THE MARKETING OF PETROLEUM PRODUCTS (FEDERAL CONTROL) ACT, 1974.(Repealed by ord.89 of 02 s.3)

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THE MARKETING OF PETROLEUM PRODUCTS (FEDERAL CONTROL) ACT, 
1974. 
 
1ACT NO. XVII OF 1974 
 
[15th March, 1974] 
 
An Act to provide for the management and development of marketing facilities 
in petroleum products. 
 
WHEREAS  it  is  expedient  to  provide  for  the  management  and  development  of 
marketing facilities in petroleum products and for matters connected therewith; 
 
It is hereby enacted as follows:— 
 
1.  Short  title,  extent  and  commencement.  —(1)  This  Act  may  be  called  the 
Marketing of Petroleum Products (Federal Control) Act, 1974. 
(2) It extends to the whole of Pakistan. 
(3) It shall come into force at once. 
 
2. Definitions. In this Act, unless there is anything repugnant in the subject or 
context,— 
 
(a)  "bank  rate" means  the  bank  rate  determined  and  made  public  under  the 
provisions of the State Bank of Pakistan Act, 1956 (XXXIII of 1956). 
 
(b)  "Board  of  Management"  means  the  Board  of  Management  set  up  under 
section 7; 
 
(c) "corporation" means a corporation or authority wholly owned or controlled by 
the Federal Government to which a marketing company is transferred under 
this Act; 
 
(d) "creditor" means any person to whom a marketing company owes any amount 
of money; 
 
(e) "debtor" means a person who owes any amount of money to  a marketing 
company; 
 
(f)  "managed  company"  means  a  company in  respect  of  which  a  Managing 
Director has been appointed; 
 
(g) "Managing Director", in relation to a m arketing company, means the 
Managing Director appointed by the Federal Government under this Act, in 
respect of such company; 
 
1 For Statement of Objects and Reasons, see Gaz. of P., 1974, Ext., Pt. III, p. 106. 
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(h) "marketing company" means a company which has, during the twelve months 
preceding-the commencement of this Act, been wholly or mainly engaged in 
purchasing or obtaining petroleum products from local refineries, or from or 
through sources abroad, for selling, distributing or marketing di rectly or 
through its agents or dealers at its dispensing outlets or filling stations; 
 
(i)  "petroleum  products"  means  motor  gasolene,  diesel  oils,  kerosene  and 
furnace oil; 
 
(j) "previous management" means a person, board of directors or other body or 
authority in which the management of a marketing company vested imme- 
diately before the appointment of a Managing Director in respect thereof; 
 
(k) "shareholder" means a shareholder in the share capital of a company, and 
includes a stockholder; 
 
(1) words and expressions used but not defined in this Act, shall have the same 
meaning as in the Companies Act, 1913 (VII of 1913). 
 
3. Declaration. It is hereby declared that development under Federal control of 
marketing in petroleum products is necessary in the public interest. 
 
4. Act to override other la ws. The p rovisions of this  Act shall have effect 
notwithstanding anything contained in the Companies Act, 1913 (VII of 1913)  or the 
Companies (Managing Agency and Election of Directors), Order, 1972 (P.O. No. 2 of 
1972), or any other law for the time being in force or any agreement, contract, memorandum 
or articles of association of a Company. 
 
5. Power to take over management or acquire shares or business of marketing 
company.  —(1)  The  Federal  Government  may,  if  it  considers  necessary in  the  public 
interest so to do, by an order,— 
 
(a) take over the management of any marketing company and, as from the date of 
such order, the p revious, management shall stand divested of such manage- 
ment; 
 
(b)  acquire  the  whole  Or  a  portion  of  the  shares  from  all  or  any  of  the 
shareholders of such marketing company and, as from the date of such order, 
the shares so acquired shall vest in the Federal Government: 
 
Provided that no order shall be m ade under this section for the acquisition of the 
shares held in a marketing company by an institution owned or controlled by the  Federal 
Government, including the National Investment Trust and the Investment Corporation of 
Pakistan or the shares held by a foreign investor: 
 
Provided further that the Federal Government may, by noti fication in the official 
Gazette, exempt from acquisition shareholdings of any s hareholder up to such maximum 
amount as may be specified in the notification. 
 
(2) Where the Federal Government makes an order under sub-section (1) for t aking 
over the management of any m arketing company, no dealings or business relating to the 
shares of such company shall be transacted on any stock exchange and no transfer of such 
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shares shall be registered in the share register of the company for a period of ninety days 
from the date of such order or such shorter period as may be notified by the Government. 
 
6. Appointment of Managing Director. —(1) Where the Federal Government has 
made  an  order  under  section  5  in  respect  of  a  marketing  company,  it  may  appoint  a 
Managing Director in respect of such company. 
 
(2)  Upon  the  appointment  of  a  Managing  Director  in  respect  of  a  marketing 
company, the administration and the management of the affairs of the company shall vest in 
the  Managing  Director,  and  any  person  or  authority  exercising  or  having  the  right  to 
exercise, immediately before such appointment, any powers or functions in relation to the 
management of the company shall cease to exercise or to have the right to exercise such 
powers or functions. 
 
(3) The Managing Director shall— 
 
(a) hold office during the pleasure of the Federal Government; 
 
(b) in the discharge of his functions, be subject to such orders and such directions 
of the Federal Government and of the Board of Management as the Federal 
Government or the Board of Management may from time to time give in 
writing; and 
 
(c) receive such remuneration and be subject to such other terms and conditions 
of appointment and service as the Federal Government may determine. 
 
(4) The Managing Director appointed in respect of a marketing company sh all 
exercise and perform all the powers and functions of the board of directors of the company. 
 
7. Board of Management —(1) The Federal Government may set up a Board of 
Management to control, manage and direct the affairs of the marketing companies in respect 
of which Managing Directors have been appointed. 
 
(2) The  Board of Management shall consist of a Chairman and such number of 
members, not exceeding nine, as the Federal Government may appoint. 
 
(3) The Board of Management shall be a body corporate having perpetual succession 
and a common seal, with power to acquire and hold property and shall by its name sue and 
be sued. 
 
(4) The Chairman and members of a Board of Management shall hold office during 
the pleasure of the Federal Government on such terms and conditions as it may determine. 
 
8. Functions of Board. —(1) The functions of the Board of Management shall be to 
ensure that the marketing companies in respect of which it is to exercise and perform its 
powers and functions under this Act are managed efficiently .and in accordance with sound 
business 
principles and in respect of any such marketing company the Board may, from time to 
time,— 
 
(a)  exercise  such  of  the  powers  of  the  Managing  Director  and  issue  such 
directions to him as it may consider necessary; 
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(b) require the Managing Director to furnish it with such information relating to 
the affairs of the company in respect of which he is the Managing Director as 
the Board of Management may require in connection with the performance of 
its functions; and 
 
(c) remove from office its auditor and appoint another person who is a Chartered 
Accountant  within  the  meaning of  the  Chartered  Accountants  Ordinance, 
1961  (X  of  1961),  to  hold  that  office  for  such  period  and  on  such 
remuneration   payable   by   the   marketing   company   as   the   Board   of 
Management may determine. 
 
(2) The exercise by the Board of Management under subsection (1) of the powers of 
a Managing Director shall have effect as if it were the exercise of those powers by the 
Managing Director himself. 
 
(3) It shall be the duty of a Managing Director to comply with all directions issued to 
him by t he Board of Management under sub-section (1) and to furnish the Board of 
Management with the information required by it. 
 
(4) The  Federal Government may entrust to the Board of Management such other 
functions in relation to any other company or establishment as it may deem fit and upon 
such entrustment reference to 'Managing Director' in this section and in clause (b) of sub- 
section (2) of section 6 and sub-section (2) of section 9 shall be deemed to include a 
reference to the person or authority in whom the management of the affairs of the company 
or establishment vests. 
 
9. Fund of the Board. —(1) There shall be constituted for the Board of Management 
a fund to which shall be credited all sums received by the Board under sub-section (2) and 
out of which shall be defrayed all expenditure incurred by the Board  of Management, 
including 
expenditure on the emoluments of the Chairman, members, officers, servants, experts and 
consultants of the Board. 
 
(2) The Managing Director in respect of every company shall make to the Board of 
Management each year such payment to enable it to defray its expenses as the Board may, 
with the prior approval of the Federal Government in writing, demand of him: 
 
Provided that the aggregate amount of p ayments so demanded of the  Managing 
Directors in any year shall not exceed by more than ten per cent the amount of the estimated 
expenditure of the Board of Management in that year. 
 
 
 
time 
10. Officers, etc., of the Board. —(1) The Board of Management may from time to 
appoint such officers, servants, experts and consultants as it may deem fit. 
 
(2) The Board of Management may appoint one or more committees of the Board 
with such composition and to perform such functions as it may determine. 
 
11. Adoption of balance. The general meeting of a marketing company before 
which a balance-sheet is laid shall not, if the Federal Government by order in writing so 
directs, have the authority to refuse to adopt the balance-sheet, but nothing in this section 
shall be construed to prevent any shareholder from expressing his views on the financial 
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affairs of' the company and a record of the proceedings of every such meeting shall be 
forwarded to the Federal Government not later than fifteen days of the meeting. 
 
12. Regulations. —(1) The Board of Management may, with the prior approval of 
the Federal Government, make such regulations as appear to it to be necessary for carrying 
out the purposes of this Act. 
 
(2) In particular and without prejudice to the generality of the foregoing power, such 
regulations may provide for the manner » of payment and collection of the payment required 
to be made by the Managing Directors under sub-section (2) of section 9. 
 
13. Delegation of powers, etc. —(1) The Federal Government may, by notification 
in the official Gazette, direct that all or any of its powers under this Act shall, in such 
circumstances and subject to such conditions as may be specified in the notification, be 
exercisable also by the Board of Management. 
 
(2) The Federal Government may from time to time issue such directions to and call 
for such information or report from, the Board of Management as it may deem necessary. 
 
(3) T he Board of Management may, with the previous approval in writing of the 
Federal Government, direct that all or any of its powers under this  Act shall, in such 
circumstances and subject to such conditions as may be specified by the  Board of 
Management, be exercisable by the Managing Director. 
 
14. Acquisition of shares. Where, under section 5 of this  Act, the Federal 
Government orders acquisition of the  whole or a portion of the shares of a marketing 
company, it shall acquire the shares from the shareholders of the company within a period of 
ninety d ays on payment of such compensation as may be  determined by the  Federal 
Government on the basis of the principles set out in the Schedule. 
 
15. Reorganisation. —(1) In respect of any marketing company, where the Federal 
Government  holds  or  has  acquired  the  whole  or  majority portion  of  the  shares  in  the 
company carrying the controlling voting rights the board of Management may draw-up a 
plan                                                                                                                                         for 
the  reorganisation  of  such  a  company  with  a  view  to  increasing  its  efficiency  and 
rationalising its operations, hereafter in this section referred to as the reorganisation plan. 
 
(2) The reorganisation plan may in clude provision for amalgamation of managed 
companies and may provide for a scheme for the reconstruction of any such company or 
companies, or amalgamation of any s uch two companies or more companies and such a 
scheme may provide for all or any of the matters contained in section 153 or 153B of the 
Companies Act, 1913 (VII of 1913) or for alteration of shares capital or loan structure and 
alteration of existing or  adoption of fresh memorandum or articles of association of such 
companies. 
 
(3)  The  reorganisation  plan  shall  be  submitted  to  the  Federal  Government  for 
approval and shall be simultaneously publish ed in the official Gazette accompanied by a 
certified statement showing the value of the holdings of the shares or proprietary interests of 
the Federal Government, in the company covered by the plan on the date of the submission 
of the plan, and, from the date of such submission, dealings in shares of companies covered 
by the  plan in any of the stock exchanges shall remain suspended until the Federal 
Government has approved the reorganisation plan. 
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(4)  The  reorganisation  plan  shall  be  implemented  and  shall  take  effect  in  such 
manner and at such time and with such modifications as may be approved by the Federal 
Government. 
 
Explanation.—For  the   purpose   of  this   section   and   section   27,   the  Federal 
Government  shall  be  deemed  to  have  a  majority portion  of  the  shares  in  a  marketing 
company if the face value of the shares of such company owned or controlled by the Federal 
Government exceeds fifty per cent of the total voting rights in the issued and paid-up share 
capital of the company. 
 
1[(5) After the Federal Government has approved the reorganisation plan under sub- 
section (4), it may, for the purpose of rationalising the pay scales of the employees of the 
company reconstructed or amalgamated under the said plan, after the terms and conditions 
of service of such employees as to their remuneration and perquisites: 
 
Provided that the terms and conditions shall not be so altered under this sub-section 
as to be less favourable than those to which such employees were entitled before their 
transfer to the said company.]. 
 
16. Continuance in service. In the case of a managed company, all person employed 
in, by or for the purpose of the business of the company, by whomso ever appointed or 
engaged, shall continue in their respective employments on the same remuneration and other 
conditions of service as were applicable to them immediately before the appointment of the 
Managing Di rector in respect of that company, unless the Managing Director directs 
otherwise in a p articular case of th eir terms and conditions of s ervice are altered in 
accordance with the law or any rules applicable to such managed company. 
 
17. Prohibition. No person, other than the Board of Management, shall, except 
under  the  authority  of  the  Federal  Government,  give  any  instructions  to  a  Managing 
Director, nor shall any person in any manner obstruct him in the discharge of his functions. 
 
18. Debtor —(1) The Federal Government may, by notice in writing, call upon a 
debtor to pay to the Federal Government, or to the marketing company specified in such 
notice, the amount of money due from him to the, company, within a period of thirty days, 
commencing from the date of receipt of such notice by the debtor. 
 
(2) Where a debtor fails to pay the amount due, within the time specified in the 
notice, the Managing Director of the company to which such amount is due shall have the 
same powers of effecting recovery of such amount 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), in respect of sums due to the said Bank. 
 
19. Creditor. —(1) A creditor of a managed company may apply to the Federal 
Government for payment to him of the amount due to him from the company. 
 
 
1Ins by the Marketing of petroleum Products (Federal Control) (Amdt.) Ord. 1979 (59 of 1979), s.2. 
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(2) The Federal Government may, on receipt of an application under sub-section (1) 
and after such enquiry as it may deem fit, direct the managed company— 
 
(a) to repay the amount due to the creditor in such installments and within such 
period as may be specified in the direction; or 
 
(b) to convert the amount due to the creditor into share capital of the company. 
 
(3) If a managed company fails to comply with a direction issued to it by the Federal 
Government under  sub-section (2), the  federal  Government may order  that the  amount 
specified in the direction be recovered from it as an arrear of land revenue and paid to the 
creditor. 
 
20.  Revocation  of  contracts.  If  any contract  or  agreement  entered  into  or  any 
obligation undertaken by any previous management of a managed company is declared by 
the Federal Government, after such inquiry as ii may deem 111 and giving an opportunity to 
the person or persons with whom such contract or agreement was entered into or to whom 
such obligation was undertaken to show cause why such declaration shall not be made, to be 
against the interest of the company,  such  contract, agreement or obligation shall stand 
revoked and the marketing company shall not be liable for any loss or damage suffered by 
the previous management by reason of such revocation: 
 
Provided that this section shall not be construed as preventing any party to a contract, 
agreement or obl igation so revoked from initiating action in a court of l aw against the 
previous management. 
 
21. Right of shareholders. Any person having a share in a marketing company shall 
be entitled to complain to the Board of Management or the Federal Government in respect of 
any action  taken  by the  Managing  Director  in  relation  to  the  affairs  of  the  marketing 
company. 
 
22.  Vesting  of  business  acquired  by  Federal  Government  in  a  corporation. 
Where the Federal Government has taken over the management and acquired the whole of 
the shares of a marketing company under section 5, it may transfer the management, and 
may also transfer such shares in such marketing company, to any corporation wholly owned 
or controlled by the Federal Government or a corporation to be set-up for the purpose, on 
such terms and conditions as the Federal Government may specify. 
 
23. Transfer of service of employees of a marketing company to corporation. — 
(1) Where the management of a marketing company is transferred to a corporation under 
section 22, every whole time employee of the marketing company who was employed by 
such company immediately before the date of transfer of the management to the corporation 
shall, on and from the date of such transfer, become an employee of the corporation and 
shall hold his office therein on the same terms and conditions, including remuneration, 
tenure of office, rights and privileges, as to pension and gratuity and other matters, as were 
applicable  to  him  immediately before  the  date  of transfer  until  his  employment  in  the 
corporation is terminated or his terms and conditions of service are altered in accordance 
with law or any rules applicable to such corporation. 
 
(2) Where any employees of a managed company have,, under the provisions of sub- 
section (1), become the employees of a corporation, the corporation may, for the purpose of 
rationalising the pay scales of such employees or for any other good any adequate reason, 
alter the terms and conditions of service of the employees as to their remuneration in such 
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manner as it thinks fit, and, if the alteration is thus not acceptable to any employee, the 
corporation may terminate his employment by giving him compensation equivalent to his 
remuneration for three months or, if his  contract of service provides for a shorter notice for 
termination of employment, for the period so provided. 
 
Explanation.— The compensation payable to an employee under this sub-section 
shall be in addition to and not in derogation of any of  his rights as to pension, gratuity, 
provident fund money or other benefit to which he may be  entitled under his contract of 
service. 
 
(3) If any question arises as to whether any person was a whole time employee of a 
marketing company i mmediately before its management was transferred to a corporation 
under section 22, the question shall be referred to the Federal Government whose decision 
shall be final. 
 
(4) The transfer of the services of any employee of a marketing company to  a 
corporation shall not, except as provided in this section, entitle any such employee to any 
compensation  and  no  such  claim  shall  be  entertained  by  any  court,  tribunal  or  other 
authority. 
 
24. General effect of vesting management in corporation. —(1) Where the 
management of managed company has been vested in a corporation under section 22, all 
contracts agreements and other instruments of whatever nature subsisting or having effect 
immediately before the date of vesting, to which, such marketing company was a party or 
which were in favour of or against such marketing company shall, subject to the provisions 
of section 20, be of as full force and effect against or in favour of the corporation, as the case 
may be, and may be enforced or acted upon as fully and effectually, as if, instead of the 
company the corporation had been a party thereto or as if they had been entered into or 
issued in favour of the corporation. 
 
(2)  If,  on  the  date  of transfer  of the  management  of a managed  company to  a 
corporation, any suit,  appeal or other legal proceeding of by or  against such company 
whatever nature, is pending, it shall not abate, be discontinued or be in any way prejudicially 
affected by reason of such transfer or anything done under this Act, but the suit appeal or 
other proceeding may be continued, prosecuted and enforced by or against the corporation. 
 
25. Duty to deliver possession of property and documents relating thereto. —(1) 
Where the management of a marketing company has been transferred to a corporation under 
section 22, then— 
 
(a) every person in whose possession, custody or control there is any property of 
such marketing company s hall deliver the property to  the corporation 
forthwith; and 
 
(b) any person who, on the date of transfer of the management of the company to 
the corporation, has in his possession, custody or control any bo oks, 
documents, or other record relating to such marketing company shall be liable 
to account for t he said books, documents and record to the corporation, and 
shall deliver them to the corporation or to such person as the corporation may 
direct. 
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(2) Without prejudice to the other provisions of sub-section (I), it shall be lawful for 
the corporation to take all necessary steps for acquiring possession of all properties which 
have been transferred to and vested in it under this Act. 
 
26. Provident superannuation and other like funds. —(1) Where a marketing 
company the management of which has been transferred to a corporation under section 22, 
has established a provident or superannuation fund or any other like fund for the benefit of 
its employees and has constituted a trust in respect thereof (hereafter in this section referred 
to as an existing trust), the moneys standing to the credit of any such fund on the occasion of 
such transfer; together with any oth er assets belonging to such fund, shall, subject to the 
provisions of sub-section (2), stand transferred to and vest in the corporation on the date the 
company is transferred to it, free from any such trust. 
 
(2) Where all the employees of any such company do not become employees of a 
corporation under section 23, the moneys and other assets belonging to any such fund as it 
referred to in subsection (1) shall be apportioned between the persons responsible for the 
fund and the corporation in such manner as may be prescribed by rules, and, in the case of 
any dispute regarding such apportionment, the decision of the Federal Government shall be 
final. 
 
(3) A corporation shall, as soon as may be  after the management of a marketing 
company is transferred to it under section 22, constitute in respect of the moneys and other 
assets which are transferred to and vested in it under this section, one or more trusts having 
objects as similar to the objects of the existing trust as in the circumstances may be 
practicable. 
 
(4)  Where  all  the  moneys  and  other  assets  belonging  to  an  existing  trust  are 
transferred to and vested in a corporation under this section, the persons responsible for such 
trust shall, as from the date of su ch transfer, be discharge from the trust, except as respects 
things done or omitt ed to be done before the date of t ransfer of the  management of t he 
marketing company. 
 
27. Minimum return. —(1) Where the Federal Government takes over the 
management of a marketing company but does not hold majority portion of shares in the 
company carrying voting rights therein, it shall, on behalf of such company, guarantee to the 
shareholders of such company a minimum annual rate of return equivalent to one per cent 
above the bank rate. 
 
(2) The rate of return referred to in sub-section (1) shall be worked out on the paid up 
capital of the marketing company. 
 
28. Bar of jurisdiction.—(1) No court, shall call in question or permit to be called in 
question, any provision Of this Act or of any order made or anything done or any action 
taken there under. 
 
(2) No court shall grant any injunction or make any order or entertain any 
proceedings, in relation to anything done or intended to be done under this Act. 
 
29. Indemnity. No suit, prosecution or other legal proceeding s hall lie against the 
Federal Government, the Board of Management, a Managing Director or any other person 
for anything done in good faith under this Act or any rule or order made thereunder. 
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30. Penalties. Whoever contravenes the provisions of section 17 or section 25 shall 
be punishable with imprisonment for a term which may extend to two years, or with fine, or 
with both. 
 
31. Provision as to composite marketing.   —(1)  Where  a  marketing  company  is 
engaged in a business not directly related to the purchasing, obtaining, selling, distributing 
or marketing of petroleum products and an order under section 5 is made in respect of such 
marketing company, the Managing Director shall prepare, as soon as possible, a plan for the 
separation of the business relating to  the purchasing, obtaining, selling, distributing or 
marketing of petroleum products from the other business. The plan shall include provisions 
for s eparation of p hysical assets and apportionment of assets and liabilities, including 
apportionment of p aid up capital on a p ro rata b asis between the respective business. In 
preparing the plan, the Managing Director shall follow the provisions of the Companies Act, 
1913 (VII of 1913) to the extent it is not inconsistent with the provisions of this Act. 
 
(2) The Managing Director shall submit the pl an for approval to the Federal 
Government, which shall publish the plan in the official Gazette to ascertain the views of the 
shareholders of the company within a specified period. 
 
(3) The  Federal Government shall, after considering the views of the shareholders, 
either  retain  the  business  not  directly  related  to  the  purchasing,  obtaining,  selling, 
distributing  or  marketing  of  p etroleum  products  and  the  assets  and  liabilities  of  such 
business,  or dispose  of the  business  alongwith  the  assets  and  liabilities  apportioned  as 
relating thereto, in such manner as the Federal Government may deem fit. 
 
32. Savings.   Nothing contained in this Act shall apply to any marketing company 
in which the whole or a substantial proportion of shares is held by foreigners or affect any 
agreement between a foreign investor or creditor and any citizen of Pakistan which has been 
expressly approved by the Federal Government. 
 
33. Power to make rules. —(1) The Federal Government may, by notification in the 
official Gazette, make rules 1for carrying out the purposes of this Act. 
 
(2) In particular and without prejudice to the generality of the foregoing power, such 
rules may provide for, of' may empower the Board of Management to make orders providing 
for, all or any of the following matters, namely:— 
 
(a) ensuring the safety of the properties of a managed company; 
 
(b) ensuring the due performance of their duties by the persons connected with a 
managed company; 
 
(c) prohibiting any thing likely to interfere with the proper functioning of a 
managed company; 
 
 
1  For the Marketing of Petroleum Products (Acquisition and Compensation) Rules, 1974, see S.R.O., 554 (I)/74, dt. 29-3-74, Gaz. of P., 
Ext, (Islamabad), 1974 Pt. II, pp. 681 684. 
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(d) the administration, management and disposal by way of transfer or otherwise 
of any property b elonging to, or held or managed by or  on behalf of, a 
managed company; 
 
(e) prohibiting save with the leave of the Managing Director or any other person 
authorised in this behalf by the  Federal Government or the Board of 
Management, the departure from any area of any person connected with the 
administration, control or functioning of a managed company; 
 
(f) the taking over or control of any business, trade, industry, firm or company 
which, in the opinion of Federal Government, is a subsidiary of a marketing 
company; 
 
(g) the requisitioning of any p roperty, movable or immovable, belonging to a 
managed company; 
 
(h) the requisitioning of any property, movable or immovable, the requisition of 
which is, in the opinion of the Federal Government, required for the proper 
functioning of a managed company; 
 
(i) preventing the entry of any person into any place, yard, factory, mill, shop or 
office used for the purpose of managed company or of any of its subsidiaries; 
 
(j) the taking of any steps for collecting, controlling and disposing of the assets, 
movable and immovable, of any managed company; and 
 
(k) in relation to any managed company to  which the provisions of section 31 
apply— 
 
(i) the determination of the question whether any p roperty pertains to the 
business of such company di rectly related to the purchasing, obtaining, 
selling, distributing or marketing of petroleum products or whether any 
assets, rights, debts, liabilities or obligations were acquired or incurred, or 
any contract, agreement or other instrument was made, in respect of or for 
the purposes of any su ch business or whether any d ocuments relate to 
those purposes; 
 
(ii) the allocation of the paid-up capital, or assets representing paid-up capital, as 
the  case  may  be,  between  such  business  of  the  company  and  any other 
business; 
 
(iii) the substituting of any agreement entered into partly for the purposes of such 
business and partly for other purposes by a separate agreement relating solely 
to such business and for any apportionment of rights, obligations and 
indemnities consequent thereon; 
 
(iv) the severance of leases comprising property of which part only is used for 
purposes of such business of the company and for apportionment of rights 
and liabilities consequent on such severance; 
 
(v) the apportionment and the making of financial adjustments with respect to 
any debts liabilities or obligations incurred by the company p artly for the 
purposes of such business and partly for other purposes; and 
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(vi) the apportionment of the moneys and other assets belonging to any provident 
or sup erannuation funds, or any, other like fund to which the p rovisions of 
section 26 do not  apply, between persons employed in connection with s uch 
business and other persons. 
 
34. Removal of difficulties. If any difficulty arises in giving effect to any provisions 
of this Act, the Federal Government may make such order, not inconsistent with the 
provisions of this Act, as may appear to it to be necessary for the purposes of removing the 
difficulty: 
 
Provided that no such power shall be exercised after the expiry of one year from the 
commencement of this Act. 
 
35. [Repeal.] Omitted by the Federal Laws (Revision and Declaration) Ordinance, 
1981 (XXVII of 1981), s. 3 and Sch., II. 
 
 
 
 
THE SCHEDULE 
(See section 14) 
Principles and the manner for payment of compensation in respect of the shares of a 
marketing company acquired by the Federal Government. 
 
1. Where the whole or a portion of the shares of such marketing company is acquired 
by the Federal Government, the value of the compensation for the shares so acquired shall 
be assessed at the break-up value. 
 
2. The compensation payable in accordance with the principles indicated above shall 
be paid by the Federal Government in cash or in the form of Government Bonds redeemable 
at any time at the option of the Federal Government within a period of 15 years carrying a 
rate of interest one per cent above the bank rate notified by the State Bank of Pakistan from 
time to time. The Bonds shall be negotiable and eligible as security for advances. 
 
3. In this Schedule— 
 
“Break-up Value” shall mean the value of the shares of a company as 
determined by the auditors of such company on the basis of its latest 
audited annual Balance Sheet, in accordance with clause (c) of rule 8 
of the Wealth-Tax Rules.