INTER-STATE CORPORATIONS ACT,
1957 INTER-STATE CORPORATIONS ACT, 1957 [Act, No. 38 of 1957] [20th September,
1957] This Act may be called the Inter-State
Corporations Act, 1957. In this Act, "inter-State
corporation" means any body corporate constituted under any of the Acts
specified in the Schedule and functioning in two or more States by virtue
of section 109 of the States
Re-organisation Act, 1956,[1] [or
of any other enactment relating to reorganisation of States.] If it appears to the
Government of a State in any part of which an inter-State corporation is
functioning that the inter-State corporation should be reconstituted and
reorganised as one or more inter-State corporations or that it should be
dissolved, the State Government may frame a scheme for such reconstitution and
reorganisation or such dissolution, as the case may be, including proposals
regarding the transfer of the assets, rights and liabilities of the inter-State
corporation to any other corporations or State Governments and the transfer or
re-employment of employees of the inter-State corporation and forward the
scheme to the Central Government. (1)
On
receipt of a scheme forwarded to it under section 3, the Central Government
may, after consulting the State Governments concerned, approve the scheme with
or without modifications and give effect to the scheme so approved by making
such order as it thinks fit. (2)
An
order made under sub-section (1) may provide for all or any of the following
matters, namely:- (a)
the
dissolution of the inter-State corporation; (b)
the
reconstitution and reorganisation in any manner whatsoever of the inter-State
corporation including the constitution, where necessary, of new corporations; (c)
the
area in respect of which the reconstituted corporation or new corporation shall
function and operate; (d)
the
transfer, in whole or in part, of the assets, rights and liabilities of the
inter-State corporation (including the rights and liabilities under any
contract made by it) to any other corporations or State Governments and the
terms and conditions of such transfer; (e)
the
substitution of any such transferee for the inter-State corporation, or the
addition of any such transferee, as a party to any legal proceeding to which
the inter-State corporation is a party; and the transfer of any proceedings pending
before the inter-State corporation to any such transferee; (f)
the
transfer or re-employment of any employees of the inter-State corporation to,
or by any such transferee and subject to the provisions of section 111 of
the States Reorganisation Act, 1956, [2][or
of any other enactment relating to reorganisation of States,] the terms and
conditions of service applicable to such employees after such transfer or
re-employment; (g)
the
adaptations or modifications of the Act under which the inter-State corporation
was constituted, whether by way of repeal or amendment as may be necessary or
expedient to give effect to the approved scheme; (h)
such
incidental, consequential and supplementary matters as may be necessary to give
effect to the approved scheme. (3)
Where
an order is made under this section transferring the assets, rights and
liabilities of any inter-State corporation, then, by virtue of that order, such
assets, rights and liabilities of the inter-State corporation shall vest in and
be the assets, rights and liabilities of, the transferee. (4)
Every
order made under this section shall be published in the Official Gazette and
the Act under which the inter-State corporation was constituted shall have
effect subject to the provisions of the order and the adaptations and
modifications made thereby until altered, repealed or amended by the competent
Legislature of a State. (5)
Every
order made under this section shall be laid before each House of Parliament, as
soon as may be, after it is made. The Central
Government may, by notification in the Official Gazette, specify in the
Schedule any Act under which a body corporate constituted for a State is
functioning in two or more States by virtue of section 109 of
the States Reorganisation Act, 1956,[3]
[or of any other enactment for the reorganisation of States,] and on the issue
of such notification, the Schedule shall be deemed to be amended by the
inclusion of the said Act therein. SCHEDULE 1 THE SCHEDULE (See sections 2and 5) 1.
The
Bombay Medical Practitioners Act, 1938 (Bom. 26 of 1938). 2.
The
Bombay Secondary School Certificate Examination Act 1948 (Bom. 49 of 1948). 3.
The
Bombay Housing Board Act, 1948 (Bom. 79 of 1948). 4.
The
Bombay Khar Lands Act, 1948 (Bom. 72 of 1948). 5.
The
Bombay Public Trusts Act, 1950 (Bom. 29 of 1950). 6.
The
Bombay Labour Welfare Fund Act, 1953 (Bom. 40 of 1953). 7.
The
Bombay Nurses, Midwives and Health Visitors Act, 1954 (Bom. 14 of 1954). 8.
The
Bombay Village Industries Act, 1954 (Bom. 41 of 1954). 9.
The
Hyderabad Nurses, Midwives and Health Visitors' Registration Act, 1951 (Hyd. 19
of 1951). 10.
The
Hyderabad Khadi and Village Industries Board Act, 1955 (Hyd. 12 of 1955) 11.
The
Madhya Pradesh Bhudan Yagna Act, 1953 (M.P. 15 of 1953).[12. Rajastlian Medical
Act, 1952 (Raj. Act 13 of 1952). 12.
Rajasthan
Indian Medicine Act, 1953 (Raj. Act 5 of 1953). 13.
Rajasthan
Bhudan Yajna Act, 1954 (Raj. Act 16 of 1954). 14. Rajasthan Khadi and
Village Industries Board Act, 1955 (Raj. Act 5 of 1955).][16. M. B. Panchayats
Act. Smt. 2006 (M.B. Act 58 of 1949). 15. M. B. Indian
Medicines Act, Smt. 2009 (M. B. Act 28 of 1952). 16. M. B. Dais'
Registration Act, Smt. 1953 (M. B. Act 22 of 1953). 17. M. B. Medical Practitioners'
Registration Act, 1954 (M. B. Act 16 of 1954). 18. M. B. Nurses,
Midwives and Health Visitors' Registration Act, 1955 (M. B. Act 2 of 1955). 19. M. B. Bhoodan Yajna
Act, 1955 (M. B. Act 3 of 1955). 20. M. B. Khadi and
Village Industries Board Act, 1955 (M. B. Act 24 of 1955).] 21. ?Hyderabad Agricultural Produce Markets Act, (2
of 1339 Fasli)] 22. The Dentists Act.
1946 (16 of 1946). 23. ?Madras Hindu Religious and Charitable
Endowments Act, 1951 (Mad. Act 18 of 1951) - See Gazette of India, 26-9-1959,
Pt. II, Sec. 3 (i), p. 1276. 24. The Official Trustees
Act. 1913 (2 of 1913). 25. Administrator-General's
Act, 1913 (3 of 1913).] 26. The Pharmacy Act,
1948 (8 of 1948) - See Gazette of India, 6-8-1960, Pt. II, Sec. 3 (i), p. 1208. 27. Bombay Homoeopathic
Act, 1951 (Bom Act 48 of 1951)--See Gazette of India, 13-8-1960, Pt. II, Sec. 3
(i),p. 1258. 28. Bombay Khadi and
Village Industries Board Act, 1960 (Bom Act 19 of 1960) -- See Gazette of
India,10-9-1960, Pt. II, Sec. 3 (i), p. 1422. 29. Bombay Village
Panchayats Act, 1958 (Bom Act 3 of 1959) -- See Gazette of India. 27-5-1961,
Pt. II, Sec. 3(i), p. 815. 30. Charitable Endowments
Act, 1890 (6 of 1890)-See Gazette of India, 14-10-1961, Pt. II. Sec. 3 (i), p.
1531. 31. Punjab Nurses'
Registration Act. 1932 (Punj. Act 1 of 1932). 32. ?Punjab Gram Panchayat Act, 1952 (Punj. Act 4
of 1953). 33. The Wakf Act, 1954
(C. A. 29 of 1954). 34. Punjab Khadi and
Village Industries Board Act, 1955 (Punj. Act 40 of 1956). 35. ?Punjab Panchayat Samitis and Zilla Parishads
Act, 1961 (Punj Act 3 of 1961). 36. ?Punjab Agricultural Produce Markets Act, 1961
(Punj. Act 23 of 1961). 37. Administrator-General's
Act, 1963 (C.A. 45 of 1963).] 38. Punjab Homoeopathic
Practitioners Act, 1965 (Punj Act 16 of 1965) - See G.S.R. 293, Gazette of
India,17-2-1968, Pt. II, Sec. 3 (i), p. 301. 39. ?Punjab Bhudan Yagna Act, 1955 (Punj. Act 45 of
1956) - See G.S.R. 1473. Gazette of India, 10-8-1968,Pt. II, Sec. 3 (i), p.
1875. 40. Punjab Labour Welfare
Fund Act, 1965 (Punj Act 17 of 1965). 41. Punjab State Faculty
of Ayurvedic and Unani Medicines Act, 1963 (Punj. Act 38 of 1963).][a] See
G.S.R. 1619, Gazette of India, 7-9-1968, Pt. II, Sec. 3 (i), p. 2108. 42.
Royal
Family (Baroda) Trust Fund (Repealing) Act, 1956 (Bom Act 4 of 1957) - See
G.S.R. 459, Gazette of India, 28-3-1969, Pt. II, Sec. 3 (i), p. 680. (a)
As
a result of the States Reorganisation Act, 1956, a number of corporate bodies
constituted under State Acts before the commencement of that Act (i.e., the 1st
November, 1956) for the purposes of individual States found themselves
transformed into inter-State corporations on that date. To meet the situation,
it was provided in section 109 of the States Reorganisation Act that such a
corporation shall continue to function and operate in those areas in respect of
which it was functioning and operating immediately before 1st November, 1956,
subject to the directions of the Central Government, until other provision is
made by law in respect of that corporation. This was only intended to be a
transitional provision. (b)
It
is proposed in this Bill to make a general provision for the reorganisation of
any such inter-State corporation as one or more intra-State corporations at the
instance of any of the State Governments concerned in that corporation. The
State Government would frame a scheme for the purpose, providing for the
division of the assets and liabilities of the corporation, the transfer or
re-employment of its employees and other incidental matters. The Central Government
after consulting the other State Governments concerned would give effect to the
scheme by making a comprehensive order and notifying it in the Official
Gazette. (c)
Eleven
State Acts are specified in the Schedule to the Bill on the basis of information
supplied by the State Governments. Since it is possible that this list may not
be complete, it is proposed in clause 5 of the Bill to empower the Central
Government to include in the Schedule by means of a notification any other
State Act under which a corporate body is now functioning in more than one
State as a result of the States Reorganisation Act.
Preamble
1 - INTER-STATE CORPORATIONS ACT, 1957