Section 30: Power to call for payment before agreed period

30. Power to call for payment before agreed period.__ (1) Notwithstanding any agreement to the contrary, the Corporation may, by notice, require any person to which it has made advance or which is otherwise liable to make any payment on any specified date or dates forthwith to repay the advance or make the payment aforesaid immediately in full, if__ (a) it appears to the Board that information false or misleading in any material particular has been given in the application for the advance or the creation of the aforesaid pecuniary liability ; or 1Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government”. (b) the person has failed to comply with the terms of any agreement with the Corporation; or (c) there is a reasonable apprehension that the person is unable to pay its debts and liabilities or may go into liquidation ; or (d) the property pledged, mortgaged, hypothecated or assigned to the Corporation, as security for the advance or the said pecuniary liability, is not insured or kept insured by the person to the satisfaction of the Corporation or has, in the opinion of the Board, depreciated in value and further security to the satisfaction of the Board is not given. (2) On the giving of such notice the entire advance or the aforesaid deferred pecuniary liability shall become immediately due and realisable. (3) Notwithstanding the provisions of any agreement of managing agency and subject to conditions prescribed in this behalf the Corporation may take over through an appointed agent the management of any company in which it has acquired majority shareholding, if the affairs of the company are, in the opinion of the Board, not being conducted in a satisfactory manner and if the share capital of the enterprise has been impaired.

Effective date: 1966-01-01

Related sections