Shipping Development Fund Committee (Abolition) Act,1986
Act No : 66
Section :
Power of Central Government to call for repayment before agreedperiod.
8. Power of Central Government to call for repayment before
agreed period. Notwithstanding anything contained in any other law for
the time being in force or anything in any agreement to the contrary,
the Central Government may, by notice in writing, require a shipowner
to whom the Committee had granted any financial assistance at any time
before the appointed day, to discharge forthwith in full his entire
dues and also discharge his other liabilities to the Central
Government, if--
(a) it appears to the Central Government that false or
misleading information in any material particular was given by
the shipowner for the purpose of procuring or for continuing to
procure the benefit of such financial assistance; or
(b) the shipowner has failed to comply with the terms of his
agreement with the Committee; or
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(c) there is a reasonable apprehension that the shipowner is
unable to pay his debts or, that proceedings for liquidation have
been or may be commenced against the shipowner; or
(d) the Central Government has reason to believe that the
shipowner has not used or applied the financial assistance
granted by the Committee strictly for the purpose for which it
was granted or has otherwise misapplied or misappropriated the
same for wrongful gain; or
(e) the property assigned, charged, hypothecated, mortgaged
or pledged to the Committee as security for financial assistance
is not insured or kept insured by the shipowner to the
satisfaction of the Central Government, or if such property has
depreciated in value to such an extent that, in the opinion of
the Central Government, further security to the satisfaction of
the Central Government should be given and such security is not
given; or
(f) without the permission of the Central Government any
ship, machinery, plant or other property, whether forming part of
the security or otherwise, is removed by such shipowner without
being replaced; or
(g) for any other reason, it is necessary so to do to
protect the interests of the Central Government.
Explanation.--For the purposes of this Act, "financial
assistance" shall include any loan, advance or monetary assistance
including any guarantee or counter-guarantee given to the shipowner by
the Committee at any time before the appointed day.
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