Section 378ZT Companies Act 2013 - Power to Modify Act in Its Application to Producer Companies
Section 378ZT is part of Chapter XXIA of the Companies Act, 2013 dealing with Producer Companies. It authorises the Central Government, subject to parliamentary scrutiny, to modify how provisions of the Companies Act outside Chapter XXIA apply to Producer Companies or specified classes or categories of them.
What Section 378ZT means
The provision creates a limited statutory power to adjust the application of other provisions of the Companies Act to Producer Companies. The power does not extend to provisions contained in Chapter XXIA itself. A modification must be made by notification and may either exclude a provision or apply it with a specified exception or adaptation.
Section 378ZT - Statutory provision
378ZT. Power to modify Act in its application to Producer Companies.
(1) The Central Government may, by notification, direct that any of the provisions of this Act, other than those contained in this Chapter, specified in the notification:
(a) shall not apply to Producer Companies or any class or category thereof; or
(b) shall apply to Producer Companies or any class or category thereof with the exception or adaptation specified in the notification.
(2) Before such a notification is issued, its draft must be laid before each House of Parliament, while in session, for a total period of thirty days. If both Houses disapprove the proposed notification, it cannot be issued. If both Houses agree to a modification, it may be issued only in the form so modified.
Key legal effect of Section 378ZT
The section combines delegated legislative flexibility with parliamentary control. The Central Government can tailor provisions outside Chapter XXIA to the special structure of Producer Companies, but the proposed notification is subject to the thirty-day draft-laying procedure before both Houses of Parliament.
Section 378ZU - Power to make rules
Section 378ZU is the rule-making provision for Chapter XXIA. It provides that the Central Government may make rules for carrying out the purposes of that Chapter. The section therefore supports implementation of the statutory framework governing Producer Companies.
Producer Companies under Chapter XXIA
Chapter XXIA contains the special statutory framework for Producer Companies, including incorporation, membership, management, general meetings, share capital, finance, audit, amalgamation, disputes and miscellaneous matters. Section 378ZT operates at the end of this framework and deals specifically with modification of the application of other provisions of the Companies Act.
Legislative history
Sections 378ZT and 378ZU were inserted by the Companies (Amendment) Act, 2020. The provisions took effect from 11 February 2021. They form part of the Producer Company provisions now contained in Chapter XXIA of the Companies Act, 2013.
Official statutory sources
For the latest consolidated statutory text, notifications and amendments, verify the provision from the Ministry of Corporate Affairs and India Code before relying on it for a filing, compliance decision or legal opinion.