The Indian Iron and Steel Company (Acquisition of Shares) Act, 1976 was enacted on 2nd September, 1976 but it shall considered to come into force on 17th July, 1976. Act is enacted for purchase of certain shares of Indian Iron and Steel Company Limited with a purpose of proper management of affairs of the company and to bring continuity and development of the production of goods which are essential for need of the country and matters similar to. For the act, “Company means, the Iron and Steel Company Limited forming a company within the meaning of the Companies Act, 1956 and been registered office at IISCO House, 50, Chowringhee Road, Calcutta”, “Shares means, equity or preference share in capital of the company and includes a shares pledge by any shareholder with any bank or the creditor but will not include any share capital of the company which are held by any State Government, State Bank, Steel Authority of Indian Limited, Life Insurance Corporation of India, Unit Trust of India”.
The Central Government is conferred with all shares of the company on the appointed day by efficacy of provisions lead in this act, and thus once all this shares been transferred to central government then they are deem to be registered in the register members of company, and hence all such shares should be free from obligation liabilities, mortgages, charges etc., but here if any share value whole or part is not paid by the shareholder to company or any dividend which is to be paid by company is not paid then such shares cannot be transferred to central government.
Shares that are conferred to central government, its amount i.e., money is to be paid by central government to shareholders of company in cash, and the sum will be rupees seven cores twenty – three lakhs ninety-five thousand thirty-seven hundred and fifteen paise only and its rate of interest will four percent from appointed day still last day of payment made to commissioner so it is further given to before shareholders of the company.
Central Government for purpose of this act appoint a commissioner, so that he can distribute the amount of the shares. Here central government can even appoint assistant to commissioner and further even he is authorised to appoint one or more person to do the work and they shall have same powers as commissioner could have and all salaries that are paid to such commissioner and other people is paid from consolidated funds of India. Payment which has to be made by the central government to commissioner has to be made within thirty days as so amount mentioned or fixed, and thereby such, amount has to deposited in deposit account which has be opened by central government in favour of commissioner in Public Account of India and interest incurred by depositing this amount shall be in interest of the shareholders.
When commissioner is paying the amount to any person and finds there is dispute related to amount paid to him then commissioner make inquiry in relation to such dispute and after making such inquiry as he thinks fit best owes amount to him and still he has not reach to any conclusion then he may refer such dispute to civil jurisdiction court within the local limits where the company is registered and once such case referred to court, commissioner will deposit the amount that is payable to that person in court itself. Thus, sum which is to be received, commissioner will examine it separately i.e., each share of preference and equity will be examined separately by the commissioner as in relation of payments that are to be made.
Once all examination is over, commissioner shall send notice to person who claims amount, and fix a date to file the proof to claim such amount. Within fourteen days of advertisement in local English news paper the claimant has to file proof money that is to be claimed by him, and if he fails to do so then commissioner exclude him from claiming him that amount and once all procedural work is done the commissioner may distribute the amount as per the claims filed, and any person not satisfied with commissioner’s distribution then he may file appeal to civil court original jurisdiction within the local limits of whose company is registered.
by Samata. H. Joshi