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KONKAN PASSENGER SHIPS (ACQUISITION) ACT

Ministry of Law and Justice

Act nº 62 of 1973


  • Chapter I
  • Chapter II
  • Chapter III
  • Chapter IV
  • Act nº 62 of 1973

Preamble

THE KONKAN PASSENGER SHIPS (ACQUISITION) ACT, 1973

[Act, No. 62 of 1973]

[22nd December, 1973]

PREAMBLE

An Act to provide for the acquisition and transfer of the Konkan passenger ships in order to serve better the needs of the mari-time passengers of the Konkan coastal region and for matters connected therewith incidental thereto.

WHEREAS Messrs.Chowgule Steamships Limited, a company, was running the Konkan coastal passenger shipping service;

AND WHEREAS the Konkan coastal passenger shipping service, which was suspended owing to the monsoons, was to be resumed by the said company by the first week of September, 1973, but has not yet been resumed, and the non-resumption of such passenger service is causing undue hardship to the maritime passengers of the Konkan coastal region;

AND WHEREAS complaints have been received by the Central Government to the effect that the Konkan coastal passenger shipping service was not being run by the said company according to schedule and that the said service was irregular, unpunctual and undependable;

AND WHEREAS in the interests of the maritime passengers of the Konkan coastal region it is urgently necessary to resume the Konkan coastal passenger shipping service and for that purpose to acquire the ships, known as "Konkan Sevak" and "Sarita" with which the said passenger shipping service was being run by the said company.

BE it enacted by Parliament in the Twenty-fourth Year of the Republic of India as follows:-

Chapter I

Section 1. Short title and commencement

(1) This Act may be called the Konkan Passenger Ships (Acquisition) Act, 1973.

(2) It shall be deemed to have come into force on the 7th day of November, 1973.

Section 2. Definitions

(1) In this Act, unless the context otherwise requires,--

(a) "appointed day" means the 7th day of November, 1973;

(b) "company" means the Chowgule Steamships Limited, being a company as defined in the Companies Act, 1956, (1 of 1956) and having its registered office in the Union territory of Goa, Daman and Diu;

(c) "Government company" has the meaning assigned to it by section 617 of the Companies Act, 1956 (1 of 1956);

(d) "Konkan coast" means that part of the western coast of India which is commonly known as the "Konkan coast";

(e) "Konkan passenger ships" means the passenger ships, known as "Konkan Sevak" and "Sarita" and owned by the company.

(2) Words and expressions used in this Act and not defined but defined in the Merchant Shipping Act, 1958, (44 of 1958) have the meaning respectively assigned to them in that Act.

Chapter II

Section 3. Acquisition of the Konkan passenger ships

On the appointed day, the ownership of the Konkan passenger ships shall, by virtue of this Act, stand referred to, and vest in, the Central Government free from all incumbrances.

Section 4. Power of Central Government to direct vesting of Konkan passenger ships in a Government company

(1) Notwithstanding anything contained in section 3, the Central Government may, if it is satisfied that a Government company is willing to comply, or has complied, with such terms and conditions as that Government may think fit to impose, direct, by an order in writing, that the ownership in relation to the Konkan passenger ships shall, instead of continuing to vest in the Central Government, vest in that Government company either on the date of publication of the direction or on such earlier or later date (not being a date earlier than the appointed day) as may be specified in the direction.

(2) Where an order vesting the ownership of the Konkan passenger ships in any Government company is made under sub-section (1), all the rights, liabilities and obligations of the Central Government in relation to such ships shall, on and from the date of such vesting, be deemed to have become the rights, liabilities and obligations, respectively, of the Government company.

Section 5. General effect of vesting

(1) For the purposes of section 3, the Konkan passenger ships shall be deemed to include all assets, rights powers, authorities, privileges and all properties in the ships, all rights under any policy of insurance, licence or any other instrument, and all other properties, belonging to or held for the purpose of running, the ships (or for which any order has been placed by the company), including fuels, stores, machinery apparatus, navigational aids, maps, charts, spare tail shafts, spare propellers and other spare parts, whether on board or on the shore.

(2) If on the appointed day any suit, appeal or other proceeding of whatever nature in relation to any business of the company relating to the Konkan coastal passenger shipping service or the Konkan passenger ships is pending by or against the company, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason of the transfer of the Konkan passenger ships, or of anything contained in this Act, but the suit, appeal or other proceeding may be continued, prosecuted and enforced by or against the company.

Section 6. Central Government to become the lessee in respect of shore properties, etc

(1) On and from the appointed day, a permanent lease shall be deemed to have been granted by the company in favour of the Central Government or the Government company, as the case may be, in respect of every property, movable and immovable (including jetties, wharves and other property needed for navigational purposes), on the shores of the Konkan coast and owned and used by the company immediately before the suspension of the Konkan coastal passenger shipping service for running the said service.

(2) The lease referred to in sub-section (1) shall be held by the Central Government or the Government company, as the case may be, or such terms and conditions and on the payment of such rent as may be mutually agreed upon by and between the company and the Central Government or the Government company, and in default of such agreement, as may be determined by the principal civil court of original jurisdiction within the local limits of whose jurisdiction the property in question is situated.

(3) Where any property, movable or immovable (including jetties, wharves and other property needed for navigational purposes), on the shores of the Konkan coast was used by the company for running the Konkan coastal passenger shipping service and was held by it, immediately before the appointed day, under any lease or other agreement, the Central Government or the Government company, as the case may be, shall be deemed to have become substituted in place of the company as the lessee of such property or as party to such other agreement, as the case may be, and shall hold such lease or other agreement on the same terms and conditions on which it was being held by the company immediately before the appointed day.

Section 7. Central Government or Government company not to be liable for prior liabilities

(1) Every liability of the company in relation to the Konkan passenger ships in respect of any period prior to the appointed day shall be enforceable against it and not against the Central Government or the Government company.

(2) For the removal of doubts, it is hereby declared that--

(a) no claim for wages, provident fund, pension, gratuity, cesses, taxes or wharfage or any other dues in respect of any period prior to the appointed day in relation to the Konkan passenger ships shall be enforceable against the Central Government or the Government company;

(b) no award, decree or order of any court, tribunal or other authority in relation to the Konkan passenger ships or any of them, whether passed before or after the appointed day, in relation to any matter, claim or dispute which arose before the appointed day shall be enforceable against the Central Government or the Government company;

(c) no liability for the contravention of any provision of law for the time being in force, made before the appointed day, shall be enforceable against the Central Government or the Government company.

Section 8. Duty to deliver possession of Konkan passenger ships

(1) Notwithstanding any decree, judgment or order of any court or anything contained in any other law for the time being in force or in any contract or other instrument, the company or any other person having possession of the Konkan passenger ships, shall deliver possession of such ships to the Central Government or the Government company forthwith.

(2) The Central Government may take or cause to be taken all necessary steps for securing possession of the Konkan passenger ships, the ownership of which has vested in it under section 3.

(3) Any person having in his possession, custody or control any books, documents or other papers relating to the Konkan passenger ships or any of them shall be liable to account for the said books, documents or other papers to the Central Government or to such person as that Government may specify in this behalf:

Provided that where common books, documents or other papers are maintained by the company in relation to the Konkan passenger ships or any of them and other ships, copies of so much of the books, documents and other papers as relate to the Konkan passengers ships or any of them shall be delivered forthwith to the Central Government or the person specified by that Government.

Section 9. Duty to furnish inventory of articles on the ships

The company shall, within such period as the Central Government may allow in this behalf, furnish to that Government a complete inventory, as on the appointed day, of the assets, instruments, apparatus and all other properties, whether on board or on the shores or elsewhere, in relation to the Konkan passenger ships.

Chapter III

Section 10. Payment of amount

(1) The company shall be given by the Central Government, in cash,--

(a) for the vesting in it, under section 3, of the ownership of the Konkan passenger ships, and

(b) for the vesting in it, under section 6, of the rights specified therein, an amount equal to a sum of rupees ninety lakhs.

(2) In addition to the amount specified in sub-section (1), the Central Government shall re-imburse the company to the extent of the expenses actually incurred by it for the annual survey of the Konkan passenger ships for the year 1973.

Section 11. Amount due to the Shipping Development Fund Committee to be deducted in the first instance

(1) Out of the amount referred to in section 10, the Central Government shall deduct, in the first instance, any amount due from the company to the Shipping Development Fund Committee in relation to the Konkan passenger ships and shall pay the sum so deducted to that Committee, and on such payment, the liability of the company in relation to the said ships shall, to the extent of such payment, stand discharged.

(2) The deductions referred to in sub-section (1) shall have priority over all other creditors, whether secured or unsecured.