Section 8 – The Shipping Development Fund Committee (Abolition) Act,1986

The Shipping Development Fund Committee (Abolition) Act,1986

Section 8. Power of Central Government to call for repayment before agreed period

Notwithstanding anything contained in any other law for the time being in force or anything in any agreement to the contrary, the Central Government may, by notice in writing, require a shipowner to whom the Committee had granted any financial assistance at any time before the appointed day, to discharge forth with in full his entire dues and also discharge his other liabilities to the Central Government, if-

(a) It appears to the Central Government that false or misleading information in any material particular was given by the shipowner for the purpose of procuring or for continuing to procure the benefit of such financial assistance; or

(b) The shipowner has failed to comply with the terms of his agreement with the Committee; or

(c) There is a reasonable apprehension that the shipowner is unable to pay his debts or, that proceedings for liquidation have been or may be commenced against the shipowner; or

(d) The Central Government has reason to believe that the shipowner has not used or applied the financial assistance granted by the Committee strictly for the purpose for which it was granted or has otherwise misapplied or misappropriated the same for wrongful gain; or

(e) The property assigned, charged, hypothecated, mortgaged or pledged to the Committee as security for financial assistance is not insured or kept insured by the shipowner to the satisfaction of the Central Government, or if such property has depreciated in value to such an extent that, in the opinion of the Central Government, further security to the satisfaction of the Central Government should be given and such security is not given; or

(f) Without the permission of the Central Government any ship, machinery, plant or other property, whether forming part of the security or otherwise, is removed by such shipowner without being replaced; or

(g) For any other reason, it is necessary so to do to protect the interests of the Central Government.

Explanation. For the purposes of this Act, “financial assistance” shall include any loan, advance or monetary assistance including any guarantee or counter-guarantee given to the shipowner by the Committee at any time before the appointed day.

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The Shipping Development Fund Committee (Abolition) Act,1986

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