Section 4 in The Parel Investments and Trading Private Limited and Domestic Gas Private Limited (Taking Over of Management) Act, 1979
4. Appointment of Custodian to take overmanagement of the undertakings of the two companies:
(1)The Central Governmentshall, as from the appointed day, appoint Hindustan Petroleum CorporationLimited, a Government company, as the Custodian of the undertaking of each ofthe two companies for the purpose of taking over the management thereof, andthe Custodian shall carry on the management of the undertaking of each of thetwo companies for and on behalf of the Central Government.(2)The Central Government may;issue such directions (including directions as to initiating defending orcontinuing any legal proceedings before any court, tribunal or other authority)to the Custodian as to its powers and duties as the Central Government deemsdesirable and the Custodian may apply to the Central Government at any time forinstructions as to the manner in which the Custodian shall conduct themanagement of the undertaking of each of the two companies or in relation toany matter arising in the course of such management.(3)Subject to the provisionsof this Act and to the control of the Central Government, the Custodian shallbe entitled, notwithstanding anything contained in the Companies Act, 1956 (1of 1956), to exercise all the powers of the Board of Directors of the twocompanies (including the power to dispose of any properties or assets of thetwo companies) whether such powers are derived from the Companies Act, 1956, orfrom the memorandum and articles of association of either of the two companiesor from any other source.(4)Any person havingpossession, custody or control of any property forming part of the undertakingof either of the two companies, shall, on demand, deliver forthwith suchproperty to the Custodian or to any such person as may be authorised by theCustodian or the Central Government in this behalf.(5)If any person fails orrefuses to comply with any demand made under sub–section (4) for the delivery of any property,the Custodian or any person authorised under the said sub–section maytake possession of that property and may, for that purpose, use such reasonableforce as may be necessary.(6)Any person who, on theappointed day, has in his possession or under his control any books, papers orother documents relating to the undertaking of either of the two companies,including the minutes books containing the resolutions of the persons in chargeof the management thereof before the appointed day, the current cheque booksrelating to the undertaking of such company, any; letters, memoranda, notes orother communications between him and such company, shall, notwithstandinganything contained in any other law for the time being in force, be liable toaccount for the books, paper and other documents (including such minutes books,cheque books, letters, memoranda or other communications) to the Custodian andshall deliver them up to the Custodian or to any such person as may beauthorised by the Custodian or the Central Government in this behalf.(7)Every person in charge ofthe management of the undertaking of either of the two companies immediatelybefore the appointed day, shall, within ten days from the appointed day; orwithin such further period as the Central Government may allow in this behalf,furnish to the Custodian a complete inventory of all the properties and assets(including particulars of book debts and investments and belongings) formingpart of such undertaking immediately before the appointed day and of all theliabilities and obligations of such company in relation to its undertakingsubsisting immediately before that day and any other information relating tothe undertaking of such company which the Custodian may require in this behalfand also of all agreements entered into by such company in relation to itsundertaking and in force immediately before that day.(8)The Custodian shall receivefrom the funds of the undertaking of each of the said companies suchremuneration as the Central Government may fix.
