8. Penalties.–Any person who,–
(a) having in his possession or custody or under his control any property forming part of the
society, wrongfully withholds such property from the Administrator or any person authorised under
this Act, or
(b) wrongfully obtains possession of any such property, or
(c) wilfully retains, or fails to deliver, any property forming part of the society or removes or
destroys it, or
(d) wilfully withholds or fails to account for any books, papers, works of art or other documents
which may be in his possession or custody or under his control to the Administrator or any person
authorised under this Act, or
(e) fails, without any reasonable cause, to furnish information or particulars as provided in
sub-section (6) of section 4,
shall be punishable with imprisonment for a term which may extend to two years, or with fine which may
extend to ten thousand rupees, or with both.
9. Offences by companies.–(1) Where an offence under this Act has been committed by a company,
every person who at the time the offence was committed was in charge of, and was responsible to, the
company for the conduct of the business of the company as well as the company, shall be deemed to be
guilty of the offence and shall be liable to be proceeded against and punished accordingly:
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Provided that nothing contained in this section shall render any such person liable to any punishment
if he proves that the offence was committed without his knowledge or that he had exercised all due
diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been
committed by a company and it is proved that the offence has been committed with the consent or
connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other
officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of
that offence and shall be liable to be proceeded against and punished accordingly.
Explanation.–For the purposes of this section,–
(a) “company” means any body corporate and includes a firm or other association of individuals;
and
(b) “director”, in relation to a firm, means a partner in the firm.
10. Exclusion of period of operation of Act.–In computing the period of limitation prescribed by
any law for the time being in force for any suit or application against any person by the society in respect
of any matter arising out of any transaction in relation to its management, the time during which this Act
is in force shall be excluded.
11. Act to have overriding effect.–The provisions of this Act or any notification, order or rule made
thereunder shall have effect notwithstanding anything inconsistent therewith contained in any law other
than this Act or in any instrument having effect by virtue of any law other than this Act or in any decree
or order of any court.
12. Protection of action taken in good faith.–(1) No suit, prosecution or other legal proceeding shall
lie against the Administrator or any officer of the Central Government or any other person for anything
which is in good faith done or intended to be done under this Act.
(2) No Suit or other legal proceeding shall lie against the Central Government or the Administrator or
any officer of the Central Government or any other person for any damage caused or likely to be caused
by anything which is in good faith done or intended to be done under this Act.
13. Contracts in bad faith may be cancelled or varied.–(1) If the Central Government is satisfied,
after such inquiry as it may think fit, that any contract or agreement entered into at any time within one
year immediately preceding the commencement of this Act, between the society and any other person, in
so far as such contract or agreement relates to the management of the society, has been entered into in bad
faith, or is detrimental to the interests of the society, it may make an order cancelling or varying (either
unconditionally or subject to such conditions as it may think fit to impose) such contract or agreement and
thereafter the contract or agreement shall have effect accordingly:
Provided that no contract or agreement shall be cancelled or varied except after giving to the parties
to the contract or agreement a reasonable opportunity of being heard.
(2) Any person aggrieved by an order under sub-section (1) may make an application to the High
Court at Delhi for the variation or reversal of such order and thereupon such court may confirm, modify
or reverse such order.
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14. Power to terminate contract of employment.–If the Administrator is of opinion that any
contract of employment entered into by the society in relation to its management, at any time before the
commencement of this Act, is unduly onerous, he may, by giving to the employee one month's notice in
writing or the salary or wages for one month in lieu thereof, terminate such contract of employment.
15. Power to make rules.–(1) The Central Government may, by notification in the Official Gazette,
make rules for carrying out the provisions of this Act.
(2) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it
is made, before each House of Parliament while it is session for a total period of thirty days which may be
comprised in one session or in two or more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid, both Houses agree in making any
modification in the rule or bothHouses agree that the rule should not be made, the rule shall thereafter
have effect only in such modified form or be of no effect, as the case may be; so, however, that any such
modification or annulment shall be without prejudice to the validity of anything previously done under
that rule.
16. Repeal and saving.–(1) The Lalit Kala Akadami (Taking Over of Management) Ordinance, 1997
(Ord. 10 of 1997) is hereby repealed.
(2) Notwithstanding the repeal of the Lalit Kala Akadami (Taking Over of Management) Ordinance,
1997 (Ord. 10 of 1997), anything done or any action taken under the said Ordinance shall be deemed to
have been done or taken under the corresponding provisions of this Act.