10. Management, etc., of the undertakings of the Company.—(1) The general superintendence,
direction, control and management of the affairs and business of the undertakings of the Company, the
right, title and interest in relation to which have vested in the Central Government under section 3,
shall,—
(a) where a direction has been given by the Central Government under sub-section (1) of
section 6, vest, on and from the date specified in such direction, in the existing Government company
specified therein; or
(b) where a declaration has been made under sub-section (1) of section 7, vest, on and from the
date of such declaration, in the new Government company specified therein; or
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(c) where no direction referred to in clause (a) or declaration under clause (b) has been given or
made, vest, on and from the appointed day, in one or more Custodians appointed by the Central
Government under sub-section (2),
and thereupon the existing, or new, Government company so specified or the Custodian or Custodians so
appointed, as the case may be, shall be entitled to exercise, to the exclusion of all other persons, all such
powers and do all such things as the Company is authorised to exercise and do in relation to its
undertakings.
(2) The Central Government may appoint one or more individuals or a Government company as the
Custodian or Custodians of the undertakings of the Company in relation to which no direction has been
made by it under sub-section (1) of section 6 or no declaration has been made by it under sub-section (1)
of section 7.
(3) The Custodian or Custodians so appointed shall receive from the funds of the undertakings of the
Company such remuneration as the Central Government may fix and hold office during the pleasure of
the Central Government.
11. Duty of persons in charge of management of undertakings of the Company to deliver all
assets, etc.—(1) On the vesting of the management of the undertakings of the Company in an existing, or
a new, Government company or on the appointment of a Custodian or Custodians, all persons in charge of
the management of the undertakings of the Company immediately before such vesting or appointment
shall be bound to deliver to such Government company, or Custodian or Custodians, as the case be, all
assets, books of account, registers and other documents in their custody relating to the undertakings of
such Company.
(2) The Central Government may issue such directions as it may deem desirable in the circumstances
of the case to the existing, or new, Government company or the Custodian or Custodians as to the powers
and duties of such Government company, or Custodian or Custodians and such Government company, or
Custodian or Custodians may also, if it is considered necessary so to do, apply to the Central Government
at any time for instructions as to the manner in which the management of the undertakings of the
Company shall be conducted or in relation to any other matter arising in the course of such management.
(3) Any person, who on the appointed day has in his possession or under his control any books,
documents or other papers relating to the undertakings of the Company which have vested in the Central
Government or in any existing, or new, Government company and which belong to the Company, or
would have so belonged if the undertakings of the Company had not vested in the Central Government or
the existing, or new, Government company, shall be liable to account for the said books, documents or
other papers to the Central Government or the existing, or new, Government company, as the case may
be, and shall deliver them up to the Central Government or the existing, or new, Government company or
to such person or body of persons as the Central Government or such Government company may specify
in this behalf.
(4) The Central Government or the existing, or new, Government company may take, or cause to be
taken, all necessary steps for securing possession of all undertakings which have vested in the Central
Government or the existing, or new, Government company under this Act.
(5) The Company shall, within such period as the Central Government may allow in this behalf,
furnish to that Government a complete inventory of all its properties and assets, as on the appointed day,
pertaining to the undertakings which have vested in the Central Government under section 3, and, for this
purpose, the Central Government or the existing, or new, Government company shall afford to the
Company all reasonable facilities.
12. Accounts to be rendered by the Company or any other person.—(1) Where, in pursuance of
any decree, order or injunction of any court or otherwise—
(a) the authorised persons were, after the date on which the management of the undertakings of
the Company was taken over by them under section 18A of the Industries (Development and
Regulation) Act, 1951 (65 of 1951) and before the appointed day; or
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(b) the Central Government or the existing, or new, Government company, as the case may be, is,
on or after the appointed day,
prevented from taking over the management of any part of the undertakings of the Company, the
Company, or any other person in possession, custody or control of such part, shall, in relation to the
period commencing on the date of such taking over and ending on the date on which such part was or is
handed over to the authorised persons or, as the case may be, the Central Government or the existing, or
new, Government company, render, within a period of sixty days from the appointed day or where such
part was so handed over after the appointed day, within a period of sixty days from the date of such
handing over, accounts with regard to the—
(i) assets and stores of the undertakings or any part thereof, acquired, utilised or sold during the
said period; and
(ii) income derived by the Company or any other person from the undertakings or any part thereof
during the said period,
to the Central Government or the existing, or new, Government company, as the case may be.
(2) If, on examination of the accounts referred to in sub-section (1) any income or other monies is or
are found to have been derived by the Company or any other person from such undertakings or any part
thereof during the period referred to in that sub-section, or any other monies are found to be payable to
the Company, such income or other monies shall be recoverable by the Central Government or the
existing, or new, Government company from the Company or such other person, as the case may be, and
from the amount payable under this Act to the Company and the debt due to the Central Government or
the existing, or new, Government company, as the case may be, on this account shall rank as an unsecured
debt.
(3) If no account is rendered by the Company or such other person in respect of the undertakings or
any part thereof within the period referred to in sub-section (1) or if the Central Government or the
existing, or new, Government company, as the case may be, has any reason to believe that the account
rendered by the Company or such other person is incorrect or false in any material particular, the Central
Government or the existing, or new, Government company, as the case may be, may refer the matter to
the Commissioner and thereupon the Commissioner shall determine the income derived by the Company
or such other person from such undertakings or any part thereof during the period referred to in
sub-section (1) and take steps to recover the said income or other monies from the Company or such other
person and from the amount payable to the Company under this Act, as if the debt due to the Central
Government or the existing, or new, Government company, as the case may be, on this account were an
unsecured debt.
(4) No mortgage, charge, lien or other incumbrance in relation to the undertakings of the Company or
any part thereof shall be binding on the Central Government or the existing, or new, Government
company, as the case may be, if such mortgage, charge, lien or other incumbrance was created, at any
time during the period in which the authorised persons were and the Central Government or the existing,
or new, Government company, as the case may be, is prevented, by any decree, order or injunction of any
court or otherwise, from taking over the management of such undertakings or any part thereof.
13. Accounts and audit.—The Custodian or Custodians of the undertakings of the Company shall
maintain an account of the undertakings of the Company in such form and manner and under such
conditions as may be prescribed and the provisions of the Companies Act, 1956 (1 of 1956), shall apply
to the audit of the account so maintained as they apply to the audit of the accounts of a company.