THE INDUSTRIAL RECONSTRUCTION BANK (TRANSFER OF UNDERTAKINGS AND REPEAL) ACT, 1997
Title : THE INDUSTRIAL RECONSTRUCTION BANK (TRANSFER OF UNDERTAKINGS AND REPEAL) ACT, 1997 Title : THE INDUSTRIAL RECONSTRUCTION BANK (TRANSFER OF UNDERTAKINGS AND REPEAL) ACT, 1997 Year : 1997
6.Concession, etc., to be deemed to have been granted to Company.
6. Concession, etc., to be deemed to have been granted to Company.
With effect from the appointed day, all fiscal and other concessions, licences, benefits, privileges and exemptions granted to the
Reconstruction Bankin conn ection with the affairs and business of the
Reconstruct ion Ba nk underany law for the time being in force shall be deemed to have been granted to the Company.
7.Tax exemption or benefit to continue to have effect.
7. Tax exemption or benefit to continue to have effect.
(1) Notwithstanding anything contained in the Income-tax Act, 1961 (43.of 1961) or any other enactment for the time being in force relating to tax or income, profits or gains, the Company sall not be liable to pay income-tax or any other tax for a period of five years computed from the appointed day in respect of any income, profits or gains derived, or any amount received by the Company.
(2) The transfer and vesting of the undertakings or any part thereof in terms of section 3 shall not be construed as a transfer within the meaning of the Income-tax Act, 1961 (43 of 1961) for the purposes of capital gains.
8.Guarantee to be operative.
8. Guarantee to be operative.
Any guarantee given for or in favour of the Reconstruction Bank with respect to any loan, lease finance or other assistance shall continue to be operative in relation to the Company.
9.Arrangement with Company on appointment of dire ctors to prevail.
9. Arrangement with Company on appoi ntment of directors to prevail.
(1) Where any arrangement entered into by the company with an industrial or other concern providesf or the appointment by the company of one or more direct ors of such concern, such provision and any appointment of directors made in pursuance thereof shall be valid and effective notwithstanding anything to the contrary contained in the Companies Act, 1956 (1 of 1956) or in any other law for the time being in force or in the memorandum, articles of association or any other instrument relating to such concern, and any provisions regarding share qualification , age limit, number of directorship, removal from office of directors and such like conditions contained in any such law or instrument aforesaid, shall not apply to any director appointed by the company in pursuance of the arrangement as aforesaid.
(2) Any director appointed in pursuance of sub-section (1) shall-
(a) hold office during the pleasure of the company and may be removed or substituted by any person by order in writing by the company;
(b) not incur any obligation or liability by reason only of his being a director or for anything done or omitted to be done in good faith in the discharge of his duties as a director or anything in relation thereto;
(c) not be lia ble to retirement by rotation and shall not be taken into account for computing the number of directors liable to such retirement.
10.Act 18 of 1891 to apply to the Books of Company.
10. Act 18 if 1891 to apply to the books of Company.
The Company shall be deemed to be a bank for the purposes of the
Bankers Books Evidence Act, 1891.11.Shares, bonds and debentures to be deemed to be approved securities.
11. Shares, bonds and debentures to be deemed to be approved securities.
Notwithstanding anything contained in an y other law for the time shall being in force, the shares, bonds and debentures of the Company by deemed to be appr oved securities for th epurposes of the Indian
Trusts Act, 1882 (2 of 1882), the Insurance Act, 1938 (4 of 1938) and the Banking Regulation Act, 1949 (10 of 1949).
12.Substitution in Acts, rules or regulations of company in place ofthe
12. Substitution in Acts, rules or regulations of company in place of the Reconstruction Bank.
In every act, rule or regulation in force on the appointed day,-
(a) for the words "Industrial Reconstruction Bank of India", wherever they occur, the words "Industrial Investment Bank of India Limited"
shall be substituted;
(b) for the words "Reconstruction Bank", wherever they occur, the words "Industrial Investment Bank" shall be substituted.
13.Repeal and saving of Act 62 of 1984.13. Repeal and saving of Act 62 of 1984.(1) On the appointed day, the Industrial Reconstruction Bank of
India Act, 1984 shall stand repealed.
(2) Notwithstanding the repeal of the Industrial Reconstruction
Bank of India Act, 1984,-
(a) the Company shall, so far as may be, comply with the provisions of
Chapter VII of the Act so repealed for any of the purposes related to the annual accounts and audit of the Reconstruction Bank;
(b) the provisions of Chapter VIII of the Act so repealed will continue to beapplicable in respect of the arrangements entered by the
Reconstruction Bank with an industrial concern under section 18.thereofup to the appointed day and t he Company will be entitled to act upo n and enforce the same as fully and effectually as if this Act had notbee enacted.
AMENDMENT TO THE INDUSTRIAL RECONSTRUCTION BANK OF INDIA ACT, 1984.
Last updated on May, 2015
Year : 1997
Any person who,-
(a) having in his possession or custody or under his control any property forming part of the society, wrongfully withholds such property from the Administrator or any person authorised under this
(b) wrongfully obtains possession of any such property, or
(c) wilfully retains, or fails to deliver, any property forming part of the society or removes or destroys it, or
(d) wilfully withholds or fails to account for any books, papers, works of art or other documents which may be in his possession or custody or under his control to the Administrator or any person authorised under this Act, or
(e) fails, without any reasonable cause, to furnish information or particulars as provided in sub-section (6) of section 4,
shall be punished with imprisonment for a term which mayextend to two years, or with fine which may extend to ten thousand rupees, or with both.
9.Offences by companies.
9. Offences by companies.
(1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charged of, and was responsible to, the company for te conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation.-For the purposes of this section,-
(a) "company" means any body corporate and include a firm or other association of individuals; and
(b) "director", in relation to a firm, means a partnet in the firm.
10.Exclusion of period of operation of Act.
10. Exclusion of period of operation of Act.
Inc computing the period of limitation prescribed by any law for the time being in force for any suit or application against any person by the society in respect of any matter arising out of any transaction in relation to its management, the time during which this Act is in force shall be excluded.
11.Act to have overriding effect.
11. Act to have overriding effect.
The provisions of this Act or any notification, order or rule made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any law other than this Act or in any instrument having effect by virtue of any law other than this Act or in any decree or order of any court.
12.Protection of action taken in good faith.
12. Protection of action taken in good faith.
(1) No suit, prosecution or other legal proceeding shall against the
Administrator or any officer of the Central Government or any other person for anything which is in good faith done or intended to be done under this Act.
(2) No Suit or other legal proceeding shall lie against the Central
Government or the Administrator or any officer of the Central
Government or any other person for any damage caused or likely to be caused by anything which is in good faith done or intended to be done under this Act.
13.Contracts in bad faith may be cancelled or varied.
13. Contracts in bad faith may be cancelled or varied.
(1) If the Central Government is satisfied, after such inquiry as it may think fit, that any contract or agreement entered into at any time within one year immediately proceeding the commencement of this Act, between the society and any other person, in so far as such contract or agreement relates to the management of the society, has been entered into in bad faith, or is detrimental to the interests of the society, it may make an order cancelling or varying (either unconditionally or subject to such conditions as it may think fit to impose) such contract or agreement and thereafter the contract or agreement shall have effect accordingly:
Provided that no contract or agreement shall be cancelled or varied except after giving to the parties to the contract or agreement a reasonable opportunity of being heard.
(2) Any person aggrieved by an order under sub-section (1) may make an application to the High Court at Delhi for the variation or reversal of such order and thereupon such court may confirm, modify or reverse such order.
14.Power to terminate contract of employment.
14. Power to terminate contract of employment.
If the Administrator is of opinion that any contract of employment entered into by the society in relation to its management, at any time before the commencement of this Act, is unduly onerous, he may, by giving to the employee one months notice in writing or the salary or wages for one month in lieu thereof, terminate such contract of employment.
15.Power to make rules.
15. Power to make rules.
(1) The Central Government may, by notification in the Official
Gazette, make rules for carrying out the provisions of this Act.
(2) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of
Parliament while it is 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 sessions or the successive sessions aforesaid, both House agree in making any modification in the rule or bothHouses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
16.Repeal and saving.
16. Repeal and saving.
(1) The Lalit Kala Akadami (Taking Over of Management) Ordinance, 1997.is hereby repealed.
(2) Notwithstanding the repeal of the Lalit Kala Akadami (Taking Over of Management) Ordinance, 1997, anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of this Act.
K.L. MOHANPURIA, Secy, to the Govt. of India.
Last updated on May, 2015