Section 406: Provision relating to Nidhis and its application, etc
This section is for making provisions related to Nidhis and Mutual Benefit Societies, including exemptions and modifications to the Act's provisions.
The section, clause by clause
What the section says
In plain terms
(1)In this section, “Nidhi” or “Mutual Benefit Society” means a company which the Central Government may, by notification in the Official Gazette, declare to be a Nidhi or Mutual Benefit Society, as the case may be.
A Nidhi or Mutual Benefit Society is a company that the Central Government declares as such through a notification in the Official Gazette.
(2)The Central Government may, by notification in the Official Gazette, direct that any of the provisions of this Act specified in the notification—
The Central Government can direct that certain provisions of the Act do not apply to Nidhis or Mutual Benefit Societies, or apply with specified exceptions, modifications, and adaptations.
(2)(a)shall not apply to any Nidhi or Mutual Benefit Society; or
(2)(b)shall apply to any Nidhi or Mutual Benefit Society with such exceptions, modifications and adaptations as may be specified in the notification.
(3)A copy of every notification proposed to be issued under sub-section (2), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days, and if, both Houses agree in disapproving the issue of notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses.
A draft of every notification proposed under sub-section (2) must be laid before each House of Parliament for 30 days, and if both Houses disapprove or suggest modifications, the notification will not be issued or will be issued in a modified form.
(4)In reckoning any such period of thirty days as is referred to in sub-section (3), no account shall be taken of any period during which the House referred to in sub-section (3) is prorogued or adjourned for more than four consecutive days.
When reckoning the 30-day period, any period during which a House is prorogued or adjourned for more than 4 consecutive days is not counted.
(5)The copies of every notification issued under this section shall, as soon as may be after it has been issued, be laid before each House of Parliament.] CHAPTER XXVII NATIONAL COMPANY LAW TRIBUNAL AND APPELLATE TRIBUNAL
Copies of every notification issued under this section must be laid before each House of Parliament as soon as possible after it is issued.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. Subs. by Act 29 of 2020, s. 57, for sub-section (4) (w.e.f. 21-12-2020).
- 2. Subs. by Act 1 of 2018, s. 81, for section 406 (w.e.f. 15-8-2019).
- 1. Subs. by Act 1 of 2018, s. 82, for “out of which at least three years shall be in the pay scale of Joint Secretary to the Government of India or equivalent or above in that service” (w.e.f 9-2-2018).
- 2. Subs. by Act 1 of 2018, s. 82, for clause (e) (w.e.f. 9-2-2018).
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.