3. Transfer and vesting of shares of the Company in the Central Government.—(1) On the
appointed day, all the shares of the Company shall, by virtue of this Act, stand transferred to, and vest in,
the Central Government.
(2) The Central Government shall be deemed, on and from the appointed day, to have been registered
in the Register of members of the Company as the holder of each share which stands transferred to, and
vested in, it by virtue of the provisions of sub-section(1).
(3) All the shares which have vested in the Central Government under sub-section (1), shall, by force
of such vesting, be freed and discharged of all trusts, liabilities, obligations, mortgages, charges, liens and
other encumbrances affecting them, and any attachment, injunction or any decree or order of the court,
tribunal or other authority restricting the use of such shares in any manner, shall be deemed to have been
withdrawn.
(4) For the removal of doubts, it is hereby declared that the provisions of sub-sections (1) and (2)
shall not be deemed to affect—
(a) any right of the Company subsisting, immediately before the appointed day, against any
shareholder to recover from such shareholder any sum of money on the ground that the shareholder
has not paid or credited to the Company the whole or any part of the value of the shares held by him,
or on any other ground whatsoever; or
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(b) any right of the shareholder subsisting, immediately before the appointed day, against the
Company to receive any dividend or other payment due from the Company.
4. Management of the Company.—For the purpose of enabling the Company to function as a
Government company, the Central Government may, by notification, make such provisions (including
changes in the Board of Directors, and amendments in the memorandum and articles of association, of the
Company) as it may consider necessary and the provisions so made shall have effect notwithstanding
anything contained in the Companies Act, 1956 (1 of 1956).
5. Payment of amounts.—(1) For the transfer to, and vesting in, the Central Government, under
section 3, of the shares of the Company, there shall be given by the Central Government to the
shareholders of the Company, in cash and in the manner specified in section 7, an amount of rupees
twenty-two lakhs and sixty thousand.
(2) The amount, referred to in sub-section (1), shall carry simple interest at the rate of four percent.
per annum for the period commencing on the appointed day and ending on the date on which payment of
such amount is made by the Central Government to the Commissioner.
6. Appointment of Commissioner of Payments.—(1) The Central Government shall, for the
purpose of disbursing the amounts payable to shareholders of the Company under section 5, by
notification, appoint a Commissioner of Payments.
(2) The Central Government may appoint such other persons as it may think fit to assist the
Commissioner and thereupon the Commissioner may authorise one or more of such persons also to
exercise all or any of the powers exercisable by him under this Act, and different persons may be
authorised to exercise different powers.
(3) Any person authorised by the Commissioner to exercise any of the powers exercisable by the
Commissioner may exercise those powers in the same manner and with the same effect as if they have
been conferred on that person directly by this Act, and not by way of authorisation.
(4) The salaries and allowances of the Commissioner and other persons appointed under this section
shall be defrayed out of the Consolidated Fund of India.
7. Payment by the Central Government to the Commissioner.—(1) The Central Government
shall, within thirty days from the specified date,pay, in cash, to the Commissioner, for payment to the
shareholders of the Company,—
(a) an amount equal to the amount specified in sub-section (1) of section 5; and
(b) an amount equal to the amount determined under sub-section (2) of section 5.
(2) A deposit account shall be opened by the Central Government in favour of the Commissioner, in
the Public Account of India, and every amount paid under this Act to the Commissioner shall be
deposited by him to the credit of the said deposit account and the said deposit account shall be operated
by the Commissioner.
(3) The interest accruing on the amount standing to the credit of the deposit account referred to in
sub-section (2), shall enure to the benefit of the shareholders of the Company.
8. Claims to be made to the Commissioner.—(1) Every shareholder, having a claim in relation to
any share acquired by this Act, shall prefer such claim before the Commissioner within thirty days from
the specified date:
Provided that if the Commissioner is satisfied that the claimant was prevented by sufficient cause
from preferring theclaim within the period of thirty days, he may entertain the claim within a further
period of thirty days and not thereafter.
(2) Every shareholder of a preference share shall have a preferential claim with regard to the amount
paid by the Central Government to the Commissioner.
9. Examination of claims.—On receipt of the claims made under section 8, the Commissioner shall
separately arrange the claims in relation to preference shares and in relation to the ordinary shares and
examine the claims in relation to each such share.
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10. Admission or rejection of claims.—(1) After examining the claims, the Commissioner shall fix a
certain date on or before which every claimant shall file the proof of his claim or be excluded from the
benefit of the disbursements made by the Commissioner.
(2) Not less than fourteen days’ notice of the date so fixed shall be given by advertisement in one
issue of daily newspaper in the English language and in one issue of such daily newspaper in the regional
language as the Commissioner may consider suitable, and every such notice shall call upon the claimant
to file the proof of his claim with the Commissioner within the time specified in the advertisement.
(3) Every claimant, who fails to file the proof of his claim within the time specified by the
Commissioner, shall be excluded from the disbursements made by the Commissioner.
(4) The Commissioner shall, after such investigation as may, in his opinion, be necessary, and after
giving the Company an opportunity of refuting the claim and after giving the claimant a reasonable
opportunity of being heard, in writing, admit or reject the claim in whole or in part.
(5) The Commissioner shall have the power to regulate his own procedure in all matters arising out of
the discharge of his functions, including the place or places at which he will hold his sittings and shall, for
the purpose of making an investigation under this Act, have the same powers as are vested in a civil court
under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following
matters, namely:—
(a) the summoning and enforcing the attendance of any witness and examining him on oath;
(b) the discovery and production of any document or other material object producible as
evidence;
(c) the reception of evidence on affidavits;
(d) the issuing of any commission for the examination of witnesses.
(6) Any investigation before the Commissioner shall be deemed to be a judicial proceeding within the
meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Commissioner shall be
deemed to be a civil court for the purposes of section 345 and Chapter XXVI of the Code of Criminal
Procedure, 1973 (2 of 1974).
(7) A claimant, who is dissatisfied with the decision of the Commissioner, may prefer an appeal
against the decision to the principal civil court of original jurisdiction within the local limits of whose
jurisdiction the registered office of the Company is situated.
11. Disbursement of money by the Commissioner to claimants.—(1) After admitting a claim
under this Act, the amount due in respect of each share acquired by virtue of this Act shall be paid by the
Commissioner at the rate of rupees ten per preference share, and at the rate of fifty paise per ordinary
share to the person or persons to whom such sums are due, and on such payment, the liability of the
Central Government in respect of the share so acquired shall stand discharged.
(2) The Commissioner shall also apportion amongst the share-holders, the amount paid to him by way
of interest under sub-section (3) of section 7, and such apportionment shall be made on the basis of the
amount due to each shareholder.
12. Undisbursed or unclaimed amount to be deposited to the general revenue account.—Any
money paid to the Commissioner which remains undisbursed or unclaimed on the date immediately
preceding the date on which the office of the Commissioner is finally wound up, shall be transferred by
the Commissioner before his office is finally would up to the general revenue account of the Central
Government; but a claim to any money so transferred may be preferred to the Central Government by the
person entitled to such payment and shall be dealt with as if such transfer had not been made, the order, if
any, for payment of the claim being treated as an order for the refund of revenue.
13. Power of inspection.—For the purposes of ascertaining whether any person claiming payment
under this Act is a shareholder, the Commissioner shall have the right to—
(a) require any person, having the possession, custody or control, of any register or record of the
Company, to produce such register or record before the Commissioner,
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(b) require any person to make any statement or furnish any information which may be required
by the Commissioner.
14. Power of Commissioner to inquire into disputes as to amount.—Where there is any dispute as
to the person or persons who are entitled to any amount payable under this Act (including any dispute as
to who are the legal representatives of any deceased claimant to the amount), the Commissioner may,
after making such inquiry as he may deem fit, make the payment to such person as appears to him to be
best entitled to receive the amount:
Provided that if the Commissioner is unable to determine as to who is the person entitled to the
amount and considers that the matter could more appropriately be dealt with by the principal civil of
original jurisdiction within the local limits of whose jurisdiction the registered office of the Company is
situated, he may refer such dispute to the said court, whose decision thereon shall be final:
Provided further that nothing contained herein shall affect the liability of any person, who may
receive the whole or any part of the amount allowed under this Act, to pay the same to the person lawfully
entitled thereto.
15. Deposit of amount in court.—Where any dispute has been referred under section 14 by the
Commissioner to the civil court referred to therein, he shall deposit the amount in that court.