Browse Acts
The Industrial Finance Corporation Act, 1948
THE INDUSTRIAL FINANCE CORPORATION ACT, 1948.ACT NO. 15 OF 1948 *1.[27th March, 1948.]
An Act to establish the Industrial Finance Corporation of India.
WHEREAS it is expedient to establish an Industrial Finance
Corporation for the purpose of making medium and long-term credits more readily available to industrial concerns in India, particularly in circumstances where normal banking accommodation is inappropriate or recourse to capital issue methods is impracticable;
It is hereby enacted as follows:--
1.Short title, extent and commencement.
1. Short title, extent and commencement. (1) This Act may be called the Industrial Finance Corporation Act, 1948.2*[(2) It extends to the whole of India 3*.]
(3) It shall come INTO force on such date 4* as the Central
Government may, by notification in the Official Gazette, appoint.
2.Interpretation.
2. Interpretation. In this Act, unless there is anything repugnant in the subject or context,-
(a) "Board" means the Board of Directors of the
Corporation;
(b) "Corporation" means the Industrial Finance Corporation of India established by this Act;
5*[(ba) "Court" means the High Court (or where there is no
High Court and the powers of the High Court are exercised by the Court of Judicial Commissioner, such
Court) with in the local limits of whose jurisdiction,-
(i) the defendant or respondent, or where there is more than one defendant or respondent, any one of them-
(1) has his registered office; or
(2) carries on the whole or part of his business, at the time of the commencement of any legal proceedings against him under this Act; or
(ii) the cause of action for such legal proceedings, wholly or in part, arises;]
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1. This Act has been extended to Goa, Daman and Diu by Reg. 12 of
1962, s. 3 and Sch.; Dadra and Nagar Haveli by Reg. 6 of 1963, s. 2.and Sch. I, and to the Laccadive, Minicoy and Amindivi Islands by Reg.
8 of 1965, s. 3 and Sch., Extended to Kohima and Mokokchung districts in the State of Nagaland by Act 52 or 1975, s. 21.2. Subs. by the A. O. 1950, for sub-section (2).
3. The words "except the State of Jammu and Kashmir" omitted by Act
28 of 1955, s. 2.4. 1st July, 1948, vide Notification No. F-10(1) (a)-F. 1/48, dated the 15th June, 1948, Gazette of India, Extraordinary, 1948, p. 853.5. Subs. by Act 2 of 1982, s. 2 (w.e.f. 12.3.1982)
38.1*[(bb) "Development Bank" means the Industrial Development
Bank of India established under the Industrial
Development Bank of India Act, 1964 (18 of 1964);]
2*[(c) "industrial concern" means any limited company operative society incorporated by a Central Act or an
Act of the Legislature of a State or under any law for the time being in force and registered in India which is engaged or to be engaged in-
(i) the manufacture, preservation or processing of goods;
(ii) shipping;
(iii) mining;
(iv) the hotel industry;
3*[(v) the generation, storage or distribution of electricity or any other form of energy;]
(vi) the transport of passengers or goods by road or by water or by air or by ropeway or by lift;
(vii)the maintenance, repair, testing or servicing of
3*[machinery or equipment] of any description or vehicles or vessels or motorboats or trailers or tractors;
(viii)assembling, repairing or packing any article with the aid of machinery or power;
3*[(ix) the setting up of, or development of, an industrial area or an industrial estate;]
(x) fishing or providing shore facilities for fishing or maintenance thereof;
(xi) providing special or technical knowledge or other services for the promotion of industrial growth;
4* * * * *
3*[(xii) providing engineering, technical, financial, management, marketing or other services or facilities for industry;
(xiii) providing medical, health or other allied services;
(xiv)providing services relating to information technology, tele-communication or electronics;
(xv) leasing, sub-leasing or giving on hire or hire-
purchase of industrial plants, equipments, machinery or other assets, including vehicles, ships and aircraft;
(xvi)such other activity as the Central Government may, HAVING regard to the objects of this Act, by notification in the Official Gazette, specify in this behalf; or
(xvii) the research and development of any concept, technology, design, process or product, whether in relation to any of the matters aforesaid, including any activities specified under sub-
clause (xvi), or any other matter.
Explanation.-For the purposes of sub-clause (i), the expression "processing of goods" includes any art or process for producing, preparing or making an article by subjecting any material to a manual, mechanical, chemical, electrical or any other like operation;]
(d) "prescribed" means prescribed by rules or regulations made under this Act;
(e) "Reserve bank" menas the Reserve Bank of India:
(f) "scheduled bank" means a bank for the time being included in the second Schedule to the Reserve Bank of
India Act, 1934 (2 of 1934.)
5*[(ff) "State co-operative bank" has the same meaning as in the Reserve Bank of India Act, 1934 (2 of 1934.);]
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1. Ins. by Act. 18 of 1964, s. 38 and Sch. II (w.e.f. 1-7-1964).
2. Subs. by Act 2 of 1982, s. 2 (w.e.f. 12-3-1982).
3. Subs. by Act 50 of 1986, s. 2 (w.e.f. 2-2-1987).
4. Omitted by s. 2, ibid. (w.e.f. 2-2-1987).
5. Ins. by Act 74 of 1972, s. 2.39.1* * * * *
3.Establishment and incorporation of Corporation.
3. Establishment and incorporation of Corporation. (1) A
Corporation to be called the Industrial Finance Corporation of India shall be established for the purposes of this Act.
(2) The Corporation shall be a body corporate by the name of the
Industrial Finance Corporation of India, HAVING perpetual succession and a common seal, with power, subject to the provisions of this Act, to 2*[acquire, hold or dispose of] property, both movable and immovable, and shall by the said name sue and be sued.
4.Share capital and share-holders.
4. Share capital and share-holders. (1) The authorized capital of the Corporation shall be ten crores of rupees divided INTO twenty thousand fully paid-up shares of five thousand rupees each of which ten thousand shares of the total value of five crores of rupees shall be issued in the first instance, and the remaining shares may be issued with the sanction of the Central Government FROM time to time as and when the Corporation may deem fit.
3*[(1A) On and FROM the commencement of the Industrial Finance
Corporation (Amendment) Act, 1972, (74 of 1972.) the authorised capital of the Corporation shall stand increased to twenty crores of rupees, divided INTO forty thousand shares of five thousand rupees each, and the shares representing the capital so increased may be issued, with the sanction of the Central Government, as and when the
Corporation may deem fit.]
4*[(1B) On or after the commencement of the Industrial Finance
Corporation (Amendment) Act, 1982 (2 of 1982), the authorised capital of the Corporation may be increased to such amount not exceeding one hundred crores of rupees as the Central Government may, FROM time to time, by notification in the Official Gazette, fix.
(1C) The authorised capital increased under sub-section (1B)
shall be divided INTO such number of shares of five thousand rupees each as may be necessary and the shares representing the capital so increased may be issued with the sanction of the Central Government as and when the Corporation may deem fit."]
5*[(1D) On or after the commencement of the Industrial Finance
Corporation (Amendment) Act, 1986 (50 of 1986), the authorised capital of the Corporation may be increased to such amount not exceeding two hundred and fifty crores of rupees as the Central Government may, FROM time to time, by notification in the Official Gazette, fix.
(1E) The authorised capital increased under sub-section (1D)
shall be divided INTO such number of shares of five thousand rupees each a may be necessary and the shares representing the capital so increased may be issued with the sanction of the Central Government as and when the Corporation may deem fit."]
(2) Of the capital issued in the first instance, the Central
Government and the Reserve Bank shall each subscribe for two thousand shares.
(3) On application made before such date as may be notified by the Central Government in the Official Gazette in this behalf, scheduled banks may subscribe for two thousand five hundred shares, and insurance companies, investment trusts and other like financial institutions for two thousand five hundred shares, and co-operative banks for one thousand shares of the Corporation:
Provided that no institution shall be allotted more than ten percent of the shares reserved for the class of institutions to which it belongs.
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1. Omitted by Act 2 of 1982, s. 2 (w.e.f. 12.3.1982).
2. Subs. by Act 28 of 1955, s. 4, for "acquire and hold".
3. Ins. by Act 74 of 1972, s. 3.4. Ins. by Act 2 of 1982 s. 3 (w.e.f. 12.3.1982).
5. Ins. by Act 50 of 1986, s. 3 (w.e.f. 2.2.1987).
40
(4) The allotment of shares to the applicants mentioned in sub-
section (3) shall be made by the Board in accordance with the regulations made in this behalf.
1* * * * * *
(7) Shares of the Corporation shall not be transferable except to
2*[the Development Bank], 3*[the Reserve Bank], any scheduled bank, any insurance company, any investment trust or any other like financial institution or any co-operative bank in accordance with the regulations made in this behalf.
4*[(8) 5*[In this section and in section 4A] the expression
"insurance companies" or "insurance company" includes the Life
Insurance Corporation of India established under section 3 of the Life
Insurance Corporation Act, 1956 (31 of 1956) 6*, the General Insurance
Corporation of India formed and registered under the Companies Act,
1956 (1 of 1956), its subsidiaries and such other institution or institutions dealing with general insurance business as may be notified by the Central Government in the Official Gazette in this behalf"]
4A.
Transfer of shares and increase of capital.
7*[4A. Transfer of shares and increase of capital. (1) On such date8* as the Central Government may, by notification in the Official
Gazette, appoint-
(a) all shares of the Corporation held by the Central Government and the Reserve Bank shall stand transferred to and vest in the Development Bank and as compensation therefor the
Development Bank shall pay to the Central Government and to the Reserve Bank respectively the face value of the shares held by that Government and by that Bank;
(b) the capital issued by the Corporation shall be increased by such number of shares as the Central Government may specify in this behalf and all such shares shall stand allotted to and be subscribed by the Development Bank, so however that after such increases the Development Bank holds not less than fifty per cent. of the paid-up capital of the
Corporation.
(2) If and when the remaining shares in the capital of the
Corporation, or any part thereof, are issued, such further shares shall be offered to the holders of the shares of the Corporation in proportion,
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1. Sub-sections (5) and (6) omitted by Act 18 of 1964, s. 38 and
Sch. II (w.e.f. 1-8-1964).
2. Subs. by s. 38 and Sch. II, ibid., for "the Central Government, the Reserve Bank" (w.e.f. 1-8-1964).
3 . Ins. by Act 74 of 1972, s. 3.4. Ins. by Act 66 of 1960, s. 3.5. Subs. by Act 2 of 1982, S. 3 (w.e.f. 12.3.1982).
6. Ins. by s. 3 ibid. (w.e.f. 12-3-1982).
7. Ins. by Act 18 of 1964, S. 38 and Sch. II (w.e.f. 1-7-1964).
8. 1-8-1964 vide Notification No. S.O. 2662, dated 29-7-1964, see
Gazette of India, Extraordinary, Part II, sec. 3(ii), p. 643.41.as nearly as circumstances admit, to the capital paid-up on those shares at the date of such further issue:
1*[Provided that such holders shall have the right to renounce the shares so offered to them in favour of any scheduled bank, any insurance company, any investment trust or any other like financial institution or any co-operative bank, whether or not any such institution is a shareholder:
Provided further that if any such holder does not accept the shares so offered or does not exercise the right of renunciation in respect of any such shares in favour of any institution referred to in the preceding proviso within the time fixed therefor, the Board may allot such shares to any such institution with the concurrence of the
Development Bank:
Provided also that"] if any such shares remain unallotted, they shall be subscribed for by the Development Bank.]
5.Guarantee by Central Government.
5. Guarantee by Central Government. The shares of the Corporation shall be guaranteed by the Central Government as to the repayment of the principal and the payment of the annual dividend at such minimum rate as may be fixed by the Central Government by notification published in the Official Gazette at the time of issuing the shares.
5A.
Shares of the Corporation to be deemed to be securities for certainpurposes.
2*[5A. Shares of the Corporation to be deemed to be securities for certain purposes. Notwithstanding anything contained in the Acts hereinafter mentioned in this section, the shares of the Corporation shall be deemed to be included among the securities enumerated in section 20 of the Indian Trusts Act, 1982, (2 of 1882.) and also deemed to be approved secrities for the purposes of the Insurance Act,
1938, (4 of 1938.) and the Banking Companies Act, 1949 (10 of 1949).]
6.Management.
6. Management. (1) The general superintendence and direction of the affairs and business of the Corporation shall be entrusted to a
Board of Directors which 3*** may exercise all powers and do all acts and things which may be exercised or done by the Corporation.
(2) The Board in discharging its functions shall act on business principles due regard being had by it to the interests of industry, commerce and the general public.
(3) In the discharge of its said functions, the Board shall be guided by such instructions on questions of policy as may be given to it by 4*[the Development Bank].
5*[(4) If any dispute arises between the Development Bank and the
Board as to whether a question is or is not a question of policy, the dispute shall be referred to the Central Government whose decision thereon shall be final.]
(5) If the Board fails to carry out the instructions on the question of policy 6*[given by the Development Bank], the Central
Government shall have the power to supersede the Board and appoint a new
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1. Subs. by Act 2 of 1982, s. 4 (w.e.f. 12.3.1982)
2. Ins. by Act 45 of 1949, s. 2.3. The words "with the assistance of an Executive Committee and a
Managing Director" omitted by Act 28 of 1955, s.5.4. Subs. by Act 18 of 1964, s. 38 and Sch. II, for "the Central
Government" (w.e.f. 1-8-1964).
5. Subs. by 38 and Sch. II, ibid., for sub-section (4) (w.e.f. 1-8-
1964).
6. Subs. by s. 38 and Sch. II, ibid., for "laid down by the Central
Government" (w.e.f. 1-8-1964).
42.Board in its place to function until a properly constituted Board is set up. The decision of the Central Government as to the grounds for superseding the Board shall not be questioned in any Court of law.
7.Powers of Executive Committee.
7. [Powers of Executive Committee.] Rep. by the Industrial and
State Financial Corporations (Amendment) Act, 1955 (28 of 1955), s. 6.8.Advisory Committee.
8. [Advisory Committee.] Rep., ibid.
9.Managing Director.
9. [Managing Director.] Rep., ibid.
10.Board of Directors.
10. 1*[(1)] Board of Directors. The Board of Directors shall consist of the following, namely:-
2*[(a) a Chairman and a Managing director to be appointed by the
Central Government after consultation with the Development Bank:
Provided that the same person may be appointed to function both as Chairman an das Managing Director;]
(aa) four Directors nominated by 3*[the Development Bank];]
(b) two Directors nominated by 4*[the Central Government];
5*[(bb) one Director nominated by the Reserve Bank;"]
(c) two Directors elected in the prescribed manner by the scheduled banks who are shareholders of the
Corporation;
(d) two Directors elected in the prescribed manner by the shareholders of the Corporation, other than 6*[the
Development Bank], the scheduled banks and co-operative banks;
(e) two Directors elected in the prescribed manner by the co-operative banks who are shareholders of the
Corporation.
7* * * * * *
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1. S. 10 re-numbered as subsection (1) of that section by Act 78 of
1952, s.3.2. Subs. by Act 50 of 1986, s. 4 (w.e.f. 2-2-1987).
3. Subs. by Act 18 of 1964 s. 38 and Sch. II, for "the Central
Government" (w.e.f. 1-8-1964).
4. Subs. by s. 38 and Sch. II, ibid., for "the Central Board of the
Reserve Bank" (w.e.f. 1-8-1964).
5. Ins. by Act 50 of 1986, s. 4 (w.e.f. 2-2-1987).
6. Subs. by Acy 18 of 1964 s. 38 and Sch. II, for "the Central
Government, the Reserve Bank" (w.e.f. 1-8-1964).
7. Cls. (f) and (g) and provisos omitted by Act 28 of 1955, s. 7.43.1*[(2) On the date appointed under sub-section (1) of section 4A, the Directors holding office under clause (aa) or clause (b)
immediately before the said date shall be deemed to have vacated their offices as such.]
10A.
Chairman of the Board.
2*[10A. Chairman of the Board. (1) The Chairman of the Board
3*[or the Managing Director and, in a case where the same person is appointed to function both as Chairman and as Managing Director, such person] shall receive such salary and allowances as may be determined
4*[by the Development Bank] with the approval of the Central
Government.
3*[(2) The Chairman and the Managing Director shall hold office for such term not exceeding five years as the Central Government may specify in this behalf and shall be eligible for reappointment.]
5*[(2A) Notwithstanding anything contained in sub-section (2), the Central Government shall have the right to terminate the term of office of the 3*[Chairman or the Managing Director] at any time before the expiry of the term [specified under]3* sub-section (2) by giving him notice of not less than three months in writing or three months
salary and allowances in lieu of such notice; and the 3*[Chairman or the Managing Director] shall also have the right to relinquish his office at any time before the expiry of the term [specified under]3*
sub section (2) by giving to the Central Government notice of not less than three months in writing.]
(3) The Chairman shall exercise such powers and discharge such duties as are assigned to him by this Act or as may be delegated to him by the Board.
6*[(3A) The Managing Director shall exercise such powers and discharge such duties as are assigned to him by this Act or as may be delegated to him by the Board or the Chairman.]
3*[(4) "Notwithstanding anything contained in sub-section (3), the Chairman or, in his absence, the Managing Director, is of opinion that circumstances exist which render it necessary for him to take immediate action in respect of any matter which is within the competence of the Board and that the interests of the Corporation may be prejudicially affected if such action is deferred until after the next meeting of the Board, then he may take such action"] in respect of that matter as he deems necessary and for such purpose, he may exercise all powers and do all acts and things which may be exercised or done by the Board
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1. Ins. by Act 18 of 1964, s. 38 and Sch. II (w.e.f. 1-8-1964).
Former sub-section (2) was omitted by Art. 28 of 1955, s. 7.2. Ins. by Act 28 of 1955, s. 8.3. Ins. by Act 50 of 1986, s. 5 (w.e.f. 2.2.1987).
4. Subs. by Act 18 of 1964, s. 38 and Sch. II, for "by the Board"
w.e.f. 1-8-1964).
5. Ins. by Act 73 of 1976, s. 3.6. Ins. by Act 50 of 1956 s. 5 (w.e.f. 2-2-1987).
44.1***, but in every such case, he shall, as soon as may be, after the action is taken, make a written report to the Board 1*** containing a statement of the action taken and the circumstances under which it was taken.]
11.Term of office and retirement of Directors.
11. Term of office and retirement of Directors. (1) A nominated
Director shall hold office during the pleasure of 2*[the authority appointing him].
(2) An elected Director shall hold office for 3*[three years]:
Provided that one out of the two Directors elected to represent the shareholders referred to in each of the clauses (c), (d) and (e)
of section 10 shall retire at the end of two years after the first election; the Directors so to retire shall be determined by lot:
Provided further that an elected Director shall be required to continue in his office until his successor has been elected:
Provided further that 4*[such] a Director shall be eligible for re-election for not more than two full consecutive terms after the rotation of elected Directors has begun.
(3) A casual vacancy in the office of an elected Director shall be filled by election and a Director so elected shall hold office for the unexpired portion of the term of his predecessor:
Provided that no casual vacancy occurring within 5* [six months]
of the date of expiry of the normal term of office of an elected
Director need be filled under this sub-section.
6*[(4) Directors shall be paid such fees as may be prescribed for attending the meetings of the Board and, if they are members of 7*[any
Committee] appointed by the Corporation, for attending meetings of such Committee:
Provided that nothing in this sub-section shall apply to the
Chairman 8*[,Managing Director] or to any other Director who is a servant of the Government 9*[or of the Development Bank].]
(5) No act or proceeding of the Board shall be questioned on the ground merely of the existence of any vacancy in, or any defect in the constitution of, the Board.
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1. The words "or the Central Committee" omitted by Act 74 of 1972, s. 4.2. Subs. by Act 78 of 1952, s. 4. for "the Central Government".
3. Subs. by Act 50 of 1986, s. 6 (w.e.f. 2-2-1987).
4. Ins. by Act 78 of 1952 s. 4.5. Subs. by Act 2 of 1982, s. 5 (w.e.f. 12-3-1982).
6. Subs. by Act 66 of 1960, s. 4. for sub-section (4).
7. Subs. by Act 74 of 1972, s. 5, for "the Central Committee or any other Committee".
8. Ins. by Act 50 of 1986 s. 6 (w.e.f. 2-2-1987).
9. Ins. by Act 18 of 1964, s. 38 and Sch. II (w.e.f 1-8-1964).
45.12.Disqualification.
12. Disqualification. No person shall be a Director who--
1*[(a) except in the case of 2*[the Chairman [3*or the
Managing Director], is a salaried official of the
Corporation; or]
(b) is, or at any time has been, adjudicated insolvent or has suspended payment 4*[of his debts] or has compounded with his creditors; or
(c) is found to be a lunatic or becomes of unsound mind; or
(d) is or has been convicted of any offence involving moral turpitude.
13.Removal of Director FROM office.
5*[13. Removal of Director FROM office. 6*[(1)The Central
Government may 7*[after consultation with the Development Bank] at any time remove the Chairman 8*[or the Managing Director] FROM office:]
9*[Provided that no person shall be removed FROM his office, under this sub-section, unless he has been given an opportunity of showing cause against his removal.]
(2) The Board may remove FROM office any Director who--
(a) is, or has become, subject to any of the disqualifications mentioned in section 12; or
(b) is absent without leave of the Board FROM more than three consecutive meetings of the Board without excuse sufficient in the opinion of the Board to exonerate the absence.]
13A.
Casual vacancy of Chairman.
10*[13A. Casual vacancy of Chairman. If the Chairman of the Board
11*[or the Managing Director] is by infirmity or otherwise rendered incapable of carrying out his duties or is absent on leave or otherwise in circumstances not involving the vacation of his appointment, the Central Government may, after consultation 12*[with the Development Bank], appoint another person to act in his place during his absence.]
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1. Subs. by Act 78 of 1952, s. 5 for cl. (a).
2. Subs. by Act 28 of 1955, s. 10, for "the Managing Director or the
Deputy Managing Director".
3. Ins. by Act 50 of 1986, s. 7 (w.e.f. 2-2-1987).
4. Ins. by Act 78 of 1952, s. 5.5. Subs. by s. 6, ibid., for s. 13.6. Subs. by Act 28 of 1955, s. 11, for sub-section (1).(w.e.f.
18-9-1955).
7. Ins. by Act 18 of 1964, s. 38 and Sch. II (w.e.f. 1-8-1964).
8. Ins. by Act 50 of 1986 s. 8 (w.e.f. 2-2-1987).
9. Ins. by Act 73 of 1976, s. 3.10. Subs. by Act 28 of 1955, s. 12, for s. 13A, ins. by Act 78 of
1952, s. 7.(w.e.f. 18-9-1955).
11. Ins. by Act 50 of 1986 s. 9 (w.e.f. 2-2-1987).
12. Subs. by Act 18 of 1964, s. 38 and Sch. II, for "with the Board"
(w.e.f. 1-8-1964).
46.14.Central Committee.
14.[Central Committee.] Rep. by the Industrial Finance
Corporation (Amendment) Act, 1972 (74 of 1972), s. 6.15.Advisory Committees.
1*[15. Advisory Committees. The Corporation may FROM time to time appoint one or more Advisory Committee or Committees for the purpose of assisting the Corporation in the efficient performance of its functions and in particular, for the purpose of securing that those functions are exercised with due regard to the circumstances of, conditions prevailing in, and requirements of, particular areas or industries.
16.Staff of Corporation.
2*[16. Staff of Corporation. The Corporation may appoint such number of officers and other employees as it considers necessary or desirable for the efficient performance of its functions and determine the terms and conditions of their appointment and service.]
17.Meetings of the Board.
17. Meetings of the Board. (1) Meetings of Board 3*** shall be held at such times and at such places as may be prescribed:
Provided that until regulations have been made in this behalf such meetings shall be convened by 3*[the Chairman].
(2) To constitute a quorum at a meeting of 5*** the Board, not less than five Directors shall be present, of whom not less than two shall be nominated Directors and at least one an elected Director.
4* * * * *
6*[(3) At a meeting of the Board 7*[each Director] shall have one vote, and in the event of an equality of votes, the Chairman or, in his absence, any other person presiding shall have a second or casting vote.]
(4) No Director shall vote on any matter concerning an industrial concern in which he is directly or indirectly interested.
5*[(5) The Chairman or, if for any reason he is unable to attend a meeting of the Board, the Managing Director or, in the event of both the Chairman and the Managing, Director being unable to attend such meeting, any other Director nominated by the Chairman in this behalf and in the absence of such nomination any Director elected by the
Directors present FROM among themselves, shall preside at the meeting.]
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1. Subs. by Act 28 of 1955, s. 13, for the former sections,
2. Subs. by Act 2 of 1982, s. 6 (w.e.f. 12-3-1982)
3. The words "and of the Central Committee" omitted by Act 74 of
1972, s. 7.4. Subs. by Act 28 of 1955, s. 14, for "the Managing Director"
5. The brackets and letter "(a)" and cl. (b) omitted by Act 74 of
1972, s. 7.6. Subs. by Act 28 of 1955, s. 14, for the former sub-section.
7. Subs, by Act 74 of 1972, s. 7, for certain words.
8. Subs. by Act 50 of 1986, s. 10 (w.e.f. 2-2-1987).
47.1*[(6), If, for any reason, a Director nominated under clause
(aa) of clause (b) 2*[or clause (bb)] of section 10 is unable to attend any meeting of the Board, 3*[The Development Bank or the
Central Government] 2*[or the Reserve Bank], as the case may be, may depute any other person to attend the said meeting and such person shall, for all purposes of the said meeting, be deemed to be a
Director nominated under clause (aa) or clause (b) 2*[or clause
(bb)], as the case be, of the said section.]
18.Offices and agencies.
18. Offices and agencies. The Corporation shall establish its head office in Delhi and offices in Bombay, Calcutta, Kanpur and
Madras, and may, 4*** establish offices or agencies in other places in India.
19.Deposit Accounts.
19. Deposit Accounts. The Corporation may open Deposit Accounts with the Reserve Bank or with any agency of the Reserve Bank other than a Government treasury 5*[or 6*** with a scheduled bank or a
State Co-operative Bank 7*[or, with the approval of the Reserve Bank, with any bank outside India]
20.Investment of funds.
8*[20. Investment of funds. The Corporation may invest its funds in the securities of the Central Government or of any State Government and may, with the approval of the Central Government, contribute to the initial capital of the Unit Trust of India established under the
Unit Trust of India Act, 1963 (52 of 1963), 9*[and the Corporation may also subscribe to, or purchase, 10*[the units of the said Unit Trust of India, or the shares, bonds or debentures of any financial or development institution or organisation]
21.Borrowing powers.
21. Borrowing powers. (1) The Corporation may issue and sell bonds and debentures carrying interest for the purpose of raising its working capital.
11* * * * *
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1 Ins. by Act 43 of 1957, s. 3.2. Ins. by Act 50 of 1986, s. 10 (w.e.f. 2-2-1987).
3. Subs. by Act 18 of 1964, s. 38 and Sch. II, for "the Central
Government or the Reserve Bank" (w.e.f. 1-8-1964).
4. Omitted by Act 2 of 1982, s. 7 (w.e.f. 12-3-1982).
5. Ins. by Act 78 of 1952, s. 10.6. Omitted by Act 2 of 1982 s. 8 (w.e.f. 12.3.1982).
7. Added by Act 50 of 1986 s. 11 (w.e.f. 2.2.1987).
8. Subs. by Act 52 of 1963, s. 44 and Sch. II, for s. 20 (w.e.f. 1-
2-1964).
9. Ins. by Act 74 of 1972, s. 8.10. Subs. by Act 50 of 1986 s. 12 (w.e.f. 2.2.1987).
11. Omitted by s. 9, ibid. (w.e.f. 12.3.1982).
48.(2) Bonds and debentures of the Corporation shall be guaranteed by the Central Government as to the repayment of principal and the payment of interest at such rate as may be fixed by the Central
Government on the recommendation of the Board at the time the bonds and debentures are issued:
1*[Provided that no such guarantee by the Central Government shall be required in respect of such bonds and debentures of the
Corporation as are issued to the Development Bank.]
2*[(3) The Corporation may, for the purpose of carrying out its functions under this Act, borrow money FROM the Reserve Bank,-
(a) repayable on demand or on the expiry of fixed periods not exceeding ninety days FROM the date on which the money is so borrowed, against securities of the Central Government or of any State Government; or
(b) repayable on the expiry of fixed periods not exceeding eighteen months FROM the date on which the money is so borrowed, against securities of the Central Government of any maturity or against bonds and debentures issued by the
Corporation under sub-section (1) and guaranteed by the
Central Government and maturing within a period not exceeding eighteen months FROM the date on which the money is so borrowed:
3* * * * *
(4) The Corporation may also, for the purpose of carrying out its functions under this Act, borrow money FROM the Central Government
4*[or the Development Bank], 5*[the Life Insurance Corporation of
India established under section 3 of the Life Insurance Corporation
Act, 1956 (1 of 1956), the General Insurance Corporation of India formed and registered under the Companies Act, 1956, the Unit Trust of
India established under section 3 of the Unit Trust of India Act, 1963.(52 of 1963), or, with the general or special approval of the Central
Government, FROM any other authority, institution, organisation or trust within or outside India] on such terms and conditions as may be agreed upon.
----------------------------------------------------------------------
1. Ins. by Act 74 of 1972, s. 9.2. Subs. by Act 28 of 1955, s. 15, for sub-section (3), ins. by Act
78 of 1952, s. 11.3. Omitted by Act 50 of 1986, s. 13 (w.e.f. 2.2.1987)
4. Ins. by Act 18 of 1964, s. 38 and Sch. II (w.e.f. 1-8-1964)
5. Ins. by Act 50 of 1986, s. 13 (w.e.f. 2-2-1987).
49.1* * * * *
21A.
Bonds and debentures to be approved securities.
2*[21A. Bonds and debentures to be approved securities.
Notwithstanding anything contained in any other law for the time being in force, the bonds and debentures issued or sold by the Corporation shall be, and shall be deemed always to have been, approved securities for the purpose 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).
21B.
Power to transfer rights.
21B. Power to transfer rights. The rights and interests of the
Corporation (including any other rights incidental thereto) in relation to any loan or advance granted, or any amount recoverable, by it may be transferred by the Corporation, either in whole or in part, by the execution or issue of any instrument, or by the transfer of any instrument by endorsement or in any other manner in which the rights and interests in relation to such loan or advance may be lawfully transferred, and the Corporation may, notwithstanding such transfer, act as the trustee for the transferee.]
21C.
Power to acquire rights.
3*[21C. Power to acquire rights. The Corporation shall have the right to acquire, by transfer or assignment, the rights and interests of any public financial institution as defined in section 4A of the
Companies Act, 1956 (1 of 1956),(including any other rights incidental thereto), in relation to any loan or advance granted, or any amount recoverable, by such institution, either in whole or in part, by the execution or issue of any instrument, or by the transfer of any instrument by endorsement or in any other manner.]
22.Deposits with the Corporation.
4*[22. Deposits with the Corporation. The Corporation may accept deposits repayable after the expiry of a period which shall not be less than twelve months FROM the date of the making of the deposit on such terms and conditions as may, generally or specially, be approved by the Development Bank.]
23.Business which the Corporation may transact.
23. Business which the Corporation may transact. 5*[6*** The
Corporation shall, subject to the provisions of this Act, be authorised to carry on and transact the following kinds of business, namely:-
(a) guaranteeing 6***
(i) loans raised by industrial concerns which 6*** are floated in the public market;
----------------------------------------------------------------------
1. Omitted by Act 2 of 1982, s. 9 (w.e.f. 12.3.1982).
2. Ins. by Act 74 of 1982, s. 10.3. Ins. by Act 2 of 1982, s. 10. (w.e.f. 12.3.1982).
4. Subs. by s.11, ibid. (w.e.f. 12.3.1982).
5. Subs. by Act 66 of 1960, s. 5, for sub-section (1).
6. Omitted by Act 2 of 1982, s. 12. (w.e.f. 12.3.1982).
50
(ii) loans raised by industrial concerns FROM scheduled banks 1*[5*** Co-operative Banks or such other financial institutions as may be notified by the
Central Government in this behalf]
1*[(b) guaranteeing deferred payments due FROM any industrial concern;]
3* * * * *
(c) guaranteeing 4*xxx loans raised from, or credit arrangements made with, any banks or financial institution in any country outside India by industrial concerns in foreign currency:
Provided that no such guarantee shall be given without the prior approval of the Central Government;
(d) underwriting the issue of stock, shares, bonds or debentures by industrial concerns 5*[and retaining as part of its assets, any stocks, shares, bonds or debentures which it may have to take up in fulfilment of its obligations thereto];
5*[da) transferring for consideration any instrument relating to loans and advances granted by it to industrial concerns;]
(e) acting as agent for the Central Government or, with its approval, for the International Bank for Reconstruction and Development 6*[or any other international or national institution or organisation] in the transaction of any business with an industrial concern in respect of loans or advances granted, 7*[or stocks, shares, bonds or debentures subscribed, by any of them or on their behalf]
1*[(f) subscribing to, or purchasing, the stock, shares or bonds of any industrial concern;]
(g) receiving in consideration of the services mentioned in clauses (a) to (f), such commission as may be agreed upon;
3* * * * *
---------------------------------------------------------------------
1. Subs. by Act 2 of 1982, s. 12 (w.e.f. 12.3.1982).
2. Omitted by Act 50 of 1986, s. 14 (w.e.f. 2.2.87).
3. Proviso omitted by Act 74 of 1972, s. 11.4. Ins. by Act 50 of 1986, s. 14 (w.e.f 2-2-1987).
5. Ins. by Act 74 of 1972 s. 11.6. Ins. by Act 50 of 1986 s. 14 (w.e.f. 2-2-1987).
7. Subs. by s. 14, ibid. (w.e.f. 2-2-1987).
8. Cl. (h) omitted by s. 11, ibid.
51.(i) granting loans or advances to, 1*[or subscribing to, or purchasing, debentures of industrial concerns:]
Provided that nothing contained in this clause shall be deemed to preclude the Corporation FROM granting loans or advances to, or subscribing to 2*[,or purchasing,]
debentures of, an industrial concern, 3*[the amounts outstanding thereon may be convertible at the option of the Corporation] INTO stock or shares of that concern within the period the loan, advance or debenture is repayable.
4*[Explanation.-In this clause, the expression "the amounts outstanding thereon", used in relation to any 1*[loan, advance or debenture shall mean the principal, interest and other charges payable on such 1*loan, advance or debenture] as at the time when the amounts are sought to be converted INTO stocks or shares;]
2*[(j) undertaking research and surveys for evaluating or dealing with marketing or investments and undertaking and carrying on techno-economic studies in connection with the development of industry;
(k) providing technical, [legal, marketing]2* and administrative assistance to any industrial concern for the promotion, management or expansion of any industry;
1*[(l) providing consultancy and merchant banking services in and outside India;]
(m) Performing functions entrusted to, or required of, the
Corporation by this Act or by any other law for the time being in force;]
5*[6*[(n)] acquiring with the approval of the Development
Bank the undertaking including the business, assets and liabilities of any institution the principal object of which is the promotion or development of industry in India, or the grant of financial assistance for such promotion or development;] 7***
8*[5*[(o)] doing any kind of business which the Central
Government may, on the recommendation of the
Development Bank, authorise; and
5*[(p)] generally, the doing of all such matters and things as may be incidental to or consequential upon the exercise of its powers or the discharge of its duties under this Act. 2*[or under any other law for the time being in force]
9* * * * *
---------------------------------------------------------------------
1. Subs. by Act 2 of 1982, s. 12.2. Ins. by s. 12, ibid. (w.e.f. 12-3-1982).
3. Subs. by Act 74 of 1972, s. 11, for certain words.
4. Ins. by s. 11, ibid.
5. Ins. by Act 18 of 1964, s. 38 and Sch. II (w.e.f. 1-8-1964).
6. Relettered by Act 2 of 1982, s. 12.(w.e.f.12.3.82).
7. Ins. by Act 74 of 1972, s. 11. for certain words.
8. The word "and" omitted by s. 11, ibid. (w.e.f. 12-3-1982).
9. Omitted by Act 2 of 1982, s. 12 (w.e.f. 12-3-1982).
52.1* * * * *
25.Power to impose conditions for accommodation.
25. Power to impose conditions for accommodation. (1) In entering INTO any arrangement under section 23 with an industrial concern, the
Corporation may impose such conditions as it may think necessary or expedient for protecting the interest of the Corporation, and securing that the accommodation granted by it is put to the best use by the industrial concern.
2*[(2) Where any arrangement entered INTO by the Corporation with an inustrial concern provides for the appointment by the Corporation of one or more Directors of such industrial 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 the industrial concern, and any provision regarding share qualification, age limit, number of directorships, 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 Corporation in pursuance of the arrangement as aforesaid.
----------------------------------------------------------------------
1. Omitted by Act 2 of 1982, s.13 (w.e.f. 12.3.1982).
2. Subs. by Act 74 of 1972, s. 13 for sub-section (2).
53.(3) Any Director appointed in pursuance of sub-section (2) shall-
(a) hold office during the pleasure of the Corporation and may be removed or substituted by any person by ORDER in writing by the Corporation;
(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 of anything in relation thereto;
(c) not be liable to retirement by rotation and shall not be taken INTO account for computing the number of
Directors liable to such retirement.]
26.Prohibited business.
26.1*[(1)] Prohibited business. The Corporation shall not-
(a) accept deposits except as provided by this Act;
2* * * * * *
3*[(c) grant any loan or advance on the security of its own shares.]
4*[(2) The Corporation shall not enter INTO any kind of business with any industrial concern of which any of the Directors of the Corporation is a Director, manager, agent, employee or guarantor or in which one or more Directors of the Corporation together hold substantial interest;
Provided that this sub-section shall not apply to any industrial concern if any Director of the Corporation-
(i) is nominated as a Director on the Board of such concern by
Government, or a Government company as defined in section
617 of the Companies Act, 1956 (1 of 1956), or by a
Corporation established by any other law, or
(ii) is elected on the Board of such concern by virtue of shares held in the concern by Government, or a Government company as defined in section 617 of the Companies Act, 1956 (1 of
1956), or by a Corporation established by any other law,
by reason only of such nomination or election, as the case may be.
--------------------------------------------------------------------
1. Renumbered by Act 74 of 1972, s. 14.2. Cl. (b) and the proviso omitted by Act 66 of 1960, s. 7.3. Ins. by Act 78 of 1952, s. 15.4. Ins. by Act 74 of 1972, s. 14.54.Explanation.-"Substantial interest", in relation to an industrial concern, means the beneficial interest held by one or more of the
Directors of the Corporation or by any relative [as defined in clause
(41) of section 2 of the Companies Act, 1956] (1 of 1956) of such
Director, whether singly or taken together, in the shares of the industrial concern, the aggregate amount paid-up on which either exceeds five lakhs of rupees or five per cent. of the paid-up share capital of the industrial concern, whichever is less.
(3) The provisions of sub section (2)-
(i) shall not apply to any transaction relating to the business entered INTO prior to the commencement of the
Industrial Finance Corporation (Amendment) Act, 1972.(74 of 1972), and all such business and any transaction in relation thereto may be implemented or continued as if that Act had not come INTO force;
(ii) shall apply only so long as the conditions precedent to such disability as set out in the said sub-section continue.]
1*(iii) shall not apply to any industrial concern in respect of which the Corporation is satisfied that it is necessary, in the public interest, to enter INTO business with that concern:
Provided that such business shall be entered INTO in accordance with and subject to such conditions and limitations as may be prescribed by regulations made in this behalf.]
27.Loans in foreign currency.
2*[27. Loans in foreign currency. (1) Notwithstanding anything contained in the Foreign Exchange Regulation Act, 1947 (7 of 1947), or in any other enactment for the time being in force relating to foreign exchange, the Corporation may, for the purpose of granting loans or advances to industrial concerns, borrow, with the previous consent of the Central Government, foreign currency FROM the International Bank for Reconstruction and Development 3*[or any bank or financial institution in India or in any foreign country] or otherwise.
(2) The Central Government may, where necessary, guarantee all loans taken by the Corporation under sub-section (1) as to the repayment of the principal and the payment of the interest and other incidental charges.
4*[(3) All loans and advances granted to industrial concerns by the Corporation out of foreign currency borrowed under sub-section (1)
shall be expressed in terms of foreign currency as equivalent of
Indian currency, calculated in accordance with the rate of exchange prevailing at the time of grant thereof, and the amount due there-
under shall be repayable in equivalent Indian currency, calculated
----------------------------------------------------------------------
1. Ins. by Act 2 of 1982, s. 14 (w.e.f. 12.3.1982).
2. Subs. by Act 78 of 1952, s. 16, for s. 27.3. Ins. by Act 43 of 1957, s. 8.4. Subs. by Act 74 of 1972, s. 15, for sub-sections (3) and (4).
55.in accordance with the rate of exchange prevailing at the time of repayment of such loan or advance.
(4) Any loss or profit in connection with any borrowing of foreign currency under sub-section (1) for the purpose of granting loans and advances under this Act or with its repayment to the concerned foreign lending agency, on account of any fluctuations in the rate of exchange accruing-
(a) during the period within which the loan or advance is repayable by the industrial concern or the period of actual repayment thereof by the concern, whichever is longer, shall be reimbursed by, or paid to, as the case may be, the recipients of such loans and advances;
(b) after the expiry of the period specified in clause
(a),-
(i) shall be borne by the Corporation in respect of normal market fluctuations in foreign exchange;
(ii) shall be reimbursed by, or paid to, as the case may be, the Central Government in respect of fluctuations other than the normal market fluctuations in foreign exchange.
Explanation.-If any question arises as to whether any fluctuation as aforesaid is a normal market fluctuation or not, the same shall be decided by the Central Government whose decision thereon shall be final.]
28.Rights of Corporation in case of default.
28. Right of Corporation in case of default. (1) Where any industrial concern which is under a liability to the Corporation under an agreement makes any default in repayment 1*[of any loan or advance or any instalment thereof] 2*[or in meeting its obligations in relation to any guarantee given by the Corporation] or otherwise fails to comply with the terms of its agreement with the Corporation, the
Corporation shall have the 3*[right to take over the management, or possession, or both, of the concern], as well as the 4*[right to transfer by way of lease or sale] and realise the property pledged, mortgaged, hypothecated or assigned to the Corporation.
--------------------------------------------------------------------
1. Ins. by Act 43 of 1957, s. 9.2. Ins. by Act 74 of 1972, s. 16.3. Subs. by s. 16, ibid., for certain words.
4. Subs. by Act 28 of 1955, s. 19, for "right to sell".
56.(2) Any transfer of property made by the Corporation in exercise ofits powers 1*** under sub-section (1) shall vest in the transferee all rights in or to the property transferred 2*[as if the transfer]
had been made by the owner of the property.
(3) The Corporation shall have the same rights and powers with respect to goods manufactured or produced wholly or partly FROM goods forming part of security held by it, as it had with respect to the original goods.
3*[(3A) 4*[Where any action has been taken against an industrial concern] under the provisions of sub-section (1), all costs, charges and expenses 5*[which , in the opinion of the Corporation, have been properly incurred by it] 4*[as incidental thereto] shall be recoverable FROM the industrial concern, and the money which is received by it 6*** shall, in the absence of any contract to the contrary, be held by it in trust to be applied, firstly, in payment of such costs, charges and expenses and, secondly, in discharge of the debt due to the Corporation, and the residue of the money so received shall be paid to the person entitled thereto.]
(4) Where the Corporation takes over the management 7*[or possession] of a concern under the provisions of sub-section (1), it shall be deemed to be the owner of such concern for purposes of suits by or against such concern and shall sue and be sued in the name 8***
of the concern.
29.Power to call for repayment before agreed period.
29. Power to call for repayment before agreed period.
9*[Notwithstanding anything in any agreement to the contrary, the
Corporation may, by notice in writing, require any industrial concern to which it has granted any loan or advance to discharge forthwith in full its liabilities to the Corporation,-]
(a) if it appears to the Board that false or misleading information in any material particular was given in the application for the loan or advance; or
(b) if the industrial concern has failed to comply with the terms of its contract with the Corporation in the matter of the loan or advance; or
----------------------------------------------------------------------
1. The words "of sale and realisation" omitted by Act 28 of 1955, s.
19.2. Subs. by s. 19, ibid., for "as if the sale".
3. Ins. by Act 78 of 1952, s. 17.4. Subs. by Act 74 of 1972, s. 16, for certain words.
5. Subs. by Act 43 of 1957, s. 9, for "properly incurred by it".
6. Certain words omitted by Act 74 of 1972, s. 16.7. Ins. by s. 16, ibid.
8. The words "of the owner" omitted by Act 43 of 1957, s. 9.9. Subs. by Act 78 of 1952, s. 18, for certain original words.
57.(c) if there is a reasonable apprehension that the industrial concern is unable to pay its debts or that proceedings for liquidation may be commenced in respect thereof; or
(d) if the property pledged, mortgaged, hypothecated or assigned to the Corporation as security for the loan or advance is not insured and kept insured by the industrial concern to the satisfaction of the Corporation; 1*[or depreciates in value to such an extent that, in the opinion of the Board, further security to the satisfaction of the Board should be given and such security is not given;] or
(e) if without the permission of the Board, 1*[any machinery, plant or other equipment], whether forming part of the security or otherwise, is removed FROM the premises of the industrial concern without being replaced; or
(f) if for any reason it is necessary 2*** to protect the interests of the Corporation.
30.
Special provisions for enforcement of claims by the Corporation.
30. Special provisions for enforcement of claims by the
Corporation. (1) 3*[Where an industrial concern, in breach of any agreement, makes any default in repayment of any loan or advance or any instalment thereof 4*[or in meeting its obligations in relation to the guarantee given by the Corporation] or otherwise fails to comply with the terms of its agreement with the Corporation or where the
Corporation requires an industrial concern to make immediate repayment of any loan or advance under section 29 and the industrial concern fails to make such repayment, then, without prejudice to the provisions 5*[of section 28 of this Act and] of section 69 of the
Transfer of Property Act, 1882 (4 of 1882)], any officer of the
Corporation generally or especially authorized by the Board in this behalf may apply to 6*[the Court] for one or more of the following reliefs, namely:-
(a) for an ORDER for the sale of the property pledged, mortgaged, hypothecated or assigned to the Corporation as security for the loan or advance, or
(b) for transferring the management of the industrial concern to the Corporation, or
(c) for an ad interim injunction where there is apprehension of the machinery or the equipment being removed from
--------------------------------------------------------------------
1. Subs. by Act 78 of 1952, s. 18, for certain original words.
2. The words "in the opinion of the Board omitted by s. 18, ibid.
3. Subs. by s. 19, ibid., for certain original words.
4. Ins. by Act 74 of 1972, s. 17.5. Ins. by Act 28 of 1955, s. 20.6. Subs. by Act 74 of 1972, s. 17, for certain words.
58.the premises of the industrial concern without the permission of the Board.
(2) An application under sub-section (1) shall state the nature and extent of the liability of the industrial concern to the
Corporation, the ground on which it is made and such other particulars as may be prescribed.
(3) When the application is for the reliefs mentioned in sub-
clauses (a) and (c) of sub-section (1) 1*[the Court] shall pass an ad interim ORDER attaching the security or so much of the property of the industrial concern as would on being sold realise 2*[in its estimation] an amount equivalent in value to the outstanding liability of the industrial concern to the Corporation together with the costs of the proceedings taken under this section with or without an ad interim injunction restraining the industrial concern FROM transferring or removing its machinery or equipment.
(4) Where the application is for the relief mentioned in sub-
clause (b) of sub-section (1) 1*[the Court] shall grant an ad interim injunction restraining the industrial concern FROM transferring or removing its machinery or equipment and issue a notice calling upon the industrial concern to SHOW cause on a date to be specified in the notice why the management of the industrial concern should not be transferred to the Corporation.
(5) Before passing any ORDER under sub-section (3) or sub-section
(4), 1*[the Court] may, if 3*[it] thinks fit, examine the officer making the application.
(6) At the same time as 3*[it] passes an ORDER sub-section (3),
1*[the Court] shall issue to the industrial concern a notice accompanied by copies of the order, the application 4*[and the evidence, if any, recorded by it calling upon the industrial concern to SHOW cause] on a date to be specified in the notice why the ad interim ORDER of attachment should not be made absolute or the injunction confirmed.
(7) If no cause is shown on or before the date specified in the notice under sub-sections (4) and (6), 1*[the Court] shall forthwith make the ad interim ORDER absolute and direct the sale of the attached property or transfer the management of the industrial concern to the
Corporation or confirm the injunction.
---------------------------------------------------------------------
1. Subs. by Act 74 of 1972, s. 17, for "the District Judge".
2. Subs. by Act 56 of 1974, s. 3 and Sch II, for "in his estimation".
3. Subs. by s. 3 and Sch. II, ibid., for "he".
4. Ins. by s. 3 and Sch. II, ibid., for certain words.
59.(8) If cause is shown 1*[the Court] shall proceed to investigate the claim of the Corporation and the provision of the Code of Civil
Procedure, 1908 (5 of 1908), shall as far as practicable apply to such proceedings.
(9) On an investigation made under sub-section (8) 1*[the Court]
shall pass an order-
(a) confirming the ORDER of attachment and directing the sale of the attached property, or
(b) varying the ORDER of attachment so as to release a portion of the property FROM attachment and directing the sale of the remainder of the attached property, or
(c) releasing the property FROM attachment, if 2*[it] is satisfied that it is not necessary in the interest of the Corporation, or
(d) confirming or dissolving the injunction, or
(e) transferring the management of the industrial concern to the Corporation of rejecting the claim made in this behalf:
Provided that when making any ORDER under clause (c), 1*[the
Court] may make such further orders as 2*[it] thinks necessary to protect the interests of the Corporation, and may apportion the costs of the proceedings in such manner as 2*[it] thinks fit:
Provided further that unless the Corporation intimates to 1*[the
Court] that it will not appeal against any ORDER releasing any property FROM attachment, such ORDER shall not be given effect to until the expiry of the period fixed under sub-section (11) within which an appeal may be preferred, or if an appeal is preferred,
3*[unless the Court empowered to hear appeals FROM the decisions of the said Court otherwise directs], until the appeal is disposed of.
(10) An ORDER of attachment or sale of property under this section shall be carried INTO effect as far as may be practicable in the manner provided in the Code of Civil Procedure, 1908 (5 of 1908), for the attachment of sale of property in execution of a decree, as if the Corporation were the decree-holder.
4*[(10A) An ORDER under this section transferring the management of an industrial concern to the Corporation shall be carried INTO effect,
----------------------------------------------------------------------
1. Subs. by Act 74 of 1972, s. 17, for "the District Judge".
2. Subs. by Act 56 of 1974 s. 3 and Sch. II, for "he".
3. Subs. by Act 74 of 1972, s. 7 for unless the High Court otherwise directs".
4. Ins. by Act 28 of 1955, s. 20.60
as far as may be practicable, in the manner provided in the Code of
Civil Procedure, 1908 (5 of 1908), for the possession of immovable property or the delivery of movable property in execution of a decree, as if the Corporation were the decree-holder.]
(11) Any party aggrieved by an ORDER under sub-section (7) or sub-section (9) may, within thirty days FROM the date of the order,
1*[appeal to the Court empowered to hear appeals FROM the decisions of the Court which passed the ORDER and the appellate Court may] after hearing the parties pass such orders as it thinks proper.
(12) Nothing in this section shall be construed, where proceedings for liquidation in respect of the industrial concern have commenced before an application is made under sub-section (1) as giving to the Corporation any preference over the other creditors of the industrial concern not conferred on it by any other law.
2* * * * *
3*[(14) For the removal of doubts, it is hereby declared that any
Court competent to grant an ad interim injunction under this section shall also have the power to appoint a receiver and to exercise all other powers incidental thereto.
(15) All proceedings (whether by way of suits or appeals or other proceedings) under this Act pending before a District Judge or an
Additional District Judge of a High Court at the commencement of the
Industrial Finance Corporation (Amendment) Act, 1972 (74 of 1972), shall, on such commencement, be proceeded with and disposed of as if this section had not been amended by the said Act.
(16) Every suit or other proceedings which are disposed of in accordance with the provisions contained in sub-section (15) or in respect of which time for appeal has not expired at the commencement of the Industrial Finance Corporation (Amendment) Act, 1972 (74 of
1972), may, on such commencement, be appealed against as if this section had not been amended by the said Act.]
----------------------------------------------------------------------
1. Subs. by Act 74 of 1972, s. 17, for "appeal to the High Court, and upon such appeal, the High Court may".
2. Sub-section (13) omitted by s. 17, ibid.
3. Ins. by s. 17, ibid.
61.30A.
Power of Corporation to appoint Directors of an industrial concernwhen management is taken over.
1*[30A. Power of Corporation to appoint Directors of an industrial concern when management is taken over. (1) When the management of an industrial concern is taken over the Corporation, the
Corporation may, by ORDER notified in the Official Gazette, ap Last updated date on 01.02.2008
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