shall keep at its principal office in india—registers and books(a) such registers in such form as may be prescribed; (b) a cash-book in which shall be entered separately for each class of contingencyseparately specified in section 65 all sums received and expended by the society and the matters in respect of which the receipt or expenditure takes place;(c) a ledger;(d) a journalrevenue account, balance-sheet and annual statements70 of 191380 (1) every provident society shall at the expiry of the calender year prepare a revenue account and balance-sheet in the prescribed form verified in the prescribed manner, together with a report on the ganeral state of the society's affairs and shall cause the revenue account and balance-sheet to be audited by an auditor shall so far as may be in the audit of a provident society have the powers of, exercise the functions vested in, and discharge the duties and be subject to the liabilities imposed on, an auditor of companies by section 145 of the indian companies act, 1913(2) every provident society shall at the expiry of the calender year prepare with respect to that year—(a) a statement showing separately for each class of contingency separately specified in section 65—(i) the number of new policies effected, the total amount insured thereby and the total premium income received in respect thereof and the number of existing policies discontinued during the year with the total amount insured thereby, and(ii) the total amount of claims made and the total amount paid in satisfaction thereof; (b) a statement showing details of every insurance effected on a life other than the life of the person insuring; and(c) a statement showing the total amount paid as allowances to agents and canvassers5 of 1912(3) until the expiry of two years from the commencement of this act this section and section 73 shall apply to provident societies registered before the commencement of this act under the provident insurance societies act, 1912 as if the reference to the calender year were a reference to either the financial year or the calender yearactuarial report and abstract81 (1) every provident society shall once in every five years or at such shorter intervals as may be laid down by the rules of the society cause an investigation to be made as at the last day of a calender year into its financial condition including the valuation of its liabilities and assets by an actuary(2) the report of the actuary shall contain an abstract in which shall be stated—(a) the general principal adopted in the valuation, including the method by which the valuation age of lives was ascertained,(b) the rate at each age of the mortality and any other factor assumed and the annuity values used in valuation,(c) the reserve values held against policies effected,(d) the rate of interest assumed, and (e) the provision made for expenses, and shall have appended to it a certificate signed by a principal officer of the society that all material necessary for proper valuation has been placed at the disposal of the actuary and that full and accurate particulars of every policy under which there is a liability either actual or contingent have been furnished to the actuary for the purpose of the investigation(3) if the actuary finds that the financial condition of the society is such that no surplus exists for distribution as bonus to the policyholders, or as dividend to the share holders, he shall state in his report whether in his opinion the society is insolvent and, if so, whether it should be wound up or not, and the extent to which in his opinion existing contracts should be modified or existing rates of premium should be adjusted to make good the deficiency in the assetssubmission of returns to authority82 (1) the revenue account and balance-sheet with the auditor's report thereon andthe report on the general state of the society's affairs referred to in sub-section (1) of section80 shall be printed and four copies of these and of the statements referred to in sub-section (2) of section 80, shall be furnished as returns to the authority within six months from the end of the period to which they relate(2) all the material necessary for the proper valuation of the liabilities of the societyunder the provisions of section 81 shall be placed at the disposal of the actuary within three months from the end of the period to which such material relates, and the report and abstract referred to in section 81 shall be furnished as a return to the authority within a further period of three months:provided that the central government may in any case extend the time allowed by this sub-section for the furnishing of such return by a period not exceeding three months7 of 1913 6 of 1882 10 of 1866(3) the provisions of sub-section (2) of section 15 relating to the copies therein referred to shall apply to the returns referred to in sub-section (1) of this section, and the provisions of section 17 shall apply to the accounts and balance-sheet of a provided society being a company incorporated under the indian companies act, 1913, or under the indian companies act, 1882, or under the indian companies act, 1866 or under any act repealed thereby, as they apply to the accounts and balance-sheet of an insurer, and the authority may exercise, in respect of returns made by a provident society and in respect of an investigation or valuation to which section 81 refers, the same powers as are exercisable by it under section 21 and section 22, respectively, in the case of an insureractuarialexaminationof schemes5 of 191283 (1) every provident society, registered after the commencement of this act, shallcause every scheme of insurance which it proposes to put into operation, and every provident society registered before the commencement of this act under the provisions of the provident insurance societies act, 1912, shall cause any scheme which it proposes to put into operation for the first time, after such commencement to be examined by an actuary, and shall not receive any premium or contribution in connection with the scheme until the actuary has certified that the rates, advantages, terms and conditions of the scheme are workable and sound and such certificate has been forwarded to the authority(2) the provisions of sub-section (1) shall apply to any alteration of a scheme already in operation, but the authority may, if it is of opinion that the alteration unfairly affects the interests of existing policyholders, prohibit the alteration, and if he does so, the society shall not put the altered scheme into operation, unless it first discharges to the satisfaction of the authority all its liabilities to those of the existing policyholders who dissent from the alteration5 of 191213 of 1941(3) every provident society registered before the commencement of this act under theprovisions of the provident insurance societies act, 1912 shall, as soon as may be and in any event before the expiry of six months from the commencement of this act, submit all schemes of insurance which the society has in operation at the commencement of this act to examination by an actuary and shall, before the expiration of six months from the commencement of the insurance (amendment) act, 1941 send the report of the actuary thereon to the authority(4) the report of the actuary shall state in respect of each scheme whether the rates, advantages, terms and conditions are workable and sound and, where no actuarial report such as is referred to in section 81 has been made with the two years preceding the examination, the report shall also state whether the assets of the society are sufficient to meet its liabilities under the existing schemes, and if not, how in the opinion of the actuary the existing contracts should be modified(5) if the rates, advantages, terms and conditions of any scheme are not reported by the actuary to be workable and sound, the authority shall give notice to the society prohibiting the scheme, and the society shall not after its receipt of such notice enter into any new contract of insurance under the scheme, but all rights and liabilities in respect of contracts of insurance entered into by the society before receipt of the notice shall, subject to the provisions of sub-section (6), continue as if the notice has not been given(6) where a scheme is prohibited under the provisions of sub-section (5) the society shall, where its assets are sufficient to meet all existing liabilities, set apart out its assets the sum sufficient in the opinion of the actuary to meet the liabilities incurred under the scheme so prohibited and where its assets are not so sufficient, within three months from the date of the prohibition, apply to the court for a modification of its existing contracts or failing such modification for the winding-up of the societyseparation of accounts and funds84 where a provident society effects policies of insurance in connection with more than one of the classes of contingency separately specified in sub-section (2) of section 65, the receipts and payments in respect of each such class shall be recorded in a separate account in the cash-book kept in accordance with section 7985 (1) investment funds(2) no funds or investments of a provident society except a deposit made under section 73 or under the law of any state or country relating to insurance shall be kept otherwise than in the name of the society for in the name of a public officer approved by the central government(3) no loan shall be made out of the assets of a provident society to any director, manager, managing agent, auditor, actuary, officer or partner of the society, except on the security of a policy of insurance held in the society and within its surrender value and no such loans shall be made to any concern of which a director, manager, managing agent, actuary, officer or partner of the society is a director, manager, managing agent, actuary, officer or partner:provided that nothing in this sub-section shall apply to loans made by a provident society to a banking company:6 of 1946provided further that where any event occurs giving rise to circumstances, the existence of which at the time of the grant of any subsisting loan would have made such grant a contravention of this sub-section, such loan shall, notwithstanding any contract to the contrary, be repaid within three months from the occurrence of such event or from the commencement of the insurance (amendment) act, 1946 whichever is later; and in case of default, the director, manager, auditor, actuary or partner concerned shall without prejudice to any other penalty which he may incur, ceases to hold office in the society on the expiry of the said three months20 of 1940(3a) any loan prohibited under sub-section (3), made before and outstanding at the commencement of the insurance (amendment) act, 1940 shall be repaid before the 1st day of january, 1941, and in case of default the director, manager, managing agent, auditor, actuary, officer or partner who has received the loan or is connected with the concern which has received the loan, as the case may be, shall cease to hold office in or be partner of the society and shall be ineligible to hold office in or to be a partner of the society until the loan is repaid(4) any director, manager, managing agent, auditor, actuary, officer or partner, of a society which contravences the provisions of sub-section (3), who is knowingly a party to the contravention, shall without prejudice to any other penalty which he may incur be jointly and severally liable to the society for the amount of the loan, and such amount, together with interest from the date of the loan at such rate not exceeding twelve per cent, per annum as the authority may fix, shall on application by the authority to any civil court of competent jurisdiction be recoverable by execution as if a decree for such amount had been passed by that court7 of 1913(5) the provisions of section 86d of the indian companies act, 1913 shall not apply to a loan granted to a director of a provident society being a company if the loan is one granted on the security of a policy on which the society bears the risk and the policy was issued to the director on his own life and the loan is within the surrender value of the policyinspection of books86 the books of every provident society shall at all reasonable times be open toinspection by the authority or any person appointed by it in this behalf by any member or policyholder of the society who has, on application in this behalf, been permitted by the authority, subject to such condition, if any, as it impose, to make such inspectioninquiry by or on behalf of authority87 (1) the authority shall at least once in two years and may, if it thinks fit, at any timevisit personally or depute a suitable person to visit the principal office of a provident society or the principal office in india of a society having its principal place of business or domicile outside india and inquire into the affairs of the society, or may, after giving notice to the society any giving it an opportunity to be head, direct such an inquiry to be made by an auditor or actuary appointed by it or by both an auditor and an actuary appointed simultaneously, or first by an auditor only or an actuary only and afterwards by an actuary or auditor(2) for the purposes of any such inquiry the authority or the auditor or actuary, at the case may be, shall be entitled to examine all books and documents of the society and may demand from the society or any officer of the society such explanations as he may require on any matter relating to the affairs of the society(3) the results of any such inquiry shall be recorded in writing by the person making the inquiry, and four copies of the record shall be supplied to the authority and when the inquiry is completed, a copy of the record, or of each such record where more than one are made in the course of the same inquiry, shall be sent by the authority to the society concerned and shall be open to inspection by any member or policyholder of the society(4) all expenses of an incidental to any inquiry made by an auditor or actuary under sub-section (1) including any expenses incurred before the date on which the authority receives notice of an appeal under clause (e) of sub-section (1) of section 110 shall be defrayed by the provident society, shall have priority over other debts due from the society, and shall be recoverable as an arrear of land revenue(5) the authority may by notice in writing require the provident society to comply within a time to be specified therein (not being less than fifteen days from the receipt of the notice by the society) with any directions he may issue to remedy defects disclosed by an inquiry under this section(6) if the society fails to comply with any directions issued under sub-section (5), the authority may, after giving notice to the society and giving it an opportunity to be heard, apply to the court for the winding up of the societyamalgamation and transfer of insurance business87a (1) the insurance business of a provident society may be transferred to any person or transferred to or amalgamated with the insurance business of any other provident society in accordance with a scheme prepared under this section and sanctioned by the authority(2) any scheme prepared under this section shall set out the agreement under which the transfer or amalgamation is proposed to be effect, and shall contain such further provisions as may be necessary for giving effect to the scheme(3) before an application is made to the authority to sanction any such scheme, notice of the intention to make the application together with a statement of the nature of the amalgamation or transfer, as the case may be, and of the reason therefor, shall at least two months before the application is made, be sent to the authority and certified copies, four in number, of each of the following documents shall be furnished to him and other such copies shall during the two months aforesaid, be kept open for the inspection of the members and policyholders at the principal and branch offices of the provident societies concerned, namely:—(a) a draft of the agreement or deed under which it is proposed to effect the amalgamation or transfer,(b) balance-sheets in respect of the insurance business of each of the provident societies concerned in such amalgamation or transfer,(c) actuarial reports and abstracts in respect of the insurance business of each of the provident societies so concerned,(d) a report on the proposed amalgamation or transfer prepared by an independent actuary,(e) any other reports on which the scheme of amalgamation or transfer was foundedand the balance-sheets, reports and abstracts referred to in clauses (b), (c) and (d) shall be prepared as at the date at which the amalgamation or transfer if sanctioned by the authority is to take effect, which date shall not be more than twelve months before the date on which the application to the authority is made under this section:provided that the authority may exempt the provident society or societies concerned from furnishing to him and from keeping open for inspection any one or more of the above documents(4) when any application such as is referred to in sub-section (3) is made to the authority he may require, if for special reasons he so directs, notice of the application to be sent to every person resident in india who is the holder of a policy of any provident society concerned and may cause a statement of the nature and terms of the amalgamation or transfer, as the case may be, to be published in such manner and for such periods as he may direct, and after hearing the societies concerned, such policyholders as apply to be heard and such other persons as he may deem fit, may sanction the arrangement, if he is satisfied that no sufficient objection to the arrangement has been established and shall make such consequential orders as are necessary to give effect to the arranagement, including orders as to the disposal of any deposit made under section 73:provided that—(a) no part of the deposit made by any party to the amalgamation or transfer shall be returned except where, after effect is given to the arrangement the whole of the deposit to be made by the provident society carrying on the amalgamated business or the person to whom the business is transferred is completed;(b) only so much shall be returned as is no longer required to complete the deposit last mentioned in clause (a);(c) while the deposit last mentioned in clause (a) remains uncompleted, no accession, resulting from the arrangement, to the amount already deposited by the provident society carrying on the amalgamated business or the person to whom the business is transferred shall be appropriated as payment or part payment of any instalment of deposit subsequently due from it or him under section 73 (5) a copy of the order under sub-section (4) sanctioning or refusing to sanction the arrangement shall be sent to each of the societies concerned and to each of the policy holders who applied to be heard(6) if the scheme involves a reduction of the amount of the insurance and other contracts of the transfer or society or of any or all of the societies concerned in the amalgamation, the authority may sanction the scheme, reducing the amount of such contracts upon such terms and subject to such conditions as he may think proper, and the reduction of the contracts as sanctioned by the authority shall be valid and binding on all the parties concerned6 of 1882winding up by court and voluntary winding up88 (1) the court may order the winding up of a provident society being a company incorporated under the indian companies act, 1913 or under the indian companies act, 1882 or under the indian companies act, 1866 or under any act repealed thereby and the provisions of the indian companies act, 1913 shall subject to the provisions of this part, apply accordingly10 of 1866(2) in addition to the grounds on which such an order may be based, the court may order the winding up of a provident society if the authority, who is hereby authorised to do so, applies in this behalf to the court on any of the following grounds, namely:—(a) that the resignation of the society has been cancelled under sub-section (4)of section 70;(b) that it appears from the returns furnished under the provisions of this act or as the result of an inquiry made under section 87 that the society is insolvent;(c) that the continuance of the society is prejudicial to the interests of the policy holders (3) a provident society being a company incorporated under the indian companies act, 1913 or under the indian companies act, 1882 or under the indian companies act,7 of 1913 6 of 188210 of 1866 7 of 19131866 or under any act repealed thereby may be wound up voluntarily in accordance with the provisions of the indian companies act, 1913 but shall not be so wound up except for the purpose of effecting an amalgamation or reconstruction of the society or on the ground that by reason of its liabilities it cannot continue its business7 of 1913 6 of 1882 10 of 1866(4) a provident society not being a company incorporated under the indian companies act, 1913 or under the indian companies act, 1882 or under the indian companies act, 1866 or under any act repealed thereby, may be wound up voluntarily under this act, if a resolution is passed by proprietors that the society should be wound up voluntarily for the purpose or on the ground specified in sub-section (3), and the authority may, in any case where he has ordered the cancellation of the registration of a society under sub-section (4) of section 70, order the winding up of the society under this act89 the court may make an order reducing the amount of the insurance contracts of a provident society upon such terms and subject to such conditions as the court think just—reduction ofinsurancecontracts(a) if the authority as an alternative to cancelling the registration of a society under sub-section (4) of section 70 applies to the court in this behalf;(b) if while a society is in liquidation the court thinks fit; (c) if when a society has been proved to be insolvent, the court thinks fit to do so in place of making an order for the winding up of the society; or(d) if the court is satisfied on an application made in this behalf by the society supported by the report of an actuary, and after giving the policyholders an opportunity to be heard that it is desirable to do soappointment of liquidator7 of 191390 (1) where a provident society is to be wound up whether under the indian companies act, 1913 or under this act, the society shall, within seven days from the date of the order of the court ordering the winding up or the passing of the resolution authorising the winding up, as the case may be, give notice thereof to the authority, and, except where the winding up is done by an order of the court, the authority shall appoint the liquidator and shall determine the remuneration to be paid to him:provident that if the authority is not satisfied that the assets of the society are sufficientto meet the costs of liquidation including the remuneration of the liquidator, he may decline to make such appointment, and in such a case the society shall itself appoint a liquidator who shall carry out the liquidation as if the winding up was being done by an order of the court(2) any liquidator appointed by the authority under sub-section (1) may be removedby the authority if satisfied that the duties entrusted to him are not being properly discharged7 of 1913application of act to liquidators90a notwithstanding anything to the contrary contained in the indian companiesact, 1913 the provisions of sections 91, 92 and 93 shall apply to any liquidator appointed to wind up a provident society, whether by the court, the authority or the society itself91 (1) a liquidator appointed to wind up a society shall have power—powers of liquidator(a) to institute or defend any legal proceedings on behalf of the society by hisname of office;(b) to determine the contribution to be made by members of the societyrespectively to the assets of the society;(c) to investigate all claims against the society and to decide questions of priorityarising between claimants;(d) to determine by what persons and in what proportion the costs of theliquidation including the remuneration of the liquidator and any expenses incurredunder clause (g) of this sub-section are to be borne;(e) to give such directions in regard to the collection and distribution of the assets of the society as may appear to him to be necessary for winding up the affairs of the society;5 of 1908(f) to summon, and enforce the attendance of, witnesses and to compel the production of documents by the same means and as far as may be in the same manner as is provided in the case of a civil court by the code of civil procedure, 1908;(g) with the sanction of the authority to employ such establishment and to obtain such assistance from an actuary or an auditor as may be necessary for the discharge of his duties;(h) to sell the immovable and movable property of the society by public auction or private contract, with power to transfer the whole thereof to any person or society or to sell the same in parcels7 of 1913(2) the liquidator shall, for settling the list of contributories and realising the amount of contributions, have the same powers as an official liquidator appointed by the court for the winding up of the company under the indian companies act, 1913procedure at liquidation92 (1) as soon as a liquidator is appointed to wind up a society he shall take charge of all property movable or imovable of the society and of all its books and documents(2) if any proprietor or officer of the society or any other persons retains any portion of the assets of the society or fails to deliver to the liquidator any book or document when so required by the liquidator, he shall be punishable with imprisonment which may extend to six months, or with fine which may extend to five hundred rupees, or with both, and the court may order the delivery of the assets or book or document to the liquidator(3) the liquidator shall within fifteen days of his appointment send notice by post to all persons who appear to him to be creditors of the society that a meeting of the creditors of society will be held on a date not being less than twenty-one or more than twenty-eight days after his appointment, and at a place and hour to be specified in the notice, and shall advertise notice of the meeting once in the local official gazette and once at least in two newspapers circulating in the state in which the society is situated(4) at the meeting so held the creditors shall determine whether an application shall be made for the appointment of any person as liquidator in the place of or jointly with the liquidator already appointed, or for the appointment of a committee of inspection, and if they so resolve and an application accordingly is made at any time not later than fourteen days after the date of the meeting by any creditor appointed for the purposes at the meeting, the authority may, if it thinks fit, appoint a suitable person in place of or jointly with the liquidator already appointed, and, determine the remuneration to be paid to him and if he considers it desirable, may also appoint a committee of inspection(5) the committee of inspection shall, subject to any prescribed conditions have a general power of supervision over the acts of the liquidator and shall have the right to inspect his accounts at all reasonable times(6) the liquidator shall, with such assistance from an actuary as may be required, ascertain as soon as practicable the amount of the society's liabiality to every person appearing by the society's books to be entitled to or interested in any policy issued by the society, and shall give notice of the amount so found to each such person in the prescribed manner and each such person on receiving such notice shall be bound by the value so ascertained(7) the liquidator shall make a valuation of the assets of the society and an estimate of the costs of the winding up, and shall on the basis of these settle the list of contributories(8) the liquidator shall apply to the authority for an order for the return of the deposit made by the society under section 73 and the authority shall on such application order the return of the deposit subject to such terms and conditions as he may think fit(9) in administering and distributing the assets of the society the liquidator shall have regard to any directions that may be given by the creditors or contributories at a general meeting or by the authority(10) the liquidator shall keep books of account in which he shall record the proceedings at all meetings attended by him, all amounts received or expended by him and any other matter that may be prescribed, and these books may, with the sanction of the authority be inspected by any creditor or contributory(11) if the winding up continues for more than a year the liquidator shall summon a meeting of the creditors and contributories at the end of the first year and of each succeeding year, and shall lay before them an account of his acts and dealings and of the conduct of the winding up, and that account together with any views expressed thereon by the meeting shall be forwarded by the liquidator within one week after the meeting to the authority7 of 1913(12) so far as is not otherwise provided herein or is not otherwise prescribed under this act, the liquidator shall so far as practicable follow the procedure to be followed by an official liquidator appointed by the court for the winding up of a company under the indian companies act, 1913(13) the costs of the liquidation including the remuneration of the liquidator and any expenses incurred under clause (g) of sub-section (1) of section 91 or shall, if the liquidator decides that they shall be payable of the assests of the society, be payable in priority to all other claimsdissolution of provident society93 (1) as soon as the affairs of a provident society are fully wound up the liquidator shall prepare an account of the winding up showing how the winding up has been conducted and the property of the society has been disposed of and shall call a meeting of the members, creditors and contributories for the purpose of laying before it the account and giving any explanation thereof(2) notice of the meetings shall be sent to each person individually and shall be advertised in the local oficial gazette and in at least two newspapers circulating in the state in which the society is situated(3) within on week after the meeting of the liquidator shall send to the authority a copy of the account and shall report to the holding of the meeting and its date and shall forward to it a copy of the proceedings of the meeting(4) the authority may return the account to the liquidator if it is incomplete or unsatisfactory and may require the liquidator to carry out any further steps necessary to complete the winding up and the liquidator shall comply with such requirement and shall submit a further report to the authority within six months(5) if the authority is satisfied that the affairs of the society have been fully wound up he shall register the account of the liquidator who shall fothwith make over to the authority sums, if any, remaining undisposed if; and on the expiry of three months from the registering of the account the authority shall declare the society dissolved and cause the dissolution of the society to be notified in the local official gazette, and the liquidator shall thereupon be discharged from further responsibility(6) if within a period of five from the date on which any sums have been made over the the authority under sub-section (5) an order of a court of competent jurisdication has not been obtained at the instance of any claimant to such sums for their disposal, the said sums shall become the property of governmentnominations and assignments94 (1) the provisions of section 38 and section 39 relating to assignment, transferand nomination in the case of life insurance policies shall, subject to the provisions of this section, apply to policies of insurance issued by any provident society covering any of the contingencies specified in clause (a) of sub-section (2) of section 65 part iii a insurance co-operative societies 94a (1) every insurance co-operative society shall be deemed to be an insurer for the purposes of this actinsurance cooperative society to be an insurer(2) save as otherwise provided in this act, all the provisions applicable to an insurer being an indian insurance company shall, so far as may be, apply to an insurance cooperative society:provided that the authority may, by notification, direct that any of the provisions of this act,—(a) shall not apply to any insurance co-operative society; or (b) shall apply to any insurance co-operative society only with such exceptions, modifications and adaptations as may be specified in the notification (3) a copy of every notification proposed to be issued under proviso to sub-section(2), shall be laid in draft 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 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 disapproving the issue of the notification of both houses agree in making any modification in the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the houses part iv mutual insurance companies and co-operative life insurance societiesdefinitions41 of 199995 (1) in this part, before the date of commencement of the insurance regulatory anddevelopment authority act, 1999—7 of 1913 6 of 1882 10 of 1866(a) "mutual insurance company" means an insurer, being a company incorporated under the indian companies act, 1913 or under the indian companies act, 1882, or under the indian companies act, 1866, or under any act, repealed thereby, which has no share capital and of which by its constitution only and all policyholders are members; and2 of 1912 (b) "co-operative life insurance society" means an insurer being a society registered under the co-operative societies act, 1912, or under an act of a state, legislature governing the registration of co-operative societies which carries on the business of life insurance and which has no share capital on which divident or bonus is payable and of which by its constitution only original members on whose application the society is registered and all policy-holders are members: provided that any co-operative life insurance society in existence at the commencement of this act shall be allowed a period of one year to comply of this act(2) notwithstanding anything contained in sub-section (1), other co-operative societies may be admitted as members of a co-operative life insurance society, without being eligible to any dividend, profit or bonus(3) a state government may, subject to any rules made by the central government, empower the registrar of co-operative societies of the state to register co-operative societies for the insurance of cattle or crops or both under the provisions of the co-operative societies act in force in the state(4) a state government may make rules not inconsistent with any rules made by the central government to govern such societies, and the provisions of this act, in so far as they are inconsistent with those rules, shall not apply to such societies96 the provisions of sections 6 and 7 and of sub-section (2) of section 20, so far as those provisions are inconsistent with the provisions of this part, shall not apply, and the provisions of this part shall apply, to co-operative life insurance societiesapplication of act to mutual insurance companies and cooperative life insurance societies2 of 191297 no co-operative life insurance society registered after the 26th day of january 1937under the co-operative societies act, 1912, or under an act of a state legislature governing the registration of co-operative societies shall be registered under this act, unless it has as working capital a sum of fifteen thousand rupees, exclusive of the deposit to be made before or at the time of application for registration in accordance with sub-section (2) of section 98of this act and of the preliminary expenses, if any, incurred in the formation of the company or societyworking capital of mutual insurance companies and cooperative lifeinsurance societies98 (1) every co-operative life insurance society shall, in respect of the life insurance business carried on by it in the states deposit and keep deposited with one of the offices in india of the reserve bank of india, for and on behalf of the central government, a sum of two hundred thousand rupees in cash or in approved securities estimated at the market value of the securities on the day of depositdeposits to be made by mutual insurance companies and cooperative life insurance societies6 of 1912the deposit referred to in sub-section (i), may be made in instalments, of which thefirst shall be a payment, made before or at the time the application for registration under this act is made of not less than twenty-five thousand rupees or such sum as with any deposit previously made by the insurer under the provisions of the indian life insurance companies act, 1912, brings the amount deposited up to not less than twenty-five thousand rupees and the subsequent instalments shall be annual instalments made before the expiry of each subsequent calendar year of an amount in cash or in approved securities estimated at the market value of the securities on the day of payment of the instalment, equal to not less than one-third of the premium income in the preceding calendar year as shown in the revenue account(3) the provisions of sub-section (7) of section 7 shall apply in respect of a cooperative life insurance society as if for the words 'under the foregoing provisions of this section' the words and figures 'under the provisions of section 98' were substitutedprohibition of loans98a the provisions of section 29 shall apply to co-operative life insurance societiesas they apply to other insurers99 no transferee or assignee of a policy issued by an insurer to whom this part appliesshall become a member of a mutual insurance company or a co-operative life insurance society merely by reason of any such transfer or assignmenttransferees and assignees of policies not to become members7 of 1913100 notwithstanding the provisions of section 79 and section 131 of the indiancompanies act, 1913, a mutual insurance company or a co-operative life insurance society may, instead of sending the notices and the copies of the balance-sheet, revenue account and other documents which they are required to send to the members under those sections, publish such notice together with a summary in the prescribed form of the balance-sheet and revenue account once in a newspaper published in the english language and in newspaper published in an indian language circulating in the place where the principal office of the company is situated:publication of notices and documents of mutual insurance companies and cooperative life insurance societiesprovided that, where any members of the company are domiciled in a state other thanthat in which the principal office of the company is situated, publication of the notice of the meetings shall be made in a newspaper or newspapers published in the principal languages of that state and circulating therein and any member of the company domiciled in that stateshall be entitled on application to the company to receive from it a copy of the balance-sheet and revenue accountsupply of documents to members7 of 1913101 every mutual insurance company and every co-operative life insurance society shall, on the application of any member made within two years from the date on which any such document is furnished to the registrar of companies under the provisions of section 134 of the indian companies act, 1937, or to the registrar of co-operative societies of the state in which the co-operative life insurance society is registered, furnish a copy of the document free of cost to the member within fourteen days of the application part v miscellaneous102 if any person, who is required under this act, or rules or regulations made thereunder,—(a) to furnish any document, statement, account, return or report to the authority, fails to furnish the same; orpenalty for default in complying with, or act in contravention of this act(b) to comply with the directions, fails to comply with such directions;(c) to maintain solvency margin, fails to maintain such solvency margin;(d) to comply with the directions on the insurance treaties, fails to comply with such directions on the insurance treaties, he shall be liable to a penalty not exceeding five lakh rupees for each such failure and punishable with fine103 if a person makes a statement, or furnishes any document, statement, account return or which is false and which he either knows or believes to be false or does not believe to be true,—(a) he shall be liable to penalty not exceeding five lakh rupees for each such failure, andpenalty for carrying on insurance business in contravention of sections 3, 7 and 98(b) he shall be punishable with imprisonment which may extend to three years or with fine for each such failure104 if a person fails to comply with the provisions of section 27 or section 27a or section 27b or section 27c or section 27d, he shall be liable to a penalty not exceeding five lakh rupees for each such failurepenalty for false statement in document105 if any director, managing director, manager or other officer or employees of an insurer wrongfully obtains prossession of any property or wrongfully applies to any purpose of the act, he shall be liable to a penalty not exceeding two lakh rupees for each such failurewrongfully obtaining or withholding property 105b if an insurer fails to comply with the provisions of section 32b, he shall be liableto a penalty not exceeding five lakh rupees for each such failure and shall be punishable with imprisonment which may extend to three years or with fine for each such failurepenalty for failure to comply with section 32b penalty for failure to comply with section 32c105c if an insurer fails to comply with the provisions of section 32c, he shall be liableto a penalty not exceeding twenty-five lakh rupees for each such failure and in the case of subsequent and continuing failure, the registration granted to such insurer under section 3 shall be cancelled by the authority 106a (1) notice to an hearing of authority(2) the orders to which this section applies are the following, namely:—(a) an order for the attachment in execution of a decree of any deposit made under section 7 or section 98;(b) an order under section 9 or section 59 for the return of any such deposit; (f) an order under section 89 reducing the amount of the insurance contracts of a provident societyprevious sanction of advocate- general forinstitution ofproceedings107 (1) except where proceedings are instituted by the authority or an administrator appointed under section 52a no proceedings under this act against an insurer or any director, managing agent, manager, secretary or other officer of an insurer or any liquidator or any employee or agent of an insurer or any person who is liable under sub-section (2) of section 41 or any other person shall be instituted by any person unless he has previous thereto obtained the sanction of the advocate-general of the state where the principal place of business in india of such insurer is situate to the institution of such proceedings:provided that where the principal place of business of such insurer is situated in a union territory references in this section to the advocate-general of the province shall be construed as references to the attorney-general for india(2) this section shall apply in respect of a provident society as defined in part iii as it applies in respect of an insurer45 of 1860107a every whole-time chairman, whole-time director, auditor, liquidator, manager and any other employee of insurer shall be deemed to be a public servant for the purposes of chapter ix of the indian penal codechairman, etc, to be public servants cognizance of offences109 (1) no court inferior to that of a presidency magistrate or a magistrate of the first class shall try any offence under this act(2) no court shall take congnizance of any offence punishable under sub-section of section 34b or sub-section (1a) of section 102 except upon complaint in writing made by an officer of the central government generally or specially authorised in writing, in this behalf by the authority and no court inferior to that of a presidency magistrate or a magistrate of the first class shall try any such offenceappeals110 (1) an appeal shall lie to the court having jurisdiction from any of the following orders, namely:—(a) an order under section 3 cancelling the registration of an insurer;(b) an order under section 5 directing the insurer to change his name; (c) an order under section 42 cancelling the licence issued to an agent; (d) an order under section 75 refusing to register an amendment of rules; (e) an order under section 87 or section 87a; (f) an order made in the course of the winding up or insolvency of a providentsociety(2) the court having jurisdiction for the purposes of sub-section (1) shall be the principal court of civil jurisdiction within whose local limits the principal place of business of the insurer concerned is situate(3) an appeal shall lie from any order made under sub-section (1) to the authority authorised to hear appeals from the decisions of the court making the same and the decision on such appeal shall be final(4) no appeal under this section shall be entertained unless it is made before the expiration of four months from the date on which the order appealed against was communicated to the appellant 31 of 1956110e notwithstanding anything contained in the life insurance corporation act,1956, the provisions of sections 3a, 27b, 28b, 33, 34a, clause (a) of sections 34e, 34f, 40c, 44a, 64u to 64um (both inclusive), 64v, 64va, 64vb, 64vc, 101c, 110d, 110g and 110h, shall also apply, so far as may be, to and in relation to the general insurance business carried on by the life insurance corporation of india and the provisions of section 37a shall also apply to that corporation if it becomes an acquiring insurersections 3a, 27b, 28b, 33, etc to apply to general insurance business of the life insurance corporation of india 110g (1) the central government shall constitute a consultative committee consisting of the chairperson of the authority (who shall be the chairman thereof) and not more than four other members having special knowledge and experience of the business of insuranceconstitution of consultative committee(2) the term of office of, and the allowances payable to the members of the consultative committee, the procedure to be followed by, and the quorum necessary for the transaction of business of, the consultative committee and the manner of filing casual vacancies therein shall be such as may be prescribed(3) before making any order under sections 34, 34a, 34b, 34c, 34e, 34f, 34g, subsections (4) and (7) of section 64um and section 64vc, the chairperson of the authority shall consult the consultative committee constituted under sub-section (1)appeals110h (1) any person aggrieved by any order made by the authority under sections27d, 34a, 34b, 34c, 34e, 34f, 34g, sub-section (1), (4) and (7) of section 64um or section64vc may, within a period of thirty days from the date of such order prefer an appeal against such order to the central government and that government may, by order, confirm, modify or reverse the order made by the authority and the order so made by the government shall be final(2) no claim for compensation shall lie in favour of any person for anything done in pursuance of an order of the authority so long as such order was effective(3) the central government may, on the application of an appellant, stay, until the decision of the appeal, the operation of any order made under section 34 or sub-section (5)of section 34b or sub-clause (v) of clause (b) of section 34eservice of notices111 (1) any process or notice required to be served on an insurer or provident societyshall be sufficiently served if addressed to any person registered with the authority as a person authorised to accept notices on behalf of the insurer of provident society and left at, or sent by registered post to the address of such person as registered with the authority(2) any notice or other document which is by this act required to be sent to any policy-holder may be addressed and sent to the person to whom notices respecting such policy are usually sent and any notice so addressed and sent shall be deemed to be notice to the holder of such policy:provided that, where any person claiming to be interested in a policy as transferee, asignee or nominee has given to an insurer or to a provident society notice in writing of his interest, any notice which is by this act required to be sent to policy-holders shall also be sent to such person at the address specified by him in his noticeacquisition of surrender values by policy113 (1) a policy of life insrance under which the whole of the benefits become payableeither on the occurrence, or at a fixed interval or fixed intervals after the occurrence, of a contingency which is bound to happen, shall, if all premiums have been paid for at least three consecutive years in the case of a policy issued by an insurer, or five years in the case of apolicy issued by a provident society as defined in part iii, acquire a guaranteed surrender value, to which shall be added the surrender value of any subsisting bonus already attached to the policy, and every such policy issued by an insurer shall show the guaranteed surrender value of the policy at the close of each year after the second year of its currency or at the close of each period of three years throughout the currency of the policy:provided that the requirements of this sub-section as to the addition of the surrender value of the bonus attaching to a policy at surrender shall be deemed to have been complied with where the method of calculation of the guaranteed surrender value of the policy makes provisions for the surrender value of the bonus attaching to the policy:provided further that the requirements of this sub-section as to the showing of the guaranteed surrender value on a policy shall be deemed to have been complied with where the insurer shows on the policy the guaranteed surrender value of the policy by means of a formula accepted in this behalf by the authority as satisfying the said requirements:provided further that the provisions of this sub-section as to the showing of the guaranteed surrender value on a policy shall not take effect until after the expiry of six months from such date as the authority may, by notification in the official gazette appoint in this behalf(2) notwithstanding any contract to the contrary, a policy which has acquired a surrender value shall not lapse by reason of the non-payment of further premiums but shall be kept alive to the extent of paid-up sum insured, and the paid-up sum insured shall for the purposes of this sub-section include in full all subsisting reversionary bonuses that have already attached to the policy, and shall, where the policy is one on which the maximum number of annual premiums payable is fixed and the premiums are of uniform amount, before the inclusion of such bonuses not less than the amount bearing to the total sum insured by the policy exclusive of bonuses the same proportion as the total period for which premium have already been paid bears to the maximum period for which premiums were originally payable(3) a policy kept alive to the extent of the paid-up sum insured under sub-section (2)shall not be entitled by virtue of that sub-section to participate in any profits declared distributable after the conversion of the policy into a paid-up policy(4) sub-section (2) and sub-section (3) shall not apply—(a) where the paid-up sum insured by a policy, being a policy issued by an insurer, is less than one hundred rupees inclusive of any attached bonus, or takes the form of any annuity of less than twenty-five rupees, or where the paid-up sum insured by a policy, being a policy issued by a provident society, as defined in part iii, is less than fifty rupees inclusive of any attached bonus or takes the form of an annuity of less than twenty-five rupees, or(b) where the parties after the default has occurred in the payment of the premium agree in writing to some other arrangement, or(c) to policies in which the surrender value is automatically applied under the terms of the contract to maintaining the policy in force after its lapse through nonpayment of premium114 (1) power of central government to make rules(2) in particular and without prejudice to the generality of the foregoing power, such rules may prescribe—(aa) such other percentage of paid-up equity capital in excess of twenty-six per cent of the paid-up equity capital and the period within which such excess paid-up equity capital shall be divested under sub-section (1) of section 6aa; (c) the procedure to be followed by the reserve bank of india in dealing with deposits made in pursuance of this act, including the reciept of, custody of, withdrawal of, and payment of interest on securities lodged as such deposits, and their inspection and verification by the authority (f) the matters to be prescribed for the purposes of section 48;(3) every rule made under this section or under sub-section (10) of section 34h or under sub-section (1) of section 64ub and every regulation made under sub-section (3) of section 64ub and every regulation made under this part 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 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 regulation or both houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form 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 or regulation 114a (1) power of authority to make regulations(2) in particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters namely:—(a) the qualifications to be possed by actuaries;(aa) the maters including fee relating to the registration of insurers under section 3; (d) the matters relating to the renewal of registration and fee therefore under section 3a;(e) the manner and procedure for divesting excess share capital under subsection (2) of section 6aa;(f) the preparation of balance-sheet, profit and loss account and a separate account of receipts and payments and revenue account under sub-section (1a) of section 11;(g) the manner in which an abstract of the report of the actuary to be specified under the fifth proviso to sub-section (1) of section 13;(h) the form and manner in which the statement referred to in sub-section (4) of section 13 shall be appended;(i) the time, manner and other conditions of investment of assets held by an insurer under sub-sections (1), (1a) and (2) of section 27d;(ia) the form in which a return showing the investments made out of the controlled fund shall be submited by an insurer carrying on life insurance business under subsection (2) of section 28a;(ib) the form in which return showing all the changes that occurred in the investments shall be submitted by an insurer carrying on life insurance business under sub-section (2) of section 28a;(ic) the form in which a return showing the investment made out of assets shall be submitted by an insurer carrying on general insurance business under sub-section (1) of section 28b;(id) the form in which a return showing all the changes that occurred in the investment shall be submitted by an insurer carrying on general insurance business under sub-section (2) of section 28b;(ie) the form of the statement and the sum to be specified under sub-section (2)of section 31b;](j) the minimum information to be maintained by insurer in their books, the manner in which such information should be maintained, the checks and other verifications to be adopted by insurers in that connection and all other matters incidental thereto under sub-section (8) of section 33;(k) the manner for making an application, the manner and the fee for issue of a licence to act as an insurance agent under sub-section (1) of section 42;(l) the fee and the additional fee to be determined for renewal of licence of insurance agent under sub-section (3) of section 42;(m) the requisite qualifications and practical training to act as an insurance agent under clause (e) of sub-section (4) of section 42;(n) the passing of examination to act as an insurance agent under clause (f) of sub-section (4) of section 42;(o) the code of conduct under clause (g) of sub-section (4) of section 42; (p) the fee not exceeding rupees fifty for issue of duplicate licence under subsection (6) of section 42; (va) the amount of commission, fee or as remuneration in any form not exceeding thirty per cent to be paid or contract to be paid under sub-section (1) of section 42e;(vb) the requirements of capital, form of business and other conditions to act as an intermediary or insurance intermediary under sub-section (z) of section 42e;(w) such matters as specified under sub-section (2) of section 64ub relating to the tariff advisory committee;(x) the matters relating to licensing of surveyors and loss assessors, their duties, responsibilities and other professional requirements under section 64um;(y) such other asset or assets as may be specified under clause (h) of subsection (1) of section 64v for the purposes of ascertaining sufficiency of assets under section 64va;(za) the matters specified under sub-section (1a) of section 64va relating to sufficiency of assets; the fifth schedule (see section 13) regulations for preparing statements of business in force and requirements applicable to such statements part i regulations1 statements prepared under this schedule must be prepared, so far as practicable, in tabular form and must be identified by numbers and letters corresponding with those of the paragraphs of part ii of this schedule2 except with respect to rates of premium or contribution, items in statements prepared under this schedule are to be shown to the nearest rupee3 extra premium shown in the forms of summary and valuation prepared under the fourth schedule to this act must not be included in statements prepared under this schedule4 every statement prepared under this schedule shall be signed by the actuary making the investigation in connection with which it is prepared5 for the purposes of this schedule the following expressions have the meanings hereby respectively assigned to them, namely:—(a) "annual loading" means the provision made for future expenses and profits; (b) "extra premiums" means a charge for any risk not provided for in the minimum contract premium;(c) "net premiums" means the premiums taken credit for in the valuation in connection with which any statement is prepared; and(d) "valuation date" means as respects any valuation the date as at which the valuation is made part ii requirements for statements applicable to life insurancethe statements required to be prepared under this part of this schedule are as follows, namely:—1 statements, separately prepared in respect of policies with and without participation in profits, showing:—(a) as respects policies for the whole term of life, the rates of office premiums charged, in accordance with the published tables in use, for new policies giving the rates for decennial ages at entry from 20 to 70 inclusive; and(b) as respects endowment insurance policies, the rates of office premiums charged, in accordance with the published tables in use, for new policies with original terms of ten, fifteen, twenty, thirty and forty years, giving the rates for decennial ages at entry from 20 to 40 inclusive, but excluding policies under which the age at maturity exceeds 60 2 statements, separately prepared in respect of policies with immediate profits, with deferred profits, with profits under discounted bonus systems, and without profits, showing in quinquennial groups—(a) as respects policies for the whole term of life—(i) the total amount assured (specifying sums assured and reversionary bonuses separately), grouped according to ages attained;(ii) the amount per annum, after deducting abatements made by application of bonus, of office premiums payable throughout life, and of the corresponding net premiums, grouped according to ages attained; and(iii) the amount per annum, after deducting abatements made by application of bonus, of office premiums payable for a limited number of years and, either the corresponding net premiums grouped in accordance with the grouping adopted for the purposes of the valuation, or, the annual loading reserved for the remaining duration of the policies, grouped according to ages attained (b) as respects endowment insurance policies—(i) the total amount assured (specifying sums assured and reversionary bonuses separately), grouped in according with the grouping adopted for the purposes of the valuation; and(ii) the amount per annum, after deducting abatements made by application of bonus, of office premiums payable and of the corresponding net premiums, grouped in accordance with the grouping adopted for the purposes of the valuation:provided that—(a) as respects endowment insurance policies which will reach maturity in less than five years, the information required by sub-paragraph (b) (i) of this paragraph must be given for each year instead of in quinquennial groups; and(b) where the office premiums payable under policies for the whole term of life for a limited number of years, or the office premiums paybale under endowment insurance policies, or the corresponding net premiums, are grouped for the purposes of the valuation otherwise than according to the number of years' payments remaining to be made, or where the sums assured under endowment insurance policies are grouped for the purposes of the valuation otherwise than according to the years in which the policies will mature for payment or in which they are assumed to mature if earlier than the true year, then, in any such case the valuation constants and an explanation of the method by which they are calculated must be given for each group, and in the case of the sums assured under endowment insurance policies a statement must also be given of the amount assured maturing for payment in each of the two years following the valuation date 3 statements as respects any policies in force under which premiums cease to be payable, whether permanently or temporarily during disability arising for sickness or accident, showing the total amount of the office premiums payable4 statements as respects immediate annuities on single lives for the whole term of life, separately prepared in respect of annuities on male and female lives, showing in quinquennial age groups the total amount of such annuities5 statements as respects deferred annuities, separately prepared in respect of annuities on male and female lives, showing the specimen reserve values for annuities of one hundred rupees which will be produced on maturity on the basis of valuation adopted at ages, in the case of male lives, 60 and 65, and in the case of female lives, 55 and 60; the said statements must show the specimen reserve values which will be produced under the table of annual premiums in use for new policies, and if under any other table of annual premiums in use for any other deferred annuity policies in force smaller reserve values will be produced, the like specimens of these must also be given6 statements as respects any policies of insurance upon the lives of a group of persons, whereby sums assured are payable in respect of the several persons included in the group, showing the total claims paid since the date as at which the last statements were prepared under this part of this schedule or, where no such statements have been prepared, since the date on which the insurer began to carry on the class of business to which the statements relate, and the reserve for unexpired and outstanding claims the sixth schedule part a [see section 42b(1)] terms deemed to be included in every contract between an insurer carrying on general insurance business and a principal agent1 all payments of commission to insurance agents shall be made by the principal agent on behalf of the insurer2 the principal agent shall procure or cause to be procured through insurance agents such an amount of general insurance business of any class for the procurement of which he has been appointed, as will yield a gross premium income of not less than twenty thousand rupees in each calender year3 in the event of the principal agent failing in any calender year to comply with the requirements of clause 2, the shall forfeit to the insurer—(i) one-quarter of the total remuneration payable to him by the insurer for that year, if the class of business for the procurement of which he has been appointed is fire or miscellaneous insurance business, or(ii) one-third of the total remuneration payable to him by the insurer for that year, if the class of business for the procurement of which he has been appointed is marine insurance business 4 in the event of the principal agent failing to comply with the requirements of clause 2 in any two successive calender years, the contract shall without prejudice to the provisions of clause 3, terminate on the 31st day of march immediately following the second calendar year5 except in cases where the business relates to any property under his immediate control, a principal agent shall not by himself procure any class of the general insurance business without utilising the services of an insurance agent part b [see section 42c(1)] terms deemed to be included in every contract between an insurer carrying on life insurance business and a chief agent1 all payments of commission to insurance agents shall be made by the insurer direct or by the chief agent, who may make the payment either directly or through a special agent on behalf of the insurer2 the chief agent shall employ or cause to be employed for and on behalf of the insurer either directly or through special agents at least six insurance agents in cases where the business in force of the insurer is less than one crore of rupees and in any other case at least twelve agents each of whom will procure in each calender year new business amounting to not less than ten thousand rupees3 save as provided in respect of cases specified in clause 7 of the part, the remuneration payable to the chief agent in respect of life insurance business effected through him for the insurer shall only be in the form of an overriding commission,4 in the event of the chief agent failing in two successive calendar years to comply with the requirements of clause 2, he shall forfeit to the insurer one-half of the total remuneration payable to him by the insurer for those years5 in the event of the chief agent failing to comply with the requirements of clause 2 in four successive calendar years, the contract shall, without prejudice to the provisions of clause 4, terminate on the 31st day of march immediately following the last of such calendar years6 not more than one intermediary to be remunerated by the insurance concerned, whether on a salary basis or by way of commission, shall be employed between the chief agent and any insurance agent, but the chief agent may employ as many persons as he thinks fit on a salary basis, provided such salaries are paid out of his overriding commission7 in cases where the commission payable on a policy of life insurance effected through an insurance agent working under a chief agent is stopped on or after the 1st day of january, 1949 and not paid to the insurance agent, an amount not exceeding one-quarter of such commission payble to the insurance agent concerned shall also be payble to the chief agent, if he continues to render service in connection with that policy and if such commission is otherwise payable to him part c [see section 42c(4)] terms deemed to be included in every contract between an insurer carrying on life insurance business and a special agent or between a chief agent and a special agent1 all payments of commission to insurance agents shall be made by the insurer direct or, on behalf of the insurer, either by the chief agent under whom the special agent is working or by the special agent2 the special agent shall employ at least two insurance agents and shall procure or cause to be procured through insurnace agents employed under him in each calendar year new business amounting to not less than fifty thousand rupees assured on which at least the first year's premiums have been paid in full3 in the event of the special agent failing in any calendar year to comply with the requirements of clause 2, he shall forfeit to the insurer fifty per cent, of the total remuneration payable to him by the insurer, or, as the case may be, by the chief agent, for that year4 in the event of the special agent failing to comply with the requirements of clause 2in two successive calendar years, the contract shall, without prejudice to the provisions of clause 3 of this part terminate on the 31st day of march immediately following the second calendar year5 in the event of the special agent procuring life insurance business without utilising the services on an insurance agent, the special agent shall be entitled only to the commission that is ordinarily payable in respect of business so procured to an insurance agent6 the remuneration payable to the special agent in repect of policies of life insurance procured by him through insurance agents shall only be in the form of an overriding commissionexplanation—in this schedule "business in force" means the total sum assured with bonuses, without taking into account reinsurances, ceded or accepted, by an insurer in respect of the whole of the life insurance business on the woking day of the calendar year or the period covered by the revenue account furnished by such insurer under clause (b) or sub-section (2) of section 16, as the case may be, preceding the calendar year in question the eighth schedule (see section 52j) principales of compensationthe compensation to be given under section 52j shall be an amount equal to the value of the assets of the acquired insurer as on the day immediately before the appointed day, computed in accordance with the provisions of part i of this schedule less the total amount of liabilities thereof as on that day, computed in accordance with the provisions of part ii of this schedule part i assetsfor the purposes of this part, "value of asset" means the total of the following:—(a) the market value of any land or buildings; (b) the market value of any securities, shares, debentures, bonds and otherinvestments, held by the acquired insurerexplanation—for the purposes of this clause,—(i) securities of the central government, such as post office certificates and treasury savings deposits certificates and any other securities or certificates issued or to be issued under the small saving scheme of the central government, shall be valued at their encashable value as on the appointed day;(ii) where the market value of any government security such as the zamindari abolition bonds or other similar security, in respect of which the principal is payble in instalments, is not ascertainable or is, for any reason, not considered as reflecting the fair value thereo or as otherwise appropriate, the security shall be valued at such an amount as is considered reasonable, having regard to the instalments of principal and interest remaining to be paid, the period during which such instalments are payable, the yield of any security, issued by the government to which the security pertains and having the same or approximately the same maturity, and other relevant factors;(iii) where the market value of any security, share, debenture, bond of other investment is not considered reasonable by reason of its having been affected by abnormal factors, the investment may be valued on the basis of its average market value over any reasonable period;(iv) where the market value of any security, share, debenture, bond or other investment is not ascertainable, only such value, if any, shall be taken into account as is considered reasonable, having regard to the financial position of the issuing concern, the dividend paid by it during the preceding five years and other relevant factors; (c) the total amount of the premiums paid by the acquired insurer in respect of all leasehold properties, reduced in the case of each such premium by an amount which bears to such premium the same proportion as the expired term of the lease in respect of which such premium shall have been paid bears to the total term of the lease;(d) the written down value as per books, or the realisable value, as may be considered reasonable, of all furniture, fixtures and fittings;(e) the amount of debts due to the insurer, whether secured or unsecured, to the extent to which they are reasonably considered to be recoverable;(f) the amount of cash held by the insurer whether in deposit with a bank or otherwise;(g) the market or realisable value, as may be appropriate, of other assets appearing on the books of the insurer, no value being allowed for capitalised expenses, such as share selling commission, organisational expenses and brokerage, losses incurred and similar other items part ii liabilitiesthe total amount of the liabilities of the insurer shall include—(i) reserves for unexpired risks being in respect of each policy, such portion of the last premium paid as is proportionate to the unexpired portion of the policy in respect of which the premium was paid;(ii) the total amount of all other liabilities of the insurer existing on the appointed day, including all contingent liabilities which the central government of the acquiring insurer may reasonably be expected to be required to meet out of its own resources on or after the appointed day certain dividends not to be taken into accountno separate compensation shall be payable for any profits or any dividend in respect of any period immediately preceding the appointed day, for which, in the ordinary course, profits would have been transferred or dividend declared after the appointed day extract from the general insurance business nationalisation act, 1972 (57 of 1972) 25 (1) no person shall take out or renew any policy of insurance in respect of any property in india or any ship or other vessel or aircraft registered in india with an insurer whose principal place of business is outside india save with the prior permission of the central governmentproperties in india not to be with foreign insurer except with permission of central government(2) if any person contravenes any provision of sub-section (1), he shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to one thousand rupees, or with both extracts from the insurance regulatory and development authority act, 1999 (41 of 1999) definitions2 (1) in this act, unless the context otherwise requires,— (b) "authority" means the insurance regulatory and development authority established under sub-section (1) of section; (f) "intermediary or insurance intermediary" includes insurance brokers, reinsurance brokers, insurance consultants, surveyors and loss assessors; chapter ii insurance regulatory and development authority3 (1) with effect from such date as the central government may, by notification, appoint, there shall be established, for the purposes of this act, an authority to be called "the insurance regulatory and development authority"establishment and incorporation of authroity constitution of fund16 (1) there shall be constituted a fund to be called "the insurance regulatory and development authority fund" and there shall be credited thereto— (c) the percentage of prescribed premium income received from the insurer ———— a billfurther to amend the insurance act, 1938 and the general insurance business(nationalisation) act, 1972 and to amend the insurance regulatory and development authority act, 1999 ————(sh arun jaitley, minister of finance) the insurance laws (amendment) bill, 2015 [to be/as introduced in lok sabha] 1 page 19, line 50,- for "acknowledgment" read "acknowledgement" 2 page 20, line 46, - for "acknowledgment" read "acknowledgement" 3 page 26, line 18, - for "mis-statement" read "misstatement" 4 page 40, line 11,- for "(nationalisaton)" read "(nationalisation)" 5 page 48, line 1 of clause 52, - for "regulater" read "regulate" 6 page 48, line 2 of clause 52, - for "equirement" read "requirement" 7 page 49, line 3 of clause 71, - for "and general" read "and the general" 8 page 49, line 2 of clause 73,- for "and general" read "and the general" 9 page 50, line 3 of clause 77,- for "and general" read "and the general" 10 page 51, line 3 of clause 104, - for "of central" read "of the central" new delhi; february 27, 2015______ phalguna 8, 1936 (saka) | Parliament_bills | 036067b8-8154-52d0-be6c-25ca667bd8e7 |
bill no lxxv of 2005 the citizenship (amendment) bill, 2005 a billfurther to amend the citizenship act, 1955be it enacted by parliament in the fifty-sixth year of the republic of india as follows:—1 (1) this act may be called the citizenship (amendment) act, 2005short title and commencement(2) it shall be deemed to have come into force on the 28th day of june, 20055amendment of section 257 of 19552 in section 2 of the citizenship act, 1955 (hereinafter referred to as the principal act), in sub-section (1),—(i) for clause (ee), the following clause shall be substituted, namely:—'(ee) "overseas citizen of india" means a person registered as an overseas citizen of india by the central government under section 7a;';(ii) clause (gg) shall be omittedamendment of section 53 in section 5 of the principal act, in sub-section (1), in clause (g), for the words "two years", the words "one year" shall be substituted4 for section 7a of the principal act, the following section shall be substituted, namely:––substitution of new section for section7a5 "7a the central government may, subject to such conditions and restrictions as may be prescribed, on an application made in this behalf, register as an overseas citizen of india—registration of overseas citizens of india(a) any person of full age and capacity,— (i) who is citizen of another country, but was a citizen of india atthe time of, or at any time after, the commencement of the constitution; or10(ii) who is citizen of another country, but was eligible to become acitizen of india at the time of the commencement of the constitution; or(iii) who is citizen of another country, but belonged to a territorythat became part of india after the 15th day of august, 1947; or(iv) who is a child or a grand-child of such a citizen; or15(b) a person, who is a minor child of a person mentioned in clause (a):provided that no person, who is or had been a citizen of pakistan,bangladesh or such other country as the central government may, by notification in the official gazette, specify, shall be eligible for registration as an overseas citizen of india"205 the fourth schedule to the principal act shall be omittedomission of fourth schedule6 (1) the citizenship (amendment) ordinance, 2005 is hereby repealedrepeal and savingord 2 of 2005(2) notwithstanding such repeal, anything done or any action taken under the principal act, as amended by the said ordinance, shall be deemed to have been done or taken under the principal act, as amended by this act25 statement of objects and reasonsthe citizenship act, 1955 provides for the acquisition of citizenship, at the commencement of the constitution by birth, descent, registration, naturalization and incorporation of territory under certain circumstances, and also provides for the termination and deprivation of citizenship high powered committee on indian diaspora, constituted by the central government, inter alia, recommended the amendment of the said act to provide for grant of dual citizenship to persons of indian origin belonging to certain specified countries the central government has, accordingly, notified the citizenship (amendment) act, 2003 (6 of 2004) making provision for acquisition of overseas citizenship of india (oci) by the persons of indian origin (pios) of 16 specified countries other than pakistan and bangladesh the prime minister in the pravasi bhartiya divas, 2005 made a statement on oci scheme that the government has decided to grant oci to all overseas indians who migrated from india after 26th january, 1950 as long as their home countries allow dual citizenship under their local laws in order to implement the government's decision, an ordinance called the citizenship (amendment) ordinance, 2005 was promulgated on 28th june, 2005 to extend the scope of oci for pios of all countries except pakistan and bangladesh as long as their countries allow dual citizenship the said ordinance is proposed to be replaced by a bill by amending the provisions of the citizenship act, 1955 so as to —(i) expand the scope of grant of overseas citizenship of india to persons of indian origin of all countries except pakistan and bangladesh; and(ii) reduce the period of residence in india from two years to one year for the persons registered as overseas citizens of india to acquire indian citizenship 2 the bill seeks to replace the aforesaid ordinancenew delhi;shivraj v patilthe 21st july, 2005 annexure extracts from the citizenship act, 1955 (57 of 1955) interpretation2 (1) in this act unless the context otherwise requires,— (ee) "overseas citizen of india" means a person who—(i) is of indian origin being a citizen of a specified country, or (ii) was a citizen of india immediately before becoming a citizen of a specifiedcountry,and is registered as an overseas citizen of india by the central government under subsection (1) of section 7a; (gg) "specified country" means a country specified in the fourth schedule: provided that the central government may, by notification in the official gazette, amend the said schedule by way of addition or omission of any entry therein:provided further that every notification issued under this clause shall, as soon as may be, after it is made, be laid before each house of parliament; citizenships by registration5 (1) subject to the provisions of this section and such other conditions and restrictions as may be prescribed, the central government may, on an application made in this behalf, register as a citizen of india any person not being an illegal migrant who is not already such citizen by virtue of the constitution or of any other provision of this act if he belongs to any of the following categories, namely:—(a) a person of indian origin who is ordinarily resident in india for seven years before making an application for registration;(b) a person of indian origin who is ordinarily resident in any country or place outside undivided india;(c) a person who is married to a citizen of india and is ordinarily resident in india for seven years before making an application for registration;(d) minor children of persons who are citizens of india; (e) a person of full age and capacity whose parents are registered as citizens of india under clause (a) of this sub-section or sub-section (1) of section 6;(f) a person of full age and capacity who, or either of his parents, was earlier citizen of independent india, and has been residing in india for one year immediately before making an application for registration;(g) a person of full age and capacity who had been registered as an overseas citizen of india for five years, and who has been residing in india for two years before making an application for registrationexplanation 1— for the purposes of clauses (a) and (c), an applicant shall be deemed to be ordinarily resident in india if—(i) he has resided in india throughout the period of twelve months immediately before making an application for registration; and(ii) he has resided in india during the eight years immediately preceding the said period of twelve months for a period of not less than six yearsexplanation 2— for the purposes of this sub-section, a person shall be deemed to be of indian origin if he, or either of his parents, was born in undivided india or in such other territory which became part of india after the 15th day of august, 1947 overseas citizenshipregistration of overseas citizens7a (1) the central government may, subject to such conditions and restrictions including the condition of reciprocity as may be prescribed, on an application made in this behalf, register any person as an overseas citizen of india if—(a) that person is of indian origin of full age and capacity who is a citizen of a specified country; or6 of 2004(b) that person is of full age and capacity who has obtained the citizenship of a specified country on or after the commencement of the citizenship (amendment) act, 2003 and who was a citizen of india immediately before such commencement; or(c) that person is a minor of a person mentioned in clause (a) or clause (b)(2) the person registered as an overseas citizen of india under sub-section (1) shall be an overseas citizen of india as from the date on which he is so registered(3) no person who has been deprived of his indian citizenship under this act shall be registered as an overseas citizen of india under sub-section (1) except by an order of the central governmentexplanation—for the purposes of this section and sections 7b, 7c, and 7d, the expression "person of indian origin" shall mean a citizen of another country who—(i) was eligible to become a citizen of india at the time of the commencement of the constitution;(ii) belonged to a territory that became part of india after the 15th day of august,1947; and(iii) the children and grand-children of a person covered under clauses (i) and(ii), but does not include a person who is or had been at any time a citizen of pakistan, bangladesh or such other country as the central government may, by notification in the official gazette, specify the fourth schedule[ see section 2 (1)(gg)]1 australia 2 canada 3 finland 4 france 5 greece 6 ireland 7 israel 8 italy 9 netherlands 10 new zealand 11 portugal 12 republic of cyprus 13 sweden 14 switzerland 15 united kingdom 16 united states of america————abillfurther to amend the citizenship act, 1955————mgipmrnd—1703rs—22-7-2005 | Parliament_bills | bff7cb29-a113-5d7f-b261-a5cea2b280a9 |
30d (/) if the central government is of the opinion that the executive 'committee or any other committee of the central council is unable to perform or has made persistently defaults— (a) inthe performance of, the duties imposed on it by or under this act or has exceeded or abused its powers; of power of central government to dissolve executive committee for any other 'committee (b) cither wilfully or without sufficient cause in complying with any direction issued by the central government under section 30c, 1p the central government may, by a notification published, together with a statement of the reasons therefor, in the official gazette, dissolve the executive committee or such other commit 5 provided that before issue of such notification, the central government shall give a reasonable time to the executive committee or such other committee, as the case may be, to show cause why it should not be dissolved and shall consider the explanations and objections, if any, of the executive committee or the other committee (2) upon the publication of a notification under sub-section (1) dissolving the executive committee or, as the case may be, such other committee, 2 (a) all the members of the executive committee or the other committee shall, notwithstanding that their term of office had not expired, as from the date of dissolution, vacate their offices as such members; a5 (6) all powers and duties which may, by or under the provisions of this 'act, be exercised or performed by or on behalf ofthe executive committee or the other committee, during the period of dissolution, be exercised and performed by such person or persons as the central government may think fit from amongst the members ofthe central council: provided that the term of office of the person or persons so appointed under this sub-section shall not exceed a period of six months or till the time a new executive committee or such other committee is constituted, whichever is, earlier, 3 30e (1) ifthe central government is of the opinion that the president or the vice-president or the member of the executive committee or any other committee of the central council is unable to perform or has made persistently defaults - (a) in the performance of, the duties imposed on him under this act or has exceeded or abused his powers; or 35 (6) either wilfully or without sufficient cause in complying with any direction issued by the certtral government under section 30c, | power | of ||----------------|---------|| central | || government | || to | remove || president, | || vice-president | || or | meinber || executive | || committee | or || any | other || 'committee, | |the central government may remove from office the president or the vice-president or the member, as the case may be: 4p provided that before such removal, the central government shall give a reasonable opportunity of being heard to the president or the vice-president or the member, as the case may be, to show cause why he should not be removed from office and shall consider the explanations and objections, if any, of the president or the vice-president or the member, (2) upon the removal from office under sub-section (),— us(a) the president or the vice-president or the member shall, notwithstanding that his term of office had not expired, as from the date of removal from office, 'vacate the office as such president or vice-president or member; (6) all powers and duties which may, under the provisions of this act, be exercised or performed by the president or the vice-president, as the case may bbe, shall, during the period of removal from office, be exercised and performed 'by such person as the central government may think fit from amongst the members of the central council: provided that the term of office of the person so appointed under this subsection shall not exceed a period of six months or till the time anew president or the vice-president or the member, as the case may be, is elected in the manner provided under this act, whichever is earlier" 8 in section 32 of the principal act - amendment of section 32 (a) in sub-section (/), the brackets and figure "(j)" shall be omitted; (6) sub-section (2) shall be omitted, 9, in section 33 of the principal act,— 'amendment of section 33 (a) in sub-section (1), the brackets and figure "(/)" shall be omitted; 1s (6) sub-section (2) shall be omitted 10, after section 33 of the principal act, the following sections shall be inserted, namely:— | insertion | of ||--------------|-----------|| new | sections || 34 | and || "34 | (1) || order | || in | || writing, | || direct | || the | || central | || council | || to | || make | || any | || regulations | || or | || to | || amend | || or | || revoke | any || behalf | || power | of || central | || government | || to | issue || directions | for || making | or || (2) | if || specified | period, || revoke | the || as | || rules | and || be | || 35, | every || may | be after || period | of || successive | sessions, || session | or || modification | in || should | not || modified | form || modification | or || previously | done | statement of objects and reasons:'the homoeopathy central council act, 1973 (59 of 1973) (hcc act), provides for constitution of the central council of homoeopathy for regulation of the educational standards of homoeopathic medical colleges, maintenance of the central register of practitioners of homoeopathy and for matters connected therewith 2 the central council of homoeopathy was initially constituted through nomination of members in the year 1973 subsequently, elections to the said central council were conducted though the tenure of all the members of the said central council had expired in 2002, but it could not be reconstituted even after a lapse of more than two years this is due to not updating the state register of homoeopathy, at the instance of sitting members, a requisite for conducting elections in time sometimes, elections are delayed due to litigation and stay orders from court 3 the election for the central council of homoeopathy from bihar and maharashtra states could not be conducted till date and the members elected in 1989-90 are still continuing in the central council of homoeopathy it has been observed that such problem persists due to the existing provisions in section 7(1) of the homoeopathy central council 'act, 1973, which provide for term of five years from date of election or nomination, as the 'case may be, or until the election or nomination of the successor, whichever is longer 4, further, in the hcc act, 1973, there is no provision for removal of the president, 'vice-president of the couneil and also withdrawal of the member nominated to the couneil in case they commit some irregularity or unwanted activities, the department is of the opinion that the tenure of the members should not exceed five years and also there should be a provision for the removal of the president, vice-president or the members, 5, sometimes, the central council abuses and exceeds its powers and in such condi- 'a need to issue proper direction to the central council since there is no provision in hcc act, 1973 to give directions to the central council in case of any irregularity, the central government is not in a position to check such activities 6 the homoeopathy central council act, 1973 was amended with effect from 2812003 to check the mushroom growth of sub-standard homoeopathic medical colleges, increase in admission capacity and starting of new courses in such colleges the permission of the central government is mandatory for establishing new colleges or starting new courses of study the amendment shall require permission of the central government for existing homoeopathic medical college within a grace period of three years this will improve the standard of homoeopathic medical colleges in the country imparting training of homoeopathic education there is need to improve the standard of existing colleges, to bring uniformity of standard in existing homoeopathic colleges 7 in order to meet the requirements, it is proposed to amend the homoeopathy central council act, 1973 so as to make provisions— (a) to define homoeopathic medical college; (6) to nominate ex officio members; (6) for seeking permission for certain existing homoeopathic medical colleges; (d) to have fix tenure of elected or nominated members, (e) to remove the president, vice-president and members on the grounds of misconduct or incapacity; (f) to dissolve the executive committee of the central councit i defaults or abuses its powers; and (g) to give directions to the central council in public interest 8 the proposed amendments will ensure timely election to the central council of homoeopathy and streamline its functioning 9 the bill seeks to achieve above objectives new deut 'a ramadoss the th march, 2005 persistently annexure extracts from the homocopariy centra councit act, 1973 (590 1973)2 (1) in this act, unless the context otherwise requires,— definitions chapter il 'the central council and its committees3 (1) the central government shall, by notification in the official gazette, constitute forthe purposes of this acta central council consisting ofthe following members, namely: - constitution of central council 7 (1) the president, vice-president or a member of the central council shall hold office fora term of five years from the date of his election or nomination, asthe case may be, of until his successor shall have been duly elected or nominated, whichever is longer | term | of ||----------------|---------|| office | of || president, | || vice-president | || and | members || of | central || council | |(3) members of the central council shall be eligible for re-election or re-nomination 32 (1) the central government may, by notification in the official gazette, make rules to carry out the purposes of this act power to make rules (2) every rule made under this section shall be lai |, as soon as may be after it is made, before each house of parliament, while it is session, fora total period of thirty days which may be comprised in one session or in two or more 'successive sessions, and if, before the expiry ofthe session immediately following the session or the successive sessions aforesaid, both houses agree in making any modification in the ule 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, as the case may be; so, however, that any such m¢ ication or annulment shall be without prejudice to the validity of anything previously done under that rule | power ||--------------|| make || regulations, |33(/) the central council may, with the previous sanction of the central government, make, by notification in the official gazette, regulations generally to carry out the purposes of this act, and, without prejudice to the generality of this power, such regulations may provide for— (a) the manner of election of the president and the vice-president of the central council; (6) the management of the property of the central council and the maintenance and audit of its accounts; (6) the resignation of members of the central council; (d) the powers and duties of the president and vice-president; (e) the summoning and holding of meetings of the central council and the committees thereof, the times and places where such meetings are to be held, and the conduct of business thereat and the number of members necessary to constitute a quorum; (f the functions of the committees constituted under section 9; (g) the tenure of office, and the powers and duties of the registrar and other officers and servants of the central council; (ga) the form of the scheme, the particulars to be given in such scheme, the manner in which the scheme is to be preferred and the fee payable with the scheme under clause (b) of sub-section (2) of section 12a; (gb) any other factor under clause (g) of sub-section (7) of section 124; (h) the qualifications, appointment, powers and duties of, and procedure to be followed by, inspectors and visitors; (0 the courses and period of study of practical training to be undertaken, the subjects of examination and the standards of proficiency therein to be obtained, in any university, board or medical institution for grant of recognised medical qualification; ())the standards of staff, equipment, accommodation, training and other facilities for education in homoeopathy; (i) the conduct of professional examinations, qualifications of examiners and the conditions of admission to such examinations; (0) the standards of professional conduct and etiquette and code of ethics to be observed by practitioners of homoeopathy; (m) the particulars to be stated, and the proof of qualifications to be given in applications for registration under this act; (n) the manner in which and the conditions subject to which an appeal under section 25 may be preferred; (0) the fees to be paid on applications and appeals under this act; and (p) any matter for which under this act provision may be made by regulations (2) the central government shall cause every regulation made under this act to be laid, as soon as may be after it is made, before each house of parliament, while its in session, for 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 of the session immediately following the session or the suecessive sessions aforesaid, both houses agree in making any modification in the regulation or both houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form 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 regulation, | Parliament_bills | cda5e9ac-ed55-58dd-acb5-d1c85b2529b4 |
statement of objects and reasonsthis bill is introduced in pursuance of article 114(1) of the constitution of india, read with article 115 thereof, to provide for the appropriation out of the consolidated fund of india of the moneys required to meet the supplementary expenditure and the grants made by the lok sabha for expenditure of the central government on railways for the financial year 1992-93 presidents recommendation: under article 117 of the _ constitution of india _ mee" [copy of letter no' 92-b-402, dated the 2ist july, 1992 from sisic k jaffer sharief, minister of railways to the secretary-general, lok the president, having been informed of the subject matter of the sroposed appropriation (railways) no 3 bill, 1992, to authorise payand appropriation of certain further sums from and out of the solidated fund of india for the purposes of railways, recommends mder clauses (1) and (3) of article 117 of the constitution of india with clause (2) of article 115 thereof, the introduction in and consideration by lok sabha of the appropriation billcc k jaffer sharief | Parliament_bills | 927ee4f6-9c42-5239-b605-23a95d3636e5 |
to the customs ta,rilt""f (ameld/!ent) bill, 1981 (to bel as introduced in ipk sabha)- page 2, line 3,-after "(iv)" insert "1n1l new dellii; august 18 1981 sravatla 2'7, 1903 (saka) bill no, 100 !)~ 1981 the customs tariff (amendment) bill, 1981 a billfurther to amend the cwtoms tariff act, 1975 be it enacted by parliament in the thirty-second year of the republic of india as follows:-1 (1) this act may be called the customs tari1f (amendment) act, 1981 short title and commencement (2) it shall be deemed to have come into force on the 26th 5 day of july, 1981 | of | 1975 ||--------------------------|-----------------|| z | || in | || the | customs || tariff | || act, | || 1975 | || (hereinafter referred to | || u | || the | principal act), || first | || schedule, | in || 15,- | || amendment | || of | || first | || schedule | |10 (t) in heading no 1501106, in sub-heading no (1) and sub-heading no (2), for the entry in column (3), the entry "200%" ihall be substituted; (ii) in heading no 1507,-(a) in sub-heacling no (1), for the entries in columns (3) and (4), the entries "200%" and "190%" 15 shall, respectively, be substituted; (b) in sub-heading no (2), for the entries in colunms (3) and (4), the entries "200%" and "190% ", ihall, respectively, be substituted; , (c) in sub-headdng no (3), for the entries in columns (3) and (4), the entries "200%" and "190%" shall, reepectively, be subetitutedj (iii) in heading no 1508113, for the entzy in column (3), the entry c'200%" ahall be substituted; (it» heading no 1514/17, for the entry in column (3), the entry "200% t· shall be substituted repeal and savina 3 (1) the customs tariff (amendment) ordinance, 1981, 5 8 of ll1l is hereby repealed (2) notwithstanding such repeal, anything done or any action taken under the principal act as amended by the eaid ordinance, shall be deemed to have been done or ~ under the principal act as amended by this act 10 statement of objects and reasonswith a view to mopping up the difference bet ween the landed costs and the prevailing domestic market prices of imported vegetable ous and allied products, the president promulgated the customs tariff (amendment) ordinance, 1981 (9 of 1981), on the 26th july, 1981 the ordinance increased the basic duty of customs applicable to goods covered by chapter 15 of the first schedule to the customs tariff act, 1975, to 200%" and maintained th~ existing margin of preference of 10% ad v4zorem in respect of goods falling under heading no 1507 of the above schedule and imported from preferential areas the eftective rates of duty on vegetable ous and allied products were, however, fixed by notiftcatlons issued immediately after the promulgation of the ordinance 2 the bill aeeks to replace the aforesaid 0rdidance nnr d&m; the 13th auguat 1981 pre3ident's recommendation under article 117 of the constitution of india[copy of letter no si21 i 81-tru (cus), dated the 14th august, 1981 from shri r venkataraman, minister of finance to the secretary, lot sablia] the president, having been informed di the subject matter of the proposed bill, recommends under clause (l) of arucle u 7 of the constitution of india the introduction of the cu8tom1 tarif! (amendment) bill, 1981 in lot sabha "ats· ajfd ojla and '1'hz1k _ q4vag~ ji?rol)ucn; l1:a&paud kdible pats; ~ ~,~table wads c1iaptill 15 ~,tiad ~me fats cmd oils ~ thei, cle4~ product,; pnfj4~a edtble tat; aftim,al and wgetable w~b ~" ' | 1501/06 | animal (including ||-------------------------|-------------------------|| fish) | || fats | || and | oils, crude, refined or || purified: | || (i) | || not elsewhere spocified | || 00 | || fixed vegetable oils, fluid | or ||--------------------------------|----------------------------|| solid, crude, refined | or || p | || uri- | || fied: | || (i) | not elsewhere specified _ || (2) soya bean | || oil | || 60% | || 50% | || (3) | palm || oil | || 60% | 50% || animal | || or vegetable oils | and || fats, bojled, | || oxidised, | || dehydra- | || ted | || or | otherwise || modified; | || f~,twacids, | || | || acid | || oils | || from | |rdnins:~ fatty ~cohc?k; ,0-ceml atl4 gijurnl iy ; ani mal or vegetable oilj hydrolenaced or iolidi6ed by any ~ pr<xca; ,~ imitation lard and otaer prepared edible fats & bdl further to amend the customs tarfft act, 1975 | Parliament_bills | 74547003-2c76-5927-9dc4-8201d4785094 |
bill no lxxx of 2006 the code of criminal procedure (amendment) bill, 2006 a billfurther to amend the code of criminal procedure, 1973be it enacted by parliament in the fifty-seventh year of the republic of india as follows:—1 (1) this act may be called the code of criminal procedure (amendment) act, 2006short title and commencement(2) it shall come into force on such date as the central government may, by notification in the official gazette, appoint; and different dates may be appointed for different provisions of this act2 of 1974amendment of section 22 in section 2 of the code of criminal procedure, 1973 (hereinafter referred to as the principal act ), for clauses (w) and (x), the following clauses shall respectively be substituted, namely:—'(w)"summons-case" means a case relating to an offence triable summarily and not being a warrant-case;(wa) "victim" means a person who has suffered any loss or injury caused by reason of the act or omission for which the accused person has been charged and the expression "victim" includes his or her guardian or legal heir; (x) "warrant-case" means a case relating to an offence punishable with death, imprisonment for life or imprisonment for a term exceeding three years;'amendment of section 243 in section 24 of the principal act, in sub-section (8), the following proviso shall be inserted, namely:—"provided that the court may permit the victim to engage an advocate of his choice to co-ordinate with the prosecution in consultation with the central government or the state government, as the case may be, under this sub-section"amendment of section 264 in section 26 of the principal act, in clause (a), the following proviso shall be inserted, namely:—45 of 1860"provided that any offence under section 376 and sections 376a to 376d of the indian penal code shall be tried as far as practicable by a court presided over by a woman"5 in section 41 of the principal act,—amendment of section 41(i) in sub-section (1), for clauses (a) and (b), the following clauses shall respectively be substituted namely:—"(a) who commits, in the presence of a police officer, a cognizable offence;(b) against whom credible information has been received that he has committed a cognizable offence punishable with imprisonment for a term which may extend to seven years whether with or without fine, if the following conditions are satisfied, namely:—(i) the police officer has reason to believe on the basis of that informmation that such person has committed the said offence;(ii) the police officer is satisfied that such arrest is necessary— (a) to prevent such person from committing any further offence; or(b) for proper investigation of the offence or for the reason that detention of such person in custody is in the interest of his safety; or(c) to prevent such person from causing the evidence of the offence to disappear or tampering with such evidence in any manner; or(d) to prevent such person from making any inducement, threat or promise to any person acquainted with the facts of the case so as to dissuade him from disclosing such facts to the court or to the police officer; or(e) that unless such person is arrested, his presence in the court whenever required cannot be ensured; and the police officer shall record while making such arrest, his reasons in writing(ba) against whom credible information has been received that he has committed a cognizable offence punishable with imprisonment for a term which may extend to more than seven years whether with or without fine or with death sentence and the police officer has reason to believe on the basis of that information that such person has committed the said offence;"; (ii) for sub-section (2), the following sub-section shall be substituted, namely:—"(2) subject to the provisions of section 42, no person concerned in a non-cognizable offence or against whom a complaint has been made or credible information has been received or reasonable suspicion exists of his having so concerned, shall be arrested except under a warrant or order of a magistrate"6 after section 41 of the principal act, the following new sections shall be inserted, namely:—insertion of new sections 41a, 41b, 41c and 41d notice of appearance before police officer"41a (1) where the case falls under sub-section (1) of section 41, the police officer may, instead of arresting the person concerned, issue to him a notice of appearance requiring him to appear before the police officer issuing the notice or at such other place as may be specified in the notice and to co-operate with the police officer in the investigation of the offence referred to in sub-section (1) of section 41(2) where such a notice is issued to any person, it shall be the duty of that person to comply with the terms of the notice(3) where such person complies and continues to comply with the notice, he shall not be arrested in respect of the offence referred to in the notice unless, for reasons to be recorded, the police is of the opinion that he ought to be arrested(4) where such person, at any time, fails to comply with the terms of the notice, it shall be lawful for the police officer to arrest him for the offence mentioned in the notice, subject to such orders as may have been passed in this behalf by a competent court41b every police officer while making an arrest shall—(a) bear an accurate, visible and clear identification of his name which will facilitate easy identification;procedure of arrest and duties of the officer making arrest(b) prepare a memorandum of arrest which shall be—(i) attested by at least one witness, who is a member of the family of the person arrested or a respectable member of the locality where the arrest is made;(ii) countersigned by the person arrested; and(c) inform the person arrested, unless the memorandum is attested by a member of his family, that he has a right to have a relative or a friend named by him to be informed of his arrest 41c (1) the state government shall establish a police control room—control room at districts(a) in every district; and (b) at state level(2) the state government shall cause to be displayed on the notice board kept outside the control rooms at every district, the names and addresses of the persons arrested and the name and designation of the police officers who made the arrests(3) the control room at the police headquarters at the state level shall collect from time to time, details about the persons arrested, nature of the offence with which they are charged and maintain a database for the information of the general public41d when any person is arrested and interrogated by the police, the arrestee shall be entitled to meet an advocate of his choice during interrogation, though not throughout interrogation"right of arrested person to meet an advocate of his choice during interrogationamendment of section 467 in section 46 of the principal act, in sub-section (1), the following proviso shall be inserted, namely:—"provided that where a woman is to be arrested, unless the circumstances indicate to the contrary, her submission to custody on an oral intimation of arrest shall be presumed and, unless the circumstances otherwise require or unless the police officer is a female, the police officer shall not touch the person of the woman for making her arrest"8 for section 54 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 54"54 (1) when any person is arrested, he shall be examined by a registered medical practitioner soon after the arrest is made:examination of arrested person by medical practitionerprovided that where the arrested person is a female, the examination of the body shall be made only by or under the supervision of a female registered medical practitioner(2) the registered medical practitioner so examining the arrested person shall prepare the record of such examination, mentioning therein any injuries or marks of violence upon the person arrested, and the approximate time when such injuries or marks may have been inflicted(3) where an examination is made under sub-section (1), a copy of the report of such examination shall be furnished by the medical practitioner to the arrested person or the person nominated by such arrested person"9 after section 55 of the principal act, the following section shall be inserted, namely:—insertion of new section55a"55a it shall be the duty of the person having the custody of an accused to take reasonable care of the health and safety of the accused"health and safety of arrested person10 after section 60 of the principal act, the following section shall be inserted, namely:—insertion of new section60a"60a no arrest shall be made except in accordance with the provisions of this code or any other law for the time being in force providing for arrest"arrest to be made strictly according to the code11 in section 157 of the principal act, in sub-section (1), after the proviso, the following proviso shall be inserted, namely:—a m e n d m e n t of section157"provided further that in relation to an offence of rape, the investigation shall be conducted at the residence of the victim and, as far as practicable by a woman police officer, and if the victim is under eighteen years of age, she should be questioned in the presence of her parents or a social worker of the locality"12 in section 161 of the principal act, in sub-section (3), the following provisos shall be inserted, namely:—amendment of section 161"provided that statement made under this sub-section may also be recorded by audio-video electronic means:provided further that in respect of offences specified in sub-section (1) of section 164b, where such person is required to be forwarded to the nearest magistrate for recording his statement under that section, his statement to the police officer shall not be reduced into writing under this sub-section:provided also that where any statement has been recorded under section 164b, the police officer shall enclose a copy of such statement as part of his police diary recording therein that such person has made such statement before the metropolitan magistrate or, as the case may be, the judicial magistrate and proceed further investigation in accordance with the provisions of this code"13 for section 162 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 162 statement to police to be signed: use of statements in evidence"162 (1) the statement made by any person to a police officer in the course of an investigation under this chapter shall, if reduced into writing, be signed by the person making it and a copy of the statement as recorded shall be given forthwith free of cost by the police officer to the person who made the statement, under acknowledgement(2) every statement referred to in sub-section (1) shall contain the date, time and place as to when and where the statement was recorded and shall, subject to the provisions of sub-section (3) of section 173, be forwarded forthwith by the officer-in-charge of the police station to the magistrate empowered to take cognizance of the offence upon a police report(3) any statement referred to in sub-section (1) or any record thereof, whether in a police diary or otherwise, or any part of such statement or record shall not be used for any purpose, save as hereinafter provided, at any inquiry or trial in respect of any offence under investigation at the time when such statement was made:1 of 1872provided that when any witness is called for the prosecution in such inquiry or trial whose statement has been reduced into writing as aforesaid, any part of his statement, if duly proved, may be used by the accused, and with the permission of the court, by the prosecution, to contradict such witness in the manner provided by section 145 of the indian evidence act, 1872; and when any part of such statement is so used, any part thereof may also be used in the re-examination of such witness, but for the purpose only of explaining any matter referred to in his cross-examination1 of 1872(4) nothing in this section shall be deemed to apply to any statement falling within the provisions of clause (1) of section 32 of the indian evidence act, 1872 or to affect the provisions of section 27 of that actexplanation—an omission to state a fact or circumstance in the statement referred to in sub-section (1) may amount to contradiction if the same appears to be significant and otherwise relevant having regard to the context in which such omission occurs and whether any omission amounts to a contradiction in the particular context shall be a question of fact"14 in section 164 of the principal act, in sub-section (1), for the proviso, the following provisos shall be substituted, namely:—amendment of section 164"provided that any confession or statement made under this sub-section may also be recorded by audio-video electronic means in the presence of the advocate of the person accused of an offence:provided further that no confession shall be recorded by a police officer on whom any power of a magistrate has been conferred under any law for the time being in force"15 after section 164a of the principal act, the following section shall be inserted, namely:—insertion of new section 164brecording of confessions and statements in certain cases"164b (1) any police officer not being below the rank of sub-inspector making an investigation of any offence punishable with death or imprisonment for ten years or more, shall, in the course of such investigation, produce all persons whose statement appears to him to be material and essential for proper investigation of the case, to the nearest metropolitan magistrate or the judicial magistrate, as the case may be, for recording their statements(2) subject to the provisions of sub-section (3), the magistrate shall record the statements of such persons produced before him under sub-section (1) on oath and shall forward such statements so recorded to the magistrate by whom the case is to be inquired into or tried(3) the magistrate shall, before recording any statement of a person under sub-section (2), satisfy himself that such person is making the statement voluntarily and not under any inducement, threat or promise(4) copies of such statements shall be furnished to the police officer referred to in sub-section (1)"16 in section 167 of the principal act, in sub-section (2),—(a) in the proviso,—amendment of section 167(i) for clause (b), the following clause shall be substituted, namely:—"(b) no magistrate shall authorise detention of the accused in custody of the police under this section unless the accused is produced before him in person for the first time and subsequently every time till the accused remains in the custody of the police, but the magistrate may extend further detention in judicial custody on production of the accused either in person or through the medium of electronic video linkage"; (ii) for explanation ii, the following explanation shall be substituted, namely:—"explanation ii— if any question arises whether an accused person was produced before the magistrate as required under clause (b), the production of the accused person may be proved by his signature on the order authorising detention or by the order certified by the magistrate as to production of the accused person through the medium of electronic video linkage, as the case may be"; (b) after the proviso, the following proviso shall be inserted, namely:—"provided further that in case of woman under eighteen years of age, the detention shall be authorised to be in the custody of a remand home or recognised social institution"17 in section 172 of the principal act, after sub-section (1), the following sub-sections shall be inserted, namely:—amendment of section 172"(1a) the statements of witnesses recorded, during the course of investigation, under section 161 shall be inserted in the case diary(1b) the diary referred to in sub-section (1) shall be a bound volume and duly paginated"18 in section 173 of the principal act,—(a) after sub-section (1), the following sub-section shall be inserted, namely:—amendment of section 173"(1a) the investigation in relation to rape of a child may be completed within three months from the date on which the information was recorded by the officer-in-charge of the police station";(b) in sub-section (2), after clause (g), the following clause shall be inserted, namely;—45 of 1860"(h) whether the report of medical examination of woman has been attachedwhere investigation relates to an offence under sections 376, 376a, 376b, 376c or 376d of the indian penal code"19 after section 195 of the principal act, the following section shall be inserted, namely:—insertion of new section 195a45 of 1860"195a a witness or any other person may file complaint in relation to an offenceunder section 195a of the indian penal code"20 in section 198 of the principal act, in sub-section (6), for the words "fifteen years of age", the words "eighteen years of age" shall be substitutedprocedure for witnesses in case of threatening, etcamendmentof section 19821 in section 242 of the principal act, in sub-section (1), the following proviso shall be inserted, namely:—amendment of section 242"provided that the magistrate shall in advance supply to the accused, the statement of witnesses recorded during investigation by the police"22 in the principal act, chapter xx of the code containing sections 251 to 259shall be omittedomission of sections 251 to 25923 for section 260 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 260 power to try summarily"260 (1) notwithstanding anything contained in this code, any court or magistrate shall try in a summary way all summons-cases(2) when in summons-case, of a summary trial it appears to the magistrate that the nature of the case is such that it is improper to try the case summarily, the court or the magistrate, as the case may be, shall record reasons for not trying the case summarily"24 for section 262 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 262procedure for summary trials"262 (1) when in a summons-case the accused appears or is brought before the magistrate, the particulars of the offence of which he is accused shall be stated to him, and he shall be asked whether he pleads guilty or has any defence to make, but it shall not be necessary to frame a formal charge(2) if the accused pleads guilty, the magistrate shall record the plea as nearly as possible in the words used by the accused and may in his discretion, convict him thereon(3) where a summons has been issued under section 206 and the accused desires to plead guilty to the charge without appearing before the magistrate, he shall transmit to the magistrate, by post or by messenger, a letter containing his plea and also the amount of fine specified in the summons(4) if the magistrate does not convict the accused under sub-sections (2) and(3), the magistrate shall proceed to record evidence as provided under section 274 and conclude the trial as provided under sections 263 and 264(5) the magistrate may, if he thinks fit, on the application of the prosecution or the accused, issue a summon to any witness directing him to attend or to produce any document or other thing and may require that the reasonable expenses of the witness incurred in attending for the purposes of the trial be deposited in court(6) (a) if the summons has been issued on complaint, and on the day appointed for the appearance of the accused, or any day subsequent thereto on which the hearing may be adjourned the complainant does not appear, the magistrate shall, notwithstanding anything hereinbefore contained, acquit the accused, unless for some reason he thinks it proper to adjourn the hearing of the case to some other day(b) the provisions of clause (a) shall, so far as may be, apply also to cases where the non-appearance of the complainant is due to his death(7) if a complainant, at any time before a final order is passed in any case under this chapter, satisfies the magistrate that there are sufficient grounds for permitting him to withdraw his complaint against the accused, or if there be more than one accused, against all or any of them, the magistrate may permit him to withdraw the same, and shall thereupon acquit the accused against whom the complaint is so withdrawn(8) in any summons-case instituted otherwise than upon complaint, the magistrate of the first class or, with the previous sanction of the chief judicial magistrate, any other judicial magistrate, may, for reasons to be recorded by him, stop the proceedings at any stage without pronouncing any judgment and where such stoppage of proceedings is made after the evidence of the principal witnesses has been recorded, pronounce a judgment of acquittal, and in any other case release the accused, and such release shall have the effect of discharge(9) no sentence of imprisonment for a term exceeding six months or fine up to rupees three thousand or both shall be passed in case of any conviction under this chapter"25 in section 263 of the principal act, clause (f) shall be omittedamendment of section 26326 in section 274 of the principal act, in sub-section (1), after the words "summonscases tried", the word "summarily" shall be insertedamendment of section 27427 in section 275 of the principal act, in sub-section (1), the following proviso shall be inserted, namely:—amendment of section 275"provided that evidence of a witness under this sub-section may also be recorded by audio-video electronic means in the presence of the advocate of the person accused of the offence"28 in section 309 of the principal act,—(a) in sub-section (1), the following proviso shall be inserted, namely:—amendment of section 30945 of 1860"provided that when the inquiry or trial relates to an offence under sections376 to 376d of the indian penal code, the inquiry or trial shall, as far as possible, be completed within a period of two months from the date of commencement of the examination of witnesses"45 of 1860(b) in sub-section (2), after the third proviso and before explanation 1, the following proviso shall be inserted, namely:—"provided also that—(a) no adjournment shall be granted at the request of a party, except where the circumstances are beyond the control of that party;(b) the fact that the pleader of a party is engaged in another court, shall not be a ground for adjournment;(c) where the illness of a pleader or his inability to conduct the case for any reason, other than his being engaged in another court, is put forward as a ground for adjournments, the court shall not grant the adjournment unless it is satisfied that the party applying the adjournment could not have engaged another pleader in time;(d) where a witness is present in court but a party or his pleader is not present or the party or his pleader though present in court, is not ready to examine or cross-examine the witness, the court may, if thinks fit, record the statement of the witness and pass such orders as it thinks fit dispensing with the examination-in-chief or cross-examination of the witness, as the case may be"29 in section 313 of the principal act, after sub-section (4), the following subsection shall be inserted, namely:—amendment of section313"(5) the court may take help of prosecutor and defence counsel in preparing relevant questions which are to be put to the accused and the court may permit filing of written statement by the accused as sufficient compliance of this section"30 in section 320 of the principal act,—amendment of section320(i) in sub-section (1), for the table, the following table shall be substituted, namely:—"table| offence | section of the | person by whom offence ||---------------------------------------|-----------------------------|-------------------------------------|| indian penal | may be compounded | || code applicable | | || 1 | 2 | 3 || uttering words, etc, with deliberate | 298 | the person whose religious feelings || intent to wound the religious | are intended to be wounded | || feelings of any person | | || voluntarily causing hurt | 323 | the person to whom the hurt is || caused | | || voluntarily causing hurt by | 324 | ditto || dangerous weapons or means | | || voluntarily causing hurt on | 334 | ditto || provocation | | || voluntarily causing grievous hurt | 335 | ditto || on grave and sudden provocaton | | || wrongfully restraining or confining | 341, | the person restrained or confined || any person | 342 | || wrongfully confining a person for | 343 | the person confined || three days or more | | || wrongfully confining a person for | 344 | ditto || ten days or more | | || wrongfully confining a person in | 346 | ditto || secret | | || assault or use of criminal force | 352, | the person assaulted or to whom || 355, | criminal force is used | || 358 | | || 1 | 2 | 3 ||----------------------------------------|-------------------|--------------------------------------|| theft | 379 | the owner of the property stolen || dishonest misappropriation of | 403 | the owner of the property || property | misappropriated | || criminal breach of trust | 406 | the owner of the property in respect || of which the breach of trust has | | || been committed | | || criminal breach of trust by a carrier, | 407 | ditto || wharfinger, etc | | || dishonestly receiving stolen | 411 | the owner of the property stolen || property knowing it to be stolen | | || assisting in the concealment or | 414 | ditto || disposal of stolen property, knowing | | || it to be stolen | | || cheating | 417 | the person cheated || cheating by personation | 419 | ditto || fraudulent removal or concealment | 421 | the creditors who are affected || of property, etc, to prevent | thereby | || distribution among creditors | | || fraudulently preventing from being | 422 | ditto || made available for his creditors a | | || debt or demand due to the offender | | || fraudulent execution of deed of | 423 | the person affected thereby || transfer containing false statement | | || of consideration | | || fraudulent removal or concealment | 424 | ditto || of property | | || mischief, when the only loss or | 426, | the person to whom the loss or || damage caused is loss or damage to | 427 | damage is caused || a private person | | || mischief by killing or maiming | 428 | the owner of the animal || animal | | || mischief by killing or maiming | 429 | the owner of the cattle or animal || cattle, etc | | || mischief by injury to works of | 430 | the person to whom the loss or || irrigation by wrongfully diverting | damage is caused | || water when the only loss or damage | | || caused is loss or damage to private | | || person | | || 1 | 2 | 3 ||---------------------------------------|------------------------|--------------------------------------|| criminal trespass | 447 | the person in possession of the || property trespassed upon | | || house-trespass | 448 | ditto || house-trespass to commit an | 451 | the person in possession of the || offence (other than theft) punishable | house trespassed upon | || with imprisonment | | || using a false trade or property | 482 | the person to whom loss or injury is || mark | caused by such use | || counterfeiting a trade or property | 483 | the person to whom loss or injury is || mark used by another | caused by such use | || knowingly selling, or exposing or | 486 | ditto || possessing for sale or for | | || manufacturing purpose, goods | | || marked with a counterfeit property | | || mark | | || criminal breach of contract of | 491 | the person with whom the offender || service | has contracted | || adultery | 497 | the husband of the woman || enticing or taking away or detaining | 498 | ditto || with criminal intent a married | | || woman | | || defamation, except such cases as | 500 | the person defamed || are specified against section 500 of | | || the indian penal code in column 1 | | || of the table under sub-section ( | | || 2 | | || ) | | || printing or engraving matter, | 501 | ditto || knowing it to be defamatory | | || sale of printed or engraved | 502 | ditto || substance containing defamatory | | || matter, knowing it to contain such | | || matter | | || insult intended to provoke a breach | 504 | the person insulted || of the peace | | || criminal intimidation | 506 | the person intimidated || inducing person to believe himself | 508 | the person induced"; || an object of divine displeasure | | |(ii) in sub-section (2), for the table the following table shall be substituted, namely:—"tableoffencesection of theperson by whom offenceindian penalmay be compoundedcode applicable123causing miscarriage312the woman to whom miscarriage iscausedvoluntarily causing grievous hurt325the person to whom hurt is causedcausing hurt by doing an act so337dittorashly and negligently as to endanger human life or the personal safety of others causing grievous hurt by doing an338dittoact so rashly and negligently as to endanger human life or the personal safety of others assault or criminal force to woman354the woman assaulted to whom thewith intent to outrage her modestycriminal force was usedassault or criminal force in357the person assaulted or to whomattempting wrongfully to confine athe force was usedperson theft, by clerk or servant of381the owner of the property stolenproperty in possession of master criminal breach of trust by a clerk408the owner of the property in respector servantof which the breach of trust has beencommittedcheating a person whose interest418the person cheatedthe offender was bound, either by law or by legal contract, to protect cheating and dishonestly inducing420the person cheateddelivery of property or the making, alteration or destruction of a valuable security marrying again during the life-time494the husband or wife of the person soof a husband or wifemarryingdefamation against the president or the 500the person defamedvice-president or the governor of a state or the administrator of a union territory or a minister in respect of his public functions when instituted upon a complaint made by the public prosecutor uttering words or sounds or making509the woman whom it was intended togestures or exhibiting any objectinsult or whose privacy was intrudedintending to insult the modesty of aupon";woman or intruding upon the privacy of a woman(iii) for sub-section (3), the following sub-section shall be substituted, namely:—45 of 1860"(3) when an offence is compoundable under this section, the abetment of such offence or an attempt to commit such offence (when such attempt is itself an offence) or where the accused is liable under sections 34 or 149 of the indian penal code may be compounded in like manner"31 in section 327 of the principle act,—amendment of section 327(a) in sub-section (2), after the proviso, the following proviso shall be inserted, namely:—"provided further that in camera trial shall be conducted as far as practicable by a woman judge or magistrate"; (b) in sub-section (3), the following proviso shall be inserted, namely:—"provided that the ban on printing or publication of trial proceedings in relation to an offence of rape may be lifted, subject to maintaining confidentiality of name and address of the parties"32 in section 328 of the principal act,—amendment of section 328(a) after sub-section (1), the following sub-section shall be inserted, namely:—"(1a) if the civil surgeon finds the accused to be of unsound mind, he shall refer such person to a psychiatrist or clinical psychologist for care, treatment and prognosis of the condition and the psychiatrist or clinical psychologist, as the case may be, shall inform the magistrate whether the accused is suffering from unsoundness of mind or mental retardation"; (b) for sub-section (3), the following sub-sections shall be substituted, namely:—"(3) if such magistrate is informed that the person referred to in subsection (1a) is a person of unsound mind, the magistrate shall further determine whether the unsoundness of mind renders the accused incapable of entering defence and if the accused is found so incapable, the magistrate shall record a finding to that effect, and shall examine the record of evidence produced by the prosecution and after hearing the advocate of the accused but without questioning the accused, if he finds that no prima facie case is made out against the accused, he shall, instead of postponing the enquiry, discharge the accused and deal with him in the manner provided under section 330:provided that if the magistrate finds that a prima facie case is made out against the accused in respect of whom a finding of unsoundness of mind is arrived at, he shall postpone the proceeding for such period, as in the opinion of the psychiatrist or clinical psychologist, is required for the treatment of the accused, and order the accused to be dealt with as provided under section 330(4) if such magistrate is informed that the person referred to in subsection (1a) is a person with mental retardation, the magistrate shall further determine whether the mental retardation renders the accused incapable of entering defence, and if the accused is found so incapable, the magistrate shall order closure of the inquiry and deal with the accused in the manner provided under section 330"33 in section 329 of the principal act,—amendment of section 329(a) after sub-section (1), the following sub-section shall be inserted, namely:—"(1a) if during trial, the magistrate or court of sessions finds the accused to be of unsound mind, he or it shall refer such person to a psychiatrist or clinical psychologist for care and treatment, and the psychiatrist or clinical psychologist shall report to the magistrate or court whether the accused is suffering from unsoundness of mind"; (b) for sub-section (2), the following sub-sections shall be substituted, namely:—"(2) if such magistrate or court is informed that the person referred to in sub-section (1a) is a person of unsound mind, the magistrate or court shall further determine whether unsoundness of mind renders the accused incapable of entering defence and if the accused is found so incapable, the magistrate or court shall record a finding to that effect and shall examine the record of evidence produced by the prosecution and after hearing the advocate of the accused but without questioning the accused, if the magistrate of court finds that no prima facie case is made out against the accused, he or it shall, instead of postponing the trial, discharge the accused and deal with him in the manner provided under section 330:provided that if the magistrate or court finds that a prima facie case is made out against the accused in respect of whom a finding of unsoundness of mind is arrived at, he shall postpone the trial for such period, as in the opinion of the psychiatrist or clinical psychologist, is required for the treatment of the accused(3) if the magistrate or court finds that a prima facie case is made out against the accused and he is incapable of entering defence by reason of mental retardation, he or it shall not hold the trial and order the accused to be dealt with in accordance with section 330"34 for section 330 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 330 release of person of unsound mind pending investigtion or trial"330 (1) whenever a person if found under section 328 or section 329 to be incapable of entering defence by reason of unsoundness of mind or mental retardation, the magistrate or court, as the case may be shall, whether the case is one in which bail may be taken or not, order release of such person on bail:provided that the accused is suffering from unsoundness of mind or mental retardation which does not mandate in-patient treatment and a friend or relative undertakes to obtain regular out-patient psychiatric treatment from the nearest medical facility and to prevent from doing injury to himself or to any other person14 of 1987(2) if the case is one in which, in the opinion of the magistrate or court, as the case may be, bail cannot be granted or if an appropriate undertaking is not given, he or it shall order the accused to be kept in such a place where regular psychiatric treatment can be provided, and shall report the action taken to the state government:provided that no order for the detention of the accused in a lunatic asylum shall be made otherwise than in accordance with such rules as the state government may have made under the mental health act, 1987(3) whenever a person is found under section 328 or section 329 to be incapable of entering defence by reason of unsoundness of mind or mental retardation, the magistrate or court, as the case may be, shall keeping in view the nature of the act committed and the extent of unsoundness of mind or mental retardation, further determine if the release of the accused can be ordered:provided that—(a) if on the basis of medical opinion or opinion of a specialist, the magistrate or court, as the case may be, decide to order discharge of the accused, as provided under section 328 or section 329, such release may be ordered, if sufficient security is given that the accused shall be prevented from doing injury to himself or to any other person;(b) if the magistrate or court, as the case may be, is of opinion that discharge of the accused cannot be ordered, the transfer of the accused to a residential facility for persons of unsound mind or mental retardation may be ordered wherein the accused may be provided care and appropriate education and training"amendment of section 34435 in section 344 of the principal act, in sub-section (1), after the words "such evidence should be used in such proceeding", the words, figures and letter "then, subject to the provisions of section 344a" shall be inserted36 after section 344 of the principal act, the following section shall be inserted, namely:—insertion of new section 344a procedure for trial ofwitnessesdeposing contrary to statement made in section 164b"344a (1) if, at the time of delivery of any judgment or final order disposing of any judicial proceeding, a court of session or magistrate of the first class expresses an opinion to the effect that, any witness, whose statement recorded under sub-section (2) of section 164b in respect of an offence referred to in sub-section (2) of section 221, had subsequently retracted his statement in material particulars by stating inconsistent facts or had changed his version by narrating new facts which were destructive of the prosecution case, and the court of session or a magistrate of the first class is satisfied that such retraction, contradiction or change of version is of such a nature that the witness is guilty of knowingly or wilfully giving false evidence or fabricating false evidence with the intention that such evidence should be used in such proceeding, it or he may, if satisfied that it is necessary and expedient in the interest of justice that the witness should be tried summarily for giving or fabricating false evidence, take cognizance of the offence and may, after giving the offender a reasonable opportunity of showing cause why he should not be punished for such offence, try such offence summarily, and notwithstanding anything contained in the provisions of this code, sentence him to imprisonment for a term which shall not be less than three months but which may extend to two years and shall also be liable to fine:provided that the provisions of this section shall apply only where the giving or fabrication of false evidence relates to the conduct of the witness subsequent to the recording of his statement under sub-section (2) of section 164b:provided further that the prosecution may apply to the court or magistrate to initiate proceedings under this section against a witness who has retracted from his statement(2) the provisions of sub-sections (2), (3) and (4) of section 344 shall apply for trial of an offence under this section as they apply to the summary trial of an offence referred to in sub-section (1) of that section"37 after section 357 of the principal act, the following section shall be inserted, namely:—insertion of new section 357a victim compensation scheme"357a (1) every state government in co-ordination with the central government shall prepare a scheme for providing funds for the purpose of compensation to the victim or his dependents who have suffered loss or injury as a result of the crime and who require rehabilitation(2) whenever a recommendation is made by the court for compensation, the district legal service authority or the state legal service authority, as the case may be, shall decide the quantum of compensation to be awarded under the scheme referred to in sub-section (1)(3) if the trial court, at the conclusion of the trial, is satisfied, that the compensation awarded under section 357 is not adequate for such rehabilitation, or where the cases end in acquittal or discharge and the victim has to be rehabilitated, it may make recommendation for compensation(4) where the offender is not traced or identified, but the victim is identified, and where no trial takes place, the victim or his dependents may make an application to the state or the district legal services authority for award of compensation(5) on receipt of such recommendations or on the application under sub-section (4), the state or the district legal services authority shall, after due enquiry award adequate compensation by completing the enquiry within two months(6) the state or the district legal services authority, as the case may be, to alleviate the suffering of the victim, may order immediate first-aid facility or for medical benefits to be made available free of cost on the certificate of the police officer not below the rank of the officer-in-charge of the police station or a magistrate of the area concerned, or any other interim relief as the appropriate authority deems fit"38 in section 372 of the principal act, the following proviso shall be inserted, namely:—amendment of section 372"provided that the victim shall have a right to prefer an appeal against any order passed by the court acquitting the accused or convicting for a lesser offence or imposing inadequate compensation, and such appeal shall lie to the court to which an appeal ordinarily lies against the order of conviction of such court"39 in section 416 of the principal act, the words "order the execution of the sentence to be postponed, and may, if it thinks fit" shall be omitted40 after section 437 of the principal act, the following section shall be inserted, namely:—amendment of section 416insertion of new section 437a bail to require accused to appear before next appellate court"437a (1) before conclusion of the trial and before disposal of the appeal, the trial court trying the offence or the appellate court, as the case may be, shall require the accused to execute bail bonds with sureties, to appear before the higher court as and when such court issues notice in respect of any appeal or petition filed against the judgment of the respective court and such bail bonds shall be in force for six months(2) if such accused fails to appear, the bond stands forfeited and the procedure under section 446 shall be applicable"amendment of form 4541 in the second schedule to the principal act, in form no 45, after the figures"437", the figures and letter "437a" shall be inserted statement of objects and reasonsthe need to amend the code of criminal procedure, 1973 to ensure fair and speedy justice and to tone up the criminal justice system has been felt for quite sometime the law commission has undertaken a comprehensive review of the code of criminal procedure in its 154th report and its recommendations have been found very appropriate, particularly those relating to provisions concerning arrest, custody and remand, procedure for summons and warrant-cases, compounding of offences, victimology, special protection in respect of women and inquiry and trial of persons of unsound mind also, as per the law commission's 177th report relating to arrest, it has been found necessary to revise the law to maintain a balance between the liberty of the citizens and the society's interest in maintenance of peace as well as law and order2 the need has also been felt to include measures for preventing the growing tendency of witnesses being induced or threatened to turn hostile by the accused parties who are influential, rich and powerful at present, the victims are the worst sufferers in a crime and they don't have much role in the court proceedings they need to be given certain rights and compensation, so that there is no distortion of the criminal justice system the application of technology in investigation, inquiry and trial is expected to reduce delays, help in gathering credible evidences, minimise the risk of escape of the remand prisoners during transit and also facilitate utilisation of police personnel for other duties there is an urgent need to provide relief to women, particularly victims of sexual offences, and provide fair-trial to persons of unsound mind who are not able to defend themselves to expedite the trial of minor offences, definition of warrant-case and summons-case are to be changed so that more cases can be disposed of in a summary manner3 the code of criminal procedure (amendment) bill, 2006 seeks to achieve the above objectivesnew delhi;shivraj v patilthe 14th august, 2006 notes on clausesclause 2 amends the definition of "summons-case" and "warrant-case" it defines summons-case as a case triable summarily and not being a warrant-case, and warrant-case as a case punishable with death, imprisonment for life or imprisonment for a term exceeding three years this clause introduces a definition of "victim" to confer certain rights on the guardians and legal heirs of the victimclause 3 amends section 24 relating to appointment of public prosecutors a proviso is added to sub-section (8) so as to empower the court to permit the victim to engage an advocate of his choice to co-ordinate with the prosecution in consultation with the central or the state government, as the case may beclause 4 amends section 26 relating to courts by which offences are triable a proviso is inserted in clause (a) of the said section so as to provide that any offence under section376 and sections 376a to 376d of the indian penal code, 1860 shall be tried as far as particable by a court presided over by a womanclause 5 amends section 41 relating to power of police to arrest without warrant it amends clauses (a) and (b) of sub-section (1) so as to provide that the powers of arrest conferred upon the police officer must be exercised after reasonable care and justification and that such arrest is necessary and required under the section amendment is also made in sub-section (2) of section 41 so as to provide that subject to the provisions of section 42 relating to arrest on refusal to give name and residence, no person shall be arrested in a non-cognizable offence except under a warrant or order of a magistrateclause 6 inserts new sections 41a, 41b, 41c and 41d section 41a provides that where a case falls under sub-section (1) of section 41, the police officer may, instead of arresting the person concerned, issue to him a notice of appearance requiring him to appear before the police officer section 41b lays down the procedure of arrest and duties of officer making arrest section 41c requires the state government to establish a police control room in every district and at the state level, where the names and addresses of the persons arrested, nature of offences with which they are charged, and the name and designation of the police officers who made the arrest are to be displayed section 41d makes provisions for right of the arrested persons to meet an advocate of his choice during the interrogation, though not throughout interrogationclause 7 amends section 46 relating to how arrest is to be made a proviso is added to sub-section (1) so as to provide that where a woman is to be arrested, unless the circumstances otherwise require or unless the police officer is a female, the police officer shall not touch the person of the woman to arrest herclause 8 substitutes section 54 relating to examination of the arrested person by medical practitioner the proposed amendment makes it obligatory on the part of the state to have the arrested person examined by a registered medical practitioner soon after the arrest is made it also provides that where the arrested person is a female, the examination of the body shall be made only by or under the supervision of a female registered medical practitionerclause 9 inserts a new section 55a so as to make it obligatory on the part of the person having the custody of the accused to take reasonable care of the health and safety of the accusedclause 10 inserts a new section 60a with a view to prohibiting arrest except in accordance with the code or any other law for the time being in force providing for arrestclause 11 amends section 157 relating to procedure for investigation a proviso is added to sub-section (1) so as to provide that in relation to an offence of rape, the investigation shall be conducted at the residence of the victim and, so far as practicable by a woman police officer it also makes provision for a victim under eighteen years of age to be questioned in the presence of her parents or a social worker of the localityclause 12 amends section 161 relating to examination of witnesses by police three provisos are added to sub-section (3) the first proviso provides for recording of statement of witnesses by police by audio-video electronic means the second proviso provides that in respect of offences specified in sub-section (1) of section 164b where such person is required to be forwarded to the nearest magistrate for recording his statement under that section, his statement to the police officer shall not be reduced into writing under this sub-section the third proviso provides that where any statement has been recorded under section 164b, the police officer shall enclose a copy of such statement as part of his police diary recording therein that such person has made such statement before the metropolitan magistrate or the judicial magistrate, as the case may beclause 13 substitutes section 162 to provide that the statement made by any person to a police officer in the course of an investigation under chapter xii shall, if reduced into writing, be signed by the person making it and copy of the statement as recorded shall be given forthwith free of cost by the police officer to the person who made the statement under acknowledgementclause 14 amends section 164 relating to recording of confessions and statementsit provides that any confession or statement made may also be recorded by audio-video electronic means in the presence of the advocate of the person accused of an offenceclause 15 inserts a new section 164b to require any police officer not below the rank of sub-inspector, in the course of investigation of any offence punishable with death or imprisonment for ten years or more, to produce all persons whose statement appears to him to be material and essential for proper investigation of the case, to the nearest metropolitan magistrate or judicial magistrate, as the case may be, for recording their statementsclause 16 amends section 167 relating to procedure when investigation cannot be completed in twenty-four hours it amends proviso to sub-section (2) of section 167 in order to make provision for the magistrate to extend further detention in judicial custody of the accused also through the medium of electronic video linkage except for the first time where the production of the accused in person is required the clause also inserts a further proviso to the said sub-section (2) to provide that in the case of a woman under eighteen years of age, the detention shall be authorised to be in the custody of a remand home or recognised social institutionclause 17 amends section 172, relating to diary of proceedings in investigationtwo new sub-sections (1a) and (1b) are inserted so as to provide that the statements of witnesses recorded during the course of investigation under section 161 shall be recorded in the case diary and that such diary shall be a bound volume and duly paginatedclause 18 amends section 173 relating to report of police officer on completion of investigation a new sub-section (1a) is inserted with a view to provide that the investigation of the offence of rape of a child shall be completed within three months from the date on which the information was recorded by the officer-in-charge of the police station a new clause (h) is added to sub-section (2) of section 173 to ensure that the police report in cases of rape and custodial rape includes the report of medical examination where investigation relates to an offence under sections 376, 376a to 376d of the indian penal codeclause 19 inserts a new section 195a in the code to make provision for a witness or any other person on his behalf to file complaints in relation to an offence under section 195a of the indian penal codeclause 20 amends section 198 relating to prosecution for offences against marriageit amends sub-section (6) so as to raise the age limit of the wife from 15 years to 18 years to provide that no court shall take cognizance of an offence under section 376 of the indian penal code where such offence is alleged by a man's own wife being under eighteen years of ageclause 21 amends section 242 relating to evidence for prosecution a proviso is added to sub-section (1) so as to provide that in the evidence for prosecution the magistrate shall, in advance, supply to the accused, the statement of witnesses recorded during investigation by the policeclause 22 omits chapter xx of the code containing sections 251 to 259 relating to trial of summons-cases by magistratesclause 23 substitutes section 260 so as to provide that all summons-cases shall be tried in a summary way instead of making such summary trial discretionaryclause 24 substitutes section 262 in order to lay down the procedure for trying summons-cases summarilyclause 25 amends section 263 relating to record in summary trials clause (f), which refers to records to be maintained by magistrate in summary trials is omitted the proposed amendment is consequential in natureclause 26 amends section 274 of the code as a consequential amendment of all summons-cases being summarily triedclause 27 amends section 275 of the code relating to record in warrant cases subsection (1) relates to taking of evidence of each witness a proviso is proposed in the said sub-section so as to provide that evidence of a witness may also be recorded by audiovideo electronic means in the presence of the advocate of the accusedclause 28 amends section 309 of the code relating to power to postpone or adjourn proceedings the clause inserts a proviso to sub-section (1) in order to prevent trials in rape cases including child rape cases, from being unduly delayed by providing that the inquiry or trial in such cases shall, as far as possible, be completed within a period of two months from the date of commencement of the examination of witnesses this clause inserts another proviso to sub-section (2) specifying the circumstances where adjournment shall not be granted by the courtclause 29 amends section 313 of the code relating to power of the court to examine the accused the clause inserts a new sub-section (5) to the said section so as to eliminate delay in trial, by providing that the court may take help of prosecutor and defence counsel in preparing relevant questions to be put to the accusedclause 30 amends section 320 relating to compounding of offences punishable under sections of the indian penal code specified in the table provided under the section it substitutes the tables in sub-sections (1) and (2) in order to bring more offences under the category of offences compoundable by the parties themselves without the intervention of the courtclause 31 amends section 327 of the code which deems criminal court to be an open court sub-section (2) of the said section relates to in camera trials in case of certain offences the clause seeks to provide that in camera trial under sub-section (2) of the said section shall be conducted as far as practicable by a woman judge or magistrate a proviso is also added to sub-section (3) of the said section so as to lift the ban on printing or publication of trial proceedings in relation to an offence of rape, subject to maintaining confidentiality as to identity of the partiesclauses 32 and 33 amend sections 328 and 329 related to procedure of enquiry and trial in case of person of unsound mind the clauses provide that if the magistrate finds that the accused is incapable of making his defence due to unsoundness of mind, to refer such a person for appropriate medical treatment in accordance with section 330clause 34 substitutes section 330 which provides for medical treatment of an accused person of unsound mind pending the trial it also provides that no order for the detention of the accused in a lunatic asylum shall be made otherwise than in accordance with such rules as the state government may have made under the mental health act, 1982clause 35 amends section 344 of the code relating to summary procedure for trial for giving false evidence amendment is made in sub-section (1) of section 344, consequential to insertion of a new section 344a relating to procedure for trial of witnesses deposing contrary to statement made in section 164bclause 36 inserts a new section 344a so as to provide summary procedure for trial of witnesses deposing contrary to the statement recorded under sub-section (2) of section164b the punishment for perjury has been increased to imprisonment for a term which shall not be less than three months but which may extend to two years and shall also be liable to fine it also provides the court or magistrate to initiate proceedings under this section against a witness who has retracted from his statementclause 37 inserts a new section 357a in order to provide for the state government to prepare, in coordination with the central government, a scheme called "victim compensation scheme" for the purpose of compensation to the victim or his dependants who have suffered loss or injury as a result of the crimeclause 38 amends section 372 of the code relating to appeals from judgment or order of a criminal court it gives to the victim the right to prefer an appeal against any adverse order passed by the trial courtclause 39 amends section 416 of the code relating to postponement of capital sentence to pregnant woman it provides for the high court to postpone execution of the sentence and also to commute the sentence to imprisonment for life in case a woman accused to death is found to be pregnantclause 40 inserts a new section 437a to provide for the court to require accused to execute bail bonds with sureties to appear before the higher court as and when such court issues notice in respect of an appeal against the judgment of the respective courtclause 41 amends from 45 of the second schedule to the code this amendment is consequential to the insertion of a new section 437a financial memorandumclause 37 of the bill provides for preparation of a scheme for providing funds for the purpose of compensation to the victim or his dependants who have suffered loss or injury as a result of the crime and who require rehabilitation every state government will prepare the scheme in coordination with the central government the scheme also provides for immediate first-aid or any other interim relief as deemed fit the state governments themselves would bear the expenditure on execution of the scheme the central government would have to bear the expenditure in respect of operation of the scheme in those union territories which do not have a consolidated fund of their own provision for such expenditure would be made in the appropriate budget for the union territory concerned as and when the scheme in finalised and made operational it is, therefore, not possible to give an estimate of the expenditure involved (recurring and non-recurring) in this behalf at this stage however, the proposal for execution of the scheme in union territories would be processed in consultation with the ministry of finance (department of expenditure) | Parliament_bills | a088314e-ed90-5c7c-8f27-624e5be981d2 |
memorandum regarding delegated legislationclause 6 of the bill empowers the central government to make rules for carrying out the purposes of this bill the rules will relate to matters of details only the delegation of legislative power is of normal character | Parliament_bills | 6f703579-f8ec-520a-9069-b97c2db4f3ff |
bill no 261 of 2018 the aadhaar and other laws (amendment) bill, 2018 a billto amend the aadhaar (targeted delivery of financial and other subsidies, benefits and services) act, 2016 and further to amend the indian telegraph act, 1885 and the prevention of money-laundering act, 2002 be it enacted by parliament in the sixty-ninth year of the republic of india as follows:— part i preliminary part ii amendments to the aadhaar (targeted delivery of financial and other subsidies, benefits and services) act, 2016amendment of section 22 in section 2 of the aadhaar (targeted delivery of financial and other subsidies, benefits and services) act, 2016 (hereafter in this part referred to as the principal act),—518 of 2016(i) for clause (a), the following clause shall be substituted, namely:—'(a) "aadhaar number" means an identification number issued to an individual under sub-section (3) of section 3, and includes any alternative virtual identity generated under sub-section (4) of that section;';10(ii) after clause (a), the following clause shall be inserted, namely:—'(aa) "aadhaar ecosystem" includes enrolling agencies, registrars, requesting entities, offline verification-seeking entities and any other entity or group of entities as may be specified by regulations;'; (iii) after clause (b), the following clauses shall be inserted, namely:—15'(ba) "adjudicating officer" means an adjudicating officer appointed under sub-section (1) of section 33b;(bb) "appellate tribunal" means the appellate tribunal referred to in sub-section (1) of section 33c;'; (iv) after clause (i), the following clause shall be inserted, namely:—20'(ia) "child" means a person who has not completed eighteen years of age;'; (v) after clause (p), the following clauses shall be inserted, namely:—25'(pa) "offline verification" means the process of verifying the identity of the aadhaar number holder without authentication, through such offline modes as may be specified by regulations;(pb) "offline verification-seeking entity" means any entity desirous of undertaking offline verification of an aadhaar number holder;'amendment of section 3303 in section 3 of the principal act, after sub-section (3), the following sub-section shall be inserted, namely:—"(4) the aadhaar number issued to an individual under sub-section (3) shall be a twelve-digit identification number and any alternative virtual identity as an alternative to the actual aadhaar number of an individual that shall be generated by the authority in such manner as may be specified by regulations" 4 after section 3 of the principal act, the following section shall be inserted, namely:—insertion of new section 3a35aadhaar number of children"3a(1) the enrolling agency shall, at the time of enrolment of a child, seek the consent of the parent or guardian of the child, and inform the parent or guardian, the details specified under sub-section (2) of section 340(2) a child who is an aadhaar number holder may, within a period of six months of attaining the eighteen years of age, make an application to the authority for cancellation of his aadhaar number, in such manner as may be specified by regulations and the authority shall cancel his aadhaar number45(3) notwithstanding anything in section 7, a child shall not be denied any subsidy, benefit or service under that section in case of failure to establish his identity by undergoing authentication, or furnishing proof of possession of aadhaar number, or in the case of a child to whom no aadhaar number has been assigned, producing an application for enrolment"amendment of section 45 in section 4 of the principal act, for sub-section (3), the following sub-sections shall be substituted, namely:—5"(3) every aadhaar number holder to establish his identity, may voluntarily use his aadhaar number in physical or electronic form by way of authentication or offline verification, or in such other form as may be notified, in such manner as may be specified by regulationsexplanation—for the purposes of this section, voluntary use of the aadhaar number by way of authentication means the use of such aadhaar number only with the informed consent of the aadhaar number holder10(4) an entity may be allowed to perform authentication, if the authority is satisfied that the requesting entity is—(a) compliant with such standards of privacy and security as may be specified by regulations; and15(b) (i) permitted to offer authentication services under the provisions of any other law made by parliament; or(ii) seeking authentication for such purpose, as the central government in consultation with the authority, and in the interest of state, may prescribe (5) the authority may, by regulations, decide whether a requesting entity shall be permitted the use of the actual aadhaar number during authentication or only an alternative virtual identity20(6) every requesting entity to whom an authentication request is made by an aadhaar number holder under sub-section (3) shall inform to the aadhaar number holder of alternate and viable means of identification and shall not deny any service to him for refusing to, or being unable to, undergo authentication25(7) notwithstanding anything contained in the foregoing provisions, mandatory authentication of an aadhaar number holder for the provision of any service shall take place if such authentication is required by a law made by parliament" 6 in section 8 of the principal act,—amendment of section 8(a) in sub-section (2),—30(i) in clause (a), after the words "consent of an individual", the words ", or in the case of a child obtain the consent of his parent or guardian" shall be inserted;(ii) after clause (b), the following proviso shall be inserted, namely:—35"provided that the requesting entity shall, in case of failure to authenticate due to illness, injury or infirmity owing to old age or otherwise or any technical or other reasons, provide such alternate and viable means of identification of the individual, as may be specified by regulations";(b) in sub-section (3), after the words "for authentication,", the words "or in the case of a child, his parent or guardian" shall be inserted407 after section 8 of the principal act, the following section shall be inserted, namely:—insertion of new section 8a"8a(1) every offline verification of an aadhaar number holder shall be performed in accordance with the provisions of this sectionoffline verification of aadhaar number(2) every offline verification-seeking entity shall,—(a) before performing offline verification, obtain the consent of an individual, or in the case of a child, his parent or guardian, in such manner as may be specified by regulations; and(b) ensure that the demographic information or any other information collected from the individual for offline verification is only used for the purpose of such verification5(3) an offline verification-seeking entity shall inform the individual undergoing offline verification, or in the case of a child, his parent or guardian the following details with respect to offline verification, in such manner as may be specified by regulations, namely:—(a) the nature of information that may be shared upon offline verification; (b) the uses to which the information received during offline verification may be put by the offline verification-seeking entity; and10(c) alternatives to submission of information requested for, if any(4) no offline verification-seeking entity shall—(a) subject an aadhaar number holder to authentication;15(b) collect, use, or store an aadhaar number or biometric information of any individual for any purpose;(c) take any action contrary to any obligation on it as may be specified by regulations"8 for section 21 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 2120"21 (1) the authority shall appoint such officers and employees as may be required for the discharge of its functions under this actofficers and other employees of authority(2) the salaries and allowances payable to, and the other terms and conditions of service of, the officers and employees of the authority shall be such as may be specified by regulations"259 after section 23 of the principal act, the following section shall be inserted, namely:—insertion of new section 23a"23a (1) the authority may for the discharge of its functions under this act, or any rules or regulations made thereunder, by order, issue such directions from time to time to any entity in the aadhaar ecosystem, as it may consider necessarypower of authority to issue directions30(2) every direction issued under sub-section (1) shall be complied with by the entity in the aadhaar ecosystem to whom such direction is issued" 10 for section 25 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 25 fund35"25 (1) there shall be constituted a fund to be called the unique identification authority of india fund and there shall be credited thereto—(a) all grants, fees and charges received by the authority under this act; and(b) all sums received by the authority from such other sources as may be decided upon by the central government (2) the fund shall be applied for meeting—40(a) the salaries and allowances payable to the chairperson and members and administrative expenses including the salaries, allowances and pension payable to or in respect of officers and other employees of the authority; and(b) the expenses on objects and for purposes authorised by this act"11 in section 29 of the principal act,—amendment of section 29(a) for sub-section (3), the following sub-section shall be substituted, namely:—"(3) no identity information available with a requesting entity or offline verification-seeking entity shall be—5| ( ||--------------------------------------------------------------------------------|| to the individual at the time of submitting any information for authentication || or offline verification; or |10| ( ||--------------------------------------------------------------------------------|| to the individual at the time of submitting any information for authentication || or offline verification: |provided that the purposes under clauses (a) and (b) shall be in clear and precise language understandable to the individual";(b) in sub-section (4), for the words "or core biometric information", the words", demographic information or photograph" shall be substituted1512 in section 33 of the principal act,—amendment of section 33(i) in sub-section (1),—(a) for the words "district judge", the words "judge of a high court"shall be substituted;20(b) in the proviso, after the words "hearing to the authority", the words"and the concerned aadhaar number holder" shall be inserted;(c) after the proviso, the following proviso shall be inserted, namely:—"provided further that the core biometric information shall not be disclosed under this sub-section"25(ii) in sub-section (2), for the words "joint secretary", the word "secretary"shall be substituted 13 after chapter vi of the principal act, the following chapter shall be inserted, namely:—insertion of new chapter via "chapter via civil penalties30penalty for failure to comply with provisions of this act, rules, regulations and directions3533a (1) where an entity in the aadhaar ecosystem fails to comply with the provision of this act, the rules or regulations made thereunder or directions issued by the authority under section 23a, or fails to furnish any information, document, or return of report required by the authority, such entity shall be liable to a civil penalty which may extend to one crore rupees for each contravention and in case of a continuing failure, with additional penalty which may extend to ten lakh rupees for every day during which the failure continues after the first contravention(2) the amount of any penalty imposed under this section, if not paid, may be recovered as if it were an arrear of land revenuepower to adjudicate4033b (1) for the purposes of adjudication under section 33a and imposing a penalty thereunder, the authority shall appoint an officer of the authority, who is not below the rank of a joint secretary to the government of india and possessing such qualification and experience as may be prescribed, to be an adjudicating officer for holding an inquiry in such manner as may be prescribed(2) no inquiry under sub-section (1) shall be initiated except by a complaint made by the authority(3) while holding an inquiry, the adjudicating officer shall—(a) provide the entity in the aadhaar ecosystem against whom complaint is made, an opportunity of being heard;5(b) have the power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which, in the opinion of the adjudicating officer, may be useful for or relevant to the subject matter of the inquiry10(4) if the adjudicating officer, on such inquiry, is satisfied that the entity in the aadhaar ecosystem has failed to comply with any provision of this act or the rules or regulations made thereunder or directions issued by the authority under section 23a, or has failed to furnish any information, document, or return of report required by the authority, the adjudicating officer may, by order, impose such penalty under section 33a as he thinks fit24 of 199715appeals to appellate tribunal33c (1) the telecom disputes settlement and appellate tribunal established under section 14 of the telecom regulatory authority of india act, 1997, shall be the appellate tribunal for the purposes of hearing appeals against the decision of the adjudicating officer under this act20(2) a person or entity in the aadhaar ecosystem aggrieved by an order of the adjudicating officer under section 33b, may prefer an appeal to the appellate tribunal within a period of forty-five days from the date of receipt of the order appealed against, in such form and manner and accompanied with such fee as may be prescribed:provided that the appellate tribunal may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period25(3) on receipt of an appeal under sub-section (2), the appellate tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against(4) the appellate tribunal shall send a copy of every order made by it to the parties to the appeal and to the adjudicating officer30(5) any appeal filed under sub-section (2) shall be dealt with by the appellate tribunal as expeditiously as possible and every endeavour shall be made by it to dispose of the appeal within six months from the date on which it is presented to it35(6) the appellate tribunal may, for the purpose of deciding an appeal before it, call for the records relevant to disposing of such appeal and make such orders as it thinks fit24 of 1997procedure and powers of the appellate tribunal33d the provisions of sections 14-i to 14k (both inclusive), 16 and 17 of the telecom regulatory authority of india act, 1997 shall, mutatis mutandis, apply to the appellate tribunal in the discharge of its functions under this act, as they apply to it in the discharge of its functions under that act40appeal to supreme court of india5 of 190833e (1) notwithstanding anything contained in the code of civil procedure, 1908 or in any other law for the time being in force, an appeal shall lie against any order, not being an interlocutory order, of the appellate tribunal to the supreme court on any substantial question of law arising out of such order45(2) no appeal shall lie against any decision or order made by the appellate tribunal which the parties have consented to(3) every appeal under this section shall be preferred within a period of forty-five days from the date of the decision or order appealed against:provided that the supreme court may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period5civil court not to have jurisdiction33f no civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which an adjudicating officer appointed under this act or the appellate tribunal is empowered, by or under this act to determine, and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this act"amendment of section 381014 in section 38 of the principal act, for the words "three years", the words "ten years" shall be substitutedamendment of section 3915 in section 39 of the principal act, for the words "three years", the words "ten years" shall be substituted16 for section 40 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 4015"40 whoever,—| ( | a | ) being a requesting entity, uses the identity information of an individual ||----------------------------------------------------|-----|-------------------------------------------------------------------------------|| in contravention of sub-section ( | 2 | ) of section 8; or || ( | b | ) being an offline verification-seeking entity, uses the identity information || of an individual in contravention of sub-section ( | 2 | ) of section 8a, || penalty for | | || unauthorised | | || use by | | || requesting | | || entity or offline | | || verification- | | || seeking entity | | |20amendment of section 42shall be punishable with imprisonment which may extend to three years or with a fine which may extend to ten thousand rupees or, in the case of a company, with a fine which may extend to one lakh rupees or with both" 17 in section 42 of the principal act, for the words "one year", the words "three years" shall be substituted25amendment of section 4718 in section 47 of the principal act, in sub-section (1), the following proviso shall be inserted, namely:—"provided that the court may, on a complaint made by an aadhaar number holder or individual take cognizance of any offence punishable under section 34 or 35 or 36 or 37 or 40 or section 41"3019 after section 50 of the principal act, the following section shall be inserted, namely:—insertion of new section 50a43 of 1961exemption from tax on income35"50a notwithstanding anything contained in the income tax act, 1961 or anyother enactment for the time being in force relating to tax on income, profits or gains, the authority shall not be liable to pay income tax or any other tax in respect of its income, profits or gains"amendment of section 5120 in section 51 of the principal act, for the words "member, officer", the words"member or officer" shall be substituted21 in section 53 of the principal act, in sub-section (2),—amendment of section 5340 45(i) after clause (a) the following clause shal be inserted, namely:—"(aa) the purpose for which the requesting entity may be allowed by the authority to perform authentication under sub-clause (ii) of clause (b) of sub-section (4) of section 4;";(ii) after clause (g), the following clauses shall be inserted, namely:—"(ga) the qualification and experience of, and the manner of appointment of, the adjudicating officer under sub-section (1) of section 33b;(gb) the form, manner, and fee for an appeal to be filed under sub-section (2) of section 33d;"22 in section 54 of the principal act, in sub-section (2),—amendment of section 54(i) for clause (a), the following clause shall be substituted, namely:—5"(a) the entities or group of entities in the aadhaar ecosystem under clause (aa), the biometric information under clause (g) and the demographic information under clause (k), the process of collecting demographic information and biometric information from the individuals by enrolling agencies under clause (m), and the modes of offline verification of aadhaar number holder under clause (pa) of section 2;"; (ii) after clause (b), the following clauses shall be inserted, namely:—10"(ba) the manner of generating an alternative virtual identity under sub-section (4) of section 3;(bb) the manner in which cancellation of an aadhaar number may be carried out under sub-section (2) of section 3a";(iii) after clause (c), the following clauses shall be inserted, namely:—15"(ca) standards of privacy and security to be complied with by the requesting entities under sub-section (4) of section 4;(cb) the classification of requesting entities under sub-section (5) of section 4;"; (iv) after clause (f), the following clauses shall be inserted, namely:—20"(fa) the alternate and viable means of identification of individual under the proviso to clause (b) of sub-section (2) of section 8;25(fb) the manner of obtaining consent under clause (a) of sub-section (2), the manner of providing information to the individual undergoing offline verification under sub-section (3), and the obligations of offline verification-seeking entities under clause (c) of sub-section (4), of section 8a;"23 section 57 of the principal act shall be omittedomission of section 57 part iii amendment to the indian telegraph act, 1885 (13 of 1885)3024 in section 4 of the indian telegraph act, 1885, after sub-section (2), the following sub-sections shall be inserted, namely:—amendment of section 4 of act 13 of 1885'(3) any person who is granted a license under the first proviso to sub-section (1) to establish, maintain or work a telegraph within any part of india, shall identify any person to whom it provides its services by—3518 of 2016(a) authentication under the aadhaar (targeted delivery of financial and other subsidies, benefits and services) act, 2016; or18 of 2016(b) offline verification under the aadhaar (targeted delivery of financial and other subsidies, benefits and services) act, 2016; or15 of 1967(c) use of passport issued under section 4 of the passports act, 1967; or40(d) use of any other officially valid document or modes of identification as may be notified by the central government in this behalf45(4) if any person who is granted a license under the first proviso to sub-section (1) to establish, maintain or work a telegraph within any part of india is using authentication under clause (a) of sub-section (3) to identify any person to whom it provides its services, it shall make the other modes of identification under clauses (b) to (d) of sub-section (3) also available to such person(5) the use of modes of identification under sub-section (3) shall be a voluntary choice of the person who is sought to be identified and no person shall be denied any service for not having an aadhaar number5(6) if, for identification of a person, authentication under clause (a) ofsub-section (3) is used, neither his core biometric information nor the aadhaar number of the person shall be stored10(7) nothing contained in sub-sections (3), (4) and (5) shall prevent the central government from specifying further safeguards and conditions for compliance by any person who is granted a license under the first proviso to sub-section (1) in respect of identification of person to whom it provides its services18 of 2016explanation—the expressions "aadhaar number" and "core biometric information" shall have the same meanings as are respectively assigned to them in clauses (a) and (j) of section 2 of the aadhaar (targeted delivery of financial and other subsidies, benefits and services) act, 2016' 15 part iv amendment to the prevention of money-laundering act, 2002 (15 of 2003)15 of 2002insertion of new section 11a2025 in chapter iv of the prevention of money-laundering act, 2002 (hereafter in this part, referred to as the principal act), before section 12, the following section shall be inserted, namely:—'11a (1) every reporting entity shall verify the identity of its clients and the beneficial owner, by—verification of identity by reporting entity 18 of 201625(a) authentication under the aadhaar (targeted delivery of financial andother subsidies, benefits and services) act, 2016 if the reporting entity is a banking company; or18 of 2016(b) offline verification under the aadhaar (targeted delivery of financialand other subsidies, benefits and services) act, 2016; or15 of 1967(c) use of passport issued under section 4 of the passports act, 1967; or30(d) use of any other officially valid document or modes of identificationas may be notified by the central government in this behalf:18 of 201635provided that the central government may, if satisfied that a reporting entityother than banking company, complies with such the standards of privacy and security under the aadhaar (targeted delivery of financial and other subsidies, benefits and services) act, 2016, and it is necessary and expedient to do so, by notification, permit such entity to perform authentication under clause (a):18 of 2016provided further that no notification under the first proviso shall be issued withoutconsultation with the unique identification authority of india established under sub-section (1) of section 11 of the aadhaar (targeted delivery of financial and othersubsidies, benefits and services) act, 2016 and the appropriate regulator40(2) if any reporting entity performs authentication under clause (a) of sub-section (1),to verify the identity of its client or the beneficial owner it shall make the other modes of identification under clauses (b), (c) and (d) of sub-section (1) also available to suchclient or the beneficial owner45(3) the use of modes of identification under sub-section (1) shall be a voluntarychoice of every client or beneficial owner who is sought to be identified and no client or beneficial owner shall be denied services for not having an aadhaar number(4) if, for identification of a client or beneficial owner, authentication or offlineverification under clause (a) or clause (b) of sub-section (1) is used, neither his corebiometric information nor his aadhaar number shall be stored(5) nothing in this section shall prevent the central government from notifying additional safeguards on any reporting entity in respect of verification of the identity of its client or beneficial owner518 of 2016explanation—the expressions "aadhaar number" and "core biometric information" shall have the same meanings as are respectively assigned to them in clauses (a) and (j) of section 2 of the aadhaar (targeted delivery of financial and other subsidies, benefits and services) act, 2016'amendment of section 1226 in section 12 of the principal act, in sub-section (1), clauses (c) and (d) shall be omittedamendment of section 731027 in section 73 of the principal act, in sub-section (2), clauses (j) and (jj) shall beomitted statement of objects and reasonsthe aadhaar (targeted delivery of financial and other subsidies, benefits and services)act, 2016 (the aadhaar act) was enacted to provide for good governance, efficient, transparent, and targeted delivery of subsidies, benefits and services, the expenditure for which is incurred from the consolidated fund of india, to individuals residing in india through assigning of unique identity numbers to such individuals and for matters connected therewith or incidental thereto2 on 27th july, 2018 the committee of experts chaired by justice (retd) b nsrikrishna submitted its report "a free and fair digital economy : protecting privacy, empowering indians" regarding various issues related to data protection along with a draft personal data protection bill and also suggested certain amendments to the aadhaar act3 the constitution bench of the supreme court, in its judgment dated the24th august, 2017 in wp 494 of 2012 - justice ks puttaswamy (retd) and another vs uoi and others declared privacy as a fundamental right under article 21 of the constitution further, the supreme court vide its judgment dated the 26th september, 2018 has upheld the constitutional validity of the aadhaar act, with certain restrictions and changes, such as obtaining consent of parent or guardian in case of enrolment of children, providing option to children to cancel their aadhaar number on attaining the age of eighteen years, providing for informed consent for authentication and limiting the authentication only to purposes permitted by law4 with over 122 crore aadhaar numbers having been issued and with the widespread use of aadhaar as a proof of identity for various purposes by the government of india, state governments and other entities, it is essential to have a regulatory framework for the operation of aadhaar the authority, therefore, must have powers similar to that of a regulator for taking enforcement actions the aadhaar act, in its present form, does not empower the authority to take enforcement action against errant entities in the aadhaar ecosystem this needs to be addressed with a view to protect privacy and also to ensure the autonomy of the authority5 it is, therefore, proposed to amend the aadhaar (targeted delivery of financial and other subsidies, benefits and services) act, 2016, the indian telegraph act, 1885 and the prevention of money-laundering act, 2002 the salient features of the bill are as follows—(a) to provide for twelve-digit aadhaar number and its alternate numbers to be generated by the authority in such manner as may be specified by regulations to conceal the actual aadhaar number of an individual;(b) to give an option to children who are aadhaar number holders to cancel their aadhaar number on attaining the age of eighteen years;(c) to provide for voluntary use of aadhaar number in physical or electronic form by authentication or offline verification or any other mode which may be notified by the central government;(d) authentication of offline verification of aadhaar number can be performed only with the informed consent of the aadhaar number holder;(e) prevention of denial of services for refusing to, or being unable to, undergo authentication;(f) to permit the entities performing authentication only when they are compliant with the standards of privacy and security specified by the authority; and the authentication is permitted under any law made by parliament or the authentication is for such purpose, as the central government may, in consultation with the authority and in the interest of state, prescribe;(g) to lay down the procedure for offline verification of an aadhaar number holder;(h) to confer power upon the authority to give such directions as it may consider necessary to any entity in aadhaar ecosystem;(i) for establishment of unique identification authority of india fund; (j) to enhance the restrictions on sharing of information by requesting entity and offline verification-seeking entity;(k) to provide for civil penalties, its adjudication, appeal thereof and realisation of the sum of penalty as arrear of land revenue;(l) to omit section 57 of the aadhaar act relating to use of aadhaar by private entities;(m) to allow the use of aadhaar number for authentication on voluntary basis as acceptable kyc document under the telegraph act, 1885 and the prevention of money-laundering act, 20026 the notes on clauses explain in detail the various provisions of the bill 7 the bill seeks to achieve the above objectsnew delhi;ravi shankar prasadthe 22nd december, 2018 notes on clausesclause 1—this clause seeks to provide for short title and commencement of the act clause 2—this clause seeks to amend section 2 of the aadhaar (targeted delivery of financial and other subsidies, benefits and services) act, 2016 (the aadhaar act) relating to definitions so as to provide for new definitions of certain expressions used in the bill, which, inter alia, include the definitions of "aadhaar number", "aadhaar ecosystem","adjudication officer", "appellate tribunal", "child", "offline verification" and "offline verification seeking entity"clause 3—this clause seeks to amend section 3 of the aadhaar act relating to aadhaar number so as to insert a new sub-section (4) therein providing for "any alternative virtual identity generated by the authority" within the meaning of aadhaar numberclause 4—this clause seeks to insert a section 3a in the aadhaar act which provides for "aadhaar number of children"clause 5—this clause seeks to amend section 4 of the aadhaar act relating to properties of aadhaar number so as to substitute sub-section (3) thereof with five new sub-sections which provide for voluntary use of aadhaar number, conditions under which entities can perform authentication, classification of entities into those that can use aadhaar number and those that can use only alternative virtual identity, offering alternate and viable means of identification and condition for mandatory authenticationclause 6—this clause seeks to amend section 8 of the aadhaar act relating to authentication of aadhaar number so as to amend sub-sections (2) and (3) to provide for the requirement of obtaining the consent of the parent or guardian before authenticating the aadhaar number issued to a childclause 7—this clause seeks to insert a new section 8a in the aadhaar act so as to provide for offline verification of aadhaar numberclause 8—this clause seeks to substitute section 21 of the aadhaar act relating to officers and other employees of authority so as to provide for appointment of officers and other employees by the authorityclause 9—this clause seeks to insert a new section 23a to the aadhaar act relating to power of authority to issue directions it provides that the authority may issue directions to the entities in the aadhaar ecosystem for the discharge of its functions under the actclause 10—this clause seeks to substitute section 25 of the aadhaar act to provide for constitution of a unique identification authority of india fundclause 11—this clause seeks to amend section 29 of the aadhaar act relating to restriction on sharing information it substitutes sub-sections (3) and (4) thereof so as to provide that identity information is not used for any other purposeclause 12—this clause seeks to amend section 33 of the aadhaar act relating to disclosure of information in certain cases it seeks to amend sub-sections (1) and (2) thereof, inter alia, to provide the individual, whose information is sought to be released, an opportunity of hearing and stepping up disclosure permissions to higher levelsclause 13—this clause seeks to insert a new chapter via in the aadhaar act so as to provide for civil penalties the proposed new section 33a provides for civil penalty which may extend to one crore rupees for each contravention, for failure to comply with provisions of the act, rules, regulations and directions by any entity in the aadhaar ecosystem the proposed new section 33b provides for appointment of an adjudicating officer by the authority and the procedure and powers of such officer the proposed new section 33cprovides that the telecom disputes settlement and appellate tribunal established under section 14 of the telecom regulatory authority of india act, 1997 as the appellate tribunal under the act for hearing of appeals against the order of the adjudicating officer the proposed new section 33d lays down the procedures and powers of the appellate tribunal the proposed new section 33e provides for appeal to the supreme court against the orders of the appellate tribunal the proposed new section 33f provides for cases where civil court shall not have jurisdictionclause 14—this clause seeks to amend section 38 of the aadhaar act relating to penalty for unauthorised access to the central identities data repository so as to enhance the punishment from three years to ten yearsclause 15—this clause seeks to amend section 39 of the aadhaar act relating to penalty for tampering with data in central identities data repository so as to enhance the punishment from three years to ten yearsclause 16—this clause seeks to substitute section 40 of the aadhaar act relating to penalty for unauthorised use by requesting entity so as to provide for penalty for unauthorised use by requesting entity and offline verification-seeking entityclause 17—this clause seeks to amend section 42 of the aadhaar act relating to general penalty so as to enhance the punishment from one year to three yearsclause 18—this clause seeks to amend section 47 of the aadhaar act relating to cognizance of offences so as to insert a new proviso therein to provide that the aadhaar number holder or an individual may also file a complaint and initiate proceedings in respect of any offence punishable under section 34, 35, 36, 37, 40 or 41 of the principal actclause 19—this clause seeks to insert a new section 50a in the aadhaar act relating to exemption from tax on income so as to exempt the authority from tax on income, profits or gainsclause 20—this clause seeks to amend section 51 of the aadhaar act relating to delegation so as to substitute the words "member, officer" with "member or officer"clause 21—this clause seeks to amend section 53 of the aadhaar act relating to power of central government to make rules so as to inserts new clauses in sub-section (2)providing for rules on certain matters proposed under the billclause 22—this clause seeks to amend section 54 of the aadhaar act relating to power of the authority to make regulations so as to insert new clauses in sub-section (2)providing for regulations on certain matters proposed under the billclause 23—this clause seeks to omit section 57 of the aadhaar act relating to act not to prevent use of aadhaar number for other purposes under lawclause 24—this clause seeks to amend section 4 of the indian telegraph act, 1885relating to exclusive privilege in respect of telegraphs, and power to grant licenses so as to insert therein new sub-sections (3), (4), (5), (6) and (7) to provide for the use of aadhaar authentication and offline verification on voluntary basis besides other modes for identification, of persons who receive services from a licenseeclause 25—this clause seeks to insert a new section 11a under chapter 4 relating to obligations of banking companies, financial institutions and intermediaries to the prevention of money-laundering act, 2002 (the pml act) so as to provide for the use of aadhaar authentication and offline verification on voluntary basis besides other modes for verification of identity of a client or beneficial owner by a reporting entityclause 26—this clause seeks to amend section 12 of the pml act relating to reporting entity to maintain records so as to omit clauses (c) and (d) of sub-section (1) thereofclause 27—this clause seeks to amend section 73 of the pml act relating to power to make rules so as to omit clauses (j) and (jj) of sub-section (2) thereof memorandum regarding delegated legislationclause 21 of the bill seeks to amend section 53 of the act which confers power upon the central government to make rules providing for— (i) the purpose for which the requesting entity may be allowed to perform authentication under sub-clause (ii) of clause (b) of sub-section (4) of section 4; (ii) the qualification and experience of, and the manner of appointment of, the adjudicating officer under sub-section (1) of section 33b; and (iii) the form, manner, and fee for an appeal to be filed under sub-section (2) of section 33d2 clause 22 of the bill seeks to amend section 54 the act which confers power upon the authority to make regulations providing for— (i) the entities or group of entities in the aadhaar ecosystem under clause (aa), the biometric information under clause (g) and the demographic information under clause (k), the process of collecting demographic information and biometric information from the individuals by enrolling agencies under clause (m), and the modes of offline verification of aadhaar number holder under clause (pa) of section 2; (ii) the manner of generating an alternative virtual identity under sub-section (4) of section 3; (iii) the manner in which cancellation of an aadhaar number may be carried out under sub-section (2) of section 3a; (iv) standards of privacy and security to be complied with by the requesting entities under sub-section (4) of section 4; (v) the classification of requesting entities under sub-section (5) of section 4; (vi) the alternate and viable means of identification of individual under the proviso to clause (b) of sub-section (2) of section 8;and (vii) the manner of obtaining consent under clause (a) of sub-section (2), the manner of providing information to the individual undergoing offline verification under sub-section (3), and the obligations of offline verification-seeking entities under clause (c) of sub-section (4), of section 8a3 the matters in respect of which the rules or regulations may be made are 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 annexure extracts from the aadhaar (targeted delivery of financial and other subsidies, benefits and services) act, 2016 (18 of 2016) definitions2 in this act, unless the context otherwise requires,—(a) "aadhaar number" means an identification number issued to an individual under sub-section (3) of section 3;(b) "aadhaar number holder" means an individual who has been issued an aadhaar number under this act; (i) "chairperson" means the chairperson of the authority appointed under section 12; (p) "notification" means a notification published in the official gazette and the expression "notified" with its cognate meanings and grammatical variations shall be construed accordingly; 4 (1) properties of aadhaar number(3) an aadhaar number, in physical or electronic form subject to authentication and other conditions, as may be specified by regulations, may be accepted as proof of identity of the aadhaar number holder for any purpose21 of 2000explanation—for the purposes of this sub-section, the expression "electronic form"shall have the same meaning as assigned to it in clause (r) of sub-section (1) of section 2 of the information technology act, 2000 8 (1) (2) a requesting entity shall—authentication of aadhaar number(a) unless otherwise provided in this act, obtain the consent of an individual before collecting his identity information for the purposes of authentication in such manner as may be specified by regulations; and(b) ensure that the identity information of an individual is only used for submission to the central identities data repository for authentication (3) a requesting entity shall inform, in such manner as may be specified by regulations, the individual submitting his identity information for authentication, the following details with respect to authentication, namely: — 21 (1) the authority may, with the approval of the central government, determine the number, nature and categories of other officers and employees required by the authority in the discharge of its functionsofficers and other employees of authority(2) the salaries and allowances payable to, and the other terms and conditions of service of, the chief executive officer and other officers and other employees of the authority shall be such as may be specified by regulations with the approval of the central government other fees and revenues25 the fees or revenue collected by the authority shall be credited to the consolidated fund of india 29 (1) (3) no identity information available with a requesting entity shall be—restriction on sharing information(a) used for any purpose, other than that specified to the individual at the time of submitting any identity information for authentication; or(b) disclosed further, except with the prior consent of the individual to whom such information relates (4) no aadhaar number or core biometric information collected or created under this act in respect of an aadhaar number holder shall be published, displayed or posted publicly, except for the purposes as may be specified by regulations disclosure of information in certain cases33 (1) nothing contained in sub-section (2) or sub-section (5) of section 28 or sub-section (2) of section 29 shall apply in respect of any disclosure of information, including identity information or authentication records, made pursuant to an order of a court not inferior to that of a district judge:provided that no order by the court under this sub-section shall be made without giving an opportunity of hearing to the authority(2) nothing contained in sub-section (2) or sub-section (3) of section 29 shall apply in respect of any disclosure of information, including identity information or authentication records, made in the interest of national security in pursuance of a direction of an officer not below the rank of joint secretary to the government of india specially authorised in this behalf by an order of the central government:provided that every direction issued under this sub-section, shall be reviewed by an oversight committee consisting of the cabinet secretary and the secretaries to the government of india in the department of legal affairs and the department of electronics and information technology, before it takes effect:provided further that any direction issued under this sub-section, shall be valid for a period of three months from the date of its issue, which may be extended for a further period of three months after the review by the oversight committee 38 whoever, not being authorised by the authority, intentionally,—(a) accesses or secures access to the central identities data repository; (b) downloads, copies or extracts any data from the central identities data repository or stored in any removable storage medium;penalty for unauthorised access to the central identities data repository(c) introduces or causes to be introduced any virus or other computer contaminant in the central identities data repository;(d) damages or causes to be damaged the data in the central identities data repository; (e) disrupts or causes disruption of the access to the central identities data repository;(f) denies or causes a denial of access to any person who is authorised to access the central identities data repository;(g) reveals any information in contravention of sub-section (5) of section 28, or shares, uses or displays information in contravention of section 29 or assists any person in any of the aforementioned acts;(h) destroys, deletes or alters any information stored in any removable storage media or in the central identities data repository or diminishes its value or utility or affects it injuriously by any means; or(i) steals, conceals, destroys or alters or causes any person to steal, conceal, shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to a fine which shall not be less than ten lakh rupees21 of 2000explanation—for the purposes of this section, the expressions "computer contaminant", "computer virus" and "damage" shall have the meanings respectively assigned to them in the explanation to section 43 of the information technology act, 2000, and the expression "computer source code" shall have the meaning assigned to it in the explanation to section 65 of the said actpenalty for tampering with data in central identities data repository39 whoever, not being authorised by the authority, uses or tampers with the data in the central identities data repository or in any removable storage medium with the intent of modifying information relating to aadhaar number holder or discovering any information thereof, shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to a fine which may extend to ten thousand rupees40 whoever, being a requesting entity, uses the identity information of an individual in contravention of sub-section (3) of section 8, shall be punishable with imprisonment which may extend to three years or with a fine which may extend to ten thousand rupees or, in the case of a company, with a fine which may extend to one lakh rupees or with bothpenalty for unauthorised use by requesting entity general penalty42 whoever commits an offence under this act or any rules or regulations madethereunder for which no specific penalty is provided elsewhere than this section, shall be punishable with imprisonment for a term which may extend to one year or with a fine which may extend to twenty-five thousand rupees or, in the case of a company, with a fine which may extend to one lakh rupees, or with both delegation51 the authority may, by general or special order in writing, delegate to any member,officer of the authority or any other person, subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this act (except the power under section 54) as it may deem necessary 53 (1) (2) in particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: —power of central government to make rules (g) the form and the manner and the time at which the authority shall furnish annual report under sub-section (2) of section 27;| | | | | | | | ||--------------|----|----|------|------|------|------|-----|| 54 | ( | 1 | ) | | | | || power of | | | | | | | || authority to | | | | | | | || make | | | | | | | || regulations | | | | | | | |(2) in particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:—(a) the biometric information under clause (g) and the demographic information under clause (k), and the process of collecting demographic information and biometric information from the individuals by enrolling agencies under clause (m) of section 2;(b) the manner of verifying the demographic information and biometric information for issue of aadhaar number under sub-section (3) of section 3;(c) the conditions for accepting an aadhaar number as proof of identity of the aadhaar number holder under sub-section (3) of section 4; (f) the procedure for authentication of the aadhaar number under section 8; (i) the salary and allowances payable to, and other terms and conditions of service of, the chief executive officer, officers and other employees of the authority under sub-section (2) of section 21; 57 nothing contained in this act shall prevent the use of aadhaar number for establishing the identity of an individual for any purpose, whether by the state or anybody corporate or person, pursuant to any law, for the time being in force, or any contract to this effect:act not to prevent use of aadhaar number for other purposes under lawprovided that the use of aadhaar number under this section shall be subject to the procedure and obligations under section 8 and chapter vi ________ extracts from the prevention of money-laundering act, 2002 (15 of 2003) chapter iv obligations of banking companies, financial institutions and intermediaries12 (1) every reporting entity shall— reporting entity to maintain records(c) verify the identity of its clients in such manner and subject to such conditions, as may be prescribed;(d) identify the beneficial owner, if any, of such of its clients, as may be prescribed; 73 (1) power to make rules(j) the manner and the conditions in which identity of clients shall be verified by the reporting entities under clause (c) of sub-section (1) of section 12;(jj) the manner of identifying beneficial owner, if any, from the clients by the reporting entities under clause (d) of sub-section (1) of section 12; ————— a billto amend the aadhaar (targeted delivery of financial and other subsidies, benefits and services) act, 2016 and further to amend the indian telegraph act, 1885 and the prevention of money-laundering act, 2002—————(shri ravi shankar prasad, minister of law and justice;electronics and information technology)mgipmrnd—2878ls(s3)—27-12-2018 corrigenda to the aadhaar and other laws (amendment) bill, 2018 [to be/as introduced in lok sabha] 1 page 7, in line 39,- for "shal be" read "shall be" 2 page 14, line 13 from the bottom,- for "grant licenses" read "grant licences" new delhi; december 28, 2018 pausha 7, 1940 (saka) | Parliament_bills | 1fc446d2-ac85-5c71-b7a5-884b9af640ce |
bill no xxxiii of 2008 the electricity (amendment) bill, 2008 a billfurther to amend the electricity act, 2003be it enacted by parliament in the fifty-ninth year of the republic of india as follows:— 1 (1) this act may be called the electricity (amendment) act, 2008short title and commencement(2) it shall come into force on such date, as the central government may, by notification in the official gazette, appoint2 in section 32 of the electricity act, 2003, after sub-section (3), the following sub-section shall be inserted, namely:—amendment of section 32 of act 36 of 2003"(4) the officers or the employees of the state load despatch centre, who, by any act or ommission on their part, are responsible for denial of open access to an otherwise eligible licensee or consumer or a person engaged in generation of electricity in accordance with the regulations specified by the appropriate commission, shall be punishable with imprisonment for a term which may extend to one year" statement of objects and reasonsit is noticed that several state load despatch centres (sldc) refuse consent to proposed transactions for sale of electricity thereby depriving generating companies and licensees from grant of non-discriminatory open access to which they are otherwise entitled under the electricity act, 2003 the said refusal of consent on the part of sldcs not only constitutes a dereliction of duty but is also detrimental to the object 'market development' sought to be achieved by the enactment of this actthere is no provision under this act which would serve as a deterrent to unscrupulous sldc officials, so that they do not refuse the consent on account of extraneous considerations in view of this a penal provision is proposed to be incorporated in the electricity act, 2003hence this billprakash javadekar annexure extracts from the electricity act, 2003 32 (1) the state load despatch centre shall be the apex body to ensure integrated operation of the power system in a statefunctions of state load despatch centres(2) the state load despatch centre shall —(a) be responsible for optimum scheduling and despatch of electricity within a state, in accordance with the contracts entered into with the licensees or the generating companies operating in that state;(b) monitor grid operations; (c) keep accounts of the quantity of electricity transmitted through the state grid;(d) exercise supervision and control over the intra-state transmission system;and(e) be responsible for carrying out real time operations for grid control and despatch of electricity within the state through secure and economic operation of the state grid in accordance with the grid standards and the state grid code (3) the state load despatch centre may levy and collect such free and charges from the generating companies and licensees engaged in intra-state transmission of electricity as may be specified by the state commission rajya sabha———— a billfurther to amend the electricity act, 2003————(shri prakash javadekar, mp)gmgipmrnd—661rs—13022009 | Parliament_bills | 22772164-f07d-596e-a12d-a13361a7aa74 |
btu no 88 01 iy'7u the west bengal appropriation (no2) bill, 1970 a billto authorise payment and appropriation of certain sums from and out of the consolidated fund of the state of west bengal for the service of the financial year 1970-71 be it enacted by parliament in the twenty-first year of the republic of india as follows :-], this act may be called the west bengal appropriation (no2) act, 1970 short title 5 2 from and out q'f the consolidated fund of the state of west bengal there may be paid and applied sums not exceeding those specified in column 3 of the schedule amounting in the aggregate [inclusivp of the sums specified in column 3 of the schedule to the west bengal appro-100(19'10 priation (vote on account) act, 1970 and of the sums specified in column 103 of the schedule to the order made by the president on the 14th day of july, 1970 under article 357 of the constitution and published with the notification of the government of india in the ministry of finance no so 2442 of the said date] to the sum of four hundred and fifty-nine crores, eighty-six lakhs and thirty-three thousand rnpees towards defray-is ing the severa) charges which will come in course of paymei't during the issue ot rs ",,59,86, 33,000 out con:;olidated fund 01 the state of west bengal for the year 1970-'71 financial year 1970-71, in respect of the services specified in column 2 of the schedule appropria-3 the sums authorised to be paid and applied from and out of the tion consolidated fund of the state of west bengal by this act shall be appropriated for the services and purposes expressed in the schedule in relation s to the said year -----------1 2 3 5 no of vote services and purposes sums noi exceed ina -voted by rarliament charged on the codliolidated total fund ri rs 1 10 t8xei on income other tha~ i corporation tax 11,21,000 '000 1i,22,ooo r land re\'enue i 76~71000 ,,10,000 76691,000 ! othu miscellaneous compensations and assianments 3295,000 4,50,000 314s,000 :2 is payment of compensation to landhojden etc, on the abolition of the zamindari system 3,4s,00,ooo i 3,45,00,000 3 4 20 s 6 state exci~ duties 1,04,28,000 j ,04,28,000 taxes on vehicles 2409,000 24,09oob i sales tax 80,25000 1,000 ro,2ts,ooo , other tax'" and duties 3~,63,000 i 35,63000 stam s p 28,60,000 i 28,60,000 7 8 roeistration fccs 83,67000 8m70000 i~terest on debt and other obligations 70,00,000 49,oo',69,oorj 49',10,69,000 9 25 10 aplropriatiod for reduction or votdance of debt - , $,",61000, 5,12,63000 lj parnameat, state/union territory legilatuic - 60,39,000 19,000 6q78,ooo general administration 7,97,35000 ' 20,11,000 8,17;57,000 30 12 administration 01 justice 247,92,000 81,91,000 3,2984000, 13 jail, 2,39,72000 2,39,72,000 14 police 211,4879000 28,48,79,ood is miscellaneous department s-fi re services 84,75000 84,75,000 16 3s 17 milqe11ancoul department!!-l!xcludilll fire servicn 6,87,00,000 1,000 6,87,02,080 18 scientific departmc:nh 77,000 77,000 educlltion 67,96,94,000 f17 ,9694,000 19 medical 22,82,51,000 :u,82sr,ooo ~ 20 public health ii,ss,66,000 rr,55,66,ooo :n | no | • ||------------------------------|---------------------|| services and | || purpos~s | || sums | not || lit | || ~~- | || v,lie | || v\>~ed | || by | || i | || cluu',ed | on || partiamcnr | || ,- | comolidated || total | || fwld | || s, | || i | || 'rs | || rs | || rs | || r | || t\iricu\ture-agriciiiqllli | || 16,6i,8 | || 1 | || 000 | || 1,000 | || 16,6179,000 | || i | || carital'out\,odsc~ | || of | || 22 | || 1 | || al(ricultural i mpr(\vemeilt | || ari-l | || rescllrch | , ' || 2~6t44,q09 | || ,21160440qq0 | || jd, | || 23 | || i | || agricuh | || ure-f:~her;c" | || 72,4sooo | || 72,45,000 | || {ani"" | || h,b,,,h, | || 22,,02000 | || ~3,o~,ooo | || 24 | || | "'il',""ouu,y || ~~"" | || | " || of | || oveinment | radii\g:grcater || calcutta | || mi1~ | || supply | || ~heme | || 8,74,02,000 | || i,7~ | || is | || co-operat | || j | || on | || 1,45,74,000 | || "; | || 25 | || 1,4s74,oog1 | || | || , | || 3,05,97,000 | || 1~i(iqijl, | || 307,a_~,~ | || r""u"'i'>-'ndu'i~ | || | || 26 | || | || ~itto0ut1ay | || on indu&trial | || 1,6 | || f | || ;48000 | || and | || nom:~ | || development | || ,1,4 | || 11 | || - | || 61 | || qoo | || (induitries-coitilflc | industries || 22/11 | 'i,000 || ' 2,26,16;000 | || 20 | || 27 | || i ' , | || 1 | || capital outlay | on || indu~trial | || , | || ,1a~£conomi' | || jh,vl;lopment- | || &,5 | || 2• | 000 || cottage | || ind\strj~8 | || | , || 8,~2,ooo | || 2s | || i ndust | ri || 66,74000 | || ti6~74,060' | || interert | on || 2s | || o,biirstions-communi t | || y | || developmene projects, | na- || tional extenaion serviceand | || l,ogtltdevelop~, | ~qr~ || , | || jj,96 | || ,ooo | || '~~doo | || 29 | || communitv | development || 30 | || 8rojei;:ls: | || na~" | || fxtt;nsion | || servtt'e | || and' | || t | || :devel&p- | || i | || ~ | || m<n,wom | || 50342,000 | || jaj,t | || 2 | || qqo | || , | || ,~pital | || outlay | on' || | || ,worlrol!--crur\l'~ulh)' | || o\ivelop- | || as | || ' | ment projecta, || '1 | || ,6""""00 | || "w, | •• || uoao, | || , d:velopmeot | || orks: | || 11,::10000 | || 11,30,000 | || -toans | for || c"njmunil~ | || devc- | || ( | || ,~"iliul | projec~s || national | || -40 | || i | || extension service and local | || development | || works, | || ,66,81f)/jd( | || i | || ~6,qoo | || , i | || i~ris | || and advances | under || communi | || t | || y ; | || dc'velopment | || , | || \ | || t | || p~ts, | nati~lfl(ten8iild || 45 | || service and | local' || ak'1l1 | || work~ | || 115 | || 0,000 | || 6,~p'ooo | || ::10 | || la~_t | || fmp:oyment | || ,-,t3~10,ooo | || s"a~ | |no sums not exceeding of vole vo~by ii-c- h8"'; o::-rged~' 0-,,-1,-----s dated fund r-tqpnt i the con soli-total ----- ·------1-------rsrt ri, 32 10 ", \, ~ 184,99,000 18499000 mfscellaneoitl social' and dcvelopmental orpnisationp-excluding welf,re of scht'-dilled tj:ibes aqdcaster, and other blicltwata'clil'stics ~f;z9,coo 8,01,29,000, [ multi-purport rive r schemes is it'figatior, nav;gaf jrr em-i banltment and drainl'gr wq1d (commercial), , 33 irrigatior navigafior, enl-i haakmentand drainage worl!; (non-coid~~), , ( (,, 28690,000 ~ - cai:i~~1 o~bw" o~~ulti-pllr-i post river'schc:mes 20 42,~7000 42,ti7,ooo i capiflll outla~' on inig"-tion navilpltio/1 embankment and drainage works (commerda/'j, i ' l 43079000 capital outlay on irri~bfi(li'l " ~\ljpt:on embankment aad uriln,e works (non-com-~ial) , , 165755000 34 pubjic;,wolks 124°3000 , 246•oo,poo 30'-- r 'area'll r calcutta develormc:nt 3s s~eme, ' i capital outlay' on gretler l calcutta development scheme, , , 19,15000 35 36 porfs lind pilotage 80,05000 {r;oad'add w~ic~ ft~riport ; ' sehemes; ;, , 7all,ooo ' 'j 3,'012000 ·l,joi~ 334391000 329(13;000 10,000 11,55000 1145,000 30oco 30,000 11723000 2~s42000 1102,89000 37 capital qujiiiy on road and i will« tlianspotl schemes , 40: ~38l t'a_!_i> •• ' f ·~-i· ,,\ rperisi~n and o;'her ; retireml'nt 39 i helrefits - : -, i p:')'mcl,lls 01 cllmnmlcu value of i· l penriona 45 4° i privy purses and allowarce~ nf indian rulen i i 4j statiorery and printinjt 42 forest 43 misceljaneous-contributinnk so 44 miscellaneous-sj'lorts 45 miscellaneous- civil defence 6,2119",000 602877,000 i ,,49,9<1000 46 ( miliccu8i1eous- other miscc:ljane()us expenditure ' i t capital out lay on other works 1------------- - - ----,-------------- ----- sums not exceeding services and purpose!! no1 of vote tota) -v-o-ted-b-y--ii cbarp on the parliament consolidated fund -----1 rs rs rs interest 0'1 debt and other obli,ation_exfend iture on msplaced persons 47 miscellaneou_lrrecoverable loan to displaced persons 2,02,00,000 20390000 10 4/;5,02,000 72,00,000 100,000 13,00,000 is i,1765,ot1(j 2,17,65,000 60,00,000 written otl -{ 011 diplaced persons i i) capita) outlay on other wordj i -ex",d, on d;pl_ i ~::o::::: :n~;:_ i placed persons 48 ! pre-partition payments 1,000 20 60,00,000 i , 1,000 i 50 capitaloutlay on multi-purpose river schemes-damodar valley project 10,8439,000 108439,000 51 capital outlay on puhlic worka 7,2835,000 7,28,35,000 52 capital outlay on schemes of 1,000 42981,000 25 ,1650,000 government tradil)b r permanent debt 53 community development projects etc and displaced penons) 4060,46,000 loansfrom central government (bxcludina loans for 1 other loans 7;"45,000 54 loans and advances by state/ union territory governments total ----------~--------~----------------- statement of objects and reasonsthis bill is introduced in pursuance of article 204 (i) of the constitution and the proclamation issued under article 356 of the constitution in respect of the state of west bengal on the 19th march, 1970, to provide for the' appropriation out of the consolidated fund of the state of west bengal of the moneys required to meet the expenditure charged on the consolidated fund of the state of west bengal and the grants made by the lok sabha in respect of the estim~ted expenditure of the" government of west bengal for the financial year 1970-71 y b cha van tcopy of aetter no3t(l) -fcc/vo, dated the lsth~, 19~o froih shri y; b chavan, mibister ,of finance to the secretary, lok sabbaj th'e president having been informed of the subject matter of the proposed bill to provide for the with4rawal of cert~in su~s, from and ~ut <>f the consolidated fund of the state of west bengal 'for the services of uit:!iwaneial year 1970-71, recommends under clauses (1) and (3) of article 207 of the constitution of india and the proclamation dated the 19th march, 1970 issued under article 356 of the constitution, the introductjon of the west bengal appropriation (no2) bill, 1970, in the lok sabha and also the consideration of the bill 2 the bill will be introduced in the lok sabha immediately after the demands for grants, for the expenditure of the government of the state of west bengal for -the yeaf' 1970-71 have been voted a bill to authorise payment and appropriation of cer~ain sums from awl out of the consolidated fund of the state of west bengal for the services of the f;nancial year 1970-71 , | Parliament_bills | 4ae78e08-6112-5e13-8973-cebe8e3607c4 |
arrangement of clauses part i preliminary clauses1 short title, extent, application, commencement, duration and savings 2 definitions part ii punishments for, and measures for coping with, terrorist and disrvpnve activities3 pwliahment for terrorist acts 4 punishment for disruptive activities 5 possession of certain unauthorised arms, etc, in specified aresil 6 enhanced penalties 7 conferment of powers 8 forfeiture of property of certain persons part iii designated courts9 designated courts 10 place' of sitting 11 jurisdiction of designated courts 12 power of designated courts with respect to other offences 13 public prosecutors 14 procedure and powers of designated courts 15 certain confessions made to police officers to be taken into con· sideration 16 protection of witnesses 17 trial by designated courts to have precedence 18 power to transfer cases to regular courts 19 appeal part iv miscellaneous20 modified application of certain provisions of the code 21 presumption as to offences under section 3 22 identification of accused 23 saving 24 saving as to orders 25 overriding effect 26 protection of action taken under this act 27 power of the supreme court to make rules 28 power to make rules 29 rules to be laid before houses of parliament 30 repeal and saving a billto make special prcz·!fiolls jor the prevention of, and for coping with, terrorist and disruptive activities and for matters connected therewith or incidental thetl~to be it enacted by parliament in the thhty-eighth year of the republic gf ij}dia as follows:- part i preliminarys 1 (1) this act may be called the terrorist and disruptive activities (prevention) act, 1987 (2) it extends to the whole of india, and it applies abo-(a) to citizens of india outside india; (b) to persons in the service of the government, wherever they 10 may be; and short title, extent, applicalion, commenc»o ment, duration bnd savings (c) to pers(\ns on ships and aircraft registered in india, where-!' ever they may be (3) sections 5, 15, 21 and 22 shall come into' force at once and the re- ~, prrovilioils of this act, shall be deemed to have come into foree i' "",ja; uth:daj-ot may, 188'7 (4) it shall remain in force for a period of two ~ars from the !4th day of may, 1987, but its expiry under the operation of this sub-section 'hall not effect-! (a) the previous ('}leration of, or anything duly done or suftered under, this act uf any rule made thereunder or any order made s under any such rule or (b) any right, privijege, obligation or liability acquired, accrued or incurred under this act or any rule made thereunder or any order made under any such rule, or (c) any penalty, toi"feiture or punishment incurred in respect 10 of any offence under this act or any contravention of any rule made under this act or of any order made under any such rule, or (ei) any investiga1ion, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid 15 and any such investigaticll, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punisbment may be imposed as' if this act had not expired z (1) in this act, unless the context otherwise requires,-(a) "abet", with 1ts grammatical variations and cognate expret- 20 sions, includes-(i) the communication or association with any pers!)n or class of persons who is engaged in assisting in any manner terrorists or disruptionists; (ii) the passing on, or publication of, without any lawful 2s authority any infolmation likely to assist the terrorists or disruptionists, and the passing on, or publication of, or distribution of, any document or matter obtained from terrorists or disrup tionists; (w) the rendering of any assistance, whether financial (lr 30 otherwise, to terrotists or disruptionists; (b) "code" means the code of criminal procedure, 1973; 2 of 1974 (c) "designated cl)urt" means a designated col con~t!tuted unde~ section 9; (d) "disruptive activity" has the meaning assi ~d to it in 35 section 4 and the expression "disruptionist" shall be construed accordingly; (e) "high court" means the high court of the state in whit'h a jud~e or an additional judge of a designated court was working immediately before his appointment as such judge or addttionaj 40 judge; (f) "notified area" means such area as the state government may, by notification in the official gazette, specify; (g) "public prosecutor" means a public prosecutor or an a~ditional public prosecutor or ~ special public prosecutor ap- 45 pointed under section 13, and includes any person acting under the directions of the public prosecutor' , (h) "terrorist act" has the meaning asligned to it in rb-nett_ (1) of section 3, and the expression "terrorist" shall be ccnujtrij aecordmgly; (i) words and expressions used but not defined in thia act and defined in the code shall have the meanings respectively 1iled to them in the ccde (2) any reference in this act to any enactment or any provulon 5 thereof shall, in relation to an area in which such enactment or iuch provision is not in force, be construed as a reference to the corresponding law or the !'elevant provision of the corresponding law, if any, in force in that area part ii 10 punishments for, and measures for coping with, terrorist and disruptive activities,3 (1) whoever with intent to overawe the government as by law established or to strike terror in the people or any section of the people or to alienate any section of the people or to adversely affect the har-15 mony amongst different sections of the people does any ac1 or thing by wlingbombs, dynamite or other explosive substances or inflammable substances or fire-arms or other lethal weapons or poisons or noxious gases or other chemicals or by any other substances (whether biologl calor otherwise) of a hazardous nature in such a manner as to cause, o or as is likely to cause, death of, or injuries to, any person or persons - or loss of, or damage to, or destruction of, property or disruption of any supplies or services essential to the life of the community, or detains any person and threatens to kill or injure such person in -order to compel the government or any' other person to do or abstain from doing 15 any act, commits a terrorist act (2) vlhoever commits a terrorist act, shali,-(i) if such act has resulted in the death of any person, he punishable with dearh or imprisonment for life and shall also be liable to fine; 30 (ii) in any other case, be punishable with imprisonment for a term which shall not be less than five years but which may extend to imprisonment for life and shall also be liable to fine (3) whoever conspires or attempts to commit, or advocates, abets, advises or incites or lmowingly facilitates the commission of a terrorist , 35 act or any act preparatory to a terrorist act, shall be punishable with imprisonment for a term which shall not be less than five years but which may extend to imprisonment for life and shall also be liable to fide (4) whoever harbours or conceals, or attempts to harbour or conceal, any terrorist shall be punishable with imprisonment for a term 4g which shall not be less than five years but which may extend to imprisonment for life and shall also be liable to fine 4 (1) whoever commits or conspires or attempts to commit or abets, advocates, advises, or knowingly facilitates the commission of, any disruptive activity or any act preparatory to a dlsruptive activity 45 shall be punishable with imprisonment for a term which shall not be less than five years but which may extend to imprisonment for life and shall also be liable to fine (2) for the purposes of $ub-section (1), "disruptive aetivi~" m""5 ~ action taken, whether by act or by speech or through any otker ~ media or in any other manner whateoever,-~ ",' (i) which questions, disrupts or is intended to disrupt, whether '"!"" duecuy or indirectly, the sovereignty and territonat mwgrlt, of , india; or (ii) which is intended to bring about or supports any claim, f' whether directly or indirectly, for the cession of any part of incua 5~ !; - or the secession of any part of· india from the union ::, 'explanation-for the purposes of this sub-section,- (a) "cession" includes the admission of any claim ·of any foreign country to any part of jndia, and (b) "secession" includes the assertion of any claim to deter- 10 mine' whether a part of india will remain within the union (3) without prejudice to the generrlity of the provisions of sub--qction (2), it is hereby declared that any action taken, whether by act $ :i"! m'l ,-,:':" ~by speech or through any: other media or in any other manner whatspeyer, which-is (a) advocates, advises, suggests or incites; or (b) predicts, prophesies or pronounces or otherwise expresses, '" in such· manner as to incite, advise," suggest or prompt, tl1e killing or the destruction of any person bound by oath under the constitution to uphold the sovereignty and integrity of india or any to public servant shall be deemed to be a disruptive activity within the meaning of this section ~:~ (~) whoever harbours or conceals, or attempts" to harbour or eonceal, any disruptionist shall be punishable with imprisonment for a term which shall not be less than five years but which may extend to 25 imprisonment for life and shall also be liable to fine , ~ , pouesaion of certain unautllorl aed arms, etc in lp8cifted areas _f 5 where any person is in possession of any arms and ammunition specified in columns 2 and 3 of category i or category iii (a) of schedule ~ to the arms rules, 1962, or bombs, dynamite or other explosive stibstances unauthorisedly in a notified area, he shall, notwithstanding 30 anything contained in any other law for the time being in force, be punishable with imprisonment for a term which shall not be less than fiye years but which may extend to imprisonment for life and shall also be 'liable to fine i' ' ~ 6 (1) if any person with intent to aid any terrorist or disruptio:nist 35 col)kavenes any provision of or any rule made under, the arms act, 1~5~, the explosives act, 1884, the explosive substances act, 1908 (lr 54 of 1959 ·r:'e!~:''1 '!"~ ~ r:- ~ ~th'l!;" :~ ~fv···"~ t~~ inflammable substances act, 1952, he shall, notwithstanding any-4 of 1884 thing contamed in any of the aforesaid acts or the rules made there-, 6 of 1901 ut\der be punishable with imprisonment for a term wfrich shall not be 40 loot 1951-less than five years but which may extend to imprisonment for life and snttl1 a iso be liable to fine , : ~(2) for the purposes of this section, any person who attemp+s to contravene or abets, or attempts to abet, or does any'''act preparatory' to ~, contravention of any provision of any law, rule or order shall be 45 deemed to have contravened that provision, and the provisions 'of sub-~fml (1)· shall in relation to such person, have effect subject to the naoliitication ·that 'the reference to "imprisonment for life" shaube eollltrued as" a reference to "imprisonment for ten years" '1 (1) notwithstanding anything contained in the code or 1d any eor other provision of this act, the central government may, if it ~onside" jdedt cri it neceisary': or expedient so to do,-powera (a) for the prevention of, and for coping with, any offence tind~ section 3 or section 4; or 1 5_ (0) for any- case or class or group of cases under section 3 '·or sectlon 4, w " in any state or part thereof, confer, by notification in the ofticial gazette on any office:' of the central government, powers exercisable j 0 by a police officer under the code in such stat, or part thereof or, -as the case mal be, for such case or class or group of cases and in particular, the powez;s of arrest, investigation and prosecution of persons bef<ll'e any court - " (2) all officers of police and all officers of government are hereby j 5 required and empowl?red to assist the officer of the central gevern--ment referred to in sub-section (1), in the execution of the provisions of this act or any rule or order made thereunder (3) 'l'he' provisions of the code shall, so far as may be and subject to such modifications made in this act, apply to the exercise of the ·~o powel"s by an officer under sub-section (1) ';"'i~ ":'~j'~:~~ forfcr~· ture of propejtj of certain perso_ 8 (1) where a person has been convicted of any offence punishable under this act or lany rule made thereunder, the designated' ccl\irt may, in addition to uwarcimg any punishment, by order ill wj;'iting, declare that any property movable or immovable or both belongii~g ta '!25 -tile accused and specijjed in the order, shall stand forfeited to tlle government free from all encumbrances (2) where any person is accused of any offence under this a,ct ql" any rule made thereunder, it shall be open to the designated couri tryinahim to pass an order that all or any properties, mova?le iii 30,immovable or both belonging to him, shall during the period of such "trial~ be attached, and where such trial ends in conviction, the properttes 10 attached shall stand forfeited to the government free from au pncumbrances (3) (a) if upon a report in writing made by a police ofticer or an officer referred to in sub-section (1) of section 7, any designated cotji"t 35 has reason to believe that any person, who has committed an offence punishable under this act or any rule made thereunder, has abscond~ or is concealing himself no that he may not be apprehended, such court may, notwithstancing anything contained in section 82 of th~ code, 40 publish a written proclamation requiriog him to appear at a specified place and at a specified time not less than fifteen days but not maliif' 'than thirty ciays from the date of publication of such proclamation, (b) the designated court issuing a proclamation under clause '(d) ~, at any time, order the attachment of any property, movaoie or \ immovable or both, belonging to the proclaimed person and thereupen 45 ,the provisions of sections 83 to 85 of the code shall apply to such att ment a~ if such attachment were made under that code "~'j (c) if, within six months from {the date of the attachment, an,! person, whose property is, or has been, at the disposal of the government under sub-section (2) of section 85 of the code, appears voluntarily or is apprehended <lnd brought before the designated court by whose order the property was attached, or the court to which such 5 court is subordinate, and proves to the satisfaction of such court that he did not abscond or conceal himself for the purpose of avoiding apprehension hnd that he had not received such notice of the proclamation as to enable him to attend within the time specified therein, such property or, if the same has been sold, the net proceeds of the sale and 10 the residue of the property, shall, after satisfying therefrom all costs incurred in cunsequence of the attachment, be delivered to him - (4) where any shares in a company stand forfeited to the government under this section, tben, the company shall, notwithstanding anything contained in the companies act, 1956, or the articles of assot!lation 15 let 1_ oi the company, forthwith legister the government as the transferee of such shares part iii designated covrts9 (1) the central governmt!nt or a state government may, bj slo notification in the official gazette, constitute one or more des~ted courts for such area or areas, or for such ca,se or class or poup of casel, as may be specified in the notification (2) where a notification constituting a designated court for any area or areas or for any <:asc or class or group of cases is issued by the 2 central government under sub-section (1), and a notification constitut-5 ing a designated court for the same area or areas or for the same case or class or group of ca~cs has also been issued by a state government under that sub-section, the designated court constituted by the central government, whether the notification constituting such court is ilisued so before or after the issue 01 the notification constituting the designated court by the state government, shall have, and the designated court constituted by the state government shall not have, jurisdiction to try any offence committed in that area or areas or as the case may be, the case or class or group of cases, and all cases pending before any desianated court constituted by the state government shall stand trans- 35 !erred to the desigllated court constituted by the central government (3) where any question arises as to the jurisdiction of any designated court, it shall be referred to the central government whose deci&lod thereon shall be final ' (4) a designated court shall be presided over by a juqe tobe ap- !'olnted by the central, government or, as the case may be, the stat govenament, with the concurrence of the chief justice of the ~ court (5) the central government or, as the case may be, the state gov- eat may also appoint, with the concurrence of the chief justice of 5 tile m,h court, additional judps to exercise jurisdiction in - desipated court (6) a person shall not be qualified for appointment as a judge or 8ll additional judge of a designated court unless he is, immediately· before such appointment, a sessions judge or an additional sessions judge in any state s (7) }t'or the removal of doubts, it is hereby provided that the attainment by a person appointed as a judge or an additional judge of a designated court of the age of superannuation under the rules appli" cabl~ to him in the service to which he belongs, shall not affect his continuance as such judge or additional judge 1~ (8) where any additional judge or additional judges is or areappoint~ eo in a designated court, the judge of the designated court may,trom time to time, by general or special order, in writing, provide for the distribution of business of the designated court among himself and the 2dditional judge or additional judges and also for the disposal of urgent 15 business in the event of his absence or the absence of any additional judge place of aittin, 10 a designated court may, on its own motion or on an application made by the public prosecutor, and if it considers it expedient or desirable so to do, sit for any of its proceedings at any place, other than its 20 ordmary place of 'sitting: provided that nothing in this section shall be construed to change the place of sitting of a designated court constituted by a state government to any place outside that state jurisdiction of designated courts 11 (1) notwithstanding anything contained in the code, every 25 oftence pwushable under any provision of this act or any rule made therewlder shall be triable only by the designated court within whosa ioeal jurisdiction it was committed or, as the case may be, by the designated court constituted for trying such offence under bub-section (1) of section 9 30 (2) if, havini regard to the exigencies of the situation prevailing in a state, the central govcnunent is of the opinion that-(a) the situation prevailing in such state is not conducive to a fair, impartial or speedy trial, or 35 (0) it is not likely to be feasible without occasioning the breach of peace or grave risk to the safety of the accused, the witnessesl the public prosecutor and lhe judge of· the designated court or any of them, or (c) it is not otherwise in the interests of justice, it may, wiul the concurrence of the chief ju~tice of india (such concur-40 r~nce to be obtained on a motion moved in that behalf by the attorney-general), transfer any case pending before a designated court in that state to any other designated court within that state or in any other state (3) where the whole or any part of the area within the local lim,its 45 of the jurisdiction of u designated court has been declared to be~ or forms part of, any are~ which has been declared to be a disturbed area under any enactment for the time being in force making provision for the suppression of disorder and restoration and maintenance of public order, and the central government is of opinion that the situation pr vauing in the state is not conducive to fair, impartial or speedy trial within the state of offences under this act or the rules made thereunder , which such designated court is competent t9 try, the central governmentmay, with the concurrence of the chief justice of india, specify, by notification in the oflkia] gazette, in relation to such court (here- 5 after in this sub-section referred to as the local court) a designated court outside the state (hereafter in this section referred to as the specified court), and thereupon-(a) it shall not be competent, at any time during the perjod of operatlon of such notification, for such local court to exercise any 10 jurisdiction in respect of, or try, any offence under this act or the rules made there"jnder; (b) the jurisdiction which would have been, but for the issue of such notification, exercisable by such local court in respect of such offences conun~tted during the period of operation of such notifiea- is tion shall be exercif:able by the specified court; (c) all cases relating to such offences pending immediately before the ~ate of issue of such notification before such local court shall stand transferred on that date to the specified court; (d) all cases taken cognizance of by, or transferred to, the 20 specified court under clause (b) or clause (c) shall be dealt with and tried in accordance with this act (whether during the perjod of operation of such notification or thereafter) as if such offences had been committed within the local limits of the jurisdiction of the specified court or, as the case may be, tran~ferred for trial t('l it 25 under sub-section (2) ea"planation 1-a notification issued under this sub-section in relation to any local court ~~hal1 cease to operate on the date on which the whole or as the case may be, the aforementioned part of the area within the local limits or its· jurisdiction, ceases to be a disturbed area 30 explanation 2-for the purposes of this section, "attorney-general" means the attorney-general of india or, in his absence, the solicitor-general of india or, in the absence of both, one of the additional solicitors-general of india power of deiiaaated oaurta with reepoct to other oieoces 12 (1) when trying any offence, a designated court may also try 35 any other offence with which the accused may, under the code, be charged at the same trial if the offence is connected with such other offence (2) if, in the course of any trial under this act of any offence, it is found uat the accused person has committed any other offence under +<> this ac~ or any rule made thereunder or under any other law, the designated court may convict such person of such other offence and pass any sentence authorised by this act or such rule or, as the cas'! may be, such other law, for the punishment thereof 13 (1) for every designated court, the central govel1llment or, the case may be, the state government, shall appoint a person to the public prosecutor and may appoint one or more persons to be additional public prosecutor or additional public pr088eutora, the provided that the cent l government or, as the case may be, the-state gavenunent, may also appoint for any case or cia$! or «roup of so cash a special public prosecutor (2) a person shall not be qualified to be appointed as a public prosecutor or an additional public prosecutor or a special public prosecutor under this section llnless he has been in practice iii an advocate for not less than seven years or has held any post, for a period of 5 not leis than seven years, under the union or a state, requtrina lpecial knowledge of law (3) every person appointed as a public prosecutor or an additional public prosecutor or a special public prosecutor under this section shall 10 tie deemed to be a public prosecutor within the meaning of clause (u~ of section 2 of the code and the provisions of the code' shall have effect accordingly 14 (1) a designated court may take cognizance of any of!enee, without the accused being committed to it for trial, upon receiving a eomplaint of facts which' constitute such offence or upon a pollce report 15 of such facts procedure and po of~ nated co~; (2) where an offence triable by a designated court is punishable with imprisonment for a term not exceeding three years or with ftae or with both, the designated court may, notwithstanding anything contained in sub-secf;ion (1) of section 260 or seetion 262 of the code, try 20 the oft'enee in a summary way in accordance with the procedure prescribed in the code and the provisions of sections 263 to 265 of the co<le, shall, so far as may be, apply to such trial: provided th~t ween in the course of a summary trial under this subsection, it appears to the designated court that the nature of the casa 25 is such that it is undesirable to try it in a summary way the designated court shall recall any witnesses who may have been examined and proceed to re-hear the case in the manner provided by the provisions of the code for the trial of such offence and the said provisions shall apply 3 to and in relation to a designated court as they apply to and in relation o to a mllgistrate: provided further that in the case of any conviction in a summary trial under this section, it shall be lawful for a designated court to pass a sentenee of imprisonment for a term not exceeding two years (3) subject to the other provisions of this act, a designated court 35 il1a11 for the purpose of trial of any oft'ence have all the powers of a court of session and shall try such offence as if it were a court of session so far as may be in accordance with the procedure prelcribed in the code for the trial before a court of session (4) subject to the other provisions of this act, every case tran~er-40 red to a designated court under sub-section (2) of section 11 shall be dellt with as if such case had been transferred under secti-on 406 of the code to such designated court (5) notwithstanding 'anything, conta,ined in the code a designated, 0nrt may, if'it'thinks fltandfor reasons to be recorded by it proceed s with < the trial in the absence of the accused or his pleader and reeerd the evidence of any witness, sub1ect to the right of the accused to reea1j , 1a witness for cross-examination 15 (1) notwithstanding anything in the code or in the indian evidence act, 1872 but subject to the provisions of this section, a confession made by a ~rson before a police officer not lower in rank than a superintendent of police and recorded by such police officer either in writing or on any mechanical device like cassettes tapes or sound tracks from 5 out of which· 'sounds or images can be reproduced, shall be admissible in the trial of such person for an offence under this act or rules made thereunder certaia confetsioos madoto pollce officers to be taken into consideration (2) the police officer shall, before recording any confession under sub-section (i), explain to the person making it that he is not bound 10 to make a confession and that if he does so, it may be used as evidence against him and such police 'officer shall not record any such confession unless upon questioning the person making it he has reason to believe that it is being made voluntarily is, (1) notwithstanding anything contained in the code, all pro- is ceedings before a designated court shall be conducted in camera: protec· tion ,of wit-'nessel provided that where the public prosecutor so applies any proceedin~ or part thereof may be held in open court (2) a designated court may, on an application made by a witness 20 in any proceedings before it or by the public prosecutor in relation ~ such witness or on its own motion, take such measures as it deems fit for keeping the identity and address of any witness secret lit (3) in particular, and without prejudice to the ~nerality of the provisi<:,>ns of sub-section (2) the measures which a designated court 2s may take under that su1:i-~ction may include-(a) the holding of the proceedings at a place to be decided by the designated court; '(b) the avoiding of the mention of the names and addresses of the witnesses in its orders or judgments or in any rftcordsof the 30, case accessible to public: i (e) the issuing of any directions for securing that the identity and addresses of the witnes'ses are not disclosed; (if) that it is in the public interest to order that all or anv of ' the prl"ceedings pending before such a court shall not be published 35 in any manner '(4) any person who contravenes any direction issued under sub-!section (3) shall be punishable with imprisonment for a term which m'ay extend to one year and witb fine which may extend to 'one' thousana' t,' rupees , -r •• :'~ ~"'i'tif\o,~"" trial by debilnated courls to have prece· dence 17 the trial under this act of any offence by a designated court shan l1ave precedence over the trial of anv other case a~afnst theaceuged 'n' iinyethel' court (n"lt being a designated co'urt) and shall be c()ne1u8ed" in; priterence to the trial of such other cas'e 'and accordingly the trial '~f" ~~~~ meh otber ease shan remain in abeyance ,is where, after taking cognizance of any offence, a designated court is of opinion that the offence is not triable by it, it shall notwithstanding that it has no jurisdiction to try such offence, transfer the case for the trial of such offence to any court having jurisdiction under the code lind 5 the court to which the case is transferred may proceed with the trial of the offence as if it had taken cognizance of the ofl'ence 19 (1) notwithstanding anything contained in the code, an appeal shan lie as a matter of right from any judgment, sentence or order, not being an interlocutory order, of a designated court to the supreme court lo both on facts and on law ' (2) except as aforesaid, no appeal or revision shall lie to any ecrurt from any judgment, sentence or order including an interlocutory order of a designated court (3) every appeal under this section shall be preferred within a period 15 01 thtrty days from the date of the judgment selltence or order appealed from: provided that the supreme court may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that the appellant had sufficient came for not preferring the appeal within the period of 20 !htrty da~ part iv miscei"lalfeous20 (1) notwithstandin~ anythin~ contained in the code or any other law every offence punishable under this act or any rule made there-25 under shall be deemed to be a cojmizable offence within the meanin!:! of clause' (c) of section 2 of the code and "cognizable case" as defined in that clause shall be construed accordingly modlfte4 application of certain provi81odl of the code (2) section 21 of the, code shall apply in relation to a case involving an offence punishable under this act or any rule made thereunder 30 suhject to the modification that the reference to "the state' government" therein shall be construed as a reference to "the central government or the state government" (3) section 164 of the code shall apply in relation t~ a case fnvolvfnlt an offence punfshltble under this act or any rule made thereunder, 35 sl1bfect to the modification that the reference in !'!ub-section (1) thereof to ''mptrooolitan mmi!'!trate or turlicial malrl!iltrate" shall be con!ltrued as a reference to "metronolitan mal!istrate" judicial magistrate, executive ma~strate or special executive magistrate" (4) ~tion 1&7 of the code shall apply in relation to 8 case jnvolvfn~ 40 an offence punishable under this act or any rule made thereunder sub ject to the modifications that-(~) the tef~renc~' in sub-!'!ection '(1) thereof to'iti1,nc'i:tl ma!!f3- trllte" shall be construerl as a refpren~p t"l' uturlicla 1 m'al!i~trate or execu~vp, mal!f~trate or soecial executive mamstrate": 45 i (m t"e !'@f~on"~ fn ~1h-!'!pf't;on (2) thereof to 'lftft:fi'f!n davs", "nfnetv da'vl'l" antl, "six+v rtavs", wherever thev occur shan be construed as referenees to -stxty days", "one yea~ and ·~n!_ ~ar"'~, pectfw!,; anc! (e) sub-section (2a) thereof shall be deemed to have been omitted (5) section 268 of the code shall apply in relation to a case involving an offence punishable under this act or any rule made thereunder sub· ,ect to the modifications that-5 ca) the reference in sub-section (1) thereof-(i) to "the state government" shall be construed llj a refer enee to "the central government or the state government"; (ii) to "order of the state government" shall be construed as a reference to "order of the central government or the state 10 government as the case may be"; and (b) the reference in sub-section (2) thereof to "state government" shall be construed as a reference to "central government or the state government as the caservay be" (6) sections 366 to 371 and section 392 of the code shall apply ill 15 relation to a case involving an offence triable by a designated court bub~ect to the modifications that the references to "court of session" and "high court", wherever occurring therein, shall be construed as references to "designated court" and "supreme court" r~ctively (7) nothing in section 438 of the code ahall apply in relation to any 20 case involving the arrest of any person on an accusation of having committed an offence punishable under this act or any rule made thereunder (8) notwithstanding anything contained in the code no person accused of an offence punishable under this act or any rule made 2s thereunder shall if in custody be released on bail or on his own bond unless-(a) the public prosecutor has been given an opportunity to oppose the application for such release and (b) where the public prosecutor opposes the application; the 30 court is satisfied that there are reasonable grounds for believing that he is not guiltv of such offence and that he is not likely to commit any offence while on bail (9) the ltmitatfons on granting of bail specified in sub-section (8) are in· addition to the limitations under the code or any other law for 35 the time being in force on granting of bail 2t (1) in a prosecution for an offence tmder sub-section (1) of'seetion 3 if it is proved-proluldji" uon u to ojfedcei under he> tion 3 (a) that the arms or explosives or any other substances specift~ in section 3 were recovered from the possession of the accused and 40 there is reason to believe that such arms or explosives or other substance8 of a similar nature, were used in the commission of such of!enee: or (b) that by the evidence of an expert the ftnger prints of the aceused ~ fout!d at thf! site of the oi!ence or on nythfnginctud- " ing arms and vehicles used in connection with the commission ot such ot!ence; or (c) that a confession has been made by a co-accused that the accused had committed the offence; or 5 , (d) that the accused had made a confession of the offence to any person other than a police officer, -the designated court shall presume, unless the contrary is proved, that the accused had committed such offence (2) in a prosecution for an offence under sub-section (3) of section 10 3, if it is proved that the accused rendered any financial assistance to a person accused 01, or reasonably suspected of, an offence under that section the designaj:ed court shall presume, unless the contrary is proved, that such person has committed the offence under that subsection identification of accuaed 15 22 where a person has been declared a proclaimed offender in a terrorist case, the evidence regarding his identification by witnesses on the basis of his photograph shall have the same value as the evidence of a test identification parade savini 23 (1) nothing in this act shall affect the jurisdiction exercisable 10 by, or the procedure applicable to, any court or other authority under any law relating to the naval military or air forces or other armed forces of th~ union (2) for the removal of doubts it is hereby declared that for the purposes of any such law as is referred to in sub-section (1), a designated 2s court shall be deemed to be a court of ordinary criminal justice j atllft savin, as to orders z4 where an order purports to ha ve been made alld signed by any authority in exercise of any power conferred by or under this act a court shall, within the meaning of the indian evidence act, 1872, presume that such order was so made by that authority overriding effect 30 25 the provisions of this act or any rule made thereunder or any order made under any such rule shall have effect notwithstanding anything inconsistent therewith contained in any enactment other than this act or in any instrument having effect by virtue of any enactment other than this act protee· tion ot uction taken under this act 35 26 no suit, prosecution or other legal proceeding shall lie against the central government or a state government or any officer or auth~ rity of the central government or state government or any other authori ty to whom powers have been conferred under thia act or any rules made thereunder, for anything which is in good faith done or purported 40 to be done in pursuance of this act or any rules made thereunder or any order issued under any such rule 21 the supreme court may, by notification in the official gazette, make such rules if any, as it may deem necessary for carrying out the provisions of this act relating to designated courts power of the supreme court mau rulel 28 (1) without prejudice to the powers of the supreme court to make rules under sectjon 27, the central gi:jvernment may, by notification in the official gazette" make rules for carrying out the provisiona of tbis act - , (2) in particular, and without prejudice to the generality of the fore-s ioing power, such rules may provide for all or any of the following matters, namely: -i (a) regulating the conduct of persons in respect of areas the control of which is considered necessary or expedient and the remo'o'al of such persons ~rom su-::h areas; 10 (b) the entry into, and search of,-(i) any vehicle, vessel or aircraft; or (ii) any place, whatsoever, reasonably suspected of being used for committing the offences referred: to in section 3 or section 4 or for manufacturing or storing is anything for the corrunission of any such offence; (c) conferring powers upon,-(i) the central government; (ii) a state government; (iii) an administirator of a union territory under article 20 239 of the constitution; (iv) an officer of the central government not lower in rank than that of a joint secretary; or (vi an officer of a state government not lower in rank than that of a distrlct magistrate, 25 to make general or f>pecial orders to prevent or cope with terrorist acts or wsruptive activities; (d) the arrest and trial of persons contravening any of the rules or any order made thereunder; (e) the punishment of any person who contravenes or attempts 30 to contravene or abets or attempts to abet the contravention of any rule or order made thereunder with imprisonment for a term which ma;' extend to seven years or for a term which may not be less than six months but which may extend to seven years or with fine or with imprisonment as aforesaid and fine; 35 i (1) pro~iding for the seizure and detention of any property in respect of which such contravention, attempt or abetment as is, r referred to in clause (e) has been committed and for the adjudication of such seizure and detention, whether by any court or by any other authority 40 29 every rule made by the central government under this act shall be laid, as boon as may be after it is made, before each house ofparlia mant, while it is in session, for a total period of thirty days which may be comprised in one sessiori' or in two or more successive sessions, and if, before the expiry of 'the session immediately followini the aeslion 45 "afore ;oao~ til parlla-'1mdt 6t the successive sessions aforesaid, both houses agree in making afty 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, as the case may be; so, however, that any such modlft 5 cation or annulment shall be without pre1udice to the validity of anything previously done under that rule 30 (1) the terrorist and disruptive activities (prevention) ordinance, 1987, hereby repealed repe~ and in, ord i of 1987 (2) notwithstanding such repeal anything done or any action taken 10 under the said ordinance shall be deemed to have been dllne or taken under the corresponding provisions of this act the terrorist and disruptive activities (prevention) act, 1985, was enacted in may, 1985, in the background of escalation of terrorist activities in many parts of the country at that time it was expected then that it would be possible to control the menace within a period of two years and, therefore, the life of the said act was restricted to a period of two years from the date of its commencement however, it was subsequently realised that on account of various factors,what were stray incidents in the beginning have now become a continuing menace specially in states like punjab on the basis of experience, it was felt that in order to combat and cope with terrorist and disruptive activities effectively, it is not only necessary to continue the said law but also to strengthen it further the aforesaid act of 1985 was due to expire on the 23rd may, 1987 since both houses of parliament were not in session and it was necessary to take immediate action, the president promulgated the terro· rist and disruptive activities (prevention) ordinance, 1987 (2 of 1987), on the 23rd may, 1987, which came into force with effect from the 24th may, 1987 2 the ordinance included all the provisions of the act of 1985 except the following main changes, namely:-(a) punishments for terrorist acts and disruptive activities were made more deterrent; (b) the central government has also been empowered to constitute designated courts; (c) the exhaustive enumeration of rule making powers, as contained in section 5 of the 19850-act, had been dispensed with and the central government had been given power to make rules for carl"y-ing out the provisions of the ordinance 3 subsequent to the promulgation of the ordinance, it was felt thai the provisions need further strengthening in order to cope with the menus of terrorism it is, therefore, proposed that persons who are in possession of· certain arms and amm uni tion specified in the arms rules, 1962 or other explosive substances unauthorisedly in an area to be notified by the state government, shall be punishable with imprisonment for a tarm which shall not be less than five years but which may extend to imprisonment for life and with fine it is further proposed to provide that confession made by a person before a police officer not lower in rank than a superintendent of police and recorded by such police officer either in writing or on any mechanical device shall be admissible in the trial of such person for an offence under the proposed legislation or any rules made thereunder it is also proposed to provide that the designated court shall presume, unless the contrary is proved, that the accused had committed an offence where arms or explosives or any other substances specified in section 3 were recovered from his possession, or where b7 the evidence of an expert the finger prints of the accused were found a~ the site of offence or where a confession has been made by a co-accused that the accused had committed the offence or where the accused had made a confeision of the offence to any other person except a police ooicer it is also proposed to provide that in the case of a person declared as a proclaimed offender in a terrorist case, the evidence regard ing his identification by witnesses on the basis of his photograph shall have the same value as the evidence of a test identification parade further, the designated courts are also proposed to be empowered to try certain offences in a summary way in accordance with the procedure prescribed in the code of criminal procedure, 1973 the matters in respect of which rules may be made by the central government are also proposed to be enumerated the said amendments included in the bill, have been explained in the memorandum attached to the bill 4 the bill seeks to replace the aforesaid ordinance and to include therein the aforesaid amendments new delhi; the 17th august, 1987 buta singh president's recommendation under article 117 (3) of the constitution of india[copy of letter no 617187-legal cell dated 17th august 1987 from shri buta singh, minister of home affairs to the secretary-general, lok sabha] the president, having been informed of the subject matter of terrorist and disruptive activities (prevention) bill, 1987 recommends to the house the consideration of the bill under article 117 (3) of the constitution clause 9 of the bill provides for the constitution of designated court :by the central government or the state governments and also for appointment of judges and additional judges of those courts clause 13 of the bill provides for appointment of public prosecutors, additional public prosecutors and special public prosecutors by the central govem-'tnent or the state governments, as the case may be 2 the expenditure towards the setting up of designated courts by the state governments and towards salaries and allowances of the judget, public prosecutors and staff of such courts will be defrayed out of the consolidated funds of the states the expenditure towards setting \lp of designated courts by the central government in any state or union territory (other ~han pondicherry) will be met out of th~ consolidated fund of india the likely expenditure for each designated court and on the salaries and allowances of the judges, public prosecutors, additional public prosecutors, staff, etc, over a period of six months is expected to be about rs 7 lakhs out of which rs 35 lakhs will be of· a recurring nature and rs 35 lakhs of a non-recurring nature as it is not possib18 at this stage to visualise the number of such courts that may have te be established, it is not possible to giv~ an estimate of actual expenditure that may have to be incurred in this behalf clause 7 of the bill enables the central government to confer on an, tmlter of' the' central gove'mm~t powers exercisable by a police oftlcer 'tinder the code 'of crirtdnal proeedure, 19r3, in a state or part thereof, tn'''far such case or class 'or gtoup 'of eases and in particular the powers c;farrest, investigation bnd pro!ecution of persons before any court provisions to confer powers as provided in clause 7 are necessary for ~·eflec~ve agministration of the provisions of the bill 2 clause'j:t of the bill seekj to empower the supreme court to frame such ,rules, if any, 88 it may deem necessary for carrying out the provisions of the bill relating to designate~ courts the matters in respect of rwhich the supreme court can make rules would relate to ma~ters of detau and procedure the power is sought to be conferred on the supreme court to enable it to provide' for contingencies which it is not practicable to visualise and 'thereby secure the effective functioning of the designated courts 3 clauae· 28 of the bui seeks to empower the central govemment to make rules for carryiilgout tae provisions of the bill the particular matters in respect of which such rules may be made have been specified insub-clause (2) of the clause the rule making power under this elaun is of suft1cient amplttude to enable the central governmert to prdyide for stringent 'punishments within the limits specifted in subclause (2) (d) and (e) for contraventions of the rules and for other matters connected 'with such contraventions the sitaations which may arise as a result of terrorist and disruptive activities are of a very grave : uture further it is not possible to visualise the various types of situations which terrorists and disruptionists may create 4 in the context of the ci~umstances as explained above, the delegation of legislative power involved is of a normal character memorandum expzait,ing the modifications contained in the- btu to replace the terrorist and di'sruptive activities (prevent;on) ordinance, 1987 the terrorist and disruptive activities ,(prevention) bill, 1987, which seeks to repeal and replace the terrorist and disruptive activitie (prevention) ordinance, 1987, proposes to make the following modifica~ tions, apart from modifications of minor drafting nature, in the provisioll! contained in the said ordinance:-(i) sub-clause (3) of clause i seeks to provide that sections 5, 15, 21 and 22 shall come into force at once and the remaining provisions of the proposed law shall be deemed to have come into force on the 24th day of may, 1987, that is to say, the date on which the aforesaid ordinance came into effect, and shall remain in force for a period of two years from that date sub-clause (4) also includes a saving provision to the effect that the expiry of the proposed legislation will not affect pending proceedings on the lines of section 6 of the general clauses act, 1897 (ii) sub-clause (1) of clause 2 is being amended to include the definition of "notified area" to mean such area as the state g<>vemment may by notification in the official 'gazette, specify (iii) clause 5 seeks to provide that any person who is in possession of certain arms and ammunitions specified in schedule i to the arms rules, 1962, or bombs, dynamite or other explosive substances unauthorisedly in a notified area, shall be punishl:ble with imprisonment for a term which shall not be less than five years, but which may extend to imprisonment for life and also with fine (iv) sub-clause (2) of clause 14 seeks to empower the designated court to try any offence, which is punishable with imprisonment for a term not exceeding three years or with fine or ,with both, in a summary way in accordance with procedure prescribed in the code of criminal procedure, 1973, and the provisions of sections 263 to 265 of the said code, shall, so far as may be, apply to such trial (v) clause 15 seeks to provide that a confession made by a person before a police officer not lower in rank than a superintendent of police and recorded by such police officer either in writing or on an} mechanical device like cassettes, tapes or sound tracks from out of which sounds or images can be reproduced, shall be admissible in the trial of such person for an offence under the proposed legis~ lation or any rules made thereunder the police officer shall, however, explain to the person making the· confession that he is not bound to make it and that, if he does so, it may be used as evidence against him (vi) clause 21 seeks to provide that where it is proved that the anns or explosives or any other substances specified in clause 3 were recovered from the possession of the accused and there is reason to believe that such arms or explosives or other substances of a similar nature were used in the commission of an offence under that clause or where by the evidence of an expert the finger prints of the accused were found at the site of offence or on anything including arms and vehicles used in connection with the commission of such offence or where a confession has been made by a co-accused that the accused had committed the offence or where the accused had made a confession of the offence to any other person except a police officer, the designated court shall presume, unless the contrary is proved, that the accused had committed such offence (vii) clause 22 seeks to provide that where a person has been declared a proclaimed offender in a terrorist case, the evidence regarding his' identification by witnesses on the basis of his photograph shall have the same value as the evidence of a test identification parade \ (viii) sub-clause (2) of clause 28 enumerates various matters in relation to which rules may be made by the central government without prejudice to the generality of the powers conferred by subclause (1) of that clause some of the important matters for which rules may be made relate to conferring powers upon the central government, a state government, an administrator of the union territory, an officer of the central government of and above the rank of a joint secretary or an officer of a state governmejtt of and above the rank of a district magistrate to make general or special orders to prevent, or cope iwlth terrorist or disruptive activities: arrest and trial of persons contavening any of the rules or any order made thereunder; the punishment of any person who contravenes or attempts to contravene or abets or attempts to abet the contravention of any rule or order made thereunder with imprisonment for a term which may extend to seven years or for a term which may not be less than six months but which may extend to seven years ot with fine or with imprisonment as aforesaid and fine & bill to make special prov1s1<l1ls for the prevention of, and tor copiq: with, terrorist and dill'upuve activities aad for matter conn~ (therewith or incident'"· thereto - (shri buta singh, minister oj home affair • } | Parliament_bills | 4ffd3a8f-88b9-547d-886f-6de50572f470 |
bill no 79 of 2007 the constitution (scheduled tribes) order (amendment) bill, 2007 by shri tapir gao, mp a billfurther to amend the constitution (scheduled tribes) order, 1950be it enacted by parliament in the fifty-eighth year of the republic of india as follows:—short title and commencement1 (1) this act may be called the constitution (scheduled tribes) order(amendment) act, 20075(2) it shall come into force at once| co 22 ||---------------|| the schedule |2 in the schedule to the constitution (scheduled tribes) order, 1950, in partxviii—arunachal pradesh, after entry 16, the following entries shall be added,namely:—"17 deori18 lichu1019 mising" statement of objects and reasonsthe deori, lichu and mising communities have been living in the state of arunachal pradesh since time immemorial and are integral part of the state's rich tribal cultural heritage they have also contributed immensely to the development of the state these tribes also fulfil all the necessary criteria laid down by the national commission for scheduled tribes for being recognized as a tribe under the constitution (scheduled tribes) order, 1950therefore, to give them justice and to fulfil their long pending demand and aspirations, it is proposed in the bill to include the deori, lichu and mising tribes in the list of scheduled tribes for the state of arunachal pradesh by amending the constitution (scheduled tribes) order, 1950hence this billnew delhi;tapir gaoseptember 11, 2007 financial memorandumclause 2 of the bill seeks to include deori, lichu and mising tribes of arunachal pradesh in the list of scheduled tribes in respect of the state of arunachal pradesh by way of amending the constitution (scheduled tribes) order, 1950 the bill, therefore, if enacted, will involve expenditure from the consolidated fund of india for extending the benefits of reservation and other affirmative action of the government to these communities it is likely to involve an annual recurring expenditure of about rupees eighty crore from the consolidated fund of indiaa non-recurring expenditure of about rupees eighty crore is also likely to be involved annexure extracts from the constitution (scheduled tribes) order, 1950(co 22) [part xviii—arunachal pradesh]all tribes in the state including:—1abor9 2 10 3 11 4 12 5 13 6 14 7 15 8 16adi lok sabha———— a billfurther to amend the constitution (scheduled tribes) order, 1950————(shri tapir gao, mp)mgipmrnd—4162ls(s5)—1-11-2007 | Parliament_bills | c85e6ddd-bc97-546b-9808-e35bd7f09867 |
bill no 20 of 2008 the flood control bill, 2008 by shri mohan singh, mp a billto provide for the setting up of a national flood control board to control floods and for matters connected therewithwhereas entry 56 of list i—union list of the seventh schedule to the constitution provides for regulation and development of inter-state rivers and river valleys to the extent to which such regulation and development under the control of the union is declared by parliament by law to be expedient in the public interest;and whereas a lot of havoc is caused by floods every year in almost all parts of the country;and whereas it is expedient in the public interest to take effective measures for flood control;be it enacted by parliament in the fifty-ninth year of the republic of india as follows:—1 (1) this act may be called the flood control act, 2008 (2) it shall come into force at onceshort title and commencement2 (1) the central government shall set up a board to be known as the nationalflood control board (hereinafter referred to as the board)5setting up of a national flood control board(2) the head office of the board shall be at new delhicomposition of board3 (1) the board shall consist of:—(a) a chairman, who shall be an expert dealing with flood control, to be appointed by the central government; and5(b) a representative each from every state government and union territory, who shall be expert on flood control measures, to be nominated by the central government in such manner as may be prescribed (2) the salary and allowances payable to and other terms and conditions of service of the chairman and other members of the board shall be such as may be prescribed104 the central government shall make available to the board such officers and staff as may be required for efficient functioning of the board5 the functions of the board shall be—provision of officers and staff for the board functions of board(a) to identify the areas which are prone to floods; (b) to suggest measures for flood control;15(c) to make a time bound plan for inter-linking of rivers which are prone to floods with the ones which are not so;(d) to suggest measures for the development of land in areas which are prone to floods;20(e) to deploy flood forecasting system in such areas which are prone to floods and warn the inhabitants in those areas to move out to safer places in case floods are forecast in an area;(f) advise the state governments as to preventative and rehabilitation measures during floods; and(g) advise the state governments for proper storage of rain water and construction of dams256 the cost of taking up the floods control measures as suggested by the board shall be borne by the central government and the state governments in such ratio, as may be determined by the boardcost to be borne by central and state governments7 (1) the board shall make recommendations to the central government as to flood control measuresrecommendations to the government30(2) it shall be the duty of the central government to implement the recommendations of the board:provided that where it is felt necessary that any recommendation cannot be implemented due to any reason, the central government may, to be recorded in writing, inform the board accordingly358 there shall be constituted a committee of members of parliament to monitor the implementation of flood control measures undertaken on the suggestion of the boardcommittee of members of parliamentannual report409 the board shall prepare every year, in such form as may be prescribed, an annual report giving a true and full account of its activities during the previous year and copies thereof shall be forwarded to the central government and the government shall cause the same to be laid before each house of parliamentpower to make rules10 (1) the central government may, by notification in the official gazette, make rulesfor carrying out the purposes of this act5(2) every rule made under this section 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 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 the 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, 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 reasonsindia is the land of many great rivers floods occur in almost all river basins of the country the water resources of the country are not being fully utilized every year there are floods which cause immense loss of life and property whereas in some parts of the country there are floods, there is drought in other parts the national resources are damaged by floods this problem needs to be addressed urgently to mitigate the effects of floodstherefore, it is expedient in the public interest to evolve an integrated and scientific approach to the flood control problems and to draw out a national plan fixing priorities for implementation in the futurethe bill seeks to provide for the setting up of a national flood control board to suggest measures to prevent and control floods in the countrynew delhi;mohan singhfebruary 13, 2008 financial memorandumclause 2 of the bill provides for setting up of a national flood control boardclause 3 provides for the composition of the board it further provides for salary and allowances to chairman and members clause 4 provides that the central government shall provide officers and staff to the board clause 6 provides that the expenditure on flood control measures suggested by the board shall be borne by the central government and state governments clause 8 provides for the constitution of a committee of members of parliament to monitor the implementation of flood control measures undertaken on suggestion of the board the bill, therefore, if enacted, would involve expenditure from the consolidated fund of india it is likely to involve a recurring expenditure of about rupees one hundred crore per annuma non-recurring expenditure of about rupees one hundred crore is also likely to be involved memorandum regarding delegated legislationclause 10 of the bill gives power to the central government to frame rules for carrying out the purposes of the bill the rules will relate to matters of detail only and as such the delegation of legislative power is of a normal character———— a billto provide for the setting up of a national flood control board to control floods and for matters connected therewith————(shri mohan singh, mp)mgipmrnd—442ls(s-5)—27022008 | Parliament_bills | d7008635-8961-5cf5-b3db-67de4e9e1cdb |
bill no 291 of 2016 the child development programmes coordination agency bill, 2016 by shri gajanan chandrakant kirtikar, mp a billto provide for the constitution of the child development programmes coordination agency in order to ensure smooth functioning of child development programmes and achievement of targets for such programmes within a set time frame and for matters connected therewith and incidental theretobe it enacted by parliament in the sixty-seventh year of the republic of india as follows:—1 (1) this act may be called the child development programmes coordination agency act, 2016short title and commencement5(2) it extends to the whole of india(3) it shall come into force on such date as the central government may, by notification in the official gazette, appointdefinitions2 in this act, unless the context otherwise requires:—10(a) "agency" means the child development programmes coordination agencyestablished under section 4;(b) "child development programmes" means the programmes being run by the ministry of women and child development of the central government with an object of child development in the country;(c) "prescribed" means prescribed by rules made under the act;5(d) "supreme departmental authority" means the secretary of the department of women and child development of the central government; and(e) "top official" means the head of the child development programmes being run by the central government103 it shall be the duty of the central government to coordinate child development programmes with an objective to ensure that the child development programmes are run smoothly and the targets are achieved within the set time framecoordination of child development programmes4 (1) for the purpose of section 3, the central government shall, by notification in the official gazette, establish an agency for the purpose of this act to be known as the child development programme coordination agency, in such manner as may be prescribedestablishment of child development coordination agency15(2) the central government shall appoint such number of officers and staff for the efficient functioning of the agency(3) the salary and allowances payable to and other terms and conditions of the services of officers and staff shall be such as may be prescribed(4) the headquarter of the agency shall be at such place as may be prescribed205 the agency shall—functions of the agency(a) conduct monthly review of child development programmes run by the central government;(b) hold meetings with the top officials in connection with the quarterly execution of programme based on the review;25(c) submit half-yearly progress report and give suggestions to supreme departmental authority; and(d) perform such other functions as may be prescribed by the central government from time to time306 (1) the central government shall by notification in the official gazette establish a fund to be known as child development programmes coordination fund for carrying out the purposes of this act(2) the central government shall, after due appropriation made by parliament by law in this behalf, provide requisite sums to the fund for carrying out the purposes of this act357 the provisions of this act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force8 (i) the central government may, by notification in the official gazette, make rule for carrying out the purposes of this act4045(ii) every rule made 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 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 the 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, 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 reasonsit is unfair to think of development of a nation without the development of its childrenactually, child development is the foundation of national development the responsibility of ensuing healthcare, availability of good nutrition and quality education to children lies not only with the parents but also with the government presently, a number of programmes on child development are being run by the central government among which the integrated child development services (icds) scheme is the primary one which was started in 1975 subsequently, many small or big programmes were introduced despite all these schemes there seems to be a continuous deterioration in child development scenario in the country, be it the state of health or nutrition or education owing to lack of coordination among various ongoing programmes, the state of child development in the country continues to be at the lowest level despite spending hundreds of crores of rupees annually therefore, the need to establish a coordination agency for ensuring smooth functioning of child development programme and achievement of targets of such programmes within the set time frame is inevitablehence this billnew delhi;gajanan chandrakant kirtikaroctober, 28, 2016 financial memorandumclause 4 of the bill provides for the establishment of the child development programmes coordination agency and the appointment of officers and staff in the agency clause 6 provides for the establishment of a child development programme coordination fund therefore, the bill, if enacted, with involve expenditure from the consolidated fund of india it is likely to involve a recurring expenditure of rupees one thousand crore per annum from the consolidated fund of indiaa non-recurring expenditure of about rupees one hundred crore is also likely to be incurred memorandum regarding delegated legislationclause 8 of the bill empowers the central government to make rules for carrying out the purposes of the bill as the rules will relates to matters of detail only, the delegation of legislative powers is of a normal character———— a billto provide for the constitution of the child development programmes coordination agency in order to ensure smooth functioning of child development programmes and achievement of targets for such programmes within a set time frame and for matters connected therewith and incidental thereto————(shri gajanan chandrakant kirtikar, mp)gmgipmrnd—3138ls(s3)—22-11-2016 | Parliament_bills | 8f4d2f08-1b3d-5629-83f1-2d13c196f0a8 |
bill no 71 of 2010 the cinematograph (amendment) bill, 2010 by shri anandrao vithoba adsul, mp a billfurther to amend the cinematograph act, 1952be it enacted by parliament in the sixty-first year of the republic of india as follows:—1 this act may be called the cinematograph (amendment) act, 2010short title section 2 3 after part ii of the principal act, the following part shall be inserted, namely:—insertion of new part iia "part iia certification of programmes telecast on television59a (1) for the purpose of sanctioning programmes telecast on television for public exhibition, the central government shall, by notification in the official gazette, constitute a board of television programmes certificationestablishment of board of television programmes certification(2) the board of television programmes certification shall consist of a chairman and six other members, who shall be appointed by the central government10(3) the chairman of the board of television programmes certification shall receive such salary and allowances as may be determined by the central government, and other members shall receive such allowances or fees for attending the meetings of the board of television programmes certification as may be prescribed(4) the other terms and conditions of service of the members of the board of television programmes certification shall be such as may be prescribed159b (1) the board of television programmes certification shall have regional offices in every state and union territory(2) every regional office of the board of television programmes certification shall have a director and such other members as may be prescribedregional offices of board of television programmes certification(3) the terms and conditions of service of directors and other members in regional offices of the board of television programmes certification shall be such as may be prescribed209c all provisions relating to certification of films in this act shall apply mutatis mutandis to programmes telecast on television"provision of the act to apply mutatis mutandis to television programmes power to make rules9d (1) the central government may, by notification in the official gazette, make rules for the purpose of carrying into effect the provisions of this part25 30(2) every rule made 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 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 the 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, 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 reasonsthere has been a steep increase in the number of programmes telecast on television channels the number of channels has also increased considerably over the years however, there is virtually no scrutiny by any government agency having regard to the nature, content and theme of the programmes even a cursory scrutiny is not done as such, many programmes blatantly violate ethical norms at present there is a board of film certification which sanctions films for public exhibition these films are mostly screened in cinema halls but the programmes telecast on television are not subject to such censor or regulation programmes exhibiting violence and crime are likely to misguide the youth and children childern are vulnerable to such programmes and take to violence and crime in many casesit is accordingly proposed that a separate board of television programmes certification should be set up to scrutinise and give appropriate certification to programmes telecast on television channelshence this billnew delhi;anandrao vithoba adsulmay 7, 2010 financial memorandumclause 3 of the bill seeks, inter-alia, to set up a separate board for sanctioning television programmes there is also a provision for setting up of regional offices in every state and union territory the proposal to establish a board and regional offices is likely to involve expenditure from the consolidated fund of india it is estimated that an annual recurring expenditure of about rupees ten crores will be involveda non-recurring expenditure of about rupees one hundred crores is also likely to be involved memorandum regarding delegated legislationclause 3 of the bill seeks to insert, inter-alia, a new section 9d in the principal act, which empowers the central government to make rules for carrying out the purposes of the bill since the rules will relate to matters of detail only, the delegation of legislative power is of a normal character annexureextract from the cinematograph act, 1952(act no 37 of 1952)| | | | | | | ||------|------|------|------|------|------|-----|definitions| 2 | | | | | | ||------|-----|-----|-----|------|------|-----|| (a) | | | | | | || (b) | | | | | | || (c) | | | | | | |(d) (dd) "film" means a cinematograph film lok sabha———— a billfurther to amend the cinematograph act, 1952————(shri anandrao vithoba adsul, mp)gmgipmrnd—2651ls(s5)—14-07-2010 | Parliament_bills | 4b6a3574-128f-51cc-a647-8baf26811606 |
the appropriation (no2) bill, 1959(as introduced in lok sabha on 20th april, 1959) (as introduced in lok sabha) a billto authorise payment and appropriation of certain sums from and out of the consolidated fund of india for the services of the financial year 1959-60 be it enacted by parliament in the tenth year of the republic of india as follows:-1 this act may be called the appropriation (no2) act, 1959 short title 7 of 1959 2 from and out of the consolidated fund of india there may be issue of 5 paid and applied sums not exceeding those specified in column 3 of rs s 76,16,3%, 5,000 out the schedule amounting in the aggregate [inclusive of the sums of the conspecified in column 3 of the schedule to the appropriation (vote on ~!,!:ted of account) act, 1959] to the sum of seven thousand six hundred and india for sixteen crores, thirty-two lakhs and eighty-five thousand rupees ~~~9-60 year 10 towards defraying the several charges which will come in course of payment during the financial year 1959--60 in respect of the services specified in column 2 of the schedule 3 the sums authorised to be paid and applied from and out of appropriathe consolidated fund of india by this act shall be appropriated for tion is the services and purposes expressed in the schedule in relation to the said year the schedule(see sections 2 and 3) 1 2 3 -------sums not exceeding no voted by charged on s of services and purposes parliament the consolidated total vote fund -ra rs rs i ministry of commerce and industry 73,93,000 73,93,000 10 2 industries 29,69,88,000 · 29,69,88,000 3 salt 74,26,000 71,000 74,97,000 4 commercial intelligence and statistics 81,23,000 81,23,000 5 miscellaneous departments and is expenditure under the ministry of commerce and industry 2,79,16,000 · 2,79,16,000 6 ministry of community development and co-operation :27,40,000 27,40,000 20 7 community development projects, national extension service and co-operation 20,58,44,000 20,58,44,000 8 ministry of defence 40,28,000 40,28,000 9 defence services-effectiv~ 25 army 1,74,75,62,000 10,00,000 1,74,85,62,000 jo defence servicea-effectiv~ navy 18,40,00,000 ,-0,000 18,40,50,000 jl defence services-effective-30 air l"orce 59,79,41,000 so,ooo 59,79,91,000 i2 defence services-non-effective charges 15,31,20,000 84,09,000 16,15, ,000 13 ministry of education 59043,000 · 59043,000 14 education 31,13,48,000 · 31,13,48,000 15 miscellaneous departments and 3s other expenditure under the ministry of education 2,36,39,000 2,36,39,000 16 tribal areas 8,70,90,000 8,70,90,000 17 naga hills-tuensang area 3,44,33,000 3044,33,000 18 external affairs 9,76,16,000 9,76,16,000 40 | sums | not | exceeding ||-------------------------------|-------------------------------------|-----------------------|| services | dnd | purposes || voted | | || by | | || parliament | | || no | | || of | | || 5 | | || vote | | || the consolidated | | || total | | || fund | | || i | | || charged | on | || i | | || 14: | 000 | || 2,75,19,000 | | || -----·---=r=-s- | -' | || -----rts-----~ | | || 19 | | || state | | || of | pondicherry | || 20 | miscellaneous expenditure | || under | | || 10 | | || the | ministry | of || 4,68,000 | | || affain | | || 4,68,000 | | || 21 | ministry | of || 1>4 | | || 8,°5,000 | | || 1,48,°5,000 | | || 22 | | || customs | | || 3,96,77,000 | | || ao,ooo | | || 3,96,57,000 | | || 8°>49,21,000 | | || 23 | union excise duties | || 8,09,23,000 | | || is | | || taxes on income | including | || corporation | | || tax, | | || etc | | || 3,09,94,000 | | || 25 | | || opium | | || 2,87,°7,000 | | || 26 | stamps | || 8,3a,ooo | | || 2,78,75,000 | | || 10,78,62,000 | | || 27 | audit | || ao,s6,000 | | || 10,58,06,000 | | || 4,06,54,000 | | || 20 | 28 | currency || 16,31,000 | | || 3,90,23,000 | | || 5,88,39,000 | | || 29 | | || mint | | || 5,88,39,000 | | || 25,34,000 | | || 30 | territorial and political pensions | || superannuation allowances and | | || pensioos | | || 33,00,000 | | || 32 | | || 44,00,23,000 | | || miscellaneous departments | | || and | | || other | expenditure | under || ministry | | || of | finance | || 2,27,86,000 | | || 33 | planning commission | || 30 | | || 18,08,000 | | || 18,08,000 | | || 34 | miscellaneous adjustments bet- | || ween | the union and state | || governments | | || 3s | | || pre-partition payments | | || 168~1 | | || ,88,000 | 1,68,21,88,000 | || charobd-interest | | || on | debt and | || other obligations | | || and | | || reduc- | | || tion or avoidan:l | | || 01 | debt | || 35 | | || charobd--grants-in-aid | | || to | | || staw | | || 48,8410,000 | | || 48,84,10,000 | | || 36 | ministry | of || 75>46,000 | | || 2,59,30,000 | | || 2,59,3°,000 | | || 37 | | || forest | - | || 10,04,83,000 | | || 10,°4,83,000 | | || 38 | agriculture | || 40 | 39 | agricultural research || 4,93,75,000 | | || 2,62,73,000 | | || 2,62,73,000 | | || 40 | | || animal | | || husbandry | | || sums | not | exceeding ||-------------------------------|--------------|--------------|| servkes | and purposes | || no | | || of | | || vote | | || voted by | | || parlilullent | | || i | | || ii | ,80, | 10,000 || r | | || charged | on | || i | | || the consolidated | | || fund | | || total | | || s | | || -----·---·--------------rs | --i------rs | || -------rs:-- | | || 4j | | || miscellaneous departments and | | || other | expenditure | under || ministry | of | || food | | || and agricul- | | || 10 | | || ture | | || 11,76,09,000 | | || i | | || 42 | | || ministry | of | health || 43 | | || medical services | | || 44 | | || public health | | |4s miscellaneous departments and expenditure under the ministry of health 87,93,000 87,93,000 46 ministry of home affairs 2,89,89,000 2,8989000 47 cabinet 37,33,000 37,33000 48 zonal councils 3,69,000 3,661,000 20 18,36,000 49 administration of justice 15,87,000 2049,000 50 police 18,51000 51 census 52 statistics 53 pri"y purses and allowances of indian rulers 5,15,000 5,j6,78,000 10,89,84,000 delhi 10,000 54 ~,17,00q himachal pradesh 582,91,000 5,85,08,000 55 3,11,39,000 56 andaman and nicobar islands 2,33,89,000 57 ' manipur 2,33,89,000 30 3,72,62,000 3,73,12,000 50,000 58 tripura 59 laccadive, minicay and amindivi islands 60 miscellaneous departments and expenditure under the mini9-try of home affairs 61 ministry of information broadcasting and ~ broadcasting no of services and purposes vote to:al r~ sums not exceedilli ----------------voted by parliament i'charged on thel consolidated - fund --ra rs 10 miscellaneous departments and expenditure under the ministry of information and broadcasting 3>43,51,000 64 ministry of irrigation and power 6, multi-purpose river schemes is 1,66,37,000 66 miscellaneous departments and other expenditure under the ministry of irrigation and power 20,06,000 20,06,000 67 ministry of labour and employment 68 ch iel inspector of mines 20 miscellaneous departments and other expenditure under the ministry of labour and employment 2,5,8,5,000 70 ministry of law 25 71 elections 90,93,000 72 ministry of rehabilitation 37,32,000 73 expenditure on displaced persons and minorities 30 74 ministry of scientific research and cultural affairs 75 archaeology 1,07,0,5,000 i 1,61,14,000 76 survey of india 77 botanical survey 78 zoological survey 79 35 scientific research and cultural affairs 80 40 36,86,000 miscellaneous departments and expenditure under the ministry of scientific rrsearch and cultural affairs 36,86,000 8t ministry of steel, mines and fuel 82 geological survey 2,21,05,000 2,21,0,5,000 sums not exceeding services and purposes charged on thee no of vote 1------voted by parliament consolidated total 5 fund ,------------------1-----------ri rs ri exploration of oil and natural gas 10 84 miscellaneous departments and other expenditure under the ministry of steel, mines and fuel 54,56,000 54,56,000 85 ministry of transport and communications 86 indian posts and telegraphs department (including working expenses) 66,34,47,000 69,97>48,000 is 68,94,000 87 mercantile marine 1,28,87,000 20 88 light-houses and light-ships 1,62,47000 89 meteorology 1,36,86,000 90 overseas communication~ service 7,09,37,000 7,09,37,000 aviation 91 3,88,63,000 central road fund 3,88,63,000 25 93 communicaticns (including national highways) 94 1,71,17,000 miscellaneous departments and other expenditure under the ministry of transport and communications 95 63,24,000 ministry of works, housing and supply :1,17,000 2,8275,000 96 supplies :18,%3,000 26,99,04,000 97 other civil works 7,77,42,000 stationery and printing 1,18,96,000 1,18,96,000 miscellaneous departments and expenditure under the ministry of works, housing and supply 13,25,000 40 department of atomic energy - 100 4,40,70,000 atomic energy research 101 2,32,000 2,32,000 102 department of parliamentary affairs 1,00,66,000 103 lok sabha sums llot exceeding , n o services and purposes voted by charged on 0 f parliament the consoli-total s vo te dated fund r8 rs rs 04 miscellaneous expenditure under lok sabha 34,000 · 34,000 i os rajya sabha 33,89,000 61,000 34,so,000 10 charged-st~, household and allowances of the president :15,19,000 2s,19,000 i 06 secretariat of the vice-president 64,000 · 64,000 charged- union public service commission 4:1,64,000 42,64,000 is i 01 capital outlay ofthe ministry of commerce and industry 16,2s,35,000 16,25,35,000 08 capital outlay of the ministry of community development and co-operation 3,78,71,000 · 3,78,71,000 20 i 09 defence capital outlay 36,90,00,000 4,0'),000 3694,00,000 10 capital outlay of the ministry of education 69,64,000 69,64,000 i ii capital outlay of the ministry of external affairs 68,32,000 68,32,000 25 12 capital outlay on the india security press 11,00,000 11,00,000 i 13 capital outlay on curr~ncy and coinage 1,00,93,43,000 1,00,93,43,000 14 capital outlay on mints 48,54,000 · 48,s4,000 30 i is commuted value of pensions 45,35,000 1,00,000 46,35,000 16 payments to retrenched personnel 6,000 · 6,000 i 17 other capital outlay of the ministry of finance 64,75,41,000 64,75,41,000 35 i 18 loans and advances by the central government 2,ii,gg,96,000 j,13,68,99,000 s,2468,9s,000 charged-repayment of debt 5j58,67,j2,000 s3,58,61,32,000 19 capital outlay on forests 13,97,000 · 13,97,000 20 purchase of foodgrains 1,86,34,77,000 :1,00,000 i 1,86,3677,000 40 i 2i other capital outlay of the 15,000 \ ministry of food and agriculture 36,43,s5,000 36,43,70,000 -------------------------sums not exceeding --------------------no services and purposes voted by i charged on total of parli ament the consoli-6 vote dated fund ------------------------1------------:---------·- ----------rs rs rs 122 capital outlay of the ministry of health 81,02,000 10 81,02,000 capital outlay of the ministry of home affairs 2,00,00,000 capital outlay on broadcasting 2,00,00,000 capital outlay on multi-purpose river schemes 126 7,82,11,000 is other capital outlay of the ministry of irrigation and pow:r 7,82,11,000 117 capital outlay of the ministry of labour and employment 128 20,20,00,000 capital outlay of the ministry of rehabilitanon 20,20,00,000 129 capital outlay of the ministry o~ scientific research and cultural affairs 130 cl&pital outlay of the ministry of steel, mines and fuel 131 capital outlay on indian posts and telegraphs (not met from revenue) civil 5,00,000 32 capital outlay on aviation 438•27,000 30 133 capital outlay on ports 3,0350,000 3,0350,000 16,5000,000 134 capital outlay on roads 16,50,00,000 8,76,10,000 ih _ other capital outlay of the ministry of transport and communications 8,76,10,000 35 6,86,000 7,32,19,000 36 delhi capital outlay 7,-39,05,000 49,000 8,22,46,000 8,22,95,000 137 capital outlay on buildings i3~ other capital outlay of the ministry of works, housing and supply capital outlay of the department of atomic energy 547,00,000 5,4700,000 total 16,43,19,57,000 59,73,13,28,0001 76,16,~,000 139 statement of objects and reasonsthis bill is introduced in pursuance of article 114 (1) of the constitution of india to provide for the appropriation out of the consolidated fund of india of the moneys required to meet the expenditure charged on the consolidated fund and the grants made by the lok sabha for expenditure of the central government, excluding railways, for the financial year 1959-60 new deliu; morarji desai the 20th april 1959 a billto authorise payment and appropriation of certain sums from and out of the consolidated fun1 of india for the services of the financial year 19:9-60 the president has, in pursuance of clause· (1) ani (3) of article ii 7 of the comtitution of india, recommended to lok sabha the introjuction and consideration of the bill m n kaul, secretar'), (shri morarji desai, min;ster of finance) | Parliament_bills | aba570f9-a08b-5dc9-8df1-0d9998e7ecd2 |
the maintenance and welfare of parents and senior citizens bill, 2007———— arrangement of clauses———— chapter i preliminary clauses1short title, extent, application and commencement2definitions3act to have overriding effect chapter ii maintenance of parents and senior citizens4maintenance of parents and senior citizens5application for maintenance6jurisdiction and procedure7constitution of maintenance tribunal8summary procedure in case of inquiry`9order for maintenance10alteration in allowance11enforcement of order of maintenance12option regarding maintenance in certain cases13deposit of maintenance amount14award of interest where any claim is allowed15constitution of appellate tribunal16appeals17right to legal representation18maintenance officer chapter iii establishment of oldage homes19establishment of oldage homes chapter iv provisions for medical care of senior citizensclauses20medical support for senior citizens chapter v protection of life and property of senior citizens21measures for publicity, awareness, etc, for welfare of senior citizens22authorities who may be specified for implementing the provisions of this act23transfer of property to be void in certain circumstances chapter vi offences and procedure for trial24exposure and abandonment of senior citizen25cognizance of offences chapter vii miscellaneous26officers to be public servants27jurisdiction of civil courts barred28protection of action taken in good faith29power to remove difficulties30power of central government to give directions31power of central government to review32power of state government to make rules the maintenance and welfare of parents and senior citizens bill, 2007 a billto provide for more effective provisions for the maintenance and welfare of parents and senior citizens guaranteed and recognised under the constitution and for matters connected therewith or incidental theretobe it enacted by parliament in the fifty-eighth year of the republic of india as follows:— chapter i preliminary1 (1) this act may be called the maintenance and welfare of parents and senior citizens act, 2007short title, extent, application and commencement(2) it extends to the whole of india except the state of jammu and kashmir and it applies also to citizens of india outside india(3) it shall come into force in a state on such date as the state government may, by notification in the official gazette, appointdefinitions2 in this act, unless the context otherwise requires,—(a) "children" includes son, daughter, grandson and grand-daughter but does not include a minor;(b) "maintenance" includes provision for food, clothing, residence and medical attendance and treatment;(c) "minor" means a person who, under the provisions of the indian majority act, 1875, is deemed not to have attained the age of majority;9 of 1875(d) "parent" means father or mother whether biological, adoptive or step father or step mother, as the case may be, whether or not the father or the mother is a senior citizen;(e) "prescribed" means prescribed by rules made by the state government under this act;(f) "property" means property of any kind, whether movable or immovable, ancestral or self acquired, tangible or intangible and includes rights or interests in such property;(g) "relative" means any legal heir of the childless senior citizen who is not a minor and is in possession of or would inherit his property after his death;(h) "senior citizen" means any person being a citizen of india, who has attained the age of sixty years or above;(i) "state government", in relation to a union territory, means the administrator thereof appointed under article 239 of the constitution;(j) "tribunal" means the maintenance tribunal constituted under section 7; (k) "welfare" means provision for food, health care, recreation centres and other amenities necessary for the senior citizensact to have overriding effect 3 the provisions of this act shall have effect notwithstanding anything inconsistent therewith contained in any enactment other than this act, or in any instrument having effect by virtue of any enactment other than this act chapter ii maintenance of parents and senior citizensmaintenance of parents and senior citizens4 (1) a senior citizen including parent who is unable to maintain himself from his own earning or out of the property owned by him, shall be entitled to make an application under section 5 in case of—(i) parent or grand-parent, against one or more of his children not being a minor;(ii) a childless senior citizen, against such of his relative referred to in clause (g)of section 2 (2) the obligation of the children or relative, as the case may be, to maintain a senior citizen extends to the needs of such citizen so that senior citizen may lead a normal life(3) the obligation of the children to maintain his or her parent extends to the needs of such parent either father or mother or both, as the case may be, so that such parent may lead a normal life(4) any person being a relative of a senior citizen and having sufficient means shall maintain such senior citizen provided he is in possession of the property of such senior citizen or he would inherit the property of such senior citizen:provided that where more than one relatives are entitled to inherit the property of a senior citizen, the maintenance shall be payable by such relative in the proportion in which they would inherit his property5 (1) an application for maintenance under section 4, may be made—application for maintenance(a) by a senior citizen or a parent, as the case may be; or (b) if he is incapable, by any other person or organisation authorised by him; or(c) the tribunal may take cognizance suo motu21 of 1860explanation— for the purposes of this section "organisation" means any voluntaryassociation registered under the societies registration act, 1860, or any other law for the time being in force(2) the tribunal may, during the pendency of the proceeding regarding monthly allowance for the maintenance under this section, order such children or relative to make a monthly allowance for the interim maintenance of such senior citizen including parent and to pay the same to such senior citizen including parent as the tribunal may from time to time direct(3) on receipt of an application for maintenance under sub-section (1), after giving notice of the application to the children or relative and after giving the parties an opportunity of being heard, hold an inquiry for determining the amount of maintenance(4) an application filed under sub-section (2) for the monthly allowance for the maintenance and expenses for proceeding shall be disposed of within ninety days from the date of the service of notice of the application to such person:provided that the tribunal may extend the said period, once for a maximum period of thirty days in exceptional circumstances for reasons to be recorded in writing(5) an application for maintenance under sub-section (1) may be filed against one or more persons:provided that such children or relative may implead the other person liable to maintain parent in the application for maintenance(6) where a maintenance order was made against more than one person, the death of one of them does not affect the liability of others to continue paying maintenance(7) any such allowance for the maintenance and expenses for proceeding shall be payable from the date of the order, or, if so ordered, from the date of the application for maintenance or expenses of proceeding, as the case may be(8) if, children or relative so ordered fail, without sufficient cause to comply with the order, any such tribunal may, for every breach of the order, issue a warrant for levying the amount due in the manner provided for levying fines, and may sentence such person for the whole, or any part of each month's allowance for the maintenance and expenses of proceeding, as the case may be, remaining unpaid after the execution of the warrant, to imprisonment for a term which may extend to one month or until payment if sooner made whichever is earlier:provided that no warrant shall be issued for the recovery of any amount due under this section unless application be made to the tribunal to levy such amount within a period of three months from the date on which it became due6 (1) the proceedings under section 5 may be taken against any children or relative inany district—jurisdiction and procedure(a) where he resides or last resided; or (b) where children or relative resides(2) on receipt of the application under section 5, the tribunal shall issue a process for procuring the presence of children or relative against whom the application is filed2 of 1974(3) for securing the attendance of children or relative the tribunal shall have the power of a judicial magistrate of first class as provided under the code of criminal procedure, 1973(4) all evidence to such proceedings shall be taken in the presence of the children or relative against whom an order for payment of maintenance is proposed to be made, and shall be recorded in the manner prescribed for summons cases:provided that if the tribunal is satisfied that the children or relative against whom an order for payment of maintenance is proposed to be made is wilfully avoiding service, or wilfully neglecting to attend the tribunal, the tribunal may proceed to hear and determine the case ex parte(5) where the children or relative is residing out of india, the summons shall be served by the tribunal through such authority, as the central government may by notification, specify in this behalf(6) the tribunal before hearing an application under section 5 may, refer the same to a conciliation officer and such conciliation officer shall submit his findings within one month and if amicable settlement has been arrived at, the tribunal shall pass an order to that effectexplanation— for the purposes of this sub-section "conciliation officer" means any person or representative of an organisation referred to in explanation to sub-section(1) of section 5 or the maintenance officers designated by the state government under sub-section (1) of section 18 or any other person nominated by the tribunal for this purposeconstitution of maintenance tribunal7 (1) the state government shall within a period of six months from the date of the commencement of this act , by notification in the official gazette, constitute for each subdivision one or more tribunals as may be specified in the notification for the purpose of adjudicating and deciding upon the order for maintenance under section 5(2) the tribunal shall be presided over by an officer not below the rank of sub-divisional officer of a state(3) where two or more tribunals are constituted for any area, the state government may, by general or special order, regulate the distribution of business among themsummary procedure in case of inquiry8 (1) in holding any inquiry under section 5, the tribunal may, subject to any rules that may be prescribed by the state government in this behalf, follow such summary procedure as it deems fit2 of 1974(2) the tribunal shall have all the powers of a civil court for the purpose of taking evidence on oath and of enforcing the attendance of witnesses and of compelling the discovery and production of documents and material objects and for such other purposes as may be prescribed; and the tribunal shall be deemed to be a civil court for all the purposes of section 195 and chapter xxvi of the code of criminal procedure, 1973(3) subject to any rule that may be made in this behalf, the tribunal may, for the purpose of adjudicating and deciding upon any claim for maintenance, choose one or more persons possessing special knowledge of any matter relevant to the inquiry to assist it in holding the inquiryorder for maintenance9 (1) if children or relatives, as the case may be, neglect or refuse to maintain asenior citizen being unable to maintain himself, the tribunal may, on being satisfied of such neglect or refusal, order such children or relatives to make a monthly allowance at such monthly rate for the maintenance of such senior citizen, as the tribunal may deem fit and to pay the same to such senior citizen as the tribunal may, from time to time, direct(2) the maximum maintenance allowance which may be ordered by such tribunal shall be such as may be prescribed by the state government which shall not exceed ten thousand rupees per monthalteration in allowance10 (1) on proof of misrepresentation or mistake of fact or a change in thecircumstances of any person, receiving a monthly allowance under section 5, for the maintenance ordered under that section to pay a monthly allowance for the maintenance, the tribunal may make such alteration, as it thinks fit, in the allowance for the maintenance(2) where it appears to the tribunal that, in consequence of any decision of a competent civil court, any order made under section 9 should be cancelled or varied, it shall cancel the order or, as the case may be, vary the same accordingly11 (1) a copy of the order of maintenance and including the order regarding expenses of proceedings, as the case may be, shall be given without payment of any fee to the seniorenforcement of order of maintenancecitizen or to parent, as the case may be, in whose favour it is made and such order may be enforced by any tribunal in any place where the person against whom it is made, such tribunal on being satisfied as to the identity of the parties and the non-payment of the allowance, or as the case may be, expenses, due2 of 1974(2) a maintenance order made under this act shall have the same force and effect as anorder passed under chapter ix of the code of criminal procedure, 1973 and shall be executed in the manner prescribed for the execution of such order by that code2 of 1974option regarding maintenance in certain cases12 notwithstanding anything contained in chapter ix of the code of criminalprocedure, 1973, where a senior citizen or a parent is entitled for maintenance under the said chapter and also entitled for maintenance under this act may, without prejudice to the provisions of chapter ix of the said code, claim such maintenance under either of those acts but not under bothdeposit ofmaintenance amount13 when an order is made under this chapter, the children or relative who is requiredto pay any amount in terms of such order shall, within thirty days of the date of announcing the order by the tribunal, deposit the entire amount ordered in such manner as the tribunal may directaward of interest where any claim is allowed14 where any tribunal makes an order for maintenance made under this act, suchtribunal may direct that in addition to the amount of maintenance, simple interest shall also be paid at such rate and from such date not earlier than the date of making the application as may be determined by the tribunal which shall not be less than five per cent and not more than eighteen per cent:2 of 1974provided that where any application for maintenance under chapter ix of the codeof criminal procedure, 1973 is pending before a court at the commencement of this act, then the court shall allow the withdrawal of such application on the request of the parent and such parent shall be entitled to file an application for maintenance before the tribunalconstitution of appellate tribunal15 (1) the state government may, by notification in the official gazette, constitute one appellate tribunal for each district to hear the appeal against the order of the tribunal(2) the appellate tribunal shall be presided over by an officer not below the rank ofdistrict magistrateappeals16 (1) any senior citizen or a parent, as the case may be, aggrieved by an order of atribunal may, within sixty days from the date of the order, prefer an appeal to the appellatetribunal:provided that on appeal, the children or relative who is required to pay any amount in terms of such maintenance order shall continue to pay to such parent the amount so ordered, in the manner directed by the appellate tribunal:provided further that the appellate tribunal may, entertain the appeal after the expiry of the said period of sixty days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time(2) on receipt of an appeal, the appellate tribunal shall, cause a notice to be served upon the respondent(3) the appellate tribunal may call for the record of proceedings from the tribunal against whose order the appeal is preferred(4) the appellate tribunal may, after examining the appeal and the records called for either allow or reject the appeal(5) the appellate tribunal shall, adjudicate and decide upon the appeal filed against the order of the tribunal and the order of the appellate tribunal shall be final:provided that no appeal shall be rejected unless an opportunity has been given to both the parties of being heard in person or through a duly authorised representative(6) the appellate tribunal shall make an endeavour to pronounce its order in writing within one month of the receipt of an appeal(7) a copy of every order made under sub-section (5) shall be sent to both the parties free of costright to legal representation17 notwithstanding anything contained in any law, no party to a proceeding before a tribunal or appellate tribunal shall be represented by a legal practitionermaintenance officer18 (1) the state government shall designate the district social welfare officer or an officer not below the rank of a district social welfare officer, by whatever name called as maintenance officer(2) the maintenance officer referred to in sub-section (1), shall represent a parent if he so desires, during the proceedings of the tribunal, or the appellate tribunal, as the case may be chapter iii establishment of oldage homesestablishment of oldage homes19 (1) the state government may establish and maintain such number of oldage homes at accessible places, as it may deem necessary, in a phased manner, beginning with at least one in each district to accommodate in such homes a minimum of one hundred fifty senior citizens who are indigent(2) the state government may, prescribe a scheme for management of oldage homes, including the standards and various types of services to be provided by them which are necessary for medical care and means of entertainment to the inhabitants of such homesexplanation—for the purposes of this section, "indigent" means any senior citizen who is not having sufficient means, as determined by the state government, from time to time, to maintain himself chapter iv provisions for medical care of senior citizen20 the state government shall ensure that,—medical support for senior citizen(i) the government hospitals or hospitals funded fully or partially by the government shall provide beds for all senior citizens as far as possible;(ii) separate queues be arranged for senior citizens; (iii) facility for treatment of chronic, terminal and degenerative diseases is expanded for senior citizens;(iv) research activities for chronic elderly diseases and ageing is expanded; (v) there are earmarked facilities for geriatric patients in every district hospital duly headed by a medical officer with experience in geriatric care chapter v protection of life and property of senior citizen21 the state government shall, take all measures to ensure that—(i) the provisions of this act are given wide publicity through public media including the television, radio and the print, at regular intervals;measures for publicity, awareness, etc, for welfare of senior citizen(ii) the central government and state government officers, including the police officers and the members of the judicial service, are given periodic sensitization and awareness training on the issues relating to this act;(iii) effective co-ordination between the services provided by the concerned ministries or departments dealing with law, home affairs, health and welfare, to address the issues relating to the welfare of the senior citizens and periodical review of the same is conductedauthorities who may be specified for implementing the provisions of this act22 (1) the state government may, confer such powers and impose such duties on a district magistrate as may be necessary, to ensure that the provisions of this act are properly carried out and the district magistrate may specify the officer, subordinate to him, who shall exercise all or any of the powers, and perform all or any of the duties, so conferred or imposed and the local limits within which such powers or duties shall be carried out by the officer as may be perescribed(2) the state government shall prescribe a comprehensive action plan for providing protection of life and property of senior citizenstransfer of property to be void in certain circumstances23 (1) where any senior citizen who, after the commencement of this act, has transferred by way of gift or otherwise, his property, subject to the condition that the transferee shall provide the basic amenities and basic physical needs to the transferor and such transferee refuses or fails to provide such amenities and physical needs, the said transfer of property shall be deemed to have been made by fraud or coercion or under undue influence and shall at the option of the transferor be declared void by the tribunal(2) where any senior citizen has a right to receive maintenance out of an estate and such estate or part thereof is transferred, the right to receive maintenance may be enforced against the transferee if the transferee has notice of the right, or if the transfer is gratuitous; but not against the transferee for consideration and without notice of right(3) if, any senior citizen is incapable of enforcing the rights under sub-sections (1)and (2), action may be taken on his behalf by any of the organisation referred to in explanation to sub-section (1) of section 5 chapter vi offences and procedure for trialexposure and abandonment of senior citizen24 whoever, having the care or protection of senior citizen leaves, such senior citizen in any place with the intention of wholly abandoning such senior citizen, shall be punishable with imprisonment of either description for a term which may extend to three months or fine which may extend to five thousands rupees or with bothcognizance of offences2 of 197425 (1) notwithstanding anything contained in the code of criminal procedure, 1973,every offence under this act shall be cognizable and bailable(2) an offence under this act shall be tried summarily by a magistrate chapter vii miscellaneous45 of 186026 every officer or staff appointed to exercise functions under this act shall bedeemed to be a public servant within the meaning of section 21 of the indian penal codeofficers to be public servants jurisdiction of civil courts barred27 no civil court shall have jurisdiction in respect of any matter to which anyprovision of this act applies and no injunction shall be granted by any civil court in respect of anything which is done or intended to be done by or under this actprotection of action taken in good faith28 no suit, prosecution or other legal proceeding shall lie against the centralgovernment, the state governments or the local authority or any officer of the government in respect of anything which is done in good faith or intended to be done in pursuance of this act and any rules or orders made thereunderpower to remove difficulties29 if any difficulty arises in giving effect to the provisions of this act, the stategovernment may, by order published in the official gazette, make such provisions not inconsistent with the provisions of this act, as appear to it to be necessary or expedient for removing the difficulty:provided that no such order shall be made after the expiry of a period of two years from the date of the commencement of this act30 the central government may give directions to state governments as to the carrying into execution of the provisions of this actpower of central government to give directions31 the central government may make periodic review and monitor the progress of the implementation of the provisions of this act by the state governmentspower of central government to review32 (1) the state government may, by notification in the official gazette, make rules for carrying out the purposes of this actpower of state government to make rules(2) without prejudice to the generality of the foregoing power, such rules may provide for—(a) the manner of holding inquiry under section 5 subject to such rules as may be prescribed under sub-section (1) of section 8;(b) the power and procedure of the tribunal for other purposes under subsection (2) of section 8;(c) the maximum maintenance allowance which may be ordered by the tribunal under sub-section (2) of section 9;(d) the scheme for management of oldage homes, including the standards and various types of services to be provided by them which are necessary for medical care and means of entertainment to the inhabitants of such homes under sub-section (2) of section 19;(e) the powers and duties of the authorities for implementing the provisions of this act, under sub-section (1) of section 22;(f) a comprehensive action plan for providing protection of life and property of senior citizens under sub-section (2) of section 22;(g) any other matter which is to be, or may be, prescribed(3) every rule made under this act shall be laid, as soon as may be after it is made, before each house of state legislature, where it consists of two houses or where such legislature consists of one house before that house———— a billto provide for more effective provisions for the maintenance and welfare of parents and senior citizens guaranteed and recognised under the constitution and for matters connected therewith or incidental thereto————(as passed by lok sabha)mgipmrnd—5237ls(s5)—05122007 | Parliament_bills | 56191886-0e6f-59c1-9608-a47ae87788fc |
bill no 125 of 2014 the constitution (amendment) bill, 2014 by shri pp chaudhary, mp a bill further to amend the constitution of indiabe it enacted by parliament in the sixty-fifth year of the republic of india as follows:—short title1 this act may be called the constitution (amendment) act, 20142 in the seventh schedule to constitution,—(i) in list ii-state list, entry 17 shall be omitted; and amendment of the seventh schedulenamely:—"32a water, that is to say, water supplies, irrigation and canals, drainage and embankments, water storage and water power subject to the provisions of entry 56 of list i" statement of objects and reasonslife is impossible without water all living beings including human, animals and plants need water for their survival therefore, it is desirable that requisite amount of water is available without any hindrance for drinking and irrigationaround ninety-seven per cent of the water on the earth is salty water and only three per cent is fresh water; slightly over two thirds of this fresh water is frozen in the form of glaciers and polar ice caps the remaining unfrozen fresh water is found mainly as ground waterground water is a renewable resource, yet the world's supply of ground water is steadily decreasing with the depletion of water table, most prominently in asia and north america it is still not clear that how much natural renewal balance of fresh water is available or whether ecosystem will be threatened for want of fresh water in near future the framework for allocating water resources to water users where such a framework exists is known as water rightsat present, water is a state subject and is considered as primary responsibility of the state governmentsthe bill seeks to amend that seventh schedule to the constitution with a view to transfer entry 17 of list ii-state list pertaining to 'water', to list iii-concurrent list so that the parliament and the central government can also play their due role for conservation and sustainable use of water to meet the growing needs of the societyhence this billnew delhi;p p chaudharynovember 12, 2014 annexureextract from the constitution of india list ii-state list17 water, that is to say, water supplies, irrigation and canals, drainage and embankments, water storage and water power subject to the provisions of entry 56 of list i lok sabha————— a billfurther to amend the constitution of india—————(shri pp chaudhary, mp)gmgipmrnd—2714ls(s3)—26-11-2014 | Parliament_bills | 91ec7d5a-8d50-525b-92f3-2c6b1001231b |
annexureextract from the multi-state co-operative societies act, 1984 (51 of 1984) chapter iv direction and management of multi-state co-operative societies29 (1) general body, its constitution, powers and functions (3) where in any meeting of the general body or the board of a muli-state co-operative society, a co-operative society or another multi- state co-operative society is to be represented, such co-operative society or other multi-state co-operative society shall be represented in such meeting only through the chairman or the chief fxecutive of such co-operative society or other multi-state co-operative society, as the case may be, and where 'here is no board of such co-operative society or other multi-state co-operative society, for whatever reasons, through the adminis'rator, by whatever name called, of such co-operative so-~ ciety or other multi-state co-operative society, | Parliament_bills | a9f16ab1-1e0b-502e-9cdb-917c0ace8962 |
memorandum regarding delegated legislationclause 11 of the bill empowers the central government to make rules for carrying out the provisions of the bill as the rules to be made will relate to matters of detail only, the a delegation of legislative power is of a normal character | Parliament_bills | 0b4c2fb0-d8a8-526a-84de-e5bc5cd19352 |
bill no 83 of 2007 the constitution (scheduled tribes) order (amendment) bill, 2007 by dr r senthil, mp a billfurther to amend the constitution (scheduled tribes) order, 1950be it enacted by parliament in the fifty-eighth year of the republic of india as follows:—short title1 this act may be called the constitution (scheduled tribes) order (amendment)act, 2007co 2252 in the schedule to the constitution (scheduled tribes) order, 1950, in part xiv,—tamil nadu, for entry 18 , the following entry shall be substituted, namely :—amendment of the schedule"18 kuruman, kurumbas, kurumans, kurumba, kuruba and kurumba gounder" statement of objects and reasonskuruman, kurumbas, kurumans, kurumba, kuruba and kurumba gounder are all synonyms of one tribe the people belonging to these tribes are living in various parts of the state of tamil nadu they have same culture but the constitution (scheduled tribes) order, 1950 has mentioned only kurumans in the list of scheduled tribes the other names are not mentioned in the constitution (scheduled tribes) order, 1950 due to difference of one or two letters in the names of kuruman, kurumbas, kurumba, kuruba and kurumba gounder tribes, the people of this tribe are not considered as scheduled tribes hence the people belonging to these communities are not getting the benefits available to the scheduled tribesthe state government of tamil nadu has recognised the demand of persons belonging to these tribes and forwarded their requests to the union government for necessary action urgentlyhowever, there has been undue delay in including the names of these tribes in the list of scheduled tribes, which has caused lots of hardship to them a large number of youth belonging to these communities are not able to get benefits of reservation in the matters of admission in professional colleges and jobs under the state as the names of aforesaid tribes are not mentioned in the constitution (scheduled tribes) order, 1950 this position has to be rectifiedthe present bill seeks to amend the constitution (scheduled tribes) order, 1950 in order to include all the synonyms of kurumans tribe in the list of scheduled tribes of the state of tamil naduthe bill seeks to achieve the above objectivesnew delhi;r senthilnovember 8, 2007 financial memorandumthe bill seeks to include kuruman, kurumbas, kurumba, kuruba and kurumba gounder community in the list of scheduled tribes in respect of the state of tamil nadu by way of amending the constitution (scheduled tribes) order, 1950 the bill, if enacted, would involve recurring and non-recurring expenditure on account of the benefits to be given under the schemes and programmes of the government meant for social, educational and economic development of the scheduled tribes at this stage, it is not possible to mention the exact amount which may be incurred on this account however, it is estimated that a sum of approximately rupees twenty-five crore is likely to be involved as a recurring expenditure per annuma non-recurring expenditure of about rupees fifty crore is also likely to be involved annexure extract from the constitution (scheduled tribes) order, 1950 co 22(part iii—rules and orders under the constitution)part xiv—tamil nadu18 kurumans lok sabha———— a billfurther to amend the constitution (scheduled tribes) order, 1950————(dr r senthil, mp)mgipmrnd—4483ls(s5)—16-11-2007 | Parliament_bills | 8e190c28-d2d5-5866-8d78-f071488b7af1 |
bill no xvi of 2008 the constitution (amendment) bill, 2008 a billfurther to amend the constitution of indiabe it enacted by the parliament in the fifty-ninth year of the republic of india as follows:—1 (1) this act may be called the constitution (amendment) act, 2008short title, and commencement5(2) it shall come into force on such date as the central government may, by notificationin the official gazette, appoint2 after article 330 of the constitution, the following article shall be inserted namely:—''330a (1) seats shall be reserved for women in the house of the peopleinsertion of new article 330a10(2) not less than one-third of the total number of seats reserved under clause (2)of article 330 shall be reserved for women belonging to the scheduled castes or, as the case may be, the scheduled tribes:reservation of seats for women in the house of the peopleprovided that nothing in this clause shall apply in relation to a state or union territory so long as the number of seats reserved for scheduled castes or scheduled tribes, as the case may be, in the state or union territory, is less than three5(3) not less than one-third (including the number of seats reserved for women belonging to the scheduled castes and the scheduled tribes) of the total number of seats to be filled by direct election to the house of the people in a state or union territory shall be reserved for women and such seats may be allotted by rotation to different constituencies in the state or union territory:10provided that nothing in this clause shall apply in relation to a state or union territory so long as the number of seats allotted to such state or union territory is less than three''3 after article 332 of the constitution, the following article shall be inserted namely:—insertion of new article 332a15''332a (1) seats shall be reserved for women in the legislative assembly of every statereservation of seats for women in the legislative assemblies of the states(2) not less than one-third of the total number of seats reserved under clause (3)of article 332 shall be reserved for women belonging to the scheduled castes or, as the case may be, the scheduled tribes:20provided that nothing in this clause shall apply in relation to a state so long as the number of seats reserved for scheduled castes or scheduled tribes, as the case may be, in that state, is less than three25(3) not less than one-third (including the number of seats reserved for women belonging to the scheduled castes and the scheduled tribes) of the total number of seats to be filled by direct election in the legislative assembly of every state shall be reserved for women and such may be allotted by rotation to different constituencies in the state:provided that nothing in this clause shall apply in relation to a state so long as the number of seats allotted to such state is less than three''304 the amendments made to the constitution, by this act, shall not affect any representation in the house of the people or in the legislative assembly of the state until the dissolution of the house or the assembly, as the case may be in existence at the commencement of this actamendment not to affect the representation in the house of the people or legislative assembly statement of objects and reasonsarticles 243d and 243t inserted by the constitution (seventy-third amendment) act,1992 and the constitution (seventy-fourth amendment) act, 1992 respectively provide that not less than one-third of the seats shall be reserved for women in every panchayat and every municipality further, the said articles provide that, from amongst the seats reserved for the scheduled castes and the scheduled tribes, not less than one-third seats shall be reserved for women belonging to the scheduled castes or, as the case may be, the scheduled tribes the said articles also provide that such seats reserved for women may be allotted by rotation to different constituencies2 having provided reservation for women in panchayats and municipalities, it is now proposed to provide reservation for women on the same lines in the house of the people and in the legislative assemblies of the states by amending the constitution the major political parties are in favour of making such reservation for women3 the bill seeks to achieve the aforesaid objectbrinda karat————a billfurther to amend the constitution of india————(shrimati brinda karat, mp) | Parliament_bills | f2a4b689-376f-5961-b947-0b9f88e95675 |
bill no 164 of 2017 the repealing and amending (second) bill, 2017 a billto repeal certain enactments and to amend certain other enactmentsbe it enacted by parliament in the sixty-eighth year of the republic of india as follows:—short title1 this act may be called the repealing and amending (second) act, 2017 2 the enactments specified in the first schedule are hereby repealedrepeal of certain enactments53 the enactments specified in the second schedule are hereby amended to theextent and in the manner mentioned in the fourth column thereofamendment of certain enactmentssavings4the repeal by this act of any enactment shall not affect any other enactment in which the repealed enactment has been applied, incorporated or referred to;10and this act shall not affect the validity, invalidity, effect or consequences ofanything already done or suffered, or any right, title, obligation or liability already acquired, accrued or incurred, or any remedy or proceeding in respect thereof, or any release or discharge of or from any debt, penalty, obligation, liability, claim or demand, or any indemnity already granted, or the proof of any past act or thing;nor shall this act affect any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure, or existing usage, custom, privilege, restriction, exemption, office or appointment, notwithstanding that the same respectively may have been in any manner affirmed or recognised or derived by, in or from any enactment hereby repealed;nor shall the repeal by this act of any enactment revive or restore any jurisdiction, office, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other matter or thing not now existing or in force the first schedule (see section 2) repeals| year | act no | short title ||--------------|-----------|-----------------------------------------------------------------------------|| 1 | 2 | 3 || central acts | | || 1850 | xxi | the caste disabilities removal act, 1850 || 1857 | vii | the madras uncovenanted officers act, 1857 || 1857 | xxi | the howrah offences act, 1857 || 1859 | xii | the calcutta pilots act, 1859 || 1862 | iii | the government seal act, 1862 || 1873 | xvi | the north-western provinces village and road police act, 1873 || 1875 | xx | the central provinces laws act, 1875 || 1876 | xix | the dramatic performances act, 1876 || 1879 | xiv | the hackney-carriage act, 1879 || 1879 | xix | the raipur and khattra laws act, 1879 || 1881 | xiii | the fort william act, 1881 || 1882 | xxi | the madras forest (validation) act, 1882 || 1883 | x | the bikrama singh's estates act, 1883 || 1886 | xxi | the oudh wasikas act, 1886 || 1888 | iii | the police act, 1888 || 1888 | viii | the indian tolls act, 1888 || 1893 | ii | the porahat estate act, 1893 || 1895 | xv | the government grants act, 1895 || 1897 | viii | the reformatory schools act, 1897 || 1911 | x | the prevention of seditious meetings act, 1911 || 1912 | vii | the bengal, bihar and orissa and assam laws act, 1912 || 1917 | xxv | the sir currimbhoy ebrahim baronetcy (amendment) act, 1917 || 1921 | xvii | the cattle-trespass (amendment) act, 1921 || 1931 | xx | the sheriff of calcutta (powers of custody) act, 1931 || 1932 | xi | the public suits validation act, 1932 || 1932 | xxiv | the bengal suppression of terrorist outrages (supplementary) act, 1932 || 1938 | xx | the criminal law amendment act, 1938 || 1941 | iv | the berar laws act, 1941 || 1942 | xviii | the weekly holidays act, 1942 || 1943 | xxiii | the war injuries (compensation insurance) act, 1943 || 1947 | xvi | the trading with the enemy (continuance of emergency provisions) act, 1947 || 1948 | 26 | the junagadh administration (property) act, 1948 || 1949 | 51 | the requisitioned land (apportionment of compensation) act, 1949 || 1949 | 61 | the professions tax limitation (amendment and validation) act, 1949 || 1950 | iv | the preventive detention act, 1950 || 1 | 2 | 3 ||------|-------|------------------------------------------------------------------------|| 1950 | l | the preventive detention (amendment) act, 1950 || 1950 | 67 | the cooch-behar (assimilation of laws) act, 1950 || 1951 | 3 | the part b states (laws) act, 1951 || 1951 | iv | the preventive detention (amendment) act, 1951 || 1951 | 51 | the railway companies (emergency provisions) act, 1951 || 1951 | 66 | the part c states (miscellaneous laws) repealing act, 1951 || 1951 | 70 | the displaced persons (debts adjustment) act, 1951 || 1952 | 1 | the part b states marriages validating act, 1952 || 1952 | xxxiv | the preventive detention (amendment) act, 1952 || 1952 | lxi | the preventive detention (second amendment) act, 1952 || 1954 | 4 | the abducted persons (recovery and restoration) amendment act, 1954 || 1954 | 7 | the government of part c states (amendment) act, 1954 || 1954 | 15 | the transfer of evacuee deposits act, 1954 || 1954 | 20 | the absorbed areas (laws) act, 1954 || 1954 | 36 | the chandernagore (merger) act, 1954 || 1954 | 51 | the preventive detention (amendment) act, 1954 || 1955 | 19 | the commanders-in-chief (change in designation) act, 1955 || 1955 | 30 | the abducted persons (recovery and restoration) continuance act, 1955 || 1956 | 4 | the bar councils (validation of state laws) act, 1956 || 1956 | 50 | the indian cotton cess (amendment) act, 1956 || 1956 | 65 | the abducted persons (recovery and restoration) continuance act, 1956 || 1956 | 88 | the representation of the people (miscellaneous provisions) act, 1956 || 1956 | 97 | the delhi tenants (temporary protection) act, 1956 || 1957 | 32 | the forward contracts (regulation) amendment act, 1957 || 1957 | 37 | the legislative councils act, 1957 || 1957 | 54 | the preventive detention (continuance) act, 1957 || 1959 | 24 | the pharmacy (amendment) act, 1959 || 1960 | 31 | the tripura municipal law (repeal) act, 1960 || 1960 | 47 | the bilaspur commercial corporation (repeal) act, 1960 || 1960 | 48 | the mahendra pratab singh estates (repeal) act, 1960 || 1960 | 53 | the tripura excise law (repeal) act, 1960 || 1962 | 62 | the emergency risks (goods) insurance act, 1962 || 1962 | 63 | the emergency risks (factories) insurance act, 1962 || 1963 | 29 | the institutes of technology (amendment) act, 1963 || 1963 | 56 | the delhi development (amendment) act, 1963 || 1964 | 23 | the delhi (delegation of powers) act, 1964 || 1965 | 50 | the goa, daman and diu (absorbed employees) act, 1965 || 1967 | 16 | the anti-corruption laws (amendment) act, 1967 || 1969 | 41 | the international monetary fund and bank (amendment) act, 1969 || 1971 | 65 | the asian refractories limited (acquisition of undertaking) act, 1971 || 1 | 2 | 3 ||------------------------------------------------------------------------------|-----|-----------------------------------------------------------------------------------------|| 1971 | 68 | the uttar pradesh cantonments (control of rent and eviction) (repeal) act, 1971 || 1972 | 36 | the coking coal mines (nationalisation) act, 1972 || 1973 | 26 | the coal mines (nationalisation) act, 1973 || 1975 | 19 | the all-india services regulations (indemnity) act, 1975 || 1976 | 22 | the assam sillimanite limited (acquisition and transfer of refractory plant) act, 1976 || 1976 | 28 | the parliamentary proceedings (protection of publication) repeal act, 1976 || 1976 | 76 | the national library of india act, 1976 || 1976 | 89 | the indian iron and steel company (acquisition of shares) act, 1976 || 1976 | 96 | the braithwaite and company (india) limited (acquisition and transfer of undertakings) || act, 1976 | | || 1977 | 16 | the disputed elections (prime minister and speaker) act, 1977 || 1977 | 41 | the smith, stainstreet and company limited (acquisition and transfer of undertakings) || act, 1977 | | || 1977 | 42 | the gresham and craven of india (private) limited (acquisition and transfer of || undertakings) act, 1977 | | || 1978 | 13 | the hindustan tractors limited (acquisition and transfer of undertakings) act, 1978 || 1978 | 42 | the bolani ores limited (acquisition of shares) and miscellaneous provisions act, 1978 || 1979 | 12 | the punjab excise (delhi amendment) act, 1979 || 1980 | 58 | the bengal chemical and pharmaceutical works limited (acquisition and transfer of || undertakings) act, 1980 | | || 1983 | 35 | the dangerous machines (regulation) act, 1983 || 1984 | 39 | the punjab municipal (new delhi amendment) act, 1984 || 1984 | 43 | the aluminium corporation of india limited (acquisition and transfer of aluminium || undertaking) act, 1984 | | || 1984 | 57 | the bengal immunity company limited (acquisition and transfer of undertakings) || act, 1984 | | || 1985 | 80 | the customs (amendment) act, 1985 || 1987 | 36 | the brentford electric (india) limited (acquisition and transfer of undertakings) || act, 1987 | | || 1993 | 24 | the national thermal power corporation limited, the national hydroelectric power || corporation limited and the north-eastern electric power corporation limited | | || (acquisition and transfer of power transmission systems) act, 1993 | | || 1994 | 56 | the neyveli lignite corporation limited (acquisition and transfer of power transmission || system) act, 1994 | | || 1999 | 6 | the delhi development authority (validation of disciplinary powers) act, 1998 || 1999 | 8 | the customs (amendment) act, 1998 || 1999 | 49 | the copyright (amendment) act, 1999 || 2000 | 20 | the direct-tax laws (miscellaneous) repeal act, 2000 || 2000 | 48 | the forfeiture (repeal) act, 2000 || 2001 | 33 | the influx from pakistan (control) repealing (repeal) act, 2001 || 2001 | 36 | the indian universities (repeal) act, 2001 || 2001 | 37 | the auroville (emergency provisions) repeal act, 2001 || 2001 | 41 | the central sales tax (amendment) act, 2001 || 1 | 2 | 3 ||-----------------------------------------|------|------------------------------------------------------------------------------------------|| 2001 | 47 | the two-member constituencies (abolition) and other laws repeal act, 2001 || 2002 | 57 | the mysore state legislature (delegation of powers) repeal act, 2002 || 2002 | 65 | the countess of dufferin's fund (repeal) act, 2002 || 2002 | 66 | the prevention of food adulteration (extension to kohima and mokokchung districts) || repeal act, 2002 | | || 2002 | 70 | the refugee relief taxes (abolition) repeal act, 2002 || 2003 | 2 | the cable television networks (regulation) amendment act, 2002 || 2005 | 38 | the displaced persons claims and other laws repeal act, 2005 || 2005 | 44 | the immigration (carriers' liability) amendment act, 2005 || 2006 | 3 | the central sales tax (amendment) act, 2005 || 2006 | 18 | the national commission for minority educational institutions (amendment) act, 2006 || 2006 | 24 | the cess laws (repealing and amending) act, 2006 || 2006 | 29 | the taxation laws (amendment) act, 2006 || 2006 | 32 | the spirituous preparations (inter-state trade and commerce) control (repeal) act, 2006 || 2006 | 46 | the produce cess laws (abolition) act, 2006 || 2006 | 49 | the indian rifles (repeal) act, 2006 || 2007 | 24 | the mizoram university (amendment) act, 2007 || 2007 | 39 | the competition (amendment) act, 2007 || 2008 | 25 | the central universities laws (amendment) act, 2008 || 2009 | 39 | the competition (amendment) act, 2009 || 2010 | 20 | the national commission for minority educational institutions (amendment) act, 2010 || 2010 | 33 | the jharkhand panchayat raj (amendment) act, 2010 || 2012 | 27 | the copyright (amendment) act, 2012 || 2012 | 31 | the central educational institutions (reservation in admission) amendment act, 2012 || ordinances made by the governor-general | | || 1941 | vii | the war injuries ordinance, 1941 || 1942 | xx | the collective fines ordinance, 1942 || 1942 | xli | the armed forces (special powers) ordinance, 1942 || 1944 | xxi | the public health (emergency provisions) ordinance, 1944 || 1945 | xxiv | the war gratuities (income-tax exemption) ordinance, 1945 || 1945 | xxx | the secunderabad marriage validating ordinance, 1945 || 1946 | ii | the bank notes (declaration of holdings) ordinance, 1946 || 1946 | vi | the criminal law amendment ordinance, 1946 || 1946 | x | the termination of war (definition) ordinance, 1946 | the second schedule (see section 3) amendments| year | act no | short title | amendments ||--------------------------------------|-------------------------------------------|---------------------------------------------------|---------------------------------------------|| 1 | 2 | 3 | 4 || 1951 | 69 | the plantations labour act, 1951 | in section 43, sub-section ( || 4 | | | || ) shall be | | | || omitted | | | || 2016 | 2 | the juvenile justice (care and protection of | in section 69, in sub-section ( || 2 | | | || ), for the | | | || children) act, 2015 | words, brackets and letters "mentioned at | | || ( | | | || d | | | || ) to ( | | | || f | | | || )", the words, brackets, letters and | | | || figure "mentioned at clauses ( | | | || d | | | || ) to ( | | | || f | | | || ) of | | | || sub-section ( | | | || 1 | | | || )" shall be substituted | | | || 2016 | 49 | the rights of persons with disabilities act, 2016 | in section 76, after the word, brackets and || letter, "clause ( | | | || b | | | || )", the words, brackets and | | | || figure "of sub-section ( | | | || 1 | | | || )" shall be inserted | | | | statement of objects and reasonsthis bill is one of those periodical measures by which enactments which have ceased to be in force or have become obsolete or the retention whereof as separate acts is unnecessary are repealed or by which the formal defects detected in enactments are corrected2 the notes which follow explain the reasons for the amendments suggested in such of those items of the bill in respect whereof some detailed explanation is necessary3 clause 4 of the bill contains a precautionary provision in the form of saving clause which it is usual to include in the bill of this kindnew delhi;ravi shankar prasadthe 8th august, 2017 ———— president's recommendation under article 117 of the constitution of india ————[letter no 1(7)/2017-li dated 882017 from shri ravi shankar prasad, minister of law and justice to the secretary general, lok sabha]the president, having been informed of the subject matter of the proposed bill, recommends under clause (1) of article 117 of the constitution of india, the introduction of the repealing and amending (second) bill, 2017 in lok sabha notes on the second schedule1 the plantations labour act, 1951—the amendment proposed to the act seeks to rectify the mistake that had inadvertently crept in the said act2 the juvenile justice (care and protection of children) act, 2015—the amendment proposed to the act seeks to rectify patent errors3 the rights of persons with disabilities act, 2016—the amendment proposed to the act seeks to rectify patent errors annexure extract from the plantation labour act, 1951(69 of 1951) 43 (1) general power to make rules(4) every rule made by the state government under this act shall be laid, as soon as may be after it is made, before the state legislature ———— extract from the juvenile justice (care and protection of children) act, 2015(2 of 2016) 69 (1) steering committee of authority(2) criteria for the selection or nomination of the members mentioned at (d) to (f), their tenure as well as the terms and conditions of their appointment shall be such as may be prescribed ———— extract from the right of persons with disabilities act, 2016(49 of 2016) 76 whenever the chief commissioner makes a recommendation to an authority in pursuance of clause (b) of section 75, that authority shall take necessary action on it, and inform the chief commissioner of the action taken within three months from the date of receipt of the recommendation:action of appropriate authorities on recommendation of chief commissionerprovided that where an authority does not accept a recommendation, it shall convey reasons for non-acceptance to the chief commissioner within a period of three months, and shall also inform the aggrieved person ———— a billto repeal certain enactments and to amend certain other enactments————gmgipmrnd—1823ls—08-08-2017 | Parliament_bills | 892c9f4b-0682-545d-b785-b6e83267f5ed |
the insurance (amendment) bill, 1955- (as introduced in lok sabha) the insurance (amendment) bill, i955 (as introduced in lok sabha)a bill further to amend the insurance act, 1938 be it enacted by parliament in the sixth year of the republic of india as follows:-1 (1) this act may be called th~ insurance (amendment) act, slort title and com-1955 \ mencement ~ (2) it shall be deemed to have come into force on the first day - of november, 1955 iv ':if 1938 2 in the insurance act, 1938 (hereinafter referred to as the insertion of princ~pal act), after sectiori 52b, the following section shall be ~;bbc:ction inserted, namely:-10 "52bb (1) if the administrator is satisfied that any person powers of has rendered himself liable to be proceeded against under section adminiltra-106, he may, pending the institution of proceedings against such ~~~ r~:~~;ty person under that section, by order in writing, prohibit him or liable to any ot~er person from transferring or otherwise disposing of any ~m:::-15 property which, in the opinion of the administrator, would be tion 106 liable to attachment in proceedings under that section 20 (2) any person aggrieved by an order made by the administrator under sub-section (1) may, within fourteen days from the date on which the order is served on him, appeal against such order to the central government, and the central government may pass such order thereon as it thinks fit (3) an order made by the administrator under sub-section (1) shall, subject to any order made by the central government on appeal, be in force fur a period of three months from the date of the order unless, before the expiry of the said period, an application is made under sub-section (1) of section 106 to the court competent to exercise jurisdiction under that subsection, and when such an application is made, the order shall, 5 subject to any order made by that court, continue in force as if it were an order of attachment made by that court in proceedings under that section (4) an order made by the administrator under this section 10 shall,-(a) in the case of an order affecting a corporation or firm, be served in the manner provided for the service of summons in rule 2 of order xxix or rule 3 of order xxx, as the case may be, in the first schedule to the code of civil procedure, 1908, and is vii of 1908 (b) in the case of an order affecting a person not being a corporation or firm, be served on such person-(i) personally, by delivering or tendering to him the order, or 20 (ii) by post, or (i'ii) where the person cannot be found, by leaving a copy of the order with some adult male member of his family or by affixing such copy to some conspicuous part of the permises in which he is known to have last resided or carried on business or personally worked for gain, 2s and every such order shall also be published in the official gazette (5) if any question arises whether a person was duly served with an order under sub-section (4), the publication of the order in the official gazette shall be conclusive proof that the order 30 was so served, and a failure to comply with the provisions of clause (a) or clause (b) of sub-section (4) shall not affect the validi ty of the order (6) notwithstanding anything contained in this section, any property in respect of which an order has been made by the 35 administrator may, with the previous permission of the administrator and subject to such terms and conditions as he may impose, be transferred or otherwise disposed of (1) notwithstanding anything contained in any other law for the time being in force, the transfer or other disposition of 40 any property in contravention of any order made by the administrator under this section or of any terms and conditions imposed by him shall be void s )0 xlv of 1860 (8) for the purpose of enabling him to form an opinion as to whether anyproperty would be liable to attachment in proceedings under section 106 or for the purpose of enabling him to institute proceedings under that section, the administrator may require any person to furnish information on such points or matters as, in thz opinion of the administrator, may be relevant for thz purpose, and any person so required shall be deemed to be legally bound to furnish such information within the meaning of section 176 of the indian penal code vof 1908 is (9) the administrator shall have all the powers of a civil court under the code of civil procedure, 1908, while trying a suit in respect of the following matters, namely:-(a) summoning and enforcing the attendance of witnesses and examining them on oath; (b) requiring the production of documents; and (c) receiving evidence on affidavits; 20 and any proceeding before the administrator under this section shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the indian penal code xlvofi860 (10) save as provided in this section or in section 106, and notwithstanding anything contained in any other law for the time being in force,-(a) no suit or other legal proceeding shall lie in any court to set aside or modify any order of the administrator or the central government made under this section, and ~o (b) no court shall pass any dzcree, grant any injunction or make any other order which shall have the effect of nullifying or affecting in any way any such order" 3 in section 52g of the principal act, in sub-section (1), for the amendment words and figures "sections 52a to 52c inclusive", the following shall of section be substituted, namely: _ )2g "section 52a, section 52b, section 52bb or section 52c" 3s substitution 4 for section 106 of the principal act, the following section shall ~~:efur':_ be, and shall b~ deemed always to have been, substituted, namely:-don 106 "106 (1) if, on the application of the controller or an administrator appointed under section 52a or an insurer or any policy-holder or any member of an insurance company or the 5 liquidator of an insurance company (in the" event of the insurance company b~ing in liquidation), the court is satisfied-power of court to order restoratiol1 of property of insurer or compensadod in certain cases (a) that any insurer (including in any case where the insurer is an insurance company any person who has taken part in the promotion or formation of the insurance com- 10 pany or any past or present director, managing agent, manager, secretary or liquidator) or any officer, employee or agent of the insurer,-(i) has misapplied or retained or become liable or become accountable for any money or property of the i ~ insurer; or (ii) has been guilty of any misfeasance or breach of trust in relation to the insurer; or (b) that any person, whether he is or has been in any way connected with the affairs of the insurer or not, is in 20 wrongful possession of any money or property of the insur~r or having any such money or property in his possession wrongfully withholds it or has converted it to any use other than that of the insurer; or (c) that by reason of any contravention of the provi- 25 sions of this act, the amount of the life insurance fund has been diminished; the court may examine any such insurer, director, managing agent, manager, secretary or liquidator or any such officer, employee or agent of the insurer or such other person, as the case may be, 30 and may compel him to contribute such sums to the assets of the insurer by way of compensation in respect of the misapplication, retainer, misfeasance or breach of trust as the court thinks fit, or to pay such sum as may be found due from him in respect of any money or property of the insurer for which he is liable 35 or accountable or to restore any money or property of the insurer or any- part thereof, as the case may be; and where the amount of the life insurance fund has been diminished by reason of any contravention of the- provisions of this act, the court shall have power to assess the sum by which the amount of the fund has been 40 diminished and to order the person guilty of such contravention to contribute to the fund the whole or any part of that sum by way of compensation; and in any of the aforesaid cases the court shan have power to order interest to be paid at such rate and from such time as the court may deem fit (2) without prejudice to the provisions contained in sub-, section (1) or sub-section (3), where it is proved that any money or property of an insurer has disappeared or has been lost, the court shall presume that every person in charge of, or having a disposing power over, such money or property at the relevant time (whether a director, manager, principal officer or, any other 10 officer) has become accountable for such money or property within the meaning of sub-clause (i) of clause (a) of subsection (1), and the provisions of that sub-section shall apply accordingly, unless such person proves that the money or property has been utilised or disposed of in the ordinary course of is the business of the insurer and for the purpose of that business or that he took all reasonable steps to prevent the disappearance or loss of such money or property or otherwise satisfactorily accounts for such disappearance or loss (3) where the insurer is an insurance company and any of ~o the acts referred to in clauses (a), (b) and (c) of sub-section (1) has been committed by any person, every person who was at the relevant time al director, managing agent, manager, liquidator, secretary ·or other officer of the insurance company shall, for the purposes of that sub--section, be deemed to be liable for 2s that act in the same manner and to the same extent as the person who has committed the act, unless he proves that the act was committed without his consent or connivance and was not facllitated by any neglect or omission on his part (4) where at any stage of the proceedings against any person 30 under this section (hereinafter referred to as the delinquent), the court is satisfied by affidavit or otherwise-(a) that a: ptima facie case has been made out against ~he delinquent; and (b) that it is just and proper so to db in the interests 3' of the policy-holders of an insurer or of the members of an insurance company, the court may direct the attachment of-(i) any property of the insurer in the possession of the delinquent; (it) any property of the delinquent which belongs to him or is deemed to belong to him within the meaning of sub-section (5); (iii) any property transferred by the delinquent within two years before the commencement of proceedings under sub-section (1) or during the pendency of such proceedings, if the court is satisfied by affidavit or otherwise that the transfer was otherwise than in good s faith and for consideration (5) for the purposes of sub-section (4), the following classes of property shall be deemed to belong to a delinquent,-(a) any property standing in the name of any person which by reason of the person being connected with the ic> delinquent, whether by way of relationship or otherwise, or on account of any other relevant circumstances a'ppears to belong to the delinquent; (b) the property of a private company in respect of the affairs of which the delinquent, by himself or through hisls nominees, relatives, partners or persons interested in any shares of the company is able to exercise or i~ entitled to acquire control, whether direct or indirect explanation-for the purposes of this section a person shall be deemed to be a nominee of a delinquent, if, whether directly 20-or indirectly, he possesses on behajf of the delinquent, or may be required to exercise on the direction or on behalf of the delinquent, any right or power which is of such a nature as to enable the delinquent to exercise or'to entitle the delinquent to acquire control over the company's affairs los (6) any claim to any property attached under this section or any objection to such attachment shall be made by an applicatiojl to the court, and it shall be for the claimant or objector to adduce evidence to show that the property is not liable to attachment under thjs section, and the court shall proceed to 3c> investigate the claim or objection in a' summary manner (7) when disposing of an application under sub-section (1), the court shall, after giving all persons who appear to it to be interested in any property attached under this section an opportunjty of being heard, make such order as it thinks fit respecting the 35 disposal of any such property for the purpose of effectually enforcing any liability under this section, and all such persons shall be deemed to be parties to the proceedings under this section (8) in any proceedings under this section the court shall 40' have full power and exclusive jurisdiction to decide all questions of any nature whatsoever arising thereunder and, in particula,r, with respect to any property attached under this section, and no other court shall have jurisdjction to decide any such question in any suit or other legal proceeding (9) in making any order with respect to the disposal of the property of any private company referred to in clause (b) of sub-section (5), the court shall have due regard to the interests of all persons interested in such property other than the delinquent and persons referred to in that clause 10 (10) this section shall apply notwithstanding that the act is one for which the person concerned may be criminally liable vii of 1913· (11) in proceedings under this section the court shall have au the powers which a court has under section 237 of the indian companies act, 1913 is (12) this section shall apply jn respect of a provident society as defined in part iii as it applies in respect of an insurer 20 (13) on and from the commencement of the insurance (amendment) act, 1955, the court entitled to exercise jurisdiction under this section shall be the high court within whose jurisdiction the registered office of the insurer is situate (hereinafter referred to as the high court) and any proceedings under this section pending at such commencement in any court other than the high court shall, on such commencement, stand transferred to the high court - 2s (14) the high court may make rules providing for-(a) the manner in which enquiries and proceedings may be held under this section; (b) any other matter for which provision has to be made for enabling the high court to effectively exercise its jurisdiction under this section 5 in section 107 of the principal act, in sub-section (1),-amendment of section 107· (a) after the words "the controller", the words and figures "or an administrator appointed under section 52a" shall be 3s inserted~ (b) fof the words, brackets and figures "any director, manager ot other officer of an insurer or any person who is liable under sub-section (2) of section 41", the words, brackets and figures "any director, managing agent, manager, secretary or other officer of an insurer or any liquidator or any employee or agent of an insurer or any person who is liable under sub-section (2) of section 41 or any other person" shall be substituted ~ 6 6 the insurance (amendment) ordinance, 1955, is hereby 5 of i9!is repealed statement of objects and reasonsthe scope of the existing section 106 of th~ insurance act is somewhat limited it has proved inadequate for dealing with cases where the diminution of the life insurance fund has occurred because of some action other than a contravention of the act or by a person who is not in any way connected with the insurer there is also the danger that a delinquent in order to evade any decree that may be passed against him in proceedings under section 106 may fraudulently conceal or transfer his property the scope of section 106 is, therefore, being enlarged to include within its ambit all possible cases of misfeasance the court exercising jurisdiction under that sectjon is also being empowered to attach-(a) any property of the insurer in the possession of the delinquent; (b) any property of the delinquent which belongs to him or which although ostensibly standing in the name of any other person (including a private company which is controlled by the delinquent) really belongs to him; and (c) any property transferred by the delinquent within two years before the commencement of the proceedings against him or during the pendency of such proceedings 2 it is possible that in' certain cases the delinquent may conceal or transfer his property before any proceedings are instituted against him' under section 106 in order to meet such a situation, an administrator appointed under section 52a is being empowered, pending the institution of proceedings by him under section 106 against the delinquent, to attach any property which may be liable to attachment by the court in proceedings under that section an order of attachment made by the administrator whl have effect for a period of two months only but subject to any order made by the court will continue in force if proceedings under section 106 are instituted before the expiry of that period 3 since section 106 in its revised form confers very wide powers upon the court, the jurisdictjon under that section will henceforth' be exercised by a high court 4 the bill makes certain other incidental and consequential amendments in the principal act new delhi; c d deshmukh the 28th november, 1955 annexure extracts from the insurance act, 1938 (iv of 1938) - • - •pr~tectioll of 520 (1) no suit, prosecution or other legal proceeding shall lie ~d~~ ra:! against an administrator for anything which is in good faith done tions s2a to or intended to be done in pursuance of sections 52a to 52c inclusive 520 - - - - wrongfully 106 (1) if on the application of the controller or an insurer or ~}~:~=ce any member of an insurance company or any policy-holder or the fund liquidator of an insurance company (in the event of the insurer being in liquidation) the court is satisfied that by reason of any contravention of the provisions of this act the amount of the life insurance fund has been diminished, every person who was at the time of the contravention a director, manager, liquidator or an officer of the insurer shall be deemed in respect of the contravention to have been guilty of misfeasance in relation to the insurer unless he proves that the contravention occurred without his consent or connivance and was not facilitated by any neglect or omission on his part; and the court shall have au the powers which a court has under sections 235 and 237 of the indian' companies act, 1913, and vii of 1913 shall also have the power to assess the sum by which the amount of the life insurance fund has been diminished by reason of the misfeasance and to order any person guilty thereof to contribute to that fund the whole or any part of that sum ~ way of compensation (2) this section shall apply in respect of a provident society as defined in part iii as it applies in respect of an insurer - - - 1 previous 107 (1) except where proceedings are instituted by the con-~=teof troller no proceedings under this act against an insurer or any ~er&! cor director, manager ot other officer of an insurer or any person who ;=:p~f is liable under sub-section (2) of section 41 shall be instituted by any person unless he has previous thereto obtained the sanction of the advocate general of the state where' the principal place of business in the states of such insurer is situate to the institution of such proceedings: provided that where the principal place of business of such insurer is situated in a part c state references in this section to advocate general of the province shall be construed as references to the attorney general for india - - - - - a bill funher to amend the insurance act,· 1938 (shri c d deshmukh, minister of finance) gipd-lad-i401 ls-3o-ii-ss-i600 | Parliament_bills | 112a7cd3-6a2b-570e-9ebc-4abc5d51d6fb |
bill no 223 of 2017 the press council (amendment) bill, 2017 byshri ninong ering, mp a billfurther to amend the press council act, 1978be it enacted by parliament in the sixty-eighth year of the republic of india as follows:—1 (1) this act may be called the press council (amendment) act, 2017short title and commencement(2) it shall come into force on such date, as the central government may, by notification, in the official gazette, appoint5amendment of section 22 in the press council act, 1978 (hereinafter referred to as the principal act), in section 2, after clause (d), the following clause shall be inserted, namely:—"(e) "press" includes newspapers, new channels and news agencies;"5substitution of certain words with other words throughout the act3 in the principal act, for the words "newspapers and news agencies", "newspapers or news agencies" and "the newspaper, the news agency", wherever they occur, the words "newspapers, news agencies and news channels", "newspapers or news agencies or news channels" and "the newspaper, the news agency and the news channel", respectively, shall be substituted4 in section 5 of the principal act,—amendment of section 5(a) for sub-section (1), the following sub-section shall be substituted, namely:—"(1) the council shall consist of a chairman and twenty other members";(b) for sub-section (3), the following sub-section shall be substituted, namely:—"(3) of the other members—1015(a) ten shall be nominated in accordance with such procedure as may be prescribed from among the working journalists in newspapers and news channels other than editors, so, however, that the number of such editors and working journalists other than editors in relation to newspapers published or news channels broadcasted, as the case may be, in indian languages shall be not less than two and one, respectively;20(b) six shall be nominated in accordance with such procedure as may be prescribed from among persons who own or carry on the business of management of newspapers and news channels, so, however, that there shall be one representative each from the categories of big newspapers, medium newspapers, small newspapers, big news channels, medium news channels and small news channels;(c) one shall be nominated in accordance with such procedure asmay be prescribed from among persons who manage news agencies;25(d) three shall be members of parliament of whom two shall benominated by the speaker from among the members of the house of the people (lok sabha) and one shall be nominated by the chairman of the council of states (rajya sabha) from among its members:30provided that no working journalist who owns, or carries on thebusiness of management of, any newspaper or news channel shall beeligible for nomination under clause (a):35provided further that the nomination under clause (a) and clause(b) shall be so made that the among the persons nominated there is not more than one person interested in any newspaper or group of newspapers or news channel or group of news channels under the same control or managementexplanation—"for the purpose of clause (b),—(i) a 'newspaper' shall be deemed to be categorized as big, medium or small newspaper on the basis of its circulation per issue, as the central government, may, by notification in the official gazette, notify from time to time40(ii) a 'news channel' shall be deemed to be categorized as big, medium or small news channel on the basis of its viewership, as the central government, may, by notification in the official gazette, notify from time to time"amendment of section 13455 in section 13 of the principal act, in sub-section (2), after clause (i), the following clause shall be inserted namely:—"(ia) to facilitate the constitution and promotion of inter-industry, private and self regulatory institutions of newspapers and news channels and ensure their proper functioning;" statement of objects and reasonsthe press council act provides constitution of "the press council of india" for purpose of preserving the freedom of the press and for maintaining and improving the standards of newspapers and news agencies in indiaduring the period of enactment of the act, only the industry of newspapers and news agencies existed television was in experimental phase with development of audio-visual and satellite technologies, television news channels emerged as a major industry with greater share in information industry and greater influence on perception of citizens therefore, for improving the standards and to curb the malpractices of the broadcast news, the news channels are needed to be brought under the control of the press council of indiathe large number of members in the council leads to slow decision making besides, there are representatives from such government institutions which do not hold much relevance in relation to the news industry, say, representatives of the ugc, the bar council of india, and the sahitya academy the need is to reduce the number of representatives from the parliament from five to three to reduce the political influence on the council hence, the bill proposes to reduce the number of members of the council from twenty-eight to twenty, and its provisions include representatives from the news channel industryself regulation leads to better maintenance of the industry and lesser conflicts the basic elements of self-regulation usually consists of a code of practice or guidelines adopted by the industry and processes by which application of the code or principles may be assessed, complaints handled and corrections applied therefore, besides regulation by a public institution, the inter-industry regulation should be encouraged the bill also seeks to include the provision to constitute, promote and check the functioning of self regulatory institutions for newspapers and news channels within the purview of the press council of indiahence this billnew delhi;ninong eringnovember 28, 2017 annexure (extracts from the constitution of india)definitions2 (a) (b) (c) (d) "prescribed" means prescribed by rules made under this act;| | | | | (e) | | | | ||----|----|----|----|----------|------|------|------|-----|| | | | | | | | | |5 (1) the council shall consist of a chairman and twenty-eight other members(2) composition of the council(3) of the other members— (a) thirteen shall be nominated in accordance with such procedure as may be prescribed from among the working journalists, of whom six shall be editors of newspapers and the remaining seven shall be working journalists other than editors; so, however, that the number of such editors and working journalists other than editors in relation newspapers published in indian languages shall be not less than three and four respectively;(b) six shall be nominated in accordance with such procedure as may be prescribed from among persons who own or carry on the business of management of newspapers, so, however, that there shall be two representatives from each of the categories of big newspapers, medium newspapers and small newspapers;(c) one shall nominated in accordance with such procedure as may be prescribed from among persons who manage news agencies;(d) three shall be persons having special knowledge or practical experience in respect of education and science, law, and literature and culture of whom respectively one shall be nominated by the university grants commission, one by the bar council of india and one by the sahitya academy;(e) five shall be members of parliament of whom three shall be nominated by the speaker from among the members of the house of the people (lok sabha) and two shall be nominated by the chairman of the council of states (rajya sabha) from among its members:provided that no working journalist who owns, or carries on the business of management of, any newspaper shall eligible for nomination under clause (a):provided further that the nominations under clause (a) and clause (b) shall be so made that among the persons nominated there is not more than one person interested in any newspaper or group of newspapers under the same control of management[explanation—for the purposes of clause (b), a "newspaper" shall be deemed to be categorised as big, medium or small newspaper on the basis of its circulation per issue, as the central government may, by notification in the official gazette, notify from time to time] 13 (1) objects and functions of the council(2) (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) to do such other acts as may be incidental or conductive to the discharge of the above functions lok sabha———— a billfurther to amend the press council act, 1978————(shri ninong ering, mp)gmgipmrnd—2671ls(s3)—13-12-2017 | Parliament_bills | fc9464eb-0613-5456-9ca0-39268bab47fc |
bill no 29 of 1987 the appropriation (vote on account) bill, 1987a bill to provide for the withdrawal of certain s:ums from and out 01 the consolidated fund of imila ljm" the serviceis of a part of the financial year 1987-88 be it enacted by parliament in the thirty-eighth year of the republic of india as follows:-sh ort title 1 this act may be called the appropriation (vote on ac(;ount) act, 1987 i i 5 i from and out of the consolidated fund of india there may be withdrawn sums not exceeding those specified in column 3 of the schedule amounting in the aggregate to the sum of forty-two thousand two hundred and eleven cl'pres· and forty-one lakh rupees towards defraying the several charges which will come in course of payment during 10 ~he financial year 1987-88 withdrawal of rs 42211, 4100000 from 'and out of the consolidated fund of india for the iinancial year 1981-88 appro_ prilltinn 3 the sums authorised to be withdrawn from and out of the consolidated fund by this act shall be appropriated for the services and purpoes expressed in the schedule in relation to the said year 4 references to ministries or departments in the schedule are to j, such ministries or departments as existing immediately before the 10th february, 1987 and shall, on or after that date, be construed a's references to the appropriate ministries or departments as reconstituted from time to time construction of references to mini· tries aud departments in the schedule i ------1 1 i 2 3 -' --------, sums not ~xccedinl no serviccs and purposea ---------------------~-of i voted hy charaed on the 5 vote i parliament consolidated toeal fund ~----------------- - ------ - --------rs i ils ill apiculture revenue 4210,00,000 42,10,00,000 capital 2,06,00,000 4]031,00,000 4',39,00,000 10 2 othor services of department of aaricultla',' addccklponaon revenue 36,17,00,000 ! 36,17,00,000 capital 21,63,oo,-qoo ! 3,67"oo,fjdo di'3000,ooo 3 department of i agri-28,82,00,000 i 15 , cultural research i and education revenue 28,82,00,000 4 department of rural i dovelopmeat rcven1lo 691,96,00,000 j i'i91,96,oo,'ooo capital 6;00,000 6,00,000 20 , department or fertilizen luvc~ 462,10,00,000 roo,tj()o ~;11 joo,'ooo capital 72,11,00,000 : 4s,00,000 : 72,56,00,000 6 department, of commerce revenue 169,05,00,roo 1 69,o':tjo,ogg 25 capital 37,70,00,000 3'1,10;00,'1 7 dopartmcnt orsuppjr bvenuc 3,12,00,000 :1,00,000 3,14,00,000 8 mhustry of '(bmmu-1liqt,i0qa reveauo 1,22,00,000 1,22,8>,000 9 politai geryice itewoi1c 1~,98,00,ooo :i,oq,oqo 165,00,00,000 jo capital 6,17,00,000 6,17,00,000 !o telecommunication senice, r~ue 302,62,00,000 1,00,000 302,70,00,000 capital 159,85,00,000 r,oo,ooo i 159,86,00,000 11 midi,try of defence revenue 9',42,00,000 9',42,00,000 35 capital 23,42,00000 r "qd,cio,giio 24,42,og;_ 12 d~fodco hnaiona r~ h7,31;08,oeo rdo,ljoo 1 j '7',132jllo,a 13 defence serviaclt-ami, rewmie 1tot,2jjoo;oo& i rl,oo,ooo 1 un ,3'3;00,000 14 defence sefyiges-ntlvy revtnuc, lq1,$i,oi~ 100000 w;bjio,ooo-'1' j)o~ servieee-air force revenue 274,66,00,000 ijeq,oo 2704j68;otooo --------------------------~-------~----total no 8emooancl purpose' of vote sums not excoedina --~------------------~-voted by parliament ('harpi on the consolidated fund _________ if ___ ~__o ____ __________________ _ - r • rs as 1,00,000 11,00,00,000 11,01,00000 deiciace orc1nance factories revenue 661,75,00,000 cllpital olltjay on der"nce servit"e8 - capital 10 16 2) ,81,00,000 21 ,81,00,000 17 d-:plrtment or coal revenue 198,00,00,000 capital 43,26,00,000 "3,26,00,000 18 doplrtment or power revel'lue 272,09,00,000 4,88,1»,0«1 276,97,()()_ capital is j 9 d'partrmnt of non-16,92;01),000 16,92,00,000 conventionl·b~1jy sources revenue 61,00,000 61,00,000 capital 211171,00,000 28,71,00,000 20 ministry of b'!monmont and port its' revenue j ,36,00,000 39,00',000 capital i 91,00,000 i 1,00,000 56,69,00,000 "-70,00,000 21 ministry or bxternal awun re~n~ 33,34,00,100 33,34,00,000 capital i 85';10,00,000 65,00,00,000 25 22 departm"nt or economic affairs re~nue ) 6,ll,io,goo 16,21,00,000 capital 48,63,00,_ 48;63,00,000 23 cllttene)', coinaae pi!' stamj)s r~nue 32,53,00,_ 1,00,000 32,52,00,000 30 capital 24 paym"nts to pinan-56-00,000 56,69,00000 aial intitutions rewnue 962,53,oo,doo 962,53,00,000 capital 81,1&,10,000 25 79",",,01000 i,s8,,eoo 35' ·26 17io,22,go,1ido revenue 2'7 23~,20;goooo 990,9200,000 t1·~z8,oo,ooo pensiou ora-- r,ferrell n~i """tnr, to state oo~nmenta - 2397,23,oo,oim' 14,16,00,000 2181,0'1,00,000 2o,8u'o,000 20,83,00,000 i eapttal "-nl to gmem-imnt se~nts, ot • 2s790,8800,ooo 2s19088,00000 capital crait4dd- r~"" 'milt (if lh'lt 30 50,61,00,000 50,6100000 j)<on),rt ment of exponcltb&re - - - r~nue 29,76,00000 54,00,000 i 29,22,00,000 31 audit r~ 1 2 3 i sums not oxccedinl , , servicoa and purposes no of vote v~by aharaed on the total parliament consoli~ atcd fund 5 rs rs rs 32 department of reyenuc revenue 29,99,00,000 · 29,99,00,000 capital 33,00,000 33,00,000 direct taxes rc~~ 33 23,00,00,000 1,00,000 23,01 ,00,000 capital ~,oo,oo,ooo · ~,oo,oo,ooo indirect taxes re~n~ 34 77,48,00,000 1,00,000 77,49,00,000 capital 8,93,00,000 8,93,00,000 i i department of pood r~nue 35 3si,94,oo,000 1,00,000 m,95,oo,000 capital 17,47,00,000 1,00,000 17,48,00,000 2,26,00,000 2,26,00,000 department of ci~1 supplidl revenue capital 58,00,000 56,00,000 1,14,00,000 j)eparlmont of health revenue 37 58,18,00,000 i 1,00,000 58,19,00,000 capital 22,13,00,000 1,00,000 22,14,00,000 20 ; 38 108,05,00,000 108,05,00,000 department of pamily welfare - · revenue capital 18,00,000 18,00,000 39 21,84,00,000 1,00,000 21,85,00,000 ministry of home affairs · revenue 1,91,00,000 1,91,00,000 cabidot · · · revenue 1 164,30,00,000 1,00,000 164,3 j ,00,000 police · , revenue capital j 3,18,00,000 84,00,000 14,02,00,000 42 36,66,00,000 1,00,000 36,67,00,000 go other expenditure of the ministr1 home afrain - of · revenue i , capital 18,01,00,000 z,09,oo,ooo 20,10,00,000 5 21,43,00,000 · 21,43,00,000 transfen to union territory ool'a'llments · · revenue capital 18,49,00,000 18,49,00,000 44 181,83,00,000 181,83,00,000 department of education · revenue· capital 8,00,000 50,00,000 58,00,000 45 department of youth affairs and sports revenue 14,02,00,000 ~ 14,02,00,000 capital 58,00,000 · 58,00,000 art and culture rcveduc 46 22,84,00,000 · 22,84,00,000 swns not excecdinl no services and purposes v~dbv---i-cha~;d-o~-- -yot;l---of parliament the consoli-5 vote dated fund '-- -~-------------- -------- -- ---"- -- ----- rs rs rs 47 department of women and child developmant revenue 43,80,00,000 43,80,00,000 10 48 dopartment of industrial development r"venue 7603,00,000 1,50,00,000 77,53,00,000 capital 13,94,00,000 57,00,000 14,51,00,000 49 department of company altai rs revenue ] ,06,00,000 /,00,000 1,10,00,000 capital ],00,000 1,00,000 i~ so department of chemicals and petro-chemicals revenue 2,28,00,000 2,28,00,000 capital 29,17,00,000 29,]7,00,000 20 51 ' department of public "enterprises revenue 1,6300,000 1,63,00,000 capital 50,25,00,000 50,25,00,000 52 ministry of information and broadcastilll revenue 9,59,00,000 9,59,00000 25 capital 48,00,000 48,00,000 s3 broadcastins r ~rvic !s revenue 6217,opoc,o 100,000 62:1800000 capital 55,66,00,000 2,00000 55,68,00,000 54 ministry of labour revenue 27,8000000 1,00000 27,81,00000 ' capital 3,00000 3,00,000 30 55 l'lw and justice revenue 4,47,00,000 54,00,000 5,01,00,000 56 ministry of parllam:ntary affairs revenue ]2,00,000 12,00,000 57 ministry of fjrsonnel, 35 public grievances "and pensions revenue 5,48,00,000 1,00000 5,49,00000 capital 6'1,00,000 67,00,000 58 ministry of petroleum and natural gas, revenue 98,000\10 9800,000 40 capital 194,51,00,000 194,5] ,00,000 59 i plannina jte\oenue 1,91,00,000 1,91,00,000' m fdopartment of shtis-, tics revenue s,13,00,000 5,13,00,000 6] ministr}' of pro-45 gramme implementation revenue 12,00,0cl, 12,00,000 ~ department of science and technology revenue 25 t 900,000 i 25,]900000 capital imoo,ooo 1,44,00,000 sums not exccedinl --------------_ --no ,semces and purposes voted by charaed on total of parliament the consoli-vote dated fund j - ~-------- --------'-- -~-------rs ri ri 63 department of scientific and industrial rpscaidi - revenue 2972,00,000 29,72",00,000 capital 73,00,000 73,00,000 10 64 department of biotech-00101y revenue 6,83,00,000 fl;85,oo,ooo 6s department of steel revenue 5,54,00,000 5,54,00000 capital ] 39,07,00,000 6,8j,oo,000 145,90,00,000 66 department of mines rewnue 17,66,00,000 x,oo,ooo 17,67,00,000 15 capital 44,99,00,000 44,99,00,000 67 ministry of textiles revenue 68,94,00,000 68,94,00,000 capital 41,68,00,000 1,67,00000 43,35,00,000 68 'ministry of tourism reyedue 4,32,00,000 ·,32,00,000 capital 2,~4,oo,ooo '2,34,00,000 20 69 surface transport revenue 3,38,00;000 3,)8,go,ooo " capital 22,39,oo~000 20,00,000 22;59,00000 70 roads revenue 4j,52,oo~000 41,52,00,000 capital , 68,!io,oo;ooo 1,96,00,000 77;a6;oo,ooo 7] ports, lijhtbouses and sbippilll· revenue 21 ;24,00,000 21,24,00,000 25 capital 36, j3,oojooo 36,13,00,000 72 ministry of civil aviation - revenue 9,3] ,00,000 9,31,00000 capital 1,45,00,000 1,4',00;000 73 urban d~lapment and housina· revenue 12,8600,000 jioo,ooo 1324", 30 capital ] 5,54,00,000 ~,9'1,"oo,ooo 18,c7;do,0i0 74 ''''bile wms r(wnue 23,83,00,000 " 23,83,00,000 capital 1183,00,000 200td00 11 ,8500,000 75 staticmor'y and 'printina rewnae 11,23 00,100 :r,oo,ooo 1124,00000 capital 51,00,800', 5'8,00 000 55 76 ministry of water - revem1e 43,1300,000 x,oo,ooo e;14',eo,ooo capital 2,30,oo,eoo 1,11,00,000 10,87,00,000 77 ministry 01 welfare revenue 43,3600too 41 ~4,tjij,tjoo 90'~ capital 12,00,000 i2, ,000 4c 78 atomic bnersy revenue 420900,goo 42,09,00,000 capital 800300,000 80,03,00000 79 nllclear power schemes revenue 75,7100000 ",71 ,00,000 capital 4897,00,000 48,97,00,000 10 j)epartment of btec-13,18,00,000 trotdcl ri'vf'nue 13,1800,000 45 capital 9,53,00,000 9,53,00,000 ii j)epar tment of ocean revenue 4,07,00,000 ocv:lopment 4,0700,000 capital 39,00,000 39,00,000 50 statement of objects and :reasonsthis bill is introduced in pursuance of article 114(1) of the constitution of india, read with article 116 thereof, to provide for the appropriation from and out iof the consolidated fund of india of the moneys required to meet the expenditure charged on the consolidated fund and the grants made in advance by the lok sabha in respect of the estimated expenditure of the central government, excluding railways, for a part of the financial year 1987-88 b k gadhvi president's recommendation under articles 117 of the constitution of india[copy of letter no f2(1)-b(d)/87, dated the 5th march, 1987 from shri b k gadhvi, minister of state in the department of expenditure in the ministry of finan::e to the secretary-general, lok sabha] the president having been informed of the subject matter of the proposed bill to authorise payment and appropriation of certain sums from and out of the consolidated fund of india for the services of a part of the financial year 1987-88, recommends the introduction of the appropriation (vote on account) bill 1987 in lok sabha and also recommends to lok sabha the consideration of the bill under article 117(1) and (3) of the constitution of india read with article 116 (2) thereof 2 the bill will be introduced in lok sabha immediately aiter the demands for grants 'on account' for expenditure of the central government (excluding railways) for the year 1987-88 have been voted i a billto provide for the withdrawal of certain bums from and out of the consolidated fund of india for the services of a part of the financial year 1987-88 (shri b k gadjwi, minister of state in the department of expenditure in the min istry of finance) | Parliament_bills | f58d2c45-1606-5318-9bad-108fb20ef57b |
_e"':s the mica mines 'labour welfare fund (ambmddntj bill, 1980 bill/u'l'the1' to amend the mica mines labour welfare fund act, im6 be it enacted by parliament in the thirty-first year of the republic of india as follows:-1 this act may be called the mica mines labour welfare fund sbori (amendment) act, 1180 title 220! iht 5 z in secuon 6 of the mica mines labour welfare fund act, 1948, after sub-section (2), the following sub-section shall be inserted, namely:-amendmemo! bedion i (3) every rule made by the central government under this act shall be laid" as soon as may be after it is made, before each house 10 of parliament, while it is in sessfon, for a total period oi thirty days which may be comprised in one session or in two or mqj'e successive sessions, and if, before the expiry of the session immediately following the session or the succelbive sessions aforesaid, both houles agree in making any modification in the rule or both howles agree that the is rule should not be made, the rule shall thereafter have ejtect only in such modified form or be of no effect, al the cue may be; so, however, any loch modification or annulment shall be 'without prejudice to the valiciity of anything previously dorte under rule" statement of objects and reasonsthe mica mines labour welfare fund act, 1946 constitutes a fund for the financing of activities to promote the welfare of labour employed in the mica mining industry section 6 of the act empowers the central government to make rules to carry into effect the purposes of the act the act does not require the rules made by the central government to be laid before parliament 2 the committee on subordinate legislation (fifth lok sabha) in their fourteenth report desired that the government should undertake a review of all acts to find out which of them do not contain a provision for laying of rules kamed thereunder before parliament and should incorporate such provision in those acts the committee on subordinate legislation (sixth lok sabha) in their nineteenth report further desired that the necessary amending legislation be brought up at an early date it is pra,osed to accept these :recommendations of the committees on subordinate legislation and make a suitable amendment in the mica mines labour welfare fund act, 1946 the bill seels to achieve this object ;02~ :~ ~: ~' • j b patnaik "~n~'·'''''''·~''1 '_ ,~,~, , the 15th murch, 1980 a bill 1-" :' -fut1'ifirt to-1i'iiie'kci the mica- mme labour wel1are fund act, 1941, | Parliament_bills | ae5cf228-4421-5102-be9c-3485a1b20c6d |
as introduced in the rajya sabhaon 6th december, 2019 bill no xxxiii of 2019 the mangrove forests (special provisions) bill, 2019 a billto provide for the protection, development and afforestation of mangroves which are essential natural barriers against rising tides of various natures of vengeful sea when it roars ashore, by establiahing a national board for development of mangrove forests in the coastal areas of the country, proper use of dry wood of mangroves etc and for matters conneted therewith and incidental thereofbe it enacted by parliament in the seventieth year of the republic of india as follows:—1 (1) this act may be called the mangroves forests (special provisions) act, 2019(2) it extends to the whole of indiashort title, extent and commencement(3) it shall come into force with immediate effectdefinitions2 in this act, unless the context otherwise requires,—(a) "appropriate government" means in the case of a state, the government of that state, and in other cases, the central government;5(b) "board" means the national board for mangrove forests established under section 3;(c) "mangrove" include small shrubby, highly specialized plant which stick it out at the muddy edges of coast absorbing the corrosive action of salt water, filtering mud and sediment and putting away more carbon dioxide from atmosphere;(d) "prescribed" means precscribed by rules made under this act10establishment of the board3 (1) the central government shall, as soon as may be, but within six months of the commencement of this act, by notification in the official gazette, establish a board to be called "the national board for mangrove forests";15(2) the board shall be a body corporate, by the name aforesaid, having perpetual succession and a common seal with power to acquire, hold and dispose of properties, both movable and immovable and to contract and shall by the said name, sue or be sued;(3) the headquarters of the board shall be at aurangabad in the state of maharashtra and its regional offices shall be located in the capital of coastal states with their respective territorial jurisidiction;20(4) the board shall consists of a chairperson, a deputy chairperson and such other members as may be prescribed;(5) the central goverment shall provide to the board such number of officers and staff as may be necessary for the efficient functioning of the board25(6) the salaries and allowances payable to and other terms and conditions of service and qualifications of the chairperson, deputy chairperson, members, officers and staff of the board shall be such as may be prescribed;(7) the procedure to be followed by the board for its meeting shall be such, as may be prescribedfunctions of the board304 (1) the board shall formulate a scheme for the protection, development and afforestation of mangroves alongwith guidelines to cut and use mangroves for development projects, etc in the coastal areas of the country(2) without prejudice to the generally of the foregoing provision, such a scheme shall also provide for,—(i) educating people about the importance of mangroves in the coatal areas and the proper and judicious use of dry of mangrove branches and roots;(ii) guidelines for development projects in and around mangrove forests;35(iii) protection of species of marine mega fauna and dwellings for oysters, algae, barnacles, sponges, shrimps, mud oysters etc, several species of birds, reptiles and fish, winter migrant birds and nesting species;40(iv) involvement of locals of coastal areas including fishermen, boatmen etc, village panchayats of coastal villages and non-government organisations in protecting and afforestation of mangroves;(v) identifying news areas in coastal states where mangrove forests can be developed and steps for plantation of different species of mangroves in such area;45(vi) making recommendations to the appropriate government for substantially increasing areas of mangrove forests in coastal areas;(vii) such other measures as the board may deem necessary for the purpose of this act5 it shall be the duty of the appropriate government to implement the scheme prepared by the board in such manner as may be prescribedappropriate government to implement the scheme of the boardpenalty56 whoever destroys or causes harm to the mangrove forest in any manner without the permission of the board shall be guilty of an offence under this act and shall be liable for imprisonment for a term which may extend to three years and also with fine which may extend to five lakh rupees, depending on the severity of the offence committed by such offenderoffence by companies107 where an offence under this act has been committed by a company or body corporate, every person who at the time of the offence was committed, was incharge of, and was responsible to the company, for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:15provided that nothing in this section shall render any such person liable to any punishment proided in this act, if he proves that the offence was committed without his knowledge or that he exercised due diligence to prevent the commission of such offence8 the central government may give such directions, as it may consider necessary to the board for the effective implementation of the provisions of the actpower of central government to give directions9 the central government shall, after due appropriation made by parliament by law in this behalf, provide to the board by way of grants such sums of money as the board may require for the efficient implementation of this act20central government to provide requisite fundsannual report10 (1) the board shall prepare, in such form and at such time, as may be prescribed, its annual report, giving a true and full account of its activities during the previous financial year and submit a copy thereof to the central government25(2) the central government shall cause the annual report to be laid before each house of parliamentpower to make rules11 the central government may, by notification in the official gazette, make rules for carrying out the purposes of this act statement of objects and reasonsmangroves, usually consist of small, shrubby, highly specialized plants they stick it out at the muddy edges of the coast, absorbing the corrosive action of salt water which can peel the skin of our body if we immersed in it for to long, filtering mud and sediments and putting away more carbon dioxide from the atmosphere into "long term storage" than any of the world forest the nasa world's best space agency has called them the best carbon scrubbers mangroves are technical marvels as their roots grow upwards, sticking out into the air from the mud which enables them to breahe and deal with the low oxygen levels in the cloying mud they have sophisticated salt filtering system that can remove excess salt from the water and which we could potentially adapt for desalination plants they filter out heavy metals from the mud and deposit rich sediments their extensive root system slows down the tumult of the sea preventing the sort of erosion that we recently saw in keralamangrove forests grow in warm tropical and subtropical areas like estuaries and marine coastlines according to one report the total area in india under mangroves is 4921 sq kms, a little over 3 percent of the world total our largest and most famous mangrove forest is, of course, the sunderbans spanning both india and bangladesh and which has been declared a world heritage site and biosphere reserve by the unesco it is the largest delta clothed in mangrove forests and vast saline mudflats in the world it is home to the fiercest and the largest number of royal bengal tigers in the world it is also a haven for more than 250 species of birds, reptiles and over 120 species of fish and its beehives have tempted honey gatherers to rise their lives it serves as a flood barrier to kolkata, protecting the city from the ravages of cyclonic activity which is all too common in this area our second largest mangrove habitat is bhitarkanika on the odisha coast, an important ramsar wetland featuring saltwater crocodiles and the largest known nesting area for olive ridley sea turtles over 220 species of birds have been recorded here including 57 winter migrants and over 80 nesting specieson our western coast financial capital of the nation mumbai too has mangroves protecting it from tidal surges unfortunately some of them have been put on death row according to one report, between 1972 and 1975 over 200 kms of the maharasthra coast was covered with mangroves and by 2001 there was just 118 kms left now, about 1336 hactare of mangrove in the thane creek is under threat due to the bullet train project some 30,000 mangrove trees are to be cut though the government says that five times of the numbers shall be planted but mangroves can not simply be planted and ignoredsurely, the mangroves must be amongst the most remarkable and valuable plants in the world which thrive in a hostile environment and a very good counselor, sooth the seething temper of a vengeful sea when it roars ashore seeking what we robbed from it mangroves extensive root system slow down the tumult of the sea their greatest recent accomplishment was the taming of the boxing day tsunami in 2004 which killed so many people on unprotected coastlines the mangroves on our eastern shores behaved rather like a car's impact absorbing bumpers and crumble zones, swallowing the massive energy and impact of the wavesbut unfortunately we are destroying the mangrove forests they need to be protected and developed on a very large scale for this purpose a national board is proposed to be established under this bill to exclusively deal with mangroves in coastal areashence this bill financial memorandumclause 3 of the bill provides for the establishment of a national board for mangrove forests clause 9 makes it obligatory for the central government to provide requisite funds for effective implementation of the bill the bill, if enacted, will involve expenditure from the consolidated fund of india it is not possible to quantify the exact amount at this juncture but it is estimated that a sum of rupee-fifty thousand crore will involve as recurring expenditure per annuman expenditure of rupee sixty thousand crore may also involve as non-recurring expenditure for creating various assets memorandum regarding delegated legislationclause 11 of the bill empowers the central government to make rules for carrying out the purposes of the bill the rules will relate to matters of details only the delegation of legislation power is of normal character———— a billto provide for the protection, development and afforestation of mangroves which are essential natural barriers against rising tides of various natures of vengeful sea when it roars ashore, by establiahing a national board for development of mangrove forests in the coastal areas of the country, proper use of dry wood of mangroves etc and for matters conneted therewith and incidental thereto————(shri rajkumar dhoot, mp)mgipmrnd—4317rs(s3)—11-12-2019 | Parliament_bills | 162f70a8-65dc-5ef3-a107-6c26538bb024 |
the companies bill, 2011 ———— arrangement of clauses———— chapter i preliminary clauses1short title, extent, commencement and application2definitions chapter ii incorporation of company and matters incidental thereto3formation of company4memorandum5articles6act to override memorandum, articles, etc7incorporation of company8formation of companies with charitable objects, etc9effect of registration10effect of memorandum and articles11commencement of business, etc12registered office of company13alteration of memorandum14alteration of articles15alteration of memorandum or articles to be noted in every copy16rectification of name of company17copies of memorandum, articles, etc, to be given to members18conversion of companies already registered19subsidiary company not to hold shares in its holding company20service of documents21authentication of documents, proceedings and contracts22execution of bills of exchange, etc chapter iii prospectus and allotment of securities part i—public offer23public offer and private placement24power of securities and exchange board to regulate issue and transfer of securities, etc25document containing offer of securities for sale to be deemed prospectus26matters to be stated in prospectus27variation in terms of contract or objects in prospectus28offer of sale of shares by certain members of a company29public offer of securities to be in dematerialised form30advertisement of prospectus clauses31shelf prospectus32red herring prospectus33issue of application forms for securities34criminal liability for mis-statements in prospectus35civil liability for mis-statements in prospectus36punishment for fraudulently inducing persons to invest money37action by affected persons38punishment for personation for acquisition, etc, of securities39allotment of securities by company40securities to be dealt with in stock exchanges41global depository receiptpart ii—private placement42offer or invitation for subscription of securities on private placementchapter ivshare capital and debentures43kinds of share capital44nature of shares or debentures45numbering of shares46certificate of shares47voting rights48variation of shareholders' rights49calls on shares of same class to be made on uniform basis50company to accept unpaid share capital, although not called up51payment of dividend in proportion to amount paid-up52application of premiums received on issue of shares53prohibition on issue of shares at discount54issue of sweat equity shares55issue and redemption of preference shares56transfer and transmission of securities57punishment for personation of shareholder58refusal of registration and appeal against refusal59rectification of register of members60publication of authorised, subscribed and paid-up capital61power of limited company to alter its share capital62further issue of share capital63issue of bonus shares64notice to be given to registrar for alteration of share capital65unlimited company to provide for reserve share capital on conversion into limitedcompany66reduction of share capital67restrictions on purchase by company or giving of loans by it for purchase of its shares68power of company to purchase its own securities69transfer of certain sums to capital redemption reserve account clauses70prohibition for buy-back in certain circumstances71debentures72 power to nominate chapter v acceptance of deposits by companies73prohibition on acceptance of deposits from public74repayment of deposits, etc, accepted before commencement of this act75damages for fraud76acceptance of deposits from public by certain companies chapter vi registration of charges77duty to register charges, etc78application for registration of charge79section 77 to apply in certain matters80date of notice of charge81register of charges to be kept by registrar82company to report satisfaction of charge83 power of registrar to make entries of satisfaction and release in absence of intimationfrom company84intimation of appointment of receiver or manager85company's register of charges86punishment for contravention87rectification by central government in register of charges chapter vii management and administration88register of members, etc89declaration in respect of beneficial interest in any share90investigation of beneficial ownership of shares in certain cases91power to close register of members or debenture holders or other security holders92 annual return93return to be filed with registrar in case promoters' stake changes94place of keeping and inspection of registers, returns, etc95registers, etc, to be evidence96annual general meeting97power of tribunal to call annual general meeting98power of tribunal to call meetings of members, etc99punishment for default in complying with provisions of sections 96 to 98100calling of extraordinary general meeting101notice of meeting102statement to be annexed to notice103quorum for meetings clauses104chairman of meetings105proxies106restriction on voting rights107voting by show of hands108voting through electronic means109demand for poll110postal ballot111circulation of members' resolution112representation of president and governors in meetings113representation of corporations at meeting of companies and of creditors114ordinary and special resolutions115resolutions requiring special notice116resolutions passed at adjourned meeting117resolutions and agreements to be filed118minutes of proceedings of general meeting, meeting of board of directors and other meeting and resolutions passed by postal ballot119inspection of minute-books of general meeting120maintenance and inspection of documents in electronic form121report on annual general meeting122applicability of this chapter to one person company chapter viii declaration and payment of dividend123 declaration of dividend124unpaid dividend account125investor education and protection fund126right to dividend, rights shares and bonus shares to be held in abeyance pending registration of transfer of shares127punishment for failure to distribute dividends chapter ix accounts of companies128books of account, etc, to be kept by company129financial statement130re-opening of accounts on court's or tribunal's orders131voluntary revision of financial statements or board's report132constitution of national financial reporting authority133central government to prescribe accounting standards134financial statement, board's report, etc135corporate social responsibility136right of member to copies of audited financial statement137copy of financial statement to be filed with registrar138internal audit chapter x audit and auditors clauses139appointment of auditors140removal, resignation of auditor and giving of special notice141eligibility, qualifications and disqualifications of auditors142remuneration of auditors143powers and duties of auditors and auditing standards144auditor not to render certain services145auditors to sign audit reports, etc146auditors to attend general meeting147punishment for contravention148central government to specify audit of items of cost in respect of certain companies chapter xi appointment and qualifications of directors149company to have board of directors150manner of selection of independent directors and maintenance of data bank of independent directors151appointment of director elected by small shareholders152appointment of directors153application for allotment of director identification number154allotment of director identification number155prohibition to obtain more than one director identification number156director to intimate director identification number157company to inform director identification number to registrar158obligation to indicate director identification number159punishment for contravention160right of persons other than retiring directors to stand for directorship161appointment of additional director, alternate director and nominee director162appointment of directors to be voted individually163option to adopt principle of proportional representation for appointment of directors164disqualifications for appointment of director165number of directorships166duties of directors167vacation of office of director168resignation of director169removal of directors170register of directors and key managerial personnel and their shareholding171members' right to inspect172punishment chapter xii meetings of board and its powers 173 meetings of board clauses174quorum for meetings of board175passing of resolution by circulation176defects in appointment of directors not to invalidate actions taken177audit committee178nomination and remuneration committee and stakholders relationship committee179powers of board180restrictions on powers of board181company to contribute to bona fide and charitable funds, etc182prohibitions and restrictions regarding political contributions183power of board and other persons to make contributions to national defence fund, etc184disclosure of interest by director185loan to directors, etc186loan and investment by company187investments of company to be held in its own name188related party transactions189register of contracts or arrangements in which directors are interested190contract of employment with managing or whole-time directors191payment to director for loss of office, etc, in connection with transfer of undertaking, property or shares192restriction on non-cash transactions involving directors193contract by one person company194prohibition on forward dealings in securities of company by director or key managerial personnel195prohibition on insider trading of securities chapter xiii appointment and remuneration of managerial personnel196 appointment of managing director, whole-time director or manager197overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits198calculation of profits199power of central government or tribunal to accord approval, etc, subject to conditions and to prescribe fees on applications200central government or company to fix limit with regard to remuneration201forms of, and procedure in relation to, certain applications202compensation for loss of office of managing or whole-time director or manager203appointment of key managerial personnel204secretarial audit for bigger companies205functions of company secretary chapter xiv inspection, inquiry and investigation clauses206power to call for information, inspect books and conduct inquiries207conduct of inspection and inquiry208report on inspection made209search and seizure210investigation into affairs of company211establishment of serious fraud investigation office212investigation into affairs of company by serious fraud investigation office213investigation into company's affairs in other cases214security for payment of costs and expenses of investigation215firm, body corporate or association not to be appointed as inspector216investigation of ownership of company217procedure, powers, etc, of inspectors218protection of employees during investigation219power of inspector to conduct investigation into affairs of related companies, etc220seizure of documents by inspector221freezing of assets of company on inquiry and investigation222imposition of restrictions upon securities223inspector's report224actions to be taken in pursuance of inspector's report225expenses of investigation226voluntary winding up of company, etc, not to stop investigation proceedings227legal advisers and bankers not to disclose certain information228investigation, etc, of foreign companies229penalty for furnishing false statement, mutilation, destruction of documents chapter xv compromises, arrangements and amalgamations230power to compromise or make arrangements with creditors and members231power of tribunal to enforce compromise or arrangement232merger and amalgamation of companies233merger or amalgamation of certain companies234merger or amalgamation of company with foreign company235power to acquire shares of shareholders dissenting from scheme or contract approved by majority236purchase of minority shareholding237power of central government to provide for amalgamation of companies in public interest238registration of offer of schemes involving transfer of shares239preservation of books and papers of amalgamated companies240liability of officers in respect of offences committed prior to merger, amalgamation, etc chapter xvi prevention of oppression and mismanagement clauses241application to tribunal for relief in cases of oppression, etc242powers of tribunal243consequence of termination or modification of certain agreements244right to apply under section 241245class action246application of certain provisions to proceedings under section 241 or section 245 chapter xvii registered valuers247valuation by registered valuers chapter xviii removal of names of companies from the register of companies248power of registrar to remove name of company from register of companies249restrictions on making application under section 248 in certain situations 250 effect of company notified as dissolved 251 fraudulent application for removal of name 252appeal to tribunal chapter xix revival and rehabilitation of sick companies253 determination of sickness254application for revival and rehabilitation255exclusion of certain time in computing period of limitation256 appointment of interim administrator257committee of creditors258order of tribunal259appointment of administrator260powers and duties of company administrator261scheme of revival and rehabilitation262sanction of scheme263scheme to be binding264implementation of scheme265winding up of company on report of company administrator266power of tribunal to assess damages against delinquent directors, etc267punishment for certain offences268bar of jurisdiction269rehabilitation and insolvency fund chapter xx winding up270modes of winding up part i— winding up by the tribunal clauses271 circumstances in which company may be wound up by tribunal272petition for winding up273powers of tribunal274directions for filing statement of affairs275 company liquidators and their appointments276removal and replacement of liquidator277intimation to company liquidator, provisional liquidator and registrar278effect of winding up order279stay of suits, etc, on winding up order280jurisdiction of tribunal281submission of report by company liquidator282directions of tribunal on report of company liquidator283custody of company's properties284promoters, directors, etc, to co-operate with company liquidator285settlement of list of contributories and application of assets286obligations of directors and managers287advisory committee288submission of periodical reports to tribunal289power of tribunal on application for stay of winding up290powers and duties of company liquidator291provision for professional assistance to company liquidator292exercise and control of company liquidator's powers293books to be kept by company liquidator294audit of company liquidator's accounts295payment of debts by contributory and extent of set-off296power of tribunal to make calls297adjustment of rights of contributories298power to order costs299power to summon persons suspected of having property of company, etc300power to order examination of promoters, directors, etc301arrest of person trying to leave india or abscond302dissolution of company by tribunal303appeals from orders made before commencement of act part ii—voluntary winding up304circumstances in which company may be wound up voluntarily305declaration of solvency in case of proposal to wind up voluntarily306meeting of creditors307publication of resolution to wind up voluntarily308commencement of voluntary winding up309effect of voluntary winding up clauses310appointment of company liquidator311power to remove and fill vacancy of company liquidator312notice of appointment of company liquidator to be given to registrar313cesser of board's powers on appointment of company liquidator314powers and duties of company liquidator in voluntary winding up315appointment of committees316company liquidator to submit report on progress of winding up317report of company liquidator to tribunal for examination of persons318final meeting and dissolution of company319power of company liquidator to accept shares, etc, as consideration for sale of property of company320distribution of property of company321arrangement when binding on company and creditors322power to apply to tribunal to have questions determined, etc323costs of voluntary winding up part iii—provisions applicable to every mode of winding up324debts of all descriptions to be admitted to proof325application of insolvency rules in winding up of insolvent companies326overriding preferential payments327preferential payments328fraudulent preference329transfers not in good faith to be void330certain transfers to be void331liabilities and rights of certain persons fraudulently preferred332effect of floating charge333disclaimer of onerous property334transfers, etc, after commencement of winding up to be void335certain attachments, executions, etc, in winding up by tribunal to be void336offences by officers of companies in liquidation337penalty for frauds by officers338liability where proper accounts not kept339liability for fraudulent conduct of business340power of tribunal to assess damages against delinquent directors, etc341liability under sections 339 and 340 to extend to partners or directors in firms or companies342prosecution of delinquent officers and members of company343company liquidator to exercise certain powers subject to sanction344statement that company is in liquidation345books and papers of company to be evidence346inspection of books and papers by creditors and contributories347disposal of books and papers of company348information as to pending liquidations clauses349official liquidator to make payments into public account of india350company liquidator to deposit monies into scheduled bank351liquidator not to deposit monies into private banking account352company liquidation dividend and undistributed assets account353liquidator to make returns, etc354meetings to ascertain wishes of creditors or contributories355court, tribunal or person, etc, before whom affidavit may be sworn356powers of tribunal to declare dissolution of company void357commencement of winding up by tribunal358exclusion of certain time in computing period of limitation part iv—official liquidators359appointment of official liquidator360powers and functions of official liquidator361summary procedure for liquidation362sale of assets and recovery of debts due to company363settlement of claims of creditors by official liquidator364appeal by creditor365order of dissolution of company chapter xxi part i—companies authorised to register under this act366companies capable of being registered367 certificate of registration of existing companies368vesting of property on registration369saving of existing liabilities370continuation of pending legal proceedings371effect of registration under this part372power of court to stay or restrain proceedings373suits stayed on winding up order374obligation of companies registering under this part part ii—winding up of unregistered companies375winding up of unregistered companies376power to wind up foreign companies although dissolved377provisions of chapter cumulative378saving and construction of enactments conferring power to wind up partnership firm, association or company, etc, in certain cases chapter xxii companies incorporated outside india379application of act to foreign companies380documents, etc, to be delivered to registrar by foreign companies381accounts of foreign company clauses382display of name, etc, of foreign company383service on foreign company384debentures, annual return, registration of charges, books of account and their inspection385fee for registration of documents386interpretation387dating of prospectus and particulars to be contained therein388provisions as to expert's consent and allotment389registration of prospectus390offer of indian depository receipts391application of sections 34 to 36 and chapter xx392punishment for contravention393company's failure to comply with provisions of this chapter not to affect validity of contracts, etc chapter xxiii government companies394annual reports on government companies395annual reports where one or more state governments are members of companies chapter xxiv registration offices and fees396registration offices397admissibility of certain documents as evidence398provisions relating to filing of applications, documents, inspection, etc, in electronicform399inspection, production and evidence of documents kept by registrar400electronic form to be exclusive, alternative or in addition to physical form401provision of value added services through electronic form402application of provisions of information technology act, 2000403fee for filing, etc404fees, etc, to be credited into public account chapter xxv companies to furnish information or statistics405power of central government to direct companies to furnish information or statistics chapter xxvi nidhis406power to modify act in its application to nidhis chapter xxvii national company law tribunal and appellate tribunal 407 definitions408constitution of national company law tribunal409qualification of president and members of tribunalclauses410constitution of appellate tribunal411qualification of chairperson and members of appellate tribunal412selection of members of tribunal and appellate tribunal413term of office of president, chairperson and other members414salary, allowances and other terms and conditions of service of members415acting president and chairperson of tribunal or appellate tribunal416resignation of members417removal of members418staff of tribunal and appellate tribunal419benches of tribunal420orders of tribunal421appeal from orders of tribunal422expeditious disposal by tribunal and appellate tribunal423appeal to supreme court424procedure before tribunal and appellate tribunal425power to punish for contempt426delegation of powers427president, members, officers, etc, to be public servants428protection of action taken in good faith429power to seek assistance of chief metropolitan magistrate, etc430civil court not to have jurisdiction431vacancy in tribunal or appellate tribunal not to invalidate acts or proceedings432right to legal representation433limitation434transfer of certain pending proceedings chapter xxviii special courts435establishment of special courts436offences triable by special courts437appeal and revision438application of code to proceedings before special court439offences to be non-cognizable440transitional provisions441compounding of certain offences442mediation and conciliation penal443power of central government to appoint company prosecutors444appeal against acquittal445compensation for accusation without reasonable cause446application of fines chapter xxix miscellaneous447punishment for fraud448punishment for false statements clauses449punishment for false evidence450punishment where no specific penalty or punishment is provided451punishment in case of repeated default452punishment for wrongful withholding of property453 punishment for improper use of "limited" or "private limited"454adjudication of penalties455dormant company456protection of action taken in good faith457non-disclosure of information in certain cases458delegation by central government of its powers and functions459powers of central government or tribunal to accord approval, etc, subject to conditions and to prescribe fees on applications460condonation of delay in certain cases461annual report by central government462power to exempt class or classes of companies from provisions of this act463power of court to grant relief in certain cases464prohibition of association or partnership of persons exceeding certain number465repeal of certain enactments and savings466dissolution of company law board and consequential provisions467power of central government to amend schedules468powers of central government to make rules relating to winding up469power of central government to make rules470power to remove difficulties schedule ischedule ii schedule iii schedule iv schedule v schedule vi schedule vii bill no 121 of 2011 the companies bill, 2011 a billto consolidate and amend the law relating to companiesbe it enacted by parliament in the sixty-second year of the republic of india as follows:— chapter i preliminaryshort title, extent, commencement and applicationact and any reference in any provision to the commencement of this act shall be construed as a reference to the coming into force of that provision(4) the provisions of this act shall apply to—(a) companies incorporated under this act or under any previous company law;54 of 193841 of 1999(b) insurance companies, except in so far as the said provisions are inconsistent with the provisions of the insurance act, 1938 or the insurance regulatory and development authority act, 1999;10 of 1949(c) banking companies, except in so far as the said provisions are inconsistent with the provisions of the banking regulation act, 1949;1036 of 2003(d) companies engaged in the generation or supply of electricity, except in so far as the said provisions are inconsistent with the provisions of the electricity act, 2003;(e) any other company governed by any special act for the time being in force, except in so far as the said provisions are inconsistent with the provisions of such special act; and15(f) such body corporate, incorporated by any act for the time being in force, as the central government may, by notification, specify in this behalf, subject to such exceptions, modifications or adaptation, as may be specified in the notificationdefinitions2 in this act, unless the context otherwise requires,—20(1) "abridged prospectus" means a memorandum containing such salient features of a prospectus as may be specified by the securities and exchange board by making regulations in this behalf;(2) "accounting standards" means the standards of accounting or any addendum thereto for companies or class of companies referred to in section 133;25(3) "alter" or "alteration" includes the making of additions, omissions and substitutions;(4) "appellate tribunal" means the national company law appellate tribunal constituted under section 410;30(5) "articles" means the articles of association of a company as originally framed or as altered from time to time or applied in pursuance of any previous company law or of this act;(6) "associate company", in relation to another company, means a company in which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company35explanation—for the purposes of this clause, "significant influence" means control of at least twenty per cent of total share capital, or of business decisions under an agreement;(7) "auditing standards" means the standards of auditing or any addendum thereto for companies or class of companies referred to in sub-section (10) of section 143;40(8) "authorised capital" or "nominal capital" means such capital as is authorised by the memorandum of a company to be the maximum amount of share capital of the company;(9) "banking company" means a banking company as defined in clause (c) of section 5 of the banking regulation act, 1949;(10) "board of directors" or "board", in relation to a company, means the collective body of the directors of the company;(11) "body corporate" or "corporation" includes a company incorporated outside india, but does not include—5(i) a co-operative society registered under any law relating to co-operative societies; and(ii) any other body corporate (not being a company as defined in this act), which the central government may, by notification, specify in this behalf;10(12) "book and paper" and "book or paper" include books of account, deeds, vouchers, writings, documents, minutes and registers maintained on paper or in electronic form;(13) "books of account" includes records maintained in respect of—(i) all sums of money received and expended by a company and matters in relation to which the receipts and expenditure take place;(ii) all sales and purchases of goods and services by the company;15(iii) the assets and liabilities of the company; and (iv) the items of cost as may be prescribed under section 148 in the case of a company which belongs to any class of companies specified under that section; (14) "branch office", in relation to a company, means any establishment described as such by the company;20(15) "called-up capital" means such part of the capital, which has been called for payment;(16) "charge" means an interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage;2538 of 1949(17) "chartered accountant" means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the chartered accountants act, 1949 who holds a valid certificate of practice under sub-section (1) of section 6 of that act;(18) "chief executive officer" means an officer of a company, who has been designated as such by it;30(19) "chief financial officer" means a person appointed as the chief financial officer of a company;(20) "company" means a company incorporated under this act or under any previous company law;35(21) "company limited by guarantee" means a company having the liability of its members limited by the memorandum to such amount as the members may respectively undertake to contribute to the assets of the company in the event of its being wound up;(22) "company limited by shares" means a company having the liability of its members limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them;40(23) "company liquidator", in so far as it relates to the winding up of a company, means a person appointed by—(a) the tribunal in case of winding up by the tribunal; or (b) the company or creditors in case of voluntary winding up,45as a company liquidator from a panel of professionals maintained by the central government under sub-section (2) of section 275;56 of 1980(24) "company secretary" or "secretary" means a company secretary as defined in clause (c) of sub-section (1) of section 2 of the company secretaries act, 1980 who is appointed by a company to perform the functions of a company secretary under this act;556 of 1980(25) "company secretary in practice" means a company secretary who is deemed to be in practice under sub-section (2) of section 2 of the company secretaries act,1980;(26) "contributory" means a person liable to contribute towards the assets of the company in the event of its being wound up10explanation—for the purposes of this clause, it is hereby clarified that a person holding fully paid-up shares in a company shall be considered as a contributory but shall have no liabilities of a contributory under the act whilst retaining rights of such a contributory;15(27) "control" shall include the right to appoint majority of the directors or to control the management or policy decisions exercisable by a person or persons acting individually or in concert, directly or indirectly, including by virtue of their shareholding or management rights or shareholders agreements or voting agreements or in any other manner;2023 of 1959(28) "cost accountant" means a cost accountant as defined in clause (b) of subsection (1) of section 2 of the cost and works accountants act, 1959;(29) "court" means—(i) the high court having jurisdiction in relation to the place at which the registered office of the company concerned is situate, except to the extent to which jurisdiction has been conferred on any district court or district courts subordinate to that high court under sub-clause (ii);25(ii) the district court, in cases where the central government has, by notification, empowered any district court to exercise all or any of the jurisdictions conferred upon the high court, within the scope of its jurisdiction in respect of a company whose registered office is situate in the district;30(iii) the court of session having jurisdiction to try any offence under this act or under any previous company law;(iv) the special court established under section 435;35(v) any metropolitan magistrate or a judicial magistrate of the first class having jurisdiction to try any offence under this act or under any previous company law; (30) "debenture" includes debenture stock, bonds or any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not;40(31) "deposit" includes any receipt of money by way of deposit or loan or in any other form by a company, but does not include such categories of amount as may be prescribed in consultation with the reserve bank of india;22 of 1996 (32) "depository" means a depository as defined in clause (e) of sub-section (1)of section 2 of the depositories act, 1996;42 of 195645(33) "derivative" means the derivative as defined in clause (ac) of section 2 of the securities contracts (regulation) act, 1956;(34) "director" means a director appointed to the board of a company;(35) "dividend" includes any interim dividend; (36) "document" includes summons, notice, requisition, order, declaration, form and register, whether issued, sent or kept in pursuance of this act or under any other law for the time being in force or otherwise, maintained on paper or in electronic form;5(37) "employees' stock option" means the option given to the directors, officersor employees of a company or of its holding company or subsidiary company or companies, if any, which gives such directors, officers or employees, the benefit or right to purchase, or to subscribe for, the shares of the company at a future date at a pre-determined price;10(38) "expert" includes an engineer, a valuer, a chartered accountant, a companysecretary, a cost accountant and any other person who has the power or authority to issue a certificate in pursuance of any law for the time being in force;(39) "financial institution" includes a scheduled bank, and any other financial institution defined or notified under the reserve bank of india act, 1934;2 of 1934(40) "financial statement" in relation to a company, includes—15(i) a balance sheet as at the end of the financial year; (ii) a profit and loss account, or in the case of a company carrying on anyactivity not for profit, an income and expenditure account for the financial year;(iii) cash flow statement for the financial year; (iv) a statement of changes in equity; and20(v) any explanatory note attached to, or forming part of, any document referred to in sub-clause (i) to sub-clause (iv):provided that the financial statement, with respect to one person company, small company and dormant company, may not include the cash flow statement;25(41) "financial year", in relation to any company or body corporate, means theperiod ending on the 31st day of march every year, and where it has been incorporated on or after the 1st day of january of a year, the period ending on the 31st day of march of the following year, in respect whereof financial statement of the company or body corporate is made up:30 provided that on an application made by a company or body corporate, which isa holding company or a subsidiary of a company incorporated outside india and is required to follow a different financial year for consolidation of its accounts outside india, the tribunal may, if it is satisfied, allow any period as its financial year, whether or not that period is a year:35provided further that a company or body corporate, existing on thecommencement of this act, shall, within a period of two years from such commencement, align its financial year as per the provisions of this clause;(42) "foreign company" means any company or body corporate incorporated outside india which,—40(a) has a place of business in india whether by itself or through an agent,physically or through electronic mode; and(b) conducts any business activity in india in any other manner(43) "free reserves" means such reserves which, as per the latest audited balance sheet of a company, are available for distribution as dividend:provided that—(i) any amount representing unrealised gains, notional gains or revaluation of assets, whether shown as a reserve or otherwise, or5(ii) any change in carrying amount of an asset or of a liability recognised in equity, including surplus in profit and loss account on measurement of the asset or the liability at fair value, shall not be treated as free reserves;10(44) "global depository receipt" means any instrument in the form of a depository receipt, by whatever name called, created by a foreign depository outside india and authorised by a company making an issue of such depository receipts;15(45) "government company" means any company in which not less than fiftyone per cent of the paid-up share capital is held by the central government, or by any state government or governments, or partly by the central government and partly by one or more state governments, and includes a company which is a subsidiary company of such a government company;(46) "holding company", in relation to one or more other companies, means a company of which such companies are subsidiary companies;20(47) "independent director" means an independent director referred to in sub-section (5) of section 149;(48) "indian depository receipt" means any instrument in the form of a depository receipt created by a domestic depository in india and authorised by a company incorporated outside india making an issue of such depository receipts;25(49) "interested director" means a director who is in any way, whether by himself or through any of his relatives or firm, body corporate or other association of individuals in which he or any of his relatives is a partner, director or a member, interested in a contract or arrangement, or proposed contract or arrangement, entered into or to be entered into by or on behalf of a company;30(50) "issued capital" means such capital as the company issues from time to time for subscription;(51) "key managerial personnel", in relation to a company, means—(i) the chief executive officer or the managing director or the manager; (ii) the company secretary;35(iii) the chief financial officer if the board of directors appoints him;and(iv) such other officer as may be prescribed;(52) "listed company" means a company which has any of its securities listed on any recognised stock exchange;40(53) "manager" means an individual who, subject to the superintendence, control and direction of the board of directors, has the management of the whole, or substantially the whole, of the affairs of a company, and includes a director or any other person occupying the position of a manager, by whatever name called, whether under a contract of service or not;45(54) "managing director" means a director who, by virtue of the articles of a company or an agreement with the company or a resolution passed in its general meeting, or by its board of directors, is entrusted with substantial powers of management of the affairs of the company and includes a director occupying the position of managing director, by whatever name called5explanation—for the purposes of this clause, the power to do administrative acts of a routine nature when so authorised by the board such as the power to affix the common seal of the company to any document or to draw and endorse any cheque on the account of the company in any bank or to draw and endorse any negotiable instrument or to sign any certificate of share or to direct registration of transfer of any share, shall not be deemed to be included within the substantial powers of management;(55) "member", in relation to a company, means—10(i) the subscriber to the memorandum of the company who shall be deemed to have agreed to become member of the company, and on its registration, shall be entered as member in its register of members;(ii) every other person who agrees in writing to become a member of the company and whose name is entered in the register of members of the company;(iii) every person holding shares of the company and whose name is entered as a beneficial owner in the records of a depository;15(56) "memorandum" means the memorandum of association of a company as originally framed or as altered from time to time in pursuance of any previous company law or of this act;20(57) "net worth" means the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation;25(58) "notification" means a notification published in the official gazette and the expression "notify" shall be construed accordingly;(59) "officer" includes any director, manager or key managerial personnel or any person in accordance with whose directions or instructions the board of directors or any one or more of the directors is or are accustomed to act;30(60) "officer who is in default", for the purpose of any provision in this act which enacts that an officer of the company who is in default shall be liable to any penalty or punishment by way of imprisonment, fine or otherwise, means any of the following officers of a company, namely:—(i) whole-time director; (ii) key managerial personnel;35(iii) where there is no key managerial personnel, such director or directors as specified by the board in this behalf and who has or have given his or their consent in writing to the board to such specification, or all the directors, if no director is so specified;40(iv) any person who, under the immediate authority of the board or anykey managerial personnel, is charged with any responsibility including maintenance, filing or distribution of accounts or records, authorises, actively participates in, knowingly permits, or knowingly fails to take active steps to prevent, any default;(v) any person in accordance with whose advice, directions or instructions the board of directors of the company is accustomed to act, other than a person who gives advice to the board in a professional capacity;5(vi) every director, in respect of a contravention of any of the provisions of this act, who is aware of such contravention by virtue of the receipt by him of any proceedings of the board or participation in such proceedings without objecting to the same, or where such contravention had taken place with his consent or connivance;(vii) in respect of the issue or transfer of any shares of a company, the share transfer agents, registrars and merchant bankers to the issue or transfer;10(61) "official liquidator" means an official liquidator appointed under sub-section (1) of section 359;(62) "one person company" means a company which has only one person as a member;15(63) "ordinary or special resolution" means an ordinary resolution, or as the case may be, special resolution referred to in section 114;20(64) "paid-up share capital" or "share capital paid-up" means such aggregate amount of money credited as paid-up as is equivalent to the amount received as paidup in respect of shares issued and also includes any amount of money credited as paid-up in respect of shares of the company, but does not include any other amount received in respect of such shares, by whatever name called;(65) "postal ballot" means voting by post or through any electronic mode; (66) "prescribed" means prescribed by rules made under this act; (67) "previous company law" means any of the laws specified below:—2510 of 1866(i) acts relating to companies in force before the indian companies act, 1866;10 of 1866(ii) the indian companies act, 1866;6 of 1882(iii) the indian companies act, 1882;7 of 1913(iv) the indian companies act, 1913;30(v) the registration of transferred companies ordinance, 1942;ord 54 of 1942 1 of 1956(vi) the companies act, 1956; and (vii) any law corresponding to any of the aforesaid acts or the ordinances and in force—357 of 1913(a) in the merged territories or in a part b state (other than the state of jammu and kashmir), or any part thereof, before the extension thereto of the indian companies act, 1913; or62 of 1956525 of 1968(b) in the state of jammu and kashmir, or any part thereof, before the commencement of the jammu and kashmir (extension of laws) act, 1956, in so far as banking, insurance and financial corporations are concerned, and before the commencement of the central laws (extension to jammu and kashmir) act, 1968, in so far as other corporations are concerned; (viii) the portuguese commercial code, in so far as it relates to sociedades anonimas; and(ix) the registration of companies (sikkim) act, 1961;sikkim act 8 of 196110(68) "private company" means a company having a minimum paid-up share capital of one lakh rupees or such higher paid-up share capital as may be prescribed, and which by its articles,—(i) restricts the right to transfer its shares; (ii) except in case of one person company, limits the number of its members to two hundred:15provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member:provided further that—(a) persons who are in the employment of the company; and20(b) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, shall not be included in the number of members; and25(iii) prohibits any invitation to the public to subscribe for any securities of the company; (69) "promoter" means a person—(a) who has been named as such in a prospectus or is identified by the company in the annual return referred to in section 92; or30(b) who has control over the affairs of the company, directly or indirectly whether as a shareholder, director or otherwise; or(c) in accordance with whose advice, directions or instructions the board of directors of the company is accustomed to act:35provided that nothing in sub-clauses (b) and (c) shall apply to a person who is acting in a professional capacity;40(70) "prospectus" means any document described or issued as a prospectus and includes a red herring prospectus referred to in section 32 or shelf prospectus referred to in section 31 or any notice, circular, advertisement or other document inviting offers from the public for the subscription or purchase of any securities of a body corporate;(71) "public company" means a company which—(a) is not a private company; (b) has a minimum paid-up share capital of five lakh rupees or such higher paid-up capital, as may be prescribed:5provided that a company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purposes of this act even where such subsidiary company continues to be a private company in its articles ;(72) "public financial institution" means—1031 of 1956(i) the life insurance corporation of india, established under section 3 of the life insurance corporation act, 1956;1 of 1956(ii) the infrastructure development finance company limited, referred to in clause (vi) of sub-section (1) of section 4a of the companies act, 1956 so repealed under section 465 of this act;58 of 200215(iii) specified company referred to in the unit trust of india (transfer of undertaking and repeal) act, 2002;1 of 1956(iv) institutions notified by the central government under sub-section (2)of section 4a of the companies act, 1956 so repealed under section 465 of this act;20 (v) such other institution as may be notified by the central government in consultation with the reserve bank of india: provided that no institution shall be so notified unless—(a) it has been established or constituted by or under any central or state act; or25(b) not less than fifty-one per cent of the paid-up share capital is held or controlled by the central government or by any state government or governments or partly by the central government and partly by one or more state governments;42 of 1956(73) "recognised stock exchange" means a recognised stock exchange as defined in clause (f) of section 2 of the securities contracts (regulation) act, 1956;30(74) "register of companies" means the register of companies maintained by the registrar on paper or in any electronic mode under this act;(75) "registrar" means a registrar, an additional registrar, a joint registrar, a deputy registrar or an assistant registrar, having the duty of registering companies and discharging various functions under this act;35(76) "related party", with reference to a company, means—(i) a director or his relative;(ii) a key managerial personnel or his relative; (iii) a firm, in which a director, manager or his relative is a partner; (iv) a private company in which a director or manager is a member ordirector;5(v) a public company in which a director or manager is a director or holdsalong with his relatives, more than two per cent of its paid-up share capital;(vi) any body corporate whose board of directors, managing director ormanager is accustomed to act in accordance with the advice, directions or instructions of a director or manager;10(vii) any person on whose advice, directions or instructions a director ormanager is accustomed to act:provided that nothing in sub-clauses (vi) and (vii) shall apply to the advice, directions or instructions given in a professional capacity;(viii) any company which is—15(a) a holding, subsidiary or an associate company of such company; or(b) a subsidiary of a holding company to which it is also a subsidiary;(ix) such other person as may be prescribed; (77) ''relative'', with reference to any person, means any one who is a related to another, if—(i) they are members of a hindu undivided family;20(ii) they are husband and wife; or(iii) one person is related to the other in such manner as may be prescribed;43 of 196125(78) "remuneration" means any money or its equivalent given or passed to any person for services rendered by him and includes perquisites as defined under the income-tax act, 1961;(79) "schedule" means a schedule annexed to this act;2 of 1934(80) "scheduled bank" means the scheduled bank as defined in clause (e) of section 2 of the reserve bank of india act, 1934;42 of 1956(81) "securities" means the securities as defined in clause (h) of section 2 of the securities contracts (regulation) act, 1956;3015 of 1992(82) "securities and exchange board" means the securities and exchange board of india established under section 3 of the securities and exchange board of india act, 1992;(83) "serious fraud investigation office" means the office referred to in section 211;35(84) "share" means a share in the share capital of a company and includes stock;(85) ''small company'' means a company, other than a public company,—(i) paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than five crore rupees; or5(ii) turnover of which as per its last profit and loss account does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than twenty crore rupees: provided that nothing in this clause shall apply to—(a) a holding company or a subsidiary company; (b) a company registered under section 8; or10(c) a company or body corporate governed by any special act;(86) "subscribed capital" means such part of the capital which is for the time being subscribed by the members of a company;15(87) "subsidiary company" or "subsidiary", in relation to any other company(that is to say the holding company), means a company in which the holding company—(i) controls the composition of the board of directors; or (ii) exercises or controls more than one-half of the total share capital either at its own or together with one or more of its subsidiary companies:20provided that such class or classes of holding companies as may be prescribed shall not have layers of subsidiaries beyond such numbers as may be prescribedexplanation—for the purposes of this clause,—(a) a company shall be deemed to be a subsidiary company of the holding company even if the control referred to in sub-clause (i) or sub-clause (ii) is of another subsidiary company of the holding company;25(b) the composition of a company's board of directors shall be deemed to be controlled by another company if that other company by exercise of some power exercisable by it at its discretion can appoint or remove all or a majority of the directors;(c) the expression "company" includes any body corporate;30(d) "layer" in relation to a holding company means its subsidiary or subsidiaries;35(88) "sweat equity shares" means such equity shares as are issued by a company to its directors or employees at a discount or for consideration, other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called;(89) "total voting power", in relation to any matter, means the total number of votes which may be cast in regard to that matter on a poll at a meeting of a company if all the members thereof having a right to vote on that matter are present at the meeting and cast their votes;(90) "tribunal" means the national company law tribunal constituted under section 408;5(91) "turnover" means the aggregate value of the realisation of amount madefrom the sale, supply or distribution of goods or on account of services rendered, or both, by the company during a financial year;(92) "unlimited company" means a company not having any limit on the liability of its members;10(93) "voting right" means the right of a member of a company to vote in anymeeting of the company or by means of postal ballot;(94) "whole-time director" includes a director in the whole-time employment of the company;1542 of 1956 15 of 1992 22 of 1996(95) words and expressions used and not defined in this act but defined in the securities contracts (regulation) act, 1956 or the securities and exchange board of india act, 1992 or the depositories act, 1996 shall have the meanings respectively assigned to them in those acts chapter ii incorporation of company and matters incidental thereto203 (1) a company may be formed for any lawful purpose by—formation of company(a) seven or more persons, where the company to be formed is to be a public company;(b) two or more persons, where the company to be formed is to be a private company; or25(c) one person, where the company to be formed is to be one person companythat is to say, a private company,by subscribing their names or his name to a memorandum and complying with the requirements of this act in respect of registration:30provided that the memorandum of one person company shall indicate the name of theother person, with his prior written consent in the prescribed form, who shall, in the event of the subscriber's death become the member of the company and the written consent of such person shall also be filed with the registrar at the time of incorporation of the one person company along with its memorandum and articles:provided further that such other person may withdraw his consent in such manner as may be prescribed:35provided also that the member of one person company may at any time change the name of such other person by giving notice in such manner as may be prescribed:40provided also that it shall be the duty of the member of one person company to intimate the company the change, if any, in the name of the other person nominated by him by indicating in the memorandum or otherwise within such time and in such manner as may be prescribed, and the company shall intimate the registrar any such change within such time and in such manner as may be prescribed:provided also that any such change in the name of the person shall not be deemed to be an alteration of the memorandum (2) a company formed under sub-section (1) may be either—(a) a company limited by shares; or (b) a company limited by guarantee; or5(c) an unlimited companymemorandum4 (1) the memorandum of a company shall state—10(a) the name of the company with the last word "limited" in the case of a public limited company, or the last words "private limited" in the case of a private limited company:provided that nothing in this clause shall apply to a company registered under section 8;(b) the state in which the registered office of the company is to be situated;15(c) the objects for which the company is proposed to be incorporated and any matter considered necessary in furtherance thereof;(d) the liability of members of the company, whether limited or unlimited, and also state,—(i) in the case of a company limited by shares, that liability of its members is limited to the amount unpaid, if any, on the shares held by them; and20(ii) in the case of a company limited by guarantee, the amount up to which each member undertakes to contribute—25(a) to the assets of the company in the event of its being wound-up while he is a member or within one year after he ceases to be a member, for payment of the debts and liabilities of the company or of such debts and liabilities as may have been contracted before he ceases to be a member, as the case may be; and(b) to the costs, charges and expenses of winding-up and for adjustment of the rights of the contributories among themselves;(e) in the case of a company having a share capital,—30(i) the amount of share capital with which the company is to be registered and the division thereof into shares of a fixed amount and the number of shares which the subscribers to the memorandum agree to subscribe which shall not be less than one share; and35(ii) the number of shares each subscriber to the memorandum intends to take, indicated opposite his name; (f) in the case of one person company, the name of the person who in the event of death of the subscriber shall become the member of the company (2) the name stated in the memorandum shall not—(a) be identical with or resemble too nearly to the name of an existing company registered under this act or any previous company law; or40(b) be such that its use by the company—(i) will constitute an offence under any law for the time being in force; or (ii) is undesirable in the opinion of the central government510 15 20 25 30 35articles40 4550(3) without prejudice to the provisions of sub-section (2), a company shall not be registered with a name which contains—(a) any word or expression which is likely to give the impression that the company is in any way connected with, or having the patronage of, the central government, any state government, or any local authority, corporation or body constituted by the central government or any state government under any law for the time being in force; or(b) such word or expression, as may be prescribed, unless the previous approval of the central government has been obtained for the use of any such word or expression(4) a person may make an application, in such form and manner and accompanied by such fee, as may be prescribed, to the registrar for the reservation of a name set out in the application as—(a) the name of the proposed company; or (b) the name to which the company proposes to change its name(5) (i) upon receipt of an application under sub-section (4), the registrar may, on the basis of information and documents furnished along with the application, reserve the name for a period of sixty days from the date of the application(ii) where after reservation of name under clause (i), it is found that name was applied by furnishing wrong or incorrect information, then,—(a) if the company has not been incorporated, the reserved name shall be cancelled and the person making application under sub-section (4) shall be liable to a penalty which may extend to one lakh rupees;(b) if the company has been incorporated, the registrar may, after giving the company an opportunity of being heard—(i) either direct the company to change its name within a period of three months, after passing an ordinary resolution;(ii) take action for striking off the name of the company from the register of companies; or(iii) make a petition for winding up of the company(6) the memorandum of a company shall be in respective forms specified in tables a, b, c, d and e in schedule i as may be applicable to such company(7) any provision in the memorandum or articles, in the case of a company limited by guarantee and not having a share capital, purporting to give any person a right to participate in the divisible profits of the company otherwise than as a member, shall be void5 (1) the articles of a company shall contain the regulations for management of the company(2) the articles shall also contain such matters, as may be prescribed: provided that nothing prescribed in this sub-section shall be deemed to prevent a company from including such additional matters in its articles as may be considered necessary for its management(3) the articles may contain provisions for entrenchment to the effect that specified provisions of the articles may be altered only if conditions or procedures as that are more restrictive than those applicable in the case of a special resolution, are met or complied with(4) the provisions for entrenchment referred to in sub-section (3) shall only be made either on formation of a company, or by an amendment in the articles agreed to by all the members of the company in the case of a private company and by a special resolution in the case of a public company(5) where the articles contain provisions for entrenchment, whether made on formation or by amendment, the company shall give notice to the registrar of such provisions in such form and manner as may be prescribed(6) the articles of a company shall be in respective forms specified in tables, f, g, h, iand j in schedule i as may be applicable to such company(7) a company may adopt all or any of the regulations contained in the model articles applicable to such company5(8) in case of any company, which is registered after the commencement of this act, in so far as the registered articles of such company do not exclude or modify the regulations contained in the model articles applicable to such company, those regulations shall, so far as applicable, be the regulations of that company in the same manner and to the extent as if they were contained in the duly registered articles of the company(9) nothing in this section shall apply to the articles of a company registered under any previous company law unless amended under this act106 save as otherwise expressly provided in this act—act to override memorandum, articles, etc15(a) the provisions of this act shall have effect notwithstanding anything to the contrary contained in the memorandum or articles of a company, or in any agreement executed by it, or in any resolution passed by the company in general meeting or by its board of directors, whether the same be registered, executed or passed, as the case may be, before or after the commencement of this act; and(b) any provision contained in the memorandum, articles, agreement or resolution shall, to the extent to which it is repugnant to the provisions of this act, become or be void, as the case may beincorporation of company207 (1) there shall be filed with the registrar within whose jurisdiction the registeredoffice of a company is proposed to be situated, the following documents and information for registration, namely:—(a) the memorandum and articles of the company duly signed by all thesubscribers to the memorandum in such manner as may be prescribed;25(b) a declaration in the prescribed form by an advocate, a chartered accountant,cost accountant or company secretary in practice, who is engaged in the formation of the company, and by a person named in the articles as a director, manager or secretary of the company, that all the requirements of this act and the rules made thereunder in respect of registration and matters precedent or incidental thereto have been complied with;30 35(c) an affidavit from each of the subscribers to the memorandum and from personsnamed as the first directors, if any, in the articles that he is not convicted of any offence in connection with the promotion, formation or management of any company, or that he has not been found guilty of any fraud or misfeasance or of any breach of duty to any company under this act or any previous company law during the preceding five years and that all the documents filed with the registrar for registration of the company contain information that is correct and complete and true to the best of his knowledge and belief;(d) the address for correspondence till its registered office is established;40(e) the particulars of name, including surname or family name, residential address,nationality and such other particulars of every subscriber to the memorandum along with proof of identity, as may be prescribed, and in the case of a subscriber being a body corporate, such particulars as may be prescribed;45(f) the particulars of the persons mentioned in the articles as the first directors ofthe company, their names, including surnames or family names, the director identification number, residential address, nationality and such other particulars including proof of identity as may be prescribed; and(g) the particulars of the interests of the persons mentioned in the articles as the first directors of the company in other firms or bodies corporate along with their consent to act as directors of the company in such form and manner as may be prescribed(2) the registrar on the basis of documents and information filed under sub-section (1) shall register all the documents and information referred to in that subsection in the register and issue a certificate of incorporation in the prescribed form to the effect that the proposed company is incorporated under this act5(3) on and from the date mentioned in the certificate of incorporation issued undersub-section (2), the registrar shall allot to the company a corporate identity number, whichshall be a distinct identity for the company and which shall also be included in the certificate10(4) the company shall maintain and preserve at its registered office copies of all documents and information as originally filed under sub-section (1) till its dissolution under this act(5) if any person furnishes any false or incorrect particulars of any information or suppresses any material information, of which he is aware in any of the documents filed with the registrar in relation to the registration of a company, he shall be liable for action under section 44715 20(6) without prejudice to the provisions of sub-section (5) where, at any time after theincorporation of a company, it is proved that the company has been got incorporated by furnishing any false or incorrect information or representation or by suppressing any material fact or information in any of the documents or declaration filed or made for incorporating such company, or by any fraudulent action, the promoters, the persons named as the first directors of the company and the persons making declaration under clause (b) of subsection (1) shall each be liable for action under section 44725(7) without prejudice to the provisions of sub-section (6), where a company has been got incorporated by furnishing any false or incorrect information or representation or by suppressing any material fact or information in any of the documents or declaration filed or made for incorporating such company or by any fraudulent action, the tribunal may, on an application made to it, on being satisfied that the situation so warrants,—(a) pass such orders, as it may think fit, for regulation of the management of the company including changes, if any, in its memorandum and articles, in public interest or in the interest of the company and its members and creditors; or(b) direct that liability of the members shall be unlimited; or30(c) direct removal of the name of the company from the register of companies; or(d) pass an order for the winding up of the company; or(e) pass such other orders as it may deem fit:provided that before making any order under this sub-section,—35(i) the company shall be given a reasonable opportunity of being heard inthe matter; and(ii) the tribunal shall take into consideration the transactions entered intoby the company, including the obligations, if any, contracted or payment of any liability408 (1) where it is proved to the satisfaction of the central government that a person or an association of persons proposed to be registered under this act as a limited company—formation of companies with charitable objects, etc(a) has in its objects the promotion of commerce, art, science, sports, education,research, social welfare, religion, charity, protection of environment or any such other object;45(b) intends to apply its profits, if any, or other income in promoting its objects;and(c) intends to prohibit the payment of any dividend to its members,5the central government may, by licence issued in such manner as may be prescribed, and on such conditions as it deems fit, allow that person or association of persons to be registered as a limited company under this section without the addition to its name of the word "limited", or as the case may be, the words "private limited" , and thereupon the registrar shall, on application, in the prescribed form, register such person or association of persons as a company under this section(2) the company registered under this section shall enjoy all the privileges and be subject to all the obligations of limited companies(3) a firm may be a member of the company registered under this section10(4) (i) a company registered under this section shall not alter the provisions of its memorandum or articles except with the previous approval of the central government(ii) a company registered under this section may convert itself into company of any other kind only after complying with such conditions as may be prescribed15 20(5) where it is proved to the satisfaction of the central government that a limited company registered under this act or under any previous company law has been formed with any of the objects specified in clause (a) of sub-section (1) and with the restrictions and prohibitions as mentioned respectively in clauses (b) and (c) of that sub-section, it may, by licence, allow the company to be registered under this section subject to such conditions as the central government deems fit and to change its name by omitting the word "limited", or as the case may be, the words "private limited" from its name and thereupon the registrar shall, on application, in the prescribed form, register such company under this section and all the provisions of this section shall apply to that company25 30(6) the central government may, by order, revoke the licence granted to a company registered under this section if the company contravenes any of the requirements of this section or any of the conditions subject to which a licence is issued or the affairs of the company are conducted fraudulently or in a manner violative of the objects of the company or prejudicial to public interest, and without prejudice to any other action against the company under this act, direct the company to convert its status and change its name to add the word "limited" or the words "private limited", as the case may be, to its name and thereupon the registrar shall, without prejudice to any action that may be taken under sub-section (7), on application, in the prescribed form, register the company accordingly:provided that no such order shall be made unless the company is given a reasonable opportunity of being heard:provided further that a copy of every such order shall be given to the registrar35(7) where a licence is revoked under sub-section (6), the central government may, by order, if it is satisfied that it is essential in the public interest, direct that the company be wound up under this act or amalgamated with another company registered under this section:provided that no such order shall be made unless the company is given a reasonable opportunity of being heard40 45(8) where a licence is revoked under sub-section (6) and where the central government is satisfied that it is essential in the public interest that the company registered under this section should be amalgamated with another company registered under this section and having similar objects, then, notwithstanding anything to the contrary contained in this act, the central government may, by order, provide for such amalgamation to form a single company with such constitution, properties, powers, rights, interest, authorities and privileges and with such liabilities, duties and obligations as may be specified in the order(9) if on the winding up or dissolution of a company registered under this section, there remains, after the satisfaction of its debts and liabilities, any asset, they may be transferred to another company registered under this section and having similar objects, subject to such conditions as the tribunal may impose, or may be sold and proceeds thereof credited to the rehabilitation and insolvency fund formed under section 269(10) a company registered under this section shall amalgamate only with another company registered under this section and having similar objects510(11) if a company makes any default in complying with any of the requirements laiddown in this section, the company shall, without prejudice to any other action under the provisions of this section, be punishable with fine which shall not be less than ten lakh rupees but which may extend to one crore rupees and the directors and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than twenty-five thousand rupees but which may extend to twenty-five lakh rupees, or with both:provided that when it is proved that the affairs of the company were conducted fraudulently, every officer in default shall be liable for action under section 447effect of registration159 from the date of incorporation mentioned in the certificate of incorporation, such subscribers to the memorandum and all other persons, as may, from time to time, become members of the company, shall be a body corporate by the name contained in the memorandum, capable of exercising all the functions of an incorporated company under this act and having perpetual succession and a common seal with power to acquire, hold and dispose of property, both movable and immovable, tangible and intangible, to contract and to sue and be sued, by the said name20effect of memorandum and articles10 (1) subject to the provisions of this act, the memorandum and articles shall, when registered, bind the company and the members thereof to the same extent as if they respectively had been signed by the company and by each member, and contained covenants on its and his part to observe all the provisions of the memorandum and of the articles25(2) all monies payable by any member to the company under the memorandum orarticles shall be a debt due from him to the company11 (1) a company having a share capital shall not commence any business or exercise any borrowing powers unless—commencement of business, etc30(a) a declaration is filed by a director in such form and verified in such manner as may be prescribed, with the registrar that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him and the paid-up share capital of the company is not less than five lakh rupees in case of a public company and not less than one lakh rupees in case of a private company on the date of making of this declaration; and35(b) the company has filed with the registrar a verification of its registered officeas provided in sub-section (2) of section 1240(2) if any default is made in complying with the requirements of this section, the company shall be liable to a penalty which may extend to five thousand rupees and every officer who is in default shall be punishable with fine which may extend to one thousand rupees for every day during which the default continues45(3) where no declaration has been filed with the registrar under clause (a) of subsection (1) within a period of one hundred and eighty days of the date of incorporation of the company and the registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may, without prejudice to the provisions of sub-section (2), initiate action for the removal of the name of the company from the register of companies under chapter xviiiregistered office of company12 (1) a company shall, on and from the fifteenth day of its incorporation and at all times thereafter, have a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it5(2) the company shall furnish to the registrar verification of its registered office within a period of thirty days of its incorporation in such manner as may be prescribed(3) every company shall—10(a) paint or affix its name, and the address of its registered office, and keep the same painted or affixed, on the outside of every office or place in which its business is carried on, in a conspicuous position, in legible letters, and if the characters employed therefor are not those of the language or of one of the languages in general use in that locality, also in the characters of that language or of one of those languages;(b) have its name engraved in legible characters on its seal;15(c) get its name, address of its registered office and the corporate identity number along with telephone number, fax number, if any, e-mail and website addresses, if any, printed in all its business letters, billheads, letter papers and in all its notices and other official publications; and(d) have its name printed on hundies, promissory notes, bills of exchange and such other documents as may be prescribed:20provided that where a company has changed its name or names during the last two years, it shall paint or affix or print, as the case may be, along with its name, the former name or names so changed during the last two years as required under clauses (a) and (c):provided further that the words ''one person company'' shall be mentioned in brackets below the name of such company, wherever its name is printed, affixed or engraved25(4) notice of every change of the situation of the registered office, verified in the manner prescribed, after the date of incorporation of the company, shall be given to the registrar within fifteen days of the change, who shall record the same(5) except on the authority of a special resolution passed by a company, the registered office of the company shall not be changed,—30(a) in the case of an existing company, outside the local limits of any city, town or village where such office is situated at the commencement of this act or where it may be situated later by virtue of a special resolution passed by the company; and(b) in the case of any other company, outside the local limits of any city, town or village where such office is first situated or where it may be situated later by virtue of a special resolution passed by the company:35provided that no company shall change the place of its registered office from the jurisdiction of one registrar to the jurisdiction of another registrar within the same state unless such change is confirmed by the regional director on an application made in this behalf by the company in the prescribed manner40(6) the confirmation referred to in sub-section (5) shall be communicated within a period of thirty days from the date of receipt of application by the regional director to the company and the company shall file the confirmation with the registrar within a period of sixty days of the date of confirmation who shall register the same and certify the registration within a period of thirty days from the date of filing of such confirmation45(7) the certificate referred to in sub-section (6) shall be conclusive evidence that all the requirements of this act with respect to change of registered office in pursuance of subsection (5) have been complied with and the change shall take effect from the date of the certificate(8) if any default is made in complying with the requirements of this section, the company and every officer who is in default shall be liable to a penalty of one thousand rupees for every day during which the default continues but not exceeding one lakh rupeesalteration of memorandum513 (1) save as provided in section 61, a company may, by a special resolution and after complying with the procedure specified in this section, alter the provisions of its memorandum(2) any change in the name of a company shall be subject to the provisions of subsections (2) and (3) of section 4 and shall not have effect except with the approval of the central government in writing:10provided that no such approval shall be necessary where the only change in the name of the company is the deletion therefrom, or addition thereto, of the word "private", consequent on the conversion of any one class of companies to another class in accordance with the provisions of this act15(3) when any change in the name of a company is made under sub-section (2), the registrar shall enter the new name in the register of companies in place of the old name and issue a fresh certificate of incorporation with the new name and the change in the name shall be complete and effective only on the issue of such a certificate20(4) the alteration of the memorandum relating to the place of the registered office from one state to another shall not have any effect unless it is approved by the central government on an application in such form and manner as may be prescribed25(5) the central government shall dispose of the application under sub-section (4)within a period of sixty days and before passing its order may satisfy itself that the alteration has the consent of the creditors, debenture-holders and other persons concerned with the company or that the sufficient provision has been made by the company either for the due discharge of all its debts and obligations or that adequate security has been provided for such discharge(6) save as provided in section 64, a company shall, in relation to any alteration of its memorandum, file with the registrar—(a) the special resolution passed by the company under sub-section (1);30(b) the approval of the central government under sub-section (2), if the alteration involves any change in the name of the company35(7) where an alteration of the memorandum results in the transfer of the registered office of a company from one state to another, a certified copy of the order of the central government approving the alteration shall be filed by the company with the registrar of each of the states within such time and in such manner as may be prescribed, who shall register the same, and the registrar of the state where the registered office is being shifted to, shall issue a fresh certificate of incorporation indicating the alteration40(8) a company, which has raised money from public through prospectus and still has any unutilised amount out of the money so raised, shall not change its objects for which it raised the money through prospectus unless a special resolution is passed by the company and—45(i) the details, as may be prescribed, in respect of such resolution shall also be published in the newspapers (one in english and one in vernacular language) which is in circulation at the place where the registered office of the company is situated and shall also be placed on the website of the company, if any, indicating therein the justification for such change;(ii) the dissenting shareholders shall be given an opportunity to exit by the promoters and shareholders having control in accordance with regulations to be specified by the securities and exchange board(9) the registrar shall register any alteration of the memorandum with respect to the objects of the company and certify the registration within a period of thirty days from the date of filing of the special resolution in accordance with clause (a) of sub-section (6) of this section5(10) no alteration made under this section shall have any effect until it has been registered in accordance with the provisions of this section(11) any alteration of the memorandum, in the case of a company limited by guarantee and not having a share capital, purporting to give any person a right to participate in the divisible profits of the company otherwise than as a member, shall be void10alteration of articles14 (1) subject to the provisions of this act and the conditions contained in its memorandum, if any, a company may, by a special resolution, alter its articles including alterations having the effect of conversion of—(a) a private company into a public company; or (b) a public company into a private company:15provided that where a company being a private company alters its articles in such a manner that they no longer include the restrictions and limitations which are required to be included in the articles of a private company under this act, the company shall, as from the date of such alteration, cease to be a private company:20provided further that any alteration having the effect of conversion of a public company into a private company shall not take effect except with the approval of the tribunal which shall make such order as it may deem fit25(2) every alteration of the articles under this section and a copy of the order of the tribunal approving the alteration as per sub-section (1) shall be filed with the registrar, together with a printed copy of the altered articles, within fifteen days in such manner as may be prescribed, who shall register the same(3) any alteration of the articles registered under sub-section (2) shall, subject to the provisions of this act, be valid as if it were originally in the articles15 (1) every alteration made in the memorandum or articles of a company shall be noted in every copy of the memorandum or articles, as the case may be30alteration of memorandum or articles to be noted in every copy(2) if a company makes any default in complying with the provisions of sub-section (1), the company and every officer who is in default shall be liable to a penalty of one thousand rupees for every copy of the memorandum or articles issued without such alteration3516 (1) if, through inadvertence or otherwise, a company on its first registration or on its registration by a new name, is registered by a name which,—rectification of name of company40(a) in the opinion of the central government, is identical with or too nearly resembles the name by which a company in existence had been previously registered, whether under this act or any previous company law, it may direct the company to change its name and the company shall change its name or new name, as the case may be, within a period of three months from the issue of such direction, after adopting an ordinary resolution for the purpose;(b) on an application by a registered proprietor of a trade mark that the name is identical with or too nearly resembles to a registered trade mark of such proprietor under the trade marks act, 1999, made to the central government within three years of incorporation or registration or change of name of the company, whether under this5act or any previous company law, in the opinion of the central government, is identical with or too nearly resembles to an existing trade mark, it may direct the company to change its name and the company shall change its name or new name, as the case may be, within a period of six months from the issue of such direction, after adopting an ordinary resolution for the purpose (2) where a company changes its name or obtains a new name under sub-section (1), it shall within a period of fifteen days from the date of such change, give notice of the change to the registrar along with the order of the central government, who shall carry out necessary changes in the certificate of incorporation and the memorandum10(3) if a company makes default in complying with any direction given undersub-section (1), the company shall be punishable with fine of one thousand rupees for every day during which the default continues and every officer who is in default shall be punishable with fine which shall not be less than five thousand rupees but which may extend to one lakh rupees1517 (1) a company shall, on being so requested by a member, send to him within sevendays of the request and subject to the payment of such fees as may be prescribed, a copy of each of the following documents, namely:—(a) the memorandum;copies of memorandum, articles, etc, to be given to members(b) the articles; and20(c) every agreement and every resolution referred to in sub-section (1) of section117, if and in so far as they have not been embodied in the memorandum or articles25(2) if a company makes any default in complying with the provisions of this section, the company and every officer of the company who is in default shall be liable for each default, to a penalty of one thousand rupees for each day during which such default continues or one lakh rupees, whichever is less18 (1) a company of any class registered under this act may convert itself as a company of other class under this act by alteration of memorandum and articles of the company in accordance with the provisions of this chapterconversion of companies already registered30(2) where the conversion is required to be done under this section, the registrar shall on an application made by the company, after satisfying himself that the provisions of this chapter applicable for registration of companies have been complied with, close the former registration of the company and after registering the documents referred to in sub-section (1), issue a certificate of incorporation in the same manner as its first registration35(3) the registration of a company under this section shall not affect any debts, liabilities, obligations or contracts incurred or entered into, by or on behalf of the company before conversion and such debts, liabilities, obligations and contracts may be enforced in the manner as if such registration had not been done40subsidiary company not to hold shares in its holding company19 (1) no company shall, either by itself or through its nominees, hold any shares in its holding company and no holding company shall allot or transfer its shares to any of its subsidiary companies and any such allotment or transfer of shares of a company to its subsidiary company shall be void:provided that nothing in this sub-section shall apply to a case—(a) where the subsidiary company holds such shares as the legal representative of a deceased member of the holding company; or(b) where the subsidiary company holds such shares as a trustee; or (c) where the subsidiary company is a shareholder even before it became a subsidiary company of the holding company:5provided further that the subsidiary company referred to in the preceding proviso shall have a right to vote at a meeting of the holding company only in respect of the shares held by it as a legal representative or as a trustee, as referred to in clause (a) or clause (b) of the said proviso10(2) the reference in this section to the shares of a holding company which is a company limited by guarantee or an unlimited company, not having a share capital, shall be construed as a reference to the interest of its members, whatever be the form of interestservice of documents20 (1) a document may be served on a company or an officer thereof by sending it tothe company or the officer at the registered office of the company by registered post or by speed post or by courier service or by leaving it at its registered office or by means of such electronic or other mode as may be prescribed:15provided that where securities are held with a depository, the records of the beneficial ownership may be served by such depository on the company by means of electronic or other mode20(2) save as provided in this act or the rules made thereunder for filing of documents with the registrar in electronic mode, a document may be served on registrar or any member by sending it to him by post under a certificate of posting or by registered post or by speed post or by courier or by delivering at his office or address, or by such electronic or other mode as may be prescribed:25provided that a member may request for delivery of any document through a particular mode, for which he shall pay such fees as may be determined by the company in its annual general meetingexplanation—for the purposes of this section, the term ''courier'' means a person or agency which delivers the document and provides proof of its delivery21 save as otherwise provided in this act,—| ( | a | ) a document or proceeding requiring authentication by a company; or ||----------------|-----|------------------------------------------------------------------------|| authentica- | | || tion of | | || documents, | | || proceedings | | || and contracts | | || 30 | | || ( | b | ) contracts made by or on behalf of a company, |may be signed by any key managerial personnel or an officer of the company duly authorised by the board in this behalfexecution of bills of exchange, etc3522 (1) a bill of exchange, hundi or promissory note shall be deemed to have beenmade, accepted, drawn or endorsed on behalf of a company if made, accepted, drawn, or endorsed in the name of, or on behalf of or on account of, the company by any person acting under its authority, express or implied(2) a company may, by writing under its common seal, authorise any person, eithergenerally or in respect of any specified matters, as its attorney to execute other deeds on its behalf in any place either in or outside india40(3) a deed signed by such an attorney on behalf of the company and under his sealshall bind the company and have the effect as if it were made under its common seal chapter iii prospectus and allotment of securities part i—public offer23 (1) a public company may issue securities—5public offer and private placement(a) to public through prospectus (herein referred to as "public offer") by complying with the provisions of this part; or(b) through private placement by complying with the provisions of part ii of this chapter; or1015 of 1992(c) through a rights issue or a bonus issue in accordance with the provisions of this act and in case of a listed company or a company which intends to got its securities listed also with the provisions of the securities and exchange board of india act, 1992 and the rules and regulations made thereunder (2) a private company may issue securities only through private placement by complying with the provisions of part ii of this chapter15explanation—for the purposes of this chapter, "public offer" includes initial public offer or further public offer of securities by a company to the public or an offer for sale of securities to the public by an existing shareholder24 (1) the provisions contained in this chapter, chapter iv and in section 127shall,—(a) in so far as they relate to —20(i) issue and transfer of securities; and (ii) non-payment of dividend,power of securities and exchange board to regulate issue and transfer of securities, etc25by listed companies or those companies which intend to get their securities listed on any recognised stock exchange in india, except as provided under this act, be administered by the securities and exchange board by making regulations in this behalf;(b) in any other case, be administered by the central government30explanation—for the removal of doubts, it is hereby declared that all powers relating to all other matters relating to prospectus, return of allotment, redemption of preference shares and any other matter specifically provided in this act, shall be exercised by the central government, the tribunal or the registrar, as the case may be15 of 1992(2) the securities and exchange board shall, in respect of matters specified in subsection (1) and the matters delegated to it under proviso to sub-section (1) of section 458, exercise the powers conferred upon it under sub-sections (1), (2a), (3) and (4) of section 11, sections 11a, 11b and 11d of the securities and exchange board of india act, 199235document containing offer of securities for sale to be deemed prospectus404525 (1) where a company allots or agrees to allot any securities of the company witha view to all or any of those securities being offered for sale to the public, any document by which the offer for sale to the public is made shall, for all purposes, be deemed to be a prospectus issued by the company; and all enactments and rules of law as to the contents of prospectus and as to liability in respect of mis-statements, in and omissions from, prospectus, or otherwise relating to prospectus, shall apply with the modifications specified in subsections (3) and (4) and shall have effect accordingly, as if the securities had been offeredto the public for subscription and as if persons accepting the offer in respect of any securities were subscribers for those securities, but without prejudice to the liability, if any, of the persons by whom the offer is made in respect of mis-statements contained in the document or otherwise in respect thereof(2) for the purposes of this act, it shall, unless the contrary is proved, be evidence that an allotment of, or an agreement to allot, securities was made with a view to the securities being offered for sale to the public if it is shown—(a) that an offer of the securities or of any of them for sale to the public was made5within six months after the allotment or agreement to allot; or(b) that at the date when the offer was made, the whole consideration to be received by the company in respect of the securities had not been received by it (3) section 26 as applied by this section shall have effect as if —(i) it required a prospectus to state in addition to the matters required by that section to be stated in a prospectus—10(a) the net amount of the consideration received or to be received by the company in respect of the securities to which the offer relates; and(b) the time and place at which the contract where under the said securities have been or are to be allotted may be inspected;15 (ii) the persons making the offer were persons named in a prospectus as directors of a company (4) where a person making an offer to which this section relates is a company or a firm, it shall be sufficient if the document referred to in sub-section (1) is signed on behalf of the company or firm by two directors of the company or by not less than one-half of the partners20in the firm, as the case may be26 (1) every prospectus issued by or on behalf of a public company either with reference to its formation or subsequently, or by or on behalf of any person who is or has matters to be stated in prospectusbeen engaged or interested in the formation of a public company, shall be dated and signed and shall—25(a) state the following information, namely:—(i) names and addresses of the registered office of the company, company secretary, chief financial officer, auditors, legal advisers, bankers, trustees, if any, underwriters and such other persons as may be prescribed;(ii) dates of the opening and closing of the issue, and declaration about30the issue of allotment letters and refunds within the prescribed time;(iii) a statement by the board of directors about the separate bank account where all monies received out of the issue are to be transferred and disclosure of details of all monies including utilised and unutilised monies out of the previousissue in the prescribed manner;(iv) details about underwriting of the issue;(v) consent of the directors, auditors, bankers to the issue, expert's opinion, if any, and of such other persons, as may be prescribed;(vi) the authority for the issue and the details of the resolution passedtherefor;(vii) procedure and time schedule for allotment and issue of securities;5(viii) capital structure of the company in the prescribed manner; (ix) main objects of public offer, terms of the present issue and such otherparticulars as may be prescribed;10(x) main objects and present business of the company and its location,schedule of implementation of the project;(xi) particulars relating to—(a) management perception of risk factors specific to the project; (b) gestation period of the project; (c) extent of progress made in the project;15(d) deadlines for completion of the project; and (e) any litigation or legal action pending or taken by a governmentdepartment or a statutory body during the last five years immediately preceding the year of the issue of prospectus against the promoter of the company;20(xii) minimum subscription, amount payable by way of premium, issue ofshares otherwise than on cash;(xiii) details of directors including their appointments and remuneration,and such particulars of the nature and extent of their interests in the company as may be prescribed; and25(xiv) disclosures in such manner as may be prescribed about sources ofpromoter's contribution;(b) set out the following reports for the purposes of the financial information, namely:—30(i) reports by the auditors of the company with respect to its profits andlosses and assets and liabilities and such other matters as may be prescribed;(ii) reports relating to profits and losses for each of the five financial years immediately preceding the financial year of the issue of prospectus including such reports of its subsidiaries and in such manner as may be prescribed:35provided that in case of a company with respect to which a period of five years has not elapsed from the date of incorporation, the prospectus shall set out in such manner as may be prescribed, the reports relating to profits and losses for each of the financial years immediately preceding the financial year of the issue of prospectus including such reports of its subsidiaries;(iii) reports made in the prescribed manner by the auditors upon the profits and losses of the business of the company for each of the five financial years immediately preceding issue and assets and liabilities of its business on the last date to which the accounts of the business were made up, being a date not more than one hundred and eighty days before the issue of the prospectus:510provided that in case of a company with respect to which a period of five years has not elapsed from the date of incorporation, the prospectus shall set out in the prescribed manner, the reports made by the auditors upon the profits and losses of the business of the company for all financial years from the date of its incorporation, and assets and liabilities of its business on the last date before the issue of prospectus; and(iv) reports about the business or transaction to which the proceeds of the securities are to be applied directly or indirectly;1542 of 1956 15 of 1992(c) make a declaration about the compliance of the provisions of this act and a statement to the effect that nothing in the prospectus is contrary to the provisions of this act, the securities contracts (regulation) act, 1956 and the securities and exchange board of india act, 1992 and the rules and regulations made thereunder; and(d) state such other matters and set out such other reports, as may be prescribed(2) nothing in sub-section (1) shall apply—20(a) to the issue to existing members or debenture-holders of a company, of a prospectus or form of application relating to shares in or debentures of the company, whether an applicant has a right to renounce the shares or not under sub-clause (ii) of clause (a) of sub-section (1) of section 62 in favour of any other person; or25(b) to the issue of a prospectus or form of application relating to shares or debentures which are, or are to be, in all respects uniform with shares or debentures previously issued and for the time being dealt in or quoted on a recognised stock exchange30(3) subject to sub-section (2), the provisions of sub-section (1) shall apply to a prospectus or a form of application, whether issued on or with reference to the formation of a company or subsequentlyexplanation—the date indicated in the prospectus shall be deemed to be the date of its publication35(4) no prospectus shall be issued by or on behalf of a company or in relation to an intended company unless on or before the date of its publication, there has been delivered to the registrar for registration, a copy thereof signed by every person who is named therein as a director or proposed director of the company or by his duly authorised attorney40(5) a prospectus issued under sub-section (1) shall not include a statement purporting to be made by an expert unless the expert is a person who is not, and has not been, engaged or interested in the formation or promotion or management, of the company and has given his written consent to the issue of the prospectus and has not withdrawn such consent before the delivery of a copy of the prospectus to the registrar for registration and a statement to that effect shall be included in the prospectus(6) every prospectus issued under sub-section (1) shall, on the face of it,—(a) state that a copy has been delivered for registration to the registrar as required under sub-section (4); and5(b) specify any documents required by this section to be attached to the copy sodelivered or refer to statements included in the prospectus which specify these documents(7) the registrar shall not register a prospectus unless the requirements of this section with respect to its registration are complied with and the prospectus is accompanied by the consent in writing of all the persons named in the prospectus10(8) no prospectus shall be valid if it is issued more than ninety days after the date onwhich a copy thereof is delivered to the registrar under sub-section (4)15(9) if a prospectus is issued in contravention of the provisions of this section, the company shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees and every person who is knowingly a party to the issue of such prospectus shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees, or with both20variation in terms of contract or objects in prospectus27 (1) a company shall not, at any time, vary the terms of a contract referred to in the prospectus or objects for which the prospectus was issued, except subject to the approval of, or except subject to an authority given by the company in general meeting by way of special resolution: provided that the details, as may be prescribed, of the notice in respect of such resolution to shareholders, shall also be published in the newspapers (one in english and one in vernacular language) in the city where the registered office of the company is situated indicating clearly the justification for such variation:25 provided further that such company shall not use any amount raised by it through prospectus for buying, trading or otherwise dealing in equity shares of any other listed company30 (2) the dissenting shareholders being those shareholders who have not agreed to the proposal to vary the terms of contracts or objects referred to in the prospectus, shall be given an exit offer by promoters or controlling shareholders at such exit price, and in such manner and conditions as may be specified by the securities and exchange board by making regulations in this behalf3528 (1) where certain members of a company propose, in consultation with the board of directors to offer part of their holding of shares to the public, they may do so in accordance with such procedure as may be prescribedoffer of sale of shares by certain members of company40(2) any document by which the offer of sale to the public is made shall, for all purposes, be deemed to be a prospectus issued by the company and all laws and rules made thereunder as to the contents of the prospectus and as to liability in respect of mis-statements in and omission from prospectus or otherwise relating to prospectus shall apply as if this is a prospectus issued by the company5(3) the members, whether individuals or bodies corporate or both, whose shares are proposed to be offered to the public, shall collectively authorise the company, whose shares are offered for sale to the public, to take all actions in respect of offer of sale for and on their behalf and they shall reimburse the company all expenses incurred by it on this matter29 (1) notwithstanding anything contained in any other provisions of this act,—(a) every company making public offer; andpublic offer of securities to be in dematerialised form(b) such other class or classes of public companies as may be prescribed,22 of 199610shall issue the securities only in dematerialised form by complying with the provisions of the depositories act, 1996 and the regulations made thereunder22 of 1996(2) any company, other than a company mentioned in sub-section (1), may convert its securities into dematerialised form or issue its securities in physical form in accordance with the provisions of this act or in dematerialised form in accordance with the provisions of the depositories act, 1996 and the regulations made thereunder15advertisement of prospectus30 where an advertisement of any prospectus of a company is published in any manner, it shall be necessary to specify therein the contents of its memorandum as regards the objects, the liability of members and the amount of share capital of the company, and the names of the signatories to the memorandum and the number of shares subscribed for by them, and its capital structure20shelf prospectus2531 (1) any class or classes of companies, as the securities and exchange board mayprovide by regulations in this behalf, may file a shelf prospectus with the registrar at the stage of the first offer of securities included therein which shall indicate a period not exceeding one year as the period of validity of such prospectus which shall commence from the date of opening of the first offer of securities under that prospectus, and in respect of a second or subsequent offer of such securities issued during the period of validity of that prospectus, no further prospectus is required30(2) a company filing a shelf prospectus shall be required to file an information memorandum containing all material facts relating to new charges created, changes in the financial position of the company as have occurred between the first offer of securities or the previous offer of securities and the succeeding offer of securities and such other changes as may be prescribed, with the registrar within the prescribed time, prior to the issue of a second or subsequent offer of securities under the shelf prospectus:35provided that where a company or any other person has received applications for the allotment of securities along with advance payments of subscription before the making of any such change, the company or other person shall intimate the changes to such applicants and if they express a desire to withdraw their application, the company or other person shall refund all the monies received as subscription within fifteen days thereof40(3) where an information memorandum is filed, every time an offer of securities is made under sub-section (2), such memorandum together with the shelf prospectus shall be deemed to be a prospectusexplanation—for the purposes of this section, the expression "shelf prospectus"means a prospectus in respect of which the securities or class of securities included therein are issued for subscription in one or more issues over a certain period without the issue of a further prospectus45red herring prospectus32 (1) a company proposing to make an offer of securities may issue a red herring prospectus prior to the issue of a prospectus(2) a company proposing to issue a red herring prospectus under sub-section (1) shall file it with the registrar at least three days prior to the opening of the subscription list and the offer(3) a red herring prospectus shall carry the same obligations as are applicable to a prospectus and any variation between the red herring prospectus and a prospectus shall be highlighted as variations in the prospectus5(4) upon the closing of the offer of securities under this section, the prospectus stating therein the total capital raised, whether by way of debt or share capital, and the closing price of the securities and any other details as are not included in the red herring prospectus shall be filed with the registrar and the securities and exchange board10explanation—for the purposes of this section, the expression "red herring prospectus" means a prospectus which does not include complete particulars of the quantum or price of the securities included therein33 (1) no form of application for the purchase of any of the securities of a company shall be issued unless such form is accompanied by an abridged prospectus:issue of application forms for securitiesprovided that nothing in this sub-section shall apply if it is shown that the form of application was issued—15(a) in connection with a bona fide invitation to a person to enter into anunderwriting agreement with respect to such securities; or(b) in relation to securities which were not offered to the public(2) a copy of the prospectus shall, on a request being made by any person before the closing of the subscription list and the offer, be furnished to him20(3) if a company makes any default in complying with the provisions of this section, itshall be liable to a penalty of fifty thousand rupees for each default2534 where a prospectus, issued, circulated or distributed under this chapter, includes any statement which is untrue or misleading in form or context in which it is included or where any inclusion or omission of any matter is likely to mislead, every person who authorises the issue of such prospectus shall be liable under section 447:criminal liability for misstatements in prospectus provided that nothing in this section shall apply to a person if he proves that such statement or omission was immaterial or that he had reasonable grounds to believe, and did up to the time of issue of the prospectus believe, that the statement was true or the inclusion or omission was necessary3035 (1) where a person has subscribed for securities of a company acting on anystatement included, or the inclusion or omission of any matter, in the prospectus which is misleading and has sustained any loss or damage as a consequence thereof, the company and every person who—civil liability for misstatements in prospectus(a) is a director of the company at the time of the issue of the prospectus;35(b) has authorised himself to be named and is named in the prospectus as adirector of the company, or has agreed to become such director, either immediately or after an interval of time;(c) is a promoter of the company;(d) has authorised the issue of the prospectus; and (e) is an expert referred to in sub-section (5) of section 26,40shall, without prejudice to any punishment to which any person may be liable under section 36, be liable to pay compensation to every person who has sustained such loss or damage(2) no person shall be liable under sub-section (1), if he proves—45(a) that, having consented to become a director of the company, he withdrew hisconsent before the issue of the prospectus, and that it was issued without his authority or consent; or(b) that the prospectus was issued without his knowledge or consent, and that on becoming aware of its issue, he forthwith gave a reasonable public notice that it was issued without his knowledge or consent5(3) notwithstanding anything contained in this section, where it is proved that a prospectus has been issued with intent to defraud the applicants for the securities of a company or any other person or for any fraudulent purpose, every person referred to in subsection (1) shall be personally responsible, without any limitation of liability, for all or any of the losses or damages that may have been incurred by any person who subscribed to the securities on the basis of such prospectus1036 any person who, either knowingly or recklessly makes any statement, promise or forecast which is false, deceptive or misleading, or deliberately conceals any material facts, to induce another person to enter into, or to offer to enter into,—punishment for fraudulently inducing persons to invest money(a) any agreement for, or with a view to, acquiring, disposing of, subscribing for, or underwriting securities; or15(b) any agreement, the purpose or the pretended purpose of which is to secure a profit to any of the parties from the yield of securities or by reference to fluctuations in the value of securities, shall be liable for action under section 44720action by affected persons37 a suit may be filed or any other action may be taken under section 34 or section 35or section 36 by any person, group of persons or any association of persons affected by any misleading statement or the inclusion or omission of any matter in the prospectus38 (1) any person who—(a) makes or abets making of an application in a fictitious name to a company for acquiring, or subscribing for, its securities; orpunishment for personation for acquisition, etc, of securities25(b) makes or abets making of multiple applications to a company in different names or in different combinations of his name or surname for acquiring or subscribing for its securities; or(c) otherwise induces directly or indirectly a company to allot, or register any transfer of, securities to him, or to any other person in a fictitious name,30shall be liable for action under section 447 (2) the provisions of sub-section (1) shall be prominently reproduced in every prospectus issued by a company and in every form of application for securities(3) where a person has been convicted under this section, the court may also order disgorgement of gain, if any, made by, and seizure and disposal of the securities in possession of, such person35(4) the amount received through disgorgement or disposal of securities under subsection (3) shall be credited to the investor education and protection fundallotment of securities by company4039 (1) no allotment of any securities of a company offered to the public for subscription shall be made unless the amount stated in the prospectus as the minimum amount has been subscribed and the sums payable on application for the amount so stated have been paid to and received by the company by cheque or other instrument(2) the amount payable on application on every security shall not be less than five per cent of the nominal amount of the security or such other percentage or amount, as may be specified by the securities and exchange board by making regulations in this behalf5(3) if the stated minimum amount has not been subscribed and the sum payable on application is not received within a period of thirty days from the date of issue of the prospectus, or such other period as may be specified by the securities and exchange board, the amount received under sub-section (1) shall be returned within such time and manner as may be prescribed(4) whenever a company having a share capital makes any allotment of securities, it shall file with the registrar a return of allotment in such manner as may be prescribed10 (5) in case of any default under sub-section (3) or sub-section (4), the company and its officer who is in default shall be liable to a penalty, for each default, of one thousand rupees for each day during which such default continues or one lakh rupees, whichever is less40 (1) every company making public offer shall, before making such offer, make an application to one or more recognised stock exchange or exchanges and obtain permission for the securities to be dealt with in such stock exchange or exchangessecurities to be dealt with in stock exchanges15(2) where a prospectus states that an application under sub-section (1) has been made, such prospectus shall also state the name or names of the stock exchange in which the securities shall be dealt with(3) all monies received on application from the public for subscription to the securities shall be kept in a separate bank account in a scheduled bank and shall not be utilised for any purpose other than—20(a) for adjustment against allotment of securities where the securities have beenpermitted to be dealt with in the stock exchange or stock exchanges specified in the prospectus; or25(b) for the repayment of monies within the time specified by the securities andexchange board, received from applicants in pursuance of the prospectus, where the company is for any other reason unable to allot securities(4) any condition purporting to require or bind any applicant for securities to waive compliance with any of the requirements of this section shall be void30(5) if a default is made in complying with the provisions of this section, the company shall be punishable with a fine which shall not be less than five lakh rupees but which may extend to fifty lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees, or with both35(6) a company may pay commission to any person in connection with the subscription to its securities subject to such conditions as may be prescribedglobal depository receipt41 a company may, after passing a special resolution in its general meeting, issue depository receipts in any foreign country in such manner, and subject to such conditions, as may be prescribed part ii—private placement5offer or invitation for subscription of securities on private placement42 (1) subject to the provisions of this section, but without prejudice to the provisions of section 25, a company may make an offer or invitation of securities to a section of the public otherwise than through issue of a prospectus by way of private placement basis in such form and manner as may be prescribed, if the conditions indicated in sub-section (2)and other provisions of this section are complied with(2) an offer or invitation of securities mentioned in sub-section (1) may be made under the following conditions, namely:—(a) the offer or invitation in a financial year, shall be made to such number of persons, excluding qualified institutional buyers, and on such conditions (including the maximum amount to be raised) as may be prescribed;10(b) the value of such offer or invitation shall be with an investment size of such amount as may be prescribed; and (c) the company shall not issue any prospectus for such offer or invitation and such offer or invitation shall be made through a private placement offer letter15 20explanation i—if a company, listed or unlisted, makes an offer to allot or invites subscription, or allots, or enters into an agreement to allot, securities to more than the prescribed number of persons under clause (a), whether the payment for the securities has been received or not or whether the company intends to list its securities or not on any recognised stock exchange in or outside india, the same shall be deemed to be an offer to the public and shall accordingly be governed by the provisions of clause (a) of section 23explanation ii— for the purposes of this section, the term "qualified institutional buyer" means the ''qualified institutional buyer'' as defined in the securities and exchange board of india (issue of capital and disclosure requirments) regulations, 2009 as amended from time to time25(3) no fresh offer or invitation under this section shall be made unless the allotments with respect to any offer or invitation made earlier have been completed42 of 1956 15 of 199230(4) any offer or invitation not in compliance with the provisions of this section shall be treated as a public offer and all provisions of this act, and the securities contracts (regulation) act, 1956 and the securities and exchange board of india act, 1992 shall be required to be complied with(5) all monies payable towards subscription of securities under this section shall be paid through cheque or demand draft or other banking channels but not by cash35 (6) a company making an offer or invitation under this section shall allot its securities within sixty days from the date of receipt of the application money for such securities and if the company is not able to allot the securities within that period, it shall repay the application money to the subscribers within fifteen days from the date of completion of sixty days and if the company fails to repay the application money within the aforesaid period, it shall be liable to repay that money with interest at the rate of twelve per cent per annum from the expiry of the sixtieth day:40provided that monies received on application under this section shall be kept in a separate bank account in a scheduled bank and shall not be utilised for any purpose other than—(a) for adjustment against allotment of securities; or (b) for the repayment of monies where the company is unable to allot securities4550(7) all offers covered under this section shall be made only to such persons whose names are recorded by the company prior to the invitation to subscribe, and that such persons shall receive the offer by name, and that a complete record of such offers shall be kept by the company in such manner as may be prescribed and complete information about such offer shall be filed with the registrar within a period of thirty days of circulation of relevant private placement offer letter(8) no company offering securities under this section shall release any public advertisements or utilise any media, marketing or distribution channels or agents to inform the public at large about such an offer5(9) whenever a company makes any allotment of securities under this section, it shall file with the registrar a return of allotment in such manner as may be prescribed, including the complete list of all security-holders, with their full names, addresses, number of securities allotted and such other relevant information as may be prescribed(10) the central government may make rules in relation to offer or invitation of securities to be made by the companies under this section10(11) if a company makes an offer or accepts monies in contravention of this section, the company, its promoters and directors shall be liable for a penalty which may extend to the amount involved in the offer or invitation or two crore rupees, whichever is higher, and the company shall also refund all monies to subscribers within a period of thirty days of the order imposing the penalty chapter iv15 share capital and debentures43 the share capital of a company limited by shares shall be of two kinds, namely:—kinds of share capital(a) equity share capital—(i) with voting rights; or20(ii) with differential rights as to dividend, voting or otherwise in accordancewith such rules as may be prescribed; and (b) preference share capital: provided that nothing contained in this act shall affect the rights of the preference shareholders who are entitled to participate in the proceeds of winding up before the commencement of this act25explanation—for the purposes of this section,—(i) ''equity share capital'', with reference to any company limited by shares, means all share capital which is not preference share capital;30(ii) ''preference share capital'', with reference to any company limited by shares, means that part of the issued share capital of the company which carries or would carry a preferential right with respect to—(a) payment of dividend, either as a fixed amount or an amount calculatedat a fixed rate, which may either be free of or subject to income-tax; and35(b) repayment, in the case of a winding up or repayment of capital, of theamount of the share capital paid-up or deemed to have been paid-up, whether or not, there is a preferential right to the payment of any fixed premium or premium on any fixed scale, specified in the memorandum or articles of the company;(iii) capital shall be deemed to be preference capital, notwithstanding that it is entitled to either or both of the following rights, namely:—40(a) that in respect of dividends, in addition to the preferential rights to theamounts specified in sub-clause (a) of clause (ii), it has a right to participate,whether fully or to a limited extent, with capital not entitled to the preferential right aforesaid;45(b) that in respect of capital, in addition to the preferential right to therepayment, on a winding up, of the amounts specified in sub-clause (b) of clause( ii), it has a right to participate, whether fully or to a limited extent, with capital not entitled to that preferential right in any surplus which may remain after the entire capital has been repaid44 the shares or debentures or other interest of any member in a company shall be movable property transferable in the manner provided by the articles of the companynature of shares or debenturesnumbering of shares45 every share in a company having a share capital shall be distinguished by its distinctive number:5provided that nothing in this section shall apply to a share held by a person whose name is entered as holder of beneficial interest in such share in the records of a depositorycertificate of shares46 (1) a certificate, issued under the common seal of the company, specifying theshares held by any person, shall be prima facie evidence of the title of the person to suchshares10(2) a duplicate certificate of shares may be issued, if such certificate —(a) is proved to have been lost or destroyed; or (b) has been defaced, mutilated or torn and is surrendered to the company15(3) notwithstanding anything contained in the articles of a company, the manner of issue of a certificate of shares or the duplicate thereof, the form of such certificate, the particulars to be entered in the register of members and other matters shall be such as may be prescribed(4) where a share is held in depository form, the record of the depository is the prima facie evidence of the interest of the beneficial owner20(5) if a company with intent to defraud issues a duplicate certificate of shares, the company shall be punishable with fine which shall not be less than five times the face value of the shares involved in the issue of the duplicate certificate but which may extend to ten times the face value of such shares or rupees ten crores whichever is higher and every officer of the company who is in default shall be liable for action under section 44722 of 199625(6) without prejudice to any liability under the depositories act, 1996, where any depository or depository participant, with an intention to defraud a person, has transferred shares, it shall be liable under section 447voting rights47 (1) subject to the provisions of section 43 and sub-section (2) of section 50,—30(a) every member of a company limited by shares and holding equity share capital therein, shall have a right to vote on every resolution placed before the company; and(b) his voting right on a poll shall be in proportion to his share in the paid-up equity share capital of the company35(2) every member of a company limited by shares and holding any preference share capital therein shall, in respect of such capital, have a right to vote only on resolutions placed before the company which directly affect the rights attached to his preference shares and, any resolution for the winding up of the company or for the repayment or reduction of its equity or preference share capital and his voting right on a poll shall be in proportion to his share in the paid-up preference share capital of the company:40provided that the proportion of the voting rights of equity shareholders to the voting rights of the preference shareholders shall be in the same proportion as the paid-up capital in respect of the equity shares bears to the paid-up capital in respect of the preference shares:provided further that where the dividend in respect of a class of preference shares has not been paid for a period of two years or more, such class of preference shareholders shall have a right to vote on all the resolutions placed before the companyvariation of shareholders' rights548 (1) where a share capital of the company is divided into different classes of shares, the rights attached to the shares of any class may be varied with the consent in writing of the holders of not less than three-fourths of the issued shares of that class or by means of a special resolution passed at a separate meeting of the holders of the issued shares of that class,—(a) if provision with respect to such variation is contained in the memorandum or articles of the company; or(b) in the absence of any such provision in the memorandum or articles, if such variation is not prohibited by the terms of issue of the shares of that class:10provided that if variation by one class of shareholders affects the rights of any other class of shareholders, the consent of three-fourths of such other class of shareholders shall also be obtained and the provisions of this section shall apply to such variation15(2) where the holders of not less than ten per cent of the issued shares of a class did not consent to such variation or vote in favour of the special resolution for the variation, they may apply to the tribunal to have the variation cancelled, and where any such application is made, the variation shall not have effect unless and until it is confirmed by the tribunal:20 provided that an application under this section shall be made within twenty-one days after the date on which the consent was given or the resolution was passed, as the case may be, and may be made on behalf of the shareholders entitled to make the application by such one or more of their number as they may appoint in writing for the purpose(3) the decision of the tribunal on any application under sub-section (2) shall be binding on the shareholders(4) the company shall, within thirty days of the date of the order of the tribunal, file a copy thereof with the registrar25(5) where any default is made in complying with the provisions of this section, the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees, or with both3049 where any calls for further share capital are made on the shares of a class, such calls shall be made on a uniform basis on all shares falling under that classexplanation—for the purposes of this section, shares of the same nominal value on which different amounts have been paid-up shall not be deemed to fall under the same classcalls on shares of same class to be made on uniform basis3550 (1) a company may, if so authorised by its articles, accept from any member, thewhole or a part of the amount remaining unpaid on any shares held by him, even if no part of that amount has been called upcompany to accept unpaid share capital, although not called up40(2) a member of the company limited by shares shall not be entitled to any voting rights in respect of the amount paid by him under sub-section (1) until that amount has been called up51 a company may, if so authorised by its articles, pay dividends in proportion to the amount paid-up on each share45payment of dividend in proportion to amount paidup application of premiums received on issue of shares52 (1) where a company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to a "securities premium account" and the provisions of this act relating to reduction of share capital of a company shall, except as provided in this section, apply as if the securities premium account were the paid-up share capital of the company(2) notwithstanding anything contained in sub-section (1), the securities premium account may be applied by the company—50(a) towards the issue of unissued shares of the company to the members of thecompany as fully paid bonus shares;(b) in writing off the preliminary expenses of the company; (c) in writing off the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the company;5(d) in providing for the premium payable on the redemption of any redeemable preference shares or of any debentures of the company; or(e) for the purchase of its own shares or other securities under section 6810(3) the securities premium account may, notwithstanding anything contained in sub-sections (1) and (2), be applied by such class of companies, as may be prescribed and whose financial statement comply with the accounting standards prescribed for such class of companies under section 133,—(a) in paying up unissued equity shares of the company to be issued to members of the company as fully paid bonus shares; or(b) in writing off the expenses of or the commission paid or discount allowed on any issue of equity shares of the company; or15 (c) for the purchase of its own shares or other securities under section 6853 (1) except as provided in section 54, a company shall not issue shares at a discount (2) any share issued by a company at a discounted price shall be voidprohibition on issue of shares at discount20(3) where a company contravenes the provisions of this section, the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees and every officer who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees, or with bothissue of sweat equity shares54 (1) notwithstanding anything contained in section 53, a company may issue sweat equity shares of a class of shares already issued, if the following conditions are fulfilled, namely:—25(a) the issue is authorised by a special resolution passed by the company; (b) the resolution specifies the number of shares, the current market price, consideration, if any, and the class or classes of directors or employees to whom such equity shares are to be issued;30(c) not less than one year has, at the date of such issue, elapsed since the date on which the company had commenced business; and35(d) where the equity shares of the company are listed on a recognised stock exchange, the sweat equity shares are issued in accordance with the regulations made by the securities and exchange board in this behalf and if they are not so listed, the sweat equity shares are issued in accordance with such rules as may be prescribed (2) the rights, limitations, restrictions and provisions as are for the time being applicable to equity shares shall be applicable to the sweat equity shares issued under this section and the holders of such shares shall rank pari passu with other equity shareholders55 (1) no company limited by shares shall, after the commencement of this act, issue any preference shares which are irredeemable40issue and redemption of preference shares(2) a company limited by shares may, if so authorised by its articles, issue preference shares which are liable to be redeemed within a period not exceeding twenty years from the date of their issue subject to such conditions as may be prescribed:provided that a company may issue preference shares for a period exceeding twenty years for infrastructure projects, subject to the redemption of such percentage of shares as may be prescribed on an annual basis at the option of such preferential shareholders:provided further that—5(a) no such shares shall be redeemed except out of the profits of the companywhich would otherwise be available for dividend or out of the proceeds of a fresh issue of shares made for the purposes of such redemption;(b) no such shares shall be redeemed unless they are fully paid;10(c) where such shares are proposed to be redeemed out of the profits of thecompany, there shall, out of such profits, be transferred, a sum equal to the nominal amount of the shares to be redeemed, to a reserve, to be called the capital redemption reserve account, and the provisions of this act relating to reduction of share capital of a company shall, except as provided in this section, apply as if the capital redemption reserve account were paid-up share capital of the company; and15(d) (i) in case of such class of companies, as may be prescribed and whosefinancial statement comply with the accounting standards prescribed for such class of companies under section 133, the premium, if any, payable on redemption shall be provided for out of the profits of the company, before the shares are redeemed:20provided also that premium, if any, payable on redemption of any preference shares issued on or before the commencement of this act by any such company shall be provided for out of the profits of the company or out of the company's securities premium account, before such shares are redeemed(ii) in a case not falling under sub-clause (i) above, the premium, if any, payable on redemption shall be provided for out of the profits of the company or out of the company's securities premium account, before such shares are redeemed25 30(3) where a company is not in a position to redeem any preference shares or to pay dividend, if any, on such shares in accordance with the terms of issue (such shares hereinafter referred to as unredeemed preference shares), it may, with the consent of the holders of three-fourths in value of such preference shares and with the approval of the tribunal on a petition made by it in this behalf, issue further redeemable preference shares equal to the amount due, including the dividend thereon, in respect of the unredeemed preference shares, and on the issue of such further redeemable preference shares, the unredeemed preference shares shall be deemed to have been redeemed:35provided that the tribunal shall, while giving approval under this sub-section, order the redemption forthwith of preference shares held by such persons who have not consented to the issue of further redeemable preference sharesexplanation—for the removal of doubts, it is hereby declared that the issue of further redeemable preference shares or the redemption of preference shares under this section shall not be deemed to be an increase or, as the case may be, a reduction, in the share capital of the company40(4) the capital redemption reserve account may, notwithstanding anything in this section, be applied by the company, in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares45explanation—for the purposes of sub-section (2), the term ''infrastructure projects''means the infrastructure projects specified in schedule vitransfer and transmission of securities56 (1) a company shall not register a transfer of securities of the company, or the interest of a member in the company in the case of a company having no share capital, other than the transfer between persons both of whose names are entered as holders of beneficial interest in the records of a depository, unless a proper instrument of transfer, in such form as5may be prescribed, duly stamped, dated and executed by or on behalf of the transferor and the transferee and specifying the name, address and occupation, if any, of the transferee has been delivered to the company by the transferor or the transferee within a period of sixty days from the date of execution, along with the certificate relating to the securities, or if no such certificate is in existence, along with the letter of allotment of securities: provided that where the instrument of transfer has been lost or the instrument of transfer has not been delivered within the prescribed period, the company may register the transfer on such terms as to indemnity as the board may think fit10(2) nothing in sub-section (1) shall prejudice the power of the company to register, on receipt of an intimation of transmission of any right to securities by operation of law from any person to whom such right has been transmitted15(3) where an application is made by the transferor alone and relates to partly paid shares, the transfer shall not be registered, unless the company gives the notice of the application, in such manner as may be prescribed, to the transferee and the transferee gives no objection to the transfer within two weeks from the receipt of notice(4) every company shall, unless prohibited by any provision of law or any order of court, tribunal or other authority, deliver the certificates of all securities allotted, transferred or transmitted—20(a) within a period of two months from the date of incorporation, in the case of subscribers to the memorandum;(b) within a period of two months from the date of allotment, in the case of any allotment of any of its shares;25(c) within a period of one month from the date of receipt by the company of the instrument of transfer under sub-section (1) or, as the case may be, of the intimation of transmission under sub-section (2), in the case of a transfer or transmission of securities;(d) within a period of six months from the date of allotment in the case of any allotment of debenture:30 provided that where the securities are dealt with in a depository, the company shall intimate the details of allotment of securities to depository immediately on allotment of such securities(5) the transfer of any security or other interest of a deceased person in a company made by his legal representative shall, even if the legal representative is not a holder thereof, be valid as if he had been the holder at the time of the execution of the instrument of transfer35 40(6) where any default is made in complying with the provisions of sub-sections (1) to(5), the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than ten thousand rupees but which may extend to one lakh rupees, or with bothpunishment for personation of shareholder4557 if any person deceitfully personates as an owner of any share or interest in a company, or of any share warrant or coupon issued in pursuance of this act, and thereby obtains or attempts to obtain any such share or interest or any such share warrant or coupon, or receives or attempts to receive any money due to any such owner, he shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to three years and with fine which shall not be less than one lakh rupees but which may extend to five lakh rupeesrefusal of registration and appeal against refusal510 15 20 25 30rectification of register of members35 40 45 5042 of 1956 15 of 19925558 (1) if a private company limited by shares refuses, whether in pursuance of any power of the company under its articles or otherwise, to register the transfer of, or the transmission by operation of law of the right to, any securities or interest of a member in the company, it shall within a period of thirty days from the date on which the instrument of transfer, or the intimation of such transmission, as the case may be, was delivered to the company, send notice of the refusal to the transferor and the transferee or to the person giving intimation of such transmission, as the case may be, giving reasons for such refusal(2) without prejudice to sub-section (1), the securities or other interest of any member in a public company shall be freely transferable:provided that any contract or arrangement between two or more persons in respect of transfer of securities shall be enforceable as a contract(3) the transferee may appeal to the tribunal against the refusal within a period of thirty days from the date of receipt of the notice or in case no notice has been sent by the company, within a period of sixty days from the date on which the instrument of transfer or the intimation of transmission, as the case may be, was delivered to the company(4) if a public company without sufficient cause refuses to register the transfer of shares within a period of thirty days from the date on which the instrument of transfer or the intimation of transmission, as the case may be, is delivered to the company, the transferee may, within a period of sixty days of such refusal or where no intimation has been received from the company, within ninety days of the delivery of the instrument of transfer or intimation of transmission, appeal to the tribunal(5) the tribunal, while dealing with an appeal made under sub-section (3) or subsection (4), may, after hearing the parties, either dismiss the appeal, or by order—(a) direct that the transfer or transmission shall be registered by the company and the company shall comply with such order within a period of ten days of the receipt of the order; or(b) direct rectification of the register and also direct the company to pay damages, if any, sustained by any party aggrieved (6) if a person contravenes the order of the tribunal under this section, he shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to three years and with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees59 (1) if the name of any person is, without sufficient cause, entered in the register of members of a company, or after having been entered in the register, is, without sufficient cause, omitted therefrom, or if a default is made, or unnecessary delay takes place in entering in the register, the fact of any person having become or ceased to be a member, the person aggrieved, or any member of the company, or the company may appeal in such form as may be prescribed, to the tribunal, or to a competent court outside india, specified by the central government by notification, in respect of foreign members or debenture holders residing outside india, for rectification of the register(2) the tribunal may, after hearing the parties to the appeal under sub-section (1) by order, either dismiss the appeal or direct that the transfer or transmission shall be registered by the company within a period of ten days of the receipt of the order or direct rectification of the records of the depository or the register and in the latter case, direct the company to pay damages, if any, sustained by the party aggrieved(3) the provisions of this section shall not restrict the right of a holder of shares or debentures, to transfer such shares or debentures and any person acquiring such shares or debentures shall be entitled to voting rights unless the voting rights have been suspended by an order of the tribunal(4) where the transfer of securities is in contravention of any of the provisions of the securities contracts (regulation) act, 1956, the securities and exchange board of india act, 1992 or this act or any other law for the time being in force, the tribunal may, on an application made by the depository, company, depository participant, the holder of the securities or the securities and exchange board, direct any company or a depository to set right the contravention and rectify its register or records concerned5(5) if any default is made in complying with the order of the tribunal under this section, the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees, or with both10publication of authorised, subscribed and paid-up capital60 (1) where any notice, advertisement or other official publication, or any business letter, billhead or letter paper of a company contains a statement of the amount of the authorised capital of the company, such notice, advertisement or other official publication, or such letter, billhead or letter paper shall also contain a statement, in an equally prominent position and in equally conspicuous characters, of the amount of the capital which has been subscribed and the amount paid-up15(2) if any default is made in complying with the requirements of sub-section (1), the company shall be liable to pay a penalty of ten thousand rupees and every officer of the company who is in default shall be liable to pay a penalty of five thousand rupees, for each default61 (1) a limited company having a share capital may, if so authorised by its articles, alter its memorandum in its general meeting to—(a) increase its authorised share capital by such amount as it thinks expedient;power of limited company to alter its share capital20(b) consolidate and divide all or any of its share capital into shares of a larger amount than its existing shares, after making application to the tribunal in such manner as may be prescribed and after obtaining the approval of the tribunal;(c) convert all or any of its fully paid-up shares into stock, and reconvert that stock into fully paid-up shares of any denomination;25(d) sub-divide its shares, or any of them, into shares of smaller amount than is fixed by the memorandum, so, however, that in the sub-division the proportion between the amount paid and the amount, if any, unpaid on each reduced share shall be the same as it was in the case of the share from which the reduced share is derived;30(e) cancel shares which, at the date of the passing of the resolution in that behalf, have not been taken or agreed to be taken by any person, and diminish the amount of its share capital by the amount of the shares so cancelled (2) the cancellation of shares under sub-section (1) shall not be deemed to be a reduction of share capital3562 (1) where at any time, a company having a share capital proposes to increase its subscribed capital by the issue of further shares, such shares shall be offered—further issue of share capital(a) to persons who, at the date of the offer, are holders of equity shares of the company in proportion, as nearly as circumstances admit, to the paid-up share capital on those shares by sending a letter of offer subject to the following conditions, namely:—40(i) the offer shall be made by notice specifying the number of shares offered and limiting a time not being less than fifteen days and not exceeding thirty days from the date of the offer within which the offer, if not accepted, will be deemed to have been declined;45(ii) unless the articles of the company otherwise provide, the offer aforesaid shall be deemed to include a right exercisable by the person concerned to renounce the shares offered to him or any of them in favour of any other person; and the notice referred to in clause (i) shall contain a statement of this right;(iii) after the expiry of the time specified in the notice aforesaid, or on receipt of earlier intimation from the person to whom such notice is given that he declines to accept the shares offered, the board of directors may dispose of them in such manner which is not dis-advantageous to the shareholders and the company;5(b) to employees under a scheme of employees' stock option, subject to special resolution passed by company and subject to such conditions as may be prescribed; or10(c) to any persons, if it is authorised by a special resolution, whether or not those persons include the persons referred to in clause (a) or clause (b), either for cash or for a consideration other than cash, if the price of such shares is determined by the valuation report of a registered valuer subject to such conditions as may be prescribed (2) the notice referred to in sub-clause (i) of clause (a) of sub-section (1) shall be despatched through registered post or speed post or through electronic mode to all the existing shareholders at least three days before the opening of the issue15(3) nothing in this section shall apply to the increase of the subscribed capital of a company caused by the exercise of an option as a term attached to the debentures issued or loan raised by the company to convert such debentures or loans into shares in the company:20provided that the terms of issue of such debentures or loan containing such an option have been approved before the issue of such debentures or the raising of loan by a special resolution passed by the company in general meeting25(4) notwithstanding anything contained in sub-section (3), where any debentures have been issued, or loan has been obtained from any government by a company, and if that government considers it necessary in the public interest so to do, it may, by order, direct that such debentures or loans or any part thereof shall be converted into shares in the company on such terms and conditions as appear to the government to be reasonable in the circumstances of the case even if terms of the issue of such debentures or the raising of such loans do not include a term for providing for an option for such conversion:30provided that where the terms and conditions of such conversion are not acceptable to the company, it may, within sixty days from the date of communication of such order, appeal to the tribunal which shall after hearing the company and the government pass such order as it deems fit35(5) in determining the terms and conditions of conversion under sub-section (4), the government shall have due regard to the financial position of the company, the terms of issue of debentures or loans, as the case may be, the rate of interest payable on such debentures or loans and such other matters as it may consider necessary40(6) where the government has, by an order made under sub-section (4), directed that any debenture or loan or any part thereof shall be converted into shares in a company and where no appeal has been preferred to the tribunal under sub-section (4) or where such appeal has been dismissed, the memorandum of such company shall, where such order has the effect of increasing the authorised share capital of the company, stand altered and the authorised share capital of such company shall stand increased by an amount equal to the amount of the value of shares which such debentures or loans or part thereof has been converted into45issue of bonus shares63 (1) a company may issue fully paid-up bonus shares to its members, in any mannerwhatsoever, out of— (i) its free reserves; (ii) the securities premium account; or (iii) the capital redemption reserve account: provided that no issue of bonus shares shall be made by capitalising reserves created by the revaluation of assets5(2) no company shall capitalise its profits or reserves for the purpose of issuing fully paid-up bonus shares under sub-section (1), unless—(a) it is authorised by its articles; (b) it has, on the recommendation of the board, been authorised in the general meeting of the company;10(c) it has not defaulted in payment of interest or principal in respect of fixed deposits or debt securities issued by it;(d) it has not defaulted in respect of the payment of statutory dues of the employees, such as, contribution to provident fund, gratuity and bonus;(e) the partly paid-up shares, if any outstanding on the date of allotment, are made fully paid-up;15(f) it complies with such conditions as may be prescribed(3) the bonus shares shall not be issued in lieu of dividend 64 (1) where— (a) a company alters its share capital in any manner specified in sub-section (1)of section 61;notice to be given to registrar for alteration of share capital20(b) an order made by the government under sub-section (4) read with sub-section (6) of section 62 has the effect of increasing authorised capital of a company; or(c) a company redeems any redeemable preference shares,25the company shall file a notice in the prescribed form with the registrar within a period of thirty days of such alteration or increase or redemption, as the case may be, along with an altered memorandum30(2) if a company and any officer of the company who is in default contravenes the provisions of sub-section (1), it or he shall be punishable with fine which may extend to one thousand rupees for each day during which such default continues, or five lakh rupees, whichever is less65 an unlimited company having a share capital may, by a resolution for registration as a limited company under this act, do either or both of the following things, namely—35unlimited company to provide for reserve share capital on conversion into limited company(a) increase the nominal amount of its share capital by increasing the nominal amount of each of its shares, subject to the condition that no part of the increased capital shall be capable of being called up except in the event and for the purposes of the company being wound up;(b) provide that a specified portion of its uncalled share capital shall not be capable of being called up except in the event and for the purposes of the company being wound upreduction of share capital66 (1) subject to confirmation by the tribunal on an application by the company, a company limited by shares or limited by guarantee and having a share capital may, by a special resolution, reduce the share capital in any manner and in, particular, may—5(a) extinguish or reduce the liability on any of its shares in respect of the sharecapital not paid-up; or(b) either with or without extinguishing or reducing liability on any of itsshares,—(i) cancel any paid-up share capital which is lost or is unrepresented byavailable assets; or10(ii) pay off any paid-up share capital which is in excess of the wants of thecompany,alter its memorandum by reducing the amount of its share capital and of its shares accordingly:15provided that no such reduction shall be made if the company is in arrears in the repayment of any deposits accepted by it, either before or after the commencement of this act, or the interest payable thereon20(2) the tribunal shall give notice of every application made to it under sub-section(1) to the central government, registrar and to the securities and exchange board, in the case of listed companies, and the creditors of the company and shall take into consideration the representations, if any, made to it by that government, registrar, the securities and exchange board and the creditors within a period of three months from the date of receipt of the notice:25provided that where no representation has been received from the central government, registrar, the securities and exchange board or the creditors within the said period, it shall be presumed that they have no objection to the reduction(3) the tribunal may, if it is satisfied that the debt or claim of every creditor of the company has been discharged or determined or has been secured or his consent is obtained, make an order confirming the reduction of share capital on such terms and conditions as it deems fit:30 provided that no application for reduction of share capital shall be sanctioned by the tribunal unless the accounting treatment, proposed by the company for such reduction is in conformity with the accounting standards specified in section 133 or any other provision of this act and a certificate to that effect by the company's auditor has been filed with the tribunal35(4) the order of confirmation of the reduction of share capital by the tribunal undersub-section (3) shall be published by the company in such manner as the tribunal may direct(5) the company shall deliver a certified copy of the order of the tribunal under subsection (3) and of a minute approved by the tribunal showing—(a) the amount of share capital;40(b) the number of shares into which it is to be divided; (c) the amount of each share; and(d) the amount, if any, at the date of registration deemed to be paid-up on each share, to the registrar within thirty days of the receipt of the copy of the order, who shall register the same and issue a certificate to that effect5(6) nothing in this section shall apply to buy-back of its own securities by a company under section 6810(7) a member of the company, past or present, shall not be liable to any call or contribution in respect of any share held by him exceeding the amount of difference, if any, between the amount paid on the share, or reduced amount, if any, which is to be deemed to have been paid thereon, as the case may be, and the amount of the share as fixed by the order of reduction15(8) where the name of any creditor entitled to object to the reduction of share capital under this section is, by reason of his ignorance of the proceedings for reduction or of their nature and effect with respect to his debt or claim, not entered on the list of creditors, and after such reduction, the company is unable, within the meaning of sub-section (2) of section271, to pay the amount of his debt or claim,—20(a) every person, who was a member of the company at the date of the registration of the order for reduction by the registrar, shall be liable to contribute to the payment of that debt or claim, an amount not exceeding the amount which he would have been liable to contribute if the company had commenced winding up on the day immediately before the said date; and25(b) if the company is wound up, the tribunal may, on the application of any such creditor and proof of his ignorance as aforesaid, if it thinks fit, settle a list of persons so liable to contribute, and make and enforce calls and orders on the contributories settled on the list, as if they were ordinary contributories in a winding up (9) nothing in sub-section (8) shall affect the rights of the contributories among themselves(10) if any officer of the company—(a) knowingly conceals the name of any creditor entitled to object to the reduction;30(b) knowingly misrepresents the nature or amount of the debt or claim of any creditor; or(c) abets or is privy to any such concealment or misrepresentation as aforesaid, he shall be liable under section 44735(11) if a company fails to comply with the provisions of sub-section (4), it shall be punishable with fine which shall not be less than five lakh rupees but which may extend to twenty-five lakh rupees67 (1) no company limited by shares or by guarantee and having a share capital shall have power to buy its own shares unless the consequent reduction of share capital is effected under the provisions of this act40restrictions on purchase by company or giving of loans by it for purchase of its shares(2) no public company shall give, whether directly or indirectly and whether by means of a loan, guarantee, the provision of security or otherwise, any financial assistance for the purpose of, or in connection with, a purchase or subscription made or to be made, by any person of or for any shares in the company or in its holding company(3) nothing in sub-section (2) shall apply to—45(a) the lending of money by a banking company in the ordinary course of its business;5(b) the provision by a company of money in accordance with any scheme approved by company through special resolution and in accordance with such requirements as may be prescribed, for the purchase of, or subscription for, fully paidup shares in the company or its holding company, if the purchase of, or the subscription for, the shares held by trustees for the benefit of the employees or such shares held by the employee of the company;10(c) the giving of loans by a company to persons in the employment of the company other than its directors or key managerial personnel, for an amount not exceeding their salary or wages for a period of six months with a view to enabling them to purchase or subscribe for fully paid-up shares in the company or its holding company to be held by them by way of beneficial ownership:provided that disclosures in respect of voting rights not exercised directly by the employees in respect of shares to which the scheme relates shall be made in the board's report in such manner as may be prescribed15(4) nothing in this section shall affect the right of a company to redeem any preference shares issued by it under this act or under any previous company law20(5) if a company contravenes the provisions of this section, it shall be punishable with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years and with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees68 (1) notwithstanding anything contained in this act, but subject to the provisions of sub-section (2), a company may purchase its own shares or other specified securities (hereinafter referred to as buy-back) out of—power of company to purchase its own securities25(a) its free reserves; (b) the securities premium account; or (c) the proceeds of the issue of any shares or other specified securities:provided that no buy-back of any kind of shares or other specified securities shall be made out of the proceeds of an earlier issue of the same kind of shares or same kind of other specified securities30(2) no company shall purchase its own shares or other specified securities under subsection (1), unless—(a) the buy-back is authorised by its articles; (b) a special resolution has been passed at a general meeting of the company authorising the buy-back:35provided that nothing contained in this clause shall apply to a case where—(i) the buy-back is, ten per cent or less of the total paid-up equity capital and free reserves of the company; and40(ii) such buy-back has been authorised by the board by means of a resolution passed at its meeting; (c) the buy-back is twenty-five per cent or less of the aggregate of paid-up capital and free reserves of the company:45provided that in respect of the buy-back of equity shares in any financial year, the reference to twenty-five per cent in this clause shall be construed with respect to its total paid-up equity capital in that financial year;(d) the ratio of the aggregate of secured and unsecured debts owed by the company after buy-back is not more than twice the paid-up capital and its free reserves:provided that the central government may, by order, notify a higher ratio of the debt to capital and free reserves for a class or classes of companies;5(e) all the shares or other specified securities for buy-back are fully paid-up; (f) the buy-back of the shares or other specified securities listed on any recognised stock exchange is in accordance with the regulations made by the securities and exchange board in this behalf; and10(g) the buy-back in respect of shares or other specified securities other than those specified in clause (f) is in accordance with such rules as may be prescribed: provided that no offer of buy-back under this sub-section shall be made within a period of one year reckoned from the date of the closure of the preceding offer of buy-back, if any15(3) the notice of the meeting at which the special resolution is proposed to be passed under clause (b) of sub-section (2) shall be accompanied by an explanatory statement stating—(a) a full and complete disclosure of all material facts; (b) the necessity for the buy-back; (c) the class of shares or securities intended to be purchased under the buy-back; (d) the amount to be invested under the buy-back; and20(e) the time-limit for completion of buy-back(4) every buy-back shall be completed within a period of one year from the date of passing of the special resolution, or as the case may be, the resolution passed by the board under clause (b) of sub-section (2)(5) the buy-back under sub-section (1) may be—25(a) from the existing shareholders or security holders on a proportionate basis; (b) from the open market; (c) by purchasing the securities issued to employees of the company pursuantto a scheme of stock option or sweat equity30 35(6) where a company proposes to buy-back its own shares or other specified securities under this section in pursuance of a special resolution under clause (b) of sub-section (2) or a resolution under item (ii) of the proviso thereto, it shall, before making such buy-back, file with the registrar and the securities and exchange board, a declaration of solvency signed by at least two directors of the company, one of whom shall be the managing director, if any, in such form as may be prescribed and verified by an affidavit to the effect that the board of directors of the company has made a full inquiry into the affairs of the company as a result of which they have formed an opinion that it is capable of meeting its liabilities and will not be rendered insolvent within a period of one year from the date of declaration adopted by the board:provided that no declaration of solvency shall be filed with the securities and exchange board by a company whose shares are not listed on any recognised stock exchange(7) where a company buys back its own shares or other specified securities, it shall extinguish and physically destroy the shares or securities so bought back within seven days of the last date of completion of buy-back(8) where a company completes a buy-back of its shares or other specified securities under this section, it shall not make a further issue of the same kind of shares or other securities including allotment of new shares under clause (a) of sub-section (1) of section 62or other specified securities within a period of six months except by way of a bonus issue or in the discharge of subsisting obligations such as conversion of warrants, stock option schemes, sweat equity or conversion of preference shares or debentures into equity shares5(9) where a company buys back its shares or other specified securities under this section, it shall maintain a register of the shares or securities so bought, the consideration paid for the shares or securities bought back, the date of cancellation of shares or securities, the date of extinguishing and physically destroying the shares or securities and such other particulars as may be prescribed10(10) a company shall, after the completion of the buy-back under this section, file with the registrar and the securities and exchange board a return containing such particulars relating to the buy-back within thirty days of such completion, as may be prescribed:provided that no return shall be filed with the securities and exchange board by a company whose shares are not listed on any recognised stock exchange15(11) if a company makes any default in complying with the provisions of this section or any regulation made by the securities and exchange board, for the purposes of clause (f) of sub-section (2), the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees, or with both20explanation i—for the purposes of this section and section 70, "specified securities"includes employees' stock option or other securities as may be notified by the central government from time to timeexplanation ii—for the purposes of this section, "free reserves" includes securities premium account2569 (1) where a company purchases its own shares out of free reserves or securitiespremium account, a sum equal to the nominal value of the shares so purchased shall be transferred to the capital redemption reserve account and details of such transfer shall be disclosed in the balance sheettransfer of certain sums to capital redemption reserve account30(2) the capital redemption reserve account may be applied by the company, in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares70 (1) no company shall directly or indirectly purchase its own shares or other specified securities—(a) through any subsidiary company including its own subsidiary companies;prohibition for buy-back in certain circumstances35(b) through any investment company or group of investment companies; or40(c) if a default, is made by the company, in the repayment of deposits accepted either before or after the commencement of this act, interest payment thereon, redemption of debentures or preference shares or payment of dividend to any shareholder, or repayment of any term loan or interest payable thereon to any financial institution or banking company:provided that the buy-back is not prohibited, if the default is remedied and a period of three years has lapsed after such default ceased to subsist45(2) no company shall, directly or indirectly, purchase its own shares or other specified securities in case such company has not complied with the provisions of sections 92, 123, 127 and section 129debentures71 (1) a company may issue debentures with an option to convert such debentures into shares, either wholly or partly at the time of redemption:provided that the issue of debentures with an option to convert such debentures into shares, wholly or partly, shall be approved by a special resolution passed at a general meeting5(2) no company shall issue any debentures carrying any voting rights (3) secured debentures may be issued by a company subject to such terms and conditions as may be prescribed10(4) where debentures are issued by a company under this section, the company shall create a debenture redemption reserve account out of the profits of the company available for payment of dividend and the amount credited to such account shall not be utilised by the company except for the redemption of debentures15(5) no company shall issue a prospectus or make an offer or invitation to the public or to its members exceeding five hundred for the subscription of its debentures, unless the company has, before such issue or offer, appointed one or more debenture trustees and the conditions governing the appointment of such trustees shall be such as may be prescribed(6) a debenture trustee shall take steps to protect the interests of the debentureholders and redress their grievances in accordance with such rules as may be prescribed20(7) any provision contained in a trust deed for securing the issue of debentures, or in any contract with the debenture-holders secured by a trust deed, shall be void in so far as it would have the effect of exempting a trustee thereof from, or indemnifying him against, any liability for breach of trust, where he fails to show the degree of care and due diligence required of him as a trustee, having regard to the provisions of the trust deed conferring on him any power, authority or discretion:25provided that the liability of the debenture trustee shall be subject to such exemptions as may be agreed upon by a majority of debenture-holders holding not less than threefourths in value of the total debentures at a meeting held for the purpose(8) a company shall pay interest and redeem the debentures in accordance with the terms and conditions of their issue30(9) where at any time the debenture trustee comes to a conclusion that the assets of the company are insufficient or are likely to become insufficient to discharge the principal amount as and when it becomes due, the debenture trustee may file a petition before the tribunal and the tribunal may, after hearing the company and any other person interested in the matter, by order, impose such restrictions on the incurring of any further liabilities by the company as the tribunal may consider necessary in the interests of the debenture-holders35 40(10) where a company fails to redeem the debentures on the date of their maturity or fails to pay interest on the debentures when it is due, the tribunal may, on the application of any or all of the debenture-holders, or debenture trustee and, after hearing the parties concerned, direct, by order, the company to redeem the debentures forthwith on payment of principal and interest due thereon(11) if any default is made in complying with the order of the tribunal under this section, every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than two lakh rupees but which may extend to five lakh rupees, or with both45(12) a contract with the company to take up and pay for any debentures of the company may be enforced by a decree for specific performance50(13) the central government may prescribe the procedure, for securing the issue of debentures, the form of debenture trust deed, the procedure for the debenture-holders to inspect the trust deed and to obtain copies thereof, quantum of debenture redemption reserve required to be created and such other matterspower to nominate72 (1) every holder of securities of a company may, at any time, nominate, in the prescribed manner, any person to whom his securities shall vest in the event of his death5(2) where the securities of a company are held by more than one person jointly, the joint holders may together nominate, in the prescribed manner, any person to whom all the rights in the securities shall vest in the event of death of all the joint holders10(3) notwithstanding anything contained in any other law for the time being in force or in any disposition, whether testamentary or otherwise, in respect of the securities of a company, where a nomination made in the prescribed manner purports to confer on any person the right to vest the securities of the company, the nominee shall, on the death of the holder of securities or, as the case may be, on the death of the joint holders, become entitled to all the rights in the securities, of the holder or, as the case may be, of all the joint holders, in relation to such securities, to the exclusion of all other persons, unless the nomination is varied or cancelled in the prescribed manner15(4) where the nominee is a minor, it shall be lawful for the holder of the securities, making the nomination to appoint, in the prescribed manner, any person to become entitled to the securities of the company, in the event of the death of the nominee during his minority chapter v acceptance of deposits by companies2073 (1) on and after the commencement of this act, no company shall invite, accept or renew deposits under this act from the public except in a manner provided under this chapter:prohibition on acceptance of deposits from public2 of 193425provided that nothing in this sub-section shall apply to a banking company and nonbanking financial company as defined in the reserve bank of india act, 1934 and to such other company as the central government may, after consultation with the reserve bank of india, specify in this behalf30(2) a company may, subject to the passing of a resolution in general meeting and subject to such rules as may be prescribed in consultation with the reserve bank of india, accept deposits from its members on such terms and conditions, including the provision of security, if any, or for the repayment of such deposits with interest, as may be agreed upon between the company and its members, subject to the fulfilment of the following conditions, namely:—35(a) issuance of a circular to its members including therein a statement showing the financial position of the company, the credit rating obtained, the total number of depositors and the amount due towards deposits in respect of any previous deposits accepted by the company and such other particulars in such form and in such manner as may be prescribed;(b) filing a copy of the circular along with such statement with the registrar within thirty days before the date of issue of the circular;40(c) depositing such sum which shall not be less than fifteen per cent of the amount of its deposits maturing during a financial year and the financial year next following, and kept in a scheduled bank in a separate bank account to be called as deposit repayment reserve account;45(d) providing such deposit insurance in such manner and to such extent as may be prescribed;(e) certifying that the company has not committed any default in the repayment of deposits accepted either before or after the commencement of this act or payment of interest on such deposits; and(f) providing security, if any for the due repayment of the amount of deposit or the interest thereon including the creation of such charge on the property or assets of the company:5provided that in case where a company does not secure the deposits or secures such deposits partially, then, the deposits shall be termed as ''unsecured deposits'' and shall be so quoted in every circular, form, advertisement or in any document related to invitation or acceptance of deposits (3) every deposit accepted by a company under sub-section (2) shall be repaid with interest in accordance with the terms and conditions of the agreement referred to in that sub-section10 (4) where a company fails to repay the deposit or part thereof or any interest thereon under sub-section (3), the depositor concerned may apply to the tribunal for an order directing the company to pay the sum due or for any loss or damage incurred by him as a result of such non-payment and for such other orders as the tribunal may deem fit(5) the deposit repayment reserve account referred to in clause (c) of sub-section (2)shall not be used by the company for any purpose other than repayment of deposits1574 (1) where in respect of any deposit accepted by a company before the commencement of this act, the amount of such deposit or part thereof or any interest due thereon remains unpaid on such commencement or becomes due at any time thereafter, the company shall—20repayment of deposits, etc, accepted before commencement of this act25(a) file, within a period of three months from such commencement or from the date on which such payments, are due, with the registrar a statement of all the deposits accepted by the company and sums remaining unpaid on such amount with the interest payable thereon along with the arrangements made for such repayment, notwithstanding anything contained in any other law for the time being in force or under the terms and conditions subject to which the deposit was accepted or any scheme framed under any law; and(b) repay within one year from such commencement or from the date on which such payments are due, whichever is earlier30(2) the tribunal may on an application made by the company, after considering the financial condition of the company, the amount of deposit or part thereof and the interest payable thereon and such other matters, allow further time as considered reasonable to the company to repay the deposit35 40(3) if a company fails to repay the deposit or part thereof or any interest thereon within the time specified in sub-section (1) or such further time as may be allowed by the tribunal under sub-section (2), the company shall, in addition to the payment of the amount of deposit or part thereof and the interest due, be punishable with fine which shall not be less than one crore rupees but which may extend to ten crore rupees and every officer of the company who is in default shall be punishable with imprisonment which may extend to seven years or with fine which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees, or with bothdamages for fraud4575 (1) where a company fails to repay the deposit or part thereof or any interest thereon referred to in section 74 within the time specified in sub-section (1) of that section or such further time as may be allowed by the tribunal under sub-section (2) of that section, and it is proved that the deposits had been accepted with intent to defraud the depositors or for any fraudulent purpose, every officer of the company who was responsible for the acceptance of such deposit shall, without prejudice to the provisions contained in subsection (3) of that section and liability under section 447, be personally responsible, without any limitation of liability, for all or any of the losses or damages that may have been incurred by the depositors50(2) any suit, proceedings or other action may be taken by any person, group of persons or any association of persons who had incurred any loss as a result of the failure of the company to repay the deposits or part thereof or any interest thereonacceptance of deposits from public by certain companies76 (1) notwithstanding anything contained in section 73, a public company, having such net worth or turnover as may be prescribed, may accept deposits from persons other than its members subject to compliance with the requirements provided in sub-section (2) of section 73 and subject to such rules as the central government may, in consultation with the reserve bank of india, prescribe:5provided that such a company shall be required to obtain the rating (including its networth, liquidity and ability to pay its deposits on due date) from a recognised credit rating agency for informing the public the rating given to the company at the time of invitation of deposits from the public which ensures adequate safety and the rating shall be obtained for every year during the tenure of deposits:10provided further that every company accepting secured deposits from the public shall within thirty days of such acceptance, create a charge on its assets of an amount not less than the amount of deposits accepted in favour of the deposit holders in accordance with such rules as may be prescribed15(2) the provisions of this chapter shall, mutatis mutandis, apply to the acceptance of deposits from public under this section chapter vi registration of charges20duty to register charges, etc77 (1) it shall be the duty of every company creating a charge within or outside india, on its property or assets or any of its undertakings, whether tangible or otherwise, and situated in or outside india, to register the particulars of the charge signed by the company and the charge-holder together with the instruments, if any, creating such charge in such form, on payment of such fees and in such manner as may be prescribed, with the registrar within thirty days of its creation:25provided that the registrar may, on an application by the company, allow such registration to be made within a period of three hundred days of such creation on payment of such additional fees as may be prescribed:provided further that if registration is not made within a period of three hundred days of such creation, the company shall seek extension of time in accordance with section 87:30provided also that any subsequent registration of a charge shall not prejudice any right acquired in respect of any property before the charge is actually registered(2) where a charge is registered with the registrar under sub-section (1), he shall issue a certificate of registration of such charge in such form and in such manner as may be prescribed to the company and, as the case may be, to the person in whose favour the charge is created35(3) notwithstanding anything contained in any other law for the time being in force, no charge created by a company shall be taken into account by the liquidator or any other creditor unless it is duly registered under sub-section (1) and a certificate of registration of such charge is given by the registrar under sub-section (2)40(4) nothing in sub-section (3) shall prejudice any contract or obligation for the repayment of the money secured by a charge4578 where a company fails to register the charge within the period specified in section77, without prejudice to its liability in respect of any offence under this chapter, the person in whose favour the charge is created may apply to the registrar for registration of the charge along with the instrument created for the charge, in such form and manner as may be prescribed and the registrar may, on such application, within a period of fourteen days after giving notice to the company, unless the company itself registers the charge or shows sufficient cause why such charge should not be registered, allow such registration on payment of such fees, as may be prescribed: provided that where registration is effected on application of the person in whose favour the charge is created, that person shall be entitled to recover from the company the50amount of any fees or additional fees paid by him to the registrar for the purpose of registration of charge79 the provisions of section 77 relating to registration of charges shall, so far as may be, apply to—section 77 to apply in certain matters5(a) a company acquiring any property subject to a charge within the meaning ofthat section; or(b) any modification in the terms or conditions or the extent or operation of any charge registered under that section10date of notice of charge80 where any charge on any property or assets of a company or any of its undertakings is registered under section 77, any person acquiring such property, assets, undertakings or part thereof or any share or interest therein shall be deemed to have notice of the charge from the date of such registration81 (1) the registrar shall, in respect of every company, keep a register containing particulars of the charges registered under this chapter in such form and in such manner as may be prescribed15register of charges to be kept by registrar(2) a register kept in pursuance of this section shall be open to inspection by any person on payment of such fees as may be prescribed for each inspection20company to report satisfaction of charge82 (1) a company shall give intimation to the registrar in the prescribed form, of the payment or satisfaction in full of any charge registered under this chapter within a period of thirty days from the date of such payment or satisfaction and the provisions of sub-section (1) of section 77 shall, as far as may be, apply to an intimation given under this section25(2) the registrar shall, on receipt of intimation under sub-section (1), cause a notice to be sent to the holder of the charge calling upon him to show cause within such time not exceeding fourteen days, as may be specified in such notice, as to why payment or satisfaction in full should not be recorded as intimated to the registrar, and if no cause is shown, by such holder of the charge, the registrar shall order that a memorandum of satisfaction shall be entered in the register of charges kept by him under section 81 and shall inform the company that he has done so:30provided that the notice referred to in this sub-section shall not be required to be sent, in case the intimation to the registrar in this regard is in the specified form and signed by the holder of charge(3) if any cause is shown, the registrar shall record a note to that effect in the register of charges and shall inform the company35(4) nothing in this section shall be deemed to affect the powers of the registrar to make an entry in the register of charges under section 83 or otherwise than on receipt of an intimation from the company83 (1) the registrar may, on evidence being given to his satisfaction with respect to any registered charge,—40(a) that the debt for which the charge was given has been paid or satisfied in whole or in part; or(b) that part of the property or undertaking charged has been released from the charge or has ceased to form part of the company's property or undertaking, power of registrar to make entries of satisfaction and release in absence of intimation from company45enter in the register of charges a memorandum of satisfaction in whole or in part, or of the fact that part of the property or undertaking has been released from the charge or has ceased to form part of the company's property or undertaking, as the case may be, notwithstanding the fact that no intimation has been received by him from the company(2) the registrar shall inform the affected parties within thirty days of making the entry in the register of charges kept under sub-section (1) of section 81intimation of appointment of receiver or manager584 (1) if any person obtains an order for the appointment of a receiver of, or of a person to manage, the property, subject to a charge, of a company or if any person appoints such receiver or person under any power contained in any instrument, he shall, within a period of thirty days from the date of the passing of the order or of the making of the appointment, give notice of such appointment to the company and the registrar along with a copy of the order or instrument and the registrar shall, on payment of the prescribed fees, register particulars of the receiver, person or instrument in the register of charges(2) any person appointed under sub-section (1) shall, on ceasing to hold such appointment, give to the company and the registrar a notice to that effect and the registrar shall register such notice10company's register of charges85 (1) every company shall keep at its registered office a register of charges in such form and in such manner as may be prescribed, which shall include therein all charges and floating charges affecting any property or assets of the company or any of its undertakings, indicating in each case such particulars as may be prescribed:15provided that a copy of the instrument creating the charge shall also be kept at the registered office of the company along with the register of charges(2) the register of charges and instrument of charges, kept under sub-section (1) shall be open for inspection during business hours—(a) by any member or creditor without any payment of fees; or (b) by any other person on payment of such fees as may be prescribed,20subject to such reasonable restrictions as the company may, by its articles, imposepunishment for contravention2586 if any company contravenes any provision of this chapter, the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to ten lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with both87 (1) the central government on being satisfied that—rectification by central government in register of charges30(i) (a) the omission to file with the registrar the particulars of any charge created by a company or any charge subject to which any property has been acquired by a company or any modification of such charge; or(b) the omission to register any charge within the time required under this chapter or the omission to give intimation to the registrar of the payment or the satisfaction of a charge, within the time required under this chapter; or35(c) the omission or mis-statement of any particular with respect to any such charge or modification or with respect to any memorandum of satisfaction or other entry made in pursuance of section 82 or section 83, was accidental or due to inadvertence or some other sufficient cause or it is not of a nature to prejudice the position of creditors or shareholders of the company; or(ii) on any other grounds, it is just and equitable to grant relief, for the filing of the particulars or for the registration of the charge or for the giving of intimation of payment or satisfaction shall be extended or, as the case may require, that the omission or mis-statement shall be rectified5(2) where the central government extends the time for the registration of a charge, the order shall not prejudice any rights acquired in respect of the property concerned before the charge is actually registered chapter vii management and administrationregister of members, etc88 (1) every company shall keep and maintain the following registers in such form and in such manner as may be prescribed, namely:—10(a) register of members indicating separately for each class of equity and preference shares held by each member residing in or outside india;(b) register of debenture-holders; and (c) register of any other security holders15(2) every register maintained under sub-section (1) shall include an index of the names included therein22 of 1996(3) the register and index of beneficial owners maintained by a depository under section 11 of the depositories act, 1996, shall be deemed to be the corresponding register and index for the purposes of this act20(4) a company may, if so authorised by its articles, keep in any country outside india, in such manner as may be prescribed, a part of the register referred to in sub-section (1), called "foreign register" containing the names and particulars of the members, debentureholders, other security holders or beneficial owners residing outside india25 30(5) if a company does not maintain a register of members or debenture-holders or other security holders or fails to maintain them in accordance with the provisions of sub-section (1) or sub-section (2), the company and every officer of the company who is in default shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees and where the failure is a continuing one, with a further fine which may extend to one thousand rupees for every day, after the first during which the failure continuesdeclaration in respect of beneficial interest in any share3589 (1) where the name of a person is entered in the register of members of a company as the holder of shares in that company but who does not hold the beneficial interest in such shares, such person shall make a declaration within such time and in such form as may be prescribed to the company specifying the name and other particulars of the person who holds the beneficial interest in such shares(2) every person who holds or acquires a beneficial interest in share of a company shall make a declaration to the company specifying the nature of his interest, particulars of the person in whose name the shares stand registered in the books of the company and such other particulars as may be prescribed40(3) where any change occurs in the beneficial interest in such shares, the person referred to in sub-section (1) and the beneficial owner specified in sub-section (2) shall, within a period of thirty days from the date of such change, make a declaration to the company in such form and containing such particulars as may be prescribed45(4) the central government may make rules to provide for the manner of holding and disclosing beneficial interest and beneficial ownership under this section5(5) if any person fails, to make a declaration as required under sub-section (1) or sub-section (2) or sub-section (3), without any reasonable cause, he shall be punishable with fine which may extend to fifty thousand rupees and where the failure is a continuing one, with a further fine which may extend to one thousand rupees for every day after the first during which the failure continues10(6) where any declaration under this section is made to a company, the company shall make a note of such declaration in the register concerned and shall file, within thirty days from the date of receipt of declaration by it, a return in the prescribed form with the registrar in respect of such declaration with such fees or additional fees as may be prescribed, within the time specified under section 40315(7) if a company, required to file a return under sub-section (6), fails to do so before the expiry of the time specified under the first proviso to sub-section (1) of section 403, the company and every officer of the company who is in default shall be punishable with fine which shall not be less than five hundred rupees but which may extend to one thousand rupees and where the failure is a continuing one, with a further fine which may extend to one thousand rupees for every day after the first during which the failure continues(8) no right in relation to any share in respect of which a declaration is required to be made under this section but not made by the beneficial owner, shall be enforceable by him or by any person claiming through him20(9) nothing in this section shall be deemed to prejudice the obligation of a company to pay dividend to its members under this act and the said obligation shall, on such payment, stand discharged25investigation of beneficial ownership of shares in certain cases90 where it appears to the central government that there are reasons so to do, it may appoint one or more competent persons to investigate and report as to beneficial ownership with regard to any share or class of shares and the provisions of section 216 shall, as far as may be, apply to such investigation as if it were an investigation ordered under that section3091 (1) a company may close the register of members or the register of denentureholders or the register of other security holders for any period or periods not exceeding in the aggregate forty-five days in each year, but not exceeding thirty days at any one time, subject to giving of previous notice of at least seven days or such lesser period as may be specified by securities and exchange board for listed companies or the companies which intend to get their securities listed, in such manner as may be prescribedpower to close register of members or debentureholders or other security holders35(2) if the register of members or of debenture-holders or of other security holders is closed without giving the notice as provided in sub-section (1), or after giving shorter notice than that so provided, or for a continuous or an aggregate period in excess of the limits specified in that sub-section, the company and every officer of the company who is in default shall be liable to a penalty of five thousand rupees for every day subject to a maximum of one lakh rupees during which the register is kept closed40annual return92 (1) every company shall prepare a return (hereinafter referred to as the annualreturn) in the prescribed form containing the particulars as they stood on the close of the financial year regarding—(a) its registered office, principal business activities, particulars of its holding,subsidiary and associate companies;45(b) its shares, debentures and other securities and shareholding pattern; (c) its indebtedness;(d) its members and debenture-holders along with changes therein since theclose of the previous financial year;(e) its promoters, directors, key managerial personnel along with changes therein since the close of the previous financial year;(f) meetings of members or a class thereof, board and its various committeesalong with attendance details;(g) remuneration of directors and key managerial personnel;5(h) penalty or punishment imposed on the company, its directors or officers anddetails of compounding of offences and appeals made against such penalty or punishment;10(i) matters relating to certification of compliances, disclosures as may be prescribed;(j) details, as may be prescribed, in respect of shares held by or on behalf of the foreign institutional investors indicating their names, addresses, countries of incorporation, registration and percentage of shareholding held by them; and(k) such other matters as may be prescribed,15and signed by a director and the company secretary, or where there is no company secretary, by a company secretary in practice:provided that in relation to one person company and small company, the annual return shall be signed by the company secretary, or where there is no company secretary, by the director of the company20(2) the annual return, filed by a listed company or, by a company having such paid-up capital and turnover as may be prescribed, shall be certified by a company secretary in practice in the prescribed form, stating that the annual return discloses the facts correctly and adequately and that the company has complied with all the provisions of this act25(3) an extract of the annual return in such form as may be prescribed shall form part of the board's report30(4) every company shall file with the registrar a copy of the annual return, within thirty days from the date on which the annual general meeting is held or where no annual general meeting is held in any year within thirty days from the date on which the annual general meeting should have been held together with the statement specifying the reasons for not holding the annual general meeting, with such fees or additional fees as may be prescribed, within the time as specified, under section 40335(5) if a company fails to file its annual return under sub-section (4), before the expiry of the period specified under section 403 with additional fee, the company shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakhs rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both(6) if a company secretary in practice certifies the annual return otherwise than in conformity with the requirements of this section or the rules made thereunder, he shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees93 every listed company shall file a return in the prescribed form with the registrar with respect to change in the number of shares held by promoters and top ten shareholders of such company, within fifteen days of such changereturn to be filed with registrar in case promoters' stake changes94 (1) the registers required to be kept and maintained by a company under section88 and copies of the annual return filed under section 92 shall be kept at the registered office of the company:place of keeping and inspection of registers, returns, etc5provided that such registers or copies of return may also be kept at any other place in india in which more than one-tenth of the total number of members entered in the register of members reside, if approved by a special resolution passed at a general meeting of the company and the registrar has been given a copy of the proposed special resolution in advance:10provided further that the period for which the registers, returns and records are required to be kept shall be such as may be prescribed(2) the registers and their indices, except when they are closed under the provisions of this act, and the copies of all the returns shall be open for inspection by any member, debenture-holder, other security holder or beneficial owner, during business hours without payment of any fees and by any other person on payment of such fees as may be prescribed15(3) any such member, debenture-holder, other security holder or beneficial owner or any other person may—(a) take extracts from any register, or index or return without payment of any fee; or (b) require a copy of any such register or entries therein or return on payment of such fees as may be prescribed20(4) if any inspection or the making of any extract or copy required under this section is refused, the company and every officer of the company who is in default shall be liable, for each such default, to a penalty of one thousand rupees for every day subject to a maximum of one lakh rupees during which the refusal or default continues25(5) the central government may also, by order, direct an immediate inspection of the document, or direct that the extract required shall forthwith be allowed to be taken by the person requiring itregisters, etc, to be evidence95 the registers, their indices and copies of annual returns maintained under sections88 and 94 shall be prima facie evidence of any matter directed or authorised to be inserted therein by or under this act30annual general meeting96 (1) every company other than a one person company shall in each year hold inaddition to any other meetings, a general meeting as its annual general meeting and shall specify the meeting as such in the notices calling it, and not more than fifteen months shall elapse between the date of one annual general meeting of a company and that of the next:35provided that in case of the first annual general meeting, it shall be held within a periodof nine months from the date of closing of the first financial year of the company and in any other case, within a period of six months, from the date of closing of the financial year:provided further that if a company holds its first annual general meeting as aforesaid, it shall not be necessary for the company to hold any annual general meeting in the year of its incorporation:40provided also that the registrar may, for any special reason, extend the time withinwhich any annual general meeting, other than the first annual general meeting, shall be held, by a period not exceeding three months45(2) every annual general meeting shall be called during business hours, that is, between9 am and 6 pm on any day that is not a national holiday and shall be held either at the registered office of the company or at some other place within the city, town or village in which the registered office of the company is situate:provided that the central government may exempt any company from the provisions of this sub-section subject to such conditions as it may imposeexplanation—for the purposes of this sub-section, "national holiday" means and includes a day declared as national holiday by the central government5power of tribunal to call annual general meeting97 (1) if any default is made in holding the annual general meeting of a company undersection 96, the tribunal may, notwithstanding anything contained in this act or the articles of the company, on the application of any member of the company, call, or direct the calling of, an annual general meeting of the company and give such ancillary or consequential directions as the tribunal thinks expedient:10provided that such directions may include a direction that one member of the companypresent in person or by proxy shall be deemed to constitute a meeting(2) a general meeting held in pursuance of sub-section (1) shall, subject to any directions of the tribunal, be deemed to be an annual general meeting of the company under this act15power of tribunal to call meetings of members, etc98 (1) if for any reason it is impracticable to call a meeting of a company, other than an annual general meeting, in any manner in which meetings of the company may be called, or to hold or conduct the meeting of the company in the manner prescribed by this act or the articles of the company, the tribunal may, either suo motu or on the application of any director or member of the company who would be entitled to vote at the meeting,—20(a) order a meeting of the company to be called, held and conducted in suchmanner as the tribunal thinks fit; and(b) give such ancillary or consequential directions as the tribunal thinks expedient, including directions modifying or supplementing in relation to the calling, holding and conducting of the meeting, the operation of the provisions of this act or articles of the company:25provided that such directions may include a direction that one member of the company present in person or by proxy shall be deemed to constitute a meeting(2) any meeting called, held and conducted in accordance with any order made under sub-section (1) shall, for all purposes, be deemed to be a meeting of the company duly called, held and conducted30 35punishment for default in complying with provisions of sections 96 to 9899 if any default is made in holding a meeting of the company in accordance with section 96 or section 97 or section 98 or in complying with any directions of the tribunal, the company and every officer of the company who is in default shall be punishable with fine which may extend to one lakh rupees and in the case of a continuing default, with a further fine which may extend to five thousand rupees for every day during which such default continues100 (1) the board may, whenever it deems fit, call an extraordinary general meeting of the companycalling of extraordinary general meeting(2) the board shall, at the requisition made by,—40(a) in the case of a company having a share capital, such number of members who hold, on the date of the receipt of the requisition, not less than one-tenth of such of the paid-up share capital of the company as on that date carries the right of voting;(b) in the case of a company not having a share capital, such number of members who have, on the date of receipt of the requisition, not less than one-tenth of the total voting power of all the members having on the said date a right to vote,45call an extraordinary general meeting of the company within the period specified in subsection (4)(3) the requisition made under sub-section (2) shall set out the matters for the consideration of which the meeting is to be called and shall be signed by the requisitionists and sent to the registered office of the company5(4) if the board does not, within twenty-one days from the date of receipt of a valid requisition in regard to any matter, proceed to call a meeting for the consideration of that matter on a day not later than forty-five days from the date of receipt of such requisition, the meeting may be called and held by the requisitonists themselves within a period of three months from the date of the requisition(5) a meeting under sub-section (4) by the requisitionists shall be called and held in the same manner in which the meeting is called and held by the board10(6) any reasonable expenses incurred by the requisitionists in calling a meeting under sub-section (4) shall be reimbursed to the requisitionists by the company and the sums so paid shall be deducted from any fee or other remuneration under section 197 payable to such of the directors who were in default in calling the meeting15notice of meeting101 (1) a general meeting of a company may be called by giving not less than clear twenty-one days' notice either in writing or through electronic mode in such manner as may be prescribed:provided that a general meeting may be called after giving a shorter notice if consent is given in writing or by electronic mode by not less than ninety-five per cent of the members entitled to vote at such meeting20(2) every notice of a meeting shall specify the place, date, day and the hour of the meeting and shall contain a statement of the business to be transacted at such meeting(3) the notice of every meeting of the company shall be given to—(a) every member of the company, legal representative of any deceased member or the assignee of an insolvent member;25(b) the auditor or auditors of the company; and (c) every director of the company(4) any accidental omission to give notice to, or the non-receipt of such notice by, any member or other person who is entitled to such notice for any meeting shall not invalidate the proceedings of the meeting30statement to be annexed to notice102 (1) a statement setting out the following material facts concerning each item of special business to be transacted at a general meeting, shall be annexed to the notice calling such meeting, namely:—35(a) the nature of concern or interest, financial or otherwise, if any, in respect of each items of—(i) every director and the manager, if any;(ii) every other key managerial personnel; and (iii) relatives of the persons mentioned in sub-clauses (i) and (ii);40(b) any other information and facts that may enable members to understand the meaning, scope and implications of the items of business and to take decision thereon (2) for the purposes of sub-section (1),—45(a) in the case of an annual general meeting, all business to be transacted thereat shall be deemed special, other than—(i) the consideration of financial statements and the reports of the board of directors and auditors;(ii) the declaration of any dividend; (iii) the appointment of directors in place of those retiring; (iv) the appointment of, and the fixing of the remuneration of, the auditors;and(b) in the case of any other meeting, all business shall be deemed to be special:5provided that where any item of special business to be transacted at a meeting of the company relates to or affects any other company, the extent of shareholding interest in that other company of every promoter, director, manager, if any, and of every other key managerial personnel of the first mentioned company shall, if the extent of such shareholding is not less than two per cent of the paid-up share capital of that company, also be set out in the statement(3) where any item of business refers to any document, which is to be considered at the meeting, the time and place where such document can be inspected shall be specified in the statement under sub-section (1)10 15(4) where as a result of the non-disclosure or insufficient disclosure in any statement referred to in sub-section (1), being made by a promoter, director, manager, if any, or other key managerial personnel, any benefit which accrues to such promoter, director, manager or other key managerial personnel or their relatives, either directly or indirectly, the promoter, director, manager or other key managerial personnel, as the case may be, shall hold such benefit in trust for the company, and shall, without prejudice to any other action being taken against him under this act or under any other law for the time being in force, be liable to compensate the company to the extent of the benefit received by him20(5) if any default is made in complying with the provisions of this section, every promoter, director, manager or other key managerial personnel who is in default shall be punishable with fine which may extend to fifty thousand rupees or five times the amount of benefit accruing to the promoter, director, manager or other key managerial personnel or any of his relatives, whichever is more103 (1) unless the articles of the company provide for a larger number,—quorum for meetings(a) in case of a public company,—25(i) five members personally present if the number of members as on thedate of meeting is not more than one thousand;(ii) fifteen members personally present if the number of members as on thedate of meeting is more than one thousand but up to five thousand;30(iii) thirty members personally present if the number of members as on thedate of the meeting exceeds five thousand;(b) in the case of a private company, two members personally present, shall be the quorum for a meeting of the company (2) if the quorum is not present within half-an-hour from the time appointed for holding a meeting of the company—35(a) the meeting shall stand adjourned to the same day in the next week at the same time and place, or to such other date and such other time and place as the board may determine; or(b) the meeting, if called by requisitionists under section 100, shall stand cancelled:40provided that in case of an adjourned meeting or of a change of day, time or place of meeting under clause (a), the company shall give not less than three days notice to the members either individually or by publishing an advertisement in the newspapers (one in english and one in vernacular language) which is in circulation at the place where the registered office of the company is situated45(3) if at the adjourned meeting also, a quorum is not present within half-an-hour from the time appointed for holding meeting, the members present shall be the quorumchairman of meetings104 (1) unless the articles of the company otherwise provide, the members personally present at the meeting shall elect one of themselves to be the chairman thereof on a show of hands50(2) if a poll is demanded on the election of the chairman, it shall be taken forthwith in accordance with the provisions of this act and the chairman elected on a show of hands under sub-section (1) shall continue to be the chairman of the meeting until some other person is elected as chairman as a result of the poll, and such other person shall be the chairman for the rest of the meetingproxies105 (1) any member of a company entitled to attend and vote at a meeting of the company shall be entitled to appoint another person as a proxy to attend and vote at the meeting on his behalf:5provided that a proxy shall not have the right to speak at such meeting and shall not be entitled to vote except on a poll:provided further that, unless the articles of a company otherwise provide, this subsection shall not apply in the case of a company not having a share capital:provided also that the central government may prescribe a class or classes of companies whose members shall not be entitled to appoint another person as a proxy:10provided also that a person appointed as proxy shall act on behalf of such member ornumber of members not exceeding fifty and such number of shares as may be prescribed15(2) in every notice calling a meeting of a company which has a share capital, or the articles of which provide for voting by proxy at the meeting, there shall appear with reasonable prominence a statement that a member entitled to attend and vote is entitled to appoint a proxy, or, where that is allowed, one or more proxies, to attend and vote instead of himself, and that a proxy need not be a member(3) if default is made in complying with sub-section (2), every officer of the company who is in default shall be punishable with fine which may extend to five thousand rupees20(4) any provision contained in the articles of a company which specifies or requires a longer period than forty-eight hours before a meeting of the company, for depositing with the company or any other person any instrument appointing a proxy or any other document necessary to show the validity or otherwise relating to the appointment of a proxy in order that the appointment may be effective at such meeting, shall have effect as if a period of forty-eight hours had been specified in or required by such provision for such deposit25(5) if for the purpose of any meeting of a company, invitations to appoint as proxy aperson or one of a number of persons specified in the invitations are issued at the company's expense to any member entitled to have a notice of the meeting sent to him and to vote thereat by proxy, every officer of the company who knowingly issues the invitations as aforesaid or wilfully authorises or permits their issue shall be punishable with fine which may extend to one lakh rupees:30provided that an officer shall not be punishable under this sub-section by reason only of the issue to a member at his request in writing of a form of appointment naming the proxy, or of a list of persons willing to act as proxies, if the form or list is available on request in writing to every member entitled to vote at the meeting by proxy35(6) the instrument appointing a proxy shall—(a) be in writing; and (b) be signed by the appointer or his attorney duly authorised in writing or, if theappointer is a body corporate, be under its seal or be signed by an officer or an attorney duly authorised by it40(7) an instrument appointing a proxy, if in the form as may be prescribed, shall not bequestioned on the ground that it fails to comply with any special requirements specified for such instrument by the articles of a company45(8) every member entitled to vote at a meeting of the company, or on any resolution tobe moved thereat, shall be entitled during the period beginning twenty-four hours before the time fixed for the commencement of the meeting and ending with the conclusion of the meeting, to inspect the proxies lodged, at any time during the business hours of the company, provided not less than three days' notice in writing of the intention so to inspect is given to the companyrestriction on voting rights106 (1) notwithstanding anything contained in this act, the articles of a companymay provide that no member shall exercise any voting right in respect of any shares registered in his name on which any calls or other sums presently payable by him have not been paid, or in regard to which the company has exercised any right of lien5(2) a company shall not, except on the grounds specified in sub-section (1), prohibit any member from exercising his voting right on any other ground(3) on a poll taken at a meeting of a company, a member entitled to more than one vote, or his proxy, where allowed, or other person entitled to vote for him, as the case may be, need not, if he votes, use all his votes or cast in the same way all the votes he uses10voting by show of hands107 (1) at any general meeting, a resolution put to the vote of the meeting shall,unless a poll is demanded under section 109 or the voting is carried out electronically, be decided on a show of hands15(2) a declaration by the chairman of the meeting of the passing of a resolution or otherwise by show of hands under sub-section (1) and an entry to that effect in the books containing the minutes of the meeting of the company shall be conclusive evidence of the fact of passing of such resolution or otherwise108 the central government may prescribe the class or classes of companies and manner in which a member may exercise his right to vote by the electronic meansvoting through electronic means demand for poll20109 (1) before or on the declaration of the result of the voting on any resolution onshow of hands, a poll may be ordered to be taken by the chairman of the meeting on his own motion, and shall be ordered to be taken by him on a demand made in that behalf,—25(a) in the case a company having a share capital, by the members present inperson or by proxy, where allowed, and having not less than one-tenth of the total voting power or holding shares on which an aggregate sum of not less than five lakh rupees or such higher amount as may be prescribed has been paid-up; and(b) in the case of any other company, by any member or members present inperson or by proxy, where allowed, and having not less than one-tenth of the total voting power30(2) the demand for a poll may be withdrawn at any time by the persons who made thedemand(3) a poll demanded for adjournment of the meeting or appointment of chairman of the meeting shall be taken forthwith35(4) a poll demanded on any question other than adjournment of the meeting or appointment of chairman shall be taken at such time, not being later than forty-eight hours from the time when the demand was made, as the chairman of the meeting may direct(5) where a poll is to be taken, the chairman of the meeting shall appoint such number of persons, as he deems necessary, to scrutinise the poll process and votes given on the poll and to report thereon to him in the manner as may be prescribed(6) subject to the provisions of this section, the chairman of the meeting shall have power to regulate the manner in which the poll shall be taken40(7) the result of the poll shall be deemed to be the decision of the meeting on the resolution on which the poll was takenpostal ballot110 (1) notwithstanding anything contained in this act, a company—45(a) shall, in respect of such items of business as the central government may, bynotification, declare to be transacted only by means of postal ballot; and(b) may, in respect of any item of business, other than ordinary business and any business in respect of which directors or auditors have a right to be heard at any meeting, transact by means of postal ballot,5in such manner as may be prescribed, instead of transacting such business at a general meeting(2) if a resolution is assented to by the requisite majority of the shareholders by means of postal ballot, it shall be deemed to have been duly passed at a general meeting convened in that behalf111 (1) a company shall, on requisition in writing of such number of members, as required in section 100,—10circulation of members' resolution(a) give notice to members of any resolution which may properly be moved and is intended to be moved at a meeting; and(b) circulate to members any statement with respect to the matters referred to in proposed resolution or business to be dealt with at that meeting15(2) a company shall not be bound under this section to give notice of any resolution or to circulate any statement unless—(a) a copy of the requisition signed by the requisitionists (or two or more copies which, between them, contain the signatures of all the requisitionists) is deposited at the registered office of the company,—20(i) in the case of a requisition requiring notice of a resolution, not less thansix weeks before the meeting;(ii) in the case of any other requisition, not less than two weeks before themeeting; and25(b) there is deposited or tendered with the requisition, a sum reasonably sufficient to meet the company's expenses in giving effect thereto:30provided that if, after a copy of a requisition requiring notice of a resolution has been deposited at the registered office of the company, an annual general meeting is called on a date within six weeks after the copy has been deposited, the copy, although not deposited within the time required by this sub-section, shall be deemed to have been properly deposited for the purposes thereof(3) the company shall not be bound to circulate any statement as required by clause(b) of sub-section (1), if on the application either of the company or of any other person who claims to be aggrieved, the central government, by order, declares that the rights conferred by this section are being abused to secure needless publicity for defamatory matter35(4) an order made under sub-section (3) may also direct that the cost incurred by the company by virtue of this section shall be paid to the company by the requisitionists, notwithstanding that they are not parties to the application40(5) if any default is made in complying with the provisions of this section, the companyand every officer of the company who is in default shall be liable to a penalty of twenty-five thousand rupees112 (1) the president of india or the governor of a state, if he is a member of a company, may appoint such person as he thinks fit to act as his representative at any meeting of the company or at any meeting of any class of members of the companyrepresentation of president and governors in meetings45(2) a person appointed to act under sub-section (1) shall, for the purposes of this act,be deemed to be a member of such a company and shall be entitled to exercise the same rights and powers, including the right to vote by proxy and postal ballot, as the president or, as the case may be, the governor could exercise as a member of the company113 (1) a body corporate, whether a company within the meaning of this act or not, may, —representation of corporations at meeting of companies and of creditors5(a) if it is a member of a company within the meaning of this act, by resolution ofits board of directors or other governing body, authorise such person as it thinks fit to act as its representative at any meeting of the company, or at any meeting of any class of members of the company;10(b) if it is a creditor, including a holder of debentures, of a company within the meaning of this act, by resolution of its directors or other governing body, authorise such person as it thinks fit to act as its representative at any meeting of any creditors of the company held in pursuance of this act or of any rules made thereunder, or in pursuance of the provisions contained in any debenture or trust deed, as the case may be (2) a person authorised by resolution under sub-section (1) shall be entitled to exercise the same rights and powers, including the right to vote by proxy and by postal ballot, on behalf of the body corporate which he represents as that body could exercise if it were an individual member, creditor or holder of debentures of the company15ordinary and special resolutions20114 (1) a resolution shall be an ordinary resolution if the notice required under this act has been duly given and it is required to be passed by the votes cast, whether on a show of hands, or electronically or on a poll, as the case may be, in favour of the resolution, including the casting vote, if any, of the chairman, by members who, being entitled so to do, vote in person, or where proxies are allowed, by proxy or by postal ballot, exceed the votes, if any, cast against the resolution by members, so entitled and voting(2) a resolution shall be a special resolution when—(a) the intention to propose the resolution as a special resolution has been duly specified in the notice calling the general meeting or other intimation given to the members of the resolution;25(b) the notice required under this act has been duly given; and30(c) the votes cast in favour of the resolution, whether on a show of hands, or electronically or on a poll, as the case may be, by members who, being entitled so to do, vote in person or by proxy or by postal ballot, are required to be not less than three times the number of the votes, if any, cast against the resolution by members so entitled and votingresolutions requiring special notice35115 where, by any provision contained in this act or in the articles of a company, special notice is required of any resolution, notice of the intention to move such resolution shall be given to the company by such number of members holding not less than one per cent of total voting power or holding shares on which an aggregate sum of not less than one lakh rupees has been paid-up and the company shall give its members notice of the resolution in such manner as may be prescribed116 where a resolution is passed at an adjourned meeting of—| ( | a | ) a company; or ||-------------|-----|-------------------------------------------------------|| resolutions | | || passed at | | || adjourned | | || meeting | | || ( | b | ) the holders of any class of shares in a company; or || 40 | | || ( | c | ) the board of directors of a company, |the resolution shall, for all purposes, be treated as having been passed on the date on which it was in fact passed, and shall not be deemed to have been passed on any earlier date45resolutions and agreements to be filed117 (1) a copy of every resolution or any agreement, in respect of matters specified insub-section (3) together with the explanatory statement under section 102, if any, annexed tothe notice calling the meeting in which the resolution is proposed, shall be filed with the registrar within thirty days of the passing or making thereof in such manner and with such fees as may be prescribed within the time specified under section 403:50provided that the copy of every resolution which has the effect of altering the articles and the copy of every agreement referred to in sub-section (3) shall be embodied in or510 15 20 25 30 35minutes of proceedings of general meeting, meeting of board of directors and other meeting and resolutions passed by postal ballotannexed to every copy of the articles issued after passing of the resolution or making of the agreement(2) if a company fails to file the resolution or the agreement under sub-section (1)before the expiry of the period specified under section 403 with additional fee, the company shall be punishable with fine which shall not be less than five lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default, including liquidator of the company, if any, shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees, or with both(3) the provisions of this section shall apply to—(a) special resolutions; (b) resolutions which have been agreed to by all the members of a company, but which, if not so agreed to, would not have been effective for their purpose unless they had been passed as special resolutions;(c) any resolution of the board of directors of a company or agreement executed by a company, relating to the appointment, re-appointment or renewal of the appointment, or variation of the terms of appointment, of a managing director;(d) resolutions or agreements which have been agreed to by any class of members but which, if not so agreed to, would not have been effective for their purpose unless they had been passed by a specified majority or otherwise in some particular manner; and all resolutions or agreements which effectively bind such class of members though not agreed to by all those members;(e) resolutions passed by a company according consent to the exercise by its board of directors of any of the powers under clause (a) and clause (c) of sub-section (1) of section 180; (f) resolutions requiring a company to be wound up voluntarily passed in pursuance of section 304;(g) resolutions passed in pursuance of sub-section (3) of section 179; and(h) any other resolution or agreement as may be prescribed and placed in the public domain 118 (1) every company shall cause minutes of the proceedings of every general meeting of any class of shareholders or creditors, and every resolution passed by postal ballot and every meeting of its board of directors or of every committee of the board, to be prepared and signed in such manner as may be prescribed and kept within thirty days of the conclusion of every such meeting concerned, or passing of resolution by postal ballot in books kept for that purpose with their pages consecutively numbered(2) the minutes of each meeting shall contain a fair and correct summary of the proceedings thereat(3) all appointments made at any of the meetings aforesaid shall be included in the minutes of the meeting40(4) in the case of a meeting of the board of directors or of a committee of the board, the minutes shall also contain—(a) the names of the directors present at the meeting; and45(b) in the case of each resolution passed at the meeting, the names of the directors, if any, dissenting from, or not concurring with the resolution (5) there shall not be included in the minutes, any matter which, in the opinion of the chairman of the meeting,—(a) is or could reasonably be regarded as defamatory of any person; or (b) is irrelevant or immaterial to the proceedings; or(c) is detrimental to the interests of the company50(6) the chairman shall exercise absolute discretion in regard to the inclusion or noninclusion of any matter in the minutes on the grounds specified in sub-section (5)(7) the minutes kept in accordance with the provisions of this section shall be evidence of the proceedings recorded therein5(8) where the minutes have been kept in accordance with sub-section (1) then, until the contrary is proved, the meeting shall be deemed to have been duly called and held, and all proceedings thereat to have duly taken place, and the resolutions passed by postal ballot to have been duly passed and in particular, all appointments of directors, key managerial personnel, auditors or company secretary in practice, shall be deemed to be valid10(9) no document purporting to be a report of the proceedings of any general meeting of a company shall be circulated or advertised at the expense of the company, unless it includes the matters required by this section to be contained in the minutes of the proceedings of such meeting56 of 198015(10) every company shall observe secretarial standards with respect to general and board meetings specified by the institute of company secretaries of india constituted under section 3 of the company secretaries act, 1980, and approved as such by the central government(11) if any default is made in complying with the provisions of this section in respect of any meeting, the company shall be liable to a penalty of twenty-five thousand rupees and every officer of the company who is in default shall be liable to a penalty of five thousand rupees20(12) if a person is found guilty of tampering with the minutes of the proceedings of meeting, he shall be punishable with imprisonment for a term which may extend to two years and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees119 (1) the books containing the minutes of the proceedings of any general meeting of a company or of a resolution passed by postal ballot, shall—25(a) be kept at the registered office of the company; and inspection of of general meeting30(b) be open, during business hours, to the inspection by any member without charge, subject to such reasonable restrictions as the company may, by its articles or in general meeting, impose, so, however, that not less than two hours in each business day are allowed for inspection (2) any member shall be entitled to be furnished, within seven working days after he has made a request in that behalf to the company, and on payment of such fees as may be prescribed, with a copy of any minutes referred to in sub-section (1)35(3) if any inspection under sub-section (1) is refused, or if any copy required under sub-section (2) is not furnished within the time specified therein, the company shall be liable to a penalty of twenty-five thousand rupees and every officer of the company who is in default shall be liable to a penalty of five thousand rupees for each such refusal or default, as the case may be40(4) in the case of any such refusal or default, the tribunal may, without prejudice to any action being taken under sub-section (3), by order, direct an immediate inspection of the minute-books or direct that the copy required shall forthwith be sent to the person requiring it120 without prejudice to any other provisions of this act, any document, record, register, minutes, etc,—(a) required to be kept by a company; or45maintenance and inspection of documents in electronic form(b) allowed to be inspected or copies to be given to any person by a company under this act, may be kept or inspected or copies given, as the case may be, in electronic form in such form and manner as may be prescribed50121 (1) every listed public company shall prepare in the prescribed manner a report on each annual general meeting including the confirmation to the effect that the meeting was convened, held and conducted as per the provisions of this act and the rules made thereunderreport on annual general meeting(2) the company shall file with the registrar a copy of the report referred to in subsection (1) within thirty days of the conclusion of the annual general meeting with such fees as may be prescribed, or with such additional fees as may be prescribed, within the time as specified, under section 4035(3) if the company fails to file the report under sub-section (2) before the expiry of theperiod specified under section 403 with additional fee, the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees and every officer of the company who is in default shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees10122 (1) the provisions of section 98 and sections 100 to 111 (both inclusive) shall notapply to a one person companyapplicability of this chapter to one person company(2) the ordinary businesses as mentioned under clause (a) of sub-section (2) of section 102 which a company, other than a one person company, is required to transact at its annual general meeting, shall be transacted, in case of one person company, as provided in sub-section (3)15 20(3) for the purposes of section 114, any business which is required to be transacted at an annual general meeting or other general meeting of a company by means of an ordinary or special resolution, it shall be sufficient if, in case of one person company, the resolution is communicated by the member to the company and entered in the minutes-book required to be maintained under section 118 and signed and dated by the member and such date shall be deemed to be the date of the meeting for all the purposes under this act25(4) notwithstanding anything in this act, where there is only one director on the board of director of a one person company, any business which is required to be transacted at the meeting of the board of directors of a company, it shall be sufficient if, in case of such one person company, the resolution by such director is entered in the minutes-book required to be maintained under section 118 and signed and dated by such director and such date shall be deemed to be the date of the meeting of the board of directors for all the purposes under this act chapter viii30 declaration and payment of dividenddeclaration of dividend123 (1) no dividend shall be declared or paid by a company for any financial year except—35(a) out of the profits of the company for that year arrived at after providing for depreciation in accordance with the provisions of sub-section (2), or out of the profits of the company for any previous financial year or years arrived at after providing for depreciation in accordance with the provisions of that sub-section and remaining undistributed, or out of both; or40(b) out of money provided by the central government or a state government for the payment of dividend by the company in pursuance of a guarantee given by that government: provided that a company may, before the declaration of any dividend in any financial year, transfer such percentage of its profits for that financial year as it may consider appropriate to the reserves of the company:45provided further that where, owing to inadequacy or absence of profits in any financial year, any company proposes to declare dividend out of the accumulated profits earned by it in previous years and transferred by the company to the reserves, such declaration of dividend shall not be made except in accordance with such rules as may be prescribed in this behalf:provided also that no dividend shall be declared or paid by a company from its reserves other than free reserves510 15 20 25unpaid dividend account30 35 40 4550(2) for the purposes of clause (a) of sub-section (1), depreciation shall be provided in accordance with the provisions of schedule ii(3) the board of directors of a company may declare interim dividend during any financial year out of the surplus in the profit and loss account and out of profits of the financial year in which such interim dividend is sought to be declared:provided that in case the company has incurred loss during the current financial year up to the end of the quarter immediately preceding the date of declaration of interim dividend, such interim dividend shall not be declared at a rate higher than the average dividends declared by the company during the immediately preceding three financial years(4) the amount of the dividend, including interim dividend, shall be deposited in a scheduled bank in a separate account within five days from the date of declaration of such dividend(5) no dividend shall be paid by a company in respect of any share therein except to the registered shareholder of such share or to his order or to his banker and shall not be payable except in cash:provided that nothing in this sub-section shall be deemed to prohibit the capitalisation of profits or reserves of a company for the purpose of issuing fully paid-up bonus shares or paying up any amount for the time being unpaid on any shares held by the members of the company:provided further that any dividend payable in cash may be paid by cheque or warrant or in any electronic mode to the shareholder entitled to the payment of the dividend(6) a company which fails to comply with the provisions of sections 73 and 74 shall not, so long as such failure continues, declare any dividend on its equity shares124 (1) where a dividend has been declared by a company but has not been paid or claimed within thirty days from the date of the declaration to any shareholder entitled to the payment of the dividend, the company shall, within seven days from the date of expiry of the said period of thirty days, transfer the total amount of dividend which remains unpaid or unclaimed to a special account to be opened by the company in that behalf in any scheduled bank to be called the unpaid dividend account(2) the company shall, within a period of ninety days of making any transfer of an amount under sub-section (1) to the unpaid dividend account, prepare a statement containing the names, their last known addresses and the unpaid dividend to be paid to each person and place it on the web-site of the company, if any, and also on any other web-site approved by the central government for this purpose, in such form, manner and other particulars as may be prescribed(3) if any default is made in transferring the total amount referred to in sub-section (1)or any part thereof to the unpaid dividend account of the company, it shall pay, from the date of such default, interest on so much of the amount as has not been transferred to the said account, at the rate of twelve per cent per annum and the interest accruing on such amount shall enure to the benefit of the members of the company in proportion to the amount remaining unpaid to them(4) any person claiming to be entitled to any money transferred under sub-section (1)to the unpaid dividend account of the company may apply to the company for payment of the money claimed(5) any money transferred to the unpaid dividend account of a company in pursuance of this section which remains unpaid or unclaimed for a period of seven years from the date of such transfer shall be transferred by the company along with interest accrued, if any, thereon to the fund established under sub-section (1) of section 125 and the company shall send a statement in the prescribed form of the details of such transfer to the authority which administers the said fund and that authority shall issue a receipt to the company as evidence of such transfer(6) all shares in respect of which unpaid or unclaimed dividend has been transferred under sub-section (5) shall also be transferred by the company in the name of investor education and protection fund along with a statement containing such details as may be prescribed:provided that any claimant of shares transferred above shall be entitled to claim the transfer of shares from investor education and protection fund in accordance with such procedure and on submission of such documents as may be prescribed5(7) if a company fails to comply with any of the requirements of this section, the company shall be punishable with fine which shall not be less than five lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees10125 (1) the central government shall establish a fund to be called the investor education and protection fund (herein referred to as the fund)investor education and protection fund(2) there shall be credited to the fund—(a) the amount given by the central government by way of grants after due appropriation made by parliament by law in this behalf for being utilised for the purposes of the fund;15(b) donations given to the fund by the central government, state governments,companies or any other institution for the purposes of the fund;(c) the amount in the unpaid dividend account of companies transferred to thefund under sub-section (5) of section 124;201 of 195621 of 1999(d) the amount in the general revenue account of the central government which had been transferred to that account under sub-section (5) of section 205a of the companies act, 1956, as it stood immediately before the commencement of the companies (amendment) act, 1999, and remaining unpaid or unclaimed on the commencement of this act;1 of 195625(e) the amount lying in the investor education and protection fund under section205c of the companies act, 1956;(f) the interest or other income received out of investments made from the fund; (g) the amount received under sub-section (4) of section 38; (h) the application money received by companies for allotment of any securitiesand due for refund;30(i) matured deposits with companies other than banking companies; (j) matured debentures with companies; (k) interest accrued on the amounts referred to in clauses (h) to (j);(l) sale proceeds of fractional shares arising out of issuance of bonus shares,merger and amalgamation for seven or more years;35(m) redemption amount of preference shares remaining unpaid or unclaimed forseven or more years; and(n) such other amount as may be prescribed:40provided that no such amount referred to in clauses (h) to (j) shall form part of the fund unless such amount has remained unclaimed and unpaid for a period of seven years from the date it became due for payment(3) the fund shall be utilised for—(a) the refund in respect of unclaimed dividends, matured deposits, matureddebentures, the application money due for refund and interest thereon;(b) promotion of investors' education, awareness and protection;45(c) distribution of any disgorged amount among eligible and identifiable applicantsfor shares or debentures, shareholders, debenture-holders or depositors who have suffered losses due to wrong actions by any person, in accordance with the orders made by the court which had ordered disgorgement; (d) reimbursement of legal expenses incurred in pursuing class action suits under sections 37 and 245 by members, debenture-holders or depositors as may be sanctioned by the tribunal; and(e) any other purpose incidental thereto, in accordance with such rules as may be prescribed:51 of 1956provided that the shareholders, whose unclaimed and unpaid dividends have been transferred to investor education and protection fund, after the expiry of the period of seven years as per provisions of the companies act, 1956, shall be entitled to get refund out of the fund in respect of such claims in accordance with rules made under this section10explanation—the disgorged amount refers to the amount received through disgorgement or disposal of securities(4) any person claiming to be entitled to the amount referred in clauses (c) and (d) of sub-section (2) may apply to the authority constituted under sub-section (5) for the payment of the money claimed15(5) the central government shall constitute, by notification, an authority for administration of the fund consisting of a chairperson and such other members, not exceeding seven and a chief executive officer, as the central government may appoint(6) the manner of administration of the fund, appointment of chairperson, members and chief executive officer, holding of meetings of the authority shall be in accordance with such rules as may be prescribed20(7) the central government may provide to the authority such offices, officers, employees and other resources in accordance with such rules as may be prescribed(8) the authority shall administer the fund and maintain separate accounts and other relevant records in relation to the fund in such form as may be prescribed after consultation with the comptroller and auditor-general of india25(9) it shall be competent for the authority constituted under sub-section (5) to spend money out of the fund for carrying out the objects specified in sub-section (3)30(10) the accounts of the fund shall be audited by the comptroller and auditor-general of india at such intervals as may be specified by him and such audited accounts together with the audit report thereon shall be forwarded annually by the authority to the central government35(11) the authority shall prepare in such form and at such time for each financial year as may be prescribed its annual report giving a full account of its activities during the financial year and forward a copy thereof to the central government and the central government shall cause the annual report and the audit report given by the comptroller and auditor-general of india to be laid before each house of parliament126 where any instrument of transfer of shares has been delivered to any company for registration and the transfer of such shares has not been registered by the company, it shall, notwithstanding anything contained in any other provision of this act,—40(a) transfer the dividend in relation to such shares to the unpaid dividend account referred to in section 124 unless the company is authorised by the registered holder of such shares in writing to pay such dividend to the transferee specified in such instrument of transfer; and right to dividend, rights shares and bonus shares to be held in abeyance pending registration of transfer of shares45(b) keep in abeyance in relation to such shares, any offer of rights shares under clause (a) of sub-section (1) of section 62 and any issue of fully paid-up bonus shares in pursuance of first proviso to sub-section (5) of section 123punishment for failure to distribute dividends5127 where a dividend has been declared by a company but has not been paid or the warrant in respect thereof has not been posted within thirty days from the date of declaration to any shareholder entitled to the payment of the dividend, every director of the company shall, if he is knowingly a party to the default, be punishable with imprisonment which may extend to two years and with fine which shall not be less than one thousand rupees for every day during which such default continues and the company shall be liable to pay simple interest at the rate of eighteen per cent per annum during the period for which such default continues:provided that no offence under this section shall be deemed to have been committed:—10(a) where the dividend could not be paid by reason of the operation of any law; (b) where a shareholder has given directions to the company regarding the payment of the dividend and those directions cannot be complied with and the same has been communicated to him;(c) where there is a dispute regarding the right to receive the dividend;15 (d) where the dividend has been lawfully adjusted by the company against any sum due to it from the shareholder; or20 (e) where, for any other reason, the failure to pay the dividend or to post the warrant within the period under this section was not due to any default on the part of the company chapter ix accounts of companies25books of account, etc, to be kept by company128 (1) every company shall prepare and keep at its registered office books of account and other relevant books and papers and financial statement for every financial year which give a true and fair view of the state of the affairs of the company, including that of its branch office or offices, if any, and explain the transactions effected both at the registered office and its branches and such books shall be kept on accrual basis and according to the double entry system of accounting:30provided that all or any of the books of account aforesaid and other relevant papers may be kept at such other place in india as the board of directors may decide and where such a decision is taken, the company shall, within seven days thereof, file with the registrar a notice in writing giving the full address of that other place:provided further that the company may keep such books of account or other relevant papers in electronic mode in such manner as may be prescribed35(2) where a company has a branch office in india or outside india, it shall be deemedto have complied with the provisions of sub-section (1), if proper books of account relating to the transactions effected at the branch office are kept at that office and proper summarised returns periodically are sent by the branch office to the company at its registered office or the other place referred to in sub-section (1)40(3) the books of account and other books and papers maintained by the companywithin india shall be open for inspection at the registered office of the company or at such other place in india by any director during business hours, and in the case of financial information, if any, maintained outside the country, copies of such financial information shall be maintained and produced for inspection by any director subject to such conditions as may be prescribed:45provided that the inspection in respect of any subsidiary of the company shall be done only by the person authorised in this behalf by a resolution of the board of directors(4) where an inspection is made under sub-section (3), the officers and other employees of the company shall give to the person making such inspection all assistance in connection with the inspection which the company may reasonably be expected to give50(5) the books of account of every company relating to a period of not less than eight financial years immediately preceding a financial year, or where the company had been in existence for a period less than eight years, in respect of all the preceding years together with the vouchers relevant to any entry in such books of account shall be kept in good order:5provided that where an investigation has been ordered in respect of the company under chapter xiv, the central government may direct that the books of account may be kept for such longer period as it may deem fit10(6) if the managing director, the whole-time director in charge of finance, the chief financial officer or any other person of a company charged by the board with the duty of complying with the provisions of this section, wilfully contravenes such provisions, such managing director, whole-time director in charge of finance, chief financial officer or such other person of the company shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees or with both15financial statement129 (1) the financial statements shall give a true and fair view of the state of affairs of the company or companies, comply with the accounting standards notified under section 133 and shall be in the form or forms as may be provided for different class or classes of companies in schedule iii:20provided that the items contained in such financial statements shall be in accordance with the accounting standards:provided further that nothing contained in this sub-section shall apply to any insurance or banking company or any company engaged in the generation or supply of electricity, or to any other class of company for which a form of financial statement has been specified in or under the act governing such class of company:25provided also that the financial statements shall not be treated as not disclosing a true and fair view of the state of affairs of the company, merely by reason of the fact that they do not disclose—-4 of 1938 41 of 1999(a) in the case of an insurance company, any matters which are not required to be disclosed by the insurance act, 1938, or the insurance regulatory and development authority act, 1999;3010 of 1949(b) in the case of a banking company, any matters which are not required to be disclosed by the banking regulation act, 1949;36 of 2003(c) in the case of a company engaged in the generation or supply of electricity, any matters which are not required to be disclosed by the electricity act, 2003;35(d) in the case of a company governed by any other law for the time being in force, any matters which are not required to be disclosed by that law (2) at every annual general meeting of a company, the board of directors of the company shall lay before such meeting financial statements for the financial year40(3) where a company has one or more subsidiaries, it shall, in addition to financial statements provided under sub-section (2), prepare a consolidated financial statement of the company and of all the subsidiaries in the same form and manner as that of its own which shall also be laid before the annual general meeting of the company along with the laying of its financial statement under sub-section (2):45provided that the company shall also attach along with its financial statement, a separate statement containing the salient features of the financial statement of its subsidiary or subsidiaries in such form as may be prescribed:provided further that the central government may provide for the consolidation of accounts of companies in such manner as may be prescribedexplanation—for the purposes of this sub-section, the word "subsidiary" shall include associate company and joint venture510 15 20 25re-opening of accounts on court's or tribunal's orders30 35voluntary revision of financial statements or board's report40 455055(4) the provisions of this act applicable to the preparation, adoption and audit of the financial statements of a holding company shall, mutatis mutandis, apply to the consolidated financial statements referred to in sub-section (3)(5) without prejudice to sub-section (1), where the financial statements of a company do not comply with the accounting standards referred to in sub-section (1), the company shall disclose in its financial statements, the deviation from the accounting standards, the reasons for such deviation and the financial effects, if any, arising out of such deviation(6) the central government may, on its own or on an application by a class or classes of companies, by notification, exempt any class or classes of companies from complying with any of the requirements of this section or the rules made thereunder, if it is considered necessary to grant such exemption in the public interest and any such exemption may be granted either unconditionally or subject to such conditions as may be specified in the notification(7) if a company contravenes the provisions of this section, the managing director, the whole-time director in charge of finance, the chief financial officer or any other person charged by the board with the duty of complying with the requirements of this section and in the absence of any of the officers mentioned above, all the directors shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with bothexplanation—for the purposes of this section, except where the context otherwise requires, any reference to the financial statement shall include any notes or documents annexed or attached thereto, giving information required to be given and allowed to be given in the form of such notes or documents by this act130 (1) a company shall not re-open its books of account and not recast its financial statements, unless an order in this regard is made by a court of competent jurisdiction or the tribunal to the effect that—(i) the relevant earlier accounts were prepared in a fraudulent manner; or (ii) the affairs of the company were mismanaged during the relevant period, casting a doubt on the reliability of financial statements:provided that the court or the tribunal, as the case may be, shall give notice to the central government and the income-tax authorities and shall take into consideration the representations, if any, made by that government or the authorities before passing any order under this section (2) without prejudice to the provisions contained in this act the accounts so revised or re-cast under sub-section (1) shall be final131 (1) if it appears to the directors of a company that—(a) the financial statement of the company; or (b) the report of the board, do not comply with the provisions of section 129 or section 134 they may prepare revised financial statement or a revised report in respect of any of the three preceding financial years after obtaining approval of the tribunal on an application made by the company in such form and manner as may be prescribed and a copy of the order passed by the tribunal shall be filed with the registrar:provided that the tribunal shall give notice to the central government and the incometax authorities and shall take into consideration the representations, if any, made by that government or the authorities before passing any order under this section:provided further that such revised financial statement or report shall not be prepared or filed more than once in a financial year:provided also that the detailed reasons for revision of such financial statement or report shall also be disclosed in the board's report in the relevant financial year in which such revision is being made(2) where copies of the previous financial statement or report have been sent out to members or delivered to the registrar or laid before the company in general meeting, the revisions must be confined to—(a) the correction in respect of which the previous financial statement or report do not comply with the provisions of section 129 or section 134; and(b) the making of any necessary consequential alternation(3) the central government may make rules as to the application of the provisions of this act in relation to revised financial statement or a revised director's report and such rules may, in particular—5(a) make different provisions according to which the previous financial statement or report are replaced or are supplemented by a document indicating the corrections to be made;(b) make provisions with respect to the functions of the company's auditor in relation to the revised financial statement or report;(c) require the directors to take such steps as may be prescribed10132 (1) the central government may, by notification, constitute a national financial reporting authority to provide for matters relating to accounting and auditing standards under this actconstitution of national financial reporting authority(2) notwithstanding anything contained in any other law for the time being in force, the national financial reporting authority shall—15(i) make recommendations to the central government on the formulation andlaying down of accounting and auditing policies and standards for adoption by companies or class of companies or their auditors, as the case may be;(ii) monitor and enforce the compliance with accounting and auditing standards recommended by it in such manner as may be prescribed;20(iii) oversee the quality of service of the professions associated with ensuringcompliance with such standards, and suggest measures required for improvement in quality of services and such other related matters as may be prescribed; and(iv) perform such other functions as may be prescribed25(3) the national financial reporting authority shall consist of a chairperson, who shall be a person of eminence and having expertise in accountancy, auditing, finance, business administration, business law, economics or similar disciplines, to be nominated by the central government and such other members not exceeding fifteen as may be prescribed:provided that the terms and conditions of appointment of the chairperson and members shall be such as may be prescribed:30provided further that the chairperson and members shall make a declaration to the central government in the prescribed form regarding no conflict of interest or lack of independence in respect of his or their appointment(4) notwithstanding anything contained in any other law for the time being in force, the national financial reporting authority shall—3538 of 19494023 of 1959 56 of 1980(i) have the power to investigate, either suo moto or on a reference made to it by the central government, for such class of bodies corporate or persons, in such manner as may be prescribed into the matters of professional or other misconduct committed by any member or firm of chartered accountants, cost accountants or company secretaries in practice consituted under the chartered accountants act, 1949, the cost and works accountants act, 1959 and the company secretaries act, 1980 respectively or any other profession as may be prescribed:provided that no other institute or body shall initiate or continue any proceedings in such matters of misconduct where the national financial reporting authority has initiated an investigation under this section;455 of 1908(ii) have the same powers as are vested in a civil court under the code of civil procedure, 1908, while trying a suit, in respect of the following matters, namely:—(a) discovery and production of books of account and other documents,at such place and at such time as may be specified by the national financial reporting authority;50(b) summoning and enforcing the attendance of persons and examiningthem on oath;(c) inspection of any books, registers and other documents of any personreferred to in clause (b) at any place;(d) issuing commissions for examination of witnesses or documents;5(iii) where professional or other misconduct is proved, have the power to makeorder for—(a) imposing penalty of not less than one lakh rupees in case of individualsand not less than ten lakh rupees in case of firms;10(b) debarring the member or the firm from engaging himself or itself frompractice as member of the institute for a minimum period of six months or for such higher period not exceeding ten years as may be decided by the national financial reporting authority:38 of 19491523 of 1959 56 of 1980provided that the appellate authority constituted under section 22a of the chartered accountants act, 1949, under section 22a of the cost and works accountants act, 1959 and under section 22a of the company secretaries act, 1980 shall be deemed to the appellate authority against any order made by the national financial reporting authority and any person aggrieved by any order of the national financial reporting authority shall have the right to appeal before the appellate authority in such manner as may be prescribed2038 of 1949explanation—for the purposes of this section, the expression "professional or other misconduct" shall have the same meaning respectively assigned to it under section 22 of the chartered accountants act, 1949, the cost and works accountants act, 1959 and the company secretaries act, 198023 of 1959 56 of 198025(5) the national financial reporting authority shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings in such manner as may be prescribed(6) the central government may appoint a secretary and such other employees as it may consider necessary for the efficient performance of functions by the national financial reporting authority under this act and the terms and conditions of service of the secretary and employees shall be such as may be prescribed30(7) the head office of the national financial reporting authority shall be at new delhi andthe national financial reporting authority may, meet at such other places in india as it deems fit(8) the national financial reporting authority shall cause to be maintained such books of account and other books in relation to its accounts in such form and in such manner as the central government may, in consultation with the comptroller and auditor-general of india prescribe35 40(9) the accounts of the national financial reporting authority shall be audited by the comptroller and auditor-general of india at such intervals as may be specified by him and such accounts as certified by the comptroller and auditor-general of india together with the audit report thereon shall be forwarded annually to the central government by thenational financial reporting authority45(10) the national financial reporting authority shall prepare in such form and at such time for each financial year as may be prescribed its annual report giving a full account of its activities during the financial year and forward a copy thereof to the central government and the central government shall cause the annual report and the audit report given by the comptroller and auditor-general of india to be laid before each house of parliament38 of 1949central government to prescribe accounting standards50133 the central government may prescribe the standards of accounting or any addendum thereto, as recommended by the institute of chartered accountants of india, constituted under section 3 of the chartered accountants act, 1949, in consultation with and after examination of the recommendations made by the national financial reporting authorityfinancial statement, board's report, etc5134 (1) the financial statement, including consolidated financial statement, if any, shall be approved by the board of directors before they are signed on behalf of the board at least by the chairman where he is authorised by the board or by two directors out of which one shall be managing director, if any, and chief executive officer, if any, if he is a director in the company and by chief financial officer and company secretary of the company, or, in the case of a one person company, only by one director, for submission to the auditor for his report thereon(2) the auditors' report shall be attached to every financial statement10(3) there shall be attached to statements laid before a company in general meeting, a report by its board of directors, which shall include—(a) the extract of the annual return as provided under sub-section (3) of section 92; (b) number of meetings of the board; (c) directors' responsibility statement;15(d) a statement on declaration given by independent directors under sub-section(6) of section 149;(e) in case of a company covered under sub-section (1) of section 178, company's policy on directors' appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters provided under sub-section (3) of section 178;20(f) explanations or comments by the board on every qualification, reservation or adverse remark or disclaimer made—(i) by the auditor in his report; and (ii) by the company secretary in his secretarial audit report;(g) particulars of loans, guarantees or investments under section 186;25(h) particulars of contracts or arrangements with related parties referred to in sub-section (1) of section 188 in the prescribed form;(i) the state of the company's affairs; (j) the amounts, if any, which it proposes to carry to any reserves; (k) the amount, if any, which it recommends should be paid by way of dividend;30(l) material changes and commitments, if any, affecting the financial position of the company which have occurred between the end of the financial year of the company to which the financial statements relate and the date of the report;(m) the conservation of energy, technology absorption, foreign exchange earnings and outgo, in such manner as may be prescribed;35(n) a statement indicating development and implementation of a risk managementpolicy for the company including identification therein of elements of risk, if any, which in the opinion of the board may threaten the existence of the company;(o) the details about the policy developed and implemented by the company oncorporate social responsibility initiatives taken during the year;40(p) in case of a listed company and every other public company having suchpaid-up share capital as may be prescribed, a statement indicating the manner in which formal annual evaluation has been made by the board of its own performance and that of its committees and individual directors;(q) such other matters as may be prescribed45(4) the report of the board of directors to be attached to the financial statement under this section shall, in case of a one person company, mean a report containing explanations or comments by the board on every qualification, reservation or adverse remark or disclaimer made by the auditor in his report(5) the directors' responsibility statement referred to in clause (c) of sub-section (3) shall state that—(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;5(b) the directors had selected such accounting policies and applied themconsistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;10(c) the directors had taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of this act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;(d) the directors had prepared the annual accounts on a going concern basis; and15(e) the directors, in the case of a listed company, had laid down internal financialcontrols to be followed by the company and that such internal financial controls are adequate and were operating effectively;20explanation—for the purposes of this clause, the term "internal financial controls" means the policies and procedures adopted by the company for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information;(f) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively25(6) the board's report and any annexures thereto under sub-section (3) shall be signed by its chairman if he is authorised by the board and where he is not so authorised, shall be signed by at least two directors, one of whom shall be a managing director, or by the director where there is one director30(7) a signed copy of every financial statement, including consolidated financial statement, if any, shall be issued, circulated or published along with a copy each of—(a) any notes or documents which are required to be attached to the financialstatement in pursuance of section 129;(b) the auditor's report; and35(c) the board's report referred to in sub-section (3)40(8) if a company contravenes the provisions of this section, the company shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with bothcorporate45135 (1) every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a corporate social responsibility committee of the borad consisting of three or more directors, out of which at least one director shall be an independent director(2) the board's report under sub-section (3) of section 134 shall disclose the composition of the corporate social responsibility committee(3) the corporate social responsibility committee shall,—50(a) formulate and recommend to the board, a corporate social responsibilitypolicy which shall indicate the activities to be undertaken by the compay as specified in schedule vii;(b) recommend the amount of expenditure to be incurred on the activities referred to in clause (a); and(c) monitor the corporate social responsibility policy of the company from time to time5(4) the board of every company referred to in sub-section (1) shall,—(a) after taking into account the recommendations made by the corporate social responsibility committee, approve the corporate social responsibility policy for the company and disclose contents of such policy in its report and also place it on the company's website, if any, in such manner as may be prescribed; and10(b) ensure that the activities as are included in corporate social responsibility policy of the company are undertaken by the company15(5) the board of every company referred to in sub-section (1), shall make every endeavour to ensure that the company spends, in every financial year, at least two per cent of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its corporate social responsibility policy:provided that if the company fails to spend such amount, the board shall, in its report made under clause (o) of sub-section (3) of section 134, specify the reasons for not spending the amount20right of member to copies of audited financial statement25136 (1) a copy of the financial statements, including consolidated financial statements, if any, auditor's report and every other document required by law to be annexed or attached to the financial statements, which are to be laid before a company in its general meeting, shall be sent to every member of the company, to every trustee for the debenture-holder of any debentures issued by the company, and to all persons other than such member or trustee, being the person so entitled, not less than twenty-one days before the date of the meeting:30provided that in the case of a listed company, the provisions of this sub-section shall be deemed to be complied with, if the copies of the documents are made available for inspection at its registered office during working hours for a period of twenty-one days before the date of the meeting and a statement containing the salient features of such documents in the prescribed form or copies of the documents, as the company may deem fit, is sent to every member of the company and to every trustee for the holders of any debentures issued by the company not less than twenty-one days before the date of the meeting unless the shareholders ask for full financial statements:35provided further that the central government may prescribe the manner of circulation of financial statements of companies having such net worth and turnover as may be prescribed:provided also that a listed company shall also place its financial statements including consolidated financial statements, if any, and all other documents required to be attached thereto, on its website, which is maintained by or on behalf of the company:provided also that every company having a subsidiary or subsidiaries shall,—40(a) place separate audited accounts in respect of each of its subsidiary on its website, if any;(b) provide a copy of separate audited financial statements in respect of each of its subsidiary, to any shareholder of the company who asks for it45(2) a company shall allow every member or trustee of the holder of any debentures issued by the company to inspect the documents stated under sub-section (1) at its registered office during business hours(3) if any default is made in complying with the provisions of this section, the company shall be liable to a penalty of twenty-five thousand rupees and every officer of the company who is in default shall be liable to a penalty of five thousand rupeescopy of financial statement to be filed with registrar5137 (1) a copy of the financial statements, including consolidated financial statement, if any, along with all the documents which are required to be or attached to such financial statements under this act, duly adopted at the annual general meeting of the company, shall be filed with the registrar within thirty days of the date of annual general meeting in such manner, with such fees or additional fees as may be prescribed within the time specified under section 403:10provided that where the financial statements under sub-section (1) are not adopted at annual general meeting or adjourned annual general meeting, such unadopted financial statements along with the required documents under sub-section (1) shall be filed with the registrar within thirty days of the date of annual general meeting and the registrar shall take them in his records as provisional till the financial statements are filed with him after their adoption in the adjourned annual general meeting for that purpose:15provided further that financial statements adopted in the adjourned annual general meeting shall be filed with the registrar within thirty days of the date of such adjourned annual general meeting with such fees or such additional fees as may be prescribed within the time specified under section 403:20 25provided also that a one person company shall file a copy of the financial statements duly adopted by its member, along with all the documents which are required to be attached to such financial statements, within one hundred eighty days from the closure of the financial year:provided also that a company shall, along with its financial statements to be filed with the registrar, attach the accounts of its subsidiary or subsidiaries which have been incorporated outside india and which have not established their place of business in india(2) where the annual general meeting of a company for any year has not been held, the financial statements along with the documents required to be attached under sub-section (1), duly signed along with the statement of facts and reasons for not holding the annual general meeting shall be filed with the registrar within thirty days of the last date before which the annual general meeting should have been held and in such manner, with such fees or additional fees as may be prescribed within the time specified, under section 40330 35(3) if a company fails to file the copy of the financial statements under sub-section (1)or sub-section (2), as the case may be, before the expiry of the period specified in section 403, the company shall be punishable with fine of one thousand rupees for every day during which the failure continues but which shall not be more than ten lakh rupees, and the managing director and the chief financial officer of the company, if any, and, in the absence of the managing director and the chief financial officer, any other director who is charged by the board with the responsibility of complying with the provisions of this section, and, in the absence of any such director, all the directors of the company, shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees, or with bothinternal audit40 138 (1) such class or classes of companies as may be prescribed shall be required to appoint an internal auditor, who shall either be a chartered accountant or a cost accountant, or such other professional as may be decided by the board to conduct internal audit of the functions and activities of the company(2) the central government may, by rules, prescribe the manner and the intervals in which the internal audit shall be conducted and reported to the board45appointment50chapter xaudit and auditors139 (1) subject to the provisions of this chapter, every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting and thereafter till the conclusion of every sixth meeting and the manner and procedure of selection of auditors by the members of the company at such meeting shall be such as may be prescribed:provided that before such appointment is made, the written consent of the auditor to such appointment, and a certificate from him or it that the appointment, if made, shall be in accordance with the conditions as may be prescribed, shall be obtained from the auditor:55provided further that the certificate shall also indicate whether the auditor satisfies thecriteria provided in section 141:provided also that the company shall inform the auditor concerned of his or its appointment, and also file a notice of such appointment with the registrar within fifteen days of the meeting in which the auditor is appointed5explanation—for the purposes of this chapter, "appointment" includes reappointment(2) no listed company or a company belonging to such class or classes of companies as may be prescribed, shall appoint or re-appoint—(a) an individual as auditor for more than one term of five consecutive years;and10(b) an audit firm as auditor for more than two terms of five consecutive years:provided that—(i) an individual auditor who has completed his term under clause (a) shall not be eligible for re-appointment as auditor in the same company for five years from the completion of his term;15(ii) an audit firm which has completed its term under clause (b), shall not be eligible for re-appointment as auditor in the same company for five years from the completion of such term:20provided further that as on the date of appointment no audit firm having a common partner or partners to the other audit firm, whose tenure has expired in a company immediately preceding the financial year, shall be appointed as auditor of the same company for a period of five years:provided also that every company, existing on or before the commencement of this act which is required to comply with provisions of this sub-section, shall comply with the requirements of this sub-section within three years from the date of commencement of this act:25provided also that, nothing contained in this sub-section shall prejudice the right of the company to remove an auditor or the right of the auditor to resign from such office of the company (3) subject to the provisions of this act, members of a company may resolve to provide that—30(a) in the audit firm appointed by it, the auditing partner and his team shall be rotated every year; or(b) the audit shall be conducted by more than one auditor(4) the central government may, by rules, prescribe the manner in which the companies shall rotate their auditors in pursuance of sub-section (2)356 of 2009explanation—for the purposes of this chapter, the word "firm" shall include a limited liability partnership incorporated under the limited liability partnership act, 200840(5) notwithstanding anything contained in sub-section (1), in the case of a government company or any other company owned or controlled, directly or indirectly, by the central government, or by any state government or governments, or partly by the central government and partly by one or more state governments, the comptroller and auditor-general of india shall, in respect of a financial year, appoint an auditor duly qualified to be appointed as an auditor of companies under this act, within a period of one hundred and eighty days from the commencement of the financial year, who shall hold office till the conclusion of the annual general meeting45(6) notwithstanding anything contained in sub-section (1), the first auditor of a company, other than a government company, shall be appointed by the board of directors within thirty days from the date of registration of the company and in the case of failure of the board to appoint such auditor, it shall inform the members of the company, who shall within ninety days at an extraordinary general meeting appoint such auditor and such auditor shall hold office till the conclusion of the first annual general meeting510(7) notwithstanding anything contained in sub-section (1) or sub-section (5), in the case of a government company or any other company owned or controlled, directly or indirectly, by the central government, or by any state government, or governments, or partly by the central government and partly by one or more state governments, the first auditor shall be appointed by the comptroller and auditor-general of india within sixty days from the date of registration of the company and in case the comptroller and auditor-general of india does not appoint such auditor within the said period, the board of directors of the company shall appoint such auditor within the next thirty days; and in the case of failure of the board to appoint such auditor within next thirty days, it shall inform the members of the company who shall appoint such auditor within sixty days at an extraordinary general meeting, who shall hold office till the conclusion of the first annual general meeting(8) any casual vacancy in the office of an auditor shall—15(i) in the case of a company other than a company whose accounts are subject to audit by an auditor appointed by the comptroller and auditor-general of india, be filled by the board of directors within thirty days, but if such casual vacancy is as a result of the resignation of an auditor, such appointment shall also be approved by the company at a general meeting convened within three months of the recommendation of the board and he shall hold the office till the conclusion of the next annual general meeting;20(ii) in the case of a company whose accounts are subject to audit by an auditor appointed by the comptroller and auditor-general of india, be filled by the comptroller and auditor-general of india within thirty days:provided that in case the comptroller and auditor-general of india does not fill the vacancy within the said period, the board of directors shall fill the vacancy within next thirty days25(9) subject to the provisions of sub-section (1) and the rules made thereunder, a retiring auditor may be re-appointed at an annual general meeting, if—(a) he is not disqualified for re-appointment; (b) he has not given the company a notice in writing of his unwillingness to be re-appointed; and30 35 40removal, resignation of auditor and giving of special notice(c) a special resolution has not been passed at that meeting appointing some other auditor or providing expressly that he shall not be re-appointed (10) where at any annual general meeting, no auditor is appointed or re-appointed, the existing auditor shall continue to be the auditor of the company(11) where a company is required to constitute an audit committee under section 177, all appointments, including the filling of a casual vacancy of an auditor under this section shall be made after taking into account the recommendations of such committee140 (1) the auditor appointed under section 139 may be removed from his office before the expiry of his term only by a special resolution of the company, after obtaining the previous approval of the central government in that behalf in the prescribed manner:provided that before taking any action under this sub-section, the auditor concerned shall be given a reasonable opportunity of being heard45(2) the auditor who has resigned from the company shall file within a period of thirty days from the date of resignation, a statement in the prescribed form with the company and the registrar, and in case of companies referred to in sub-section (5) of section 139, the auditor shall also file such statement with the comptroller and auditor-general of india, indicating the reasons and other facts as may be relevant with regard to his resignation (3) if the auditor does not comply with sub-section (2), he or it shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees50(4) (i) special notice shall be required for a resolution at an annual general meetingappointing as auditor a person other than a retiring auditor, or providing expressly that a retiring auditor shall not be re-appointed, except where the retiring auditor has completed a consecutive tenure of five years or as the case may be, ten years, as provided under sub-section (2) of section 139(ii) on receipt of notice of such a resolution, the company shall forthwith send a copy thereof to the retiring auditor5(iii) where notice is given of such a resolution and the retiring auditor makes with respect thereto representation in writing to the company (not exceeding a reasonable length) and requests its notification to members of the company, the company shall, unless the representation is received by it too late for it to do so,—(a) in any notice of the resolution given to members of the company, state the fact of the representation having been made; and10(b) send a copy of the representation to every member of the company to whom notice of the meeting is sent, whether before or after the receipt of the representation by the company, and if a copy of the representation is not sent as aforesaid because it was received too late or because of the company's default, the auditor may (without prejudice to his right to be heard orally) require that the representation shall be read out at the meeting:15provided that if a copy of representation is not sent as aforesaid, a copy thereof shall be filed with the registrar:20provided further that if the tribunal is satisfied on an application either of the company or of any other aggrieved person that the rights conferred by this sub-section are being abused by the auditor, then, the copy of the representation may not be sent and the representation need not be read out at the meeting25(5) without prejudice to any action under the provisions of this act or any other law for the time being in force, the tribunal either suo motu or on an application made to it by the central government or by any person concerned, if it is satisfied that the auditor of a company has, whether directly or indirectly, acted in a fraudulent manner or abetted or colluded in any fraud by, or in relation to, the company or its directors or officers, it may, by order, direct the company to change its auditors:30provided that if the application is made by the central government and the tribunal is satisfied that any change of the auditor is required, it shall within fifteen days of receipt of such application, make an order that he shall not function as an auditor and the central government may appoint another auditor in his place:provided further that an auditor, whether individual or firm, against whom final order has been passed by the tribunal under this section shall not be eligible to be appointed as an auditor of any company for a period of five years from the date of passing of the order and the auditor shall also be liable for action under section 44735explanation—for the purposes of this chapter the word "auditor" includes a firm of auditors141 (1) a person shall be eligible for appointment as an auditor of a company only if he is a chartered accountant:eligibility, qualifications and disqualifications of auditorsprovided that a firm whereof majority of partners practising in india are qualified for appointment as aforesaid may be appointed by its firm name to be auditor of a company40(2) where a firm including a limited liability partnership is appointed as an auditor of a company, only the partners who are chartered accountants shall be authorised to act and sign on behalf of the firm(3) the following persons shall not be eligible for appointment as an auditor of a company, namely:—456 of 2009(a) a body corporate other than a limited liability partnership registered under the limited liability partnership act, 2008;(b) an officer or employee of the company;50(c) a person who is a partner, or who is in the employment, of an officer or employee of the company;(d) a person who, or his relative or partner—(i) is holding any security of or interest in the company or its subsidiary, or of its holding or associate company or a subsidiary of such holding company:5provided that the relative may hold security or interest in the company of face value not exceeding one thousand rupees or such sum as may be prescribed;(ii) is indebted to the company, or its subsidiary, or its holding or associate company or a subsidiary of such holding company, in excess of such amount as may be prescribed; or10(iii) has given a guarantee or provided any security in connection with the indebtedness of any third person to the company, or its subsidiary, or its holding or associate company or a subsidiary of such holding company, for such amount as may be prescribed;15(e) a person or a firm who, whether directly or indirectly, has business relationship with the company, or its subsidiary, or its holding or associate company or subsidiary of such holding company or associate company of such nature as may be prescribed;(f) a person whose relative is a director or is in the employment of the company as a director or key managerial personnel;20(g) a person who is in employment elsewhere or a person or firm who holds appointment as an auditor in companies exceeding such number as may be prescribed on the date of his appointment:provided that the members of a company may, by ordinary resolution, specify the number of companies beyond which the auditor or audit firm of a company shall not become auditor; (h) a person who has been convicted by a court of an offence involving fraud and a period of ten years has not elapsed from the date of such conviction;25(i) any person whose subsidiary or associate company or any other form of entity, is engaged as on the date of appointment in consulting and specialised services as provided in section 14430(4) where a person appointed as an auditor of a company incurs any of the disqualifications mentioned in sub-section (3) after his appointment, he shall vacate his office as such auditor and such vacation shall be deemed to be a casual vacancy in the office of the auditorremuneration of auditors142 (1) the remuneration of the auditor of a company shall be fixed in its general meeting or in such manner as may be determined therein35(2) the remuneration under sub-section (1) shall, in addition to the fee payable to an auditor, include the expenses, if any, incurred by the auditor in connection with the audit of the company and any facility extended to him but does not include any remuneration paid to him for any other service rendered by him at the request of the company40powers and duties of auditors and auditing standards143 (1) every auditor of a company shall have a right of access at all times to thebooks of account and vouchers of the company, whether kept at the registered office of the company or at any other place and shall be entitled to require from the officers of the company such information and explanation as he may consider necessary for the performance of his duties as auditor and amongst other matters inquire into the following matters, namely:—45(a) whether loans and advances made by the company on the basis of securityhave been properly secured and whether the terms on which they have been made are prejudicial to the interests of the company or its members;(b) whether transactions of the company which are represented merely by bookentries are prejudicial to the interests of the company;(c) where the company not being an investment company or a banking company, whether so much of the assets of the company as consist of shares, debentures and other securities have been sold at a price less than that at which they were purchased by the company;5(d) whether loans and advances made by the company have been shown as deposits;(e) whether personal expenses have been charged to revenue account;10(f) where it is stated in the books and documents of the company that any shares have been allotted for cash, whether cash has actually been received in respect of such allotment, and if no cash has actually been so received, whether the position as stated in the account books and the balance sheet is correct, regular and not misleading: provided that the auditor of a company which is a holding company shall also have the right of access to the records of all its subsidiaries in so far as it relates to the consolidation of its financial statements with that of its subsidiaries15 20(2) the auditor shall make a report to the members of the company on the accounts examined by him and on every financial statements which are required by or under this act to be laid before the company in general meeting and the report shall after taking into account the provisions of this act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of this act or any rules made thereunder or under any order made under sub-section (11) and to the best of his information and knowledge, the said accounts, financial statements give a true and fair view of the state of the company's affairs as at the end of its financial year and profit or loss and cash flow for the year and such other matters as may be prescribed (3) the auditor's report shall also state—25(a) whether he has sought and obtained all the information and explanations which to the best of his knowledge and belief were necessary for the purpose of his audit and if not, the details thereof and the effect of such information on the financial statements;30 (b) whether, in his opinion, proper books of account as required by law have been kept by the company so far as appears from his examination of those books and proper returns adequate for the purposes of his audit have been received from branches not visited by him;35(c) whether the report on the accounts of any branch office of the company audited under sub-section (8) by a person other than the company's auditor has been sent to him under the proviso to that sub-section and the manner in which he has dealt with it in preparing his report;(d) whether the company's balance sheet and profit and loss account dealt with in the report are in agreement with the books of account and returns;40 (e) whether, in his opinion, the financial statements comply with the accounting standards;(f) the observations or comments of the auditors on financial transactions or matters which have any adverse effect on the functioning of the company;(g) whether any director is disqualified from being appointed as a director under sub-section (2) of section 164;45(h) any qualification, reservation or adverse remark relating to the maintenanceof accounts and other matters connected therewith; (i) whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls;(j) such other matters as may be prescribed(4) where any of the matters required to be included in the audit report under this section is answered in the negative or with a qualification, the report shall state the reasons therefor510(5) in the case of a government company, the auditor appointed by the comptroller and auditor-general of india under sub-section (5) or sub-section (7) of section 139 shall submit a copy of his audit report to the comptroller and auditor-general of india which shall, among other things, include the directions, if any, issued by the comptroller and auditor-general of india in respect of the accounting standards, the variance, if any, from the accounting standards notified by the government, the action taken on such directions and the impact thereof on the company's accounts(6) the comptroller and auditor-general of india shall within sixty days from the date of receipt of the audit report under sub-section (5) have a right to—15(a) conduct any supplementary audit of the company's accounts by himself or by such person or persons as he may authorise in this behalf and such person or persons shall have the same rights and obligations as the auditor who has submitted the report; and(b) comment upon or supplement such audit report:20provided that any comments given by the comptroller and auditor-general of india upon, or supplement to, the audit report or, on the report of the supplementary audit conducted by him shall be sent by the company to every person entitled to copies of audited financial statements under sub-section (1) of section 136 and also placed before the annual general meeting of the company at the same time and in the same manner as the audit report2556 of 1971(7) without prejudice to the provisions of this chapter, the comptroller and auditor-general of india may, in case of any company covered under sub-section (5) or sub-section(7) of section 139, if he considers necessary, by an order, cause test audit to be conducted of the accounts of such company and the provisions of section 19a of the comptroller and auditor-general's (duties, powers and conditions of service) act, 1971, shall apply to the report of such test audit30 35(8) where a company has a branch office, the accounts of that office shall be auditedeither by the auditor appointed for the company (herein referred to as the company's auditor) under this act or by any other person qualified for appointment as an auditor of the company under this act and appointed as such under section 139, or where the branch office is situated in a country outside india, the accounts of the branch office shall be audited either by the company's auditor or by an accountant or by any other person duly qualified to act as an auditor of the accounts of the branch office in accordance with the laws of that country and the duties and powers of the company's auditor with reference to the audit of the branch and the branch auditor, if any, shall be such as may be prescribed:40provided that the branch auditor shall prepare a report on the accounts of the branchexamined by him and send it to the auditor of the company who shall deal with it in his report in such manner as he considers necessary(9) every auditor shall comply with the auditing standards38 of 194945(10) the central government may prescribe the standards of auditing or any addendumthereto, as recommended by the institute of chartered accountants of india, constituted under section 3 of the chartered accountants act, 1949, in consultation with and after examination of the recommendations made by the national financial reporting authority:provided that until any auditing standards are notified, any standard or standards of auditing specified by the institute of chartered accountants of india shall be deemed to be the auditing standards(11) the central government may, in consultation with the national financial reporting authority, by general or special order, direct, in respect of such class or description of companies, as may be specified in the order, that the auditor's report shall also include a statement on such matters as may be specified therein5(12) notwithstanding anything contained in this section, if an auditor of a company, in the course of the performance of his duties as auditor, has reason to believe that an offence involving fraud is being or has been committed against the company by officers or employees of the company, he shall immediately report the matter to the central government within such time and in such manner as may be prescribed10(13) no duty to which an auditor of a company may be subject to shall be regarded as having been contravened by reason of his reporting the matter referred to in sub-section (12)if it is done in good faith(14) the provisions of this section shall mutatis mutandis apply to—(a) the cost accountant in practice conducting cost audit under section 148; or15(b) the company secretary in practice conducting secretarial audit under section 204 (15) if any auditor, cost accountant or company secretary in practice do not comply with the provisions of sub-section (12), he shall be punishable with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees20auditor not to render certain services144 an auditor appointed under this act shall provide to the company only such other services as are approved by the board of directors or the audit committee, as the case may be, but which shall not include any of the following services (whether such services are rendered directly or indirectly to the company or its holding company or subsidiary company or associate company), namely:—| ( | a | ) accounting and book keeping services; ||-----|-----|------------------------------------------------------------------|| 25 | | || ( | b | ) internal audit; || ( | c | ) design and implementation of any financial information system; || ( | d | ) actuarial services; || ( | e | ) investment advisory services; || 30 | | || ( | f | ) investment banking services; || ( | g | ) rendering of outsourced financial services; |(h) management services; and (i) any other kind of services as may be prescribed35explanation—for the purposes of this sub-section, the term "directly or indirectly"shall include rendering of services by the auditor,—(i) in case of auditor being an individual, either himself or through his relative or any other person connected or associated with such individual or through any other entity, whatsoever, in which such individual has significant influence or control, or whose name or trade mark or brand is used by such individual;40(ii) in case of auditor being a firm, either itself or through any of its partners or through its parent, subsidiary or associate entity or through any other entity, whatsoever, in which the firm or any partner of the firm has significant influence or control, or whose name or trade mark or brand is used by the firm or any of its partners45auditor to sign audit reports, etc145 the person appointed as an auditor of the company shall sign the auditor's report or sign or certify any other document of the company, and the qualifications, observations or comments on financial transactions or matters, which have any adverse effect on the functioning of the company mentioned in the auditor's report shall be read before the company in general meeting and shall be open to inspection by any member of the companyauditors to attend general meeting146 all notices of, and other communications relating to, any general meeting shall be forwarded to the auditor of the company, and the auditor shall, unless otherwise exempted by the company, attend either by himself or through his authorised representative, who shall also be qualified to be an auditor, any general meeting and shall have right to be heard at such meeting on any part of the business which concerns him as the auditor5punishment for contravention10147 (1) if any of the provisions of sections 139 to 146 (both inclusive) is contravened, the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than ten thousand rupees but which may extend to one lakh rupees, or with both(2) if an auditor of a company contravenes any of the provisions of section 143, section 144 or section 145, the auditor shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees:15provided that if an auditor has contravened such provisions with the intention to deceive the company or its shareholders or creditors or any other person concerned or interested in the company, he shall be punishable with imprisonment for a term which may extend to one year and with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees(3) where an auditor has been convicted under sub-section (2), he shall be liable to—20(i) refund the remuneration received by him to the company; and (ii) pay for damages to the company or to any other persons for loss arising out of incorrect or misleading statements of particulars made in his audit report25 30(4) where, in case of audit of a company being conducted by an audit firm, it is proved that the partner or partners of the audit firm has or have acted in a fraudulent manner or abetted or colluded in any fraud by, or in relation to or by, the company or its directors or officers, the liability, whether civil or criminal as provided in this act or in any other law for the time being in force, for such act shall be of the partner or partners of the audit firm and of the firm jointly and severally and such partner or partners of the audit firm shall also be punishable in the manner as provided in section 44735148 (1) notwithstanding anything contained in this chapter, the central government may, by order, in respect of such class of companies engaged in the production of such goods or providing such services as may be prescribed, direct that particulars relating to the utilisation of material or labour or to other items of cost as may be prescribed shall also be included in the books of account kept by that class of companies:central government to specify audit of items of cost in respect of certain companiesprovided that the central government shall, before issuing such order in respect of any class of companies regulated under a special act, consult the regulatory body constituted or established under such special act40(2) if the central government is of the opinion, that it is necessary to do so, it may, by order, direct that the audit of cost records of class of companies, which are covered under sub-section (1) and which have a net worth of such amount as may be prescribed or a turnover of such amount as may be prescribed, shall be conducted in the manner specified in the order45(3) the audit under sub-section (2) shall be conducted by a cost accountant who shall be appointed by the board on such remuneration as may be determined by the members in such manner as may be prescribed:provided that no person appointed under section 139 as an auditor of the company shall be appointed for conducting the audit of cost records:provided further that the auditor conducting the cost audit shall comply with the cost auditing standards523 of 1959explanation—for the purposes of this sub-section, the expression "cost auditing standards" mean such standards as are issued by the institute of cost and works accountants of india, constituted under the cost and works accountants act, 1959, with the approval of the central government10 (4) an audit conducted under this section shall be in addition to the audit conducted under section 143(5) the qualifications, disqualifications, rights, duties and obligations applicable to auditors under this chapter shall, so far as may be applicable, apply to a cost auditor appointed under this section and it shall be the duty of the company to give all assistance and facilities to the cost auditor appointed under this section for auditing the cost records of the company:15provided that the report on the audit of cost records shall be submitted by the cost accountant in practice to the board of directors of the company(6) a company shall within thirty days from the date of receipt of a copy of the cost audit report prepared in pursuance of a direction under sub-section (2) furnish the central government with such report along with full information and explanation on every reservation or qualification contained therein20(7) if, after considering the cost audit report referred to under this section and the information and explanation furnished by the company under sub-section (6), the central government is of the opinion that any further information or explanation is necessary, it may call for such further information and explanation and the company shall furnish the same within such time as may be specified by that government25(8) if any default is made in complying with the provisions of this section,—(a) the company and every officer of the company who is in default shall be punishable in the manner as provided in sub-section (1) of section 147;(b) the cost auditor of the company who is in default shall be punishable in the manner as provided in sub-sections (2) to (4) of section 14730 chapter xi appointment and qualifications of directors149 (1) every company shall have a board of directors consisting of individuals as directors and shall have—company to have board of directors35(a) a minimum number of three directors in the case of a public company, two directors in the case of a private company, and one director in the case of a one person company; and(b) a maximum of fifteen directors:40provided that a company may appoint more than fifteen directors after passing a special resolution:provided further that such class or classes of companies as may be prescribed, shall have at least one woman director(2) every company shall have at least one director who has stayed in india for a total period of not less than one hundred and eighty-two days in the previous calendar year45(3) every listed public company shall have at least one-third of the total number of directors as independent directors and the central government may prescribe the minimum number of independent directors in case of any class or classes of public companies510 15 20 25 30 35 40 45explanation—for the purposes of this sub-section, any fraction contained in such one-third number shall be rounded off as one(4) every company existing on or before the date of commencement of this act shall, within one year from such commencement or from the date of notification of the rules in this regard as may be applicable, comply with the requirements of the provisions of sub-section (3)(5) an independent director in relation to a company, means a director other than a managing director or a whole-time director or a nominee director,—(a) who, in the opinion of the board, is a person of integrity and possesses relevant expertise and experience; (b) (i) who is or was not a promoter of the company or its holding, subsidiary or associate company;(ii) who is not related to promoters or directors in the company, its holding, subsidiary or associate company;(c) who has or had no pecuniary relationship with the company, its holding, subsidiary or associate company, or their promoters, or directors, during the two immediately preceding financial years or during the current financial year;(d) none of whose relatives has or had pecuniary relationship or transaction with the company, its holding, subsidiary or associate company, or their promoters, or directors, amounting to two per cent or more of its gross turnover or total income or fifty lakh rupees or such higher amount as may be prescribed, whichever is lower, during the two immediately preceding financial years or during the current financial year;(e) who, neither himself nor any of his relatives— (i) holds or has held the position of a key managerial personnel or is or has been employee of the company or its holding, subsidiary or associate company in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed; (ii) is or has been an employee or proprietor or a partner, in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed, of—(a) a firm of auditors or company secretaries in practice or cost auditors of the company or its holding, subsidiary or associate company; or(b) any legal or a consulting firm that has or had any transaction with the company, its holding, subsidiary or associate company amounting to ten per cent or more of the gross turnover of such firm; (iii) holds together with his relatives two per cent or more of the total voting power of the company; or(iv) is a chief executive or director, by whatever name called, of any nonprofit organisation that receives twenty-five per cent or more of its receipts from the company, any of its promoters, directors or its holding, subsidiary or associate company or that holds two per cent or more of the total voting power of the company; or (f) who possesses such other qualifications as may be prescribed(6) every independent director shall at the first meeting of the board in which he participates as a director and thereafter at the first meeting of the board in every financial year or whenever there is any change in the circumstances which may affect his status as an independent director, give a declaration that he meets the criteria of independence as provided in sub-section (5)(7) the company and independent directors shall abide by the provisions specified in schedule iv5(8) subject to the provisions of section 198, an independent director shall not be entitled to any remuneration, other than a fee provided under sub-section (5) of section 197, reimbursement of expenses for participation in the board and other meetings and profit related commission as may be approved by the members(9) subject to the provisions of section 152, an independent director shall hold office for a term up to five consecutive years on the board of a company, but shall be eligible for reappointment on passing of a special resolution by the company and disclosure of such appointment in the board's report10(10) notwithstanding anything contained in sub-section (9), no independent director shall hold office for more than two consecutive terms, but such independent director shall be eligible for appointment after the expiration of three years of ceasing to become an independent director:15provided that an independent director shall not, during the said period of three years, be appointed in or be associated with the company in any other capacity, either directly or indirectlyexplanation—for the purposes of sub-sections (9) and (10), any tenure of an independent director on the date of commencement of this act shall not be counted as a term under those sub-sections20(11) notwithstanding anything contained in this act,—(i) an independent director;25(ii) a non-executive director not being promoter or key managerial personnel, shall be held liable, only in respect of such acts of omission or commission by a company which had occurred with his knowledge, attributable through board processes, and with his consent or connivance or where he had not acted diligently (12) the provisions of sub-sections (6) and (7) of section 152 in respect of retirement of directors by rotation shall not be applicable to appointment of independent directors30150 (1) subject to the provisions contained in sub-section (5) of section 149, an independent director may be selected from a data bank containing names, addresses and qualifications of persons who are eligible and willing to act as independent directors, maintained by any body, institute or association, as may by notified by the central government, having expertise in creation and maintenance of such data bank and put on their website for the use by the company making the appointment of such directors:manner of selection of independent directors and maintenance of databank of independent directors35provided that responsibility of exercising due diligence before selecting a person from the data bank referred to above, as an independent director shall lie with the company making such appointment40(2) the appointment of independent director shall be approved by the company in general meeting as provided in sub-section (2) of section 152 and the explanatory statement annexed to the notice of the general meeting called to consider the said appointment shall indicate the justification for choosing the appointee for appointment as independent director(3) the data bank referred to in sub-section (1), shall create and maintain data of persons willing to act as independent director in accordance with such rules as may be prescribed45(4) the central government may prescribe the manner and procedure of selection of independent directors who fulfil the qualifications and requirements specified under section 149151 a listed company may have one director elected by such small shareholders in such manner and with such terms and conditions as may be prescribedappointment of director elected by small shareholders50explanation—for the purposes of this section "small shareholders" means a shareholder holding shares of nominal value of not more than twenty thousand rupees or such other sum as may be prescribed5appointment of directors152 (1) where no provision is made in the articles of a company for the appointment of the first director, the subscribers to the memorandum who are individuals shall be deemed to be the first directors of the company until the directors are duly appointed and in case of a one person company an individual being member shall be deemed to be its first director until the director or directors are duly appointed by the member in accordance with the provisions of this section(2) save as otherwise expressly provided in this act, every director shall be appointed by the company in general meeting10(3) no person shall be appointed as a director of a company unless he has been allotted the director identification number under section 154(4) every person proposed to be appointed as a director by the company in general meeting or otherwise, shall furnish his director identification number and a declaration that he is not disqualified to become a director under this act15(5) a person appointed as a director shall not act as a director unless he gives his consent to hold the office as director and such consent has been filed with the registrar within thirty days of his appointment in such manner as may be prescribed:provided that in the case of appointment of an independent director in the general meeting, an explanatory statement for such appointment, attached to the notice for the general meeting, shall include a statement that in the opinion of the board, he fulfils the conditions specified in this act for such an appointment20(6) (a) unless the articles provide for the retirement of all directors at every annual general meeting, not less than two-thirds of the total number of directors of a public company shall—25(i) be persons whose period of office is liable to determination by retirement of directors by rotation; and(ii) save as otherwise expressly provided in this act, be appointed by the company in general meeting (b) the remaining directors in the case of any such company shall, in default of, and subject to any regulations in the articles of the company, also be appointed by the company in general meeting30(c) at the first annual general meeting of a public company held next after the date of the general meeting at which the first directors are appointed in accordance with clauses (a)and (b) and at every subsequent annual general meeting, one-third of such of the directors for the time being as are liable to retire by rotation, or if their number is neither three nor a multiple of three, then, the number nearest to one-third, shall retire from office35(d) the directors to retire by rotation at every annual general meeting shall be those who have been longest in office since their last appointment, but as between persons who became directors on the same day, those who are to retire shall, in default of and subject to any agreement among themselves, be determined by lot(e) at the annual general meeting at which a director retires as aforesaid, the company may fill up the vacancy by appointing the retiring director or some other person thereto5(7) (a) if the vacancy of the retiring director is not so filled-up and the meeting has not expressly resolved not to fill the vacancy, the meeting shall stand adjourned till the same day in the next week, at the same time and place, or if that day is a national holiday, till the next succeeding day which is not a holiday, at the same time and place(b) if at the adjourned meeting also, the vacancy of the retiring director is not filled up and that meeting also has not expressly resolved not to fill the vacancy, the retiring director shall be deemed to have been re-appointed at the adjourned meeting, unless—10(i) at that meeting or at the previous meeting a resolution for the re-appointment of such director has been put to the meeting and lost;(ii) the retiring director has, by a notice in writing addressed to the company or its board of directors, expressed his unwillingness to be so re-appointed;(iii) he is not qualified or is disqualified for appointment;15(iv) a resolution, whether special or ordinary, is required for his appointment or re-appointment by virtue of any provisions of this act; or(v) section 162 is applicable to the caseexplanation—in this section, the expression "retiring director" means a director retiring by rotation20153 every individual intending to be appointed as director of a company shall make an application for allotment of director identification number to the central government in such form and manner and along with such fees as may be prescribedapplication for allotment of director identification numberallotment of director identification number25154 the central government shall, within one month from the receipt of the application under section 153, allot a director identification number to an applicant in such manner as may be prescribed155 no individual, who has already been allotted a director identification number under section 154, shall apply for, obtain or possess another director identification number156 every existing director shall, within one month of the receipt of director identification number from the central government, intimate his director identification number to the company or all companies wherein he is a director30prohibition to obtain more than one director identification number director to intimate director identification numbercompany to inform director identification number to registrar35157 (1) every company shall, within fifteen days of the receipt of intimation under section 156, furnish the director identification number of all its directors to the registrar or any other officer or authority as may be specified by the central government with such fees as may be prescribed or with such additional fees as may be prescribed within the time specified under section 403 and every such intimation shall be furnished in such form and manner as may be prescribed5(2) if a company fails to furnish director identification number under sub-section (1), before the expiry of the period specified under section 403 with additional fee, the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with both10obligation to indicate director identification number158 every person or company, while furnishing any return, information or particulars as are required to be furnished under this act, shall mention the director identification number in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any directorpunishment for contravention15159 if any individual or director of a company, contravenes any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to fifty thousand rupees and where the contravention is a continuing one, with a further fine which may extend to five hundred rupees for every day after the first during which the contravention continues20right of persons other than retiring directors to stand for directorship25160 (1) a person who is not a retiring director shall, subject to the provisions of this act, be eligible for appointment to the office of a director at any general meeting, if he, or some member intending to propose him as a director, has, not less than fourteen days before the meeting, left at the registered office of the company, a notice in writing under his hand signifying his candidature as a director or, as the case may be, the intention of such member to propose him as a candidate for that office, along with the deposit of one lakh rupees or such higher amount as may be prescribed which shall be refunded to such person or, as the case may be, to the member, if the person proposed gets elected as a director or gets more than twenty-five per cent of total valid votes cast either on show of hands or on poll on such resolution (2) the company shall inform its members of the candidature of a person for the office of director under sub-section (1) in such manner as may be prescribed30161 (1) the articles of a company may confer on its board of directors the power toappoint any person, other than a person who fails to get appointed as a director in a general meeting, as an additional director at any time who shall hold office up to the date of the next annual general meeting or the last date on which the annual general meeting should have been held, whichever is earlierappointment of additional director, alternate director and nominee director35(2) the board of directors of a company may, if so authorised by its articles or by aresolution passed by the company in general meeting, appoint a person, not being a person holding any alternate directorship for any other director in the company, to act as an alternate director for a director during his absence for a period of not less than three months from india:40provided that no person shall be appointed as an alternate director for an independentdirector unless he is qualified to be appointed as an independent director under the provisions of this act:45provided further that an alternate director shall not hold office for a period longer thanthat permissible to the director in whose place he has been appointed and shall vacate the office if and when the director in whose place he has been appointed returns to india:provided also that if the term of office of the original director is determined before he so returns to india, any provision for the automatic re-appointment of retiring directors in default of another appointment shall apply to the original, and not to the alternate director5(3) subject to the articles of a company, the board may appoint any person as a director nominated by any institution in pursuance of the provisions of any law for the time being in force or of any agreement or by the central government or the state government by virtue of its shareholding in a government company10(4) in the case of a public company, if the office of any director appointed by the company in general meeting is vacated before his term of office expires in the normal course, the resulting casual vacancy may, in default of and subject to any regulations in the articles of the company, be filled by the board of directors at a meeting of the board:provided that any person so appointed shall hold office only up to the date up to which the director in whose place he is appointed would have held office if it had not been vacated15appointment of directors to be voted individually162 (1) at a general meeting of a company, a motion for the appointment of two or more persons as directors of the company by a single resolution shall not be moved unless a proposal to move such a motion has first been agreed to at the meeting without any vote being cast against it20(2) a resolution moved in contravention of sub-section (1) shall be void, whether or not any objection was taken when it was moved(3) a motion for approving a person for appointment, or for nominating a person for appointment as a director, shall be treated as a motion for his appointment25option to adopt principle of proportional representation for appointment of directors163 notwithstanding anything contained in this act, the articles of a company may provide for the appointment of not less than two-thirds of the total number of the directors of a company in accordance with the principle of proportional representation, whether by the single transferable vote or by a system of cumulative voting or otherwise and such appointments may be made once in every three years and casual vacancies of such directors shall be filled as provided in sub-section (4) of section 161164 (1) a person shall not be eligible for appointment as a director of a company, if —(a) he is of unsound mind and stands so declared by a competent court;30disqualifications for appointment of director(b) he is an undischarged insolvent; (c) he has applied to be adjudicated as an insolvent and his application is pending;35(d) he has been convicted by a court of any offence, whether involving moral turpitude or otherwise, and sentenced in respect thereof to imprisonment for not less than six months and a period of five years has not elapsed from the date of expiry of the sentence: provided that if a person has been convicted of any offence and sentenced in respect thereof to imprisonment for a period of seven years or more, he shall not be eligible to be appointed as a director in any company;(e) an order disqualifying him for appointment as a director has been passed by a court or tribunal and the order is in force;5(f) he has not paid any calls in respect of any shares of the company held by him, whether alone or jointly with others, and six months have elapsed from the last day fixed for the payment of the call;(g) he has been convicted of the offence dealing with related party transactions under section 188 at any time during the last preceding five years; or(h) he has not complied with sub-section (3) of section 152(2) no person who is or has been a director of a company which—10(a) has not filed financial statements or annual returns for any continuous periodof three financial years; or(b) has failed to repay the deposits accepted by it or pay interest thereon or to redeem any debentures on the due date or pay interest due thereon or pay any dividend declared and such failure to pay or redeem continues for one year or more,15shall be eligible to be re-appointed as a director of that company or appointed in other company for a period of five years from the date on which the said company fails to do so(3) a private company may by its articles provide for any disqualifications for appointment as a director in addition to those specified in sub-sections (1) and (2):20provided that the disqualifications referred to in clauses (d), (e) and (g) of sub-section(1) shall not take effect—(i) for thirty days from the date of conviction or order of disqualification; (ii) where an appeal or petition is preferred within thirty days as aforesaid against the conviction resulting in sentence or order, until expiry of seven days from the date on which such appeal or petition is disposed off; or25(iii) where any further appeal or petition is preferred against order or sentencewithin seven days, until such further appeal or petition is disposed offnumber of directorships165 (1) no person, after the commencement of this act, shall hold office as a director, including any alternate directorship, in more than twenty companies at the same time:30provided that the maximum number of public companies in which a person can be appointed as a director shall not exceed tenexplanation— for reckoning the limit of public companies in which a person can be appointed as director, directorship in private companies that are either holding or subsidiary company of a public company shall be included35(2) subject to the provisions of sub-section (1), the members of a company may, by special resolution, specify any lesser number of companies in which a director of the company may act as directors (3) any person holding office as director in companies more than the limits as specified in sub-section (1), immediately before the commencement of this act shall, within a period of one year from such commencement,—(a) choose not more than the specified limit of those companies, as companies in which he wishes to continue to hold the office of director;5(b) resign his office as director in the other remaining companies; and (c) intimate the choice made by him under clause (a), to each of the companies in which he was holding the office of director before such commencement and to the registrar having jurisdiction in respect of each such company10(4) any resignation made in pursuance of clause (b) of sub-section (3) shall become effective immediately on the despatch thereof to the company concerned(5) no such person shall act as director in more than the specified number of companies,—(a) after despatching the resignation of his office as director or non-executive director thereof, in pursuance of clause (b) of sub-section (3); or15(b) after the expiry of one year from the commencement of this act, whichever is earlier20(6) if a person accepts an appointment as a director in contravention of sub-section (1), he shall be punishable with fine which shall not be less than five thousand rupees but which may extend to twenty-five thousand rupees for every day after the first during which the contravention continuesduties of directors166 (1) subject to the provisions of this act, a director of a company shall act in accordance with the articles of the company25(2) a director of a company shall act in good faith in order to promote the objects of the company for the benefit of its members as a whole, and in the best interests of the company, its employees, the shareholders, the community and for the protection of environment(3) a director of a company shall exercise his duties with due and reasonable care, skill and diligence and shall exercise independent judgment30(4) a director of a company shall not involve in a situation in which he may have a direct or indirect interest that conflicts, or possibly may conflict, with the interest of the company(5) a director of a company shall not achieve or attempt to achieve any undue gain or advantage either to himself or to his relatives, partners, or associates and if such director is found guilty of making any undue gain under sub-section (7), he shall be liable to pay an amount equal to that gain to the company35(6) a director of a company shall not assign his office and any assignment so made shall be void40(7) if a director of the company contravenes the provisions of this section such director shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees167 (1) the office of a director shall become vacant in case—vacation of office of director(a) he incurs any of the disqualifications specified in section 164; (b) he absents himself from all the meetings of the board of directors held during a period of twelve months with or without seeking leave of absence of the board;5(c) he acts in contravention of the provisions of section 184 relating to entering into contracts or arrangements in which he is directly or indirectly interested;(d) he fails to disclose his interest in any contract or arrangement in which he is directly or indirectly interested, in contravention of the provisions of section 184;(e) he becomes disqualified by an order of a court or the tribunal;10(f) he is convicted by a court of any offence, whether involving moral turpitudeor otherwise and sentenced in respect thereof to imprisonment for not less than six months:provided that the office shall be vacated by the director even if he has filed an appeal against the order of such court;(g) he is removed in pursuance of the provisions of this act;15(h) he, having been appointed a director by virtue of his holding any office or other employment in the holding, subsidiary or associate company, ceases to hold such office or other employment in that company20(2) if a person, functions as a director even when he knows that the office of director held by him has become vacant on account of any of the disqualifications specified in subsection (1), he shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees, or with both25(3) where all the directors of a company vacate their offices under any of the disqualifications specified in sub-section (1), the promoter or, in his absence, the central government shall appoint the required number of directors who shall hold office till the directors are appointed by the company in the general meeting(4) a private company may, by its articles, provide any other ground for the vacation of the office of a director in addition to those specified in sub-section (1)302 of 1974(5) the provisions of this section shall not apply to a person whose case has been disposed of as plea bargaining provided under section 265e of chapter xxi-a of the code of criminal procedure, 1973resignation of director35168 (1) a director may resign from his office by giving a notice in writing to the company and the board shall on receipt of such notice take note of the same and the company shall intimate the registrar in such manner, within such time and in such form as may be prescribed and shall also place the fact of such resignation in the report of directors laid in the immediately following general meeting by the company:provided that a director shall also forward a copy of his resignation along with detailed reasons for the resignation to the registrar within thirty days of resignation in such manner as may be prescribed5(2) the resignation of a director shall take effect from the date on which the notice is received by the company or the date, if any, specified by the director in the notice, whichever is later:provided that the director who has resigned shall be liable even after his resignation for the offences which occurred during his tenure10 (3) where all the directors of a company resign from their offices, or vacate their offices under section 167, the promoter or, in his absence, the central government shall appoint the required number of directors who shall hold office till the directors are appointed by the company in general meetingremoval of directors15169 (1) a company may, by ordinary resolution, remove a director, not being a director appointed by the tribunal under section 242, before the expiry of the period of his office after giving him a reasonable opportunity of being heard:provided that nothing contained in this sub-section shall apply where the company has availed itself of the option given to it under section 163 to appoint not less than twothirds of the total number of directors according to the principle of proportional representation20(2) a special notice shall be required of any resolution, to remove a director under this section, or to appoint somebody in place of a director so removed, at the meeting at which he is removed:provided that such notice to remove a director shall be given by at least,—25(a) in the case a company having a share capital, by any member or members having not less than one-tenth of the total voting power or holding shares on which an aggregate sum of not less than five lakh rupees has been paid-up; and(b) in the case of any other company, by any member or members having not less than one-tenth of the total voting power30(3) on receipt of notice of a resolution to remove a director under this section, the company shall forthwith send a copy thereof to the director concerned, and the director, whether or not he is a member of the company, shall be entitled to be heard on the resolution at the meeting35(4) where notice has been given of a resolution to remove a director under this section and the director concerned makes with respect thereto representation in writing to the company and requests its notification to members of the company, the company shall, if the time permits it to do so,—(a) in any notice of the resolution given to members of the company, state the fact of the representation having been made; and40(b) send a copy of the representation to every member of the company to whom notice of the meeting is sent (whether before or after receipt of the representation by the company), and if a copy of the representation is not sent as aforesaid due to insufficient time or for the company's default, the director may without prejudice to his right to be heard orally require that the representation shall be read out at the meeting:5provided that copy of the representation need not be sent out and the representation need not be read out at the meeting if, on the application either of the company or of any other person who claims to be aggrieved, the tribunal is satisfied that the rights conferred by this sub-section are being abused to secure needless publicity for defamatory matter; and the tribunal may order the company's costs on the application to be paid in whole or in part by the director notwithstanding that he is not a party to it10 (5) a vacancy created by the removal of a director under this section may, if he hadbeen appointed by the company in general meeting or by the board, be filled by the appointment of another director in his place at the meeting at which he is removed, provided special notice of the intended appointment has been given under sub-section (2)15 (6) a director so appointed shall hold office till the date up to which his predecessor would have held office if he had not been removed(7) if the vacancy is not filled under sub-section (5), it may be filled as a casual vacancy in accordance with the provisions of this act:provided that the director who was removed from office shall not be re-appointed as a director by the board of directors(8) nothing in this section shall be taken—20(a) as depriving a person removed under this section of any compensation or damages payable to him in respect of the termination of his appointment as director as per the terms of contract or terms of his appointment as director, or of any other appointment terminating with that as director; or25(b) as derogating from any power to remove a director under other provisions ofthis act30170 (1) every company shall keep at its registered office a register containing such particulars of its directors and key managerial personnel as may be prescribed, which shall include the details of securities held by each of them in the company or its holding, subsidiary, subsidiary of company's holding company or associate companiesregister of directors and key managerial personnel and their shareholding (2) a return containing such particulars and documents as may be prescribed, of the directors and the key managerial personnel shall be filed with the registrar within thirty days from the appointment of every director and key managerial personnel, as the case may be, and within thirty days of any change taking place35171 (1) the register kept under sub-section (1) of section 170:—members' right to inspect(a) shall be open for inspection during business hours and the members shallhave a right to take extracts therefrom and copies thereof shall, on a request by the members, be provided to them free of cost within thirty days; and40(b) shall also be kept open for inspection at every annual general meeting of thecompany and shall be made accessible to any person attending the meeting(2) if any inspection as provided in clause (a) of sub-section (1) is refused, or if any copy required under that clause is not sent within thirty days from the date of receipt of such request, the registrar shall on an application made to him order immediate inspection and supply of copies required thereunder| punishment | 5 ||------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|| 172 | if a company contravenes any of the provisions of this chapter and for which no || specific punishment is provided therein, the company and every officer of the company who | || is in default shall be punishable with fine which shall not be less than fifty thousand rupees | || but which may extend to five lakh rupees | | chapter xii10 meetings of board and its powersmeetings of board173 (1) every company shall hold the first meeting of the board of directors withinthirty days of the date of its incorporation and thereafter hold a minimum number of four meetings of its board of directors every year in such a manner that not more than one hundred and twenty days shall intervene between two consecutive meetings of the board:15provided that the central government may, by notification, direct that the provisions of this sub-section shall not apply in relation to any class or description of companies or shall apply subject to such exceptions, modifications or conditions as may be specified in the notification20(2) the participation of directors in a meeting of the board may be either in person or through video conferencing or other audio visual means, as may be prescribed, which are capable of recording and recognising the participation of the directors and of recording and storing the proceedings of such meetings along with date and time:provided that the central government may, by notification, specify such matters which shall not be dealt with in a meeting through video conferencing or other audio visual means25(3) a meeting of the board shall be called by giving not less than seven days' notice in writing to every director at his address registered with the company and such notice shall be sent by hand delivery or by post or by electronic means:provided that a meeting of the board may be called at shorter notice to transact urgent business subject to the condition that at least one independent director, if any, shall be present at the meeting:30provided further that in case of absence of independent directors from such a meeting of the board, decisions taken at such a meeting shall be circulated to all the directors and shall be final only on ratification thereof by at least one independent director, if any(4) every officer of the company whose duty is to give notice under this section and who fails to do so shall be liable to a penalty of twenty-five thousand rupees35(5) a one person company, small company and dormant company shall be deemed to have complied with the provisions of this section if at least one meeting of the board of directors has been conducted in each half of a calendar year and the gap between the two meetings is not less than ninety days:40provided that nothing contained in this sub-section and in section 174 shall apply to one person company in which there is only one director on its board of directorsquorum for meetings of board174 (1) the quorum for a meeting of the board of directors of a company shall be onethird of its total strength or two directors, whichever is higher, and the participation of the directors by video conferencing or by other audio visual means shall also be counted for the purposes of quorum under this sub-section5(2) the continuing directors may act notwithstanding any vacancy in the board; but, if and so long as their number is reduced below the quorum fixed by the act for a meeting of the board, the continuing directors or director may act for the purpose of increasing the number of directors to that fixed for the quorum, or of summoning a general meeting of the company and for no other purpose10(3) where at any time the number of interested directors exceeds or is equal to twothirds of the total strength of the board of directors, the number of directors who are not interested directors and present at the meeting, being not less than two, shall be the quorum during such time15explanation—for the purposes of this sub-section, "interested director" means a director within the meaning of sub-section (2) of section 184(4) where a meeting of the board could not be held for want of quorum, then, unless the articles of the company otherwise provide, the meeting shall automatically stand adjourned to the same day at the same time and place in the next week or if that day is a national holiday, till the next succeeding day, which is not a national holiday, at the same time and place20explanation—for the purposes of this section,—(i) any fraction of a number shall be rounded off as one; (ii) "total strength" shall not include directors whose places are vacantpassing of resolution by circulation25175 (1) no resolution shall be deemed to have been duly passed by the board or by a committee thereof by circulation, unless the resolution has been circulated in draft, together with the necessary papers, if any, to all the directors, or members of the committee, as the case may be, at their addresses registered with the company in india by hand delivery or by post or by courier, or through such electronic means as may be prescribed and has been approved by a majority of the directors or members, who are entitled to vote on the resolution:30provided that, where not less than one-third of the total number of directors of the company for the time being require that any resolution under circulation must be decided at a meeting, the chairperson shall put the resolution to be decided at a meeting of the board(2) a resolution under sub-section (1) shall be noted at a subsequent meeting of the board or the committee thereof, as the case may be, and made part of the minutes of such meeting35176 no act done by a person as a director shall be deemed to be invalid, notwithstanding that it was subsequently noticed that his appointment was invalid by reason of any defect or disqualification or had terminated by virtue of any provision contained in this act or in the articles of the company:defects in appointment of directors not to invalidate actions taken40provided that nothing in this section shall be deemed to give validity to any act done by the director after his appointment has been noticed by the company to be invalid or to have terminatedaudit committee177 (1) the board of directors of every listed company and such other class or classes of companies, as may be prescribed, shall constitute an audit committee(2) the audit committee shall consist of a minimum of three directors with independent directors forming a majority:5provided that majority of members of audit committee including its chairperson shall be persons with ability to read and understand, the financial statement(3) every audit committee of a company existing immediately before the commencement of this act shall, within one year of such commencement, be reconstituted in accordance with sub-section (2)10(4) every audit committee shall act in accordance with the terms of reference specified in writing by the board which shall inter alia, include,— (i) the recommendation for appointment, remuneration and terms of appointmentof auditors of the company;15(ii) review and monitor the auditor's independence and performance, andeffectiveness of audit process;(iii) examination of the financial statement and the auditors' report thereon; (iv) approval or any subsequent modification of transactions of the companywith related parties;(v) scrutiny of inter-corporate loans and investments;20(vi) valuation of undertakings or assets of the company, wherever it is necessary; (vii) evaluation of internal financial controls and risk management systems; (viii) monitoring the end use of funds raised through public offers and relatedmatters25(5) the audit committee may call for the comments of the auditors about internal control systems, the scope of audit, including the observations of the auditors and review of financial statement before their submission to the board and may also discuss any related issues with the internal and statutory auditors and the management of the company30(6) the audit committee shall have authority to investigate into any matter in relation to the items specified in sub-section (4) or referred to it by the board and for this purpose shall have power to obtain professional advice from external sources and have full access to information contained in the records of the company(7) the auditors of a company and the key managerial personnel shall have a right to be heard in the meetings of the audit committee when it considers the auditor's report but shall not have the right to vote35(8) the board's report under sub-section (3) of section 134 shall disclose the composition of an audit committee and where the board had not accepted any recommendation of the audit committee, the same shall be disclosed in such report along with the reasons therefor(9) every listed company or such class or classes of companies, as may be prescribed, shall establish a vigil mechanism for directors and employees to report genuine concerns in such manner as may be prescribed5(10) the vigil mechanism under sub-section (9) shall provide for adequate safeguards against victimisation of persons who use such mechanism and make provision for direct access to the chairperson of the audit committee in appropriate or exceptional cases:provided that the details of establishment of such mechanism shall be disclosed by the company on its website, if any, and in the board's report10178 (1) the board of directors of every listed company and such other class or classes of companies, as may be prescribed shall constitute the nomination and remuneration committee consisting of three or more non-executive directors out of which not less than one half shall be independent directorsnomination and remuneration committee and stakeholders relationship committee15(2) the nomination and remuneration committee shall identify persons who are qualified to become directors and who may be appointed in senior management in accordance with the criteria laid down, recommend to the board their appointment and removal and shall carry out evaluation of every director's performance20(3) the nomination and remuneration committee shall formulate the criteria for determining qualifications, positive attributes and independence of a director and recommend to the board a policy, relating to the remuneration for the directors, key managerial personnel and other employees(4) the nomination and remuneration committee shall, while formulating the policy under sub-section (3) ensure that—25(a) the level and composition of remuneration is reasonable and sufficient to attract, retain and motivate directors of the quality required to run the company successfully;(b) relationship of remuneration to performance is clear and meets appropriate performance benchmarks; and30(c) remuneration to directors, key managerial personnel and senior management involves a balance between fixed and incentive pay reflecting short and long term performance objectives appropriate to the working of the company and its goals: provided that such policy shall be disclosed in the board's report35(5) the board of directors of a company which consists of more than one thousand shareholders, debenture-holders, deposit-holders and any other security holders at any time during a financial year shall constitute a stakeholders relationship committee consisting of a chairperson who shall be a non-executive director and such other members as may be decided by the board(6) the stakeholders relationship committee shall consider and resolve the grievances of security holders of the company(7) the chairperson of each of the committees constituted under this section or, in his absence, any other member of the committee authorised by him in this behalf shall attend the general meetings of the company5(8) in case of any contravention of the provisions of section 173 and this section, the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with both:provided that non-consideration of resolution of any grievance by the stakeholders relationship committee in good faith shall not constitute a contravention of this section10explanation— the expression ''senior management'' means personnel of the company who are members of its core management team excluding board of directors comprising all members of management one level below the executive directors, including the functional headspowers of board179 (1) the board of directors of a company shall be entitled to exercise all such powers, and to do all such acts and things, as the company is authorised to exercise and do:15provided that in exercising such power or doing such act or thing, the board shall be subject to the provisions contained in that behalf in this act, or in the memorandum or articles, or in any regulations not inconsistent therewith and duly made thereunder, including regulations made by the company in general meeting:provided further that the board shall not exercise any power or do any act or thing which is directed or required, whether under this act or by the memorandum or articles of the company or otherwise, to be exercised or done by the company in general meeting20(2) no regulation made by the company in general meeting shall invalidate any prior act of the board which would have been valid if that regulation had not been made(3) the board of directors of a company shall exercise the following powers on behalf of the company by means of resolutions passed at meetings of the board, namely:—(a) to make calls on shareholders in respect of money unpaid on their shares;25(b) to authorise buy-back of securities under section 68; (c) to issue securities, including debentures, whether in or outside india; (d) to borrow monies; (e) to invest the funds of the company; (f) to grant loans or give guarantee or provide security in respect of loans;30(g) to approve financial statement and the board's report; (h) to diversify the business of the company; (i) to approve amalgamation, merger or reconstruction; (j) to take over a company or acquire a controlling or substantial stake in anothercompany;35(k) any other matter which may be prescribed:provided that the board may, by a resolution passed at a meeting, delegate to any committee of directors, the managing director, the manager or any other principal officer of the company or in the case of a branch office of the company, the principal officer of the branch office, the powers specified in clauses (d) to (f) on such conditions as it may specify:405provided further that the acceptance by a banking company in the ordinary course of its business of deposits of money from the public repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise, or the placing of monies on deposit by a banking company with another banking company on such conditions as the board may prescribe, shall not be deemed to be a borrowing of monies or, as the case may be, a making of loans by a banking company within the meaning of this sectionexplanation i—nothing in clause (d) shall apply to borrowings by a banking company from other banking companies or from the reserve bank of india, the state bank of india or any other banks established by or under any act10explanation ii—in respect of dealings between a company and its bankers, the exerciseby the company of the power specified in clause (d) shall mean the arrangement made by thecompany with its bankers for the borrowing of money by way of overdraft or cash credit or otherwise and not the actual day-to-day operation on overdraft, cash credit or other accounts by means of which the arrangement so made is actually availed of15(4) nothing in this section shall be deemed to affect the right of the company in generalmeeting to impose restrictions and conditions on the exercise by the board of any of the powers specified in this section180 (1) the board of directors of a company shall exercise the following powers only with the consent of the company by a special resolution, namely:—restrictions on powers of board20(a) to sell, lease or otherwise dispose of the whole or substantially the whole ofthe undertaking of the company or where the company owns more than one undertaking, of the whole or substantially the whole of any of such undertakingsexplanation—for the purposes of this clause,—25(i) "undertaking" shall mean an undertaking in which the investment ofthe company exceeds twenty per cent of its net worth as per the audited balance sheet of the preceding financial year or an undertaking which generates twenty per cent of the total income of the company during the previous financial year;30(ii) the expression "substantially the whole of the undertaking" in anyfinancial year shall mean twenty per cent or more of the value of the undertaking as per the audited balance sheet of the preceding financial year; (b) to invest otherwise in trust securities the amount of compensation receivedby it as a result of any merger or amalgamation;35(c) to borrow money, where the money to be borrowed, together with the money already borrowed by the company will exceed aggregate of its paid-up share capital and free reserves, apart from temporary loans obtained from the company's bankers in the ordinary course of business:provided that the acceptance by a banking company, in the ordinary course of its business, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise, shall not be deemed to be a borrowing of monies by the banking company within the meaning of this clause4045explanation—for the purposes of this clause, the expression "temporary loans"means loans repayable on demand or within six months from the date of the loan such as short-term, cash credit arrangements, the discounting of bills and the issue of other short-term loans of a seasonal character, but does not include loans raised for the purpose of financial expenditure of a capital nature;(d) to remit, or give time for the repayment of, any debt due from a director(2) every special resolution passed by the company in general meeting in relation to the exercise of the powers referred to in clause (c) of sub-section (1) shall specify the total amount up to which monies may be borrowed by the board of directors5(3) nothing contained in clause (a) of sub-section (1) shall affect—(a) the title of a buyer or other person who buys or takes on lease any property, investment or undertaking as is referred to in that clause, in good faith; or(b) the sale or lease of any property of the company where the ordinary business of the company consists of, or comprises, such selling or leasing10(4) any special resolution passed by the company consenting to the transaction as is referred to in clause (a) of sub-section (1) may stipulate such conditions as may be specified in such resolution, including conditions regarding the use, disposal or investment of the sale proceeds which may result from the transactions:15provided that this sub-section shall not be deemed to authorise the company to effect any reduction in its capital except in accordance with the provisions contained in this act(5) no debt incurred by the company in excess of the limit imposed by clause (c) of sub-section (1) shall be valid or effectual, unless the lender proves that he advanced the loan in good faith and without knowledge that the limit imposed by that clause had been exceeded20181 the board of directors of a company may contribute to bona fide charitable and other funds:company to contribute to bona fide and charitable funds, etcprovided that prior permission of the company in general meeting shall be required for such contribution in case any amount the aggregate of which, in any financial year, exceed five per cent of its average net profits for the three immediately preceding financial years25182 (1) notwithstanding anything contained in any other provision of this act, a company, other than a government company and a company which has been in existence for less than three financial years, may contribute any amount directly or indirectly to any political party:prohibitions and restrictions regarding political contributions30provided that the amount referred to in sub-section (1) or, as the case may be, the aggregate of the amount which may be so contributed by the company in any financial year shall not exceed seven and a half per cent of its average net profits during the three immediately preceding financial years:35provided further that no such contribution shall be made by a company unless a resolution authorising the making of such contribution is passed at a meeting of the board of directors and such resolution shall, subject to the other provisions of this section, be deemed to be justification in law for the making and the acceptance of the contribution authorised by it(2) without prejudice to the generality of the provisions of sub-section (1),—40(a) a donation or subscription or payment caused to be given by a company on its behalf or on its account to a person who, to its knowledge, is carrying on any activity which, at the time at which such donation or subscription or payment was given or made, can reasonably be regarded as likely to affect public support for a political party shall also be deemed to be contribution of the amount of such donation, subscription or payment to such person for a political purpose;5(b) the amount of expenditure incurred, directly or indirectly, by a company on an advertisement in any publication, being a publication in the nature of a souvenir, brochure, tract, pamphlet or the like, shall also be deemed,—(i) where such publication is by or on behalf of a political party, to be acontribution of such amount to such political party, and(ii) where such publication is not by or on behalf of, but for the advantageof a political party, to be a contribution for a political purpose10(3) every company shall disclose in its profit and loss account any amount or amounts contributed by it to any political party during the financial year to which that account relates, giving particulars of the total amount contributed and the name of the party to which such amount has been contributed15(4) if a company makes any contribution in contravention of the provisions of this section, the company shall be punishable with fine which may extend to five times the amount so contributed and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months and with fine which may extend to five times the amount so contributed20explanation—for the purposes of this section, "political party" means a political party registered under section 29a of the representation of the people act, 195143 of 195125power of board and other persons to make contributions to national defence fund, etc 183 (1) the board of directors of any company or any person or authority exercising the powers of the board of directors of a company, or of the company in general meeting, may, notwithstanding anything contained in sections 180, 181 and section 182 or any other provision of this act or in the memorandum, articles or any other instrument relating to the company, contribute such amount as it thinks fit to the national defence fund or any other fund approved by the central government for the purpose of national defence(2) every company shall disclose in its profits and loss account the total amount or amounts contributed by it to the fund referred to in sub-section (1) during the financial year to which the amount relates30disclosure of interest by director184 (1) every director shall at the first meeting of the board in which he participates as a director and thereafter at the first meeting of the board in every financial year or whenever there is any change in the disclosures already made, then at the first board meeting held after such change, disclose his concern or interest in any company or companies or bodies corporate, firms, or other association of individuals which shall include the shareholding, in such manner as may be prescribed35(2) every director of a company who is in any way, whether directly or indirectly, concerned or interested in a contract or arrangement or proposed contract or arrangement entered into or to be entered into—40(a) with a body corporate in which such director or such director in association with any other director, holds more than two per cent shareholding of that body corporate, or is a promoter, manager, chief executive officer of that body corporate; or(b) with a firm or other entity in which, such director is a partner, owner or member, as the case may be, shall disclose the nature of his concern or interest at the meeting of the board in which the contract or arrangement is discussed and shall not participate in such meeting:5provided that where any director who is not so concerned or interested at the time of entering into such contract or arrangement, he shall, if he becomes concerned or interested after the contract or arrangement is entered into, disclose his concern or interest forthwith when he becomes concerned or interested or at the first meeting of the board held after he becomes so concerned or interested10(3) a contract or arrangement entered into by the company without disclosure under sub-section (2) or with participation by a director who is concerned or interested in any way, directly or indirectly, in the contract or arrangement, shall be voidable at the option of the company15(4) if a director of the company contravenes the provisions of sub-section (1) or subsection (2), such director shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than fifty thousand rupees but which may extend to one lakh rupees, or with both(5) nothing in this section—20(a) shall be taken to prejudice the operation of any rule of law restricting a director of a company from having any concern or interest in any contract or arrangement with the company; (b) shall apply to any contract or arrangement entered into or to be entered into between two companies where any of the directors of the one company or two or more of them together holds or hold not more than two per cent of the paid-up share capital in the other company25loan to directors, etc185 (1) save as otherwise provided in this act, no company shall, directly or indirectly, advance any loan, including any loan represented by a book debt, to any of its directors or to any other person in whom the director is interested or give any guarantee or provide any security in connection with any loan taken by him or such other person:provided that nothing contained in this sub-section shall apply to—30(a) the giving of any loan to a managing or whole-time director—(i) as a part of the conditions of service extended by the company to all its employees; or(ii) pursuant to any scheme approved by the members by a special resolution; or35(b) a company which in the ordinary course of its business provides loans or gives guarantees or securities for the due repayment of any loan and in respect of such loans an interest is charged at a rate not less than the bank rate declared by the reserve bank of indiaexplanation—for the purposes of this section, the expression "to any other person in whom director is interested" means—5(a) any director of the lending company, or of a company which is itsholding company or any partner or relative of any such director;(b) any firm in which any such director or relative is a partner; (c) any private company of which any such director is a director or member; (d) any body corporate at a general meeting of which not less than twenty-10five per cent of the total voting power may be exercised or controlled by any such director, or by two or more such directors, together; or(e) any body corporate, the board of directors, managing director ormanager, whereof is accustomed to act in accordance with the directions or instructions of the board, or of any director or directors, of the lending company15(2) if any loan is advanced or a guarantee or security is given or provided in contravention of the provisions of sub-section (1), the company shall be punishable with fine which shall not be less than five lakh rupees but which may extend to twenty-five lakh rupees, and the director or the other person to whom any loan is advanced or guarantee or20security is given or provided in connection with any loan taken by him or the other person, shall be punishable with imprisonment which may extend to six months or with fine which shall not be less than five lakh rupees but which may extend to twenty-five lakh rupees, or with both186 (1) without prejudice to the provisions contained in this act, a company shall loan and investment by company25unless otherwise prescribed, make investment through not more than two layers of investment companies:provided that the provisions of this sub-section shall not affect,—(i) a company from acquiring any other company incorporated in a country outside india if such other company has investment subsidiaries beyond two layers as per the laws of such country;30(ii) a subsidiary company from having any investment subsidiary for the purposes of meeting the requirements under any law or under any rule or regulation framed under any law for the time being in force (2) no company shall directly or indirectly —(a) give any loan to any person or other body corporate;(b) give any guarantee or provide security in connection with a loan to any otherbody corporate or person; and(c) acquire by way of subscription, purchase or otherwise, the securities of any other body corporate,5exceeding sixty per cent of its paid-up share capital, free reserves and securities premium account or one hundred per cent of its free reserves and securities premium account, whichever is more(3) where the giving of any loan or guarantee or providing any security or the acquisition under sub-section (2) exceeds the limits specified in that sub-section, prior approval by means of a special resolution passed at a general meeting shall be necessary10(4) the company shall disclose to the members in the financial statement the full particulars of the loans given, investment made or guarantee given or security provided and the purpose for which the loan or guarantee or security is proposed to be utilised by the recipient of the loan or guarantee or security15(5) no investment shall be made or loan or guarantee or security given by the company unless the resolution sanctioning it is passed at a meeting of the board with the consent of all the directors present at the meeting and the prior approval of the public financial institution concerned where any term loan is subsisting, is obtained:20provided that prior approval of a public financial institution shall not be required where the aggregate of the loans and investments so far made, the amount for which guarantee or security so far provided to or in all other bodies corporate, along with the investments, loans, guarantee or security proposed to be made or given does not exceed the limit as specified in sub-section (2), and there is no default in repayment of loan instalments or payment of interest thereon as per the terms and conditions of such loan to the public financial institution15 of 199225(6) no company, which is registered under section 12 of the securities and exchange board of india act, 1992 and covered under such class or classes of companies as may be prescribed, shall take inter-corporate loan or deposits exceeding the prescribed limit and such company shall furnish in its financial statement the details of the loan or deposits302 of 1934(7) no loan shall be given under this section at a rate of interest lower than the prevailing bank rate being the standard rate made public under section 49 of the reserve bank of india act, 1934(8) no company which is in default in the repayment of any deposits accepted before or after the commencement of this act or in payment of interest thereon, shall give any loan or give any guarantee or provide any security or make an acquisition till such default is subsisting35(9) every company giving loan or giving a guarantee or providing security or making an acquisition under this section shall keep a register which shall contain such particulars and shall be maintained in such manner as may be prescribed(10) the register referred to in sub-section (9) shall be kept at the registered office of the company and —(a) shall be open to inspection at such office; and(b) extracts may be taken therefrom by any member, and copies thereof may be furnished to any member of the company on payment of such fees as may be prescribed (11) nothing contained in this section, except sub-section (1), shall apply—5(a) to a loan made, guarantee given or security provided by a banking companyor an insurance company or a housing finance company in the ordinary course of its business or a company engaged in the business of financing of companies or ofproviding infrastructural facilities; (b) to any acquisition —102 of 1934(i) made by a non-banking financial company registered underchapter iiib of the reserve bank of india act, 1934 and whose principal business is acquisition of securities:provided that exemption to non-banking financial company shall be inrespect of its investment and lending activities;15(ii) made by a company whose principal business is the acquisition ofsecurities;(iii) of shares allotted in pursuance of clause (a) of sub-section (1) ofsection 62 (12) the central government may make rules for the purposes of this section20(13) if a company contravenes the provisions of this section, the company shall bepunishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to two years and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupeesexplanation—for the purposes of this section,—25(a) the expression "investment company" means a company whose principal business is the acquisition of shares, debentures or other securities;(b) the expression "infrastructure facilities" means the facilities specified in schedule vi30187 (1) all investments made or held by a company in any property, security or otherasset shall be made and held by it in its own name:investments of company to be held in its own name35provided that the company may hold any shares in its subsidiary company in the name of any nominee or nominees of the company, if it is necessary to do so, to ensure that the number of members of the subsidiary company is not reduced below the statutory limit(2) nothing in this section shall be deemed to prevent a company—(a) from depositing with a bank, being the bankers of the company, any shares or securities for the collection of any dividend or interest payable thereon; or(b) from depositing with, or transferring to, or holding in the name of, the state bank of india or a scheduled bank, being the bankers of the company, shares or securities, in order to facilitate the transfer thereof:5provided that if within a period of six months from the date on which the shares or securities are transferred by the company to, or are first held by the company in the name of, the state bank of india or a scheduled bank as aforesaid, no transfer of such shares or securities takes place, the company shall, as soon as practicable after the expiry of that period, have the shares or securities re-transferred to it from the state bank of india or the scheduled bank or, as the case may be, again hold the shares or securities in its own name; or10(c) from depositing with, or transferring to, any person any shares or securities, by way of security for the repayment of any loan advanced to the company or the performance of any obligation undertaken by it;(d) from holding investments in the name of a depository when such investments are in the form of securities held by the company as a beneficial owner1520(3) where in pursuance of clause (d) of sub-section (2), any shares or securities in which investments have been made by a company are not held by it in its own name, the company shall maintain a register which shall contain such particulars as may be prescribed and such register shall be open to inspection by any member or debenture-holder of the company without any charge during business hours subject to such reasonable restrictions as the company may by its articles or in general meeting impose25(4) if a company contravenes the provisions of this section, the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with bothrelated party transactions188 (1) except with the consent of the board of directors given by a resolution at a meeting of the board and subject to such conditions as may be prescribed, no company shall enter into any contract or arrangement with a related party with respect to—30(a) sale, purchase or supply of any goods or materials;| ( | b | ) selling or otherwise disposing of, or buying, property of any kind; ||--------------------------------------------------|------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|| ( | c | ) leasing of property of any kind; || ( | d | ) availing or rendering of any services; || 35 | | || ( | e | ) appointment of any agent for purchase or sale of goods, materials, services || or property; | | || (f) | such related party's appointment to any office or place of profit in the company, | || its subsidiary company or associate company; and | | |(g) underwriting the subscription of any securities or derivatives thereof, of the company:5provided that no contract or arrangement, in the case of a company having a paid-up share capital of not less than such amount, or transactions not exceeding such sums, as may be prescribed, shall be entered into except with the prior approval of the company by a special resolution:provided further that no member of the company shall vote on such special resolution, to approve any contract or arrangement which may be entered into by the company, if such member is a related party:10provided also that nothing in this sub-section shall apply to any transactions entered into by the company in its ordinary course of business other than transactions which are not on an arm's length basisexplanation— in this sub-section,—(a) the expression "office or place of profit" means any office or place—15(i) where such office or place is held by a director, if the director holding itreceives from the company anything by way of remuneration over and above the remuneration to which he is entitled as director, by way of salary, fee, commission, perquisites, any rent-free accommodation, or otherwise;20(ii) where such office or place is held by an individual other than a directoror by any firm, private company or other body corporate, if the individual, firm, private company or body corporate holding it receives from the company anything by way of remuneration, salary, fee, commission, perquisites, any rent-free accommodation, or otherwise;25(b) the expression "arm's length transaction" means a transaction between tworelated parties that is conducted as if they were unrelated, so that there is no conflict of interest(2) every contract or arrangement entered into under sub-section (1) shall be referred to in the board's report to the shareholders along with the justification for entering into such contract or arrangement30 35(3) where any contract or arrangement is entered into by a director or any other employee, without obtaining the consent of the board or approval by a special resolution in the general meeting under sub-section (1) and if it is not ratified by the board or, as the case may be, by the shareholders at a meeting within three months from the date on which such contract or arrangement was entered into, such contract or arrangement shall be voidable at the option of the board and if the contract or arrangement is with a related party to any director, or is authorised by any other director, the directors concerned shall indemnify the company against any loss incurred by it40(4) without prejudice to anything contained in sub-section (3), it shall be open to the company to proceed against a director or any other employee who had entered into such contract or arrangement in contravention of the provisions of this section for recovery of any loss sustained by it as a result of such contract or arrangement(5) any director or any other employee of a company, who had entered into or authorised the contract or arrangement in violation of the provisions of this section shall,—45(i) in case of listed company, be punishable with imprisonment for a term whichmay extend to one year or with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees, or with both; and(ii) in case of any other company, be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees5register of contracts or arrangements in which directors are interested189 (1) every company shall keep one or more registers giving separately the particulars of all contracts or arrangements to which sub-section (2) of section 184 or section 188applies, in such manner and containing such particulars as may be prescribed and after entering the particulars, such register or registers shall be placed before the next meeting of the board and signed by all the directors present at the meeting10(2) every director or key managerial personnel shall, within a period of thirty days of his appointment, or relinquishment of his office, as the case may be, disclose to the company the particulars specified in sub-section (1) of section 184 relating to his concern or interest in the other associations which are required to be included in the register under that sub-section(3) every director shall give notice in writing to the company at a meeting of the board, of such matters relating to himself as may be necessary for the purpose of enabling the company to comply with the provisions of this section15(4) the register referred to in sub-section (1) shall be kept at the registered office of the company and it shall be open for inspection at such office during business hours and extracts may be taken therefrom, and copies thereof as may be required by any member of the company shall be furnished by the company to such extent, in such manner, and on payment of such fees as may be prescribed20(5) the register to be kept under this section shall also be produced at the commencement of every annual general meeting of the company and shall remain open and accessible during the continuance of the meeting to any person having the right to attend the meeting(6) nothing contained in sub-section (1) shall apply to any contract or arrangement—25(a) for the sale, purchase or supply of any goods, materials or services if the value of such goods and materials or the cost of such services does not exceed five lakh rupees in the aggregate in any year; or(b) by a banking company for the collection of bills in the ordinary course of its business30(7) every director who fails to comply with the provisions of this section and the rules made thereunder shall be liable to a penalty of twenty-five thousand rupees190 (1) every company shall keep at its registered office,—(a) where a contract of service with a managing or whole-time director is in writing, a copy of the contract; or contract of employment with managing or whole-time directors35(b) where such a contract is not in writing, a written memorandum setting out its terms (2) the copies of the contract or the memorandum kept under sub-section (1) shall be open to inspection by any member of the company without payment of fee(3) if any default is made in complying with the provisions of sub-section (1) or sub-section (2), the company shall be liable to a penalty of twenty-five thousand rupees and every officer of the company who is in default shall be liable to a penalty of five thousand rupees for each default5(4) the provisions of this section shall not apply to a private company 191 (1) no director of a company shall, in connection with—(a) the transfer of the whole or any part of any undertaking or property of the company; or10(b) the transfer to any person of all or any of the shares in a company being a transfer resulting from —(i) an offer made to the general body of shareholders;payment to director for loss of office, etc, in connection with transfer of undertaking, property orshares(ii) an offer made by or on behalf of some other body corporate with a view to a company becoming a subsidiary company of such body corporate or a subsidiary company of its holding company;15(iii) an offer made by or on behalf of an individual with a view to his obtaining the right to exercise, or control the exercise of, not less than one-third of the total voting power at any general meeting of the company; or20 25(iv) any other offer which is conditional on acceptance to a given extent, receive any payment by way of compensation for loss of office or as consideration for retirement from office, or in connection with such loss or retirement from such company or from the transferee of such undertaking or property, or from the transferees of shares or from any other person, not being such company, unless particulars as may be prescribed with respect to the payment proposed to be made by such transferee or person, including the amount thereof, have been disclosed to the members of the company and the proposal has been approved by the company in general meeting30(2) nothing in sub-section (1) shall affect any payment made by a company to a managing director or whole-time director or manager of the company by way of compensation for loss of office or as consideration for retirement from office or in connection with such loss or retirement subject to limits or priorities, as may be prescribed(3) if the payment under sub-section (1) or sub-section (2) is not approved for want of quorum either in a meeting or an adjourned meeting, the proposal shall not be deemed to have been approved35(4) where a director of a company receives payment of any amount in contravention of sub-section (1) or the proposed payment is made before it is approved in the meeting, the amount so received by the director shall be deemed to have been received by him in trust for the company40(5) if a director of the company contravenes the provisions of this section, such director shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees(6) nothing in this section shall be taken to prejudice the operation of any law requiring disclosure to be made with respect to any payment received under this section or such other like payments made to a director192 (1) no company shall enter into an arrangement by which —restriction on non-cash transactions involving directors(a) a director of the company or its holding, subsidiary or associate company ora person connected with him acquires or is to acquire assets for consideration other than cash, from the company; or5(b) the company acquires or is to acquire assets for consideration other thancash, from such director or person so connected,unless prior approval for such arrangement is accorded by a resolution of the company in general meeting and if the director or connected person is a director of its holding company, approval under this sub-section shall also be required to be obtained by passing a resolution in general meeting of the holding company10(2) the notice for approval of the resolution by the company or holding company in general meeting under sub-section (1) shall include the particulars of the arrangement along with the value of the assets involved in such arrangement duly calculated by a registered valuer15(3) any arrangement entered into by a company or its holding company in contravention of the provisions of this section shall be voidable at the instance of the company unless—| ( | a | ) the restitution of any money or other consideration which is the subject- ||--------------------------------------------------------------------------------------|-----|-------------------------------------------------------------------------------|| matter of the arrangement is no longer possible and the company has been indemnified | | || by any other person for any loss or damage caused to it; or | | || 20 | | || ( | b | ) any rights are acquired || contravention of the provisions of this section by any other person | | || contract by | | || one person | | || company | | || 25 | | |193 (1) where one person company limited by shares or by guarantee enters into a contract with the sole member of the company who is also the director of the company, the company shall, unless the contract is in writing, ensure that the terms of the contract or offer are contained in a memorandum or are recorded in the minutes of the first meeting of the board of directors of the company held next after entering into contract:provided that nothing in this sub-section shall apply to contracts entered into by the company in the ordinary course of its business30(2) the company shall inform the registrar about every contract entered into by the company and recorded in the minutes of the meeting of its board of directors under sub-section (1) within a period of fifteen days of the date of approval by the board of directors194 (1) no director of a company or any of its key managerial personnel shall buy in the company, or in its holding, subsidiary or associate company—35| ( ||-----------------------------------------------------------------------------------------|| within a specified time, of a specified number of relevant shares or a specified amount || of relevant debentures; or |prohibition on forward dealings in securities of company by director or key managerial personnel| ( ||--------------------------------------------------------------------------------------------|| price and within a specified time, of a specified number of relevant shares or a specified || amount of relevant debentures |40(2) if a director or any key managerial personnel of the company contravenes the provisions of sub-section (1), such director or key managerial personnel shall be punishable with imprisonment for a term which may extend to two years or with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees, or with both5(3) where a director or other key managerial personnel acquires any securities in contravention of sub-section (1), he shall, subject to the provisions contained in sub-section (2), be liable to surrender the same to the company and the company shall not register the securities so acquired in his name in the register, and if they are in dematerialised form, it shall inform the depository not to record such acquisition and such securities, in both the cases, shall continue to remain in the names of the transferors10explanation—for the purposes of this section, ''relevant shares'' and ''relevant debentures'' mean shares and debentures of the company in which the concerned person is a whole-time director or other key managerial personnel or shares and debentures of its holding and subsidiary companies 195 (1) no person including any director or key managerial personnel of a company shall enter into insider trading:prohibition on insider trading of securitiesprovided that nothing contained in this sub-section shall apply to any communication required in the ordinary course of business or profession or employment or under any lawexplanation—for the purposes of this section,—15(a) "insider trading" means—20(i) an act of subscribing, buying, selling, dealing or agreeing to subscribe, buy, sell or deal in any securities by any director or key managerial personnel or any other officer of a company either as principal or agent if such director or key managerial personnel or any other officer of the company is reasonably expected to have access to any non-public price sensitive information in respect of securities of company; or(ii) an act of counselling about procuring or communicating directly or indirectly any non-public price-sensitive information to any person;25(b) "price-sensitive information" means any information which relates, directly or indirectly, to a company and which if published is likely to materially affect the price of securities of the company30(2) if any person contravenes the provisions of this section, he shall be punishable with imprisonment for a term which may extend to five years or with fine which shall not be less than five lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of insider trading, whichever is higher, or with both chapter xiii appointment and remuneration of managerial personnel35196 (1) no company shall appoint or employ at the same time a managing director and a manager(2) no company shall appoint or re-appoint any person as its managing director, whole-time director or manager for a term exceeding five years at a time:provided that no re-appointment shall be made earlier than one year before the expiry of his term40(3) no company shall appoint or continue the employment of any person as managing director, whole-time director or manager who —(a) is below the age of twenty-one years or has attained the age of seventy years:45provided that appointment of a person who has attained the age of seventyyears may be made by passing a special resolution in which case the explanatory statement annexed to the notice for such motion shall indicate the justification for appointing such person;(b) is an undischarged insolvent or has at any time been adjudged as an insolvent; (c) has at any time suspended payment to his creditors or makes, or has at any time made, a composition with them; or5(d) has at any time been convicted by a court of an offence and sentenced for a period of more than one month10 (4) subject to the provisions of section 197 and schedule v, a managing director, whole-time director or manager shall be appointed and the terms and conditions of such appointment and remuneration payable be approved by the board of directors at a meeting which shall be subject to approval by a special resolution at the next general meeting of the company and by the central government in case such appointment is at variance to the conditions specified in that schedule:provided that a notice convening board or general meeting for considering such appointment shall include the terms and conditions of such appointment, remuneration payable and such other matters including interest, of a director or directors in such appointments, if any:15provided further that a return in the prescribed form shall be filed within sixty days of such appointment with the registrar(5) subject to the provisions of this act, where an appointment of a managing director, whole-time director or manager is not approved by the company at a general meeting, any act done by him before such approval shall not be deemed to be invalid20 25197 (1) the total managerial remuneration payable by a public company, to its directors, including managing director and whole-time director, and its manager in respect of any financial year shall not exceed eleven per cent of the net profits of that company for that financial year computed in the manner laid down in section 198 except that the remuneration of the directors shall not be deducted from the gross profits:overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits provided that the company in general meeting may, with the approval of the central government, authorise the payment of remuneration exceeding eleven per cent of the net profits of the company, subject to the provisions of schedule v: provided further that, except with the approval of the company in general meeting,—30(i) the remuneration payable to any one managing director; or whole-time director or manager shall not exceed five per cent of the net profits of the company and if there is more than one such director remuneration shall not exceed ten per cent of the net profits to all such directors and manager taken together;35(ii) the remuneration payable to directors who are neither managing directors nor whole-time directors shall not exceed,— (a) one per cent of the net profits of the company, if there is a managing or whole-time director or manager;(b) three per cent of the net profits in any other case(2) the percentages aforesaid shall be exclusive of any fees payable to directors under sub-section (5)40 45(3) notwithstanding anything contained in sub-sections (1) and (2), but subject to the provisions of schedule v, if, in any financial year, a company has no profits or its profits are inadequate, the company shall not pay to its directors, including any managing or wholetime director or manager, by way of remuneration any sum exclusive of any fees payable to directors under sub-section (5) hereunder except in accordance with the provisions of schedule v and if it is not able to comply with such provisions, with the previous approval of the central government5(4) the remuneration payable to the directors of a company, including any managing or whole-time director or manager, shall be determined, in accordance with and subject to the provisions of this section, either by the articles of the company, or by a resolution or, if the articles so require, by a special resolution, passed by the company in general meeting and the remuneration payable to a director determined aforesaid shall be inclusive of the remuneration payable to him for the services rendered by him in any other capacity:provided that any remuneration for services rendered by any such director in other capacity shall not be so included if—(a) the services rendered are of a professional nature; and10(b) in the opinion of the nomination and remuneration committee, if the company is covered under sub-section (1) of section 178, or the board of directors in other cases, the director possesses the requisite qualification for the practice of the profession15(5) a director may receive remuneration by way of fee for attending meetings of the board or committee thereof or for any other purpose whatsoever as may be decided by the board:provided that the amount of such fees shall not exceed the amount as may be prescribed: provided further that different fees for different classes of companies and fees in respect of independent director may be such as may be prescribed20(6) a director or manager may be paid remuneration either by way of a monthly payment or at a specified percentage of the net profits of the company or partly by one way and partly by the other25(7) notwithstanding anything contained in any other provision of this act but subject to the provisions of this section, an independent director shall not be entitled to any stock option and may receive remuneration only by way of commission or fees payable under sub-section (5)(8) the net profits for the purposes of this section shall be computed in the manner referred to in section 19830(9) if any director draws or receives, directly or indirectly, by way of remuneration any such sums in excess of the limit prescribed by this section or without the prior sanction of the central government, where it is required, he shall refund such sums to the company and until such sum is refunded, hold it in trust for the company(10) the company shall not waive the recovery of any sum refundable to it under sub-section (9) unless permitted by the central government35(11) in cases where schedule v is applicable on grounds of no profits or inadequate profits, any provision relating to the remuneration of any director which purports to increase or has the effect of increasing the amount thereof, whether the provision be contained in the company's memorandum or articles, or in an agreement entered into by it, or in any resolution passed by the company in general meeting or its board, shall not have any effect unless such increase is in accordance with the conditions specified in that schedule and if such conditions are not being complied, the approval of the central government had been obtained40(12) every listed company shall disclose in the board's report, the ratio of the remuneration of each director to the median employee's remuneration and such other details as may be prescribed45(13) where any insurance is taken by a company on behalf of its managing director, whole-time director, manager, chief executive officer, chief financial officer or company secretary for indemnifying any of them against any liability in respect of any negligence, default, misfeasance, breach of duty or breach of trust for which they may be guilty in relation to the company, the premium paid on such insurance shall not be treated as part of the remuneration payable to any such personnel:provided that if such person is proved to be guilty, the premium paid on such insurance shall be treated as part of the remuneration5(14) subject to the provisions of this section, any director who is in receipt of any commission from the company and who is a managing or whole-time director of the company shall not be disqualified from receiving any remuneration or commission from any holding company or subsidiary company of such company subject to its disclosure by the company in the board's report10 15(15) without prejudice to any liability incurred under the provisions of this act or any other law for the time being in force, where a company is required to re-state its financial statement due to fraud or non-compliance with any requirement under this act and the rules made thereunder, the company shall recover from any past or present managing director or whole-time director or manager who, during the period for which the financial statements are required to be re-stated, the remuneration received (including stock option) arisen due to such statement or non-compliance in excess of what would have been paid to the managing director, whole-time director or manager under such re-stated financial statements(16) if any person contravenes the provisions of this section, he shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees20calculation of profits198 (1) in computing the net profits of a company in any financial year for the purpose of section 197,—(a) credit shall be given for the sums specified in sub-section (2), and credit shall not be given for those specified in sub-section (3); and25(b) the sums specified in sub-section (4) shall be deducted, and those specified in sub-section (5) shall not be deducted30(2) in making the computation aforesaid, credit shall be given for the bounties and subsidies received from any government, or any public authority constituted or authorised in this behalf, by any government, unless and except in so far as the central government otherwise directs(3) in making the computation aforesaid, credit shall not be given for the following sums, namely:—(a) profits, by way of premium on shares or debentures of the company, which are issued or sold by the company;(b) profits on sales by the company of forfeited shares;35(c) profits of a capital nature including profits from the sale of the undertakingor any of the undertakings of the company or of any part thereof;40(d) profits from the sale of any immovable property or fixed assets of a capital nature comprised in the undertaking or any of the undertakings of the company, unless the business of the company consists, whether wholly or partly, of buying and selling any such property or assets:provided that where the amount for which any fixed asset is sold exceeds the written-down value thereof, credit shall be given for so much of the excess as is not higher than the difference between the original cost of that fixed asset and its writtendown value;(e) any change in carrying amount of an asset or of a liability recognised in equity reserves including surplus in profit and loss account on measurement of the asset or the liability at fair value (4) in making the computation aforesaid, the following sums shall be deducted, namely:—5(a) all the usual working charges; (b) directors' remuneration; (c) bonus or commission paid or payable to any member of the company's staff,or to any engineer, technician or person employed or engaged by the company, whether on a whole-time or on a part-time basis;10(d) any tax notified by the central government as being in the nature of a tax onexcess or abnormal profits;(e) any tax on business profits imposed for special reasons or in specialcircumstances and notified by the central government in this behalf;(f) interest on debentures issued by the company;15(g) interest on mortgages executed by the company and on loans and advancessecured by a charge on its fixed or floating assets;(h) interest on unsecured loans and advances; (i) expenses on repairs, whether to immovable or to movable property, providedthe repairs are not of a capital nature;20(j) outgoings inclusive of contributions made under section 181; (k) depreciation to the extent specified in section 123;25(l) the excess of expenditure over income, which had arisen in computing thenet profits in accordance with this section in any year which begins at or after the commencement of this act, in so far as such excess has not been deducted in any subsequent year preceding the year in respect of which the net profits have to be ascertained;(m) any compensation or damages to be paid in virtue of any legal liabilityincluding a liability arising from a breach of contract;30(n) any sum paid by way of insurance against the risk of meeting any liabilitysuch as is referred to in clause (m); (o) debts considered bad and written off or adjusted during the year of account(5) in making the computation aforesaid, the following sums shall not be deducted, namely:—3543 of 1961(a) income-tax and super-tax payable by the company under the income-tax act, 1961, or any other tax on the income of the company not falling under clauses (d)and (e) of sub-section (4);(b) any compensation, damages or payments made voluntarily, that is to say,otherwise than in virtue of a liability such as is referred to in clause (m) of sub-section (4);40(c) loss of a capital nature including loss on sale of the undertaking or any of theundertakings of the company or of any part thereof not including any excess of the written-down value of any asset which is sold, discarded, demolished or destroyed over its sale proceeds or its scrap value;(d) any change in carrying amount of an asset or of a liability recognised inequity reserves including surplus in profit and loss account on measurement of the asset or the liability at fair value45199 (1) where the central government or the tribunal is required or authorised by any provision of this act,— (a) to accord approval, sanction, consent, confirmation or recognition to or in relation to, any matter; or (b) to give any direction in relation to any matter; or5 (c) to grant any exemption in relation to any matter, power of central government or tribunal to accord approval, etc, subject to conditions and to prescribe fees on applications10then, in the absence of anything to the contrary contained in such or any other provision of this act, the central government or the tribunal may accord, give or grant such approval, sanction, consent, confirmation, recognition, direction or exemption, subject to such conditions, limitations or restrictions as it may think fit to impose and may, in the case of contravention of any such condition, limitation or restriction, rescind or withdraw such approval, sanction, consent, confirmation, recognition, direction or exemption15(2) save as otherwise expressly provided in this act, every application which may be, or is required to be, made to the central government or the tribunal under any provision of this act— (a) in respect of any approval, sanction, consent, confirmation or recognition to be accorded by that government or the tribunal to, or in relation to, any matter; or (b) in respect of any direction or exemption to be given or granted by that government or the tribunal in relation to any matter; or (c) in respect of any other matter,20shall be accompanied by such fees as may be prescribed:provided that different fees may be prescribed for applications in respect of different matters or in case of applications by companies, for applications by different classes of companies25central government or company to fix limit with regard to remuneration200 notwithstanding anything contained in this chapter, the central government or a company may, while according its approval under section 196, to any appointment or to any remuneration under section 197 in respect of cases where the company has inadequate or no profits, fix the remuneration within the limits specified in this act, at such amount or percentage of profits of the company, as it may deem fit and while fixing the remuneration, the central government or the company shall have regard to—30 (a) the financial position of the company; (b) the remuneration or commission drawn by the individual concerned in any other capacity; (c) the remuneration or commission drawn by him from any other company;35 (d) professional qualifications and experience of the individual concerned; (e) such other matters as may be prescribed201 (1) every application made to the central government under this chapter shall be in such form as may be prescribedforms of, and procedure in relation to, certain applications40(2) (a) before any application is made by a company to the central government under any of the sections aforesaid, there shall be issued by or on behalf of the company a general notice to the members thereof, indicating the nature of the application proposed to be made45(b) such notice shall be published at least once in a newspaper in the principal language of the district in which the registered office of the company is situate and circulating in that district, and at least once in english in an english newspaper circulating in that district(c) the copies of the notices, together with a certificate by the company as to the due publication thereof, shall be attached to the application5202 (1) a company may make payment to a managing or whole-time director or manager, but not to any other director, by way of compensation for loss of office, or as consideration for retirement from office or in connection with such loss or retirement(2) no payment shall be made under sub-section (1) in the following cases, namely:—compensation for loss of office of managing or whole-time director or manager10(a) where the director resigns from his office as a result of the reconstruction of the company, or of its amalgamation with any other body corporate or bodies corporate, and is appointed as the managing or whole-time director, manager or other officer of the reconstructed company or of the body corporate resulting from the amalgamation;(b) where the director resigns from his office otherwise than on the reconstruction of the company or its amalgamation as aforesaid;(c) where the office of the director is vacated under sub-section (1) of section 167;15(d) where the company is being wound up, whether by an order of the tribunal or voluntarily, provided the winding up was due to the negligence or default of the director;(e) where the director has been guilty of fraud or breach of trust in relation to, or of gross negligence in or gross mismanagement of, the conduct of the affairs of the company or any subsidiary company or holding company thereof; and20(f) where the director has instigated, or has taken part directly or indirectly in bringing about, the termination of his office25(3) any payment made to a managing or whole-time director or manager in pursuance of sub-section (1) shall not exceed the remuneration which he would have earned if he had been in office for the remainder of his term or for three years, whichever is shorter, calculated on the basis of the average remuneration actually earned by him during a period of three years immediately preceding the date on which he ceased to hold office, or where he held the office for a lesser period than three years, during such period:30provided that no such payment shall be made to the director in the event of the commencement of the winding up of the company, whether before or at any time within twelve months after, the date on which he ceased to hold office, if the assets of the company on the winding up, after deducting the expenses thereof, are not sufficient to repay to the shareholders the share capital, including the premiums, if any, contributed by them35(4) nothing in this section shall be deemed to prohibit the payment to a managing or whole-time director, or manager, of any remuneration for services rendered by him to the company in any other capacity203 (1) every company belonging to such class or classes of companies as may be prescribed shall have the following whole-time key managerial personnel,—appointment of key managerial personnel(i) managing director, or chief executive officer or manager and in their absence, a whole-time director; and(ii) company secretary:40provided that unless the articles of such a company provide otherwise, an individual shall not be the chairperson of the company as well as the managing director or chief executive officer of the company at the same time45(2) every whole-time key managerial personnel of a company shall be appointed by means of a resolution of the board containing the terms and conditions of the appointment including the remuneration(3) a whole-time key managerial personnel shall not hold office in more than one company except in its subsidiary company at the same time:provided that nothing contained in this sub-section shall disentitle a key managerial personnel from being a director of any company with the permission of the board:5provided further that whole-time key managerial personnel holding office in more than one company at the same time on the date of commencement of this act, shall, within a period of six months from such commencement, choose one company, in which he wishes to continue to hold the office of key managerial personnel:10provided also that a company may appoint or employ a person as its managing director, if he is the managing director or manager of one, and of not more than one, other company and such appointment or employment is made or approved by a resolution passed at a meeting of the board with the consent of all the directors present at the meeting and of which meeting, and of the resolution to be moved thereat, specific notice has been given to all the directors then in india15(4) if the office of any whole-time key managerial personnel is vacated, the resulting vacancy shall be filled-up by the board at a meeting of the board within a period of six months from the date of such vacancy20(5) if a comapny contravenes the provisions of this section, the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees and every director and key managerial personnel of the company who is in default shall be punishable with fine which may extend to fifty thousand rupees and where the contravention is a continuing one, with a further fine which may extend to one thousand rupees for every day after the first during which the contravention continues25secretarial audit for bigger companies 204 (1) every listed company and a company belonging to other class of companies as may be prescribed shall annex with its board's report made in terms of sub-section (3) of section 134, a secretarial audit report, given by a company secretary in practice, in such form as may be prescribed30(2) it shall be the duty of the company to give all assistance and facilities to the company secretary in practice, for auditing the secretarial and related records of the company(3) the board of directors, in their report made in terms of sub-section (3) of section 134, shall explain in full any qualification or observation or other remarks made by the company secretary in practice in his report under sub-section (1)35(4) if a company or any officer of the company or the company secretary in practice, contravenes the provisions of this section, the company, every officer of the comapny or the company secretary in practice, who is in default, shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees 205 (1) the functions of the company secretary shall include,—40functions of company secretary(a) to report to the board about compliance with the provisions of this act, the rules made thereunder and other laws applicable to the company;(b) to ensure that the company complies with the applicable secretarial standards;(c) to discharge such other duties as may be prescribed4556 of 1980explanation—for the purpose of this section, the expression "secretarial standards"means secretarial standards issued by the institute of company secretaries of india constituted under section 3 of the company secretaries act, 1980 and approved by the central government50(2) the provisions contained in section 204 and section 205 shall not affect the duties and functions of the board of directors, chairperson, managing director or whole-time director under this act, or any other law for the time being in force chapter xiv inspection, inquiry and investigation5206 (1) where on a scrutiny of any document filed by a company or on any information received by him, the registrar is of the opinion that any further information or explanation or any further documents relating to the company is necessary, he may by a written notice require the company—power to call for information, inspect books and conduct inquiries(a) to furnish in writing such information or explanation; or (b) to produce such documents,within such reasonable time, as may be specified in the notice10(2) on the receipt of a notice under sub-section (1), it shall be the duty of the companyand of its officers concerned to furnish such information or explanation to the best of their knowledge and power and to produce the documents to the registrar within the time specified or extended by the registrar:15provided that where such information or explanation relates to any past period, theofficers who had been in the employment of the company for such period, if so called upon by the registrar through a notice served on them in writing, shall also furnish such information or explanation to the best of their knowledge20 25(3) if no information or explanation is furnished to the registrar within the time specified under sub-section (1) or if the registrar on an examination of the documents furnished is of the opinion that the information or explanation furnished is inadequate or if the registrar is satisfied on a scrutiny of the documents furnished that an unsatisfactory state of affairs exists in the company and does not disclose a full and fair statement of the information required, he may, by another written notice, call on the company to produce for his inspection such further books of account, books, papers and explanations as he may require at such place and at such time as he may specify in the notice:provided that before any notice is served under this sub-section, the registrar shall record his reasons in writing for issuing such notice30 35(4) if the registrar is satisfied on the basis of information available with or furnished tohim or on a representation made to him by any person that the business of a company is being carried on for a fraudulent or unlawful purpose or not in compliance with the provisions of this act or if the grievances of investors are not being addressed, the registrar may, after informing the company of the allegations made against it by a written order, call on the company to furnish in writing any information or explanation on matters specified in the order within such time as he may specify therein and carry out such inquiry as he deems fit after providing the company a reasonable opportunity of being heard:provided that the central government may, if it is satisfied that the circumstances so warrant, direct the registrar or an inspector appointed by it for the purpose to carry out the inquiry under this sub-section:40provided further that where business of a company has been or is being carried on fora fraudulent or unlawful purpose, every officer of the company who is in default shall be punishable for fraud in the manner as provided in section 44745(5) without prejudice to the foregoing provisions of this section, the central government may, if it is satisfied that the circumstances so warrant, direct inspection of books and papers of a company by an inspector appointed by it for the purpose(6) the central government may, having regard to the circumstances by general or special order, authorise any statutory authority to carry out the inspection of books of account of a company or class of companies(7) if a company fails to furnish any information or explanation or produce any document required under this section, the company and every officer of the company, who is in default shall be punishable with a fine which may extend to one lakh rupees and in the case of a continuing failure, with an additional fine which may extend to five hundred rupees for every day after the first during which the failure continues5conduct of inspection and inquiry10207 (1) where a registrar or inspector calls for the books of account and other books and papers under section 206, it shall be the duty of every director, officer or other employee of the company to produce all such documents to the registrar or inspector and furnish him with such statements, information or explanations in such form as the registrar or inspector may require and shall render all assistance to the registrar or inspector in connection with such inspection(2) the registrar or inspector, making an inspection or inquiry under section 206 may, during the course of such inspection or inquiry, as the case may be,—15(a) make or cause to be made copies of books of account and other books and papers; or(b) place or cause to be placed any marks of identification in such books in token of the inspection having been made205 of 1908(3) notwithstanding anything contained in any other law for the time being in force or in any contract to the contrary, the registrar or inspector making an inspection or inquiry shall have all the powers as are vested in a civil court under the code of civil procedure, 1908, while trying a suit in respect of the following matters, namely:—(a) the discovery and production of books of account and other documents, at such place and time as may be specified by such registrar or inspector making the inspection or inquiry;25 (b) summoning and enforcing the attendance of persons and examining them on oath; and (c) inspection of any books, registers and other documents of the company at any place30(4) (i) if any director or officer of the company disobeys the direction issued by the registrar or the inspector under this section, the director or the officer shall be punishable with imprisonment which may extend to one year and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees35(ii) if a director or an officer of the company has been convicted of an offence under this section, the director or the officer shall, on and from the date on which he is so convicted, be deemed to have vacated his office as such and on such vacation of office, shall be disqualified from holding an office in any companyreport on inspection made40208 the registrar or inspector shall, after the inspection of the books of account or aninquiry under section 206 and other books and papers of the company under section 207, submit a report in writing to the central government along with such documents, if any, and such report may, if necessary, include a recommendation that further investigation into the affairs of the company is necessary giving his reasons in supportsearch and seizure45209 (1) where, upon information in his possession or otherwise, the registrar orinspector has reasonable ground to believe that the books and papers of a company, or relating to the key managerial personnel or any director or auditor or company secretary in practice if the company has not appointed a company secretary, are likely to be destroyed, mutilated, altered, falsified or secreted, he may, after obtaining an order from the special court for the seizure of such books and papers,—(a) enter, with such assistance as may be required, and search, the place orplaces where such books or papers are kept; and(b) seize such books and papers as he considers necessary after allowing the company to take copies of, or extracts from, such books or papers at its cost5(2) the registrar or inspector shall return the books and papers seized under subsection (1), as soon as may be, and in any case not later than one hundred and eightieth day after such seizure, to the company from whose custody or power such books or papers were seized:provided that the books and papers may be called for by the registrar or inspector for a further period of one hundred and eighty days by an order in writing if they are needed again:10provided further that the registrar or inspector may, before returning such books and papers as aforesaid, take copies of, or extracts from them or place identification marks on them or any part thereof or deal with the same in such other manner as he considers necessary2 of 1974(3) the provisions of the code of criminal procedure, 1973 relating to searches or seizures shall apply, mutatis mutandis, to every search and seizure made under this section15210 (1) where the central government is of the opinion, that it is necessary to investigate into the affairs of a company,—investigation into affairs of company(a) on the receipt of a report of the registrar or inspector under section 208;20(b) on intimation of a special resolution passed by a company that the affairs of the company ought to be investigated; or(c) in public interest, it may order an investigation into the affairs of the company25(2) where an order is passed by a court or the tribunal in any proceedings before it that the affairs of a company ought to be investigated, the central government shall order an investigation into the affairs of that company(3) for the purposes of this section, the central government may appoint one or more persons as inspectors to investigate into the affairs of the company and to report thereon in such manner as the central government may direct30establishment of serious fraud investigation office211 (1) the central government shall, by notification, establish an office to be called the serious fraud investigation office to investigate frauds relating to a company:provided that until the serious fraud investigation office is established under subsection (1), the serious fraud investigation office set-up by the central government in terms of the government of india resolution no 45011/16/2003-adm-i, dated the 2nd july, 2003 shall be deemed to be the serious fraud investigation office for the purpose of this section35(2) the serious fraud investigation office shall be headed by a director and consist of such number of experts from the following fields to be appointed by the central government from amongst persons of ability, integrity and experience in,—40(i) banking; (ii) corporate affairs; (iii) taxation; (iv) forensic audit; (v) capital market; (vi) information technology; (vii) law; or (viii) such other fields as may be prescribed45(3) the central government shall, by notification, appoint a director in the serious fraud investigation office, who shall be an officer not below the rank of a joint secretary to the government of india having knowledge and experience in dealing with matters relating to corporate affairs(4) the central government may appoint such experts and other officers and employees in the serious fraud investigation office as it considers necessary for the efficient discharge of its functions under this act5(5) the terms and conditions of service of director, experts, and other officers and employees of the serious fraud investigation office shall be such as may be prescribed212 (1) without prejudice to the provisions of section 210, where the central government is of the opinion, that it is necessary to investigate into the affairs of a company by the serious fraud investigation office—(a) on receipt of a report of the registrar or inspector under section 208;investigation into affairs of company by serious fraud investigation office10(b) on intimation of a special resolution passed by a company that its affairs are required to be investigated;(c) in the public interest; or(d) on request from any department of the central government or a state government,15the central government may, by order, assign the investigation into the affairs of the said company to the serious fraud investigation office and its director, may designate such number of inspectors, as he may consider necessary for the purpose of such investigation20(2) where any case has been assigned by the central government to the serious fraud investigation office for investigation under this act, no other investigating agency of central government or any state government shall proceed with investigation in such case in respect of any offence under this act and in case any such investigation has already been initiated, it shall not be proceeded further with and the concerned agency shall transfer the relevant documents and records in respect of such offences under this act to serious fraud investigation office25(3) where the investigation into the affairs of a company has been assigned by the central government to serious fraud investigation office, it shall conduct the investigation in the manner and follow the procedure provided in this chapter; and submit its report to the central government within such period as may be specified in the order30(4) the director, serious fraud investigation office shall cause the affairs of the company to be investigated by an investigating officer who shall have the power of the inspector under section 217(5) the company and its officers and employees, who are or have been in employment of the company shall be responsible to provide all information, explanation, documents and assistance to the investigating officer as he may require for conduct of the investigation352 of 197440(6) notwithstanding anything contained in the code of criminal procedure, 1973, the offences covered under sub-sections (5) and (6) of section 7, section 34, section 36, subsection (1) of section 38, sub-sections (5) and (6) of section 46, sub-section (10) of section66, sub-section (5) of section 140, proviso to sub-section (2) and sub-section (4) of section147, sub-section (4) of section 206, section 213, section 229, sub-section (1) of section 251, sub-section (3) of section 339 and section 448 which attract the punishment for fraud provided in section 447 of this act shall be cognizable and no person accused of any offence under those sections shall be released on bail or on his own bond unless—(i) the public prosecutor has been given an opportunity to oppose the application for such release; and45(ii) where the public prosecutor opposes the application, the court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail:provided that a person, who, is under the age of sixteen years or is a woman or is sick or infirm, may be released on bail, if the special court so directs:provided further that the special court shall not take cognizance of any offence referred to this sub-section except upon a complaint in writing made by—5(i) the director, serious fraud investigation office; or (ii) any officer of the central government authorised, by a general or specialorder in writing in this behalf by that government2 of 1974(7) the limitation on granting of bail specified in sub-section (6) is in addition to the limitations under the code of criminal procedure, 1973 or any other law for the time being in force on granting of bail10 15(8) if the director, additional director or assistant director of serious frauds investigation office authorised in this behalf by the central government by general or special order, has on the basis of material in his possession reason to believe (the reason for such belief to be recorded in writing) that any person has been guilty of any offence punishable under sections referred to in sub-section (6), he may arrest such person and shall, as soon as may be, inform him of the grounds for such arrest20(9) the director, additional director or assistant director of serious fraud investigation office shall, immediately after arrest of such person under sub-section (8), forward a copy of the order, along with the material in his possession, referred to in that sub-section, to the serious fraud investigation office in a sealed envelope, in such manner as may be prescribed and the serious fraud investigation office shall keep such order and material for such period as may be prescribed(10) every person arrested under sub-section (8) shall within twenty-four hours, be taken to a judical magistrate or a metropolitan magistrate, as the case may be, having jurisdiction:25provided that the period of twenty-four hours shall exclude the time necessary for the journey from the place of arrest to the magistrate's court(11) the central government if so directs, the serious fraud investigation office shall submit an interim report to the central government30(12) on completion of the investigation, the serious fraud investigation office shall submit the investigation report to the central government(13) notwithstanding anything contained in this act or in any other law for the time being in force, a copy of the investigation report may be obtained by any person concerned by making an application in this regard to the court35(14) on receipt of the investigation report, the central government may, after examinationof the report (and after taking such legal advice, as it may think fit), direct the serious fraud investigation office to initiate prosecution against the company and its officers or employees, who are or have been in employment of the company or any other person directly or indirectly connected with the affairs of the company402 of 1974| ( ||----------------------------------------------------------------------------------------------|| being in force, the investigation report filed with the special court for framing of charges || shall be deemed to be a report filed by a police officer under section 173 of the code of || criminal procedure, 1973 || 45 |1 of 1956| ( ||------------------------------------------------------------------------------------------------|| taken or initiated by serious fraud investigation office under the provisions of the companies || act, 1956 shall continue to be proceeded with under that act as if this act had not been || passed |(17) (a) in case serious fraud investigation office has been investigating any offence under this act, any other investigating agency, state government, police authority, income-tax authorities having any information or documents in respect of such offence shall provide all such information or documents available with it to the serious fraud investigation office;5(b) the serious fraud investigation office shall share any information or documents available with it, with any investigating agency, state government, police authority or incometax authorities, which may be relevant or useful for such investigating agency, state government, police authority or income-tax authorities in respect of any offence or matter being investigated or examined by it under any other law10213 the tribunal may,—(a) on an application made by—investigation into company's affairs in other cases(i) not less than one hundred members or members holding not less thanone-tenth of the total voting power, in the case of a company having a share capital; or15(ii) not less than one-fifth of the persons on the company's register of members, in the case of a company having no share capital, and supported by such evidence as may be necessary for the purpose of showing that the applicants have good reasons for seeking an order for conducting an investigation into the affairs of the company; or20(b) on an application made to it by any other person or otherwise, if it is satisfied that there are circumstances suggesting that—25(i) the business of the company is being conducted with intent to defraud its creditors, members or any other person or otherwise for a fraudulent or unlawful purpose, or in a manner oppressive to any of its members or that the company was formed for any fraudulent or unlawful purpose;(ii) persons concerned in the formation of the company or the management of its affairs have in connection therewith been guilty of fraud, misfeasance or other misconduct towards the company or towards any of its members; or30(iii) the members of the company have not been given all the information with respect to its affairs which they might reasonably expect, including information relating to the calculation of the commission payable to a managing or other director, or the manager, of the company,35order, after giving a reasonable opportunity of being heard to the parties concerned, that the affairs of the company ought to be investigated by an inspector or inspectors appointed by the central government and where such an order is passed, the central government shall appoint one or more competent persons as inspectors to investigate into the affairs of the company in respect of such matters and to report thereupon to it in such manner as the central government may direct:provided that if after investigation it is proved that—40(i) the business of the company is being conducted with intent to defraud its creditors, members or any other persons or otherwise for a fraudulent or unlawful purpose, or that the company was formed for any fraudulent or unlawful purpose; or(ii) any person concerned in the formation of the company or the management of its affairs have in connection therewith been guilty of fraud,45then, every officer of the company who is in default and the person or persons concerned in the formation of the company or the management of its affairs shall be punishable for fraud in the manner as provided in section 447security for payment of costs and expenses of investigation5214 where an investigation is ordered by the central government in pursuance of clause (b) of sub-section (1) of section 210, or in pursuance of an order made by the tribunal under section 213, the central government may before appointing an inspector under subsection (3) of section 210 or clause (b) of section 213, require the applicant to give such security not exceeding twenty-five thousand rupees as may be prescribed, as it may think fit, for payment of the costs and expenses of the investigation and such security shall be refunded to the applicant if the investigation results in prosecution215 no firm, body corporate or other association shall be appointed as an inspectorfirm, body corporate or association not to be appointed as inspector10investigation of ownership of company216 (1) where it appears to the central government that there is a reason so to do, it may appoint one or more inspectors to investigate and report on matters relating to the company, and its membership for the purpose of determining the true persons—(a) who are or have been financially interested in the success or failure, whether real or apparent, of the company; or15(b) who are or have been able to control or to materially influence the policy of the company (2) without prejudice to its powers under sub-section (1), the central government shall appoint one or more inspectors under that sub-section, if the tribunal, in the course of any proceeding before it, directs by an order that the affairs of the company ought to be investigated as regards the membership of the company and other matters relating to the company, for the purposes specified in sub-section (1)20(3) while appointing an inspector under sub-section (1), the central government may define the scope of the investigation, whether as respects the matters or the period to which it is to extend or otherwise, and in particular, may limit the investigation to matters connected with particular shares or debentures25(4) subject to the terms of appointment of an inspector, his powers shall extend to the investigation of any circumstances suggesting the existence of any arrangement or understanding which, though not legally binding, is or was observed or is likely to be observed in practice and which is relevant for the purposes of his investigation30procedure, powers, etc, of inspectors217 (1) it shall be the duty of all officers and other employees and agents including the former officers, employees and agents of a company which is under investigation in accordance with the provisions contained in this chapter, and where the affairs of any other body corporate or a person are investigated under section 219, of all officers and other employees and agents including former officers, employees and agents of such body corporate or a person—35(a) to preserve and to produce to an inspector or any person authorised by him in this behalf all books and papers of, or relating to, the company or, as the case may be, relating to the other body corporate or the person, which are in their custody or power; and(b) otherwise to give to the inspector all assistance in connection with the investigation which they are reasonably able to give40(2) the inspector may require any body corporate, other than a body corporate referred to in sub-section (1), to furnish such information to, or produce such books and papers before him or any person authorised by him in this behalf as he may consider necessary, if the furnishing of such information or the production of such books and papers is relevant or necessary for the purposes of his investigation45(3) the inspector shall not keep in his custody any books and papers produced under sub-section (1) or sub-section (2) for more than one hundred and eighty days and return the same to the company, body corporate, firm or individual by whom or on whose behalf the books and papers were produced:provided that the books and papers may be called for by the inspector if they are needed again for a further period of one hundred and eighty days by an order in writing5(4) an inspector may examine on oath—(a) any of the persons referred to in sub-section (1); and(b) with the prior approval of the central government, any other person, in relation to the affairs of the company, or other body corporate or person, as the case may be, and for that purpose may require any of those persons to appear before him personally:10provided that in case of an investigation under section 212, the prior approval of director, serious fraud investigation office shall be sufficient under clause (b)155 of 1908(5) notwithstanding anything contained in any other law for the time being in force or in any contract to the contrary, the inspector, being an officer of the central government, making an investigation under this chapter shall have all the powers as are vested in a civil court under the code of civil procedure, 1908, while trying a suit in respect of the following matters, namely:—(a) the discovery and production of books of account and other documents, atsuch place and time as may be specified by such person;20(b) summoning and enforcing the attendance of persons and examining them onoath; and(c) inspection of any books, registers and other documents of the company atany place25(6) (i) if any director or officer of the company disobeys the direction issued by the registrar or the inspector under this section, the director or the officer shall be punishable with imprisonment which may extend to one year and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees30(ii) if a director or an officer of the company has been convicted of an offence under this section, the director or the officer shall, on and from the date on which he is so convicted, be deemed to have vacated his office as such and on such vacation of office, shall be disqualified from holding an office in any company(7) the notes of any examination under sub-section (4) shall be taken down in writing and shall be read over to, or by, and signed by, the person examined, and may thereafter be used in evidence against him(8) if any person fails without reasonable cause or refuses—35(a) to produce to an inspector or any person authorised by him in this behalf any book or paper which is his duty under sub-section (1) or sub-section (2) to produce;(b) to furnish any information which is his duty under sub-section (2) to furnish;(c) to appear before the inspector personally when required to do so under subsection (4) or to answer any question which is put to him by the inspector in pursuance of that sub-section; or40(d) to sign the notes of any examination referred to in sub-section (7),45he shall be punishable with imprisonment for a term which may extend to six months and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, and also with a further fine which may extend to two thousand rupees for every day after the first during which the failure or refusal continues(9) the officers of the central government, state government, police or statutory authority shall provide assistance to the inspector for the purpose of inspection, inquiry or investigation, which the inspector may, with the prior approval of the central government, require5(10) the central government may enter into an agreement with the government of aforeign state for reciprocal arrangements to assist in any inspection, inquiry or investigation under this act or under the corresponding law in force in that state and may, by notification, render the application of this chapter in relation to a foreign state with which reciprocal arrangements have been made subject to such modifications, exceptions, conditions and qualifications as may be deemed expedient for implementing the agreement with that state102 of 197415 20(11) notwithstanding anything contained in this act or in the code of criminal procedure, 1973 if, in the course of an investigation into the affairs of the company, an application is made to the competent court in india by the inspector stating that evidence is, or may be, available in a country or place outside india, such court may issue a letter of request to a court or an authority in such country or place, competent to deal with such request, to examine orally, or otherwise, any person, supposed to be acquainted with the facts and circumstances of the case, to record his statement made in the course of such examination and also to require such person or any other person to produce any document or thing, which may be in his possession pertaining to the case, and to forward all the evidence so taken or collected or the authenticated copies thereof or the things so collected to the court in india which had issued such letter of request:provided that the letter of request shall be transmitted in such manner as the central government may specify in this behalf:25provided further that every statement recorded or document or thing received under this sub-section shall be deemed to be the evidence collected during the course of investigation30 35(12) upon receipt of a letter of request from a court or an authority in a country or place outside india, competent to issue such letter in that country or place for the examination of any person or production of any document or thing in relation to affairs of a company under investigation in that country or place, the central government may, if it thinks fit, forward such letter of request to the court concerned, which shall thereupon summon the person before it and record his statement or cause any document or thing to be produced, or send the letter to any inspector for investigation, who shall thereupon investigate into the affairs of company in the same manner as the affairs of a company are investigated under this act and the inspector shall submit the report to such court within thirty days or such extended time as the court may allow for further action:provided that the evidence taken or collected under this sub-section or authenticated copies thereof or the things so collected shall be forwarded by the court, to the central government for transmission, in such manner as the central government may deem fit, to the court or the authority in country or place outside india which had issued the letter of request40218 (1) notwithstanding anything contained in any other law for the time being in force if,—protection of employees during investigation45(a) during the course of any investigation of the affairs and other matters of orrelating to a company, other body corporate or person under section 210, section 212, section 213 or section 219 or of the membership and other matters of or relating to a company, or the ownership of shares in or debentures of a company or body corporate, or the affairs and other matters of or relating to a company, other body corporate or person, under section 216; or(b) during the pendency of any proceeding against any person concerned in theconduct and management of the affairs of a company under chapter xvi,such company, other body corporate or person proposes—(i) to discharge or suspend any employee; or (ii) to punish him, whether by dismissal, removal, reduction in rank or otherwise;or(iii) to change the terms of employment to his disadvantage,5the company, other body corporate or person, as the case may be, shall obtain approval of the tribunal of the action proposed against the employee and if the tribunal has any objection to the action proposed, it shall send by post notice thereof in writing to the company, other body corporate or person concerned10(2) if the company, other body corporate or person concerned does not receive within thirty days of making of application under sub-section (1), the approval of the tribunal, then and only then, the company, other body corporate or person concerned may proceed to take against the employee, the action proposed15(3) if the company, other body corporate or person concerned is dissatisfied with the objection raised by the tribunal, it may, within a period of thirty days of the receipt of the notice of the objection, prefer an appeal to the appellate tribunal in such manner and on payment of such fees as may be prescribed(4) the decision of the appellate tribunal on such appeal shall be final and binding on the tribunal and on the company, other body corporate or person concerned20(5) for the removal of doubts, it is hereby declared that the provisions of this section shall have effect without prejudice to the provisions of any other law for the time being in force219 if an inspector appointed under section 210 or section 212 or section 213 to investigate into the affairs of a company considers it necessary for the purposes of the investigation, to investigate also the affairs of—25power of inspector to conduct investigation into affairs of related companies, etc(a) any other body corporate which is, or has at any relevant time been the company's subsidiary company or holding company, or a subsidiary company of its holding company;30(b) any other body corporate which is, or has at any relevant time been managed by any person as managing director or as manager, who is, or was, at the relevant time, the managing director or the manager of the company;(c) any other body corporate whose board of directors comprises nominees of the company or is accustomed to act in accordance with the directions or instructions of the company or any of its directors; or35(d) any person who is or has at any relevant time been the company's managing director or manager or employee,40he shall, subject to the prior approval of the central government, investigate into and report on the affairs of the other body corporate or of the managing director or manager, in so far as he considers that the results of his investigation are relevant to the investigation of the affairs of the company for which he is appointedseizure of documents by inspector220 (1) where in the course of an investigation under this chapter, the inspector has reasonable grounds to believe that the books and papers of, or relating to, any company or other body corporate or managing director or manager of such company are likely to be destroyed, mutilated, altered, falsified or secreted, the inspector may—45(a) enter, with such assistance as may be required, the place or places where such books and papers are kept in such manner as may be required; and(b) seize books and papers as he considers necessary after allowing the companyto take copies of, or extracts from, such books and papers at its cost for the purposes of his investigation5(2) the inspector shall keep in his custody the books and papers seized under thissection for such a period not later than the conclusion of the investigation as he considers necessary and thereafter shall return the same to the company or the other body corporate, or, as the case may be, to the managing director or the manager or any other person from whose custody or power they were seized:10provided that the inspector may, before returning such books and papers as aforesaid,take copies of, or extracts from them or place identification marks on them or any part thereof or deal with the same in such manner as he considers necessary2 of 1974(3) the provisions of the code of criminal procedure, 1973, relating to searches orseizures shall apply mutatis mutandis to every search or seizure made under this section15freezing of assets of company on inquiry and investigation20221 (1) where it appears to the tribunal, on a reference made to it by the central government or in connection with any inquiry or investigation into the affairs of a company under this chapter or on any complaint made by such number of members as specified under sub-section (1) of section 244 or a creditor having one lakh amount outstanding against the company or any other person having a reasonable ground to believe that the removal, transfer or disposal of funds, assets, properties of the company is likely to take place in a manner that is prejudicial to the interests of the company or its shareholders or creditors or in public interest, it may by order direct that such transfer, removal or disposal shall not take place during such period not exceeding three years as may be specified in the order or may take place subject to such conditions and restrictions as the tribunal may deem fit25(2) in case of any removal, transfer or disposal of funds, assets, or properties of the company in contravention of the order of the tribunal under sub-section (1), the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both30imposition of restrictions upon securities35222 (1) where it appears to the tribunal, in connection with any investigation undersection 216 or on a complaint made by any person in this behalf, that there is good reason to find out the relevant facts about any securities issued or to be issued by a company and the tribunal is of the opinion that such facts cannot be found out unless certain restrictions, as it may deem fit, are imposed, the tribunal may, by order, direct that the securities shall be subject to such restrictions as it may deem fit for such period not exceeding three years as may be specified in the order40(2) where securities in any company are issued or transferred or acted upon incontravention of an order of the tribunal under sub-section (1), the company shall bepunishable with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees, or with both45inspector's report223 (1) an inspector appointed under this chapter may, and if so directed by thecentral government shall, submit interim reports to that government, and on the conclusion of the investigation, shall submit a final report to the central government(2) every report made under sub-section (1) shall be in writing or printed as the central government may direct(3) a copy of the report made under sub-section (1) may be obtained by making an application in this regard to the central government(4) the report of any inspector appointed under this chapter shall be authenticated either—(a) by the seal of the company whose affairs have been investigated; or5 1 of 1872(b) by a certificate of a public officer having the custody of the report, as provided under section 76 of the indian evidence act, 1872, and such report shall be admissible in any legal proceeding as evidence in relation to any matter contained in the report(5) nothing in this section shall apply to the report referred to in section 21210actions to be taken in pursuance of inspector's report15224 (1) if, from an inspector's report, made under section 223, it appears to the central government that any person has, in relation to the company or in relation to any other body corporate or other person whose affairs have been investigated under this chapter been guilty of any offence for which he is criminally liable, the central government may prosecute such person for the offence and it shall be the duty of all officers and other employees of the company or body corporate to give the central government the necessary assistance in connection with the prosecution20(2) if any company or other body corporate is liable to be wound up under this act and it appears to the central government from any such report made under section 223 that it is expedient so to do by reason of any such circumstances as are referred to in section 213, the central government may, unless the company or body corporate is already being wound up by the tribunal, cause to be presented to the tribunal by any person authorised by the central government in this behalf—(a) a petition for the winding up of the company or body corporate on the ground that it is just and equitable that it should be wound up;25(b) an application under section 241; or (c) both30(3) if from any such report as aforesaid, it appears to the central government that proceedings ought, in the public interest, to be brought by the company or any body corporate whose affairs have been investigated under this chapter—(a) for the recovery of damages in respect of any fraud, misfeasance or other misconduct in connection with the promotion or formation, or the management of the affairs, of such company or body corporate; or35(b) for the recovery of any property of such company or body corporate which has been misapplied or wrongfully retained, the central government may itself bring proceedings for winding up in the name of such company or body corporate40(4) the central government, shall be indemnified by such company or body corporate against any costs or expenses incurred by it in, or in connection with, any proceedings brought by virtue of sub-section (3)45(5) where the report made by an inspector states that fraud has taken place in a company and due to such fraud any director, key managerial personnel, other officer of the company or any other person or entity, has taken undue advantage or benefit, whether in the form of any asset, property or cash or in any other manner, the central government may file an application before the tribunal for appropriate orders with regard to disgorgement of such asset, property, or cash, as the case may be, and also for holding such director, key managerial personnel, officer or other person liable personally without any limitation of liabilityexpenses of investigation225 (1) the expenses of, and incidental to, an investigation by an inspector appointed by the central government under this chapter other than expenses of inspection under section 214 shall be defrayed in the first instance by the central government, but shall be reimbursed by the following persons to the extent mentioned below, namely:—5(a) any person who is convicted on a prosecution instituted, or who is orderedto pay damages or restore any property in proceedings brought, under section 224, to the extent that he may in the same proceedings be ordered to pay the said expenses as may be specified by the court convicting such person, or ordering him to pay such damages or restore such property, as the case may be;10(b) any company or body corporate in whose name proceedings are brought asaforesaid, to the extent of the amount or value of any sums or property recovered by it as a result of such proceedings;(c) unless, as a result of the investigation, a prosecution is instituted under section 224,—15(i) any company, body corporate, managing director or manager dealt withby the report of the inspector; and(ii) the applicants for the investigation, where the inspector was appointedunder section 213,to such extent as the central government may direct20(2) any amount for which a company or body corporate is liable under clause (b) of sub-section (1) shall be a first charge on the sums or property mentioned in that clause226 an investigation under this chapter may be initiated notwithstanding, and no such investigation shall be stopped or suspended by reason only of, the fact that—(a) an application has been made under section 241;20voluntary winding up of company, etc, not to stop investigation proceedings(b) the company has passed a special resolution for voluntary winding up;or(c) any other proceeding for the winding up of the company is pending before the tribunal:30provided that where a winding up order is passed by the tribunal in a proceeding referred to in clause (c), the inspector shall inform the tribunal about the pendency of the investigation proceedings before him and the tribunal shall pass such order as it may deem fit:35provided further that nothing in the winding up order shall absolve any director or other employee of the company from participating in the proceedings before the inspector or any liability as a result of the finding by the inspector227 nothing in this chapter shall require the disclosure to the tribunal or to the central government or to the registrar or to an inspector appointed by the central government—legal advisers and bankers not to disclose certain information40(a) by a legal adviser, of any privileged communication made to him in that capacity, except as respects the name and address of his client; or(b) by the bankers of any company, body corporate, or other person, of any information as to the affairs of any of their customers, other than such company, body corporate, or person228 the provisions of this chapter shall apply mutatis mutandis to inspection, inquiry or investigation in relation to foreign companiesinvestigation, etc, of foreign companies5229 where a person who is required to provide an explanation or make a statement during the course of inspection, inquiry or investigation, or an officer or other employee of a company or other body corporate which is also under investigation,—penalty for furnishing false statement, mutilation, destruction of documents(a) destroys, mutilates or falsifies, or conceals or tampers or unauthorisedlyremoves, or is a party to the destruction, mutilation or falsification or concealment or tampering or unauthorised removal of, documents relating to the property, assets or affairs of the company or the body corporate;10(b) makes, or is a party to the making of, a false entry in any document concerning the company or body corporate; or(c) provides an explanation which is false or which he knows to be false, he shall be punishable for fraud in the manner as provided in section 447 chapter xv15 compromises, arrangements and amalgamations230 (1) where a compromise or arrangement is proposed—(a) between a company and its creditors or any class of them; or (b) between a company and its members or any class of them,power to compromise or make arrangements with creditors and members20the tribunal may, on the application of the company or of any creditor or member of the company, or in the case of a company which is being wound up, of the liquidator, order a meeting of the creditors or class of creditors, or of the members or class of members, as the case may be, to be called, held and conducted in such manner as the tribunal directs25explanation—for the purposes of this sub-section, arrangement includes a reorganisation of the company's share capital by the consolidation of shares of different classes or by the division of shares into shares of different classes, or by both of those methods(2) the company or any other person, by whom an application is made under subsection (1), shall disclose to the tribunal by affidavit—30(a) all material facts relating to the company, such as the latest financial position of the company, the latest auditor's report on the accounts of the company and the pendency of any investigation or proceedings against the company;(b) reduction of share capital of the company, if any, included in the compromise or arrangement;35(c) any scheme of corporate debt restructuring consented to by not less than seventy-five per cent of the secured creditors in value, including—(i) a creditor's responsibility statement in the prescribed form; (ii) safeguards for the protection of other secured and unsecured creditors;40(iii) report by the auditor that the fund requirements of the company after the corporate debt restructuring as approved shall conform to the liquidity test based upon the estimates provided to them by the board;(iv) where the company proposes to adopt the corporate debt restructuring guidelines specified by the reserve bank of india, a statement to that effect; and(v) a valuation report in respect of the shares and the property and all assets, tangible and intangible, movable and immovable, of the company by a registered valuer510(3) where a meeting is proposed to be called in pursuance of an order of the tribunal under sub-section (1), a notice of such meeting shall be sent to all the creditors or class of creditors and to all the members or class of members and the debenture-holders of the company, individually at the address registered with the company which shall be accompanied by a statement disclosing the details of the compromise or arrangement, a copy of the valuation report, if any, and explaining their effect on creditors, key managerial personnel, promoters and non-promoter members, and the debenture-holders and the effect of the compromise or arrangement on any material interests of the directors of the company or the debenture trustees, and such other matters as may be prescribed:15provided that such notice and other documents shall also be placed on the website of the company, if any, and in case of a listed company, these documents shall be sent to the securities and exchange board and stock exchange where the securities of the companies are listed, for placing on their website and shall also be published in newspapers in such manner as may be prescribed:20provided further that where the notice for the meeting is also issued by way of an advertisement, it shall indicate the time within which copies of the compromise or arrangement shall be made available to the concerned persons free of charge from the registered office of the company(4) a notice under sub-section (3) shall provide that the persons to whom the notice is sent may vote in the meeting either themselves or through proxies or by postal ballot to the adoption of the compromise or arrangement within one month from the date of receipt of such notice:25provided that any objection to the compromise or arrangement shall be made only by persons holding not less than ten per cent of the shareholding or having outstanding debt amounting to not less than five per cent of the total outstanding debt as per the latest audited financial statement3012 of 200335(5) a notice under sub-section (3) along with all the documents in such form as may be prescribed shall also be sent to the central government, the income-tax authorities, the reserve bank of india, the securities and exchange board, the registrar, the respective stock exchanges, the official liquidator, the competition commission of india established under sub-section (1) of section 7 of the competition act, 2002, if necessary, and such other sectoral regulators or authorities which are likely to be affected by the compromise or arrangement and shall require that representations, if any, to be made by them shall be made within a period of thirty days from the date of receipt of such notice, failing which, it shall be presumed that they have no representations to make on the proposals40(6) where, at a meeting held in pursuance of sub-section (1), majority of persons representing three-fourths in value of the creditors, or class of creditors or members or class of members, as the case may be, voting in person or by proxy or by postal ballot, agree to any compromise or arrangement and if such compromise or arrangement is sanctioned by the tribunal by an order, the same shall be binding on the company, all the creditors, or class of creditors or members or class of members, as the case may be, or, in case of a company being wound up, on the liquidator and the contributories of the company45(7) an order made by the tribunal under sub-section (6) shall provide for all or any of the following matters, namely:—50(a) where the compromise or arrangement provides for conversion ofpreference shares into equity shares, such preference shareholders shall be given an option to either obtain arrears of dividend in cash or accept equity shares equal to the value of the dividend payable;(b) the protection of any class of creditors; (c) if the compromise or arrangement results in the variation of the shareholders'rights, it shall be given effect to under the provisions of section 48;5(d) if the compromise or arrangement is agreed to by the creditors under sub-section (6), any proceedings pending before the board for industrial and financial reconstruction established under section 4 of the sick industrial companies (special provisions) act, 1985 shall abate;1 of 198610(e) such other matters including exit offer to dissenting shareholders, if any, as are in the opinion of the tribunal necessary to effectively implement the terms of the compromise or arrangement: provided that no compromise or arrangement shall be sanctioned by the tribunal unless a certificate by the company's auditor has been filed with the tribunal to the effect that the accounting treatment, if any, proposed in the scheme of compromise or arrangement is in conformity with the accounting standards prescribed under section 13315(8) the order of the tribunal shall be filed with the registrar by the company within a period of thirty days of the receipt of the order(9) the tribunal may dispense with calling of a meeting of creditor or class of creditors where such creditors or class of creditors, having at least ninety per cent value, agree and confirm, by way of affidavit, to the scheme of compromise or arrangement20(10) no compromise or arrangement in respect of any buy-back of securities under this section shall be sanctioned by the tribunal unless such buy-back is in accordance with the provisions of section 68(11) any compromise or arrangement may include takeover offer made in such manner as may be prescribed:25provided that in case of listed companies, takeover offer shall be as per the regulations framed by the securities and exchange board(12) an aggrieved party may make an application to the tribunal in the event of any grievances with respect to the takeover offer of companies other than listed companies in such manner as may be prescribed and the tribunal may, on application, pass such order as it may deem fit30explanation—for the removal of doubts, it is hereby declared that the provisions of section 66 shall not apply to the reduction of share capital effected in pursuance of the order of the tribunal under this section231 (1) where the tribunal makes an order under section 230 sanctioning a compromise or an arrangement in respect of a company, it—35(a) shall have power to supervise the implementation of the compromise or arrangement; and power of tribunal to enforce compromise or arrangement40(b) may, at the time of making such order or at any time thereafter, give such directions in regard to any matter or make such modifications in the compromise or arrangement as it may consider necessary for the proper implementation of the compromise or arrangement (2) if the tribunal is satisfied that the compromise or arrangement sanctioned under section 230 cannot be implemented satisfactorily with or without modifications, and the company is unable to pay its debts as per the scheme, it may make an order for winding up the company and such an order shall be deemed to be an order made under section 27345(3) the provisions of this section shall, so far as may be, also apply to a company in respect of which an order has been made before the commencement of this act sanctioning a compromise or an arrangementmerger and amalgamation of companies5232 (1) where an application is made to the tribunal under section 230 for the sanctioning of a compromise or an arrangement proposed between a company and any such persons as are mentioned in that section, and it is shown to the tribunal—(a) that the compromise or arrangement has been proposed for the purposes of, or in connection with, a scheme for the reconstruction of the company or companies involving merger or the amalgamation of any two or more companies; and10(b) that under the scheme, the whole or any part of the undertaking, propertyor liabilities of any company (hereinafter referred to as the transferor company) is required to be transferred to another company (hereinafter referred to as the transferee company), or is proposed to be divided among and transferred to two or more companies,15the tribunal may on such application, order a meeting of the creditors or class of creditors or the members or class of members, as the case may be, to be called, held and conducted in such manner as the tribunal may direct and the provisions of sub-sections (3) to (6) ofsection 230 shall apply mutatis mutandis20(2) where an order has been made by the tribunal under sub-section (1), merging companies or the companies in respect of which a division is proposed, shall also be required to circulate the following for the meeting so ordered by the tribunal, namely:—(a) the draft of the proposed terms of the scheme drawn up and adopted by thedirectors of the merging company;(b) confirmation that a copy of the draft scheme has been filed with the registrar;25(c) a report adopted by the directors of the merging companies explainingeffect of compromise on each class of shareholders, key managerial personnel, promotors and non-promoter shareholders laying out in particular the share exchange ratio, specifying any special valuation difficulties;(d) the report of the expert with regard to valuation, if any;30(e) a supplementary accounting statement if the last annual accounts of any ofthe merging company relate to a financial year ending more than six months before the first meeting of the company summoned for the purposes of approving the scheme35(3) the tribunal, after satisfying itself that the procedure specified in sub-sections(1) and (2) has been complied with, may, by order, sanction the compromise or arrangement or by a subsequent order, make provision for the following matters, namely:—(a) the transfer to the transferee company of the whole or any part of the undertaking, property or liabilities of the transferor company from a date to be determined by the parties unless the tribunal, for reasons to be recorded by it in writing, decides otherwise;40(b) the allotment or appropriation by the transferee company of any shares, debentures, policies or other like instruments in the company which, under the compromise or arrangement, are to be allotted or appropriated by that company to or for any person:45provided that a transferee company shall not, as a result of the compromise or arrangement, hold any shares in its own name or in the name of any trust whether on its behalf or on behalf of any of its subsidiary or associate companies and any such shares shall be cancelled or extinguished;(c) the continuation by or against the transferee company of any legal proceedings pending by or against any transferor company on the date of transfer;5(d) dissolution, without winding-up, of any transferor company; (e) the provision to be made for any persons who, within such time and in such manner as the tribunal directs, dissent from the compromise or arrangement;10(f) where share capital is held by any non-resident shareholder under the foreign direct investment norms or guidelines specified by the central government or in accordance with any law for the time being in force, the allotment of shares of the transferee company to such shareholder shall be in the manner specified in the order;(g) the transfer of the employees of the transferor company to the transferee company;15(h) where the transferor company is a listed company and the transferee company is an unlisted company,—(a) the transferee company shall remain an unlisted company until it becomes a listed company;20(b) if shareholders of the transferor company decide to opt out of the transferee company, provision shall be made for payment of the value of shares held by them and other benefits in accordance with a pre-determined price formula or after a valuation is made, and the arrangements under this provision may be made by the tribunal:25provided that the amount of payment or valuation under this clause for any share shall not be less than what has been specified by the securities and exchange board under any regulations framed by it;30(i) where the transferor company is dissolved, the fee, if any, paid by the transferor company on its authorised capital shall be set-off against any fees payable by the transferee company on its authorised capital subsequent to the amalgamation; and(j) such incidental, consequential and supplemental matters as are deemed necessary to secure that the merger or amalgamation is fully and effectively carried out:35provided that no compromise or arrangement shall be sanctioned by the tribunal unless a certificate by the company's auditor has been filed with the tribunal to the effect that the accounting treatment, if any, proposed in the scheme of compromise or arrangement is in conformity with the accounting standards prescribed under section 13340(4) where an order under this section provides for the transfer of any property or liabilities, then, by virtue of the order, that property shall be transferred to the transferee company and the liabilities shall be transferred to and become the liabilities of the transferee company and any property may, if the order so directs, be freed from any charge which shall by virtue of the compromise or arrangement, cease to have effect(5) every company in relation to which the order is made shall cause a certified copy of the order to be filed with the registrar for registration within thirty days of the receipt of certified copy of the order5(6) the scheme under this section shall clearly indicate an appointed date from which it shall be effective and the scheme shall be deemed to be effective from such date and not at a date subsequent to the appointed date10(7) every company in relation to which the order is made shall, until the completion of the scheme, file a statement in such form and within such time as may be prescribed with the registrar every year duly certified by a chartered accountant or a cost accountant or a company secretary in practice indicating whether the scheme is being complied with in accordance with the orders of the tribunal or not15(8) if a transferor company or a transferee company contravenes the provisions of this section, the transferor company or the transferee company, as the case may be, shall be punishable with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees and every officer of such transferor or transferee company who is in default, shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees, or with bothexplanation—for the purposes of this section,—20 25(i) in a scheme involving a merger, where under the scheme the undertaking,property and liabilities of one or more companies, including the company in respect of which the compromise or arrangement is proposed, are to be transferred to another existing company, it is a merger by absorption, or where the undertaking, property and liabilities of two or more companies, including the company in respect of which the compromise or arrangement is proposed, are to be transferred to a new company, whether or not a public company, it is a merger by formation of a new company;(ii) references to merging companies are in relation to a merger by absorption, to the transferor and transferee companies, and, in relation to a merger by formation of a new company, to the transferor companies;30(iii) a scheme involves a division, where under the scheme the undertaking,property and liabilities of the company in respect of which the compromise or arrangement is proposed are to be divided among and transferred to two or more companies each of which is either an existing company or a new company; and35(iv) property includes assets, rights and interests of every description andliabilities include debts and obligations of every descriptionmerger or amalgamation of certain companies233 (1) notwithstanding the provisions of section 230 and section 232, a scheme of merger or amalgamation may be entered into between two or more small companies or between a holding company and its wholly-owned subsidiary company or such other class or classes of companies as may be prescribed, subject to the following, namely:—40(a) a notice of the proposed scheme inviting objections or suggestions, if any,from the registrar and official liquidators where registered office of the respective companies are situated or persons affected by the scheme within thirty days is issued by the transferor company or companies and the transferee company;45(b) the objections and suggestions received are considered by the companiesin their respective general meetings and the scheme is approved by the respective members or class of members at a general meeting holding at least ninety per cent of the total number of shares;(c) each of the companies involved in the merger files a declaration of solvency, in the prescribed form, with the registrar of the place where the registered office of the company is situated; and5(d) the scheme is approved by majority representing nine-tenths in value of the creditors or class of creditors of respective companies indicated in a meeting convened by the company by giving a notice of twenty-one days along with the scheme to its creditors for the purpose or otherwise approved in writing (2) the transferee company shall file a copy of the scheme so approved in the manner as may be prescribed, with the central government, registrar and the official liquidator where the registered office of the company is situated10(3) on the receipt of the scheme, if the registrar or the official liquidator has no objections or suggestions to the scheme, the central government shall register the same and issue a confirmation thereof to the companies15(4) if the registrar or official liquidator has any objections or suggestions, he may communicate the same in writing to the central government within a period of thirty days:provided that if no such communication is made, it shall be presumed that he has no objection to the scheme20(5) if the central government after receiving the objections or suggestions or for any reason is of the opinion that such a scheme is not in public interest or in the interest of the creditors, it may file an application before the tribunal within a period of sixty days of the receipt of the scheme under sub-section (2) stating its objections and requesting that the tribunal may consider the scheme under section 23225(6) on receipt of an application from the central government or from any person, if the tribunal, for reasons to be recorded in writing, is of the opinion that the scheme should be considered as per the procedure laid down in section 232, the tribunal may direct accordingly or it may confirm the scheme by passing such order as it deems fit:provided that if the central government does not have any objection to the scheme or it does not file any application under this section before the tribunal, it shall be deemed that it has no objection to the scheme30(7) a copy of the order under sub-section (6) confirming the scheme shall be communicated to the registrar having jurisdiction over the transferee company and the persons concerned and the registrar shall register the scheme and issue a confirmation thereof to the companies and such confirmation shall be communicated to the registrars where transferor company or companies were situated35(8) the registration of the scheme under sub-section (3) or sub-section (7) shall be deemed to have the effect of dissolution of the transferor company without process of winding up(9) the registration of the scheme shall have the following effects, namely:—40(a) transfer of property or liabilities of the transferor company to the transferee company so that the property becomes the property of the transferee company and the liabilities become the liabilities of the transferee company;(b) the charges, if any, on the property of the transferor company shall be applicable and enforceable as if the charges were on the property of the transferee company;45(c) legal proceedings by or against the transferor company pending before any court of law shall be continued by or against the transferee company; and(d) where the scheme provides for purchase of shares held by the dissenting shareholders or settlement of debt due to dissenting creditors, such amount, to the extent it is unpaid, shall become the liability of the transferee company (10) a transferee company shall not on merger or amalgamation, hold any shares in its own name or in the name of any trust either on its behalf or on behalf of any of its subsidiary or associate company and all such shares shall be cancelled or extinguished on the merger or amalgamation5(11) the transferee company shall file an application with the registrar along withthe scheme registered, indicating the revised authorised capital and pay the prescribed fees due on revised capital:10provided that the fee, if any, paid by the transferor company on its authorised capital prior to its merger or amalgamation with the transferee company shall be set-off against the fees payable by the transferee company on its authorised capital enhanced by the merger or amalgamation(12) the provisions of this section shall mutatis mutandis apply to a company or companies specified in sub-section (1) in respect of a scheme of compromise or arrangement referred to in section 230 or division or transfer of a company referred to clause (b) of subsection (1) of section 23215(13) the central government may provide for the merger or amalgamation of companies in such manner as may be prescribed(14) a company covered under this section may use the provisions of section 232 for the approval of any scheme for merger or amalgamation20merger or amalgamation of company with foreign company234 (1) the provisions of this chapter unless otherwise provided under any otherlaw for the time being in force, shall apply mutatis mutandis to schemes of mergers and amalgamations between companies registered under this act and companies incorporated in the jurisdictions of such countries as may be notified from time to time by the central government:25provided that the central government may make rules, in consultation with thereserve bank of india, in connection with mergers and amalgamations provided under this section30(2) subject to the provisions of any other law for the time being in force, a foreigncompany, may with the prior approval of the reserve bank of india, merge into a company registered under this act or vice versa and the terms and conditions of the scheme ofmerger may provide, among other things, for the payment of consideration to the shareholders of the merging company in cash, or in depository receipts, or partly in cash and partly in depository receipts, as the case may be, as per the scheme to be drawn up for the purpose35explanation—for the purposes of sub-section (2), the expression "foreigncompany" means any company or body corporate incorporated outside india whether having a place of business in india or not40power to acquire shares of shareholders dissenting from scheme or contract approved by majority45235 (1) where a scheme or contract involving the transfer of shares or any class of shares in a company (the transferor company) to another company (the transferee company) has, within four months after making of an offer in that behalf by the transferee company, been approved by the holders of not less than nine-tenths in value of the shares whose transfer is involved, other than shares already held at the date of the offer by, or by a nominee of the transferee company or its subsidiary companies, the transferee company may, at any time within two months after the expiry of the said four months, give notice in the prescribed manner to any dissenting shareholder that it desires to acquire his shares(2) where a notice under sub-section (1) is given, the transferee company shall, unless on an application made by the dissenting shareholder to the tribunal, within one month from the date on which the notice was given and the tribunal thinks fit to order otherwise, be entitled to and bound to acquire those shares on the terms on which, under the scheme or contract, the shares of the approving shareholders are to be transferred to the transferee company510(3) where a notice has been given by the transferee company under sub-section (1)and the tribunal has not, on an application made by the dissenting shareholder, made an order to the contrary, the transferee company shall, on the expiry of one month from the date on which the notice has been given, or, if an application to the tribunal by the dissenting shareholder is then pending, after that application has been disposed off, send a copy of the notice to the transferor company together with an instrument of transfer, to be executed on behalf of the shareholder by any person appointed by the transferee company and on its own behalf by the transferor company, and pay or transfer to the transferor company the amount or other consideration representing the price payable by the transferee company for the shares which, by virtue of this section, that company is entitled to acquire, and the transferor company shall—15(a) thereupon register the transferee company as the holder of those shares;and(b) within one month of the date of such registration, inform the dissenting shareholders of the fact of such registration and of the receipt of the amount or other consideration representing the price payable to them by the transferee company20(4) any sum received by the transferor company under this section shall be paid into a separate bank account, and any such sum and any other consideration so received shall be held by that company in trust for the several persons entitled to the shares in respect of which the said sum or other consideration were respectively received and shall be disbursed to the entitled shareholders within sixty days25(5) in relation to an offer made by a transferee company to shareholders of a transferor company before the commencement of this act, this section shall have effect with the following modifications, namely:—30(a) in sub-section (1), for the words "the shares whose transfer is involved other than shares already held at the date of the offer by, or by a nominee of, the transferee company or its subsidiaries,", the words "the shares affected" shall be substituted; and(b) in sub-section (3), the words "together with an instrument of transfer, to be executed on behalf of the shareholder by any person appointed by the transferee company and on its own behalf by the transferor company" shall be omitted35explanation—for the purposes of this section, "dissenting shareholder" includes a shareholder who has not assented to the scheme or contract and any shareholder who has failed or refused to transfer his shares to the transferee company in accordance with the scheme or contract40purchase of minority shareholding45236 (1) in the event of an acquirer, or a person acting in concert with such acquirer,becoming registered holder of ninety per cent or more of the issued equity share capital of a company, or in the event of any person or group of persons becoming ninety per cent majority or holding ninety per cent of the issued equity share capital of a company, by virtue of an amalgamation, share exchange, conversion of securities or for any other reason, such acquirer, person or group of persons, as the case may be, shall notify the company of their intention to buy the remaining equity shares(2) the acquirer, person or group of persons under sub-section (1) shall offer to the minority shareholders of the company for buying the equity shares held by such shareholders at a price determined on the basis of valuation by a registered valuer in accordance with such rules as may be prescribed5(3) without prejudice to the provisions of sub-sections (1) and (2), the minority shareholders of the company may offer to the majority shareholders to purchase the minority equity shareholding of the company at the price determined in accordance with such rules as may be prescribed under sub-section (2)10(4) the majority shareholders shall deposit an amount equal to the value of shares to be acquired by them under sub-section (2) or sub-section (3), as the case may be, in a separate bank account to be operated by the transferor company for at least one year for payment to the minority shareholders and such amount shall be disbursed to the entitled shareholders within sixty days:15provided that such disbursement shall continue to be made to the entitled shareholders for a period of one year, who for any reason had not been made disbursement within the said period of sixty days or if the disbursement have been made within the aforesaid period of sixty days, fail to receive or claim payment arising out of such disbursement20(5) in the event of a purchase under this section, whether wholly or partially, the transferor company shall act as a transfer agent for receiving and paying the price to the minority shareholders and for taking delivery of the shares and delivering such shares to the majority, as the case may be25(6) in the absence of a physical delivery of shares by the shareholders within the time specified by the company, the share certificates shall be deemed to be cancelled, and the transferor company shall be authorised to issue shares in lieu of the cancelled shares and complete the transfer in accordance with law and make payment of the price out of deposit made under sub-section (4) by the majority in advance to the minority by despatch of such payment30(7) in the event of a majority shareholder or shareholders requiring a full purchase and making payment of price by deposit with the company for any shareholder or shareholders who have died or ceased to exist, or whose heirs, successors, administrators or assignees have not been brought on record by transmission, the right of such shareholders to make an offer for sale of minority equity shareholding shall continue and be available for a period of three years from the date of majority acquisition or majority shareholding3540(8) where the shares of minority shareholders have been acquired in pursuance ofthis section and as on or prior to the date of transfer following such acquisition, the shareholders holding seventy-five per cent or more minority equity shareholding negotiate or reach an understanding on a higher price for any transfer, proposed or agreed upon, of the shares held by them without disclosing the fact or likelihood of transfer taking place on the basis of such negotiation, understanding or agreement, the majority shareholders shall share the additional compensation so received by them with such minority shareholders on a pro rata basisexplanation—for the purposes of this section, the expressions "acquirer" and"person acting in concert" shall have the meanings respectively assigned to them in clause (b) and clause (e) of sub-regulation (1) of regulation 2 of the securities and exchange board of india (substantial acquisition of shares and takeovers) regulations, 1997(9) when a shareholder or the majority equity shareholder fails to acquire full purchase of the shares of the minority equity shareholders, then, the provisions of this section shall continue to apply to the residual minority equity shareholders, even though,—5(a) the shares of the company of the residual minority equity shareholder had been delisted; and15 of 1992(b) the period of one year or the period specified in the regulations made by the securities and exchange board under the securities and exchange board of india act, 1992, had elapsed10237 (1) where the central government is satisfied that it is essential in the public interest that two or more companies should amalgamate, the central government may, by order notified in the official gazette, provide for the amalgamation of those companies into a single company with such constitution, with such property, powers, rights, interests, authorities and privileges, and with such liabilities, duties and obligations, as may be specified in the orderpower of central government to provide for amalgamation of companies in public interest15(2) the order under sub-section (1) may also provide for the continuation by or against the transferee company of any legal proceedings pending by or against any transferor company and such consequential, incidental and supplemental provisions as may, in the opinion of the central government, be necessary to give effect to the amalgamation20 25(3) every member or creditor, including a debenture holder, of each of the transferor companies before the amalgamation shall have, as nearly as may be, the same interest in or rights against the transferee company as he had in the company of which he was originally a member or creditor, and in case the interest or rights of such member or creditor in or against the transferee company are less than his interest in or rights against the original company, he shall be entitled to compensation to that extent, which shall be assessed by such authority as may be prescribed and every such assessment shall be published in the official gazette, and the compensation so assessed shall be paid to the member or creditor concerned by the transferee company30(4) any person aggrieved by any assessment of compensation made by the prescribed authority under sub-section (3) may, within a period of thirty days from the date of publication of such assessment in the official gazette, prefer an appeal to the tribunal and thereupon the assessment of the compensation shall be made by the tribunal(5) no order shall be made under this section unless—35(a) a copy of the proposed order has been sent in draft to each of the companies concerned;(b) the time for preferring an appeal under sub-section (4) has expired, or where any such appeal has been preferred, the appeal has been finally disposed off; and40(c) the central government has considered, and made such modifications, if any, in the draft order as it may deem fit in the light of suggestions and objections which may be received by it from any such company within such period as the central government may fix in that behalf, not being less than two months from the date on which the copy aforesaid is received by that company, or from any class of shareholders therein, or from any creditors or any class of creditors thereof45(6) the copies of every order made under this section shall, as soon as may be after it has been made, be laid before each house of parliament238 (1) in relation to every offer of a scheme or contract involving the transfer of shares or any class of shares in the transferor company to the transferee company under section 237,—registration of offer of schemes involving transfer of shares5(a) every circular containing such offer and recommendation to the members of the transferor company by its directors to accept such offer shall be accompanied by such information and in such manner as may be prescribed;(b) every such offer shall contain a statement by or on behalf of the transfereecompany, disclosing the steps it has taken to ensure that necessary cash will be available; and10(c) every such circular shall be presented to the registrar for registration andno such circular shall be issued until it is so registered:15provided that the registrar may refuse, for reasons to be recorded in writing, to register any such circular which does not contain the information required to be given under clause (a) or which sets out such information in a manner likely to give a false impression, and communicate such refusal to the parties within thirty days of the application(2) an appeal shall lie to the tribunal against an order of the registrar refusing to register any circular under sub-section (1)20(3) the director who issues a circular which has not been presented for registration and registered under clause (c) of sub-section (1), shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupeespreservation of books and papers of amalgamated companies25239 the books and papers of a company which has been amalgamated with, or whose shares have been acquired by, another company under this chapter shall not be disposed of without the prior permission of the central government and before granting such permission, that government may appoint a person to examine the books and papers or any of them for the purpose of ascertaining whether they contain any evidence of the commission of an offence in connection with the promotion or formation, or the management of the affairs, of the transferor company or its amalgamation or the acquisition of its shares30240 notwithstanding anything in any other law for the time being in force, the liability in respect of offences committed under this act by the officers in default, of the transferor company prior to its merger, amalgamation or acquisition shall continue after such merger, amalgamation or acquisitionliability of officers in respect of offences committed prior to merger, amalgamation, etc chapter xvi35 prevention of oppression and mismanagement241 (1) any member of a company who complains that—application to tribunal for relief in cases of oppression, etc40(a) the affairs of the company have been or are being conducted in a manner prejudicial to public interest or in a manner prejudicial or oppressive to him or any other member or members or in a manner prejudicial to the interests of the company; or45(b) the material change, not being a change brought about by, or in the interests of, any creditors, including debenture holders or any class of shareholders of the company, has taken place in the management or control of the company, whether by an alteration in the board of directors, or manager, or in the ownership of the company's shares, or if it has no share capital, in its membership, or in any other manner whatsoever, and that by reason of such change, it is likely that the affairs of the company will be conducted in a manner prejudicial to its interests or its members or any class of members, may apply to the tribunal, provided such member has a right to apply under section 244, for an order under this chapter5(2) the central government, if it is of the opinion that the affairs of the company are being conducted in a manner prejudicial to public interest, it may itself apply to the tribunal for an order under this chapter242 (1) if, on any application made under section 241, the tribunal is of the opinion—powers of tribunal10(a) that the company's affairs have been or are being conducted in a manner prejudicial or oppressive to any member or members or prejudicial to public interest or in a manner prejudicial to the interests of the company; and(b) that to wind up the company would unfairly prejudice such member or members, but that otherwise the facts would justify the making of a winding up order on the ground that it was just and equitable that the company should be wound up,15the tribunal may, with a view to bringing to an end the matters complained of, make such order as it thinks fit(2) without prejudice to the generality of the powers under sub-section (1), an order under that sub-section may provide for—(a) the regulation of conduct of affairs of the company in future;20(b) the purchase of shares or interests of any members of the company by other members thereof or by the company;(c) in the case of a purchase of its shares by the company as aforesaid, the consequent reduction of its share capital;(d) restrictions on the transfer or allotment of the shares of the company;25(e) the termination, setting aside or modification, of any agreement, howsoever arrived at, between the company and the managing director, any other director or manager, upon such terms and conditions as may, in the opinion of the tribunal, be just and equitable in the circumstances of the case;30(f) the termination, setting aside or modification of any agreement between the company and any person other than those referred to in clause (e):provided that no such agreement shall be terminated, set aside or modified except after due notice and after obtaining the consent of the party concerned;35(g) the setting aside of any transfer, delivery of goods, payment, execution or other act relating to property made or done by or against the company within three months before the date of the application under this section, which would, if made or done by or against an individual, be deemed in his insolvency to be a fraudulent preference;(h) removal of the managing director, manager or any of the directors of the company;40(i) recovery of undue gains made by any managing director, manager or director during the period of his appointment as such and the manner of utilisation of the recovery including transfer to investor education and protection fund or repayment to identifiable victims;(j) the manner in which the managing director or manager of the company may be appointed subsequent to an order removing the existing managing director or manager of the company made under clause (h);(k) appointment of such number of persons as directors, who may be required by the tribunal to report to the tribunal on such matters as the tribunal may direct;5(l) imposition of costs as may be deemed fit by the tribunal; (m) any other matter for which, in the opinion of the tribunal, it is just and equitable that provision should be made10(3) a certified copy of the order of the tribunal under sub-section (1) shall be filed by the company with the registrar within thirty days of the order of the tribunal(4) the tribunal may, on the application of any party to the proceeding, make any interim order which it thinks fit for regulating the conduct of the company's affairs upon such terms and conditions as appear to it to be just and equitable15(5) where an order of the tribunal under sub-section (1) makes any alteration in the memorandum or articles of a company, then, notwithstanding any other provision of this act, the company shall not have power, except to the extent, if any, permitted in the order, to make, without the leave of the tribunal, any alteration whatsoever which is inconsistent with the order, either in the memorandum or in the articles20(6) subject to the provisions of sub-section (1), the alterations made by the order in the memorandum or articles of a company shall, in all respects, have the same effect as if they had been duly made by the company in accordance with the provisions of this act and the said provisions shall apply accordingly to the memorandum or articles so altered25(7) a certified copy of every order altering, or giving leave to alter, a company's memorandum or articles, shall within thirty days after the making thereof, be filed by the company with the registrar who shall register the same30(8) if a company contravenes the provisions of sub-section (5), the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with both243 (1) where an order made under section 242 terminates, sets aside or modifies an agreement such as is referred to in sub-section (2) of that section,—35consequence of termination or modification of certain agreements(a) such order shall not give rise to any claims whatever against the companyby any person for damages or for compensation for loss of office or in any other respect either in pursuance of the agreement or otherwise;40(b) no managing director or other director or manager whose agreement is soterminated or set aside shall, for a period of five years from the date of the order terminating or setting aside the agreement, without the leave of the tribunal, be appointed, or act, as the managing director or other director or manager of the company:45provided that the tribunal shall not grant leave under this clause unless notice of the intention to apply for leave has been served on the central government and that government has been given a reasonable opportunity of being heard in the matter(2) any person who knowingly acts as a managing director or other director or manager of a company in contravention of clause (b) of sub-section (1), and every other director of the company who is knowingly a party to such contravention, shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to five lakh rupees, or with both5244 (1) the following members of a company shall have the right to apply under section 241, namely:—right to apply under section 24110(a) in the case of a company having a share capital, not less than one hundred members of the company or not less than one-tenth of the total number of its members, whichever is less, or any member or members holding not less than onetenth of the issued share capital of the company, subject to the condition that the applicant or applicants has or have paid all calls and other sums due on his or their shares;(b) in the case of a company not having a share capital, not less than one-fifth of the total number of its members:15provided that the tribunal may, on an application made to it in this behalf, waive all or any of the requirements specified in clause (a) or clause (b) so as to enable the members to apply under section 24120explanation—for the purposes of this sub-section, where any share or shares are held by two or more persons jointly, they shall be counted only as one member(2) where any members of a company are entitled to make an application under subsection (1), any one or more of them having obtained the consent in writing of the rest, may make the application on behalf and for the benefit of all of themclass action25245 (1) such number of member or members, depositor or depositors or any classof them, as the case may be, as are indicated in sub-section (2) may, if they are of the opinion that the management or conduct of the affairs of the company are being conducted in a manner prejudicial to the interests of the company or its members or depositors, file an application before the tribunal on behalf of the members or depositors for seeking all or any of the following orders, namely:—30(a) to restrain the company from committing an act which is ultra vires thearticles or memorandum of the company;(b) to restrain the company from committing breach of any provision of thecompany's memorandum or articles;35(c) to declare a resolution altering the memorandum or articles of the company as void if the resolution was passed by suppression of material facts or obtained by mis-statement to the members or depositors;(d) to restrain the company and its directors from acting on such resolution; (e) to restrain the company from doing an act which is contrary to the provisions of this act or any other law for the time being in force;40(f) to restrain the company from taking action contrary to any resolution passed by the members;51015 20 25 30 35 404550(g) to claim damages or compensation or demand any other suitable action from or against— (i) the company or its directors for any fraudulent, unlawful or wrongful act or omission or conduct or any likely act or omission or conduct on its or their part;(ii) the auditor including audit firm of the company for any improper or misleading statement of particulars made in his audit report or for any fraudulent, unlawful or wrongful act or conduct; or(iii) any expert or advisor or consultant or any other person for any incorrect or misleading statement made to the company or for any fraudulent, unlawful or wrongful act or conduct or any likely act or conduct on his part; (h) to seek any other remedy as the tribunal may deem fit(2) (i) the requisite number of members provided in sub-section (1) shall be as under:—(a) in the case of a company having a share capital, not less than one hundred members of the company or not less than such percentage of the total number of its members as may be prescribed, whichever is less, or any member or members holding not less than such percentage of the issued share capital of the company as may be prescribed, subject to the condition that the applicant or applicants has or have paid all calls and other sums due on his or their shares;(b) in the case of a company not having a share capital, not less than one-fifth of the total number of its members (ii) the requisite number of depositors provided in sub-section (1) shall not be less than one hundred depositors or not less than such percentage of the total number of depositors as may be prescribed, whichever is less, or any depositor or depositors to whom the company owes such percentage of total deposits of the company as may be prescribed(3) in considering an application under sub-section (1), the tribunal shall take into account, in particular—(a) whether the member or depositor is acting in good faith in making the application for seeking an order;(b) any evidence before it as to the involvement of any person other than directors or officers of the company on any of the matters provided in clauses (a) to (f) of subsection (1);(c) whether the cause of action is one which the member or depositor could pursue in his own right rather than through an order under this section;(d) any evidence before it as to the views of the members or depositors of the company who have no personal interest, direct or indirect, in the matter being proceeded under this section;(e) where the cause of action is an act or omission that is yet to occur, whether the act or omission could be, and in the circumstances would be likely to be—(i) authorised by the company before it occurs; or (ii) ratified by the company after it occurs;(f) where the cause of action is an act or omission that has already occurred, whether the act or omission could be, and in the circumstances would be likely to be, ratified by the company (4) if an application filed under sub-section (1) is admitted, then the tribunal shall have regard to the following, namely:—(a) public notice shall be served on admission of the application to all the members or depositors of the class in such manner as may be prescribed;(b) all similar applications prevalent in any jurisdiction should be consolidated into a single application and the class members or depositors should be allowed to choose the lead applicant and in the event the members or depositors of the class are unable to come to a consensus, the tribunal shall have the power to appoint a lead applicant, who shall be in charge of the proceedings from the applicant's side;51015 20(c) two class action applications for the same cause of action shall not be allowed;(d) the cost or expenses connected with the application for class action shall be defrayed by the company or any other person responsible for any oppressive act (5) any order passed by the tribunal shall be binding on the company and all its members, depositors and auditor including audit firm or expert or consultant or advisor or any other person associated with the company(6) any company which fails to comply with an order passed by the tribunal under this section shall be punishable with fine which shall not be less than five lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees(7) where any application filed before the tribunal is found to be frivolous or vexatious, it shall, for reasons to be recorded in writing, reject the application and make an order that the applicant shall pay to the opposite party such cost, not exceeding one lakh rupees, as may be specified in the order(8) nothing contained in this section shall apply to a banking company (9) subject to the compliance of this section, an application may be filed or any other action may be taken under this section by any person, group of persons or any association of persons representing the persons affected by any act or omission, specified in sub-section (1)246 the provisions of sections 337 to 341 (both inclusive) shall apply mutatis mutandis, in relation to a fraudulent application made to the tribunal under section 241 or section 245application of certain provisions to proceedings under section 241 or section 245 chapter xviiregistered valuers25valuation by registered valuers30 35 4045247 (1) where a valuation is required to be made in respect of any property, stocks, shares, debentures, securities or goodwill or any other assets (herein referred to as the assets) or net worth of a company or its liabilities under the provision of this act, it shall be valued by a person having such qualifications and experience and registered as a valuer in such manner, on such terms and conditions as may be prescribed and appointed by the audit committee or in its absence by the board of directors of that company(2) the valuer appointed under sub-section (1) shall,—(a) make an impartial, true and fair valuation of any assets which may be required to be valued;(b) exercise due diligence while performing the functions as valuer; (c) make the valuation in accordance with such rules as may be prescribed; and (d) not undertake valuation of any assets in which he has a direct or indirect interest or becomes so interested at any time during or after the valuation of assets (3) if a valuer contravenes the provisions of this section or the rules made thereunder, the valuer shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees:provided that if the valuer has contravened such provisions with the intention to defraud the company or its members, he shall be punishable with imprisonment for a term which may extend to one year and with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees(4) where a valuer has been convicted under sub-section (3), he shall be liable to—(i) refund the remuneration received by him to the company; and (ii) pay for damages to the company or to any other person for loss arising out of incorrect or misleading statements of particulars made in his report chapter xviii removal of names of companies from the register of companies5power of registrar to remove name of company from register of companies1015 20 25 30 35 40248 (1) where the registrar has reasonable cause to believe that—(a) a company has failed to commence its business within one year of its incorporation;(b) the subscribers to the memorandum have not paid the subscription which they had undertaken to pay within a period of one hundred and eighty days from the date of incorporation of a company and a declaration under sub-section (1) of section 11 to this effect has not been filed within one hundred and eighty days of its incorporation; or(c) a company is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company under section 455, he shall send a notice to the company and all the directors of the company, of his intention to remove the name of the company from the register of companies and requesting them to send their representations along with copies of the relevant documents, if any, within a period of thirty days from the date of the notice(2) without prejudice to the provisions of sub-section (1), a company may, after extinguishing all its liabilities, by a special resolution or consent of seventy-five per cent members in terms of paid-up share capital, file an application in the prescribed manner to the registrar for removing the name of the company from the register of companies on all or any of the grounds specified in sub-section (1) and the registrar shall, on receipt of such application, cause a public notice to be issued in the prescribed manner:provided that in the case of a company regulated under a special act, approval of the regulatory body constituted or established under that act shall also be obtained and enclosed with the application(3) nothing in sub-section (2) shall apply to a company registered under section 8(4) a notice issued under sub-section (1) or sub-section (2) shall be published in the prescribed manner and also in the official gazette for the information of the general public(5) at the expiry of the time mentioned in the notice, the registrar may, unless cause to the contrary is shown by the company, strike off its name from the register of companies, and shall publish notice thereof in the official gazette, and on the publication in the official gazette of this notice, the company shall stand dissolved(6) the registrar, before passing an order under sub-section (5), shall satisfy himself that sufficient provision has been made for the realisation of all amount due to the company and for the payment or discharge of its liabilities and obligations by the company within a reasonable time and, if necessary, obtain necessary undertakings from the managing director, director or other persons in charge of the management of the company:provided that notwithstanding the undertakings referred to in this sub-section, the assets of the company shall be made available for the payment or discharge of all its liabilities and obligations even after the date of the order removing the name of the company from the register of companies45(7) the liability, if any, of every director, manager or other officer who was exercising any power of management, and of every member of the company dissolved under sub-section (5), shall continue and may be enforced as if the company had not been dissolved(8) nothing in this section shall affect the power of the tribunal to wind up a company the name of which has been struck off from the register of companies50249 (1) an application under sub-section (2) of section 248 on behalf of a company shall not be made if, at any time in the previous three months, the company—(a) has changed its name or shifted its registered office from one state to another;restrictions on making application under section 248 in certain situations51015effect of company notified as dissolved20fraudulent application for removal of name25 30appeal to tribunal35 4045 50 55(b) has made a disposal for value of property or rights held by it, immediately before cesser of trade or otherwise carrying on of business, for the purpose of disposal for gain in the normal course of trading or otherwise carrying on of business;(c) has engaged in any other activity except the one which is necessary or expedient for the purpose of making an application under that section, or deciding whether to do so or concluding the affairs of the company, or complying with any statutory requirement;(d) has made an application to the tribunal for the sanctioning of a compromise or arrangement and the matter has not been finally concluded; or(e) is being wound up under chapter xx, whether voluntarily or by the tribunal(2) if a company files an application under sub-section (2) of section 248 in violation of sub-section (1), it shall be punishable with fine which may extend to one lakh rupees(3) an application filed under sub-section (2) of section 248 shall be withdrawn by the company or rejected by the registrar as soon as conditions under sub-section (1) are brought to his notice250 where a company stands dissolved under section 248, it shall on and from the date mentioned in the notice under sub-section (5) of that section cease to operate as a company and the certificate of incorporation issued to it shall be deemed to have been cancelled from such date except for the purpose of realising the amount due to the company and for the payment or discharge of the liabilities or obligations of the company251 (1) where it is found that an application by a company under sub-section (2) of section 248 has been made with the object of evading the liabilities of the company or with the intention to deceive the creditors or to defraud any other persons, the persons in charge of the management of the company shall, notwithstanding that the company has been notified as dissolved—(a) be jointly and severally liable to any person or persons who had incurred loss or damage as a result of the company being notified as dissolved; and(b) be punishable for fraud in the manner as provided in section 447(2) without prejudice to the provisions contained in sub-section (1), the registrar may also recommend prosecution of the persons responsible for the filing of an application under sub-section (2) of section 248252 (1) any person aggrieved by an order of the registrar, notifying a company as dissolved under section 248, may file an appeal to the tribunal within a period of three years from the date of the order of the registrar and if the tribunal is of the opinion that the removal of the name of the company from the register of companies is not justified in view of the absence of any of the grounds on which the order was passed by the registrar, it may order restoration of the name of the company in the register of companies:provided that before passing any order under this section, the tribunal shall give a reasonable opportunity of making representations and of being heard to the registrar, the company and all the persons concerned(2) a copy of the order passed by the tribunal shall be filed by the company with the registrar within thirty days from the date of the order and on receipt of the order, the registrar shall cause the name of the company to be restored in the register of companies and shall issue a fresh certificate of incorporation(3) if a company, or any member or creditor or workmen thereof feels aggrieved by the company having its name struck off from the register of companies, the tribunal on an application made by the company, member, creditor or workman before the expiry of twenty years from the publication in the official gazette of the notice under sub-section (5) of section 248 may, if satisfied that the company was, at the time of its name being struck off, carrying on business or in operation or otherwise it is just that the name of the company be restored to the register of companies, order the name of the company to be restored to the register of companies, and the tribunal may, by the order, give such other directions and make such provisions as deemed just for placing the company and all other persons in the same position as nearly as may be as if the name of the company had not been struck off from the register of companies chapter xix revival and rehabilitation of sick companiesdetermination of sickness5253 (1) where on a demand by the secured creditors of a company representing fifty per cent or more of its outstanding amount of debt, the company has failed to pay the debt within a period of thirty days of the service of the notice of demand or to secure or compound it to the reasonable satisfaction of the creditors, any secured creditor may file an application to the tribunal in the prescribed manner along with the relevant evidence for such default, non-repayment or failure to offer security or compound it, for a determination that the company be declared as a sick company10(2) the applicant under sub-section (1) may, along with an application under that subsection or at any stage of the proceedings thereafter, make an application for the stay of any proceeding for the winding up of the company or for execution, distress or the like against any property and assets of the company or for the appointment of a receiver in respect thereof and that no suit for the recovery of any money or for the enforcement of any security against the company shall lie or be proceeded with15(3) the tribunal may pass an order in respect of an application under sub-section (2)which shall be operative for a period of one hundred and twenty days(4) the company referred to in sub-section (1) may also file an application to the tribunal on one or more of the grounds specified in sub-sections (1) and (2) above20(5) without prejudice to the provisions of sub-sections (1) to (4), the central government or the reserve bank of india or a state government or a public financial institution or a state level institution or a scheduled bank may, if it has sufficient reasons to believe that any company has become, for the purposes of this act, a sick company, make a reference in respect of such company to the tribunal for determination of the measures which may be adopted with respect to such company:25provided that a reference shall not be made under this sub-section in respect of any company by—(a) the government of any state unless all or any of the undertakings belonging to such company are situated in such state;30(b) a public financial institution or a state level institution or a scheduled bankunless it has, by reason of any financial assistance or obligation rendered by it, or undertaken by it, with respect to such company, an interest in such company(6) where an application under sub-section (1) or sub-section (4) has been filed,—(a) the company shall not dispose of or otherwise enter into any obligation withregard to, its properties or assets except as required in the normal course of business;35(b) the board of directors shall not take any steps likely to prejudice the interestsof the creditors(7) the tribunal shall, within a period of sixty days of the receipt of an application under sub-section (1) or sub-section (4), determine whether the company is a sick company or not:40provided that no such determination shall be made in respect of an application undersub-section (1) unless the company has been given notice of the application and a reasonable opportunity to reply to the notice within thirty days of the receipt thereof45(8) if the tribunal is satisfied that a company has become a sick company, the tribunal shall, after considering all the relevant facts and circumstances of the case, decide, as soon as may be, by an order in writing, whether it is practicable for the company to make the repayment of its debts referred to in sub-section (1) within a reasonable time(9) if the tribunal deems fit under sub-section (8) that it is practicable for a sick company to pay its debts referred to in that sub-section within a reasonable time, the tribunal shall, by order in writing and subject to such restrictions or conditions as may be specified in the order, give such time to the company as it may deem fit to make repayment of the debt5application for revival and rehabilitation254 (1) on the determination of a company as a sick company by the tribunal undersection 253, any secured creditor of that company or the company may make an application to the tribunal for the determination of the measures that may be adopted with respect to the revival and rehabilitation of such company:1054 of 2002provided that in case any reference had been made before the tribunal and a scheme for revival and rehabilitation submitted, such reference shall abate if the secured creditors representing three-fourths in value of the amount outstanding against financial assistance disbursed to the borrower have taken measures to recover their secured debt under sub-section (4) of section 13 of the securitisation and reconstruction of financial assets and enforcement of security interest act, 2002:15 54 of 2002provided further that no reference shall be made under this section if the secured creditors representing three-fourths in value of the amount outstanding against financial assistance disbursed to the borrower have taken measures to recover their secured debt under sub-section (4) of section 13 of the securitisation and reconstruction of financial assets and enforcement of security interest act, 2002:20 54 of 2002provided also that where the financial assets of the sick company had been acquired by any securitisation company or reconstruction company under sub-section (1) of section 5 of the securitisation and reconstruction of financial assets and enforcement of security interest act, 2002, no such application shall be made without the consent of securitisation company or reconstruction company which has acquired such assets(2) an application under sub-section (1) shall be accompanied by—25(a) audited financial statements of the company relating to the immediately preceding financial year;(b) such particulars and documents, duly authenticated in such manner, along with such fees as may be prescribed; and(c) a draft scheme of revival and rehabilitation of the company in such manner as may be prescribed:30provided that where the sick company has no draft scheme of revival and rehabilitation to offer, it shall file a declaration to that effect along with the application(3) an application under sub-section (1) shall be made to the tribunal within a period of sixty days from the date of determination of the company as a sick company by the tribunal under section 2533536 of 1963exclusion of certain time in computing period of limitation255 notwithstanding anything contained in the limitation act, 1963 or in any other law for the time being in force, in computing the period of limitation specified for any suit or application in the name and on behalf of a company for which an application has been made to the tribunal under sub-section (1) of section 253, for a determination to be declared as a sick company or at any stage thereafter, the period during which the stay order as provided under sub-section (3) of section 253, was applicable shall be excluded40256 (1) on the receipt of an application under section 254, the tribunal shall, not later than seven days from such receipt,—appointment of interim administrator(a) fix a date for hearing not later than ninety days from date of its receipt;45(b) appoint an interim administrator to convene a meeting of creditors of thecompany in accordance with the provisions of section 257 to be held not later than forty-five days from receipt of the order of the tribunal appointing him to consider whether on the basis of the particulars and documents furnished with the application made under section 254, the draft scheme, if any, filed along with such application or otherwise and any other material available, it is possible to revive and rehabilitate thesick company and such other matters, which the interim administrator may consider necessary for the purpose and to submit his report to the tribunal within sixty days from the date of the order:5provided that where no draft scheme is filed by the company and a declaration has been made to that effect by the board of directors, the tribunal may direct the interim administrator to take over the management of the company; and(c) issue such other directions to the interim administrator as the tribunal may consider necessary to protect and preserve the assets of the sick company and for its proper management10(2) where an interim administrator has been directed to take over the management of the company, the directors and the management of the company shall extend all possible assistance and cooperation to the interim administrator to manage the affairs of the companycommittee of creditors257 (1) the interim administrator shall appoint a committee of creditors with such number of members as he may determine, but not exceeding seven, and as far as possible a representative each of every class of creditors should be represented in that committee15(2) the holding of the meeting of the committee of creditors and the procedure to be followed at such meetings, including the appointment of its chairperson, shall be decided by the interim administrator20(3) the interim administrator may direct any promoter, director or any key managerial personnel to attend any meeting of the committee of creditors and to furnish such information as may be considered necessary by the interim administratororder of tribunal258 on the date of hearing fixed by the tribunal and on consideration of the report of the interim administrator filed under sub-section (1) of section 256, if the tribunal is satisfied that the creditors representing three-fourths in value of the amount outstanding against the sick company present and voting have resolved that—25(a) it is not possible to revive and rehabilitate such company, the tribunal shall record such opinion and order that the proceedings for the winding up of the company be initiated; or30(b) by adopting certain measures the sick company may be revived and rehabilitated, the tribunal shall appoint a company administrator for the company and cause such administrator to prepare a scheme of revival and rehabilitation of the sick company: provided that the tribunal may, if it thinks fit, appoint an interim administrator as the company administrator35appointment of administrator40259 (1) the interim administrator or the company administrator, as the case may be, shall be appointed by the tribunal from a databank maintained by the central government or any institute or agency authorised by the central government in a manner as may be prescribed consisting of the names of company secretaries, chartered accountants, cost accountants and such other professionals as may, by notification, be specified by the central government(2) the terms and conditions of the appointment of interim and company administrators shall be such as may be ordered by the tribunal45(3) the tribunal may direct the company administrator to take over the assets or management of the company and for the purpose of assisting him in the management of the company, the company administrator may, with the approval of the tribunal, engage the services of suitable expert or experts260 (1) the company administrator shall perform such functions as the tribunal may directpowers and duties of company administrator(2) without prejudice to the provisions of sub-section (1), the company administrator may cause to be prepared with respect to the company—| ( | a | ) | | a complete inventory of— ||------------------------------------------------------------------------------------|-----|-----|-----|----------------------------------------------------------------------------------|| 5 | | | | || ( | i | ) | | all assets and liabilities of whatever nature; || ( | ii | ) | | all books of account, registers, maps, plans, records, documents of || title and all other documents of whatever nature; | | | | || 10 | | | | || ( | b | ) | | a list of shareholders and a list of creditors showing separately in the list of || creditors, the secured creditors and unsecured creditors; | | | | || ( | c | ) | | a valuation report in respect of the shares and assets in order to arrive at the || reserve price for the sale of any industrial undertaking of the company or for the | | | | || fixation of the lease rent or share exchange ratio; | | | | || ( | d | ) | | an estimate of the reserve price, lease rent or share exchange ratio; || 15 | | | | || ( | e | ) | | proforma accounts of the company, where no up-to-date audited accounts || are available; and | | | | |(f) a list of workmen of the company and their dues referred to in sub-section (3)of section 32520scheme of revival and rehabilitation261 (1) the company administrator shall prepare or cause to be prepared a scheme of revival and rehabilitation of the sick company after considering the draft scheme filed along with the application under section 254(2) a scheme prepared in relation to any sick company under sub-section (1) may provide for any one or more of the following measures, namely:—| ( | a | ) | | the financial reconstruction of the sick company; ||---------------------------------------|-----|-----|-----|---------------------------------------------------------------------------|| 25 | | | | || ( | b | ) | | the proper management of the sick company by any change in, or by taking || over, the management of such company; | | | | || ( | c | ) | | the amalgamation of— || ( | i | ) | | the sick company with any other company; or || ( | ii | ) | | any other company with the sick company; || ( | d | ) | | takeover of the sick company by a solvent company; || 30 | | | | || ( | e | ) | | the sale or lease of a part or whole of any asset or business of the sick || company; | | | | |(f) the rationalisation of managerial personnel, supervisory staff and workmen in accordance with law;35(g) such other preventive, ameliorative and remedial measures as may beappropriate;(h) repayment or rescheduling or restructuring of the debts or obligations of the sick company to any of its creditors or class of creditors;40(i) such incidental, consequential or supplemental measures as may be necessaryor expedient in connection with or for the purposes of the measures specified in clauses (a) to (h)sanction of scheme262 (1) the scheme prepared by the company administrator under section 261 shallbe placed before the creditors of the sick company in a meeting convened for their approval by the company administrator within the period of sixty days from his appointment, which may be extended by the tribunal up to a period not exceeding one hundred twenty days455(2) the company administrator shall convene separate meetings of secured and unsecured creditors of the sick company and if the scheme is approved by the unsecured creditors representing one-fourth in value of the amount owed by the company to such creditors and the secured creditors, representing three-fourths in value of the amount outstanding against financial assistance disbursed by such creditors to the sick company, the company administrator shall submit the scheme before the tribunal for sanctioning the scheme:10provided that where the scheme relates to amalgamation of the sick company with any other company, such scheme shall, in addition to the approval of the creditors of the sick company under this sub-section, be laid before the general meeting of both the companies for approval by their respective shareholders and no such scheme shall be proceeded with unless it has been approved, with or without modification, by a special resolution passed by the shareholders of that company15(3) (i) the scheme prepared by the company administrator shall be examined by the tribunal and a copy of the scheme with modification, if any, made by the tribunal shall be sent, in draft, to the sick company and the company administrator and in the case of amalgamation, also to any other company concerned, and the tribunal may publish or cause to be published the draft scheme in brief in such daily newspapers as the tribunal may consider necessary, for suggestions and objections, if any, within such period as the tribunal may specify20(ii) the complete draft scheme shall be kept at the place where registered office of the company is situated or at such places as mentioned in the advertisement25(iii) the tribunal may make such modifications, if any, in the draft scheme as it may consider necessary in the light of the suggestions and objections received from the sick company and the company administrator and also from the transferee company and any other company concerned in the amalgamation and from any shareholder or any creditors or employees of such companies(4) on the receipt of the scheme under sub-section (3), the tribunal shall within sixty days therefrom, after satisfying that the scheme had been validly approved in accordance with this section, pass an order sanctioning such scheme30 35(5) where a sanctioned scheme provides for the transfer of any property or liability of the sick company to any other company or person or where such scheme provides for the transfer of any property or liability of any other company or person in favour of the sick company, then, by virtue of, and to the extent provided in, the scheme, on and from the date of coming into operation of the sanctioned scheme or any provision thereof, the property shall be transferred to, and vest in, and the liability shall become the liability of, such other company or person or, as the case may be, the sick company(6) the tribunal may review any sanctioned scheme and make such modifications, as it may deem fit, or may by order in writing direct company administrator, to prepare a fresh scheme providing for such measures as the company administrator may consider necessary40(7) the sanction accorded by the tribunal under sub-section (4) shall be conclusive evidence that all the requirements of the scheme relating to the reconstruction or amalgamation or any other measure specified therein have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the tribunal to be a true copy thereof shall in all legal proceedings be admitted as evidence45(8) a copy of the sanctioned scheme referred to in sub-section (4) shall be filed with the registrar by the sick company within a period of thirty days from the date of receipt of a copy thereof263 on and from the date of the coming into operation of the sanctioned scheme or any provision thereof, the scheme or such provision shall be binding on the sick company scheme to be binding50and the transferee company or, as the case may be, the other company and also on the employees, shareholders, creditors and guarantors of the said companiesimplementation of scheme264 (1) the tribunal shall, for the purpose of effective implementation of the scheme,have power to enforce, modify or terminate any contract or agreement or any obligation pursuant to such agreement or contract entered into by the company with any other person510(2) the tribunal may, if it deems necessary or expedient so to do, by order in writing, authorise the company administrator appointed under section 259 to implement a sanctioned scheme till its successful implementation on such terms and conditions as may be specified in the order and may for that purpose require him to file periodic reports on the implementation of the sanctioned scheme(3) where the whole or substantial assets of the undertaking of the sick company are sold under a sanctioned scheme, the sale proceeds shall be applied towards implementation of the scheme in such manner as the tribunal may direct:provided that debtors and creditors shall have the power to scrutinise and make an appeal for review of the value before final order of fixing value15 20(4) where it is difficult to implement the scheme for any reason or the scheme fails due to non-implementation of obligations under the scheme by the parties concerned, the company administrator authorised to implement the scheme and where there is no such administrator, the company, the secured creditors, or the transferee company in a case of amalgamation, may make an application before the tribunal for modification of the scheme or to declare the scheme as failed and that the company may be wound up25(5) the tribunal shall, within thirty days of presentation of an application under sub-section (4), pass an order for modification of the scheme or, as the case may be, declaring the scheme as failed and pass an order for the winding up of the company if three-fourths in value of the secured creditors consent to the modification of the scheme or winding up of the company3054 of 2002(6) where an application under sub-section (4) has been made before the tribunal and such application is pending before it, such application shall abate, if the secured creditors representing not less than three-fourths in value of the amount outstanding against financial assistance disbursed to the sick company have taken any measures to recover their secured debt under sub-section (4) of section 13 of the securitisation and reconstruction of financial assets and enforcement of security interest act, 2002265 (1) if the scheme is not approved by the creditors in the manner specified in sub-section (2) of section 262, the company administrator shall submit a report to the tribunal within fifteen days and the tribunal shall order for the winding up of the sick company35winding up of company on report of company administrator(2) on the passing of an order under sub-section (1), the tribunal shall conduct the proceedings for winding up of the sick company in accordance with the provisions of chapter xx40266 (1) if, in the course of the scrutiny or implementation of any scheme or proposal including the draft scheme or proposal, it appears to the tribunal that any person who has taken part in the promotion, formation or management of the sick company or its undertaking, including any director, manager, officer or employee of the sick company who are or have been in employment of such company,—power of tribunal to assess damages against delinquent directors, etc(a) has misapplied or retained, or become liable or accountable for, any money or property of the sick company; or45(b) has been guilty of any misfeasance, malfeasance, non-feasance or breach of trust in relation to the sick company, it may, by order, direct him to repay or restore the money or property, with or without interest, as it thinks just, or to contribute such sum to the assets of the sick company or the other person, entitled thereto by way of compensation in respect of the misapplication, retainer,50misfeasance, malfeasance, non-feasance or breach of trust as the tribunal thinks just and proper :provided that such direction by the tribunal shall be without prejudice to any other legal action that may be taken against the person including any punishment for fraud in the manner as provided in section 44751015(2) if the tribunal is satisfied on the basis of the information and evidence in its possession with respect to any person who is or was a director or an officer or other employee of the sick company, that such person by himself or along with others had diverted the funds or other property of such company for any purpose other than the purposes of the company or had managed the affairs of the company in a manner highly detrimental to the interests of the company, the tribunal shall, by order, direct the public financial institutions, scheduled banks and state level institutions not to provide, for a maximum period of ten years from the date of the order, any financial assistance to such person or any firm of which such person is a partner or any company or other body corporate of which such person is a director, by whatever name called, or to disqualify the said director, promoter, manager from being appointed as a director in any company registered under this act for a maximum period of six years(3) no order shall be made by the tribunal under this section against any person unless such person has been given a reasonable opportunity of being heard20punishment for certain offences267 whoever violates the provisions of this chapter or any scheme, or any order, of the tribunal or the appellate tribunal or makes a false statement or gives false evidence before the tribunal or the appellate tribunal or attempts to tamper with the records of reference or appeal filed under this act, he shall be punishable with imprisonment for a term which may extend to seven years and with fine which may extend to ten lakh rupeesbar of jurisdiction25268 no appeal shall lie in any court or other authority and no civil court shall have any jurisdiction in respect of any matter in respect of which the tribunal or the appellate tribunal is empowered by or under this chapter and no injunction shall be granted by any court or other authority in respect of any action taken or proposed to be taken in pursuance of any power conferred by or under this chapter269 (1) there shall be formed a fund to be called the rehabilitation and insolvency fund for the purposes of rehabilitation, revival and liquidation of the sick companies30rehabilitation and insolvency fund(2) there shall be credited to the fund—(a) the grants made by the central government for the purposes of the fund; (b) the amount deposited by the companies as contribution to the fund; (c) the amount given to the fund from any other source; and (d) the income from investment of the amount in the fund35(3) a company which has contributed any amount to the fund shall, in the event of proceedings initiated in respect of such company under this chapter or chapter xx, may make an application to the tribunal for withdrawal of funds not exceeding the amount contributed by it, for making payments to workmen, protecting the assets of the company or meeting the incidental costs during proceedings40(4) the fund shall be managed by an administrator to be appointed by the central government in such manner as may be prescribed chapter xx winding up45270 (1) the winding up of a company may be either—modes of winding up(a) by the tribunal; or (b) voluntary(2) notwithstanding anything contained in any other act, the provisions of this act with respect to winding up shall apply to the winding up of a company in any of the modes specified under sub-section (1) part i—winding up by the tribunal5271 (1) a company may, on a petition under section 272, be wound up by the tribunal,—(a) if the company is unable to pay its debts;circumstances in which company may be wound up by tribunal(b) if the company has, by special resolution, resolved that the company be wound up by the tribunal;10(c) if the company has acted against the interests of the sovereignty and integrity of india, the security of the state, friendly relations with foreign states, public order, decency or morality;(d) if the tribunal has ordered the winding up of the company under chapter xix;15(e) if on an application made by the registrar or any other person authorised by the central government by notification under this act, the tribunal is of the opinion that the affairs of the company have been conducted in a fraudulent manner or the company was formed for fraudulent and unlawful purpose or the persons concerned in the formation or management of its affairs have been guilty of fraud, misfeasance or misconduct in connection therewith and that it is proper that the company be wound up;20(f) if the company has made a default in filing with the registrar its financial statements or annual returns for immediately preceding five consecutive financial years; or(g) if the tribunal is of the opinion that it is just and equitable that the company should be wound up25(2) a company shall be deemed to be unable to pay its debts,—30(a) if a creditor, by assignment or otherwise, to whom the company is indebted for an amount exceeding one lakh rupees then due, has served on the company, by causing it to be delivered at its registered office, by registered post or otherwise, a demand requiring the company to pay the amount so due and the company has failed to pay the sum within twenty-one days after the receipt of such demand or to provide adequate security or re-structure or compound the debt to the reasonable satisfaction of the creditor;35(b) if any execution or other process issued on a decree or order of any court or tribunal in favour of a creditor of the company is returned unsatisfied in whole or in part; or40(c) if it is proved to the satisfaction of the tribunal that the company is unable to pay its debts, and, in determining whether a company is unable to pay its debts, the tribunal shall take into account the contingent and prospective liabilities of the companypetition for winding up272 (1) subject to the provisions of this section, a petition to the tribunal for the winding up of a company shall be presented by—(a) the company;(b) any creditor or creditors, including any contingent or prospective creditor or creditors;45(c) any contributory or contributories;(d) all or any of the persons specified in clauses (a), (b) and (c) together;(e) the registrar;(f) any person authorised by the central government in that behalf; or5(g) in a case falling under clause (c) of sub-section (1) of section 271, by thecentral government or a state government(2) a secured creditor, the holder of any debentures, whether or not any trustee or trustees have been appointed in respect of such and other like debentures, and the trustee for the holders of debentures shall be deemed to be creditors within the meaning of clause (b)of sub-section (1)1015(3) a contributory shall be entitled to present a petition for the winding up of a company,notwithstanding that he may be the holder of fully paid-up shares, or that the company may have no assets at all or may have no surplus assets left for distribution among the shareholders after the satisfaction of its liabilities, and shares in respect of which he is a contributory or some of them were either originally allotted to him or have been held by him, and registered in his name, for at least six months during the eighteen months immediately before the commencement of the winding up or have devolved on him through the death of a former holder(4) the registrar shall be entitled to present a petition for winding up under subsection (1) on any of the grounds specified in sub-section (1) of section 271, except on the grounds specified in clause (b), clause (d) or clause (g) of that sub-section:20provided that the registrar shall not present a petition on the ground that the company is unable to pay its debts unless it appears to him either from the financial condition of the company as disclosed in its balance sheet or from the report of an inspector appointed under section 210 that the company is unable to pay its debts:25provided further that the registrar shall obtain the previous sanction of the centralgovernment to the presentation of a petition:provided also that the central government shall not accord its sanction unless the company has been given a reasonable opportunity of making representations30(5) a petition presented by the company for winding up before the tribunal shall be admitted only if accompanied by a statement of affairs in such form and in such manner as may be prescribed35(6) before a petition for winding up of a company presented by a contingent or prospective creditor is admitted, the leave of the tribunal shall be obtained for the admission of the petition and such leave shall not be granted, unless in the opinion of the tribunal there is a prima facie case for the winding up of the company and until such security for costs has been given as the tribunal thinks reasonable(7) a copy of the petition made under this section shall also be filed with the registrar and the registrar shall, without prejudice to any other provisions, submit his views to the tribunal within sixty days of receipt of such petition40powers of tribunal273 (1) the tribunal may, on receipt of a petition for winding up under section 272pass any of the following orders, namely:—(a) dismiss it, with or without costs; (b) make any interim order as it thinks fit;45(c) appoint a provisional liquidator of the company till the making of a winding up order;(d) make an order for the winding up of the company with or without costs; or (e) any other order as it thinks fit:provided that an order under this sub-section shall be made within ninety days from the date of presentation of the petition:5provided further that before appointing a provisional liquidator under clause (c), the tribunal shall give notice to the company and afford a reasonable opportunity to it to make its representations, if any, unless for special reasons to be recorded in writing, the tribunal thinks fit to dispense with such notice:provided also that the tribunal shall not refuse to make a winding up order on the ground only that the assets of the company have been mortgaged for an amount equal to or in excess of those assets, or that the company has no assets10(2) where a petition is presented on the ground that it is just and equitable that the company should be wound up, the tribunal may refuse to make an order of winding up, if it is of the opinion that some other remedy is available to the petitioners and that they are acting unreasonably in seeking to have the company wound up instead of pursuing the other remedy15directions for filing statement of affairs274 (1) where a petition for winding up is filed before the tribunal by any person other than the company, the tribunal shall, if satisfied that a prima facie case for winding up of the company is made out, by an order direct the company to file its objections along with a statement of its affairs within thirty days of the order in such form and in such manner as may be prescribed:20provided that the tribunal may allow a further period of thirty days in a situation of contingency or special circumstances:provided further that the tribunal may direct the petitioner to deposit such security for costs as it may consider reasonable as a precondition to issue directions to the company25(2) a company, which fails to file the statement of affairs as referred to in sub-section (1), shall forfeit the right to oppose the petition and such directors and officers of the company as found responsible for such non-compliance, shall be liable for punishment under sub-section (4)30(3) the directors and other officers of the company, in respect of which an order for winding up is passed by the tribunal under clause (d) of sub-section (1) of section 273, shall, within a period of thirty days of such order, submit, at the cost of the company, the books of account of the company completed and audited up to the date of the order, to such liquidator and in the manner specified by the tribunal35(4) if any director or officer of the company contravenes the provisions of this section, the director or the officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees, or with both(5) the complaint may be filed in this behalf before the special court by registrar, provisional liquidator, company liquidator or any person authorised by the tribunal40275 (1) for the purposes of winding up of a company by the tribunal, the tribunal at the time of the passing of the order of winding up, shall appoint an official liquidator or a liquidator from the panel maintained under sub-section (2) as the company liquidatorappointments45(2) the provisional liquidator or the company liquidator, as the case may be, shall be appointed from a panel maintained by the central government consisting of the names of chartered accountants, advocates, company secretaries, cost accountants or firms or bodies corporate having such chartered accountants, advocates, company secretaries, cost accountants and such other professionals as may be notified by the central government or from a firm or a body corporate of persons having a combination of such professionals as may be prescribed and having at least ten years' experience in company matters50(3) where a provisional liquidator is appointed by the tribunal, the tribunal may limit and restrict his powers by the order appointing him or it or by a subsequent order, but otherwise he shall have the same powers as a liquidator(4) the central government may remove the name of any person or firm or body corporate from the panel maintained under sub-section (2) on the grounds of misconduct, fraud, misfeasance, breach of duties or professional incompetence:provided that the central government before removing him or it from the panel shall give him or it a reasonable opportunity of being heard5(5) the terms and conditions of appointment of a provisional liquidator or company liquidator and the fee payable to him or it shall be specified by the tribunal on the basis of task required to be performed, experience, qualification of such liquidator and size of the company10(6) on appointment as provisional liquidator or company liquidator, as the case may be, such liquidator shall file a declaration within seven days from the date of appointment in the prescribed form disclosing conflict of interest or lack of independence in respect of his appointment, if any, with the tribunal and such obligation shall continue throughout the term of his appointment15(7) while passing a winding up order, the tribunal may appoint a provisional liquidator, if any, appointed under clause (c) of sub-section (1) of section 273, as the company liquidator for the conduct of the proceedings for the winding up of the companyremoval and replacement of liquidator276 (1) the tribunal may, on a reasonable cause being shown and for reasons to be recorded in writing, remove the provisional liquidator or the company liquidator, as the case may be, as liquidator of the company on any of the following grounds, namely:—20(a) misconduct; (b) fraud or misfeasance; (c) professional incompetence or failure to exercise due care and diligence inperformance of the powers and functions;25(d) inability to act as provisional liquidator or as the case may be, company liquidator;(e) conflict of interest or lack of independence during the term of his appointment that would justify removal (2) in the event of death, resignation or removal of the provisional liquidator or as the case may be, company liquidator, the tribunal may transfer the work assigned to him or it to another company liquidator for reasons to be recorded in writing30 35(3) where the tribunal is of the opinion that any liquidator is responsible for causing any loss or damage to the company due to fraud or misfeasance or failure to exercise due care and diligence in the performance of his or its powers and functions, the tribunal may recover or cause to be recovered such loss or damage from the liquidator and pass such other orders as it may think fit(4) the tribunal shall, before passing any order under this section, provide a reasonable opportunity of being heard to the provisional liquidator or, as the case may be, company liquidator40277 (1) where the tribunal makes an order for appointment of provisional liquidator or for the winding up of a company, it shall, within a period not exceeding seven days from the date of passing of the order, cause intimation thereof to be sent to the company liquidator or provisional liquidator, as the case may be, and the registrarintimation to company liquidator, provisional liquidator and registrar45(2) on receipt of the copy of order of appointment of provisional liquidator or winding up order, the registrar shall make an endorsement to that effect in his records relating to the company and notify in the official gazette that such an order has been made and in the case of a listed company, the registrar shall intimate about such appointment or order, as the case may be, to the stock exchange or exchanges where the securities of the company are listed50(3) the winding up order shall be deemed to be a notice of discharge to the officers, employees and workmen of the company, except when the business of the company is continued(4) within three weeks from the date of passing of winding up order, the company liquidator shall make an application to the tribunal for constitution of a winding up committee to assist and monitor the progress of liquidation proceedings by the company liquidator in carrying out the function as provided in sub-section (5) and such winding up committee shall comprise of the following persons, namely:—5(i) official liquidator attached to the tribunal;(ii) nominee of secured creditors; and(iii) a professional nominated by the tribunal10(5) the company liquidator shall be the convener of the meetings of the winding up committee which shall assist and monitor the liquidation proceedings in following areas of liquidation functions, namely:—(i) taking over assets; (ii) examination of the statement of affairs; (iii) recovery of property, cash or any other assets of the company includingbenefits derived therefrom;15(iv) review of audit reports and accounts of the company;(v) sale of assets;(vi) finalisation of list of creditors and contributories; (vii) compromise, abandonment and settlement of claims;(viii) payment of dividends, if any; and20(ix) any other function, as the tribunal may direct from time to time25(6) the company liquidator shall place before the tribunal a report along with minutes of the meetings of the committee on monthly basis duly signed by the members present in the meeting for consideration till the final report for dissolution of the company is submitted before the tribunal(7) the company liquidator shall prepare the draft final report for consideration and approval of the winding up committee30(8) the final report so approved by the winding up committee shall be submitted by the company liquidator before the tribunal for passing of a dissolution order in respect of the companyeffect of winding up order278 the order for the winding up of a company shall operate in favour of all the creditors and all contributories of the company as if it had been made out on the joint petition of creditors and contributories35stay of suits, etc, on winding up order279 (1) when a winding up order has been passed or a provisional liquidator has been appointed, no suit or other legal proceeding shall be commenced, or if pending at the date of the winding up order, shall be proceeded with, by or against the company, except with the leave of the tribunal and subject to such terms as the tribunal may impose:provided that any application to the tribunal seeking leave under this section shall be disposed of by the tribunal within sixty days(2) nothing in sub-section (1) shall apply to any proceeding pending in appeal before the supreme court or a high courtjurisdiction of tribunal280 the tribunal shall, notwithstanding anything contained in any other law for the time being in force, have jurisdiction to entertain, or dispose of,—(a) any suit or proceeding by or against the company;5(b) any claim made by or against the company, including claims by or againstany of its branches in india;(c) any application made under section 233; (d) any scheme submitted under section 262;10(e) any question of priorities or any other question whatsoever, whether of lawor facts, including those relating to assets, business, actions, rights, entitlements, privileges, benefits, duties, responsibilities, obligations or in any matter arising out of, or in relation to winding up of the company,whether such suit or proceeding has been instituted, or is instituted, or such claim or question has arisen or arises or such application has been made or is made or such scheme has been submitted, or is submitted, before or after the order for the winding up of the company is made15281 (1) where the tribunal has made a winding up order or appointed a company liquidator, such liquidator shall, within sixty days from the order, submit to the tribunal, a report containing the following particulars, namely:—submission of report by company liquidator(a) the nature and details of the assets of the company including their location and value, stating separately the cash balance in hand and in the bank, if any, and the negotiable securities, if any, held by the company:20provided that the valuation of the assets shall be obtained from registered valuers for this purpose;(b) amount of capital issued, subscribed and paid-up;25(c) the existing and contingent liabilities of the company including names,addresses and occupations of its creditors, stating separately the amount of secured and unsecured debts, and in the case of secured debts, particulars of the securities given, whether by the company or an officer thereof, their value and the dates on which they were given;30(d) the debts due to the company and the names, addresses and occupations ofthe persons from whom they are due and the amount likely to be realised on account thereof;(e) guarantees, if any, extended by the company; (f) list of contributories and dues, if any, payable by them and details of anyunpaid call;35(g) details of trade marks and intellectual properties, if any, owned by thecompany;(h) details of subsisting contracts, joint ventures and collaborations, if any;(i) details of holding and subsidiary companies, if any;(j) details of legal cases filed by or against the company; and40(k) any other information which the tribunal may direct or the companyliquidator may consider necessary to include(2) the company liquidator shall include in his report the manner in which the company was promoted or formed and whether in his opinion any fraud has been committed by any person in its promotion or formation or by any officer of the company in relation to the company since the formation thereof and any other matters which, in his opinion, it is desirable to bring to the notice of the tribunal(3) the company liquidator shall also make a report on the viability of the business of the company or the steps which, in his opinion, are necessary for maximising the value of the assets of the company5(4) the company liquidator may also, if he thinks fit, make any further report or reports(5) any person describing himself in writing to be a creditor or a contributory of the company shall be entitled by himself or by his agent at all reasonable times to inspect the report submitted in accordance with this section and take copies thereof or extracts therefrom on payment of the prescribed fees10282 (1) the tribunal shall, on consideration of the report of the company liquidator, fix a time limit within which the entire proceedings shall be completed and the company be dissolved:directions of tribunal on report of company liquidator15provided that the tribunal may, if it is of the opinion, at any stage of the proceedings, or on examination of the reports submitted to it by the company liquidator and after hearing the company liquidator, creditors or contributories or any other interested person, that it will not be advantageous or economical to continue the proceedings, revise the time limit within which the entire proceedings shall be completed and the company be dissolved20(2) the tribunal may, on examination of the reports submitted to it by the company liquidator and after hearing the company liquidator, creditors or contributories or any other interested person, order sale of the company as a going concern or its assets or part thereof:provided that the tribunal may, where it considers fit, appoint a sale committee comprising such creditors, promoters and officers of the company as the tribunal may decide to assist the company liquidator in sale under this sub-section25 30(3) where a report is received from the company liquidator or the central government or any person that a fraud has been committed in respect of the company, the tribunal shall, without prejudice to the process of winding up, order for investigation under section 210, and on consideration of the report of such investigation it may pass order and give directions under sections 339 to 342 or direct the company liquidator to file a criminal complaint against persons who were involved in the commission of fraud(4) the tribunal may order for taking such steps and measures, as may be necessary, to protect, preserve or enhance the value of the assets of the company(5) the tribunal may pass such other order or give such other directions as it considers fit35custody of company's properties40283 (1) where a winding up order has been made or where a provisional liquidator has been appointed, the company liquidator or the provisional liquidator, as the case may be, shall, on the order of the tribunal, forthwith take into his or its custody or control all the property, effects and actionable claims to which the company is or appears to be entitled to and take such steps and measures, as may be necessary, to protect and preserve the properties of the company(2) notwithstanding anything contained in sub-section (1), all the property and effects of the company shall be deemed to be in the custody of the tribunal from the date of the order for the winding up of the company45(3) on an application by the company liquidator or otherwise, the tribunal may, at any time after the making of a winding up order, require any contributory for the time being on the list of contributories, and any trustee, receiver, banker, agent, officer or other employee of the company, to pay, deliver, surrender or transfer forthwith, or within such time as the tribunal directs, to the company liquidator, any money, property or books and papers in his custody or under his control to which the company is or appears to be entitled5284 (1) the promoters, directors, officers and employees, who are or have been in employment of the company or acting or associated with the company shall extend full cooperation to the company liquidator in discharge of his functions and dutiesprometers, directors, etc, to cooperate with company liquidator(2) where any person, without reasonable cause, fails to discharge his obligations under sub-section (1), he shall be punishable with imprisonment which may extend to six months or with fine which may extend to fifty thousand rupees, or with both10285 (1) as soon as may be after the passing of a winding up order by the tribunal, the tribunal shall settle a list of contributories, cause rectification of register of members in all cases where rectification is required in pursuance of this act and shall cause the assets of the company to be applied for the discharge of its liability:settlement of list of contributories and application of assets15provided that where it appears to the tribunal that it would not be necessary to make calls on or adjust the rights of contributories, the tribunal may dispense with the settlement of a list of contributories(2) in settling the list of contributories, the tribunal shall distinguish between those who are contributories in their own right and those who are contributories as being representatives of, or liable for the debts of, others20(3) while settling the list of contributories, the tribunal shall include every person, who is or has been a member, who shall be liable to contribute to the assets of the company an amount sufficient for payment of the debts and liabilities and the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves, subject to the following conditions, namely:—25(a) a person who has been a member shall not be liable to contribute if he has ceased to be a member for the preceding one year or more before the commencement of the winding up;(b) a person who has been a member shall not be liable to contribute in respect of any debt or liability of the company contracted after he ceased to be a member;30(c) no person who has been a member shall be liable to contribute unless it appears to the tribunal that the present members are unable to satisfy the contributions required to be made by them in pursuance of this act;(d) in the case of a company limited by shares, no contribution shall be required from any person, who is or has been a member exceeding the amount, if any, unpaid on the shares in respect of which he is liable as such member;35(e) in the case of a company limited by guarantee, no contribution shall berequired from any person, who is or has been a member exceeding the amount undertaken to be contributed by him to the assets of the company in the event of its being wound up but if the company has a share capital, such member shall be liable to contribute to the extent of any sum unpaid on any shares held by him as if the company were a company limited by shares40obligations of directors and managers286 in the case of a limited company, any person who is or has been a director or manager, whose liability is unlimited under the provisions of this act, shall, in addition to his liability, if any, to contribute as an ordinary member, be liable to make a further contribution as if he were at the commencement of winding up, a member of an unlimited company:45provided that —(a) a person who has been a director or manager shall not be liable to make such further contribution, if he has ceased to hold office for a year or upwards before the commencement of the winding up;(b) a person who has been a director or manager shall not be liable to make such further contribution in respect of any debt or liability of the company contracted after he ceased to hold office;5(c) subject to the articles of the company, a director or manager shall not be liableto make such further contribution unless the tribunal deems it necessary to require the contribution in order to satisfy the debts and liabilities of the company, and the costs, charges and expenses of the winding upadvisory committee10287 (1) the tribunal may, while passing an order of winding up of a company, directthat there shall be, an advisory committee to advise the company liquidator and to report to the tribunal on such matters as the tribunal may direct(2) the advisory committee appointed by the tribunal shall consist of not more than twelve members, being creditors and contributories of the company or such other persons in such proportion as the tribunal may, keeping in view the circumstances of the company under liquidation, direct15(3) the company liquidator shall convene a meeting of creditors and contributories, as ascertained from the books and documents, of the company within thirty days from the date of order of winding up for enabling the tribunal to determine the persons who may be members of the advisory committee20(4) the advisory committee shall have the right to inspect the books of account and other documents, assets and properties of the company under liquidation at a reasonable time(5) the provisions relating to the convening of the meetings, the procedure to be followed thereat and other matters relating to conduct of business by the advisory committee shall be such as may be prescribed25(6) the meeting of advisory committee shall be chaired by the company liquidator288 (1) the company liquidator shall make periodical reports to the tribunal and in any case make a report at the end of each quarter with respect to the progress of the winding up of the company in such form and manner as may be prescribedsubmission of periodical reports to tribunal30(2) the tribunal may, on an application by the company liquidator, review the orders made by it and make such modifications as it thinks fitpower of tribunal on application for stay of winding up35289 (1) the tribunal may, at any time after making a winding up order, on an applicationof promoter, shareholders or creditors or any other interested person, if satisfied, make an order that it is just and fair that an opportunity to revive and rehabilitate the company be provided staying the proceedings for such time but not exceeding one hundred and eighty days and on such terms and conditions as it thinks fit:provided that an order under this sub-section shall be made by the tribunal only when the application is accompanied with a scheme for rehabilitation(2) the tribunal may, while passing the order under sub-section (1), require the applicant to furnish such security as to costs as it considers fit40(3) where an order under sub-section (1) is passed by the tribunal, the provisions of chapter xix shall be followed in respect of the consideration and sanction of the scheme of revival of the company45(4) without prejudice to the provisions of sub-section (1), the tribunal may at any time after making a winding up order, on an application of company liquidator, make an order staying the winding up proceedings or any part thereof, for such time and on such terms and conditions as it thinks fit(5) the tribunal may, before making an order, under this section, require the company liquidator to furnish to it a report with respect to any facts or matters which are in his opinion relevant to the application(6) a copy of every order made under this section shall forthwith be forwarded by the company liquidator to the registrar who shall make an endorsement of the order in his books and records relating to the company5290 (1) subject to directions by the tribunal, if any, in this regard, the company liquidator, in a winding up of a company by the tribunal, shall have the power—powers and duties of company liquidator(a) to carry on the business of the company so far as may be necessary for the beneficial winding up of the company;10(b) to do all acts and to execute, in the name and on behalf of the company, all deeds, receipts and other documents, and for that purpose, to use, when necessary, the company's seal;(c) to sell the immovable and movable property and actionable claims of the company by public auction or private contract, with power to transfer such property to any person or body corporate, or to sell the same in parcels;(d) to sell the whole of the undertaking of the company as a going concern;15(e) to raise any money required on the security of the assets of the company; (f) to institute or defend any suit, prosecution or other legal proceeding, civil or criminal, in the name and on behalf of the company;(g) to invite and settle claim of creditors, employees or any other claimant and distribute sale proceeds in accordance with priorities established under this act;20(h) to inspect the records and returns of the company on the files of the registrar or any other authority;25(i) to prove rank and claim in the insolvency of any contributory for any balance against his estate, and to receive dividends in the insolvency, in respect of that balance, as a separate debt due from the insolvent, and rateably with the other separate creditors;30(j) to draw, accept, make and endorse any negotiable instruments including cheque, bill of exchange, hundi or promissory note in the name and on behalf of the company, with the same effect with respect to the liability of the company as if such instruments had been drawn, accepted, made or endorsed by or on behalf of the company in the course of its business;35(k) to take out, in his official name, letters of administration to any deceased contributory, and to do in his official name any other act necessary for obtaining payment of any money due from a contributory or his estate which cannot be conveniently done in the name of the company, and in all such cases, the money due shall, for the purpose of enabling the company liquidator to take out the letters of administration or recover the money, be deemed to be due to the company liquidator himself;40(l) to obtain any professional assistance from any person or appoint any professional, in discharge of his duties, obligations and responsibilities and for protection of the assets of the company, appoint an agent to do any business which the company liquidator is unable to do himself;(m) to take all such actions, steps, or to sign, execute and verify any paper, deed, document, application, petition, affidavit, bond or instrument as may be necessary,—45(i) for winding up of the company; (ii) for distribution of assets;(iii) in discharge of his duties and obligations and functions as company liquidator; and (n) to apply to the tribunal for such orders or directions as may be necessary for the winding up of the company5(2) the exercise of powers by the company liquidator under sub-section (1) shall be subject to the overall control of the tribunal(3) notwithstanding the provisions of sub-section (1), the company liquidator shall perform such other duties as the tribunal may specify in this behalf10291 (1) the company liquidator may, with the sanction of the tribunal, appoint one or more chartered accountants or company secretaries or cost accountants or legal practitioners or such other professionals on such terms and conditions, as may be necessary, to assist him in the performance of his duties and functions under this actprovision for professional assistance to company liquidator15(2) any person appointed under this section shall disclose forthwith to the tribunal in the prescribed form any conflict of interest or lack of independence in respect of his appointment292 (1) subject to the provisions of this act, the company liquidator shall, in the administration of the assets of the company and the distribution thereof among its creditors, have regard to any directions which may be given by the resolution of the creditors or contributories at any general meeting or by the advisory committeeexercise and control of company liquidator's powers20(2) any directions given by the creditors or contributories at any general meeting shall, in case of conflict, be deemed to override any directions given by the advisory committee(3) the company liquidator—25(a) may summon meetings of the creditors or contributories, whenever he thinks fit, for the purpose of ascertaining their wishes; and(b) shall summon such meetings at such times, as the creditors or contributories, as the case may be, may, by resolution, direct, or whenever requested in writing to do so by not less than one-tenth in value of the creditors or contributories, as the case may be30(4) any person aggrieved by any act or decision of the company liquidator may apply to the tribunal, and the tribunal may confirm, reverse or modify the act or decision complained of and make such further order as it thinks just and proper in the circumstances35293 (1) the company liquidator shall keep proper books in such manner, as may be prescribed, in which he shall cause entries or minutes to be made of proceedings at meetings and of such other matters as may be prescribedbooks to be kept by company liquidator(2) any creditor or contributory may, subject to the control of the tribunal, inspect any such books, personally or through his agent40294 (1) the company liquidator shall maintain proper and regular books of account including accounts of receipts and payments made by him in such form and manner as may be prescribedaudit of company liquidator's accounts(2) the company liquidator shall, at such times as may be prescribed but not less than twice in each year during his tenure of office, present to the tribunal an account of the receipts and payments as such liquidator in the prescribed form in duplicate, which shall be verified by a declaration in such form and manner as may be prescribed45(3) the tribunal shall cause the accounts to be audited in such manner as it thinks fit, and for the purpose of the audit, the company liquidator shall furnish to the tribunal with such vouchers and information as the tribunal may require, and the tribunal may, at any time, require the production of, and inspect, any books of account kept by the company liquidator5(4) when the accounts of the company have been audited, one copy thereof shall be filed by the company liquidator with the tribunal, and the other copy shall be delivered to the registrar which shall be open to inspection by any creditor, contributory or person interested(5) where an account referred to in sub-section (4) relates to a government company, the company liquidator shall forward a copy thereof—10(a) to the central government, if that government is a member of the government company; or(b) to any state government, if that government is a member of the governmentcompany; or(c) to the central government and any state government, if both the governmentsare members of the government company15(6) the company liquidator shall cause the accounts when audited, or a summary thereof, to be printed, and shall send a printed copy of the accounts or summary thereof by post to every creditor and every contributory:provided that the tribunal may dispense with the compliance of the provisions of this sub-section in any case it deems fit20payment of debts by contributory and extent of set-off295 (1) the tribunal may, at any time after passing of a winding up order, pass an order requiring any contributory for the time being on the list of contributories to pay, in the manner directed by the order, any money due to the company, from him or from the estate of the person whom he represents, exclusive of any money payable by him or the estate by virtue of any call in pursuance of this act25(2) the tribunal, in making an order, under sub-section (1), may,—(a) in the case of an unlimited company, allow to the contributory, by way of setoff, any money due to him or to the estate which he represents, from the company, on any independent dealing or contract with the company, but not any money due to him as a member of the company in respect of any dividend or profit; and30(b) in the case of a limited company, allow to any director or manager whoseliability is unlimited, or to his estate, such set-off(3) in the case of any company, whether limited or unlimited, when all the creditors have been paid in full, any money due on any account whatever to a contributory from the company may be allowed to him by way of set-off against any subsequent call35296 the tribunal may, at any time after the passing of a winding up order, and eitherbefore or after it has ascertained the sufficiency of the assets of the company,—power of tribunal to make calls40(a) make calls on all or any of the contributories for the time being on the list ofthe contributories, to the extent of their liability, for payment of any money which the tribunal considers necessary to satisfy the debts and liabilities of the company, and the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves; and(b) make an order for payment of any calls so made297 the tribunal shall adjust the rights of the contributories among themselves anddistribute any surplus among the persons entitled theretoadjustment of rights of contributories45power to order costs298 the tribunal may, in the event of the assets of a company being insufficient tosatisfy its liabilities, make an order for the payment out of the assets, of the costs, chargesand expenses incurred in the winding up, in such order of priority inter se as the tribunal thinks just and proper5299 (1) the tribunal may, at any time after the appointment of a provisional liquidator or the passing of a winding up order, summon before it any officer of the company or person known or suspected to have in his possession any property or books or papers, of the company, or known or suspected to be indebted to the company, or any person whom the tribunal thinks to be capable of giving information concerning the promotion, formation, trade, dealings, property, books or papers, or affairs of the companypower to summon persons suspected of having property of company, etc10(2) the tribunal may examine any officer or person so summoned on oath concerning the matters aforesaid, either by word of mouth or on written interrogatories or on affidavit and may, in the first case, reduce his answers to writing and require him to sign them15(3) the tribunal may require any officer or person so summoned to produce any books and papers relating to the company in his custody or power, but, where he claims any lien on books or papers produced by him, the production shall be without prejudice to such lien, and the tribunal shall have power to determine all questions relating to that lien(4) the tribunal may direct the liquidator to file before it a report in respect of debt or property of the company in possession of other persons(5) if the tribunal finds that—20(a) a person is indebted to the company, the tribunal may order him to pay to the provisional liquidator or, as the case may be, the liquidator at such time and in such manner as the tribunal may consider just, the amount in which he is indebted, or any part thereof, either in full discharge of the whole amount or not, as the tribunal thinks fit, with or without costs of the examination;25(b) a person is in possession of any property belonging to the company, the tribunal may order him to deliver to the provisional liquidator or, as the case may be, the liquidator, that property or any part thereof, at such time, in such manner and on such terms as the tribunal may consider just (6) if any officer or person so summoned fails to appear before the tribunal at the time appointed without a reasonable cause, the tribunal may impose an appropriate cost305 of 1908(7) every order made under sub-section (5) shall be executed in the same manner as decrees for the payment of money or for the delivery of property under the code of civil procedure, 190835(8) any person making any payment or delivery in pursuance of an order made under sub-section (5) shall by such payment or delivery be, unless otherwise directed by such order, discharged from all liability whatsoever in respect of such debt or propertypower to order examination of promoters, directors, etc40300 (1) where an order has been made for the winding up of a company by the tribunal, and the company liquidator has made a report to the tribunal under this act, stating that in his opinion a fraud has been committed by any person in the promotion, formation, business or conduct of affairs of the company since its formation, the tribunal may, after considering the report, direct that such person or officer shall attend before the tribunal on a day appointed by it for that purpose, and be examined as to the promotion or formation or the conduct of the business of the company or as to his conduct and dealings as an officer thereof45(2) the company liquidator shall take part in the examination, and for that purpose he or it may, if specially authorised by the tribunal in that behalf, employ such legal assistance as may be sanctioned by the tribunal(3) the person shall be examined on oath and shall answer all such questions as the tribunal may put, or allow to be put, to him(4) a person ordered to be examined under this section—(a) shall, before his examination, be furnished at his own cost with a copy of the report of the company liquidator; and5(b) may at his own cost employ chartered accountants or company secretaries orcost accountants or legal practitioners entitled to appear before the tribunal under section 432, who shall be at liberty to put to him such questions as the tribunal may consider just for the purpose of enabling him to explain or qualify any answers given by him10(5) if any such person applies to the tribunal to be exculpated from any charges made or suggested against him, it shall be the duty of the company liquidator to appear on the hearing of such application and call the attention of the tribunal to any matters which appear to the company liquidator to be relevant(6) if the tribunal, after considering any evidence given or hearing witnesses called by the company liquidator, allows the application made under sub-section (5), the tribunal may order payment to the applicant of such costs as it may think fit15(7) notes of the examination shall be taken down in writing, and shall be read over to or by, and signed by, the person examined, a copy be supplied to him and may thereafter be used in evidence against him, and shall be open to inspection by any creditor or contributory at all reasonable times20(8) the tribunal may, if it thinks fit, adjourn the examination from time to time (9) an examination under this section may, if the tribunal so directs, be held before any person or authority authorised by the tribunal25(10) the powers of the tribunal under this section as to the conduct of the examination, but not as to costs, may be exercised by the person or authority before whom the examination is held in pursuance of sub-section (9)30301 at any time either before or after passing a winding up order, if the tribunal is satisfied that a contributory or a person having property, accounts or papers of the company in his possession is about to leave india or otherwise to abscond, or is about to remove or conceal any of his property, for the purpose of evading payment of calls or of avoiding examination respecting the affairs of the company, the tribunal may cause—(a) the contributory to be detained until such time as the tribunal may order; and (b) his books and papers and movable property to be seized and safely kept until such time as the tribunal may order35302 (1) when the affairs of a company have been completely wound up, the company liquidator shall make an application to the tribunal for dissolution of such companydissolution of company by tribunal40(2) the tribunal shall on an application filed by the company liquidator under sub-section (1) or when the tribunal is of the opinion that it is just and reasonable in the circumstances of the case that an order for the dissolution of the company should be made, make an order that the company be dissolved from the date of the order, and the company shall be dissolved accordingly(3) a copy of the order shall, within thirty days from the date thereof, be forwarded by the company liquidator to the registrar who shall record in the register relating to the company a minute of the dissolution of the company45(4) if the company liquidator makes a default in forwarding a copy of the order within the period specified in sub-section (3), the company liquidator shall be punishable with fine which may extend to five thousand rupees for every day during which the default continuesappeals from orders made before commencement of act303 nothing in this chapter shall affect the operation or enforcement of any order made by any court in any proceedings for the winding up of a company immediately before the commencement of this act and an appeal against such order shall be filed before such authority competent to hear such appeals before such commencement5 part ii—voluntary winding up304 a company may be wound up voluntarily,—circumstances in which company may be wound up voluntarily10(a) if the company in general meeting passes a resolution requiring the company to be wound up voluntarily as a result of the expiry of the period for its duration, if any, fixed by its articles or on the occurrence of any event in respect of which the articles provide that the company should be dissolved; or(b) if the company passes a special resolution that the company be wound up voluntarily15declaration of solvency in case of proposal to wind up voluntarily305 (1) where it is proposed to wind up a company voluntarily, its director or directors, or in case the company has more than two directors, the majority of its directors, shall, at a meeting of the board, make a declaration verified by an affidavit to the effect that they have made a full inquiry into the affairs of the company and they have formed an opinion that the company has no debt or whether it will be able to pay its debts in full from the proceeds of assets sold in voluntary winding up20(2) a declaration made under sub-section (1) shall have no effect for the purposes of this act, unless—(a) it is made within five weeks immediately preceding the date of the passing of the resolution for winding up the company and it is delivered to the registrar for registration before that date;25(b) it contains a declaration that the company is not being wound up to defraud any person or persons;30(c) it is accompanied by a copy of the report of the auditors of the company prepared in accordance with the provisions of this act, on the profit and loss account of the company for the period commencing from the date up to which the last such account was prepared and ending with the latest practicable date immediately before the making of the declaration and the balance sheet of the company made out as on that date which would also contain a statement of the assets and liabilities of the company on that date; and(d) where there are any assets of the company, it is accompanied by a report of the valuation of the assets of the company prepared by a registered valuer35(3) where the company is wound up in pursuance of a resolution passed within a period of five weeks after the making of the declaration, but its debts are not paid or provided for in full, it shall be presumed, until the contrary is shown, that the director or directors did not have reasonable grounds for his or their opinion under sub-section (1)40(4) any director of a company making a declaration under this section without having reasonable grounds for the opinion that the company will be able to pay its debts in full from the proceeds of assets sold in voluntary winding up shall be punishable with imprisonment for a term which shall not be less than three years but which may extend to five years or with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees, or with both45meeting of creditors306 (1) the company shall along with the calling of meeting of the company at which the resolution for the voluntary winding up is to be proposed, cause a meeting of its creditors either on the same day or on the next day and shall cause a notice of such meeting to be sent by registered post to the creditors with the notice of the meeting of the company under section 3045(2) the board of directors of the company shall—(a) cause to be presented a full statement of the position of the affairs of the company together with a list of creditors of the company, if any, copy of declaration under section 305 and the estimated amount of the claims before such meeting; and(b) appoint one of the directors to preside at the meeting(3) where two-thirds in value of creditors of the company are of the opinion that—1015(a) it is in the interest of all parties that the company be wound up voluntarily, the company shall be wound up voluntarily; or(b) the company may not be able to pay for its debts in full from the proceeds of assets sold in voluntary winding up and pass a resolution that it shall be in the interest of all parties if the company is wound up by the tribunal in accordance with the provisions of part i of this chapter, the company shall within fourteen days thereafter file an application before the tribunal20(4) the notice of any resolution passed at a meeting of creditors in pursuance of this section shall be given by the company to the registrar within ten days of the passing thereof(5) if a company contravenes the provisions of this section, the company shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to two lakh rupees and the director of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than fifty thousand rupees but which may extend to two lakh rupees, or with both25publication of resolution to wind up voluntarily307 (1) where a company has passed a resolution for voluntary winding up and a resolution under sub-section (3) of section 306 is passed, it shall within fourteen days of the passing of the resolution give notice of the resolution by advertisement in the official gazette and also in a newspaper which is in circulation in the district where the registered office or the principal office of the company is situate30(2) if a company contravenes the provisions of sub-section (1), the company and every officer of the company who is in default shall be punishable with fine which may extend to five thousand rupees for every day during which such default continues308 a voluntary winding up shall be deemed to commence on the date of passing of the resolution for voluntary winding up under section 304commencement of voluntary winding up35effect of voluntary winding up309 in the case of a voluntary winding up, the company shall from the commencement of the winding up cease to carry on its business except as far as required for the beneficial winding up of its business:provided that the corporate state and corporate powers of the company shall continue until it is dissolved40appointment of company liquidator310 (1) the company in its general meeting, where a resolution of voluntary winding up is passed, shall appoint a company liquidator from the panel prepared by the central government for the purpose of winding up its affairs and distributing the assets of the company and recommend the fee to be paid to the company liquidator45(2) where the creditors have passed a resolution for winding up the company under sub-section (3) of section 306, the appointment of company liquidator under this section shall be effective only after it is approved by the majority of creditors in value of the company:provided that where such creditors do not approve the appointment of such company liquidator, creditors shall appoint another company liquidator(3) the creditors while approving the appointment of company liquidator appointed by the company or appointing the company liquidator of their own choice, as the case may be, pass suitable resolution with regard to the fee of the company liquidator5(4) on appointment as company liquidator, such liquidator shall file a declaration in the prescribed form within seven days of the date of appointment disclosing conflict of interest or lack of independence in respect of his appointment, if any, with the company and the creditors and such obligation shall continue throughout the term of his or its appointment10311 (1) a company liquidator appointed under section 310 may be removed by the company where his appointment has been made by the company and, by the creditors, where the appointment is approved or made by such creditorspower to remove and fill vacancy of company liquidator(2) where a company liquidator is sought to be removed under this section, he shall be given a notice in writing stating the grounds of removal from his office by the company or the creditors, as the case may be15(3) where three-fourth members of the company or three-fourth of creditors in value, as the case may be, after consideration of the reply, if any, filed by the company liquidator, in their meeting decide to remove the company liquidator, he shall vacate his office(4) if a vacancy occurs by death, resignation, removal or otherwise in the office of any company liquidator appointed under section 310, the company or the creditors, as the case may be, fill the vacancy in the manner specified in that section20notice of appointment of company liquidator to be given to registrar312 (1) the company shall give notice to the registrar of the appointment of a company liquidator along with the name and particulars of the company liquidator, of every vacancy occurring in the office of company liquidator, and of the name of the company liquidator appointed to fill every such vacancy within ten days of such appointment or the occurrence of such vacancy25(2) if a company contravenes the provisions of sub-section (1), the company and every officer of the company who is in default shall be punishable with fine which may extend to five hundred rupees for every day during which such default continues30313 on the appointment of a company liquidator, all the powers of the board of directors and of the managing or whole-time directors and manager, if any, shall cease, except for the purpose of giving notice of such appointment of the company liquidator to the registrarcesser of board's powers on appointment of company liquidator35powers and duties of company liquidator in voluntary winding up40 45314 (1) the company liquidator shall perform such functions and discharge such duties as may be determined from time to time by the company or the creditors, as the case may be(2) the company liquidator shall settle the list of contributories, which shall be prima facie evidence of the liability of the persons named therein to be contributories(3) the company liquidator shall call general meetings of the company for the purpose of obtaining the sanction of the company by ordinary or special resolution, as the case may require, or for any other purpose he may consider necessary(4) the company liquidator shall maintain regular and proper books of account in such form and in such manner as may be prescribed and the members and creditors and any officer authorised by the central government may inspect such books of account(5) the company liquidator shall prepare quarterly statement of accounts in such form and manner as may be prescribed and file such statement of accounts duly audited within thirty days from the close of each quarter with the registrar, failing which the company liquidator shall be punishable with fine which may extend to five thousand rupees for every day during which the failure continues(6) the company liquidator shall pay the debts of the company and shall adjust the rights of the contributories among themselves(7) the company liquidator shall observe due care and diligence in the discharge of his duties5(8) if the company liquidator fails to comply with the provisions of this section exceptsub-section (5) he shall be punishable with fine which may extend to ten lakh rupeesappointment of committees10315 where there are no creditors of a company, such company in its general meeting and, where a meeting of creditors is held under section 306, such creditors, as the case may be, may appoint such committees as considered appropriate to supervise the voluntary liquidation and assist the company liquidator in discharging his or its functionscompany liquidator to submit report on progress of winding up15| 316 ||------------------------------------------------------------------------------------------------|| of the company in such form and in such manner as may be prescribed to the members and || creditors and shall also call a meeting of the members and the creditors as and when necessary || but at least one meeting each of creditors and members in every quarter and apprise them of || the progress of the winding up of the company in such form and in such manner as may be || prescribed |(2) if the company liquidator fails to comply with the provisions of sub-section (1), he shall be punishable, in respect of each such failure, with fine which may extend to ten lakh rupees20report of company liquidator to tribunal for examination of persons25317 (1) where the company liquidator is of the opinion that a fraud has been committedby any person in respect of the company, he shall immediately make a report to the tribunal and the tribunal shall, without prejudice to the process of winding up, order for investigation under section 210 and on consideration of the report of such investigation, the tribunal may pass such order and give such directions under this chapter as it may consider necessary including the direction that such person shall attend before the tribunal on a day appointed by it for that purpose and be examined as to the promotion or formation or the conduct of the business of the company or as to his conduct and dealings as officer thereof or otherwise(2) the provisions of section 300 shall mutatis mutandis apply in relation to any examination directed under sub-section (1)30final meeting and dissolution of company318 (1) as soon as the affairs of a company are fully wound up, the companyliquidator shall prepare a report of the winding up showing that the property and assets of the company have been disposed of and its debt fully discharged or discharged to the satisfaction of the creditors and thereafter call a general meeting of the company for the purpose of laying the final winding up accounts before it and giving any explanation therefor35(2) the meeting referred to in sub-section (1) shall be called by the company liquidator in such form and manner as may be prescribed(3) if the majority of the members of the company after considering the report of the company liquidator are satisfied that the company shall be wound up, they may pass a resolution for its dissolution(4) within two weeks after the meeting, the company liquidator shall—40(a) send to the registrar—(i) a copy of the final winding up accounts of the company and shall make a return in respect of each meeting and of the date thereof; and(ii) copies of the resolutions passed in the meetings; and45(b) file an application along with his report under sub-section (1) in such manneras may be prescribed along with the books and papers of the company relating to the winding up, before the tribunal for passing an order of dissolution of the company(5) if the tribunal is satisfied, after considering the report of the company liquidator that the process of winding up has been just and fair, the tribunal shall pass an order dissolving the company within sixty days of the receipt of the application under sub-section (4)5(6) the company liquidator shall file a copy of the order under sub-section (5) with the registrar within thirty days(7) the registrar, on receiving the copy of the order passed by the tribunal under subsection (5), shall forthwith publish a notice in the official gazette that the company is dissolved10(8) if the company liquidator fails to comply with the provisions of this section, he shall be punishable with fine which may extend to one lakh rupees15319 (1) where a company (the transferor company) is proposed to be, or is in the course of being, wound up voluntarily and the whole or any part of its business or property is proposed to be transferred or sold to another company (the transferee company), the company liquidator of the transferor company may, with the sanction of a special resolution of the company conferring on him either a general authority or an authority in respect of any particular arrangement,—power of company liquidator to accept shares, etc, as consideration for sale of property of company20(a) receive, by way of compensation wholly or in part for the transfer or sale of shares, policies, or other like interest in the transferee company, for distribution among the members of the transferor company; or(b) enter into any other arrangement whereby the members of the transferor company may, in lieu of receiving cash, shares, policies or other like interest or in addition thereto, participate in the profits of, or receive any other benefit from, the transferee company:25provided that no such arrangement shall be entered into without the consent of the secured creditors(2) any transfer, sale or other arrangement in pursuance of this section shall be binding on the members of the transferor company30(3) any member of the transferor company who did not vote in favour of the special resolution and expresses his dissent therefrom in writing addressed to the company liquidator, and left at the registered office of the company within seven days after the passing of the resolution, may require the liquidator either—(a) to abstain from carrying the resolution into effect; or35(b) to purchase his interest at a price to be determined by agreement or the registered valuer (4) if the company liquidator elects to purchase the member's interest, the purchase money, raised by him in such manner as may be determined by a special resolution, shall be paid before the company is dissolved40distribution of property of company320 subject to the provisions of this act as to overriding preferential payments under section 326, the assets of a company shall, on its winding up, be applied in satisfaction of its liabilities pari passu and, subject to such application, shall, unless the articles otherwise provide, be distributed among the members according to their rights and interests in the company45arrangement when binding on company and creditors321 (1) any arrangement other than the arrangement referred to in section 319 entered into between the company which is about to be, or is in the course of being wound up and its creditors shall be binding on the company and on the creditors if it is sanctioned by a special resolution of the company and acceded to by the creditors who hold three-fourths in value of the total amount due to all the creditors of the company(2) any creditor or contributory may, within three weeks from the completion of the arrangement, apply to the tribunal and the tribunal may thereupon amend, vary, confirm or set aside the arrangement5322 (1) the company liquidator or any contributory or creditor may apply to the tribunal—| ( ||-------------|| company; or || power to || apply to || tribunal to || have || questions || determined, || etc |10| ( ||-------------------------------------------------------------------------------------|| any other matter, all or any of the powers which the tribunal might exercise if the || company were being wound up by the tribunal |(2) the company liquidator or any creditor or contributory may apply to the tribunal for an order setting aside any attachment, distress or execution put into force against the estate or effects of the company after the commencement of the winding up15(3) the tribunal, if satisfied on an application under sub-section (1) or sub-section (2)that the determination of the question or the required exercise of power or the order applied for will be just and fair, may allow the application on such terms and conditions as it thinks fit or may make such other order on the application as it thinks fit20(4) a copy of an order staying the proceedings in the winding up, made under this section, shall forthwith be forwarded by the company, or otherwise as may be prescribed, to the registrar, who shall make a minute of the order in his books relating to the companycosts of voluntary winding up323 all costs, charges and expenses properly incurred in the winding up, including the fee of the company liquidator, shall, subject to the rights of secured creditors, if any, be payable out of the assets of the company in priority to all other claims part iii—provisions applicable to every mode of winding up25debts of all descriptions to be admitted to proof30324 in every winding up (subject, in the case of insolvent companies, to the application in accordance with the provisions of this act or of the law of insolvency), all debts payable on a contingency, and all claims against the company, present or future, certain or contingent, ascertained or sounding only in damages, shall be admissible to proof against the company, a just estimate being made, so far as possible, of the value of such debts or claims as may be subject to any contingency, or may sound only in damages, or for some other reason may not bear a certain value325 (1) in the winding up of an insolvent company, the same rules shall prevail and be observed with regard to—(a) debts provable; (b) the valuation of annuities and future and contingent liabilities; and35application of insolvency rules in winding up of insolvent companies(c) the respective rights of secured and unsecured creditors,as are in force for the time being under the law of insolvency with respect to the estates of persons adjudged insolvent:40provided that the security of every secured creditor shall be deemed to be subject to a pari passu charge in favour of the workmen to the extent of the workmen's portion therein, and, where a secured creditor, instead of relinquishing his security and proving his debts, opts to realise his security,—(i) the liquidator shall be entitled to represent the workmen and enforce suchcharge;45(ii) any amount realised by the liquidator by way of enforcement of such chargeshall be applied rateably for the discharge of workmen's dues; and(iii) so much of the debts due to such secured creditor as could not be realisedby him or the amount of the workmen's portion in his security, whichever is less, shall rank pari passu with the workmen's dues for the purposes of section 326(2) all persons under sub-section (1) shall be entitled to prove and receive dividends out of the assets of the company under winding up, and make such claims against the company as they respectively are entitled to make by virtue of this section:5provided that if a secured creditor, instead of relinquishing his security and proving his debts, proceeds to realise his security, he shall be liable to pay his portion of the expenses incurred by the liquidator, including a provisional liquidator, if any, for the preservation of the security before its realisation by the secured creditor10explanation—for the purposes of this sub-section, the portion of expenses incurred by the liquidator for the preservation of a security which the secured creditor shall be liable to pay shall be the whole of the expenses less an amount which bears to such expenses the same proportion as the workmen's portion in relation to the security bears to the value of the security(3) for the purposes of this section, section 326 and section 327,—1514 of 1947(a) "workmen'', in relation to a company, means the employees of the company, being workmen within the meaning of clause (s) of section 2 of the industrial disputes act, 1947;(b) "workmen's dues'', in relation to a company, means the aggregate of the following sums due from the company to its workmen, namely:—20(i) all wages or salary including wages payable for time or piece work and salary earned wholly or in part by way of commission of any workman in respect of services rendered to the company and any compensation payable to any workman under any of the provisions of the industrial disputes act, 1947;14 of 1947 25(ii) all accrued holiday remuneration becoming payable to any workman or, in the case of his death, to any other person in his right on the termination of his employment before or by the effect of the winding up order or resolution;8 of 192330(iii) unless the company is being wound up voluntarily merely for the purposes of reconstruction or amalgamation with another company or unless the company has, at the commencement of the winding up, under such a contract with insurers as is mentioned in section 14 of the workmen's compensation act, 1923, rights capable of being transferred to and vested in the workmen, all amount due in respect of any compensation or liability for compensation under the said act in respect of the death or disablement of any workman of the company;35(iv) all sums due to any workman from the provident fund, the pension fund, the gratuity fund or any other fund for the welfare of the workmen, maintained by the company; (c) "workmen's portion'', in relation to the security of any secured creditor of a company, means the amount which bears to the value of the security the same proportion as the amount of the workmen's dues bears to the aggregate of the amount of workmen's dues and the amount of the debts due to the secured creditors40 illustration45the value of the security of a secured creditor of a company is rs 1,00,000 the total amount of the workmen's dues is rs 1,00,000 the amount of the debts due from the company to its secured creditors is rs 3,00,000 the aggregate of the amount of workmen's dues and the amount of debts due to secured creditors is rs 4,00,000 the workmen's portion of the security is, therefore, one-fourth of the value of the security, that is rs 25,000326 (1) notwithstanding anything contained in this act or any other law for the time being in force, in the winding up of a company,—overriding preferential payments(a) workmen's dues; and (b) debts due to secured creditors to the extent such debts rank under clause(iii) of the proviso to sub-section (1) of section 325 pari passu with such dues,50shall be paid in priority to all other debts:5provided that in case of the winding up of a company, the sums towards wages or salary referred to in sub-clause (i) of clause (b) of sub-section (3) of section 325, which are payable for a period of two years preceding the winding up order or such other period as may be prescribed, shall be paid in priority to all other debts (including debts due to secured creditors), within a period of thirty days of sale of assets and shall be subject to such charge over the security of secured creditors as may be prescribed10(2) the debts payable under the proviso to sub-section (1) shall be paid in full before any payment is made to secured creditors and thereafter debts payable under that sub-section shall be paid in full, unless the assets are insufficient to meet them, in which case they shall abate in equal proportionspreferential payments327 (1) in a winding up, subject to the provisions of section 326, there shall be paid in priority to all other debts,—(a) all revenues, taxes, cesses and rates due from the company to the central government or a state government or to a local authority at the relevant date, and having become due and payable within the twelve months immediately before that date;1520(b) all wages or salary including wages payable for time or piece work and salary earned wholly or in part by way of commission of any employee in respect of services rendered to the company and due for a period not exceeding four months within the twelve months immediately before the relevant date, subject to the condition that the amount payable under this clause to any workman shall not exceed such amount as may be notified;(c) all accrued holiday remuneration becoming payable to any employee, or in the case of his death, to any other person claiming under him, on the termination of his employment before, or by the winding up order, or, as the case may be, the dissolution of the company;253034 of 1948(d) unless the company is being wound up voluntarily merely for the purposes of reconstruction or amalgamation with another company, all amount due in respect of contributions payable during the period of twelve months immediately before the relevant date by the company as the employer of persons under the employees' state insurance act, 1948 or any other law for the time being in force;8 of 192335(e) unless the company has, at the commencement of winding up, under such a contract with any insurer as is mentioned in section 14 of the workmen's compensation act, 1923, rights capable of being transferred to and vested in the workmen, all amount due in respect of any compensation or liability for compensation under the said act in respect of the death or disablement of any employee of the company:provided that where any compensation under the said act is a weekly payment, the amount payable under this clause shall be taken to be the amount of the lump sum for which such weekly payment could, if redeemable, be redeemed, if the employer has made an application under that act;40(f) all sums due to any employee from the provident fund, the pension fund, thegratuity fund or any other fund for the welfare of the employees, maintained by the company; and(g) the expenses of any investigation held in pursuance of sections 213 and 216,in so far as they are payable by the company45 50(2) where any payment has been made to any employee of a company on account ofwages or salary or accrued holiday remuneration, himself or, in the case of his death, to any other person claiming through him, out of money advanced by some person for that purpose, the person by whom the money was advanced shall, in a winding up, have a right of priority in respect of the money so advanced and paid, up to the amount by which the sum in respect of which the employee or other person in his right would have been entitled to priority in the winding up has been reduced by reason of the payment having been made(3) the debts enumerated in this section shall—5(a) rank equally among themselves and be paid in full, unless the assets are insufficient to meet them, in which case they shall abate in equal proportions; and(b) so far as the assets of the company available for payment to general creditors are insufficient to meet them, have priority over the claims of holders of debentures under any floating charge created by the company, and be paid accordingly out of any property comprised in or subject to that charge1015(4) subject to the retention of such sums as may be necessary for the costs and expenses of the winding up, the debts under this section shall be discharged forthwith so far as the assets are sufficient to meet them, and in the case of the debts to which priority is given under clause (d) of sub-section (1), formal proof thereof shall not be required except in so far as may be otherwise prescribed(5) in the event of a landlord or other person distraining or having distrained on any goods or effects of the company within three months immediately before the date of a winding up order, the debts to which priority is given under this section shall be a first charge on the goods or effects so distrained on or the proceeds of the sale thereof:20provided that, in respect of any money paid under any such charge, the landlord or other person shall have the same rights of priority as the person to whom the payment is made(6) any remuneration in respect of a period of holiday or of absence from work on medical grounds through sickness or other good cause shall be deemed to be wages in respect of services rendered to the company during that period25explanation—for the purposes of this section,—(a) the expression "accrued holiday remuneration" includes, in relation to any person, all sums which, by virtue either of his contract of employment or of any enactment including any order made or direction given thereunder, are payable on account of the remuneration which would, in the ordinary course, have become payable to him in respect of a period of holiday, had his employment with the company continued until he became entitled to be allowed the holiday;30(b) the expression "employee" does not include a workman; and (c) the expression "relevant date" means—35| ( | i | ) | | in the case of a company being wound up by the tribunal, the date of ||---------------------------------------------------------------------------------|-----|-----|-----|------------------------------------------------------------------------|| appointment or first appointment of a provisional liquidator, or if no such | | | | || appointment was made, the date of the winding up order, unless, in either case, | | | | || the company had commenced to be wound up voluntarily before that date; and | | | | || ( | ii | ) | | in any other case, the date of the passing of the resolution for the || voluntary winding up of the company | | | | || fraudulent | | | | || preference | | | | || 40 | | | | || 45 | | | | |328 (1) where a company has given preference to a person who is one of the creditors of the company or a surety or guarantor for any of the debts or other liabilities of the company, and the company does anything or suffers anything done which has the effect of putting that person into a position which, in the event of the company going into liquidation, will be better than the position he would have been in if that thing had not been done prior to six months of making winding up application, the tribunal, if satisfied that, such transaction is a fraudulent preference may order as it may think fit for restoring the position to what it would have been if the company had not given that preference(2) if the tribunal is satisfied that there is a preference transfer of property, movable or immovable, or any delivery of goods, payment, execution made, taken or done by or against a company within six months before making winding up application, the tribunal may order as it may think fit and may declare such transaction invalid and restore the position50transfers not in good faith to be void329 any transfer of property, movable or immovable, or any delivery of goods, made by a company, not being a transfer or delivery made in the ordinary course of its business or in favour of a purchaser or encumbrance in good faith and for valuable consideration, if made within a period of one year before the presentation of a petition for winding up by the tribunal or the passing of a resolution for voluntary winding up of the company, shall be void against the company liquidator330 any transfer or assignment by a company of all its properties or assets to trustees for the benefit of all its creditors shall be voidcertain transfers to be void5liabilities and rights of certain persons fraudulently preferred10331 (1) where a company is being wound up and anything made, taken or done after the commencement of this act is invalid under section 328 as a fraudulent preference of a person interested in property mortgaged or charged to secure the company's debt, then, without prejudice to any rights or liabilities arising, apart from this provision, the person preferred shall be subject to the same liabilities, and shall have the same rights, as if he had undertaken to be personally liable as a surety for the debt, to the extent of the mortgage or charge on the property or the value of his interest, whichever is less15(2) the value of the interest of the person preferred under sub-section (1) shall be determined as at the date of the transaction constituting the fraudulent preference, as if the interest were free of all encumbrances other than those to which the mortgage or charge for the debt of the company was then subject20(3) on an application made to the tribunal with respect to any payment on the ground that the payment was a fraudulent preference of a surety or guarantor, the tribunal shall have jurisdiction to determine any questions with respect to the payment arising between the person to whom the payment was made and the surety or guarantor and to grant relief in respect thereof, notwithstanding that it is not necessary so to do for the purposes of the winding up, and for that purpose, may give leave to bring in the surety or guarantor as a third party as in the case of a suit for the recovery of the sum paid(4) the provisions of sub-section (3) shall apply mutatis mutandis in relation to transactions other than payment of money25effect of floating charge30332 where a company is being wound up, a floating charge on the undertaking orproperty of the company created within the twelve months immediately preceding the commencement of the winding up, shall, unless it is proved that the company immediately after the creation of the charge was solvent, be invalid, except for the amount of any cash paid to the company at the time of, or subsequent to the creation of, and in consideration for, the charge, together with interest on that amount at the rate of five per cent per annum or such other rate as may be notified by the central government in this behalf333 (1) where any part of the property of a company which is being wound up consists of—disclaimer of onerous property(a) land of any tenure, burdened with onerous covenants;(b) shares or stocks in companies;35(c) any other property which is not saleable or is not readily saleable by reasonof the possessor thereof being bound either to the performance of any onerous act or to the payment of any sum of money; or(d) unprofitable contracts,4045the company liquidator may, notwithstanding that he has endeavoured to sell or has taken possession of the property or exercised any act of ownership in relation thereto or done anything in pursuance of the contract, with the leave of the tribunal and subject to the provisions of this section, by writing signed by him, at any time within twelve months after the commencement of the winding up or such extended period as may be allowed by the tribunal, disclaim the property:provided that where the company liquidator had not become aware of the existence of any such property within one month from the commencement of the winding up, the power of disclaiming the property may be exercised at any time within twelve months after he has become aware thereof or such extended period as may be allowed by the tribunal5(2) the disclaimer shall operate to determine, as from the date of disclaimer, the rights, interest and liabilities of the company in or in respect of the property disclaimed, but shall not, except so far as is necessary for the purpose of releasing the company and the property of the company from liability, affect the rights, interest or liabilities of any other person(3) the tribunal, before or on granting leave to disclaim, may require such notices to be given to persons interested, and impose such terms as a condition of granting leave, and make such other order in the matter as the tribunal considers just and proper1015(4) the company liquidator shall not be entitled to disclaim any property in any case where an application in writing has been made to him by any person interested in the property requiring him to decide whether he will or will not disclaim and the company liquidator has not, within a period of twenty-eight days after the receipt of the application or such extended period as may be allowed by the tribunal, give notice to the applicant that he intends to apply to the tribunal for leave to disclaim, and in case the property is under a contract, if the company liquidator after such an application as aforesaid does not within the said period or extended period disclaim the contract, he shall be deemed to have adopted it20(5) the tribunal may, on the application of any person who is, as against the company liquidator, entitled to the benefit or subject to the burden of a contract made with the company, make an order rescinding the contract on such terms as to payment by or to either party of damages for the non-performance of the contract, or otherwise as the tribunal considers just and proper, and any damages payable under the order to any such person may be proved by him as a debt in the winding up2530(6) the tribunal may, on an application by any person who either claims any interest in any disclaimed property or is under any liability not discharged under this act in respect of any disclaimed property, and after hearing any such persons as it thinks fit, make an order for the vesting of the property in, or the delivery of the property to, any person entitled thereto or to whom it may seem just that the property should be delivered by way of compensation for such liability as aforesaid, or a trustee for him, and on such terms as the tribunal considers just and proper, and on any such vesting order being made, the property comprised therein shall vest accordingly in the person named therein in that behalf without any conveyance or assignment for the purpose:35provided that where the property disclaimed is of a leasehold nature, the tribunal shall not make a vesting order in favour of any person claiming under the company, whether as under-lessee or as mortgagee or holder of a charge by way of demise, except upon the terms of making that person—(a) subject to the same liabilities and obligations as those to which the company was subject under the lease in respect of the property at the commencement of the winding up; or40(b) if the tribunal thinks fit, subject only to the same liabilities and obligations as if the lease had been assigned to that person at that date,45and in either event as if the lease had comprised only the property comprised in the vesting order, and any mortgagee or under-lessee declining to accept a vesting order upon such terms shall be excluded from all interest in, and security upon the property, and, if there is no person claiming under the company who is willing to accept an order upon such terms, the tribunal shall have power to vest the estate and interest of the company in the property in any person liable, either personally or in a representative character, and either alone or jointly with the company, to perform the covenants of the lessee in the lease, free and discharged from all estates, encumbrances and interests created therein by the company50(7) any person affected by the operation of a disclaimer under this section shall be deemed to be a creditor of the company to the amount of the compensation or damages payable in respect of such effect, and may accordingly prove the amount as a debt in the winding up5334 (1) in the case of a voluntary winding up, any transfer of shares in the company, not being a transfer made to or with the sanction of the company liquidator, and any alteration in the status of the members of the company, made after the commencement of the winding up, shall be voidtransfers, etc, after commencement of winding up to be void10(2) in the case of a winding up by the tribunal, any disposition of the property, including actionable claims, of the company, and any transfer of shares in the company or alteration in the status of its members, made after the commencement of the winding up, shall, unless the tribunal otherwise orders, be void335 (1) where any company is being wound up by the tribunal,—15(a) any attachment, distress or execution put in force, without leave of the tribunal against the estate or effects of the company, after the commencement of the winding up; orcertain attachments, executions, etc, in winding up by tribunal to be void(b) any sale held, without leave of the tribunal of any of the properties or effects of the company, after such commencement, shall be void20(2) nothing in this section shall apply to any proceedings for the recovery of any tax or impost or any dues payable to the governmentoffences by officers of companies in liquidation336 (1) if any person, who is or has been an officer of a company which, at the time of the commission of the alleged offence, is being wound up, whether by the tribunal or voluntarily, or which is subsequently ordered to be wound up by the tribunal or which subsequently passes a resolution for voluntary winding up,—25(a) does not, to the best of his knowledge and belief, fully and truly disclose tothe company liquidator all the property, movable and immovable, of the company, and how and to whom and for what consideration and when the company disposed of any part thereof, except such part as has been disposed of in the ordinary course of the business of the company;30(b) does not deliver up to the company liquidator, or as he directs, all such partof the movable and immovable property of the company as is in his custody or under his control and which he is required by law to deliver up;(c) does not deliver up to the company liquidator, or as he directs, all such books and papers of the company as are in his custody or under his control and which he is required by law to deliver up;35(d) within the twelve months immediately before the commencement of the winding up or at any time thereafter,—(i) conceals any part of the property of the company to the value of one thousand rupees or more, or conceals any debt due to or from the company;40(ii) fraudulently removes any part of the property of the company to thevalue of one thousand rupees or more;(iii) conceals, destroys, mutilates or falsifies, or is privy to the concealment, destruction, mutilation or falsification of, any book or paper affecting or relating to, the property or affairs of the company;45(iv) makes, or is privy to the making of, any false entry in any book orpaper affecting or relating to, the property or affairs of the company;(v) fraudulently parts with, alters or makes any omission in, or is privy to the fraudulent parting with, altering or making of any omission in, any book or paper affecting or relating to the property or affairs of the company;5(vi) by any false representation or other fraud, obtains on credit, for or on behalf of the company, any property which the company does not subsequently pay for;(vii) under the false pretence that the company is carrying on its business, obtains on credit, for or on behalf of the company, any property which the company does not subsequently pay for; or10(viii) pawns, pledges or disposes of any property of the company which has been obtained on credit and has not been paid for, unless such pawning, pledging or disposing of the property is in the ordinary course of business of the company;15(e) makes any material omission in any statement relating to the affairs of the company;(f) knowing or believing that a false debt has been proved by any person under the winding up, fails for a period of one month to inform the company liquidator thereof;20(g) after the commencement of the winding up, prevents the production of any book or paper affecting or relating to the property or affairs of the company;(h) after the commencement of the winding up or at any meeting of the creditors of the company within the twelve months next before the commencement of the winding up, attempts to account for any part of the property of the company by fictitious losses or expenses; or25(i) is guilty of any false representation or fraud for the purpose of obtaining the consent of the creditors of the company or any of them, to an agreement with reference to the affairs of the company or to the winding up,30he shall be punishable with imprisonment for a term which shall not be less than three years but which may extend to five years and with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees:provided that it shall be a good defence if the accused proves that he had no intent to defraud or to conceal the true state of affairs of the company or to defeat the law35(2) where any person pawns, pledges or disposes of any property in circumstances which amount to an offence under sub-clause (viii) of clause (d) of sub-section (1), every person who takes in pawn or pledge or otherwise receives the property, knowing it to be pawned, pledged, or disposed of in such circumstances as aforesaid, shall be punishable with imprisonment for a term which shall not be less than three years but which may extend to five years and with fine which shall not be less than three lakh rupees but which may extend to five lakh rupees40explanation—for the purposes of this section, the expression "officer" includes any person in accordance with whose directions or instructions the directors of the company have been accustomed to actpenalty for frauds by officers337 if any person, being at the time of the commission of the alleged offence an officer of a company which is subsequently ordered to be wound up by the tribunal or which subsequently passes a resolution for voluntary winding up,—45(a) has, by false pretences or by means of any other fraud, induced any person to give credit to the company;(b) with intent to defraud creditors of the company or any other person, has made or caused to be made any gift or transfer of, or charge on, or has caused or connived at the levying of any execution against, the property of the company; or5(c) with intent to defraud creditors of the company, has concealed or removedany part of the property of the company since the date of any unsatisfied judgment or order for payment of money obtained against the company or within two months before that date,he shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to three years and with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees10liability where proper accounts not kept15338 (1) where a company is being wound up, if it is shown that proper books of account were not kept by the company throughout the period of two years immediately preceding the commencement of the winding up, or the period between the incorporation of the company and the commencement of the winding up, whichever is shorter, every officer of the company who is in default shall, unless he shows that he acted honestly and that in the circumstances in which the business of the company was carried on, the default was excusable, be punishable with imprisonment for a term which shall not be less than one year but which may extend to three years and with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees20(2) for the purposes of sub-section (1), it shall be deemed that proper books of account have not been kept in the case of any company,—(a) if such books of account as are necessary to exhibit and explain the transactions and financial position of the business of the company, including books containing entries made from day-to-day in sufficient detail of all cash received and all cash paid, have not been kept; and25(b) where the business of the company has involved dealings in goods,statements of the annual stock takings and, except in the case of goods sold by way of ordinary retail trade, of all goods sold and purchased, showing the goods and the buyers and the sellers thereof in sufficient detail to enable those goods and those buyers and sellers to be identified, have not been kept30liability for fraudulent conduct of business35339 (1) if in the course of the winding up of a company, it appears that any businessof the company has been carried on with intent to defraud creditors of the company or any other persons or for any fraudulent purpose, the tribunal, on the application of the official liquidator, or the company liquidator or any creditor or contributory of the company, may, if it thinks it proper so to do, declare that any person, who is or has been a director, manager, or officer of the company or any persons who were knowingly parties to the carrying on of the business in the manner aforesaid shall be personally responsible, without any limitation of liability, for all or any of the debts or other liabilities of the company as the tribunal may direct:40provided that on the hearing of an application under this sub-section, the officialliquidator or the company liquidator, as the case may be, may himself give evidence or call witnesses(2) where the tribunal makes any such declaration, it may give such further directions as it thinks proper for the purpose of giving effect to that declaration and, in particular,—45(a) make provision for making the liability of any such person under the declarationa charge on any debt or obligation due from the company to him, or on any mortgage or charge or any interest in any mortgage or charge on any assets of the company held by or vested in him, or any person on his behalf, or any person claiming as assignee from or through the person liable or any person acting on his behalf;50(b) make such further order as may be necessary for the purpose of enforcingany charge imposed under this sub-section(3) where any business of a company is carried on with such intent or for such purpose as is mentioned in sub-section (1), every person who was knowingly a party to the carrying on of the business in the manner aforesaid, shall be liable for action under section 4475(4) this section shall apply, notwithstanding that the person concerned may be punishable under any other law for the time being in force in respect of the matters on the ground of which the declaration is to be madeexplanation—for the purposes of this section,—10(a) the expression "assignee" includes any person to whom or in whose favour, by the directions of the person liable, the debt, obligation, mortgage or charge was created, issued or transferred or the interest was created, but does not include an assignee for valuable consideration, not including consideration by way of marriage, given in good faith and without notice of any of the matters on the ground of which the declaration is made;15(b) the expression "officer" includes any person in accordance with whose directions or instructions the directors of the company have been accustomed to act20340 (1) if in the course of winding up of a company, it appears that any person who has taken part in the promotion or formation of the company, or any person, who is or has been a director, manager, company liquidator or officer of the company—(a) has misapplied, or retained, or become liable or accountable for, any money or property of the company; orpower of tribunal to assess damages against delinquent directors, etc(b) has been guilty of any misfeasance or breach of trust in relation to the company,2530the tribunal may, on the application of the official liquidator, or the company liquidator, or of any creditor or contributory, made within the period specified in that behalf in sub-section (2), inquire into the conduct of the person, director, manager, company liquidator or officer aforesaid, and order him to repay or restore the money or property or any part thereof respectively, with interest at such rate as the tribunal considers just and proper, or to contribute such sum to the assets of the company by way of compensation in respect of the misapplication, retainer, misfeasance or breach of trust, as the tribunal considers just and proper35(2) an application under sub-section (1) shall be made within five years from the date of the winding up order, or of the first appointment of the company liquidator in the winding up, or of the misapplication, retainer, misfeasance or breach of trust, as the case may be, whichever is longer(3) this section shall apply, notwithstanding that the matter is one for which the person concerned may be criminally liable40341 where a declaration under section 339 or an order under section 340 is made in respect of a firm or body corporate, the tribunal shall also have power to make a declaration under section 339, or pass an order under section 340, as the case may be, in respect of any person who was at the relevant time a partner in that firm or a director of that body corporateliability under sections 339 and 340 to extend to partners or directors in firms or companies45prosecution of delinquent officers and members of company342 (1) if it appears to the tribunal in the course of a winding up by the tribunal, that any person, who is or has been an officer, or any member, of the company has been guilty of any offence in relation to the company, the tribunal may, either on the application of any person interested in the winding up or suo motu, direct the liquidator to prosecute the offender or to refer the matter to the registrar5(2) if it appears to the company liquidator in the course of a voluntary winding up that any person,who is or has been an officer, or any member, of the company has been guilty of any offence in relation to the company under this act, he shall forthwith report the matter to the registrar and shall furnish to him such information and give to him such access to and facilities for inspecting and taking copies of any books and papers, being information or books and papers in the possession or under the control of the company liquidator and relating to the matter in question, as the registrar may require(3) where any report is made under sub-section (2) to the registrar,—10(a) if he thinks fit, he may apply to the central government for an order to make further inquiry into the affairs of the company by any person designated by him and for conferring on such person all the powers of investigation as are provided under this act;15(b) if he considers that the case is one in which a prosecution ought to be instituted, he shall report the matter to the central government, and that government may, after taking such legal advice as it thinks fit, direct the registrar to institute prosecution: provided that no report shall be made by the registrar under this clause without first giving the accused person a reasonable opportunity of making a statement in writing to the registrar and of being heard thereon2025(4) if it appears to the tribunal in the course of a voluntary winding up that anyperson, who is or has been an officer, or any member, of the company has been guilty as aforesaid, and that no report with respect to the matter has been made by the company liquidator to the registrar under sub-section (2), the tribunal may, on the application of any person interested in the winding up or suo motu, direct the company liquidator to make such a report, and on a report being made, the provisions of this section shall have effect as though the report had been made in pursuance of the provisions of sub-section (2)(5) when any prosecution is instituted under this section, it shall be the duty of the liquidator and of every person, who is or has been an officer and agent of the company to give all assistance in connection with the prosecution which he is reasonably able to give30explanation—for the purposes of this sub-section, the expression "agent", in relation to a company, shall include any banker or legal adviser of the company and any person employed by the company as auditor35(6) if a person fails or neglects to give assistance required by sub-section (5), he shall be liable to pay fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees343 (1) the company liquidator may—(a) with the sanction of the tribunal, when the company is being wound up by the tribunal; and40(b) with the sanction of a special resolution of the company and prior approval of the tribunal, in the case of a voluntary winding up,—company liquidator to exercise certain powers subject to sanction(i) pay any class of creditors in full;45(ii) make any compromise or arrangement with creditors or persons claiming to be creditors, or having or alleging themselves to have any claim, present or future, certain or contingent, against the company, or whereby the company may be rendered liable; or(iii) compromise any call or liability to call, debt, and liability capable of resulting in a debt, and any claim, present or future, certain or contingent, ascertained or sounding only in damages, subsisting or alleged to subsist between the company and a contributory or alleged contributory or other debtor or person apprehending liability to the company, and all questions in any way relating to or affecting the assets or liabilities or the winding up of the company, on such terms as may be agreed, and take any security for the discharge of any such call, debt, liability or claim, and give a complete discharge in respect thereof5(2) notwithstanding anything contained in sub-section (1), in the case of a winding up by the tribunal, the central government may make rules to provide that the company liquidator may, under such circumstances, if any, and subject to such conditions, restrictions and limitations, if any, as may be prescribed, exercise any of the powers referred to in subclause (ii) or sub-clause (iii) of clause (b) of sub-section (1) without the sanction of the tribunal10(3) any creditor or contributory may apply in the manner prescribed to the tribunal with respect to any exercise or proposed exercise of powers by the company liquidator under this section, and the tribunal shall after giving a reasonable opportunity to such applicant and the company liquidator, pass such orders as it may think fit15statement that company is in liquidation344 (1) where a company is being wound up, whether by the tribunal or voluntarily, every invoice, order for goods or business letter issued by or on behalf of the company or a company liquidator of the company, or a receiver or manager of the property of the company, being a document on or in which the name of the company appears, shall contain a statement that the company is being wound up20(2) if a company contravenes the provisions of sub-section (1), the company, and every officer of the company, the company liquidator and any receiver or manager, who wilfully authorises or permits the non-compliance, shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees25345 where a company is being wound up, all books and papers of the company and of the company liquidator shall, as between the contributories of the company, be prima facie evidence of the truth of all matters purporting to be recorded thereinbooks and papers of company to be evidence346 (1) at any time after the making of an order for the winding up of a company by the tribunal, any creditor or contributory of the company may inspect the books and papers of the company only in accordance with, and subject to such rules as may be prescribedinspection of books and papers by creditors and contributories30(2) nothing contained in sub-section (1) shall exclude or restrict any rights conferred by any law for the time being in force—(a) on the central government or a state government; (b) on any authority or officer thereof; or (c) on any person acting under the authority of any such government or of any such authority or officer35347 (1) when the affairs of a company have been completely wound up and it is about to be dissolved, its books and papers and those of the company liquidator may be disposed of as follows:—disposal of books and papers of company40(a) in the case of winding up by the tribunal, in such manner as the tribunal directs; and(b) in the case of voluntary winding up, in such manner as the company by special resolution with the prior approval of the creditors direct45(2) after the expiry of five years from the dissolution of the company, no responsibility shall devolve on the company, the company liquidator, or any person to whom the custody of the books and papers has been entrusted, by reason of any book or paper not being forthcoming to any person claiming to be interested therein(3) the central government may, by rules,—(a) prevent for such period as it thinks proper the destruction of the books and papers of a company which has been wound up and of its company liquidator; and5(b) enable any creditor or contributory of the company to make representationsto the central government in respect of the matters specified in clause (a) and toappeal to the tribunal from any order which may be made by the central government in the matter(4) if any person acts in contravention of any rule framed or an order made under sub-section (3), he shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to fifty thousand rupees, or with both10information as to pending liquidations15348 (1) if the winding up of a company is not concluded within one year after its commencement, the company liquidator shall, unless he is exempted from so doing either wholly or in part by the central government, within two months of the expiry of such year and thereafter until the winding up is concluded, at intervals of not more than one year or at such shorter intervals, if any, as may be prescribed, file a statement in such form containing such particulars as may be prescribed, duly audited, by a person qualified to act as auditor of the company, with respect to the proceedings in, and position of, the liquidation,—(a) in the case of a winding up by the tribunal, with the tribunal; and (b) in the case of a voluntary winding up, with the registrar:20provided that no such audit as is referred to in this sub-section shall be necessary where the provisions of section 294 apply(2) when the statement is filed with the tribunal under clause (a) of sub-section (1), a copy shall simultaneously be filed with the registrar and shall be kept by him along with the other records of the company25(3) where a statement referred to in sub-section (1) relates to a government company in liquidation, the company liquidator shall forward a copy thereof—(a) to the central government, if that government is a member of the governmentcompany;(b) to any state government, if that government is a member of the governmentcompany; or30(c) to the central government and any state government, if both the governmentsare members of the government company35(4) any person stating himself in writing to be a creditor or contributory of the company shall be entitled, by himself or by his agent, at all reasonable times, on payment of the prescribed fee, to inspect the statement referred to in sub-section (1), and to receive a copy thereof or an extract therefrom45 of 1860(5) any person fraudulently stating himself to be a creditor or contributory under subsection (4) shall be deemed to be guilty of an offence under section 182 of the indian penal code, and shall, on the application of the company liquidator, be punishable accordingly40(6) if a company liquidator contravenes the provisions of this section, the company liquidator shall be punishable with fine which may extend to five thousand rupees for every day during which the failure continues45(7) if a company liquidator makes wilful default in causing the statement referred to in sub-section (1) audited by a person who is not qualified to act as an auditor of the company, the company liquidator shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to one lakh rupees, or with both349 every official liquidator shall, in such manner and at such times as may be prescribed, pay the monies received by him as official liquidator of any company, into the public account of india in the reserve bank of indiaofficial liquidator to make payments into public account of india5350 (1) every company liquidator of a company shall, in such manner and at such times as may be prescribed, deposit the monies received by him in his capacity as such in a scheduled bank to the credit of a special bank account opened by him in that behalf:company liquidator to deposit monies into scheduled bankprovided that if the tribunal considers that it is advantageous for the creditors or contributories or the company, it may permit the account to be opened in such other bank specified by it10(2) if any company liquidator at any time retains for more than ten days a sum exceeding five thousand rupees or such other amount as the tribunal may, on the application of the company liquidator, authorise him to retain, then, unless he explains the retention to the satisfaction of the tribunal, he shall—(a) pay interest on the amount so retained in excess, at the rate of twelve per cent per annum and also pay such penalty as may be determined by the tribunal;15(b) be liable to pay any expenses occasioned by reason of his default; and (c) also be liable to have all or such part of his remuneration, as the tribunal may consider just and proper, disallowed, or may also be removed from his office20351 neither the official liquidator nor the company liquidator of a company shall deposit any monies received by him in his capacity as such into any private banking accountliquidator not to deposit monies into private banking account352 (1) where any company is being wound up and the liquidator has in his hands or under his control any money representing—(a) dividends payable to any creditor but which had remained unpaid for six months after the date on which they were declared; orcompany liquidation dividend and undistributed assets account25(b) assets refundable to any contributory which have remained undistributed for six months after the date on which they become refundable, the liquidator shall forthwith deposit the said money into a separate special account to be known as the company liquidation dividend and undistributed assets account maintained in a scheduled bank30(2) the liquidator shall, on the dissolution of the company, pay into the company liquidation dividend and undistributed assets account any money representing unpaid dividends or undistributed assets in his hands at the date of dissolution35(3) the liquidator shall, when making any payment referred to in sub-sections (1) and(2), furnish to the registrar, a statement in the prescribed form, setting forth, in respect of all sums included in such payment, the nature of the sums, the names and last known addresses of the persons entitled to participate therein, the amount to which each is entitled and the nature of his claim thereto, and such other particulars as may be prescribed40(4) the liquidator shall be entitled to a receipt from the scheduled bank for any money paid to it under sub-sections (1) and (2), and such receipt shall be an effectual discharge of the company liquidator in respect thereof(5) where a company is being wound up voluntarily, the company liquidator shall, when filing a statement in pursuance of sub-section (1) of section 348, indicate the sum of money which is payable under sub-sections (1) and (2) of this section during the six months preceding the date on which the said statement is prepared, and shall, within fourteen days of the date of filing the said statement, pay that sum into the company liquidation dividend and undistributed assets account5(6) any person claiming to be entitled to any money paid into the company liquidationdividend and undistributed assets account, whether paid in pursuance of this section or under the provisions of any previous company law may apply to the registrar for payment thereof, and the registrar, if satisfied that the person claiming is entitled, may make the payment to that person of the sum due:10provided that the registrar shall settle the claim of such person within a period of sixtydays from the date of receipt of such claim, failing which the registrar shall make a report to the regional director giving reasons of such failure15(7) any money paid into the company liquidation dividend and undistributed assets account in pursuance of this section, which remains unclaimed thereafter for a period of fifteen years, shall be transferred to the general revenue account of the central government, but a claim to any money so transferred may be preferred under sub-section (6) and shall be dealt with as if such transfer had not been made and the order, if any, for payment on the claim will be treated as an order for refund of revenue20(8) any liquidator retaining any money which should have been paid by him into the company liquidation dividend and undistributed assets account under this section shall—(a) pay interest on the amount so retained at the rate of twelve per cent per annum and also pay such penalty as may be determined by the registrar:25provided that the central government may in any proper case remit either in part or in whole the amount of interest which the liquidator is required to pay under this clause;(b) be liable to pay any expenses occasioned by reason of his default; and (c) where the winding up is by the tribunal, also be liable to have all or such part of his remuneration, as the tribunal may consider just and proper, to be disallowed, and to be removed from his office by the tribunal30liquidator to make returns, etc35353 (1) if any company liquidator who has made any default in filing, delivering or making any return, account or other document, or in giving any notice which he is by law required to file, deliver, make or give, fails to make good the default within fourteen days after the service on him of a notice requiring him to do so, the tribunal may, on an application made to it by any contributory or creditor of the company or by the registrar, make an order directing the company liquidator to make good the default within such time as may be specified in the order(2) any order under sub-section (1) may provide that all costs of, and incidental to, the application shall be borne by the company liquidator(3) nothing in this section shall prejudice the operation of any enactment imposing penalties on a company liquidator in respect of any such default as aforesaid40354 (1) in all matters relating to the winding up of a company, the tribunal may—(a) have regard to the wishes of creditors or contributories of the company, as proved to it by any sufficient evidence;meetings to ascertain wishes of creditors or contributories45| ( ||----------------------------------------------------------------------------------------|| the creditors or contributories to be called, held and conducted in such manner as the || tribunal may direct; and |(c) appoint a person to act as chairman of any such meeting and to report theresult thereof to the tribunal(2) while ascertaining the wishes of creditors under sub-section (1), regard shall be had to the value of each debt of the creditor(3) while ascertaining the wishes of contributories under sub-section (1), regard shall be had to the number of votes which may be cast by each contributory5355 (1) any affidavit required to be sworn under the provisions, or for the purposes, of this chapter may be sworn—| ( | a | ) | | in india before any court, tribunal, judge or person lawfully authorised to ||----------------------------------------------------------------------------------------|-----|-----|-----|-------------------------------------------------------------------------------|| take and receive affidavits; and | | | | || court, | | | | || tribunal or | | | | || person, etc, | | | | || before whom | | | | || affidavit may | | | | || be sworn | | | | || 10 | | | | || ( | b | ) | | in any other country before any court, judge or person lawfully authorised to || take and receive affidavits in that country or before an indian diplomatic or consular | | | | || officer | | | | |(2) all tribunals, judges, justices, commissioners and persons acting judicially in india shall take judicial notice of the seal, stamp or signature, as the case may be, of any such court, tribunal, judge, person, diplomatic or consular officer, attached, appended or subscribed to any such affidavit or to any other document to be used for the purposes of this chapter15powers of tribunal to declare dissolution of company void20356 (1) where a company has been dissolved, whether in pursuance of this chapter or of section 232 or otherwise, the tribunal may at any time within two years of the date of the dissolution, on application by the company liquidator of the company or by any other person who appears to the tribunal to be interested, make an order, upon such terms as the tribunal thinks fit, declaring the dissolution to be void, and thereupon such proceedings may be taken as if the company had not been dissolved25(2) it shall be the duty of the company liquidator or the person on whose application the order was made, within thirty days after the making of the order or such further time as the tribunal may allow, to file a certified copy of the order with the registrar who shall register the same, and if the company liquidator or the person fails so to do, the company liquidator or the person shall be punishable with fine which may extend to ten thousand rupees for every day during which the default continuescommencement of winding up by tribunal30357 (1) where, before the presentation of a petition for the winding up of a company by the tribunal, a resolution has been passed by the company for voluntary winding up, the winding up of the company shall be deemed to have commenced at the time of the passing of the resolution, and unless the tribunal, on proof of fraud or mistake, thinks fit to direct otherwise, all proceedings taken in the voluntary winding up shall be deemed to have been validly taken35(2) in any other case, the winding up of a company by the tribunal shall be deemed tocommence at the time of the presentation of the petition for the winding up36 of 1963exclusion of certain time in computing period of limitation40358 notwithstanding anything in the limitation act, 1963, or in any other law for thetime being in force, in computing the period of limitation specified for any suit or application in the name and on behalf of a company which is being wound up by the tribunal, the period from the date of commencement of the winding up of the company to a period of one year immediately following the date of the winding up order shall be excluded part iv—official liquidatorsappointment of official liquidator45359 (1) for the purposes of this act, so far as it relates to the winding up of companiesby the tribunal, the central government may appoint as many official liquidators, joint, deputy or assistant official liquidators as it may consider necessary to discharge the functions of the official liquidator(2) the liquidators appointed under sub-section (1) shall be whole-time officers of the central government(3) the salary and other allowances of the official liquidator, joint official liquidator,5powers and functions of official liquidator10deputy official liquidator and assistant official liquidator shall be paid by the central government360 (1) the official liquidator shall exercise such powers and perform such duties as the central government may prescribe(2) without prejudice to the provisions of sub-section (1), the official liquidator may—(a) exercise all or any of the powers as may be exercised by a company liquidator under the provisions of this act; and(b) conduct inquiries or investigations, if directed by the tribunal or the central government, in respect of matters arising out of winding up proceedings 361 (1) where the company to be wound up under this chapter, —(i) has assets of book value not exceeding one crore rupees; andsummary procedure for liquidation(ii) belongs to such class or classes of companies as may be prescribed,15the central government may order it to be wound up by summary procedure provided under this part(2) where an order under sub-section (1) is made, the central government shall appoint the official liquidator as the liquidator of the company(3) the official liquidator shall forthwith take into his custody or control all assets, effects and actionable claims to which the company is or appears to be entitled20(4) the official liquidator shall, within thirty days of his appointment, submit a report to the central government in such manner and form, as may be prescribed, including a report whether in his opinion, any fraud has been committed in promotion, formation or management of the affairs of the company or not25(5) on receipt of the report under sub-section (4), if the central government is satisfied that any fraud has been committed by the promoters, directors or any other officer of the company, it may direct further investigation into the affairs of the company and that a report shall be submitted within such time as may be specified30(6) after considering the investigation report under sub-section (5), the central government may order that winding up may be proceeded under part i of this chapter or under the provision of this part362 (1) the official liquidator shall expeditiously dispose of all the assets whether movable or immovable within sixty days of his appointmentsale of assets and recovery of debts due to company35(2) the official liquidator shall serve a notice within thirty days of his appointment calling upon the debtors of the company or the contributories, as the case may be, to deposit within thirty days with him the amount payable to the company(3) where any debtor does not deposit the amount under sub-section (2), the central government may, on an application made to it by the official liquidator, pass such orders as it thinks fit40(4) the amount recovered under this section by the official liquidator shall be deposited in accordance with the provisions of section 349363 (1) the official liquidator within thirty days of his appointment shall call upon the creditors of the company to prove their claims in such manner as may be prescribed, within thirty days of the receipt of such callsettlement of claims of creditors by official liquidator45(2) the official liquidator shall prepare a list of claims of creditors in such manner as may be prescribed and each creditor shall be communicated of the claims accepted or rejected along with reasons to be recorded in writingappeal by creditor364 (1) any creditor aggrieved by the decision of the official liquidator under section363 may file an appeal before the central government within thirty days of such decision50(2) the central government may after calling the report from the official liquidator either dismiss the appeal or modify the decision of the official liquidator(3) the official liquidator shall make payment to the creditors whose claims have been accepted(4) the central government may, at any stage during settlement of claims, if considers necessary, refer the matter to the tribunal for necessary orders5365 (1) the official liquidator shall, if he is satisfied that the company is finally wound up, submit a final report to—order of dissolution of company(i) the central government, in case no reference was made to tribunal under sub-section (4) of section 364; and(ii) in any other case, the central government and tribunal10(2) the central government, or as the case may be, the tribunal on receipt of such report shall order that the company be dissolved(3) where an order is made under sub-section (2), the registrar shall strike off the name of the company from the register of companies and publish a notification to this effect chapter xxi15 part i— companies authorised to register under this actcompanies capable of being registered366 (1) for the purposes of this part, the word "company" includes any partnership firm, limited liability partnership, cooperative society, society or any other business entity formed under any other law for the time being in force which applies for registration under this part20 25(2) with the exceptions and subject to the provisions contained in this section, any company formed, whether before or after the commencement of this act, in pursuance of any act of parliament other than this act or of any other law for the time being in force or being otherwise duly constituted according to law, and consisting of seven or more members, may at any time register under this act as an unlimited company, or as a company limited by shares, or as a company limited by guarantee, in such manner as may be prescribed and the registration shall not be invalid by reason only that it has taken place with a view to the company's being wound up:provided that—6 of 1882301 of 19567 of 1913(i) a company registered under the indian companies act, 1882 or under the indian companies act, 1913 or the companies act, 1956, shall not register in pursuance of this section;(ii) a company having the liability of its members limited by any act of parliament other than this act or by any other law for the time being inforce, shall not register in pursuance of this section as an unlimited company or as a company limited by guarantee;35 40(iii) a company shall be registered in pursuance of this section as a company limited by shares only if it has a permanent paid-up or nominal share capital of fixed amount divided into shares, also of fixed amount, or held and transferable as stock, or divided and held partly in the one way and partly in the other, and formed on the principle of having for its members the holders of those shares or that stock, and no other persons;(iv) a company shall not register in pursuance of this section without the assent of a majority of such of its members as are present in person, or where proxies are allowed, by proxy, at a general meeting summoned for the purpose;45(v) where a company not having the liability of its members limited by any act of parliament or any other law for the time being in force is about to register as a limited company, the majority required to assent as aforesaid shall consist of not less than three-fourths of the members present in person, or where proxies are allowed, by proxy, at the meeting;5(vi) where a company is about to register as a company limited by guarantee, the assent to its being so registered shall be accompanied by a resolution declaring that each member undertakes to contribute to the assets of the company, in the event of its being wound up while he is a member, or within one year after he ceases to be a member, for payment of the debts and liabilities of the company or of such debts and liabilities as may have been contracted before he ceases to be a member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves, such amount as may be required, not exceeding a specified amount10(3) in computing any majority required for the purposes of sub-section (1), when a poll is demanded, regard shall be had to the number of votes to which each member is entitled according to the regulations of the companycertificate of registration of existing companies15367 on compliance with the requirements of this chapter with respect to registration, and on payment of such fees, if any, as are payable under section 403, the registrar shall certify under his hand that the company applying for registration is incorporated as a company under this act, and in the case of a limited company that it is limited and thereupon the company shall be so incorporatedvesting of property on registration20368 all property, movable and immovable (including actionable claims), belonging to or vested in a company at the date of its registration in pursuance of this part, shall, on such registration, pass to and vest in the company as incorporated under this act for all the estate and interest of the company thereinsaving of existing liabilities369 the registration of a company in pursuance of this part shall not affect its rights or liabilities in respect of any debt or obligation incurred, or any contract entered into, by, to, with, or on behalf of, the company before registration25continuation of pending legal proceedings370 all suits and other legal proceedings taken by or against the company, or any public officer or member thereof, which are pending at the time of the registration of a company in pursuance of this part, may be continued in the same manner as if the registration had not taken place:30provided that execution shall not issue against the property or persons of any individual member of the company on any decree or order obtained in any such suit or proceeding; but, in the event of the property of the company being insufficient to satisfy the decree or order, an order may be obtained for winding up the company371 (1) when a company is registered in pursuance of this part, sub-sections (2) to(7) shall applyeffect of registration under this part3540(2) all provisions contained in any act of parliament or any other law for the time being in force, or other instrument constituting or regulating the company, including, in the case of a company registered as a company limited by guarantee, the resolution declaring the amount of the guarantee, shall be deemed to be conditions and regulations of the company, in the same manner and with the same incidents as if so much thereof as would, if the company had been formed under this act, have been required to be inserted in the memorandum, were contained in a registered memorandum, and the residue thereof were contained in registered articles(3) all the provisions of this act shall apply to the company and the members, contributories and creditors thereof, in the same manner in all respects as if it had been formed under this act, subject as follows:—45(a) table f in schedule i shall not apply unless and except in so far as it isadopted by special resolution;(b) the provisions of this act relating to the numbering of shares shall not applyto any company whose shares are not numbered;5(c) in the event of the company being wound up, every person shall be a contributory, in respect of the debts and liabilities of the company contracted before registration, who is liable to pay or contribute to the payment of any debt or liability of the company contracted before registration, or to pay or contribute to the payment of any sum for the adjustment of the rights of the members among themselves in respect of any such debt or liability, or to pay or contribute to the payment of the costs, charges and expenses of winding up the company, so far as relates to such debts or liabilities as aforesaid;10(d) in the event of the company being wound up, every contributory shall be liable to contribute to the assets of the company, in the course of the winding up, all sums due from him in respect of any such liability as aforesaid; and in the event of the death or insolvency of any contributory, the provisions of this act with respect to the legal representatives of deceased contributories, or with respect to the assignees of insolvent contributories, as the case may be, shall apply (4) the provisions of this act with respect to—15(a) the registration of an unlimited company as a limited company; (b) the powers of an unlimited company on registration as a limited company, to increase the nominal amount of its share capital and to provide that a portion of its share capital shall not be capable of being called-up except in the event of winding up;(c) the power of a limited company to determine that a portion of its share capital shall not be capable of being called-up except in the event of winding up,20shall apply, notwithstanding anything in any act of parliament or any other law for the time being in force, or other instrument constituting or regulating the company25(5) nothing in this section shall authorise the company to alter any such provisions contained in any instrument constituting or regulating the company as would, if the company had originally been formed under this act, have been required to be contained in the memorandum and are not authorised to be altered by this act30(6) none of the provisions of this act (apart from those of section 242) shall derogate from any power of altering its constitution or regulations which may be vested in the company, by virtue of any act of parliament or any other law for the time being in force, or other instrument constituting or regulating the company(7) in this section, the expression "instrument" includes deed of settlement, deed of partnership, or limited liability partnership35power of court to stay or restrain proceedings372 the provisions of this act with respect to staying and restraining suits and other legal proceedings against a company at any time after the presentation of a petition for winding up and before the making of a winding up order, shall, in the case of a company registered in pursuance of this part, where the application to stay or restrain is by a creditor, extend to suits and other legal proceedings against any contributory of the companysuits stayed on winding up order40373 where an order has been made for winding up, or a provisional liquidator has been appointed for, a company registered in pursuance of this part, no suit or other legal proceeding shall be proceeded with or commenced against the company or any contributory of the company in respect of any debt of the company, except by leave of the tribunal and except on such terms as the tribunal may impose45374 every company which is seeking registration under this part shall,—(a) ensure that secured creditors of the company, prior to its registration under this part, have either consented to or have given their no objection to company's registration under this part;obligations of companies registering under this part(b) publish in a newspaper, advertisement one in english and one in vernacular language in such form as may be prescribed giving notice about registration under this part, seeking objections and address them suitably;(c) file an affidavit, duly notarised, from all the members or partners to provide that in the event of registration under this part, necessary documents or papers shall be submitted to the registering or other authority with which the company was earlier registered, for its dissolution as partnership firm, limited liability partnership, cooperative society, society or any other business entity, as the case may be5(d) comply with such other conditions as may be prescribed part ii—winding up of unregistered companies10winding up of unregistered companies375 (1) subject to the provisions of this part, any unregistered company may be wound up under this act, in such manner as may be prescribed, and all the provisions of this act, with respect to winding up shall apply to an unregistered company, with the exceptions and additions mentioned in sub-sections (2) to (4)(2) no unregistered company shall be wound up under this act voluntarily (3) an unregistered company may be wound up under the following circumstances, namely:—15(a) if the company is dissolved, or has ceased to carry on business, or is carryingon business only for the purpose of winding up its affairs;(b) if the company is unable to pay its debts; (c) if the tribunal is of opinion that it is just and equitable that the company should be wound up20(4) an unregistered company shall, for the purposes of this act, be deemed to be unable to pay its debts—25(a) if a creditor, by assignment or otherwise, to whom the company is indebted in a sum exceeding one lakh rupees then due, has served on the company, by leaving at its principal place of business, or by delivering to the secretary, or some director, manager or principal officer of the company, or by otherwise serving in such manner as the tribunal may approve or direct, a demand under his hand requiring the company to pay the sum so due, and the company has, for three weeks after the service of the demand, neglected to pay the sum or to secure or compound for it to the satisfaction of the creditor;3035(b) if any suit or other legal proceeding has been instituted against any member forany debt or demand due, or claimed to be due, from the company, or from him in his character as a member, and notice in writing of the institution of the suit or other legal proceeding having been served on the company by leaving the same at its principal place of business or by delivering it to the secretary, or some director, manager or principal officer of the company or by otherwise serving the same in such manner as the tribunal may approve or direct, the company has not, within ten days after service of the notice,—(i) paid, secured or compounded for the debt or demand; (ii) procured the suit or other legal proceeding to be stayed; or (iii) indemnified the defendant to his satisfaction against the suit or otherlegal proceeding, and against all costs, damages and expenses to be incurred by him by reason of the same;(c) if execution or other process issued on a decree or order of any court or tribunal in favour of a creditor against the company, or any member thereof as such, or any person authorised to be sued as nominal defendant on behalf of the company, is returned unsatisfied in whole or in part;5(d) if it is otherwise proved to the satisfaction of the tribunal that the company is unable to pay its debts explanation—for the purposes of this part, the expression "unregistered company"—(a) shall not include—10(i) a railway company incorporated under any act of parliament or other indian law or any act of parliament of the united kingdom;(ii) a company registered under this act; or (iii) a company registered under any previous companies law and not being a company the registered office whereof was in burma, aden, pakistan immediately before the separation of that country from india; and15(b) save as aforesaid, shall include any partnership firm, limited liability partnership or society or co-operative society, association or company consisting of more than seven members at the time when the petition for winding up the partnership firm, limited liability partnership or society or co-operative society, association or company, as the case may be, is presented before the tribunal20power to wind up foreign companies, although dissolved376 where a body corporate incorporated outside india which has been carrying on business in india, ceases to carry on business in india, it may be wound up as an unregistered company under this part, notwithstanding that the body corporate has been dissolved or otherwise ceased to exist as such under or by virtue of the laws of the country under which it was incorporated25provisions of chapter cumulative377 (1) the provisions of this part, with respect to unregistered companies shall be in addition to and not in derogation of, any provisions hereinbefore in this act contained with respect to the winding up of companies by the tribunal30(2) the tribunal or official liquidator may exercise any powers or do any act in the case of unregistered companies which might be exercised or done by the tribunal or official liquidator in winding up of companies formed and registered under this act:provided that an unregistered company shall not, except in the event of its being wound up, be deemed to be a company under this act, and then only to the extent provided by this part351 of 1956378 nothing in this part, shall affect the operation of any enactment which provides for any partnership firm, limited liability partnership or society or co-operative society, association or company being wound up, or being wound up as a company or as an unregistered company, under the companies act, 1956, or any act repealed by that act:1 of 1956provided that references in any such enactment to any provision contained in the companies act, 1956 or in any act repealed by that act shall be read as references to the corresponding provision, if any, contained in this actsaving and construction of enactments conferring power to wind up partnership firm, association or company, etc, in certain cases40 chapter xxii companies incorporated outside indiaapplication of act to foreign companies45379 where not less than fifty per cent of the paid-up share capital, whether equity or preference or partly equity and partly preference, of a foreign company is held by one or more citizens of india or by one or more companies or bodies corporate incorporated in india, or by one or more citizens of india and one or more companies or bodies corporate incorporated in india, whether singly or in the aggregate, such company shall comply with the provisions of this chapter and such other provisions of this act as may be prescribed with regard to the business carried on by it in india as if it were a company incorporated in india380 (1) every foreign company shall, within thirty days of the establishment of its place of business in india, deliver to the registrar for registration—documents, etc, to be delivered to registrar by foreign companies5(a) a certified copy of the charter, statutes or memorandum and articles, of thecompany or other instrument constituting or defining the constitution of the company and, if the instrument is not in the english language, a certified translation thereof in the english language;(b) the full address of the registered or principal office of the company; (c) a list of the directors and secretary of the company containing such particularsas may be prescribed;10(d) the name and address or the names and addresses of one or more personsresident in india authorised to accept on behalf of the company service of process and any notices or other documents required to be served on the company;(e) the full address of the office of the company in india which is deemed to be itsprincipal place of business in india;15(f) particulars of opening and closing of a place of business in india on earlieroccasion or occasions;(g) declaration that none of the directors of the company or the authorisedrepresentative in india has ever been convicted or debarred from formation of companies and management in india or abroad; and20(h) any other information as may be prescribed1 of 1956(2) every foreign company existing at the commencement of this act shall, if it has notdelivered to the registrar before such commencement, the documents and particulars specified in sub-section (1) of section 592 of the companies act, 1956, continue to be subject to theobligation to deliver those documents and particulars in accordance with that act25(3) where any alteration is made or occurs in the documents delivered to the registrarunder this section, the foreign company shall, within thirty days of such alteration, deliver to the registrar for registration, a return containing the particulars of the alteration in the prescribed form381 (1) every foreign company shall, in every calendar year,—30accounts of foreign company(a) make out a balance sheet and profit and loss account in such form, containingsuch particulars and including or having annexed or attached thereto such documents as may be prescribed; and(b) deliver a copy of those documents to the registrar:35provided that the central government may, by notification, direct that, in the case of any foreign company or class of foreign companies, the requirements of clause (a) shall not apply, or shall apply subject to such exceptions and modifications as may be specified in that notification(2) if any such document as is mentioned in sub-section (1) is not in the english language, there shall be annexed to it a certified translation thereof in the english language40(3) every foreign company shall send to the registrar along with the documentsrequired to be delivered to him under sub-section (1), a copy of a list in the prescribed formof all places of business established by the company in india as at the date with reference to which the balance sheet referred to in sub-section (1) is made out382 every foreign company shall—45display of name, etc, of foreign company(a) conspicuously exhibit on the outside of every office or place where it carries onbusiness in india, the name of the company and the country in which it is incorporated, in letters easily legible in english characters, and also in the characters of the language or one of the languages in general use in the locality in which the office or place is situate;(b) cause the name of the company and of the country in which the company is incorporated, to be stated in legible english characters in all business letters, billheads and letter paper, and in all notices, and other official publications of the company; and5(c) if the liability of the members of the company is limited, cause notice of that fact—(i) to be stated in every such prospectus issued and in all business letters, bill-heads, letter paper, notices, advertisements and other official publications of the company, in legible english characters; and10(ii) to be conspicuously exhibited on the outside of every office or placewhere it carries on business in india, in legible english characters and also in legible characters of the language or one of the languages in general use in the locality in which the office or place is situate15service on foreign company383 any process, notice, or other document required to be served on a foreign company shall be deemed to be sufficiently served, if addressed to any person whose name and address have been delivered to the registrar under section 380 and left at, or sent by post to, the address which has been so delivered to the registrar or by electronic mode384 (1) the provisions of section 71 shall apply mutatis mutandis to a foreign company20(2) the provisions of section 92 shall, subject to such exceptions, modifications and adaptations as may be made therein by rules made under this act, apply to a foreign company as they apply to a company incorporated in indiadebentures, annual return, registration of charges, books of account and their inspection25(3) the provisions of section 128 shall apply to a foreign company to the extent of requiring it to keep at its principal place of business in india, the books of account referred to in that section, with respect to monies received and spent, sales and purchases made, and assets and liabilities, in the course of or in relation to its business in india(4) the provisions of chapter vi shall apply mutatis mutandis to charges on properties which are created or acquired by any foreign company(5) the provisions of chapter xiv shall apply mutatis mutandis to the indian business of a foreign company as they apply to a company incorporated in india30385 there shall be paid to the registrar for registering any document required by the provisions of this chapter to be registered by him, such fee, as may be prescribedfee for registration of documentsinterpretation386 for the purposes of the foregoing provisions of this chapter,—(a) the expression "certified" means certified in the prescribed manner to be a true copy or a correct translation;35(b) the expression "director", in relation to a foreign company, includes any person in accordance with whose directions or instructions the board of directors of the company is accustomed to act; and(c) the expression "place of business" includes a share transfer or registration office40387 (1) no person shall issue, circulate or distribute in india any prospectus offering to subscribe for securities of a company incorporated or to be incorporated outside india, whether the company has or has not established, or when formed will or will not establish, a place of business in india, unless the prospectus is dated and signed, and—dating of prospectus and particulars to be contained therein(a) contains particulars with respect to the following matters, namely:—(i) the instrument constituting or defining the constitution of the company;45(ii) the enactments or provisions by or under which the incorporation ofthe company was effected;5(iii) address in india where the said instrument, enactments or provisions,or copies thereof, and if the same are not in the english language, a certified translation thereof in the english language can be inspected;(iv) the date on which and the country in which the company would be orwas incorporated; and(v) whether the company has established a place of business in india and,if so, the address of its principal office in india; and10(b) states the matters specified under section 26:provided that sub-clauses (i), (ii) and (iii) of clause (a) of this sub-section shall not apply in the case of a prospectus issued more than two years after the date at which the company is entitled to commence business15(2) any condition requiring or binding an applicant for securities to waive compliance with any requirement imposed by virtue of sub-section (1), or purporting to impute him with notice of any contract, documents or matter not specifically referred to in the prospectus, shall be void20(3) no person shall issue to any person in india a form of application for securities of such a company or intended company as is mentioned in sub-section (1), unless the form is issued with a prospectus which complies with the provisions of this chapter and such issue does not contravene the provisions of section 388:provided that this sub-section shall not apply if it is shown that the form of application was issued in connection with a bona fide invitation to a person to enter into an underwriting agreement with respect to securities(4) this section —25(a) shall not apply to the issue to existing members or debenture holders of a company of a prospectus or form of application relating to securities of the company, whether an applicant for securities will or will not have the right to renounce in favour of other persons; and30(b) except in so far as it requires a prospectus to be dated, to the issue of aprospectus relating to securities which are or are to be in all respects uniform with securities previously issued and for the time being dealt in or quoted on a recognised stock exchange,35but, subject as aforesaid, this section shall apply to a prospectus or form of application whether issued on or with reference to the formation of a company or subsequently(5) nothing in this section shall limit or diminish any liability which any person may incur under any law for the time being in force in india or under this act apart from this section40388 (1) no person shall issue, circulate or distribute in india any prospectus offering for subscription in securities of a company incorporated or to be incorporated outside india, provisions as to expert's consent and allotmentwhether the company has or has not been established, or when formed will or will not establish, a place of business in india,—5(a) if, where the prospectus includes a statement purporting to be made by an expert, he has not given, or has before delivery of the prospectus for registration withdrawn, his written consent to the issue of the prospectus with the statement included in the form and context in which it is included, or there does not appear in the prospectus a statement that he has given and has not withdrawn his consent as aforesaid; or10(b) if the prospectus does not have the effect, where an application is made in pursuance thereof, of rendering all persons concerned bound by all the provisions of sections 33 and 40, so far as applicable (2) for the purposes of this section, a statement shall be deemed to be included in a prospectus, if it is contained in any report or memorandum appearing on the face thereof or by reference incorporated therein or issued therewith15registration of prospectus20389 no person shall issue, circulate or distribute in india any prospectus offering for subscription in securities of a company incorporated or to be incorporated outside india, whether the company has or has not established, or when formed will or will not establish, a place of business in india, unless before the issue, circulation or distribution of the prospectus in india, a copy thereof certified by the chairman and two other directors of the company as having been approved by resolution of the managing body has been delivered for registration to the registrar and the prospectus states on the face of it that a copy has been so delivered, and there is endorsed on or attached to the copy, any consent to the issue of the prospectus required by section 388 and such documents as may be prescribed25390 notwithstanding anything contained in any other law for the time being in force, the central government may make rules applicable for—offer of indian depository receipts(a) the offer of indian depository receipts; (b) the requirement of disclosures in prospectus or letter of offer issued in connection with indian depository receipts;30(c) the manner in which the indian depository receipts shall be dealt with in a depository mode and by custodian and underwriters; and(d) the manner of sale, transfer or transmission of indian depository receipts, by a company incorporated or to be incorporated outside india, whether the company has or has not established, or will or will not establish, any place of business in india391 (1) the provisions of sections 34 to 36 (both inclusive) shall apply to—35application of sections 34 to 36 and chapter xx(i) the issue of a prospectus by a company incorporated outside india under section 389 as they apply to prospectus issued by an indian company;(ii) the issue of indian depository receipts by a foreign company40(2) the provisions of chapter xx shall apply mutatis mutandis for closure of the place of business of a foreign company in india as if it were a company incorporated in indiapunishment for contravention392 without prejudice to the provisions of section 391, if a foreign company contravenes the provisions of this chapter, the foreign company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees and in the case of a continuing offence, with an additional fine which may extend to fifty thousand rupees for every day after the first during which the contravention continues and every officer of the foreign company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twentyfive thousand rupees but which may extend to five lakh rupees, or with both5393 any failure by a company to comply with the provisions of this chapter shall notaffect the validity of any contract, dealing or transaction entered into by the company or its liability to be sued in respect thereof, but the company shall not be entitled to bring any suit, claim any set-off, make any counter-claim or institute any legal proceeding in respect of any such contract, dealing or transaction, until the company has complied with the provisions of this act applicable to it10company's failure to comply with provisions of this chapter not to affect validity of contracts, etc chapter xxiii government companies15394 (1) where the central government is a member of a government company, the central government shall cause an annual report on the working and affairs of that company to be—annual reports on government companies(a) prepared within three months of its annual general meeting before which the comments given by the comptroller and auditor-general of india and the audit report is placed under the proviso to sub-section (6) of section 143; and20(b) as soon as may be after such preparation, laid before both houses of parliament together with a copy of the audit report and comments upon or supplement to the audit report, made by the comptroller and auditor-general of india25(2) where in addition to the central government, any state government is also a member of a government company, that state government shall cause a copy of the annual report prepared under sub-section (1) to be laid before the house or both houses of the state legislature together with a copy of the audit report and the comments upon or supplement to the audit report referred to in sub-section (1)395 (1) where the central government is not a member of a government company, every state government which is a member of that company, or where only one state government is a member of the company, that state government shall cause an annual report on the working and affairs of the company to be—30(a) prepared within the time specified in sub-section (1) of section 394; andannual reports where one or more state governments are members of companies(b) as soon as may be after such preparation, laid before the house or both houses of the state legislature together with a copy of the audit report and comments upon or supplement to the audit report referred to in sub-section (1) of that section35(2) the provisions of this section and section 394 shall, so far as may be, apply to a government company in liquidation as they apply to any other government company chapter xxiv registration offices and feesregistration offices40396 (1) for the purposes of exercising such powers and discharging such functions as are conferred on the central government by or under this act or under the rules made thereunder and for the purposes of registration of companies under this act, the central government shall, by notification, establish such number of offices at such places as it thinks fit, specifying their jurisdiction(2) the central government may appoint such registrars, additional, joint, deputy and assistant registrars as it considers necessary for the registration of companies and discharge of various functions under this act, and the powers and duties that may be exercisable by such officers shall be such as may be prescribed5(3) the terms and conditions of service, including the salaries payable to persons appointed under sub-section (2), shall be such as may be prescribed(4) the central government may direct a seal or seals to be prepared for the authentication of documents required for, or connected with, the registration of companies10admissibility of certain documents as evidence15397 notwithstanding anything contained in any other law for the time being in force, any document reproducing or derived from returns and documents filed by a company with the registrar on paper or in electronic form or stored on any electronic data storage device or computer readable media by the registrar, and authenticated by the registrar or any other officer empowered by the central government in such manner as may be prescribed, shall be deemed to be a document for the purposes of this act and the rules made thereunder and shall be admissible in any proceedings thereunder without further proof or production of the original as evidence of any contents of the original or of any fact stated therein of which direct evidence is admissible21 of 200020398 (1) notwithstanding anything to the contrary contained in this act, and without prejudice to the provisions contained in section 6 of the information technology act, 2000, the central government may make rules so as to require from such date as may be prescribed in the rules that—provisions relating to filing of applications, documents, inspection, etc, in electronic form25(a) such applications, balance sheet, prospectus, return, declaration, memorandum, articles, particulars of charges, or any other particulars or document as may be required to be filed or delivered under this act or the rules made thereunder, shall be filed in the electronic form and authenticated in such manner as may be prescribed;(b) such document, notice, any communication or intimation, as may be required to be served or delivered under this act, in the electronic form and authenticated in such manner as may be prescribed;30(c) such applications, balance sheet, prospectus, return, register, memorandum, articles, particulars of charges, or any other particulars or document and return filed under this act or rules made thereunder shall be maintained by the registrar in the electronic form and registered or authenticated, as the case may be, in such manner as may be prescribed;35(d) such inspection of the memorandum, articles, register, index, balance sheet, return or any other particulars or document maintained in the electronic form, as is otherwise available for inspection under this act or the rules made thereunder, may be made by any person through the electronic form in such manner as may be prescribed;40(e) such fees, charges or other sums payable under this act or the rules made thereunder shall be paid through the electronic form and in such manner as may be prescribed; and45(f) the registrar shall register change of registered office, alteration of memorandum or articles, prospectus, issue certificate of incorporation, register such document, issue such certificate, record the notice, receive such communication as may be required to be registered or issued or recorded or received, as the case may be, under this act or the rules made thereunder or perform duties or discharge functions or exercise powers under this act or the rules made thereunder or do any act which is by this act directed to be performed or discharged or exercised or done by the registrar in the electronic form in such manner as may be prescribedexplanation - for the removal of doubts, it is hereby clarified that the rules made under this section shall not relate to imposition of fines or other pecuniary penalties or demand or payment of fees or contravention of any of the provisions of this act or punishment therefor5(2) the central government may, by notification, frame a scheme to carry out the provisions of sub-section (1) through the electronic form399 (1) save as otherwise provided elsewhere in this act, any person may—10inspection, production and evidence of documents kept by registrar(a) inspect by electronic means any documents kept by the registrar in accordance with the rules made, being documents filed or registered by him in pursuance of this act, or making a record of any fact required or authorised to be recorded or registered in pursuance of this act, on payment for each inspection of such fees as may be prescribed;15(b) require a certificate of the incorporation of any company, or a copy or extract of any other document or any part of any other document to be certified by the registrar, on payment in advance of such fees as may be prescribed:provided that the rights conferred by this sub-section shall be exercisable—20(i) in relation to documents delivered to the registrar with a prospectus in pursuance of section 26, only during the fourteen days beginning with the date of publication of the prospectus; and at other times, only with the permission of the central government; and(ii) in relation to documents so delivered in pursuance of clause (b) of subsection (1) of section 388, only during the fourteen days beginning with the date of the prospectus; and at other times, only with the permission of the central government25(2) no process for compelling the production of any document kept by the registrar shall issue from any court or the tribunal except with the leave of that court or the tribunal and any such process, if issued, shall bear thereon a statement that it is issued with the leave of the court or the tribunal30(3) a copy of, or extract from, any document kept and registered at any of the offices for the registration of companies under this act, certified to be a true copy by the registrar (whose official position it shall not be necessary to prove), shall, in all legal proceedings, be admissible in evidence as of equal validity with the original document400 the central government may also provide in the rules made under section 398and section 399 that the electronic form for the purposes specified in these sections shall be exclusive, or in the alternative or in addition to the physical form, thereforelectronic form to be exclusive, alternative or in addition to physical form35401 the central government may provide such value added services through theelectronic form and levy such fee thereon as may be prescribedprovision of value added services through electronic form21 of 2000402 all the provisions of the information technology act, 2000 relating to the electronicrecords, including the manner and format in which the electronic records shall be filed, in soapplication of provisions of information technology act, 2000far as they are not inconsistent with this act, shall apply in relation to the records in electronic form specified under section 398fee for filing, etc5403 (1) any document, required to be submitted, filed, registered or recorded, or anyfact or information required or authorised to be registered under this act, shall be submitted, filed, registered or recorded within the time specified in the relevant provision on payment of such fee as may be prescribed:10provided that any document, fact or information may be submitted, filed, registered orrecorded, after the time specified in relevant provision for such submission, filing, registering or recording, within a period of two hundred and seventy days from the date by which it should have been submitted, filed, registered or recorded, as the case may be, on payment of such additional fee as may be prescribed:15provided further that any such document, fact or information may, without prejudice toany other legal action or liability under the act, be also submitted, filed, registered or recorded, after the time specified in first proviso on payment of fee and additional fee specified under this section20(2) where a company fails or commits any default to submit, file, register or record any document, fact or information under sub-section (1) before the expiry of the period specified in the proviso to that sub-section with additional fee, the company and the officers of the company who are in default, shall, without prejudice to the liability for payment of fee and additional fee, be liable for the penalty or punishment provided under this act for such failure or defaultfees, etc, to be credited into public account404 all fees, charges, and other sums received by any registrar, additional, joint,deputy or assistant registrar or any other officer of the central government in pursuance of any provision of this act shall be paid into the public account of india in the reserve bank of india25 chapter xxv companies to furnish information or statistics30405 (1) the central government may, by order, require companies generally, or any class of companies, or any company, to furnish such information or statistics with regard to their or its constitution or working, and within such time, as may be specified in the orderpower of central government to direct companies to furnish information or statistics(2) every order under sub-section (1) shall be published in the official gazette and may be addressed to companies generally or to any class of companies, in such manner, as the central government may think fit and the date of such publication shall be deemed to be the date on which requirement for information or statistics is made on such companies or class of companies, as the case may be35(3) for the purpose of satisfying itself that any information or statistics furnished by a company or companies in pursuance of any order under sub-section (1) is correct and complete, the central government may by order require such company or companies to produce such records or documents in its possession or allow inspection thereof by such officer or furnish such further information as that government may consider necessary40 45(4) if any company fails to comply with an order made under sub-section (1) or subsection (3), or knowingly furnishes any information or statistics which is incorrect or incomplete in any material respect, the company shall be punishable with fine which may extend to twenty-five thousand rupees and every officer of the company who is in default, shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to three lakh rupees, or with both50(5) where a foreign company carries on business in india, all references to a company in this section shall be deemed to include references to the foreign company in relation, and only in relation, to such business chapter xxvi nidhis5power to modify act in its application to nidhis406 (1) in this section, "nidhi" means a company which has been incorporated as a nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit, and which complies with such rules as are prescribed by the central government for regulation of such class of companies10(2) save as otherwise expressly provided, the central government may, by notification, direct that any of the provisions of this act shall not apply, or shall apply with such exceptions, modifications and adaptations as may be specified in that notification, to any nidhi or nidhis of any class or description as may be specified in that notification15(3) a copy of every notification proposed to be issued under sub-section (2), shall be laid in draft 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 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 disapproving the issue of the notification or both houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the houses chapter xxvii20 national company law tribunal and appellate tribunal407 in this chapter, unless the context otherwise requires,—definitions(a) "chairperson" means the chairperson of the appellate tribunal;25(b) "judicial member" means a member of the tribunal or the appellate tribunal appointed as such and includes the president or the chairperson, as the case may be;(c) "member" means a member, whether judicial or technical of the tribunal or the appellate tribunal and includes the president or the chairperson, as the case may be;(d) "president" means the president of the tribunal; (e) "technical member" means a member of the tribunal or the appellate tribunal appointed as such30constitution of national company law tribunal35408 the central government shall, by notification, constitute, with effect from such date as may be specified therein, a tribunal to be known as the national company law tribunal consisting of a president and such number of judicial and technical members, as the central government may deem necessary, to be appointed by it by notification, to exercise and discharge such powers and functions as are, or may be, conferred on it by or under this act or any other law for the time being in force409 (1) the president shall be a person who is or has been a judge of a high court for five years(2) a person shall not be qualified for appointment as a judicial member unless he—qualification of president and members of tribunal(a) is, or has been, a judge of a high court; or40(b) is, or has been, a district judge for at least five years; or (c) has, for at least ten years been an advocate of a court(3) a person shall not be qualified for appointment as a technical member unless he—45(a) has, for at least fifteen years been a member of the indian corporate law service or indian legal service out of which at least three years shall be in the pay scale of joint secretary to the government of india or equivalent or above in that service; or(b) is, or has been, in practice as a chartered accountant for at least fifteen years;or(c) is, or has, been, in practice as a cost accountant for at least fifteen years; or (d) is, or has been, in practice as a company secretary for at least fifteen years; or5(e) is a person of proven ability, integrity and standing having special knowledgeand experience, of not less than fifteen years, in law, industrial finance, industrial management or administration, industrial reconstruction, investment, accountancy, labour matters, or such other disciplines related to management, conduct of affairs, revival, rehabilitation and winding up of companies; or1014 of 1947(f) is or has been for at least five years, a presiding officer of a labour court,tribunal or national tribunal constituted under the industrial disputes act, 1947constitution of appellate tribunal15410 the central government shall, by notification, constitute, with effect from suchdate as may be specified therein, an appellate tribunal to be known as the national company law appellate tribunal consisting of a chairperson and such number of judicial and technical members, not exceeding eleven, as the central government may deem fit, to be appointed by it by notification, for hearing appeals against the orders of the tribunal411 (1) the chairperson shall be a person who is or has been a judge of the supreme court or the chief justice of a high court(2) a judicial member shall be a person who is or has been a judge of a high court or is a judicial member of the tribunal, for five years20qualifications of chairperson and members of appellate tribunal(3) a technical member shall be a person of proven ability, integrity and standing having special knowledge and experience, of not less than twenty-five years, in law, industrial finance, industrial management or administration, industrial reconstruction, investment, accountancy, labour matters, or such other disciplines related to management, conduct of affairs, revival, rehabilitation and winding up of companies25selection of members of tribunal and appellate tribunal412 (1) the president of the tribunal and the chairperson and judicial members ofthe appellate tribunal, shall be appointed after consultation with the chief justice of india(2) the members of the tribunal and the technical members of the appellate tribunalshall be appointed on the recommendation of a selection committee consisting of—30(a) chief justice of india or his nominee—chairperson; (b) a senior judge of the supreme court or a chief justice of high court—member;(c) secretary in the ministry of corporate affairs—member;(d) secretary in the ministry of law and justice—member; and35(e) secretary in the department of financial services in the ministry of finance—member (3) the secretary, ministry of corporate affairs shall be the convener of the selection committee40(4) the selection committee shall determine its procedure for recommending persons under sub-section (2)(5) no appointment of the members of the tribunal or the appellate tribunal shall be invalid merely by reason of any vacancy or any defect in the constitution of the selection committee45term of office of president, chairperson and other members413 (1) the president and every other member of the tribunal shall hold office as such for a term of five years from the date on which he enters upon his office, but shall be eligible for re-appointment for another term of five years(2) a member of the tribunal shall hold office as such until he attains,—(a) in the case of the president, the age of sixty-seven years; (b) in the case of any other member, the age of sixty-five years:provided that a person who has not completed fifty years of age shall not be eligible for appointment as member:5provided further that the member may retain his lien with his parent cadre or ministry or department, as the case may be, while holding office as such for a period not exceeding one year(3) the chairperson or a member of the appellate tribunal shall hold office as such for a term of five years from the date on which he enters upon his office, but shall be eligible for re-appointment for anonther term of five years(4) a member of the appellate tribunal shall hold office as such until he attains,—10(a) in the case of the chairperson, the age of seventy years; (b) in the case of any other member, the age of sixty-seven years:provided that a person who has not completed fifty years of age shall not be eligible for appointment as member:15provided further that the member may retain his lien with his parent cadre or ministryor department, as the case may be, while holding office as such for a period not exceeding one year414 the salary, allowances and other terms and conditions of service of the members of the tribunal and the appellate tribunal shall be such as may be prescribed:20provided that neither the salary and allowances nor the other terms and conditions ofservice of the members shall be varied to their disadvantage after their appointmentsalary, allowances and other terms and conditions of service of members25acting president and chairperson of tribunal or appellate tribunal415 (1) in the event of the occurrence of any vacancy in the office of the president or the chairperson by reason of his death, resignation or otherwise, the senior-most member shall act as the president or the chairperson, as the case may be, until the date on which a new president or chairperson appointed in accordance with the provisions of this act to fill such vacancy enters upon his office30(2) when the president or the chairperson is unable to discharge his functions owing to absence, illness or any other cause, the senior-most member shall discharge the functions of the president or the chairperson, as the case may be, until the date on which the president or the chairperson resumes his dutiesresignation of members416 the president, the chairperson or any member may, by notice in writing under his hand addressed to the central government, resign from his office:35provided that the president, the chairperson, or the member shall continue to hold office until the expiry of three months from the date of receipt of such notice by the central government or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is earliestremoval of members417 (1) the central government may, after consultation with the chief justice of india, remove from office the president, chairperson or any member, who—(a) has been adjudged an insolvent; or40(b) has been convicted of an offence which, in the opinion of the centralgovernment, involves moral turpitude; or(c) has become physically or mentally incapable of acting as such president, the chairperson, or member; or45(d) has acquired such financial or other interest as is likely to affect prejudiciallyhis functions as such president, the chairperson, or member; or(e) has so abused his position as to render his continuance in office prejudicial to the public interest: provided that the president, the chairperson or the member shall not be removed on any of the grounds specified in clauses (b) to (e) without giving him a reasonable opportunity of being heard510(2) without prejudice to the provisions of sub-section (1), the president, the chairperson or the member shall not be removed from his office except by an order made by the central government on the ground of proved misbehaviour or incapacity after an inquiry made by a judge of the supreme court nominated by the chief justice of india on a reference made to him by the central government in which such president, the chairperson or member had been informed of the charges against him and given a reasonable opportunity of being heard15(3) the central government may, with the concurrence of the chief justice of india, suspend from office, the president, the chairperson or member in respect of whom reference has been made to the judge of the supreme court under sub-section (2) until the central government has passed orders on receipt of the report of the judge of the supreme court on such reference(4) the central government shall, after consultation with the supreme court, make rules to regulate the procedure for the inquiry on the ground of proved misbehaviour or incapacity referred to in sub-section (2)20staff of tribunal and appellate tribunal418 (1) the central government shall, in consultation with the tribunal and the appellate tribunal, provide the tribunal and the appellate tribunal, as the case may be, with such officers and other employees as may be necessary for the exercise of the powers and discharge of the functions of the tribunal and the appellate tribunal25(2) the officers and other employees of the tribunal and the appellate tribunal shall discharge their functions under the general superintendence and control of the president, or as the case may be, the chairperson, or any other member to whom powers for exercising such superintendence and control are delegated by him30(3) the salaries and allowances and other conditions of service of the officers and other employees of the tribunal and the appellate tribunal shall be such as may be prescribedbenches of tribunal419 (1) there shall be constituted such number of benches of the tribunal, as may, bynotification, be specified by the central government35(2) the principal bench of the tribunal shall be at new delhi which shall be presidedover by the president of the tribunal(3) the powers of the tribunal shall be exercisable by benches consisting of two members out of whom one shall be a judicial member and the other shall be a technical member:40provided that it shall be competent for the members of the tribunal authorised in this behalf to function as a bench consisting of a single judicial member and exercise the powers of the tribunal in respect of such class of cases or such matters pertaining to such class of cases, as the president may, by general or special order, specify:45provided further that if at any stage of the hearing of any such case or matter, it appears to the member that the case or matter is of such a nature that it ought to be heard by a bench consisting of two members, the case or matter may be transferred by the president, or, as the case may be, referred to him for transfer, to such bench as the president may deem fit(4) the president shall, for the disposal of any case relating to rehabilitation, restructuring, reviving or winding up, of companies, constitute one or more special benches consisting of three or more members, majority necessarily being of judicial members5(5) if the members of a bench differ in opinion on any point or points, it shall be decided according to the majority, if there is a majority, but if the members are equally divided, they shall state the point or points on which they differ, and the case shall be referred by the president for hearing on such point or points by one or more of the other members of the tribunal and such point or points shall be decided according to the opinion of the majority of members who have heard the case, including those who first heard it10420 (1) the tribunal may, after giving the parties to any proceeding before it, a reasonable opportunity of being heard, pass such orders thereon as it thinks fitorders of tribunal(2) the tribunal may, at any time within two years from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it, and shall make such amendment, if the mistake is brought to its notice by the parties:15provided that no such amendment shall be made in respect of any order against whichan appeal has been preferred under this act(3) the tribunal shall send a copy of every order passed under this section to all the parties concerned20421 (1) any person aggrieved by an order of the tribunal may prefer an appeal to the appellate tribunalappeal from orders of tribunal (2) no appeal shall lie to the appellate tribunal from an order made by the tribunal with the consent of parties25 (3) every appeal under sub-section (1) shall be filed within a period of forty-five days from the date on which a copy of the order of the tribunal is made available to the person aggrieved and shall be in such form, and accompanied by such fees, as may be prescribed:30provided that the appellate tribunal may entertain an appeal after the expiry of the said period of forty-five days from the date aforesaid, but within a further period not exceeding forty-five days, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within that period (4) on the receipt of an appeal under sub-section (1), the appellate tribunal shall, after giving the parties to the appeal a reasonable opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against35 (5) the appellate tribunal shall send a copy of every order made by it to the tribunaland the parties to appeal40expeditious disposal by tribunal and appellate tribunal422 (1) every application or petition presented before the tribunal and every appealfiled before the appellate tribunal shall be dealt with and disposed of by it as expeditiously as possible and every endeavour shall be made by the tribunal or the appellate tribunal, as the case may be, for the disposal of such application or petition or appeal within three months from the date of its presentation before the tribunal or the filing of the appeal before the appellate tribunal45(2) where any application or petition or appeal is not disposed off within the periodspecified in sub-section (1), the tribunal or, as the case may be the appellate tribunal, shallrecord the reasons for not disposing of the application or petition or the appeal, as the case may be, within the period so specified; and the president or the chairperson, as the case may be, may, after taking into account the reasons so recorded, extend the period referred to in sub-section (1) by such period not exceeding ninety days as he may consider necessary50appeal to supreme court423 any person aggrieved by any order of the appellate tribunal may file an appealto the supreme court within sixty days from the date of receipt of the order of the appellatetribunal to him on any question of law arising out of such order:provided that the supreme court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days55 of 1908procedure before tribunal and appellate tribunal424 (1) the tribunal and the appellate tribunal shall not, while disposing of anyproceeding before it or, as the case may be, an appeal before it, be bound by the procedure laid down in the code of civil procedure, 1908, but shall be guided by the principles of natural justice, and, subject to the other provisions of this act and of any rules made thereunder, the tribunal and the appellate tribunal shall have power to regulate their own procedure10(2) the tribunal and the appellate tribunal shall have, for the purposes of dischargingtheir functions under this act, the same powers as are vested in a civil court under the code of civil procedure, 1908 while trying a suit in respect of the following matters, namely:—5 of 1908(a) summoning and enforcing the attendance of any person and examining himon oath;(b) requiring the discovery and production of documents;15(c) receiving evidence on affidavits;1 of 1872(d) subject to the provisions of sections 123 and 124 of the indian evidence act,1872, requisitioning any public record or document or a copy of such record or document from any office;20(e) issuing commissions for the examination of witnesses or documents; (f) dismissing a representation for default or deciding it ex parte;(g) setting aside any order of dismissal of any representation for default or anyorder passed by it ex parte; and(h) any other matter which may be prescribed25(3) any order made by the tribunal or the appellate tribunal may be enforced by thattribunal in the same manner as if it were a decree made by a court in a suit pending therein, and it shall be lawful for the tribunal or the appellate tribunal to send for execution of its orders to the court within the local limits of whose jurisdiction,—30(a) in the case of an order against a company, the registered office of the companyis situate; or(b) in the case of an order against any other person, the person concernedvoluntarily resides or carries on business or personally works for gain45 of 1860352 of 1974(4) all proceedings before the tribunal or the appellate tribunal shall be deemed tobe judicial proceedings within the meaning of sections 193 and 228, and for the purposes of section 196 of the indian penal code, and the tribunal and the appellate tribunal shall be deemed to be civil court for the purposes of section 195 and chapter xxvi of the code of criminal procedure, 1973power to punish for contempt4070 of 1971425 the tribunal and the appellate tribunal shall have the same jurisdiction, powers and authority in respect of contempt of themselves as the high court has and may exercise, for this purpose, the powers under the provisions of the contempt of courts act, 1971, which shall have the effect subject to modifications that—(a) the reference therein to a high court shall be construed as including a reference to the tribunal and the appellate tribunal; and45(b) the reference to advocate-general in section 15 of the said act shall be construed as a reference to such law officers as the central government may, specify in this behalfdelegation of powers5426 the tribunal or the appellate tribunal may, by general or special order, direct, subject to such conditions, if any, as may be specified in the order, any of its officers or employees or any other person authorised by it to inquire into any matter connected with any proceeding or, as the case may be, appeal before it and to report to it in such manner as may be specified in the order45 of 1860427 the president, members, officers and other employees of the tribunal and the chairperson, members, officers and other employees of the appellate tribunal shall be deemed to be public servants within the meaning of section 21 of the indian penal codepresident, members, officers, etc, to be public servants10protection of action taken in good faith428 no suit, prosecution or other legal proceeding shall lie against the tribunal, the president, member, officer or other employee, or against the appellate tribunal, the chairperson, member, officer or other employees thereof or liquidator or any other person authorised by the tribunal or the appellate tribunal for the discharge of any function under this act in respect of any loss or damage caused or likely to be caused by any act which is in good faith done or intended to be done in pursuance of this act15power to seek assistance of chief metropolitan magistrate, etc20429 (1) the tribunal may, in any proceeding relating to a sick company or winding upof any other company, in order to take into custody or under its control all property, books of account or other documents, request, in writing, the chief metropolitan magistrate, chief judicial magistrate or the district collector within whose jurisdiction any such property, books of account or other documents of such sick or other company, are situate or found, to take possession thereof, and the chief metropolitan magistrate, chief judicial magistrate or the district collector, as the case may be, shall, on such request being made to him,—(a) take possession of such property, books of account or other documents; and (b) cause the same to be entrusted to the tribunal or other person authorisedby it25(2) for the purpose of securing compliance with the provisions of sub-section (1), thechief metropolitan magistrate, chief judicial magistrate or the district collector may take or cause to be taken such steps and use or cause to be used such force as may, in his opinion, be necessary30(3) no act of the chief metropolitan magistrate, chief judicial magistrate or thedistrict collector done in pursuance of this section shall be called in question in any court or before any authority on any ground whatsoevercivil court not to have jurisdiction35430 no civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the tribunal or the appellate tribunal is empowered to determine by or under this act or any other law for the time being in force and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this act or any other law for the time being in force, by the tribunal or the appellate tribunal40431 no act or proceeding of the tribunal or the appellate tribunal shall be questioned or shall be invalid merely on the ground of the existence of any vacancy or defect in the constitution of the tribunal or the appellate tribunal, as the case may bevacancy in tribunal or appellate tribunal not to invalidate acts or proceedings right to legal representation432 a party to any proceeding or appeal before the tribunal or the appellate tribunal, as the case may be, may either appear in person or authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any other person to present his case before the tribunal or the appellate tribunal, as the case may belimitation36 of 1963433 the provisions of the limitation act, 1963 shall, as far as may be, apply to proceedings or appeals before the tribunal or the appellate tribunal, as the case may be 434 on the date of the constitution of the tribunal,—transfer of certain pending proceedings51 of 1956(a) all matters, proceedings or cases pending before the board of company lawadministration (herein in this section referred to as the company law board) constituted under sub-section (1) of section 10e of the companies act, 1956, immediately before such date shall stand transferred to the tribunal and the tribunal shall dispose of such matters, proceedings or cases in accordance with the provisions of this act;10(b) any person aggrieved by any decision or order of the company law boardmade before such date may file an appeal to the high court within sixty days from the date of communication of the decision or order of the company law board to him on any question of law arising out of such order:15provided that the high court may if it is satisfied that the appellant was prevented by sufficient cause from filing an appeal within the said period, allow it to be filed within a further period not exceeding sixty days;1 of 1956(c) all proceedings under the companies act, 1956, including proceedings relatingto arbitration, compromise, arrangements and reconstruction and winding up of companies, pending immediately before such date before any district court or high court, shall stand transferred to the tribunal and the tribunal may proceed to deal with such proceedings either de novo or from the stage before their transfer:20provided that nothing in this clause shall apply to any proceedings for the winding up of a company subject to the supervision of court pending before any district court or high court immediately before such date, and such proceedings shall, after such date, continue to be dealt with by the district court or the high court, as the case may be, and—25(i) the company shall be wound up in the same manner and with the sameincidents; and(ii) any appeal against any order of the district court or the high court shall lieto the competent court to which appeal would have lain,1 of 1956as if the companies act, 1956 had continued to be in force30 351 of 1986(d) any appeal preferred to the appellate authority for industrial and financialreconstruction or any reference made or inquiry pending to or before the board of industrial and financial reconstruction or any proceeding of whatever nature pending before the appellate authority for industrial and financial reconstruction or the board for industrial and financial reconstruction under the sick industrial companies (special provisions) act, 1985 immediately before the commencement of this act shall stand abated:provided that a company in respect of which such appeal or reference or inquiry stands abated under this clause may make a reference to the tribunal under this act within one hundred and eighty days from the commencement of this act in accordance with the provisions of this act:40provided further that no fees shall be payable for making such reference under this act by a company whose appeal or reference or inquiry stands abated under this clause chapter xxviii special courts45establishment of special courts435 (1) the central government may, for the purpose of providing speedy trial of offences under this act, by notification, establish or designate as many special courts as may be necessary(2) a special court shall consist of a single judge who shall be appointed by the central government with the concurrence of the chief justice of the high court within whose jurisdiction the judge to be appointed is working(3) a person shall not be qualified for appointment as a judge of a special court unless he is, immediately before such appointment, holding office of a sessions judge or an additional sessions judge| 436 | ( | 1 | ) | | notwithstanding anything contained in the code of criminal procedure, 1973,— ||-------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|----------------------------------------------------------------------------|-----|------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|| 5 | | | | | || 2 of 1974 | offences | | | | || triable by | | | | | || special | | | | | || courts | | | | | || ( | a | ) | | all offences under this act shall be triable only by the special court established | || for the area in which the registered office of the company in relation to which the | | | | | || offence is committed or where there are more special courts than one for such area, by | | | | | || such one of them as may be specified in this behalf by the high court concerned; | | | | | || 10 | | | | | || 2 of 1974 | | | | | || ( | b | ) | | where a person accused of, or suspected of the commission of, an offence | || under this act is forwarded to a magistrate under sub-section ( | 2 | ) | | or sub-section ( | 2a || of section 167 of the code of criminal procedure, 1973, such magistrate may authorise | | | | | || the detention of such person in such custody as he thinks fit for a period not exceeding | | | | | || fifteen days in the whole where such magistrate is a judicial magistrate and seven | | | | | || days in the whole where such magistrate is an executive magistrate: | | | | | || 15 | | | | | || provided that where such magistrate considers that the detention of such person | | | | | || upon or before the expiry of the period of detention is unnecessary, he shall order such | | | | | || person to be forwarded to the special court having jurisdiction; | | | | | || 2 of 1974 | | | | | || 20 | | | | | || ( | c | ) | | the special court may exercise, in relation to the person forwarded to it under | || clause ( | b | ), the same power which a magistrate having jurisdiction to try a case may | | | || exercise under section 167 of the code of criminal procedure, 1973 in relation to an | | | | | || accused person who has been forwarded to him under that section; and | | | | | || ( | d | ) | | a special court may, upon perusal of the police report of the facts constituting | || an offence under this act or upon a complaint in that behalf, take cognizance of that | | | | | || offence without the accused being committed to it for trial | | | | | || 25 | | | | | || 2 of 1974 | | | | | || ( | 2 | ) | | when trying an offence under this act, a special court may also try an offence | || other than an offence under this act with which the accused may, under the code of criminal | | | | | || procedure, 1973 be charged at the same trial | | | | | || 2 of 1974 | | | | | || ( | 3 | ) | | notwithstanding anything contained in the code of criminal procedure, 1973, the | || special court may, if it thinks fit, try in a summary way any offence under this act which is | | | | | || punishable with imprisonment for a term not exceeding three years: | | | | | || 30 | | | | | || provided that in the case of any conviction in a summary trial, no sentence of | | | | | || imprisonment for a term exceeding one year shall be passed: | | | | | || 35 | | | | | || provided further that when at the commencement of, or in the course of, a summary | | | | | || trial, it appears to the special court that the nature of the case is such that the sentence of | | | | | || imprisonment for a term exceeding one year may have to be passed or that it is, for any other | | | | | || reason, undesirable to try the case summarily, the special court shall, after hearing the | | | | | || parties, record an order to that effect and thereafter recall any witnesses who may have been | | | | | || examined and proceed to hear or rehear the case in accordance with the procedure for the | | | | | || regular trial | | | | | || 40 | | | | | || appeal and | | | | | || revision | | | | | || 2 of 1974 | | | | | || 437 | the high court may exercise, so far as may be applicable, all the powers conferred | | | | || by chapters xxix and xxx of the code of criminal procedure, 1973 on a high court, as if a | | | | | || special court within the local limits of the jurisdiction of the high court were a court of | | | | | || session trying cases within the local limits of the jurisdiction of the high court | | | | | || 45 | | | | | || 2 of 1974 | | | | | || application | | | | | || of code to | | | | | || proceedings | | | | | || before | | | | | || special court | | | | | || 438 | save as otherwise provided in this act, the provisions of the code of criminal | | | | || procedure, 1973 shall apply to the proceedings before a special court and for the purposes | | | | | || of the said provisions, the special court shall be deemed to be a court of session and the | | | | | || person conducting a prosecution before a special court shall be deemed to be a public | | | | | || prosecutor | | | | | |2 of 1974offences to be noncognizable439 (1) notwithstanding anything in the code of criminal procedure, 1973, everyoffence under this act except the offences referred to in sub-section (6) of section 212 shallbe deemed to be non-cognizable within the meaning of the said code5(2) no court shall take cognizance of any offence under this act which is alleged tohave been committed by any company or any officer thereof, except on the complaint in writing of the registrar, a shareholder of the company, or of a person authorised by the central government in that behalf:provided that the court may take cognizance of offences relating to issue and transfer of securities and non-payment of dividend, on a complaint in writing, by a person authorised by the securities and exchange board of india:10provided further that nothing in this sub-section shall apply to a prosecution by acompany of any of its officers2 of 197415(3) notwithstanding anything contained in the code of criminal procedure, 1973, where the complainant under sub-section (1) is the registrar or a person authorised by the central government, the presence of such officer before the court trying the offences shall not be necessary unless the court requires his personal attendance at the trial20(4) the provisions of sub-section (2) shall not apply to any action taken by the liquidator of a company in respect of any offence alleged to have been committed in respect of any of the matters in chapter xx or in any other provision of this act relating to winding up of companiesexplanation—the liquidator of a company shall not be deemed to be an officer of the company within the meaning of sub-section (2)transitional provisions2 of 197425440 any offence committed under this act, which is triable by a special court shall,until a special court is established, be tried by a court of session exercising jurisdiction over the area, notwithstanding anything contained in the code of criminal procedure, 1973:provided that nothing contained in this section shall affect the powers of the high court under section 407 of the code to transfer any case or class of cases taken cognizance by a court of session under this section2 of 197430compounding of certainoffences441 (1) notwithstanding anything contained in the code of criminal procedure, 1973,any offence punishable under this act (whether committed by a company or any officer thereof) with fine only, may, either before or after the institution of any prosecution, be compounded by—(a) the tribunal; or35(b) where the maximum amount of fine which may be imposed for such offence does not exceed five lakh rupees, by the regional director or any officer authorised by the central government, on payment or credit, by the company or, as the case may be, the officer, to the central government of such sum as that tribunal or the regional director or any officer authorised by the central government, as the case may be, may specify:40provided that the sum so specified shall not, in any case, exceed the maximum amount of the fine which may be imposed for the offence so compounded:provided further that in specifying the sum required to be paid or credited for the compounding of an offence under this sub-section, the sum, if any, paid by way of additional fee under sub-section (2) of section 403 shall be taken into account:45provided also that any offence covered under this sub-section by any company or its officer shall not be compounded if the investigation against such company has been initiated or is pending under this act(2) nothing in sub-section (1) shall apply to an offence committed by a company or its officer within a period of three years from the date on which a similar offence committed by it or him was compounded under this sectionexplanation—for the purposes of this section,—5(a) any second or subsequent offence committed after the expiry of a period ofthree years from the date on which the offence was previously compounded, shall be deemed to be a first offence;(b) "regional director" means a person appointed by the central government as a regional director for the purposes of this act10(3) (a) every application for the compounding of an offence shall be made to the registrar who shall forward the same, together with his comments thereon, to the tribunal or the regional director or any officer authorised by the central government, as the case may be15(b) where any offence is compounded under this section, whether before or after the institution of any prosecution, an intimation thereof shall be given by the company to the registrar within seven days from the date on which the offence is so compounded20(c) where any offence is compounded before the institution of any prosecution, no prosecution shall be instituted in relation to such offence, either by the registrar or by any shareholder of the company or by any person authorised by the central government against the offender in relation to whom the offence is so compounded25(d) where the compounding of any offence is made after the institution of any prosecution, such compounding shall be brought by the registrar in writing, to the notice of the court in which the prosecution is pending and on such notice of the compounding of the offence being given, the company or its officer in relation to whom the offence is so compounded shall be discharged30(4) the tribunal or the regional director or any officer authorised by the central government, as the case may be, while dealing with a proposal for the compounding of an offence for a default in compliance with any provision of this act which requires a company or its officer to file or register with, or deliver or send to, the registrar any return, account or other document, may direct, by an order, if it or he thinks fit to do so, any officer or other employee of the company to file or register with, or on payment of the fee, and the additional fee, required to be paid under section 403, such return, account or other document within such time as may be specified in the order35(5) any officer or other employee of the company who fails to comply with any ordermade by the tribunal or the regional director or any officer authorised by the central government under sub-section (4) shall be punishable with imprisonment for a term whichmay extend to six months, or with fine not exceeding one lakh rupees, or with both(6) notwithstanding anything contained in the code of criminal procedure, 1973,—2 of 197440(a) any offence which is punishable under this act, with imprisonment or fine, orwith imprisonment or fine or with both, shall be compoundable with the permission of the special court, in accordance with the procedure laid down in that act for compounding of offences;(b) any offence which is punishable under this act with imprisonment only orwith imprisonment and also with fine shall not be compoundable45(7) no offence specified in this section shall be compounded except under and inaccordance with the provisions of this sectionmediation and conciliation panel5442 (1) the central government shall maintain a panel of experts to be called as the mediation and conciliation panel consisting of such number of experts having such qualifications as may be prescribed for mediation between the parties during the pendency of any proceedings before the central government or the tribunal or the appellate tribunal under this act10(2) any of the parties to the proceedings may, at any time during the proceedings before the central government or the tribunal or the appellate tribunal, apply to the central government or the tribunal or the appellate tribunal, as the case may be, in such form alongwith such fees as may be prescribed, for referring the matter pertaining to such proceedings to the mediation and conciliation panel and the central government or tribunal or the appellate tribunal, as the case may be, shall appoint one or more experts from the panel referred to in sub-section (1)15(3) the central government or the tribunal or the appellate tribunal before which any proceeding is pending may, suo motu, refer any matter pertaining to such proceeding to such number of experts from the mediation and conciliation panel as the central government or the tribunal or the appellate tribunal, as the case may be, deems fit(4) the fee and other terms and conditions of experts of the mediation and conciliation panel shall be such as may be prescribed20(5) the mediation and conciliation panel shall follow such procedure as may be prescribed and dispose of the matter referred to it within a period of three months from the date of such reference and forward its recommendations to the central government or the tribunal or the appellate tribunal, as the case may be25(6) any party not aggreived by the recommendation of the mediation and conciliation panel may file objections to the central government or the tribunal or the appellate tribunal, as the case may be2 of 1974power of central government to appoint company prosecutors30443 notwithstanding anything contained in the code of criminal procedure, 1973, the central government may appoint generally, or for any case, or in any case, or for any specified class of cases in any local area, one or more persons, as company prosecutors for the conduct of prosecutions arising out of this act and the persons so appointed as company prosecutors shall have all the powers and privileges conferred by the code on public prosecutors appointed under section 24 of the code2 of 1974appeal against acquittal35444 notwithstanding anything contained in the code of criminal procedure, 1973, thecentral government may, in any case arising under this act, direct any company prosecutor or authorise any other person either by name or by virtue of his office, to present an appeal from an order of acquittal passed by any court, other than a high court, and an appeal presented by such prosecutor or other person shall be deemed to have been validly presented to the appellate court2 of 1974445 the provisions of section 250 of the code of criminal procedure, 1973 shall applymutatis mutandis to compensation for accusation without reasonable cause before thespecial court or the court of session40compensation for accusation without reasonable cause application of fines446 the court imposing any fine under this act may direct that the whole or any partthereof shall be applied in or towards payment of the costs of the proceedings, or in or towards the payment of a reward to the person on whose information the proceedings were instituted chapter xxix45miscellaneouspunishment for fraud50447 without prejudice to any liability including repayment of any debt under this actor any other law for the time being in force, any person who is found to be guilty of fraud, shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to ten years and shall also be liable to fine which shall not be less than the amount involved in the fraud, but which may extend to three times the amount involved in the fraud:provided that where the fraud in question involves public interest, the term of imprisonment shall not be less than three yearsexplanation—for the purposes of this section—5(i) "fraud" in relation to affairs of a company or any body corporate, includesany act, omission, concealment of any fact or abuse of position committed by any person or any other person with the connivance in any manner, with intent to deceive, to gain undue advantage from, or to injure the interests of, the company or its shareholders or its creditors or any other person, whether or not there is any wrongful gain or wrongful loss;10(ii) "wrongful gain" means the gain by unlawful means of property to which theperson gaining is not legally entitled;(iii) "wrongful loss" means the loss by unlawful means of property to which theperson losing is legally entitled15punishment for false statement448 save as otherwise provided in this act, if in any return, report, certificate, financialstatement, prospectus, statement or other document required by, or for, the purposes of any of the provisions of this act or the rules made thereunder, any person makes a statement,—(a) which is false in any material particulars, knowing it to be false; or (b) which omits any material fact, knowing it to be material,he shall be liable under section 44720449 save as otherwise provided in this act, if any person intentionally gives falseevidence—punishment for false evidence(a) upon any examination on oath or solemn affirmation, authorised under thisact; or25(b) in any affidavit, deposition or solemn affirmation, in or about the winding upof any company under this act, or otherwise in or about any matter arising under this act,he shall be punishable with imprisonment for a term which shall not be less than three years but which may extend to seven years and with fine which may extend to ten lakh rupees30punishment where no specific penalty or punishment is provided35450 if a company or any officer of a company or any other person contravenes any ofthe provisions of this act or the rules made thereunder, or any condition, limitation or restriction subject to which any approval, sanction, consent, confirmation, recognition, direction or exemption in relation to any matter has been accorded, given or granted, and for which no penalty or punishment is provided elsewhere in this act, the company and every officer of the company who is in default or such other person shall be punishable with fine which may extend to ten thousand rupees, and where the contravention is continuing one, with a further fine which may extend to one thousand rupees for every day after the first during which the contravention continues40punishment in case of repeated default451 if a company or an officer of a company commits an offence punishable either with fine or with imprisonment and where the same offence is committed for the second or subsequent occasions within a period of three years, then, that company and every officer thereof who is in default shall be punishable with twice the amount of fine for such offence in addition to any imprisonment provided for that offence452 (1) if any officer or employee of a company—punishment for wrongful withholding of property45(a) wrongfully obtains possession of any property, including cash of thecompany; or(b) having any such property including cash in his possession, wrongfully withholds it or knowingly applies it for the purposes other than those expressed or directed in the articles and authorised by this act, he shall, on the complaint of the company or of any member or creditor or contributory thereof, be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees5(2) the court trying an offence under sub-section (1) may also order such officer or employee to deliver up or refund, within a time to be fixed by it, any such property or cash wrongfully obtained or wrongfully withheld or knowingly misapplied, the benefits that have been derived from such property or cash or in default, to undergo imprisonment for a term which may extend to two years10punishment for improper use of "limited" or "private limited"15453 if any person or persons trade or carry on business under any name or title, of which the word "limited" or the words "private limited" or any contraction or imitation thereof is or are the last word or words, that person or each of those persons shall, unless duly incorporated with limited liability, or unless duly incorporated as a private company with limited liability, as the case may be, punishable with fine which shall not be less than five hundred rupees but may extend to two thousand rupees for every day for which that name or title has been usedadjudication of penalties454 (1) the central government may, by an order published in the official gazette, appoint as many officers of the central government, not below the rank of registrar, as adjudicating officers for adjudging penalty under the provisions of this act in the manner as may be prescribed20(2) the central government shall while appointing adjudicating officers, specify their jurisdiction in the order under sub-section (1)(3) the adjudicating officer may, by an order impose the penalty on the company and the officer who is in default stating any non-compliance or default under the relevant provision of the act25(4) the adjudicating officer shall, before imposing any penalty, give a reasonable opportunity of being heard to such company and the officer who is in default(5) any person aggrieved by an order made by the adjudicating officer under subsection (4) may prefer an appeal to the regional director having jurisdiction in the matter30(6) every appeal under sub-section (5) shall be filed within sixty days from the date on which the copy of the order made by the adjudicating officer is received by the aggrieved person and shall be in such form, manner and be accompanied by such fees as may be prescribed(7) the regional director may, after giving the parties to the appeal an opportunity of being heard, pass such order as he thinks fit, confirming, modifying or setting aside the order appealed against35(8) (i) where company does not pay the penalty imposed by the adjudicating officer or the regional director within a period of ninety days from the date of the receipt of the copy of the order, the company shall be punishable with fine which shall not be less than twentyfive thousand rupees but which may extend to five lakh rupees40(ii) where an officer of a company who is in default does not pay the penalty within a period of ninety days from the date of the receipt of the copy of the order, such officer shall be punishable with imprisonment which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with both45dormant company455 (1) where a company is formed and registered under this act for a future projector to hold an asset or intellectual property and has no significant accounting transaction, such a company or an inactive company may make an application to the registrar in such manner as may be prescribed for obtaining the status of a dormant companyexplanation—for the purposes of this section,—5(i) "inactive company" means a company which has not been carrying on any business or operation, or has not made any significant accounting transaction during the last two financial years, or has not filed financial statements and annual returns during the last two financial years;(ii) "significant accounting transaction" means any transaction other than—(a) payment of fees by a company to the registrar; (b) payments made by it to fulfil the requirements of this act or any other law; (c) allotment of shares to fulfil the requirements of this act; and (d) payments for maintenance of its office and records10(2) the registrar on consideration of the application allow the status of a dormant company to the applicant and issue a certificate in such form as may be prescribed to that effect15(3) the registrar shall maintain a register of dormant companies in such form as may be prescribed(4) in case of a company which has not filed financial statements or annual returns for two financial years consecutively, the registrar shall issue a notice to that company and enter the name of such company in the register maintained for dormant companies20(5) a dormant company shall have such minimum number of directors, file such documents and pay such annual fee as may be prescribed to the registrar to retain its dormant status in the register and may become an active company on an application made in this behalf accompanied by such documents and fee as may be prescribed(6) the registrar shall strike off the name of a dormant company from the register of dormant companies, which has failed to comply with the requirements of this section25protection of action taken in good faith456 no suit, prosecution or other legal proceeding shall lie against the government orany officer of the government or any other person in respect of anything which is in good faith done or intended to be done in pursuance of this act or of any rules or orders made thereunder, or in respect of the publication by or under the authority of the government or such officer, of any report, paper or proceedings30nondisclosure of information in certain cases35457 notwithstanding anything contained in any other law for the time being in force, the registrar, any officer of the government or any other person shall not be compelled to disclose to any court, tribunal or other authority, the source from where he got any information which—(a) has led the central government to order an investigation under section 210;or(b) is or has been material or relevant in connection with such investigation458 (1) the central government may, by notification, and subject to such conditions, limitations and restrictions as may be specified therein, delegate any of its powers or functions under this act other than the power to make rules to such authority or officer as may be specified in the notification:40delegation by central governemnt of its powers and functions45provided that the powers to enforce the provisions contained in section 194 and section 195 relating to forward dealing and insider trading shall be delegated to securities and exchange board for listed companies or the companies which intend to get their securities listed and in such case, any officer authorised by the securities and exchange board shall have the power to file a complaint in the court of competent jurisdiction(2) a copy of every notification issued under sub-section (1) shall, as soon as may be after it is issued, be laid before each house of parliament459 (1) where the central government or the tribunal is required or authorised by any provision of this act—| ( | a | ) | | to accord approval, sanction, consent, confirmation or recognition to, or in ||-----------------------------|-----|-----|-----|--------------------------------------------------------------------------------|| relation to, any matter; or | | | | || ( | b | ) | | to give any direction in relation to any matter; or || 5 | | | | || ( | c | ) | | to grant any exemption in relation to any matter, || powers of | | | | || central | | | | || government | | | | || or tribunal | | | | || to accord | | | | || approval, | | | | || etc, subject | | | | || to conditions | | | | || and to | | | | || prescribe fees | | | | || on | | | | || applications | | | | || 10 | | | | |then, the central government or the tribunal may in the absence of anything to the contrary contained in that provision or any other provision of this act, accord, give or grant such approval, sanction, consent, confirmation, recognition, direction or exemption, subject to such conditions, limitations or restrictions as it may think fit to impose and may, in the case of a contravention of any such condition, limitation or restriction, rescind or withdraw such approval, sanction, consent, confirmation, recognition, direction or exemption15(2) save as otherwise provided in this act, every application which may be, or is required to be, made to the central government or the tribunal under any provision of this act—| ( | a | ) | | in respect of any approval, sanction, consent, confirmation or recognition to ||--------------------------------------------------------------------------------------|-----|-----|-----|---------------------------------------------------------------------------------|| be accorded by that government or the tribunal to, or in relation to, any matter; or | | | | || ( | b | ) | | in respect of any direction or exemption to be given or granted by that || government or the tribunal in relation to any matter; or | | | | || 20 | | | | || ( | c | ) | | in respect of any other matter, |shall be accompanied by such fees as may be prescribed:provided that different fees may be prescribed for applications in respect of different matters or in case of applications by different classes of companies460 notwithstanding anything contained in this act,—25condonation of delay in certain cases(a) where any application required to be made to the central government underany provision of this act in respect of any matter is not made within the time specified therein, that government may, for reasons to be recorded in writing, condone the delay; and30(b) where any document required to be filed with the registrar under any provisionof this act is not filed within the time specified therein, the central government may, for reasons to be recorded in writing, condone the delay461 the central government shall cause a general annual report on the working and administration of this act to be prepared and laid before each house of parliament within one year of the close of the year to which the report relatesannual report by central government35462 (1) the central government may in the public interest, by notification direct that any of the provisions of this act,—(a) shall not apply to such class or classes of companies; or power to exempt class or classes of companies from provisions of this act(b) shall apply to the class or classes of companies with such exceptions, modifications and adaptations as may be specified in the notification40 45(2) a copy of every notification proposed to be issued under sub-section (1), shall be laid in draft 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 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 disapproving the issue of the notification or both houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the housespower of court to grant relief in certain cases5463 (1) if in any proceeding for negligence, default, breach of duty, misfeasance or breach of trust against an officer of a company, it appears to the court hearing the case that he is or may be liable in respect of the negligence, default, breach of duty, misfeasance or breach of trust, but that he has acted honestly and reasonably, and that having regard to all the circumstances of the case, including those connected with his appointment, he ought fairly to be excused, the court may relieve him, either wholly or partly, from his liability on such term, as it may think fit:provided that in a criminal proceeding under this sub-section, the court shall have no power to grant relief from any civil liability which may attach to an officer in respect of such negligence, default, breach of duty, misfeasance or breach of trust10 15(2) where any such officer has reason to apprehend that any proceeding will or might be brought against him in respect of any negligence, default, breach of duty, misfeasance or breach of trust, he may apply to the high court for relief and the high court on such application shall have the same power to relieve him as it would have had if it had been a court before which a proceedings against that officer for negligence, default, breach of duty, misfeasance or breach of trust had been brought under sub-section (1)(3) no court shall grant any relief to any officer under sub-section (1) or sub-section (2)unless it has, by notice served in the manner specified by it, required the registrar and such other person, if any, as it thinks necessary, to show cause why such relief should not be granted20464 (1) no association or partnership consisting of more than such number of personsas may be prescribed shall be formed for the purpose of carrying on any business that has for its object the acquisition of gain by the association or partnership or by the individual members thereof, unless it is registered as a company under this act or is formed under any other law for the time being in force:25prohibition of association or partnership of persons exceeding certain numberprovided that the number of persons which may be prescribed under this sub-section shall not exceed one hundred(2) nothing in sub-section (1) shall apply to—(a) a hindu undivided family carrying on any business; or30(b) an association or partnership, if it is formed by professionals who are governedby special acts(3) every member of an association or partnership carrying on business in contravention of sub-section (1) shall be punishable with fine which may extend to one lakh rupees and shall also be personally liable for all liabilities incurred in such business1 of 195635465 (1) the companies act, 1956 and the registration of companies (sikkim) act,1961 (hereafter in this section referred to as the repealed enactments) shall stand repealed:sikkim act 8 of 1961repeated of certain enactments and savings1 of 1956provided that the provisions of part ix a of the companies act, 1956 shall be applicablemutatis mutandis to a producer company in a manner as if the companies act, 1956 has notbeen repealed until a special act is enacted for producer companies:1 of 195640provided further that until the constitution of the tribunal or the appellate tribunal,the provisions of the companies act, 1956 in regard to the jurisdiction, powers, authority and functions of the board of company law administration and court shall continue to apply as if the companies act, 1956 has not been repealed:1 of 1956 6 of 200945provided also that provisions of the companies act, 1956 referred in the notificationissued under section 67 of the limited liability partnership act, 2008 shall, until the relevant notification under such section applying relevant corresponding provisions of this act to limited liability partnerships is issued, continue to apply as if the companies act, 1956 has not been repealed(2) notwithstanding the repeal under sub-section (1) of the repealed enactments,—5(a) anything done or any action taken or purported to have been done or taken, including any rule, notification, inspection, order or notice made or issued or any appointment or declaration made or any direction given or any proceeding taken or any penalty or fine imposed under the repealed enactments shall, insofar as it is not inconsistent with the provisions of this act, be deemed to have been done or taken under the corresponding provisions of this act;10(b) subject to the provisions of clause (a), any order, rule, notification, regulation, appointment, conveyance, mortgage, deed, document or agreement made, fee directed, resolution passed, direction given, proceeding taken, instrument executed or issued, or thing done under or in pursuance of any repealed enactment shall, if in force at the commencement of this act, continue to be in force, and shall have effect as if made, directed, passed, given, taken, executed, issued or done under or in pursuance of this act;15(c) any person appointed to any office under or by virtue of any repealed enactment shall be deemed to have been appointed to that office under or by virtue of this act;20(d) the offices existing on the commencement of this act for the registration of companies shall continue as if they have been established under the provisions of this act;(e) the incorporation of companies registered under the repealed enactments shall continue to be valid and the provisions of this act shall apply to such companies as if they were registered under this act;25(f) all registers and all funds constituted and established under the repealed enactments shall be deemed to be registers and funds constituted or established under the corresponding provisions of this act;(g) any prosecution instituted under the repealed enactments and pending immediately before the commencement of this act before any court shall, subject to the provisions of this act, continue to be heard and disposed of by the said court;301 of 1956(h) any inspection, investigation or inquiry ordered to be done under the companies act, 1956 shall continue to be proceeded with as if such inspection, investigation or inquiry has been ordered under the corresponding provisions of this act; and351 of 1956(i) any matter filed with the registrar, regional director or the central government under the companies act, 1956 before the commencement of this act and not fully addressed at that time shall be concluded by the registrar, regional director or the central government, as the case may be, in terms of that act, despite its repeal4010 of 1897 sikkim act 8 of 1961(3) the mention of particular matters in sub-section (2) shall not be held to prejudice the general application of section 6 of the general clauses act, 1897 with regard to the effect of repeal of the repealed enactments as if the registration of companies (sikkim) act, 1961 were also a central act1 of 195645466 (1) notwithstanding anything contained in section 465, the board of company law administration constituted under the companies act, 1956 (hereafter in this section referred to as the company law board) shall stand dissolved on the constitution of the tribunal and the appellate tribunal:dissolution of company law board and consequential provisionsprovided that until the tribunal and the appellate tribunal is constituted, the chairman, vice-chairman and members of the company law board immediately before the constitution of the tribunal and the appellate tribunal, who fulfil the qualifications and requirements provided under this act regarding appointment as president or chairperson or member of the tribunal or the appellate tribunal, shall continue to function as president, chairperson or member of the tribunal or the appellate tribunal:provided further that every officer or other employee, who had been appointed on deputation basis to the company law board, shall, on such dissolution,—5(i) become officer or employee of the tribunal or the appellate tribunal, if hefulfils the qualifications and requirements under this act; and(ii) stand reverted to his parent cadre, ministry or department, in any other case:10provided also that every officer and the other employee of the company law board, employed on regular basis by that board, shall become, on and from such dissolution the officer and other employee, respectively, of the tribunal or the appellate tribunal with the same rights and privileges as to pension, gratuity and other like benefits as would have been admissible to him if he had continued to serve that board and shall continue to do so unless and until his employment in the tribunal or the appellate tribunal is duly terminated or until his remuneration, terms and conditions of employment are duly altered by the tribunal or the appellate tribunal, as the case may be:1514 of 194720provided also that notwithstanding anything contained in the industrial disputes act,1947 or in any other law for the time being in force, any officer or other employee who becomes an officer or other employee of the tribunal or the appellate tribunal under the preceding proviso shall not be entitled to any compensation under this act or under any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority:25provided also that where the company law board has etablished a provident fund, superannuation fund, welfare fund or other fund for the benefit of the officers and other employees employed in that board, the monies relatable to the officers and other employees who have become officers or employees of the tribunal or the appellate tribunal shall, out of the monies standing to the credit of such provident fund, superannuation fund, welfare fund or other fund, stand transferred to, and vest in, the tribunal or the appellate tribunal, as the case may be, and such monies which stand so transferred shall be dealt with by the tribunal or the appellate tribunal in such manner as may be prescribed30 35(2) the persons holding the offices of chairman, vice-chairman and members, andofficers and other employees of the company law board immediately before the constitution of the tribunal and the appellate tribunal who are not covered under proviso to sub-section (1) shall vacate their respective offices on such constitution and no such chairman, vice- chairman and members and officers or other employees shall be entitled to claim any compensation for the premature termination of the term of his office or of any contract of service, if any467 (1) subject to the provisions of this section, the central government may, by notification, alter any of the regulations, rules, tables, forms and other provisions contained in any of the schedules to this actpower of central government to amend schedules40(2) any alteration notified under sub-section (1) shall have effect as if enacted in thisact and shall come into force on the date of the notification, unless the notification otherwise directs:provided that no such alteration in table f of schedule i shall apply to any company registered before the date of such alteration45(3) every alteration made by the central government under sub-section (1) shall belaid 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 may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the5session or the successive sessions aforesaid, both houses agree in making any modification in the alteration, or both houses agree that the alteration should not be made, the alteration shall thereafter have effect only in such modified form 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 in pursuance of that alteration5 of 1908468 (1) the central government shall, make rules consistent with the code of civil procedure, 1908 providing for all matters relating to the winding up of companies, which by this act, are to be prescribed, and may make rules providing for all such matters, as may be prescribedpowers of central government to make rules relating to winding up10(2) in particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—(i) as to the mode of proceedings to be held for winding up of a company by thetribunal;15(ii) for the voluntary winding up of companies, whether by members or bycreditors;(iii) for the holding of meetings of creditors and members in connection withproceedings under section 230;(iv) for giving effect to the provisions of this act as to the reduction of thecapital;20(v) generally for all applications to be made to the tribunal under the provisionsof this act;(vi) the holding and conducting of meetings to ascertain the wishes of creditorsand contributories;25(vii) the settling of lists of contributories and the rectifying of the register ofmembers where required, and collecting and applying the assets;(viii) the payment, delivery, conveyance, surrender or transfer of money, property, books or papers to the liquidator;(ix) the making of calls; and (x) the fixing of a time within which debts and claims shall be proved30(3) all rules made by the supreme court on the matters referred to in this section as it stood immediately before the commencement of this act and in force at such commencement, shall continue to be in force, till such time the rules are made by the central government and any reference to the high court in relation to winding up of a company in such rules shall be construed as a reference to the tribunal35469 (1) the central government may, by notification, make rules for carrying out the provisions of this actpower of central government to make rules(2) without prejudice to the generality of the provisions of sub-section (1), the central government may make rules for all or any of the matters which by this act are required to be, or may be, prescribed or in respect of which provision is to be or may be made by rules40(3) any rule made under sub-section (1) may provide that a contravention thereof shall be punishable with fine which may extend to five thousand rupees and where the contravention is a continuing one, with a further fine which may extend to five hundred rupees for every day after the first during which such contravention continues45(4) every rule made under this section and every regulation made by securities and exchange board 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 may be comprised in one session or in two or more successive sessions, and if, before the expiry of5the session immediately following the session or the successive sessions aforesaid, both houses agree in making any modification in the rule or regulation or both houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form 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 or regulationpower to remove difficulties10470 (1) if any difficulty arises in giving effect to the provisions of this act, the central government may, by order published in the official gazette, make such provisions, not inconsistent with the provisions of this act, as appear to it to be necessary or expedient for removing the difficulty:provided that no such order shall be made after the expiry of a period of three years from the date of commencement of section 1 of this act(2) every order made under this section shall, as soon as may be after it is made, be laid before each house of parliament schedule i (see sections 4 and 5) table -a memorandum of association of a company limited by shares1stthe name of the company is ''limited / private limited''2ndthe registered office of the company will be situated in the state of3rd(a) the objects to be pursued by the company on its incorporation are:—(b) matters which are necessary for furtherance of the objects specified in clause 3(a) are:—4ththe liability of the member(s) is limited and this liability is limited to the amount unpaid, if any, on the shares held by them5ththe share capital of the company isrupees, dividedintoshares ofrupees each6thwe, the several persons, whose names and addresses are subscribed, are desirous ofbeing formed into a company in pursuance of this memorandum of association, and we respectively agree to take the number of shares in the capital of the company set against our respective names:—| names, addresses, | no of shares taken | signature of | signature, names, ||---------------------|-----------------------|-------------------|-------------------------|| descriptions and | by each subscriber | subscriber | addresses, descriptions || occupations of | and occupations of | | || subscribers | witnesses | | || ab of merchant | | signed before me: | || signature | | | || cd of merchant | | signed before me: | || signature | | | || ef of merchant | | signed before me: | || signature | | | || gh of merchant | | signed before me: | || signature | | | || ij of merchant | | signed before me: | || signature | | | || kl of merchant | | signed before me: | || signature | | | || mn of merchant | | signed before me: | || signature | | | |total shares taken:7thi, whose name and address is given below, am desirous of forming a company inpursuance of this memorandum of association and agree to take all the shares in the capital of the company (applicable in case of one person company):—| name, address, description | signature of subscriber ||--------------------------------------------------------------------------------------|-----------------------------------------------------|| and occupation of subscriber | description and occupation || of witness | || ab merchant | signed before me: || signature | || 8th | shri/smt , son/daughter of , resident of aged years || shall be the nominee in the event of death of the sole member (applicable in case of | || one person company) | || dated the day of | | memorandum of association of a company limited by guarantee and not having a share capital1stthe name of the company is ''limited/private limited''2ndthe registered office of the company will be situated in the state of3rd(a) the objects to be pursued by the company on its incorporation are:—(b) matters which are necessary for furtherance of the objects specified in clause 3(a)are:—4ththe liability of the member(s) is limited5thevery member of the company undertakes to contribute:| ( | i | ) to the assets of the company in the event of its being wound up while he is a ||-------------------------------------------------------------------------------------|-----|-----------------------------------------------------------------------------------|| member, or within one year after he ceases to be a member, for payment of the debts | | || and liabilities of the company or of such debts and liabilities as may have been | | || contracted before he ceases to be a member; and | | || ( | ii | ) to the costs, charges and expenses of winding up (and for the adjustment of the || rights of the contributories among themselves), | | || such amount as may be required, not exceeding rupees | | |6thwe, the several persons, whose names and addresses are subscribed, are desirous ofbeing formed into a company in pursuance of this memorandum of association| names, addresses, descriptions | signature of | signature, names, addresses, ||----------------------------------|-------------------|--------------------------------|| and occupations of | subscriber | descriptions and occupations || subscribers | of witnesses | || ab of merchant | signed before me: | || signature | | || cd of merchant | signed before me: | || signature | | || ef of merchant | signed before me: | || signature | | || gh of merchant | signed before me: | || signature | | || ij of merchant | signed before me: | || signature | | || kl of merchant | signed before me: | || signature | | || mn of merchant | signed before me: | || signature | | |7thi, whose name and address is given below, am desirous of forming a company inpursuance of this memorandum of association (applicable in case of one person company):—| name, address, description | signature of subscriber ||-------------------------------|----------------------------|| and occupation of subscriber | description and occupation || of witness | || ab merchant | signed before me: || signature | |8thshri/smt, son/daugther of , resident of aged years shallbe the nominee in the event of death of the sole member (applicable in case of one person company)dated the day of memorandum of association of a company limited by guarantee and having a share capital1stthe name of the company is ''limited/private limited''2ndthe registered office of the company will be situated in the state of3rd(a) the objects to be pursued by the company on its incorporation are:—(b) matters which are necessary for furtherance of the objects specified in clause 3(a)are:—4ththe liability of the member(s) is limited5thevery member of the company undertakes to contribute:(i) to the assets of the company in the event of its being wound up while he is a member, or within one year after he ceases to be a member, for payment of the debts and liabilities of the company or of such debts and liabilities as may have been contracted before he ceases to be a member; and (ii) to the costs, charges and expenses of winding up (and for the adjustment of the rights of the contributories among themselves) such amount as may be required, not exceedingrupees6ththe share capital of the company isrupees, dividedintoshares ofrupees each7thwe, the several persons, whose names, addresses are subscribed, are desirous ofbeing formed into a company in pursuance of this memorandum of association and we respectively agree to take the number of shares in the capital of the company set against our respective names:—| names, addresses, | no of shares taken | signature of | signature, names, ||---------------------|-----------------------|-------------------|-------------------------|| descriptions and | by each subscriber | subscriber | addresses, descriptions || occupations of | and occupations of | | || subscribers | witnesses | | || ab of merchant | | signed before me: | || signature | | | || cd of merchant | | signed before me: | || signature | | | || ef of merchant | | signed before me: | || signature | | | || gh of merchant | | signed before me: | || signature | | | || ij of merchant | | signed before me: | || signature | | | || kl of merchant | | signed before me: | || signature | | | || mn of merchant | | signed before me: | || signature | | | |8thi, whose name and address is given below, am desirous of forming a company inpursuance of this memorandum of association and agree to take all the shares in the capital of the company (applicable in case of one person company):—| name, address, description | signature of subscriber ||------------------------------|----------------------------|| and occupation of subscriber | description and occupation || of witness | || ab of merchant | signed before me: || signature | |9thshri/smt, son/daughter of , resident of aged years shallbe the nominee in the event of death of the sole member (applicable in case of one person company)dated the day of memorandum of association of an unlimited company and not having share capital1stthe name of the company is ''company''2ndthe registered office of the company will be situated in the state of3rd(a) the objects to be pursued by the company on its incorporation are:—(b) matters which are necessary for furtherance of the objects specified in clause 3(a)are:—4ththe liability of the member(s) is unlimited5thwe, the several persons, whose names and addresses are subscribed are desirous ofbeing formed into a company in pursuance of this memorandum of association| names, addresses, descriptions signature of subscriber | signature, names, addresses, ||----------------------------------------------------------|--------------------------------|| and occupations of | descriptions and occupations || subscribers | of witnesses || ab of merchant | signed before me: || signature | || cd of merchant | signed before me: || signature | || ef of merchant | signed before me: || signature | || gh of merchant | signed before me: || signature | || ij of merchant | signed before me: || signature | || kl of merchant | signed before me: || signature | || mn of merchant | signed before me: || signature | |6thi, whose name and address is given below, am desirous of forming a company inpursuance of this memorandum of association (applicable in case of one person company):—| name, address, description | signature of subscriber ||------------------------------|----------------------------|| and occupation of | description and occupation || subscriber | of witness || ab merchant | signed before me: || signature | |7thshri/smt, son/daughter of , resident of aged years shallbe the nominee in the event of death of the sole member (applicable in case of one person company)dated the day of memorandum of association of an unlimited company and having share capital1stthe name of the company is ''company''2ndthe registered office of the company will be situated in the state of3rd(a) the objects to be pursued by the company on its incorporation are:—(b) matters which are necessary for furtherance of the objects specified in clause 3(a)are:—4ththe liability of the member(s) is unlimited5ththe share capital of the company isrupees, dividedintoshares ofrupees each6thwe, the several persons, whose names, and addresses are subscribed, are desirous ofbeing formed into a company in pursuance of this memorandum of association and werespectively agree to take the number of shares in the capital of the company set against our respective names:—| names, addresses, | no of shares | signature of | signature, names, addresses, ||---------------------|-----------------|--------------------------|---------------------------------|| descriptions and | taken by each | subscriber | descriptions and || occupations of | subscriber | occupations of witnesses | || subscribers | | | || ab of merchant | | signed before me: | || signature | | | || cd of merchant | | signed before me: | || signature | | | || ef of merchant | | signed before me: | || signature | | | || gh of merchant | | signed before me: | || signature | | | || ij of merchant | | signed before me: | || signature | | | || kl of merchant | | signed before me: | || signature | | | || mn of merchant | | signed before me: | || signature | | | |7thi, whose name and address is given below, am desirous of forming a company inpursuance of this memorandum of association and agree to take all the shares in the capital of the company (applicable in case of one person company):—| name, address, description | signature of subscriber ||------------------------------|----------------------------|| and occupation of | description and occupation || subscriber | of witness || ab merchant | signed before me: || signature | |8thshri/smt, son/daughter of , resident of aged years shallbe the nominee in the event of death of the sole member (applicable in case of oneperson company)dated the day of articles of association of a company limited by shares interpretationi (1) in these regulations—(a) "the act" means the companies act, 2011, (b) "the seal" means the common seal of the company(2) unless the context otherwise requires, words or expressions contained in these regulations shall bear the same meaning as in the act or any statutory modification thereof in force at the date at which these regulations become binding on the company share capital and variation of rightsii 1 subject to the provisions of the act and these articles, the shares in the capital of the company shall be under the control of the directors who may issue, allot or otherwise dispose of the same or any of them to such persons, in such proportion and on such terms and conditions and either at a premium or at par and at such time as they may from time to time think fit2 (i) every person whose name is entered as a member in the register of members shall be entitled to receive within two months after incorporation, in case of subscribers to the memorandum or after allotment or within one month after the application for the registration of transfer or transmission or within such other period as the conditions of issue shall be provided,—(a) one certificate for all his shares without payment of any charges; or (b) several certificates, each for one or more of his shares, upon payment of twenty rupees for each certificate after the first (ii) every certificate shall be under the seal and shall specify the shares to which it relates and the amount paid-up thereon(iii) in respect of any share or shares held jointly by several persons, the company shall not be bound to issue more than one certificate, and delivery of a certificate for a share to one of several joint holders shall be sufficient delivery to all such holders3 (i) if any share certificate be worn out, defaced, mutilated or torn or if there be no further space on the back for endorsement of transfer, then upon production and surrender thereof to the company, a new certificate may be issued in lieu thereof, and if any certificate is lost or destroyed then upon proof thereof to the satisfaction of the company and on execution of such indemnity as the company deem adequate, a new certificate in lieu thereof shall be given every certificate under this article shall be issued on payment of twenty rupees for each certificate(ii) the provisions of articles (2) and (3) shall mutatis mutandis apply to debentures of the company4 except as required by law, no person shall be recognised by the company as holding any share upon any trust, and the company shall not be bound by, or be compelled in any way to recognise (even when having notice thereof) any equitable, contingent, future or partial interest in any share, or any interest in any fractional part of a share, or (except only as by these regulations or by law otherwise provided) any other rights in respect of any share except an absolute right to the entirety thereof in the registered holder5 (i) the company may exercise the powers of paying commissions conferred by sub-section (6) of section 40, provided that the rate per cent or the amount of the commission paid or agreed to be paid shall be disclosed in the manner required by that section and rules made thereunder(ii) the rate or amount of the commission shall not exceed the rate or amount prescribed in rules made under sub-section (6) of section 40(iii) the commission may be satisfied by the payment of cash or the allotment of fully or partly paid shares or partly in the one way and partly in the other6 (i) if at any time the share capital is divided into different classes of shares, the rights attached to any class (unless otherwise provided by the terms of issue of the shares of that class) may, subject to the provisions of section 48, and whether or not the company is being wound up, be varied with the consent in writing of the holders of three-fourths of the issued shares of that class, or with the sanction of a special resolution passed at a separate meeting of the holders of the shares of that class(ii) to every such separate meeting, the provisions of these regulations relating to general meetings shall mutatis mutandis apply, but so that the necessary quorum shall be at least two persons holding at least one-third of the issued shares of the class in question7 the rights conferred upon the holders of the shares of any class issued with preferred or other rights shall not, unless otherwise expressly provided by the terms of issue of the shares of that class, be deemed to be varied by the creation or issue of further shares ranking pari passu therewith8 subject to the provisions of section 55, any preference shares may, with the sanction of an ordinary resolution, be issued on the terms that they are to be redeemed on such terms and in such manner as the company before the issue of the shares may, by special resolution, determine lien9 (i) the company shall have a first and paramount lien—(a) on every share (not being a fully paid share), for all monies (whether presently payable or not) called, or payable at a fixed time, in respect of that share; and(b) on all shares (not being fully paid shares) standing registered in the name of a single person, for all monies presently payable by him or his estate to the company:provided that the board of directors may at any time declare any share to be wholly or in part exempt from the provisions of this clause (ii) the company's lien, if any, on a share shall extend to all dividends payable and bonuses declared from time to time in respect of such shares10 the company may sell, in such manner as the board thinks fit, any shares on which the company has a lien:provided that no sale shall be made—(a) unless a sum in respect of which the lien exists is presently payable; or (b) until the expiration of fourteen days after a notice in writing stating and demanding payment of such part of the amount in respect of which the lien exists as is presently payable, has been given to the registered holder for the time being of the share or the person entitled thereto by reason of his death or insolvency 11 (i) to give effect to any such sale, the board may authorise some person to transfer the shares sold to the purchaser thereof(ii) the purchaser shall be registered as the holder of the shares comprised in any such transfer(iii) the purchaser shall not be bound to see to the application of the purchase money, nor shall his title to the shares be affected by any irregularity or invalidity in the proceedings in reference to the sale12 (i) the proceeds of the sale shall be received by the company and applied in payment of such part of the amount in respect of which the lien exists as is presently payable(ii) the residue, if any, shall, subject to a like lien for sums not presently payable as existed upon the shares before the sale, be paid to the person entitled to the shares at the date of the sale calls on shares13 (i) the board may, from time to time, make calls upon the members in respect of any monies unpaid on their shares (whether on account of the nominal value of the shares or by way of premium) and not by the conditions of allotment thereof made payable at fixed times:provided that no call shall exceed one-fourth of the nominal value of the share or be payable at less than one month from the date fixed for the payment of the last preceding call(ii) each member shall, subject to receiving at least fourteen days' notice specifying the time or times and place of payment, pay to the company, at the time or times and place so specified, the amount called on his shares(iii) a call may be revoked or postponed at the discretion of the board14 a call shall be deemed to have been made at the time when the resolution of the board authorising the call was passed and may be required to be paid by instalments15 the joint holders of a share shall be jointly and severally liable to pay all calls in respect thereof16 (i) if a sum called in respect of a share is not paid before or on the day appointed for payment thereof, the person from whom the sum is due shall pay interest thereon from the day appointed for payment thereof to the time of actual payment at ten per cent per annum or at such lower rate, if any, as the board may determine(ii) the board shall be at liberty to waive payment of any such interest wholly or in part17 (i) any sum which by the terms of issue of a share becomes payable on allotment or at any fixed date, whether on account of the nominal value of the share or by way of premium, shall, for the purposes of these regulations, be deemed to be a call duly made and payable on the date on which by the terms of issue such sum becomes payable(ii) in case of non-payment of such sum, all the relevant provisions of these regulations as to payment of interest and expenses, forfeiture or otherwise shall apply as if such sum had become payable by virtue of a call duly made and notified18 the board—(a) may, if it thinks fit, receive from any member willing to advance the same, all or any part of the monies uncalled and unpaid upon any shares held by him; and(b) upon all or any of the monies so advanced, may (until the same would, but for such advance, become presently payable) pay interest at such rate not exceeding, unless the company in general meeting shall otherwise direct, twelve per cent per annum, as may be agreed upon between the board and the member paying the sum in advance transfer of shares19 (i) the instrument of transfer of any share in the company shall be executed by or on behalf of both the transferor and transferee(ii) the transferor shall be deemed to remain a holder of the share until the name of the transferee is entered in the register of members in respect thereof20 the board may, subject to the right of appeal conferred by section 58 decline to register—(a) the transfer of a share, not being a fully paid share, to a person of whom they do not approve; or(b) any transfer of shares on which the company has a lien21 the board may decline to recognise any instrument of transfer unless— (a) the instrument of transfer is in the form as prescribed in rules made under sub-section (1) of section 56; (b) the instrument of transfer is accompanied by the certificate of the shares to which it relates, and such other evidence as the board may reasonably require to show the right of the transferor to make the transfer; and (c) the instrument of transfer is in respect of only one class of shares22 on giving not less than seven days' previous notice in accordance with section 91and rules made thereunder, the registration of transfers may be suspended at such times and for such periods as the board may from time to time determine:provided that such registration shall not be suspended for more than thirty days at any one time or for more than forty-five days in the aggregate in any year transmission of shares23 (i) on the death of a member, the survivor or survivors where the member was a joint holder, and his nominee or nominees or legal representatives where he was a sole holder, shall be the only persons recognised by the company as having any title to his interest in the shares(ii) nothing in clause (i) shall release the estate of a deceased joint holder from any liability in respect of any share which had been jointly held by him with other persons24 (i) any person becoming entitled to a share in consequence of the death or insolvency of a member may, upon such evidence being produced as may from time to time properly be required by the board and subject as hereinafter provided, elect, either—(a) to be registered himself as holder of the share; or (b) to make such transfer of the share as the deceased or insolvent member could have made (ii) the board shall, in either case, have the same right to decline or suspend registration as it would have had, if the deceased or insolvent member had transferred the share before his death or insolvency25 (i) if the person so becoming entitled shall elect to be registered as holder of the share himself, he shall deliver or send to the company a notice in writing signed by him stating that he so elects(ii) if the person aforesaid shall elect to transfer the share, he shall testify his election by executing a transfer of the share(iii) all the limitations, restrictions and provisions of these regulations relating to the right to transfer and the registration of transfers of shares shall be applicable to any such notice or transfer as aforesaid as if the death or insolvency of the member had not occurred and the notice or transfer were a transfer signed by that member26 a person becoming entitled to a share by reason of the death or insolvency of the holder shall be entitled to the same dividends and other advantages to which he would be entitled if he were the registered holder of the share, except that he shall not, before being registered as a member in respect of the share, be entitled in respect of it to exercise any right conferred by membership in relation to meetings of the company:provided that the board may, at any time, give notice requiring any such person to elect either to be registered himself or to transfer the share, and if the notice is not complied with within ninety days, the board may thereafter withhold payment of all dividends, bonuses or other monies payable in respect of the share, until the requirements of the notice have been complied with 27 in case of a one person company—(i) on the death of the sole member, the person nominated by such member shall be the person recognised by the company as having title to all the shares of the member;(ii) the nominee on becoming entitled to such shares in case of the member's death shall be informed of such event by the board of the company;(iii) such nominee shall be entitled to the same dividends and other rights and liabilities to which such sole member of the company was entitled or liable;(iv) on becoming member, such nominee shall nominate any other person with the prior written consent of such person who, shall in the event of the death of the member, become the member of the company forfeiture of shares28 if a member fails to pay any call, or instalment of a call, on the day appointed for payment thereof, the board may, at any time thereafter during such time as any part of the call or instalment remains unpaid, serve a notice on him requiring payment of so much of the call or instalment as is unpaid, together with any interest which may have accrued29 the notice aforesaid shall—(a) name a further day (not being earlier than the expiry of fourteen days from the date of service of the notice) on or before which the payment required by the notice is to be made; and(b) state that, in the event of non-payment on or before the day so named, the shares in respect of which the call was made shall be liable to be forfeited 30 if the requirements of any such notice as aforesaid are not complied with, any share in respect of which the notice has been given may, at any time thereafter, before the payment required by the notice has been made, be forfeited by a resolution of the board to that effect31 (i) a forfeited share may be sold or otherwise disposed of on such terms and in such manner as the board thinks fit(ii) at any time before a sale or disposal as aforesaid, the board may cancel the forfeiture on such terms as it thinks fit32 (i) a person whose shares have been forfeited shall cease to be a member in respect of the forfeited shares, but shall, notwithstanding the forfeiture, remain liable to pay to the company all monies which, at the date of forfeiture, were presently payable by him to the company in respect of the shares(ii) the liability of such person shall cease if and when the company shall have received payment in full of all such monies in respect of the shares33 (i) a duly verified declaration in writing that the declarant is a director, the manager or the secretary, of the company, and that a share in the company has been duly forfeited on a date stated in the declaration, shall be conclusive evidence of the facts therein stated as against all persons claiming to be entitled to the share(ii) the company may receive the consideration, if any, given for the share on any sale or disposal thereof and may execute a transfer of the share in favour of the person to whom the share is sold or disposed of;(iii) the transferee shall thereupon be registered as the holder of the share; and (iv) the transferee shall not be bound to see to the application of the purchase money, if any, nor shall his title to the share be affected by any irregularity or invalidity in the proceedings in reference to the forfeiture, sale or disposal of the share34 the provisions of these regulations as to forfeiture shall apply in the case of nonpayment of any sum which, by the terms of issue of a share, becomes payable at a fixed time, whether on account of the nominal value of the share or by way of premium, as if the same had been payable by virtue of a call duly made and notified alteration of capital35 the company may, from time to time, by ordinary resolution increase the share capital by such sum, to be divided into shares of such amount, as may be specified in the resolution36 subject to the provisions of section 61, the company may, by ordinary resolution,—(a) consolidate and divide all or any of its share capital into shares of larger amount than its existing shares;(b) convert all or any of its fully paid-up shares into stock, and reconvert that stock into fully paid up shares of any denomination;(c) sub-divide its existing shares or any of them into shares of smaller amount than is fixed by the memorandum;(d) cancel any shares which, at the date of the passing of the resolution, have not been taken or agreed to be taken by any person 37 where shares are converted into stock,—(a) the holders of stock may transfer the same or any part thereof in the same manner as, and subject to the same regulations under which, the shares from which the stock arose might before the conversion have been transferred, or as near thereto as circumstances admit:provided that the board may, from time to time, fix the minimum amount of stock transferable, so, however, that such minimum shall not exceed the nominal amount of the shares from which the stock arose(b) the holders of stock shall, according to the amount of stock held by them, have the same rights, privileges and advantages as regards dividends, voting at meetings of the company, and other matters, as if they held the shares from which the stock arose; but no such privilege or advantage (except participation in the dividends and profits of the company and in the assets on winding up) shall be conferred by an amount of stock which would not, if existing in shares, have conferred that privilege or advantage(c) such of the regulations of the company as are applicable to paid-up shares shall apply to stock and the words "share" and "shareholder" in those regulations shall include "stock" and "stock-holder" respectively 38 the company may, by special resolution, reduce in any manner and with, and subject to, any incident authorised and consent required by law,—(a) its share capital; (b) any capital redemption reserve account; or (c) any share premium account capitalisation of profits39 (i) the company in general meeting may, upon the recommendation of the board, resolve—(a) that it is desirable to capitalise any part of the amount for the time being standing to the credit of any of the company's reserve accounts, or to the credit of the profit and loss account, or otherwise available for distribution; and(b) that such sum be accordingly set free for distribution in the manner specified in clause (ii) amongst the members who would have been entitled thereto, if distributed by way of dividend and in the same proportions (ii) the sum aforesaid shall not be paid in cash but shall be applied, subject to the provision contained in clause (iii), either in or towards—(a) paying up any amounts for the time being unpaid on any shares held by such members respectively;(b) paying up in full, unissued shares of the company to be allotted and distributed, credited as fully paid-up, to and amongst such members in the proportions aforesaid; or(c) partly in the way specified in sub-clause (a) and partly in that specified in sub-clause (b)(d) a securities premium account and a capital redemption reserve account may, for the purposes of this regulation, be applied in the paying up of unissued shares to be issued to members of the company as fully paid bonus shares(e) the board shall give effect to the resolution passed by the company in pursuance of this regulation 40 (i) whenever such a resolution as aforesaid shall have been passed, the board shall—(a) make all appropriations and applications of the undivided profits resolved to be capitalised thereby, and all allotments and issues of fully paid shares if any; and(b) generally do all acts and things required to give effect thereto(ii) the board shall have power—(a) to make such provisions, by the issue of fractional certificates or by payment in cash or otherwise as it thinks fit, for the case of shares becoming distributable in fractions; and(b) to authorise any person to enter, on behalf of all the members entitled thereto, into an agreement with the company providing for the allotment to them respectively, credited as fully paid-up, of any further shares to which they may be entitled upon such capitalisation, or as the case may require, for the payment by the company on their behalf, by the application thereto of their respective proportions of profits resolved to be capitalised, of the amount or any part of the amounts remaining unpaid on their existing shares; (iii) any agreement made under such authority shall be effective and binding on such members buy-back of shares41 notwithstanding anything contained in these articles but subject to the provisions of sections 68 to 70 and any other applicable provision of the act or any other law for the time being in force, the company may purchase its own shares or other specified securities general meetings42 all general meetings other than annual general meeting shall be called extraordinary general meeting43 (i) the board may, whenever it thinks fit, call an extraordinary general meeting (ii) if at any time directors capable of acting who are sufficient in number to form a quorum are not within india, any director or any two members of the company may call an extraordinary general meeting in the same manner, as nearly as possible, as that in which such a meeting may be called by the board proceedings at general meetings44 (i) no business shall be transacted at any general meeting unless a quorum of members is present at the time when the meeting proceeds to business(ii) save as otherwise provided herein, the quorum for the general meetings shall be as provided in section 10345 the chairperson, if any, of the board shall preside as chairperson at every general meeting of the company46 if there is no such chairperson, or if he is not present within fifteen minutes after the time appointed for holding the meeting, or is unwilling to act as chairperson of the meeting, the directors present shall elect one of their members to be chairperson of the meeting47 if at any meeting no director is willing to act as chairperson or if no director is present within fifteen minutes after the time appointed for holding the meeting, the members present shall choose one of their members to be chairperson of the meeting48 in case of a one person company—(i) the resolution required to be passed at the general meetings of the company shall be deemed to have been passed if the resolution is agreed upon by the sole member and communicated to the company and entered in the minutes book maintained under section 118(ii) such minutes book shall be signed and dated by the member (iii) the resolution shall become effective from the date of signing such minutes by the sole member adjournment of meeting49 (i) the chairperson may, with the consent of any meeting at which a quorum is present, and shall, if so directed by the meeting, adjourn the meeting from time to time and from place to place(ii) no business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place(iii) when a meeting is adjourned for thirty days or more, notice of the adjourned meeting shall be given as in the case of an original meeting(iv) save as aforesaid, and as provided in section 103 of the act, it shall not be necessary to give any notice of an adjournment or of the business to be transacted at an adjourned meeting voting rights50 subject to any rights or restrictions for the time being attached to any class or classes of shares,—(a) on a show of hands, every member present in person shall have one vote;and(b) on a poll, the voting rights of members shall be in proportion to his share in the paid-up equity share capital of the company 51 a member may exercise his vote at a meeting by electronic means in accordance with section 108 and shall vote only once52 (i) in the case of joint holders, the vote of the senior who tenders a vote, whether in person or by proxy, shall be accepted to the exclusion of the votes of the other joint holders(ii) for this purpose, seniority shall be determined by the order in which the names stand in the register of members53 a member of unsound mind, or in respect of whom an order has been made by any court having jurisdiction in lunacy, may vote, whether on a show of hands or on a poll, by his committee or other legal guardian, and any such committee or guardian may, on a poll, vote by proxy54 any business other than that upon which a poll has been demanded may be proceeded with, pending the taking of the poll55 no member shall be entitled to vote at any general meeting unless all calls or other sums presently payable by him in respect of shares in the company have been paid56 (i) no objection shall be raised to the qualification of any voter except at the meeting or adjourned meeting at which the vote objected to is given or tendered, and every vote not disallowed at such meeting shall be valid for all purposes(ii) any such objection made in due time shall be referred to the chairperson of the meeting, whose decision shall be final and conclusive proxy57 the instrument appointing a proxy and the power-of-attorney or other authority, if any, under which it is signed or a notarised copy of that power or authority, shall be deposited at the registered office of the company not less than 48 hours before the time for holding the meeting or adjourned meeting at which the person named in the instrument proposes to vote, or, in the case of a poll, not less than 24 hours before the time appointed for the taking of the poll; and in default the instrument of proxy shall not be treated as valid58 an instrument appointing a proxy shall be in the form as prescribed in the rules made under section 10559 a vote given in accordance with the terms of an instrument of proxy shall be valid, notwithstanding the previous death or insanity of the principal or the revocation of the proxy or of the authority under which the proxy was executed, or the transfer of the shares in respect of which the proxy is given:provided that no intimation in writing of such death, insanity, revocation or transfer shall have been received by the company at its office before the commencement of the meeting or adjourned meeting at which the proxy is used board of directors60 the number of the directors and the names of the first directors shall be determined in writing by the subscribers of the memorandum or a majority of them61 (i) the remuneration of the directors shall, in so far as it consists of a monthly payment, be deemed to accrue from day-to-day(ii) in addition to the remuneration payable to them in pursuance of the act, the directors may be paid all travelling, hotel and other expenses properly incurred by them—(a) in attending and returning from meetings of the board of directors or any committee thereof or general meetings of the company; or(b) in connection with the business of the company62 the board may pay all expenses incurred in getting up and registering the company 63 the company may exercise the powers conferred on it by section 88 with regard to the keeping of a foreign register; and the board may (subject to the provisions of that section) make and vary such regulations as it may thinks fit respecting the keeping of any such register64 all cheques, promissory notes, drafts, hundis, bills of exchange and other negotiable instruments, and all receipts for monies paid to the company, shall be signed, drawn, accepted, endorsed, or otherwise executed, as the case may be, by such person and in such manner as the board shall from time to time by resolution determine65 every director present at any meeting of the board or of a committee thereof shall sign his name in a book to be kept for that purpose66 (i) subject to the provisions of section 149, the board shall have power at any time, and from time to time, to appoint a person as an additional director, provided the number of the directors and additional directors together shall not at any time exceed the maximum strength fixed for the board by the articles(ii) such person shall hold office only up to the date of the next annual general meeting of the company but shall be eligible for appointment by the company as a director at that meeting subject to the provisions of the act proceedings of the board67 (i) the board of directors may meet for the conduct of business, adjourn and otherwise regulate its meetings, as it thinks fit(ii) a director may, and the manager or secretary on the requisition of a director shall, at any time, summon a meeting of the board68 (i) save as otherwise expressly provided in the act, questions arising at any meeting of the board shall be decided by a majority of votes(ii) in case of an equality of votes, the chairperson of the board, if any, shall have a second or casting vote69 the continuing directors may act notwithstanding any vacancy in the board; but, if and so long as their number is reduced below the quorum fixed by the act for a meeting of the board, the continuing directors or director may act for the purpose of increasing the number of directors to that fixed for the quorum, or of summoning a general meeting of the company, but for no other purpose70 (i) the board may elect a chairperson of its meetings and determine the period for which he is to hold office(ii) if no such chairperson is elected, or if at any meeting the chairperson is not present within five minutes after the time appointed for holding the meeting, the directors present may choose one of their number to be chairperson of the meeting71 (i) the board may, subject to the provisions of the act, delegate any of its powers to committees consisting of such member or members of its body as it thinks fit(ii) any committee so formed shall, in the exercise of the powers so delegated, conform to any regulations that may be imposed on it by the board72 (i) a committee may elect a chairperson of its meetings (ii) if no such chairperson is elected, or if at any meeting the chairperson is not present within five minutes after the time appointed for holding the meeting, the members present may choose one of their members to be chairperson of the meeting73 (i) a committee may meet and adjourn as it thinks fit (ii) questions arising at any meeting of a committee shall be determined by a majority of votes of the members present, and in case of an equality of votes, the chairperson shall have a second or casting vote74 all acts done in any meeting of the board or of a committee thereof or by any person acting as a director, shall, notwithstanding that it may be afterwards discovered that there was some defect in the appointment of any one or more of such directors or of any person acting as aforesaid, or that they or any of them were disqualified, be as valid as if every such director or such person had been duly appointed and was qualified to be a director75 save as otherwise expressly provided in the act, a resolution in writing, signed by all the members of the board or of a committee thereof, for the time being entitled to receive notice of a meeting of the board or committee, shall be valid and effective as if it had been passed at a meeting of the board or committee, duly convened and held76 in case of a one person company— (i) where the company is having only one director, all the businesses to be transacted at the meeting of the board shall be entered into minutes book maintained under section 118;(ii) such minutes book shall be signed and dated by the director; (iii) the resolution shall become effective from the date of signing such minutes by the director chief executive officer, manager, company secretary or chief financial officer77 subject to the provisions of the act,—(i) a chief executive officer, manager, company secretary or chief financial officer may be appointed by the board for such term, at such remuneration and upon such conditions as it may thinks fit; and any chief executive officer, manager, company secretary or chief financial officer so appointed may be removed by means of a resolution of the board;(ii) a director may be appointed as chief executive officer, manager, company secretary or chief financial officer 78 a provision of the act or these regulations requiring or authorising a thing to be done by or to a director and chief executive officer, manager, company secretary or chief financial officer shall not be satisfied by its being done by or to the same person acting both as director and as, or in place of, chief executive officer, manager, company secretary or chief financial officer the seal79 (i) the board shall provide for the safe custody of the seal(ii) the seal of the company shall not be affixed to any instrument except by the authority of a resolution of the board or of a committee of the board authorised by it in that behalf, and except in the presence of at least two directors and of the secretary or such other person as the board may appoint for the purpose; and those two directors and the secretary or other person aforesaid shall sign every instrument to which the seal of the company is so affixed in their presence dividends and reserve80 the company in general meeting may declare dividends, but no dividend shall exceed the amount recommended by the board81 subject to the provisions of section 123, the board may from time to time pay to the members such interim dividends as appear to it to be justified by the profits of the company82 (i) the board may, before recommending any dividend, set aside out of the profits of the company such sums as it thinks fit as a reserve or reserves which shall, at the discretion of the board, be applicable for any purpose to which the profits of the company may be properly applied, including provision for meeting contingencies or for equalising dividends; and pending such application, may, at the like discretion, either be employed in the business of the company or be invested in such investments (other than shares of the company) as the board may, from time to time, thinks fit(ii) the board may also carry forward any profits which it may consider necessary not to divide, without setting them aside as a reserve83 (i) subject to the rights of persons, if any, entitled to shares with special rights as to dividends, all dividends shall be declared and paid according to the amounts paid or credited as paid on the shares in respect whereof the dividend is paid, but if and so long as nothing is paid upon any of the shares in the company, dividends may be declared and paid according to the amounts of the shares(ii) no amount paid or credited as paid on a share in advance of calls shall be treated for the purposes of this regulation as paid on the share(iii) all dividends shall be apportioned and paid proportionately to the amounts paid or credited as paid on the shares during any portion or portions of the period in respect of which the dividend is paid; but if any share is issued on terms providing that it shall rank for dividend as from a particular date such share shall rank for dividend accordingly84 the board may deduct from any dividend payable to any member all sums of money, if any, presently payable by him to the company on account of calls or otherwise in relation to the shares of the company85 (i) any dividend, interest or other monies payable in cash in respect of shares may be paid by cheque or warrant sent through the post directed to the registered address of the holder or, in the case of joint holders, to the registered address of that one of the joint holders who is first named on the register of members, or to such person and to such address as the holder or joint holders may in writing direct(ii) every such cheque or warrant shall be made payable to the order of the person to whom it is sent86 any one of two or more joint holders of a share may give effective receipts for any dividends, bonuses or other monies payable in respect of such share87 notice of any dividend that may have been declared shall be given to the persons entitled to share therein in the manner mentioned in the act88 no dividend shall bear interest against the company accounts89 (i) the board shall from time to time determine whether and to what extent and at what times and places and under what conditions or regulations, the accounts and books of the company, or any of them, shall be open to the inspection of members not being directors(ii) no member (not being a director) shall have any right of inspecting any account or book or document of the company except as conferred by law or authorised by the board or by the company in general meeting winding up90 subject to the provisions of chapter xx of the act and rules made thereunder—(i) if the company shall be wound up, the liquidator may, with the sanction of a special resolution of the company and any other sanction required by the act, divide amongst the members, in specie or kind, the whole or any part of the assets of the company, whether they shall consist of property of the same kind or not(ii) for the purpose aforesaid, the liquidator may set such value as he deems fair upon any property to be divided as aforesaid and may determine how such division shall be carried out as between the members or different classes of members(iii) the liquidator may, with the like sanction, vest the whole or any part of such assets in trustees upon such trusts for the benefit of the contributories if he considers necessary, but so that no member shall be compelled to accept any shares or other securities whereon there is any liability indemnity91 every officer of the company shall be indemnified out of the assets of the company against any liability incurred by him in defending any proceedings, whether civil or criminal, in which judgement is given in his favour or in which he is acquitted or in which relief is granted to him by the court or the tribunal note: the articles shall be signed by each subscriber of the memorandum of association who shall add his address, description and occupation, if any, in the presence of at least one witness who shall attest the signature and shall likewise add his address, description and occupation, if any, and such signatures shall be in form specified below:| names, addresses, descriptions | witnesses (along with names, addresses, ||----------------------------------|-------------------------------------------|| and occupations of subscribers | descriptions and occupations) || ab of…………merchant | signed before me || signature…………… | || cd of…………merchant | signed before me || signature…………… | || ef of…………merchant | signed before me || signature…………… | || gh of…………merchant | signed before me || signature…………… | || ij of…………merchant | signed before me || signature…………… | || kl of…………merchant | signed before me || signature…………… | || mn of…………merchant | signed before me || signature…………… | |dated the……day of ………20…… place: table - g articles of association of a company limited by guarantee and having a share capital1 the number of members with which the company proposes to be registered is hundred, but the board of directors may, from time to time, register an increase of members2 all the articles of table f in schedule i annexed to the companies act, 2011 shall be deemed to be incorporated with these articles and to apply to the company table - h articles of association of a company limited by guarantee and not having share capital interpretationi (1) in these regulations—(a) "the act" means the companies act, 2011; (b) "the seal" means the common seal of the company(2) unless the context otherwise requires, words or expressions contained in these regulations shall have the same meaning as in the act or any statutory modification thereof in force at the date at which these regulations become binding on the company membersii 1 the number of members with which the company proposes to be registered is hundred, but the board of directors may, from time to time, whenever the company or the business of the company requires it, register an increase of members2 the subscribers to the memorandum and such other persons as the board shall admit to membership shall be members of the company general meetings3 all general meetings other than annual general meeting shall be called extraordinary general meeting4 (i) the board may, whenever it thinks fit, call an extraordinary general meeting (ii) if at any time directors capable of acting who are sufficient in number to form a quorum are not within india, any director or any two members of the company may call an extraordinary general meeting in the same manner, as nearly as possible, as that in which such a meeting may be called by the board proceedings at general meetings5 (i) no business shall be transacted at any general meeting unless a quorum of members is present at the time when the meeting proceeds to business(ii) save as otherwise provided herein, the quorum for the general meetings shall be as provided in section 1036 the chairperson, if any, of the board shall preside as chairperson at every general meeting of the company7 if there is no such chairperson, or if he is not present within fifteen minutes after the time appointed for holding the meeting, or is unwilling to act as chairperson of the meeting, the directors present shall elect one of their members to be chairperson of the meeting8 if at any meeting no director is willing to act as chairperson or if no director is present within fifteen minutes after the time appointed for holding the meeting, the members present shall choose one of their members to be chairperson of the meeting adjournment of meeting9 (i) the chairperson may, with the consent of any meeting at which a quorum is present, and shall, if so directed by the meeting, adjourn the meeting from time to time and from place to place(ii) no business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place(iii) when a meeting is adjourned for thirty days or more, notice of the adjourned meeting shall be given as in the case of an original meeting(iv) save as aforesaid, and as provided in section 103 of the act, it shall not be necessary to give any notice of an adjournment or of the business to be transacted at an adjourned meeting voting rights10 every member shall have one vote 11 a member of unsound mind, or in respect of whom an order has been made by any court having jurisdiction in lunacy, may vote, whether on a show of hands or on a poll, by his committee or other legal guardian, and any such committee or guardian may, on a poll, vote by proxy12 no member shall be entitled to vote at any general meeting unless all sums presently payable by him to the company have been paid13 (i) no objection shall be raised to the qualification of any voter except at the meeting or adjourned meeting at which the vote objected to is given or tendered, and every vote not disallowed at such meeting shall be valid for all purposes(ii) any such objection made in due time shall be referred to the chairperson of the meeting, whose decision shall be final and conclusive14 a vote given in accordance with the terms of an instrument of proxy shall be valid, notwithstanding the previous death or insanity of the principal or the revocation of the proxy or of the authority under which the proxy was executed, or the transfer of the shares in respect of which the proxy is given:provided that no intimation in writing of such death, insanity, revocation or transfer shall have been received by the company at its office before the commencement of the meeting or adjourned meeting at which the proxy is used15 a member may exercise his vote at a meeting by electronic means in accordance with section 108 and shall vote only once16 any business other than that upon which a poll has been demanded may be proceeded with, pending the taking of the poll board of directors17 the number of the directors and the names of the first directors shall be determined in writing by the subscribers of the memorandum or a majority of them18 (i) the remuneration of the directors shall, in so far as it consists of a monthly payment, be deemed to accrue from day-to-day(ii) in addition to the remuneration payable to them in pursuance of the act, the directors may be paid all travelling, hotel and other expenses properly incurred by them—(a) in attending and returning from meetings of the board of directors or any committee thereof or general meetings of the company; or(b) in connection with the business of the company proceedings of the board19 (i) the board of directors may meet for the conduct of business, adjourn and otherwise regulate its meetings, as it thinks fit(ii) a director may, and the manager or secretary on the requisition of a director shall, at any time, summon a meeting of the board20 (i) save as otherwise expressly provided in the act, questions arising at any meeting of the board shall be decided by a majority of votes(ii) in case of an equality of votes, the chairperson of the board, if any, shall have a second or casting vote21 the continuing directors may act notwithstanding any vacancy in the board; but, if and so long as their number is reduced below the quorum fixed by the act for a meeting of the board, the continuing directors or director may act for the purpose of increasing the number of directors to that fixed for the quorum, or of summoning a general meeting of the company, but for no other purpose22 (i) the board may elect a chairperson of its meetings and determine the period for which he is to hold office(ii) if no such chairperson is elected, or if at any meeting the chairperson is not present within five minutes after the time appointed for holding the meeting, the directors present may choose one of their members to be chairperson of the meeting23 (i) the board may, subject to the provisions of the act, delegate any of its powers to committees consisting of such member or members of its body as it thinks fit(ii) any committee so formed shall, in the exercise of the powers so delegated, conform to any regulations that may be imposed on it by the board24 (i) a committee may elect a chairperson of its meetings (ii) if no such chairperson is elected, or if at any meeting the chairperson is not present within five minutes after the time appointed for holding the meeting, the members present may choose one of their members to be chairperson of the meeting25 (i) a committee may meet and adjourn as it thinks proper (ii) questions arising at any meeting of a committee shall be determined by a majority of votes of the members present, and in case of an equality of votes, the chairman shall have a second or casting vote26 all acts done by any meeting of the board or of a committee thereof or by any person acting as a director, shall, notwithstanding that it may be afterwards discovered that there was some defect in the appointment of any one or more of such directors or of any person acting as aforesaid, or that they or any of them were disqualified, be as valid as if every such director or such person had been duly appointed and was qualified to be a director27 save as otherwise expressly provided in the act, a resolution in writing, signed by all the members of the board or of a committee thereof, for the time being entitled to receive notice of a meeting of the board or committee, shall be as valid and effective as if it had been passed at a meeting of the board or committee, duly convened and held chief executive officer, manager, company secretary or chief financial officer28 subject to the provisions of the act,—(i) a chief executive officer, manager, company secretary or chief financial officer may be appointed by the board for such term, at such remuneration and upon such conditions as it thinks fit; and any chief executive officer, manager, company secretary or chief financial officer so appointed may be removed by means of a resolution of the board(ii) a director may be appointed as chief executive officer, manager, company secretary or chief financial officer 29 a provision of the act or these regulations requiring or authorising a thing to be done by or to a director and chief executive officer, manager, company secretary or chief financial officer shall not be satisfied by its being done by or to the same person acting both as director and as, or in place of, chief executive officer, manager, company secretary or chief financial officer the seal30 (i) the board shall provide for the safe custody of the seal(ii) the seal of the company shall not be affixed to any instrument except by the authority of a resolution of the board or of a committee of the board authorised by it in that behalf, and except in the presence of at least two directors and of the secretary or such other person as the board may appoint for the purpose; and those two directors and the secretary or other person aforesaid shall sign every instrument to which the seal of the company is so affixed in their presence note: the articles shall be signed by each subscriber of the memorandum of association who shall add his address, description and occupation, if any, in the presence of at least one witness who shall attest the signature and shall likewise add his address, description and occupation, if any, and such signatures shall be in form specified below:| names, addresses, descriptions | witnesses (along with names, addresses, ||----------------------------------|-------------------------------------------|| and occupations of subscribers | descriptions and occupations) || ab of…………merchant | signed before me || signature…………… | || cd of…………merchant | signed before me || signature…………… | || ef of…………merchant | signed before me || signature…………… | || gh of…………merchant | signed before me || signature…………… | || ij of…………merchant | signed before me || signature…………… | || kl of…………merchant | signed before me || signature…………… | || mn of…………merchant | signed before me || signature…………… | |dated the……day of ………20…… place: table - i articles of association of an unlimited company and having a share capital1 the number of members with which the company proposes to be registered is hundred, but the board of directors may, from time to time, register an increase of members2 all the articles of table f in schedule i annexed to the companies act, 2011 shall be deemed to be incorporated with these articles and to apply to the company table - j articles of association of an unlimited company and not having share capital1 the number of members with which the company proposes to be registered is hundred, but the board of directors may, from time to time, whenever the company or the business of the company requires it, register an increase of members2 the subscribers to the memorandum and such other persons as the board shall admit to membership shall be members of the company3 all the articles of table h in schedule i annexed to the companies act, 2011 shall be deemed to be incorporated with these articles and to apply to the company schedule ii (see section 123) useful lives to compute depreciation part 'a'1 depreciation is the systematic allocation of the depreciable amount of an asset over its useful life the depreciable amount of an asset is the cost of an asset or other amount substituted for cost, less its residual value the useful life of an asset is the period over which an asset is expected to be available for use by an entity, or the number of production or similar units expected to be obtained from the asset by the entity2 for the purpose of this schedule, the term depreciation includes amortisation3 without prejudice to the, foregoing provisions of paragraph 1,—(i) in case of such class of companies, as may be prescribed and whose financial statements comply with the accounting standards prescribed for such class of companies under section 133 the useful life of an asset shall not normally be different from the useful life and the residual value shall not be different from that as indicated in part c, provided that if such a company uses a useful life or residual value which is different from the useful life or residual value indicated therein, it shall disclose the justification for the same(ii) in respect of other companies the useful life of an asset shall not be longer than the useful life and the residual value shall not be higher than that prescribed in part c(iii) for intangible assets, the provisions of the accounting standards mentioned under sub-para (i) or (ii), as applicable, shall apply part 'b'4 the useful life or residual value of any specific asset, as notified for accounting purposes by a regulatory authority constituted under an act of parliament or by the central government shall be applied in calculating the depreciation to be provided for such asset irrespective of the requirements of this schedule part 'c'5 subject to parts a and b above, the following are the useful lives of various tangible assets:| nature of assets | useful life ||---------------------------------------------|------------------|| i | buildings [nesd] || ( | a || ( | b || ( | c || ( | d || ( | e || ii bridges, culverts, bunders, etc [nesd] | 30 years || iii roads [nesd] | || ( | a || ( | i || ( | ii || ( | b | ) non-carpeted roads | 3 years ||--------------------------------------------------------------|-----------------------------------------------------------------------|---------------------------------------------------------------|------------------------------------------------------------------|| iv plant and machinery | | | || ( | i | ) | general rate applicable to plant and machinery not covered under || special plant and machinery | | | || ( | a | ) plant and machinery other than continuous process plant not | || covered under specific industries | 15 years | | || ( | b | ) continuous process plant for which no special rate has been | || prescribed under ( | ii | ) below [nesd] | 8 years || ( | ii | ) | special plant and machinery || ( | a | ) plant and machinery related to production and exhibition of | || motion picture films | | | || 1 | cinematograph films—machinery used in the production and | | || exhibition of cinematograph films, recording and reproducing | | | || equipments, developing machines, printing machines, editing | | | || machines, synchronizers and studio lights except bulbs | 13 years | | || 2 | projecting equipment for exhibition of films | -do- | || ( | b | ) plant and machinery used in glass manufacturing | || 1 | plant and machinery except direct fire glass melting furnaces - | | || recuperative and regenerative glass melting furnaces | 13 years | | || 2 | plant and machinery except direct fire glass melting furnaces - | | || moulds [nesd] | 8 years | | || 3 | float glass melting furnaces [nesd] | 10 years | || ( | c | ) plant and machinery used in mines and quarries—portable | || underground machinery and earth moving machinery used in | | | || open cast mining [nesd] | 8 years | | || ( | d | ) plant and machinery used in telecommunications [nesd] | || 1 | towers | 18 years | || 2 | telecom transceivers, switching centres, transmission and | | || other network equipment | 13 years | | || 3 | telecom—ducts, cables and optical fibre | 18 years | || 4 | satellites | -do- | || ( | e | ) plant and machinery used in exploration, production and | || refining oil and gas [nesd] | | | || 1 | refineries | 25 years | || 2 | oil and gas assets (including wells), processing plant and facilities | -do- | || 3 | petrochemical plant | -do- | || 4 | storage tanks and related equipment | -do- | || 5 | pipelines | 30 years | || 6 | drilling rig | -do- | || 7 | field operations (above ground) portable boilers, drilling tools, | | || well-head tanks, etc | 8 years | | || 8 | loggers | -do- | || ( | f | ) plant and machinery used in generation, transmission and distribution ||--------------------------------------------------------------|------------------------------------------------------------------|---------------------------------------------------------------------------|| of power [nesd] | | || 1 | thermal/ gas/ combined cycle power generation plant | 40 years || 2 | hydro power generation plant | -do- || 3 | nuclear power generation plant | -do- || 4 | transmission lines, cables and other network assets | -do- || 5 | wind power generation plant | 22 years || 6 | electric distribution plant | 35 years || 7 | gas storage and distribution plant | 30 years || 8 | water distribution plant including pipelines | -do- || ( | g | ) plant and machinery used in manufacture of steel || 1 | sinter plant | 20 years || 2 | blast furnace | -do- || 3 | coke ovens | -do- || 4 | rolling mill in steel plant | -do- || 5 | basic oxygen furnace converter | 25 years || ( | h | ) plant and machinery used in manufacture of non-ferrous metals || 1 | metal pot line [nesd] | 40 years || 2 | bauxite crushing and grinding section [nesd] | -do- || 3 | digester section [nesd] | -do- || 4 | turbine [nesd] | -do- || 5 | equipments for calcination [nesd] | -do- || 6 | copper smelter [nesd] | -do- || 7 | roll grinder | 40 years || 8 | soaking pit | 30 years || 9 | annealing furnace | -do- || 10 rolling mills | -do- | || 11 equipments for scalping, slitting , etc [nesd] | -do- | || 12 surface miner, ripper dozer, etc, used in mines | 25 years | || 13 copper refining plant [nesd] | -do- | || ( | i | ) plant and machinery used in medical and surgical operations [nesd] || 1 | electrical machinery, x-ray and electrotherapeutic apparatus and | || accessories thereto, medical, diagnostic equipments, namely, | | || cat-scan, ultrasound machines, ecg monitors, etc | 13 years | || 2 | other equipments | 15 years || ( | j | ) plant and machinery used in manufacture of pharmaceuticals and || chemicals [nesd] | | || 1 | reactors | 20 years || 2 | distillation columns | -do- || 3 | drying equipments/centrifuges and decanters | -do- || 4 | vessel/storage tanks | -do- |(k) plant and machinery used in civil construction| 1 | concreting, crushing, piling equipments and road making equipments | 12 years ||-----------------------------------------------------------------------------|-----------------------------------------------------------------------|---------------------------------------------------------------------------|| 2 | heavy lift equipments— | || cranes with capacity of more than 100 tons | 20 years | || cranes with capacity of less than 100 tons | 15 years | || 3 | transmission line, tunneling equipments [nesd] | 10 years || 4 | earth-moving equipments | 9 years || 5 | others including material handling /pipeline/welding | || equipments [nesd] | 12 years | || ( | l | ) || v | furniture and fittings [nesd] | || ( | i | ) || ( | ii | ) furniture and fittings used in hotels, restaurants and boarding houses, || schools, colleges and other educational institutions, libraries; welfare | | || centres; meeting halls, cinema houses; theatres and circuses; and | | || furniture and fittings let out on hire for use on the occasion of marriages | | || and similar functions | 8 years | || vi motor vehicles [nesd] | | || 1 | motor cycles, scooters and other mopeds | 10 years || 2 | motor buses, motor lorries, motor cars and motor taxies used in | || a business of running them on hire | 6 years | || 3 | motor buses, motor lorries and motor cars other than those used | || in a business of running them on hire | 8 years | || 4 | motor tractors, harvesting combines and heavy vehicles | -do- || 5 | electrically operated vehicles including battery powered or fuel | || cell powered vehicles | 8 years | || vii ships [nesd] | | || 1 | ocean-going ships | || ( | i | ) || ( | ii | ) || without conventional tank coatings | 20 years | || ( | iii | ) || ( | a | ) || ( | b | ) || ( | iv | ) || ( | v | ) || purpose also | -do- | || ( | vi | ) || ( | vii | ) offshore supply and support vessels || ( | viii | ) catamarans and other high speed passenger for ships or boats || ( | ix | ) | drill ships | 25 years ||--------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------------|--------------------------------------------------------|------------|| ( | x | ) | hovercrafts | 15 years || ( | xi | ) | fishing vessels with wooden hull | 10 years || ( | xii | ) dredgers, tugs, barges, survey launches and other similar ships | | || used mainly for dredging purposes | 14 years | | | || 2 | vessels ordinarily operating on inland waters— | | | || ( | i | ) | speed boats | 13 years || ( | ii | ) | other vessels | 28 years || viii aircrafts or helicopters [nesd] | 20 years | | | || ix | railways sidings, locomotives, rolling stocks, tramways and | | | || railways used by concerns, excluding railway concerns [nesd] | 15 years | | | || x | ropeway structures [nesd] | 15 years | | || xi | office equipment [nesd] | 5 years | | || xii | computers and data processing units [nesd] | | | || ( | i | ) | servers and networks | 6 years || ( | ii | ) | end user devices, such as, desktops, laptops, etc | 3 years || xiii laboratory equipment [nesd] | | | | || ( | i | ) | general laboratory equipment | 10 years || ( | ii | ) | laboratory equipments used in educational institutions | 5 years || xiv electrical installations and equipment [nesd] | 10 years | | | || xv | hydraulic works, pipelines and sluices [nesd] | 15 years | | | notes—1 "factory buildings" does not include offices, godowns, staff quarters 2 where, during any financial year, any addition has been made to any asset, or where any asset has been sold, discarded, demolished or destroyed, the depreciation on such assets shall be calculated on a pro rata basis from the date of such addition or, as the case may be, up to the date on which such asset has been sold, discarded, demolished or destroyed3 the following information shall also be disclosed in the accounts, namely:—(i) depreciation methods used; and(ii) the useful lives of the assets for computing depreciation, if they are differentfrom the life specified in the schedule4 useful life specified in part c of the schedule is for whole of the asset where cost of a part of the asset is significant to total cost of the asset and useful life of that part is different from the useful life of the remaining asset, useful life of that significant part shall be determined separately5 depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value ordinarily, the residual value of an asset is often insignificant but it should generally be not more than 5% of the original cost of the asset6 the useful lives of assets working on shift basis have been specified in the schedule based on their single shift working except for assets in respect of which no extra shift depreciation is permitted (indicated by nesd in part c above), if an asset is used for any time during the year for double shift, the depreciation will increase by 50% for that period and in case of the triple shift the depreciation shall be calculated on the basis of 100% for that period7 from the date this schedule comes into effect, the carrying amount of the asset as on that date—(a) shall be depreciated over the remaining useful life of the asset as per this schedule;(b) after retaining the residual value, shall be recognised in the opening balance of retained earnings where the remaining useful life of an asset is nil 8 ''continuous process plant'' means a plant which is required and designed to operate for twenty-four hours a day schedule iii (see section 129) general instructions for preparation of balance sheet and statement of profit and loss of a company general instructions1 where compliance with the requirements of the act including accounting standards as applicable to the companies require any change in treatment or disclosure including addition, amendment, substitution or deletion in the head or sub-head or any changes, inter se, in the financial statements or statements forming part thereof, the same shall be made and the requirements of this schedule shall stand modified accordingly2 the disclosure requirements specified in this schedule are in addition to and not in substitution of the disclosure requirements specified in the accounting standards prescribed under the companies act, 2011 additional disclosures specified in the accounting standards shall be made in the notes to accounts or by way of additional statement unless required to be disclosed on the face of the financial statements similarly, all other disclosures as required by the companies act shall be made in the notes to accounts in addition to the requirements set out in this schedule3 (i) notes to accounts shall contain information in addition to that presented in the financial statements and shall provide where required (a) narrative descriptions or disaggregations of items recognised in those statements; and (b) information about items that do not qualify for recognition in those statements(ii) each item on the face of the balance sheet and statement of profit and loss shall be cross-referenced to any related information in the notes to accounts in preparing the financial statements including the notes to accounts, a balance shall be maintained between providing excessive detail that may not assist users of financial statements and not providing important information as a result of too much aggregation4 (i) depending upon the turnover of the company, the figures appearing in the financial statements may be rounded off as given below:—| | | turnover | rounding off ||-----------------------------------|----|--------------------------------------|----------------------------------------------|| ( | a | ) less than one hundred crore rupees | to the nearest hundreds, thousands, lakhs || or millions, or decimals thereof | | | || ( | b | ) one hundred crore rupees or more | to the nearest lakhs, millions or crores, or || decimals thereof | | | |(ii) once a unit of measurement is used, it shall be used uniformly in the financial statements5 except in the case of the first financial statements laid before the company (after its incorporation) the corresponding amounts (comparatives) for the immediately preceding reporting period for all items shown in the financial statements including notes shall also be given6 for the purpose of this schedule, the terms used herein shall be as per the applicable accounting standards note:—this part of schedule sets out the minimum requirements for disclosure on the face of the balance sheet, and the statement of profit and loss (hereinafter referred to as "financial statements" for the purpose of this schedule) and notes line items, sub-line items and sub-totals shall be presented as an addition or substitution on the face of the financial statements when such presentation is relevant to an understanding of the company's financial position or performance or to cater to industry/sector-specific disclosure requirements or when required for compliance with the amendments to the companies act or under the accounting standards part i - balance sheetname of the company…………………… balance sheet as at ……………………… (rupees in…………)particularsnotefigures as at thefigures as at thenoend of currentend of the previousreporting periodreporting period1234 i equity and liabilities(1)shareholders' funds (a) share capital (b) reserves and surplus (c) money received against sharewarrants(2)share application money pending allotment(3)non-current liabilities (a) long-term borrowings (b) deferred tax liabilities (net) (c) other long term liabilities (d) long-term provisions(4)current liabilities (a) short-term borrowings (b) trade payables (c) other current liabilities (d) short-term provisions total ii assets non-current assets(1)(a) fixed assets(i) tangible assets (ii) intangible assets (iii) capital work-in-progress (iv) intangible assets under development| 1 | 2 | 3 ||-----|-----|-----------------------------|| ( | b | ) non-current investments || ( | c | ) deferred tax assets (net) |(d) long-term loans and advances (e) other non-current assets(2)current assets (a) current investments (b) inventories (c) trade receivables (d) cash and cash equivalents (e) short-term loans and advances (f)other current assetstotalsee accompanying notes to the financial statements notes general instructions for preparation of balance sheet 1 an asset shall be classified as current when it satisfies any of the following criteria:—(a) it is expected to be realised in, or is intended for sale or consumption in, the company's normal operating cycle;(b) it is held primarily for the purpose of being traded; (c) it is expected to be realised within twelve months after the reporting date; or (d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date all other assets shall be classified as non-current 2 an operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents where the normal operating cycle cannot be identified, it is assumed to have a duration of twelve months3 a liability shall be classified as current when it satisfies any of the following criteria:—(a) it is expected to be settled in the company's normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is due to be settled within twelve months after the reporting date; or (d) the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification all other liabilities shall be classified as non-current 4 a receivable shall be classified as a "trade receivable" if it is in respect of the amount due on account of goods sold or services rendered in the normal course of business5 a payable shall be classified as a "trade payable" if it is in respect of the amount due on account of goods purchased or services received in the normal course of business6 a company shall disclose the following in the notes to accounts a share capitalfor each class of share capital (different classes of preference shares to be treated separately):(a) the number and amount of shares authorised; (b) the number of shares issued, subscribed and fully paid, and subscribed but not fully paid;(c) par value per share;(d) a reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period;(e) the rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital;(f) shares in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate;(g) shares in the company held by each shareholder holding more than5 per cent shares specifying the number of shares held;(h) shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment, including the terms and amounts;(i) for the period of five years immediately preceding the date as at which the balance sheet is prepared:(a) aggregate number and class of shares allotted as fully paid-up pursuant to contract(s) without payment being received in cash(b) aggregate number and class of shares allotted as fully paid-up by way of bonus shares(c) aggregate number and class of shares bought back(j) terms of any securities convertible into equity/preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date;(k) calls unpaid (showing aggregate value of calls unpaid by directors and officers);(l) forfeited shares (amount originally paid-up) b reserves and surplus(i) reserves and surplus shall be classified as:(a) capital reserves; (b) capital redemption reserve; (c) securities premium reserve; (d) debenture redemption reserve; (e) revaluation reserve; (f) share options outstanding account;(g) other reserves–(specify the nature and purpose of each reserve and the amount in respect thereof);(h) surplus ie, balance in statement of profit and loss disclosing allocations and appropriations such as dividend, bonus shares and transfer to/ from reserves, etc;(additions and deductions since last balance sheet to be shown under each of the specified heads); (ii) a reserve specifically represented by earmarked investments shall be termed as a "fund"(iii) debit balance of statement of profit and loss shall be shown as a negative figure under the head "surplus" similarly, the balance of "reserves and surplus", after adjusting negative balance of surplus, if any, shall be shown under the head "reserves and surplus" even if the resulting figure is in the negative c long-term borrowings(i) long-term borrowings shall be classified as:(a) bonds/debentures; (b) term loans:(a) from banks (b) from other parties(c) deferred payment liabilities;(d) deposits; (e) loans and advances from related parties; (f) long term maturities of finance lease obligations; (g) other loans and advances (specify nature)(ii) borrowings shall further be sub-classified as secured and unsecured nature of security shall be specified separately in each case(iii) where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed(iv) bonds/debentures (along with the rate of interest and particulars of redemption or conversion, as the case may be) shall be stated in descending order of maturity or conversion, starting from farthest redemption or conversion date, as the case may be where bonds/debentures are redeemable by instalments, the date of maturity for this purpose must be reckoned as the date on which the first instalment becomes due(v) particulars of any redeemed bonds/debentures which the company has power to reissue shall be disclosed(vi) terms of repayment of term loans and other loans shall be stated (vii) period and amount of continuing default as on the balance sheet date in repayment of loans and interest, shall be specified separately in each case d other long-term liabilitiesother long-term liabilities shall be classified as:(a) trade payables; (b) others e long-term provisionsthe amounts shall be classified as:(a) provision for employee benefits;(b) others (specify nature) f short-term borrowings(i) short-term borrowings shall be classified as:(a) loans repayable on demand;(a) from banks (b) from other parties(b) loans and advances from related parties; (c) deposits;(d) other loans and advances (specify nature)(ii) borrowings shall further be sub-classified as secured and unsecured nature of security shall be specified separately in each case(iii) where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed(iv) period and amount of default as on the balance sheet date in repayment of loans and interest, shall be specified separately in each case g other current liabilitiesthe amounts shall be classified as:(a) current maturities of long-term debt;(b) current maturities of finance lease obligations; (c) interest accrued but not due on borrowings; (d) interest accrued and due on borrowings; (e) income received in advance;(f) unpaid dividends; (g) application money received for allotment of securities and due for refund and interest accrued thereon share application money includes advances towards allotment of share capital the terms and conditions including the number of shares proposed to be issued, the amount of premium, if any, and the period before which shares shall be allotted shall be disclosed it shall also be disclosed whether the company has sufficient authorised capital to cover the share capital amount resulting from allotment of shares out of such share application money further, the period for which the share application money has been pending beyond the period for allotment as mentioned in the document inviting application for shares along with the reason for such share application money being pending shall be disclosed share application money not exceeding the issued capital and to the extent not refundable shall be shown under the head equity and share application money to the extent refundable, ie, the amount in excess of subscription or in case the requirements of minimum subscription are not met, shall be separately shown under "óther current liabilities";(h) unpaid matured deposits and interest accrued thereon; (i) unpaid matured debentures and interest accrued thereon; (j) other payables (specify nature) h short-term provisionsthe amounts shall be classified as:(a) provision for employee benefits (b) others (specify nature) i tangible assets(i) classification shall be given as:(a) land; (b) buildings; (c) plant and equipment;(d) furniture and fixtures; (e) vehicles; (f) office equipment; (g) others (specify nature)(ii) assets under lease shall be separately specified under each class of asset (iii) a reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments and the related depreciation and impairment losses/reversals shall be disclosed separately(iv) where sums have been written-off on a reduction of capital or revaluation of assets or where sums have been added on revaluation of assets, every balance sheet subsequent to date of such write-off, or addition shall show the reduced or increased figures as applicable and shall by way of a note also show the amount of the reduction or increase as applicable together with the date thereof for the first five years subsequent to the date of such reduction or increase j intangible assets(i) classification shall be given as:(a) goodwill; (b) brands /trademarks; (c) computer software; (d) mastheads and publishing titles; (e) mining rights; (f) copyrights, and patents and other intellectual property rights, servicesand operating rights;(g) recipes, formulae, models, designs and prototypes; (h) licences and franchise;(i) others (specify nature)(ii) a reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments and the related amortization and impairment losses/reversals shall be disclosed separately(iii) where sums have been written-off on a reduction of capital or revaluation of assets or where sums have been added on revaluation of assets, every balance sheet subsequent to date of such write-off, or addition shall show the reduced or increased figures as applicable and shall by way of a note also show the amount of the reduction or increase as applicable together with the date thereof for the first five years subsequent to the date of such reduction or increase k non-current investments(i) non-current investments shall be classified as trade investments and other investments and further classified as:(a) investment property; (b) investments in equity instruments; (c) investments in preference shares;(d) investments in government or trust securities; (e) investments in debentures or bonds; (f) investments in mutual funds; (g) investments in partnership firms; (h) other non-current investments (specify nature)under each classification, details shall be given of names of the bodies corporate indicating separately whether such bodies are (i) subsidiaries, (ii) associates,(iii) joint ventures, or (iv) controlled special purpose entities in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid) in regard to investments in the capital of partnership firms, the names of the firms (with the names of all their partners, total capital and the shares of each partner) shall be given(ii) investments carried at other than at cost should be separately stated specifying the basis for valuation thereof;(iii) the following shall also be disclosed:(a) aggregate amount of quoted investments and market value thereof; (b) aggregate amount of unquoted investments; (c) aggregate provision for diminution in value of investments l long-term loans and advances(i) long-term loans and advances shall be classified as:(a) capital advances; (b) security deposits; (c) loans and advances to related parties (giving details thereof); (d) other loans and advances (specify nature)(ii) the above shall also be separately sub-classified as:(a) secured, considered good; (b) unsecured, considered good; (c) doubtful(iii) allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately(iv) loans and advances due by directors or other officers of the company or any of them either severally or jointly with any other persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated m other non-current assetsother non-current assets shall be classified as:(i) long-term trade receivables (including trade receivables on deferred credit terms);(ii) others (specify nature); (iii) long term trade receivables, shall be sub-classified as:(a) (a) secured, considered good; (b) unsecured, considered good; (c) doubtful (b) allowance for bad and doubtful debts shall be disclosed under the relevant heads separately(c) debts due by directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated n current investments(i) current investments shall be classified as:(a) investments in equity instruments; (b) investment in preference shares; (c) investments in government or trust securities; (d) investments in debentures or bonds; (e) investments in mutual funds; (f) investments in partnership firms;(g) other investments (specify nature)under each classification, details shall be given of names of the bodies corporate[indicating separately whether such bodies are: (i) subsidiaries, (ii) associates,(iii) joint ventures, or (iv) controlled special purpose entities] in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly paid) in regard to investments in the capital of partnership firms, the names of the firms (with the names of all their partners, total capital and the shares of each partner) shall be given(ii) the following shall also be disclosed:(a) the basis of valuation of individual investments; (b) aggregate amount of quoted investments and market value thereof; (c) aggregate amount of unquoted investments; (d) aggregate provision made for diminution in value of investments o inventories(i) inventories shall be classified as:(a) raw materials;(b) work-in-progress; (c) finished goods;(d) stock-in-trade (in respect of goods acquired for trading); (e) stores and spares; (f) loose tools;(g) others (specify nature)(ii) goods-in-transit shall be disclosed under the relevant sub-head of inventories (iii) mode of valuation shall be stated p trade receivables(i) aggregate amount of trade receivables outstanding for a period exceeding six months from the date they are due for payment should be separately stated(ii) trade receivables shall be sub-classified as:(a) secured, considered good; (b) unsecured, considered good; (c) doubtful(iii) allowance for bad and doubtful debts shall be disclosed under the relevant heads separately(iv) debts due by directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated q cash and cash equivalents(i) cash and cash equivalents shall be classified as:(a) balances with banks; (b) cheques, drafts on hand; (c) cash on hand;(d) others (specify nature)(ii) earmarked balances with banks (for example, for unpaid dividend) shall be separately stated(iii) balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed separately(iv) repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated(v) bank deposits with more than twelve months maturity shall be disclosed separately r short-term loans and advances(i) short-term loans and advances shall be classified as:(a) loans and advances to related parties (giving details thereof); (b) others (specify nature)(ii) the above shall also be sub-classified as:(a) secured, considered good; (b) unsecured, considered good;(c) doubtful(iii) allowance for bad and doubtful loans and advances shall be disclosed under the relevant heads separately(iv) loans and advances due by directors or other officers of the company or any of them either severally or jointly with any other person or amounts due by firms or private companies respectively in which any director is a partner or a director or a member shall be separately stated s other current assets (specify nature)this is an all-inclusive heading, which incorporates current assets that do not fit into any other asset categories t contingent liabilities and commitments (to the extent not provided for)(i) contingent liabilities shall be classified as:(a) claims against the company not acknowledged as debt; (b) guarantees; (c) other money for which the company is contingently liable(ii) commitments shall be classified as:(a) estimated amount of contracts remaining to be executed on capitalaccount and not provided for;(b) uncalled liability on shares and other investments partly paid; (c) other commitments (specify nature)u the amount of dividends proposed to be distributed to equity and preference shareholders for the period and the related amount per share shall be disclosed separately arrears of fixed cumulative dividends on preference shares shall also be disclosed separatelyv where in respect of an issue of securities made for a specific purpose, the whole or part of the amount has not been used for the specific purpose at the balance sheet date, there shall be indicated by way of note how such unutilized amounts have been used or investedw if, in the opinion of the board, any of the assets other than fixed assets and non-current investments do not have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated, the fact that the board is of that opinion, shall be stated part ii - statement of profit and lossname of the company…………………… profit and loss statement for the year ended ……………………… (rupees in…………)particularsnotefigures as at thefigures as atnoend of currentthe end ofreporting periodthe previousreporting period1234irevenue from operationsxxxxxxiiother incomexxxxxxiiitotal revenue (i + ii)xxxxxx| 1 | 2 | 3 | 4 ||-----------------------------------|-----------------------------------------|-----|-----|| iv | expenses: | | || cost of materials consumed | | | || purchases of stock-in-trade | | | || changes in inventories of | | | || finished goods work-in-progress | xxx | xxx | || and stock-in-trade | xxx | xxx | || employee benefits expense | xxx | xxx | || finance costs | | | || depreciation and amortisation | | | || expense | | | || other expenses | | | || total expenses | xxx | xxx | || v | profit before exceptional and | xxx | xxx || extraordinary items and tax | | | || (iii - iv) | | | || vi | exceptional items | xxx | xxx || vii | profit before extraordinary items | xxx | xxx || and tax (v - vi) | | | || viii | extraordinary items | xxx | xxx || ix | profit before tax (vii- viii) | xxx | xxx || x | tax expense: | | || (1) current tax | xxx | xxx | || (2) deferred tax | xxx | xxx | || xi | profit (loss) for the period from | xxx | xxx || continuing operations (vii-viii) | | | || xii | profit/(loss) from discontinuing | xxx | xxx || operations | | | || xiii | tax expense of discontinuing | xxx | xxx || operations | | | || xiv | profit/(loss) from discontinuing | xxx | xxx || operations (after tax) (xii-xiii) | | | || xv | profit (loss) for the period (xi + xiv) | xxx | xxx || xvi | earnings per equity share: | | || (1) basic | xxx | xxx | || (2) diluted | xxx | xxx | |see accompanying notes to the financial statements general instructions for preparation of statement of profit and loss1 the provisions of this part shall apply to the income and expenditure account referred to in sub-clause (ii) of clause (40) of section 2 in like manner as they apply to a statement of profit and loss2 (a) in respect of a company other than a finance company revenue from operations shall disclose separately in the notes revenue from—(a) sale of products; (b) sale of services; (c) other operating revenues; less: (d) excise duty(b) in respect of a finance company, revenue from operations shall include revenue from—(a) interest; and (b) other financial servicesrevenue under each of the above heads shall be disclosed separately by way of notes to accounts to the extent applicable 3 finance costsfinance costs shall be classified as:(a) interest expense; (b) other borrowing costs; (c) applicable net gain/loss on foreign currency transactions and translation 4 other incomeother income shall be classified as:(a) interest income (in case of a company other than a finance company); (b) dividend income; (c) net gain/loss on sale of investments; (d) other non-operating income (net of expenses directly attributable to such income) 5 additional informationa company shall disclose by way of notes additional information regarding aggregate expenditure and income on the following items:—(i) (a) employee benefits expense [showing separately (i) salaries and wages,(ii) contribution to provident and other funds, (iii) expense on employee stock option scheme (esop) and employee stock purchase plan (espp), (iv) staff welfare expenses](b) depreciation and amortisation expense; (c) any item of income or expenditure which exceeds one per cent of the revenue from operations or rs1,00,000, whichever is higher;(d) interest income; notes(e) interest expense;(f) dividend income; (g) net gain/loss on sale of investments;(h) adjustments to the carrying amount of investments; (i) net gain or loss on foreign currency transaction and translation (other than considered as finance cost);(j) payments to the auditor as (a) auditor; (b) for taxation matters; (c) for company law matters; (d) for management services; (e) for other services; and (f) for reimbursement of expenses;(k) in case of companies covered under section 135, amount of expenditure incurred on corporate social responsibility activities;(l) details of items of exceptional and extraordinary nature; (m) prior period items; (ii) (a) in the case of manufacturing companies,—(1) raw materials under broad heads (2) goods purchased under broad heads(b) in the case of trading companies, purchases in respect of goods traded in by the company under broad heads(c) in the case of companies rendering or supplying services, gross income derived from services rendered or supplied under broad heads(d) in the case of a company, which falls under more than one of the categories mentioned in (a), (b) and (c) above, it shall be sufficient compliance with the requirements herein if purchases, sales and consumption of raw material and the gross income from services rendered is shown under broad heads(e) in the case of other companies, gross income derived under broad heads (iii) in the case of all concerns having works in progress, works-in-progress under broad heads(iv) (a) the aggregate, if material, of any amounts set aside or proposed to be set aside, to reserve, but not including provisions made to meet any specific liability, contingency or commitment known to exist at the date as to which the balance sheet is made up(b) the aggregate, if material, of any amounts withdrawn from such reserves (v) (a) the aggregate, if material, of the amounts set aside to provisions made for meeting specific liabilities, contingencies or commitments(b) the aggregate, if material, of the amounts withdrawn from such provisions, as no longer required(vi) expenditure incurred on each of the following items, separately for each item:—(a) consumption of stores and spare parts; (b) power and fuel; (c) rent;(d) repairs to buildings; (e) repairs to machinery;(f) insurance; (g) rates and taxes, excluding, taxes on income; (h) miscellaneous expenses,(vii) (a) dividends from subsidiary companies (b) provisions for losses of subsidiary companies(viii) the profit and loss account shall also contain by way of a note the following information, namely:—(a) value of imports calculated on cif basis by the company during the financial year in respect of—i raw materials; ii components and spare parts; iii capital goods;(b) expenditure in foreign currency during the financial year on account of royalty, know-how, professional and consultation fees, interest, and other matters;(c) total value if all imported raw materials, spare parts and components consumed during the financial year and the total value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each to the total consumption;(d) the amount remitted during the year in foreign currencies on account of dividends with a specific mention of the total number of non-resident shareholders, the total number of shares held by them on which the dividends were due and the year to which the dividends related;(e) earnings in foreign exchange classified under the following heads, namely:—i export of goods calculated on fob basis; ii royalty, know-how, professional and consultation fees; iii interest and dividend; iv other income, indicating the nature thereofnote:— broad heads shall be decided taking into account the concept of materiality andpresentation of true and fair view of financial statements general instructions for the preparation of consolidated financial statements1 where a company is required to prepare consolidated financial statements, ie, consolidated balance sheet and consolidated statement of profit and loss, the company shall mutatis mutandis follow the requirements of this schedule as applicable to a company in the preparation of balance sheet and statement of profit and loss in addition, the consolidated financial statements shall disclose the information as per the requirements specified in the applicable accounting standards including the following: (i) profit or loss attributable to "minority interest" and to owners of the parent in the statement of profit and loss shall be presented as allocation for the period (ii) "minority interests" in the balance sheet within equity shall be presented separately from the equity of the owners of the parent 2 in consolidated financial statements, the following shall be disclosed by way of additional information:| name of the | net assets, | ie | , total | share in profit ||-------------------|--------------------------------|---------|------------|-------------------|| entity in the | assets minus total liabilities | or loss | | || as % of | amount | as % of | amount | || consolidated | consolidated | | | || net assets | profit or loss | | | || 1 | 2 | 3 | 4 | 5 || parent | | | | || subsidiaries | | | | || indian | | | | || 1 | | | | || 2 | | | | || 3 | | | | || | | | | || | | | | || foreign | | | | || 1 | | | | || 2 | | | | || 3 | | | | || | | | | || | | | | || minority | | | | || interests in | | | | || all subsidiaries | | | | || associates | | | | || (investment | | | | || as per the equity | | | | || method) | | | | || indian | | | | || 1 | | | | || 2 | | | | || 3 | | | | || | | | | || | | | | |foreign1 2 3 joint ventures (as per proportionate consolidation/ investment | 1 | 2 | 3 | 4 | 5 ||-----|-----|-----|-----|-----|as per the equity method) indian1 2 3 foreign1 2 3 total3 all subsidiaries, associates and joint ventures (whether indian or foreign) will be covered under consolidated financial statements4 an entity shall disclose the list of subsidiaries or associates or joint ventures which have not been consolidated in the consolidated financial statements along with the reasons of not consolidatingschedule ivcode for independent directorsthe code is a guide to professional conduct for independent directors adherence to these standards by independent directors and fulfilment of their responsibilities in a professional and faithful manner will promote confidence of the investment community, particularly minority shareholders, regulators and companies in the institution of independent directors i guidelines of professional conduct:an independent director shall:(1) uphold ethical standards of integrity and probity; (2) act objectively and constructively while exercising his duties; (3) exercise his responsibilities in a bona fide manner in the interest of the company;(4) devote sufficient time and attention to his professional obligations for informedand balanced decision making;(5) not allow any extraneous considerations that will vitiate his exercise of objectiveindependent judgment in the paramount interest of the company as a whole, while concurring in or dissenting from the collective judgment of the board in its decision making;(6) not abuse his position to the detriment of the company or its shareholders or forthe purpose of gaining direct or indirect personal advantage or advantage for any associated person;(7) refrain from any action that would lead to loss of his independence; (8) where circumstances arise which make an independent director lose hisindependence, the independent director must immediately inform the board accordingly;(9) assist the company in implementing the best corporate governance practices ii role and functions:the independent directors shall:(1) help in bringing an independent judgment to bear on the board's deliberationsespecially on issues of strategy, performance, risk management, resources, key appointments and standards of conduct;(2) bring an objective view in the evaluation of the performance of board andmanagement;(3) scrutinise the performance of management in meeting agreed goals and objectivesand monitor the reporting of performance;(4) satisfy themselves on the integrity of financial information and that financialcontrols and the systems of risk management are robust and defensible;(5) safeguard the interests of all stakeholders, particularly the minority shareholders; (6) balance the conflicting interest of the stakeholders; (7) determine appropriate levels of remuneration of executive directors, keymanagerial personnel and senior management and have a prime role in appointing and where necessary recommend removal of executive directors, key managerial personnel and senior management;(8) moderate and arbitrate in the interest of the company as a whole, in situations ofconflict between management and shareholder's interest iii duties :the independent directors shall—(1) undertake appropriate induction and regularly update and refresh their skills,knowledge and familiarity with the company;(2) seek appropriate clarification or amplification of information and, where necessary,take and follow appropriate professional advice and opinion of outside experts at the expense of the company;(3) strive to attend all meetings of the board of directors and of the board committeesof which he is a member;(4) participate constructively and actively in the committees of the board in whichthey are chairpersons or members;(5) strive to attend the general meetings of the company; (6) where they have concerns about the running of the company or a proposedaction, ensure that these are addressed by the board and, to the extent that they are not resolved, insist that their concerns are recorded in the minutes of the board meeting;(7) keep themselves well informed about the company and the external environmentin which it operates;(8) not to unfairly obstruct the functioning of an otherwise proper board orcommittee of the board;(9) pay sufficient attention and ensure that adequate deliberations are held beforeapproving related party transactions and assure themselves that the same are in the interest of the company;(10) ascertain and ensure that the company has an adequate and functional vigilmechanism and to ensure that the interests of a person who uses such mechanism are not prejudicially affected on account of such use;(11) report concerns about unethical behaviour, actual or suspected fraud or violationof the company's code of conduct or ethics policy;(12) acting within his authority, assist in protecting the legitimate interests of thecompany, shareholders and its employees;(13) not disclose confidential information, including commercial secrets, technologies,advertising and sales promotion plans, unpublished price sensitive information, unless such disclosure is expressly approved by the board or required by law iv manner of appointment:(1) appointment process of independent directors shall be independent of the companymanagement; while selecting independent directors the board shall ensure that there is appropriate balance of skills, experience and knowledge in the board so as to enable the board to discharge its functions and duties effectively(2) the appointment of independent director(s) of the company shall be approvedat the meeting of the shareholders(3) the explanatory statement attached to the notice of the meeting for approvingthe appointment of independent director shall include a statement that in the opinion of the board, the independent director proposed to be appointed fulfils the conditions specified in the act and the rules made thereunder and that the proposed director is independent of the management(4) the appointment of independent directors shall be formalised through a letter ofappointment, which shall set out :(a) the term of appointment;(b) the expectation of the board from the appointed director; the board-levelcommittee(s) in which the director is expected to serve and its tasks;(c) the fiduciary duties that come with such an appointment along withaccompanying liabilities;(d) provision for directors and officers (d and o) insurance, if any;(e) the code of business ethics that the company expects its directors andemployees to follow;(f) the list of actions that a director should not do while functioning as such inthe company; and(g) the remuneration, mentioning periodic fees, reimbursement of expenses forparticipation in the boards and other meetings and profit related commission, if any(5) the terms and conditions of appointment of independent directors shall beopen for inspection at the registered office of the company by any member during normal business hours(6) the terms and conditions of appointment of independent directors shall also beposted on the company's website v reappointment:the re-appointment of independent director shall be on the basis of report of performance evaluation vi resignation or removal:(1) the resignation or removal of an independent director shall be in the samemanner as is provided in sections 168 and 169 of the act(2) an independent director who resigns or is removed from the board of thecompany shall be replaced by a new independent director within a period of not more than one hundred and eighty days from the date of such resignation or removal, as the case may be(3) where the company fulfils the requirement of independent directors in its boardeven without filling the vacancy created by such resignation or removal, as the case may be, the requirement of replacement by a new independent director shall not apply vii separate meetings:(1) the independent directors of the company shall hold at least one meeting in ayear, without the attendance of non-independent directors and members of management;(2) all the independent directors of the company shall strive to be present at suchmeeting;(3) the meeting shall:(a)review the performance of non-independent directors and the board as awhole;(b)review the performance of the chairperson of the company, taking into accountthe views of executive directors and non-executive directors;(c)assess the quality, quantity and timeliness of flow of information between thecompany management and the board that is necessary for the board to effectively and reasonably perform their duties viii evaluation mechanism:(1) the performance evaluation of independent directors shall be done by the entireboard of directors, excluding the director being evaluated(2) on the basis of the report of performance evaluation, it shall be determinedwhether to extend or continue the term of appointment of the independent director part i conditions to be fulfilled for the appointment of a managing or whole-time director or a manager without the approval of the central government appointmentsno person shall be eligible for appointment as a managing or whole-time director or a manager (hereinafter referred to as managerial person) of a company unless he satisfies the following conditions, namely:—(a) he had not been sentenced to imprisonment for any period, or to a fine exceeding one thousand rupees, for the conviction of an offence under this act or any of the following acts, namely:—(i) the indian stamp act, 1899 (2 of 1899);(ii) the central excise act, 1944 (1 of 1944);(iii) the industries (development and regulation) act, 1951 (65 of 1951);(iv) the prevention of food adulteration act, 1954 (37 of 1954);(v) the essential commodities act, 1955 (10 of 1955);(vi) the companies act, 2011;(vii) the securities contracts (regulation) act, 1956 (42 of 1956);(viii) the wealth-tax act, 1957 (27 of 1957);(ix) the income-tax act, 1961 (43 of 1961);(x) the customs act, 1962 (52 of 1962);(xi) the competition act, 2002 (12 of 2003);(xii) the foreign exchange management act, 1999 (42 of 1999);(xiii) the sick industrial companies (special provisions) act, 1985 (1 of 1986);(xiv) the securities and exchange board of india act, 1992 (15 of 1992);(xv) the foreign trade (development and regulation) act, 1922 (22 of 1922);(xvi) the prevention of money-laundering act, 2002 (15 of 2003);(b) he had not been detained for any period under the conservation of foreign exchange and prevention of smuggling activities act, 1974 (52 of 1974): provided that where the central government has given its approval to the appointment of a person convicted or detained under sub-paragraph (a) or sub-paragraph (b), as the case may be, no further approval of the central government shall be necessary for the subsequent appointment of that person if he had not been so convicted or detained subsequent to such approval(c) he has completed the age of twenty-one years and has not attained the age of seventy years: provided that where he has attained the age of seventy years; and where his appointment is approved by a special resolution passed by the company in general meeting, no further approval of the central government shall be necessary for such appointment;(d) where he is a managerial person in more than one company, he draws remunerationfrom one or more companies subject to the ceiling provided in section v of part ii;(e) he is resident of indiaexplanation i—for the purpose of this schedule, resident in india includes a person who has been staying in india for a continuous period of not less than twelve months immediately preceding the date of his appointment as a managerial person and who has come to stay in india,—(i) for taking up employment in india; or (ii) for carrying on a business or vacation in indiaexplanation ii—this condition shall not apply to the companies in special economic zones as notified by department of commerce from time to time:provided that a person, being a non-resident in india shall enter india only after obtaining a proper employment visa from the concerned indian mission abroad for this purpose, such person shall be required to furnish, along with the visa application form, profile of the company, the principal employer and terms and conditions of such person's appointment part ii remuneration section i— remuneration payable by companies having profits:subject to the provisions of section 197, a company having profits in a financial year may pay remuneration to a managerial person or persons not exceeding the limits specified in such section section ii— remuneration payable by companies having no profit or inadequate profit without central government approval:where in any financial year during the currency of tenure of a managerial person, a company has no profits or its profits are inadequate, it may, without central government approval, pay remuneration to the managerial person not exceeding the higher of the limits under (a) and (b) given below:—| ( | a | ): ||--------------------------------------|------------------------------|------|| (1) | (2) | || where the effective capital is | limit of yearly remuneration | || payable shall not exceed (rupees) | | || ( | i | ) || ( | ii | ) || 100 crores | | || ( | iii | ) || 250 crores | | || ( | iv | ) || capital in excess of rs 250 crores: | | |provided that the above limits shall be doubled if the resolution passed by the shareholders is a special resolutionexplanation—it is hereby clarified that for a period less than one year, the limits shall be pro-rated(b) in the case of a managerial person who was not a shareholder, employee or a director of the company at any time during the two years prior to his appointment as a managerial person, - 25% of the current relevant profit:provided that if the resolution passed by the shareholders is a special resolution, this limit shall be doubled:provided further that the limits specified under this section shall apply, if—(i) payment of remuneration is approved by a resolution passed by the board and, inthe case of a company covered under sub-section (1) of section 178 also by the nomination and remuneration committee;(ii) the company has not made any default in repayment of any of its debts (includingpublic deposits) or debentures or interest payable thereon for a continuous period of thirty days in the preceding financial year before the date of appointment of such managerial person;(iii) a special resolution has been passed at the general meeting of the company forpayment of remuneration for a period not exceeding three years;(iv) a statement along with a notice calling the general meeting referred to in clause (iii)is given to the shareholders containing the following information, namely:—i general information:(1)nature of industry(2)date or expected date of commencement of commercial production(3)in case of new companies, expected date of commencement of activities as per project approved by financial institutions appearing in the prospectus(4)financial performance based on given indicators(5)foreign investments or collaborations, if anyii information about the appointee:(1)background details(2)past remuneration(3)recognition or awards(4)job profile and his suitability(5)remuneration proposed(6)comparative remuneration profile with respect to industry, size of the company, profile of the position and person (in case of expatriates the relevant details would be with respect to the country of his origin)(7)pecuniary relationship directly or indirectly with the company, or relationship with the managerial personnel, if anyiii other information:(1)reasons of loss or inadequate profits(2)steps taken or proposed to be taken for improvement(3)expected increase in productivity and profits in measurable termsiv disclosures:the following disclosures shall be mentioned in the board of director's report under the heading "corporate governance", if any, attached to the financial statement:—(i)all elements of remuneration package such as salary, benefits, bonuses, stock options, pension, etc, of all the directors;(ii)details of fixed component and performance linked incentives along with the performance criteria;(iii)service contracts, notice period, severance fees;(iv)stock option details, if any, and whether the same has been issued at a discount as well as the period over which accrued and over which exercisable section iii— remuneration payable by companies having no profit or inadequate profit without central government approval in certain special circumstances:in the following circumstances a company may, without the central government approval, pay remuneration to a managerial person in excess of the amounts provided in section ii above:—(a) where the remuneration in excess of the limits specified in section i or ii is paid byany other company and that other company is either a foreign company or has gotthe approval of its shareholders in general meeting to make such payment, and treats this amount as managerial remuneration for the purpose of section 197 and the total managerial remuneration payable by such other company to its managerial persons including such amount or amounts is within permissible limits under section 197(b) where the company—(i) is a newly incorporated company, for a period of seven years from the date ofits incorporation, or(ii) is a sick company, for whom a scheme of revival or rehabilitation has beenordered by the board for industrial and financial reconstruction or national company law tribunal, for a period of five years from the date of sanction of scheme of revival,it may pay remuneration up to two times the amount permissible under section ii(c) where remuneration of a managerial person exceeds the limits in section ii but theremuneration has been fixed by the board for industrial and financial reconstruction or the national company law tribunal:provided that the limits under this section shall be applicable subject to meeting all the conditions specified under section ii and the following additional conditions:—(i) except as provided in para (a) of this section, the managerial person is notreceiving remuneration from any other company;(ii) the auditor or company secretary of the company or where the company hasnot appointed a secretary, a secretary in whole-time practice, certifies that all secured creditors and term lenders have stated in writing that they have no objection for the appointment of the managerial person as well as the quantum of remuneration and such certificate is filed along with the return as prescribed under sub-section (4) of section 196(iii) the auditor or company secretary or where the company has not appointed asecretary, a secretary in whole-time practice certifies that there is no default on payments to any creditors, and all dues to deposit holders are being settled on time(d) a company in a special economic zone as notified by department of commercefrom time to time which has not raised any money by public issue of shares or debentures in india, and has not made any default in india in repayment of any of its debts (including public deposits) or debentures or interest payable thereon for a continuous period of thirty days in any financial year, may pay remuneration up to rs 2,40,00,000 per annum section iv— perquisites not included in managerial remuneration:1 a managerial person shall be eligible for the following perquisites which shall not be included in the computation of the ceiling on remuneration specified in section ii and section iii:—(a) contribution to provident fund, superannuation fund or annuity fund to the extentthese either singly or put together are not taxable under the income-tax act, 1961 (43 of 1961),(b) gratuity payable at a rate not exceeding half a month's salary for each completedyear of service, and(c) encashment of leave at the end of the tenure2 in addition to the perquisites specified in paragraph 1 of this section, an expatriate managerial person (including a non-resident indian) shall be eligible to the following perquisites which shall not be included in the computation of the ceiling on remuneration specified in section ii or section iii—(a) children's education allowance: in case of children studying in or outside india,an allowance limited to a maximum of rs 12,000 per month per child or actual expenses incurred, whichever is less such allowance is admissible up to a maximum of two children(b) holiday passage for children studying outside india or family staying abroad:return holiday passage once in a year by economy class or once in two years by first class to children and to the members of the family from the place of their study or stay abroad to india if they are not residing in india, with the managerial person(c) leave travel concession: return passage for self and family in accordance with therules specified by the company where it is proposed that the leave be spent in home country instead of anywhere in indiaexplanation i— for the purposes of section ii of this part, "effective capital" means the aggregate of the paid-up share capital (excluding share application money or advances against shares); amount, if any, for the time being standing to the credit of share premium account; reserves and surplus (excluding revaluation reserve); long-term loans and deposits repayable after one year (excluding working capital loans, over drafts, interest due on loans unless funded, bank guarantee, etc, and other short-term arrangements) as reduced by the aggregate of any investments (except in case of investment by an investment company whose principal business is acquisition of shares, stock, debentures or other securities), accumulated losses and preliminary expenses not written offexplanation ii— (a) where the appointment of the managerial person is made in the year in which company has been incorporated, the effective capital shall be calculated as on the date of such appointment;(b) in any other case the effective capital shall be calculated as on the last date of the financial year preceding the financial year in which the appointment of the managerial person is madeexplanation iii— for the purposes of this schedule, ''family'' means the spouse, dependent children and dependent parents of the managerial personexplanation iv— the nomination and remuneration committee while approving the remuneration under section ii or section iii, shall—(a) take into account, financial position of the company, trend in the industry, appointee'squalification, experience, past performance, past remuneration, etc;(b) be in a position to bring about objectivity in determining the remuneration packagewhile striking a balance between the interest of the company and the shareholdersexplanation v— for the purposes of this schedule, "negative effective capital" means the effective capital which is calculated in accordance with the provisions contained in explanation i of this part is less than zeroexplanation vi— for the purposes of this schedule:—(a) "current relevant profit" means the profit as calculated under section 198 butwithout deducting the excess of expenditure over income referred to in sub-section 4 (l) thereof in respect of those years during which the managerial person was not an employee, director or shareholder of the company or its holding or subsidiary companies(b) "remuneration" means remuneration as defined in clause 78 of section 2 and includesreimbursement of any direct taxes to the managerial person section v —remuneration payable to a managerial person in two companies:subject to the provisions of sections i to iv, a managerial person shall draw remuneration from one or both companies, provided that the total remuneration drawn from the companies does not exceed the higher maximum limit admissible from any one of the companies of which he is a managerial person part iii provisions applicable to parts i and ii of this schedule1 the appointment and remuneration referred to in part i and part ii of this schedule shall be subject to approval by a resolution of the shareholders in general meeting2 the auditor or the secretary of the company or where the company is not required to appointed a secretary, a secretary in whole-time practice shall certify that the requirement of this schedule have been complied with and such certificate shall be incorporated in the return filed with the registrar under sub-section (4) of section 196 part ivthe central government may, by notification, exempt any clause or clauses of companies form any of the requirements contained in this schedule schedule vi (see sections 55 and 186)the term "infrastructural projects" or "infrastructural facilities" includes the following projects or activities:—(1) transportation (including inter modal transportation), includes the following:—(a) roads, national highways, state highways, major district roads, other district roads and village roads, including toll roads, bridges, highways, road transport providers and other road-related services;(b) rail system, rail transport providers, metro rail roads and other railway related services;(c) ports (including minor ports and harbours), inland waterways, coastal shipping including shipping lines and other port related services;(d) aviation, including airports, heliports, airlines and other airport related services;(e) logistics services(2) agriculture, including the following, namely:—(a) infrastructure related to storage facilities; (b) construction relating to projects involving agro-processing and supply of inputs to agriculture;(c) construction for preservation and storage of processed agro-products, perishable goods such as fruits, vegetables and flowers including testing facilities for quality (3) water management, including the following, namely:—(a) water supply or distribution; (b) irrigation; (c) water treatment(4) telecommunication, including the following, namely:—(a) basic or cellular, including radio paging; (b) domestic satellite service (ie, satellite owned and operated by an indian company for providing telecommunication service);(c) network of trunking, broadband network and internet services(5) industrial, commercial and social development and maintenance, including the following, namely:—(a) real estate development, including an industrial park or special economic zone;(b) tourism, including hotels, convention centres and entertainment centres; (c) public markets and buildings, trade fair, convention, exhibition, cultural centres, sports and recreation infrastructure, public gardens and parks;(d) construction of educational institutions and hospitals;(e) other urban development, including solid waste management systems, sanitation and sewerage systems (6) power, including the following:—(a) generation of power through thermal, hydro, nuclear, fossil fuel, wind and other renewable sources;(b) transmission, distribution or trading of power by laying a network of new transmission or distribution lines (7) petroleum and natural gas, including the following:—(a) exploration and production; (b) import terminals;(c) liquefaction and re-gasification; (d) storage terminals; (e) transmission networks and distribution networks including city gas infrastructure (8) housing, including the following:—(a) urban and rural housing including public / mass housing, slum rehabilitation, etc;(b) other allied activities such as drainage, lighting, laying of roads, sanitation and facilities (9) other miscellaneous facilities/services, including the following:—(a) mining and related activities; (b) technology related infrastructure; (c) manufacturing of components and materials or any other utilities or facilities required by the infrastructure sector like energy saving devices and metering devices;(d) environment related infrastructure; (e) disaster management services; (f) preservation of monuments and icons; (g) emergency services (including medical, police, fire and rescue)(10) such other facility service as may be prescribed schedule vii(see sections 135)activities which may be included by companies in their corporate social responsibility policies activities relating to:—(i) eradicating extreme hunger and poverty; (ii) promotion of education; (iii) promoting gender equality and empowering women; (iv) reducing child mortlity and improving maternal health; (v) combating human immunodeficiency virus, acquired immune deficiencysyndrome, malaria and other diseases;(vi) ensuring environmental sustainability; (vii) employment enhancing vocational skills; (viii) social business projects; (ix)contribution to the prime minister's national relief fund or any otherfund set up by the central government or the state governments for socioeconomic development and relief and funds for the welfare of the scheduled castes, the scheduled tribes, other backward classes, minorities and women; and(x)such other matters as may be prescribed statement of objects and reasonsthe companies act, 1956 had been enacted with the object to consolidate and amend the law relating to the companies and certain other associations the said act has been in force for about fifty-five years and had been amended several times2 in view of changes in the national and international economic environment and expansion and growth of economy of our country, the central government after due deliberations decided to repeal the companies act, 1956 and enact a new legislation to provide for new provisions to meet the changed national and international, economic environment and further accelerate the expansion and growth of our economy and for this purpose a bill, namely, the companies bill, 2009 was introduced on 3rd august, 2009 in the lok sabha along with the statement of objects and reasons appended to the said bill outlining its salient features the said bill was referred to the parliamentary standing committee on finance for examination and report and the committee gave its report on the 31st august, 20103 subsequent to the introduction of the companies bill, 2009 in the lok sabha, the central government received several suggestions for amendments in the said bill the parliamentary standing committee on finance also made numerous recommendations in its report the central government has accepted in general the recommendations of the standing committee and also considered the suggestions received by it from various stakeholders4 in view of large amendments to the companies bill, 2009 arising out of the recommendations of the parliamentary standing committee on finance and suggestions of the stakeholders, the central government decided to withdraw the companies bill, 2009 and introduce a fresh bill incorporating therein the recommendations of standing committee and suggestions of the stakeholders5 paragraph 7 of the statement of objects and reasons appended to the companies bill, 2009 states the salient features of the said bill the notes on clauses appended to the aforesaid bill also explain the provisions of the companies bill, 2009, pending in this august house the revised bill, namely, the companies bill, 2011, inter alia, makes the following amendments to the companies bill, 2009 which broadly include—(i) e-governance:- maintenance and allowing inspection of documents bycompanies in electronic form being allowed for the first time(ii) concept of corporate social responsibility is being introduced(iii) enhanced accountability on the part of companies:(a) in addition to the concept of independent directors (ids) introduced,the provisions in respect of their tenure and liability, etc, have been provided code for ids provided in a new schedule to the bill databank for ids proposed to be maintained by a body/institute notified by the central government to facilitate appointment of ids(b) corporate social responsibility (csr) committee of the board proposed in addition to other committees of the board viz audit committee, nomination and remuneration and stakeholders relationship committee these committees shall have ids/non-executive directors to bring more independence in board functioning and for protection of interests of minority shareholders(c) definition of ''promoter'' also included along with his liability in certain cases(d) provisions in respect of vigil mechanism (whistle blowing) proposed to enable a company to evolve a process to encourage ethical corporate behaviour, while rewarding employees for their integrity and for providing valuable information to the management on deviant practices \(e) the central government has been empowered to prescribe restrictions in respect of layers of subsidiaries for any class or classes of companies(f) new provisions suggested for allowing re-opening of accounts in certain cases with due safeguards (iv) additional disclosure norms:(a) new disclosures like development and implementation of risk management policy, corporate social responsibility policy, manner of formal evaluation of performance of board of directors and individual directors included in the board report in addition to disclosures proposed in such report in the companies bill, 2009(b) consolidation of accounts: accounts of foreign subsidiaries to be attached for filing them with the registrar subsidiary to include ''associate'' and ''joint venture'' for the purpose of consolidation(c) every listed company required to file a return with the registrar regarding change in the shareholding position of promoters and top ten shareholders of such company (v) facilitating raising of capital by companies:(a) provisions for offer or invitation for subscription of securities on private placement basis revised to ensure more transparency and accountability(b) companies being allowed to issue equity shares with differential voting rights(c) central government empowered to prescribe, through rules, the requirements in connection with provision for money made by a company for allowing purchase of company's shares by its employees under a scheme for their benefit disclosure to be made in the board's report in respect of voting rights not exercised directly by the employees in respect of shares to which the scheme relates (vi) audit accountability:(a) rotation of auditors and audit firms being provided for (b) stricter and more accountable role for auditor being retained provisions relating to prohibiting auditor from performing non-audit services revised to ensure independence and accountability of auditor subject to the maximum prescribed number of companies, the members of a company may resolve that the auditor or audit firm of such company shall not become auditor in companies beyond the number as may be specified in such resolution(c) national advisory committee on accounting and auditing standards(nacaas) proposed to be renamed as national financial reporting authority (nfra) with a mandate to ensure monitoring and compliance of accounting and auditing standards and to oversee quality of service of professionals associated with compliancethe authority shall consider the international financial reporting standards and other internationally accepted accounting and auditing policies and standards while making recommendations on such matters to the central government which will improve the competitiveness of our companies with other companies the authority is also proposed to be empowered with quasi judicial powers to ensure independent oversight over professionals(d) cost audit: cost records to be mandated for companies engaged in production of such goods or rendering of such services as may be prescribed the concept of ''cost auditing standards'' being mandated(e) secretariat audit: prescribed class of companies would need to attach with the board's report, a secretarial audit report given by a company secretary in practice (vii) managerial remuneration:(a) provisions relating to limits on remuneration provided in the existing act (11% of net profits) included(b) for companies with no profits or inadequate profits remuneration shall be payable in accordance with new schedule of remuneration annexed to the bill and in case a company is not able to comply with such schedule, approval of central government would be necessary individual limits for remuneration enhanced in the bill vis-à-vis the existing limits concept of payment of periodic fees which shall include sitting fees to directors being included in the bill(c) independent directors (ids) not to get stock option: ids not to get stock option but may get payment of fees and profit linked commission subject to limits specified in the bill/rules central government may prescribe amount of fees under the rules (viii) facilitating mergers/ acquisitions:simplified procedure (through confirmation by the central government), laid down for compromise or arrangement including for merger or amalgamation of holding companies and wholly owned subsidiary(ies), between two or more small companies and for such other class or classes of companies as may be prescribed this would result into faster decisions on approvals for mergers and amalgamations resulting effective restructuring in companies and growth in the economy for other companies, such matters would be approved by tribunal (ix) protection for minority shareholders:(a) exit option to shareholders in case of dissent to change in object for which public issue was made(b) specific disclosure regarding effect of merger on creditors, key managerial personnel, promoters and non-promoter shareholders is being provided the tribunal is being empowered to provide for exit offer to dissenting shareholders in case of compromise or arrangement(c) the board may have a director representing small shareholders who may be elected in such manner as may be prescribed by rules (x) investor protection:(a) acceptance of deposits from public subject to a more stringent regime (b) central government to have power to prescribe class or classes ofcompanies which shall not be permitted to allow use of proxies the bill also to have provisions to provide that a person shall have proxies for such number of members /such shares as may be prescribed(c) provisions for class action suits revised to provide minimum number of persons who may apply for such suits safeguards against misuse of these provisions also being included(xi) serious fraud investigation office (sfio): statutory status to sfioproposed investigation report of sfio filed with the court for framing of charges shall be treated as a report filed by a police officer sfio shall have power to arrest in respect of certain offences of the bill which attract the punishment for fraud those offences shall be cognizable and the person accused of any such offence shall be released on bail subject to certain conditions provided in the relevant clause of the bill definition of 'fraud'provided stringent penalty provided for fraud related offences(xii) woman director: at least one woman director being made mandatory in the prescribed class or classes of companies(xiii) national company law tribunal (tribunal): keeping in view the supreme court's judgment, on the 11th may, 2010 on the composition and constitution of the tribunal, modifications relating to qualification and experience, etc, of the members of the tribunal have been made appeals from tribunal shall lie to national company law appellate tribunal(xiv) mediation and conciliation panel: it is proposed to create and maintain as''mediation and conciliation panel'' for facilitating mediation and conciliation between parties during any proceeding under the proposed legislation before the central government or tribunal(xv) central government to have power to exempt/modify provisions of the act for a class or classes of companies in public interest relevant notification shall be required to be laid in draft form in parliament for a period of thirty days6 the notes on clauses explain, in detail, provisions of the bill 7 the bill seeks to achieve the above objectivesnew delhi;m veerappa moilythe 2nd december, 2011 notes on clausesclause 1 - it has been made flexible to enforce various sections on different dates and different states sub-clause (4) makes position clear as to application of this actclause 2 - this clause corresponds to section 2 of the companies act, 1956 and defines various expressions used in the billclause 3 - this clause corresponds to section 12 of the companies act, 1956 and seeks to provide minimum number of persons to form a public or private (including one person company) (opc) for any lawful purpose, by subscribing their names to the memorandum memorandum of opc shall indicate the name of a person who shall become member, in the event of death of the single member however, the other person whose name would reflect in the memorandum of opc shall be required to give prior written consent in this regard he shall have the right to withdraw his consent it shall be duty of the member of the opc to intimate the registrar any change in name of person already mentioned in memorandum the companies formed under this clause may be limited by shares or limited by guarantee or an unlimited companyclause 4 —this clause corresponds to sections 13, 14 and 20 of the companies act,1956 and seeks to provide for the requirements with respect to memorandum of a company the memorandum shall mention the name of a company, state in which the registered office of the company is to be situated, objects for which the company is proposed to be incorporated, liability of members, etc the memorandum of a company shall be in respective forms as per tables a,b,c,d and e specified in schedule i any provision in memorandum or articles of a company not having share capital shall not give any right to participate in the divisible profits otherwise than as member of the companyclause 5— this clause corresponds to sections 26, 27, 28 and 29 of the companies act, 1956 and seeks to provide the contents and model of articles of association the articles may contain an entrenchment provision also model articles for different types of companies shall be as per tables f,g,h,i and j in schedule iclause 6 - this clause corresponds to section 9 of the companies act, 1956 and seeks to provide that the provisions of this act shall have overriding effect on provisions contained in memorandum and articles of the companyclause 7— this clause corresponds to section 33 of the companies act, 1956 and seeks to provide for the procedure to be followed for incorporation of a company memorandum and articles of association duly signed, a declaration in a prescribed form to the effect that the requirements of the act in respect of registration have been complied with, affidavit from the subscribers to the memorandum and from the first directors, to the effect, that they are not convicted and have not been found guilty of any fraud or misfeasance, etc, under this act during the last five years, complete details of name, address of the company, particulars of every subscriber and the persons named as first directors shall be given to the registrar thereafter, the registrar of companies shall register the company and issue a certificate of incorporation and allot a corporate identity number the persons furnishing false information in this connection shall be liable for punishment and the company which is registered shall be liable for punishment prescribed for fraud where a company has got incorporated by furnishing any false or incorrect information, the tribunal may pass order as it thinks fit including removal of name from register or winding up of the companyclause 8 - this clause corresponds to section 25 of the companies act, 1956 and empowers the central government to register an association as limited company having charitable objects to promote commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment, etc, without adding to its name the words 'limited', 'private limited' the profit or any income of the company shall be used for promoting the objects of the company payment of dividend to members is prohibited the central government shall issue license on such terms and conditions as shall be prescribed by it for registration of such companies and these companies shall be subject to certain exemptions and restrictions in the event of any violation of conditions on which a licence is issued, the central government may revoke the licence and order the company, after giving a reasonable opportunity of being heard, to be wound up or amalgamated with another company having similar objects a firm may be allowed to become a member of such company where it is proved that the affairs of the company were conducted fraudulently, penal action for fraud shall be applicable to every officer of the companyclause 9 - this clause corresponds to section 34 of the companies act, 1956 and seeks to provide for the effect of registration of a company the clause provides that from the date of incorporation, the subscribers become the members of the company the company shall be a body corporate with a name, capable of exercising all the functions of an incorporated company under this act and shall have perpetual succession and a common seal with power to acquire, hold and dispose of property, to contract, to sue and be sued, by the said nameclause 10 - this clause corresponds to section 36 of the companies act, 1956 and seeks to provide for the effect of memorandum and articles whereby the memorandum and articles shall be binding on the company and the members to the extent as if they respectively had been signed by the company and by each member all moneys payable by members to the company shall be debt due from him to the companyclause 11 - this clause corresponds to section 149 of the companies act, 1956 and seeks to provide that the company having a share capital shall not commence business or exercise any borrowing powers unless a declaration is filed with registrar by a director or subscriber that every subscriber to the memorandum has paid the value of shares taken by him (minimum five lakh rupees for public company and minimum one lakh rupees for private company) and the company has filed with the registrar the verification of its registered office the registrar of companies may remove the name of the company from the register, if a company has not filed declaration within a period of one hundred and eighty two days of the date of incorporation and if he has reasonable cause to believe that the company is not carrying on business or operationsclause 12 - this clause corresponds to sections 146 and 147 of the companies act,1956 and seeks to provide that from the date of incorporation and at all times thereafter, a company shall have a registered office capable of receiving and acknowledging all communications and notices addressed to it in case of any change of the registered office, the company has to give notice to the registrar of companies within a stipulated time where a company has changed its name in last two years, the company shall paint or affix its former names along with the name of the company a private company which is opc shall mention the words "opc" in bracket below its name any change of registered office outside the local limits of any city, town or village shall be done only with the approval of members through special resolution any change of registered office of a company from the jurisdiction of one registrar to another registrar in the same state shall require confirmation of the regional director the clause further provides that if a default is made in complying with the requirement in this clause the company and every officer of the company shall be liable to penaltyclause 13 - this clause corresponds to section 16 of the companies act, 1956 and seeks to provide that a company may alter the provisions of its memorandum with approval of the members through special resolution no alteration shall have any effect unless it is registered with the registrar where there is change in the name of a company, the registrar shall issue a fresh certificate of incorporation any alteration of the memorandum relating to the place of registered office from one state to another shall be effective only with the approval of the central government on an application filed to it a copy of the order to this effect has to be filed with the registrar this clause further provides that a company, which has raised money from public for one or more objects mentioned in the prospectus and is still having some unutilised money shall not change its object unless a special resolution is passed and exist option is given to dissenting shareholders clause 14 - this clause corresponds to section 31 of the companies act, 1956 and seeks to provide for alteration of articles a company may alter its articles including alterations having effect of conversion of a private company into a public company or a public company into private company with the approval of members through special resolution approval of the tribunal shall be also required in case of conversion of a public company into a private company a copy of order of tribunal shall be filed with the registrar together with a printed copy of the altered articlesclause 15 - this clause corresponds to section 40 of the companies act, 1956 and seeks to provide that every alteration made in the memorandum or articles of a company shall be noted in every copy of the memorandum and articles of associationclause 16 - this clause corresponds to section 22 of the companies act, 1956 and seeks to empower the central government to give direction to the company to rectify its name if the name registered is identical with or too nearly resembles the name, by which a company in existence has been previously registered, or the name is identical with or too nearly resembling to a registered trade mark the clause further provides that if default is made in complying with any direction given under sub-clause (1) the company and every officer who is in default shall be punishable with fineclause 17 - this clause corresponds to section 39 of the companies act, 1956 and seeks to provide that every company shall on being so requested by a member, send copies of memorandum, and articles of association, agreement or resolution on payment of feesclause 18 - this clause corresponds to section 32 of the companies act, 1956 and seeks to provide that a company may convert itself in some other class of company by altering its memorandum and articles of association the conversion shall not affect any debts, liabilities, obligations or contracts incurred or entered into by the companyclause 19 - this clause corresponds to section 42 of the companies act, 1956 and seeks to provide that subsidiary company shall not hold shares in its holding company and no holding company shall allot or transfer its shares to any of its subsidiary companies and any such allotment or transfer of shares of a company to its subsidiary company shall be voidclause 20 - this clause corresponds to section 51, 52 and 53 of the companies act,1956 and seeks to provide for the mode in which documents may be served on the company, on the members and also on the registrarsclause 21 - this clause corresponds to section 54 of the companies act, 1956 and seeks to provide for authentication of documents, proceedings and contracts, etcclause 22 - this clause corresponds to section 47 of the companies act, 1956 and seeks to provide for execution of bills of exchange, hundi, promissory notes and other deeds a company may, by writing under its common seal, authorise any person as its attorney to execute deeds on company's behalf deed signed by such an attorney on behalf of the company and under his seal shall bind the company and have same effect as if it were made under its common sealclause 23 - this is a new clause and seeks to provides the ways in which a public company or a private company may issue securitiesclause 24 - this clause corresponds section 55a of the companies act, 1956, and seeks to provide that issue and transfer of securities and non-payment of dividend by listed companies or those companies which intend to get their securities listed shall be administered by the securities and exchange board of india and in other cases shall be administered by central governmentclause 25— this clause corresponds to section 64 of the companies act, 1956 and seeks to provide that any document by which the offer or sale of shares or debentures to the public is made shall for all purposes be treated as prospectusclause 26 - this clause corresponds to section 56 and schedule ii of the companies act, 1956 and seeks to provide for the matters to be stated and information to be given in the prospectus prospectus shall not be issued before the date of its publication no statement of an expert shall be included in the prospectus unless he is engaged or interested in formation of a company and has given his written consent to the issue of prospectus before the delivery of a copy of the prospectus to the registrar for registration registrar shall register the prospectus only after the registration requirements are complied with prospectus is to be issued within ninety days from the date of delivery of prospectus to the registrar the clause further provides that if the prospectus is issued in contravention of this clause the company and every person who is knowingly a party to the issue of such prospectus shall be punishable with fine on imprisonmentclause 27 - this clause corresponds to section 61 of the companies act, 1956 and seeks to provide a company shall not vary terms of a contract referred to in the prospectus or objects for which the prospectus was issued except by way of special resolution dissenting shareholders shall be given an exit offer by promoters or controlling shareholders subject to such manner and conditions as may be specified by securities and exchange board of indiaclause 28— this is a new clause and seeks to provide for that member or members of a company, in consultation with board of directors, may offer a part of their holding of shares to the public the document by which the offer of sale to the public is made shall be treated as prospectus issued by companyclause 29 - this clause corresponds to section 68b of the companies act, 1956 and seeks to provide that public company making public offer and such other class or classes of companies as may be prescribed, shall issue the securities only through dematerialised form other companies may issue securities in physical on in dematerialised formclause 30 - this clause corresponds to section 66 of the companies act, 1956 and seeks to provide that where an advertisement of any prospectus of a company is published, it shall specify therein the contents of memorandum as regards to the objects, the liability of members and the amount of share capital, the names of the signatories and the number of shares subscribed by them and also its capital structure, etcclause 31 - this clause corresponds to section 60a of the companies act, 1956 and seeks to provide that any class or classes of companies prescribed by the securities and exchange board of india may file a shelf prospectus with the registrar of companies at the stage of the first offer of securities for a period of one year no further issue of prospectus is required in respect of a second or subsequent offer of securities included in such prospectus for a period of one year company shall also file information memorandum on new charges created, of any change in financial position with the registrar of companies prior to the issue of a second or subsequent offer under shelf prospectusclause 32 - this clause corresponds to section 60b of the companies act, 1956 and seeks to provide for issue of red-herring prospectus prior to issue of a prospectus a company proposing to issue a red herring prospectus shall file it with registrar at least three days prior to the opening of the subscription list and the offer upon closing of the offer of securities, the details of information to be filed with the registrar and securities and exchange board of indiaclause 33 - this clause corresponds to sub-section (3) of section 56 of the companies act, 1956 and seeks to provide that every form of application issued for purchase of any securities of a company shall be accompanied by an abridged prospectus if a company makes any default the company shall be punishable with fineclause 34 - this clause corresponds to section 63 of the companies act, 1956 and provides for criminal liability for mis-statements in prospectus the person who authorises the issue of such prospectus shall be punishable for fraudclause 35 - this clause corresponds to section 62 of the companies act, 1956 and seeks to provide that in case any person subscribes for securities on the basis of misleading statements or inclusion or omission of any matter in the prospectus resulting in any loss or damage, the person who has authorised the issue of such prospectus or a director, promoter, whosoever is liable, shall have to compensate every person who has sustained such loss or damageclause 36 - this clause corresponds to section 68 of the companies act, 1956 and seeks to provide that such persons who fraudulently induces persons to invest money by making statement which is false, deceptive, misleading or deliberately conceals any facts, shall be punishable for fraudclause 37 - this is a new clause which seeks to provide that a suit may be filed or any other action may be taken by any person, group of persons or any association of persons who have been affected by any misleading statement or the inclusion or omission of any matter in the prospectusclause 38 - this clause corresponds to section 68a of the companies act, 1956 and seeks to provide that those persons who apply in fictitious name or makes multiple applications or otherwise induces companies to allot shares in fictitious name, shall be punishable for fraud the clause further provides that court may order disgorgement of any gains and seizure and disposal of such securitiesclause 39 - this clause corresponds to section 69 of the companies act, 1956prohibiting allotment of securities where the minimum amount has not been subscribed, the amount is to be refunded to all the applicants within a given time frame this clause further provides that whenever a company having a share capital makes any allotment of securities, it shall file return of allotment with the registrar in case of any default under sub-clause (3) and (4) the company and its officers who are in default shall be liable to fineclause 40 - this clause corresponds to section 73 of the companies act, 1956 and seeks to provide that prospectus has to mention the name of the stock exchange where the securities are to be dealt with any allotment without permission of the stock exchange shall be void all moneys received on application from the public for subscription to the securities shall be kept in a separate bank account after allotment of shares, a return shall be filed with the registrar in case of default, the company and every officer of the company who is in default shall be punishable with fine or with imprisonment or with both a company may pay commission to any person in connection with the subscription to its securitiesclause 41 - this is a new clause which provides that a company may issue global depository receipts to be dealt with in a depository mode in any foreign countryclause 42 - this clause corresponds to section 67 of the companies act, 1956 and seeks to provide that without prejudice to provisions of section 25, a company may make an offer or invitation of securities by way of private placement the clause further provides the conditions through which invitation can be made the clause also provides that no fresh allotment to be made unless earlier allotment is completed, provisions of this act, scra, sebi shall apply to this placement the monies payable on subscription of securities not to be made in cash the clause further provides that company shall allot securities within 60 days from date of receipt of application money, if does not allot within 60 days then repay application money within 15 days after expiry of 60 days and if company does not pay money after the aforesaid period the company is liable to repay the money with interest at 12 % per annum from expiry of 60th day the monies received shall be kept in separate bank account with a scheduled bank and to be used for some specific purposes only the clause further provides that offer to be made only to such persons whose name is recorded prior to the invitation to subscribe, and complete record of offer and acceptance shall be given to registrar within period of 30 days of circulation of private placement offer public at large about the offer and file a return of allotment with registrar in the prescribed manner the clause further provides that central government may make rules under this clauseclause 43 - this clause corresponds to section 85 and seeks to provide that there shall be two kinds of share capital namely equity share capital ( includes equity shares with voting rights or equity shares with differential rights as to dividend, voting or otherwise) and preference share capital preferential share capital carries a preferential right with respect to payment of dividend and also for repayment of capital at the time of winding upclause 44 - this clause corresponds to section 82 of the companies act, 1956 and seeks to provide that the shares and debentures are movable property transferable in a manner provided in the articles of a companyclause 45 - this clause corresponds to section 83 of the companies act, 1956 and seeks to provide that every share in a company having a share capital shall be distinguished by distinctive number this clause does not apply to shares held with the depositoryclause 46 - this clause corresponds to section 84 of the companies act, 1956 and seeks to provide that a certificate issued by a company shall be prima facie evidence of the title of the person to such shares it provides the manner for issuance of duplicate share certificate and the particulars to be entered in the register of members if a company issues duplicate shares with an intention to defraud public, penal provisions for fraud would be attracted for such violationsclause 47 - this clause corresponds to section 87 of the companies act, 1956 and seeks to provide that every member who is a holder of equity share shall have the right to vote on every resolution placed before the company his voting right on a poll shall be in proportion to his share in the paid up equity shareclause 48 - this clause corresponds to section 106 and 107 of the companies act,1956 and seeks to provide that where share capital is divided into different classes of shares, the rights attached to any class of shares may be varied with the written consent of the holders of not less than three-fourths of the issued shares or by special resolution where the holders of ten per cent of the issued share capital did not consent to such variation, they may apply to tribunal to have the variation cancelled if default is made in complying with the provision of this clause the company and every officer of the company who is in default shall be punishable with fine or imprisonment or with bothclause 49 - this clause corresponds to section 91 of the companies act, 1956 and seeks to provide that where any calls for further share capital are made on the shares of a class, such call shall be made on uniform basis on all shares falling under that classclause 50 - this clause corresponds to section 92 of the companies act, 1956 and seeks to provide that a company can accept from any member the whole or a part of the amount remaining unpaid on any shares without being called up and he will not be entitled to any voting rights on the amount paid by him unless amount has been called upclause 51 - this clause corresponds to section 93 of the companies act, 1956 and seeks to provide that a company, if authorised by its articles, pay dividends in proportion to the amount paid up on each shareclause 52 - this clause corresponds to section 78 of the companies act, 1956 and seeks to provide that a company shall transfer the amount received by it as securities premium to securities premium account and state the means in which the amount in the account can be applied provisions on reduction of share capital shall apply to securities premium account this clause also seeks to provide the purpose for which securities premium account can be applied by companiesclause 53 - this clause corresponds to section 79 of the companies act, 1956 and seeks to provide that companies are prohibited from issuing shares at a discount except in the case of issue of sweat equity shares and also provides that where a company contravenes the provisions of this clause, the company and every officer of the company in default shall be punishable with fine and imprisonmentclause 54 - this clause corresponds to section 79a of the companies act, 1956 and seeks to provide that on fulfilling certain conditions, a company may issue sweat equity shares of a class of shares already issued the rights, limitations, restrictions and provisions applicable to equity shares shall be applicable to sweat equity shares and holders of such shares rank pari passu with other equity shareholdersclause 55 - this clause corresponds to section 80 and 80a of the companies act,1956 and seeks to provide that no company limited by shares shall issue irredeemable preference shares a company may issue preference shares for a period not exceeding twenty years however, for infrastructural project preference shares can be issued for more than twenty yearsclause 56 - this clause corresponds to section 108, 109b and 110 of the companies act, 1956 and seeks to provide that transfer of securities/interest of a member not to be registered except on production of instrument of transfer duly stamped, dated and executed in case of loss of the instrument, the company may register the transfer in terms of indemnity where an application relates to partly paid up shares, the transfer shall not be registered unless a notice is issued to the transferee in case of refusal of transfer of shares, transferee may appeal to the tribunalclause 57 - this clause corresponds to section 116 of the companies act, 1956 and seeks to provide penalty for a person who deceitfully personates the owner of any share or interestclause 58 - this clause corresponds to sub-sections (1) and (2) of section 111 of the companies act, 1956 and seeks to provide for that if a company without sufficient cause refuses to register the transfer of shares, appeal against such refusal shall lie to the tribunal it is also provided that the securities of a public company, etc, are freely transferable subject to the provisions that any contract or arrangement between two or more persons shall be enforceable as contractclause 59 - this clause corresponds to section 111a of the companies act, 1956and seeks to provide that if the name of any person has been entered in or has been omitted from the register of members without sufficient cause, the member or the person aggrieved may appeal to the tribunal or to a competent court outside india in respect of foreign members or debenture holders the tribunal may either dismiss the appeal or direct for rectification of register, transfer or transmission the tribunal may also direct to pay damages to the aggrieved party the clause also provides for the provisions of this clause shall not restrict the right of a holder of shares or debentures, to transfer such shares or debentures and any person acquiring such shares or debentures shall be entitled for voting rights unless suspended by the tribunal the tribunal may direct any company or a depository to set right any contravention and rectify register the clause further provides that if any default is made in complying with the order of the tribunal, the company and every officer who is in default shall be punishable with fine and imprisonmentclause 60 - this clause corresponds to section 148 of the companies act, 1956 and seeks to provide that where any notice, advertisement or other official publication, or any business letter, etc, of a company contains a statement of the amount of the authorised capital of the company, such notice, advertisement or other official publication, or such letters billhead or letter paper shall also state the subscribed and paid up capital and the clause further provides penalty for the company and every officer of company in default in case of any contraventionclause 61 - this clause corresponds to section 94 of the companies act, 1956 and seeks to provide that a limited company having a share capital may alter its capital clause of memorandum in its general meetingclause 62 - this clause corresponds to section 81 of the companies act, 1956 and seeks to provide that a company having a share capital can increase its subscribed capital by the issue of further shares to its existing members by sending a letter of offer, containing certain conditions, to employees through employee's stock option, subject to approval by special resolution, or to the general public, after having the shares valued by registered valuers this provision does not apply to conversion of debentures or loans into shares of the company in certain casesclause 63 - this is a new clause, which provides for condition and manner of issue of fully paid-up bonus shares to its membersclause 64 - this clause corresponds to sections 95 and 97 of the companies act,1956 and seeks to provide for the companies to give notice to registrar of alteration or increase of share capital along with an altered memorandumclause 65 - this clause corresponds to section 32 of the companies act, 1956 and seeks to provide that an unlimited company having a share capital may be converted as a limited company by increasing the nominal amount of each share this clause further provides that the company can not call unpaid portion of share capital except in the event of winding upclause 66 - this clause corresponds to sections 100 to 105 of the companies act,1956 and seeks to provide that on the confirmation by the tribunal a limited company may provides that the tribunal shall give notice to the registrar, central government and to the sebi and consider the representations received in this behalf the company shall deliver a certified copy of the order of the tribunal to the registrar who shall issue a certificate to this effect to the company the clause does not apply to buy back of its own securities by a company the clause further provides that if a company does not comply with the provision of this clause the company shall be punishable with fineclause 67 - this clause corresponds to section 77 of the companies act, 1956 and seeks to provide the restrictions on purchase by companies or giving loans to others for purchase of its own shares this clause further provides that the company's right to redeem any preference shares issued by it is not affected by such restriction if a company contravenes the provision of this clause the company and every officer in default shall be punishable with fine and imprisonmentclause 68 - this clause corresponds to section 77a of the companies act, 1956 and seeks to provide that a company may purchase its own shares out of its free reserves, the securities premium account or from the proceeds of the issue of any shares or other specified securities the clause provides for the conditions to be fulfilled for buy-back of securities every buy-back should be completed within one year from the date of passing of the special resolution a declaration of solvency has to be filed by the company to the registrar and sebi before the buy-back is proposed after completion of buy-back a return has to be filed with roc and securities and exchange board of india after buying back, the company shall physically destroy all the shares if a company makes any default in complying with the provisions of this clause the company and every officer in default shall be punishable with fine and imprisonmentclause 69 - this clause corresponds to section 77aa of the companies act, 1956and seeks to provide that in case of buy-back of shares out of free reserves, a sum equal to the nominal value of the shares so purchased shall be transferred to capital redemption reserve account the said account may be applied in paying up unissued shares of the company to be issued to the company as fully paid bonus sharesclause 70 - this clause corresponds to section 77b of the companies act, 1956 and seeks to prohibit buy-back through any subsidiary company, through any investment company or through such company which has defaulted in making repayment of deposits, interest thereon, redemption of debentures, payment of dividend, etcclause 71 - this clause corresponds to sections 117, 117a, 117b and 117c of the companies act, 1956 and seeks to provide that a company may issue debentures with an option to convert into shares, wholly or partly, at the time of redemption but cannot issue debentures with voting rights on issue of debentures, the company shall create a debenture redemption reserve account the company shall not issue prospectus to more than five hundred persons without appointing a debenture trustee the duty of the debenture trustee is to protect the interest of the debenture holders and redress their grievances this clause further provides that in the event of the failure of the company in making repayment of maturity value of debentures or to pay interest, the tribunal may, on an application, pass such order to make the payment to the matured debenture holders and interest due thereon if any default is made in complying with the order of the tribunal under this clause every officer of the company shall be punishable with fine or imprisonment or bothclause 72 - this clause corresponds to section 109a of the companies act, 1956and seeks to provide that every share holder or debenture holder may appoint a nominee or a joint nominee who shall be the owner of the instrument in the event of death of the holder or the joint holder unless the nomination is varied or cancelledclause 73 - this clause corresponds to section 58a of the companies act, 1956 and seeks to provide that no company shall invite, accept or renew deposits from public it can do so only from members of the company subject to fulfillment of certain conditions in case of failure to repay the deposit or interest thereon the tribunal may order for repayment or pay for any loss or damage incurred by himclause 74 - this is a new clause which seeks to provide that the deposit accepted before this act comes into force by the company or any interest due thereon shall be repaid within one year extension of time for repayment may be granted by the tribunal on an applicationclause 75 - this is a new clause, which seeks to provide that in case the company fails to pay the deposit or any interest thereon and it is proved that the deposits had been accepted with intent to defraud the depositors, every officer who was responsible for acceptance of deposits shall be personally responsible, without any limitation of liability for all losses or damages incurred by the depositorsclause 76 - this is a new clause, which seeks to provide that a public company, having net worth and turnover of certain amount as provided in the clause, may accept deposits from persons other than its members subject to compliance with provisions of clause 73 (2) and the rules, to be prescribed, after consultation with the reserve bank of indiaclause 77 - this clause correspond to section 125 of the companies act, 1956 and seeks to provide that a company creating a charge within or outside india, shall, register the said charge with the registrar within thirty days the registrar after registering the charge, shall issue a certificate of registration the liquidator or any other creditor shall not take into account any charge created unless registered with the registrarclause 78 - this clause corresponds to section 134 of the companies act 1956, seeks to provide that where a company fails to register the charge, the person in whose favour the charge is created may apply to the registrar for registration of chargesclause 79 - this clause corresponds to sections 127 and 135 of the companies act, 1956 and seeks to provide that the requirement of registering the charge shall also apply to a company acquiring any property subject to charge or any modification in terms and conditions of any charge already registeredclause 80 - this clause corresponds to section 126 of the companies act, 1956 and seeks to provide that if any person acquires a property, assets or undertaking for which a charge is already registered, it would be deemed that he has complete knowledge of charge from the date the charge is registeredclause 81 - this clause corresponds to section 130 of the companies act, 1956 and seeks to provide that the registrar shall, in respect of every company, keep a register containing particular of charges so registered the register shall be open for inspection on payment of feeclause 82 - this clause corresponds to section 138 of the companies act, 1956 and seeks to provide that a company shall intimate to registrar about the payment or satisfaction in full of any charge so registered the registrar shall issue notice to holder of the charge calling a show cause why payment or satisfaction should not be recorded and in case of no reply, the memorandum of satisfaction shall be entered in the register of chargesclause 83 - this is a new clause, which seeks to provide that the registrar on being satisfied may enter in the register of charges that the charges are satisfied and also inform affected parties about the satisfaction in the absence of intimation from the companyclause 84 - this clause corresponds to section 137 of the companies act, 1956 and seeks to provide that if a person obtains an order for the appointment of a receiver or a person to manage the property subject to charge, he shall, within thirty days, give notice to the company and the registrar about such an order the person appointed as receiver shall also give notice to the company and the registrar on his ceasing to hold such appointmentclause 85 - this clause corresponds to section 143 of the companies act, 1956 and seeks to provide that every company shall keep a register of charges at its registered office and this register shall be open for inspection during business hours by members or creditors without fee and by any other person with fee a copy of instrument creating the charge shall also be kept at the registered office of the company along with the register of chargesclause 86 - this clause corresponds to section 142 of the companies act, 1956 and seeks to provide for the penal provisions for contravening any of the provisions of the chapterclause 87 - this clause corresponds to section 141 of the companies act, 1956 and seeks to provide that central government on being satisfied that on omission to file with registrar any particulars of charge created or modified, omission of registration within time period or omission to give intimation about satisfaction of charge, omission or misstatement of any particular of charge created, modified and memorandum of satisfaction or any other entry was accidental or due to inadvertence or other sufficient cause or in nature of being prejudice to creditors and shareholders, on any ground, it is just and equitable to grant relief it may on the application direct the extension of time for filling particulars of creating charge, any modification or satisfaction of charge and misstatement to be rectified the clause further provides that the order for extension of time shall not be prejudice any right in the property before the charge is actually registeredclause 88 - this clause corresponds to sections 150, 151, 152 and 152a of the companies act, 1956 and seeks to provide that every company shall keep and maintain the register of members, register of debenture holders and register of any other security holders this clause further provides that every register shall include an index of the name a company, if authorised by its articles, may keep a foreign register outside india this clause also provides that a company shall file with the registrar, the particulars and situation of place where the register is to be kept and any changes in the situation of such place if a company does not maintain the register under this clause the company and every officer of the company who is in default shall be punishable with the fineclause 89 - this clause corresponds to section 187c of the companies act, 1956 and seeks to provide that a declaration is to be given to the company by any person who is a member but not holding the beneficial interest in such shares further, the person holding beneficial interest shall declare the nature of his interest and other particulars on those shares to the company any changes in the beneficial interest is also to be declared this clause also provides that the company shall make a note of all the declaration made to it and file a return with registrar where a company required to file a return under clause 403 the company and every officer of the company in default shall be punishable with fineclause 90 - this clause corresponds to section 187d of the companies act, 1956and seeks to provide that the central government may appoint one or more competent persons to investigate and report as to the beneficial ownership with regard to any share or class of sharesclause 91 - this clause corresponds to section 154 of the companies act, 1956 and seeks to provide that a company may close the register of members, debenture holders and other security holders by giving minimum seven days notice or such lesser period as may be specified by sebi if default is made in complying with the provisions of this clause the company and every officer of the company shall be punishable with fineclause 92— this clause corresponds to sections 159, 161 and 162 of the companies act, 1956 and seeks to provide that every company shall prepare an annual return containing certain particulars such as registered office, principal business activities, particulars of holding, subsidiary and associate companies, its shares, debentures and other securities, members, promoters, key managerial personnal alongwith changes therein, penalty or punishment imposed in company directors appeals made against such penalty or punishment details of shares held by or on behalf of foreign institutional investors etc the annual return shall be signed by a director and a company secretary where there is no company secretary the return shall be signed by the company secretary in whole-time practice in case of a listed company or the company having such paid-up capital and turnover as may be prescribed, annual return shall be required to be certified by company secretary in practice in the prescribed form company secretary in practice shall be punished if he certifies otherwise than in conformity of this section or relevant rulesclause 93 - this is a new clause which seeks to provide that in case of change in number of shares held by promoters and top ten shareholders in a listed company, then such company shall file a return with the registrar about such changeclause 94 - this clause corresponds to section 163 of the companies act, 1956 and seeks to provide that register of members, debenture holders and any other security holders and copies of annual returns shall be kept at the registered office and can also be kept at any place other than registered office where more than one-tenth of total number of members reside, if approved by special resolution the clause provides for central government to have power to prescribe rules for the period for which the registers, returns, records etc have to be kept this clause further provides that the registers and the indices shall be open to inspection and any person can take extracts during any business hours without payment of any fee or can also get copies thereof with payment of fee and if it is refused the company and every officer of the company shall be punishable with fine the central government may by order direct inspection of documents and to have an extract or copy of such registers by any personclause 95— this clause corresponds to section 164 of the companies act, 1956 and seeks to provide that the registers, indices and copies of annual return shall be prima facie evidence of any matterclause 96— this clause corresponds to section 166 of the companies act, 1956 and seeks to provide for that every company other than one person company in addition to any other meeting shall hold a general meeting as its annual general meeting there should not be a gap of more than fifteen months between two annual general meetings this clause further provides that first annual general meeting shall be held within a period of nine months from the closing of first financial year and within a period of six months of closure of financial years in all other cases this clause also provides that annual general meeting shall be called on any day which is not a national holiday and may be held either at registered office of a company or at some other place within the city, town or village where the registered office of the company is situated the clause defines the term 'national holiday' the central government may exempt any company from compliance of this clause subject to any conditionsclause 97— this clause corresponds to section 167 of the companies act, 1956 and seeks to provide that in case of any default in holding annual general meeting of a company, the tribunal on the application of any member of the company, call or direct the calling of an annual general meeting the tribunal may also direct that one member of the company present in person or by proxy shall be deemed to constitute a meetingclause 98— this clause corresponds to section 186 of the companies act, 1956 and seeks to provide that if for any reason, it is impracticable to call a meeting of a company other than an annual general meeting, the tribunal shall have the power to order for calling the meeting either suo motu or on the application of any director of the company or of any member of a companyclause 99— this clause corresponds to section 168 of the companies act, 1956 and seeks to provide that if any default is made in holding a general meeting of the company or in complying with any directions of the tribunal, the company and every officer of the company who is in default shall be punishable with fineclause 100— this clause corresponds to section 169 of the companies act, 1956 and seeks to provide that the board may call an extraordinary general meeting on its own and shall call such meeting in case of company having share capital on a request from such number of members holding not less than one-tenth of paid-up capital of the company in case of company not having a share capital, such number of members having not less than one-tenth of the total voting power of all the members may call an extraordinary general meeting in case the board does not call the meeting within twenty-one days, requisitionists may call the meeting this clause further provides that any reasonable expenses incurred by the requisitionists shall be reimbursedclause 101— this clause corresponds to sections 171 and 172 of the companies act,1956 and seeks to provide that general meeting may be called by giving not less than clear twenty-one days' notice to all members, legal representative of any deceased member or the assignee of the insolvent members, the auditors and directors in writing or through electronic mode a shorter notice may also be given with the consent of ninety-five per cent of the members entitled to voteclause 102— this clause corresponds to section 173 of the companies act, 1956 and seeks to provide that a statement setting out all the material facts concerning each item of special business to be transacted at a general meeting, shall be annexed to the notice calling such meeting this clause further provides for the businesses that shall be deemed to be special in case of non-disclosure or insufficient disclosure in any statement made by promoter, director, manager or other key managerial personnel which results into any benefit for themselves or their relatives, shall have to be compensated penal provision has been provided for any default in complianceclause 103— this clause corresponds to section 174 of the companies act, 1956 and seeks to provide that unless the articles of the company provide for a larger number, in case of a public company the quorum shall depend on number of members as on the date of a meeting in case such number is not more than one thousand, then quorum shall be five members personally present if such number is more than one thousand but upto five thousand, then quorum shall be fifteen members personally present if such number exceeds five thousand, then thirty members personally present shall be the quorum in case of a private company, two members personally present shall be the quorum for a meeting this clause further provides that if the quorum is not present within half-an-hour, the meeting shall stand adjourned for the next week at the same time and place or such other time and place as decided by the board however, the meeting called by requisitionist shall stand cancelled in the absence of quorum in case of adjournment or of change of day, time and place of meeting, the company shall give not less than three days' notice to the members where quorum is not present in the adjourned meeting also, the members present shall be the quorumclause 104— this clause corresponds to section 175 of the companies act, 1956 and seeks to provide that members shall elect one among themselves to be the chairman by show of hands the clause further provides that if a poll is demanded on the election of the chairman, the chairman elected by show of hands shall continue to be the chairman of the meeting until some other person is elected as chairman as a result of pollclause 105— this clause corresponds to section 176 of the companies act, 1956 and seeks to provide that a member who is entitled to attend and vote can appoint another person as a proxy to attend and vote at the meeting on his behalf however, proxy shall not have the right to speak at a meeting and shall not be entitled to vote except on poll the members of prescribed class of companies shall not be entitled to appoint proxy a person appointed as proxy shall act on behalf of prescribed number of members not exceeding fifty and prescribed number of shares the clause also provides for the manner of appointing proxyclause 106— this clause corresponds to sections 181, 182 and 183 of the companies act, 1956 and seeks to provide that no member shall exercise any voting right in respect of any shares registered in his name on which any calls or other sums presently payable by him have not been paid or on which company has exercised any right or lien no member can be prohibited from exercising his voting right on any other groundclause 107— this clause corresponds to sections 177 and 178 of the companies act,1956 and seeks to provide that at general meeting, a resolution put to vote shall, unless a poll is demanded or the voting is carried out electronically, be decided on a show of hands a declaration by the chairman and an entry in the minutes book is conclusive evidence that resolution is passedclause 108— this is a new clause and it provides that a member in the prescribed class of companies may exercise his right to vote by electronic meansclause 109— this clause corresponds to sections 179, 180, 184 and 185 of the companies act, 1956 and seeks to provide that before or on declaration of result of the voting on any resolution by a show of hands, the chairman of the meeting on his own or on demand made by specified members order for a poll this clause further provides that the demand for poll may be withdrawn by the persons who made the demand the chairman of the meeting shall appoint scrutinizer for observing the poll process and votes given on poll and to report thereon the result of the poll shall be deemed to be the decision of the meeting on the resolution the chairman shall regulate the manner in which poll shall be takenclause 110— this clause corresponds to section 192a of the companies act, 1956and seeks to provide that the central government may declare items of business that can be transacted only by postal ballot and also in respect of any item of business other than ordinary business and any business in respect of which directors or auditors have a right to be heard at any meeting may also be transacted through postal ballotclause 111— this clause corresponds to section 188 of the companies act, 1956 and seeks to provide that a company shall, on requisition in writing of certain number of members, give notice or circulate statement to members on proposed resolution intended to be moved in the meeting the statement need not be circulated if the central government declares that the right conferred is being abused to secure needless publicity for defamatory matters if default is made the company and every officer of the company shall be punishable with fineclause 112— this clause corresponds to section 187a of the companies act, 1956and seeks to provide that president of india or the governor of a state, if he is a member of a company, may appoint such person as he thinks fit, to act as his representative at any meeting and to vote by proxy and postal ballot as member of the companyclause 113— this clause corresponds to section 187 of the companies act, 1956 and seeks to provide that where a body corporate is a member or a creditor including a holder of debentures of the company and it authorises any person as its representative at any meeting of the company or any class of members of the company or at any meeting of creditors of the company, such representative shall be entitled to exercise the same rights and powers including right to vote by proxy and by postal ballot on behalf of the body corporate which he representsclause 114— this clause corresponds to section 189 of the companies act, 1956 and seeks to provide that a resolution shall be an ordinary resolution if the votes cast in favour of the resolution exceeds the votes, if any, cast against the resolution by the members a resolution shall be special when it is duly specified in the notice, calling the general meeting and votes cast in favour is three times the votes cast against the resolutionclause 115— this clause corresponds to section 190 of the companies act, 1956 and seeks to provide that where a special notice is required of any resolution, notice of the intention to move such resolution is to be given by such number of members holding not less than one per cent of total voting power or holding shares on which an aggregate sum of not less than one lakh rupees has been paid-up in such manner as may be prescribedclause 116— this clause corresponds to section 191 of the companies act, 1956 and seeks to provide that where a resolution is passed at an adjourned meeting, the resolution shall be treated as passed on the day it was actually passed and not on any earlier dateclause 117— this clause corresponds to section 192 of the companies act, 1956 and seeks to provide that a copy of every resolution and an agreement in respect of matters specified therein together with a explanatory statement shall be filed with the registrar within thirty days of its passing the registrar shall register the same and in case of any default, a company and every officer who is in default including the liquidator shall be liable for punishmentclause 118— this clause corresponds to sections 193, 194, 195 and 197 of the companies act, 1956 and seeks to provide that every company shall prepare, sign and keep minutes of proceedings of every general meeting, including the meeting called by the requisitionists and all proceedings of meeting of any class of share holders or creditors or board of directors or committee of the board and also resolution passed by postal ballot within thirty days of the conclusion of every such meeting concerned in case of meeting of board of directors or of a committee of board, the minutes shall contain name of the directors present and also name of dissenting director or a director who has not concurred the resolution the chairman shall exercise his absolute discretion in respect of inclusion or non-inclusion of the matters which is regarded as defamatory of any person, irrelevant or detrimental to company's interest in the minutes minutes kept shall be evidence of the proceedings recorded in a meeting this clause also seeks to provide that every company shall observe secretarial standards with respect to general and board meeting the clause also provides penalty for the company as well as the person who is found guilty of tampering with the minutes of the meetingclause 119 - this clause corresponds to section 196 of the companies act, 1956 and seeks to provide that the minutes book of general meetings shall be kept at the registered office of a company and shall be open for inspection to members during business hours without any charge subject to such restrictions as the company may impose a member shall be entitled for a copy of any minutes subject to payment of fees the copy should be made available to him within seven days of his making request where the company refuses inspection or fails to furnish a copy of minutes within specified time, the tribunal is empowered to direct immediate inspection or sending a copy of minutes in the matter and the company and every officer of the company shall be punishable with fineclause 120 - this is a new clause which seeks to provide that any document, record, register or minute, etc, required to be kept or allowed to be inspected or copies given may be kept or inspected or copies given in the electronic form in the prescribed mannerclause 121— this new clause seeks to provide that every listed company shall prepare a report on each annual general meeting including the confirmation to the effect that the meeting was convened, held and conducted as per the provision of the act and the rules made thereunder a copy of this report shall be filed with the registrar the clause also provide penalty if company fails to file the report under this clause before the expiry of the period specified under clause 403clause 122— this new clause seeks to provide that the provisions of some sections of chapter vii ie management and administration, shall be applicable to one person company to the extent and the manner as provided under the clauseclause 123 - this clause corresponds to section 205 of the companies act, 1956 and seeks to provide that dividend shall be declared by a company for any financial year at a general meeting out of the profits for that year or any previous year or years arrived at after providing for depreciation or out of money provided by the central government or a state government for the payment of dividend and no dividend shall be declared or paid by company from its reserves other than free reserves however, before the declaration of any dividend certain percentage of profit may be transferred to the reserves of the company in case of inadequacy of profits or absence of profit in any financial year subject to dividend can be declared out of accumulated profits transferred to reserves such rules as may be made by the central government in this behalf the clause provides that the depreciation shall be provided in accordance with schedule ii to the act the board may declare interim dividend out of profits the amount of dividend shall be deposited in a scheduled bank in separate account within five days dividend may be paid by cheque or warrant or in any electronic mode to the shareholders entitled to the payment of dividend no dividend can be declared in the event of failure to repay the deposits accepted by company capitalization of profits for issuing bonus shares is not prohibitedclause 124 - this clause corresponds to section 205a of the companies act, 1956and seeks to provide that where the dividend is not paid or claimed within thirty days, the company shall, within seven days, transfer the total unpaid or unclaimed amount to a unpaid dividend account to be opened by the company in a scheduled bank the company shall prepare a statement of names and unpaid dividend and place on the web-site of the company and also on any other web-site approved by central government in the prescribed manner in case of any default in transferring the amount, the company shall be liable to pay interest on the amount as has not been transferred the amount remaining unpaid or unclaimed along with interest accrued thereon for seven years shall be transferred to investor education and protection fund a statement of such amount is required to be sent to the authority administrating the fund the shares in respect of which unpaid or unclaimed dividend has been transferred shall be transferred in the name of investor education and protection fund any claimant of shares so transferred shall be entitled to claim them in accordance with prescribed procedure if company fails to comply with the provisions of this clause the company and every officer of the company who is in default shall be punishable with fineclause 125— this clause corresponds to section 205c of the companies act, 1956and seeks to provide that the central government shall establish a fund to be called the investor education and protection fund the fund shall be credited with amounts specified in the clause the fund shall be utilised for refund of unclaimed dividends application monies due for refund and interest thereon, the promotion of investors' education, awareness and protection, distribution of any disgorged amount among eligible and identifiable applicants who have suffered losses due to wrong actions by any person in accordance with the court order, reimbursement of legal expenses incurred in pursuing class action the shareholders shall be entitled to get refund of unclaimed and unpaid dividend from the fund in accordance with the rules to administer the fund, the central government shall constitute an authority consisting of chairperson and maximum of seven members the manner of administration of the fund, appointment of chairperson, members and chief executive officer, shall be as prescribed under rules the accounts of the fund would be audited by comptroller and auditor general of india the audit report along with duly certified accounts to be forwarded to the central government the authority shall prepare its annual report and the annual report along with audit report given by the comptroller and auditor general of india to be laid before each house of parliament by the central governmentclause 126 - this clause corresponds to section 206a of the companies act, 1956and seeks to provide that where any instrument of transfer of shares is not registered, the amount of dividend shall be transferred to the unpaid dividend account and to keep in abeyance the rights to any right shares or bonus sharesclause 127— this clause corresponds to section 207 of the companies act, 1956 and seeks to provide that where the dividend has been declared but has not been paid or the warrants have not been posted within thirty days of declaration, every director who is knowingly party to the default shall be punishable with imprisonment up to two years and with fine and the company shall be liable to pay interest of eighteen per cent per annum thereonclause 128— this clause corresponds to section 209 of the companies act, 1956 and seeks to provide that every company shall prepare and keep at its registered office books of account and other relevant books and papers and financial statements annually which give a true and fair view of the state of the affairs of the company and its branch offices however, if board decides to keep books and other papers at any other place in india, a notice to this effect shall be given to the registrar and relevant books and paper can also be kept in electronic mode for branch offices of the company in india or outside, it shall be deemed to have complied with the provisions of this section, if summarised returns are sent periodically to the registered office the books of accounts and other books and papers maintained by the company shall be open for inspection by any director the inspection of books of accounts of subsidiaries companies can be done only by any person duly authorised by the board this clause further provides that books of accounts of every company shall be kept for eight years in case, an investigation has been ordered, the central government shall have power to ask the company to keep the books of accounts for a period longer than eight years the clause also provides penalty for the managing director, whole time director, chief finance officer or any other person charged by board with a duty to comply with the provisions and if he does not comply withclause 129— this clause corresponds to section 211 of the companies act, 1956 and seeks to provide that the financial statements shall give a true and fair view of the state of affairs of the companies in the form as may be provided for different class or classes in schedule iii and shall comply with accounting standards insurance companies, banking company, companies engaged in generation / supply of electricity or any other class of companies shall make financial statements in the form as has been specified in or under the act governing such companies the financial statement shall be laid in the annual general meeting of that financial year in case of subsidiary companies, the company shall prepare a consolidated financial statement of the company and all subsidiaries and lay before the annual general meeting the central government shall have the power to exempt a class or classes of companies from any of the requirement of this section the clause also provide the penalty where company contravenes the provision of this sectionclause 130 - this is a new clause which seeks to provide for the re-opening of books of accounts and recasting its financial statements on an order by the competent court or tribunal if it was found that earlier accounts were prepared in fraudulent manner or financial statements are not reliable due to mismanagement of affairs of the companyclause 131—this is a new clause which allows the directors to prepare revised financial statement or a revised board's report if it appears to them that the company's financial statement or the board's report did not comply with the requirement of clause 129 or clause 134 after obtaining approval of the tribunal tribunal shall take into account the representations if any, of the central government and of the income tax department such revised financial statement or report shall not be prepared or filed more than once in financial year further, where copies of financial statement or report has been sent out to members or delivered to registrar or laid before general meeting, the revisions must be confined to specified limits provided in the clause such revised financial statement or report shall be subject to rules prepared by central governmentclause 132— this clause corresponds to section 210 a of the companies act, 1956and seeks to provide that the central government may by notification constitute the national financial reporting authority to provide for matters relating to accounting and auditing standards it shall perform the functions as specified under the clause including monitoring the compliance and overseeing the quality of service of professionals associated with ensuring the compliance with such standards the authority shall have power to investigate the matters of misconduct committed by any member of institute of charted accountants of india ,institute of cost and work accountants of india or institute of company secretaries of india or any other prescribed profession the clause further provides for the members, their qualification, terms and conditions of appointment, who shall constitute the authority the clause also provides maintenance of books of accounts and other books in relation of its accounts in the manner prescribed by the central government in consultation with comptroller and auditor general of indiaclause 133— this clause corresponds to section 211(3c) of the companies act, 1956and it seeks to provide that the central government may, after consultation with the national financial reporting authority, prescribe the accounting standards as recommended by the institute of charted accountants of india for adoption by companiesclause 134—this clause corresponds to sections 215, 216 and 217 of the companies act, 1956 and seeks to provide that the financial statement including consolidated financial statements should be approved by the board of directors before they are signed and submitted to auditors for their report the auditor's report is to be attached to every financial statement a report by the board of directors containing details on the matters specified including directors responsibility statement shall be attached to every financial statement laid before company the board's report and every annexure has to be duly signed a signed copy of every financial statement shall be circulated, issued or published along with all notes or documents, the auditor's report and board's report the clause also provides for penal provisions for the company and every officer of the company in case of any contraventionclause 135—this new clause seeks to provide that every company having specified networth or turnover or net profit during any financial year shall constitute the corporate social responsibility committee of the board the composition of the committee shall be included in the board's report the committee shall formulate policy including the activities specified in schedule vii the board shall disclose the content of policy in its report and place on website, if any of the companythe clause further provides that the board shall endeavour to ensure that atleast two per cent of average net profits of the company made during three immediately preceding financial years shall be spent on such policy every year if the company fails to spend such amount the board shall give in its report the reasons for not spendingclause 136— this clause corresponds to section 219 of the companies act, 1956 and seeks to provide that a copy of financial statement including consolidated financial statement, if any, auditor's report along with annexure/ attachments shall be sent to every member, every trustee for the debenture holder, and all other persons who are so entitled twenty one days before the date of general meeting a specific manner of circulation may be prescribed by the central government listed company shall place its financial statement including consolidated financial statement on its website every company having subsidiary company shall place separate audited accounts of each of its subsidiary on the website every member, trustee, etc is allowed to inspect the financial statements and auditor's report, etc, at the registered office of the company during any business hours this clause also provided for penal provisions in case of any defaultclause 137 - this clause corresponds to section 220 of the companies act, 1956 and seeks to provide that copies of financial statement including consolidated financial statement, if any, and all such documents which are annexed to the financial statement and adopted at the annual general meeting shall be filed with registrar in case a company does not hold an annual general meeting in any year, a statement of facts and reasons along with financial statement and attachment has to be filed with the registrar this clause further provides that in case the accounts are not adopted at annual general meeting or in adjourned meeting, the un-adopted accounts shall be filed with the registrar and the registrar shall take them in his records as provisional till the final accounts are filed the clause further provides penalty for company and managing director and chief finance officer of the company or any director in a company fails to comply with the provision of this clauseclause 138 - this is a new clause and seeks to provide that prescribed companies shall be required to conduct internal audit of functions and activities of the company by internal auditor appointed by the company manner of conducting internal audit shall be prescribed by the central governmentclause 139 - this clause corresponds to section 224 of the companies act, 1956 and seeks to provide that a company shall appoint an individual or a firm as an auditor at annual general meeting subject to his written consent who shall hold office till conclusion of sixth annual general meeting the manner and procedure of selection committee shall be prescribed by the central government a notice of appointment should be filed with the registrar the clause provides for the provisions for rotation of auditors the central government may prescribe the manner in which the companies shall rotate their auditors the comptroller and auditor-general of india appoints auditor of government companies first auditor of a company, other than a government company is appointed by board within 30 days of registration and in case of failure to appoint, the members at a general meeting shall appoint in case of a government company or a company owned or controlled by government comptroller and auditor-general of india shall appoint auditor in case of their failure, the board shall appoint first auditor and in case of failure members of company in general meeting will appointclause 140— this clause corresponds to clause 225 of the companies act, the clause seeks to provide for the provisions for removal of auditor before the expiry of his terms it provides that the auditor concerned shall be given a reasonable opportunity of being heard the clause provides for the provisions for resignation by auditor if further provides that special notice shall be required for appointing a person as auditor other than a retiring auditor the tribunal is empowered to change the auditor of a company in case of in any fraudulent activities by auditor an auditor, company secretary in practice, or cost accountant in practice shall immediately report to the central government, if they have reason to believe in pursuance of their duties that an offence involving fraud is being committed against the companyclause 141 - this clause corresponds to sections 224(1b) and 226 of the companies act, 1956 and seeks to provide for appointment of only chartered accountant in practice as auditors the firm whereof majority of partners practicing in india are qualified for appointment , may be appointed by its firm name to be auditor of a company the clause further provides for the persons who are not eligible for appointment as an auditor of a company the clause further provides that the members of the company may restrict the number of companies beyond which the auditor or audit firm shall not be auditor an auditor who is disqualified subsequent to his appointment, has to vacate officeclause 142— this clause corresponds to section 224 of the companies act, 1956 and seeks to provide for remuneration of auditors of the company the remuneration is to be fixed in the general meeting the clause further defines the term "remuneration"clause 143— this clause corresponds to section 227 of the companies act, 1956 and seeks to provide for the powers and duties of auditors every auditor can access books of accounts, vouchers and seek such information and explanation from the company and enquire such matters as he consider necessary including the particular matters specified in the clause in case of financial statements, auditor of holding company can access records of subsidiaries the auditor has to make a report to the members on that accounts, financial statement or other documents required to be laid in general meeting give a true and fair view of the state of the company's affairs, about the company having adequate internal financial controls system in place and other specified matters the report shall state reasons for negative and qualified remarks the clause also provides the manner in which audit report of a government company shall be finalised by the comptroller and auditor general this clause also provides to notify the auditing standard by the central government this clause further provides that the central government may in respect of specified class of companies direct to include a statement on specified matters in the auditor's report the clause also provides penalty for the auditor, cost accountant or company secretary in practice for non complianceclause 144 - this is a new clause and it seeks to provide that an auditor can do such other services as approved by the board or audit committee the clause further provides for the services which the auditor cannot perform, directly or indirectly to the company or its holding company, subsidiary company or associate companyclause 145 - this clause corresponds to section 229 of the companies act, 1956 and seeks to provide that its auditor's report can be signed by the person appointed as an auditor of the company he shall also sign or certify any other document of the companyclause 146— this clause corresponds to section 231 of the companies act, 1956 and seeks to provide that auditor or his representative, qualified to be an auditor, shall get all the notices of general meetings and shall attend the same and be heard on any part of the business concerning him as the auditorclause 147 - this clause corresponds to sections 232 and 233 of the companies act,1956 and seeks to provide for the penalties for contravention of provisions of the clauses 139 to 146 in case an auditor contravenes the provisions with the intention to deceive the company or its shareholders or creditors or any other person concerned, he shall be punishable with imprisonment and with fine the auditor is also required to refund remuneration received by him to company and for any damages to the company or to any person suffered due to misleading or incorrect statements of particulars made in his report in case the audit is being conducted by an audit firm and the partners of audit firm acted in a fraudulent manner, then partners shall be punishable in the manner as provided in section 447 relating to fraudclause 148 - this clause corresponds to section 233b of the companies act, 1956and seeks to empower the central government after consultation with regulatory body to direct class of companies engaged in production of such goods or providing such services as may be prescribed to include in the books of accounts particulars relating to utilisation of material or labour or to such other items of cost the central government may direct the audit of cost records of the company by cost accountant in practice appointed by board and on such remuneration as determined by the members the auditor conducting the cost audit shall comply with the cost auditing standards the clause further provides that the qualifications, disqualifications, rights, duties and obligations as apply to auditor shall also be applicable to cost auditor as well the central government may call for further information and explanation if necessary after considering cost audit report the clause further defines cost auditing standards the clause also provides penalty for the company, every officer of the company, cost auditor of the company who is in default, if any default is made in compliance with the provisionclause 149— this clause corresponds to some of the provisions of sections 252, 253and 259 of the companies act, 1956 and some new provisions it seeks to provide that every company shall have a board of directors and prescribes the minimum and maximum number of directors prescribed class or classes of companies shall have atleast one women director the clause also seeks to provide that every company shall have at least one director who stays in india for a total period of not less than one hundred and eighty –two days in the previous calendar year the clause further provides the minimum number of independent directors in the prescribed companies the clause also seeks to define the terms "independent director" the company and independent director shall abide by the provisions specified in schedule iv the clause seeks to provide that an independent director shall not be entitled to any remuneration, other than sitting fee, reimbursement of expenses for participation in board meeting and profit related commission as approved by the members the clause further provides for the provisions of rotation of independent director further the provision of retirement of directors by rotation shall not be applicable to appointment of independent directors the clause also provides that an independent director or a non-executive director who is not a promoter or key managerial personnel shall be held liable for acts of omission or commission by a company which has occurred by his knowledgeclause 150— this is a new clause which seeks to provide the manner and selection of independent directors and maintenance of databank by any body, institute or association as may be notified by the central government the responsibility of exercising due diligence before selecting a person from the databank shall lie with the company making such appointment this clause also provide for prescription power to central government for manner and procedure of selection of independent directorsclause 151— this clause corresponds to the proviso to sub-section (1) of section 252of the companies act, 1956 the clause seeks to provide for appointment of a small shareholder's director in every listed companyclause 152 - this clause corresponds to some of the provisions of sections 254 to256 and 264 of the act and some new provisions and seeks to provide the manner in which the directors including the first directors shall be appointed by a company the clause seeks to provide that other than first directors, the directors shall be appointed in general meetings the clause further provides that every director would obtain director identification number from the central government before he acts as a director in any company every proposed director shall furnish his din, a declaration that he is not disqualified to become a director and a consent to hold office as director before he is appointed further in case of independent directors, the explanatory statement for his appointment shall provide that in the opinion of the board, every independent directors appointed fulfils the conditions specified for his appointment the clause also provides for the manner in which rotation of directors shall take placeclause153 - this clause corresponds to section 266a of the companies act, 1956and seeks to provide that every individual intending to be appointed as director shall make an application for allotment of director identification number (din) to the central government along with feeclause 154— this clause corresponds to section 266b of the companies act, 1956and seeks to provide that the central government shall allot director identification number (din) to the applicant within one month from the receipt of the applicationclause 155— this clause corresponds to section 266c of the companies act, 1956and seeks to provide that no individual, who has already been allotted a director identification number shall apply, obtain or possess another director identification numberclause 156— this clause corresponds to section 266d of the companies act, 1956and seeks to provide that every existing director shall, intimate his director identification number within one month of its receipt to the company or all companies wherein he is a directorclause 157— this clause corresponds to section 266e of the companies act, 1956and seeks to provide that every company shall furnish the director identification numbers of all its directors to the registrar or any other officer or authority as specified by the central government the clause further provides penal provision for company if company fails to furnish director identification number under sub-clause (1)clause 158— this clause corresponds to section 266f of the companies act, 1956and seeks to provide that every person or company, while furnishing any return, information or particulars shall mention the director identification number in such return, information or particulars in case of any reference of any directorclause 159— this clause corresponds to section 266g of the companies act, 1956and seeks to provide that if any individual or director or a company contravenes any of the provisions, of clauses 152, 155 and 156 shall be punishable with imprisonment or fine and where the contravention is a continuing one, with a further fineclause 160— this clause corresponds to section 257 of the companies act, 1956 and seeks to provide that a person, not being a retiring director shall be eligible for appointment as a director at any general meeting the clause further provides the manner in which the persons other than retiring director can stand for directorship and the company shall inform its members of the candidature of a person for the office of directorclause 161— this clause corresponds to sections 260, 262 and 313 of the companies act, 1956 and contains some new provisions the board if authorised by articles may appoint any person, other than a person who fails to get appointed as a director in a general meeting, as an additional director at any time the clause further seeks to provide that the board may, if so authorised by its articles or by a resolution passed by the company, appoint a person, to act as an alternate director for a director during his absence for a period of not less than three months from india the clause also seeks to provide that only a person, who is qualified to be appointed as an independent director, shall be eligible to be appointed as an alternate director in place of an independent director the clause provides that an alternate director shall not hold office larger than permissible and shall vacate the office if and when the director in whose place he has been appointed returns to india the clause further provides that in the case of a public company or a private company which is a subsidiary of a public company, the casual vacancy may be filled by the board of directors at a meeting of the board the clause also provides that any person so appointed shall hold office up to the date up to which the director in whose place he is appointed would have held office if it had not been vacatedclause 162— this clause corresponds to section 263 of the companies act, 1956 and seeks to provide that at a general meeting of a company, a motion for the appointment of two or more persons as directors by a single resolution shall not be moved unless a proposal to move such a motion has first been agreed to at the meeting without any vote being cast against itclause 163 - this clause corresponds to section 265 of the companies act, 1956 and seeks to provide that the articles of a company may provide for the appointment of not less than two-thirds of the total number of the directors in accordance with the principle of proportional representationclause 164— this clause corresponds to section 274 of the companies act, 1956 and seeks to provide the circumstances and situations under which a person shall not be eligible for appointment as a director of a company the clause further provides for the situations in which a director shall not be eligible to be re-appointed as a director of that company or appointed in other public company for a period of five years the clause also provides that a private company may by its articles provide for any other disqualifications in addition to those specified in this clauseclause 165— this clause corresponds to section 275 of the companies act, 1956 and seeks to provide that no person, shall hold office as a director, in more than twenty companies at the same time further the clause provides for the maximum number of public companies and private companies in which a person can be appointed as director the members may restrict the number of companies in which a director may act as director the clause further provides penal provision for the person who accepts an appointment as director in contravention of sub-clause (1)clause 166— this is a new clause and seeks to provide that a director of a company shall act in accordance with the company's articles it further seeks to provide for various duties of directors in case of contravention, director is punishable with fine and if a director is found guilty of making any undue gain either to himself or to his relatives, partners or associates, he shall also be liable to pay an amount, equal to that gain, to the company the clause further provides penalty for director of a company if he contravenes provisions of this clauseclause 167— this clause corresponds to section 283 of the companies act, 1956 and seeks to provide the grounds and circumstances under which the office of a director shall become vacant the clause further provides that where a person acts as a director after he is aware that the office of director held by him has become vacant on account of any disqualification, he shall be punishable imprisonment or with fine where all the directors vacate their offices under any of the disqualifications, the promoter or, in his absence, the central government shall appoint the required number of directors who shall hold office till the directors are appointed in the general meeting the clause also provides that a private company may provide for any other ground for vacation of officeclause 168 - this is a new clause and seeks to provide that a director may resign from his office by giving a notice in writing and the board shall, on receipt of such notice take note of the same and the company shall intimate the registrar and place such resignation in the subsequent general meeting of the company the director shall also forward copy of resignation with reasons to registrar the clause further provides for the date on which the notice of resignation shall take effect the director shall be liable for the offences occurred during his tenureclause 169— this clause corresponds to section 284 of the companies act, 1956 and seeks to provide that a company may, by ordinary resolution remove a director (not being a director appointed by the tribunal under section 242) where the company has availed itself of the option given to it under section 163 to appoint not less than two-thirds of the total number of directors according to the principle of proportional representation, then the provisions of this section shall not apply special notice by specified number of members shall be required of any resolution, to remove a director or to appoint somebody in place of a director so removed the clause further provides that the director shall be entitled to be heard on the resolution at the meeting a vacancy created by the removal of a director may be filled by the appointment of another director in his place by the meeting at which he is removed the clause seeks to provide that the director who was removed from office shall not be reappointed as a director by the board of directorsclause 170 - this clause corresponds to sections 303 and 307 of the companies act,1956 and seeks to provide that every company shall keep at its registered office a register containing particulars of its directors and the key managerial personnel including the details of securities held by each of them in the company or its holding, subsidiary, subsidiary of company's holding company or associate companies a return containing particulars and documents of appointment or any change in the directors and the key managerial personnel shall be filed with the registrarclause 171—this clause corresponds to section 304 of the companies act, 1956 and also seeks to provide the manner in which register kept under clause 170 shall be open for inspection the members shall take extracts therefrom and obtain copies thereof free of cost the clause seeks to provide that if any inspection as provided in this clause is refused, or if any copy required thereunder is not sent within thirty days from the date of receipt of such request, the registrar shall on an application made to him order immediate inspection and supply of copies required thereunderclause 172— this clause is a new clause which seeks to provide that where a company contravenes any of the provisions of this chapter and no specific punishment is provided therein, the company, and every officer who is in default shall be punishable with fineclause 173— this clause corresponds to sections 285 and 286 of the companies act,1956 and seeks to provide that every company shall hold the first meeting of the board of directors within thirty days of the date of its incorporation and hold a minimum number of four meetings of its board of directors every year the participation of directors in a meeting of the board may be either in person or through video conferencing or such other audio visual means the clause further provides that a notice of the meeting of board shall be given to every director at his address registered with the company failing which officers shall be liable for penalty the meeting of the board may be called at shorter notice to transact urgent business where at least one independent director, if any, shall be presentclause 174— this clause corresponds to sections 287 and 288 of the companies act,1956 and seeks to provide that the quorum for a meeting of the board of directors of a company shall be one-third of its total strength or two directors, whichever is higher, and the directors participating by video conferencing or other audio visual means shall be counted for quorum it further provides that where the number of interested directors exceeds, or is equal to, two-thirds of the total strength of the board, the number of directors who are not interested and present at the meeting, being not less than two, shall be the quorum the clause further provides that the meeting shall stand adjourned if it could not be held for want of quorumclause 175— this clause corresponds to section 289 of the companies act, 1956 and seeks to provide that no resolution shall be deemed to have been duly passed by the board or by a committee thereof by circulation unless the resolution has been circulated in draft, to all the directors, or members of the committee at their addresses registered with the company in india and has been approved by a majority the clause also provides that such a resolution shall be noted and made part of minutes at a subsequent meetingclause 176 - this clause corresponds to section 290 of the companies act, 1956 and seeks to provide that any act done by a person as a director shall not be invalid if it is subsequently discovered that his appointment was invalid the clause further provides that nothing shall be given validity to any act done by the director after his appointment has been noticed by the company to be invalid or to have terminatedclause 177 - this clause contains some provisions of section 292a of the companies act, 1956 and seeks to provide the requirement and manner of constituting audit committee the audit committee shall consist of a minimum of three directors with independent directors forming a majority and majority of members must have ability to read and understand, financial statement the clause further provides the functions of audit committee the clause also provides for the establishment of vigil mechanism in every listed and prescribed class of companies the establishment of such mechanism shall be disclosed at the website of the company and in the board's report of the companyclause 178 - this is a new clause and seeks to provide requirement and manner of constituting nomination and remuneration committee and stakeholders relationship committees of the board nomination and remuneration committee shall consist of three or more non-executive directors as appointed by the board out of which not less than one half shall be an independent director such nomination and remuneration committee shall determine the company's policies relating to the nomination and evaluation of every director's performance it shall also determine company's policies relating to remuneration of the directors, key managerial personnel and other employees the clause further provides that the board having a combined membership of the shareholders, debenture holders, deposit holders and other security holders of more than one thousand at any time during a financial year shall constitute a stakeholders relationship committee which shall consist of a chairman who is a non-executive director and such other members of the board as decided by the board stakeholders relationship committee shall consider and resolve the grievances of securities holders the clause further provides punishment for company and every officer of the company in case of contravention of provisions of clause 173 and this clauseclause 179 - this clause corresponds to sections 291 and 292 of the companies act,1956 and seeks to provide that the board of directors shall be entitled to exercise all such powers, and to do all such acts and things, as the company is authorised to exercise and do except those that are to be exercised or done by the company in general meeting the clause further specifies the powers to be exercised by the board of directors on behalf of the companyclause 180 - this clause corresponds to section 293 of the companies act, 1956 and seeks to provide for the powers of the board of directors of a company to be exercised only with the consent of the company by a special resolutionclause 181 - this clause corresponds to section 293(1)(e) of the companies act,1956 it seeks to provide that the board of directors of the company may contribute to bona fide charitable and other funds it requires prior permission of company in general meeting if such contribution exceeds certain limits specified in the clauseclause 182— this clause corresponds to section 293a of the companies act, 1956it seeks to provide the manner and limits up to which a company shall be able to contribute the amount to any political party or to any person for a political purpose the clause further provides the manner in which every company shall disclose in its profit and loss account any amount so contributed by it during any financial year this clause further provides penal provision in case company contravens the provisionclause 183 - this clause corresponds to section 293b of the companies act, 1956 it seeks to provide any person or authority authorized by board of directors or by general meeting may contribute such amount as it thinks fit to national defence fund for the purpose of national defence every company shall disclose the amount so contributed in its profits and loss accountclause 184— this clause corresponds to section 299 of the companies act, 1956 and seeks to provide the manner and periodicity in which every director shall make disclosures of his concern or interest in any company or bodies corporate, firms, or other association of individuals it also seeks to provide that every director of a company who is concerned or interested in a contract or arrangement shall disclose the nature of his concern or interest at the meeting of the board and shall not participate in such meeting the clause further provides that a contract or arrangement entered into by the company without disclosure or with participation by a director who is so concerned or interested shall be voidable at the option of the company this clause further provides for penal provision for director of the company in case of any contraventionclause 185— this clause corresponds to section 295 of the companies act, 1956 and seeks to provide the circumstances and manner in which a company shall advance any loan to any of its directors or to any other person in whom he is interested or give any guarantee or provide any security in connection with any loan taken by him or such other person the clause also defines the expression 'to any other person in whom director is interested' the clause also provides for penal provision for the company and for the director to whom the loans is advanced in case of contravention of sub-clause (1)clause 186 - this clause corresponds to section 372a of the companies act, 1956and seeks to provide the manner in which and limits up to which a company shall give any loan or give any guarantee or provide security in connection with a loan to any other body corporate or person and acquire by way of subscription, purchase or otherwise, the securities of any other body corporate the clause further provides that the companies as providing or associating loans shall disclose in financial statements full particulars of the loans given investments made or guarantees or securities provided the clause also provides for the manner in which registers will be kept by a company to record transactions and the manner in which such registers shall be available for inspection the clause exempts certain categories of companies from the provisions of this clause for the purpose of this section, the central government may prescribe rules this clause also provides for punishment for the company and every officer of the company in case of any contraventionclause 187 - this clause corresponds to section 49 of the companies act, 1956 and seeks to provide that all investments made or held by a company in any property, security or other asset shall be made and held by it in its own name it also seeks to provide that the company may hold any shares in its subsidiary company in the name of any nominee of the company, if it is necessary to ensure that the number of members of the subsidiary company is not reduced below the statutory limit the clause provides certain exemptions to these provisions the clause further provides that where any securities in which investments have been made by a company are not held by it in its own name, the company shall maintain a register containing such particulars and such register shall be open for inspection the clause also provides for punishment for company and every officer in default in case of any contraventionclause 188— this clause corresponds to section 297 of the companies act, 1956 and seeks to provide the manner in which contracts or arrangements by a company with related parties shall be made and disclosed it provides for the matter that requires the consent of board of directors of company or prior approval by special resolution it seeks to provide that every such contract or arrangement shall be referred to in the board's report to the shareholders along with the justification it provides that the member who is related party to the any contract or arrangement shall not vote on the special resolution for approval of such contract or arrangement it also provides that where any contract or arrangement is entered into by a director or any other employee, without complying with the provisions and if it is not ratified by the approving authority, such contract or arrangement shall be voidable at the option of the board the clause also provides penalty for director or other employee of a company who had entered into or authorized the contract or agreement in violation of the provisions in case of listed company or unlisted companyclause 189— this clause corresponds to section 301 of the companies act, 1956 and seeks to provide the particulars and the manner in which such particulars shall be entered by the company in the registers of contracts or arrangements in which directors are concerned or interested it also provides that such registers shall be placed before next board meeting, after entering the particulars and signed by all the directors present at the meeting it further provides that the register kept under this clause shall be kept at the registered office of the company and open for inspection the register shall also be produced at every annual general meeting of the company and shall remain open and accessible during the meeting to any person having the right to attend the meeting the clause further provides penalty for the directors who fails to comply with the provisionsclause 190— this clause corresponds to section 302 of the companies act, 1956 and seeks to provide that every company shall keep at its registered office a copy of contract of service entered into by it with a managing or whole-time director or where such a contract is not in writing, a written memorandum setting out its terms shall be kept it also provides that copies of such contract and the memorandum shall be open to inspection by any member the provisions of this clause shall not apply to any private company the clause also provides penalty for company and every officer of the company, if default is made in complying with the provisions of this clauseclause 191— this clause corresponds to sections 319 and 320 of the companies act,1956 and seeks to provide the circumstances and manner in which a director of a company shall receive any payment by way of compensation for loss of office or as consideration for retirement from office, etc it further provides that where a director of a company receives payment of any amount in contravention of this clause or the proposed payment is made before it is approved by the meeting, the amount so received by the director shall be deemed to have been received by him in trust for the company the clause further provides penalty for director of a company who receives payment at any amount in contravention of sub-clause (1)clause 192— this is a new clause and seeks to provide for the manner in respect of regulation of arrangements between a company and its directors in respect of acquisition of assets for consideration other than cash the clause provides that such arrangements shall require prior approval by a resolution in general meeting and if the director or connected person is a director of its holding company, approval is required to be obtained by passing a resolution in general meeting of the holding company the clause also provides the circumstances when an arrangement entered into by a company or its holding company in contravention of the provisions is voidable at the instance of the companyclause 193— this is a new clause and seeks to provide for the manner in which certain transactions or contracts are entered between a one person company and its sole member it seeks to provide that where a one person company limited by shares or by guarantee enters into a contract with the sole member of the company who is also director, the company shall, unless the contract is in writing, ensure that the terms of the contract or offer are contained in a memorandum or are recorded in the minutes of the first board meeting held after entering into the contract and every such contract shall be informed to the registrarclause 194— this is a new clause and seeks to prohibit whole-time director or any of its key managerial personnel from buying certain kinds of future contracts in relation to securities of the company it has also provided for punishment for contravention of the requirement this clause and further provides that where whole-time director or key managerial personnel acquires any securities in contravention of this clause he shall, surrender such securities and the company shall not register the same in his name in the register and if they are in dematerialised form, it shall inform the depository not to record such acquisitionclause 195— this is a new clause and seeks to prohibit directors or key managerial person of the company to deal in securities of a company, or counsel, procure or communicate, directly or indirectly, about any non-public price-sensitive information to any person this clause further provided for penal provision in case of contraventionclause 196— this clause corresponds to sections 197a, 267, 269, 317, 384, 385 and388 of the companies act, 1956 and seeks to provide that no company shall appoint or employ a managing director and manager at the same time and further that no company shall appoint or reappoint any person as its managing director, whole-time director or manager for a term exceeding five years at a time it also provides that no company shall appoint any firm, body corporate, or other association as its manager the clause also provides the disqualification in respect of appointment of managing director, whole-time director or manager it also seeks to provide the manner in which a managing director, whole-time director or manager shall be appointedclause 197— this clause corresponds to sections 198 and 309 of the companies act,1956 seeks to provide that remuneration to managerial personnel shall not exceed eleven per cent of the net profits of the company computed in the manner as provided in clause 198 the clause further provides limit of remuneration payable to one managing director, wholetime director or manager the limit of remuneration to the directors who are neither managing directors nor whole-time directors is provided further, the clause provides manner of remuneration in case of no profits or inadequate profits director may receive remuneration by way of fee for attending meetings of the board or committees thereof, which shall not exceed the prescribed amount managerial personnel can be paid either by way of a monthly payment or at a specified percentage of the net profits, or partly by monthly payment and partly by the percentage of net profits the clause further provides that where any director draws or receives any sum as remuneration in excess, he shall refund such sum to the company every listed company to disclose in its board's report, the ratio of remuneration of each director to median employee's remuneration it further provides that where any insurance is taken by a company on behalf of its managing director, whole-time director, manager, chief executive officer, chief financial officer or company secretary for indemnifying any of them against any liability in respect of any negligence, default, etc, for which they may be guilty, the premium paid on such insurance shall not be treated as part of the remuneration payable to any such personnel the clause further provides penalty if any person contravenes the provisions of this clauseclause 198— this clause corresponds to section 349 of the companies act, 1956 and seeks to provide manner of calculation of net profits of companyclause 199 - this clause corresponds to section 637a of the companies act, 1956and seeks to provide power of central government or tribunal to accord approval, sanction, consent, confirmation in relation to any matter subject to conditions and to prescribe fees on applicationsclause 200 - this clause corresponds to section 637aa of the companies act, 1956and seeks to provide the power of the central government or company to fix limit with regard to remuneration within the limits specified in this actclause 201 - this clause corresponds to section 640b of the companies act, 1956and seeks to provide forms of and procedure in relation to certain applications made to central governmentclause 202— this clause corresponds to section 318 of the companies act, 1956 and seeks to provide the circumstances and manner in which any managing or whole-time director or manager, shall be entitled to receive payment by way of compensation for loss of office, or as consideration for retirement from office or in connection with such loss or retirement the clause also specifies the quantum of such compensationclause 203— this is a new clause and seeks to provide that every company belonging to such class or description of companies, as prescribed by the central government, shall have managing director, or chief executive officer or manager and in their absence, a whole time director and a company secretary, as whole-time key managerial personnel it also seeks to provide that a whole-time key managerial personnel shall not hold office in more than one company (expect in a subsidiary at the same time except that of a director if company permits him in this regard this clause further provides for punishment in case of contraventionclause 204 - this is a new clause and seeks to provide that every listed company and companies belonging to prescribed class or classes of companies shall annex a secretarial audit report given by a company secretary in practice with its board's report the form of such report shall be prescribed by the central government the board in its report shall explain any qualifications or other remarks made by the company secretary in practice the clause further provides penalty for the company or any officer of the company or the company secretary in practiceclause 205 - this is a new clause and seeks to provide the functions of company secretary appointed by the company the functions are inclusive in nature and inter alia provides for ensuring compliance with the applicable secretarial standards the clause further provides that specified functions shall not affect the duties and functions of board of directors, chairperson, managing director or whole-time directorclause 206 - this clause corresponds to sections 209a and 234 of the companies act, 1956 and seeks to empower registrar to call for any information, explanation or documents and to inspect books of account of the company, etc the company and its officers shall furnish the information or explanation in documents within the specific time where the registrar is satisfied on the basis of information in documents that the business of the company is conducted in a fraudulent manner, he may order an inquiry further, the central government can also order inquiry by the registrar or by an inspector appointed by it the central government may authorize any authority to inspect books of account of specified companies stringent punishment for fraud has been proposed the clause further provides penalty for the company and every officer of the company who is in defaultclause 207 - this clause corresponds to section 209a of the companies act, 1956and seeks to provide the procedure to be adopted for inspection or inquiries to be made by the registrar or inspector every director, officer or employee of the company shall be bound to provide the information or the documents called for it empowers the registrar and inspector with the powers of the civil court under the code of civil procedures, 1908 for discovery and production of books of account and other documents, summoning, examining on oath, inspection of books and other documents, etc if any director wilfully disobeys the directions issued by the registrar, punishment with imprisonment is provided for the clause further provides penalty for the director or officer of the company who disobeys the directions issued by the registrarclause 208 - this clause corresponds to section 209a of the companies act, 1956and seeks to provide that the registrar or inspector shall submit a report to the central government after inspection of books of account or the examining any person as the case may be and will include in his recommendations for further investigation, if necessary, duly supported by reasons or documentsclause 209 - this clause corresponds to section 234a of the companies act, 1956and seeks to provide for search and seizure of documents by the registrar if he has reasonable ground to believe that the same is likely to be destroyed, mutilated, altered, falsified, etc, with the permission of special court the registrar has to return the seized documents within 180 days to the company from whose custody the documents were seizedclause 210 - this clause corresponds to section 235 of the companies act, 1956 and seeks to empower the central government to order an investigation into the affairs of a company either on the report of registrar or on special resolution passed by a company or in public interest further, this clause also empowers court or the tribunal to order that the affairs of a company ought to be investigated for the purpose of investigation, the central government has the power to appoint inspector(s) and seek reportclause 211 - this is a new clause and seeks to provide that the central government shall constitute serious fraud investigation office (sfio) the sfio will be headed by a director and will consist of experts from various disciplines the central government shall also appoint a director in the sfio not below the rank of joint secretary and may also appoint such experts and other officers as it considers necessary for efficient discharge of functionsclause 212 - this is a new clause and seeks to provide statutory status to sfio it shall investigate into such cases of companies involved in frauds as may be assigned to it by central government it shall have adequate powers to investigate cases referred to it the clause further provides that the investigation report of sfio filed with the court for framing of charges shall be treated as a report filed by a police officer under the code of criminal procedure, 1973 it is also proposed that sfio shall have power to arrest in respect of certain offences of the bill which attract the punishment for fraud it is also being proposed that such offences shall be cognizable and the person accused of any such offence shall be released on bail subject to certain conditions as provided in this clauseclause 213 - this clause corresponds to section 237 of the companies act, 1956 and seeks to empower the tribunal to order an investigation by the central government in case an application is made by at least 100 members or by member having one-tenth of total voting power or one-fifth of the members in case of company with no share capital seek an investigation into the affairs of the company or on an application suggesting fraud, misfeasance or misconduct or when any information is withheld this clause further empowers the central government to appoint inspector(s) and seek report stringent punishment for fraud has been proposedclause 214 - this clause corresponds to sections 236 and 245 of the companies act,1956 and seeks to provide that the company or the applicants have to give security for payment of the costs and expenses of the investigation and shall deposit an amount not exceeding twenty-five thousand as security towards the cost and expenses of investigation it provides that on completion of investigation, the cost of investigation and security amount would be refundable if the investigation results into prosecutionclause 215 - this clause corresponds to section 238 of the companies act, 1956and seeks to provide bar on firm, body corporate or other association for appointment as inspectorclause 216 - this clause corresponds to section 247 of the companies act, 1956 and seeks to empower the central government to appoint one or more inspectors to investigate and report on the membership of the company such an investigation shall include any arrangement or understanding observed in practice relevant for the purpose of investigationclause 217 - this clause corresponds to section 240 of the companies act, 1956 and seeks to provide that it shall be the duty of all officer and employees of the company which is under investigation to produce books and papers and give all assistance to the inspector the clause provides for the powers of the inspector the inspector may examine any person on oath and notes of such examination shall be taken in writing further the inspector shall have the powers of civil court in respect of discovery and production of documents, summoning and enforcing the attendance of persons, examining of persons on oath, inspection of books and register in case of failure to furnish information or to appear for examination on oath, the offence is punishable with imprisonment and fine in case of default in meeting the requirements of this section, the company and officer shall be punishable with fine and imprisonment further in case of conviction under this section, a director or officer shall be deemed to have vacated his office from the date of conviction and shall also be disqualified from holding office in any company also a court in india may also issue a letter of request to a court in a country outside india to record a statement of person who is supposed to be acquainted with the case and also to direct him to produce a document or thing in his possession pertaining to the caseclause 218 - this is a new clause and seeks to provide protection to the employees of the company during investigation if a company during the pendency of any investigation into the affairs of the company or during the pendency of any proceeding against the company, proposes to discharge or suspend, terminate, change the terms of employment, dismiss or reduce in rank any employee, it shall send by post to the tribunal previous intimation in writing of the action proposed to be taken against the concerned employee if the tribunal has any objection to the proposed action then it may give notice to the company if the company does not receive within thirty days any notice of objection from the company, it may proceed to take against the employee the action proposedclause 219 - this clause corresponds to section 239 of the companies act, 1956 and seeks to empower the inspector to investigate the affairs of any other body corporate where such corporate body is or has been a holding company or subsidiary company or has the same managing director or manager or where board of directors act on the directions of such company, and if necessary subject to prior approval of the central government, he can investigate into the affairs of such body corporate or managing director or manager, etc, be doneclause 220 - this clause corresponds to section 240a of the companies act, 1956and seeks to deal with seizure of documents by the inspector when he has reasonable ground to believe that they are likely to be destroyed, mutilated, altered, falsified, etc the inspector has to return the seized documents after conclusion of investigation it empowers the inspector to conduct search, seize books or papers in terms of the provisions of the code of criminal procedure, 1973clause 221 - this is a new clause and seeks to provide that where in connection with inquiry or investigation into the affairs of the company or a reference by the central government or on complaint by such number of members as prescribed under sub-section (1) of section 241 or a creditor having one lakh amount outstanding against the company or any other person having reasonable ground to believe that transfer or disposal of funds, properties or assets is likely to take place which is prejudicial to the interest of company, its shareholders, creditors or in public interest, then tribunal may order that such transfer, removal or disposal shall not take place for a maximum period of three years subject to such conditions as it may deem fitclause 222 - this clause corresponds to section 250 of the companies act, 1956 and seeks to provide for imposition of restrictions by the tribunal in connection with investigation under clause 187 on the securities of the company for a period not exceeding three yearsclause 223— this clause corresponds to sections 241 and 246 of the companies act,1956 and seeks to provide for submission of the interim and final report of investigation to the central government such a report shall be in writing or printed a copy of the report may be obtained by making application in this regard to the central government such report shall be authenticated by the seal of the company or by public officer having custody of the report in accordance with evidence act further, such a report can be submitted as evidence in any legal proceedingsclause 224 — this clause corresponds to sections 242, 243 and 244 of the companies act, 1956 and seeks to empowers the central government to prosecute such person for the offence and cast duty on officers, employees or the company or body corporate to provide necessary assistance in connection with the prosecution this clause further deals with action to be taken on the investigation report which includes winding up, misfeasance, recovery proceedings, etc where a investigation report states that a fraud has taken place and any director, key managerial personnel or officer has taken undue advantage or benefit, then the central government may file an application before tribunal with regard to disgorgement and such director, key managerial personnel or officer may be held personally liable without any limitation of liabilityclause 225 — this clause corresponds to section 245 of the companies act, 1956 and seeks to provide that expenses of investigation shall be borne by the central government in the first instance thereafter, it shall be borne by person so convicted on a prosecution instituted or who is ordered to pay damages or restore the property to the extent he may be ordered to pay the said expenses as specified by the court further, any amount which company is liable to pay shall be the first charge on the propertyclause 226— this clause corresponds to section 250a of the companies act, 1956and seeks to provide with continuation of investigation even after voluntary winding up or application is pending before the tribunal further, it provides that winding up order shall not absolve director or employee from participating in the proceedings before the inspector or any liability as a result of findings by inspectorclause 227— this clause corresponds to section 251 of the companies act, 1956 and seeks to provide the rights of the legal advisers or bankers of the body corporate or other person, not to disclose to the tribunal or to the central government or to the registrar or to the inspector any information as to the affairs of any of their customers, other than such company or body corporateclause 228— this is a new clause and seeks to provide that the provisions relating inspection or investigation under chapter xiv shall also apply mutatis mutandis to inspection or investigation of foreign companiesclause 229— this clause is a new clause which seeks to provide punishment for furnishing false statements, mutilation or destruction, concealment, tampering or unauthorized removal of documents during the course of inspection or investigationclause 230— this clause corresponds to section 391 of the companies act, 1956 and seeks to provide powers to tribunal to make order on the application of the company or any creditor or member or in case of company being wound up, of liquidator for the proposed compromise or arrangements including debt restructuring, etc, between company, its creditors and members an application by affidavit shall disclose all material facts relating to company, reduction of share capital, etc where a meeting is called, a notice shall be sent to all creditors, members, debenture holders individually or by advertisement which shall be accompanied by statement disclosing the details of compromise or arrangement the order of the tribunal sanctioning compromises or arrangement shall be filed with the registrar the accounting treatment proposed in the scheme of compromise or arrangement should not be in violation of clause 133 takeover of companies have been included in compromises or arrangements an aggrieved party may appeal to the tribunal in the event of any grievances with respect to the takeover offer in case of companies other than listed companiesclause 231 - this clause corresponds to section 392 of the companies act, 1956 and seeks to provide powers to tribunal to enforce compromise or arrangements with creditors and members as ordered under clause 230 the clause also provides that, if the tribunal is satisfied that such compromise or arrangement cannot be implemented satisfactorily with or without modifications, and the company is unable to pay its debts as per the scheme, it may make an order for winding up of the companyclause 232— this clause corresponds to section 394 of the companies act, 1956 and seeks to provide powers to tribunal to order for holding meeting of the creditors or the members and to make orders on the proposed reconstruction, merger or amalgamation of companies the clause provides for the manner and procedure in which the meeting so ordered by the tribunal to be held where the tribunal orders for transfer of any property or liability, that property or liability shall be transferred to and become the property or the liabilities of the transferee company and any property may, if the orders so directs, be freed from of any charge by virtue of compromises or arrangement the accounting treatment proposed in the scheme of compromise or arrangement should not be in violation of clause 133 every company shall file a certified copy of the order within thirty days with the registrar for registration further the company shall also file a statement in prescribed form and time every year duly certified by a chartered accountant or cost accountant or a company secretary in practice indicating whether the scheme is being complied with in accordance with the orders of the tribunal or not the clause further provides penalty for transferor or transferee company in case transferor or transferee company contravenes provisions of the clauseclause 233 - this is a new clause and seeks to provide for merger or amalgamation between two small companies or between a holding company and its wholly owned subsidiary company or prescribed class or class of companies by giving a notice of the proposed scheme inviting comments or objections or suggestions by both the transferor and the transferee company and registrar, official liquidator or persons affected by the scheme the scheme is to be approved by the respective members at a general meeting holding ninety per cent of total number of shares and also by nine-tenth in value of the creditors of respective companies both the transferor and transferee company has to file declaration of solvency transferee company shall file a copy of the approved scheme with the central government if the central government is of the opinion that such a scheme is not in public interest or in interest of the creditors, it may file an application before the tribunal stating its objections and requesting it to consider the scheme under clause 232 on registration of the scheme, the transferor company shall be deemed to be dissolved this clause also provides for effects of registration of the scheme with the registrar the central government may make rules for merger or amalgamation of companiesclause 234— this is a new clause and seeks to provide the mode of merger or amalgamation between registered companies under the proposed legislation and companies incorporated in the jurisdictions of such countries, as notified from time to time by the central government, by mutual agreement the central government may, in consultation with reserve bank make rules for the purpose of merger or amalgamation provided under this clause this clause further provides that foreign company, subject to the prior approval of reserve bank, may merge or amalgamate into a company registered under this act or vice versa and the terms and conditions of the scheme of merger or amalgamation may provide for the payment of consideration to the shareholders of the merging company in cash or partly in cash or partly in indian depository receiptsclause 235 - this clause corresponds to section 395 of the companies act, 1956 and seeks to provide the manner in which the transferee company shall acquire shares of the shareholders dissenting from the scheme or contract as approved by the majority shareholders holding not less than nine-tenths in value of the shares whose transfer is involved the transferee company shall send a copy of the notice to the transferor company together with an instrument of transfer, to be executed and pay the consideration representing the price payable by the transferee company for the shares such consideration received by transferor company shall be paid into separate bank account and any other consideration shall be held by company in trust and shall be disbursed to the entitled shareholdersclause 236 - this clause corresponds to section 395 of the companies act, 1956 and seeks to provide the procedure and manner in which the registered holder of at least 90 per cent shares of a company shall notify the company of their intention to buy the remaining equity shares of minority shareholders, by virtue of an amalgamation, share exchange, conversion of securities, etc, provision for valuation of shares have been provided by a registered valuer this clause provides for the procedure to be followed for acquiring shares held by minority shareholdersclause 237— this clause corresponds to section 396 of the companies act, 1956 and seeks to provide power to central government to provide for amalgamation of two or more companies in public interest by passing an order to be notified in the official gazette every member or creditor or debenture holder shall have same interest or rights against transferee company as he had in original company and where the interest or right is less than his interest or right, he shall be entitled to compensation by transferee company any aggrieved person may approach tribunal for reassessment of compensationclause 238— this clause seeks to provide mode of registration of offer of schemes or contract involving the transfer of shares every circular containing such offer and recommendation and containing a statement shall be accompanied by requisite information and must be registered with the registrar before issue the registrar may refuse to register any such circular which does not contain the requisite information this clause further seeks to provide that power to appeal shall lie with tribunal in the event of refusal of registration of offer of scheme by registrar of companiesclause 239— this clause corresponds to section 396a of the companies act, 1956and seeks to provide that no company which has been amalgamated or whose shares has been acquired by another company to dispose of its books of account and papers without the prior permission of the central government the government may appoint a person to examine books and papers to ascertain whether they contain any evidence of commission of offence in connection with promotion, formation, management, etc, of the companyclause 240— this clause seeks to provide that the liability in respect of offences committed by the officers in default of transferor company prior to its merger or amalgamation or acquisition shall continue after such merger or amalgamation or acquisitionclause 241— this clause corresponds to section 397 of the companies act, 1956 and seeks to provide the circumstances in which an application may be made to the tribunal by any member of a company or by the central government for relief in cases of oppression and mismanagement in the affairs of the companyclause 242— this clause corresponds to sections 397, 398, 402, 403 and 404 of the companies act, 1956 and seeks to provide for powers of tribunal to pass an order with a view to bring to an end the matters complained of oppression and mismanagement the clause provides that a certified copy of order of tribunal shall be filed with the registrar the tribunal may make any interim order as it thinks just and equitable where tribunal's order require alteration of articles, a certified copy of the same is to be filed with the registrar the company shall be punishable with fineclause 243 - this clause corresponds to section 407 of the companies act, 1956 and seeks to provide for consequence of termination or modifications of certain agreements by an order passed by the tribunal such order shall not give rise to any claims against the company by any person for damages or compensation for loss of office further, no such managing director or director or manager whose agreement is so terminated shall be appointed as such for a period of five years from the date of the order without the leave of the tribunal any of the above person who acts in contravention of this clause shall be punishable with imprisonment or fine or with bothclause 244— this clause corresponds to section 399 of the companies act, 1956 and seeks to provide that the members of a company not less than one hundred in number or not less than one-tenth of the total number of members whichever is less or any member(s) holding not less than one-tenth of the issued share capital and in case of company without share capital not less than one-fifth of the total number of its members can file an application to the tribunal for relief in cases of oppression and mismanagement the clause further provides that the tribunal may waive all or any of the requirements specified thereinclause 245 - this is a new clause and seeks to provide that in case of company having a share capital not less than one hundred members of the company or not less than such present as may be prescribed of the total number of its members, whichever is less, or any member or members holding not less than such present as may be prescribed of the issued share capital of the company, and in the case of a company not having a share capital, not less than one-fifth of the total number of its members or may file an application before the tribunal if they are of the opinion that the management or control of the affairs of company are being conducted in a manner prejudicial to the interests of the company or its members or depositors to restrain the company from oppression or mismanagement the order passed by the tribunal shall be binding on the company and all its members, depositors, auditor including audit firm or expert or consultant or advisor or any other person associated with the company stringent imprisonment and fine shall be imposed on the company in case of default an application for class action may also be filed by a person or association of persons representing the affected personsclause 246 - this clause seeks to provide that clauses 337 to 341(both inclusive)relating to power to punish for contempt of the tribunal, etc, shall apply in relation to a fraudulent application made to the tribunal for oppression and mismanagementclause 247— this is a new clause and seeks to provide that valuation in respect of any property, stocks, shares, debentures, securities, goodwill or any other assets or net worth of a company or its assets or liabilities shall be valued by a person having such qualification and experience and registered as a valuer, in accordance with such rules as may be prescribed such valuer shall be appointed by the audit committee or in its absence by the board of directors of the company the valuer shall make an impartial valuation and exercise due diligence in making valuation stringent fine and punishment for fraud by valuer has been provided forclause 248 - this clause corresponds to section 560 of the companies act, 1956 and seeks to provide the circumstances under which the registrar shall send a notice to the company and all the directors of the company of his intention to remove the name of the company from the register of companies the clause further provides that a company may by a special resolution or with the consent of seventy-five per cent members in terms of paid up share capital may also file an application to the registrar for removing the name of the company from the register of companies where company is regulated under special law, approval of the regulatory body constituted, shall also be obtained and enclosed with application the clause further seeks to provide that at the expiry of the time mentioned in the notice, the registrar may strike of the name of the company from the register of companies, and on the publication in the official gazette of this notice, the company shall stand dissolved however, the registrar, before passing an order shall satisfy himself that sufficient provision has been made for the realisation of all amount due to the company and for the payment or discharge of its liabilities and obligations by the company within a reasonable time the liability of every director, manager or other officer exercising any power of management and every member of company dissolved shall continue and may be enforced as if company had not been dissolvedclause 249 —this is a new clause and seeks to provide certain situations in which no application can be made by the company under sub-clause (2) of clause 248 for removing its name from the register it further provides penalty if a company files an application in violation of the conditions prescribed an application filed by a company for removing its name shall be withdrawn by the company or rejected by the registrar as soon as conditions for removing name of the company from register is brought to his noticeclause 250 - this clause seeks to provide that where a company is dissolved it shall cease to operate as a company and the certificate of incorporation is deemed to have been cancelled except for the purpose of realising the amount due to the company and for the payment or discharge of the liabilities or obligations of the companyclause 251—this is a new clause and seeks to provide penalty in case fraudulent application is made for removal of name of the company from the register of companies with the object of evading the liabilities of the company or with the intention to deceive the creditors or to defraud any other persons stringent punishment for fraud has been provided for further, the registrar may also recommend prosecution against the persons responsible for the filing of such applicationsclause 252—this clause corresponds to sub-section (6) of section 560 of the companies act, 1956 and seeks to provide that any person, aggrieved by an order of the registrar notifying a company as dissolved under clause 248 can file an appeal to the tribunal within 3 years for restoration of the name of the company in the register of companies if tribunal is of the opinion that removal of name is not justified or in the absence of any ground, may order for restoration of the name the company shall file the copy of order with registrar and the registrar shall restore the name and issue a fresh certificate of incorporation the clause further provides that where the name of the company is struck off from the register of companies, the name of the company may be restored, if the tribunal, on an application by the company, any member or creditor, is satisfied that the company was carrying on business or was in operation or otherwise and it is just to restore the name of company to the register of companies before the expiry of twenty yearsclause 253 - this clause corresponds to section 424a of the companies act, 1956and seeks to provide the manner in which a company be declared sick in case a company fails to pay its debt, the creditor may file an application to the tribunal for determination that the company be declared as a sick company an applicant may at any time apply for stay of proceedings of winding up the tribunal may pass an order on the application the company at its own may also file an application to the tribunal for declaring it as a sick company the central government or state government or reserve bank or public financial institution or state level financial institution or scheduled bank, if it has sufficient reasons to believe may also make a reference under this clause for determination of measures with respect to a sick company after filing application before the tribunal the company shall not dispose of its assets except as required in the normal course of business and the board of directors shall not take any steps likely to prejudice the interests of the creditors the tribunal shall determine whether the company is sick or not within a period of sixty days if the tribunal is satisfied that the company is a sick company, it may make order whether it is practicable for the company to make repayment of debts within a reasonable time and if it makes such order it shall give such time to the company as it may deem fit to make repayment of debtclause 254 - this clause seeks to provide that any secured creditor of sick company or the company may make an application to the tribunal for the determination of the measures that may be adopted with respect to the revival and rehabilitation of such company this clause provides for certain situations under which such reference shall abate or shall not be made under this clause further it provides for certain conditions to be fulfilled in case the financial assets of the sick company had been acquired as per the securitisation and reconstruction of financial assets and enforcement of securities interest act, 2002 an application shall be accompanied by audited financial statements of the company and a draft scheme of revival and rehabilitation of the company along with feeclause 255 - this is a new clause and seeks to provide that in computing the period of limitation specified for any suit or application for which an application has been made to the tribunal under sub-clause (1) of clause 253, the period during which the stay order as provided under sub-clause (3) of clause 253, was applicable, shall be excludedclause 256 - this is a new clause and seeks to provide that the tribunal shall fix a date of hearing not later than ninety days from date of the receipt of an application and appoint an interim administrator to convene a meeting of creditors of the company to ascertain whether it is possible to revive and rehabilitate the sick company in case, no draft scheme is filed by the company, the tribunal may direct the interim administrator to take over the management of the company to protect and preserve the assets of the sick company and for its proper managementclause 257— this is a new clause and seeks to provide that the interim administrator shall appoint a committee of creditors having not more than seven members including a representative of every class of creditor, if any the interim administrator may direct any promoter, director or any other key managerial personnel to attend any meeting of the committee of creditors and to furnish such information as considered necessary by the interim administratorclause 258— this is a new clause and seeks to provide that if the tribunal is satisfied with the report of the interim administrator wherein the creditors representing three-fourths in value of the amount outstanding against the sick company present and voting have resolved that it is not possible to revive and rehabilitate such company, the tribunal shall order that the proceedings for the winding up of the company be initiated in case where they have resolved for revival of the company or shall appoint a company administrator for the company and advice such administrator to prepare a scheme of revival and rehabilitation of the sick company the tribunal may, appoint an interim administrator as the company administratorclause 259— this is a new clause and seeks to provide that the interim administrator or company administrator shall be appointed by the tribunal from a databank maintained by central government in a manner as may be prescribed consisting of the names of company secretaries, chartered accountants, cost accountants, or other professionals the tribunal may direct the company administrator to take over the assets or management of the company to assist him in the management of the company the company administrator may engage the services of suitable experts with the approval of the tribunalclause 260— this clause corresponds to section 424h of the companies act, 1956and seeks to provide that the company administrator shall prepare a complete inventory of all assets and liabilities, all books of account, a list of shareholders and creditors, a valuation report in respect of the shares and assets in order to arrive at the reserve price for the sale of any industrial undertaking of the company or for the fixation of the lease rent or share exchange ratio, proforma accounts of company where audited accounts are not available and a list of workmen of the companyclause 261— this clause corresponds to section 424d of the companies act, 1956and seeks to provide that the company administrator shall prepare a scheme of revival and rehabilitation of the sick company the clause further provides for the various measures to be considered while preparing the schemeclause 262— this clause corresponds to section 424d of the companies act, 1956and seeks to provide that the scheme prepared by the company administrator will be placed before the separately convened meetings of secured and unsecured creditors of the sick company if the scheme is approved by the unsecured and secured creditors, the company administrator shall submit the scheme before the tribunal for sanctioning the scheme where the scheme relates to amalgamation of the sick company with any other company, such scheme shall be laid before the general meetings of the companies for approval by their shareholders and separately in the meetings of secured and unsecured creditors the scheme shall be examined by the tribunal and it may also cause the draft scheme to be published in newspapers, etc, for objections and suggestions, if any the tribunal may also make necessary modifications in the scheme in the light of suggestions and objections on the receipt of the scheme, the tribunal after satisfying that the scheme had been validly approved pass an order sanctioning such scheme the tribunal may review any sanctioned scheme and may make such modifications in such scheme as it may deem fit or it may also direct the company administrator to prepare a fresh scheme the sanction accorded by the tribunal shall be conclusive evidence and a copy of the sanctioned scheme shall be filed with the registrar by the sick companyclause 263—this clause seeks to provide that on and from the date of the coming into operation of the sanctioned scheme, its provisions shall be binding on the sick company and the transferee company and also on the shareholders, employees, creditors and guarantors of the said companiesclause 264—this clause corresponds to section 424g of the companies act, 1956and seeks to provide that the tribunal for effective implementation of the scheme may authorize the company administrator to implement a sanctioned scheme where it is difficult to implement the scheme for any reason or the scheme fails due to non-implementation of obligations by the parties concerned, the company administrator or in his absence, the company, the secured creditors, or the transferee company in a case of amalgamation, may make an application before the tribunal for modification of the scheme or to declare the scheme as failed, as the case may be, and may request that the company may be wound up the tribunal shall, pass an order for modification of the scheme or declaring the scheme as failed and pass an order for the winding up of the company further if the secured creditors representing not less than three-fourth in value of the amount outstanding against financial assistance disbursed to the sick company have taken any measures to recover their secured debt, such application shall abateclause 265— this is a new clause and seeks to provide that if the scheme is not approved by the creditors in the manner specified, the company administrator shall submit a report to the tribunal within fifteen days and the tribunal shall order for the winding up of the sick companyclause 266— this clause corresponds to section 424k of the companies act, 1956and seeks to provides that if it appears to the tribunal in the course of scrutiny or implementation of any scheme that any person who has taken part in the promotion, formation or management of the sick company or its undertaking has misapplied or retained, or become liable or accountable for, any money or property of the sick company; or has been guilty of any misfeasance, malfeasance or non-feasance or breach of trust in relation to the sick company, the tribunal may by order, direct him to repay or restore the money or property, with or without interest, as it thinks just, or to contribute to the assets of the sick companyfurther, if the tribunal is satisfied on the basis of the information and evidence with respect to any person who by himself or along with others had diverted the funds or property or had managed the affairs of the company in a manner highly detrimental to the interests of the company, the tribunal shall, direct the public financial institutions, scheduled banks and state level institutions not to provide, any financial assistance for a maximum period of ten years to such person or any firm of which such person is a partner or any company or other body corporate of which such person is a director or to disqualify a person from being appointed as a director for a period of six yearsclause 267— this clause corresponds to section 424l of the companies act, 1956and seeks to provide the punishment if any person violates the provisions relating to the revival and rehabilitation of sick companies or any scheme, or any order, of the tribunal or makes a false statement or gives false evidence or attempts to tamper with the records of reference or appeal filed under this actclause 268— this is a new clause and seeks to provide that no appeal shall lie and no injunction shall be granted by any court or other authority in respect of any action taken or proposed to be taken in pursuance of any power conferred by or under this chapter further, no civil court shall have any jurisdiction in respect of matter which tribunal is empoweredclause 269— this clause corresponds to section 441c of the companies act, 1956and seeks to provide that a fund to be called the rehabilitation and insolvency fund shall be formed for the purposes of rehabilitation, revival and liquidation of sick companies the clause provides for the amounts to be credited to the fund the fund shall be managed by an administrator to be appointed by the central government the fund can be utilised only by the companies who contributed to the fund to the extent to its contribution for making payment to the workmen, protecting the assets of company, etcclause 270 - this clause corresponds to section 425 of the companies act 1956 the clause seeks to provide two modes of winding up such as by the tribunal or voluntaryclause 271 - this clause corresponds to sections 433 and 434 of the companies act,1956 the clause seeks to provide the circumstances under which a company may be wound up by the tribunal the clause further seeks to define the circumstances when a company is deemed to be unable to pay its debtsclause 272 - this clause corresponds to section 439 of the companies act, 1956 and seeks to authorise the persons or authority who can file or present a petition to the tribunal for the winding up of a company this clause further seeks to authorise a secured creditor, holder of any debenture, trustee for the holders of debentures and contributory to file the petition for winding up of a company a petition filed by the company for winding up shall be accompanied by a statement of affairs of the companyclause 273 - this clause corresponds to section 443 of the companies act, 1956 and seeks to provide the time within which the tribunal may pass an order either dismissing the petition for winding up or make an order for winding up; or make any interim order or appoint a provisional liquidator the clause further provides that when a petition is presented on just and equitable ground, the tribunal may refuse it if it is of opinion that any other remedy is availableclause 274 - this clause corresponds to section 439a of the companies act, 1956and seeks to empower the tribunal to direct the company to file its objections along with a statement of its affairs when a petition is made by a person other than the company failure to file the statement of affairs will forfeit the right to oppose the petition and the directors and officers as found responsible for such non-compliance, shall be punishable the clause further seeks to provide punishment to the directors and other officers of the company who have contravened the provisions of this clause such as non-filing of the statement of affairs and audited books of account of the company the clause further provides that the complaint may be filed before special court by registrar, provisional liquidator, company liquidator or any authorised personclause 275 - this clause corresponds to sections 448,449 and 450 of the companies act, 1956 and seeks to provide for the appointment of official liquidator or the liquidator for the purpose of winding up of a company from a panel of professionals maintained by the central government such professional must be having at least ten years of experience in company matters or such other qualifications the clause also empowers the central government to remove the name of a person from the panel of professionals on the ground of misconduct, fraud, etc, after giving him an opportunity of being heard the clause further provides that the tribunal shall specify the terms and conditions and fee payable to the liquidatorclause 276 - this is a new clause and seeks to provide the grounds on which the tribunal may remove the provisional liquidator or the company liquidator as liquidator of the company on the grounds of misconduct, fraud or misfeasance in case of death, resignation or removal, the tribunal may transfer the work assigned to another company liquidator after recording the reasons in writing the clause also authorizes the tribunal to recover such loss or damage from the liquidator who fails to perform his duty after providing him a reasonable opportunity of being heardclause 277 - this clause corresponds to sections 444 and 445 of the companies act,1956 and seeks to provide for the order for the tribunal for the appointment of provisional liquidator or for winding up of a company intimation to be sent to the company liquidator and the registrar within a period of seven days from the date of passing of such order the registrar on receipt of orders shall make an endorsement of it in its record and notify the same in the official gazette the order of the tribunal would be deemed to be a notice of discharge to the officers, employees and workmen of the company except when the business of the company is continuedclause 278 - this clause corresponds to section 447 of the companies act, 1956 and seeks to provide that the winding up order shall operate in favour of all the creditors and contributories of the companyclause 279 - this clause corresponds to section 446 of the companies act, 1956 and seeks to provide that on passing of winding up order or appointment of provisional liquidator, all suits, etc, by or against the company shall not be commenced or if pending, to be proceeded, except with the leave of the tribunal however, this opinion shall not apply to any proceedings pending in appeal before the supreme court or a high courtclause 280 - this clause seeks to provide the jurisdiction of tribunal to entertain or dispose of any suit or proceedings, any claim by or against the company and also to entertain or dispose of any question of law or fact or any other matter arising out of or in relation to winding up of the companyclause 281 - this clause corresponds to section 455 of the companies act,1956 and seeks to provide for submission of report containing the particulars of the nature and details of assets, liabilities, debts, etc, of the company, amount of issued, subscribed and paid-up capital, etc, to the tribunal by company liquidator within sixty days from the date of order of the tribunal the clause also seeks to provide that the company liquidator shall include in his report the manner in which the company was promoted or formed and whether any fraud has been committed by any person in its promotion or formation the company liquidator shall also report on the viability of the business of the company or the steps which are necessary for maximizing the values of the assets of the company the clause also entitles the creditor or a contributory of the company to inspect the report submitted and to take copies thereof or extract therefrom on payment of the feeclause 282 - this is a new clause and seeks to empower the tribunal to consider the report of company liquidator and fix a time limit or revise the time limit already fixed within which the entire proceedings shall be completed and the company dissolved the clause further seeks to empower the tribunal after hearing the company liquidator, creditors or contributories, to order for sale of assets of the company or appoint sale committee to assist the company liquidator in sale the clause seeks to empower the tribunal, to order for investigation where a report is received from the company liquidator or the central government or any person that a fraud has been committed in respect of the company and also order such steps as may be necessary to protect, preserve or enhance the value of the assets of the companyclause 283 - this clause corresponds to section 456 of the companies act, 1956 and seeks to cast duty upon provisional liquidator or the liquidator on the order of the tribunal to take into his custody all the property, effects and actionable claims to which the company to be entitled to and take such steps and measures, as may be necessary, to protect and preserve the properties of the company this clause further provides that all the property and affects of the company shall be deemed to be in the custody of the tribunal from the date of the order for the winding up of the company this clause also provides for filling of an application by the company liquidator seeking directions of the tribunal with regard to surrender or transfer any money, property, books and papers by any trustee, receiver, banker, agent, officer of other employee to the company in liquidationclause 284 - this is a new clause and seeks to provide for co-operation by the promoters, directors, officers and employees, past and present, of the company to the company liquidator in discharge of his functions and duties this clause further seeks to provide that if any of the aforesaid person fails to discharge his obligations, he shall be punishable with imprisonment or with fine or with bothclause 285 - this clause corresponds to section 467 of the companies act,1956 and seeks to provide for settlement of list of contributories, rectification of register of members, to make calls on or adjust the rights of contributories, etc this clause further provides for adoption of procedure by the tribunal while settling the list and rights of contributoriesclause 286 - this is a new clause and seeks to put obligations on directors and managers of limited company whose liability is unlimited and seeks to provide that such a director or manager, shall, in addition to his liability to contribute as an ordinary member, be liable to make further contribution as if he were at the commencements of winding up a member of an unlimited companyclause 287 - this clause corresponds to section 464 and 465 of the companies act,1956 and seeks to provide for the constitution of advisory committee to advice the company liquidator and to report to the tribunal on matters as the tribunal may direct this clause further provides the maximum number of members not more than twelve, being creditors or contributories or other persons as directed by tribunal, who can become members of the committee the clause also seeks to direct company liquidator to convene a meeting of the creditors and contributories to ascertain the composition of the advisory committee it finally seeks to provide that the meeting of advisory committee shall be chaired by the company liquidatorclause 288 - this is a new clause and seeks to provide that the company liquidator shall make quarterly reports to the tribunal with respect to the progress of the winding up of the company the clause further provides that the tribunal may, on an application by the company liquidator, review the orders made by it and make such modifications as it thinks fitclause 289 - this clause corresponds to section 466 of the companies act,1956 and seeks to empower the tribunal to stay the proceedings of winding up for such time not exceeding one hundred and eighty days and on after satisfying itself that it is fair and just to revive and rehabilitate the company the clause also provides that before making an order, the tribunal may require the company liquidator to furnish a report to any relevant facts or matter the clause further cast duty upon the company liquidator to forward a copy of every order to the registrar who shall make an endorsement of the order in the books and records relating to the companyclause 290 - this clause corresponds to section 457 of the companies act,1956 and seeks to provide the powers exercisable by the company liquidator viz power to carry on the business of the company, to sell the movable and immovable property of the company, to defend or institute any suit, to raise any money on the security of assets of the company, etc the clause finally provides that the company liquidator shall perform the duties as may be specified by the tribunalclause 291 - this clause corresponds to section 459 of the companies act, 1956 and seeks to allow the company liquidator, with the sanction of the tribunal, to appoint charted accountants or company secretaries or cost accountants or legal practitioners or such other professionals as may be necessary to assist him in the performance of his duties and functions the clause further seeks for disclosure by the person to the tribunal of any conflict of interest or lack of independence in respect of his appointmentclause 292 - this clause corresponds to section 460 of the companies act, 1956 and seeks to allow company liquidator to administer the distribution of assets among its creditors in accordance with the directions given by the resolution of the creditors or contributories at any general meeting or by the advisory committee in case of conflict, the directions given by the creditors or contributories at any general meeting are deemed to override any directions given by the advisory committee the clause further seeks to empower the company liquidator to summon meetings of the creditors or contributories any person aggrieved by any act or decision of the company liquidator may apply to the tribunal who may confirm, reverse or modify the act or decision and make such further order as it think just in the circumstancesclause 293 - this clause corresponds to section 461 of the companies act, 1956 and seeks to provide that the company liquidator shall keep proper books and make necessary entries he shall also prepare the minutes of the proceedings at meetings the clause further provides that the books may be inspected by any creditor or contributory or through his agentclause 294 - this clause corresponds to section 462 of the companies act, 1956 and seeks to provide for the maintenance of books of account by the company liquidator the company liquidator shall present to the tribunal a receipt and payments account in duplicate duly verified by a declaration, twice in each year during his tenure of office it also seeks for filing of copy of such audited accounts with the registrar and the tribunal this clause further seeks to provide that the company liquidator shall send the printed copy of the audited accounts to every creditor and every contributory this clause also provides for forwarding a copy of accounts to central or state government in case of a government companyclause 295 - this clause corresponds to section 469 of the companies act, 1956 and seeks to provide that the contributory shall contribute any amount due by him this clause further provides in case of an unlimited company, contributory can set off any amount payable to him by the company a director or manager can similarly set off the amount when their liability is unlimited in a limited company this clause finally provides that such set off facility shall also be given to a contributory after all the creditors have been repaid in full irrespective of whether the company is limited or unlimitedclause 296— this clause corresponds to section 470 of the companies act, 1956 and seeks to provide that the tribunal may, at any time after the passing of a winding up order, make calls on all or any of the contributories to the extent of their liability, for payment of any money which the tribunal considers necessary to satisfy the debts and liabilities of the companyclause 297— this clause corresponds to section 475 of the companies act, 1956 and seeks to empower the tribunal to adjust the rights of the contributories among themselves and distribute any surplus among the persons entitledclause 298— this clause corresponds to section 476 of the companies act, 1956 and seeks to empower the tribunal to order for payment out of the assets, of the costs, charges and expenses incurred in winding up in order of priority, when the assets of the company are insufficient to satisfy its liabilitiesclause 299— this clause corresponds to section 477 of the companies act, 1956 and seeks to empower the tribunal to summon and examining before it any officer of the company or person known or suspected to have in his possession any property or books or papers, of the company, or known or suspected to be indebted to the company or capable of giving information relating to formation, promotion or affairs of the company and tribunal may examine the person on oath either by word of mouth or on written investigation or on an affidavit an may in the first case, reduce his answers to writing and enquiry him to sign them this clause further provides that the tribunal may direct the liquidator to file before it a report in respect of property, debt, etc, of the company in possession of other persons it also seeks to empower tribunal to impose an appropriate cost if any officer or person so summoned fails to appear before the tribunal at the appointed time without a reasonable causeclause 300— this clause corresponds to section 478 of the companies act, 1956 and seeks to empower the tribunal to order examination of any person on the report made by the company liquidator that in his opinion, a fraud has been committed by such person in promotion or formation or the conduct of the affairs of the company the person shall be examined on oath and shall answer all the questions as put by the tribunal it provides that company liquidator shall take part in the examination and undertake such legal assistance as may be sanctioned by the tribunalclause 301— this clause corresponds to section 479 of the companies act, 1956 and seeks to provide that the tribunal may pass an order at any time either before or after passing a winding up order, to detained a contributory or any person having property, accounts or papers who is about to abscond or quit india or is about to remove or conceal any of his property, for the purpose of evading payment of calls or to avoid examination of affairs of the company it further seeks to provide that the books and papers and movable property shall be seized and kept safely until tribunal ordersclause 302— this clause corresponds to section 481 of the companies act, 1956 and seeks to provide that the company liquidator shall make an application to the tribunal for dissolution of a company which has been completely wound up the tribunal shall make an order that the company be dissolved from the date of the order, and the company shall be dissolved accordingly a copy of the order shall be filed by the company liquidator within thirty days with the registrar who shall record in the register this clause further seeks to provide punishment with fine for failure on the part of liquidator in forwarding copy to registrarclause 303— this clause corresponds to section 483 of the companies act, 1956 and seeks to provide that the provisions contained in chapter xx shall have no effect in case of any order made by any court in any proceedings for the winding up of a company immediately before the commencement of this act and an appeal against such order shall be filed before such authority competent to hear such appeals before the commencement of the actclause 304— this clause corresponds to section 484 of the companies act, 1956 and seeks to provide the circumstances for voluntarily winding up of a company this clause provides that the company may be wound up if the company passes a resolution requiring the company to be wound up voluntarily as a result of the expiry of the period for its duration, if any, fixed by its articles or on the occurrence of any event in respect of which the articles provide that the company should be dissolved alternatively, the company may be voluntarily wound up by passing a special resolutionclause 305— this clause corresponds to section 488 of the companies act, 1956 and seeks to provide for making declaration of solvency by the company director at least five weeks before the date of passing of resolution to winding up of the company and delivered to the registrar for registration the declaration shall be accompanied by a copy of auditor's report on the profit and loss account and balance sheet of the company and a copy of report by registered valuer on the assets of the company this clause further seeks to provide that where the declaration of the directors proved to be wrong, such directors shall be punishable with imprisonment or with fine or with bothclause 306— this clause corresponds to section 500 of the companies act, 1956 and seeks to provide for calling of meeting of the company and its creditors at which the resolution for the voluntary winding up is to be proposed this clause provides that where twothirds creditors are of the opinion that the company be wound up voluntarily, it shall be wound up voluntarily and where they pass a resolution that the company be wound up by tribunal, an application be filed with the tribunal the company may not be able to pay for its debts it full from the proceeds of assets sold in voluntary winding up and pass the resolution that company is wound up by the tribunal in accordance with the provision of part 1 of the chapter the resolution so passed at a creditors meeting is required to be filed with the registrar within ten days of the passing thereof this clause seeks to provide punishment with fine or imprisonment or with bothclause 307— this clause corresponds to section 485 of the companies act, 1956 and seeks to provide for publication of resolution to wind up voluntarily by advertisement in the official gazette and also in some newspaper circulating in the district where the registered office or the principal office of the company is situated company and every officer of the company who is in default shall be punishable with fineclause 308— this clause corresponds to section 486 of the companies act, 1956 and seeks to give effect that the date of commencement of voluntary winding up shall be the date of passing of the resolution for the sameclause 309— this clause corresponds to section 487 of the companies act, 1956 and seeks to restrict the company to carry on the business except to the extent necessary for its beneficial winding upclause 310— this clause corresponds to section 502 of the companies act, 1956 and seeks to provide that in case of voluntary winding up, the company shall appoint a company liquidator in general meeting from panel prepared by the central government in case creditors do not approve the appointment of such company liquidator, creditors shall appoint another company liquidator this clause further seeks to provide for filing of a declaration within 7 days of the date of appointment by such liquidator disclosing conflict of interest or lack of independence in respect of his appointment, if any, with the company and the creditors and such obligation shall continue throughout the term of appointmentclause 311— this clause corresponds to section 492 of the companies act, 1956 and seeks to provide for removal of liquidator by the company or creditor where the appointment has been made by company or creditor respectively this clause also seeks to provide for vacation of office by liquidator and appointment of company liquidator in case of vacancy occuring as a result of death, resignation, removal or otherwiseclause 312— this clause corresponds to section 493 of the companies act, 1956 and seeks to provide for giving of notice to the registrar of the appointment of a company liquidator along with the name and particulars of the company liquidator in case of contravention company and every officer of the company who is in default shall be punishable with fineclause 313— this clause corresponds to section 491 of the companies act, 1956 and seeks to provide that on the appointment of a company liquidator, all the powers of the board of directors and of the managing or whole-time directors and manager, if any, shall cease, except for the purpose of giving notice of such appointment to the registrarclause 314— this clause corresponds to section 512 of the companies act, 1956 and seeks to provide the powers and duties of a liquidator in a voluntary winding up such as settlement of the list of contributories, call general meetings of the company for the purpose of obtaining the sanction of the company by ordinary or special resolution, maintain regular and proper books of account, prepare quarterly statement of accounts, pay the debts of the company and shall adjust the rights of the contributories among themselves and observe due care and diligence in the discharge of his duties this clause seeks to provide for punishment with fine on the part of company liquidator in case of failure to comply with the provisionsclause 315— this clause corresponds to section 503 of the companies act, 1956 and seeks to provide for appointment of committee by the company in general meeting or by the creditors as the case may be to supervise the voluntary liquidation and assist the company liquidator in discharging his or its functionsclause 316— this clause corresponds to section 508 of the companies act, 1956 and seeks to provide for submission of quarterly report on progress of winding up of company by the company liquidator, the clause further provides that a meeting of the members and the creditors be called as and when necessary but at least one meeting each of creditors and members be held in every quarter and apprise them of the progress of the winding up of the company this clause further seeks to provide punishment with a fine, if the company liquidator fails to comply with the provisions of this clauseclause 317— this clause corresponds to section 519 of the companies act, 1956 and seeks to empower the tribunal to consider the report of the company liquidator and order for investigation, if the report specifies that a fraud has been committed by any person in respect of the company it also seeks for examination and attendance of any person indulging in the promotion or formation or the conduct of business of the companyclause 318— this clause corresponds to section 509 of the companies act, 1956 and seeks to provide for preparation of report by the company liquidator regarding winding up of company showing that the property and assets of the company have been disposed of and its debt are fully discharged or discharged to the satisfaction of the creditors and call a general meeting of the company for the purpose of laying the final winding up accounts before it, and passing of resolution for company's dissolution company liquidator is required to file the report along with copy of the final winding up accounts alongwith the books and papers of the company relating to the winding up and resolution passed in the meeting with the registrar it also seeks to provide for filing of application by the liquidator with the tribunal with the request for passing of order dissolving the company and the tribunal shall pass such order within sixty days from the date of receipt of such application it further seeks to provide for filing of the order of tribunal with the registrar within thirty days this clause seeks to cast duty upon the registrar for publication of a notice in the official gazette that the company is dissolved this clause seeks to provide punishment with fine on the part of company liquidator, if, he fails to comply with the provisionsclause 319—this clause corresponds to section 494 of the companies act, 1956 and seeks to empower the company liquidator of the transferor company to accept shares, etc, by way of compensation wholly or in part for sale of property, etc, of the company where the transferor company is proposed to be wound up voluntarily and the whole or any part of its business or property is proposed to be transferred or sold to the transferee company this clause further seeks to provide that the liquidator may abstain from carrying the resolution into effect or to purchase his interest at a price to be determined by agreement or the registered valuer, where any member of the transferor company did not vote in favour of the special resolution and expresses his dissent in writing addressed to the company liquidator within seven days after passing of the resolution it also seeks to provide that if the company liquidator elects to purchase the member's interest, the purchase money, raised by him in such manner as may be determined by a special resolution, shall be paid before the company is dissolvedclause 320—this clause corresponds to section 511 of the companies act, 1956 and seeks to provide for distribution of property of the company on its winding up in satisfaction of its liabilities pari passu unless the articles of the company otherwise providesclause 321—this clause corresponds to section 517 of the companies act, 1956 and seeks to empower tribunal to amend, vary, confirm or set aside the arrangement entered into between a company and its creditors the arrangement as aforesaid shall be sanctioned by a special resolution and also by the creditors holding three-fourths in value of debtclause 322—this clause corresponds to section 518 of the companies act, 1956 and seeks to allow company liquidator or any contributory or creditor to apply to the tribunal for determination of any question arising in the course of winding up of a company or in respect of the enforcing of calls, the staying of proceedings or any other matter the tribunal may pass an order staying the proceedings in the winding up forthwith to the registrar who shall make a minute of the order in his books relating to the companyclause 323—this clause corresponds to section 520 of the companies act, 1956 and seeks to provide for the payment of all costs, charges and expenses properly incurred in the winding up, including the fee of the company liquidator out of the assets of the company in priority to all other claimsclause 324—this clause corresponds to section 528 of the companies act, 1956 and seeks to provide to admit all debts payable on a contingency, and all claims against the company, present or future, certain or contingent, ascertained otherwise shall be admissible as proof against the company, subject to the provision of clause 325clause 325—this clause corresponds to section 529 of the companies act, 1956 and seeks to provide for application of insolvency rules in winding up of insolvent companies with regard to debts, valuation of annuities, etc this clause further seeks to provide that the liquidator shall enforce such charge on the security of secured creditors representing workmen's portion therein any person entitled to any dividend may make his claimclause 326—this clause corresponds to section 529a of the companies act, 1956and seeks to provide that workmen's dues and debts due to secured creditors shall be paid in priority to all other debtsclause 327—this clause corresponds to section 530 of the companies act, 1956 and seeks to provide for payment of various outstanding claims or dues which will be paid in priority of other debts such as all revenues, taxes, cesses due to the central government or state government, all wages as salary for the time work or payable by way of commission, amount due under employees state insurance act and workmen's compensation act, sum due under provident, pension and gratuity fund subject to the condition that the amount payable shall not exceed such amount as may be notified the debts mentioned in this clause shall be paid in full forthwith if the goods of the company being distrained by any person, such debts shall be given first priorityclause 328—this clause corresponds to section 531 of the companies act, 1956 and seeks to empower the tribunal, after satisfying itself, to declare the transaction relating to preference transfer of property, movable or immovable, or any delivery of goods, payment, execution made, taken or done by or against a company within six months before making winding up application as fraudulent preference and restore the position as if the company had not given that preferenceclause 329—this clause corresponds to section 531a of the companies act, 1956and seeks to empower the tribunal to declare any transfer of property, movable or immovable, or any delivery of goods, etc, made by a company within a period of one year before the presentation of a petition for winding up, as void against the company liquidator being such transfer was not in good faithclause 330—this clause corresponds to section 532 of the companies act, 1956 and seeks to provide for declaration of any transfer or assignment by a company of all its properties or assets to trustees for the benefit of all its creditors shall be voidclause 331—this clause corresponds to section 533 of the companies act, 1956 and seeks to provide protection to the creditor of a company which is being wound up and where the creditor or the person preferred has been paid by the company with the fraudulent motive on the part of the company to relieve from liability or reduce the liability of a person who has stood surety or guarantee to the creditor on behalf of the companyclause 332—this clause corresponds to section 534 of the companies act, 1956 and seeks to prohibit companies which are in insolvent condition from creating any floating charges on their assets, with a view to securing past liabilities it also empowers the central government to prescribe by rules regarding the rate of floating chargeclause 333—this clause corresponds to section 535 of the companies act, 1956 and seeks to provide to save an insolvent company's assets from further losses and enable the company liquidator to get rid of onerous property by disclaiming it this clause further seeks to provide the time schedule within which the company liquidator and tribunal are required to complete such actions as necessary the tribunal before or on granting leave to disclaim may require such notices to be given to persons interested and impose such terms and conditions of granting leave, and make such other order in the matter as the tribunal considers justclause 334—this clause corresponds to section 536 of the companies act, 1956 and seeks to empower the company liquidator in voluntary winding up to sanction transfers after winding up and declare any alteration in the status of members of the company made after the commencement of the winding up as void this clause further seeks to provide declaration of any disposition of the property, etc, as void, if the same is made without the order of the tribunal in the case of a winding up by the tribunalclause 335—this clause corresponds to section 537 of the companies act, 1956 and seeks to prohibit any attachment, sale, distress, etc, without leave of the tribunal against the estate or effects of the company, after the commencement of the winding up this clause provides for non-applicability of above provisions to the proceedings for recovery of any tax or impost or any dues payable to the governmentclause 336—this clause corresponds to section 538 of the companies act, 1956 and seeks to provide that if any past or present officer of the company commits certain offences, such as not delivering movable and immovable property of the company, not delivering books and papers of the company, not giving true disclosures, being guilty of fraud, etc, shall be punishable with imprisonment or with fine or with both the clause further provides punishment to any person who pawns, pledges or disposes of any property in circumstances which amount to an offence and who takes or otherwise receives the property, knowing it to be pawned, etc, shall be punishable with imprisonment and with fineclause 337—this clause corresponds to section 540 of the companies act, 1956 and seeks to provide that if any person who is found to have given false pretences or by means of any other fraud, induced any person to give credit to the company, to defraud the creditors, conceal or removed any part of the property is punishable with imprisonment and with fineclause 338—this clause corresponds to section 541 of the companies act, 1956 and seeks to provide that a company is being wound up should keep proper books of account throughout the period of two years immediately preceding the commencement of the winding up this clause further provided for the situation where it will be deemed as no proper books of account have keptclause 339—this clause corresponds to section 542 of the companies act, 1956 and seeks to provide that for frauds by past or present officers and liability for fraudulent conduct of business is punishable with imprisonment or with fine or with both this clause further seeks to confer power upon tribunal to fix the responsibility of erring directors or officer of the company for fraudulent conduct of business and that shall be liable for option under clause 444clause 340—this clause corresponds to section 543 of the companies act, 1956 and seeks to confer power upon the tribunal to assess the damages against delinquent directors, manager, liquidator or officer of the company for misapplication, retainer, misfeasance or breach of trustclause 341—this clause corresponds to section 544 of the companies act, 1956 and seeks to confer power upon the tribunal to extend the liability of partners or directors of the company under clause 339 relating to fraudulent conduct of business or under clause 340 relating to misfeasance or breach of trustclause 342—this clause corresponds to section 545 of the companies act, 1956 and seeks to empower the tribunal to prosecute the delinquent officers and members of the company for being guilty of offence in relation to the company the clause also provides for fine on the part of person who fails or neglect to give assistanceclause 343—this clause corresponds to section 546 of the companies act, 1956 and seeks to provide that the company liquidator shall exercise general powers of winding up of the company's affairs relating to compromising, settling, collecting debts and paying out claims, etc, subject to the sanction of the tribunalclause 344—this clause corresponds to section 547 of the companies act, 1956 and seeks to provide that in case of every invoice, business letters, etc, issued by the company after the winding up of the company shall contain a statement that the company is wound up in case of any contravention company and every officer of the company who is in default, company liquidator and every receiver or manager who permits noncompliance shall be punishable with fine clause 345—this clause corresponds to section 548 of the companies act, 1956 and seeks to provide that the books and papers of the company be prima facie evidence of the truth of all matters purporting to be recorded therein, in case a company is wound upclause 346—this clause corresponds to section 549 of the companies act, 1956 and seeks to provide for inspection of books and papers relating to winding up of a company by the creditors and contributories it finally provides that the above provisions shall not exclude or restrict any right conferred by any law on the central government or state government or any officer or authority of the governmentclause 347—this clause corresponds to section 550 of the companies act, 1956 and seeks to provide for disposal of books and papers after the affairs of a company have been completely wound up and it is about to be dissolved it further provides that no responsibility shall be imposed upon regarding the books and papers after expiry of five years from the dissolution of the company it also seeks to empower the central government to prescribe by rules the period, form and manner of retention of such books and papers of company which has been wound up any contravention of this clause by a person shall be punishable with impressments or fine or with bothclause 348—this clause corresponds to section 551 of the companies act, 1956 and seeks to provide for furnishing of information or statement in such form containing such particulars as may be prescribe where the winding up of a company is not concluded within one year after its commencement and duly audited by a person qualified to act as auditor of the company, within two months after the expiry of the year such statement shall be filed periodically it also seeks to empower the central government to prescribe by rules such form and manner in which the statement is to be filed by the company liquidator this clause further provide for punishment for company liquidator in case of contraventionclause 349—this clause corresponds to section 552 of the companies act, 1956 and seeks to provide for making payments into the public accounts of india in the reserve bank of india by the official liquidatorclause 350—this clause corresponds to section 553 of the companies act, 1956 and seeks to provide that the company liquidator shall make payments into a scheduled bank and credit it into a special bank account known as the company liquidation account opened by him of the monies received by him as liquidator the clause finally provide for payment of interest and penalty, in case, of the liquidators retains any specified sum for more than the prescribed periodclause 351—this clause corresponds to section 554 of the companies act, 1956 and seeks to provide that the funds of the company in winding up shall not be kept in private sector banksclause 352—this clause corresponds to section 555 of the companies act, 1956 and seeks to provide that unpaid dividends and undistributed assets of the companies being wound up which are in the hands of the liquidator shall be paid by the liquidator into the company liquidation dividend and undistributed assets account the clause also seeks to provide that the above provisions shall also be applied in case of dissolution of a company it also seeks to provide that the liquidator shall forthwith furnish a statement to the registrar this clause also seeks to provide that the liquidator shall be given a receipt from the reserve bank of india for the money paid by him this clause also seeks to provide that the registrar may pass an order for the payment of required sum to the claimant out of the said accountclause 353—this clause corresponds to section 556 of the companies act, 1956 and seeks to provide that if the company liquidator fails to make good the defaults committed by him within fourteen days from the date of service of notice on him, the tribunal may make an order to make good the default on request by any creditor, contributory, or by the registrarclause 354—this clause corresponds to section 557 of the companies act, 1956 and seeks to empower the tribunal, in all matters relating to winding up of a company, to ascertain the wishes of creditors or contributories by calling their meetingsclause 355—this clause corresponds to section 558 of the companies act, 1956 and seeks to provide for filing affidavit before any court, tribunal, judge or person lawfully authorised to receive affidavits in india and in any other country, as the case may beclause 356—this clause corresponds to section 559 of the companies act, 1956 and seeks to empower the tribunal to declare dissolution of company void on an application made by the company liquidator of the company or by any other person at any time within two years from the date of dissolution it also seeks to provide for filing of order of the tribunal, with the registrar who shall register the same and if the company liquidator such person fails so to do, he shall be punishable with fineclause 357—this clause corresponds to section 441 of the companies act, 1956 and seeks to provide that where before the presentation of petition for winding up by the tribunal, a resolution for voluntary winding up has been passed, the proceedings of voluntary winding up of a company shall commence from the date of passing of the resolution, unless the tribunal, on proof of fraud or mistake, thinks otherwise it also seeks to provide that in any other case, the winding up of a company by the tribunal shall be deemed to commence at the time of the presentation of the petition for the winding upclause 358—this clause corresponds to section 458a of the companies act, 1956and seeks to provide that while computing the period of limitation specified for any suit or application in the name and on behalf of a company which is being wound up by the tribunal, the period from the date of commencement of the winding up of the company to a period of one year immediately following the date of the winding up order shall be excludedclause 359—this is a new clause which seeks to empower the central government for appointment of as many official liquidators joint deputy or assistant official liquidator as it may consider necessary and may also appoint joint, deputy or assistant official liquidators to assist him in discharge of his functions in relation to the winding up of companies by the tribunal it also seeks to provide that the salary and allowances to the official liquidator, etc, shall be paid by the central governmentclause 360—this clause corresponds to section 457 of the companies act, 1956 and seeks to provide for the powers and duties of the official liquidator the official liquidator shall exercise powers such as conducting inquiries or investigations, maintaining information and records, etc, of the companies under winding upclause 361—this is a new clause which seeks to provide for winding up of company through summary procedure having assets of book value not exceeding one crore and in any other case, it obtains the consent of all the creditors whether secured or unsecured this clause also seeks to empower the central government to appoint official liquidator as the liquidator of the company, who shall submit a report to the central government indicating whether any fraud has been committed in promotion, formation or management of affairs of the company it also seeks to provide that the central government if satisfied that fraud has been committed, may order for the investigation of the affairs of the companyclause 362—this is a new clause which seeks to provide that the official liquidator shall dispose of all the assets whether movable or immovable and collect the amount payable to the company from the debtors and contributories it also seeks to provide that the official liquidator shall deposit the amount recovered into the public account of india in the reserve bank of indiaclause 363—this is a new clause which seeks to provide for settlement of claims in such manner as may be prescribe of creditors by the official liquidator within 30 days of his appointclause 364—this is a new clause which seeks to provide that any creditor aggrieved by the decision of the official liquidator may apply to the central government who shall either dismiss the application or modify order of official liquidator if the claim has been accepted, the official liquidator shall make payment to the creditors the clause further provides at any stage during settlement of claim central government may referred case to tribunal clause 365 - this is a new clause which seeks to provide for submission of final report to the central government if the reference made to tribunal by the official liquidator when he is satisfied that the company can be finally wound up the central government or as the case may be, the tribunal shall on receiving the report order for the dissolution of the company after the order is passed, the registrar shall strike off the name of the company from the register of companies and a notification to this effect be published in the official gazetteclause 366 - this clause corresponds to section 565 of the companies act, 1956 and seeks to provide that any company, whether before or after the commencement of the act, in pursuance of any act of parliament, duly constituted according to law and consisting of seven or more members may at any time register under this act as unlimited company, company limited by share or as company limited by guarantee the clause further provides that in computing any majority, regard shall be to the number of vote to which each member is entitledclause 367 - this clause corresponds to section 574 of companies act, 1956 and seeks to provide that on compliance of the requirements and payment of fee the registrar shall certify the company to be incorporate under this act and in the case of limited companies that it is limited and thereupon the company shall be so incorporatedclause 368 - this clause corresponds to section 575 of companies act, 1956 and seeks to provide that all the property movable or immovable belongs/vests to the company which is in pursuance of registration shall after the registration pass to the company as incorporated under this act for all estate and interest of the company thereinclause 369 - this clause corresponds to section 576 of the companies act, 1956 and seeks to provide that all the rights or liabilities of any debt or obligation incurred or any contract entered into, by, to, with, or on behalf of the company before the registration shall not be affected by the registrationclause 370 - this clause corresponds to section 577 of the companies act, 1956 and seeks to provide that all suits and other legal proceedings by or against the company shall be unaffected by the registration the clause also provides that execution shall not issue against the property or member of the company on any decree or order obtained in any suit or proceeding, but if property of company is being insufficient winding up order may be obtainedclause 371 - this clause corresponds to 578 of the companies act, 1956 and seeks to provide that all the provision of any act of parliament or other constituting or regulating the company including a company limited by guarantee, the resolution declaring the amount of the guarantee shall be the conditions and regulations of the company, in the same manner, if the company had been formed under this act this clause further provides that all the provisions to apply to contributories and creditors in same manner as if the company is formed under this act with some exceptions mention under the clauses the clause further provides that the provision related to registration of unlimited company as a limited company, to increase in the nominal amount of share capital, power of limited company to determine portion of share capital that shall not be called up except in the event of winding up shall apply, notwithstanding to any provision contained in any act of parliament or other indian law or other instrument constituting or regulating the company the clause further provides that company shall not alter any provision that required to be contained in memorandum the clause further provides that none of the provision shall derogate from any power of altering its constitution or regulations by company this clause also provides the expression" instrument" includes deed of settlement, deed of partnership or limited liability partnershipclause 372 - this clause corresponds to section 586 of the companies act, 1956 and seeks to provide that staying and restraining of suits and other legal proceedings against a company at any time after making petition of winding up but before winding up order, shall, in case of registered company and where the application to stay is by a creditor, extend to suits and other legal proceedings against any contributory of the companyclause 373 - this clause corresponds to section 587 of the companies act, 1956seeks to provide that where order for winding up has been made or provisional liquidator has been appointed for a company registered under this act, no suits or other legal proceedings can be proceeded or commenced against company or any contributory, except by leave of tribunal with such terms as tribunal may imposeclause 374 - this is a new clause this clause seeks to provide that every company which is seeking registration under this part of the bill shall have to meet certain obligations provided under this clause and also proposed to cover through rulesclause 375 - this clause corresponds to section 583 of companies act, 1956 and seeks to provide that every unregistered company may be wound up under this act with such exceptions and some additionsclause 376 - this clause corresponds to section 584 and seeks to provide that a body corporate incorporated outside india may be wound up as an unregistered company if it ceases to carry on business in india whether the body corporate has been dissolved or otherwise ceased to exist as per the law under which it was incorporatedclause 377 - this clause corresponds to section 589 of the companies act, 1956 and seeks to provide that the provision of this clause is in addition only to the provisions related to winding up of the company previously in this act the clause further provides the the tribunal or official liquidator may exercise same power as exercised by them in respect of winding up of companies registered under this actthe clause also provides that a unregistered company shall not, except in the event of its being wound up, be deemed to be a company under this act onlyclause 378 - this clause seeks to provide that nothing in this part shall affect the operation of any enactment or any partnership, limited liability partnership or society or cooperative society, association or company being wound up as a company or as an unregistered company under companies act, 1956, or any act repealed by the actclause 379—this clause corresponds to section 591 of the companies act, 1956 and seeks to provide that where not less than 50 per cent of the paid up capital of a foreign company is held by one or more citizens of india such company shall comply with provisions as if it were a company incorporated in indiaclause 380—this clause corresponds to sections 592 and 593 of the companies act,1956 and seeks to provide the documents which every foreign company shall deliver to the registrar for registration after the establishment of their place of business in india it also seeks to provide that if any alterations are made or occur in the documents, the foreign company shall deliver a return in this regard to the registrarclause 381 - this clause corresponds to section 594 of the companies act, 1956 and seeks to provide that every foreign company shall, in every calendar year prepare a balance sheet and profit and loss account in such forma and containing such particulars an including or having annexed or attached thereto such documents as may be prescribe and deliver a copy of such documents to the registrar in case such document is not in english, a certified translation thereof in english shall also be filed further every foreign company shall also file a list of the places of business in india as at the date of its balance sheetclause 382—this clause corresponds to section 595 of the companies act, 1956 and seeks to provide that every foreign company shall exhibit on the outside of every office or place where it carries on business in india, the name of the company and the country in which it is incorporated, in english and in local languages in general use in the locality in which the office or place is situated the foreign company will write its name, liability of its members and name of the country in which it is incorporated in legible english characters in all business letters, billheads, letter paper, and prospectus, etcclause 383—this clause corresponds to section 596 of the companies act, 1956 and seeks to provide the manner in which documents which are required to be served on a foreign company shall be deemed to be sufficiently servedclause 384 - this clause corresponds to section 600 of the companies act, 1956 and seeks to provide that the provisions relating to issue of debentures, preparation and filing of annual return, preparation of books of account and manner in which they may be kept, registration of charges and inspection and investigation of books of account shall apply mutatis mutandis to a foreign companyclause 385—this clause corresponds to section 601 of the companies act, 1956 and seeks to provide the fee which a foreign company will have to pay to the registrar for registering any documentclause 386 - this clause corresponds to section 602 of the companies act, 1956 and seeks to define the expressions "certified", "director" and "place of business" for foreign companiesclause 387—this clause corresponds to section 603 of the companies act, 1956 and seeks to provide the guidelines for issue of prospectus in india offering to subscribe for securities of a company incorporated outside india the condition requiring or binding an applicant for securities to waive compliance with any requirement shall be treated as void this clause further provides that in case of non-compliance, a director or other person responsible for issue of prospectus shall not incur any liability by reason of non-compliance or contravention if it is proved that he had no knowledge or contravention was an honest mistake of fact this section shall not apply in case the prospectus is issued to existing members or debenture holders of a companyclause 388 - this clause corresponds to section 604 of the companies act, 1956 and seeks to provide that if the prospectus includes a statement purporting to be made by an expert, such statement must be included in the prospectus in the form and context in which it is included and there does not appear in the prospectus, a statement that he has given and has not withdrawn his consentclause 389 - this clause corresponds to section 605 of the companies act, 1956 and seeks to provide that a copy of the prospectus of a company incorporated or to be incorporated outside india certified by the chairman and two other directors of the company as having been approved by resolution of the managing body has to be delivered to the registrar for registration along with the required documentsclause 390 - this clause corresponds to section 605a of the companies act, 1956and seeks to provide rules applicable for the offer of indian depository receipts, the requirement of disclosures in prospectus or letter of offer issued in connection with indian depository receipts, the manner in which the indian depository receipts shall be dealt with in a depository mode and by custodian and underwriters; and the manner of sale, transfer or transmission of indian depository receipts by a company incorporated or to be incorporated outside india clause 391 - this clause corresponds to sections 606 and 607 of the companies act,1956, provides that provisions of clauses 34 to 36 shall apply to applicability of clause 389 for issue of prospectus by a company incorporated outside india or apply to indian company and issue of indian depository receipt by foreign company the clause further provides that chapter xx shall apply mutatis mutandis to the foreign companies closing its place of business in indiaclause 392 - this clause corresponds to section 598 of the companies act, 1956 and seeks to provide that where a foreign company fails to comply with any of the provisions relating to companies incorporated outside india, the company and every officer of in foreign company shall be punishable with fineclause 393—this clause corresponds to section 599 of the companies act, 1956 and seeks to provide that any failure by a company to comply with the provisions of the chapter relating to companies incorporated outside india shall not affect the validity of any contract, dealing or transaction entered into by the company or its liability to be sued in respect thereof however, the company will not be entitled to bring any suit, claim, set-off, etc, until it has complied with the provisions of this chapterclause 394—this clause corresponds to section 619a of the companies act, 1956and seeks to provide that where the central government is a member of a government company, it shall arrange to prepare an annual report on the working and affairs of the company along with audit report and comments of comptroller and auditor general and laid before both houses of parliament it also seeks to provide that where a state government is a member of a government company, it shall also prepare an annual report along with aforesaid enclosures and laid before both the houses of the state legislatureclause 395—this clause corresponds to section 620 of the companies act, 1956 and states to provide that every state government or one state government who is a member of a company where no central government is a member shall cause annual reports to be prepared within time specified in clause 394 and lay before both the house of state legislaturethe clause further provides that provisions of 395 and 394 to apply to government company in liquidation as they apply to any other government companyclause 396—this clause corresponds to section 609 of the companies act, 1956 and seeks to provide that for the purpose of registration of companies, the central government shall establish such number of offices at such places and with such jurisdiction as it thinks fit it further seeks to provide that the central government may appoint such number of officers as it considers necessary, for the registration of companies and discharge of various function under this act this clause also provides for the terms and conditions of service, including the salaries payable to persons aforesaid it finally provides that the central government may direct the preparation of seal or seals for authentication of documents required in connection with the registration of companiesclause 397 - this clause corresponds to section 610a of the companies act, 1956and seeks to permit companies to file returns and documents on paper or in electronic form or stored on any electronic data storage device or computer readable media by the registrar and further seeks to provide that such filings shall also be deemed to be a document for the purposes of this act and shall be admissible as evidence in any proceedings thereunderclause 398 - this clause corresponds to section 610b of the companies act, 1956and seeks to empower the central government to make rules in regard to filing of various applications, documents, returns, etc, service or delivery of any document, notice or communication, etc, maintenance of various applications, documents and returns filed, manner of inspection of the various documents, payment of fees, charges or other sums payable in the electronic form and the manner in which various registry functions viz alteration of memorandum, articles, prospectus, issuing certificate of incorporation, etc, shall be performed by registrar in electronic form this clause also seeks to provide that the central government may notify a scheme to carry out the provisions of this clause through the electronic formclause 399 - this clause corresponds to section 610 of the companies act,1956which provides that the documents in electronic form kept by registrar may be inspected or making a record, etc, from such documents on payment of fees or obtaining certificate from registrar in respect of incorporation of companies this clause further provides that any document issued by court and kept by registrar may not be shared or part with except with the leave of court any certified document issued by registrar shall admissible as evidenceclause 400 - this clause corresponds to section 610d of the companies act, 1956and seeks to provide that the central government may provide in the rules made under clause 398 and clause 399 such value added services through the electronic form and levy fee thereonclause 401— this clause corresponds to section 611 of the companies act, 1956 and seeks to provide that any document to be filed, registered or recorded under this act shall be on payment of fee and chargesclause 402— this clause corresponds to section 610e of the companies act, 1956and seeks to provide that all the provisions of the information technology act, 2000 relating to the electronic records, shall apply in relation to the records in electronic form as specified under this actclause 403 - this clause provides that any documents to be submitted, filed, registered or recorded or any fact or information required or authorised to be registered under this act shall be submitted, filed, registered within specific time with specific fee or with additional fee after 270 days after the specified timethe clause further provides the penalty if default is made to submit, file, register or record any document, fact or informationclause 404 - this clause corresponds to section 612 of the companies act, 1956 and seeks to provide that all fees, charges and other sums received by any registrar, additional, joint, deputy, or assistant registrar, or any other officer of the central government shall be paid into the public account of india in the reserve bank of indiaclause 405—this clause corresponds to section 615 of the companies act, 1956 and seeks to provide that the central government may order any company, to furnish such information or statistics with regard to its constitution or working, within specified time such an order shall be published in the official gazette this clause further seeks to provide that the central government for the purpose of satisfying itself may order such company or companies to produce such records or documents or allow inspection thereof or furnish such further information as that government may consider necessary this clause also seeks to provide that where a foreign company carries on business in india, all the references in this section shall be applicable to the foreign company as well failure to comply with an order under this clause or knowingly furnishing of any incorrect or in complete information will lead to imposition of fine on company and every officer of the company who is in default shall be punishable with imprisonment or fine or bothclause 406 - this clause corresponds to section 620a of the companies act, 1956and seeks to provide that the central government may notify a company to be a nidhi company and which complies with such rules as are prescribed by the central government for regulation of such class of companies the central government may also notify the provisions of this act which shall not apply or shall apply with such exception or modification and adoptation as may be specified in that notification to a nidhi company or nidhi of any class or description as may be specified in that notification this clause finally provides that the notification proposed to be issued shall be laid before each house of parliamentclause 407 - this clause corresponds to section 10fd and 10fr of the companies act, 1956 and seeks to provide definitions of chairperson, judicial members, member, president, technical member in appellate tribunal and tribunalclause 408 - this clause corresponds to section 10fb of the companies act, 1956and seeks to deal with the constitution of national company law tribunal (nclt) the nclt shall consist of president and such number of judicial and technical members as the the central government may deem necessaryclause 409 - this clause corresponds to section 10fd of the companies act, 1956and seeks to provide the qualifications of president and members of the tribunalclause 410— this clause corresponds to section 10fr of the companies act, 1956and seeks to deal with the formation of the national company law appellate tribunal (ncalt) consisting of chairperson and judicial and technical members which shall not exceed elevenclause 411—this clause corresponds to section 10fr of the companies act, 1956and seeks to provide that chairperson of (nclat) shall be a judge of supreme court or chief justice of high court, the judicial member shall be a judge of high court or judicial member of tribunal for 5 years the technical member shall be a person having at least experience of 25 years in banking, management, economics, etcclause 412—this clause provides that the president, chairperson and judicial member of the tribunal shall be appointed in consultation with chief justice of india it further provides that the members of the tribunal and the technical members of the appellate tribunal shall be appointed on the recommendation of selection committeeclause 413 - this clause corresponds to sections 10fe and 10ft of the companies act, 1956 and seeks to provide the terms of office of president, chairperson and members of the tribunal or appellate tribunalclause 414— this clause corresponds to sections 10fg and 10fw of the companies act, 1956 and seeks to provide the salary, allowances and other terms and conditions of service of members of the tribunal or appellate tribunalclause 415 - this clause corresponds to sections 10fh and10fs of the companies act, 1956 and seeks to provide that in the event of death, resignation, absence, etc, of the president or chairperson, the senior-most member of the tribunal or appellate tribunal shall discharge the duties of president or chairperson, as the case may beclause 416— this clause corresponds to sections 10fi and 10fu of the companies act, 1956 and seeks to deal with the resignation of president, members it provides that president, chairperson or member may address his resignation to the central governmentclause 417 - this clause corresponds to sections 10fj and 10fv of the companies act, 1956 and seeks to provide the grounds for removal of the chairperson or president or members of the appellate tribunal or tribunal by the central government in consultation with the chief justice of india it provides removal on the ground of insolvency, conviction of offence involving moral turpitude, on being mentally or physically incapable, etc the central government in consultation with the supreme court will regulate the procedure for the inquiry, if any, of the alleged misbehaviour of the membersclause 418 - this clause corresponds to sections 10fk and 10ga of the companies act, 1956 and seeks to deal with the staff of the tribunal and appellate tribunal it provides that the central government in consultation with tribunal and appellate tribunal provide the officers and staff of the tribunal or appellate tribunal who shall discharge their function under the superintendence and control of the chairperson or president or members, as the case may beclause 419 - this clause corresponds to section 10fl of the companies act, 1956and seeks to deal with the number of benches of the tribunal it provides that the principal bench shall be at new delhi further, it provides that powers of the principal bench shall be exercised by two members and a single member may also function as a bench in certain cases the central government in consultation with the president may for disposal of the such class or classes of case(s) as may be prescribed relating to rehabilitation, restructuring or reviving the winding up of companies may constitute special benches consisting of three or more members lastly, in case of difference of opinion, matter shall be decided by the majorityclause 420 - this clause corresponds to section 10fm of the companies act, 1956and seeks to deal with orders passed by the tribunal it provides that the tribunal may rectify any mistake within two years from the date of order this clause further provides that a copy of each order shall be sent to all the concerned parties by the tribunalclause 421 - this clause corresponds to section 10fq of the companies act, 1956and seeks to provide appeal against the order of the tribunal in the appellate tribunal it provides that appeal may be filed within 45 days from the date of order and in case appellate tribunal is satisfied that delay is justified then further period of 45 days is allowed the appellate tribunal after according an opportunity of hearing may confirm, modify or set aside order of the tribunal and provide copy of order to the tribunal and parties to appealclause 422 - this is a new clause which deals with expeditious disposal of cases before tribunal or appellate tribunal it provides that the tribunal or the appellate tribunal shall make every effort to dispose of cases within three months from the date of commencement of proceedings before tribunal or filing of appeal before appellate tribunal if any application or petition or appeal is not disposed off with in the period specified, the tribunal/appellate tribunal shall record the reasons for not disposing the same and president/chairperson may take into consideration in reasons and extend the period not exceeding ninety daysclause 423— this clause corresponds to section 10gf of the companies act, 1956and seeks to provide that an appeal against the order of the appellate tribunal shall be filed before the supreme court within sixty days and in case of justified delay within a further period of sixty days only on any question of law arising from such an orderclause 424 - this clause corresponds to section 10fza of the companies act, 1956and seeks to deal with the procedure to be adopted by the tribunal or appellate tribunal to dispose of any proceeding it provides that tribunal or appellate tribunal shall not follow the code of civil procedure, 1908 but would be guided by the principles of natural justice the tribunal or the appellate tribunal may regulate their own procedure however, while discharging their functions, it would have the power vested with the civil court in respect of any suit for summoning and enforcing the attendance of any person, examining him on oath, etc orders passed by it shall be enforced as a decree passed by the court and may be sent for execution to the court under whose jurisdiction, the company or the person, as the case may be, has registered office or resides respectivelyclause 425— this clause corresponds to section 10g of the companies act, 1956 and seeks to provide that the tribunal or the appellate tribunal shall have the same powers of contempt as that of high court under the provisions of the contempt of courts act, 1971clause 426— this clause deals with delegation of powers it provides that the tribunal or the appellate tribunal may by general or special order authorise any person to inquire into the matter connected with any proceeding and report to itclause 427— this clause corresponds to section 10fy of the companies act, 1956and seeks to provide that the president, chairperson, members, officers and employees of the tribunal and the appellate tribunal shall be treated as public servants within the meaning of section 21 of the indian penal codeclause 428— this clause corresponds to section 10fz of the companies act, 1956and seeks to deal with the protection of action taken in good faith by the president, chairperson, members, officers, etc, of the tribunal or appellate tribunalclause 429 - this clause corresponds to section 10fp of the companies act, 1956and seeks to deal with the power to take the assistance of chief metropolitan magistrate, chief judicial magistrate or the district collector by the tribunal for taking into custody all property, books of account, etc the above acts shall not be questioned in any court or before any authority in case of a sick company or winding up of any companyclause 430 - this clause corresponds to section 10gb of the companies act, 1956this clause deals with exclusive jurisdiction of the tribunal or the appellate tribunal and provides that no civil court shall have jurisdiction in respect of any matters that are assigned to the tribunal or the appellate tribunalclause 431 - this clause corresponds to section 10gc of the companies act, 1956and seeks to provide that proceedings of the tribunal or appellate tribunal shall not be invalid merely on the ground of existence of any vacancy or defect in its constitutionclause 432 - this clause corresponds to section 10gd of the companies act, 1956and seeks to provide that a party to the proceeding may appear in person or authorise a chartered accountant, cost accountant, company secretary or legal practitioner to present the case before the tribunal or the appellate tribunalclause 433 - this clause corresponds to section 10ge of the companies act, 1956and seeks to provide that provisions of the limitations act, 1963 shall apply to the proceedings before the tribunal or the appellate tribunalclause 434 - this clause corresponds to sections 10fa and 647a of the companies act, 1956 and seeks to provide that on formation of tribunal, all matters pending before clb shall stand transferred to the tribunal similarly, all proceedings relating to compromise, arrangements and reconstruction and winding up of the companies pending before district courts and high courts shall be transferred to the tribunal except winding up proceedings pending before district courts or high courtsclause 435 - this is a new clause which deals with the establishment of special courts by the central government in consultation with the chief justice of the high court within whose jurisdiction the judge is to be appointed it further provides that person so appointed as judge of special court shall be one who immediately before such appointment was a sessions judge or an additional sessions judgeclause 436 - this is a new clause which seeks to provide that all offences under this act shall be triable by the special courts however, where an accused is produced before magistrate, the magistrate may order detention of such person and if he considers the detention unnecessary, he shall forward the case to the special court the special court would have the liberty to try summary proceedings for offences punishable with imprisonment for a term not exceeding three years although it may order for the regular trialclause 437 - this is a new clause which seeks to deal with appeal and revision it provides that high courts shall have the power of appeal or revision as if special courts were court of session trying cases within the local limits of the jurisdiction of the high courtclause 438 - this is a new clause which deal with application of code to the proceedings before the special court it provides that special court shall be deemed to be a court of session and the provisions of the code of criminal procedure, 1973 shall apply to the special courtclause 439 - this clause corresponds to some of the provisions of sections 621 to631 of the companies act, 1956 and seeks to provide that every offence punishable under this act shall be non-cognizable court shall take cognizance only on complaint made by registrar, shareholder of the company or a person authorised by central governmentclause 440 - this is a new clause which deals with transitional power it provides that till such time special courts are established the existing court of session will continue to exercise jurisdiction however, it will not affect the powers of high court to transfer any caseclause 441 - this clause provides for the compounding of certain offences by tribunal or regional director in certain cases before the investigation has been initiated or is pending under this act it further provides the procedure followed for compounding of offence it clause also provides penalty for any officer or other employee of the company who fails to comply with the order of tribunal or regional directorclause 442 - in this clause central government is authorised to maintain a panel of experts to be called as 'mediation panel' for mediation between parties during the pendency of any proceedings before the central government or tribunal the clause further provides that any of the parties to proceeding or central government or tribunal suo motu refer any matter pertaining to proceeding to such number of experts from the mediation panel as they deem fit the clause further provides that any person not agreed with recommendation of the mediation panel may file objection to central government or tribunal clause 443— this clause corresponds to section 624a of the companies act, 1956and seeks to provide that the central governments may appoint any number of company prosecutors who shall have the same powers and privileges as that of public prosecutorclause 444 - in this clause the central government is authorised to direct any company prosecutor or any authorised person to present and appeal from an order of acquittal passed by any court other than high courtclause 445 - this is a new clause which deals with compensation for accusation without reasonable cause before the special court or court of sessionclause 446 - this clause corresponds to section 626 of the companies act, 1956 and seeks to provide that any fine imposed or any part thereof may be applied towards payment of cost of proceedings or towards payment of reward to person on whose information the proceedings were institutedclause 447 - this clause provides penalty for the person who is found to be guilty of fraud and this clause also provides definitions for fraud, wrongful gain and wrongful lossclause 448— this clause corresponds to section 628 of the companies act, 1956 and seeks to deal with penalty for false statement it provides that if in any return, report, etc, required by, or for, the purpose of the provisions of this act, any person who makes a false statement or omits material facts, shall be liable for action under section 444clause 449— this clause corresponds to section 629 of the companies act, 1956 and seeks to provide that in case of giving false evidence, the concerned person shall be liable to imprisonment and fineclause 450 - this clause corresponds to section 629a of the companies act, 1956and seeks to provide penalty where no specific penalty is provided elsewhere in the companies actclause 451— this clause seeks to provide that if any default is committed for the second or subsequent occasion within a period of 3 years, it shall be punishable with imprisonment as provided and twice the amount of fine for such defaultclause 452— this clause corresponds to section 630 of the companies act, 1956 and seeks to provide penalty for wrongful procession or holding of the property of the company by any officer or employee of company the clause further provides the refund of the benefits that have been derived from such property or cash or in default to undergo imprisonment for a term which may extend to two yearsclause 453— this clause corresponds to section 631 of the companies act, 1956 and seeks to provide punishment for improper use of the title words, 'limited', 'private limited' or 'opc limited' with fine which shall not be less than five hundred but may extend to two thousand for everyday on which that name has been usedclause 454 - this is a new clause which provides that central government may appoint adjudicating officers for adjudging penalty under the provision of this act the company or officer shall be given an opportunity to be heard before imposing any penalty aggrieved person may appeal to regional director any person not paying penalty shall be punished with imprisonment or fine or with bothclause 455— this is a new clause and seeks to deal with dormant company it provides that a dormant company shall be one which has not been carrying any business or has not made any significant accounting transaction in the last two financial years such a company may make an application to registrar for obtaining the status of a dormant company the registrar shall maintain the register of dormant company, which shall keep the minimum number of directors and pay annual fees this clause further provides that in case of a company which has not filed balance sheet, profit and loss account or annual return for two financial years, the registrar shall enter the name in the register maintained for dormant company however, if the dormant company fails to comply with the requirements of this clause then the registrar shall have the power to strike off its name this clause also provides all the definition of inact company, and significant accounting transactionclause 456— this clause seeks to provide that no suit, prosecution or other legal proceedings shall lie against the government or any other person authorised by the government for acts done or intended to be done in good faithclause 457 - this clause corresponds to section 635aa of the companies act, 1956and seeks to provide that no official shall be compelled to disclose to any court, tribunal or other authority the source of any information which has led to an order of investigation into the affairs of the companyclause 458 - this clause corresponds to section 637 of the companies act, 1956 and seeks to empower the central government to delegate any of its powers or functions to any authority or officer by notification it provides that any power can be delegated other than power to make rules it further provides that a copy of notification shall be placed before both the houses of parliament this clause also provides for that sebi to have power under relevant provisions of this act to file a complaint in court of competant jurisdiction for listed companies in respect of forward dealing and insider trainingclause 459— this clause corresponds to section 637a of the companies act, 1956and seeks to provide that while according approval, sanction, consent, confirmation etc, giving directions or granting exemptions the central government or the tribunal may impose such conditions or restrictions as it thinks fit subject to the payment of feeclause 460— this clause corresponds to section 637b of the companies act, 1956and seeks to provide that whenever any application is to be made to central government or any document is required to be filed with registrar within specified time, the central government may, after recording the reasons for delay, condone the delayclause 461— this clause corresponds to section 638 of the companies act, 1956 and seeks to provide that the central government shall prepare annual report on the working of the act and lay before both the houses of parliamentclause 462— this clause gives power to central government by notification directs that any provisions of this act to apply or not to apply to such class or classes of companies as specified in the public interest the notification to be laid in both the houses of parliament for modification and such shall be issuedclause 463 - this clause corresponds to section 633 of the companies act,1956 and seeks to provide about the power of court to grant relief to an officer of a company in respect of negligence, default, breach of duty, misfeasance or breach of trust provided that he has acted honestly and reasonably and having regard to all the circumstances of the caseclause 464— this clause corresponds to section 11 of the companies act, 1956 and seeks to provide that the number of persons in any association or partnership shall not exceed one hundred this clause further provides that the above restriction shall not apply to an association or partnership, constituted by professionals the provision shall not apply to hindu undivided familyclause 465— this clause deals with repealing of companies act, 1956 and registration of companies (sikkim) act, 1961 however, the provisions relating to producer companies shall be applicable mutatis mutandis as if companies act has not been repealed it further provides that till the formation of tribunal and appellate tribunal, the provisions of companies act, 1956 with regard to company law board shall continue to applyclause 466 - this clause corresponds to section 10fa of the companies act, 1956and seeks to provide that on the constitution of the tribunal and appellate tribunal, the company law board shall stand dissolved it provides that consequent upon formation of the tribunal or appellate tribunal, the persons holding the office of chairman, vice-chairman or members shall stand vacated without any compensation for premature termination further, the officials on deputation shall be reverted to their parent cadre and the officials of the board shall become officials of the central government with the same rights and privilegesclause 467— this clause gives power to central government to amend schedule to this act the alteration laid by the central government shall be made before both houses of parliament for any modification or annulment to have effectclause 468 - this clause corresponds to section 643 of companies act, 1956 and seeks to provide that central government may make rules relating to the matters of winding up of companies the clause further provides that without prejudice to the generality of the foregoing power, the rule may provide for the matters specified in clause the clause also provides the rules made by supreme court on the matter referred in this clause shall continue to be in force till central government makes rulesclause 469 - this clause corresponds to section 642 of companies act, 1956 and seeks to provide that central government may make rules for the purpose of this act this clause further provides that central government may make rule for all or any of the matters which by this act are required to be, or may be, prescribed or in respect of which provision is to be made the clause further provides the penalty for the contravention and clause also provides that every rule made under this section and regulation made by security exchange board of india to be laid before each house of parliament for any modification or annulmentclause 470 - this is a new clause and seeks to empower central government to remove difficulty by publishing order in the official gazette in case of any difficulty arises in giving effect to the provision of this act before the expiry of 3 years from the date of commencement of clause 1 of this act the clause further provides that every order made to be laid before each house of parliament as soon as possible financial memorandumclause 125 provides for establishment of investor education and protection fund for promotion of investor awareness and protection to carry out the objectives of the fund, the central government shall constitute an authority with such members but not exceeding seven, as the central government may appoint, to administer the fund this clause is similar to section 205c of the companies act, 1956 (hereinafter referred to as the existing act)clause 132 provides for constitution of national financial reporting authority (nfra)to advise the central government on matters relating to formulation and laying down of accounting and auditing policies and standards, and monitoring & enforcing compliance with such standards and overseeing the quality of service of the concerned professions the terms and conditions of appointment of the chairperson, members, secretary and employees of the authority shall be such as may be prescribed this clause is broadly similar to section 210a of the existing act with reference to national advisory committee on accounting standards (nacas)clause 210 of the bill empowers the central government to appoint inspectors to investigate the affairs of companies clause 224 of the bill empowers the central government to prosecute the offenders on the basis of the report of the investigation the expenses on investigation, under certain circumstances are to be initially defrayed by the central government out of the moneys provided by the parliament and are ultimately recoverable from the persons concerned clause 206 empowers the registrars and the officers/authorities authorised by the central government to inspect the books of account of companies these clauses are similar to the provisions of section 235, 242 and 209a of the existing actclause 211 provides for establishment of serious fraud investigation office to investigate frauds relating to a company serious fraud investigation office already set up by the central government (in terms of the government of india resolution no 45011/16/2003-adm i dated 2nd july, 2003) shall deemed to be the serious fraud investigation office till such time the serious fraud investigation office under the proposed legislation is establishedclause 269 empowers the central government to appoint an independent administrator to manage the rehabilitation and insolvency fund this clause is similar to sections 441a to 441d of the companies act, 1956 with some modificationsclause 359 empowers central government to appoint official liquidators including joint, deputy or assistant official liquidators who are to be the whole time officers of the central government, ie, whose salary shall be paid by central government clause 359 is similar to the provisions of section 448 of the existing actclause 396 of the bill empowers the central government to establish registration offices to appoint registrars, additional, joint, deputy and assistant registrars and to prescribe terms and conditions of their service clause 396 is similar to the provisions of section 609 of the existing actclauses 408, 410 and 414 of the bill provide for the constitution of the national company law tribunal and national company law appellate tribunal respectively these clauses are similar to sections 10fb to 10 fg and 10fr to 10 fx of the companies act, 1956 for establishment of these institutions, the funds are already being provided by the parliamentclause 435 of the bill empowers the central government to establish or designate, by notification, such number of special courts as may be necessary for the purpose of providing speedy trial of offences under the proposed legislation the intention under this clause is to designate specified judge or judges from existing judicial set up to try on offences under the proposed billclause 443 of the bill empowers the central government to appoint company prosecutors for the conduct of prosecutions arising out of the proposed legislation the company prosecutors already appointed under the existing act will continue to function under the proposed legislationclause 454 of the bill provides for appointment of adjudicating officers to impose penalties for procedural non-compliance the officers not below the rank of registrar shall be notified as 'adjudicating officers'the expenditure on an authority to administer investor education and protection fund, national financial reporting authority, inspecting officers, serious fraud investigation office, administrator to manage the rehabilitation and insolvency fund, appointment of whole time official liquidators (including joint, deputy or assistant official liquidators), setting up of registration offices, appointment of registrars, additional, joint, deputy and assistant registrars, constitution of national company law tribunal and national company law appellate tribunal, special courts, appointment of company prosecutors and appointment of adjudicating officers will be met out of the existing budgetary allocations of the ministry of corporate affairsthe bill, therefore, will not involve any additional expenditure of recurring or nonrecurring nature memorandum regarding delegated legislationsub-clause (3) of clause 1 proposes to empower the central government to prescribe different dates to be appointed for bringing into force different provisions of the actitem (f) of sub-clause (4) of clause 1 proposes to empower the central government to specify any body corporate to which provisions of the act shall apply subject to exceptions, modifications or adaptations sub-clause (1) of clause 2 proposes to empower the securities and exchange board of india to specify the salient features of a prospectus to be contained in an abridged prospectusitem (ii) of sub-clause (11) of clause 2 proposes to empower the central government to specify by notification any other body corporate not to be a body corporate or corporationitem (iv) of sub-clause (13) of clause 2 proposes to empower the central government to prescribe items of cost for companies covered under clause 148item (ii) of sub-clause (29) of clause 2 proposes to empower the central government to notify any district court to exercise all or any of the jurisdictions conferred upon the high courtsub-clause (31) of clause 2 proposes to empower the central government to prescribe in consultation with the reserve bank of india any categories of amount which shall not be included in depositsitem (iv) of sub-clause (51) of clause 2 empower the central government to prescribe any officer to be key managerial personnel of a companysub-clause (68) of clause 2 proposes to empower the central government to prescribe higher amount of paid-up share capital in case of a private companyitem (b) of sub-clause (71) of clause of 2 proposes to empower the central government to prescribe higher amount of paid-up share capital in case of a public companyitem (v) of sub-clause (72) of clause 2 proposes to empower the central government to notify institutions to be public financial institutionsitem (ix) of sub-clause (76) of clause 2 proposes to empower the central government to prescribe any other person as a related party with reference to a companyitem (iii) of sub-clause (77) of clause 2 proposes to empower the central government to prescribe the manner in which a person may become relative of any other personitem (i) of sub-clause (85) of clause 2 proposes to empower the central government to prescribe any higher amount of paid-up share capital in case of company to be treated as a 'small company'item (ii) of sub-clause (85) of clause 2 proposes to empower the central government to prescribe any higher amount of turnover in case of a company to be treated as a 'small company'proviso to item (ii) sub-clause (87) of clause 2 proposes to empower the central government to prescribe any class or classes of companies which shall not have layers of subsidiaries beyond such number as may be prescribedproviso 1 to 4 to sub-clause (1) of clause 3 propose to empower the central government to prescribe form of written consent of nominee of sole member, manner of withdrawal of consent by nominee, manner of giving notice regarding change of nominee by sole member and manner of intimating to registrar about such nominations or changes thereinitem (b) of sub-clause (3) of clause 4 proposes to empower the central government to prescribe any words on expression which may be part of the name of a companysub-clause (4) of clause 4 proposes to empower the central government to prescribe the form, manner and fees required for making an application to registrar for keeping a name reserved by a companysub-clause (2) of clause 5 proposes to empower the central government to prescribe matters which may be included in the articlessub-clause (5) of clause 5 proposes to empower the central government to prescribe form and manner of giving notice to registrar regarding entrenched articlesitem (a) of sub-clause (1) of clause 7 proposes to empower the central government to prescribe the manner in which the memorandum shall be signed by all the subscribersitem (b) of sub-clause (1) of clause 7 proposes to empower the central government to prescribe form of declaration in which an advocate, chartered accountant, cost accountant or company secretary or director, manager, etc, engaged in the formation of a company, shall declare that all requirements of the act and rules in respect of registration and the matters precedent or incidental thereto have been complied withitem (e) of sub-clause (1) of clause 7 proposes to empower the central government to prescribe the items for proof of identity of a subscriber to the memorandum of a companyitem (f) of sub-clause (1) of clause 7 empower the central government to prescribe the particulars of the persons mentioned in the articles as the first directors of the companyitem (g) of sub-clause (1) of clause 7 proposes to empower the central government to prescribe the form and manner in which the consent to act as first directors of the company and the particulars of the interests of persons mentioned in the articlessub-clause (1) of clause 8 proposes to empower the central government to prescribe the manner and conditions for issuing licence to a company to be formed for charitable objects, etcsub-clause (2) of clause 7 proposes to empower the central government to prescribe the form of certificate of incorporation of a companysub-clause (6) of clause 8 empower the central government by order to revoke license granted to a company registered under clause 8 if company contravenes any requirement of this clause and further direct the company to add word 'limited' or 'private limited' to its nameitem (a) sub-clause (1) of clause 11 proposes to empower the central government to prescribe a form of declaration and manner of its verification to be filed by a director or subscriber in respect of payment of value of shares for which they have agreed as their subscriptionsub-clause (2) of clause 12 proposes to empower the central government to prescribe the manner in which the verification of the company's registered office is to be madeitem (d) of sub-clause (3) of clause 12 proposes to empower the central government to prescribe the documents on which the company is to get its name printedsub-clause (4) of clause 12 proposes to empower the central government to prescribe the manner for verification of change in the situation of the company's registered officeproviso to sub-clause (5) of clause 12 proposes to empower the central government to prescribe the manner in which application shall be made for change of registered office from jurisdiction of one registrar to another with in the same statesub-clause (4) of clause 13 proposes to empower the central government to prescribe form and manner of application for approval for change of registered from one state to anothersub-clause (7) of clause 13 proposes to empower the central government to prescribe time and manner in which the company has to file the order of the central government approving the alteration involving transfer of registered office of a company from one state to another with the registrar of each stateitem (i) to sub-clause (8) to clause 13 proposes to empower the central government to prescribe details in respect of resolution to be published in newspapers in case of change of objects by a company which has raised money from publicitem (ii) to sub-clause (8) to clause 13 proposes to empower sebi to make regulations regarding exit opportunity to be given to dissenting share holderssub-clause (2) of clause 14 proposes to empower the central government to prescribe the manner in which copy of altered articles of association are to be filed with the registrarsub-clause (1) of clause 17 proposes to empower the central government to prescribe fee, which members are required to pay to the company for sending a copy of the memorandum, articles, agreements and resolutions referred to in clause 117, on his requestsub-clause (1) of clause 20 proposes to empower the central government to prescribe the electronic modes and other modes in which the documents can be served on a company or an officer thereofsub-clause (2) of clause 20 proposes to empower the central government to prescribe the electronic modes and other modes in which the documents can be served to the registrar or an any member of the companysub-item (i) of item (a) of sub-clause (1) of clause 26 proposes to empower the central government to prescribe such other persons whose names, etc, are to be given in prospectussub-item (ii) of item (a) of sub-clause (1) of clause 26 proposes to empower the central government to prescribe time for issue of allotment letters and refunds, etc, relating to issue of securitiessub-item (iii) of item (a) of sub-clause (1) of clause 26 proposes to empower the central government to prescribed manner of disclosure about details of monies, ie utilised and unutilised out of previous issuesub-item (v) of item (a) of sub-clause (1) of clause 26 proposes to empower the central government to prescribe the other persons whose consent is required for issue of prospectussub-item (viii) of item (a) of sub-clause (1) of clause 26 proposes to empower the central government to prescribe capital structure of the company, in prospectussub-item (ix) of item (a) of sub-clause (1) of clause 26 proposes to empower the central government to prescribe such other main objects of public offer, terms of the present issue and other particulars which are to be given in prospectussub-item (xiii) of item (a) of sub-clause (1) of clause 26 proposes to empower the central government to prescribe details of directors including their appointments and remuneration and extent of their interests in the company, in prospectussub-item (xiv) of item (a) of sub-clause (1) of clause 26 proposes to empower the central government to prescribe manner of discloser about sources of promoter contributionsub-item (i) of item (b) of sub-clause (1) of clause 26 proposes to empower the central government to prescribe this in addition to reports of the auditor of the company with respect to profit, loss, assets and liabilities of the company, in prospectussub-item (ii) of item (b) of sub-clause (1) of clause 26 proposes to empower the central government to prescribe matters relating to company's subsidiaries, in prospectusproviso to sub-item (ii) of item (b) of sub-clause (1) of clause 26 proposes to empower the central government to prescribed manner to set out the prospectus for a company whose period of five years has not elapsed from the date of incorporationsub-item (iii) of item (b) of sub-clause (1) of clause 26 proposes to empower the central government to prescribe the manner in which reports are to be made by the auditors for last five financial years in prospectusitem (d) of sub-clause (1) of clause 26 proposes to empower the central government to prescribe matters and reports to be included in prospectus issued by a company in addition to information required under this sectionproviso to sub-clause (1) of clause 27 proposes to empower the central government to prescribe details to be included in notice in reference of resolution relating to varying the terms of a contractsub-clause (1) of clause of 28 proposes to empower the central government to prescribe the procedure with respect to offer of shares by existing numbers to the publicitem (b) of sub-clause (1) of clause 29 proposes to empower the central government to prescribe the class or classes of public companies which shall issue the securities in dematerialised form onlysub-clause (2) of clause 31 proposes to empower the central government to prescribe changes, which have occurred in the first offer of the security and the succeeding offer of securities to be included in information memorandumsub-clause (3) of clause 39 proposes to empower the central government to prescribe the manner and time within which the amount received shall be returned if the minimum amount has not been subscribed within time specified this sub-clause also empowers sebi to prescribe period within which minimum amount can be subscribedsub-clause (4) of clause 39 proposes to empower the central government to prescribe the manner in which a return of allotment has to be filed with the registrar by companiesitem (b) of sub-clause (3) of clause 40 proposes to empower the securities and exchange board of india to specify time, in which the monies received from applicant in pursuance of the prospectus, has to be returnedsub-clause (6) of clause 40 proposes to empower the central government to prescribe the conditions on which a company may pay commission to any person for subscription to its securitiesclause 41 proposes to empower the central government to prescribe conditions and manner in which a company may issue depository receipts to be dealt in depository mode in any foreign countrysub-clause (1) of clause 42 proposes to empower the central government to prescribe form and manner of making an offer of private placement by a companyitem (a) of sub-clause (2) proposes to empower the central government to prescribe number of persons to whom private placement offer can be made and conditions with regard to private placement offeritem (b) of sub-clause (2) proposes to empower the central government to prescribe the investment size amount to be allowed under any private placement offersub-clause (7) proposes to empower the central government to prescribe the manner of record of offers to be kept by a company with regard to offers made in clause 42sub-clause (9) proposes to empower the central government to prescribe manner of filing with the registrar a return of allotment and to prescribe the information which may be included in the list of security holders who have been allotted securities under this clausesub-item (ii) of item (a) of clause 43 proposes to empower the central government to prescribe rules regarding equity share capital with different rights as to dividend voting or other wise which may be issued by companiessub-clause (3) of clause 46 proposes to empower the central government to prescribe the manner of issue of a share certificate or the duplicate thereof the form of such certificate and the particulars to be entered in the register of members and other matterssub-clause (3) of clause 52 proposes to empower the central government to prescribe class of companies and the accounting standards which may be complied with by such companies which may apply securities premium account for the purposes provided in this clauseitem (d) of sub-clause (1) of clause 54 proposes to empower the central government to prescribe rules for issuing sweat equity shares by unlisted companiessub-clause (2) of clause 55 proposes to empower the central government to prescribe conditions for issuing and redeeming preferential shares which are liable to be redeemed after 20 yearsfirst proviso to sub-clause (2) of clause 55 proposes to empower the central government to prescribe the percentage of shares which shall be redeemed on an annual basis by companies engaged in infrastructure projectsitem (d) of second proviso of sub-clause (2) of clause 55 proposes to empower the central government to prescribe a class of companies and accounting standards prescribed for such companies under clause 133, in whose case securities premium account shall not be allowed for redemption of preference sharessub-clause (1) of clause 56 proposes to empower the central government to prescribe share transfer formsub-clause (3) of clause 56 proposes to empower the central government to prescribe the manner of notice of the application to be given by a company to the transferee in case of transfer of partly paid sharessub-clause (1) of clause 59 proposes to empower the central government to prescribe the form in which an application is to be made to the tribunal for rectification of register of members and also proposes to empower central government to notify competent court outside india in respect of foreign members or debenture holders residing outside indiaitem (b) of sub-clause (1) of clause 61 proposes to empower the central government to prescribe manner of making application to tribunal regarding consolidation and division of share capitalitem (b) of sub-clause (1) of clause 62 proposes to empower the central government to prescribe conditions with respect to issue of shares to employees under the scheme of employee stock optionitem (c) of sub-clause (1) of clause 62 proposes to empower the central government to prescribe the conditions for valuation report of a registered valuer to determine the price of sharesitem (f) of sub-clause (2) of clause 63 proposes to empower the central government to prescribe conditions which shall be followed by a company before issuing bonus sharessub-clause (1) of clause 64 proposes to empower the central government to prescribe the form for filing notice for alteration of share capital to the registraritem (b) of sub-clause (3) of clause 67 proposes to empower the central government to prescribe the requirements with regard to scheme for purchase / subscription of shares to be held by trustees for the benefit of employees proviso to item (c) of sub-clause (3) of clause 67 empowers central government to prescribe the manner of disclosure in respect of voting rights not exercised directly by employeesproviso to item (d) of sub-clause (2) of clause 68 proposes to empower the central government to notify ratio of debt to capital and free reserves for a class or classes of companiesitem (g) of sub-clause (2) of clause 68 proposes to empower the central government to prescribe rules for buy-back of securities by a company, which is not listed with any stock exchangesub-clause (6) of clause 68 proposes to empower the central government to prescribe the form of declaration of solvency by directors of a companysub-clause (9) of clause 68 proposes to empower the central government to prescribe particulars to be entered in register maintained regarding securities bought back by a companysub-clause (10) of clause 68 proposes to empower the central government to prescribe particulars to be filed, by a company, with registrar of companies and securities and exchange board of india after completion of buy-back of securitiesexplanation i to clause 68 proposes to empower the central government to notify securities as specified securities other than employees' stock optionsub-clause (3) of clause 71 proposes to empower the central government to prescribe terms and conditions with respect to issue of secured debenturessub-clause (5) of clause 71 proposes to empower the central government to prescribe the conditions for governing the appointment of trustees for issue of debentures by a companysub-clause (6) of clause 71 proposes to empower the central government to prescribe rules for debenture trustee to redress grievances of debenture holderssub-clause (13) of clause 71 proposes to empower the central government to prescribe procedure for securing of the issue of debentures, the form of debenture trust deed, the quantum of debenture redemption reserve required to be created, the procedure for debenture holder to inspect trust deed and to obtain copies thereof and other related matterssub-clause (1) of clause 72 proposes to empower the central government to prescribe the manner in which a holder of shares or debentures of a company may nominate any person to whom his shares or debentures shall vest in the event of his deathsub-clause (2) of clause 72 proposes to empower the central government to prescribe the manner in which joint holder of shares and debentures may nominate any person in case of death of all the joint holderssub-clause (3) of clause 72 proposes to empower the central government to prescribe the manner in which a nomination is to be varied or cancelledsub-clause (4) of clause 72 proposes to empower the central government to prescribe the manner in which any person may be appointed and become entitled to the shares or debentures of the company, in the event of the death of the nominee during his minoritysub-clause (2) of clause 73 proposes to empower the central government to make rules in consultation with the reserve bank of india with respect to acceptance of deposits by a company from membersitem (a) of sub-clause (2) of clause 73 proposes to empower the central government to prescribe the form and manner in which particulars are to be contained in circular to members of company for inviting depositsitem (d) of sub-clause (2) of clause 73 proposes to empower the central government to prescribe the manner and extent for providing insurance against depositssub-clause (1) of clause 76 proposes to empower the central government to prescribe the amount of networth or turnover for public companies which may accept deposits from public it also seeks to empower central government to prescribe rules, in consultation with reserve bank of india, to be complied with by companies accepting public deposits second proviso to this sub-clause empowers the central government to make rules regarding creation of charge on its assets by a company against deposits being accepted from publicsub-clause (1) of clause 77 proposes to empower the central government to prescribe the form and manner in which a charge can be created and the fee to be paid to the registrarproviso of sub-clause (1) of clause 77 proposes to empower the central government to prescribe additional fee on payment of which an application for registering charges can be made within a period of three hundred dayssub-clause (2) of clause 77 proposes to empower the central government to prescribe the form and manner in which certificate of registration of charges is to be issued by registrar of companies to the company or person in whose favour the charge is createdclause 78 proposes to empower the central government to prescribe the form and manner in which a person in whose favour the charge is created may apply for registration of charge when company fails to do so and also the fee which registrar may charge for such registrationsub-clause (1) of clause 81 proposes to empower the central government to prescribe the form and particulars to be included in register of charges to be kept by the registrarsub-clause (2) of clause 81 proposes to empower the central government to prescribe fee to be paid by a person for inspecting the register of charges kept by the registrarsub-clause (1) of clause 82 proposes to empower the central government to prescribe the form in which a company shall intimate the registrar of the payment or satisfaction of chargessub-clause (2) of clause 82 proposes to empower the central government to specify the notice to call upon the show cause notice to be sent to the charge holder within not exceeding fourteen days by registrar as to why payment or satisfaction in full should not be recorded as intimated to registrarsub-clause (1) of clause 84 proposes to empower the central government to prescribe fee for registering particulars of the receiver, person or instrument with the registrarsub-clause (1) of clause 85 proposes to empower the central government to prescribe the form and manner of register of charges and floating charges to be kept by a company at its registered office and the particulars to be incorporated in the registeritem (b) of sub-clause (2) of clause 85 proposes to empower the central government to prescribe fee for inspecting the register of charges by a person other than a member or creditorsub-clause (1) of clause 88 proposes to empower the central government to prescribe the form and manner in which following registers are to be maintainedsub-clause (4) of clause 88 proposes to empower the central government to prescribe the manner in which part of the register referred to in sub-clause (1) of clause 88 called "foreign register" is to be kept in any country outside indiasub-clause (1) of clause 89 proposes to empower the central government to prescribe the form and time of declaration by a person to the company who does not hold the beneficial interests in shares but whose name is there as a member in the register of members of the company, specifying the name and other particulars of the person who holds the beneficial interest in such sharessub-clause (2) of clause 89 proposes to empower the central government to prescribe particulars to be included in declaration to the company by a person who holds or acquires a beneficial interest in the shares of a company but whose name is not there in the register of members of the companysub-clause (3) of clause 89 proposes to empower the central government to prescribe the form and particulars to be included therein in case of any change in a declaration made by a person under sub-clause (1) or sub-clause (2) of clause 89sub-clause (4) of clause 89 proposes to empower the central government to make rules to provide manner of holding and disclosing beneficial ownershipsub-clause (6) of clause 89 proposes to empower the central government to prescribe the form of return in which declarations made under this clause shall be filed by the company with the registrarsub-clause (1) of clause 91 proposes to empower the central government to prescribe the manner of notice to be given to members of a company before closing the register of members or debenture holders or other security holderssub-clause (1) of clause 92 proposes to empower the central government to prescribe form containing the particulars in respect of annual returnitem (i) of sub-clause (1) of clause 92 proposes to empower the central government to prescribe matters relating to certification of compliances and disclosers to be included in the annual returnitem (j) of sub-clause (1) of clause 92 proposes to empower the central government to prescribe details in respect of shares held by or on behalf of the foreign institutional investors to be included in the annual returnitem (k) of sub-clause (1) of clause 92 proposes to empower the central government to prescribe other matters which may be included in the annual returnsub-clause (2) of clause 92 proposes to empower the central government to prescribe the amount of paid up capital and turnover of a company whose annual return shall be certified by a company secretary in practice it also empowers central government to prescribe form of certificate to be given by such company secretarysub-clause (3) of clause 92 proposes to empower the central government to prescribe the extracts of the annual return that shall form part of the board's reportssub-clause (4) of clause 92 proposes to empower the central government to prescribe fee and additional fee for filing annual return with the registrarclause 93 proposes to empower the central government to prescribe the form of a return to be filed with registrar with respect of change in number of shares held by promoters and top 10 shareholderssecond proviso of sub-clause (1) of clause 94 proposes to empower the central government to prescribe the period for which registers, returns and records are required to be keptsub-clause (2) of clause 94 proposes to empower the central government to prescribe fee for inspecting the registers maintained under sub-clause (1) of clause 88 by a person who is not a member or a debenture holder of companyitem (b) of sub-clause (3) of clause 94 proposes to empower the central government to prescribe fee for a copy of registers or entries or returns maintained under sub-clause (1) of clause 88sub-clause (1) of clause 101 proposes to empower the central government to prescribe the manner of notice to be given for calling a general meeting of the companythird proviso of sub-clause (1) of clause 105 proposes to empower the central government to prescribe a class or classes of companies whose member shall not appoint proxyfourth proviso of sub-clause (1) of clause 105 proposes to empower the central government to prescribe the number of members and number of shares for which a person may act as proxysub-clause (7) of clause 105 proposes to empower the central government to prescribe the form of proxyclause 108 proposes to empower the central government to prescribe the class or classes of companies and manner in which a member may exercise his right to vote at a meeting by electronic meansitem (a) of sub-clause (1) of clause 109 proposes to empower the central government to prescribe higher amount (not less than rs 5 lakh ) of paid-up share capital to be held by members for being eligible to demand pollsub-clause (5) of clause 109 proposes to empower the central government to prescribe the manner in which the chairman of meeting shall get the poll process scrutinised and report thereonsub-clause (1) of clause 110 proposes to empower the central government to prescribe the manner and notify the matters on which a business can be transacted at a general meeting through postal ballotclause 115 proposes to empower the central government the manner in which notice shall be given by a company to its member for resolutions requiring special noticeitem (h) of sub-clause (3) of clause 117 proposes to empower the central government to prescribe any other resolutions or agreements which are to be filed with the registrarsub-clause (1) of clause 118 proposes to empower the central government to prescribe the manner in which, minutes of proceedings of every general meeting, meeting of creditors, resolution passed by postal ballot and meetings of the board and any of its committees shall be prepared and signedsub-clause (2) of clause 119 proposes to empower the central government to prescribe fee for furnishing a copy of minutes of any general meeting to any member of the companyitem (b) of clause 120 proposes to empower the central government to prescribe form and manner of keeping or inspecting or giving copies of any document, record or register or minutessub-clause (1) of clause 121 proposes to empower the central government to prescribe the manner in which a report on annual general meeting shall be preparedsub-clause (2) of clause 121 proposes to empower the central government to prescribe fee and additional fee to be paid by the company for filing report on agm with the registrarsecond proviso of item (b) of sub-clause (1) of clause 123 proposes to empower the central government to make rules with regard to declaration of dividends out of post profits (transferred to reserves)sub-clause (2) of clause 124 proposes to empower the central government to prescribe the form and manner and other particulars of placing of statement referred to in such clause on website of the company or any other website approved by the central governmentsub-clause (5) of clause 124 proposes to empower the central government to prescribe the form of statement to be filed by company with authority administering the fund on transfer of unpaid money to investor's education and protection fundsub clause (6) of clause 124 proposes to empower the central government to prescribe details to be included in the statement to be sent by company to authority at the time of transfer of shares in respect of which unpaid/unclaimed dividend has been transferred to funditem (n) of sub-clause (2) of clause 125 proposes to empower the central government to prescribe other amounts which shall be transferred to investor education and protection fundsub-clause (3) of clause 125 proposes to empower the central government to prescribe rules for utilisation of investor's education and protection fundsub-clause (6) of clause 125 proposes to empower the central government to prescribe rules for manner of administration of fund, appointment of chairpersons and ceo and holding of meetings of authoritysub-clause (7) of clause 125 proposes to empower the central government to prescribe rules for providing to authority offices, officers and employees and other resourcessub-clause (8) of clause 125 proposes to empower the central government to prescribe the form in which authority shall maintain separate accounts and other relevant records after consulting comptroller and auditor-general of indiasub-clause (11) of clause 125 proposes to empower the central government to prescribe the form and time for preparing annual report by the authority giving a full account of its activities during the financial yearsecond proviso of sub-clause (1) of clause 128 proposes to empower the central government to prescribe the manner in which books of account can be kept in electronic modesub-clause (3) of clause 128 proposes to empower the central government to prescribe the conditions for making available financial information maintained outside the country first proviso of sub-clause (3) of clause 129 proposes to empower the central government to prescribe statement containing salient features of the financial statement of the subsidiary of a company to be attached along with the financial statement of the companysecond proviso of sub-clause (3) of clause 129 proposes to empower the central government to prescribe manner of consolidation of accounts of companiessub-clause (1) of clause 131 proposes to empower the central government to prescribe the form and manner of application to be made by a company for obtaining approval of tribunalsub-clause (3) of clause 131 proposes to empower the central government to prescribe rules for steps which may be taken by directors in relation to revised financial statementsitem (ii) of sub-clause (2) of clause 132 proposes to empower the central government to prescribe the manner in which national financial reporting board shall monitor and enforce the compliance of accounting and auditing standardsitem (iii) of sub-clause (2) of clause 132 proposes to empower the central government to prescribe other related matters for overseeing by national financial reporting boarditem (iv) of sub-clause (2) of clause 132 proposes to empower the central government to prescribe such other functions to be performed by national financial reporting boardsub-clause (3) of clause 132 proposes to empower the central government to prescribe the composition, qualification of chairperson of national financial reporting board and intimation to be made by the central government and membersitem (i) of sub-clause (4) of clause 132 proposes to empower the central government to prescribe class of bodies corporate or persons for which the national financial reporting authority shall have the power to investigate the matters of professional misconduct and also to prescribe the manner of such investigation this item also empowers the central government to prescribe any other profession in addition to chartered accountant, cost and works accountant, company secretary to which these provisions may applyitem (iii) of sub-clause (4) of clause 132 proposes to empower the central government to prescribe the manner in which any person aggrieved by any order of the national financial reporting authority shall appeal before the appellate authoritysub-clause (5) of clause 132 proposes to empower the central government to prescribe the rules for procedure in respect to transaction of business at meetings of national financial reporting authoritysub-clause (6) of clause 132 proposes to empower the central government to prescribe the terms and conditions of service of secretary and employees of national financial reporting authoritysub-clause (8) of clause 132 proposes to empower the central government in consultation with the comptroller and auditor-general of india to prescribe form and manner of maintenance of books of account and other books by national financial reporting authoritysub-clause (10) of clause 132 proposes to empower the central government to prescribe the form and time for preparing annual report by national financial reporting authority giving full account of its activities during the financial yearclause 133 proposes to empower the central government to prescribe standards of accounting or any addendum theretoitem (h) of sub-clause (3) of clause 134 proposes to empower the central government to prescribe the form for particulars of contracts or arrangements with related parties to be included in board's reportitem (m) of sub-clause (3) of clause 134 proposes to empower the central government to prescribe the manner of conservation of energy, technology absorption, foreign exchange earnings and outgo to be included in board reportitem (p) of sub-clause (3) of clause of 134 proposes to empower the central government to prescribe the sum of paid up share capital of public companies which shall be required to include a statement of formal annual evaluation in the board's reportitem (q) of sub-clause (3) of clause 134 proposes to empower the central government to prescribe other matters which may be included in board's reportitem (a) of sub-clause (4) of clause 135 proposes to empower the central government to prescribe the manner of disclosure of contents of corporate social responsibility policy in the board's report and on the company's websitefirst proviso to sub-clause (1) of clause 136 proposes to empower the central government to prescribe the form of statement containing salient features of documents referred to in this sub-clausesecond proviso to sub-clause (1) of clause 136 proposes to empower the central government to prescribe the net worth and turnover of companies and manner in which such company shall circulate their financial statementssub-clause (1) of clause 137 proposes to empower the central government to prescribe the manner to file the financial statements with the registrar within thirty days of the date of annual meeting of the company alongwith filing feesecond proviso to sub-clause (1) of clause 137 proposes to empower the central government to prescribed such additional fees for filing of the financial statements adopted in adjourned annual general meetingsub-clause (2) of clause 137 proposes to empower the central government to prescribe the manner of filing (with the registrar) the financial statements and where annual general meeting has not been held, along with the statement of facts indicating the reasons for not holding the annual general meetingsub-clause (1) of clause 138 proposes to empower the central government to prescribe class of companies which shall be required to appoint internal auditorsub-clause (2) of clause 138 proposes to empower the central government to prescribe rules regarding manner and intervals in which internal audit shall be conducted and reported to boardfirst proviso of sub-clause (1) of clause 139 proposes to empower the central government to prescribe the conditions for making an appointment of an auditor in a company sub-clause (2) of clause 139 proposes to empower the central government to prescribe class or classes of companies to which requirement regarding rotation of auditors shall be applicablesub-clause (4) of clause 139 proposes to empower the central government to prescribe manner in which the companies shall rotate their auditors in pursuance of sub-clause (2) of clause 139sub-clause (1) of clause 140 proposes to empower the central government to prescribe manner in which approval shall be obtained for removal of an auditor before his termsub-clause (2) of clause 140 proposes to empower the central government to prescribe form of statement to be file by auditor who has resignedsub-item (i) of item (d) of sub-clause (3) clause 141 proposes to empower the central government to prescribe such sum beyond which a person or his relative or partner shall not hold any securities or interests of the company or its subsidiary, etc, for being eligible for appointment as an auditor of a companysub-item (ii) of item (b) of sub-clause (3) of clause 141 proposes to empower the central government to prescribe the amount beyond which the auditor cannot be indebted to the company or its subsidiary, holding or associate company in order to be eligible to be appointed as an auditorsub-item (iii) of item (d) of sub-clause (3) of clause 141 proposes to empower the central government to prescribe the amount given by a person or his relative or partner as a guarantee or security in connection with the indebtedness of any third person to the company or its subsidiary, or its holding or associate company or a subsidiary of such holding company which shall disqualify a person from being appointed as an auditor of the companyitem (e) of sub-clause (3) of clause 141 proposes to empower the central government to prescribe the business relationships which if a person has with the company or its subsidiary, or its holding or associate company, or a subsidiary of such holding company shall not be appointed as an auditor of the companyitem (g) of sub-clause (3) of clause 141 proposes to empower the central government to prescribe the number of companies beyond which a person shall not be appointed as an auditor of the companysub-clause (2) of clause 143 proposes to empower the central government to prescribe the matters, which an auditor shall include in its report to the members of the companyitem (j) of sub-clause (3) of clause 143 proposes to empower the central government to prescribe additional matters to be included in auditors' reportsub-clause (8) of clause 143 proposes to empower the central government to prescribe the powers and duties of branch auditors or company's auditor with reference to the audit of branch offices of a companysub-clause (10) of clause 143 proposes to empower the central government to prescribe the standards of auditing of any addendum theretosub –clause (12) of clause 143 proposes to empower the central government to prescribe the time and manner in which the auditor shall report the matters relating to frauds in a company to the central governmentsub-clause (i) of clause 144 proposes to empower the central government to prescribe other kind of services which shall not be provided by an auditorsub-clause (1) of clause 148 proposes to empower the central government to prescribe goods and services, productions/provisions of which shall require the companies producing/ providing them to include/ maintain cost records in the books of accountsub-clause (1) of clause 148 proposes to empower the central government to prescribe the items of cost to be included in the books of account kept by specified class of companiessub-clause (2) of clause 148 proposes to empower the central government to prescribe amount of networth or turnover in respect of companies required to maintain cost records so that companies having networth or turnover beyond such amount are covered in the class for which cost audit may be directed by the central government it also proposes to empower central government to specify the manner in which audit of cost records of a company shall be conductedsub-clause (3) of clause 148 proposes to empower the central government to prescribe the manner in which a cost accountant shall be appointed in a companysecond proviso to item (b) of sub-clause (1) of clause 149 proposes to empower the central government to prescribe class or classes of companies who shall have at least one woman directorsub-clause (3) of clause 149 proposes to empower the central government to prescribe minimum number of independent directors in any class or classes of public companiesitem (d) of sub-clause (5) of clause 149 proposes to empower the central government to prescribe amount beyond which having pecuniary relationship with the company, its holding, subsidiary company, etc, will make a person in-eligible for appointment as independent directorsub item (f) of sub-clause (5) of clause 149 proposes to empower the central government to prescribe other qualification for a person to be appointed as independent directorsub-clause (1) of clause 150 proposes to empower the central government to notify any body, institute or association to maintain data bank containing particular of the independent directors from where an independent director may be selectedsub-clause (3) of clause 150 proposes to empower the central government to prescribe the rules in accordance with which data bank shall be created and maintainedclause 151 proposes to empower the central government to prescribe terms and conditions and manner in which a listed company may have one director elected by such small shareholdersexplanation to clause 151 proposes to empower the central government to prescribe the sum of nominal value up to which holding of shares shall make a person as a "small shareholders"sub-clause (5) of clause 152 proposes to empower the central government to prescribe the manner in which consent given by a director shall be filed with the registrarclause 153 proposes to empower the central government to prescribe the form, manner and the fees payable in respect of application for director identification numberclause 154 proposes to empower the central government to prescribe manner in which director identification number shall be allotted by the central governmentsub-clause (1) of clause 157 proposes to empower the central government to specify apart from registrar any other authority to whom director identification number may be furnished by a company under such sub-clause this sub-clause also empowers the central government to prescribe the form, manner and fees with which intimation regarding director identification number of all its directors shall be furnished by a company to the central governmentsub-clause (1) of clause 160 proposes to empower the central government to prescribe the amount higher than one lakh rupees which shall be accompanied with notice referred to under such clausesub-clause (2) of clause 160 empowers the central government to prescribe the manner in which the company shall inform its members of the candidature of a person for office of directorsub-clause (1) of clause 168 proposes to empower the central government to prescribe manner, time and form in which company shall intimate registrar in respect of notice of resignation given by a director under this sub-clauseproviso to sub-clause (1) of clause 168 of the bill proposes to empower the central government to prescribe the manner in which a director himself may forward a copy of his resignation to the registrar under this clausesub-clause (1) of clause 170 proposes to empower the central government to prescribe the particulars in respect of directors and key managerial personnel to be entered in the register required to be kept by the company pursuant to this clausesub-clause (2) of clause 170 proposes to empower the central government to prescribe the particulars and documents to be contained in the return to be filed with the registrar under such sub-clauseproviso to sub-clause (1) of clause 173 proposes to empower the central government to issue directions by way of notifications, to the effect that provisions in respect of subclause (1) shall not apply in relation to any class or description of companies or shall apply subject to such exceptions, modifications or conditions as may be specified in the notificationsub-clause (2) of clause 173 proposes to empower the central government to prescribe other audio visual means of communication, which are capable of recording and recognising the participation of the directors and of recording and storing the proceedings of such meetings, which may be used for holding meetings of the boardproviso to sub-clause (2) of clause 173 proposes to empower the central government to specify such matters which shall not be dealt with in a meeting of the board through video conferencing or other audio visual meanssub-clause (1) of clause 175 proposes to empower the central government to prescribe electronic means through which resolution may be circulated for passing it through circulationsub-clause (1) of clause 177 proposes to empower the central government to prescribe class or classes of companies which shall have to constitute an audit committee of the boardsub-clause (9) of clause 177 proposes to empower the central government to prescribe class or classes of companies which shall establish a vigil mechanisms and the manner in which such mechanism shall be establishedsub-clause (1) of clause 178 proposes to empower the central government to prescribe class or classes of companies in which shall constitute the nomination and remuneration committee of the boarditem (k) of sub-clause (3) of clause 179 proposes to empower the central government to prescribe other matters in respect of powers which shall be exercised by board by means of resolution passed at meetings of boardsub-clause (1) of clause 184 proposes to empower the central government to prescribe the manner in which a director shall make disclosure in respect of companies, firms and other bodies corporate in which he has any concern or interestsub-clause (6) of clause 186 proposes to empower the central government to prescribe class or classes of companies, which are registered under section 12 of securities and exchange board of india act, 1992, for the purpose of applying the provisions of such sub-clause to them the clause also empowers the central government to prescribe the limits within which such companies shall take inter corporate loans or depositssub-clause (9) of clause 186 proposes to empower the central government to prescribe the particulars which shall be included and the manner in which the register shall be kept by company giving loan or guarantee or providing security or making an acquisition item (b) of sub-clause (10) of clause 186 empower the central government to prescribe the fees payable for taking extracts or obtaining copies of any part of register maintained under sub-section (9) by any companysub-clause (12) of clause 186 proposes to empower the central government to prescribe rules for the purposes of clause 186 sub-clause (3) of clause 187 proposes to empower the central government to prescribe the particulars to be contained in the register to be kept by a company in respect of securities, which are not held in its namesub-clause (1) of clause 188 proposes to empower the central government to prescribe the conditions subject to which a company may enter into any contract or arrangement referred to in such sub-clausefirst proviso to sub-clause (1) of clause 188 proposes to empower the central government to prescribe the lower limit of paid-up capital of a company or the upper limit of transactions of a company for entering into contract or arrangement, except with the prior approval by way of special resolutionsub-clause (1) of clause 189 proposes to empower the central government to prescribe particulars and manner in which register(s) in respect of contracts or arrangements to which sub-clause (2) of clause 184 or clause 188 applies shall be kept by every companysub-clause (4) of clause 189 proposes to empower the central government to prescribe the extent, manner and fees payable for inspection of register and taking copies of extracts therefrom by any member of the company maintained under sub-clause (1)sub-item (iv) of item (b) of sub-clause (1) of clause 191 proposes to empower the central government to prescribe the particulars, with reference to payment proposed to be made by transferee or person, which are to be disclosed to members in view of provisions of such sub-clausesub-clause (2) of clause 191 proposes to empower the central government to prescribe limits or priorities in respect of any payment made by a company to a managing director or whole-time director or manager of the company by way of compensation for loss of office or as consideration for retirement from office or in connection with such loss or retirement, which shall not be effected by the provisions of sub-clause (1) of this clausesecond proviso to sub-clause (4) of clause 196 proposes to empower the central government to prescribe the form of return regarding appointment of managerial personnel with the registrar first proviso of sub-clause (5) of clause 197 proposes to empower the central government to prescribe the maximum amount of fee that a director may receive by way of fee for attending meetings of boards or committees or for any other purposesecond proviso to such clause proposes to empower the central government to prescribe different fees for different classes of companies and for independent directorssub-clause (12) of clause 197 proposes to empower the central government to prescribe details in respect of remuneration of directors to be disclosed in the board's reportsub-clause (2) of clause 199 proposes to empower the central government to prescribe fee for filing application to the central government or tribunal for any approval, sanction, consent, confirmation any direction or exemption in relation to any matter it also empowers the central government to prescribe different fees for different classes of companiesitem (e) of clause 200 proposes to empower the central government to prescribe other matter to which regard shall be had by central government while according approval under sections 196 or 197sub-clause (1) of clause 201 proposes to empower the central government to prescribe form for making application to the central government under chapter xiiisub-clause (1) of clause 203 proposes to empower the central government to prescribe class or classes of companies who shall be required to have whole-time key managerial personnelsub-clause (1) of clause 204 proposes to empower the central government to prescribe class of companies which shall annex secretarial audit report given by a company secretary in practice with the board's report it also empowers the central government to prescribe form of secretarial audit reportitem (c) of sub-clause (1) of clause 205 proposes to empower the central government to prescribe other duties which may be discharged by a company secretarysub-clause (2) of clause 211 proposes to empower the central government to prescribe other fields of expertise for appointment of experts in serious fraud investigation officesub-clause (5) of clause 211 proposes to empower the central government to prescribe the terms and conditions of service of director, experts and other officers and employees of serious fraud investigation officeclause 212 (9) proposes to empower the central government to prescribe the manner of forwarding of copy of order of arrest of a person and the material in his possession it also empowers the central government to prescribe the periods for which serious fraud investigation office shall keep such order and materialclause 214 proposes to empower the central government to prescribe amount which shall be given as security for payment of costs and expenses of investigationproviso to sub-clause (11) of clause 217 proposes to empower central government to specify the manner in which letter of request shall be transmittedsub-clause (3) of clause 218 proposes to empower the central government to prescribe the manner and fees to be paid for preferring an appeal to appellate tribunal in case of dissatisfaction with objection raised by tribunalsub-item (i) of item (c) of sub-clause (2) of clause 230 proposes to empower the central government to prescribe the form of creditors' responsibility statementsub-clause (3) of clause 230 proposes to empower the central government to prescribe the other matters which shall be disclosed in the statement apart from the disclosure indicated in the said sub-clausefirst proviso to sub-clause (3) of clause 230 proposes to empower the central government to prescribe the manner in which notice/other documents shall be placed on website and published in newspaperssub-clause (5) of clause 230 proposes to empower the central government to prescribe the form in which a notice alongwith accompanied documents shall be sent under sub-clause (3) of the said clausesub-clause (11) of clause 230 proposes to empower the central government to prescribe the manner of making takeover offer in case of unlisted companiessub-clause (12) of clause 230 proposes to empower the central government to prescribe the manner in which an aggrieved party may appeal to the tribunal, in the event of any grievances with respect to the takeover offer in case of unlisted companiessub-clause (7) of clause 232 proposes to empower the central government to prescribe form and time within which the statement regarding compliance with the order of tribunal shall be filedsub-clause (1) of clause 233 proposes to empower the central government to prescribe class or classes of companies which shall be allowed to follow the provision of such clause for any scheme of merger of amalgamationitem (c) of sub-clause (1) of clause 233 proposes to empower the central government to prescribe form of declaration of solvency to filed by each company using provisions of this clausesub-clause (2) of clause 233 proposes to empower the central government to prescribe the manner in which the transferee company shall file a copy of the approved scheme with the central government, registrar and the official liquidatorsub-clause (11) of clause 233 proposes to empower the central government to prescribe fees due on revised capital for filing an application with the registrar along with the scheme registered and indicating the revised authorised capitalsub-clause (1) of clause 234 proposes to empower the central government to notify the names of countries to which the provisions of the chapter shall applysub-clause (1) of clause 235 proposes to empower the central government to prescribe the manner in which the notice is to be given by the transferee company to any dissenting shareholder that the transferee company desires to acquire his sharessub-clause (2) of clause 236 proposes to empower the central government to prescribe the rules for determining the price for buying of equity shares from the minority shareholderssub-clause (3) of clause 236 proposes to empower the central government to prescribe the rules for determining the price for buying of equity shares from the majority shareholderssub-clause (3) of clause 237 proposes to empower the central government to prescribe the authority for assessment of compensation to be paid to the member or creditor by the transferee companyitem (a) of sub-clause (1) of clause 238 proposes to empower the central government to prescribe the information and the manner in which every circular containing the offer shall be accompanied withsub item (a) of item (i) of sub-clause (2) of clause 245 proposes to empower the central government to prescribe percentage of total number of members and percentage of issued share capital to determine number of member eligible to apply for class action suititem (ii) of sub-clause (2) of clause 245 proposes to empower the central government to prescribe percentage of total number of depositors and percentage of total deposits to determine number of depositors eligible to apply for class action suitsitem (a) of sub-clause (4) of clause 245 proposes to empower the central government to prescribe manner of serving public notice on admission of application relating to class actionsub-clause (1) of clause 247 proposes to empower the central government to prescribe qualifications, experience of the valuer as well as the manner of registration, terms and conditions of appointment of the valueritem (c) of sub-clause (2) of clause 247 proposes to empower the central government to prescribe rules in accordance with which the valuation shall be made by valuerssub-clause (2) of clause 248 proposes to empower the central government to prescribe the manner of making application to the registrar for removal of names of the company and the format of public notice to be issued by the registrar after receiving the application from a company after extinguishing all its liabilitiessub-clause (4) of clause 248 proposes to empower the central government to prescribe the manner in which public notice shall be published by the registrar and also in the official gazette for the information of the general publicsub-clause (1) of clause 253 proposes to empower the central government to prescribe the manner in which an application is to be filed to the tribunal by any secured creditor, if the company failed to pay the debtitem (b) of sub-clause (2) of clause 254 proposes to empower the central government to prescribe particular and documents and manner of authentication as well as the requisite fee for an application to be made to tribunal in respect of revival and rehabilitation of sick companyitem (c) of sub-clause (2) of clause 254 proposes to empower the central government to prescribe manner of the draft scheme of revival and rehabilitationsub-clause (1) of clause 259 proposes to empower the central government to prescribe the manner of appointment of interim administrator or company administrator from a data bank and to notify other professionals whose names may be included in data banksub-clause (4) of clause 269 proposes to empower the central government to prescribe the rules regarding the manner in which the rehabilitation and insolvency fund shall be managed by an administratorsub-clause (5) of clause 272 proposes to empower the central government to prescribe the form and manner in which a statement of affairs is to be filed along with the petition for winding up before the tribunalsub-clause (1) of clause 274 proposes to empower the central government to prescribe the form and manner in which the company is to file its objection along with a statement of its affairs on receipt of orders of the tribunal on a petition for winding up filed by any person other than the companysub-clause (2) of clause 275 proposes to empower the central government to maintain a panel of professionals consisting of their names, experience and other qualifications and also empower to notify the category/class of professionals who can be considered for appointment as provisional liquidatorsub-clause (6) of clause 275 proposes to empower the central government to prescribe the form in which a declaration is to be filed by the provisional liquidator or company liquidator disclosing conflict of interest or lack of independence in respect of his appointment, if any, with the tribunalsub-clause (5) of clause 281 proposes to empower the central government to prescribe the fee for payment of taking copies or extracts of statements to be submitted by the company liquidatorsub-clause (5) of clause 287 proposes to empower the central government to prescribe the form and manner relating to the convening of the meetings, the procedure to be followed thereat and other matters relating to conduct of business by the advisory committeesub-clause (1) of clause 288 proposes to empower the central government to prescribe the form and manner in which a periodical reports on the progress of the winding up of the company is to be made to the tribunal by the company liquidatorsub-clause (2) of clause 291 proposes to empower the central government to prescribe the form in which the person appointed to assist company liquidator shall discloser information relating to any conflict of interest or lack of independence in respect of his appointmentsub-clause (1) of clause 293 proposes to empower the central government to prescribe the form and manner in which the company liquidator shall keep proper books, minutes of the proceedings at the meeting and other matters in relation to the company under liquidationsub-clause (1) of clause 294 proposes to empower the central government to prescribe the form and manner in which the company liquidator shall maintain proper and regular books of account including accounts of all receipts and payments made by him in relation to the company under liquidationsub-clause (2) of clause 294 proposes to empower the central government to prescribe the following :—(a) number of times the company liquidator shall present to the tribunal account of receipts and payment made to the liquidator;(b) form in which receipts and payments shall be presented to the tribunal; (c) form of declaration and manner of its verificationsub-clause (4) of clause 310 proposes to empower the central government to prescribe the form and manner in which a declaration shall be filed by the company liquidator disclosing any conflict of interest or lack of independence in respect of his appointment with the company and the creditors and such obligation shall continue throughout the term of his or its appointmentsub-clause (4) of clause 314 proposes to empower the central government to prescribe the form and manner in which the company liquidator shall maintain regular and proper books of account this clause also empowers the central government to authorise any officer, apart from members and creditors and to inspect such books of accountsub-clause (5) of clause 314 proposes to empower the central government to prescribe the form and manner in which company liquidator shall prepare the quarterly statement of accountsub-clause (1) of clause 316 proposes to empower the central government to prescribe the form and manner of report on the progress of winding up in which the company liquidator shall present it to members or creditorssub-clause (2) of clause 318 proposes to empower the central government to prescribe the form and manner in which meeting of the company shall be called for the purpose of laying the final winding up accountsitem (b) of sub-clause (4) of clause 318 proposes to empower the company liquidator to prescribe the manner in which company liquidator shall file application along with his report to tribunal for passing an order on dissolution of companysub-clause (4) of clause 322 proposes to empower the central government to prescribe the form and manner in which a copy of an order staying the proceedings in the winding up shall be forwarded by the company to the registrarproviso to sub-clause (1) of clause 326 proposes to empower the central government to prescribe the period for which outstanding sums towards wages or shall be referred to in such proviso shall be paid in priority and also to prescribe the charge over the security of secure creditor to which such sums shall be subject toitem (b) of sub-clause (1) of clause 327 proposes to empower the central government to notify the limit on amount payable on account of all wages or salary including wages payable for time or piece work and salary earned wholly or in part by way of commission, etcsub-clause (2) of clause 343 proposes to empower the central government to prescribe the circumstances, conditions, restrictions and limitations under which the company liquidator shall exercise powers without sanction of the tribunalsub-clause (3) of clause 343 proposes to empower the central government to prescribe the manner in which any creditor or contributory may file application to the tribunal on powers exercised by company liquidatorsub-clause (1) of clause 346 proposes to empower the central government to prescribe the rules in accordance of which any creditor or contributory of the company may inspect the books and papers of the companysub-clause (1) of clause 348 proposes to empower the central government to prescribe the form and manner and intervals in which a statement is to be filed duly audited by a person qualified to act as auditor of the company, in relation to the company where winding up is not concluded within one year after its commencementsub-clause (4) of clause 348 proposes to empower the central government to prescribe the fee on payment of which any creditor or contributory of the company may inspect the statement and receive a copy thereof or an extract therefromclause 349 proposes to empower the central government to prescribe the manner and time in which company liquidator shall pay the monies received by him as liquidator of any company, into the public account of india in the reserve bank of indiasub-clause (1) of clause 350 proposes to empower the central government to prescribe the manner and time in which the company liquidator shall deposit the monies received by him in his capacity as company liquidator in a scheduled bank to the credit of special bank accountsub-clause (3) of clause 352 proposes to empower the central government to prescribe the form and manner in which the liquidator shall furnish the statement indicating therein all sums included in payment, the nature of the sums, the names and last known addresses of the persons entitled to participate therein, the amount to which each is entitled and the nature of his claim theretosub clause (1) of clause 360 proposes to empower the central government to prescribe the power and duties of official liquidatoritem (ii) of sub-clause (1) of clause 361 proposes to empower the central government to prescribe the class or classes of company for which the central government may order winding up by summary proceduresub clause (4) of clause 361 proposes to empower the central government to prescribe the form and manner of the report to be submitted by official liquidator within thirty days of appointment to the central government on any fraud which has been committed in promotion, formation or management of the affairs of the companysub-clause (1) of clause 363 proposes to empower the central government to prescribe the manner in which official liquidator shall call upon the creditors to prove their claimssub-clause (2) of clause 363 proposes to empower the central government to prescribe the manner in which the official liquidator shall prepare a list of claims of creditorssub-clause (2) clause 366 proposes to empower the central government to prescribe the manner in which the company specified in such clause may be registered under the actsub-clause (b) of clause 374 proposes to empower the central government to prescribe the form of advertisement to be published by the company giving notice about registration under part ii, chapter xxisub-clause (d) of clause 374 proposes to empower the central government to prescribe other conditions which shall be complied with by a company seeking registration under part i, chapter xxisub-clause (1) of clause 375 proposes to empower the central government to prescribe the manner in which any unregistered may be wound up under part ii, chapter xxiclause 379 proposes to empower the central government to prescribe other provisions of the act which shall have to be complied with by companies indicated in such clause with regard to the business carried on by them in india as if they were companies incorporated in indiaitem (c) of sub-clause (1) of clause 380 proposes to empower the central government to prescribe particulars to be contained in the list of the directors and secretary to be filed by foreign companiesitem (h) of sub-clause (1) of clause 380 proposes to empower the central government to prescribe other information which shall be provided by a foreign company to registrarsub-clause (3) of clause 380 proposes to empower the central government to prescribe the form in which the alteration made or occurred in documents filed with registrar has to be delivered by the foreign company to the registrar for registrationitem (a) of sub-clause (1) of clause 381 proposes to empower the central government to prescribe the from of balance sheet and profit and loss account and the documents which may be annexed or attached theretosub-clause (3) of clause 381 proposes to empower the central government to prescribe the form in which a copy of list of all places of business established by the company in india has to be delivered by foreign company to the registrarclause 385 proposes to empower the central government to prescribe the fee for registering documents with the registrar by foreign companiesclause 389 proposes to empower the central government to prescribe documents, of foreign companies whether or not they have established a place of business in india, which shall be filed for the purpose of registration of prospectusclause 390 proposes to empower the central government to frame rules for following:—(a) the offer of indian depository receipts; (b) the requirement of disclosures in prospectus or letter of offer issued in connection with indian depository receipts;(c) the manner in which the indian depository receipts shall be dealt with in a depository mode and by custodian and underwriters; and(d) the manner of sale, transfer or transmission of indian depository receiptssub-clause (1) of clause 396 proposes to empower the central government to establish such number of offices at such places as it thinks fit specifying their jurisdiction for the purpose of registration of companies under this actsub-clause (2) of clause 396 proposes to empower the central government to appoint such registrars, additional registrars, etc, as it considers necessary for registration of companies and discharge of various functions under this act and to prescribe power which shall be exercisable by such officerssub-clause (3) of clause 396 proposes to empower the central government to make rules in regard to prescribing the terms and conditions of service, including the salaries payable to persons appointed under this clausesub-clause (4) of clause 396 proposes to empower the central government to direct preparation of seal or seals for authentication of documents required for, or connected with, the registration of companiesclause 397 proposes to empower the central government to prescribe the manner of authentication of documents filed by company with the registrar in electronic form, etc, for the purpose of their admissibility in any proceedingsitem (a) of sub-clause (1) of clause 398 proposes to empower the central government to make rules of filing for various application, documents and returns, etc, in electronic form including the manner of their authenticationitem (b) of sub-clause (1) of clause 398 proposes to empower the central government to make rules of service or delivery of any document, notice or communication, etc, in the electronic form and the manner of their authenticationitem (c) of sub-clause (1) of clause 398 proposes to empower the central government to make rules for maintenance of various applications, documents and return filed with the registrar in the electronic form and manner of their registration or authenticationitem (d) of sub-clause (1) of clause 398 proposes to empower the central government to make rules regarding the manner of inspection of the various documents maintained in the electronic formitem (e) of sub-clause (1) of clause 398 proposes to empower the central government to make rules for payment of fees, charges or other sums payable through the electronic formitem (f) of sub-clause (1) of clause 398 proposes to empower the central government to make rules and the manner in which various registry functions shall be performed by registrar in electronic formsub-clause (2) of clause 398 proposes to empower the central government to frame, by notification, a scheme to carry out the provisions of sub-clause (1) of this clauseitem (a) of sub-clause (1) of clause 399 proposes to empower the central government to prescribe the amount of fees for inspection of any document kept by the registraritem (b) of sub-clause (1) of clause 399 proposes to empower the central government to prescribe the amount of fees for obtaining a certificate of incorporationclause 401 proposes to empower the central government to provide value-added services through electronic form and levy fee thereonsub-clause (1) of clause 403 proposes to empower the central government to prescribe fee and charges required to be paid on account of giving, filing, registering or recording of any document or fact under the provisions of this actfirst proviso to sub-clause (1) of clause 403 proposes to empower the central government to prescribe the additional fee for documents to be submitted, filed, registered or recorded, on any fact or information required under this actsub-clause (1) of clause 405 proposes to empower the central government to issue an order requiring any company or companies to furnish information or statistics with regard to its or their constitution or working or to produce records or documents in its or their possession or allow inspection thereof by any officer or furnish such further information as that government may consider necessarysub-clause (1) of clause 406 proposes to empower the central government to prescribe rules which shall be complied with by nidhi companiessub-clause (2) of clause 406 proposes to empower the central government to give directions, by notification in the official gazette, that any of the provisions of the act shall not apply or shall apply to any nidhi or nidhis of any class or description with such exception, modification and adaptation as may be specified in the notificationclause 408 proposes to empower the central government to constitute by notification a tribunal to be known as national company law tribunal and appointment of chairperson and judicial and technical member thereofclause 410 proposes to empower the central government to constitute by notification an appellate tribunal to be known as national company law appellate tribunal and appointment of chairperson and members thereofclause 414 proposes to empower the central government to prescribe for salary allowances and other terms and conditions payable to the members of the tribunal/appellate tribunalsub-clause (3) of clause 418 proposes to empower the central government to prescribe salary, allowances and other conditions of service of the officers/employees of the tribunal/ appellate tribunalclause 419 proposes to empower the central government to prescribe the number of benches of national company law tribunalsub-clause (3) of clause 421 proposes to empower the central government to prescribe the form and fee for filing an appeal to the appellate tribunal against the order of the tribunalitem (h) of sub-clause (2) of clause 424 proposes to empower the central government to prescribe matters other than those specified in this sub-clause, in respect of which the tribunal and appellate tribunal shall have the same powers as are vested in a civil courtsub-clause (1) of clause 435 proposes to empower the central government to specify the number of special courts to be established for the purpose of providing speedy trial of offences under this actsub-clause (1) of clause 442 proposes to empower the central government to prescribe number of experts and their qualification who may be included in the mediation and conciliation panelsub-clause (2) of clause 442 proposes to empower the central government to prescribe the form and fees of application to be made by any of the party for referring the matter to mediation and conciliation panelsub-clause (4) of clause 442 proposes to empower the central government to prescribe the fees payable to and terms and conditions of functioning of experts of mediation and conciliation panelsub-clause (5) of clause 442 proposes to empower the central government to prescribe procedure to be followed by mediation of conciliation panelsub-clause (1) of clause 454 proposes to empower the central government to prescribe the manner of imposing penalty by an officer not below the rank of registrarsub-clause (6) of clause 454 proposes to empower the central government to prescribe the form, manner and fee for filing an appeal by the aggrieved person against the order made by adjudicating officersub-clause (1) of clause 455 proposes to empower the central government to prescribe manner for obtaining the status of a dormant company for such companies which are registered under this act for a future project or to hold an asset or intellectual property and has no significant accounting transaction or is an inactive companysub-clause (2) of clause 455 proposes to empower the central government to prescribe the form of certificate to be issued by registrar allowing the status of a dormant companysub-clause (3) of clause 455 proposes to empower the central government to prescribe form of register of dormant companies to be maintained by the registrarsub-clause (5) of clause 455 proposes to empower the central government to prescribe minimum number of directors, documents to be filed and annual fee to be paid to registrar by a dormant company to retain its dormant status and also empower the central government to prescribe the form of application, documents and fee to be paid to registrar for becoming an active companysub-clause (2) of clause 459 proposes to empower the central government to prescribe fee for application to be made to the central government or to the tribunal in respect of any approval, sanction, consent, confirmation or recognition and also in respect of any direction or exemption to be given or granted by the government or the tribunalsub-clause (1) of clause 464 proposes to empower the central government to prescribe maximum number of persons for forming association or partnership unless it is registered under this act or is formed under any other law for the time being in forcefifth proviso to sub-clause (1) of clause 466 proposes to empower the central government to prescribe the manner in which provident fund, superannuation fund, welfare fund or other fund for the benefit of the officer and other employees of the company law board, who has become officers and employees of the central government shall be dealt with by it consequent upon dissolution of company law boardsub-clause (1) of clause 468 proposes to empower the central government to prescribe rules consistent with code of civil procedure, 1908, for matter relating to winding up of the companiesthe matters in respect of which notification may be issued or rules may be made in accordance with the aforesaid provisions of the bill are matters of procedure and detail and it is not practicable to provide for them in the bill itself the delegation of legislative power is, therefore, of a normal characterlok sabhalok sabha—————————— a billto consolidate and amend the law relating to companies———— | Parliament_bills | 7dcf65b1-019c-5e12-94be-a61c2f7ec565 |
tothe bolani ores limltiill ('icquisition of shares) and miocellaneous provisioi~s bill, 1978 do ~as introduced in lok sabha 7 1 page 3, line 37,-"e quipmen t s " read -''e quipmen t" 2 page 6, line 1,'" 3 page 7, line 21,-omi t "the" 4 page 8, in the marginal heading to clause 20,-for 'co gni zence ii £€~~ 'co gni zanc e " 5 page 8, in the marginal heading to clau se 23,-for "dissolve" read "di s sol v eel " -6 page 9, line 22,-omi t "published" 7 - :page 9, in the marginal heading to clau se 28,-for "made" re ad ''make'' ",,-new delhi; (saka) ~st 30, 1~w bliadra 8, 1 bill woo ld"'~'l'" - ?ii , •• the bolani ores limiter> (acquisition of s~) and miscellaneous provisions bill, 1978 arrangement of clauses clauses1 short title and commencement 2 debntthms chapter ii acqulsltlon and transfer of shares of bolani ora limrrm3 vesting in the central government of the shares held by the company 4 payment of amount to the company 5 allocation of shares to the steel authority of india chapter iii vesting of undertakings in the steel authority of india and dissolution of bolani ore's limitb:d6 vesting of undertakings in the steel authority of india and dissolution of bolani ores limited 7 "undertaking"-meanin~ of chapter iv provisions relating to officers and eml'ldyei!:s8 provisions relating to officers and other employees of dissolved company 9 provisions relating to directors 10 provision relating to auditors 11 directors, etc, not entitled to compensation 12 provident fund l 13 gratuity welfare fund and other funds chapter v financial provisions14 provisions with respect to income-tax and surtax 1~ taxes, fees and other charges not payable chapter vi mlscl!uaniioushi duty to deliver possession of propertt- etc 17 penalties 18 offences by companies 19 protection of action taken in ,ood faith 20 cognizance of offences 21 saving of contracts, etc 22 saving of legal proceedings 23 board of directors of the steel authority of india to adopt accounts of dissolved company 24 transfer of documents relating to the dissolved company 25 power to remove difficulties 26 act to override the provisions of other laws 27 power to amend memorandum and articlei of auociation 28 power to make rules the bolani ores limited (acquisition oj' shares) and miscellaneous provisions bill 1978 'r billto provide few the acquisition of ,hares tyf the bolani ores limited in public interest in order to serve "etter the needs of the 714ticm land to igcilit4te the promotion and development i-n the inferist,' 0tj the genercu public, of 7l4tioncil stftl indurtry cmd fcjtr menter, cmmected therewith or incidental tmnto ' whj!:reas bolani ores limited' was incorporated as a private umtted company in june, lm57 for supplying ores mainly to the durgapull' steel plant; " wheriias 505 per cent shares in the share capital 01 the said bolani s ores limited are held by the steel authority of india limited, a wholly owned government company and the remaining 495 per cent share are held by the orissa mmeral development company liml~d; wm:rl!:as cumulative losses suffered by' the said bolan! ores' li!ntted at the end of 1977-78 were to the extent of owl' rs 270 lakhsiand the to said bolani· ores limited is in need of urgent funds w carry on the operations of its undertakings; and whiitilas the orissa mineral development company il not willing to contribute any further amount towards the share capital of the bolani ores limited; alm whereas the bolani ores limited is the main source of supply of iron ores to the durgapur steel plant and without further substan- s tial investments by way of capital outlay and otherwise the supply of iron ores to the said plant cannot be maintained; alm whereas it is expedient in the public interest that the shares of the said bolani ores limited should be acquired; be it enacted by parliament in the twenty-ninth year of the republic 10 of india as follows:-chapter i prelimtnary1 (1) this act may be called the bolani ores limited of shares) and miscellaneous provisions act, 1978 (acquisition i,s shorttltle and commencement, (2) it shall come into foree on such date as the central government may, by notification in the official gazette, appoint % (1) in this act, unless the context otherwise requires,-deftni-uoaa (a) "appointed day" means the date on which this act comes into force; :ao (b) "bolani ores limited" means the bolani ores company liinited, a company formed and registered under the companies act : ': : 't~ha~6:~ registered office at chartered bank buildings in cal-~~"~, lbe,state of west bengal; (e) "companies act" menns the companies act, 1956; 25 lof 1e (d) "dissolved company" means the bolani ores limited dissolved by virtue of section 6; , (i' -46) l'-r!the ~ompany" means the qri_ mineral development companv lfmfteq, '-c~y:'tenn@d(-and~~tketf'ttnder the companies act and havinr its ~stered office at chartered bank bun- 30 dings, calcutta in the state ofcwest bengal; (f) "steel authontv of 'itidia" means the steel authority of ~ liplite4" ~ ~pluly f~eci and regi,s~ite4 udd~tm cam-~s ~\ajl4, ,~vimt us, registqji~ ~ce at ,!i'~ delhi ' '~l :8n'e asjjrovideti in section 1' the wonisarid ~resillofts used 35 ; n '9!lq net de6neal but·cieftned in the companies act' bae'1he mean-in~ tespecilvely assigned to them inttrat aet ' , ' : - r ',·acqojii'liiow i i\!at 'l'rambi'bit 01' bjjajtiz· of eolam ods l'mit'i'dveiun, 3 (1) on the appointed day, all the shares held by the' ~~panyfn 40 ~~ "r!, 9 !!,r'c;~'~ c~tal e~,' tj1~ ~oll\ili 9re~ li~h~d sl}~n, by \1ftu;," 9, t t~j' act, govern-: (tt~~ ~~e~~,d, ~~, ,n~ s~a11 v~~ in\th~ cent1'al gqvemj1l~t ment - • ;(2) all the sjam~ w~p ha,!e v~ted in , the ~n~ai oovt!rnment ot the under ~~e;ctipn (n sh~ij ~,forc~fof ,such ye$t~g; befl'~cj and dill-~::es charged' of all trusts, liabilities obligations, mortllalles, charges, liens 4s by the ,",f~~c1;u'nbraftces fl~ctmt4bem ami· arty' attacbmentror'li'1jiinction compeny -q1' a_748c!1d8e ar-me!' oi11lly ,cmlrt, -tribunal or other 'atithcwlfy 'n!ttrtctjng -" u,e q!, su41\ ib'-elin any ~an~ bhall be deemed ~to hi ,been :wttlf~ drawn ' -, ~ payment of amount to the company - (1) for the transfer tel, iw val'" in, the central government under section 3 of the shares held by the company in the bolani ores limited, the central government shall, within thirty c1ays from the appointed day, pay to the company in cash an amount of forty-me thou-s , fty~ bjllldl;ecl ·rapees (z~ wbenthe ceo l govel'lldlent fails to pay to the coaqnuly amount apeci8ed in ,b-mdion (1) withol the perin ~iftea in tlaat sub-section, tile central government shall pay on the said amo1ll1t _pie interest at -the rate of six per tedt per 8ddum from ute appointed 10 , tti1 the date of payment al1qca,-ti~of shares to the steel authority of india 5 (1) all the fthares held by the comp~ny -in the bolqni ores lim,i-ted which have vested in the central government by virtue of section 3 shall, immediately atter they have so ves~ed, stand transferred to and shall vest in the steel authority of india is (2) the amount paid hy the centrlll government for the shares which ,tanci trans:fenocd to, and vested in, the steel authority of incilia under ub-section (n shall be deemed to be the contrihution by the central crovernment to the equity capital of the steel authority of india and the s~l authority of india shall issue (if necessary, after amending its ~o :memorandum and articles of association) to the central government forty!-nine fully paid-up shares of the face value of one thousand rupee each and pay to that government five hundred rupees in cash chapter iii vesting 0 undertakings in the &reel authority' 0 india and2$ drssojutjon of bolani ores limitedg on the appqi~ted day-]0 (a) all the undertakings of the bolani ores limited the share~~ of which have vested in the steel authority of india by virtue of section 5 shall ·stand transferred to, afjd ~ll veat in, the steel authority of india; (b) the bolani ores limited shall stand dissolved vestin, -of undertakinls in the steel authority of india and dissolu_ tion of bolan! ores limited "undertaking"-meanfn, of ~ " '7 j'or the purposes of this act, the undertakings of the dissolved coin-, palily shall be deemed to include all assets, rights, lease-bolds (including ~ lemes) industrial or other l~cences, powers authorities and prtvi-35 jejl~ a~dall property movable and immovable, including land" buildings, works, mines, works~ops projects, stores instruments, machinery automobiles and other vehicles, equipments, cash or bank balances cash in b~d ,r~serve funds investments nnd book debts and all ot);aer rights :nd interests in or arising out of, such property as were immediat~y 040 b,efqte tbe lip-pointed day in the owllr,rship, p<lssesiion powj;lr or control ()t th~ di:lsolv~~ companyoand all boob; of ac::cqunt, ~gi~ters, m&ps, draw-ir}e:s, j;e!;ords qf $urv~y and all qther documents of whatever nature ""atin,g tllereto, and ~h!lll ~lso be deejded to inc],ude all borrowi!1g1j liabilities and obligations of whatever kind of the dissolved com~py· chapter iv proivrsrons rillating 'l'o ollticers and employdsprovisions relating to officers and other employees of dissolved company 8 (1) every officer (not being a director) or other employee holdhig oibce immediately before the appointed day in the diss()1ved company in relation to any undertaking of such ct'impany, shall, as from tm appoin- s ted day, continue to hold office as such in respect of the undel"taking vested in the steel authority of india by virtue of section 6, by the same tenure and upon the same terms and conditions of service and with the, same rights and privileges as to retirement benefits as would have been admissible to him if the company in which he was holding office had 10 not been dissolved and shall continue to do so unless and until such tenure and tenns and conditions are duly altered by the steel authority of india ", (2) notwithstanding anyth1n,~ contained in sub-section (1), rulel!11 relating to the conditions of service and standing orders applicable to 15 the officers or other employees referred to in sub-section (1), as immediately before the ~ppointed day, shall continue to apply unless and until they are duly altered by the steel anthority of india 9 every person holding office as a director of the dissolved company immediately before the appointed day shall, on that day, cease to hold 20 office as such director provisiodi relating to directors provision relating to auditors 10 every person appointed under section 619 of the compani~ act as an auditor of the dissolved company holdin~ office immediately before the appointed day, msy continue to hom office as such auditor in relation til the undertakings of the dissolved company which stand vested· in 25 the steel authority of india by virtue t')f section 6, for the duration for which he was so appointed, on the same terms and conditions as were ap,plicable to him immediately before the appointed day director, etc, not entitled to compensation 11 (1) notwithstanding pnything contained in any law for the time being in force, no director or managerial personnel specified in section 30 197a of the companies act or other person entitled to mana~e the whole or a substantial part of the business and affairs of the undertakings of the dissolved company under a special agreement or otherwiseshall be entitle-d to any compensation aez:ain~t the dissolved company or the central government or the steel authority of india for the loss of 3s office or for the premature tennfnation of any contract of management entered into by him with the dissolved company whether sueh loss or termination was due to the provisions of this act (2) notwithstandin~ anything contained in the industrial disputes act, 1947, or in any other law for the time beinq in force, the provisions~ 141 at 1 of sub-section (1) of section 8 shall not entitle bny oftlcer or othet: ,eplployee referred to in that sub-section to any compensation under that act or under any other law for the time befng in force and no claim for such compensation shall be entertained by any court, tribunal or other , authority u where a provident fund has been established by the dissolved provlcompany for the 'benefit of the employees and the same stands vested in dent a trust, the monies and other assets standing to the credit of such provifund dent fund !!hall continue to be held in trust with the same objects as were , applicable before the appointed day and the trustees of such trusts functioning il'l'lmediately bef<>re the appointed day shall, subject to the provisions of the trust deeds and the rules relating to such trusts, continue to function as trustees m respect of such provident fund maintained in relation to the undertakings of the dissolved company which stand vested in 10 the steel authority of india by virtue of section 6, as if this act had not be~ passed: provided that the right to nominate trustees and other rights relating to the trust vested in the dissolved company shall vest in the steel authori ty of india gratuity welfare fund and other funda is 13 where any gratuity, welfare fund or other fund has been established by the dissolved company for the benefit of its employees and is in existence immediately before the appointed day, all monies arid other assets standing to the credit of or relatable to such gratuity, welfare f~d or other fund shall vest in the steel authority of india chapter v financial provisions14 (1) the steel authority of india shall be liable to pay any swn under the provisions of the income-tax act or the com~~ldies (profits) surtax act which the dissolved company would have been liable to pay 2s if the dissolution had not taken place, in the like manner and to the same extent as the dissolved company p~ visiodi with respect to incometax and luryax (2) for the purpose of making an assessment of the income or, as the case may be, the chargeable profits of the dissolved company and for the purpose of levying any sum in accordance with the provisions of sub-30 section (1 ~,-(a) any proceeding taken against the dissolved company before the appointed day sha1l be deemed to have been taken against the steel authority of india and may be continued against the steel authority of india from the stage at which it stood immediately be-3s fore the appointed day; (b) any proceeding which could have been talten against the dissolved company, if the dissolution had not taken place, may ~ taken ,~ainst the steel authority of india; and (c) all the wovaions of the income-tax act or, as the case may be, the companies (profits) surtax act shall apply accordingly (3) the assessme~t of the income or, as the case may be, the chargeable profits of the previous year of, the dissolved company up to the appointed day shall be made as if such dissolution had not taken place and all the provisions of the income-tax act or as the case may b~ the 045 companies (profits) surtax act shall, so far as may be, apply accordingly (4) the transfer and vesting the undertakings of the diuol~ company in the steel authority of india under the pl'ovisiods of tbi& &:t shall be deemed to be an amalgamation in relation to the dissolved company and the steel authority of india and the provisions of the ldc:0metax act shall, so far as may be, apply accordingly as if references in the , said act to the amalgamating company and the amalgamated com~ were references to the dissolved company and the steel authori~ of india respectively (5) the accumulated loss add the unabsorbed depreciation, if ally, of the dissolved company shall be deemed to be the loss or, as the ca18 may to be, allowance for depreciation of the steel authority of india for the previous year in which the amalgamation referred to in sub-section (4) has taken place and the provisions of the income-tax act relating to iutt-off and carry forward of loss and allowance for depreciation shalj apply accordingly is (6) the provisions of sub-sections (1) to (5) shall have effect notwithatahding anything to the contrary contained in the inoome-tax act or the companies (proths) surtax act e:tpt'4ncttion-for the purposes of this section,-(a) "income-tax act" means the income-tax act, 1961; 30 43 of 1881 (b) "complbnies (profits) 5tlrta"lt act" means the companies (profits) surtax act, 1964; (c) words and expressions used in this section and not defined in this act but defined in the income-tax at't or the cotnpai!1es (profits) surtax aet shall have the meanings respectively dsigned is to them in the said acts taxes, fees andotber char~ea not payable 15 for the removal of doubts, it is hereby declhetl that nl) taxes, duties, fees or other charges of whatever nature (including registration chargeel), shall be pdyab~ in respect of anyttajud,er of shar1!l or transfer of undertakift'gs o!" transfer of any immovable property,· under -the 30 provisions of this acrt chaptilr vi16 (1) where any property appertaining to any of the undertakings of the dissolved company has been transferred to, and vested in, the steel 35 a~rity of india; ties, etc (a) every persod in whose posse_em, eu&tody or coftttolmy such property may be shall, on demand by the st~el authority of mdja, forthwith deliver the property to the steel authority of india or to such person as the steel authority of india may authorise in 40 i this bellalf j (b) any person who, immediately before such vesting, bas, ij1 'bis"possession, custody or control, anybooks, documents or other p~ relating to any o~ the undertakings of the dissolved companymj,l be liable to8ccount for the aid books, documents and papers to the 4s steel authority of india and shall deliver them to tme steel authority of india or to such person as the steel authority of india may authorise in this behalf (2) without prejudice to the other provisions contained in this sec-s tion, it shall be lawful for the steel authority ot india to take all necessary steps for taking possession of all properties, which have been transferred to, and vested in, it under this act | 17 | any | person | who- ||-----------------------------------|-------------------------------|-------------------------|---------------|| penaltie& | | | || (a) | | | || having | in | his possession, custody | or || 10 | | | || forming | part | of | the || property | from | the | steel || (b) | | | || wrongfully obtains possession of, | or | retains, | any || forming | part | of | any || or | | | || (c) | | | || wilfully withholds | or | fails to furnish | || to | | | || the | steel | autho- | || is | | | || rity | | | || of | india | or | any || or | | | || other | papers | relating | || to | | | || any | | | || of | | | || the | undertakings | 'of | the || company which | | | || may | be in his possession, custody | or | control; || or | | | || (d) | | | || fails | | | || to | | | || deliver | | | || to | | | || the | steel authority of | india | or || authorised | | | || by | it, | any | assets, books || or | | | || other | | | || docu- | | | || 20 | | | || ments | in | his possession, custody | or || undertakings of | the | dissolved company; | or || (e) | | | || wrongfully removes | or | destroys any | property || of | any | of | the |<f) wrongfully uses any property forming part of any of the 2s undertakings of the dissolved company, shall be punishable with imprisonment for a term which may extend to two years, or with the fine which may extend to ten thousand rupees, or with both offences by compani_ 18 (1) where an offence under this act has been committed by a 30 company, every person who, at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: 3s provided that nothing contained in this sub-sedion shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence (2) notwithstanding anything contained in sub-section (1) where 40 any offence under this act has been committed by a company ana it is proved that the offence has been committed with the consent or connivance of, is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed ,to be guilty of that offence 4s and shall be liable to be proceeded against and punished accordingly erplanatioo-for the purposes 011 this sectton-(4) "company" means any body corporate and includes a firm or other association of individuals; and (b) "~ctor", in relation k a finn, means a partner in the firmprotection of action taken in good faith 19 no suit, prosecution or other legal proeeecling shall lie against the central government or the steel authority at rndia or any of its officers or other employees for anything which is in good faith done or intenaed to be done under this act 5 coenizence of offences 20 notwithstanding anything contained in the code of criminal procedure, 1973, no court shall take cognizance of any offence under this 2 of 1974 act except on a complaint, in writing, made by the central government or any officer authorised in this behalf by that government saving of contracts etc ·zl all contracts, deeds bonds, agreements and other instruments of 10 whatever nature to which the dissolved company is a parfy subsisting or having effect immedia~ly before the appointed day, shall, as kom that day ,be of full torce and effect against, or, as the case may be, in favour of, the steel authority of india and may be ·enforced as fully and effectually as it, instead of the dissolved company, the steel autho- is rity of india had been a party thereto savlng of legal proceedings 22 if on the appointed day, there is pending any suit, arbitration, appeal or other legal proceeding of whatever nature by or against the dissofved company, the same shan not abate, be discontinued or be in any way prejudicially affected by reason of the transfer of the undertakings 20 of the dissolved company or of anything contained in this act, but toe suit, arbitration, appeal or other proceeding may be continued, prosecuted and enforced by or against the steel authority of india in the same manner and to toe same extent as it would or might have been continued, prosecuted and enforced by or against the dissolvea company if this act 25 had not been passed 23 (1) the accounts of the dissolved company shall stand closed on the appointed day and the balance-sheet and the profit and loss accounts for the current financial year up to the appointed day shall be prepared and audited in accordance with the provisions of the companies act 30 board of directors of steel authority of india to adopt accounts of dissolve company (2) notwithstanding the provisions in the companies act the board of directors of the steel authority of india shall be deemed to be the board of directors of the dissolved company and the shareholders of the steel authority of india shall be deemed to be the shareholders of the dissolved company for the purpose of adoption of the accounts, directors' 35 report and completion of other formalities in accordance with the provisions of the companies act in this regard 24 (1) the registrar o~ companies with whom the dissolved company is registered shall, as boon as may be after the appointed day, transfer all documents relating to the dissolved company to the regls- 40 trar of companies new delhi transfer of documentl relating to the dissolved company -(2) the registrar of companies, new delhi, on receipt of the documents relating to the dissolved company, shall add those documents to the file maintained by him in relation to the steel authority of india, and shall consolidate the files relating to the dissolved company and the steel 45 authority of india and the documents filed by the dissolved company shall, for the purposes of the companies act, be deemed to have been flled by the steel authority of india in relation to the busm,ess of, the undertakb!lgs of the dissolved compaa, which, stamls 1iransferred to and vestecl in the steel authority of lddia by virtue of sectioll 6~ power to remove difficulties 25 if any difreulty arises in giving effect to the provisions of this ad, the cemral government may, by order, published in the ofjicial 5 gazette, make such provisions not inconsistent with the provisions of this act, sa appears to it to be necessary, for the removal of the difleulty: provided that no such order shall be made after the expiry of a period of three years from the appointed day, 218 the provisions of this act or of any order made thereunder shall 10 have effect notwithstanding anything contained in the companies act or in any other law for the time being in force or in any contract, express or implied, or in any rules or regulations having effect by virtue of any law other than this act act to override the provisions of other laws, 27, (1) for the purpose of giving effect t:> the provisions of this act, is the central government may, by notification in the official gazette, make amendments in the memorandum or articles of association, or both, of the steel authority of india power to amend memorandum and articles of association (2) any amendments in the memorandum or articles ()f association of the steel authority of india made in pursuance of sub-section (1) 20 shall have effect notwitr!tanding anything containea in the companies act 28, (1) the central government may, by notification published in the official gazette, make rules to carry out the provisions of this act power to tnade rules (2) every rule made by the central government under this act 25 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 may be comprised in one session or i1l1 two or more successive sessions, and it, before the expiry of the session immediately following the session or the successive sessions af\gresaid, both houses agree in making any 30 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, 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 reasonsbolani ores limited was incorporated as a private limited company in june, 196'1 for supplying iron ore mainly to the durgapur steel plant the capital of the company was contributed by the government of india to the extent of 505 per cent, the remaining 495 per cent being contributed by the orissa mineral development company limited (omdc) , a company of the bird group in february, 1973, the sb-ares of the central government in the company were transferred to the steel authority of india limited (sail) 2 the present financfal position of the company is far from batis~ factory the accumulated losses suffered by the company till the end of 1977-78 is over rs 270 lakhs against the paid-up capital of rs 100 lakhs the company is in immediate need of funds to the extent of about rs 250 lakhs to complete the capital schemes in hand and for providing balancing facilities and to replace some of the worn out earth movmg machinery, failing which the regular supply of iron ore of rdequate quality to the durgapur steel plant cannot be ensured bolani ores limited is the main source of supply of iron ore to the durgapur steel plant which has no other alternative economic source of bulk supply and closure or inefficient working of the mine by the bolani ores limited will seriously affect the interests of the steel plant the orissa mineral deve-10pment company is not interested in making any further investment in the bolani ores limited in order to ensure the regular supply of adequate quality of iron ore to the durgapur steel plant, it is necessary that substantial investments are made in the bolani ores limited by the central government it is therefore necessary in the public interec;t to take over the company the bill proposes to acquire the shares held by the omdc in the bolani ores limited to facilitate the efficient mana~ement of the bolani ores limited it ic; proposed to transfer the undertakin~ o~ that company to the steel authority of india limited which is the apex body for all steel plants 3 the present !!tate of affairs of the bolatli ores limited has revealed that the shares of the company do not have any value under the cod"entional methods of valuation namely, net worth and profit earning capacity it is however proposed to make a payment of an amount of rs 49,500 at +he rate d mlpef' onc fot' each share of the face value of rs 100 for the acauit!lition of the shares 4 the bill seeks to achieve the above objects new delm; biju patnaik the 17th august, 1978 president's recommendation under articles 117 and 2'74 of the constitution of india [copy of letter no 1 0-6 178-dur, dated the 18th august, 1978 from shrl biju patnaik, minister of steel and mines to the secretary, lok sabha] the president, having been informed of the subject matter of the bolani ores limited (acquisition of shares) and miscellaneous provisions bill i978 to provide for the acquisition 'of certain shares of bolani ores limited and for matters connected therewith or inci<ientri thereto has recommended under clal1ses (1) and (3) ot article 117 and clause (t) of article 274 of the constitutioy'l of india, the introduction and consideration by lok sabha of the said bill ~~'}jt1 ~(,:,::! q,"u"i; ''; '!::,,/, " the bill seeks to provide for the acquisit'ion by the central'govern-~t ~f r~pe,~af~ ffi, ~lani ores ~+mited, presen~y held by the orissa mider,l};~ov~lpp)jll~~~ ~oidp4ny,~~i~ed,(, qmdc) , and transf~ of the <;wn~': tp the ,&~l ~q~~ori~ of indi~ ltimited ($ail) 2 clause 4 of the bill provides for paythbnt by the centrat govern me:q~ r~ q~, j,q cm~t of ~an rmo~t, o~/fy:~~es ,for,ty-nine thousand and five hund'red, for the transfer to, and vesting in it, of the shares of the company held by omoc the said amount will carry simple interest at the rate of six per cent per annum for the period commenciong from the appointed day, the date on which the act would take effect, and ending on the date on which payment of such amount is made by the central government to omoc interest at the said rate is likely to be of the order of rupees one thousand 3 thus, the total estimated non-recurring expenditure involved if the bill is enacted, wijl be of the order of rupees fifty thousand and five hundred 4 the purpose of acquisition by the central government o~ the shares of bolani ores limited, presently held by omdc is to ensure proper functioning through sail, so as to enable it to maintain a high level at production and maintain regular supply of iron ore to the durgapur steel plant as presently foreseen, estimated additional investment for this purpose by government will be of the order of about rs 250 lakhs such expenditure will, however, be incurred after due appropriation by parliament by law ' -5 the bill, if enacted, is not likely to involve any other recurring or non-recurring expenditure clause 28 of the bill seeks to confer on the central government the general rule maldt1g power for irnplementatffjn of the p~viakma of the bill when enacted the power of making rules will be ccmftaed to matters of detail add procedure 2 the delegation of legislauve power ii, therefore, of normal character a billto provide for the acquisition of shares of the bolani ores limited in public interest in order to serve better the needs of the nation and to facilitate the promotion and development in the interests of the general public, of national steel industry and for matters connected therewith or incidental thereto (shlri bftju patn4i1e, mitlibter of steel and mines) | Parliament_bills | 39d3849e-b39b-5389-a641-26a0650e2cb4 |
bill no lxxxvii of 2010 the prevention of atrocities on women bill, 2010 a billto prevent atrocities against women in the country, to provide for special courts for thetrial of such offences committed against women and for the relief and rehabilitation of the victims of such offences and for matters connected therewith or incidental theretobe it enacted by parliament in the sixty-first year of the republic of india as follows:—1 (1) this act may be called the prevention of atrocities on women act, 2010 (2) it extends to the whole of indiashort title, extent and commencement5(3) it shall come into force on such date, as the central government may be notification in the official gazette, appoint2 in this act, unless the context otherwise requires,—definitions(a) "appropriate government" means in the case of state, the government of that state and in all other cases the central government;(b) "atrocity" means an offence punishable under section 3; (d) "employer" means,—(i) in relation to an establishment under the control of the appropriate government, the head of the department or ministry as the case may be;5(ii) in relation to an establishment under any local authority or local self government, the chief executive officer by whatever designation called;(iii) in relation to other cases, the person or the authority who has the ultimate control over the affairs of the work place (e) "special court" means a court of session specified as a special court in section 7;| 10 ||-------------|| 45 of 1860 |(f) words and expressions used but not defined in this act and defined in code or the indian penal code shall have the meanings assigned to them respectively in the code, or as the case may be, in the indian penal code 3 (1) whoever,—punishment for offences of atrocities15(i) makes any lewd remarks, gestures, signs or insinuations against a woman inoffice or in any public place(ii) assaults or uses force against any woman with intent to dishonour or outrageher modesty;(iii) forcibly removes clothes from the person of a woman or parades her naked or with painted face or body or commits any similar act which is derogatory to human dignity;20(iv) compels or entices a woman to do 'begar' or other similar forms of forcedor bounded labour;(v) being in a position to dominate the will of a woman and uses that positionto harass or exploit her sexually to which she would not have otherwise agreed;25(vi) intentionally insults or intimidates with intent to humiliate a woman in anyplace within public view;(vii) institutes false, malicious or vexatious suit or criminal or other legalproceedings against a woman;30(viii) takes pictures or video of a woman without her consent or knowledge byviolating her privacy;(ix) forces or compels any woman into prostitution; (x) declares any woman witch or daiyan or by any other name called;35shall be punishable with imprisonment for a term which shall not be less than two years but which may extend to five years and with fine which may extend to twenty-five thousand rupees (2) whoever, being a public servant, commits any offence under this section, shall be punishable with imprisonment for a term which shall not be less than three years but which may extend to the maximum punishment provided for that offence40punishment for neglect of duties4 whoever, being a public servant, willfully neglects his duties required to be performedby him under this act, shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to one yearspecial court5 for the purposes of providing speedy trial, the appropriate government shall, withthe concurrence of the chief justice of high court, by notification in the official gazette,specify for each district a court of sessions to be a special court to try offences under this actprocedure to be followed by special court56 (1) where the special court is satisfied, upon a complaint or a police report that a person is likely to commit an offence under this act, it may, by order in writing, direct such person to remove himself beyond the limits of such area, within such time as may be specified in the order, and not to return to that area from which he was directed to remove himself for such period, not exceeding one year, as may be specified in the order10(2) the special court shall, alongwith the order under sub-section (1), communicate to the person directed under that sub-section the grounds on which such order has been made(3) the special court may revoke or modify the order made under sub-section (1), for the reasons to be recorded, on the representation made by the person against whom such order has been made or by any other person on his behalf within thirty days from the date of the order157 any person contravening an order of the special court made under section 6 shallbe punishable with imprisonment for a term which may extend to two years and with fine which may extend upto ten thousand rupeespunishment for contravention of order of special court declaration of area prone to atrocities20 258 a district magistrate or a sub-divisional magistrate or any other executive magistrate or any police officer not below the rank of a deputy superintendent of police may, on receiving information and after such inquiry as he may think necessary, has reason to believe that a person or a group of persons, residing in or frequenting any place within the local limits of his jurisdiction is likely to commit an offence or has threatened to commit any offence under this act and is of the opinion that there is sufficient ground for proceeding, declare such an area to be an area prone to atrocities and take preventive action in such manner as may be prescribedappropriate government to frame scheme9 (1) the appropriate government shall provide such relief and rehabilitation to the victims of the atrocities under this act by framing schemes as may be notified from time to time30(2) without prejudice to the generality of the aforesaid provision the appropriate government shall provide free board and lodging and medical facilities to the severely affected victims of atrocities under this act10 the central government shall, after due appropriation made in this behalf, provide such requisite funds for being utilised for the purposes of this actcentral government toprovide funds35power to remove difficulty11 if any difficulty arises in giving effect to the provisions of this act, the centralgovernment may, by order published in the official gazette, make such provisions, not inconsistent with the provisions of this act, as appear to it to be necessary or expedient for removing the difficulty:provided that no such orders shall be made after the expiry of the period of three years from the date of commencement of this act40protection of action taken in good faith12 no suit, prosecution or other legal proceeding shall lie against the centralgovernment or against the state government or any officer or authority of government or any other person for anything which is in good faith done or intended to be done under this act45act to have over-riding effect13 save as otherwise provided in this act, the provisions of this act shall have effectnotwithstanding anything inconsistent therewith contained in any other law for the time being in force or any custom or usage or any instrument having effect by virtue of any other lawpower to make rules14 the central government may, by notification in the official gazette, make rulesfor carrying out the purposes of this act statement of objects and reasonswomen are the most vulnerable lot of our society every now and then, women are subjected to atrocities and violence in one form or the other they are subjected to all kinds of torture which more often than not go unreported at times, the administration does not respond with the kind of agility that is required on the incidents of atrocities on women there is no dearth of incidents when women are paraded naked in many places in our country and, at times, also declared as witches or daiyans this is the worst kind of treatment given to women without any fault they are left at the mercy of their fate and no one comes to their rescue further, sexual harassment of women in work place is also very common and frequent the supreme court of india has taken this issue very seriously in the case of vishaka and others vs state of rajasthan and others, the supreme court has laid down norms and guidelines to be followed by employers or other responsible persons in the work places or other institutions to prevent or deter the commission of acts of sexual harassment as also to provide the procedures for resolution, settlement or prosecution of acts of sexual harassment by taking all steps required including setting up of complaints committees for redressal of the complaint made by the victim the national commission for women has also taken up this issue very seriously it has, however been found that the complaint committees have not been formed in a number of cases women are mentally and sexually exploited and pushed into flesh trade therefore, in order to give women a respectable position in the society and save them from the tyranny of the unscrupulous employers and other persons, it is high time that a law should be framed to protect them from atrocities by providing strict punishment which will serve as deterrent for othershence this billvijay jawaharlal darda financial memorandumclause 9 of the bill provides that the appropriate government shall provide relief and rehabilitation to the women and children who are victims of atrocities further, clause 10 provides that the central government shall provide requisite funds for the purposes of this bill the bill, therefore, if enacted, will involve expenditure from the consolidated fund of india it is estimated that a recurring expenditure of rupees twenty crore will be required for the purpose non-recurring expenditure to the tune of rupees one crore will also be required memorandum regarding delegated legislationclause 14 of the bill gives power to the central government to make rules for carrying out the purposes of this bill the rules will relate to the matters of details only the delegation of legislative power is of normal character———— a billto prevent atrocities against women in the country, to provide for special courts for the trial of such offences committed against women and for the relief and rehabilitation of the victims of such offences and for matters connected therewith or incidental thereto————(shri vijay jawaharlal darda, mp)gmgipmrnd—1021rs(s3)—11-05-2012 | Parliament_bills | bad4fa28-77e2-55aa-9837-7fb8becc2299 |
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