MISCELLANEOUSCentral

Section 27 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984

Penalties.

Any person who,--

(a)having in his possession, custody or control any property forming part of any undertaking of either of the two companies, wrongfully withholds such property from the Central Government or the existing, or new, Government company; or
(b)wrongfully obtains possession of, or retains, any property forming part of any undertaking of either of the two companies; or
(c)wilfully withholds or fails to furnish to the Central Government or the existing, or new, Government company or any person or body of persons specified by that Government or Government company, any document relating to such undertaking, which may be in his possession, custody or control; or
(d)fails to deliver to the Central Government or the existing, or new, Government company, as the case may be, or any person or body of persons specified by that Government, or Government company, any assets, books of account, registers or other documents in his possession, custody or control, relating to the undertakings of either of the two companies; or
(e)wrongfully removes or destroys any property forming part of any undertaking of either of the two companies or prefers any claim which he knows or has reasonable cause to believe to be false or grossly inaccurate, shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to ten thousand rupees, or with both.

Summary

Any person who wrongfully keeps back any property of the undertakings from the Central Government or the Government company can be punished.
Wrongfully taking or keeping any property that belongs to the undertakings is an offense under this Section.
Wilfully withholding or failing to hand over documents, assets, books of account, or registers related to the undertakings to the proper authorities is a punishable act.
Wrongfully removing or destroying any property of the undertakings, or submitting a claim that is known to be false or highly inaccurate, is also a crime.
The punishment for these offenses can be a prison sentence of up to two years, a fine of up to ten thousand rupees, or both.

Practical examples

1Ramesh Sharma, a former manager of National Rubber Manufacturers Limited, refused to hand over three account registers and a company car that were in his custody on March 1, 1984. He was warned but wilfully kept them. Ramesh can be prosecuted under Section 27 for withholding company property and documents, facing up to two years in prison or a fine of up to ten thousand rupees.

2Sunita Sen, a supplier, submitted a claim to the Commissioner of Payments on June 15, 1984, for 100,000 rupees, claiming she was never paid for a shipment. She knew she had already received payment in full before the takeover. Because she preferred a claim she knew was false, Sunita can be charged under Section 27 and faces prison, a fine, or both.

FAQ

1. What kinds of actions are punishable under Section 27?

Actions like wrongfully keeping company property, taking or retaining company assets, withholding documents, failing to deliver books of account, destroying property, or making false claims are punishable.

2. What is the maximum prison sentence that can be given under Section 27?

The prison sentence can extend up to a maximum of two years.

3. What is the maximum fine that can be imposed for these offences?

The fine can extend up to ten thousand rupees.

4. Can a person be punished with both prison time and a fine under this Section?

Yes, the court can sentence a person to both imprisonment and a fine for the same offence.

Test yourself

Q1.Under Section 27 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, what is the maximum term of imprisonment for wrongfully withholding property of the undertakings?

Q2.Under Section 27 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, what is the maximum fine that can be imposed for failing to deliver books of account or other documents?

Q3.Under Section 27 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, which of the following acts is NOT listed as a punishable offense?

Q4.Suppose a person prefers a claim to the Commissioner of Payments under The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984. Under Section 27, when does this act become a punishable offence?

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