Companies Act Section 378ZT — Power to modify Act in its application to Producer Companies
CHAPTER XXI
Commercial / Corporate
Summary
Sub-section (1) lets the Central Government issue a notification that changes how the rest of this Act applies to Producer Companies. The notification can either say that certain provisions of the Act do not apply to Producer Companies at all, or it can say that those provisions apply to Producer Companies with specific exceptions or adaptations listed in the notification. This power does not cover the provisions contained in this particular Chapter of the Act.
Under clause (a) of sub-section (1), the Central Government can direct that any specified provision of the Act will not apply to Producer Companies, or to a particular class or category of Producer Companies.
Under clause (b) of sub-section (1), the Central Government can direct that any specified provision of the Act will apply to Producer Companies, or to a particular class or category of Producer Companies, but with exceptions or adaptations that are spelled out in the notification.
Sub-section (2) requires that before any such notification is actually issued, a draft copy of it must be placed before both Houses of Parliament while they are in session. The draft must remain before Parliament for a total period of thirty days, which can be spread across one session or multiple successive sessions. If, before the end of the session immediately following that thirty-day period, both Houses agree to disapprove the notification, then the notification will not be issued. If both Houses agree to modify the notification, then it will be issued only in the modified form that both Houses have agreed upon.
Official Text
(1) The Central Government may, by notification, direct that any of the provisions of this Act (other than those contained in this Chapter) specified in the said notification—
(a) shall not apply to the Producer Companies or any class or category thereof; or
(b) shall apply to the Producer Companies or any class or category thereof with such exception or adaptation as may be specified in the notification.
(2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses.