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Section 3 – The Railway Companies (Emergency Provisions) Act,1951

The Railway Companies (Emergency Provisions) Act,1951

Section 3. Power of Central Government to apply Act to any railway company and to appoint directors thereof

(1) Where the Central Government is of opinion that a situation has arisen in the affairs of a railway company which–

(a) Has prejudicially affected the convenience of persons using the railway administered by the railway company, or

(b) Has caused serious dislocation in any trade or industry using the railway, or

(c) Has caused serious unemployment amongst a section of the community.

Or when, in the opinion of the Central Government, it is necessary the national interest

The Central Government may, by notified order, apply the provision this Act to the railway company and appoint as many persons as thinks fit to be directors of the railway company for the purpose of taking over its management and administration.

(2) The power to appoint directors under this section includes this power to appoint any individual, firm or company to be the management of the railway company on such terms and conditions as to the Central Government may seem fit.

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The Railway Companies (Emergency Provisions) Act,1951

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