Section 2012

Amendment status not verified — confirm the current text below against the official source.

Article 1498 - Hearing of the appeal - Once the council is constituted the applicant may submit before it a brief oral submission in support of the grounds of the appeal and submits any proof. Whoever is interested that the decision of the family council has to be maintained shall be permitted to reply and produce evidence. If there are many interested parties they shall all be represented by a single attorney. Thereafter the government pleader shall be heard and thereafter the council shall deliberate in conference its decision being transcribed in the record.  Corresponds to Section 115 of the Goa Succession, Special Notaries and Inventory Proceeding Act, 2012. 464 Article 1499 - Appeal from guardianship council - From the deliberation of the guardianship confirming that of the family council no further appeal lies; if it revokes the same an appeal may be filed in the High Court. SECTION VIII VERIFICATION OF PREGNANCY Article 1500 - Procedure for verification of pregnancy - Whenever for any purpose a woman requires verification as to whether she is pregnant or not she shall apply for an examination mentioning therein a physician. The government pleader shall have opportunity with 48 hours to indicate another physician and the judge shall appoint a third one for breaking the tie. After the procedure is carried out the applicant may have her say within three days; the proceedings shall be submitted for the same period to the government pleader who may make his observations and thereafter order shall be passed taking as verified the condition of the applicant according to the replies of the three experts or majority of them if they are precise or conclusive.  Corresponds to Section 117 of the Goa Succession, Special Notaries and Inventory Proceeding Act, 2012. Article 1501 - Intervention of Medico Legal Council - If the condition of the applicant cannot be ascertained by reason of the replies of the physician being doubtful she may apply that the examination be carried out by the Medico Legal Council of the said circumscription. In such case the file shall be forwarded to the council who will examine the applicant and give its opinion. Upon the file being returned with the opinion, judgment shall be pronounced in accordance with the findings of the council.  Corresponds to Section 118 of the Goa Succession, Special Notaries and Inventory Proceeding Act, 2012. SECTION IX PROTECTIVE MEASURES AND PROVISIONAL CURATORSHIP OF THE ASSETS OF THE ABSENTEE Article 1502 - Preventive measures - If on account of absence of the owner or by reason of the inheritance being in ambiance or for other reason there are assets lying abandoned and if it is 465 necessary to take precautionary measures against lost or deterioration they shall be recovered judicially, through enlistment and deposit. These measures may be ordered suo moto or on the applicant of the government pleader or of any interested party. If they are applied for the judge may demand evidence and obtain such information which he may think necessary.  Articles 1502 to 1506 – Protection of absentee are also peculiar to this Code. Article 1503 - Provisional curatorship - Where provisional curatorship is sought in respect of the assets of an absentee person the need for the measure shall be shown and the presumed heirs of the absentee shall be indicated and in their absence the persons who have interest in the preservation of the assets. The absentee shall be notified by notices of 30 days; and after hearing the government pleader when he is not the applicant as well as the partner’s or possessors of the assets, after production of evidence and obtaining such information as may be considered necessary the curatorship shall be granted or not. § Sole paragraph: If there is more than one presumed heir, or in his absence more than one person interested in the preservation of the assets of the absentee the more suitable one from amongst them shall be chosen as the curator.  Corresponds to Section 119 of the Goa Succession, Special Notaries and Inventory Proceeding Act, 2012. Article 1504 - Publication of judgment - The judgment granting curatorship shall be published by public notice affixed on the door of the house of the village administrator in the parish of the last residence of the absentee and by notice in the newspaper, reference to by Art.945. The notice in the announcement shall contain only the name of the absentee and the designation of the curator who has been appointed for him. Article 1505 - Enlistment and security - The curator shall take charge of the assets through enlistment and after furnishing security. The suitability of the security shall be dealt with in the proceedings of curatorship after hearing the government pleader and taking the necessary measures. Article 1506 - Cessation of curatorship - If the absentee returns and the curator refuses to handover the assets the provisions of Arts.1115 shall be observed. 466 § Sole paragraph: As soon as the court comes to know about the absentee and the place where he resides, he shall be officially notified that the assets are in provisional curatorship and the curatorship shall continue until he takes measures.  This is connected with Art. 63(1) of the Civil Code.  Corresponds to Section 121 of the Goa Succession, Special Notaries and Inventory Proceeding Act, 2012. SECTION X JUDICIAL LEASES Article 1507 - Procedure for lease of share - When any co-holder desires that the property be leased in public auction he shall apply that the possessor and other co-holders be notified to within 5 days oppose the application or declare whether they agree to the lease. If there is opposition the matter shall be decided after the necessary steps. In the absence of opposition or when the same is rejected the day for the lease shall be designated if the majority of the interested parties, agree to the request. It is presumed that the co-holders which remains ex- parte give their consent. Article 1508 - Form of lease - The provisions which regulate judicial sale are applicable to lease to the extent to which they are applicable. Article 1509 - Request for improvements - In the 10 days following the sale the possessor may raise in the same proceeding a claim for any improvements made by him from which they increase in rent errors. After notifying the co-holder to file their objections, the terms of an ordinary suit, summary or very summary proceedings shall be followed depending on the valuation.  The procedure in Arts.1507-1509 is for enforcing the right given by Art.2191 of the Civil Code to the co-holders to demand the lease of their share. Article 1510 - Applicability to lease or common assets - What is mentioned in this Section is equally applicable to the lease of common assets, all the co-owners being notified; and any of them may ask for the value of the improvements to which he is entitled.  This is related to Art.2179 of the Civil Code. 467 SECTION XI NOTICE FOR PRE-EMPTION Article 1511 - Procedure for giving notice of pre-emption or preference - If it is desired that anybody should be notified to exercise if he so desires the right of preference there shall be specified in the application the price and the conditions of the agreement and it shall be prayed that the person be notified to declare within 8 days if he or she wants to exercise the rights of preference. After carrying out the procedure the application and the certificate shall be handover by the clerk in the court office. In case the person summoned desires to exercise the rights of preference he shall so state to the head of the court office, who shall draw up the necessary written record pursuant to the certificate, if it is within time. In the case of refusal or doubts on the part of the head of the Court office, the interested party may apply to the judge to have the written record drawn up. After the record is made, the person seeking to exercise preference shall lose his right if within 20 days he does not execute the respective deed or does not apply that the opposite party be notified to receive the price in the office on the day and time designated by the judge, on penalty of being deposited. If afterwards the person exercising right of preference does not deliver or deposit the price he shall similarly lose the right besides being subject to liability for losses and damages. § Sole paragraph: Upon the price being paid or deposited the assets shall be adjudicated in the favour of the person exercising right of preference.  Articles 1511-1518 – Preemption is peculiar law.  The Civil Code recognises the right of preference or pre-emption in the following cases:- o Amongst co-owners, Art.1566 o Owner and holder (lessee) on emphyteusis, Art.1678 & 1704 o Cession with reservation Art.1708 to the possessor or co-holder 2-1-95 o Dominant and servient owner in the case of easement, Art.2309(1). o Owners and lessees of commercial establishments, Art.9 & 11 of Law nos.1662 of 4-9-1924.  Article 1511 applies where an independent notice of preference is sought. However where other judicial proceedings are pending like execution, bankruptcy or insolvency the procedural provisions relating to the same provide for a notice of preference. Article 1512 - Notice where the right of preference is available simultaneously to various persons - If the right of preference is available to various persons simultaneously, all shall be notified to appear in the court on the day and the time designated to effect the licitation among them. 468 The result of the licitation shall be recorded in a written record in which the highest bid of each participant will be recorded. To the participant who has offered the highest bid the provisions of the preceding sections shall apply in the matter of losing the right of preference. § Sole paragraph: If the participant in licitation neither pays nor deposits the price within the time, the right of preference shall devolve upon the interested party who has offered the next highest bid and so on successively, but the time for payment or deposit in the case of each of these interested parties, shall stand reduced to 8 days. As each of the participants in the licitations goes on losing his right the applicant for the notice of preference shall inform the fact by means of a new notification, to the next participant. In the event of devolution of right of preference in terms of this paragraph the participants in the licitation incur no liability if they don’t maintain their beat and do not want to exercise their right.  A case of this nature could arise for example: -when the owner of a land locked property has an easement of passage through various properties. In such case if the owner of the land locked property desires to sell the same he shall offer a right of preference to the various servient owners (Civil Code Art.2309(3)).  It could also happen u/Art.1566 of the Civil Code, where the co-owners are many and have equal rights. Article 1513 - Notification in case of right of preference in various persons successively - If various persons successively have right of preference they may all be notified to declare whether they intend to avail of the said right incase it comes to belong to them or the notification may be made to each one as and when his turn comes as a result of the remuneration or loss of right by the previous interested party. In the first case the person to whom the right of preference belongs in the second place shall have to pay or deposit the price within 20 days after the expiry of the period in which the first one was entitled to exercise his right of preference and so on successively except if the 20 days end before the next preferring party is notified, or before 20 days have expired form the notice. Because in such cases the person exercising right of preference may always effect the payment or the deposit in the 20 days following the notice to him. But if any of the interested parties declares that he wants to exercise preference and thereafter fails to effect the payment and deposit within time this fact shall be brought to the knowledge of the next person entitled to preference by means of a fresh notice and the said next preferring party shall pay the price within 8 days.  In the case of Art.1512 the right is equal and simultaneous but in case of Art.1513, the right of preference arises in a hierarchal manner. All are not in a same position, the right of some of the parties arises before that of others. An example 469 of this is Art.2195(1) of the Civil Code where in , if a co-holder wants to sell the right of preference in first place goes to the possessor and thereafter to the other co-holder. Similarly u/Art.1566 of the Civil Code the person having the bigger share has the first right of preference and the one with the next share has the second one and so on. Article 1514 - Notification in case of assets belonging to the inheritance - If the assets belong to the inheritance the administrator shall be notified except if they have already been auctioned or have been included in any of the shares in which case only the respective party shall be notified. The administrator as soon as he is notified shall apply for the conference parties, to decide whether the estate should exercise the right of preference. In case there are legally disabled persons who are not represented by their parents, the family council shall also participate in the conference. If the estate does not exercise right of preference, any of the heirs exercise the right within the same time, independently of any other notice. § Sole paragraph: In case more than one heir comes forward to exercise his right of preference, the priority shall be determined by the greatest size of the shares; in case the payment or deposit is not made within time the provisions in the last part of the preceding article shall be applicable. If the shares are equal, auction shall follow in terms of Art.1512.  This article deals with a case in which the right of preference vests on an undivided estate or inheritance. Suppose an owner of a property on emphyteusis wants to sell it, he has to offer the right of preference to the partner in emphyteusis, but the partner is dead and his estate is undivided or suppose the owner of a land locked property wants to sell it but the servient heritage is part of an undivided heritance or even one co-owner is dead and his share is part of an inheritance. All these are cases covered by Art.1514.  In the conference of interested parties, mentioned in this section it is the interested parties and not the administrator who will decide whether the estate will exercise right of preference or not. If the conference does not take place or does not take a decision it is taken that the estate is not exercising its right of preference and the heirs will be free to exercise their right individually. Article 1515 - Notice in case of assets belonging to spouses - If the assets belong in common to the spouses the husband shall be notified; but incase he does not desire to exercise his right of preference the same may be exercised by the wife, if there is pending or decided a suit for divorce, separation of persons or assets or only for separation of assets in which case she shall be notified. Article 1516 - Notice in case of assets being joint - If the assets are in joint ownership of various persons all the co-owners shall be notified. If more than one comes forward to exercise the right of preference the provisions of Art.1514 sole paragraph shall be observed. 470 Article 1517 - Disposal of records - If none of those notified comes forward to exercise right of preference the application and certificate of steps taken shall be handed over to the applicant. In the contrary case the papers shall be filed in the court office, for the interested parties to be able to inspect the same and obtain the certificates which they may need. Documents attached to the application are excepted and shall be handed over to the applicant as soon as the proceeding of notification are over without keeping any extract. Article 1518 - Costs - Costs shall be paid by the applicant except in the case of auction, in which case the cost shall be paid by the bidder who offers the highest bid. If the notified person having made the declaration referred to in Art.1511, fails to execute the deed or pay or deposit the price within the time he shall be bound to pay all the costs. When various interested parties commit this default all the costs shall be paid by the one who defaulted first. SECTION XII ESTATE IN ABEYANCE Article 1519 - Procedure to ascertain whether the heirs accept or renounce the inheritance - Upon an inheritance being open, if the heirs being known do not express or tacitly accept it, the government pleader, any interested party or creditor may apply to the court of the place where the inheritance has opened. To notify within 30 days to declare whether they accept or repudiate the inheritance. Any declaration shall be drawn into a written record, this being done in the case of repudiation in the appropriate book. In the absence of declaration the inheritance shall be taken to have been accepted.  Articles 1519-1522 – Estate in Abeyance  This corresponds to Art.201 of the Civil Code. Article 1520 - Notice to heirs next after the persons relinquishing - If those notified repudiate the inheritance, the known heirs next after them shall be successively notified until there is no one who has a preferential right of succession over the state.  Vide Art.1969 of the Civil Code. If there are no other heirs the state gets the right vide Art.1969(6). Article 1521 - Acceptance of inheritance by the creditors for payment of debts - If the creditors of the heir who has repudiated the inheritance desire to accept the inheritance inorder to be paid form the assets thereof in terms of Art.2040 of the Civil Code, they shall so declare within 471 a period of 20 days counting from the date of which they become aware of the repudiation. Upon this declaration being made the creditor shall make out by proper means the claim for their credit against the person who has repudiated and against those to whom the assets have passed on as result of the repudiation. After obtaining favourable judgment, they may execute the same against the estate. Article 1522 - Appointment for curator for the inheritance - When the inheritance held in ambiance requires a curator, the same shall be appointed suo moto or on the application of any legatee, creditor or interested party in which there is someone who can represent the inheritance in the court. The powers of the curator shall cease as soon as the inheritance is accepted or declared vacant. SECTION XIII EXECUTORSHIP Article 1523 – Appointment of Executor - Where the judge is empowered to appoint an executor, for the will in terms of Arts.1839 and 1893 of the Civil Code. Any interested party may apply for the same. After identifying the other interested parties and specifying if he so desires the one who in his view is in the best conditions to discharge the role. After hearing the other interested party and their representatives the appointment shall be made.  Articles 1523-1530 – Executorship o Are all part of Succession Law. Article 1524 - Exemption of the executor - The executor who desires to resign after having accepted the charge should seek exemption after giving a justifiable reason. A legitimate reason for exercising is a subsequent impossibility on account of sickness, prolonged absence or incompatibly with the exercise of any public office. The exemption shall be granted or refused after hearing the interested parties and collecting the required evidence and information.  This relates to Art.1891 of the Civil Code. Before accepting the post the executor may excuse himself, but at that point it is not for the judge to permit the same. This situation is foreseen by Art.1590 of the Civil Code.  The judge comes into the picture only when the executor desires to quit after he is appointed. 472 Article 1525 - Removal of the Executor - The interested party who desires the removal of the executor shall state the facts which justify his application and shall furnish the evidence along with. The opposite party shall be notified to reply and submit evidence. After the indispensable evidence and hearing the other parties if necessary the matter shall be decided.  This provision is for implementing Article 1909 of the Civil Code. Article 1526 - Procedure for inspection of the Will - An interested party who desires to inspect the Will, or obtain a copy of the same may request that the executor produces the same in the court for this purpose. The executor shall be notified to produce the will within specified time; If the notified person does not do so nor proves good reason he shall be removed from the executorship.  This regulates the exercise of the right given to interested parties by Art.1899(4) of the Civil Code. Article 1527 - Appendage to inventory - The applications mentioned in the preceding article shall be annexed to the inventories when there is one. SECTION XIV SALE OF ASSETS BY THE EXECUTOR Article 1528 - Petition of sale of assets by the executor - If the executor desires to carry out the sale of assets in terms of Art.1898 of the Civil Code, he shall present the account of the expenses made or to be made and request that the heirs be notified to furnish within 20 days the necessary means, or dispute the expenses or designate the assets which will be sold. § Sole paragraph: This prayer shall be annexed to the inventory if there is one.  This provision is for exercising the right granted u/Art.1898 of the Civil Code, where by the executor can sell assets to meet the expenses of the executorship when in the inheritance there is no money and the heirs do not or cannot advance the same. Article 1529 - Steps to be followed in case of opposition - If the heirs dispute the expenses this shall be resolved after hearing the executor or obtaining the classifications and the evidence which may be thought necessary. But at the request of the executor it may be ordered that the 473 opponents deposit immediately the amount indispensable for satisfaction of the urgent debts authorized by law on pain of the opposition being rendered ineffective. After the amount is deposited the executor may withdraw the same before the final order if he furnishes security. Article 1530 - Procedure in absence of opposition - If the heir neither oppose the expenses nor specify the assets those indicated by the executor shall be sold. If there is no agreement amongst the heir as to the specifying of assets or if the income from the sale is insufficient, other assets which may be necessary shall be specified in the order laid down in Art.2151 of the Civil Code. § Sole paragraph: The sale shall be done in the manner indicated by the judge. SECTION XV EXERCISE OF THE RIGHT OF THE SHAREHOLDERS OF THE COMPANY SUB-SECTION I JUDICIAL INQUIRIES Article 1531 - Procedure for ordering inquiry - The share holders who propose to initiate investigation through Court of the books and documents, accounts and papers of the company, whenever the law permits, shall set out the grounds and purpose of the investigation. Summons shall be issued to the Administrator or management of the company to give their say. In absence of reply, investigation shall be ordered; and also in case of reply, if it is found that there is a ground to proceed with an investigation.  Articles 1531-1554 – Right of shareholders of companies are subject matter of the Companies Act.  Note: The word “Society” means “Company”. Portuguese Commercial Code Article 149; law dated 11.04.1901, article 46 para 5. Department’s clarification - As regards the extension of the Companies Act to Goa, Daman and Diu, the following information is given in the Annual Report submitted to Parliament under section 638: “It was decided in consultation with the Goa Administration that For Quota Societies formed under the Portuguese Laws should be given an opportunity to be incorporated as Companies under the Companies Act. Upon such incorporation such a society should be deemed to be a company under the said Act with effect from the date of its formation under the Portuguese Commercial Code, as if the Companies Act had been in force on the date of its formation under the Portuguese Commercial Code, as if the Companies Act had been in force on the date of its formation under that Code. To achieve this purpose, a Notification was issued 474 under section 620-B of the Companies Act (as extended to Goa) amending section 34 of the Companies Act in its application to Goa, Daman and Diu. The said Notification gave the benefit of continuity of existence to for Quota Societies, provided they registered themselves as companies under the Companies Act on or before the 18 th March, 1965. The time limit was later extended to the 30th June, 1965, at the instance of the interests concerned. By another Notification, such Par Quota Societies as registered themselves as companies within the aforesaid period were given exemption from the initial payment of registration fee, and fees in respect of filing the documents required to be filed at the time of registration. Till 30th June 1965, 21 Por Quotas Societies have been registered as private companies." (Ninth Annual Report, dated 5th August, 1965, page 3). Article 1532 – Procedure in inquiry - Whenever investigation is ordered, the court shall fix the points for determination which the investigation should include, after hearing the petitioners and the management of the company, if the same has not remained ex-parte. Also experts shall be appointed to take up the investigation following whatever has been provided in the matter of examination. Article 1533 – Preventive measures - As a consequence of the investigation the court may, if any, application made order interim measures which may be necessary to secure rights of shareholders and of creditors. Article 1534 – Right to apply for inquiry at the stage inquiry in extra judicial liquidation - The investigation may be ordered at the stage of liquidation of the company outside the court. Article 1535 – Regime of costs - As to the costs, the following shall be observed: a) If the result of the investigation does not confirm the suspicions of the applicants, they will be liable to pay the costs; and they also will be liable to pay the expenses which to be incurred with the publication of report and of the conclusions of the experts or only conclusion alone, in the event the board administrator and management of the company demands such publication; b) As a consequence of the investigation, if any, temporary measures have been issued meant to secure the share holders and creditors, the liability to the cost is cast upon the board administrator and management of the company; c) If as a consequence of the investigation any suit has been instituted whoever has been directed to pay the costs of the suit shall pay also the costs of the investigation, which shall be provisionally awarded to the applicant, except in the case foreseen in the previous clause. 475 SUB-SECTION II REMOVAL OF THE ADMINISTRATOR Article 1536 – Only Court to withdraw powers of administrator - Whenever the management of the company is entrusted to one shareholder alone as per the special clause in the contract which cannot be revoked without legitimate cause, in accordance with sole paragraph of article 1266 of the Civil Code and of sole paragraph of article 155 of the Commercial Code, the administrator shall not be deprived of his powers, until the court has ordered that there is a ground for his removal. Article 1537 – Procedure to withdraw powers - Any shareholder may seek removal, pleading the facts which justify the removal and presenting immediately the proofs. The delinquent shall be summoned to reply and lead his evidence if any. After evidence is led and all the clarifications having been obtained, the question shall be decided. SUB-SECTION III CONVENING THE MEETING AND ASSEMBLY OF THE SHARE HOLDERS Article 1538 – Procedure for convening of general body or meetings of members - Whenever, in any company, there has not been convened the general ordinary assembly or extraordinary or the meeting of the shareholders, or when by any reason there is a obstacle to hold such meetings or its functioning, the applicant may apply to the court either to convene the meeting or authorize the applicant to do so. As soon as the document of the constitution of the company is produced, the court shall resolve within 5 days, after hearing the management of the company, when it found convenient and undertaking the inquiry which is found necessary. If the application is granted, the court shall designate, among the share holders the person who shall act as a president and direct the steps which may be indispensable for holding the meeting or assembly. The court may appoint also as a president a Government servant of higher category if there is strong reason not to make selection amongst the shareholders.  Commercial Code article 180, sole paragraph; law no. 11.4. 1901 article 37. Paragraph 2 and 3. 476 SUB-SECTION IV REDUCTION OF CAPITAL OF THE COMPANY Article 1539 –Requirements of application - The commercial company which proposes to reduce its capital, shall present to the court with the project of the reduction provisionally registered, or document which proves the agreement of all the creditors, or the inventory and balance sheet from which it is found that the balance of the effective capital exceeds 1/3"1 of the debts of the company. If the court holds existence of such requirement proved, shall direct that resolution of the company be published.  Commercial Code article 116 sole paragraph. Article 1540 – Objection - Within 30 days following the publication, any member, share holder or dissenting creditor may oppose the reduction, justifying his locus standi and by way of paragraph wise objections raise grounds of his objections and apply that the resolution be stayed. Article 1541 – Decision - After all the objections are brought in to the file, the court shall ascertain if the locus standi of the opponent is tenable and shall reject the objections raised by opponents who have no locus standi. If any objection is to be considered, the deliberation shall be stayed and notified to the management of the company, to reply within 10 days, and thereafter the procedure of summary proceedings shall be followed subsequent to the written statement. § Sole Paragraph: The registry shall certify that the deliberation is suspended and shall remit the certified copy to the conservator in order that he makes the endorsement of the suspension at the margin of provisional registration of the deliberation. SUB-SECTION V ENDORSEMENT, CONVERSION AND DEPOSIT OF THE SHARES AND OBLIGATIONS Article 1542 – Right to apply for endorsement on shares or liabilities - If the management of the company fails to carry out within 10 days the endorsement of the shares and liabilities which 477 have been produced for this purpose or does not issue, within the same period, a precautionary measure with the declaration, that the documents are in condition of being endorsed, the interested party may apply to the court of the registered office of the company for a direction to make the endorsement. § Sole paragraph: The precautionary measure referred to in this article shall have same value as the making of an endorsement. Article 1543 – Initial petition and subsequent steps - The share holder or bond holder shall formulate the prayers with grounds and apply that the management of the company be summoned to contest within 5 days, failing which direction will be issued to carry out the endorsement. If the company contests, the applicant may reply within next 3 days. No other evidence other than by way of document shall be admitted and the judgment will be passed within a period of 5 days after the reply. Article 1544 - Execution – When endorsement has been finally directed, the interested party may apply for service on the management of the company to carry out the decision within 3 days. Failing compliance, the judicial decision shall be noted in the title deeds, which shall for all purposes have same value as an endorsement and the administrator shall be liable to penalty corresponding to the offence of aggravated disobedience, without prejudice to payment of the damages caused. Those who refuse to recognize the judicial decision shall incur in the same liability. § 1: The effects of the endorsement directed by the court, retroacts to the date on which the title deeds were presented to the management of the company; § 2: The title deeds and the documents shall be delivered to the interested party as soon as the file is closed without keeping on record any note nor even integral certified full text of the copy of the order. Article 1545 – Proceedings during vacations - Such proceedings may be taken up during the vacation also. Article 1546 – Conversion of nominative documents into bearer documents - What is provided in the previous articles is applicable in case the share holders or bond holders have the 478 right to demand conversion of a nominating credit instrument into bearer title if the management of the company refuses to make such conversion. After the conversion is ordered, if the management refuses to comply with the decision endorsement shall be made on the credit instrument that they are bearer title and the administrators shall incur in the liability imposed on them, as provided in article 1544. Article 1547 – Deposit of shares or obligations in the bank - The deposit of the shares or bearer instruments, necessary in order to take part in general body, may be made in the establishment where the judicial deposits are made when the management of the company refuses to do so. Article 1548 – Mode of depositing - The deposit shall be done in the basis of a written declaration of the interested party, or some other in his name, in which there is an identification of the company and there is an indication of the purpose of the deposit. The declaration shall be presented in duplicate, and one of the copies of the same shall remain in the custody of the depositor, with the noting of deposit having been made in the said document. Article 1549 – Legal effect of deposit – responsibility to admit the same - The chairman of the general body shall be bound to admit at the meeting the share holders and bond holders who produce the document of the deposit, referred to in the previous article, once they demonstrate through the said documents that the credit instrument has been deposited within legal period and the depositor possesses the number of the title deeds necessary to take part in the assembly. If he does not do so, he shall incur the penalty prescribed in the article 1544. SUB-SECTION VI EXAMINATION OF THE BOOKS AND DOCUMENTS Article 1550 – Petition and summons for examination of books of accounts and documents - In the event a share holder has been refused the exercise of the right recognized by clause no. 3 of article 119 of the Commercial Code, the interested party may apply to the court to eliminate the refusal, indicating as clearly as possible the facts which are to be inquired and part of the writing 479 in the books or documents which are required to be examined. The management of the company shall be summoned to contest within period of 5 days, failing which the examination will be permitted immediately. Article 1551 – Subsequent steps - books of accounts and documents - In the case of the contest the applicant may reply. After the evidence is led and necessary steps have been carried out, the court will decide the question. If the examination is admitted, the books and document whose inspection is demanded by the applicant shall be made available to the applicants and also time when the same may be examined and time when the same may be examined. Article 1552 - Execution - If the management of the company does not comply with the decision despite the notice thereof, the share holder shall get testified the factum of the resistance through an officer of the court and two witnesses and necessary record will be made. Once the factum of refusal is established with the signature of the witnesses, the judge shall order the seizure of the respective books and documents and which will remain in the custody of the court for the examination of the applicant and the administrators shall incur the liability prescribed in article 1544. SUB-SECTION VII INSTALLATION OF THE BOARD OF THE COMPANY Article 1553 – Procedure for appointment of office bearers - If one person duly elected or appointed for exercise of any office of the company is facing obstacles which obstruct him to assume the charge of the office, he may apply that he may be installed by the court, and justify immediately, by any evidence, his right to hold the office. Whoever has given cause for judicial intervention shall be summoned to, within period of 5 days, contest the prayer, failing which the application will be immediately granted. If there is a contest, the applicant may rejoin and thereafter after taking the steps and obtaining the necessary information, the decision will be passed. Article 1554 - Execution - If the installation is directed by the court, the applicant may pray that he may be installed in the office through the court. 480 The installation shall be done, either by the judge, if it is applied for, or by the registry of the court. Thereafter respective report shall be made in the head office of the company or at the place where the office is to be exercised and in such occasion the applicant shall be given the keys, papers, amounts and any other objects which must be retained in his possession, and for which all the steps shall be taken including breaking, which becomes necessary. At the time of the investiture in the office, if it is possible or subsequently notices shall be issued against the persons, the action was sought to abstain from causing any objections which may constitute obstacle to exercise the office on the part of the officer who was to be installed, on the pain of offence of disobedience. SECTION XVI MEASURES CONNECTED WITH SHIPS OR THEIR CARGO Article 1555 – Expert inspection of ship, to ascertain its navigability - When it is intended to hold arbitrament of a ship in order to ascertain its status of navigability, in accordance with article 505 of the Commercial Code, the captain may apply to the court of the jurisdiction where the port in which the ship is surfaced lies, that experts be appointed and arbitrament to be carried out. The judge after examining the inventory on the board of the ship shall appoint, depending upon the circumstances, the experts that are found necessary and fit for the appreciation of the different parts of the ship shall fix the period for the inspection and examination. The experts shall carry out the inspection without intervention of the court or maritime authority of the port and deliver within the time the result of its arbitrament. The period may be extended, if the extension is absolutely necessary.  Articles 1555-1560 – Ships and Cargo is dealt by specific legislation. Article 1556 – Other expert inspection of ship or its cargo – The same steps shall be observed in all the cases in which arbitrament is sought of the ship or its cargo in the exercise of voluntary jurisdiction. If the inspection is urgent, the maritime authority instead of approaching the judge for appointment of the expert can carry out the inspection by themselves. 481 Article 1557 – Notice incase of a foreign ship – If it is a foreign ship and in the port there is a consular agent of the respective state, communication will be sent to such agent giving him knowledge of the procedural step required. The consular agent is permitted to apply for any procedural steps in the protection of the respective nationals. Article 1558 – Sale of ship for innavigability - When the ship cannot be repaired or when the repair is not justified because it is not economic, the captain of the ship may apply that it may be declared that the ship is not navigable, for the purposes of article 513 of the Commercial Code. The judge shall appoint the necessary expert or experts and shall fix a period for carrying out the inspection, by issuing notice to the interested parties residents within the judicial division to remain present for such inspection, if they so desire. If the experts conclude that the ship is absolutely not navigable or relatively not navigable they shall so declare and sale of the ship shall be ordered with its belongings. § Sole Paragraph: What is provided in the previous article is applicable to this article. Article 1559 – Judicial permission for acts to be done by the captain - When the captain of the ship requires judicial permission to do certain acts, he shall seek the permission to the court of the port where the ship has surfaced. The permission shall be granted or denied as per the circumstances, after taking necessary steps and obtaining the information which is deemed necessary.  Commercial Code article 551 and 660. Article 1560 – Appointment of consignee - If the captain of the ship pray that a consignee be appointed as in the cases of article 559 and 560 of the Commercial Code and explain and justify summarily the ground for which the appointment is sought. If the prayer found justified the judge shall appoint consignee and permit him the sale of the goods by any of the methods indicated in article 883. 482 BOOK IV ARBITRAL TRIBUNAL (Articles 1561 – 1580) 483 BOOK IV ARBITRAL TRIBUNAL TITLE I VOLUNTARY ARBITRAL TRIBUNAL CHAPTER I ARBITRATION AGREEMENT AND ARBITRATION CLAUSE Article 1561 – Permissibility of arbitration agreement - It is lawful to enter into an agreement whereby a particular dispute, even though pending before the Court, be decided by one or more arbitrators.  Articles 1561-1580 – Agreement and arbitration clause - Corresponding provisions in C.P.C. 1908: - o Settlement of disputes outside the Court - S.89  Covered by Arbitration and Conciliation Act, 1996 Article 1562 – Parties to arbitration agreement should be competent to enter into contract - The guardians of the persons under disability and representatives of the collective bodies may enter into agreement on the subject which comes within their powers or after getting sanction from persons competent to grant it. It shall not be lawful to enter into agreement in respect of juridical relations in respect of which parties are forbidden to contract. Article 1563 – Requirements of agreement - The-arbitration agreement shall be made in writing and signed by the parties and shall specify, on pain of nullity, with all the precision: