Section 378ZQ Companies Act 2013 - Provisions of this Chapter to Override Other Laws
Section 378ZQ of the Companies Act, 2013 forms part of Chapter XXIA, which contains the statutory framework governing Producer Companies. The section gives the provisions of this Chapter overriding effect where they are inconsistent with another provision of the Companies Act, another law for the time being in force, or an instrument having effect under such law.
Section 378ZQ - Provisions of this Chapter to Override Other Laws
The provisions of this Chapter shall have effect notwithstanding anything inconsistent therewith contained in this Act or any other law for the time being in force or any instrument having effect by virtue of any such law; but the provisions of any such Act or law or instrument in so far as the same are not varied by, or are inconsistent with, the provisions of this Chapter shall apply to the Producer Company.
Legislative note: Section 378ZQ was inserted by section 52 of the Companies (Amendment) Act, 2020 (Act 29 of 2020) with effect from 11 February 2021.
Meaning of Section 378ZQ
Section 378ZQ is an overriding provision applicable to Producer Companies. The words "notwithstanding anything inconsistent therewith" operate as a non-obstante clause. Their purpose is to give the provisions contained in Chapter XXIA priority where there is an inconsistency between that Chapter and another applicable provision.
The section does not, however, exclude every other provision of the Companies Act, 2013 or every other law from applying to a Producer Company. Its second part expressly preserves other statutory provisions and instruments to the extent that they are not varied by, and are not inconsistent with, Chapter XXIA.
What is a Producer Company?
Chapter XXIA of the Companies Act, 2013 contains the special statutory framework for Producer Companies. It deals with matters including their objects, formation, registration, membership, voting rights, benefits to members, management, finance, loans, investments, amalgamation, disputes and other matters specifically relating to Producer Companies.
Section 378ZQ therefore needs to be read in the context of the whole of Chapter XXIA rather than as an isolated provision.
Legal Effect of the Non-Obstante Clause
- Chapter XXIA receives overriding effect where an inconsistent provision exists in the Companies Act, 2013.
- The overriding effect also extends to inconsistent provisions of other laws for the time being in force.
- An instrument having effect by virtue of another law is also subject to the overriding rule where it is inconsistent with Chapter XXIA.
- Provisions that are not inconsistent with Chapter XXIA continue to apply to a Producer Company.
- The overriding effect is therefore directed at inconsistency and does not amount to a blanket exclusion of all other applicable laws.
Relationship with Section 378ZR
Section 378ZQ should also be read with Section 378ZR of the Companies Act, 2013. Section 378ZR deals with the application of provisions relating to private companies to Producer Companies, subject to the special provisions contained in Chapter XXIA.
Together, these provisions establish the relationship between the special statutory regime for Producer Companies and the general provisions that would otherwise apply under company law.
Related Producer Company Provisions
Official Legal Resources
For the current consolidated statutory text, amendments and related legal material, readers should verify the provision from the official Government of India sources.
India Code - Government of India
Disclaimer: This page is intended for general legal information and statutory reference. The official text of the Act, applicable rules, notifications, amendments and judicial decisions should be checked before relying on the provision in a particular matter.