APPENDIX

APPENDIX

TEXT OF REMAINING PROVISIONS OF ALLIED ACTS REFERRED TO IN INCOME-TAX ACT

Section 5(c) of Banking Regulation Act, 1949

Interpretation

5.In this Act, unless there is anything repugnant in this subject or context,—

Explanation.—Any company which is engaged in the manufacture of goods or carries on any trade and which accepts deposits of money from the public merely for the purpose of financing its business as such manufacturer or trader shall not be deemed to transact the business of banking within the meaning of this clause;

Section 45 of Banking Regulation Act, 1949

Power of Reserve Bank to apply to Central Government for suspension of business by a banking company and to prepare scheme of reconstitution or amalgamation

45.(1) Notwithstanding anything contained in the foregoing provisions of this Part or in any other law or any agreement or other instrument, for the time being in force, where it appears to the Reserve Bank that there is good reason so to do, the Reserve Bank may apply to the Central Government for an order of moratorium in respect of a banking company.

(2) The Central Government, after considering the application made by the Reserve Bank under sub-section (1), may make an order of moratorium staying the commencement or continuance of all actions and proceedings against the company for a fixed period of time on such terms and conditions as it thinks fit and proper and may from time to time extend the period so however that the total period of moratorium shall not exceed six months.

(3) Except as otherwise provided by any directions given by the Central Government in the order made by it under sub-section (2) or at any time thereafter, the banking company shall not during the period of moratorium make any payment to any depositors or discharge any liabilities or obligations to any other creditors.

(4) During the period of moratorium, if the Reserve Bank is satisfied that—

(a) in the public interest; or

(b) in the interests of the depositors; or

(d) in the interests of the banking system of the country as a whole, —

it is necessary so to do, the Reserve Bank may prepare a scheme—

(i) for the reconstruction of the banking company, or

(ii) for the amalgamation of the banking company with any other banking institution (in this section referred to as “the transferee bank”).

(5) The scheme aforesaid may contain provisions for all or any of the following matters, namely :—

(a) the constitution, name and registered office, the capital, assets, powers, rights, interests, authorities and privileges, the liabilities, duties and obligations, of the banking company on its reconstruction or, as the case may be, of the transferee bank;

(b) in the case of amalgamation of the banking company, the transfer to the transferee bank of the business, properties, assets and liabilities of the banking company on such terms and conditions as may be specified in the scheme;

(c) any change in the Board of Directors, or the appointment of a new Board of Directors, of the banking company on its reconstruction or, as the case may be, of the transferee bank and the authority by whom, the manner in which, and the other terms and conditions on which, such change or appointment shall be made and in the case of appointment of a new Board of Directors or of any Director, the period for which such appointment shall be made;

(d) the alteration of the memorandum and articles of association of the banking company on its reconstruction or, as the case may be, of the transferee bank for the purpose of altering the capital thereof or for such other purposes as may be necessary to give effect to the reconstruction or amalgamation;

(e) subject to the provisions of the scheme, the continuation by or against the banking company on its reconstruction or, as the case may be, the transferee bank, of any actions or proceedings pending against the banking company immediately before the date of the order of moratorium;

(f) the reduction of the interest or rights which the members, depositors and other creditors have in or against the banking company before its reconstruction or amalgamation to such extent as the Reserve Bank considers necessary in the public interest or in the interests of the members, depositors and other creditors or for the maintenance of the business of the banking company;

(g) the payment in cash or otherwise to depositors and other creditors in full satisfaction of their claim—

(i) in respect of their interest or rights in or against the banking company before its reconstruction or amalgamation; or

(ii) where their interest or rights aforesaid in or against the banking company has or have been reduced under clause (f), in respect of such interest or rights as so reduced;

(h) the allotment to the members of the banking company for shares held by them therein before its reconstruction or amalgamation [whether their interest in such shares has been reduced under clause (f) or not], of shares in the banking company on its reconstruction or, as the case may be, in the transferee bank and where any members claim payment in cash and not allotment of shares, or where it is not possible to allot shares to any members, the payment in cash to those members in full satisfaction of their claim—

(i) in respect of their interest in shares in the banking company before its reconstruction or amalgamation; or

(ii) where such interest has been reduced under clause (f), in respect of their interest in shares as so reduced;

(i) the continuance of the services of all the employees of the banking company (excepting such of them as not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947) are specifically mentioned in the scheme) in the banking company itself on its reconstruction or, as the case may be, in the transferee bank at the same remuneration and on the same terms and conditions of service, which they were getting or, as the case may be, by which they were being governed, immediately before the date of the order of moratorium :

Provided that the scheme shall contain a provision that—

(i) the banking company shall pay or grant not later than the expiry of the period of three years from the date on which the scheme is sanctioned by the Central Government, to the said employees the same remuneration and the same terms and conditions of service as are, at the time of such payment or grant, applicable to employees of corresponding rank or status of a comparable banking company to be determined for this purpose by the Reserve Bank (whose determination in this respect shall be final);

(ii) the transferee bank shall pay or grant not later than the expiry of the aforesaid period of three years, to the said employees the same remuneration and the same terms and conditions of service as are, at the time of such payment or grant, applicable to the other employees of corresponding rank or status of the transferee bank subject to the qualifications and experience of the said employees being the same as or equivalent to those of such other employees of the transferee bank :

Provided further that if in any case under clause (ii) of the first proviso any doubt or difference arises as to whether the qualification and experience of any of the said employees are the same as or equivalent to the qualifications and experience of the other employees of corresponding rank or status of the transferee bank, the doubt or difference shall be referred, before the expiry of a period of three years from the date of the payment or grant mentioned in that clause, to the Reserve Bank whose decision thereon shall be final;

(j) notwithstanding anything contained in clause (i) where any of the employees of the banking company not being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947) are specifically mentioned in the scheme under clause (i), or where any employees of the banking company have by notice in writing given to the banking company or, as the case may be, the transferee bank at any time before the expiry of one month next following the date on which the scheme is sanctioned by the Central Government, intimated their intention of not becoming employees of the banking company on its reconstruction or, as the case may be, of the transferee bank, the payment to such employees of compensation, if any, to which they are entitled under the Industrial Disputes Act, 1947 (14 of 1947), and such pension, gratuity, provident fund and other retirement benefits ordinarily admissible to them under the rules or authorisations of the banking company immediately before the date of the order of moratorium;

(k) any other terms and conditions for the reconstruction or amalgamation of the banking company;

(l) such incidental, consequential and supplemental matters as are necessary to secure that the reconstruction or amalgamation shall be fully and effectively carried out.

(6)(a) A copy of the scheme prepared by the Reserve Bank shall be sent in draft to the banking company and also to be transferee bank and any other banking company concerned in the amalgamation, for suggestions and objections, if any, within such period as the Reserve Bank may specify for this purpose;

(b) The Reserve Bank may make such modifications, if any, in the draft scheme as it may consider necessary in the light of the suggestions and objections received from the banking company and also from the transferee bank, and any other banking company concerned in the amalgamation and from any members, depositors or other creditors of each of those companies and the transferee bank.

(7) The scheme shall thereafter be placed before the Central Government for its sanction and the Central Government may sanction the scheme without any modifications or with such modifications as it may consider necessary; and the scheme as sanctioned by the Central Government shall come into force on such date as the Central Government may specify in this behalf:

Provided that different dates may be specified for different provisions of the scheme.

(7A) The sanction accorded by the Central Government under sub-section (7), whether before or after the commencement of section 21 of the Banking Laws (Miscellaneous Provisions) Act, 1963 (55 of 1963), shall be conclusive evidence that all the requirements of this section relating to reconstruction, or, as the case may be, amalgamation have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the Central Government to be a true copy thereof, shall, in all legal proceedings (whether in appeal or otherwise and whether instituted before or after the commencement of the said section 21), be admitted as evidence to the same extent as the original scheme.

(8) On and from the date of the coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on the banking company or, as the case may be, on the transferee bank and any other banking company concerned in the amalgamation and also on all the members, depositors and other creditors and employees of each of those companies and of the transferee bank, and on any other person having any right or liability in relation to any of those companies or the transferee bank including the trustees or other persons managing, or connected in any other manner with, any provident fund or other fund maintained by any of those companies or the transferee bank.

(9) On and from the date of the coming into operation of, or as the case may be, the date specified in this behalf in, the scheme, the properties and assets of the banking company shall, by virtue of and to the extent provided in the scheme, stand transferred to, and vest in, and the liabilities of the banking company shall, by virtue of and to the extent provided in the scheme, stand transferred to, and become the liabilities of, the transferee bank.

(10) If any difficulty arises in giving effect to the provisions of the scheme, the Central Government may by order do anything not inconsistent with such provisions which appears to it necessary or expedient for the purpose of removing the difficulty.

(11) Copies of the scheme or of the any order made under sub-section (10) shall be laid before both Houses of Parliament, as soon as may be, after the scheme has been sanctioned by the Central Government, or, as the case may be, the order has been made.

(12) Where the scheme is a scheme for amalgamation of the banking company, any business acquired by the transferee bank under the scheme or under any provision thereof shall, after the coming into operation of the scheme or such provision, be carried on by the transferee bank in accordance with the law governing the transferee bank, subject to such modifications in that law or such exemptions of the transferee bank from the operation of any provisions thereof as the Central Government on the recommendation of the Reserve Bank may, by notification in the Official Gazette, make for the purpose of giving full effect to the scheme :

Provided that no such modification or exemption shall be made so as to have effect for a period of more than seven years from the date of the acquisition of such business.

(13) Nothing in this section shall be deemed to prevent the amalgamation with a banking institution by a single scheme of several banking companies in respect of each of which an order of moratorium has been made under this section.

(14) The provisions of this section and of any scheme made under it shall have effect notwithstanding anything to the contrary contained in any other provisions of this Act or in any other law or any agreement, award or other instrument for the time being in force.

(15) In this section, “banking institution” means any banking company and includes the State Bank of India or a subsidiary bank or a corresponding new bank.

Explanation.—References in this section to the terms and conditions of service as applicable to an employee shall not be construed as extending to the rank and status of such employee.

Section 3 of Cantonments Act, 1924

Definition of cantonments.

3.(1) The Central Government may, by notification in the Official Gazette, declare any place or places in which any part of the Forces is quartered or which, being in the vicinity of any such place or places, is or are required for the service of such forces to be a cantonment for the purpose of this Act and of all other enactments for the time being in force, and may, by a like notification, declare that any cantonment shall cease to be a cantonment.

(2) The Central Government may, by a like notification, define the limits of any cantonment for the aforesaid purposes.

(3) When any place is declared a cantonment for the first time, the Central Government may, until a Board is constituted in accordance with the provisions of this Act, by order make any provision which appears necessary to it either for the administration of the cantonment or for the constitution of the Board.

(4) The Central Government may, by notification in the Official Gazette, direct that in any place declared a cantonment under sub-section (1) the provisions of any enactment relating to local self-government other than this Act shall have effect only to such extent or subject to such modifications, or that any authority constituted under any such enactment shall exercise authority only to such extent, as may be specified in the notification.

SECTION 2 OF COMPANIES ACT, 1956

Definitions.

2. In this Act, unless the context otherwise requires,—

(13) “director” includes any person occupying the position of director, by whatever name called ;

(24) “manager” means an individual (not being the managing agent) who, subject to the superintendence, control and direction of the Board of directors, has the management of the whole, or substantially the whole, of the affairs of a company, and includes a director or any other person occupying the position of a manager, by whatever name called, and whether under a contract of service or not ;

SECTION 3 OF COMPANIES ACT, 1956

Definitions of “company”, “existing company”, “private company” and “public company”.

3. (1) In this Act, unless the context otherwise requires, the expressions “company”, “existing company”, “private company” and “public company”, shall, subject to the provisions of sub-section (2), have the meanings specified below :—

(i) “company” means a company formed and registered under this Act or an existing company as defined in clause (ii) ;

(ii) “existing company” means a company formed and registered under any of the previous companies laws specified below :—

(a) any Act or Acts relating to companies in force before the Indian Companies Act, 1866 (10 of 1866) and repealed by that Act ;

(b) the Indian Companies Act, 1866 (10 of 1866) ;

(d) the Indian Companies Act, 1913 (7 of 1913) ;

(e) the Registration of Transferred Companies Ordinance, 1942 (54 of 1942) ;

(f) any law corresponding to any of the Acts or the Ordinance aforesaid and in force—

(1) in the merged territories or in a Part B State (other than the State of Jammu and Kashmir), or any part thereof, before the extension thereto of the Indian Companies Act, 1913 (7 of 1913) ; or

(2) in the State of Jammu and Kashmir, or any part thereof, before the commencement of the Jammu and Kashmir (Extension of Laws) Act, 1956, in so far as banking, insurance and financial corporations are concerned, and before the commencement of the Central Laws (Extension to Jammu and Kashmir) Act, 1968, in so far as other corporations are concerned ; and

(g) the Portuguese Commercial Code, in so far as it relates to “sociedades anonimas” ;

(iii) “private company” means a company which has a minimum paid-up capital of one lakh rupees or such higher paid-up capital as may be prescribed, and by its articles,—

(a) restricts the right to transfer its shares, if any ;

(b) limits the number of its members to fifty not including—

(i) persons who are in the employment of the company ; and

(ii) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased ; and

(d) prohibits any invitation or acceptance of deposits from persons other than its members, directors or their relatives :

Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this definition, be treated as a single member ;

(iv) “public company” means a company which—

(a) is not a private company ;

(b) has a minimum paid-up capital of five lakh rupees or such higher paid-up capital, as may be prescribed ;

(2) Unless the context otherwise requires, the following companies shall not be included within the scope of any of the expressions defined in clauses (i) to (iv) of sub-section (1), and such companies shall be deemed, for the purposes of this Act, to have been formed and registered outside India :—

(a) a company the registered office whereof is in Burma, Aden or Pakistan and which immediately before the separation of that country from India was a company as defined in clause (i) of sub-section (1) ;

(b) **

SECTION 4 OF COMPANIES ACT, 1956

Meaning of “holding company” and “subsidiary”.

4. (1) For the purposes of this Act, a company shall, subject to the provisions of sub-section (3), be deemed to be a subsidiary of another if, but only if,—

(a) that other controls the composition of its Board of directors; or

(b) that other—

(i) where the first-mentioned company is an existing company in respect of which the holders of preference shares issued before the commencement of this Act have the same voting rights in all respects as the holders of equity shares, exercises or controls more than half of the total voting power of such company;

(ii) where the first-mentioned company is any other company, holds more than half in nominal value of its equity share capital; or

Illustration

Company B is a subsidiary of Company A, and Company C is a subsidiary of Company B. Company C is a subsidiary of Company A, by virtue of clause (c) above. If Company D is a subsidiary of Company C, Company D will be a subsidiary of Company B and consequently also of Company A, by virtue of clause (c) above, and so on.

(2) For the purposes of sub-section (1), the composition of a company’s Board of directors shall be deemed to be controlled by another company if, but only if, that other company by the exercise of some power exercisable by it at its discretion without the consent or concurrence of any other person, can appoint or remove the holders of all or a majority of the directorships; but for the purposes of this provision that other company shall be deemed to have power to appoint to a directorship with respect to which any of the following conditions is satisfied, that is to say—

(a) that a person cannot be appointed thereto without the exercise in his favour by that other company of such a power as aforesaid;

(b) that a person’s appointment thereto follows necessarily from his appointment as director or manager of, or to any other office or employment in, that other company; or

(3) In determining whether one company is a subsidiary of another—

(a) any shares held or power exercisable by that other company in a fiduciary capacity shall be treated as not held or exercisable by it;

(b) subject to the provisions of clauses (c) and (d), any shares held or power exercisable—

(i) by any person as a nominee for that other company (except where that other is concerned only in a fiduciary capacity); or

(ii) by, or by a nominee for, a subsidiary of that other company, not being a subsidiary which is concerned only in a fiduciary capacity;

shall be treated as held or exercisable by that other company;

(c) any shares held or power exercisable by any person by virtue of the provisions of any debentures of the first-mentioned company or of a trust deed for securing any issue of such debentures shall be disregarded;

(d) any shares held or power exercisable by, or by a nominee for, that other or its subsidiary [not being held or exercisable as mentioned in clause (c)] shall be treated as not held or exercisable by that other, if the ordinary business of that other or its subsidiary, as the case may be, includes the lending of money and the shares are held or the power is exercisable as aforesaid by way of security only for the purposes of a transaction entered into in the ordinary course of that business.

(4) For the purposes of this Act, a company shall be deemed to be the holding company of another if, but only if, that other is its subsidiary.

(5) In this section, the expression “company” includes any body corporate, and the expression “equity share capital” has the same meaning as in sub-section (2) of section 85.

(6) In the case of a body corporate which is incorporated in a country outside India, a subsidiary or holding company of the body corporate under the law of such country shall be deemed to be a subsidiary or holding company of the body corporate within the meaning and for the purposes of this Act also, whether the requirements of this section are fulfilled or not.

(7) A private company, being a subsidiary of a body corporate incorporated outside India, which, if incorporated in India, would be a public company within the meaning of this Act, shall be deemed for the purposes of this Act to be a subsidiary of a public company if the entire share capital in that private company is not held by that body corporate whether alone or together with one or more other bodies corporate incorporated outside India.

SECTION 4A OF COMPANIES ACT, 1956

Public financial institutions.

4A. (1) Each of the financial institutions specified in this sub-section shall be regarded, for the purposes of this Act, as a public financial institution, namely :—

(i) the Industrial Credit and Investment Corporation of India Limited, a company formed and registered under the Indian Companies Act, 1913 (7 of 1913) ;

(ii) the Industrial Finance Corporation of India, established under section 3 of the Industrial Finance Corporation Act, 1948 (15 of 1948) ;

(iii) the Industrial Development Bank of India, established under section 3 of the Industrial Development Bank of India Act, 1964 (18 of 1964) ;

(iv) the Life Insurance Corporation of India, established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956) ;

(v) the Unit Trust of India, established under section 3 of the Unit Trust of India Act, 1963 (52 of 1963);

(vi) the infrastructure Development Finance Company Limited, a company formed and registered under this Act;

(vii) [***]

(2) Subject to the provisions of sub-section (1), the Central Government may, by notification in the Official Gazette, specify such other institution as it may think fit to be a public financial institution :

Provided that no institution shall be so specified unless—

(i) it has been established or constituted by or under any Central Act, or

(ii) not less than fifty-one per cent of the paid-up share capital of such institution is held or controlled by the Central Government.

NOTIFIED INSTITUTIONS UNDER SECTION 4A(2) OF COMPANIES ACT, 1956

In exercise of the powers conferred by sub-section (2) of section 4A of the Companies Act, 1956 (1 of 1956), the Central Government hereby specifies the following institutions to be public financial institutions, namely :

(1) The Industrial Reconstruction Corporation of India established under the Industrial Reconstruction Bank of India Act, 1984 (62 of 1984); (2) The General Insurance Corporation of India established under the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972); (3) The National Insurance Company Limited, formed and registered under the Companies Act, 1956 (1 of 1956); (4) The New India Assurance Company Limited, formed and registered under the Companies Act, 1956 (1 of 1956); (5) The Oriental Fire and General Insurance Company Limited, formed and registered under the Companies Act, 1956 (1 of 1956); (6) The United Fire and General Insurance Company Limited, formed and registered under the Companies Act, 1956 (1 of 1956); (7) * * *; (8) Tourism Finance Corporation of India Limited, formed and registered under the Companies Act, 1956 (1 of 1956); (9) IFCI Venture Capital Funds Limited, formed and registered under the Companies Act, 1956 (1 of 1956); (10) Technology Development and Information Company of India Limited, formed and registered under the Companies Act, 1956 (1 of 1956); (11) Power Finance Corporation Limited, formed and registered under the Companies Act, 1956 (1 of 1956); (12) National Housing Bank established under the National Housing Bank Act, 1987 (53 of 1987); (13) Small Industries Development Bank of India established under the Small Industries Development Bank of India Act, 1989 (39 of 1989); (14) Rural Electrification Corporation Ltd., formed and registered under the Companies Act, 1956 (1 of 1956); (15) Indian Railway Finance Corpn. Ltd.; (16) Industrial Finance Corporation of India Ltd. formed and registered under the Companies Act, 1956; (17) Andhra Pradesh State Financial Corporation; (18) Assam Financial Corporation; (19) Bihar State Financial Corporation; (20) Delhi Financial Corporation; (21) Gujarat State Financial Corporation; (22) Haryana Financial Corporation; (23) Himachal Pradesh Financial Corporation; (24) Jammu & Kashmir State Financial Corporation; (25) Karnataka State Financial Corporation; (26) Kerala Financial Corporation; (27) Madhya Pradesh Financial Corporation; (28) Maharashtra State Financial Corporation; (29) Orissa State Financial Corporation; (30) Punjab Financial Corporation; (31) Rajasthan Financial Corporation; (32) Tamilnadu Industrial Development Corporation Limited; (33) Uttar Pradesh Financial Corporation; (34) West Bengal Financial Corporation; (35) Indian Renewable Energy Development Agency Ltd.; (36) North Eastern Development Finance Corpn. Ltd.; (37) Housing & Urban Development Corpn. Ltd.; (38) Export-Import Bank of India; (39) National Bank for Agriculture & Rural Development (NABARD); (40) National Co-operative Development Corporation (NCDC); (41) National Dairy Development Board; (42) Pradeshiya Industrial and Investment Corporation of U.P. Limited; (43) Rajasthan State Industrial Development and Investment Corporation Limited; (44) SICOM Limited; (45) West Bengal Industrial Development Corporation Limited; (46) Tamil Nadu Industrial Development Corporation Limited; (47) Punjab State Industrial Development Corpn. Ltd. (PSIDC).

Source : Notification No. SO 1329, dated 13-5-1978, as amended by SO 2901, dated 9-10-1987; SO 7(E), dated 3-1-1990; SO 238(E), dated 20-3-1990; SO 674(E), dated 31-8-1990; SO 321(E), dated 12-4-1990; SO 484(E), dated 26-7-1991; SO 812(E), dated 2-12-1991; SO 128(E), dated 11-2-1992; SO 765(E), dated 8-10-1993; SO 98(E), dated 15-2-1995; SO 247(E), dated 28-3-1995; SO 843(E), dated 17-10-1995; SO 529(E), dated 23-7-1996; SO 837(E), dated 9-12-1996; SO 433(E), dated 14-6-1999; SO 440(E), dated 17-4-2002; SO 322(E), dated 25-3-2003; SO 518(E), dated 9-5-2003; SO 219(E), dated 23-2-2004; SO 544(E), dated 30-4-2004 and SO 1531(E), dated 25-10-2005.

SECTION 25 OF COMPANIES ACT, 1956

Power to dispense with “Limited” in name of charitable or other company.

25. (1) Where it is proved to the satisfaction of the Central Government that an association—

(a) is about to be formed as a limited company for promoting commerce, art, science, religion, charity or any other useful object, and

(b) intends to apply its profits, if any, or other income in promoting its objects, and to prohibit the payment of any dividend to its members,

the Central Government may, by licence, direct that the association may be registered as a company with limited liability, without the addition to its name of the word “Limited” or the words “Private Limited”.

(2) The association may thereupon be registered accordingly; and on registration shall enjoy all the privileges, and (subject to the provisions of this section) be subject to all the obligations, of limited companies.

(3) Where it is proved to the satisfaction of the Central Government—

(a) that the objects of a company registered under this Act as a limited company are restricted to those specified in clause (a) of sub-section (1), and

(b) that by its constitution the company is required to apply its profits, if any, or other income in promoting its objects and is prohibited from paying any dividend to its members,

the Central Government may, by licence, authorise the company by a special resolution to change its name, including or consisting of the omission of the word “Limited” or the words “Private Limited”; and section 23 shall apply to a change of name under this sub-section as it applies to a change of name under section 21.

(4) A firm may be a member of any association or company licensed under this section, but on the dissolution of the firm, its membership of the association or company shall cease.

(5) A licence may be granted by the Central Government under this section on such conditions and subject to such regulations as it thinks fit, and those conditions and regulations shall be binding on the body to which the licence is granted, and where the grant is under sub-section (1), shall, if the Central Government so directs, be inserted in the memorandum, or in the articles, or partly in the one and partly in the other.

(6) It shall not be necessary for a body to which a licence is so granted to use the word “Limited” or the words “Private Limited” as any part of its name and, unless its articles otherwise provide, such body shall, if the Central Government by general or special order so directs and to the extent specified in the directions, be exempt from such of the provisions of this Act as may be specified therein.

(7) The licence may at any time be revoked by the Central Government, and upon revocation, the Registrar shall enter the word “Limited” or the words “Private Limited” at the end of the name upon the register of the body to which it was granted; and the body shall cease to enjoy the exemption granted by this section :

Provided that, before a licence is so revoked, the Central Government shall give notice in writing of its intention to the body, and shall afford it an opportunity of being heard in opposition to the revocation.

(8) (a) A body in respect of which a licence under this section is in force shall not alter the provisions of its memorandum with respect to its objects except with the previous approval of the Central Government signified in writing.

(b) The Central Government may revoke the licence of such a body if it contravenes the provisions of clause (a).

(c) In according the approval referred to in clause (a), the Central Government may vary the licence by making it subject to such conditions and regulations as that Government thinks fit, in lieu of, or in addition to, the conditions and regulations, if any, to which the licence was formerly subject.

(d) Where the alteration proposed in the provisions of the memorandum of a body under this sub-section is with respect to the objects of the body so far as may be required to enable it to do any of the things specified in clauses (a) to (g) of sub-section (1) of section 17, the provisions of this sub-section shall be in addition to, and not in derogation of, the provisions of that section.

(9) Upon the revocation of a licence granted under this section to a body the name of which contains the words “Chamber of Commerce”, that body shall, within a period of three months from the date of revocation or such longer period as the Central Government may think fit to allow, change its name to a name which does not contain those words; and—

(a) the notice to be given under the proviso to sub-section (7) to that body shall include a statement of the effect of the foregoing provisions of this sub-section; and

(b) section 23 shall apply to a change of name under this sub-section as it applies to a change of name under section 21.

(10) If the body makes default in complying with the requirements of sub-section (9), it shall be punishable with fine which may extend to five thousand rupees for every day during which the default continues.

Section 77A of Companies Act, 1956

Power of company to purchase its own securities.

77A. (1) Notwithstanding anything contained in this Act, but subject to the provisions of sub-section (2) of this section and section 77B, a company may purchase its own shares or other specified securities (hereinafter referred to as “buy-back”) out of—

(i) its free reserves; or

(ii) the securities premium account; or

(iii) the proceeds of any shares or other specified securities :

Provided that no buy-back of any kind of shares or other specified securities shall be made out of the proceeds of an earlier issue of the same kind of shares or same kind of other specified securities.

(2) No company shall purchase its own shares or other specified securities under sub-section (1), unless—

(a) the buy-back is authorised by its articles;

(b) a special resolution has been passed in general meeting of the company authorising the buy-back :

Provided that nothing contained in this clause shall apply in any case where—

(A) the buy-back is or less than ten per cent of the total paid-up equity capital and free reserves of the company; and

(B) such buy-back has been authorised by the Board by means of a resolution passed at its meeting :

Provided further that no offer of buy-back shall be made within a period of three hundred and sixty-five days reckoned from the date of the preceding offer of buy-back, if any.

Explanation : For the purposes of this clause, the expression “offer of buy-back” means the offer of such buy-back made in pursuance of the resolution of the Board referred in the first proviso;

Provided that the buy-back of equity shares in any financial year shall not exceed twenty-five per cent of its total paid-up equity capital in that financial year;

(d) the ratio of the debt owed by the company is not more than twice the capital and its free reserves after such buy-back :

Provided that the Central Government may prescribe a higher ratio of the debt than that specified under this clause for a class or classes of companies.

Explanation.—For the purposes of this clause, the expression “debt” includes all amounts of unsecured and secured debts;

(e) all the shares or other specified securities for buy-back are fully paid-up;

(f) the buy-back of the shares or other specified securities listed on any recognised stock exchange is in accordance with the regulations made by the Securities and Exchange Board of India in this behalf;

(g) the buy-back in respect of shares or other specified securities other than those specified in clause (f) is in accordance with the guidelines as may be prescribed.

(3) The notice of the meeting at which special resolution is proposed to be passed shall be accompanied by an explanatory statement stating—

(a) a full and complete disclosure of all material facts;

(b) the necessity for the buy-back;

(d) the amount to be invested under the buy-back; and

(e) the time limit for completion of buy-back.

(4) Every buy-back shall be completed within twelve months from the date of passing the special resolution or a resolution passed by the Board under clause (b) of sub-section (2).

(5) The buy-back under sub-section (1) may be—

(a) from the existing security holders on a proportionate basis; or

(b) from the open market; or

(c) from odd lots, that is to say, where the lot of securities of a public company, whose shares are listed on a recognised stock exchange, is smaller than such marketable lot, as may be specified by the stock exchange; or

(d) by purchasing the securities issued to employees of the company pursuant to a scheme of stock option or sweat equity.

(6) Where a company has passed a special resolution under clause (b) of sub-section (2) or the Board has passed a resolution under the first proviso to clause (b) of that sub-section to buy-back its own shares or other securities under this section, it shall, before making such buy-back, file with the Registrar and the Securities and Exchange Board of India a declaration of solvency in the form as may be prescribed and verified by an affidavit to the effect that the Board has made a full inquiry into the affairs of the company as a result of which they have formed an opinion that it is capable of meeting its liabilities and will not be rendered insolvent within a period of one year of the date of declaration adopted by the Board, and signed by at least two directors of the company, one of whom shall be the managing director, if any :

Provided that no declaration of solvency shall be filed with the Securities and Exchange Board of India by a company whose shares are not listed on any recognised stock exchange.

(7) Where a company buys-back its own securities, it shall extinguish and physically destroy the securities so bought-back within seven days of the last date of completion of buy-back.

(8) Where a company completes a buy-back of its shares or other specified securities under this section, it shall not make further issue of the same kind of shares (including allotment of further shares under clause (a) of sub-section (1) of section 81) or other specified securities within a period of six months except by way of bonus issue or in the discharge of subsisting obligations such as conversion of warrants, stock option schemes, sweat equity or conversion of preference shares or debentures into equity shares.

(9) Where a company buys-back its securities under this section, it shall maintain a register of the securities so bought, the consideration paid for the securities bought-back, the date of cancellation of securities, the date of extinguishing and physically destroying of securities and such other particulars as may be prescribed.

(10) A company shall, after the completion of the buy-back under this section, file with the Registrar and the Securities and Exchange Board of India, a return containing such particulars relating to the buy-back within thirty days of such completion, as may be prescribed :

Provided that no return shall be filed with the Securities and Exchange Board of India by a company whose shares are not listed on any recognised stock exchange.

(11) If a company makes default in complying with the provisions of this section or any rules made thereunder, or any regulations made under clause (f) of sub-section (2), the company or any officer of the company who is in default shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to fifty thousand rupees, or with both.

Explanation.—For the purposes of this section,—

(a) “specified securities” includes employees’ stock option or other securities as may be notified by the Central Government from time to time;

(b) “free reserves” shall have the meaning assigned to it in clause (b) of Explanation to section 372A.

SECTION 200 OF COMPANIES ACT, 1956

Prohibition of tax-free payments.

200. (1) No company shall pay to any officer or employee thereof, whether in his capacity as such or otherwise, remuneration free of any tax, or otherwise calculated by reference to, or varying with, any tax payable by him, or the rate or standard rate of any such tax, or the amount thereof.

Explanation.—In this sub-section, the expression “tax” comprises any kind of income-tax including super-tax.

(2) Where by virtue of any provision in force immediately before the commencement of this Act, whether contained in the company’s articles, or in any contract made with the company, or in any resolution passed by the company in general meeting or by the company’s Board of directors, any officer or employee of the company holding any office at the commencement of this Act is entitled to remuneration in any of the modes prohibited by sub-section (1), such provision shall have effect during the residue of the term for which he is entitled to hold such office at such commencement, as if it provided instead for the payment of a gross sum subject to the tax in question, which, after deducting such tax, would yield the net sum actually specified in such provision.

(3) This section shall not apply to any remuneration—

(a) which fell due before the commencement of this Act, or

(b) which may fall due after the commencement of this Act, in respect of any period before such commencement.

SECTION 205(1) OF COMPANIES ACT, 1956

Dividend to be paid only out of profits.

205. (1) No dividend shall be declared or paid by a company for any financial year except out of the profits of the company for that year arrived at after providing for depreciation in accordance with the provisions of sub-section (2) or out of the profits of the company for any previous financial year or years arrived at after providing for depreciation in accordance with those provisions and remaining undistributed or out of both or out of moneys provided by the Central Government or a State Government for the payment of dividend in pursuance of a guarantee given by that Government :

Provided that—

(a) if the company has not provided for depreciation for any previous financial year or years which falls or fall after the commencement of the Companies (Amendment) Act, 1960, it shall, before declaring or paying dividend for any financial year provide for such depreciation out of the profits of that financial year or out of the profits of any other previous financial year or years;

(b) if the company has incurred any loss in any previous financial year or years, which falls or fall after the commencement of the Companies (Amendment) Act, 1960, then, the amount of the loss or an amount which is equal to the amount provided for depreciation for that year or those years whichever is less, shall be set off against the profits of the company for the year for which dividend is proposed to be declared or paid or against the profits of the company for any previous financial year or years, arrived at in both cases after providing for depreciation in accordance with the provisions of sub-section (2) or against both;

(c) the Central Government may, if it thinks necessary so to do in the public interest, allow any company to declare or pay dividend for any financial year out of the profits of the company for that year or any previous financial year or years without providing for depreciation :

Provided further that it shall not be necessary for a company to provide for depreciation as aforesaid where dividend for any financial year is declared or paid out of the profits of any previous financial year or years which falls or fall before the commencement of the Companies (Amendment) Act, 1960.

SECTION 226(2) OF COMPANIES ACT, 1956

Qualifications and disqualifications of auditors.

226. (1) **

(2) (a) Notwithstanding anything contained in sub-section (1), but subject to the provisions of any rules made under clause (b), the holder of a certificate granted under a law in force in the whole or any portion of a Part B State immediately before the commencement of the Part B States (Laws) Act, 1951 (3 of 1951) or of the Jammu and Kashmir (Extension of Laws) Act, 1956 (62 of 1956), as the case may be, entitling him to act as an auditor of companies in the territories which, immediately before the 1st November, 1956, were comprised in that State or any portion thereof, shall be entitled to be appointed to act as an auditor of companies registered anywhere in India.

(b) The Central Government may, by notification in the Official Gazette, make rules providing for the grant, renewal, suspension or cancellation of auditors’ certificates to persons in the territories which, immediately before the 1st November, 1956, were comprised in Part B States for the purposes of clause (a), and prescribing conditions and restrictions for such grant, renewal, suspension or cancellation.

SECTION 233B OF COMPANIES ACT, 1956

Audit of cost accounts in certain cases.

233B. (1) Where in the opinion of the Central Government it is necessary so to do in relation to any company required under clause (d) of sub-section (1) of section 209 to include in its books of account the particulars referred to therein, the Central Government may, by order, direct that an audit of cost accounts of the company shall be conducted in such manner as may be specified in the order by an auditor who shall be a cost accountant within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959) :

Provided that if the Central Government is of opinion that sufficient number of cost accountants within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959), are not available for conducting the audit of the cost accounts of companies generally, that Government may, by notification in the Official Gazette, direct that, for such period as may be specified in the said notification, such chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949), as possesses the prescribed qualifications, may also conduct the audit of the cost accounts of companies, and thereupon a chartered accountant possessing the prescribed qualifications may be appointed to audit the cost accounts of the company.

(2) The auditor under this section shall be appointed by the Board of directors of the company in accordance with the provisions of sub-section (1B) of section 224 and with the previous approval of the Central Government :

Provided that before the appointment of any auditor is made by the Board, a written certificate shall be obtained by the Board from the auditor proposed to be so appointed to the effect that the appointment, if made, will be in accordance with the provisions of sub-section (1B) of section 224.

(3) An audit conducted by an auditor under this section shall be in addition to an audit conducted by an auditor appointed under section 224.

(4) An auditor shall have the same powers and duties in relation to an audit conducted by him under this section as an auditor of a company has under sub-section (1) of section 227 and such auditor shall make his report to the Central Government in such form and within such time as may be prescribed and shall also at the same time forward a copy of the report to the company.

(5) (a) A person referred to in sub-section (3) or sub-section (4) of section 226 shall not be appointed or re-appointed for conducting the audit of the cost accounts of a company.

(b) A person appointed, under section 224, as an auditor of a company, shall not be appointed or re-appointed for conducting the audit of the cost accounts of that company.

(c) If a person, appointed for conducting the audit of cost accounts of a company, becomes subject, after his appointment, to any of the disqualifications specified in clause (a) or clause (b) of this sub-section, he shall, on and from the date on which he becomes so subject, cease to conduct the audit of the cost accounts of the company.

(6) Upon receipt of an order under sub-section (1), it shall be the duty of the company to give all facilities and assistance to the person appointed for conducting the audit of the cost accounts of the company.

(7) The company shall, within thirty days from the date of receipt of a copy of the report referred to in sub-section (4), furnish the Central Government with full information and explanations on every reservation or qualification contained in such report.

(8) If, after considering the report referred to in sub-section (4) and the information and explanations furnished by the company under sub-section (7), the Central Government is of opinion that any further information or explanation is necessary, that Government may call for such further information and explanation and thereupon the company shall furnish the same within such time as may be specified by that Government.

(9) On receipt of the report referred to in sub-section (4) and the informations and explanations furnished by the company under sub-section (7) and sub-section (8), the Central Government may take such action on the report, in accordance with the provisions of this Act or any other law for the time being in force, as it may consider necessary.

(10) The Central Government may direct the company whose cost accounts have been audited under this section to circulate to its members, along with the notice of the annual general meeting to be held for the first time after the submission of such report, the whole or such portion of the said report as it may specify in this behalf.

(11) If default is made in complying with the provisions of this section, the company shall be liable to be punished with fine which may extend to five thousand rupees, and every officer of the company who is in default, shall be liable to be punished with imprisonment for a term which may extend to three years, or with fine which may extend to fifty thousand rupees, or with both.

Section 293A of Companies Act, 1956

Prohibitions and restrictions regarding political contributions.

293A. (1) Notwithstanding anything contained in any other provision of this Act,—

(a) no Government company; and

(b) no other company which has been in existence for less than three financial years,

shall contribute any amount or amounts, directly or indirectly,—

(i) to any political party; or

(ii) for any political purpose to any person.

(2) A company, not being a company referred to in clause (a) or clause (b) of sub-section (1), may contribute any amount or amounts, directly or indirectly,—

(a) to any political party; or

(b) for any political purpose to any person:

Provided that the amount or, as the case may be, the aggregate of the amounts which may be so contributed by a company in any financial year shall not exceed five per cent of its average net profits determined in accordance with the provisions of sections 349 and 350 during the three immediately preceding financial years.

Explanation : Where a portion of a financial year of the company falls before the commencement of the Companies (Amendment) Act, 1985, and a portion falls after such commencement, the latter portion shall be deemed to be a financial year within the meaning and for the purposes, of this sub-section:

Provided further that no such contribution shall be made by a company unless a resolution authorising the making of such contribution is passed at a meeting of the Board of directors and such resolution shall, subject to the other provisions of this section, be deemed to be justification in law for the making and the acceptance of the contribution authorised by it.

(3) Without prejudice to the generality of the provisions of sub-sections (1) and (2),—

(a) a donation or subscription or payment caused to be given by a company on its behalf or on its account to a person who, to its knowledge, is carrying on any activity which, at the time at which such donation or subscription or payment was given or made, can reasonably be regarded as likely to effect public support for a political party shall also be deemed to be contribution of the amount of such donation, subscription or payment to such person for a political purpose;

(b) the amount of expenditure incurred, directly or indirectly, by a company on advertisement in any publication (being a publication in the nature of a souvenir, brochure, tract, pamphlet or the like) by or on behalf of a political party or for its advantage shall also be deemed,—

(i) where such publication is by or on behalf of a political party, to be a contribution of such amount to such political party, and

(ii) where such publication is not by or on behalf of but for the advantage of a political party, to be a contribution for a political purpose to the person publishing it.

(4) Every company shall disclose in its profit and loss account any amount or amounts contributed by it to any political party or for any political purpose to any person during the financial year to which that account relates, giving particulars of the total amount contributed and the name of the party or person to which or to whom such amount has been contributed.

(5) If a company makes any contribution in contravention of the provisions of this section,—

(a) the company shall be punishable with fine which may extend to three times the amount so contributed; and

(b) every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to fine.

Explanation.—For the purposes of this section, “political party” means a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951).

Section 391 of Companies Act, 1956

Power to compromise or make arrangements with creditors and members.

391. (1) Where a compromise or arrangement is proposed—

(a) between a company and its creditors or any class of them; or

(b) between a company and its members or any class of them,

the Tribunal may, on the application of the company or of any creditor or member of the company, or, in the case of a company which is being wound up, of the liquidator, order a meeting of the creditors or class of creditors, or of the members or class of members, as the case may be, to be called, held and conducted in such manner as the Tribunal directs.

(2) If a majority in number representing three-fourths in value of the creditors, or class of creditors, or members, or class of members, as the case may be, present and voting either in person or, where proxies are allowed under the rules made under section 643, by proxy, at the meeting, agree to any compromise or arrangement, the compromise or arrangement shall, if sanctioned by the Tribunal, be binding on all the creditors, all the creditors of the class, all the members, or all the members of the class, as the case may be, and also on the company, or in the case of a company which is being wound up, on the liquidator and contributories of the company :

Provided that no order sanctioning any compromise or arrangement shall be made by the Tribunal unless the Tribunal is satisfied that the company or any other person by whom an application has been made under sub-section (1) has disclosed to the Tribunal, by affidavit or otherwise, all material facts relating to the company, such as the latest financial position of the company, the latest auditor’s report on the accounts of the company, the pendency of any investigation proceedings in relation to the company under sections 235 to 251, and the like.

(3) An order made by the Tribunal under sub-section (2) shall have no effect until a certified copy of the order has been filed with the Registrar.

(4) A copy of every such order shall be annexed to every copy of the memorandum of the company issued after the certified copy of the order has been filed as aforesaid, or in the case of a company not having a memorandum, to every copy so issued of the instrument constituting or defining the constitution of the company.

(5) If default is made in complying with sub-section (4), the company, and every officer of the company who is in default, shall be punishable with fine which may extend to one hundred rupees for each copy in respect of which default is made.

(6) The Tribunal may, at any time after an application has been made to it under this section, stay the commencement or continuation of any suit or proceeding against the company on such terms as the Tribunal thinks fit, until the application is finally disposed of.

(7) **

Section 392 of Companies Act, 1956

Power of Tribunal to enforce compromise and arrangement.

392. (1) Where the Tribunal makes an order under section 391 sanctioning a compromise or an arrangement in respect of a company, it—

(a) shall have power to supervise the carrying out of the compromise or an arrangement; and

(b) may, at the time of making such order or at any time thereafter, give such directions in regard to any matter or make such modifications in the compromise or arrangement as it may consider necessary for the proper working of the compromise or arrangement.

(2) If the Tribunal aforesaid is satisfied that a compromise or an arrangement sanctioned under section 391 cannot be worked satisfactorily with or without modifications, it may, either on its own motion or on the application of any person interested in the affairs of the company, make an order winding up the company, and such an order shall be deemed to be an order made under section 433 of this Act.

(3) The provisions of this section shall, so far as may be, also apply to a company in respect of which an order has been made before the commencement of the Companies (Amendment) Act, 2001 sanctioning a compromise or an arrangement.

Section 393 of Companies Act, 1956

Information as to compromises or arrangements with creditors and members.

393. (1) Where a meeting of creditors or any class of creditors, or of members or any class of members, is called under section 391,—

(a) with every notice calling the meeting which is sent to a creditor or member, there shall be sent also a statement setting forth the terms of the compromise or arrangement and explaining its effect, and in particular, stating any material interests of the directors, managing director or manager of the company, whether in their capacity as such or as members or creditors of the company or otherwise, and the effect on those interests, of the compromise or arrangement, if, and in so far as, it is different from the effect on the like interests of other persons; and

(b) in every notice calling the meeting which is given by advertisement, there shall be included either such a statement as aforesaid or a notification of the place at which and the manner in which creditors or members entitled to attend the meeting may obtain copies of such a statement as aforesaid.

(2) Where the compromise or arrangement affects the rights of debenture holders of the company, the said statement shall give the like information and explanation as respects the trustees of any deed for securing the issue of the debentures as it is required to give as respects the company’s directors.

(3) Where a notice given by advertisement includes a notification that copies of a statement setting forth the terms of the compromise or arrangement proposed and explaining its effect can be obtained by creditors or members entitled to attend the meeting, every creditor or member so entitled shall, on making an application in the manner indicated by the notice, be furnished by the company, free of charge, with a copy of the statement.

(4) Where default is made in complying with any of the requirements of this section, the company, and every officer of the company who is in default, shall be punishable with fine which may extend to fifty thousand rupees; and for the purpose of this sub-section any liquidator of the company and any trustee of a deed for securing the issue of debentures of the company shall be deemed to be an officer of the company :

Provided that a person shall not be punishable under this sub-section if he shows that the default was due to the refusal of any other person, being a director, managing director, manager or trustee for debenture holders, to supply the necessary particulars as to his material interests.

(5) Every director, managing director, or manager of the company, and every trustee for debenture holders of the company, shall give notice to the company of such matters relating to himself as may be necessary for the purposes of this section; and if he fails to do so, he shall be punishable with fine which may extend to five thousand rupees.

Section 394 of Companies Act, 1956

Provisions for facilitating reconstruction and amalgamation of companies.

394. (1) Where an application is made to the Tribunal under section 391 for the sanctioning of a compromise or arrangement proposed between a company and any such persons as are mentioned in that section, and it is shown to the Tribunal—

(a) that the compromise or arrangement has been proposed for the purposes of, or in connection with, a scheme for the reconstruction of any company or companies, or the amalgamation of any two or more companies; and

(b) that under the scheme the whole or any part of the undertaking, property or liabilities of any company concerned in the scheme (in this section referred to as a “transferor company”) is to be transferred to another company (in this section referred to as “the transferee company”),

the Tribunal may, either by the order sanctioning the compromise or arrangement or by a subsequent order, make provision for all or any of the following matters :

(i) the transfer to the transferee company of the whole or any part of the undertaking, property or liabilities of any transferor company;

(ii) the allotment or appropriation by the transferee company of any shares, debentures, policies, or other like interests in that company which, under the compromise or arrangement, are to be allotted or appropriated by that company to or for any person;

(iii) the continuation by or against the transferee company of any legal proceedings pending by or against any transferor company;

(iv) the dissolution, without winding up, of any transferor company;

(v) the provision to be made for any persons who, within such time and in such manner as the Tribunal directs, dissent from the compromise or arrangement; and

(vi) such incidental, consequential and supplemental matters as are necessary to secure that the reconstruction or amalgamation shall be fully and effectively carried out :

Provided that no compromise or arrangement proposed for the purposes of, or in connection with, a scheme for the amalgamation of a company, which is being wound up, with any other company or companies, shall be sanctioned by the Tribunal unless the Tribunal has received a report from the Registrar that the affairs of the company have not been conducted in a manner prejudicial to the interests of its members or to public interest :

Provided further that no order for the dissolution of any transferor company under clause (iv) shall be made by the Tribunal unless the Official Liquidator has, on scrutiny of the books and papers of the company, made a report to the Tribunal that the affairs of the company have not been conducted in a manner prejudicial to the interests of its members or to public interest.

(2) Where an order under this section provides for the transfer of any property or liabilities, then, by virtue of the order, that property shall be transferred to and vest in, and those liabilities shall be transferred to and become the liabilities of, the transferee company; and in the case of any property, if the order so directs, freed from any charge which is, by virtue of the compromise or arrangement, to cease to have effect.

(3) Within thirty days after the making of an order under this section, every company in relation to which the order is made shall cause a certified copy thereof to be filed with the Registrar for registration.

If default is made in complying with this sub-section, the company, and every officer of the company who is in default, shall be punishable with fine which may extend to five hundred rupees.

(4) In this section—

(a) “property” includes property, rights and powers of every description; and “liabili-ties” includes duties of every description; and

(b) “transferee company” does not include any company other than a company within the meaning of this Act; but “transferor company” includes any body corporate, whether a company within the meaning of this Act or not.

SECTION 620A OF COMPANIES ACT, 1956

Power to modify Act in its application to Nidhis, etc.

620A. (1) In this section, “Nidhi” or “Mutual Benefit Society” means a company which the Central Government may, by notification in the Official Gazette, declare to be a Nidhi or Mutual Benefit Society, as the case may be.

(2) The Central Government may, by notification in the Official Gazette, direct that any of the provisions of this Act specified in the notification—

(a) shall not apply to any Nidhi or Mutual Benefit Society, or

(b) shall apply to any Nidhi or Mutual Benefit Society with such exceptions, modifications and adaptations as may be specified in the notification.

(3) A copy of every notification issued under sub-section (1) shall be laid as soon as may be after it is issued, before each House of Parliament.

NOTIFIED NIDHIS/MUTUAL BENEFIT SOCIETIES UNDER SECTION 620A OF COMPANIES ACT, 1956

In exercise of the powers conferred by section 620A of the Companies Act, 1956 (1 of 1956), the Central Government hereby—

(i) declares the companies specified in Schedules I and II annexed hereto as nidhis and mutual benefit societies respectively; and

(ii) directs that the provisions of the said Act specified in column (1) of Schedule III annexed hereto shall not apply or, as the case may be, shall apply with the exceptions, modifications and adaptations specified in the corresponding entry in column (2) thereof, to such nidhis and mutual benefit societies.

SCHEDULE I : NIDHIS

1. Adambakkam Janopakara Saswatha Nidhi Ltd., Madras

2. Alandur Praja Sahay Saswatha Nidhi Ltd., Madras

3. Bhuvanagiri Hindu Saswatha Paropakara Nidhi Ltd., Madras

4. Chennai Sri Andal Dhanasekara Saswatha Nidhi Ltd., Madras

5. Chennai Sri Ekambareswarar Saswatha Nidhi Ltd., Madras

6. Chidambaram Hindu Saswatha Jananukula Nidhi Ltd., Madras

7. Chingleput Dhanasekara Nidhi Ltd., Madras

8. Choolai Janopakara Nidhi Ltd., Madras

9. Conjeevaram Hodsonpet Dhanasekara Nidhi Ltd., Madras

10. Cuddalore Permanent Fund Ltd., Madras

11. Egmore Benefit Society Third Branch Ltd., Madras

12. Kumbakonam Mutual Benefit Fund Ltd., Madras

13. Madras Catholic Permanent Fund Ltd., Madras

14. Madras Christian Benefit Fund Ltd., Madras

15. Madras Mutual Benefit Permanent Fund Ltd., Madras

16. Madras Purasawalkam Hindu Janopakara Saswatha Nidhi or the Permanent General Benefit Fund Ltd., Madras

17. Madura Hindu Permanent Fund Ltd., Madras

18. Muthialpet Benefit Fund Ltd., Madras

19. Mylapore Hindu Permanent Fund Ltd., Madras

20. Nagapatnam Permanent Fund Ltd., Madras

21. Nugambakkam Saswatha Dhanna Raksha Nidhi Ltd., Madras

22. Pudupakkam Permanent Fund Ltd., Madras

23. Puraswalkam Dhana Vardhana Saswatha Nidhi Ltd., Madras

24. Purasawalkam Hindu Santhatha Sanga Nidhi 1st Branch Ltd., Madras

25. Puraswalkam Permanent Fund Ltd., Madras

26. Paraspara Sahaya Nidhi (Perambu) Ltd., Madras

27. Shiyali Janopakara Nidhi Ltd., Madras

28. Sivagana Shri Meenakshi Swadeshi Saswatha Nidhi Ltd., Madras

29. Shri Villiputhur Permanent Fund Ltd., Madras

30. Sunrise Corporation Ltd., Madras

31. Thiyagarayanagar Fund Ltd., Madras

32. Tinnelvelly District Permanent Fund Ltd., Madras

33. Tiruvatteeswaran Hindu Janopakara Nidhi Ltd., Madras

34. Triplicate Permanent Fund Ltd., Madras

35. Trivellore Janopakara Saswatha Nidhi Ltd., Madras

36. Villupuram People’s Mutual Benefit Society Ltd., Madras

37. Abiramapuram Fund Ltd., Madras

38. Arcot Dhana Sekara Nidhi Ltd., Madras

39. Arcot Tiruvalluvar Nidhi Ltd., Madras

40. Saraswathi Vilasam Shanmugananda Nidhi Ltd., Madras

41. Thirumagal Mutual Benefit Fund Ltd., Madras

42. Varalakshmi Fund (Vellore) Ltd., Madras

43. Vellore Saswatha Nidhi Ltd., Madras

44. Walajabad Dhanasekara Saswatha Nidhi Ltd., Madras

45. Chittoor Saswatha Nidhi Ltd., Andhra Pradesh

46. Madanapalle Sri Venkateswara Nidhi Ltd., Andhra Pradesh

47. Anantapur Sri Satyanarayana Nidhi Ltd., Andhra Pradesh

48. Nellore Permanent Fund Ltd., Andhra Pradesh

49. Adoni Arya Vaisya Fund Ltd., Andhra Pradesh

50. Dharamavaram Mutual Benefit Permanent Fund, Andhra Pradesh

51. Anantapur National Fund Ltd., Andhra Pradesh

52. Hindupur Mutual Benefit Permanent Fund Ltd., Andhra Pradesh

53. Madakasira Mutual Benefit Permanent Fund Ltd., Andhra Pradesh

54. Penukonda Maruthi Benefit Permanent Fund Ltd., Andhra Pradesh

55. Bangalore Cantonment Permanent Fund Ltd., Mysore

56. Harapanahallai Sree Venkataramanaswamy Permanent Bhandar Ltd., Mysore

57. Ballary Brucepettah Hindu Mutual Benefit Permanent Fund Ltd., Mysore

58. Hospet Ryots Agro-Industrial Corporation Ltd., Mysore

59. Anantapur Sree Vasavamba Permanent Fund Ltd., Andhra Pradesh

60. Shri Vasavi Parmeswari Permanent Fund Ltd., Madras

61. Kuries & Trades Ltd., Ernakulam

62. Saidapet Saswatha Nidhi Ltd., Madras

63. Shree Rajagopaul Benefit Fund Ltd., Madras

64. The Madras Chromepet Permanent Fund Ltd., Madras

65. The Adoni Mutual Benefit Permanent Fund Ltd., Andhra Pradesh

66. Sriman Madhva Sidhanta Permanent Nidhi Ltd.

67. Thirumylai Saswatha Sahaya Nidhi Ltd.

68. Taheri Aid Fund Ltd.

69. Kumbakonam Doicesan Catholics Permanent Fund Ltd.

70. Matha Vara Nidhi Ltd.

71. Amritsar Radhasaomi Finance Co. (P.) Ltd.

72. Nambalam Benefit Society Ltd.

73. Makkal Nala Abivirthi Nidhi Ltd.

74. Kilpank Benefit Society Ltd.

75. Samarasa Mutual Benefit Fund Ltd.

76. Chromepet Saswatha Nidhi Ltd.

77. Sri Raja Raja Cholan Mutual Benefit Fund Ltd.

78. Palghat Permanent Fund Ltd.

79. Grama Nala Saswatha Nidhi Ltd.

80. Kondan Mutual Benefit Fund Ltd.

81. Sri Saithai Mutual Benefit Fund Ltd.

82. Mini Mutual Benefit Fund Ltd.

83. Annanagar Janopakara Nidhi Ltd.

84. Dhanalakshmi Funds (India) Ltd.

85. Aminjikarai Benefit Fund Ltd., Madras

86.

87. Jawahar Nagar Nidhi (Madras) Ltd.

88. Shenoy Nagar Saswatha Nidhi Ltd., Madras

89.

90.

91. Kayanat Permanent Fund Ltd.

92. Piravom Funds Ltd.

93. Chennapuri Mutual Benefit Fund Ltd.

94. Chetpet Saswatha Nidhi Ltd.

95. Royapettah Benefit Fund Ltd.

96. Shenoy Nagar Benefit Fund Ltd.

97. Kalaimagal Mutual Benefit Fund Ltd.

98. Mini Muthoottu Mutual Fund Ltd.

99. Dravidian Benefit Fund Ltd.

100. Ashoknagar Janopakara Saswatha Nidhi Ltd.

101.

102. St. Mary’s Finance Ltd.

103. Tamilnadu Viswakarma Mutual Benefit Fund Ltd.

104. Shree Ambika Nidhi Ltd.

105. West Mambalam Permanent Fund Ltd.

106. Al-Falah Mutual Benefits Ltd.

107. Manipal Sowbhagya Nidhi Ltd.

108. Jayalakshmi Mutual Benefits Fund Ltd.

109. Kodam Bakkam Benefits Fund Ltd.

110.

111. Parktown Benefit Fund Ltd.

112.

113.

114.

115. Kanchi Mutual Benefit Fund Ltd.

116. Thirumangalam Janopakara Permanent Fund Ltd.

117. St. Marry’s Fund Ltd.

118. Sreevari Benefit Society Ltd.

119. Gillnagar Benefit Fund Ltd.

120. Kerala Permanent Fund Ltd.

121. Pammal Makkal Nala Fund Ltd.

122. Pondicherry Mutual Benefit Fund Ltd.

123. Bliss Benefit Fund Ltd.

132. Alwarpet Benefit Fund Ltd.

133. Al-Najib Milli Mutual Benefit Funds Ltd.

134. Nirappukattil Mutual Funds Ltd.

135. Mannady Permanent Fund Ltd.

136. Virudhunagar Benefit Fund Ltd.

137. Sri Akilakrishna Benefit Society Ltd.

138. South East Benefit Fund Ltd.

139. Rasi Nidhi Ltd.

140. Sri Kandaswamy Permanent Fund Ltd.

141. Sri Padmanabha Permanent Fund Ltd.

142. Incan Mutual Benefit Ltd.

143. Subam Benefit Fund Ltd.

144. Saibala Benefit Fund Ltd.

145. Tulasi Krishna Permanent Fund Ltd.

146. Indian Members Benefit Fund Ltd.

147. Nanganallur Permanent Fund Ltd.

148. Peravallur Permanent Fund Ltd.

149. Ayodhya Benefit Fund Ltd.

150. Self Growth Nidhi Ltd.

151. Shri Samundeswari Benefit Fund Ltd.

152. ICS Benefit Fund Ltd.

153. Shri Navrathana Benefit Fund Ltd.

154. Sullivan Garden Benefit Fund Ltd.

155. Shabab Islamic Investment and Mutual Benefits (India) Limited, Lucknow

156. Venkatesapuram Benefit Fund Limited, Madras

157. Canara Nidhi Limited, Manipal

158. SMP Mutual Benefit Limited, Haldwani, Uttar Pradesh

159. Trywell Finance Mutual Benefit Company Limited, New Delhi

160. The Hasnapuram Mutual Benefit Permanent Fund Limited, Madras

161. Manappuram Benefit Fund Limited, Trissur

162. Galaxy Mutual Benefit Company Limited, Lucknow

163. Alagendran Benefit Fund Limited, Madras

172. Devta Mutual Benefits Limited, Meerut

173. Sanjeevarayan Benefit Fund Limited, Madras

174. Manali Benefit Fund Limited, Madras

175. Eldico Mutual Benefit Company Limited, Lucknow

176. Sidhartha Mutual Benefit Fund Limited, New Delhi

177. Pallavan Mutual Benefit Fund Limited, Madras

178. Devidas Finance Limited, Puttur

179. Thiru-Vi-Ka Nagar Benefit Fund Limited, Madras

180. Kumari Benefit Fund Limited, Madras

181. Vellavedu Benefit Fund Limited, Vellavedu, Tamil Nadu

182. Promptekk Benefit Fund Limited, Madras

183. Sarvajana Benefit Fund Limited, Madras

184. Sri Muthukumaraswamy Permanent Fund Limited, Madras

185. Perfect Benefit Fund Limited, Madras

186. Trichy Rockcity Benefit Fund Limited, Trichy, Tamil Nadu

187. Vedaraniam Benefit Fund Limited, Vedaraniam, Tamil Nadu

188. Crystal India Mutual Benefits Limited, District Nainital, Uttar Pradesh

189. Gowthami Permanent Fund Limited, Kakinada, Andhra Pradesh

190. Kaveripatnam Benefit Fund Limited, Dharmapuri, Tamil Nadu

191. Shri Shanthi Nath Benefit Fund Limited, Villupuram, Tamil Nadu

192. Veejay Benefit Fund Limited, Madras

193. Chepauk Benefit Fund Limited, Chennai

194. Baggyalakshmi Benefit Fund Limited, Chennai

195. Samayapuram Mariamman Benefit Fund Limited, Trichy, Tamilnadu

196. Lakshmipuram Benefit Fund Limited, Tiruninravur, Chennai

197. Sri Devigayathri Benefit Fund Limited, Chennai

198. Eravi Vinayagar Benefit Fund Limited, Kanyakumari District, Tamilnadu

199. Bhavsar Maratah Benefit Fund Limited, Chennai

200. Minjur Benefit Fund Limited, Minjur, Tamilnadu

201. Sakthi Benefit Fund Limited, Chennai

202. Kulitalai Benefit Funds Limited, Kulitalai, Tamilnadu

203. Kudumba Vilakku Benefit Fund Limited, Thanjavur, Tamilnadu.*

204. Karur Benefit Fund Limited, Karur, Tamil Nadu.

205. Town Benefit Fund (Kumbakonam) Limited, Kumbakonam, Tamil Nadu.

206. City Benefit Fund (Kumbakonam) Limited, Kumbakonam, Tamil Nadu.

207. Kasthuribai Benefit Fund Limited, Vellore, Tamil Nadu.

208. Merchants Benefit Fund Limited, 341, Indira Nagar, Neyveli - 607801, Tamilnadu.

209. Bethel Benefit Fund Limited, 33, (Old No. 18) Srinivasa Raghavan Road, Srinivasa Nagar, Perungalathur, Chennai ‑ 600063.

210. Tindivanam Benefit Fund Limited, No. 4, Thiruvalluvar Street, Tindivanam - 604001, Tamilnadu.

211. Neema Benefit Fund Limited, Neema Buildings, Adoor, Pathanamthitta Distt. Kerala - 691523.

212. Sri Maragathambigai Benefit Fund Limited, 466, J.N. Street, Tindivanam - 604001, Tamilnadu.

213. Varthaka Mandal Nidhi Limited, XL/6013, T.D. Shopping Complex, T.D. West Road, Ernakulam - 682035, Kerala.

214. Ayanavaram Permanent Fund Limited, 11/7, Parasurama Easwaran Koil Street, Ayanavaram, Chennai - 600023.

215. Amaravatthi Benefit Fund Limited, No. 15, 1st Street, Conransmith Road, Gopalapuram, Chennai - 600086.

216. Sree Venkata Krupa Permanent Fund Limited, 3-5-131, Adrathi Lane, Tirupati - 517501, Andhra Pradesh.

217. Arumbakkam Benefit Fund Limited, 28A, New No. 6, Poonamallee High Road, Arumbakkam, Chennai - 600106.

218. Thiruvanmiyoor Permanent Fund Limited, Annamalai Complex, 123-A, Dr. Muthulakshmi Road, Chennai - 600041.

219. Hari Sankara Benefit Fund Limited, No. 5, East Street, Tirukoilur - 605757, Tamilnadu.

220. Chiranjeevi Benefit Fund Limited, 13/7, Thiruchendur Road, Tuticorin - 628003, Tamilnadu.

221. Sri Benefit Fund Limited, 39, Bazaar Street, Sirkali - 609110, Tamilnadu.

222. Villivakkam Janopakara Fund Limited, 1, Meetu Street, Villivakkam, Chennai - 600049.

223. South Madras Benefit Fund Limited, 20, Kallukaran Street, Mylapore, Chennai-600004.

224. Thiruvallur Thripurasundari Benefit Fund Limited, 33, North Raja Street, Tiruvallur-602001, Tamilnadu.

225. Sri Annamalai Benefit Fund Limited, 1st Floor, Annamalai Tower, 50, Kubera Street, Villupuram-605602, Tamilnadu.

226. Thendral Benefit Fund Ltd., No. 44, 6th Cross Street, M.K.B. Nagar, Chennai-600039.

227. T.V.R. Benefit Fund Limited, 66, East Main Street, Thiruvarur-610001, Tamilnadu.

228. Lalapet Benefit Fund Limited, 2/60 (New No. 2/87), Main Road, Lalapet-639105, Karur District, Tamilnadu.

229. Jeya Bharath Benefit Fund Limited, New No. 15(8), C.N.K. Road, Chepauk, Chennai-600005.

230. Twin Cities Permanent Fund Limited, 1-1-790, Ashok Nagar Extension, Gandhinagar, Hyderabad-500080, Andhra Pradesh.

231. Thiyagadurugam Benefit Fund Limited, No. 7, Kavarai Street, Thiyagadurugam-606206, Tamilnadu.

232. Sembiam Benefit Fund Limited, New No. 154 (Old No. 251), Paper Mills Road, Ist Floor, Perambur, Chennai-600011.

233. Vijaysubham Benefit Fund Limited, 117, North Car Street, Sirkali-609110, Tamilnadu.

234. Madurai City Benefit Fund Limited, 71, North Veli Street, Simmakkal, Madurai-625001, Tamilnadu.

235. Rajapalayam Benefit Fund Limited, 428-A, Ambalapuli Bazar, Ist Floor, Rajapalayam-626117, Tamilnadu.

236. Prakasam District Permanent Fund Limited, 23-1-106, Gandhi Road, Ongole-523001, Andhra Pradesh.

237. Collector Nagar Benefit Fund Limited, 2/267, Mugappair East, Chennai-600050.

238. Chordia Benefit Fund Limited, 29/A2, Panruti Road, Ulundurpet-606107, Tamilnadu.

239. SRM Benefit Fund Limited, 3, Veerasamy Street, West Mambalam, Chennai-600033.

240. East West Benefit Fund Limited, F41/4, Ist Floor, First Main Road, Anna Nagar East, Chennai-600102.

241. Variar Benefit Fund Limited, Flat No. 193/8, Asiad Colony, Jawaharlal Nehru Road, Anna Nagar, West Extension, Chennai-600101.

242. Azax Benefit Fund Limited, No. 666/1, T.H. Road, Chennai-600019.

243. Muthoot Mercantile Syndicate Limited, 75, Attukal Shopping Complex, East Fort, Thiruvananthapura-695023, Kerala.

244. Uttiramerur Benefit Fund Limited, No. 45, Bazar Street, Uttiramerur-603406, Tamilnadu.

245. Kasi Viswanathar (Chennai) Benefit Fund Limited, No. 9, Market Street, (1st Floor), Ayanavaram, Chennai-600023.

246. Raj Benefit Fund Limited, 2F, Bharathy Road, Cuddalore-607 001, Tamil Nadu.

247. Trisea Benefit Fund Limited, 227F, Roy Building, Rajakkamangalam Road, Ramanputhoor, Nagercoil-4, Tamil Nadu.

248. Vilavancode Selfreliance Credit Services Limited, Good News Centre, Unnamalakadai-629 179, Tamil Nadu.

249. Muthoot M. George Permanent Fund Limited, P.B. No. 11, Muthoot Buildings, Kozhencherry, Kerala.

250. North West Madras Benefit Society Limited, 59/22A, First Main Road, Jawahar Nagar, Chennai-600082.

251. Purasai Benefit Fund Limited, 60 (Old No. 169), Vellala Street, Purasawalkam, Chennai-600084.

252. Dhana Chakra Permanent Fund (India) Limited, Door No. 3-57/1, Opp. Vinayaka Temple, Main Road, Kondapalli-521228, Vijayawada, Andhra Pradesh.

253. Vijaya Krishna Benefit Fund Limited, Gajavalli Mansions, 11-14-5, Opp. S.B.I. Velagaletivari Street, Vijayawada-520001, Andhra Pradesh.

254. Rani Mangammal Benefit Fund Limited, 160, Big Bazar Street, Trichy-620008, Tamil Nadu.

255. Sree Varadaraja Benefit Fund Limited, New No. 149/1, Old No. 63/1 Purasawalkam High Road, Purasawalkam, Chennai-600007.

256. Sri Kaalihambal Benefit Fund Limited, No. 281/18, T.H. Road, Chennai-600021.

257. Coastal Permanent Fund Limited, 11-62-125, Canal Road, Vijayawada-520001, Andhra Pradesh.

258. Nachhiarkoil Town Benefit Fund Ltd., 5/3, North Street, Nachhiarkoil-612 602, Tamilnadu.

259. Business Benefit Company Limited, Transworld Towers, Business Lane, Andamukkam, Beach Road, Kollam-1, Kerala.

260. Kothattai Benefit Fund Limited, 369/1, Main Road, Pennadam-606 105, Tamilnadu.

261. Brindavan Nagar Benefit Fund Limited, Sree Venkateswara Nilayam, No. 71, Mahalakshmi Nagar, 5th Cross Street, Brindavan Nagar, Adambakkam, Chennai-600 088, Tamilnadu.

262. Sri Ambal Benefit Fund Limited, No. 6, Mela Sannadhi Street, Vedaranyam, Tamilnadu.

263. Erode Benefit Fund Limited, 116, Bazaar Street, Kavindapadi-638 455, Erode (RMS), Tamilnadu.

264. Sri Mangalam Benefit Fund Limited, 139, T.H. Road, Kaladipet, Thiruvottiyur, Chennai-19, Tamilnadu.

265. Sri Veerabathira Benefit Fund Limited, 76, Nanayakara Street, Nagapattinam-611 011, Tamilnadu.

266. Madras Harbour Benefit Fund Limited, New No. 5, (Old No. 9) Nyniappn Street, (behind Broadway Theatre), Mannady, Chennai-600 001, Tamilnadu.

267. Kumari Christavar Benefit Fund Limited, III-A, Joshua Street, Nagercoil-629 001, Tamilnadu.

268. Kannadasan Nagar Benefit Fund Limited, New No. 144-A, (Old No. 32A), T.H. Road, M.R. Nagar, Kodungaiyur, Chennai-600 118.

269. Kanya Benefit Fund Limited, ‘Sat Anugraha’, Cross Road, North Car Street, Nagercoil-629 001, Tamilnadu.

270. Hold & Grow Benefit Funds Limited, 1st Floor, Kamalam Complex, No. 8-B, Dr. Besant Road, Kumbakonam-612 001, Tamilnadu.

271. Kundavai Benefit Fund Limited, 180/2435, South Main Street, Thanjavur-613 009, Tamilnadu.

272. Koyambedu Permanent Fund Limited, 853, Sixth Avenue, 13th Main Road Junction, Anna Nagar West, Chennai - 600 040, Tamilnadu.

273. Shree Vijayaram Benefit Fund Limited, Plot No. B4/4, 1st Floor, 80 Feet Road, Anna Nagar, Madurai - 625 020, Tamilnadu.

274. Suriyan Benefit Fund (Madras) Limited, New No. 46, (Old No. 487), Mint Street, Chennai-600 079, Tamilnadu.

275. Woriur Benefit Fund Limited, 116, Walaja Road, Woriur, Trichy-620 003, Tamilnadu.

276. Panruti Benefit Funds Limited, 124/4, V.O.C. Street, Panruti-607 106, Tamilnadu.

277. Vaitheeswarankoil Benefit Fund Limited, 6/7, Senbagavalli Street, Vaitheeswarankoil 609 117, Nagapattinam District, Tamilnadu.

278. Dew Drop Benefit Fund Limited, 10, 45th Street, 9th Avenue, Ashok Nagar, Chennai-600 083, Tamilnadu.

279. Teachers’ Welfare Credit & Holding Limited, 10/99, Bejoygarh, Jadavpur, Calcutta - 700 092.

280. Saligramam Benefit Fund Limited, No. 7-D, Arunachalam Road (Upstairs), Saligramam, Chennai - 600 093, Tamilnadu.

281. Pegasus Permanent Fund Limited, 3-6-736 & 737, Street No. 12, Himayatnagar, Hyderabad-500 029, Andhra Pradesh.

282. A.S.S. Benefit Fund Limited, Checkittavilai, Vattakottai, Mangarai, P.O. 629 157, Tamilnadu.

283. Central Madras Benefit Fund Limited, CMBF Maaligai, P-7 M.M.D.A. Colony, (Arumbakkam), Chennai - 600 106, Tamilnadu.

284. East Gate Benefit Fund Limited, 126-A, Pampatti Street, East Gate, Thanjavur-613 001, Tamilnadu.

285. Camp Road Benefit Fund Limited, Sakthi Complex, 201/807, Velachery Road, Selaiyur, Chennai-600 073, Tamilnadu.

286. Ashok Nagar Benefit Fund Limited, New No. 72, Old No. 83/1, 53rd Street, 7th Avenue, Ashok Nagar, Chennai - 600 083, Tamilnadu.

287. Gomukhi Benefit Fund Limited 21-B, Gandhi Road, Kallakurichi-606 202, Villupuram District, Tamilnadu.

288. Social Mutual Benefits Co. Limited, Social Bhawan, Anekant Palace, 29, Rajpur Road, Dehradun - 248 001 (U.A.).

289. Kuzhithurai Benefit Fund Limited, Kazhuvanthitta, Kuzhithurai (P.O.), Kanyakumari District, Tamilnadu.

290. Suresh Benefit Fund Limited, New No. 5, Old No. 2, Kulandai Gramani Street, Purasawakkam, Chennai - 600 084, Tamilnadu.

291. Nagai Sivasakthi Benefit Fund Limited, No. 20, Neela South Street, Nagapattinam - 611 001, Tamilnadu.

SCHEDULE II : MUTUAL BENEFIT SOCIETIES

Every “mutual insurance company” as defined in clause (a) of sub-section (1) of section 95 of the Insurance Act, 1938 (4 of 1938).

Parts II & III of Schedule VI to Companies Act, 1956

Schedule VI

Part II

Requirements as to Profit and Loss Account

1. The provisions of this Part shall apply to the income and expenditure account referred to in sub-section (2) of section 210 of the Act, in like manner as they apply to a profit and loss account, but subject to the modification of references as specified in that sub-section.

2. The profit and loss account—

(a) shall be so made out as clearly to disclose the result of the working of the company during the period covered by the account; and

(b) shall disclose every material feature, including credits or receipts and debits or expenses in respect of non-recurring transactions or transactions of an exceptional nature.

3. The profit and loss account shall set out the various items relating to the income and expenditure of the company arranged under the most convenient heads; and in particular, shall disclose the following information in respect of the period covered by the account :

(i) (a) The turnover, that is, the aggregate amount for which sales are effected by the company, giving the amount of sales in respect of each class of goods dealt with by the company, and indicating the quantities of such sales for each class separately.

(b) Commission paid to sole selling agents within the meaning of section 294 of the Act.

(d) Brokerage and discount on sales, other than the usual trade discount.

(ii) (a) In the case of manufacturing companies,—

(1) The value of the raw materials consumed, giving item-wise break-up and indicating the quantities thereof. In this break-up, as far as possible, all important basic raw materials shall be shown as separate items. The intermediates or components procured from other manufacturers may, if their list is too large to be included in the break-up, be grouped under suitable headings without mentioning the quantities, provided all those items which in value individually account for 10% or more of the total value of the raw material consumed shall be shown as separate and distinct items with quantities thereof in the break-up.

(2) The opening and closing stocks of goods produced, giving break-up in respect of each class of goods and indicating the quantities thereof.

(b) In the case of trading companies, the purchases made and the opening and closing stocks, giving break-up in respect of each class of goods traded in by the company and indicating the quantities thereof.

(c) In the case of companies rendering or supplying services, the gross income derived from services rendered or supplied.

(d) In the case of a company, which falls under more than one of the categories mentioned in (a), (b) and (c) above, it shall be sufficient compliance with the requirements herein if the total amounts are shown in respect of the opening and closing stocks, purchases, sales and consumption of raw material with value and quantitative break-up and the gross income from services rendered is shown.

(e) In the case of other companies, the gross income derived under different heads.

Note 1: The quantities of raw materials, purchases, stocks and the turn-over, shall be expressed in quantitative denominations in which these are normally purchased or sold in the market.

Note 2 : For the purpose of items (ii)(a), (ii)(b) and (ii)(d), the items for which the company is holding separate industrial licences, shall be treated as separate classes of goods, but where a company has more than one industrial licence for production of the same item at different places or for expansion of the licensed capacity, the item covered by all such licences shall be treated as one class. In the case of trading companies, the imported items shall be classified in accordance with the classification adopted by the Chief Controller of Imports and Exports in granting the import licences.

Note 3 : In giving the break-up of purchases, stocks and turnover, items like spare parts and accessories, the list of which is too large to be included in the break-up, may be grouped under suitable headings without quantities, provided all those items, which in value individually account for 10% or more of the total value of the purchases, stocks, or turnover, as the case may be, are shown as separate and distinct items with quantities thereof in the break-up.

(iii) In the case of all concerns having works-in-progress, the amounts for which such works have been completed at the commencement and at the end of the accounting period.

(iv) The amount provided for depreciation, renewals or diminution in value of fixed assets.

If such provision is not made by means of a depreciation charge, the method adopted for making such provision.

If no provision is made for depreciation, the fact that no provision has been made shall be stated and the quantum of arrears of depreciation computed in accordance with section 205(2) of the Act shall be disclosed by way of a note.

(v) The amount of interest on the company’s debentures and other fixed loans, that is to say, loans for fixed periods, stating separately the amount of interest, if any, paid or payable to the managing director, the managing agent, the secretaries and treasurers and the manager, if any.

(vi) The amount of charge for Indian income-tax and other Indian taxation on profits, including, where practicable, with Indian income-tax any taxation imposed elsewhere to the extent of the relief, if any, from Indian income-tax and distinguishing, where practicable, between income-tax and other taxation.

(vii) The amounts reserved for—

(a) repayment of share capital; and

(b) repayment of loans.

(viii) (a) The aggregate, if material, of any amounts set aside or proposed to be set aside, to reserves, but not including provisions made to meet any specific liability, contingency or commitment known to exist at the date as at which the balance sheet is made up.

(b) The aggregate, if material, of any amounts withdrawn from such reserves.

(ix) (a) The aggregate, if material, of the amounts set aside to provisions made for meeting specific liabilities, contingencies or commitments.

(b) The aggregate, if material, of the amounts withdrawn from such provisions, as no longer required.

(x) Expenditure incurred on each of the following items, separately for each item :—

(a) Consumption of stores and spare parts.

(b) Power and fuel.

(d) Repairs to buildings.

(e) Repairs to machinery.

(f) (1) Salaries, wages and bonus.

(2) Contribution to provident and other funds.

(3) Workmen and staff welfare expenses to the extent not adjusted from any previous provision or reserve.

Note 1 : Information in respect of this item should also be given in the balance sheet under the relevant provision or reserve account.

Note 2 **

(g) Insurance.

(h) Rates and taxes, excluding taxes on income.

(i) Miscellaneous expenses :

Provided that any item under which the expenses exceed 1 per cent of the total revenue of the company or Rs. 5,000, whichever is higher, shall be shown as a separate and distinct item against an appropriate account head in the Profit and Loss Account and shall not be combined with any other item to be shown under ‘Miscellaneous expenses’.

(xi) (a) The amount of income from investments, distinguishing between trade investments and other investments.

(b) Other income by way of interest, specifying the nature of the income.

(xii) (a) Profits or losses on investments showing distinctly the extent of the profits or losses earned or incurred on account of membership of a partnership firm to the extent not adjusted from any previous provision or reserve.

Note : Information in respect of this item should also be given in the balance sheet under the relevant provision or reserve account.

(b) Profits or losses in respect of transactions of a kind, not usually undertaken by the company or undertaken in circumstances of an exceptional or non-recurring nature, if material in amount.

(xiii) (a) Dividends from subsidiary companies.

(b) Provisions for losses of subsidiary companies.

(xiv) The aggregate amount of the dividends paid, and proposed, and stating whether such amounts are subject to deduction of income-tax or not.

(xv) Amount, if material, by which any items shown in the profit and loss account are affected by any change in the basis of accounting.

4. The profit and loss account shall also contain or give by way of a note detailed information, showing separately the following payments provided or made during the financial year to the directors (including managing directors) the managing agents, secretaries and treasurers or manager, if any, by the company, the subsidiaries of the company and any other person :—

(i) managerial remuneration under section 198 of the Act paid or payable during the financial year to the directors (including managing directors), the managing agent, secretaries and treasurers or manager, if any;

(ii) expenses reimbursed to the managing agent under section 354;

(iii) commission or other remuneration payable separately to a managing agent or his associate under sections 356, 357 and 358;

(iv) commission received or receivable under section 359 of the Act by the managing agent or his associate as selling or buying agent of other concerns in respect of contracts entered into by such concerns with the company;

(v) the money value of the contracts for the sale or purchase of goods and materials or supply of services, entered into by the company with the managing agent or his associate under section 360 during the financial year;

(vi) other allowances and commission including guarantee commission (details to be given);

(vii) any other perquisites or benefits in cash or in kind (stating approximate money value where practicable);

(viii) pensions, etc.,—

(a) pensions,

(b) gratuities,

(d) compensation for loss of office,

(e) consideration in connection with retirement from office.

4A. The profit and loss account shall contain or give by way of a note a statement showing the computation of net profits in accordance with section 349 of the Act with relevant details of the calculation of the commissions payable by way of percentage of such profits to the directors (including managing directors), the managing agents, secretaries and treasurers or manager (if any).

4B. The profit and loss account shall further contain or give by way of a note detailed information in regard to amounts paid to the auditor, whether as fees, expenses or otherwise for services rendered—

(a) as auditor;

(b) as adviser, or in any other capacity, in respect of—

(i) taxation matters;

(ii) company law matters;

(iii) management services; and

4C. In the case of manufacturing companies, the profit and loss account shall also contain, by way of a note in respect of each class of goods manufactured, detailed quantitative information in regard to the following, namely :—

(a) the licensed capacity (where licence is in force);

(b) the installed capacity; and

Note 1 : The licensed capacity and installed capacity of the company as on the last date of the year to which the profit and loss account relates, shall be mentioned against items (a) and (b) above, respectively.

Note 2 : Against item (c), the actual production in respect of the finished products meant for sale shall be mentioned. In cases where semi-processed products are also sold by the company, separate details thereof shall be given.

Note 3 : For the purposes of this paragraph, the items for which the company is holding separate industrial licences shall be treated as separate classes of goods but where a company has more than one industrial licence for production of the same item at different places or for expansion of the licensed capacity, the item covered by all such licences shall be treated as one class.

4D. The profit and loss account shall also contain by way of a note the following information, namely :—

(a) value of imports calculated on C.I.F. basis by the company during the financial year in respect of :—

(i) raw materials;

(ii) components and spare parts;

(iii) capital goods;

(b) expenditure in foreign currency during the financial year on account of royalty, know-how, professional, consultation fees, interest, and other matters;

(c) value of all imported raw materials, spare parts and components consumed during the financial year and the value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each to the total consumption;

(d) the amount remitted during the year in foreign currencies on account of dividends, with a specific mention of the number of non-resident shareholders, the number of shares held by them on which the dividends were due and the year to which the dividends related;

(e) earnings in foreign exchange classified under the following heads, namely :—

(i) export of goods calculated on F.O.B. basis;

(ii) royalty, know-how, professional and consultation fees;

(iii) interest and dividend;

(iv) other income, indicating the nature thereof.

5. The Central Government may direct that a company shall not be obliged to show the amount set aside to provisions other than those relating to depreciation, renewal or diminution in value of assets, if the Central Government is satisfied that the information should not be disclosed in the public interest and would prejudice the company, but subject to the condition that in any heading stating an amount arrived at after taking into account the amount set aside as such, the provision shall be so framed or marked as to indicate that fact.

6. (1) Except in the case of the first profit and loss account laid before the company after the commencement of the Act, the corresponding amounts for the immediately preceding financial year for all items shown in the profit and loss account shall also be given in the profit and loss account.

(2) The requirement in sub-clause (1) shall, in the case of companies preparing quarterly or half-yearly accounts, relate to the profit and loss account for the period which entered on the corresponding date of the previous year.

Note : Reference to managing agents, secretaries and treasurers should be omitted.

Part III

INTERPRETATION

7. (1) For the purposes of Parts I and II of this Schedule, unless the context otherwise requires,—

(a) the expression “provision” shall, subject to sub-clause (2) of this clause, mean any amount written off or retained by way of providing for depreciation renewals or diminution in value of assets, or retained by way of providing for any known liability of which the amount cannot be determined with substantial accuracy;

(b) the expression “reserve” shall not, subject as aforesaid, include any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets or retained by way of providing for any known liability ;

(c) the expression “capital reserve” shall not include any amount regarded as free for distribution through the profit and loss account; and the expression “revenue reserve” shall mean any reserve other than a capital reserve;

and in this sub-clause the expression “liability” shall include all liabilities in respect of expenditure contracted for and all disputed or contingent liabilities.

(2) Where—

(a) any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets, not being an amount written off in relation to fixed assets before the commencement of this Act; or

(b) any amount retained by way of providing for any known liability;

is in excess of the amount which in the opinion of the directors is reasonably necessary for the purpose, the excess shall be treated for the purposes of this Schedule as a reserve and not as a provision.

8. For the purposes aforesaid, the expression “quoted investment” means an investment as respects which there has been granted a quotation or permission to deal on a recognised stock exchange, and the expression “unquoted investment” shall be construed accordingly.

Articles 243(d) & 243P(e) of Constitution of India

Definitions.

243. **

(d) “Panchayat” means an institution (by whatever name called) of self-Government constituted under article 243B, for the rural areas;

Definitions

243P. **

(e) “Municipality” means an institution of self-Government constituted under article 243Q;

Article 276(2) of Constitution of india

276. (2) The total amount payable in respect of any one person to the State or to any one municipality, district board, local board or other local authority in the State by way of taxes on professions, trades, callings and employments shall not exceed two thousand and five hundred rupees per annum.

Eighth Schedule to the Constitution of India

[Articles 344(1) and 351]

Languages

1.	Assamese.	12.	Manipuri.
2.	Bengali.	13.	Marathi.
3.	Bodo	14.	Nepali.
4.	Dogri	15.	Oriya.
5.	Gujarati.	16.	Punjabi.
6.	Hindi.	17.	Sanskrit.
7.	Kannada.	18.	Santhali.
8.	Kashmiri.	19.	Sindhi.
9.	Konkani.	20.	Tamil.
10.	Maithili	21.	Telugu.
11.	Malayalam.	22.	Urdu.

section 60 of code of civil procedure, 1908

Property liable to attachment and sale in execution of decree.

60. (1) The following property is liable to attachment and sale in execution of a decree, namely, lands, houses or other buildings, goods, money, bank notes, cheques, bills of exchange, hundis, promissory notes, Government securities, bonds or other securities for money, debts, shares in a corporation and, save as hereinafter mentioned, all other saleable property, movable or immovable, belonging to the judgment-debtor, or over which, or the profits of which, he has a disposing power which he may exercise for his own benefit, whether the same be held in the name of the judgment-debtor or by another person in trust for him or on his behalf :

Provided that the following properties shall not be liable to such attachment or sale, namely :—

(a) the necessary wearing-apparel, cooking vessels, beds and bedding of the judgment-debtor, his wife and children, and such personal ornaments as, in accordance with religious usage, cannot be parted with by any woman ;

(b) tools of artisans, and, where the judgment-debtor is an agriculturist, his implements of husbandry and such cattle and seed-grain as may, in the opinion of the Court, be necessary to enable him to earn his livelihood as such, and such portion of agricultural produce or of any class of agricultural produce as may have been declared to be free from liability under the provisions of the next following section ;

(c) houses and other buildings (with the materials and the sites thereof and the land immediately appurtenant thereto and necessary for their enjoyment) belonging to an agriculturist or a labourer or a domestic servant and occupied by him ;

(d) books of account ;

(e) a mere right to sue for damages ;

(f) any right of personal service ;

(g) stipends and gratuities allowed to pensioners of the Government or of a local authority or of any other employer, or payable out of any service family pension fund notified in the Official Gazette by the Central Government or the State Government in this behalf, and political pension ;

(h) the wages of labourers and domestic servants, whether payable in money or in kind ;

(i) salary to the extent of the first one thousand rupees and two-thirds of the remainder in execution of any decree other than a decree for maintenance :

Provided that where any part of such portion of the salary as is liable to attachment has been under attachment, whether continuously or intermittently, for a total period of twenty-four months, such portion shall be exempt from attachment until the expiry of a further period of twelve months, and, where such attachment has been made in execution of one and the same decree, shall, after the attachment has continued for a total period of twenty-four months, be finally exempt from attachment in execution of that decree ;

(ia) one-third of the salary in execution of any decree for maintenance;

(j) the pay and allowances of persons to whom the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957), applies ;

(k) all compulsory deposits and other sums in or derived from any fund to which the Provident Funds Act, 1925 (19 of 1925), for the time being applies, in so far as they are declared by the said Act not to be liable to attachment ;

(ka) all deposits and other sums in or derived from any fund to which the Public Provident Fund Act, 1968 (23 of 1968), for the time being applies, in so far as they are declared by the said Act as not to be liable to attachment ;

(kb) all moneys payable under a policy of insurance on the life of the judgment- debtor ;

(kc) the interest of a lessee of a residential building to which the provisions of law for the time being in force relating to control of rents and accommodation apply ;

(l) any allowance forming part of the emoluments of any servant of the Government or of any servant of a Railway company or local authority which the appropriate Government may, by notification in the Official Gazette, declare to be exempt from attachment, and any subsistence grant or allowance made to any such servant while under suspension ;

(m) an expectancy of succession by survivorship or other merely contingent or possible right or interest ;

(n) a right to future maintenance ;

(o) any allowance declared by any Indian law to be exempt from liability to attachment or sale in execution of a decree ; and

(p) where the judgment-debtor is a person liable for the payment of land-revenue, any movable property which, under any law for the time being applicable to him, is exempt from sale for the recovery of an arrear of such revenue.

Explanation I : The moneys payable in relation to the matters mentioned in clauses (g), (h), (i), (ia), (j), (l) and (o) are exempt from attachment or sale, whether before or after they are actually payable, and, in the case of salary, the attachable portion thereof is liable to attachment, whether before or after it is actually payable.

Explanation II : In clauses (i) and (ia), “salary” means the total monthly emoluments, excluding any allowance declared exempt from attachment under the provisions of clause (l), derived by a person from his employment whether on duty or on leave.

Explanation III : In clause (l) “appropriate Government” means—

(i) as respects any person in the service of the Central Government, or any servant of a Railway Administration or of a cantonment authority or of the port authority of a major port, the Central Government;

(ii) [omitted;]

(iii) as respects any other servant of the Government or a servant of any other local authority, the State Government.

Explanation IV : For the purposes of this proviso, “wages” includes bonus, and “labourer” includes a skilled, unskilled or semi-skilled labourer.

Explanation V : For the purposes of this proviso, the expression “agriculturist” means a person who cultivates land personally and who depends for his livelihood mainly on the income from agricultural land, whether as owner, tenant, partner or agricultural labourer.

Explanation VI : For the purposes of Explanation V, an agriculturist shall be deemed to cultivate land personally, if he cultivates land—

(a) by his own labour, or

(b) by the labour of any member of his family, or

(1A) Notwithstanding anything contained in any other law for the time being in force, an agreement by which a person agrees to waive the benefit of any exemption under this section shall be void.

(2) Nothing in this section shall be deemed to exempt houses and other buildings (with the materials and the sites thereof and the lands immediately appurtenant thereto and necessary for their enjoyment) from attachment or sale in execution of decrees for rent of any such house, building, site or land.

Section 360 of Code of Criminal Procedure, 1973

Order to release on probation of good conduct or after admonition.

360. (1) When any person not under twenty-one years of age is convicted of an offence punishable with fine only or with imprisonment for a term of seven years or less, or when any person under twenty-one years of age or any woman is convicted of an offence not punishable with death or imprisonment for life, and no previous conviction is proved against the offender, if it appears to the Court before which he is convicted, regard being had to the age, character or antecedents of the offender, and to the circumstances in which the offence was committed, that it is expedient that the offender should be released on probation of good conduct, the Court may, instead of sentencing him at once to any punishment, direct that he be released on his entering into a bond, with or without sureties, to appear and receive sentence when called upon during such period (not exceeding three years) as the Court may direct and in the meantime to keep the peace and be of good behaviour :

Provided that where any first offender is convicted by a Magistrate of the second class not specially empowered by the High Court, and the Magistrate is of opinion that the powers conferred by this section should be exercised, he shall record his opinion to that effect, and submit the proceedings to a Magistrate of the first class, forwarding the accused to, or taking bail for his appearance before, such Magistrate, who shall dispose of the case in the manner provided by sub-section (2).

(2) Where proceedings are submitted to a Magistrate of the first class as provided by sub-section (1), such Magistrate may thereupon pass such sentence or make such order as he might have passed or made if the case had originally been heard by him, and, if he thinks further inquiry or additional evidence on any point to be necessary, he may make such inquiry or take such evidence himself or direct such inquiry or evidence to be made or taken.

(3) In any case in which a person is convicted of theft, theft in a building, dishonest misappropriation, cheating or any offence under the Indian Penal Code (45 of 1860) punishable with not more than two years’ imprisonment or any offence punishable with fine only and no previous conviction is proved against him, the Court before which he is so convicted may, if it thinks fit, having regard to the age, character, antecedents or physical or mental condition of the offender and to the trivial nature of the offence or any extenuating circumstances under which the offence was committed, instead of sentencing him to any punishment, release him after due admonition.

(4) An order under this section may be made by any Appellate Court or by the High Court or Court of Session when exercising its powers of revision.

(5) When an order has been made under this section in respect of any offender, the High Court or Court of Session may, on appeal when there is a right of appeal to such Court, or when exercising its powers of revision, set aside such order, and in lieu thereof pass sentence on such offender according to law :

Provided that the High Court or Court of Session shall not under this sub-section inflict a greater punishment than might have been inflicted by the Court by which the offender was convicted.

(6) The provisions of sections 121, 124 and 373 shall, so far as may be, apply in the case of sureties offered in pursuance of the provisions of this section.

(7) The Court, before directing the release of an offender under sub-section (1), shall be satisfied that an offender or his surety (if any) has a fixed place of abode or regular occupation in the place for which the Court acts or in which the offender is likely to live during the period named for the observance of the conditions.

(8) If the Court which convicted the offender, or a Court which could have dealt with the offender in respect of his original offence, is satisfied that the offender has failed to observe any of the conditions of his recognizance, it may issue a warrant for his apprehension.

(9) An offender, when apprehended on any such warrant, shall be brought forthwith before the Court issuing the warrant, and such Court may either remand him in custody until the case is heard or admit him to bail with a sufficient surety conditioned on his appearing for sentence and such Court may, after hearing the case, pass sentence.

(10) Nothing in this section shall affect the provisions of the Probation of Offenders Act, 1958 (20 of 1958), or the Children Act, 1960 (60 of 1960), or any other law for the time being in force for the treatment, training or rehabilitation of youthful offenders.

Section 50 of Customs Act, 1962

Entry of goods for exportation.

50. (1) The exporter of any goods shall make entry thereof by presenting to the proper officer in the case of goods to be exported in a vessel or aircraft, a shipping bill, and in the case of goods to be exported by land, a bill of export in the prescribed form.

(2) The exporter of any goods, while presenting a shipping bill or bill of export, shall at the foot thereof make and subscribe to a declaration as to the truth of its contents.

Section 2(1)(a), (e) and (l) of Depositories act, 1996

Definitions.

2. (1) In this Act, unless the context otherwise requires,—

(a) “beneficial owner” means a person whose name is recorded as such with a depository;

(e) “depository” means a company formed and registered under the Companies Act, 1956 (1 of 1956), and which has been granted a certificate of registration under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);

(l) “security” means such security as may be specified by the Board;

Section 2(d) of Disaster Management act, 2005

Definitions.

2. In this Act, unless the context otherwise requires,—

(d) “disaster” means a catastrophe, mishap, calamity or grave occurrence in any area, arising from natural or man made causes, or by accident or negligence which results in substantial loss of life or human suffering or damage to, and destruction of, property, or damage to, or degradation of, environment, and is of such a nature or magnitude as to be beyond the coping capacity of the community of the affected area;

Section 1 of Employees’ provident funds and miscellaneous provisions Act, 1952

Short title, extent and application.

1. **

(3) Subject to the provisions contained in section 16, it applies—

(a) to every establishment which is a factory engaged in any industry specified in Schedule I and in which twenty or more persons are employed, and

(b) to any other establishment employing twenty or more persons or class of such establishments which the Central Government may, by notification in the Official Gazette, specify in this behalf :

Provided that the Central Government may, after giving not less than two months’ notice of its intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment employing such number of persons less than twenty as may be specified in the notification.

(4) Notwithstanding anything contained in sub-section (3) of this section or sub-section (1) of section 16, where it appears to the Central Provident Fund Commissioner, whether on an application made to him in this behalf or otherwise, that the employer and the majority of employees in relation to any establishment have agreed that the provisions of this Act should be made applicable to the establishment, he may, by notification in the Official Gazette, apply the provisions of this Act to that establishment on and from the date of such agreement or from any subsequent date specified in such agreement.

Section 2 of Foreign Exchange Management Act, 1999

Definitions.

2. In this Act, unless the context otherwise requires,—

(c) “authorised person” means an authorised dealer, money changer, offshore banking unit or any other person for the time being authorised under sub-section (1) of section 10 to deal in foreign exchange or foreign securities;

(h) “currency” includes all currency notes, postal notes, postal orders, money orders, cheques, drafts, travellers cheques, letters of credit, bills of exchange and promissory notes, credit cards or such other similar instruments, as may be notified by the Reserve Bank;

(m) “foreign currency” means any currency other than Indian currency;

(n) “foreign exchange” means foreign currency and includes,—

(i) deposits, credits and balances payable in any foreign currency,

(ii) drafts, travellers cheques, letters of credit or bills of exchange, expressed or drawn in Indian currency but payable in any foreign currency,

(iii) drafts, travellers cheques, letters of credit or bills of exchange drawn by banks, institutions or persons outside India, but payable in Indian currency;

(q) “Indian currency” means currency which is expressed or drawn in Indian rupees but does not include special bank notes and special one rupee notes issued under section 28A of the Reserve Bank of India Act, 1934 (2 of 1934);

(v) “person resident in India” means—

(i) a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year but does not include—

(A) a person who has gone out of India or who stays outside India, in either case—

(a) for or on taking up employment outside India, or

(b) for carrying on outside India a business or vocation outside India, or

(c) for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period;

(B) a person who has come to or stays in India, in either case, otherwise than—

(a) for or on taking up employment in India, or

(b) for carrying on in India a business or vocation in India, or

(c) for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period;

(ii) any person or body corporate registered or incorporated in India,

(iii) an office, branch or agency in India owned or controlled by a person resident outside India,

(iv) an office, branch or agency outside India owned or controlled by a person resident in India;

(w) “person resident outside India” means a person who is not resident in India;

Section 2(jj) of forward contracts (Regulation) Act, 1952

Definitions.

2. In this Act, unless the context otherwise requires,—

(jj) “registered association” means an association to which for the time being a certificate of registration has been granted by the Commission under section 14B;

Section 21 of Indian Penal Code, 1860

“Public servant”.

21. The words “public servant” denote a person falling under any of the descriptions hereinafter following, namely :—

Second - Every Commissioned Officer in the Military, Naval or Air Forces of India;

Third - Every Judge including any person empowered by law to discharge, whether by himself or as a member of any body of persons, any adjudicatory functions;

Fourth - Every officer of a Court of Justice (including a liquidator, receiver or Commis-sioner) whose duty it is, as such officer, to investigate or report on any matter of law or fact, or to make, authenticate, or keep any document, or to take charge or dispose of any property, or to execute any judicial process, or to administer any oath, or to interpret, or to preserve order in the Court, and every person specially authorised by a Court of Justice to perform any of such duties;

Fifth - Every juryman, assessor, or member of a panchayat assisting a Court of Justice or public servant;

Sixth - Every arbitrator or other person to whom any cause or matter has been referred for decision or report by any Court of Justice, or by any other competent public authority;

Seventh - Every person who holds any office by virtue of which he is empowered to place or keep any person in confinement;

Eighth - Every officer of the Government whose duty it is, as such officer, to prevent offences, to give information of offences, to bring offenders to justice, or to protect the public health, safety or convenience;

Ninth - Every officer whose duty it is, as such officer, to take, receive, keep or expend any property on behalf of the Government, or to make any survey, assessment or contract on behalf of the Government, or to execute any revenue-process, or to investigate, or to report, on any matter affecting the pecuniary interests of the Government, or to make, authenticate or keep any document relating to the pecuniary interests of the Government, or to prevent the infraction of any law for the protection of the pecuniary interests of the Government;

Tenth - Every officer whose duty it is, as such officer, to take, receive, keep or expend any property, to make any survey or assessment or to levy any rate or tax for any secular common purpose of any village, town or district, or to make, authenticate or keep any document for the ascertaining of the rights of the people of any village, town or district;

Eleventh - Every person who holds any office by virtue of which he is empowered to prepare, publish, maintain or revise an electoral roll or to conduct an election or part of an election;

Twelfth - Every person—

(a) in the service or pay of the Government or remunerated by fees or commission for the performance of any public duty by the Government;

(b) in the service or pay of a local authority, a corporation established by or under a Central, Provincial or State Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956).

Illustration

A Municipal Commissioner is a public servant.

Explanation 1.—Persons falling under any of the above descriptions are public servants, whether appointed by the Government or not.

Explanation 2.—Wherever the words “public servant” occur, they shall be understood of every person who is in actual possession of the situation of a public servant, whatever legal defect there may be in his right to hold that situation.

Explanation 3.—The word “election” denotes an election for the purpose of selecting members of any legislative, municipal or other public authority, of whatever character, the method of selection to which is by, or under, any law prescribed as by election.

Section 2 of Industrial Disputes Act, 1947

Definitions.

2. In this Act, unless there is anything repugnant in the subject or context,—

(g) “employer” means—

(i) in relation to an industry carried on by or under the authority of any department of the Central Government or a State Government, the authority prescribed in this behalf, or where no authority is prescribed, the head of the department;

(ii) in relation to an industry carried on by or on behalf of a local authority, the chief executive officer of that authority;

(s) “workman” means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person—

(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957); or

(ii) who is employed in the police service or as an officer or other employee of a prison; or

(iii) who is employed mainly in a managerial or administrative capacity; or

(iv) who, being employed in a supervisory capacity, draws wages exceeding one thousand six hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.

Section 11B of Industries (Development and Regulation) Act, 1951

Power of Central Government to specify the requirements which shall be complied with by the small scale industrial undertakings.

11B. (1) The Central Government may, with a view to ascertaining which ancillary and small scale industrial undertakings need supportive measures, exemptions or other favourable treatment under this Act to enable them to maintain their viability and strength so as to be effective in :

(a) promoting in a harmonious manner the industrial economy of the country and easing the problem of unemployment, and

(b) securing that the ownership and control of the material resources of the community are so distributed as best to subserve the common good,

specify, having regard to the factors mentioned in sub-section (2), by notified order, the requirements which shall be complied with by an industrial undertaking to enable it to be regarded, for the purposes of this Act, as an ancillary, or a small scale industrial undertaking and different requirements, may be so specified for different purposes or with respect to industrial undertakings engaged in the manufacture or production of different articles :

Provided that no industrial undertaking shall be regarded as an ancillary industrial undertaking unless it is, or is proposed to be, engaged in :—

(i) the manufacture of parts, components, sub-assemblies, toolings or intermediates; or

(ii) rendering of services, or supplying or rendering, not more than fifty per cent of its production or its total services, as the case may be, to other units for production of other articles.

(2) The factors referred to in sub-section (1) are the following, namely :—

(a) the investment by the industrial undertaking in :—

(i) plant and machinery, or

(ii) land, buildings, plant and machinery;

(b) the nature of ownership of the industrial undertaking;

(d) the nature, cost and quality of the product of the industrial undertaking;

(e) foreign exchange, if any, required for the import of any plant or machinery by the industrial undertaking; and

(f) such other relevant factors as may be prescribed.

(3) A copy of every notified order proposed to be made under sub-section (1) shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the proposed notified order or both Houses agree in making any modification in the proposed notified order, the notified order shall not be made, or as the case may be, shall be made only in such modified form as may be agreed upon by both the Houses.

(4) Notwithstanding anything contained in sub-section (1), an industrial undertaking which, according to the law for the time being in force, fell, immediately before the commencement of the Industries (Development and Regulation) Amendment Act, 1984, under the definition of an ancillary, or small scale industrial undertaking, shall, after such commencement, continue to be regarded as an ancillary, or small scale industrial undertaking for the purposes of this Act until the definition aforesaid is altered or superseded by any notified order made under sub-section (1).

Section 14 of Industries (Development and Regulation) Act, 1951

Procedure for the grant of licence or permission.

14. Before granting any licence or permission under section 11, section 11A, section 13 or section 29B, the Central Government may require such officer or authority as it may appoint for the purpose, to make a full and complete investigations in respect of applications received in this behalf, and report to it the result of such investigation and in making any such investigation, the officer or authority shall follow such procedure as may be prescribed.

Section 2(1)(t) of information technology Act, 2000

Definitions.

2. (1) In this Act, unless the context otherwise requires,—

(t) “electronic record” means data, record or data generated, image or sound stored, received or sent in an electronic form or micro film or computer generated micro fiche;

Section 2 of Insurance Act, 1938

Definitions.

2. In this Act, unless there is anything repugnant in the subject or context,—

(5B) “Controller of Insurance” means the officer appointed by the Central Government under section 2B to exercise all the powers, discharge the functions and performs the duties of the Authority under this Act or the Life Insurance Corporation Act, 1956 (31 of 1956) or the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) or the Insurance Regulatory and Deve-lopment Authority Act, 1999;

(7A) “Indian insurance company” means any insurer being a company—

(a) which is formed and registered under the Companies Act, 1956 (1 of 1956);

(b) in which the aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed twenty-six per cent paid-up equity capital of such Indian insurance company;

Explanation—For the purposes of this clause, the expression “foreign company” shall have the meaning assigned to it under clause (23A) of section 2 of the Income-tax Act, 1961 (43 of 1961);

(9) “insurer” means—

(a) any individual or unincorporated body of individuals or body corporate incorporated under the law of any country other than India, carrying on insurance business not being a person specified in sub-clause (c) of this clause which—

(i) carries on that business in India, or

(ii) has his or its principal place of business or is domiciled in India, or

(iii) with the object of obtaining insurance business, employs a representative, or maintains a place of business, in India;

(b) any body corporate [not being a person specified in sub-clause (c) of this clause] carrying on the business of insurance, which is a body corporate incorporated under any law for the time being in force in India; or stands to any such body corporate in the relation of a subsidiary company within the meaning of the Indian Companies Act, 1913 (7 of 1913), as defined by sub-section (2) of section 2 of that Act, and

(c) any person who in India has a standing contract with underwriters who are members of the Society of Llyod’s whereby such person is authorised within the terms of such contract to issue protection notes, cover notes, or other documents granting insurance cover to others on behalf of the underwriters,

but does not include a principal agent, chief agent, special agent, or an insurance agent or a provident society as defined in Part III;

Section 43 of life Insurance Corporation Act, 1956

Application of the Insurance Act.

43. (1) The following sections of the Insurance Act shall, so far as may be, apply to the Corporation as they apply to any other insurer, namely :—

Sections 2, 2B, 3, 18, 26, 33, 38, 39, 41, 45, 46, 47A, 50, 51, 52, 110A, 110B, 110C, 119, 121, 122 and 123.

(2) The Central Government shall as soon as may be after the commencement of this Act, by notification in the Official Gazette, direct that the following sections of the Insurance Act shall apply to the Corporation subject to such conditions and modifications as may be specified in the notification, namely :—

Sections 2D, 10, 11, 13, 14, 15, 20, 21, 22, 23, 25, 27A, 28A, 35, 36, 37, 40, 40A, 40B, 43, 44, 102 to 106, 107 to 110, 111, 113, 114 and 116A.

(2A) Section 42 of the Insurance Act shall have effect in relation to the issue to any individual of a license to act as an agent for the purpose of soliciting or procuring life insurance business for the Corporation as if the reference to an officer authorised by the Authority in this behalf in sub-section (1) thereof included a reference to an officer of the Corporation authorised by the Authority in this behalf.

(3) The Central Government may, by notification in the Official Gazette, direct that all or any of the provisions of the Insurance Act other than those specified in sub-section (1) or sub-section (2), shall apply to the Corporation subject to such conditions and modifications as may be specified in the notification.

(4) Every notification issued under sub-section (2) or sub-section (3) shall be laid for not less than thirty days before both Houses of Parliament as soon as possible after it is issued, and shall be subject to such modifications as Parliament may make during the session in which it is so laid or the session immediately following.

(5) Save as provided in this section, nothing contained in the Insurance Act shall apply to the Corporation.

Section 3(12) of Merchant Shipping Act, 1958

Definitions.

3. In this Act, unless the context otherwise requires,—

(12) “fishing vessel” means a ship fitted with mechanical means of propulsion which is exclusively engaged in sea fishing for profit;

Section 2 of National Trust for welfare of persons with autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999

Definitions.

2. In this Act, unless the context otherwise requires,—

(a) “autism” means a condition of uneven skill development primarily affecting the communication and social abilities of a person, marked by repetitive and ritualistic behaviour;

(c) “cerebral palsy” means a group of non-progressive conditions of a person characterised by abnormal motor control posture resulting from brain insult or injuries occurring in the pre-natal, perinatal or infant period of development;

(g) “mental retardation” means a condition of arrested or incomplete development of mind of a person which is specially characterised by sub-normality of intelligence;

(h) “multiple disabilities” means a combination of two or more disabilities as defined in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996);

(j) “person with disability” means a person suffering from any of the conditions relating to autism, cerebral palsy, mental retardation or a combination of any two or more of such conditions and includes a person suffering from severe multiple disability;

(o) “severe disability” means disability with eighty per cent or more of one or more of multiple disabilities;

Section 2 of Patents Act, 1970

Definitions and interpretation

2. **

(b) “Controller” means the Controller General of Patents, Designs and Trade Marks referred to in section 73;

(o) “patented article” and “patented process” mean respectively an article or process in respect of which a patent is in force;

(q) “patent of addition” means a patent granted in accordance with section 54;

(y) “true and first inventor” does not include either the first importer of an invention into India, or a person to whom an invention is first communicated from outside India.

Section 4 of Payment of Gratuity Act, 1972

Payment of gratuity.

4. (1) **

(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days’ wages based on the rate of wages last drawn by the employee concerned :

Provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three months immediately preceding the termination of his employment, and, for this purpose, the wages paid for any overtime work shall not be taken into account :

Provided further that in the case of an employee who is employed in a seasonal establishment and who is not so employed throughout the year, the employer shall pay the gratuity at the rate of seven days’ wages for each season.

Explanation.—In the case of a monthly rated employee, the fifteen days’ wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen.

(3) The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand rupees.

Section 2 of Persons with Disabilities (Equal opportunities, Protection of Rights & Full Participation) Act, 1995

Definitions

2. **

(a) “appropriate Government” means,—

(i) in relation to the Central Government or any establishment wholly or substantially financed by that Government, or a Cantonment Board constituted under the Cantonment Act, 1924 (2 of 1924), the Central Government;

(ii) in relation to a State Government or any establishment wholly or substantially financed by that Government, or any local authority, other than a Cantonment Board, the State Government;

(iii) in respect of the Central Co-ordination Committee and the Central Executive Committee, the Central Government;

(iv) in respect of the State Co-ordination Committee and the State Executive Committee, the State Government;

(b) “blindness” refers to a condition where a person suffers from any of the following conditions, namely :—

(i) total absence of sight; or

(ii) visual acuity not exceeding 6/60 or 20/200 (snellen) in the better eye with correcting lenses; or

(iii) limitation of the field of vision subtending an angle of 20 degree or worse;

(i) “disability” means—

(i) blindness;

(ii) low vision;

(iii) leprosy-cured;

(iv) hearing impairment;

(v) locomotor disability;

(vi) mental retardation;

(vii) mental illness;

(l) “hearing impairment” means loss of sixty decibels or more in the better ear in the conversational range of frequencies;

(n) “leprosy-cured person” means any person who has been cured of leprosy but is suffering from—

(i) loss of sensation in hands or feet as well as loss of sensation and paresis in the eye and eye-lid but with no manifest deformity;

(ii) manifest deformity and paresis but having sufficient mobility in their hands and feet to enable them to engage in normal economic activity;

(iii) extreme physical deformity as well as advanced age which prevents him from undertaking any gainful occupation,

and the expression “leprosy-cured” shall be construed accordingly;

(o) “locomotor disability” means disability of the bones, joints or muscles leading to substantial restriction of the movement of the limbs or any form of cerebral palsy;

(p) “medical authority” means any hospital or institution specified for the purposes of this Act by notification by the appropriate Government;

(q) “mental illness” means any mental disorder other than mental retardation;

(r) “mental retardation” means a condition of arrested or incomplete development of mind of a person which is specially characterised by subnormality of intelligence;

(t) “person with disability” means a person suffering from not less than forty per cent of any disability as certified by a medical authority;

(u) “person with low vision” means a person with impairment of visual functioning even after treatment or standard refractive correction but who uses or is potentially capable of using vision for the planning or execution of a task with appropriate assistive device;

(w) “rehabilitation” refers to a process aimed at enabling persons with disabilities to reach and maintain their optimal physical, sensory, intellectual, psychiatric or social functional levels;

Section 56 of Persons with Disabilities (Equal opportunities, Protection of Rights & Full Participation) Act, 1995

Institutions for persons with severe disabilities.

56. (1) The appropriate Government may establish and maintain institutions for persons with severe disabilities at such places as it thinks fit.

(2) Where, the appropriate Government is of opinion that any institution other than an institution, established under sub-section (1), is fit for the rehabilitation of the persons with severe disabilities, the Government may recognise such institution as an institution for persons with severe disabilities for the purposes of this Act :

Provided that no institution shall be recognised under this section unless such institution has complied with the requirements of this Act and the rules made thereunder.

(3) Every institution established under sub-section (1) shall be maintained in such manner and satisfy such conditions as may be prescribed by the appropriate Government.

(4) For the purposes of this section “person with severe disability” means a person with eighty per cent or more of one or more disabilities.

Section 2(e) of Reserve Bank of India Act, 1934

Definitions.

2. In this Act, unless there is anything repugnant in the subject or context,—

(e) “scheduled bank” means a bank included in the Second Schedule ;

Regulation 2(p) of Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

Definitions.

2. In these regulations, unless the context otherwise requires:—

(p) “money market mutual fund” means a scheme of a mutual fund which has been set up with the objective of investing exclusively in money market instruments;

Section 2(ac) of Securities Contracts (Regulation) Act, 1956

Definitions.

2. In this Act, unless the context otherwise requires,—

(ac) “derivative” includes—

(A) a security derived from a debt instrument, share, loan, whether secured or unsecured, risk instrument or contract for differences or any other form of security;

(B) a contract which derives its value from the prices, or index of prices, of underlying securities;

Section 3(1)(ga) of Sick Industrial Companies (Special Provisions) Act, 1985

Definitions.

3. (1) In this Act, unless the context otherwise requires,—

(ga) “net worth” means the sum total of the paid-up capital and free reserves.

Explanation.—For the purposes of this clause, “free reserves” means all reserves credited out of the profits and share premium account but does not include reserves credited out of re-evaluation of assets, write back of depreciation provisions and amalgamation.

Section 17 of Sick Industrial Companies (Special Provisions) Act, 1985

Powers of Board to make suitable order on the completion of inquiry.

17. (1) If after making an inquiry under section 16, the Board is satisfied that a company has become a sick industrial company, the Board shall, after considering all the relevant facts and circumstances of the case, decide, as soon as may be by order in writing, whether it is practicable for the company to make its net worth exceed the accumulated losses within a reasonable time.

(2) If the Board decides under sub-section (1) that it is practicable for a sick industrial company to make its net worth exceed the accumulated losses within a reasonable time, the Board, shall, by order in writing and subject to such restrictions or conditions as may be specified in the order, give such time to the company as it may deem fit to make its net worth exceed the accumulated losses.

(3) If the Board decides under sub-section (1) that it is not practicable for a sick industrial company to make its net worth exceed the accumulated losses within a reasonable time and that it is necessary or expedient in the public interest to adopt all or any of the measures specified in section 18 in relation to the said company it may, as soon as may be, by order in writing, direct any operating agency specified in the order to prepare, having regard to such guidelines as may be specified in the order, a scheme providing for such measures in relation to such company.

(4) The Board may,—

(a) if any of the restrictions or conditions specified in an order made under sub-section (2) are not complied with by the company concerned, or if the company fails to revive in pursuance of the said order, review such order on a reference in that behalf from any agency referred to in sub-section (2) of section 15 or on its own motion and pass a fresh order in respect of such company under sub-section (3);

(b) if the operating agency specified in an order made under sub-section (3) makes a submission in that behalf, review such order and modify the order in such manner as it may deem appropriate.

Section 18 of Sick Industrial Companies (Special Provisions) Act, 1985

Preparation and sanction of schemes.

18. (1) Where an order is made under sub-section (3) of section 17 in relation to any sick industrial company, the operating agency specified in the order shall prepare, as expeditiously as possible and ordinarily within a period of ninety days from the date of such order, a scheme with respect to such company providing for any one or more of the following measures, namely :—

(a) the financial reconstruction of the sick industrial company;

(b) the proper management of the sick industrial company by change in, or take over of, the management of the sick industrial company;

(i) the sick industrial company with any other company, or

(ii) any other company with the sick industrial company;

(hereafter in this section, in the case of sub-clause (i), the other company, and in the case of sub-clause (ii), the sick industrial company, referred to as “transferee company”);

(d) the sale or lease of a part or whole of any industrial undertaking of the sick industrial company;

(da) the rationalisation of managerial personnel, supervisory staff and workmen in accordance with law;

(e) such other preventive, ameliorative and remedial measures as may be appropriate;

(f) such incidental, consequential or supplemental measures as may be necessary or expedient in connection with or for the purposes of the measures specified in clauses (a) to (e).

(2) The scheme referred to in sub-section (1) may provide for any one or more of the following, namely :—

(a) the constitution, name and registered office, the capital, assets, powers, rights, interests, authorities and privileges, duties and obligations of the sick industrial company or, as the case may be, of the transferee company;

(b) the transfer to the transferee company of the business, properties, assets and liabilities of the sick industrial company on such terms and conditions as may be specified in the scheme;

(c) any change in the Board of Directors, or the appointment of a new Board of Directors, of the sick industrial company and the authority by whom, the manner in which and the other terms and conditions on which, such change or appointment shall be made and in the case of appointment of a new Board of Directors or of any director, the period for which such appointment shall be made;

(d) the alteration of the memorandum or articles of association of the sick industrial company or, as the case may be, of the transferee company for the purpose of altering the capital structure thereof or for such other purposes as may be necessary to give effect to the reconstruction or amalgamation;

(e) the continuation by, or against, the sick industrial company or, as the case may be, the transferee company of any action or other legal proceeding pending against the sick industrial company immediately before the date of the order made under sub-section (3) of section 17;

(f) the reduction of the interest or rights which the shareholders have in the sick industrial company to such extent as the Board considers necessary in the interests of the reconstruction, revival or rehabilitation of the sick industrial company or for the maintenance of the business of the sick industrial company;

(g) the allotment to the shareholders of the sick industrial company of shares in the sick industrial company or, as the case may be, in the transferee company and where any shareholder claims payment in cash and not allotment of shares, or where it is not possible to allot shares to any shareholder, the payment of cash to those shareholders in full satisfaction of their claims—

(i) in respect of their interest in shares in the sick industrial company before its reconstruction or amalgamation; or

(ii) where such interest has been reduced under clause (f) in respect of their interest in shares as so reduced;

(h) any other terms and conditions for the reconstruction or amalgamation of the sick industrial company;

(i) sale of the industrial undertaking of the sick industrial company free from all encumbrances and all liabilities of the company or other such encumbrances and liabilities as may be specified, to any person, including a co-operative society formed by the employees of such undertaking and fixing of reserve price for such sale;

(j) lease of the industrial undertaking of the sick industrial company to any person, including a co-operative society formed by the employees of such undertaking;

(k) method of sale of the assets of the industrial undertaking of the sick industrial company such as by public auction or by inviting tenders or in any other manner as may be specified and for the manner of publicity therefor;

(l) transfer or issue of the shares in the sick industrial company at the face value or at the intrinsic value which may be at discount value or such other value as may be specified to any industrial company or any person including the executives and employees of the sick industrial company;

(m) such incidental, consequential and supplemental matters as may be necessary to secure that the reconstruction or amalgamation or other measures mentioned in the scheme are fully and effectively carried out.

(3) (a) The scheme prepared by the operating agency shall be examined by the Board and a copy of the scheme with modification, if any, made by the Board shall be sent, in draft, to the sick industrial company and the operating agency and in the case of amalgamation, also to any other company concerned, and the Board shall publish or cause to be published the draft scheme in brief in such daily newspapers as the Board may consider necessary, for suggestions and objections, if any, within such period as the Board may specify.

(b) The Board may make such modifications, if any, in the draft scheme as it may consider necessary in the light of the suggestions and objections received from the sick industrial company and the operating agency and also from the transferee company and any other company concerned in the amalgamation and from any shareholder or any creditors or employees of such companies :

Provided that where the scheme relates to amalgamation, the said scheme shall be laid before the company other than the sick industrial company in the general meeting for the approval of the scheme by its shareholders and no such scheme shall be proceeded with unless it has been approved, with or without modification, by a special resolution passed by the shareholders of the transferee company.

(4) The scheme shall thereafter be sanctioned, as soon as may be, by the board (hereinafter referred to as the “sanctioned scheme”) and shall come into force on such date as the Board may specify in this behalf :

Provided that different dates may be specified for different provisions of the scheme.

(5) The Board may on the recommendations of the operating agency or otherwise, review any sanctioned scheme and make such modifications as it may deem fit or may by order in writing direct any operating agency specified in the order, having regard to such guidelines as may be specified in the order, to prepare a fresh scheme providing for such measures as the operating agency may consider necessary.

(6) When a fresh scheme is prepared under sub-section (5), the provisions of sub-sections (3) and (4) shall apply in relation thereto as they apply to in relation to a scheme prepared under sub-section (1).

(6A) Where a sanctioned scheme provides for the transfer of any property or liability of the sick industrial company in favour of any other company or person or where such scheme provides for the transfer of any property or liability of any other company or person in favour of the sick industrial company, then, by virtue of, and to the extent provided in, the scheme, on and from the date of coming into operation of the sanctioned scheme or any provision thereof, the property shall be transferred to, and vest in, and the liability shall become the liability of, such other company or person or, as the case may be, the sick industrial company.

(7) The sanction accorded by the Board under sub-section (4) shall be conclusive evidence that all the requirements of this scheme relating to the reconstruction or amalgamation, or any other measure specified therein have been complied with and a copy of the sanctioned scheme certified in writing by an officer of the Board to be a true copy thereof, shall, in all legal proceedings (whether in appeal or otherwise) be admitted as evidence.

(8) On and from the date of the coming into operation of the sanctioned scheme or any provision thereof, the scheme or such provision shall be binding on the sick industrial company and the transferee company or, as the case may be, the other company and also on the shareholders, creditors and guarantors and employees of the said companies.

(9) If any difficulty arises in giving effect to the provisions of the sanctioned scheme, the Board may, on the recommendation of the operating agency or otherwise, by order do anything, not inconsistent with such provisions, which appears to it to be necessary or expedient for the purpose of removing the difficulty.

(10) The Board may, if it deems necessary or expedient so to do, by order in writing, direct any operating agency specified in the order to implement a sanctioned scheme with such terms and conditions and in relation to such sick industrial company as may be specified in the order.

(11) Where the whole of the undertaking of the sick industrial company is sold under a sanctioned scheme, the Board may distribute the sale proceeds to the parties entitled thereto in accordance with the provisions of section 529A and other provisions of the Companies Act, 1956 (1 of 1956).

(12) The Board may monitor periodically the implementation of the sanctioned scheme.

Section 2 of Special Economic Zones Act, 2005

Definitions

2. In this Act, unless the context otherwise requires,—

(g) “Developer” means a person who, or a State Government which, has been granted by the Central Government a letter of approval under sub-section (10) of section 3 and includes an authority and a Co-Developer;

(j) “entrepreneur” means a person who has been granted a letter of approval by the Development Commissioner under sub-section (9) of section 15;

(q) “International Financial Services Centre” means an International Financial Services Centre which has been approved by the Central Government under sub-section (1) of section 18;

(r) “manufacture” means to make, produce, fabricate, assemble, process or bring into existence, by hand or by machine, a new product having a distinctive name, character or use and shall include processes such as refrigeration, cutting, polishing, blending, repair, remaking, re-engineering and includes agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture, viticulture and mining;

(u) “Offshore Banking Unit” means a branch of a bank located in a Special Economic Zone and which has obtained the permission under clause (a) of sub-section (1) of section 23 of the Banking Regulation Act, 1949 (10 of 1949);

(za) “Special Economic Zone” means each Special Economic Zone notified under the proviso to sub-section (4) of section 3 and sub-section (1) of section 4 (including Free Trade and Warehousing Zone) and includes an existing Special Economic Zone;

(zc) “Unit” means a Unit set up by an entrepreneur in a Special Economic Zone and includes an existing Unit, an Offshore Banking Unit and a Unit in an International Financial Services Centre whether established before or established after the commencement of this Act;

Section 2(e) of Trade Unions Act, 1926

Definitions.

2. **

(e) “registered Trade Union” means a Trade Union registered under this Act;

Section 53A of Transfer of Property Act, 1882

Part performance.

53A. Where any person contracts to transfer for consideration any immovable property by writing signed by him or on his behalf from which the terms necessary to constitute the transfer can be ascertained with reasonable certainty,

and the transferee has, in part performance of the contract, taken possession of the property or any part thereof, or the transferee, being already in possession, continues in possession in part performance of the contract and has done some act in furtherance of the contract,

and the transferee has performed or is willing to perform his part of the contract,

then notwithstanding that where there is an instrument of transfer, that the transfer has not been completed in the manner prescribed therefor by the law for the time being in force, the transferor or any person claiming under him shall be debarred from enforcing against the transferee and persons claiming under him any right in respect of the property of which the transferee has taken or continued in possession, other than a right expressly provided by the terms of the contract :

Provided that nothing in this section shall affect the rights of a transferee for consideration who has no notice of the contract or of the part performance thereof.