Section 7 of The Oil and Natural Gas Commission (Transfer of Undertaking and Repeal) Act, 1993 in hindi — Guarantee to be operative

Bare section text

Official Legislative Text

Any guarantee given for or in favour of the Commission with respect to any loan or lease finance or other assistance shall continue to be operative in relation to the Corporation.

Educational Study Layer

Summary

It applies to any guarantee given for or in favour of the Commission.
The guarantees must relate to loans, lease finance, or other forms of financial assistance.
All such guarantees continue to be fully operative in relation to the Corporation.

Practical examples

1In 1991, the State Bank of India gave a guarantee of 10,000,000 rupees to back a major equipment lease for the Commission. Under Section 7, that guarantee remained active and backed the Corporation instead once the transfer took place.

2A foreign development bank had guaranteed a loan of 5,000,000 dollars to the Commission for drilling. Section 7 ensured that this loan guarantee continued to protect the lenders under the Corporation's name.

FAQ

1. What happens to guarantees given for the Commission after the transfer?

They continue to be fully operative and protect the Corporation just as they did for the Commission.

2. What types of financial transactions do these guarantees cover?

They cover guarantees given with respect to any loan, lease finance, or other assistance.

Practice Quiz

Q1.In whose favour must the guarantee have been originally given to fall under Section 7?

Q2.What types of financial support are explicitly mentioned in Section 7 regarding guarantees?

Q3.What does Section 7 state happens to these guarantees?

Q4.Does Section 7 limit the guarantees to only those given by the Central Government?

Q5.Under Section 7, does a lease finance guarantee continue to be operative?

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