The Railway Companies (Emergency Provisions) Act, 1951

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The Railway Companies (Emergency Provisions) Act has been incorporated on 14th September, 1951. This Act has been enacted to make provisions for the proper administration and management of Railway Companies in resolving the matters in an efficient way on certain special cases.

The Central Government holds the power to implicate this Act to any railway company as it deems necessary and it also provides with the appointment of Directors when deems necessary in the affairs of the railway companies. The necessity arises when there is any inconvenience of Person using railway facilities that is administered by the railway company or when there is serious unemployment amongst a section of  community or if any serious dislocation in any trade or industry using the railway or if the Central Government thinks fit for National Interest. In these above cases the Central Government shall by notification by Order shall appoint as many numbers of Directors or such other persons as it deems fit for effective management and administration of the railway company.

In case of such notified Order by the Central Government, all person who is holding Office immediately before the appointment day of this Act shall be ceased from Office. In case of any contract between the Officials shall be cancelled immediately from the day of appointment of this Act. The managing agent shall be appointed by the Companies Act and Memorandum of Association and Article of Association shall of railway company, be prepared and they are subject to other provision of this Act and they shall not be removed without the consent of the Central Government. The Director shall perform necessary action inorder to take custody of such property under its control. All property of auctionable claim and such other property as prescribed shall be taken custody by the Directors of the railway companies.

The Director of the railway companies shall have the power subject to the Central Government to take all the necessary steps to lead a efficient management of the railway company unless any such powers conferred by the Companies Act or in Memorandum of Association and Articles of Association of the railway company to appoint number of Chairman to delegate the power to the Directors of the railway company or to carryout repairs of any machineries, buildings or any tangible asset that is taken into custody by the Directors of the railway company or to do all or any act in pursuance to maintenance of railways of the railway company or appoint such other person to provide necessary functions in pursuance of this Act or Directors shall have enormous powers to make any rules and regulations subject to the sanction of the Central Government. The Directors are bound to maintain the Statements of all affairs of Railway Company. The Statement contains all forms of assets and liabilities, creditor’s and Debtors details on their debit and credit transactions. The Statements shall be submitted by several person from their authority before the notified Order passed by the Central Government. In case of any violation by any such person shall be penalized as prescribed in this Act.

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In case if any person having interest over the shares of the railway company, but the name stands in another person’s name in the register of shareholder of railway company shall inform within the date of such notified Order by the Central Government, in case of his failure he shall not get his title. The Director shall take any necessary steps in pursuance to this Act in case of any recovery of damages for any illegal activities done by the past Directors or any other person before the notified Order by the Central Government and he shall be no liable for any expenses in pursuance to the proceedings under the prescribed provision of this Act. In case of any willful default for the submission of required documents and such other information by any person while required by the Director shall be punished with imprisonment with or without fine.

The Central Government shall appoint a nomination for the Directors in case of casual vacancies between the Directors either caused by death or resignation of some Directors. Not only that the Directors shall not be at any time be questioned for these vacancies among this Directors. There shall be no rights to claim compensation for any premature termination of such managing agent not otherwise prescribed by any other Act in force or any other laws that is in favour of such managing agent. The Central Government shall by notified Order appoint any Director or stop appointment of Director. It shall direct such Directors to revest all the properties back to such person who had vested with that property and reconstitute by fresh appointment of new Body of Directors to take charge of the management of Railway Company. This is made by the resolution passed by the shareholders for appointment of Directors.

In case other Act or this Act unless and until it is consistent it shall not be applicable at any circumstances. Not only that this Act is not derogative to any other Act affecting any other provisions that is relevant. The Central Government shall delegate numerous powers to any other Directors or such other Officer as it deems fit and necessary. No legal proceedings shall be taken against any act done in pursuance to this Act in good faith. The Central Government shall hold enormous right to form many number of rules and regulations or any other activities in pursuance to this Act as it deems fit.

In case of Repealing Clause, The Railway Companies (Emergency Provisions) Ordinance, 1951 has been repealed without affecting previous Ordinance. In case of any act done through provisions that are repealed by the Ordinance shall be taken into consideration as if it is done in pursuance to this Act as they are still in force.

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by C.Srivenkatesh Prabhu.