RCI Act 6

Section 6 · Management of notified Institution pending appointment of Administrator

(1)

Until an Administrator has been appointed under section 5, the person-in-charge of management of a notified Institution immediately before the date of vesting shall, on and from that date, be in charge of the management of such Institution for and on behalf of the Government and the management of such Institution shall be carried on by such person subject to the provisions of sub-section (2) and such directions, if any, as the Government may issue in this behalf and no other person so long as such management continues shall exercise any power of management in relation to such notified Institution.

(2)

No person referred to in sub-section (1) shall -

(i)

incur any expenditure otherwise than for the purpose of making payments of salaries to employees or commissions to agents or for the purpose of meeting the day-to-day expenditure;

(ii)

transfer or otherwise dispose of any asset or create any charge, hypothecation, lien or other incumbrance thereon;

(iii)

enter into any contract of service or agency, whether expressly or by implication, for purposes connected with the affairs of the notified Institution or vary the terms and conditions of any contract subsisting on the date of vesting.

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