Flour Milling Control and Development (Repeal) Ordinance, 1977

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THE FLOUR MILLING CONTROL AND DEVELOPMENT 
(REPEAL) ORDINANCE, 1977. 
 
 
 
 
 
 
CONTENTS 
1. Short title, extent and commencement 
 
2. Definitions 
 
3. Return of establishments 
 
4. Continuance in service of the employees 
 
5. Compensation 
 
6. Corporation to continue until wound up 
 
7. Debtor 
 
8. General effect of return of establishment 
 
9. Ordinance to override other laws 
 
10. Bar of jurisdiction 
 
11. Penalties 
 
12. Power to make rules  
 
13. Removal of difficulties 
  
14. Repeal 
 

 
 
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THE FLOUR MILLING CONTROL AND DEVELOPMENT (REPEAL) 
ORDINANCE, 1977. 
 
ORDINANCE No. XXIX OF 1977 
 
[5th September, 1977] 
 
An Ordinance to repeal the Flour Milling Control and Development Act, 1976 (LVII of 1976) 
 
WHEREAS it is expedient to repeal the Flour Milling Control and Development Act, 1976 
and to provide for matters connected therewith or incidental thereto; 
 
NOW, THEREFORE, in pursuance of the Proclamation of the fifth day of July, 1977, 
read  with the  Laws (Continuance in  Force)  Order, 1977 (CMLA Order No.1 of 1977) ,  and in  
exercise of all powers enabling him in that behalf, the President is pleased to make and promulgate 
the following Ordinance:— 
 
1. Short title, extent and commencement.—(1) This Ordinance may be called the Flour 
Milling Control and Development (Repeal) Ordinance, 1977. 
 
(2) It extends to the whole of Pakistan. 
 
(3) It shall come into force at once. 
 
2. Definitions. In this Ordinance, unless there is anything repugnant in the subject or 
context,— 
 
(a)      “Present Value” means the Net Worth Value out of which shall be deducted 
the value of any Fixed Tangible Assets and Current Assets as shown in the 
Balance Sheet which are not handed over and to which shall be added  
 
 (i) the v alue of the Fixed Tangible Ass ets and Current Assets which do 
 not appear in the  Balance Sheet but the possession of which is 
 handed over at cost and  
 
 (ii)  the decrease in the outstanding, liabilities as shown in the Balance 
 Sheet, out of which shall be deducted the value of any new liabilities 
 handed over; 
 
(b)       “repealed Act” means the Flour Milling Control and Development Act, 1976 
(LVII of 1976); and 
 
(c)       other words and expressions shall have the same meaning as in the repealed 
 Act. 
 
3. R eturn of establishments.—(1) Within one month of the commencement of this 
Ordinance, or such longer period not exceeding six months as the Federal Government may be  
notification in the official Gazette specify in this behalf, the Corporation shall deliver possession of   
an establishment the ownership and management of which has been acquired under section 5 of the 
repealed Act to the previous management thereof: 
 
 
 
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Provided that, in any case in which any amount is recoverable by the Corporation from 
the previous owner of the  establishment under sub-section (3) or sub-section (4) of s ection 5, the 
Corporation may not  so deliver possession of the establishment until such amount has b een 
recovered. 
 
 (2) On the delivery of the possession of an establishment in pursuance of sub-section (1)— 
 
(a)       the Corporation shall stand divested of the ownership and management of the 
establishment; and 
 
(b)       the ownership and management of the establishment, alongwith its assets and 
liabilities as on the day on  which its possession is delivered, shall stand 
transferred  to  the  persons  in  whom  these  vested  immediately  before  the 
making of  an order under section 5 of the repealed Act in respect of the 
establishment. 
 
(3)  No  claim,  suit,  prosecution  or  other legal  proceedings  arising  out  of  the acquisition 
or return of an establishment shall lie against the Government, the Corporation or any officer or  
employee of the Government or the Corporation. 
 
(4) Where the Federal Government is satisfied that the previous management of an 
establishment has refused or willfully failed to receive possession of the establishment, it may 
pass such order in respect of the establishment as it may deem fit. 
 
(5) In the case of an establishment, for the purpose of computing the period of 
limitation prescribed in the Limitation Act, 1908 (IX of 1908) for the  institution of a suit  for the  
recovery of  money, the period commencing on the day on  which an order under section 5 of  the 
repealed Act was made in respect of the establishment and ending on the day on which possession 
thereof is delivered to its previous management shall be excluded. 
 
(6) In the case of any dispute between the previous management of an establishment and the 
Corporation regarding the assets or liabilities of the establishment, the matter shall be referred to the 
Federal Government whose decision shall be final. 
 
4. Continuance in service of the employees. Every who letime employee of an 
establishment on the date of making of an order under section 5 of the repealed Act, in 
respect of the establishment, and every whole-time employees who has worked continuously in an 
establishment since before the first day of July, 1977, shall continue in his office on the same terms 
and conditions as are applicable to his appointment: 
 
Provided that this section shall not apply to employees who had resigned or been removed 
by the Corporation from its service. 
 
5. Compensation.—(1) The Corporation shall pay compensation in respect of an 
establishment at the rate of 11  per cent per annum of the  amount determined as payable in 
accordance with paragraphs 1 and 2 of the Schedule to the repealed Act for the period the ownership 
and management of the establishment remained with the Corporation. 
 
(2) In a case in which the Networth Value is higher than the Present Value, the Corporation 
shall pay the difference between the Networth Value and the Present Value of the  assets and 
 
 
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liabilities transferred to the previous owners, both such di fference and the Present Value to be  
determined by the Corporation. 
 
(3) Where the Present Value is higher than the Networth Value, the Corporation may recover 
from the previous owner, in accordance with the provisions of section 7 or in any other manner it 
may deem fit, the amount representing the difference between the Networth Value and the Present 
Value. 
(4) Where a previous owner has received payment of compensation assessed in accordance 
with paragraphs 1 and 2 of the Schedule to the repealed Act, such compensation shall be recovered 
from him in the same manner as is provided in sub-section (3): 
 
Provided that any interest which has accrued on any compensation bonds given to such 
previous owner shall not be withheld or, as the case may be, recovered and shall be deemed to be the 
compensation payable under sub-section (1). 
 
6. Corporation to continue until wound up. Notwithstanding the repeal of the repealed Act 
under section 14, the Corporation shall continue in existence until it is wound up by an order of the 
Provincial Government.  
 
7. Debtor.—(1) The Corporation may, by notice in writing, call upon a debtor to pay to the 
Corporation the amount of money due from him to the Corporation within a period of thirty days 
commencing from the date of receipt of such notice by the debtor. 
 
(2) Where the debtor fails to pay the amount due from him within the period specified in the 
notice under sub-section (1), the Corporation shall have the same power of effecting recovery as the 
Industrial Development Bank of Pakistan has under sections 39, 40 and 41 of the  Industrial 
Development Bank of Pakistan Ordinance, 1961 (XXXI of  1961). 
 
8. General effect of return of establishment.—(1) Where the management of an 
establishment has been transferred to the previous management under s ection 3, all contracts, 
agreements and other instruments of whatever nature subsisting or having effect immediately before 
the date of transfer, to which such establishment, was party or which were in respect of su ch 
establishment, shall be of as full force and effect against or in favour of p revious management, and 
may be enforced or acted upon as fully and effectively as if, instead of the Co rporation, the 
previous management had been a party thereto, or as if they had been entered into, or issued in 
respect of, the previous management. 
 
(2) If on the date of transfer of an establishment to the previous management any suit, appeal 
or legal proceeding of whatever nature is pending by or against the Corporation in respect of such 
establishment, it shall not abate or be in any way prejudicially affected by reason of such transfer 
or anything done under this Ordinance or the repealed Act, but the suit,  appeal or other 
proceeding may be continued, prosecuted and enforced by or against the previous management. 
 
9. Ordinance to override other laws. The p rovisions of this O rdinance shall have effect 
notwithstanding anything contained in any other law for the time being in force or any agreement, 
contract, memorandum or articles of association of a company. 
 
 
 
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10. Bar of jurisdiction.—(1) No Court shall call into question or permit to be called in  
question any provision of this Ordinance or of any rule or order made or, anything done or any 
action taken thereunder. 
 
(2) No  Cou rt  shall  grant  any injuction,  or  make  any order,  nor  shall  any Court 
entertain any proceedings, in relation to anything done or intended to be done under this Ordinance. 
 
11. Penalties. Whoever obstructs or resists or hinders any p erson in the discharge of his  
duties under this Ordinance shall be punishable with rigorous imprisonment for a t erm which may 
extend to three years, or with fine, or with both: 
 
Provided that no Court shall take cognizance of an offence under this Ordinance unless 
a complaint in this behalf is made by the Government or the Corporation or a person authorised by 
the Government or the Corporation for the purpose. 
 
12. Power to make rules. The Federal Government may make rules for carrying out the 
purposes of this Ordinance. 
 
13. Removal of difficulties. If any difficulty arises in giving effect to any provision of this 
Ordinance, the Federal Government may make such order, not inconsistent with the provisions of 
this Ordinance, as may appear to it to be necessary, for the purpose of removing the difficulty. 
 
14. R epeal. The Flour Milling Control and D evelopment Act, 1976  (LVII of 1976 ), is 
repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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