16. Duty to deliver possession of properties, etc.—(1) Where any property appertaining to any of
the undertakings of the dissolved company has been transferred to, and vested in, the Steel Authority of
India,—
(a) every person in whose possession, custody or control any such property may be, shall, on
demand by the Steel Authority of India, forthwith deliver the property to the Steel Authority of India
or to such person as the Steel Authority of India may authorise in this behalf;
(b) any person who, immediately before such vesting, has, in his possession, custody or control,
any books, documents or other papers relating to any of the undertakings of the dissolved company
shall be liable to account for the said books, documents and papers to the Steel Authority of India and
shall deliver them to the Steel Authority of India or to such person as the Steel Authority of India may
authorise in this behalf.
(2) Without prejudice to the other provisions contained in this section, it shall be lawful for the Steel
Authority of India to take all necessary steps for taking possession of all properties, which have been
transferred to, and vested in, it under this Act.
17. Penalties.—Any person who,—
(a) having in his possession, custody or control any property forming part of the dissolved
company wrongfully withholds such property from the Steel Authority of India; or
(b) wrongfully obtains possession of, or retains, any property forming part of any of the
undertakings of the dissolved company; or
(c) wilfully withholds or fails to furnish to the Steel Authority of India or any person authorised
by it any books, documents or other papers relating to any of the undertakings of the dissolved
company which may be in his possession, custody or control; or
(d) fails to deliver to the Steel Authority of India or to a person authorised by it, any assets, books
of account, registers or other documents in his possession, custody or control relating to any of the
undertakings of the dissolved company; or
(e) wrongfully removes or destroys any property forming part of any of the undertakings of the
dissolved company; or
(f) wrongfully uses any property forming part of any of the undertakings of the dissolved
company,
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.
18. Offences by companies.—(1) Where an offence under this Act has been committed by a
company, every person who, at the time 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.
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Explanation.—For the purposes of this section,—
(a) “company” means any body corporate and includes a firm or other association of
individuals; and
(b) “director”, in relation to a firm, means a partner in the firm.
19. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall
lie against the Central Government or the Steel Authority of India or any of its officers or other
employees for anything which is in good faith done or intended to be done under this Act.
20. Cognizance of offences.—Notwithstanding anything contained in the Code of Criminal
Procedure, 1973 (2 of 1974), no Court shall take cognizance of any offence under this Act except on a
complaint, in writing, made by the Central Government or any officer authorised in this behalf by the
Government.
21. Saving of contracts, etc.—All contracts, deeds, bonds, agreements and other instruments of
whatever nature to which the dissolved company is a party subsisting or having effect immediately before
the appointed day, shall, as from that day, be of full force and effect against, or, as the case may be, in
favour of, the Steel Authority of India and may be enforced as fully and effectually as if, instead of the
dissolved company, the Steel Authority of India had been a party thereto.
22. Saving of legal proceedings.—If, on the appointed day, there is pending any suit, arbitration,
appeal or other legal proceeding of whatever nature by or against the dissolved company, the same shall
not abate, be discontinued or be in any way prejudicially affected by reason of the transfer of the
undertakings of the dissolved company or of anything contained in this Act, but the suit, arbitration,
appeal or other proceeding may be continued, prosecuted and enforced by or against the Steel Authority
of India in the same manner and to the same extent as it would or might have been continued, prosecuted
and enforced by or against the dissolved company if this Act had not been passed.
23. Board of Directors of the Steel Authority of India to adopt accounts of dissolved
company.—(1) The accounts of the dissolved company shall stand closed on the appointed day and the
balance-sheet and the profit and loss accounts for the current financial year up to the appointed day shall
be prepared and audited in accordance with the provisions of the Companies Act.
(2) Notwithstanding the provisions in the Companies Act, the Board of Directors of the Steel
Authority of India shall be deemed to be the Board of Directors of the dissolved company and the
shareholders of the Steel Authority of India shall be deemed to be the shareholders of the dissolved
company for the purpose of adoption of the accounts, directors’ report and completion of other formalities
in accordance with the provisions of the Companies Act in this regard.
24. Transfer of documents relating to the dissolved company.—(1) The Registrar of Companies
with whom the dissolved company is registered shall, as soon as may be after the appointed day, transfer
all documents relating to the dissolved company to the Registrar of Companies, New Delhi.
(2) The Registrar of Companies, New Delhi, on receipt of the documents relating to the dissolved
company, shall add those documents to the file maintained by him in relation to the Steel Authority of
India, and shall consolidate the files relating to the dissolved company and the Steel Authority of India
and the documents filed by the dissolved company shall, for the purposes of the Companies Act, be
deemed to have been filed by the Steel Authority of India in relation to the business of the undertakings of
the dissolved company which stands transferred to and vested in the Steel Authority of India by virtue of
section 6.
25. Power to remove difficulties.—If any difficulty arises in giving effect to the provisions of this
Act, the Central Government may, by order, published in the Official Gazette, make such provisions not
inconsistent with the provisions of this Act, as appears to it to be necessary, for the removal of the
difficulty:
Provided that no such order shall be made after the expiry of a period of three years from the
appointed day.
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26. Act to override the provisions of other laws.—The provisions of this Act or of any order made
thereunder shall have effect notwithstanding anything contained in the Companies Act or in any other law
for the time being in force or in any contract, express or implied, or in any rules or regulations having
effect by virtue of any law other than this Act.
27. Power to amend memorandum and articles of association.—(1) For the purpose of giving
effect to the provisions of this Act, the Central Government may, by notification in the Official Gazette,
make amendments in the memorandum or articles of association, or both of the Steel Authority of India.
(2) Any amendments in the memorandum or articles or association of the Steel Authority of India
made in pursuance of sub-section (1) shall have effect notwithstanding anything contained in the
Companies Act.
28. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,
make rules to carry out the provisions of this Act.
(2) 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.