Hishey serves notice on Companies Bill; Frequent adjournments keep discussion pending

MP ALSO RECEIVES UPDATES ON STATUS OF ROADS, RAIL PROJECT, CLIMATE CHANGE AND DEMAND FOR CONSTITUTIONAL RECOGNITION OF BHUTIA, LEPCHA AND LIMBOO LANGUAGES
GANGTOK, 09 May: Rajya Sabha MP from Sikkim, Hishey Lachungpa, it may be recalled, has served a notice for the Upper House seeking an amendment to the Companies Bill 2012. Sikkim’s reservations on certain clauses in the Bill, already pushed through the Lok Sabha, are expected to be presented by Mr. Lachungpa. The Notice of amendment which was to be moved at a sitting of the Rajya Sabha could not be taken up after the Bill was tabled in the Upper House due to frequent adjournments, an official communiqué from the MP’s office informs. And now the Budget Session of the Parliament has been adjourned Sine die [from 08 May, 2012].
The MP, it is informed, had desired that the mention to the Registration of Companies (Sikkim) Act 1961 at Page 9, line 9, Section 1 (67) of the Bill be deleted and amended. Similarly, the MP has also desired that mention to the Sikkim Act in Page 231, lines 34 and 35 under Section 465 (1) and 465 (3) also be deleted.
Mr. Lachungpa, the communiqué adds, also held discussions with various leaders on the Bill including Union Minister for Corporate Affairs, Sachin Pilot.
The Companies Bill 2012 was introduced in the Lok Sabha on 18 December and was passed the same day. Chapter 29, Section 465 (1) states that “The Companies Act, 1956 and the Registration of Companies (Sikkim) Act, 1961 shall stand repealed” with the passage of the Companies Bill 2012.
The Bill was much in the news across the country for the FDI regime it facilitates into the retail sector. After extensive exchange of allegations and counter-allegations, it was passed surprisingly quickly, within a day. This also caught Sikkim off-guard, but as details of the Bill became known, protests against the repealing of an Old Law of Sikkim began. The State Government, on its part, engaged a Constitutional Expert to study the repeal of the Sikkim Registration of Companies Act, 1961 with the passage of the Companies Bill, and help draft an appropriate response for the central government. Mr. Lachungpa, was part of this study along with the Lok Sabha MP PD Rai and the constitutional expert.
It may be mentioned here that the new Bill clearly allows or companies already registered and operating under the old law to continue to be valid and deemed already registered.
Even as debate on the Companies Bill is awaited, the MP has kept busy, seeking answers from the concerned Union Ministers on a host of Sikkim-specific issues ranging from Constitutional recognition of Bhutia, Lepcha and Limboo languages to Centre’s commitment to infrastructure development in the State.
In a query submitted on the inclusion of Bhutia, Lepcha and Limbu languages in the 8th Schedule of the Constitution as official languages, the MP was informed that an Inter Ministerial Committee had been constituted to evolve a set of objective criteria with reference to proposals/ representations to include more languages [including Bhutia, Lepcha and Limbu] in the Eighth Schedule and to examine such proposals. A final decision is however yet to be taken on demands for inclusion of 38 more languages including the ones from Sikkim, the Minister of State for Home Affairs, RPN Singh, informed the MP on 08 May.
The Minister of State further informed that an “in-depth study of the whole gamut of the issue, including recommendations of Shri Sitakant Mohapatra committee to suggest a set of uniform criteria was being made by the Inter Ministerial Committee”.
On a question seeking updates on upgradation, widening and carpeting of North Sikkim Highway, the Minister of State for Road, Transport and Highways Dr. Tushar A. Chaudhary, informed that the improvement of North Sikkim Highway from Gangtok to Mangan has been included under Phase ‘B’ of the Special Accelerated Road Development Programme in North East (SARDP-NE), which, however, has not yet been approved for implementation by the Central Government.
As for the Railway to Sikkim project, the latest anticipated cost of the project is Rs. 3,380.58 crore, against which Rs. 102.63 crore had been spent up to March 2013. An outlay of Rs.25 crore has been proposed in Railway Budget 2013-14 for it. The Sevoke-Rangpo new line project (44.39 km) was included in Railway Budget 2008-09. This was stated by the Minister of State for Railways Adhir Ranjan Choudhary while replying to a question tabled by Mr. Lachungpa in the Rajya Sabha.
The Minister also said that the Final Location Survey of the project has been completed and the work had been entrusted to M/s IRCON, a PSU under the Ministry of Railways, for execution. Target for completion has not however been fixed.
The MP was also informed that the grant-in-aid to NGOs is considered on receipt of complete proposals along with recommendation of State Level Committee on Voluntary Efforts along with Inspection Report duly countersigned by the District Collector and subject to availability of funds in a particular scheme during a particular financial year. This was disclosed by the Minister of State for Tribal Affairs Ranee Narah on a question put up by the MP on pending approvals for the welfare of tribals. The Minister also said that receipt of proposals for grant-in-aid to NGOs and processing thereof for release of funds is a continuous process as per the scheme guidelines.
The Ministry of Development of North Eastern Region in turn informed that it has sanctioned 338 development projects with approved cost of Rs. 3,487.65 crore under Non-Lapsable Central Pool of Resources, out of which 24 projects worth Rs. 313.82 crore pertained to Sikkim.
Out of the 338 projects sanctioned in the last three years, 129 projects are delayed, and in the case of Sikkim, completion is delayed in 12 projects. This was stated by the DoNER Minister on a question put up by Mr. lachungpa on the programmes of the DONER ministry.
The MP also put up questions on Zoological Parks and Global Warming during the current session. Several other questions could not be taken up after the House was adjourned sine die on 08 May, his office further informs.
The Minister of State (independent charge) for Environment and Forests, Jayanthi Natarajan, responding to a set of questions posed by Mr. Lachungpa, informed that a study to assess the impact of climate change on four key sectors of Indian economy, namely agriculture, water, natural ecosystems & biodiversity and health in four climate sensitive regions of India, namely the Himalayan region, the Western Ghats, the Coastal Area and the North-East Region has been conducted and a report titled “Climate Change and India: A 4X4 Assessment - A Sectoral and Regional Analysis for 2030s” was published in 2010. The study projects a mixed picture of implications for climate parameters and related impacts on the relevant sectors in all four regions. The study also projected overall warming, increase in precipitation variable water yield, change in the composition of the forests, spread of Malaria in new areas and threats of its transmission for longer duration, which are likely to cause adverse impact on the lives of human beings.
She further informed that during the 12th Five Year Plan, a new thematic scheme on “Climate Change Action Programme” with an outlay of Rs. 300 crores was approved to build capacity and support implementation of relevant actions at the national and state level.

CM not committed to preserving Sikkim’s Old Laws, Golay alleges

GANGTOK, 16 Jan: Dissident SDF MLA, PS Tamang [Golay], has alleged that Chief Minister Pawan Chamling’s assurances regarding the repeal of the Companies Act 1961 were a mere “eyewash” to mislead the people.
In a press release issued today, the Upper Burtuk MLA has further alleged that the CM failed to keep his commitment of not allowing Direct Taxes into Sikkim which led to the repeal of Sikkim’s own tax law. In its 1998 party manifesto, SDF had promised that it would not allow the implementation of direct tax in the State and would raise its voice in the Lok Sabha. However, Mr. Tamang states that this did not happen and the state withdrew the Supreme Court case challenging the implementation of direct tax “betraying” the Sikkimese public.
Further stating that the Sikkim MP, PD Rai has not uttered a single word against the Companies Act in the Parliament, Mr Tamang has alleged that his silence reveals the ruling party’s true intentions.
The MLA has also criticized the Sikkim Land Transfer Act-2007 and said that the CM and the SDF government has violated an old law - the Sikkim Land Revenue Act - and has allowed Sikkimese land to be leased out to non-Sikkimese and industries.
Further condemning the alleged statement made by the CM at Jorethang he has stated that the schemes and benefits are meant for all the needy in the country including Sikkimese people who have paid taxes to the government.

Constitutional Expert engaged to assist Sikkim’s defence of its Companies Act

GANGTOK, 08 Jan: The Companies Bill 2012 has worked up certain sections of the society here in Sikkim as it seeks to repeal an old law of the state. The Bill was introduced in Parliament on 18 December, passed the same day in the Lok Sabha and is expected to be passed in the Rajya Sabha in the upcoming session of Parliament. Chapter 29, Section 465 (1) clearly states that “The Companies Act, 1956 and the Registration of Companies (Sikkim) Act, 1961 shall stand repealed.”
The Bill was much in the news across the country, but not in relation to Sikkim and more for the FDI regime it facilitates for the retail sector. After extensive exchange of allegations and counter-allegations, it was passed surprisingly quickly, within a day. This also caught Sikkim off-guard, but as details of the Bill became known shouts of protest against the repealing of an old law of Sikkim are coming in from various quarters. The State Government, recognizing that old laws evoke strong passions in Sikkim, has now engaged a Constitutional Expert to study the repeal of the Sikkim Registration of Companies Act, 1961 with the passage of the Companies Bill, and help draft an appropriate response for the central government.
More aptly, engaged in this study is the constitutional expert along with the two Members of Parliament from Sikkim, PD Rai and Hissey Lachungpa from the Lok Sabha and Rajya Sabha respectively. They have been formed into a kind of committee to study the repealing of the Old law from the legal and constitutional standpoint.
Besides studying the Companies Bill 2012 the team will also prepare an appropriate response to the proposed enactment in Parliament. It is likely that this remark on the bill will be read out by the Rajya Sabha MP, Hissey Lachungpa on behalf of Sikkim when Parliament convenes in a few weeks time.
The Rajya Sabha will hopefully see a proper discussion on the Bill and the State, sources inform, plans to argue from the standpoint of not just allowing an Old Law to continue but also protecting the sanctity of the Constitution of India which protects Sikkim’s Old Laws.
On the repealing of an old law, a senior bureaucrat stated that this was an emotive issue. However it was conceded that the Parliament is the authority to make laws and enactments and where it thought necessary and appropriate it could make necessary laws and interventions. The Companies Bill 2012 itself has actually been in the pipeline since 2009 when it was first drafted. Thereafter there had been various interjections from various quarters including state governments seeking certain amendments and inclusions in the bill till it was finally introduced in December 2012 in the Lok Sabha.
It may be mentioned here that Companies already registered and operating under the old law will continue to be valid and deemed registered already. The Bill also provides in section 465 that offices already existing for registration of companies shall continue under provisions of the new Act as far as the Act to be repealed is concerned. Clause 2 (g) of Section 465 clearly states that “the incorporation of companies registered under the repealed enactments (Sikkim Companies Act, 1961) shall continue to be valid…”

HOW EXISTING SIKKIM COMPANIES WILL BE AFFECTED BY THE COMPANIES BILL 2012

Privileges and exemptions enjoyed by companies registered under old law will continue
GANGTOK, 02 Dec: The Companies Bill 2012 has worked up certain sections of the society here in Sikkim as it seeks to repeal an old law of the state. The Bill was introduced in Parliament on 18 December, passed the same day in the Lok Sabha and is expected to be passed in the Rajya Sabha in the upcoming session of Parliament. Chapter 29, Section 465 (1) clearly states that “The Companies Act, 1956 and the Registration of Companies (Sikkim) Act, 1961 shall stand repealed.”
That said, companies already registered and operating under the old law [of 1961] will continue to be valid and deemed registered. The Bill also provides, in section 465, that offices already existing for registration of companies shall continue under provisions of the new Act as far as the Act to be repealed is concerned. Clause 2 (g) of Section 465 further states that “the incorporation of companies registered under the repealed enactments (Sikkim Companies Act, 1961) shall continue to be valid…”
While earlier the Sikkim Companies Act of 1961 was only for Sikkim-based companies, an amendment was brought about in the Act in the year 2007. By this amendment, any company registered under the Companies Act, 1956 had to also apply for enlistment under the Registration of Companies Act, Sikkim 1961. In other words, companies from outside the State seeking to open a branch here but already registered in their respective headquarters had to seek registration again here. However for all purposes such companies continued to be governed under the central Act of 1956 and the enlistment under the state Act was only for the purpose of maintaining records of outside companies operating in Sikkim.
However as far as the repealing of the Sikkim Registration of Companies Act, 1961 is concerned, the new Bill provides that “…anything done or action taken including rule, notification, inspection, order or notice made or issued or any appointment or declaration made or any operation undertaken on any direction given or any proceeding taken… in so far as it is not inconsistent with the provisions of this Act be deemed to have been done or taken under the corresponding provisions of this Act”. In other words not only will the companies already registered under the old Act continue to be deemed registered under the new Act any action taken or directions issued under the old Act will continue to be in effect once the new Act is enacted.
Section 465 (2) (b) further states that any order, rules, regulations issued or thing done under the repealed Sikkim Act, if already in force, will continue to be in force and shall have effect as if made under the new Act. This includes any appointments made, mortgage and deeds or documents and agreements made under the old Act. It also includes resolutions passed under the old Act. The new bill also goes on to provide that no principle or rule of law, custom, privilege, restriction or exemption derived from the Sikkim Companies Act of 1961 shall be affected. At the same time, clause 2 (e) of section 462 also details that any custom, right, privilege, restriction or exemption not already in existence shall not be revised or restored in respect to the Sikkim Companies Act, 1961.
Finally and with particular reference to the Sikkim Act the new Bill provides that the above mentioned and other matters “…shall not be held to prejudice the general application of section 6 of the General Clauses Act, 1897 with regard to the effect of repeal of the enactments as if the Registration of Companies (Sikkim) Act, 1961 were also a Central Act.”