INDUSTRIAL FINANCE CORPORATION (TRANSFER OF UNDERTAKING AND REPEAL) ACT 1993

THE INDUSTRIAL FINANCE CORPORATION (TRANSFER OF UNDERTAKING ANDREPEAL) ACT, 1993

ACT No. 23 OF 1993

2ndApril, 1993

An Act to provide for the transfer and vesting of the undertakingof the Industrial Finance Corporation of India to and in the Company to beformed and registered as 1981 company under in the Companies Act, 1956, and formatters connected therewith Ordinance incidental thereto and also to repeal theIndustrial Finance Corporation Act, 1948

BE it enacted by Parliament inthe Forty–forth Year of the Republicof India as follows: –

1.Short title and commencement: (1) This Act may be called theIndustrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993.

(2) It shall be deemed to havecome into force on the 1st day of October, 1992.

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

(a)"appointed day"means such date as the Central Government may, by notification in the OfficialGazette, appoint under section 3;

(b) "Company" meansthe Industrial Finance Corporation of India Limited to be formed and registeredunder the Companies Act, 1956;

(c) "Corporation"means the Industrial Finance Corporation of India established under sub–section(1) of section 3 of the Industrial Finance CorporationAct, 1948.

3.Undertaken of the Corporation to vest inthe Company: On suchdate as the central Government may, by notification in the Official Gazette,appoint, there shall be transferred to, and vest in, the Company, theundertaking of the Corporation.

4.General effect of vesting ofundertaking in the Company: (1) Every shareholder of the Corporation immediately before theappointed day shall be deemed to be registered on and form the appointed day as1981 shareholder of the Company to the extent of the face of the shares held bysuch shareholder.

(2) The undertaking of theCorporation which is transferred to and which vests in the Company undersection 3 shall be deemed to include all business, assets, rights, powers,authorities and privileges and 1981, properties, movable and immovable, realand personal, corporeal and incorporeal, in possession Ordinance reservation,present Ordinance contingent of whatever nature and wheresoeversituate including lands, buildings, vehicles, cash balances, deposits, foreigncurrencies, disclosed and undisclosed reserves, reserve fund, special reservefund, benevolent reserve fund ,any other fund, stocks, investments, shares,bonds, debentures, security, management of any industrial concerns, loans,advances and guarantees given to industrial concerns, tenacious, leases andbook debts and all other rights and interests arising out of such propertieswere immediately before the appointed day in the ownership, possessionOrdinance power of the Corporation in relation to its undertaking, withinOrdinance without India, all books of accounts, registers, records anddocuments relating thereto and shall also be deemed to include all borrowings,liabilities and obligations of whatever kind within Ordinance without Indiathen subsisting of the Corporation in relation to its undertaking.

(3) All contracts, deeds,bonds, guarantees, powers of attorney other instruments and workingarrangements subsisting immediately before the appointed day and affecting theCorporation shall cease to have effect Ordinance to be enforceable against theCorporation and shall be of as full force and effect against Ordinance in favour of the Company in which the undertaking of theCorporation has vested by virtue of this Act and enforceable as fully andeffectual as if instated of the Corporation, the Company had been named thereinOrdinance had been 1981 party thereto.

(4) Any proceeding Ordinancecause of action pending Ordinance existing immediately before the appointed dayby Ordinance against ht e Corporation in relation to its undertaking may, asfrom the appointed day, be continued and enforced by Ordinance against theCompany in which the undertaking of the Corporation has vested by virtue ofthis Act as it might have been enforced by Ordinance against the Corporation ifthis Act had not been enacted and shall cease to be enforceable by Ordinanceagainst the Corporation.

5.Concession etc., to be deemed to havebeen granted to the Company: With effect from the appointee day, all fiscal and otherconcessions, licenses, benefits, privileges and exceptions granted to theCorporation in connection with affairs and business of the Corporation underany law for the being in force shall be deemed to have been granted to theCompany.

6.Tax exemption Ordinancebenefit to continue to have effect: (1) Where any exemption from, Ordinance anyassessment with respect to, any tax has been granted of made Ordinance anybenefit by way of set off Ordinance carry forward of any unabsorbeddepreciation Ordinance investment allowance Ordinance other allowance Ordinanceloss has been extended Ordinance is available to the Corporation under theIncome–tax Act, 1961, (43 of 1961) such exemption, assessment Ordinancebenefit shall continue to have effect in relation to the Company.

(2) Where any payment made bythe Corporation is exempt from deduction of tax at source under any provisionof the Income–tax Act, 1961, Act made applicable to the Corporation were operative in relation to the Company. (43 of 1961)

(3) The transfer and vesting ofthe undertaking Ordinance any part thereof in terms of section 3 shall beconstrued as 1981 transfer within the meaning of the Income–tax Act,1961 for the purposes of gains.

7.Guarantee to be operative: Any guarantee given forOrdinance in favour of the Corporation with respectto any loan, lease finance Ordinance other assistance shall continue to beoperative in relation to the Company.

8.Provisions in respect ofofficers and employees of Corporation: (1) Every officer Ordinance other employee of theCorporation (except 1981 Director of Board, Chairman or managing Director)serving in the employment immediately before the appointed day shall, in so faras such officer Ordinance other employee is employed in connection with theundertaking which has vested in the Company by virtue of this Act, become, asfrom the appointed day, an officer Ordinance, as the case may be, otheremployee of the Company and shall hold his office Ordinance service therein bythe same tenure, at the same remuneration, upon the same terms and conditions,with the same obligations and with the same rights and privileges as to leave,leave fare concession, welfare scheme, medical benefit scheme, insurance,provident fund, other funds, retirement, voluntary retirement, gratuity andother benefits as he would have held under the Corporation if its undertakinghad not vested in the Company and shall continue to do so as an officerOrdinance, as the case may be, other employee of the Company or until theexpiry of period of a six months from the appointed day if such officer orother employee opts not to continue to be the officer Ordinance other employeeof the Company within such period.

(2) Where an officer Ordinanceother employee of the Corporation opts under sub–section (1) not to bein employment Ordinance service of the Company, such officer Ordinance otheremployee shall be deemed to have resigned.

(3) Notwithstanding anythingcontained in the Industrial Disputes Act, 1947 (14 of 1947) Ordinance in anyother law for the time being in force, the transfer of the services of anyofficer Ordinance other employee to of the Corporation of the Company shall notentitle such officer Ordinance other employee to any compensation under thisAct Ordinance under any other law for the time being in force and no such calmshall be entertained by any court, tribunal Ordinance other authority.

(4) The officers and otheremployees who have retired before the appointed day from the services of theCorporation and are entitled to any benefits, rights Ordinance privileges shallbe entitled to receive the same benefits, rights Ordinance privileges from theCompany.

(5) The trusts of the providentfund Ordinance the gratuity fund of the Corporation and any other bodiescreated for the welfare of officers Ordinance employees would continue todischarge their functions in the Company as was being done hitherto in theCorporation and any tax exemption granted to the provident fund, or thegratuity fund would continue to be applied to the Company.

(6) Notwithstanding anythingcontained in this Act Ordinance in the Companies Act, 1956 (1 of 1956)Ordinance in any other law for the time being in force Ordinance in theregulations of the Corporation, no Director of the Board, Chairman, ManagingDirector Ordinance any other person entitled to manage the whole Ordinancesubstantial part of the business and affairs of the Corporation shall beentitled to any compensation against the Corporation Ordinance the Company forthe loss of office Ordinance for the premature termination of any managemententered into by him with the Corporation.

9.Act 18 of 1891 to apply to thebooks of the Company: The Company shall be deemed to be bank for the purposes of theBanker’s Books Evidence Act, 1891.

10.Shares,bonds and debentures to be deemed to be approved securities: Notwithstanding anythingcontained in any other law for the time being in force, the shares, bonds anddebentures of the Company shall be deemed to be approved securities for thepurpose of the Indian Trusts Act, 1882, (2 of 1882) the Insurance Act, 1938 (4of 1938,) and the Banking Regulation Act, 1949.(10 of 1949)

11.Repealand saving of Act 15 of 1948: (1) On the appointed day, the Industrial Finance Corporation Act,1948 shall stand repealed.

(2) Notwithstanding the repealof the Industrial Finance Corporation Act, 1948, (15 of 1948) the Companyshall, so far as may be, comply with the provisions of sections 33,34,341981,35and 43 of the Act so repealed for any of the purposes related to the annualaccounts of the Corporation.

12.Repealand saving: (1) TheIndustrial Finance Corporation (Transfer of undertaking and Repeal) Ordinance,1993 (Ord.5 of 1993) is hereby repealed.

(2) Notwithstanding the repealof the Industrial Finance Corporation (Transfer of Undertaking and Repeal)Ordinance, 1993, (Ord.5 of 1993) anything done Ordinance any action taken underthe said Ordinance, shall be deemed to have been done Ordinance taken under thecorresponding provisions of this Act.

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