ASSAM SILLIMANITE LIMITED (ACQUISITION AND TRANSFER OF REFRACTORY PLANT) ACT 1976

THE ASSAM SILLIMANITE LIMITED (ACQUISITION AND TRANSFER OFREFRACTORY PLANT) ACT, 1976

ACT No. 22 OF 1976

11thFebruary, 1976

An Act to provide for the acquisition and transfer of the right,title and interest of the Assam Sillimanite Limited in respect of itsRefractory Plant and for matters connected therewith or incidental thereto

WHEREAS it is urgentlynecessary to augment the supplies of refractories to meet the essentialrequirements of the iron and steel industry;

AND WHEREAS for the said purpose,a licence to set up a refractory plant was granted to the Assam SillimaniteLimited under the Industries (Development and Regulation) Act, 1951 (65 of1951);

AND WHEREAS in pursuance of thelicence granted to it, the Assam Sillimanite Limited had imported machineryfrom abroad and commenced the construction of the first stage of its RefractoryPlant but the project of the said company did not proceed beyond the firststage on account of financial and other difficulties, and the pilot RefractoryPlant, which was constructed by the said company, has been closed;

AND WHEREAS special type ofrefractories, including high alumina refractories, needed by the iron and steelindustry may be manufactured at the Refractory Plant of the Assam SillimaniteLimited and such manufacture will enable the country to progressively reducethe import of such special type of refractories;

AND WHEREAS for the purpose ofspeedily bringing the Refractory Plant of the Assam Sillimanite Limited intooperation, the management of the said Refractory Plant was taken over, for alimited period by the Central Government under section 18AA of the Industries(Development and Regulation) Act, 1951(65 of 1951);

AND WHEREAS for the purpose ofaugmenting the supplies of refractories to meet the essential requirements ofthe iron and steel industry, it is necessary to acquire the right, title andinterest of the Assam Sillimanite Limited in respect of its Refractory Plant;

BE it enacted by Parliament inthe Twenty–seventh Year of the Republic of Indiaas follows: –

CHAPTER I

PRELIMINARY

1.Short title: This Act may be called theAssam Sillimanite Limited (Acquisition and Transfer of Refractory Plant) Act,1976.

2.Definitions: In this Act, unless the context otherwise requires,-

(a) "appointedday" means the day on which this Act comes into force;

(b) "Commissioner"means the Commissioner of Payments appointed under section 14;

(c) "Company" meansthe Assam Sillimanite Limited, being a company as defined in the Companies Act,1956 and having its registered office at Gauhati in the State of Assam;

(d) "RefractoryPlant" means the refractory manufacturing plant, owned by the Company,situated near Ramgarh in the State of Bihar;

(e) "specifieddate" means such date as the Central Government may, by notification inthe Official Gazette, specify in relation to any provision of this Act anddifferent dates may be specified in relation to different provisions of thisAct;

(f) wordsand expressions used herein and not defined but defined in the Companies Act,1956 have the meanings respectively assigned to them in that Act.

CHAPTER II

ACQUISITION OF THE REFRACTORY PLANT

3.Refractory Plant to vest in the CentralGovernment: On theappointed day, the Refractory Plant shall, by virtue of this Act, standtransferred to, and the right, title and interest of the Company in relation toits Refractory Plant shall vest absolutely in, the Central Government.

4.Power of Central Governmentto direct vesting of the Refractory Plant in a Government company: (1) Notwithstanding anythingcontained in section 3, the Central Government may, if it is satisfied that aGovernment company is willing to comply, or has complied, with such terms andconditions as that Government may impose, direct, by an order in writing, thatthe right, title and interest of the Company in relation to the RefractoryPlant shall, instead of continuing to vest in the Central Government, vest inthe Government company either on the date of publication of the direction or onsuch earlier or later date (not being a date earlier than the appointed day) asmay be specified in that direction.

(2) Where an order for vestingof the Refractory Plant in a Government company is made under sub–section(1), all the rights and obligations of the Central Government in relation tothe Refractory Plant shall, on and from the date of such vesting, be deemed tohave become the rights and obligations, respectively, of the Government company.

(3) The Government companyshall, in the management and administration of the Refractory Plant, act inaccordance with such directions, if any, as may be issued by the CentralGovernment in this behalf.

(4) The Government company may also apply to the CentralGovernment at any time for instructions as to the manner in which themanagement of the Refractory Plant shall be conducted or in relation to anymatter arising in the course of such management.

5.General effect of vesting: (1) The Refractory Plant shallbe deemed to include all assets, rights, powers, authorities and privileges andall property, movable and immovable (not being any mining lease held by theCompany before the appointed day), cash balances, cash on hand, reserve funds,investments, book debts and all other rights and interests in, or arising out of,such property as were immediately before the appointed day, in the ownership,possession, power or control of the Company, whether within or outside India,and all books of account, registers and all other documents of whatever naturerelating thereto and shall also be deemed to include the liabilities andobligations specified in sub–section (2) of section 8.

(2) All property as aforesaidwhich have vested in the Central Government under section 3 shall, by force ofsuch vesting, be freed and discharged from any trust, obligation, mortgage,charge, lien and from all other encumbrances affecting it, and any attachment,injunction, or decree or order of any court restricting the use of suchproperty in any manner or appointing any receiver in respect of the whole orany part of such property shall be deemed to have been withdrawn.

(3) Every mortgage 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(2) 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 dues, in wholeor in part, out of the amount specified in relation to such property in section9, but no such mortgage, charge, lien or other interest shall be enforceableagainst any property which has vested in the Central Government or the CentralGovernment.

(5) If, on the appointed day,any suit, appeal or other proceeding of whatever nature in relation to anymatter specified in sub–section (2) of section 8, instituted orpreferred against the Company is pending, the same shall not, in so far as itrelates to the Refractory Plant, abate, be discontinued, or be, in any way,prejudicially affected by reason of transfer of the Refractory Plant or ofanything contained in this Act, but the suit, appeal or other proceeding may becontinued, prosecuted and enforced by or against the Central Government or theGovernment company, as the case may be.

6.Duty to deliver possession ofthe Refractory Plant and documents thereto: (1) Every person, in whose possession or custody orunder whose control the Refractory Plant or any part thereof or any machinery,instrument or other movable asset forming part of the Refractory Plant, may beimmediately before the appointed day, shall forthwith deliver possession of theRefractory Plant, or such part, machinery, instrument or other asset, as thecase may be, to the Central Government or the Government company or to suchperson or body of persons as the Central Government or the Government companymay specify in this behalf.

(2) Every person who has, onthe appointed day, in his possession or under his control any books, documentsor other papers relating to the Refractory Plant which has vested in theCentral Government or a Government company under this Act, and which belong tothe Company or would have so belonged if the Refractory Plant had not vested inthe Central Government or the Government company, shall be liable to accountfor the said books, documents and other papers to the Central Government or theGovernment company, as the case may be, and shall deliver them up to theCentral Government or the Government company or to such person or body ofpersons as the Central Government or the Government company may specify in thisbehalf.

(3) The Central Government maytake or cause to be taken all necessary steps for securing possession of theRefractory Plant which has vested in it under section 3.

7.Duty to furnish particulars: The Company shall, within suchperiod as the Central Government may allow in this behalf, furnish to thatGovernment a complete inventory of all the properties and assets of the Companyas on the appointed day, pertaining to the Refractory Plant which has vested inthe Central Government under section 3, and for this purpose the CentralGovernment or the Government company shall afford the Company all reasonablefacilities.

8.Company to be liable for certain priorliabilities: (1) Everyliability, other than the liability specified in sub–section (2), of theCompany in relation to the Refractory Plant, in respect of any period prior tothe appointed day, shall be the liability of the Company and shall be enforcedagainst it and not against the Central Government or the Government company.

(2) Any liability in respect of-

(a) theamounts advanced to the Company (after the management of the Refractory Planthad been taken over by the Central Government) by the Hindustan Steel Limited(a company formed and registered under the companies Act, 1956), together withinterest due thereon;

(b) wages,salaries and other dues of employees of the Refractory Plant, in respect of anyperiod after the management of such plant had been taken over by the CentralGovernment,

shall, on and from theappointed day, be the liability of the Central Government and shall bedischarged by that Government or, for and on behalf of that Government, by theGovernment company, as and when repayment of such amount becomes due or as andwhen such wages, salaries and other dues become due and payable.

(3) For the removal of doubts,it is hereby declared that, –

(a) save as otherwise expresslyprovided in this section or in any other section of this Act, no liabilityother than the liability specified in sub–section (2) in relation to theRefractory Plant, in respect of any period prior to the appointed day shall beenforceable against the Central Government or the Government company, as thecase may be;

(b) no award, decree or orderof any court, tribunal or other authority in relation to the Refractory Plant,passed after the appointed day in respect of any matter, claim or dispute inrelation to any matter, not being a matter referred to in sub–section(2), which arose before that date, shall be enforceable against the CentralGovernment or the Government company, as the case may be;

(c) noliability incurred by the Company before the appointed day, for thecontravention, in relation to the Refractory Plant, of any provision of law forthe time being in force, shall be enforceable against the Central Government orthe Government company, as the case may be.

CHAPTER III

PAYMENT OF AMOUNT

9.Amount to be paid fortransfer and vesting of Refractory Plant: (1) The Company shall be given by the CentralGovernment in cash and in the manner specified in Chapter IV, an amount of onecrore seven lakhs and seventeen thousand rupees for the transfer to, andvesting in, it, under section 3, of the Refractory Plant.

(2) The amount payable undersub–section (1) shall carry simple interest at the rate of four percent,per annum for the period commencing on the appointed day and ending on the dateon which payment of such amount is made by the Central Government to theCommissioner.

(3) For the removal of doubts,it is hereby declared that the liabilities of the Company in relation to theRefractory Plant , other than those referred to in sub–section(2) of section 8, shall be met from the amount referred to in sub–section(1), in accordance with the rights and interests of the creditors of theCompany.

10.Paymentof other amount: (1) In addition to the amounts specified in section 9, there shallalso be given the Company, in cash, by the Central Government an amountcomputed at the rate of rupees two thousand and five hundred per mensem for thedeprivation of the Company of the management of its Refractory Plant during theperiod commencing on the 2nd day of November, 1972, and ending on the appointedday.

(2) In addition to the amountreferred to in sub–section (1), there shall be given by the CentralGovernment, in cash, to the Company, simple interest at the rate of fourpercent per annum on the amount computed at the rate specified in sub–section(1), for the period commencing on the appointed day and ending on the date onwhich payment of such amount is made by the Central Government to theCommissioner.

CHAPTER IV

MANAGEMENT, ETC., OF REFRACTORY PLANT

11.Management,etc., of Refractory Plant: On the commencement of this Act, the general superintendence,direction control and management of the affairs and business of the RefractoryPlant shall,

(a) wherea direction has been made by the Central Government under section 4, vest inthe Government company specified in such direction, or

(b) whereno direction has been made, vest in such person or body of persons as may beappointed by the Central Government in this behalf,

and thereupon the Governmentcompany so specified or the person or body of persons so appointed, as the casemay be, shall be entitled to exercise all such powers and do all such things asthe Company is authorised to exercise and do in relation to the RefractoryPlant.

CHAPTER V

PROVISIONS RELATING TO EMPLOYEES OF REFRACTORY PLANT

12.Employment of employees tocontinue: (1) Every person, who has been,immediately before the appointed day, employed by the Company, shall, ifemployed in connection with the Refractory Plant, become, as from the appointedday, an employee of the Central Government or the Government company in whichthe Refractory Plant has vested, as the case may be, and shall hold his officeor service therein by the same tenure, on the same remuneration and upon thesame terms and conditions and same rights and privileges as to pension andgratuity and other like matters as he would have held the same under theCompany if the Refractory Plant had not vested in the Central Government or theGovernment company, and shall continue to do so unless and until his employmentin Central Government or the Government company is duly terminated or until hisremuneration, terms and conditions of employment are duly altered by theCentral Government or the Government company, as the case may be.

(2) Notwithstanding anythingcontained in the Industrial Disputes Act, 1947(14 of 1947), or in any other lawfor the time being in force, the transfer of the services of any employee ofthe Company to the Central Government or the Government company shall notentitle such employee to any compensation under this Act or under any other lawfor the time being in force and no such claim shall be entertained by anycourt, tribunal or other authority.

(3) Where, under the terms ofany contract of service or otherwise, any, person, whose services becometerminated or whose services become transferred to the Central Government orthe Government company by reason of the provisions of this Act, is entitled toarrears of salary or wages or any payment for any leave not availed of or otherpayment, not being payment by way of gratuity or pension, such person may,except to the extent such liability has been taken over by the CentralGovernment under sub–section (2) of section 8, enforce the claim againstthe Company but not against the Central Government or the Government company.

13.Provident and other funds: (1) Where the Company hasestablished a provident fund, superannuation, welfare or other fund for thebenefit of the persons employed in the Refractory Plant, the monies relatableto the employees whose services have become transferred by or under this Act tothe Central Government or the Government company shall, out of the moniesstanding, on the appointed day, to the credit of such provident fund,superannuation, welfare or other fund, stand transferred to, and vested in, theCentral Government or the Government company, as the case may be.

(2) The monies which standtransferred, under sub–section (1), to the Central Government or the Governmentcompany, shall be dealt with by that Government orGovernment company, as the case may be, in such matter as may be prescribed.

CHAPTER VI

COMMISSIONER OF PAYMENTS

14.Appointmentof Commissioner of Payments: (1) For the purpose of disbursing the amount payable to theCompany, the Central Government shall, by notification in the Official Gazette,appoint such person as it may think fit to be the 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 powers may exercise those powers in the samemanner and with the same effect as if they have been conferred on that persondirectly by this Act and not by way of authorisation.

(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 thirty daysfrom the specified date, pay, in cash, to the Commissioner, for payment to theCompany, an amount equal to the amount specified in section 9 and shall alsopay to the Commissioner such amounts as may be payable to the Company under sub–section(1) and (2) of section 10.

(2) A deposit account shall beopened by the Central Government in favour of the Commissioner in Pubic Accountof India, and every amount paid under this Act to the Commissioner shall bedeposited by him to the credit of the said deposit account in the PublicAccount of India, and thereafter the said deposit account shall be operated bythe Commissioner.

(3) Interest accruing on theamount standing to the credit of the deposit account referred to in sub–section(2) shall ensure to the benefit of the Company.

16.Priorityof claims in relation to arrears of provident fund, etc: (1) Out of the amount paid tohim under sub–section (1) of section 15, the Commissioner shall deductin the first instance, all sums equal to the amount of arrears due to thepersons who were in employment of the Company, in connection with theRefractory Plant, on the 1st day of July, 1973, –

(a) inrelation to a provident fund, pension fund or any other fund established forthe welfare of such persons,

(b) aswages.

(2) All sums deducted under sub–section(1) shall, in accordance with such rules as may be made under this Act, becredited by the Commissioner to the relevant fund or paid by him to the personsto whom the said sums are due and on such credit or payment, the liability ofthe Company in respect of the amount of arrears due as aforesaid shall, to theextent of such credit or payment, stand discharged.

(3) Every deduction made undersub–section (1) shall have priority over all other debts, whethersecured or unsecured.

17.Priorityin relation to other claims: (1) Save as otherwise provided in section 16, every secured debtdue from the Company shall have priority over all other debts and shall be paidin accordance with the rights and interests of the secured creditors:

Provided that where the secureddebts are due to different creditors by reason of the hypothecation ofdifferent assets to them, such debts shall be repaid in full in accordance withthe rights and interests of such creditors, unless the balance of the amountleft after meeting the liabilities referred to in section 16 is insufficient tomeet them, in which case they shall abate in equal proportions and be paidaccordingly.

(2) Notwithstanding anythingcontained in any other law for the time being in force, there shall be paid inpriority to all other unsecured debts, –

(a) all revenues, taxes,cesses, rates and any other dues payable immediately before the appointed day,to the Central Government, State Governments, local authorities and State ElectricityBoards in relation to the Refractory Plant, as the case may be;

(b) all amounts due in respectof any compensation or liability for compensation under the Workmen’sCompensation Act, 1923, in respect of the death or disablement of any employeeof the Company in relation to the Refractory Plant, unless the Company has,under such a contract with insurers as is mentioned in section 14 of the saidAct, rights capable of being transferred to, and vested in, the workmen;

(c) all sums deducted by the Companyfrom the salary or wages of any employee of the Refractory Plant for credit toany provident fund or any other fund established for the welfare of theemployees but not deposited to the credit of such funds.

(3) The debts specified in sub–section(2) shall rank equally among themselves and be paid in full, unless the balanceof the amount left after meeting the liabilities referred to in section 16, andsub–section (1) of this section, is sufficient to meet them, in whichcase they shall abate in equal proportions and be paid accordingly.

18.Claimsto be made to the Commissioner: Every person having a claim against the Company in relation to theRefractory Plant shall prefer such claim before the Commissioner within thirtydays 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, but not thereafter.

19.Proofor claims: (1) TheCommissioner shall fix a certain date on or before which every claimant shallfile the proof of his claim or be excluded from the benefit of the deductionsor disbursements made by the Commissioner.

(2) Not less than fourteendays’ notice of the date so fixed shall be given by advertisement in one issueof the daily newspaper in the English language and in one issue of such dailynewspaper in the regional language as the Commissioner may consider suitable,and every such notice shall call upon the claimants to file the proof of theirclaims with the Commissioner within 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 deductions or disbursements made by the Commissioner.

(4) The Commissioner shall,after such investigation as may, in his opinion, benecessary and after giving the Company an opportunity of refuting the claim andafter giving the claimant a reasonable opportunity of being heard, in writing,admit or reject 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 will 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 ofCivil Procedure, 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) thediscovery and production of any document or other material object producible asevidence;

(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 (45 of 1860)and the Commissionershall be deemed to be a civil court for the purpose of section 195 and ChapterXXVI of the Code of Criminal Procedure, 1973 (2 of 1974).

(7) A claimant who isdissatisfied with the decision of the Commissioner may prefer an appeal againstthe decision to the principle civil court of original jurisdiction within thelocal limits of whose jurisdiction the Refractory Plant is situated:

Provided that where a personwho is a Judge of a High Court is appointed to be the Commissioner, such appealshall lie to the High Court for the State in which Refractory Plant issituated, and such appeal shall be heard and disposed of by not less than twoJudges of that High Court.

20.Disbursement of money by theCommissioner to claimants: Where, after meeting the claims admitted by him of securedcreditors, and unsecured creditors having priority under sub–section (2)of section 17, the total amount of the claims of other unsecured creditorsadmitted by the Commissioner does not exceed the balance of the amount leftafter meeting the liabilities referred to in section 16, and sub–sections(1) and (2) of section 17, every admitted claim of such other unsecuredcreditors, shall rank equally among themselves and be paid in full, and thebalance, if any, shall be paid to the Company; but where such amount isinsufficient to meet in full the total amount of such admitted claims, all suchclaims shall abate in equal proportions and be paid accordingly.

21.Undisbursed or unclaimedamount to be deposited to the general revenue account: Any money paid to theCommissioner which remains undisbursed or unclaimed for a period of three yearsfrom the first day on which the disbursement was made, shall be transferred bythe Commissioner to the general revenue account of the Central Government; buta claim to any money so transferred may be preferred to the Central Governmentby the person entitled to such payment and shall be dealt with as if suchtransfer had not been made, the order, if any, for payment of the claim beingtreated as an order for the refund of the revenue.

CHAPTER VII

MISCELLANEOUS

22.Penalties:Any person, who, –

(a) having in his possession,custody or control any property forming part of the Refractory Plant,wrongfully withholds such property from the Central Government or theGovernment company, as the case may be; or

(b) wrongfully obtainspossession of, or retains any property forming part of the Refractory Plant orwillfully withholds or fails to furnish to the Central Government or theGovernment company or any person or body of persons specified by thatGovernment or the Government company, as the case may be, any document relatingto such Refractory Plant which may be in his possession, custody or control orfails to deliver to the Central Government or the Government company or anyperson or body of persons specified by that Government or the Governmentcompany any assets, books of account, registers or other documents in hiscustody or control, relating to the Refractory Plant; or

(c) wrongfully removes ordestroys any property forming part of the Refractory Plant or prefers any claimunder this Act which he knows or has reasonable cause to believe to be false orgrossly inaccurate,

shall be punishable withimprisonment for a term which may extend to two years or with fine which mayextend to ten thousand rupees, or with both.

23.Offencesby companies: (1) Wherean offence under this Act has been committed by a company, every person who atthe 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 thecompany, shall be deemed to be guilty of the offence and shall be liable to beproceeded 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 shall be liable to beproceeded against and punished accordingly.

Explanation: For thepurposes of this section, –

(a) "company"means any body corporate and includes a firm or other association ofindividuals;

(b) "director",in relation to a firm, means a partner in the firm.

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.Protectionof action taken in good faith: (1) No suit, prosecution or other legal proceeding shall lieagainst the Central Government or any of its officers or other employees foranything which is in good faith done or intended to be done under this Act.

(2) No suit or other legalproceeding shall lie against the Central Government or any of its officers orother employees for any damage caused or likely to be caused by anything whichis in good faith done or intended to be done under this Act.

26.Contracts to cease to haveeffect unless ratified by the Central Government or Government company: (1) Every contract entered intoby the Company in relation to the Refractory Plant for any service, sale orsupply and in force immediately before the appointed day, shall, on and fromthe expiry of one hundred and eighty days from the appointed day, cease to haveeffect unless such contract is, before the expiry of that period, ratified, inwriting, by the Central Government or the Government company, and, in ratifyingsuch contract, the Central Government or the Government company may make suchalteration or modification therein as it may think fit:

Provided that a Governmentcompany shall not make any alteration or modification in a contract without theprevious approval of the Central Government:

Provided further that theCentral Government or the Government company shall notomit to ratify a contract, and shall not make any alteration or modification ina contract, unless it is satisfied that such contract is unduly onerous or hasbeen entered into in bad faith or is detrimental to the interests of theRefractory Plant.

(2) The Central Government orthe Government company shall not omit to ratify a contract, and, shall not makeany alteration or modification therein, except after giving to the parties tothe contract a reasonable opportunity of being heard and except afterrecording, in writing, its reasons for refusal to ratify the contract or formaking any alteration or modification therein.

27.Delegationof powers: (1) TheCentral Government may, by notification in the Official Gazette, direct thatall or any of the powers exercisable by it under this Act may also be exercisedby any person or persons as may be specified in the notification.

(2) Whenever any delegation ofpower is made under sub–section (1), the person to whom such power hasbeen delegated shall act under the direction, control and supervision of theCentral Government.

28.Powerto make rules: (1) TheCentral Government may, by notification in the Official Gazette, make rules forcarrying out the provisions of this Act.

(2) In particular, and withoutprejudice to the generally of the foregoing power, such rules may provide forall or any of the following matters, namely: –

(a) themanner in which monies in any provident or other fund referred to in section 13shall be dealt with;

(b) 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 don’t under the rule.

29.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.

30.Declarationas to the policy of the State: It is hereby declared that this Act is for giving effect to thepolicy of the State towards securing the principles specified in clause (b) ofarticle 39 of the Constitution.

Explanation: In thissection, "State" has the same meaning as in article 12 of theConstitution.