Subsululed for the old sdon by hnjab kc1 III 01 1940, secuon 5. — Pb. Act V STATE AID TO INDUSTRIES - 249

2. Subsululed for the old sdon by hnjab kc1 III 01 1940, secuon 5. (b) thal a minimum portion of the authorized capilal or rhc industry Lo be fixed according to the circumstances of each case has been subscribed and paid in cash; (c) that no such guarantee shall in any case cxtend beyond a period of 5 years ; (dl that during the period Lo which the. guqantcc exlends . . ihc '[Slate] Ciovernrncnl may impose on such persons as ir considers to be dircclly concerned in the promolion of ihe company, a condilion that if they transfer any of thcir shares ' without the consent of the f they transfer any of thcir shares ' [State] Govcrnment, they shall be liable joinrly and severally to rerund to lhe '[State] Government any sums paid lo lhe company in fulPhent of thc guarantee ; (e) that the '[State] Government silaH be enritIed to recover the wholc or vy part of the sum paid by the '[State] Govcrnmcnt on account 01 such guarantee with interest at che rate in force on the date of the agrmment far loans granted under Lhe Land Improvement Loans Acr, 1883, at any rime after such period as may have been laid down in the agreement. provided that the '[State] Government is satisfied that the company is paying or is able to pay intcrcst or a dividend upon the capiral shown as-paid up in exccss of such rate as may be fixed in the agreement and such recovcry shall be made in the manner Iaid down in Scctions 23:24 and 25- : 1 No borrower shall pay any dividend or dislribute or takc any profits in excess of such percentage ratc upon the arnoun t of the capital pro fils Uisposal of conditions on whjchSlaE aid is given fulfilled Norwi thsianding anything contained elsewhere in rhis Chapter, Gov~~-I-I~~L Ihe '[Sraa] Government may, by the appointment 01 ils own directors or CO"UO' Of aided otherwise exercise such control over die conduct of the h~ldustry to which the Stale aid has been given as shdl suffice in ils opinion to safeguard its interests, provided lhat such right has been expressly rcserved by igrcemenl at Lhe time the aid was granted. , 235. Notwithstanding anything contained in seclions 23, 24 and Mebod of 25, any amounl payable to Lhc State Government under this Act or by recOve~ Of d virt-ue of a contract entercd into under this Act including interest and money due. -costs, j f any, 3[shall] be recoverable as arrcars of land revenue.]. CHAPTER V NO machinery shall be supplied by the '[Stare] Government Percenlage or on the hirc-purc hase system unless the applicant therefor deposits with lo bC: dejmsilcd by he Direclot such percentage of the cost there01 as may be prescribed, binr and furnishes security Tor the unpaid portion of such cost in the same manner as for a loan granted under the provisions of Chapter IV. . 37. Whcn an application is allowed. the ~irectof shdl, subject to andinaccordancewithanyrulcsthatmay bemadeunderthisAct,make bcsPcifi*in an ,order specifying the following particul;irs, namely :-. (a) ke amount of each instalmcnl of rcnl to be paid for rhe hire of the machinery and the number of such instalrnents to be paid beForc ihe machincryshall become the p~opcrQ of the hirer; , (b) the anlount of intcres~, if any, to be paid with each ins talmcnr of renl on the remaining unpaid instalrnents ; (cJ the dates on which and the manner in which thc aforesaid paymcnls shall bc made ; md - pluuculns LO order when appIication is allowed. Subslitu~ed for be word "Provincial" by the Adap~ation of Laws Ordcr, 1950. Substiruled for section 35 by Punjab Acl39 of 1953. Subs[imred hy Haryana Act 46 of 1973. Condilions of supply of machinery on birc purchase svs~ern . -----n . svs -, sern ----- [I935 : Pb. Act V (d) such olher particulars as may bc prescribed. - Until-lhc hiring is terminated in lhc manner hcrcinafter provided, the following provisions shall apply, namely :- - (a) The hirer shall pay punctually and wirhout dcrnand Ihe instalmenis ol rent and amount of intresr specified in rhc order referred to in secLion 37. (b) The hirer shall retain the machinery in h~ own possession in good and serviceable order and condition and shall not, without the prcvious written consent of Ihe Dircctor, makc any addition thereto or alteralion thcrcin, nor removc [he machinery or any part thereof from [he premises specified in Ihe application for the supply thereof. (c) The machinery shall remain lhe sole and absolute of the 2[Govergmcnt]], and any transfer thcreof or rtssigmcnr of any right, tit@ or interest herein or the creation of any y gy mortgage encumbrance or any oher charge thereon by [he hirer shall be void as against the 3[Stak] Government unlcss it has been made with the previous written consent of lhe Director. (dl The machinery shall not be lia5le to distraint, attachment or saie by any process under any law for the time being in force, otherwise than under this Act. (e) The machincry shall bear a metal plate in the prescribed form, and any who ~illl~ll~ rcrnoves or defaccs such piate shall be liable to a fine not exceeding five hundred rupees. It shall be presumed until the contrary is proved that mach_ineq bearing such metal plate is the [property of the 2[Government]] hired out under this Chapter. (D The hirer shall permil [he Director or any au thorixcd by the Director in this behalf to inspecl Ihe machinery a1 all reasmable times, and the Director or such other person shall POWCS havc all such , p POWC~S of entry as may be necessary for the purpose of making an inspection.

Section 2