ALUMINIUM CORPORATION OF INDIA LIMITED (ACQUISITION AND TRANSFER OF ALUMINIUM UNDERTAKING ACT
THE ALUMINIUM CORPORATION OF INDIA LIMITED (ACQUISITION ANDTRANSFER OF ALUMINIUM UNDERTAKING ACT, 1984
ACT No. 43 OF 1984
An Act to provide for the acquisition and transfer of the right,title and interest of the aluminium Corporation of India Limited in relation toits undertaking at Jaykay Nagar, near Asansol (West Bengal) for the purpose ofensuring the continuity of production of aluminium and aluminium fabricatedproducts which are essential to the needs of the community and thereby to giveeffect to the policy of the State towards securing the principles specified inclause (b) of article 39 of the Constitution.
WHEREAS the undertaking of theAluminium Corporation of India Limited, a company within the meaning of theCompanies Act, 1956(1 of 1956) of Jaykay Nagar, near Asansol (West Bengal) wasengaged in the production of aluminium and aluminium fabricated productsfalling under the First Schedule to the Industries (Development and Regulation)Act, 1951(65 of 1951);
AND WHEREAS as a result ofdeterioration of operating efficiency, grave financial improprieties, failureto maintain harmonious industrial relations and other reasons, the Company hadto resort to the closure of the said undertaking in 1973;
AND WHEREAS efforts were madefrom 1975 onwards by the Central Government and the Government of West Bengalto secure the revival of the said undertaking with a view to the rehabilitationof the workmen adversely affected by the closure of the undertaking and alsofor augmenting the supply of aluminium and aluminium fabricated products andthe efforts did not succeed as the entire capital of the Company had beeneroded by outstanding liabilities and the management was unwilling to investany funds;
AND WHEREAS with a view to re–startingthe said undertaking the management of the said undertaking was taken over bythe Central Government on the 1st day of May, 1978 under the provisions of theIndustries (Development and Regulation) Act, 1951(65 of 1951);
AND WHEREAS owing to the conditionof the plant and machinery and other equipment and the grave deteriorationwhich had already taken place in the operating efficiency thereof, theundertaking has not been able, in spite of financial and other assistanceprovided by the Central Government and the Government of West Bengal, to becomeviable or generate the funds needed for the property utilisation of itscapacity;
AND WHEREAS further investmentof substantial sums of money is needed for the rehabilitation and replacementof the capital equipment and in view of the serious adverse financial conditionof the Company and the state of the undertaking, the company is not in aposition to secure the funds, necessary for such investment;
AND WHEREAS it is necessary tomake such investment for securing proper utilisation of available facilitiesfor production of aluminium and aluminium fabricated products which areessential to the needs of the community, particularly in the industrial andpower sectors;
AND WHEREAS such investment isalso necessary for securing the continued employment of the workmen employed inthe said undertaking;
AND WHEREAS it is necessary inthe public interest to acquire the said undertaking to enable the CentralGovernment to have such investment made and to ensure that the interests of thegeneral public are served by the continuance of the undertaking of theproduction of aluminium and aluminium fabricated products;
AND WHEREAS such acquisition isfor giving effect to the policy of the State towards securing the principlesspecified in clause (b) of article 39 of the Constitution;
BE it enacted by Parliament inthe Thirty–fifth Year of the Republicof India as follows: –
1.Short title: This Act may be called theAluminium Corporation of India Limited (Acquisition and Transfer of AluminiumUndertaking) Act 1984.
2.Definitions: In this Act, unless the context otherwise requires,–
(a) "Aluminiumundertaking" in relation to the Company, means the undertaking of theCompany located at Jaykay Nagar, near Asansol (West Bengal), being theindustrial undertaking referred to in the order of the Government of India inthe Ministry of Industry (Department of Industrial Development) No.S.O.293 (E)/18AA/IDRA/78, dated the 1st day of May, 1978;
(b) "appointedday" means the date of commencement of this Act,
(c) "Bharat AluminiumCompany" means the Bharat Aluminium Company Limited, a Government companywith the meaning of the Companies Act, 1956, and having its registered officeat New Delhi;
(d) "Commissioner"means the commissioner of Payments appointed under section 14;
(e) "Company" meansthe Aluminium corporation of India Limited, being a company within the meaningof the Companies, Act, 1956, and having its registered office at 7, CouncilHouses Street, Calcutta;
(f) "notification"means a notification published in the Official Gazette;
(g) "prescribed"means prescribed by rules made under this Act;
(h) "specified date",in relation to any provisions of this Act, means such date as the Central Governmentmay, by notification, specify for the purposes of that provision and differentdates may specified for different provisions of this Act.
(i) wordsand expressions under herein and not defined, but defined in the Companies Act,1956, shall have the meanings, respectively, assigned provisions of this Act.
ACQUISITION AND TRANSFER OF ALUMINIUM UNDERTAKING OF THE COMPANY
3.Transfer to, and vesting in, theCentral Government of the Aluminium undertaking of the Company: On the appointed day, theAluminium undertaking of the Company and the right, title and interest of theCompany in relation to that undertaking shall, by virtue of this Act, standtransferred to, and shall vest in, the Central Government.
4.General effect of vesting: (1) The Aluminium undertakingof the Company shall be deemed to include all properties and assets (includinglands, quarries, mines, buildings, offices, factories, workshops, stores,plants, machinery and equipment, installations, instruments, laboratories, officefurniture, stationery and equipment, vehicles, staff quarters, workers’colonies together with amenities and installations pertaining thereto, cashbalance, cash in hand, reserve funds, investments, books, book debts, rights,leaseholds, powers, authorities and privileges) pertaining to the undertakingand all other rights and interests in, or arising out of, such properties andassets as were immediately before the appointed day in the ownership,possession, power or control of the Company and all books of account, registersand all other documents of whatever nature relating thereto,
(2) All properties and assetsas aforesaid which have vested in the Central Government under section 3 shall,by force of such vesting, be freed and discharged from any trust, obligation,mortgage, charge, lien and all other incumbrances affecting them, and anyattachment, injunction, decree or order of any court or other authorityrestricting the use of such properties or assets in any manner or appointingany receiver in respect of the whole or any part of such properties or assetsshall be deemed to have been withdrawn.
(3) Every mortgagee of anyproperty which has vested under this Act, in the Central Government and everyperson holding any charge, lien or other interest in, or in relation to, anysuch property, shall give within such time and in such manner as may beprescribed, an intimation to the Commissioner of suchmortgage, charge, lien or other interest.
(4) For the removal of doubts,it is hereby declared that the mortgagee of any property referred to in sub–section(3) or any other person holding any charge, lien or other interest in, or inrelation to, any such property shall be entitled to claim, in accordance withhis rights and interests, payment of the mortgage money or other duties inwhole or in part, out of the amounts referred to in sections 7 and 8 but nosuch mortgage, charge, lien or other interest shall be enforceable against anyproperty which has vested in the Central Government.
(5) Any licence or otherinstrument granted to the Company in relation to the Aluminium undertakingwhich has vested in the Central Government under section 3 at any time beforethe appointed day and in force immediately before that day shall continue to bein force on and after such day in accordance with its tenor in relation to, andfor the purposes of the said undertaking, and, on and from the date of vestingof such undertaking under section 6, in the Bharat Aluminium Company, thatcompany shall be deemed to be substituted in such licence or other instrumentas if such licence or other instrument had been granted to it and shall holdsuch licence or other instrument for the remainder of the period for which theCompany would have held it under the terms thereof.
(6) If, on the appointed day,any suit, appeal or other proceeding of whatever nature in relation to anyproperty or asset which has vested in the Central Government under section 3,instituted or preferred by or against the Company is pending, the same shall notabate, be discontinued or be, in any way, prejudicially affected by reason ofthe transfer of the Aluminium undertaking or of anything contained in this Act,but the suit, appeal or other proceeding may be continued, prosecuted orenforced by or against the Central Government or where the Aluminiumundertaking is directed under section 6, to vest in the Bharat AluminiumCompany, by or against that company.
5.Central Government or the BharatAluminium Company Not to be liable for prior liabilities: (1) Every liability of theCompany in relation to the Aluminium undertaking in respect of any period priorto the appointed day shall be the liability of the Company and shall beenforceable against it and not against the Central Government or where the Aluminiumundertaking is directed under section 6, to vest in the Bharat AluminiumCompany, against that company.
(2) For the removal of doubts,it is hereby declared that, –
(a) save as otherwise expresslyprovided in this Act, no liability of the Company in relation to the Aluminiumundertaking in respect of any period prior to the appointed day, shall beenforceable against the Central Government or where the Aluminium undertakingis directed under section 6 to vest in the Bharat Aluminium Company, against thatcompany;
(b) no award, decree or underof any court, tribunal or other authority in relation to the Aluminiumundertaking passed after the appointed day, in respect of any matter, claim ordispute which arose before that day, shall be enforceable against the CentralGovernment or where the Aluminium undertaking is directed under section 6 tovest in the Bharat Aluminium Company, against that Company;
(c) noliability incurred by the Company before the appointed day, for thecontravention of any provision of law for the time being in force, shall beenforceable against the Central Government or where the Aluminium undertakingis directed under section 6 to vest in the Bharat Aluminium Company, againstthat company.
6.Vesting of the Aluminiumundertaking in Bharat Aluminium Company: (1) Notwithstanding anything contained in sections3 and 4, the Central Government shall, as soon as may be, after the appointedday, direct, by notification, that the Aluminium undertaking and the right,title and interest of the Company in relation to that undertaking which havevested in the Central Government under section 3, shall instead of continuingto vest in the Central Government, vest in the Bharat Aluminium Company eitheron the date of notification or on such earlier or later date (not being a dateearlier than the appointed day) as may be specified in the notification.
(2) Where the right, title andinterest of the Company in relation to the Aluminium undertaking vest in theBharat Aluminium Company under sub–section (1), the Bharat AluminiumCompany shall, on and from the date of such vesting, be deemed to have becomethe owner in relation to the Aluminium undertaking, and all the rights andliabilities of the Central Government in relation to the Aluminium undertakingshall, on and from the date of such vesting, be deemed to have become therights and liabilities, respectively, of the Bharat Aluminium Company.
PAYMENT OF AMOUNTS
7.Payment of amounts: For the transfer to, andvesting in, the Central Government, under section 3, of the Aluminiumundertaking and the right, title and interest of the company in relation tothat undertaking, three shall be given by the Central Government to theCompany, in cash, and in the manner specified in Chapter VI, an amount ofrupees four crores and twenty–four lakhs.
8.Payment of further amounts: (1) For the deprivation of theCompany of the management of the aluminium undertaking, there shall be given bythe Central Government to the Company, in cash, an amount calculated at therate of rupees two thousand five hundred per mensem for the period commencingon the date on which the management of the Aluminium undertaking was taken overin pursuance of the orders made by the Central Government under the provisionsof the Industries (Development and Regulation) Act, 1951 and ending on theappointed day.
(2) The amount specified insection 7 and the amount calculated in accordance with the provisions of sub–section(1) shall carry simple interest at the rate of four percent, per annum for theperiod commencing on the appointed day and ending on the date on which paymentof such amount is made by the Central Government to the Commissioner.
(3) The amounts determined inaccordance with the provisions of sub–sections (1) and (2) shall begiven by the Central Government to the Company in addition to the amountspecified in section 7.
(4) For the removal of doubts,it is hereby declared that the liabilities of the Company in relation to theAluminium undertaking which has vested in the Central Government under section3, shall be discharged from the amount referred to in section 7 and also fromthe amounts determined under sub–sections (1), (2) and (3) in accordancewith the rights and interests of the creditors of the Company.
MANAGEMENT, ETC., OF THE ALUMINIUM UNDERTAKING
9.Management, etc., of theAluminium undertaking: The general superintendence, direction, control and management ofthe affairs and business of the Aluminium undertaking shall, where a directionhas been issued by the Central Government under section 6, vest in the BharatAluminium Company and thereupon the Bharat Aluminium Company shall be entitledto exercise, to the exclusion of all other persons, all such powers and do allsuch things as the Company is authorised to exercise and do in relation to suchundertaking.
10.Powerof Central Government to issue directions: The Central Government may issue such directions asit may deem desirable in the Circumstances of the case to the Bharat AluminiumCompany and the Bharat Aluminium company may also, if it so desires, apply tothe Central Government at any time for instructions as to the manner in whichthe management of the Aluminium undertaking shall be conducted by its or inrelation to any other matter arising in the course of such management.
11.Duty of persons to accountfor assets, etc., in their possession: (1) Any person who has, on the appointed day, inhis possession or under his control, any assets, books, documents or otherpapers relating to the Aluminium undertaking which has vested in the CentralGovernment or the Bharat Aluminium company under this Act shall be liable toaccount for the said assets, books documents and other papers to the CentralGovernment or the Bharat Aluminium Company and shall deliver them up to theCentral Government or the Bharat Aluminium Company or to such person or personsas the Central Government or the Bharat Aluminium Company may specify in thisbehalf.
(2) The Central Government orthe Bharat Aluminium Company may take or cause to be taken all necessary stepsfor securing possession of the Aluminium undertaking which has vested in theCentral Government or the Bharat Aluminium companyunder this Act.
(3) The Company shall, withinsuch period as the Central Government may allow in this behalf, furnish to thatGovernment a complete inventory of all its properties and assets, as on theappointed day, pertaining to the Aluminium undertaking which has vested in theCentral Government under section 3, and for this purpose the Central Governmentor the Bharat Aluminium Company shall afford to the Company all reasonablefacilities.
PROVISIONS RELATING TO CERTAIN EMPLOYEES OF THE COMPANY
12.Continuanceof employees: (1)Every person who has been, immediately before the appointed day, employed inthe Aluminium undertaking shall become, –
(a) onthe from the appointed day, an employee of the Central Government; and
(b) wherethe Aluminium undertaking is directed under section 6, to vest in the BharatAluminium company, an employee of that company on and from the date of suchvesting,
and shall hold office orservice under the Central Government or the Bharat Aluminium Company, as thecase may be, with the same rights and privileges as to pension, gratuity andother matters as would have been admissible to him if there had been no suchvesting and shall continue to do so unless and until his employment under theCentral Government or the Bharat Aluminium Company, as the case may be is dulyterminated or until his remuneration and other conditions of service are dulyaltered by the Central Government or the Bharat Aluminium Company, as the casemay be.
(2) Notwithstanding anythingcontained in the Industries Disputes Act, 1947, or in any other law for thetime being in force, the transfer of the services of any office or other personemployed in the Aluminium undertaking to the Central Government or the BharatAluminium Company shall not entitle such office or other employee to anycompensation under this Act or under any other law for the time being in forceand no such claim shall be entertained by any court, tribunal or otherauthority.
13.Provident fund and otherfunds: (1) Where the Company hasestablished a provident fund, super–annuation fund, welfare fund or anyother fund for the benefit of the persons employed by it, the monies relatableto the officer or other employee, whose services have become transferred, by orunder this Act to the Central Government or the Bharat Aluminium Company, shallout of the monies standing on the appointed day, to the credit of suchprovident fund, superannuation fund, welfare fund or other fund standtransferred to, and vest in, the Central Government or the Bharat AluminiumCompany, as the case may be.
(2) The monies which standtransferred under sub–section (1) to the Central Government or theBharat Aluminium Company, as the case may be, shall be dealt with by thatGovernment or that company in such manner as may be prescribed.
COMMISSIONER OF PAYMENTS
14.Appointmentof Commissioner of Payments: (1) The Central Government shall, for the purpose of disbursingthe amounts payable to the Company under section 7 and section 8, bynotification, appoint a Commissioner of Payments.
(2) The Central Government mayappoint such other persons as it may think fit to assist the Commissioner andthereupon the Commissioner may authorise one or more of such persons also toexercise all or any of the powers exercisable by him under this Act anddifferent persons may be authorised to exercise different powers.
(3) Any person authorised bythe Commissioner to exercise any of the powers exercisable by the Commissionermay exercise those powers in the same manner and with the same effect as ifthey have been conferred on that person directly by this Act and not by way ofauthorisation.
(4) The salaries and allowancesof the Commissioner and other persons appointed under this section shall bedefrayed out of the Consolidated Fund of India.
15.Paymentby the Central Government to the Commissioner: (1) The Central Government shall, within thirtydays from the specified date, pay, in cash, to the Commissioner, for payment tothe Company an amount equal to the amount specified in section 7 and theamounts payable to the Company under section 8.
(2) A deposit account shall beopened by the Central Government in favour of the Commissioner, in the PublicAccount of India, and every amount paid under this Act to the Commissionershall be deposited by him to the credit of the said deposit account and thesaid deposit account shall be operated by the Commissioner.
(3) Records shall be maintainedby the Commissioner in respect of the Aluminium undertaking in relation towhich payments have been made to him under this Act.
(4) The interest accruing onthe amount standing to the credit of the deposit account referred to in sub–section(2) shall ensure to the benefit.
16.Certainpowers of the Central Government or Bharat Aluminium Company: (1) The Central Government orthe Bharat Aluminium Company, as the case may be, shall be entitled to receiveup to the specified date, to the exclusion of all other persons, any money dueto the Company, in relation to the Aluminium undertaking, realised after theappointed day, notwithstanding that the realisation pertains to a period priorto the appointed day.
(2) The Central Government orthe Bharat Aluminium Company, as the case may be, may make a claim to theCommissioner with regard to every payment made by it after the appointed dayfor discharging any liability of the Company pertaining to the Aluminiumundertaking in relation to any period prior to the appointed day; and everysuch claim shall have priority in accordance with the priorities attachingunder this Act, to the matter in relation to which such liability has beendischarged by the Central Government or the Bharat Aluminium Company, as thecase may be.
(3) Save as otherwise providedin this Act, the liabilities of the Company in relation to the Aluminiumundertaking in respect of any transaction prior to the appointed day, whichhave not been discharged on or before the specified date, shall be theliabilities of the Company.
17.Claimsto be made to the Commissioner: Every person having a claim against the Company in relation tothe Aluminium undertaking shall prefer such claim before the Commissionerwithin thirty days from the specified date:
Provided that if theCommissioner is satisfied that the claimant was prevented by sufficient causefrom preferring the claim within the said period of thirty days, he mayentertain the claim within a further period of thirty days and not thereafter.
18.Priorityof claims: The claims arising out of thematters specified in the Schedule shall have priorities in accordance with thefollowing principles, namely: –
(a) Category I shall haveprecedence over all other Categories and Category II shall have precedence overCategory III, and so on;
(b) the claims specified ineach of the categories shall rank equally and be paid in full, but, if theamount is insufficient to meet such claims in full, they shall abate in equalproportions and be paid accordingly;
(c) thequestion of discharging any liability with respect to a matter specified in alower category shall arise only if a surplus is let after meeting all theliabilities specified in the immediately higher category.
19.Examinationof claims: (1) On receipt of the claimsmade under section 17, the Commissioner shall arrange the claims in the orderof priorities specified in the Schedule and examine the same in accordance withsuch order of priorities.
(2) If, on examination of theclaims, the Commissioner is of opinion that the amount paid to him under thisAct is not sufficient to meet the liabilities specified in any lower category,he shall not be required to examine the claims in respect of such lowercategory.
20.Admissionor rejection of claims: (1) After examining the claims with reference to the prioritiesset out in the Schedule, the Commissioner shall fix a date on or before whichevery claimant shall file the proof of his claim.
(2) Not less than fourteendays’ notice of the date so fixed shall be given by advertisement in one issueof a daily newspaper in the English language having circulation in the majorpart of the country and in one issue of such daily newspaper in such regionallanguage as the Commissioner may consider suitable, and every such notice shallcall upon the claimant to file the proof of his claim with the Commissionerwithin the time specified in the advertisement.
(3) Every Claimant who fails tofile the proof of his claim within the time specified by the Commissioner shallbe excluded from the disbursements made by the Commissioner.
(4) The Commissioner shall,after such investigation as may, in his opinion, be necessary and after givingthe Company an opportunity of refuting the claim and after giving the claimanta reasonable opportunity of being heard admit or reject, by order in writing,the claim in whole or in part.
(5) The Commissioner shall havethe power to regulate his own procedure in all matters arising out of thedischarge of his functions including the place or places at which he may holdhis sittings and shall, for the purpose of making an investigation under thisAct have the same powers as are vested in a civil court under the Code of CivilProcedure, 1908(5 of 1908), while trying a suit, in respect of the followingmatters, namely: –
(a) thesummoning and enforcing the attendance of any witness and examining him onoath;
(b) The discovery andproduction of any document or other material object producible as evidence;
(c) thereception of evidence on affidavits;
(d) theissuing of any commission for the examination of witnesses.
(6) any investigation beforethe commissioner shall be deemed to be a judicial proceeding within the meaningof sections 193 and 228 of the Indian Penal Code and the Commissioner shall bedeemed to be a Civil Court for the purposes of section 195 and Chapter XXVI ofthe Code of Criminal Procedure, 1973(45 of 1860)(2 of 1974).
(7) A claimant who isdissatisfied with the decision of the Commissioner may prefer an appeal againstthe decision to the principal civil court of original jurisdiction within thelocal limits of whose jurisdiction the registered office of the Company issituated:
Provided that where a personwho is a Judge of a High Court is appointed to be the Commissioner, the appealshall lie to the High Court within the local limits of whose jurisdiction suchregistered office is situated, and such appeal shall be heard and disposed ofby not less than two Judges of that High Court.
21.Disbursementof money by the Commissioner of claimants: After admitting a claim under this Act, the amountdue in respect of such claim shall be paid by the Commissioner to the person orpersons to whom such amount is due, and, on such payment, the liability of theCompany in respect of such claim shall stand discharged.
22.Disbursementof amounts to the Company: (1) If, out of the monies paid to him under section 15, there isa balance left after meeting the liabilities as specified in the Schedule, theCommissioner shall disburse such balance to the Company.
(2) where the possession of anymachinery, equipment or other property, has vested in the Central Government orthe Bharat Aluminium Company under this Act, but such machinery, equipment, orother property does not belong to the Company, it shall be lawful for theproperty does not belong to the company, it shall be lawful for the CentralGovernment or the Bharat Aluminium Company to continue to posses such machineryor equipment or other property on the same terms and conditions under which itwas possessed by the Company immediately before the appointed day.
23.Undisbursed or unclaimedamount to be transferred to the general revenue account: Any money paid to theCommissioner which remains undisbursed or unclaimed on the date immediatelypreceding the date on which the office of the Commissioner is wound up, shallbe transferred by the Commissioner, before his office is finally wound up, tothe general revenue account of the Central Government; but a claim to any moneyso transferred may be preferred to the Central Government by the personentitled to such payment and shall be dealt with as if such transfer had not beenmade, and the order, if any, for payment of the claim being treated as an orderfor the refund of revenue.
24.Act to have overridingeffect: The provisions of this Actshall have effect notwithstanding anything inconsistent therewith contained inany other law for the time being in force or in any instrument having effect byvirtue of any law, other than this Act, or in any decree or order of any court,tribunal or other authority.
25.Contracts in relation to theAluminium undertaking to cease to have effect unless ratified by the CentralGovernment or Bharat Aluminium: Every contract entered into by the Company in relation to theAluminium undertaking for any service, sale or supply, and in force immediatelybefore the appointed day, shall, on and from the expiry of one hundred andeighty days from such day, cease to have effect unless such contract is, beforethe expiry of that period, ratified, in writing, by the Central Government orthe Bharat aluminium Company and, in ratifying such Contract, the CentralGovernment or the Bharat Aluminium Company may make such alterations ormodifications therein as it may think fit:
Provided that the CentralGovernment or the Bharat Aluminium company shall not omit to ratify a contract,and shall not make any alteration or modification in a contract, –
(a) unless it is satisfied thatsuch contract is unduly onerous or has been entered into in bad faith or isdetrimental to the interests of the Central Government or the Bharat AluminiumCompany, and
(b) exceptafter giving the parties to the contract a reasonable opportunity of beingheard and except after recording in writing its reasons for refusal to ratifythe contract or for making any alteration or modification therein.
26.Penalties: Any person who, –
(a) having in his possession,custody or control any property or assets forming part of the Aluminiumundertaking, wrongfully withholds such property or assets from the CentralGovernment the Bharat Aluminium Company; or
(b) wrongfullyobtains possession of, or retains, any property or assets forming part of theAluminium undertaking; or
(c) wilfully withholds or failsto furnish to the Central Government, or the Bharat Aluminium Company or to anyperson or body of person specified by that Government or company, any documentor inventory relating to that undertaking which may be in his possession,custody or control; or
(d) fails to deliver to theCentral Government, or the Bharat Aluminium Company or to any person or body orpersons specified by that Government or company, any property, assets, books ofaccount registers or other documents in his possession, custody or control,relating to the Aluminium undertaking; or
(e) wrongfully removes ordestroys any property or asset forming part of the Aluminium undertaking orprefers any claim under this Act which he knows or has reasonable cause tobelieve to be false or grossly inaccurate,
shall be punishable withimprisonment for a term which may extend to two years, or with fine which mayextend to then thousand rupees, or with both.
27.Offencesby companies: (1)Where an offence under this Act has been committed by a company, every personwho, at the time the offence was committed, was in charge of, and wasresponsible to, the company for the conduct of the business of the company, aswell as the company, shall be deemed to be guilty of the offence and shallliable to be proceeded against and punished accordingly:
Provided that nothing containedin this sub–section shall render any such person liable to anypunishment, if he proves that the offence was committed without his knowledgeor that he had exercised all due diligence to prevent the commission of suchoffence.
(2) Notwithstanding anythingcontained in sub–section (1), where any offence under this Act has beencommitted by a company and it is proved that the offence has been committedwith the consent or connivance of, or is attributable to any neglect on thepart of, any director, manager, secretary or other officer or the company, suchdirector, manager, secretary or other officer shall be deemed to be guilty ofthat offence and shall be liable to be proceeded against and punishedaccordingly.
Explanation: For thepurposes of this action, –
(a) "company"means any body corporate and includes a firm or other association ofindividuals; and
(b) "director",in relation to a firm, means a partner in the firm.
28.Protectionof action taken in good faith: (1) No suit, prosecution or other legal proceeding shall lieagainst the Central Government or the Bharat Aluminium Company or any officeror other employee of that Government, or that company, or any person authorisedby that Government or that company for anything which is in good faith done orintended to be done under this Act.
(2) No suit or other legalproceeding shall lie against the Central Government or the Bharat AluminiumCompany or any officer or other employee of the Government or that company orany person authorised by that Government or that company for any damage causedor likely to be caused by anything which is in good faith done or intended tobe done under this Act.
29.Delegationof powers: (1) The Central Governmentmay, by notification, direct that all or any of the powers exercisable by itunder this Act, other than the power conferred by this Section 30 or section 31may also be exercised by such person or persons as may be specified in thenotification.
(2) Whenever any delegation ofpower is made under sub–section (1) , theperson to whom such power has been delegated shall act under the direction,control and supervision of the Central Government.
30.Powerto make rules: (1) TheCentral Government may, by notification, make rules for carrying out theprovisions of this Act.
(2) In particular, and withoutprejudice to the generality of the foregoing power, such rules may provide forall or any of the following matters, namely: –
(a) thetime within which, and the manner in which, an intimation shall be given to theCommissioner under sub–section (3) of section 4;
(b) themanner in which the moneys in any provident fund or other fund referred to insection 13 shall be dealt with;
(c) anyother matter which is required to be, or may be, prescribed.
(3) Every rule made by theCentral Government under this Act shall be laid, as soon as may be after it ismade, before each House of Parliament, while it is in session, for a totalperiod of thirty days which may be comprised in one session or in two or moresuccessive sessions, and if, before the expiry of the session immediatelyfollowing the session or the successive sessions aforesaid, both Houses agreein making any modification in the rule or both Houses agree that the ruleshould not be made, the rule shall thereafter have effect only in such modifiedform or be of no effect, as the case may be; so, however, that any suchmodification or annulment shall be without prejudice to the validity ofanything previously done under that rule.
31.Powerto remove difficulties: If any difficulty arises in giving effect to the provisions ofthis Act, the Central Government may, by order, not inconsistent with theprovisions of this Act, remove the difficulty:
Provided that no such ordershall be made after the expiry of a period of two years from the appointed day.
[Seesections 18, 19 (1), 20 (1) and 22 (1)]
ORDER OF PRIORITIES FOR THE DISCHARGE OF LIABILITIES OF THEALUMINIUM UNDERTAKING
Employees’ dues on account ofunpaid salaries and wages, contributions to be made by the Company and theemployees to the provident fund and Employees State Insurance, premium relationto Life Insurance Corporation of India and any other amounts due to employees,in respect of any period whether before or after the management of theAluminium undertaking had been taken over by the Central Government.
Loans advanced by banksfinancial institutions during the post–take over management period.
Loans advanced by the CentralGovernment and State Government during the post–take over managementperiod.
Any credit availed of for thepurpose of carrying on any trading or manufacturing operations during the post–takeover management period.
Any other loans obtained duringthe post–take over management period.
Secured loans obtained duringthe pre–take over management period.
Unsecured loans or other dues to creditors in relation to anytransaction which took place during the pre–take over management period.
Revenue, taxes, cesses, ratesor other dues for the Central Government, State Government and localauthorities or State Electricity Board in respect of any period whether beforeor after the management of the Aluminium undertaking had been taken over by theCentral Government.