THE METAL CORPORATION (NATIONALISATION AND MISCELLANEOUS 

PROVISIONS) ACT, 1976                                                                                                                                        

_______ 

ARRANGEMENT OF SECTIONS                                                                                                            

SECTIONS 

1. Short title and commencement. 

2. Definitions. 

3. “Undertaking”—meaning of. 

________ 

CHAPTER I 

PRELIMINARY 

CHAPTER II 

TAKING OVER OF MANAGEMENT OF THE UNDERTAKING OF THE METAL CORPORATION 

4. Taking over of management of the undertaking of the Metal Corporation. 

5. Appointment of Administrator to take over the management of the undertaking. 

6. Application of Act 1 of 1956. 

CHAPTER III 

ACQUISITION OF THE UNDETAKING OF THE METAL CORPORATION 

7. Vesting of the undertaking of the Metal Corporation in the Central Government. 

8. Central Government to be the lessee of the State Government. 

9. Power of Central Government to direct vesting of the undertaking of the Metal Corporation in 

a Government company. 

CHAPTER IV 

PAYMENT OF AMOUNTS 

10. Payment of amount for deprivation of management. 

11. Payment of amount for acquisition of the undertaking. 

12. Time of payment. 

CHAPTER V 

MANAGEMENT, ETC., OF THE UNDERTAKING OF THE METAL CORPORATION 

13. Management, etc., of the undertaking. 

CHAPTER VI 

PROVISIONS RELATING TO EMPLOYEES OF THE METAL CORPORATION 

14. Provisions relating to employees. 

15. Provident and other funds. 

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CHAPTER VII 

MISCELLANEOUS 

SECTIONS 

16. Act to have overriding effect. 

17. Contracts in bad faith may be cancelled or varied. 

18. Protection of action taken in good faith. 

19. Delegation of powers. 

20. Penalties. 

21. Offences by companies. 

22. Power to make rules. 

23. Power to remove difficulties. 

24. Abolition of Tribunal, etc. 

25. Repeal of Ordinance and saving. 

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THE METAL CORPORATION (NATIONALISATION AND MISCELLANEOUS 
PROVISIONS) ACT, 1976 

ACT NO. 100 OF 1976 

[7th September, 1976.] 

An  Act  to  provide  for  the  taking  over  of  the  management  of  the  undertaking  of  the  Metal 
Corporation, after such undertaking is deemed to have been transferred to, and re-vested in, 
the  said  Corporation,  and  for  the  subsequent  acquisition  of  the  undertaking  of  the  Metal 
Corporation  for  the  purpose  of  enabling  the  Central  Government,  in  the  public  interest,  to 
exploit to the fullest extent possible, the zinc and lead deposits in and around Zawar area in 
the  State  of  Rajasthan  and  to  utilise  those  minerals  in  such  manner  as  to  subserve  the 
common good, and for matters connected therewith or incidental thereto. 

BE it enacted by Parliament in the Twenty-seventh Year of the Republic of India as follows:— 

CHAPTER I 

PRELIMINARY 

1.  Short  title  and  commencement.—(1)  This  Act  may  be  called  the  Metal  Corporation 

(Nationalisation and Miscellaneous Provisions) Act, 1976. 

(2)  Sections  20  and  21  shall  come  into  force  at  once  and  the  other  provisions  of  this  Act  shall  be 

deemed to have come into force on the 22nd day of October, 1965. 

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

(a) “appointed day” means the 2nd day of August, 1976; 

(b) “commencement of this Act” means the 22nd day of October, 1965; 

(c)  “Metal  Corporation”  means  the  Metal  Corporation  of  India  Limited,  a  company  within  the 

meaning of the Companies Act, 1956 (1 of 1956), and having its registered office at Calcutta; 

(d) “Mineral Concession Rules” means the Mineral Concession Rules, for the time being in force, 
made  by  the  Central  Government  under  the  Mines  and  Minerals  (Regulation  and  Development)     
Act, 1957 (67 of 1957); 

(e) “notification” means a notification published in the Official Gazette; 

(f) “prescribed” means prescribed by rules made under this Act; 

(g)  words  and  expressions  used  in  this  Act  and  not  defined  but  defined  in  the  Companies         

Act, 1956 (1 of 1956), have the meanings respectively assigned to them in that Act. 

3.  “Undertaking”—meaning  of.—For  the  purposes  of  this  Act,  the  undertaking  of  the  Metal 
Corporation  shall  be  deemed  to  include  all  assets,  rights,  leaseholds  (including  mining  leases,  if  any), 
powers, authorities and privileges and all property, movable and immovable, including lands, buildings, 
works,  mines,  workshops,  projects,  smelters,  refineries,  stores,  instruments,  machinery,  locomotives, 
automobiles and other vehicles, mined or extracted zinc or lead ores, concentrates and metals, in process 
or  in  stock  or in  transit,  cash  balances,  cash  in hand, reserve  fund, investments and  book  debts  and  all 
other  rights  and  interests  in,  or  arising  out  of,  such  property  as  were  immediately  before  the  date  of 
commencement  of  this  Act  in  the  ownership,  possession,  power  or  control  of  the  Metal  Corporation, 
whether within or without India, and all books of account, registers, maps, sections, drawings, records of 
survey and all other documents of whatever nature relating thereto; and shall also be deemed to include 
all  borrowings,  liabilities  and  obligations  of  whatever  kind  of  the  Metal  Corporation  in  relation  to  its 
undertaking. 

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TAKING OVER OF MANAGEMENT OF THE UNDERTAKING OF THE METAL CORPORATION 

4.  Taking  over  of  management  of  the  undertaking  of  the  Metal  Corporation.—(1)  On  the 

CHAPTER II 

the  Metal  Corporation  of  India  (Acquisition  of  Undertaking)                      

this  Act, 

commencement  of 
Act,  1966  (36  of  1966),  shall  stand  repealed,  and  on  such  repeal,  the  undertaking  of  the  Metal 
Corporation,  which  had  been  transferred  to,  and  vested  in,  the  Central  Government  by  virtue  of  the 
provisions of section 3 of the Act so repealed, and the undertaking of the Metal Corporation together with 
all its properties, assets, liabilities and obligations specified in sub-section (1) of section 4 of that Act and 
such  other  properties,  assets,  liabilities  and  obligations,  acquired  or  incurred,  for  the  purposes  of  its 
undertaking, after the 22nd day of October, 1965, which stood, by virtue of the provisions of section 12 of 
the  said  Act,  transferred  to,  and  vested  in,  the  Government  company  formed  in  pursuance  of  the 
provisions of section 12 of the Act aforesaid shall, by virtue of the provisions of this Act, be deemed to 
have  been  retransferred  to,  and  re-vested  in,  the  Metal  Corporation,  and,  immediately  thereafter,  the 
management of the undertaking of the Metal Corporation shall be deemed to have been transferred to, and 
vested in, the Central Government. 

(2)  Any  contract,  whether  express  or  implied,  or  other  arrangement,  in  so  far  as  it  relates  to  the 
management  of  the  business  and  affairs  of  the  undertaking  of  the  Metal  Corporation,  and  in  force 
immediately  before  the  commencement  of  this  Act,  shall  be  deemed  to  have  terminated  on  such 
commencement. 

(3) All persons in charge of the management, including persons holding offices as directors, managers 
or in any other managerial capacity specified in section 197A of the Companies Act, 1956 (1 of 1956), of 
the  Metal  Corporation  immediately  before  the  commencement  of  this  Act,  shall  be  deemed  to  have 
vacated their offices as such on such commencement. 

(4)  Notwithstanding  anything  contained  in  any  other  law  for  the  time  being  in  force,  no  person  in 
respect  of  whom  any  contract  of  management  or  other  arrangement  is  terminated  by  reason  of  the 
provisions  of  sub-section  (2)  or  who  ceases  to  hold  office  by  reason  of  the  provisions  contained  in        
sub-section (3), shall be entitled to claim any compensation for the premature termination of the contract 
of management or other arrangement or for the loss of office, as the case may be. 

5.  Appointment  of  Administrator  to  take  over  the  management  of  the  undertaking.—(1)   The 
Central Government may, as soon as it is convenient administratively so to do, appoint, with effect from 
such earlier or later date (not being a date earlier than the commencement of this Act), any person or body 
of persons (including a Government company, whether in existence at the commencement of this Act or 
incorporated  thereafter)  as  the  Administrator  of  the  undertaking  of  the  Metal  Corporation  and  the 
Administrator so appointed shall carry on the management of such undertaking for and on behalf of the 
Central Government. 

(2)  On  the  appointment  of  the  Administrator  under  sub-section  (1),  the  management  of  the 
undertaking  of  the  Metal  Corporation  shall  vest  in  such  Administrator  and  all persons  in  charge  of  the 
management  of  such  undertaking  immediately  before  such  appointment  shall  cease  to  be  in  charge  of 
such management and shall be bound to deliver to the Administrator all assets, books of account, registers 
and other documents in their custody relating to the undertaking of the Metal Corporation. 

(3)  The  Central  Government  may  issue  such  directions  (including  instructions  as  to  initiating, 
defending  or  continuing  any  legal  proceedings  before  any  court,  tribunal  or  other  authority)  to  the 
Administrator  as  to  his  powers  and  duties  as  the  Central  Government  may  deem  desirable  and  the 
Administrator may also apply to the Central Government at any time for instructions as to the manner in 
which  the  management  of  the  undertaking  of  the  Metal  Corporation,  or  in  relation  to  any  other  matter 
arising in the course of such management, shall be conducted. 

(4)  Where  any  property,  the  management  of  which  has  vested  in  the  Central  Government  under 
section 4, is in the possession, custody or control of any person, such person shall deliver the property to 
the Central Government forthwith. 

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(5) Any person who, at the commencement of this Act, has in his possession or under his control any 
books, papers or other documents relating to the undertaking of the Metal Corporation shall be liable to 
account for such books, papers and other documents to the Administrator and shall deliver them up to the 
Administrator or to such person as may be authorised by the Central Government or the Administrator in 
this behalf. 

(6)  The  Metal  Corporation  shall,  within  such  period  as  the  Central  Government  may  allow  in  this 
behalf,  furnish  to  that  Government  a  complete  inventory  of  all  the  properties  and  assets  (including 
particulars of book debts and investments and belongings) of the Metal Corporation at the commencement 
of this Act, all liabilities and obligations of the Metal Corporation subsisting at such commencement and 
also  of  all  agreements  entered  into  by  the  Metal  Corporation  and  in  force  on  such  commencement, 
including agreements, whether express or implied, relating to leave, pension, gratuity and other terms of 
service of any officer or other employee of the Metal Corporation under which, by virtue of the provisions 
of this Act, the Central Government has, or will have, or may have, liabilities, and for this purpose, the 
Central Government shall afford the Metal Corporation all reasonable facilities. 

(7)  The  Administrator  shall  hold  office  during  the  pleasure  of  the  Central  Government  and  shall 
receive, from the funds of the undertaking of the Metal Corporation such remuneration as may be fixed by 
the Central Government. 

6.  Application  of  Act  1  of  1956.—(1)   Notwithstanding  anything  contained  in  the  Companies        

Act  1956,  or  in  the  memorandum  or  articles  of  association  of  the  Metal  Corporation,  so  long  as  the 
management of the undertaking of the Metal Corporation remains vested in the Central Government,— 

(a)  it  shall  not  be  lawful  for  the  shareholders  of  the  Metal  Corporation  or  any  other  person  to 

nominate or appoint any person to be a director of the Metal Corporation; 

(b) no resolution passed at any meeting of the shareholders of the Metal Corporation on or after 

the commencement of this Act shall be given effect to unless approved by the Central Government; 

(c)  no  proceeding  for  the  winding  up  of  the  Metal  Corporation  or  for  the  appointment  of 
liquidator  or  receiver  in  respect  of  the  undertaking  thereof  shall  lie  in  any  court  except  with  the 
consent of the Central Government. 

(2) Subject to the provisions contained in sub-section (1), and to the other provisions contained in this 
Act and subject to such other exceptions, restrictions and limitations, if any, as the Central Government 
may, by notification, specify in this behalf, the Companies Act, 1956 (1 of 1956), shall continue to apply 
to the Metal Corporation in the same manner as it applied thereto before the date of commencement of 
this Act. 

ACQUISITION OF THE UNDETAKING OF THE METAL CORPORATION 

CHAPTER III 

7. Vesting of the undertaking of the Metal Corporation in the Central Government.—(1) On the 
appointed  day,  the  undertaking  of  the  Metal  Corporation,  and  the  right,  title  and  interest  of  the  Metal 
Corporation  in  relation  to  its  undertaking,  shall  stand  transferred  to,  and  shall  vest  absolutely  in,  the 
Central Government. 

(2) Subject to the other provisions contained in this Act, all property included in the undertaking of 
the Metal Corporation which has vested in the Central Government under sub-section (1) shall, by force 
of such vesting, be freed and discharged from any trusts, obligations, mortgages, charges, liens and other 
incumbrances affecting  it, and  any  attachment, injunction  or  any  decree  or  order  of  a court, tribunal  or 
other  authority  restricting  the  use  of  such  property  in  any  manner  shall  be  deemed  to  have  been 
withdrawn. 

Explanation.—For  the  removal  of  doubts,  it  is  hereby  declared  that  the  mortgagee  of  any  property 
included  in  the  undertaking  of  the  Metal  Corporation,  or  any  other  person  holding  any  charge,  lien  or 
other  interest  in,  or  in  relation  to,  any  such  property,  shall  be  entitled  to  claim,  in  accordance  with  his 
rights and interests, payment of the mortgage money or other dues, in whole or in part, from the Central 

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Government but no such mortgage, charge, lien or other interest shall be enforceable against any property 
which has vested in the Central Government. 

(3)  Subject  to  the  other  provisions  contained  in  this  Act,  all  contracts  and  working  arrangements 
which are subsisting immediately before the appointed day and affecting the Metal Corporation shall, in 
so far as they relate to the undertaking of the Metal Corporation, cease to have effect or be enforceable 
against the Metal Corporation or any person who was surety or had guaranteed the performance thereof 
and shall be of as full force and effect against or in favour of the Central Government and enforceable as 
fully  and  effectually  as  if,  instead  of  the  Metal  Corporation,  the  Central  Government  had  been  named 
therein or had been a party thereto. 

(4) Subject to the other provisions contained in this Act, any proceeding or cause of action pending or 
existing  immediately  before  the  appointed  day  by  or  against  the  Metal  Corporation  or  the  Central 
Government  or  the  Government  company  referred  to  in  section  12  of  the  Metal  Corporation  of  India 
(Acquisition  of  Undertakings)  Act,  1966  (36  of  1966),  in  relation  to  the  undertaking  of  the  Metal 
Corporation may, as from that day, be continued and enforced by or against the Central Government or 
the Government company referred to in section 9, as it might have been enforced by or against the Metal 
Corporation, the Central Government or the Government company, as the case may be, if this Act had not 
been  enacted,  and  shall  cease  to  be  enforceable  by  or  against  the  Metal  Corporation,  its  surety  or 
guarantor. 

8.  Central  Government  to  be  the  lessee  of  the  State  Government.—(1)   Where  the  right  of  the 
Metal  Corporation  under  any  mining  lease  granted,  or  deemed  to  have  been  granted  to  it  by  any  State 
Government  or  any  other  person,  vest  in  the  Central  Government  under  section  7,  the  Central 
Government shall, on and from the date of such vesting, be deemed to have become the lessee of such 
State Government or such other person, as the case may be, in relation to such mine, as if a mining lease 
in respect of such mine had been granted to the Central Government, and the period of such lease shall be 
the  entire period for  which  such lease  could  have  been  granted  by  the  State  Government  or  such other 
person  under  the  Mineral  Concession  Rules,  and,  thereupon  all  the  rights  under  such  mining  lease, 
including  surface,  underground  and  other  rights  granted  to  the  lessee  shall  be  deemed  to  have  been 
transferred to, and vested in, the Central Government. 

(2) On the expiry of the term of any lease referred to in sub-section (1), such lease shall, if so desired 
by the Central Government, be renewed by the State Government or other person on the same terms and 
conditions on which such lease was held immediately before the appointed day by the Metal Corporation, 
for the maximum period for which such lease could be renewed under the Mineral Concession Rules. 

9. Power of Central Government to direct vesting of the undertaking of the Metal Corporation 
in  a  Government  company.—(1)   Notwithstanding  anything  contained  in  section  7,  the  Central 
Government may, if it is satisfied that a Government company is willing to comply, or has complied, with 
such terms and conditions as that Government may think fit to impose, direct, by any order in writing, 
that the undertaking of the Metal Corporation and the right, title and interest of the Metal Corporation in 
relation  to  such  undertaking  shall,  instead  of  continuing  to  vest  in  the  Central Government,  vest  in  the 
Government company either on the date of publication of the direction or on such earlier or later date (not 
being a date earlier than the appointed day), as may be specified in the direction. 

(2) Where the right, title and interest of the Metal Corporation in relation to its undertaking vest in a 
Government  company  under  sub-section  (1),  the  Government  company  shall,  on  and  from  the  date  of 
such  vesting,  be  deemed  to  have  become  the  lessee  in  relation  to  the  mines  of  which  the  Metal 
Corporation  was  the  lessee  as  if  a  mining  lease  in  respect  of  such  mines  had  been  granted  to  the 
Government company, and the period of such lease shall be the entire period for which such lease could 
have  been  granted  under  the  Mineral  Concession  Rules;  and  all  the  rights  and liabilities  of  the  Central 
Government  in  relation  to  such  mines  shall,  on  and  from  the  date  of  such  vesting,  be  deemed  to  have 
become the rights and liabilities, respectively, of the Government company. 

(3) The provisions of sub-section (2) of section 8 shall apply to a lease which vests in a Government 
company as they apply to a lease which has vested in the Central Government and any reference therein 
to the Central Government shall be construed as a reference to the Government company. 

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(4) Any reference hereafter in this Act to the Government company shall be construed as a reference 
to the Government company which is appointed as the Administrator under sub-section (1) of section 5, 
or, as the case may be, the Government company referred to in the direction made under sub-section (1). 

CHAPTER IV 

PAYMENT OF AMOUNTS 

10.  Payment  of  amount  for  deprivation  of  management.—For  the  deprivation  of  the  Metal 
Corporation of the management of its undertaking, there shall be given, in cash, to the Metal Corporation 
by  the  Central  Government,  an  amount,  calculated  at  the  rate  of  rupees  eleven  lakhs  and  thirty-nine 
thousand per annum, for the period commencing on  the 22nd day of October, 1965, and ending on the 
appointed day. 

11. Payment of amount for acquisition of the undertaking.—For the transfer to, and vesting in, the 
Central Government, under section 7, of the right, title and interest of the Metal Corporation in relation to 
its  undertaking,  there  shall  be  given,  in  cash,  by  the  Central  Government  to  the  Metal  Corporation,  an 
amount of rupees one crore and ninety-eight lakhs. 

12. Time of payment.—(1) The amount determined under section 10, and the amount payable under 
section  11,  shall  be  given  by  the  Central  Government  to  the  Metal  Corporation  before  the  expiry  of  a 
period of three months from the appointed day (hereafter referred to as the specified period). 

(2)  The  amount  referred  to  in  sub-section  (1)  shall,  if  not  paid  before  the  expiry  of  the  specified 
period, carry simple interest at the rate of four per cent. per annum, for the period commencing on the 
date of expiry of the specified period and ending on the date on which payment of such amount is made 
by the Central Government to the Metal Corporation: 

Provided  that  no  interest  shall  run  from  the  date  on  which  the  amount  is  tendered  to  the  Metal 

Corporation if the amount so tendered is not accepted by it. 

CHAPTER V 

MANAGEMENT, ETC., OF THE UNDERTAKING OF THE METAL CORPORATION 

13.  Management,  etc.,  of  the  undertaking.—The  general  superintendence,  direction,  control  and 
management of the affairs and business of the undertaking of the Metal  Corporation, the right, title and 
interest  in  relation  to  which  have  vested  in  the  Central  Government  under  section  7,  shall  vest  in  the 
Government company specified in the direction made under sub-section (1) of section 9, and, thereupon 
the Government company shall be entitled to exercise all such powers and do all such things as the Metal 
Corporation is authorised to exercise and do in relation to its undertaking. 

PROVISIONS RELATING TO EMPLOYEES OF THE METAL CORPORATION 

CHAPTER VI 

14.  Provisions  relating  to  employees.—(1)  Every  officer  or  other  employee  of  the  Metal 
Corporation (except a director or any managerial personnel specified in section 197A of the Companies 
Act,  1956  (1  of  1956),  or  any  other  person  entitled  to  manage  the  whole  or  a  substantial  part  of  the 
business  of  the  Metal  Corporation  under  a  special  agreement)  in  the  employment  of  the  Metal 
Corporation  immediately  before  the  commencement  of  this  Act  shall,  in  so  far  as  such  employee  is 
employed  in  connection  with  the  affairs  of  the  undertaking  of  the  Metal  Corporation,  become,  as  from 
such commencement, an officer or other employee, as the case may be, of the Central Government or the 
Government company and shall hold office by the same tenure and at the same remuneration and upon 
the same terms and conditions and with the same rights and privileges as to pension, gratuity and other 
matters  as  he  would  have  held  under  the  Metal  Corporation  if  this  Act  had  not  been  enacted  and  shall 
continue  to  do  so  until  his  employment  under  the  Central  Government  or  the  Government  company  is 
duly  terminated  or  until  his  remuneration,  terms  and  conditions  are  duly  altered  by  the  Central 
Government or the Government company: 

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Provided that if the  alteration  so  made is not  acceptable to any  such  officer  or other  employee,  his 
employment shall be terminated by the Central Government or the Government company on payment of 
an amount equivalent to— 

(a) three months’ remuneration, in the case of permanent employees, and 

(b) one month’s remuneration, in the case of other employees: 

Provided  further  that  nothing  in  this  section  shall  apply  to  any  officer  or  other  employee  who  has, 
within  thirty  days  next  following  the  commencement  of  this  Act,  by  notice  in  writing  to  the  Central 
Government or the Government company, as the case may be, intimated his intention of not becoming an 
officer or other employee of the Central Government or the Government company. 

(2) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947), or in any 
other law for the time being in force, the transfer of the services of any officer or other employee of the 
Metal Corporation to the Central Government or the Government company shall not entitle such officer 
or  other  employee  to  any  compensation  under  that  Act  or  other  law,  and  no  such  claim  shall  be 
entertained by any court, tribunal or other authorities. 

15.  Provident  and  other  funds.—(1)  Where  the  Metal  Corporation  has  established  a  provident, 
superannuation,  welfare  or  other  fund  for  the  benefit  of  the  persons  employed  in  its  undertaking,  the 
monies relatable to the officers or other employees whose services have become transferred by or under 
this Act to the Central Government or the Government company, shall, out of the monies standing, on the 
appointed day, to the credit of such provident, superannuation, welfare or other fund, stand transferred to, 
and vested in, the Central Government or the Government company, as the case may be. 

(2)  The  monies  which  stand  transferred,  under  sub-section  (1),  to  the  Central  Government  or  the 
Government  company,  as  the  case  may  be,  shall  be  dealt  with  by  that  Government  or  Government 
company in such manner as may be prescribed. 

CHAPTER VII 

MISCELLANEOUS 

16.  Act  to  have  overriding  effect.—The  provisions  of  this  Act  shall  have  effect  notwithstanding 
anything inconsistent therewith contained in any other law for the time being in force or in any instrument 
having effect by virtue of any law, other than this Act, or in any decree or order of any court, tribunal or 
other authority. 

17. 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 three 
years  immediately  preceding  the  commencement  of  this  Act  between  the  Metal  Corporation  or  the 
managing  agents  of  Metal  Corporation  and  any  other  person,  in  so  far  as  such  contract  or  agreement 
relates to the undertaking of the Metal Corporation, has been entered into in bad faith or is detrimental to 
the  interests  of  the  undertaking  of  the  Metal  Corporation,  it  may  make  an  order  cancelling  (either 
unconditionally  or  subject  to  such  conditions  as  it  may  think  fit  to  impose)  or  varying  the  contract  or 
agreement, and thereafter the contract or agreement shall have effect accordingly: 

Provided  that  no  such  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  made  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. 

18.  Protection  of  action  taken  in  good  faith.—(1)  No  suit,  prosecution  or  other  legal  proceeding 
shall lie against the Central Government or any officer of that Government or the Administrator or the 
Government  company  or  any  officer  or  other  person  authorised  by  that  Government  or  Government 
company for anything which is in good faith done or intended to be done under this Act. 

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(2) No suit or other legal proceeding shall lie against the Central Government or any of its officers or 
other employees or the Government company or any officer or other person authorised by that company 
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. 

19. Delegation of powers.—(1) The Central Government may, by notification, direct that all or any 
of the powers exercisable by it under this Act, other than the power conferred by section 22, may also be 
exercised by such person or persons, as may be specified in the notification. 

(2)  Whenever  any  delegation  of  power  is  made  under  sub-section  (1),  the  persons  to  whom  such 
power  has  been  delegated  shall  act  under  the  direction,  control  and  supervision  of  the  Central 
Government. 

20. Penalties.—Any person who,— 

(a) having in his possession, custody or control any property forming part of any undertaking of 
the  Metal  Corporation,  wrongfully  withholds  such  property  from  the  Central  Government  or 
Government company; or 

(b) wrongfully obtains possession of, or retains, any property forming part of the undertaking of 
the  Metal  Corporation  or  wilfully  withholds  or  fails  to  furnish  to  the  Central  Government  or  the 
Government company or any person or body of persons specified by that Government or Government 
company,  any  document  relating  in  such  undertaking  which  may  be  in  his  possession,  custody  or 
control or fails to deliver to the Central Government or the Government company or any person or 
body  of  persons  specified  by  that  Government  or  Government  company,  any  assets,  books  of 
accounts,  registers  or  other  documents  in  his  possession,  custody  or  control,  relating  to  the 
undertaking of the Metal Corporation; or 

(c)  wrongfully  removes  or  destroys  any  property  forming  part  of  any  undertaking  of  the  Metal 
Corporation or prefers any claim under this Act which he knows or has reasonable cause to believe to 
be false or grossly inaccurate, 

shall be punishable with imprisonment for a term which may extend to two years, or with fine which may 
extend to ten thousand rupees, or with both. 

21.  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  charge  of,  and  was 
responsible to, the company for the 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  sub-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 includes a firm or other association of individuals; 

(b) “director”, in relation to a firm, means a partner in the firm. 

22.  Power  to  make  rules.—(1)  The  Central  Government  may,  by  notification,  make  rules  for 

carrying out the provisions of this Act. 

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(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a) the manner in which the monies in any provident or other fund referred to in sub-section (2) of 

section 15 shall be dealt with; 

(b) any other matter which is required to be, or may be, prescribed. 

(3) 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 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 
making any modification in the rule or both Houses 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. 

23. Power to remove difficulties.—If any difficulty arises in giving effect to the provisions of this 
Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the 
difficulty: 

Provided that no such order shall be made after the expiry of a period of two years from the date on 

which this Act receives the assent of the President. 

24.  Abolition  of  Tribunal,  etc.—(1)  On  the  commencement  of  this  Act,  the  Tribunal  constituted 
under  sub-section  (1)  of  section  11  of  the  Metal  Corporation  of  India  (Acquisition  of  Undertaking)      
Act,  1966  (36  of  1966),  shall  be  stand  abolished  and  every  proceeding  pending  before  it,  every  order 
made  by  it  and  every  appeal  or  application  against  any  such  order,  shall  stand  abated,  and,  on  such 
abatement,  the  Central  Government  shall  take  charge  of  all  records  of  proceedings,  applications, 
memoranda, registers and other documents maintained by, or in connection with any proceeding before, 
the Tribunal. 

(2) On the commencement of this Act,— 

(a) every suit, appeal or other proceeding of whatever nature in relation to the affairs or business 
of the undertaking of the Metal Corporation instituted before such commencement, and pending on 
such  commencement  shall  not  abate,  be  discontinued  or  be,  in  any  way,  prejudicially  affected  by 
reason of anything contained in this Act, but the suit, appeal or other proceeding may be continued, 
prosecuted and enforced by or against the Metal Corporation and not against the Central Government 
or the Government company; 

(b) every suit, appeal or other proceeding of whatever nature instituted after such commencement 
but  before  the  appointed  day,  in  relation  to  the  affairs  or  business  of  the  undertaking  of  the  Metal 
Corporation, and pending on the appointed day, shall not abate, be discontinued or, in any way, be 
prejudicially  affected  by  reason  of  anything  contained  in  this  Act,  but  such  suit,  appeal  or  other 
proceeding may be continued, prosecuted and enforced by or against the Central Government or the 
Government company. 

(3)  Anything  done,  any  action  taken  or  any  contract  entered  into  by  the  Central  Government, 
Administrator or the Government company at any time during the period commencing on the 22nd day of 
October, 1965, and ending on the appointed day shall be deemed to have been done, taken or entered into 
by  the  Central  Government  or,  as  the  case  may  be,  the  Government  company  in  the  due  course  of 
management of the undertaking of the Metal Corporation. 

25.  Repeal  of  Ordinance  and  saving.—(1)  The  Metal  Corporation  (Nationalisation  and 

Miscellaneous Provisions) Ordinance, 1976 (12 of 1976) is hereby repealed. 

(2) Notwithstanding such repeal, 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. 

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