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INCHEK TYRES LIMITED AND NATIONAL RUBBER MANUFACTURERS LIMITED (NATIONALIZATION) ACT, 1984
17 of 1984
31st March, 1984
STATEMENT OF OBJECTS AND REASONS Act No. 17 of 1984.- The Inchek Tyres Limited commenced production of automobile tyres and tubes in Kakinara (West Bengal) in 1963. The undertaking started showing unfavorable operational results after 1970 and by June, 1977 the company had an accumulated loss of Rs. 8.9 crores as against the paid up capital of Rs. 3 crores. The management of the undertaking was taken under the Industries (Development and Regulation) Act, 1951, on the 13th April, 1978. The undertaking employs about 1,380 persons. 2. The National Rubber Manufacturers Limited, Calcutta, have two units. The unit at Tangra (Calcutta) produces cycle tyres, tubes and rubber goods like fan and V belts, transmission and conveyor belts, hoses, etc., and the other unit at Kalyani produces reclaimed rubber. In early 1970s, the production at both the units was affected due to labour trouble, erratic power supply, shortage of certain raw materials and poor quality of the finished products. By March, 1977, the company had an accumulated loss of Rs. 4.25 crores as against the paid up capital of Rs. 1.30 crores. The management of the Tangra unit was taken over by the Government under the Industries (Development and Regulation) Act, 1951, on the 23rd December, 1977, and that of the Kalyani unit on the 10th February, 1978. The company employs about 3,120 persons. 3. A common Board of Management was appointed as the "authorized person" under the Industries (Development and Regulation) Act, 1951, for both the undertakings. However, operational results of the undertaking continued to be unfavorable even after the take-over of management for various reasons. Rehabilitation of the undertakings required large investments for repair, replacement, modernization and change in product mix. It was not possible for Government to arrange for such investments without nationalization of the undertakings. The undertakings could not also generate adequate resources even for current operations for payment of wages. The accumulated losses soarded to Rs. 25.81 crores in the Inchek Tyres and to Rs. 18.74 crores in National Rubber Manufacturers by 31 st March, 1982. The revival of these undertakings, restructuring the capital base and the payment of past liabilities of these companies were, therefore, considered to be an immediate necessity. Among the various alternatives, nationalization of the undertakings of the companies was considered to be only acceptable alternative to achieve this process quickly, followed by a major renovation and modernisation programme involving substantial capital expenditure. Banks and financial institutions which had been nursing the undertakings found it no longer possible to finance its losses. The operations in the undertakings had come to a stand still. In view of these circumstances, it was considered necessary in the public interest to immediately acquire the undertakings of the Inchek Tyres Limited and the National Rubber Manufacturers Limited so that the undertakings could restart operations and the revival and modernization programmers may be implemented early to avoid further losses and deterioration in the assets of the undertakings. The nationalization of the undertakings would also save about 4,500 workers from unemployment. The Incheck Tyres Limited and National Rubber Manufacturers Limited (Nationalization) Ordinance, 1984 (4 of 1984), was accordingly promulgated by the President on the 14th February, 1984. The said Ordinance, apart from providing for the acquisition of the undertakings of the two companies and vesting the same in an existing or a new Government company, provided for payment of amounts to the companies for the acquisition, appointment of a Commissioner of Payments for the purpose of disbursing the amounts to the companies and other incidental and consequential matters. 4. The Bill seeks to replace the aforesaid Ordinance. -See Gaz. of India, 2-3-1984, II-S. 2, Ext., p. 16 (No. 8).
An Act to provide for the acquisition and transfer of the undertakings of the Inchek Tyres Limited and the National Rubber Manufacturers Limited, with a view to securing the proper management of such undertakings so as to subserve the interests of the general public by ensuring the continued manufacture, production and distribution of tyres, tubes and other rubber goods which are essential to the needs of the economy of the country and for matters connected therewith or incidental thereto. WHEREAS the Inchek Tyres Limited and National Rubber Manufacturers Limited had been engaged in the manufacture, production and distribution of articles mentioned in the First Schedule to the Industries (Development and Regulation) Act, 1951, namely, tyres, tubes and other rubber goods; AND WHEREAS the managements of the undertakings of the Inchek Tyres Limited and the management of the undertakings of the National Rubber Manufacturers Limited were taken over by the Central Government under the provisions of the Industries (Development and Regulation) Act, 1951; AND WHEREAS for the purpose of securing the optimum utilisation of the available facilities for the manufacture, production and distribution of tyres, tubes and other rubber goods by the undertakings of the two companies, investment of a large amount is necessary. AND WHEREAS it is necessary to acquire the undertakings of the Inchek Tyres Limited and the National Rubber Manufacturers Limited to enable the Central Government to have such investments made and to ensure that the interests of the general public are served by the continuance, by the undertakings of the companies of the manufacture, production and distribution of the aforesaid articles which are essential to the needs of the economy of the country; BE it enacted by Parliament in the Thirty-fifth Year of the Republic of India as follows :-
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be called The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalization) Act, 1984.
(2) It shall be deemed to have come into force on the 14th day of February, 1984.
SECTION 02: DEFINITION
- In this Act, unless the context otherwise requires,-
(a) "appointed day" means the 14th day of February, 1984;
(b) "Commissioner" means the Commissioner of Payments appointed under section 15-;
(c) "existing Government company" means a Government company which is carrying on business on the appointed day;
(d) "new Government company" means a Government company formed and registered on or after the appointed day;
(e) "notification" means a notification published in the Official Gazette;
(f) "prescribed" means prescribed by rules made under this Act;
(g) "specified date", in relation to any provision of this Act, means such date as the Central Government may, by notification, specify for the purposes of that provision, and different dates may be specified for different provisions of this Act;
(h) "two companies" means the Inchek Tyres Limited and the National Rubber Manufacturers Limited, being companies as defined in the Companies Act, 1956, and having their registered offices at "Leslie House", 19-Jawaharlal Nehru Road, Calcutta-700013;
(i) words and expressions used herein and not defined but defined in the Companies Act, 1956, shall have the meanings respectively assigned to them in that Act.
SECTION 03: TRANSFER TO AND VESTING IN THE CENTRAL GOVERNMENT OF THE UNDERTAKINGS OF THE TWO COMPANIES
On the appointed day, the undertakings of each of the two companies, and the right, title and interest of each of the two companies in relation to its undertakings, shall by virtue of this Act, stand transferred to, and shall vest in the Central Government.
SECTION 04: GENERAL EFFECT OF VESTING
(1) The undertakings of each of the two companies referred to in in section 3-shall be deemed to include all assets, rights, leaseholds, powers, authorities and privileges, and all property, movable and immovable including lands, buildings, workshops stores, instruments, machinery and equipment, cash balances, cash on hand, cheques demand drafts, 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 such company whether within or outside India, and all books of account, registers and all other documents of whatever nature relating thereto.
(2) All properties as 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 encumbrances affecting them, and any attachment, injunction decree or order of any court, tribunal or other authority restricting the use of such properties in any manner or appointing any receiver in respect of the whole or any part of such properties shall be deemed to have been withdrawn.
(3) Every mortgagee of any property which has vested under this Act in the Central Government and every person holding any charge, lien or other interest in, or in relation to, any such property shall give, within such time and in such manner as may be prescribed, an intimation to the Commissioner of such mortgage, 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 in relation to, any such property shall be entitled to claim, in accordance with his rights and interests, payment of the mortgage money- or other dues, in whole or in part, out of the amount specified, in relation to the company owning such property, in the First Schedule, and also out of the amounts referred to in section 9-, but no such mortgage, charge, lien or other interest shall be enforceable against any property which has vested in the Central Government.
(5) Any licence or other instrument granted to either of the two companies in relation to any undertaking which has vested in the Central Government under section 3-at any time before the appointed day and in force immediately before that day shall continue to be in force on and after such day in accordance with its tenor in relation to and for the purposes of such undertakings, and, on and from the date of vesting of such undertaking under section 6-in an existing Government company, or under section 7-in a new Government company, the existing, or new, Government company, as the case may be, shall be deemed to be substituted in such licence or other instrument as if such licence or other instrument had been granted to such existing, or new. Government company and such existing, or new. Government company shall hold-it for the remainder of the period for which the company to which it was granted 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 any property which has vested in the Central Government under section 3-, instituted or preferred by or against either of the two companies is pending, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason of the transfer of the undertakings of such company or of anything contained in this Act, but the suit, appeal or other proceeding may be continued, prosecuted or enforced by or against the Central Government, or where the undertakings of the two companies vest under section 6-orsection 7-in an existing or a new. Government company, by or against such Government company.
SECTION 05: COMPANIES TO BE LIABLE FOR CERTAIN PRIOR LIABILITIES
(1) Every liability, other than the liability specified in sub-section (2), of each of the two companies in respect of any period prior to the appointed day, shall be the liability of the concerned company and shall be enforceable against it and not against the Central Government, or where the undertakings of the two companies vest in an existing, or a new Government company, against such Government company.
(2) Any liability arising in respect of materials supplied to either of the two companies after the management of its undertakings had been taken over by the Central Government, shall, on and from the appointed day, be the liability of the Central Government or of the existing, or new. Government company aforesaid, and shall be discharged by that Government or, as the case may be, the existing, or new Government company, as and when repayment for such supplies becomes due and payable.
(3) For the removal of doubts, it is hereby declared that -
(a) save as otherwise expressly provided in this section or in any other provision of this Act, no liability, other than the liability specified in subsection (2), of either of the two companies in relation to its undertakings in respect of any period prior to the appointed day shall be enforceable against the Central Government, or, where the undertakings of the two companies vest
in an existing or a new. Government company, against such Government company.
(b) no award, decree or order of any court, tribunal or other authority in relation to the undertakings of either of the two companies, passed on or after the appointed day, in respect of any matter, claim or dispute, not being a matter, claim or dispute in relation to any matter referred to in sub-section (2), which arose before that day, shall be enforceable against the Central
Government, or where the undertakings of the two companies vest in an existing or a new, Government company against such Government company;
(c) no liability incurred by either of the two companies before the appointed day, for the contravention of any provision of law for the time being in force, shall be enforceable against the Central Government, or, where the
Undertakings of the two companies vest in an existing, or a new, Government company, against such Government company.
SECTION 06: POWER OF CENTRAL GOVERNMENT TO DIRECT VESTING OF THE UNDERTAKINGS OF THE TWO COMPANIES IN AN EXISTING GOVERNMENT COMPANY
(1) Not withstanding anything contained in sections 3-and4-, and subject to the provisions of section 7-, the Central Government may, if it is satisfied that an existing Government company is willing to comply, or has complied, with such terms and conditions as that Government may think fit to impose, direct, by notification, that the undertakings of each of the two companies and the right, title and interest of each of the two companies in relation to its undertakings which have vested in the Central Government under Section 3-, shall, instead of continuing to vest in the Central Government, vest in that existing Government company either on that date of the notification or on such earlier or later date (not being a date earlier than the appointed day) as may be specified in the notification.
(2) Where the right, title and interest of the two companies in relation to their undertakings vest, under sub-section (1), in an existing Government company, that Government company shall, on and from the date of such vesting, be deemed to have become and, until the transfer of the undertakings, by virtue of the provisions of section 7-, to a new Government company, be deemed to be the owner in relation to such undertakings, and the rights and liabilities of the Central Government in relation to such undertakings shall, on and from the date of such vesting be deemed to have become, and, until the date of such transfer, be deemed to be the rights and liabilities, respectively, of that existing Government company.
SECTION 07: TRANSFER OF THE UNERTAKINGS OF THE TWO COMPANIES FROM AN EXISTING GOVERNMENT COMPANY TO A NEW GOVERNMENT COMPANY
(1) Notwithstanding anything contained in sections 3-and4-, where the undertakings of each of the two companies have been directed, under sub-section (1) of section 6-to vest in an existing Government company, the Central Government may, if it is satisfied that a new Government company is willing to comply, or has complied, with such terms and conditions as that Government may think fit to impose, declare, by notification, that the undertakings of each of the two companies and the right, title and interest of each of the two companies in relation to its undertakings be transferred to that new Government company, and on the issue of such declaration, the right, title and interest of each of the two companies in relation to its undertakings which had been directed under sub-section
(1) of section 6-to vest in an existing Government company, shall, instead of continuing to vest in _that existing Government company, vest in that new Government company with effect from the date on which such declaration is made.
(2) Where the right, title and interest of the existing Government company in relation to the undertakings of the two companies vest, under sub-section (1), in a new Government company, that Government company shall, on and from the date of such vesting be deemed to have become the owner in relation to such undertakings and the rights and liabilities of the existing Government company in relation to such undertakings, shall, on and from the date of such vesting be deemed to have become the rights and liabilities, respectively, of that new Government company.
SECTION 08: PAYMENT OF AMOUNT
For the transfer to, and vesting in, the Central Government under section 3-of the undertakings of each of the two companies, and the right, title and interest of each of the two companies in relation to its undertakings, there shall be paid by the Central Government and in the manner specified in Chapter VI, an amount equal to the amount specified against the name of such company in the First Schedule.
SECTION 09: PAYMENT OF FURTHER AMOUNTS
( 1 ) For the deprivation of the two companies of the management of their undertakings during the period commencing on the date on which the undertakings of each such company was taken over in pursuance of the orders made by the Central Government under the provisions of the Industries (Development and Regulation) Act, 1951 'and ending on the appointed day, there shall be paid by the Central Government to each of the companies in cash, an amount of rupees fifty thousand.
(2) The amount referred to in section 8-and the amount specified in sub-section (1) shall carry simple interest at the rate of four per cent per annum for the period commencing on the appointed day and ending on the date on which payment of such amounts is made by the Central Government to the Commissioner.
(3) The amount referred to in sub section (1) and the amount determined in accordance with the porovisions of sub-section (2) shall be given by the Central Government to the two companies in addition to the amount specified in section 8-.
(4) For the removal of doubts, it is hereby declared that the liabilities of either of the two companies in relation to its undertakings which have vested in the Central Government under section 3-, shall be discharged from the amount referred to in section 8-, and also from the amount specified in sub-section (1) and the amount determined under sub-section (2), in accordance with the rights and interests of the creditors of the two companies.
SECTION 10: MANAGEMENT, ETC., OF THE UNDERTAKINGS OF THE TWO COMPANIES
The general superintendence, direction, control and management of the affairs and business of the undertakings of each of the two companies, the right, title and interest in relation to which have vested in the Central Government under section 3-shall,-
(a) where a direction has been given by the Central Government under sub section (1) of section 6-, vest on and from the date specified in such direction in the existing Government company specified therein, or
(b) where a declaration has been made under sub-section (1) of section 7-, vest on and from the date of such declaration, in the new Government company specified therein, and thereupon the existing, or new Government company so specified, shall be entitled to exercise, to the exclusion of all other persons, all such powers and do all such things as either, or both, of the two companies, is or are, authorized to exercise and do in relation to its or their undertakings.
SECTION 11: DUTY OF PERSONS IN CHARGE OF MANAGEMENT OF UNDERTAKINGS OF THE TWO COMPANIES TO DELIVER ALL ASSETS, ETC
(1) On the vesting of the management of the undertakings of the two companies in an existing, or a new. Government company, all persons in charge of the management of the undertakings of either of the two companies immediately before such vesting shall be bound to deliver to such Government company, all assets, and books of account, registers and other documents in their custody relating to the undertakings.
(2) The Central Government may issue such directions as it may deem desirable in the circumstances of the case to the existing, or new. Government company and such Government Company may also, if it is considered necessary so to do, apply to the Central Government at any time for instructions as to the manner in which the management of the undertakings of the two companies shall be conducted or in relation to any other matter arising in the course of such management.
SECTION 12: DUTY OF PERSONS TO ACCOUNT FOR ASSETS, ETC., IN THEIR POSSESSION
(1) Any person who has) on the appointed day, in his possession or under his control any assets, books documents or other papers relating to the undertakings owned by either of the two companies, which have vested in the Central Government or in an existing, or a new. Government company under this Act, shall be liable to account for the said assets, books documents and other papers to the Central Government or the existing, or new Government company, as the case may be, and shall deliver them to, the Central Government or the existing, or new, Government company or to such person or persons as the Central Government or the existing, or new, Government company may specify in this behalf.
(2) The Central Government or the Government company aforesaid may take or cause to be taken, all necessary steps for securing possession of the undertakings of the two companies which have vested in the Central Government or the Government company under this Act:
(3) The two companies shall, within such period as the Central Government may allow in this behalf, furnish to that Government a complete inventory of all their properties and assets, as on the appointed day, pertaining to the undertakings which have vested in the Central Government under section 3-, and for this purpose, the Central Government or the Government Company aforesaid shall afford to the two companies all reasonable facilities.
SECTION 13: CONTINUANCE OF EMPLOYEES
(1) Every person who has been immediately before the appointed-day employed in any undertaking of either of the two companies shall become,-
(a) on and from the appointed day, an employee of the Central Government, and
(b) where the undertakings of the two companies are directed, under section 6-or under section 7-, to vest, in an existing, or a new. Government company, an employee of such Government company on and from the date of such vesting. and shall hold office or service under the Central Government or the existing or new, Government company, as the case may be with the rights and privileges as to pension, gratuity and other matters admissible to him immediately before the appointed day, as modified by the Memorandum of Settlement signed by the representatives of the management and the employees of each of the two companies on the 10th day of February, 1984 and shall continue to do so unless and until his employment under the Central Government or the existing, or new, Government company, as the case may be, is duly terminated or until his remuneration and other conditions of service are duly altered by the Central Government, or the existing or new Government company, as the case may be.
(2) 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 officer or other person employed in any undertaking of either of the two companies, to the Central Government or the existing, or new, Government company, shall not entitle such officer or other employee to any compensation under this Act or any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority.
SECTION 14: PROVIDENT FUND AND OTHER FUNDS
(1) Where either of the two companies has established a provident fund superannuation, welfare or other fund for the benefit of the persons employed in any of its undertakings, the money relatable to the officers or other employees whose services have become transferred by or under this Act to the Central Government or in existing, or a new Government company shall, out of the moneys standing on the appointed day, to the credit of such provident fund, superannuation, welfare or other fund, stand transferred to, and shall vest in the Central Government or existing, or new, Government company, as the case may be.
(2) The moneys which stand transferred under sub-section (1) to the Central Government or the existing, or new Government company, as the case may be, shall be dealt with by that Government or the existing, or new, Government company in such manner as may be prescribed.
SECTION 15: APPOINTMENT OF COMMISSIONER OF PAYMENTS
(1) The Central Government shall for the purpose of disbursing the amounts payable under sections 8-and9-to each of the two companies by notification, appoint a Commissioner of Payments
(2) The Central Government may appoint such other persons as it may think fit to assist the Commissioner and thereupon the Commissioner may authorize one or more of such persons also to exercise all or any other powers exercisable by him under this Act and different persons may be authorized to exercise different powers.
(3) Any person authorized by the Commissioner to exercise any of the powers exercisable by the Commissioner may exercise those powers in the same manner and with the same effect as if they have been conferred on that person directly by this Act and not by way of authorisation.
(4) The salaries and allowances of the Commissioner and other persons appointed under this section shall be defrayed out of the Consolidated Fund of India.
SECTION 16: PAYMENT BY CENTRAL GOVERNMENT TO THE COMMISSIONER
(1) The Central Government shall, within thirty days from the specified date pay in cash to the Commissioner, for payment to each of the two companies,-
(a) an amount equal to the amount specified against the name of such company in the First Schedule; and
(b) an amount equal to the amount payable to each of the two companies under section 9-.
(2) A deposit account shall be opened by the Central Government in favour the Commissioner in the Public Account of India and every amount paid under this Act to the Commissioner shall be deposited by him to the credit of the said deposit account and the said deposit account shall be operated by the Commissioner.
(3) Separate records shall be maintained by the Commissioner in respect of the undertakings of each of the two companies in relation to which payments have been made to him under this Act
(4) Interest accruing on the amount standing to the credit of the deposit account referred to in sub-section (2) shall enure to the benefit of the two companies.
SECTION 17: CERTAIN POWERS OF CENTRAL GOVERNMENT OR EXISTING, OR NEW, GOVERNMENT COMPANY
(1) The Central Government or the existing, or new; Government company, as the case may be, shall be entitled to receive up to the specified date, to the exclusion of all other persons, any money due to either of the two companies in relation to its undertakings which have vested in the Central Government or the existing, or new, Government company, as the case may be, and realised after the appointed day notwithstanding that the realisation pertains to a period prior to the appointed day.
(2) The Central Government, or the existing, or new Government company, as the case may be, may make a claim to the Commissioner with regard to every payment made by it after the appointed day, for discharging any liability of either of the two companies, not being any liability specified in sub-section (2) of section 5-, in relation to any period prior to the appointed day, and every such claim shall have priority, in accordance with the priorities attaching, under this Act, to the matter in relation to which such liability has been discharged by the Central Government or the existing, or new Government company.
(3) Save as otherwise provided in this Act, the liabilities of either of the two companies in respect of any transaction prior to the appointed day which have not been discharged on or before the specified date shall be the liabilities of the respective company.
SECTION 18: CLAIMS TO BE MADE TO THE COMMISSIONER
Every person having a claim against either of the two companies with regard to any of the matters specified in the Second Schedule pertaining to any undertakings owned by it, shall prefer such claim before the Commissioner within thirty days from the specified date1 Provided that if the Commissioner is satisfied that the claimant was prevented by sufficient cause from preferring the claim within the said period of thirty days, he may entertain the claim within a further period of thirty days but not thereafter.
SECTION 19: PRIORITY OF CLAIMS
- The claims arising out of the matters specified in the Second Schedule shall have priorities in accordance with the following principles, namely:-
(a) Category I shall have precedence over all other categories and Category II shall have precedence over Category III, and so on;
(b) the claims specified in each of the categories shall rank equally and be paid in full, but if the amount is insufficient to meet such claims in full, they shall abate in equal proportions and be paid accordingly, and
(c) the question of discharging any liability with regard to a matter specified in a lower category shall arise only if a surplus is left after meeting all the liabilities specified in the immediately higher category.
SECTION 20: EXAMINATION OF CLAIMS
(1) On receipt of the claims made under section 18-, the Commissioner shall arrange the claims in the order of priorities specified in the Second Schedule and examine the same in accordance with such order.
(2) If, on examination of the claims, the Commissioner is of opinion that the amount paid to him under this Act 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 lower category.
SECTION 21: ADMISSION OR REJECTION OF CLAIMS
(1) After examining the claims with reference to the priorities specified in the Second Schedule, the Commissioner shall fix a date on or before which every claimant shall file the proof of his claim.
(2) Not less than fourteen day's notice of the date so fixed shall be given by advertisement in one issue of any daily newspaper in the English language having circulation in the major part of the country and in one issue of any daily newspaper in such regional language as the Commissioner may consider suitable, and every such notice shall call upon the claimant to file the proof of his claim with the Commissioner within the period specified in the advertisement.
(3) Every claimant who fails to file the proof of his claim within the period specified by the Commissioner shall be excluded from the disbursement made by the Commissioner.
(4) The Commissioner shall, after such investigation as may, in his opinion, be necessary and after giving the concerned company an opportunity of refuting the claim and after giving the claimant a reasonable opportunity of being heard, admit or reject by order in writing the claim in whole or in part.
(5) The Commissioner shall have the power to regulate his own procedure in all matters arising out of the discharge of his functions, including the place or places at which he may hold his sittings and shall, for the purpose of making any investigation under this Act, 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) the summoning and enforcing the attendance of any witness and examining him on oath;
(b) the discovery and production of any document or other material object producible as evidence;
(c) the reception of evidence on affidavits;
(d) the issuing of any commission for the examination of witnesses.
(6) Any investigation before the Commissioner shall be deemed to be a judicial proceeding within the meaning of sections 193-and228 of the Indian Penal Code-and the Commissioner shall be deemed to be a civil court for the purposes of section 195-andChapter 26 of the Code of Criminal Procedure, 1973.-
(7) A claimant who is dissatisfied with the decision of the Commissioner may prefer an appeal against such decision to the principal civil court of original jurisdiction within the local limits of whose jurisdiction the registered office of the concerned company is situated : Provided that where a person who is a Judge of a High Court is appointed to be the Commissioner, such appeal shall lie to the High Court exercising jurisdiction over the place in which the registered office of the concerned company is situated and such appeal shall be heard and disposed of by not less than two judges of that High Court.
SECTION 22: DISBURSEMENT OF MONEY BY COMMISSIONER
After admitting a claim under this Act, the amount due in respect of such claim shall be paid by the Commissioner to the person or persons to whom such amount is due, and on such payment, the liability of each of the two companies in respect of such claim shall stand discharged.
SECTION 23: DISBURSEMENT OF AMOUNTS TO THE COMPANIES
(1) If, out of the moneys paid to him in relation to the undertakings of either of the two companies, there is a balance left after meeting the liabilities as specified in the Second Schedule, the Commissioner shall disburse such balance to the concerned company.
(2) Where the possession of any machinery, equipment or other property has vested in the Central Government or the existing, or new Government company under this Act, but such machinery, equipment or other property does not belong to either of the two companies, it shall be lawful for the Central Government or the existing, or new,' Government company, as the case may be to continue to possess such machinery or equipment or other property on the same terms and conditions under which they were possessed by either of the two companies immediately before the appointed day.
SECTION 24: UNDISBURSED OR UNCLAIMED AMOUNT TO BE DEPOSITED WITH THE GENERAL REVENUE ACCOUNT
Any money paid to the Commissioner which remains undisbursed or unclaimed on the date immediately preceding the date on which the office of the Commissioner is finally wound up, shall be transferred by the Commissioner, before his office is finally wound up, to the general revenue account of the Central Government; but a claim to any money so transferred may be preferred, to the Central Government by the person entitled to such payment and shall be dealt with as if such transfer had not been made, and the order, if any, for the payment of the claim being treated as an order for the refund of revenue.
SECTION 25: ACT TO HAVE OVERRIDING EFFECT
The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law, other than this Act, or in any decree or order of any court, tribunal or other authority.
SECTION 26: CONTRACTS TO CEASE TO HAVE EFFECT UNLESS RATIFIED BY THE CENTRAL GOVERNMENT OR EXISTING, OR NEW GOVERNMENT COMPANY
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