Applicability of section 58A(9), in the case of a relief undertaking declared by a local Act or Central Act - Companies Law - Circular : No. 3/29/89‑CLX,

Circular : No. 3/29/89 ‑ CLX, dated 2 ‑ 5 ‑ 1991. Subject:- Public Deposits - Repayment ‑ Applicability of section 58A(9), in the case of a relief undertaking declared by a local Act or Central Act I am directed to invite your attention to this Department s letter of even number (Circular No. 3/90), dated 19th February, 1990 (see CLARIFI CATION 1), on the subject mentioned above whereby it was clarified that the monetary liabilities of relief undertakings declared as such by the concerned State Government during the notified period stand suspended and any proceedings, including proceedings under section 58A(9) of the Companies Act, 1956, shaft remain stayed. It was also clarified that action under section 58A(9) of the Act can be considered only after the expiry of the period for which the relief undertakings have been so notified. 2. This Department has reviewed the aforementioned circular in consul tation with the Ministry of Law who have opined that as per the Constitution, the Central Act shall always override the provisions of any Act of the State Government which may come in conflict with the provisions of that Act. In view of this position, it has been decided to withdraw the said circular immediately. You are, therefore, requested to treat the said circular as withdrawn and take action accordingly on the applications received under section 58A(9), in respect of companies declared as relief undertakings.