Esso Undertakings (Vesting) Act, 1976

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THE ESSO UNDERTAKINGS (VESTING) ACT, 1976. 
 
 
              
[ 
 
CONTENTS 
1.  Short title, extent and commencement 
2.  Definitions 
3.  Act to override other laws 
4.   Vesting of Esso undertakings 
5.  Vesting in a Government Company 
6.  Contracts 
7.  Lease 
8.  Re-organization of Government Company 
9.  Payment 
10.  Provisions relating to officers and other employees of Esso undertakings 
11.  Provident Fund 
12.  Delivery of possession of vested property 
13. Penalty 
14. Offences by companies 
15. Protection of action taken in good faith 
16.  Cognizance of offences 
17.  Savings 
 
 

 
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18.  Removal of doubts 
19.  Power to make rules 
20.  Power to remove difficulties 
21.  Repeal 
 
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THE ESSO UNDERTAKINGS (VESTING) ACT, 1976. 
1Act No. LXXIX OF 1976 
 
         [27th December, 1976] 
 
An Act to provide for vesting in the Federal Government of certain undertakings of 
Esso Eastern Inc. in Pakistan. 
 
 WHEREAS it is expedient to provide for vesting in  the Federal Government of certain 
undertakings of Esso Eastern Inc. in Pakistan and for matters connected therewith or ancillary 
thereto; 
 
 AND WHEREAS Esso Eastern Inc., a foreign company, has approached the Federal 
Government for vesting of certain of its undertakings in Pakistan in the Federal Government; 
 
 AND WHEREAS the scope of such vesting and the amount and manner of the payment to 
be made to Esso E astern Inc. for such undertakings has been agreed upon between the Federal 
Government and Esso Eastern Inc.; 
 
 It is hereby enacted as follows:— 
 
 1. Short title, extent and commencement.—(1) This Act may be called the Esso 
Undertakings (Vesting) Act, 1976. 
 
 (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)       “commencing day” means the day on which this Act comes into force; 
 
(b)       “Government company'' means a company directly or indirectly owned or 
controlled by the  Federal Government in which the Esso undertakings are 
vested by notification under sub-section (1) of section 5; 
 
(c) “Esso” means Esso Eastern Inc., incorporated under the laws of the State 
of Delaware in the United States of America, having its principal office at 
2401 South  Gessner,  City of  Houston,  State  of  Texas,  in  the  United  
States  of America, and having a branch in Pakistan; 
 
(d) “Esso undertakings” means the business in Pakistan of Esso of purchasing, 
storing, distributing, blending, marketing and selling of  refined petroleum 
products, of lubricants and of chemical products, and includes— 
 
 
1For Statement of Objects and Reasons, see Gaz., of P., 1976, Ext., Pt. Ill, p. 1218. 
 
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 (i) all assets, rights, powers, authorities and privileges and  all 
property, mov able and immovable, book -debts, cash b alances, 
reserves, provisions and investments pertaining to such business, and 
all other rights and int erests in or arising out of su ch property, in 
Pakistan, as were, imm ediately b efore the commencing day, in the 
ownership, possession, power or control of Esso; 
 
(ii) all books of accounts, registers, records  and all other documents 
of Whatever nature pertaining to  such business in Pakistan, as were, 
immediately before the commencing day, in the possession, power or 
control of Esso; 
 
(iii)   all  debts,  liabilities  and  obligations  of  whatever  kind  in  Pakistan 
pertaining to such business, as were immediately b efore the 
commencing day, subsisting against Esso; 
 
(iv)    all liabilities and entitlements of Esso undertakings for amounts 
payable to and recoverable from any other businesses or undertakings 
of Esso in Pakistan   which,   immediately   before   the   commencing   
day, were subsisting on the basis of moneys pertaining to or arising 
out of any other businesses or undertakings of Esso in Pakistan which 
were utilized for the purposes of Esso undertakings being t reated as 
liabilities and moneys pertaining to or arising out of Esso undertakings 
which were utili zed for the purposes of any oth er businesses or 
undertakings of Esso in Pakistan being treated as entitlements; 
 
(v)     all liabilities and entitlements of the Esso  branch in Pakistan for 
amounts payable to and receivable from the principal office of Esso in 
the Unit ed States of America which, immediately b efore the 
commencing day, were subsisting on account of products and services 
pertaining to Esso undertakings; 
 
(vi) all liabilities and obligations of Esso for the payment of pensions to 
such of its  former employees, or th eir personal representatives, who 
were, immediately b efore the commencing day, entitled to receive 
pensions on account of the past service of such former employees with 
Esso in Pakistan; 
 
(vii) all contracts and agreements pertaining to Esso undertakings, including 
the Sale and Purchase Agreement dated the first day of January, 1976, 
between Pakistan Refinery and Esso and the Agreements between 
Burmah Shell Oil Storage and Distributing Company of  Pakistan 
Limited, Standard-Vacuum Oil Company and Caltex Oil (Pakistan) 
Limited relating to the Joint Hydrant System at the Karachi Airport; 
 
(viii) the profit or loss arising out of any Esso undertakings during the period 
between the first day of January, 1976, and the close of business on the 
day immediately preceding the commencing day; 
 
 
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(ix) all liabilities of Esso for taxes and surcharges thereon leviable on or in 
relation to the income, profits or gains of Esso arising out of any Esso 
undertakings up to and inclusive of the year of account ending t he 
thirty-first day of December, 1975; 
 
(x) all entitlements of Esso to credit or refund of taxes or any payments 
made for or in respect of any assessment or liability under the Income- 
tax Act, 1922 (XI of 1922), relating to any income, profits or gains of 
Esso arising out of any Esso undertakings up to and inclusive of the 
year of account ending the thirty-first day of December, 1975; 
 
   but does not include— 
 
 (1) the business of Esso in Pakistan relating to natural gas and crude oil; 
 
 (2) the corporate name, trading styles and trade and service names, marks and oth er 
insignia used by Esso, any trade marks registered by Esso in Pakistan, or any right of Esso to use 
any trade mark registered in Pakistan by Exxon Corporation, a corporation incorporated in the State 
of New Jersey, United States of America, and having its principal office in New York, State of New 
York, United States of America; 
 
 (3) any patent or design registered in Pakistan in the name of Esso or any affiliate of Esso; 
 
 (4) any confidential and proprietary in formation and material or information and m aterial 
pertaining to trade secrets belonging to Esso or procured by Esso for use in connection with Esso 
undertaking; 
 
 (5) the  business  and  any  assets  of  Esso  situated  in  the  territories  which immediately 
before the sixteenth day of  December, 1971, constituted the Province of East Pakistan, and any 
claims by or against Esso and any receivables and payables of Esso pertaining to any business at any 
time carried on by Esso in such territories; 
 
 (6) the  Agreement  dated  the  fifteenth  day  of  September,  1976,  between  the President 
of Pakistan and Esso; 
 
 (7) the policies of insurance issued in Pakistan by New Hampshire Insurance Company 
of Manchester, New Hampshire, U.S.A., in favour of Esso; 
 
 (8) the benefits of any policies of insurance available to Esso in connection with the supply 
in Pakistan of aviation fuels and lubricants to international airlines; or 
 
 (9) any contracts  entered  into  by Esso  for  the  delivery of  aviation  fuels  and lubricants 
outside Pakistan to aircraft operated by the Pakistan International Airlines Corporation; 
 
(e) “Pak-Stanvac Petroleum Project” means the joint exploration and production 
arrangements created by the Memorandum of Agreement between Esso under 
its former name of Standard-Vaccum Oil Company and the Governor-General 
of Pakistan, dated the 24th September, 1954, as amended; and 
 
 
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(f) “Pakistan Refinery” means Pakistan Refinery Limited, a company 
incorporated in Pakistan under the Companies Act, 1913 (VII of 1913) and 
having its registered office at Korangi Creek Road, Karachi. 
 
 3. Act to override other laws.— This Act shall have effect notwithstanding anything 
contained in any other law for the time being in force or in any instrument having effect by virtue of 
any l aw other than this Act and notwithstanding any decree or order of any court, t ribunal, 
commission or other authority. 
 
 4. Vesting  of  Esso  undertakings.—(1) As  from  the  commencing  day,  the  Esso 
undertakings, and all rights, titles and interests therein, shall stand transferred to and vest in the 
Federal Government. 
 
 (2) All deeds, bonds, contracts, agreements, powers-of-attorney, grants of legal representation  
and  other  instruments  of whatever  nature  in  relation  to  Esso  undertaking subsisting and having 
effect immediately before the commencing day to which Esso is a  party or whi ch are in favour of 
Esso shall be of full force and effect against or in favour of t he Federal Government and may be 
enforced and acted upon as fully and effectively as if references in such deeds, bonds, contracts, 
agreements, powers, grants and instruments to Esso were references to the Federal Government. 
 
 (3) All suits, appeals and other legal proceedings instituted by or  against Esso for the 
purpose of, or in relation to, Esso undertakings, and pending immediately before the commencing 
day, shall be deemed to be suits, appeals and legal proceedings by or against the Federal 
Government and the same shall not abate, be discontinued or be in any way prejudicially affected by 
reason of the vesting of Esso undertakings, or of anything contained in  this  Act,  but  the  su it, 
appeal  or other  proceeding may be  continued,  prosecuted  and enforced by or against the Federal 
Government. 
 
 (4) where any property is held by Esso for the purpose of or in relation to Esso undertakings 
under any lease or licence or under any right of tenancy or occupancy, the Federal Government shall 
be deemed to have become the lessee, licencee, occupant or tenant, as the case may be, in respect of 
such property as if the lease, licencee, right of occupancy or t enancy had been granted to the 
Federal Government and thereupon all rights under such l ease, licence, occupancy or tenancy, 
including any right of renewal thereof, shall be deemed to have vested in the Federal Government. 
 
 (5) The profit or loss arising during the period between the first day of January, 1976, until 
the close of business on the day immediately preceding the commencing day out of any business 
comprised in Esso undertakings shall be deemed to be the profit or loss of the Federal 
Government and such profit or loss shall not  be treated as accruing or  arising or  as h aving been 
received, whether actually or nationally, by Esso  for any pu rpose including, the computation of 
Esso's taxable income for the year 1976 or any other period for purposes of assessment of taxes and 
surcharges thereon levied on or in relation to income, profits or gains. 
 
 5. Vesting in a Government company.—(1) The Federal Government may, by notification 
in the o fficial Gazette, direct that the Esso undertakings shall stand transferred to and vest in the 
Government company on such day, not being a day earlier than the commencing day, as m ay be 
specified in the notification. 
 
 
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 (2) Where Esso undertakings vest in the Government company un der sub-section (1), the  
Government company shall, on and from the day of such vesting, be deemed to have become the 
owner, tenant, occupant, lessee or licence, as the case may be, in relation to Esso undertakings, and 
all the rights and liabilities of the Federal Government in relation to Esso undertakings shall, on and 
from the day of such vesting, be deemed to have become the rights and liabilities, respectively, of the 
Government company. 
 
 (3) Where Esso undertakings vest in the Government company, under sub-section (1), all 
officers and employees transferred to the Federal Government under sub-section (1) of section 10 
shall, on and from the day of such vesting, stand transferred to the Government company, and the 
provisions of sub-sections (2), (3), (4) and (5) of section 4, sections 6 and 7, sub-section (5) of 
section 10 and sections 11, 12, 13, 15 and 17 shall apply to the Government company as they apply 
to the Federal Government and, in the application of the s aid sections for the  purposes of this  
section, a reference to the Federal Government shall be construed as a reference to the Government 
company. 
 
 6. Contracts.—(1) Every contract referred to in sub-clause (vii) of clause (d) of 
section 2 and entered into by Esso for any service, sale or supply in Pakistan or abroad and in force 
immediately before the commencing day shall, unless terminated under sub-section (2) within one 
year from the commencing day, continue to be  of full force and effect against or in favour of the 
Federal Government. 
 
 (2) The Federal Government may, if it is satisfied that any contract referred to in sub-section 
(1) is unduly on erous or is detrimental to the interests of the Federal Government, by o rder in  
writing, either terminate such contract or make such alterations or modifications th erein as it may 
think fit: 
 
 Provided that the Federal Government shall not terminate any contract or make any 
alteration or modification therein except after giving to the  parties to the  contract a reasonable 
opportunity of  being  heard  and  except  after  recording  its  reasons  for  such  termination, 
alteration or modification, as the case may be. 
 
 7. Lease.— On the expiry of the term of any lease, licence or tenancy referred to in sub-
section (4) of section 4, such lease, licence or tenancy s hall, if so desired by the Federal 
Government, be renewed on the s ame terms and conditions on whi ch the lease, licence or t enancy 
was held by Esso immediately before the commencing day. 
 
 8. Re-organization of Government company.—(1) If the Esso undertakings are vested in a 
Government company und er sub-section (1) of section 5, the Federal Government may direct the 
Board of Management constituted under the Marketing of Petroleum Products (Federal Control) Act, 
1974 (XVII of  1974), to  draw up a p lan for the re-organization of the company with  a view to 
increasing its efficiency and rationalising its operations, hereafter in this section referred to as the re-
organization plan. 
 
 (2) The re-organization plan may i nclude provision for amalgamation of the Gov ernment 
company with any one  or more managed companies under the Marketing of Petroleum Products 
(Federal Control) Act, 1974 (XVII of 1974), and may provide for a scheme for the re-construction 
of the Government company or such company or companies or amalgamation  of  the  Government  
company with  any one or  more  such  company or companies and such scheme may provide for 
 
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all or any of the matters contained in section 153 or section 153B of the Companies Act, 1913 
(VII of 1913), or for alteration of share capital or loan structure and alteration of existing, or 
adoption of fresh, memorandum or articles of association of such companies. 
 
 (3)  The  re-organization  plan  shall  be  submitted  to  the  Federal  Government  for 
approval and shall be simultaneously published in the official Gazette accompanied by a certified 
statement showing the  value of the holdings of the shares of the Federal Government in  the 
companies covered by the plan on the date of the submission of the plan, and, from the date of such 
submission, dealings in shares of the companies covered by the plan in any of the  stock 
exchanges shall remain suspended until the Federal Government has approved the re-organization 
plan. 
 
 (4)  The  re-organization  plan  shall  be  implemented  and  shall  take  effect  in  such 
manner and at such time and with such modification as may be approved by the  Federal 
Government. 
 
 9. Payment.—The Federal Government shall pay Esso  for Esso undertakings on the 
commencing day the sum set forth in the Agreement dated the fifteenth day of September, 1976, 
between the President of Pakistan and Esso, and such payment shall be made in the currencies 
and in the manner provided in the said Agreement. 
 
 10. Provisions relating to officers and other employees of Esso undertakings.— (1) 
Except as otherwise agreed between the Federal Government and Esso, every whole time officer or 
other employee of Esso who was, immediately before the commencing day, employed by Esso in 
Pakistan in connection with Esso undertakings, and every such whole time officer or other employee 
of Esso in Pakistan who was, immediately b efore the commencing day, temporarily holding any 
assignment outside Pakistan, shall, on the commencing day, become an officer or other employee, as 
the case may be, of the Federal Government and shall hold office on the same terms and conditions 
and with the same rights to pension, gratuity and other matters as would have been admissible to 
him if this Act had not  come into force and shall continue to do so unless and until his 
employment by the Federal Government is terminated or until his remuneration and conditions of 
service are altered by the Federal Government. 
 
 (2) Any officer or employee who becomes an officer or employee of the Government 
company under sub-section (3) of section 5 may be transferred by the Federal Government to any 
other corporation, company or industrial unit controlled by it, and shall hold office therein on 
such terms and conditions as are not less favourable than those to which he was entitled immediately 
before such transfer. 
 
 (3) Any officer or employee who becomes an officer or employee of the Government 
company under sub-section (3) of section 5 or is transferred under sub-section (2) shall not be 
entitled to any compensation or to the designation which he was holding immediately before the 
commencing day or on the date of such transfer, as the case may be, and no claim for su ch  
compensation  or  designation  shall  be  entertained  by  any  court,  tribunal  or  other authority. 
 
 (4) Notwithstanding anything contained in any agreement or any law for the time being 
in force, and notwithstanding any decree, order, award or direction of any court, tribunal, arbitrator, 
commission or other authority, the transfer of the services of any officer or other employee under 
sub-section (1) shall not entitle any such officer or other employee to any payment, whether by 
 
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way of separation benefits, compensation, gratuity or otherwise, by reason  only of his  ceasing to  
be  an  employee  of  Esso,  and  no  proceedings  for  the declaration, recognition, quantification or 
enforcement of any such entitlement or payment, whether filed before, on or after the commencing 
day, shall be adjudicated upon or otherwise entertained by any court, tribunal, arbitrator, commission 
or other authority. 
 
 (5) Where  any officers  or employees  have become  o fficers  or employees  of the 
Federal Government under sub-section (1), the  Federal Government may, for the purpose of 
rationalising the pay scales of such officers or employees or for any other good and adequate reason, 
alter the terms and conditions of service of such officers or employees as to their remuneration in 
such manner as it thinks fit; and if the alteration thus made is not accepted in writing by the officer or 
employee concerned within such period as may be  specified, which p eriod shall not be less than 
thirty days, he shall be deemed to have resigned from service on the  expiry of  such period, and 
notwithstanding anything contained in any other law, or in any agreement or in any decree, order, 
award, or directions of any Court, arbitrator, Commission or other authority, or in any conditions of 
service, he shall only be entitled to benefits payable on resignation and not  termination of 
employment. 
 
 (6) Where any q uestion arises as to whether any person was immediately before the 
commencing day a permanent officer or other employee of Esso for the purpose of or in relation to 
Esso undertakings, the question shall be referred to the Federal Government whose decision thereon 
shall be final. 
 
 11. Provident Fund.—(1) The moneys and investments in the provident fund established by 
Esso for the benefit of the persons employed by it in Pakistan shall, on the commencing day, stand 
transferred to and vest in the Federal Government free from any trust that may have been constituted 
by Esso in respect thereof, and the trustees of the provident fund shall, as from the commencing day, 
stand discharged from the trust, expect as respects thin gs done or omitted to be done before the  
commencing day. 
 
 (2) The Federal Government shall cause the firm of chartered accountants in Pakistan agreed 
with Esso to determine as of the day immediately preceding the commencing day the contributions 
to the provident fund of such officers and other employees of Esso as are excepted under sub-section 
(1) of section 10 by agreement between the Federal Government and Esso and the contributions of 
Esso to the provident fund in respect of such officers and employees, and the interest due on all such 
contributions, and within thirty days of the commencing day the Federal Government shall— 
 
(a) pay to the new trustees of the provident fund to be appointed by Esso the 
amount of all such contributions and interest; and 
 
(b) pay and transfer the balance of the moneys and investment then remaining to 
the trustees of the trust or trusts referred to in sub-section (3). 
 
 (3) The Federal Government shall, as soon as may be after the commencing day, constitute, 
in respect of the balance of moneys and investments referred to in clause (b) of sub-section (2) 
one or  mo re trusts having such objects as in the circumstances may be p racticable so, 
however, that the rights and interests of the beneficiaries under the trust created by Esso are 
not in any way prejudiced or diminished: 
 
 
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 Provided that the Federal Government may not constitute any new trust if a suitable trust 
already exists for the benefit of the officers and employees for whose benefit a trust is to be created 
and may transfer the balance of the said moneys and investments to the existing trust. 
 
 (4) The Federal Government may, by order, vest in the trustees of the trust or trusts referred 
to in sub-section (3) all collateral securities assigned to the trustees of the provident fund mentioned 
in sub-section (1) by officers or employees whose services stand transferred to the Federal 
Government under subsection (1) of section 10. 
 
 12. Delivery of possession of vested property.—(1) Where any p roperty or other assets 
stand transferred to and vested in the Federal Government under this Act, every person in whose 
possession, custody or  control any such property or assets (including books, documents, or other 
papers relating to Esso undertakings) may be, shall be liable to account for such property or 
assets and shall deliver the same to the Federal Government upon demand. 
 
 (2) Without prejudice to the provisions of sub-section (1), the Federal Government may 
take all such steps as may be necessary to take possession or assume control of the p roperties, 
assets, books, documents and other papers referred to in that sub-section. 
 
 13. Penalty. Any person who— 
 
(a)       wrongfully  obtains  possession  of,  or  retains,  or  having  in  his  possession, 
custody or  control, wrongfully withholds,  any property or  other assets 
transferred to and vested in the Federal Government under this Act; or 
 
(b)       h aving in his possession, custody or control any book, register, document or 
other  papers  relating  to  Esso  undertakings,  wilfully  withholds  or  fails  to 
furnish or deliver the same to the Federal Government,  
 
shall he punishable with imprisonment for a term which may extend to five years, or with fine 
which may extend to fifty-thousand rupees, or with both. 
 
 14. Offences by companies.— Where an offence under this Act has been committed by a 
company, every p erson who, at the time the offence was committed was in charge of, and w as 
responsible to, the company for the conduct of its business, as well as the company, shall be deemed 
to be guilty of the offence and shall be liable to be proceeded against and punish ed 
accordingly: 
 
 Provided that nothing contained in this section shall render any su ch 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. 
 
 15. Protection of action taken in good faith.— No suit prosecution or other legal 
proceeding shall lie against the Federal Government or any person for anything which is in good 
faith done or intended to be done under this Act. 
 
 16. Cognizance of offences.— Notwithstanding anything contained in the Code of Criminal 
Procedure, 1898 (Act V of 1898), no court shall take cognizance of any offence under this Act 
except on a complaint in writing made by or under the authority of the Federal Government. 
 
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 17. Savings.—(1) Nothing contained in this Act shall affect any undertaking or business of 
Esso in connection with the exploration of p etroleum, the p roduction, refining, t reating and 
transportation of natural gas and crude oil, and the purchase, distribution, marketing and selling of 
natural gas and crude oil. 
 
 (2) In particular, and without prejudice to the generality of the provisions of sub- 
section (1), nothing contained in this Act shall affect— 
 
(a) any share held by Esso in the equity capital of the Pakistan Refinery, or any 
deed, bond, agreement other than the Agreements referred to in sub-clause 
(vii) of clause (d) of section 2, power-of-attorney, proxy, grant of legal 
representation  or  other  instrument  of  whatever  nature  pertaining  to  the 
Pakistan Refinery, including specifically but without limitation the agreement 
entitled “Refinery Agreement” between the President of Pakistan, the Burmah 
Oil Company Limited, California Texas Oil Corporation, the Shell Petroleum 
Company Limited and Esso under its former name of Standard-Vacuum Oil 
Company, as supplemented by the Refinery letter Agreements Nos. 1, 2 and 3 
and by the Tanker Letter Agreement, all dated the 28th November, 1959, and 
by the Ministry of Industries and Natural Resources, Government of Pakistan, 
letter No. P-III-1 (49)61, d ated the 9th November, 1962, and the agreement 
between  the  Government  of  Pakistan  and  the  parties  to  the  Refinery 
Agreement, including the Pakistan Refinery, dated the 21st November, 1975; 
 
(b) any part of the interest held by Esso in the Pak-Stanvac Petroleum Project, in 
any licence or lease issued pursuant thereto or in any asset belonging to or 
held for the benefit of the participants in the Pak-Stanvac Petroleum Project; 
 
(c)       the assets identified in the s econd Schedule to  the Ag reement referred to in 
section 9; 
 
(d) any contracts, agreements, assets, rights, powers, authorities and privileges, or 
any property movable  or  immovable,  book-debts,  cash  balances,  reserves, 
provisions or investments pertaining to any undertaking or business mentioned 
in sub-section (1), or any oth er rights and interest in or arising out  of such 
property, as are in the ownership, possession, power or control of Esso; 
 
(e) any books of account, registers, records or any other documents of whatever 
nature pertaining to any undertaking or business mentioned in sub-section (1); 
 
(f) any liability of Esso for taxes and duties payable in relation to production, 
sale, import, export or other dealings pertaining to any undertaking or business 
mentioned in sub-section (1), or any entitlement of Esso to credit for or refund 
of payments made for or in respect of any such liability; 
 
(g) any liability of Esso for payment of annuities pensions, gratuities or other 
separation benefits to such officers and employees of Esso  as are excepted 
under sub-section (1) of section 10 by agreement between the Federal 
 
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Government and Esso, or any liability or entitlement of Esso for sums payable 
to or receivable from such officers and employees; 
 
(h) any  other  liability,  indebtedness  or  obligation  of  Esso  of  whatever  kind 
pertaining to any undertaking or business mentioned in sub-section (1); 
 
(i) the claim or entitlement, if any, of Esso to payment out of the moneys declared 
and   paid   to   the   Administrator   under   the   Abandoned   Properties   and 
Management Act, 1975 (XX of 1975) , by the trustees of the provident fund 
established by Esso for the benefit of its employees; 
 
(j) any suit, application or other legal proceeding instituted against Esso relating 
to the inland mechanically p ropelled vessel M.V Esso Ark registered in the 
territories which immediately before the sixteenth day of  December, 1971, 
constituted the Province of East Pakistan; 
 
(k)       any provisions or allocations of money made in the accounts of the Esso 
branch in Pakistan for liabilities accrued or accruing in respect of any period 
preceding the commencing day on account of— 
 
(i) any liability indebtedness or obligations of the kind mentioned in 
clause (f), (g), or (h) or sub-clause (5) of clause (d) of section 2; or 
 
(ii) any profits arising from any undertakings or business mentioned in 
sub-section (1). 
 
 (3) The payment of the amount determined in accordance with section 9 to Esso for Esso 
undertakings shall not release the Federal Government from payment to Esso, or release Esso from 
payment to the Federal Government, of the net amount of the accounts pertaining to Esso 
undertakings— 
 
(i)        for sums payable to and receivable from the Esso branch in Pakistan from and 
to Esso abroad and Esso affiliates (that is Exxon Corporation or any company 
of which Exxon Corporation controls directly or indirectly, fifty per cent or 
more of the voting shares) with respect to products and services; and 
 
(ii)       for sums payable to and receivable from Esso undertakings from and to the 
other  business  and  undertakings  of  Esso  in  Pakistan  with  respect  to  the 
moneys pertaining to or arising out of the one being utilized for the purposes 
of the other. 
 
 18. Removal of doubts.—(1) For the removal of doubts, it is hereby d eclared that the 
provisions of section 4 shall apply to  the extent to which any property appertains to the Esso 
undertakings and to the rights, powers, debts, liabilities and obligations of Esso comprised in Esso 
undertakings referred to in clause (d) of section 2, and to contracts, agreements and oth er 
instruments made by Esso  in Pakistan in relation to Esso undertakings, and to legal p roceedings 
relating to those matters pending in any court or tribunal in Pakistan. 
 
 
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 (2) If any qu estion arises, otherwise than as between the Federal Government or the 
Government company and Esso or between Esso and any other persons, as to whether any property 
in Pakistan appertains, on the commencing day, to Esso undertakings, or whether any leases, 
licences, rights, powers, debts, liabilities or obligations were vested under this Act or whether any 
contract, agreement or other instrument was made by Esso for the purposes of Esso undertakings, or 
whether any do cuments relate to those purposes, the question shall be referred to the Federal 
Government which shall, after giving an opportunity of being heard to the persons interested in the 
matter, decide it in such manner as it may think fit. 
 
 19.  Power to make rules.—The Federal Government may, by notification in the o fficial 
Gazette, make rules for carrying out the purposes of this Act. 
 
 20. Power to remove difficulties.— If any difficulty arises in giving effect to the provisions 
or carrying out the purposes of this Act, the Federal Government may make such orders as it may 
consider necessary to remove the difficulty: 
 
 Provided that no such power shall be exercised after the expiry of one year from the 
commencement of this Act. 
 
 21. [Repeal.]— Omitted by the Federal Laws (Revision and Declaration) Ordinance, 
1981 (XXVII of 1981), s. 3 and Sch., II. 
s 
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         Uploaded on 19.12.2023