Chapter III MISCELLANEOUS

The provisions of this Act shall have effect not withstanding anything inconsistent therewith contained in any law, other than this Act, or in any instrument having effect by virtue of any law, other than this Act

If any person:

(a) makes any claim for any payment under this Act knowing or having reason to believe that such claim is false or without any basis;

(b) when required under this Act so to do:

(i) omits or fails to produce any register or record of the Company; or

(ii) makes any statement or furnishes any information which is false in any material particular and which he knows or believes to be false or does not believe to be true; or

(c) makes any such statement as aforesaid in any book, account, record, register, return or other documents, he shall be punishable with imprisonment for a term, which may extend to two years, or with fine which may extend to Rs. 2,000 or with both.

(i) 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, Company for the conduct of the business of 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.

(ii) Notwithstanding anything contained in sub-section (1) where any offence under this Act 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, 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.

(i) Every contract, entered into for any service, sale or supply in India and in force immediately before the appointed day shall, unless terminated under sub-section (2), within a period of five years from the appointed day, continue to be of full force and effect against or in favour of the State Government or as the case may be, the successor Government Company.

(ii) The State Govenunent may, if it is satisfied that any contract referred to in sub-section (1) is unduly onerous or has been entered into a bad faith or is determined to the interests of tha Government or the successor Government Company; as the case may be by order in writing, either terminate such contract or make such alterations or modifications therein, as it may think fit.

Provided that the State Government shall not terminate any contract or make any alteration or modification therein except after giving to the parties to the contract, a reasonable opportunity of being heard and except

Any person who has in his possession, custody or under his control any property of or any books, documents or other papers relating to the property and assets of the Company, including any letters, memorenda, notes or other communications between him and the Company, shall be liable to account for the said property, books, documents and other papers (including such letters, memoranda, notes or other communications) to the Company and shall deliver them up to the Company or to such other person as may be authorised for the purpose by the Company.

(i) For the purpose of ascertaining whether any property is the property of the Company or for any purpose mentioned in this Act or the rules made thereunder, any person of the rank of Under Secretary and above and authorised by the State Government in this behalf shall have the right to: (a) enter and inspect any premises, (b) require any person having the possession, custody or control of any register or record of the Company to produce such register or record, (c) record the occupier of any property belonging to or claimed to be the property of the Company, to submit to the person so authorised such accounts, books or other documents or to furnish to him such information as he may reasonably think necessary; and (d) examine any person having control of, or employed in connection with the Company and require him to make any Statement touching the affairs of the Company. (ii) Any person authorised by the State Government under sub- section (1) shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.

No suit, prosecution or other legal proceeding shall lie against the State Government or any of its officers or other employees for anything which is in good faith done or intended to be done under this Act.

No court shall take cognizance of any offence punishable under this Act, except with the previous sanction of the State Government in this behalf.