The Oil and Natural Gas Commission (Transfer of Undertaking and Repeal) Act, 1993 (Act No. 65 of 1993) is the Central Act and it was enacted with the object to transfer to Oil and Natural Gas Corporation Limited Company and also provide for vesting of Undertaking of Oil and Natural Gas Commission in the same Company which is incorporated under the provisions of Companies Act, 1956. The Act, further makes provisions for repealing of The Oil and Natural Gas Commission Act, 1959. For the development of Oil and Natural Gas exploration and mining in India, the Government established Oil and Natural Gas Commission in the year 1956, however, in the year 1959, by enacting the Act of 1959, the Commission was transferred into a statutory body.
The Section 1 of the Act clarifies short title of the Act and make provisions as to commencement date of the Act, which should be 2nd July, 1993. And Section 2 of the Act defines several terminologies which are being used for interpreting and understanding the true meaning of the provisions given under the Act.
The another important provisions being similar to the purpose of the Act, viz. Section 3 of the Act dealing with transfer and vesting of Oil and Natural Gas Commission into the Corporation by the Central Government on the date which is to be published in the notification in its Official Gazette.
The Section 4 of the Act deals with effect of such transfer of Commission into a Corporation, wherein under its first sub section it is given that, by such transfer and vesting of Commission into Corporation, the whole capital of such Commission should be vested in the Corporation. Under its second sub section, the Act provides that, all the assets, rights, powers, etc. and even all properties of whatsoever nature should also be transferred on such vesting of Commission into the Corporation. Similarly, all rights and liabilities and obligations either inland or out side India and also all contracts, bonds, etc. should also be included with such transfer as in the name of Corporation. Sub section (4) says that, if any proceeding pending before such transfer of Commission, should also be later on commencement of this Act and soon after the Commission becomes Corporation should be treated as under the name of and against the Corporation. Similarly, Section 5 of the Act says that, whatever, licences, leases, permits or even any concessions, quotas, etc. granted to the Commission before such transfer or vesting, should after such vesting to be treated as have been granted to the Corporation. And Section 6 of the Act says that, if any exemption benefit from assessment of any tax or other benefits relating to set off or carry forward of depreciation or investment allowances or other allowances or loss, which have been extended under Income Tax Act, 1961 (Act No. 43 of 1961) to the Commission should under this provision of the Act continued to be extended for Corporation. Even such transfer of undertaking under the provisions of this Act, should be treated as transfer under Income Tax Act, 1961 for capital gain purpose. Even Section 7 of the Act specifies that, if while taking any loan or lease, etc. any guarantee is taken by Commission before the transfer, such guarantee should continue and operate in case of Corporation.
The Section 8 of the Act, deals with important provisions as to employees and other officers of Commissions, which should be applicable to them as they are also transferred to Corporation and such provisions of their service including tenure, remuneration and also with respect to rights and privileges as to leave, passage, insurance, superannuation scheme, provident fund, etc. And if such employees or officers of Commission are not willing to be the part of Corporation then they should be treated as resigned from such office. And also under Sub Section (3) of the Act it is provided that such transfer of service from Commission to Corporation should entitled such officers or employees as to receive any compensation under the provisions of this Act or any law and no such claim will be permitted. Similarly, retired employees or officers are entitled to receive benefits similar to that of Commission. And the Chairman as have lost the post for permanent duration, should be entitled to receive compensation.
Section 9 empowers the Central Government to enter and inspect any premises, to do survey or take measurement thereon, to dig holes, etc. on such lands, not only this, but also the Central Government is empowered as to examination of records, documents, etc. in connection with such premises. Such power of the Central Government can be exercised by it through person authorized by it, who should be treated as public servant. And for any damages or loss to such land or premises so inspected by such persons while performing such act on it, the Corporation should compensate those losses or damages.
Further Section 10 empowers the Central Government as to making rules similar to the provisions of this Act, and also on the matters provided under this provision. And Section 11 of the Act deals with repealing provision, where the above mentioned Act of 1959 is required to be repealed. Similarly, section 12 of the Act requires that the Ordinance also to be repealed.