Deposit Insurance Corporation (Amendment and Miscellaneous Provisions) Act,1978
Act No : 21
Section :
Power of Central Government to authorise a person or body of personsto take over the management of the Company.
7. Power of Central Government to authorise a person or body of persons to take over the management of the Company. (1) The Central Government may, at any time after the commencement of this Act, authorise a person or body of persons to take over the management of the affairs of the Company; and, when any person or body of persons is so authorised, it shall be the duty of such person or body of persons to bring the operations of the Company to a close, realise the amount payable to the Company under section 6, and distribute such amount amongst the creditors of the Company in due course of administration and, if there is a surplus, amongst the contributories of the Company in accordance with their rights and interests and, after such realisation and distribution, to obtain an order of the Central Government for the dissolution of the Company. (2) For the purposes of sub-section (1), the person or body of persons authorised under that sub-section shall have such of the powers and duties of the Official Liquidator, appointed under the Companies Act, 1956 (1 of 1956), as are necessary to give effect to the provisions of that sub-section as if the Company were being wound up by the court, and, for this purpose, the provisions of the Companies Act, 1956, shall apply subject to the modification that for the word "Court", wherever it occurs, the words "Central Government" shall be substituted. (3) When any person or body of persons is authorised by the Central Government under sub-section (1), to take over the management of the affairs of the Company,-- (a) the provisions of the Companies Act, 1956 (1 of 1956), or of any other law for the time being in force or any instrument having effect by virtue of any such Act or other law shall, in so far as they are inconsistent with the provisions of this Act, cease to apply to, or in relation to, the Company; (b) all persons in charge of the management, including any person holding office as manager, director or secretary of the Company, immediately before the authorisation of such person or body of persons, shall be deemed to have vacated their offices as such. (4) As soon as the affairs of the Company have been wholly wound up, the person or body of persons, authorised under sub-section (1), shall submit his or their duly audited final accounts to the Central Government and shall apply to that Government for orders as to the dissolution of the Company. (5) The Central Government shall, after hearing such person as it may think fit, and upon perusing the accounts as audited, if satisfied that the 353 affairs of the Company have been wholly wound up, make an order that the Company be dissolved from the date of the order and the Company shall stand dissolved accordingly. (6) The Central Government may also make an order relating to-- (a) the application, subject to the provisions of the Companies Act, 1956 (1 of 1956), of the balance in the hands of the person or body of persons authorised under sub-section (1); or (b) the payment of such balance into the general revenue account of the Central Government; and (c) the disposal of the books and papers of the Company. (7) A copy of the order made by the Central Government for the dissolution of the Company shall be filed by the re-named Corporation with the Registrar of Companies within thirty days from the date of such order and the Registrar of Companies shall give effect to the said order as if it were an order made by the court for the dissolution of the Company. (8) The provisions of this section shall have effect 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. Section 8 and 9 amend the Deposit Insurance Corporation Act, 1961 and the Reserve Bank of India Act, 1934 respectively and as such not printed here.
Read All Comments
