4. Taking over of management of the undertaking of the Metal Corporation.—(1) On the
commencement of this Act, the Metal Corporation of India (Acquisition of Undertaking)
Act, 1966 (36 of 1966), shall stand repealed, and on such repeal, the undertaking of the Metal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provisions of section 3 of the Act so repealed, and the undertaking of the Metal Corporation together with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.