Download Apply for Agreement & Indemnity Bond Documentation for Private/ Public Limited Firm for Transport Subsidy Scheme

AGREEMENT This Agreement is executed on this the ________ day of ___________ 2006 at ______________ by and between: M/S _________________________________, a Private/Public Limited Company established, incorporated and registered under the Companies Act of 1956, and having its registered office at ________________________________________ through Mr. _______________________ son of Mr. _________________________ resident of __________________________________, the Managing Director of the said Company, who has been empowered and authorised to execute this Agreement for and on behalf of the Company, and create charge upon the assets of the Company, pursuant to the Board Resolution passed by the Board of the Directors of the Company in this behalf in its meeting held on ___________________, the copy whereof is being annexed herewith, and herein­after to be called " the First Party " ( Which expression shall always include its successors, executors, administrators, representatives, and the assigns where­ever the context or meaning shall so require or permit ) of the One part;      AND The J&K State through the Directorate of Industries and Commerce Department, Srinagar through its General Manager, and hereinafter to be called " the Second Party " (which expression shall always include his successors, executors, administrators, representatives and assigns where­ever the context or meaning shall so required or permit ) of the Other Part. Whereas the above named First Party is engaged in carrying on the business of manufacturing of ___________________________________________ at _________________________________________, under the name and style of M/S ______________________________. The said unit of the First Party is duly registered with the Directorate of the Industries and Commerce Department for the sake of the Incentives under the Registration No:  __________________ Whereas the First Party approached the Government/ Directorate of Industries & Commerce Department (Second Party) for grant of 90 percent Transport Subsidy in his favour under Transport Subsidy Scheme, 2002 for the quarters ___________________________________________________, to which the First Party has become entitled to claim and receive and details whereof are given in schedule forming annexure 'A' to this agreement.  Whereas the Second Party vide its Order No: ________________________ dated ___________ (the copy whereof is enclosed herewith as Annexure­B) sanctioned an amount of Rs. ____________ (Rupees ______________________ only ) as the Transport Subsidy under Central Transport Subsidy Scheme, 2002, in favour of the above named First Party which shall be disbursed in favour of the First Party through J&K Development Finance Corporation Limited, Srinagar/Jammu, hereinafter to be referred to as " the J&K DFC ", subject to the terms, covenants and conditions governing the said incentive under the Central Transport Subsidy Scheme, 2002.  Whereas the First Party has consented and agreed to receive the said incentive amount in the form of the Transport Subsidy on the terms and conditions as stipulated in this behalf under the Central Transport Scheme, 2002, and as such, to evidence the said fact the parties are executing this agreement inter­se which witnesses as under: 1. That if the Government/Second Party at any time hereinafter is satisfied that the subsidy granted to the First Party has been claimed and obtained by him by mis­representation as to the essential fact and/or by concealing the facts and/or by furnishing false information or if the concerned unit goes out of production or if it subsequently comes to the notice that the unit was not qualifying and/or entitled to claim and receive the subsidy under reference, the First Party shall be bound and obliged to refund the above mentioned amount of the subsidy to the Second Party together with the interest at the prevalent bank rates along­with all the costs, expenses, charges etc. without any demur. 2. That the First Party after receiving the part or whole of the subsidy amount granted in his favour as mentioned herein shall not change the location of the whole or any part of his said industrial unit or effect any substantial part of construction or dispose off any substantial part of its total fixed capital investment or effect any change in Constitution of the Company within the period of five Years after going into production or the date of the disbursement of the subsidy under reference, whichever is earlier, without prior written request made by him in this behalf and approved by the Second Party above named. 3. In consideration of the above premises the First Party binds himself and undertakes and agrees to keep the Second Party safe and indemnified against all the losses, claims, damages, proceedings, costs, charges and the expenses which may be sustained, suffered or incurred, directly or in­directly, as a consequence of paying the subsidy amount under reference to the First Party and the First Party shall pay to the Second Party on demand the said amount of the subsidy released or disbursed / to be released or disbursed along­with the interest thereon and also all losses, damages, claims, costs and charges, whatsoever, without any demur. 4. That after receiving the grant of subsidy under reference the First Party shall be bound to submit annual progress report to the Second Party about its working for a period of 5 Years after going into production or the date of disbursement of the subsidy under reference, whichever is earlier. 5. That the First Party shall be bound and required to furnish any other document/information in connection with availing of the subsidy under reference as and when shall be asked by the Second Party/J&K DFC to furnish to him. 6. That the amount of the subsidy under reference of these presents shall be refunded by the First Party to the Second Party at any time along­with the interest thereon as and when demanded by the Second Party from him on account of breach of any of the terms, conditions or covenants of this agreement or if the same is not reimbursed by Government of India. 7. That the First Party do hereby agree and bind itself that this agreement shall remain in full force and effect and binding and fully enforceable against the First Party and shall be by way of a charge upon its all assets and the First Party do hereby further agree and undertake that the First Party shall be liable to indemnify Second Party for all demands, damages, costs, losses etc. which the Second Party may incur and sustain; and the said amount shall become payable and/or recoverable from the First Party within the statutory period of limitation prescribed under the relevant statute but, however, the time for the same shall be reckoned from the date of the acquisition of the knowledge by the Second Party about the disentitlement/ disqualification of the First Party to claim and receive the subsidy amount on any account as provided herein­above and/or from the date the subsidy amount is refused to be reimbursed by the Government of India to the Second Party. 8. That the subsidy under reference as granted to the First Party by the Second Party shall always be governed by the terms and conditions as laid down in the Central Transport Subsidy Scheme, 2002.  9. That if any doubt, dispute, question or difference shall at anytime hereinafter arises, concerning the construction, effect or meaning of these presents or any matter herein contained or other respective rights and the liabilities hereunder, every such doubt, dispute, question, difference shall be referred for Arbitration toDir.I&C J&K Govt. under the J&K Arbitration and Conciliation Act, 1996. The decision of the said Arbitrator thereon shall be conclusive, final and binding on the parties. 10. That It is further agreed, consented and declared in unequivocal terms by the First Party that all the legal proceedings arising in connection with the Subsidy under reference and in relation to the present agreement will be always subject to the Jurisdiction of the local Courts/ High Court of the State Jammu and Kashmir alone. IN WITNESS WHEREOF M/S ___________________________________ has set and subscribed its hands to this Agreement through its authorised Signatory, Managing Director of the Company namely Mr. _________________ son of Mr. ______________________ resident of _____________________________, for and on behalf the First Party, pursuant to the Board Resolution dated ________________, in acceptance of its contents and the execution thereof out of his free will, consent and volition without any sort of force, coercion, pressure or any sort of un­due influence or mis­representation in favour of the above named Second Party who has put his signatures also after accepting its contents and execution thereof on the date and place herein­above written.  EXECUTANTS 1 _______________________________    2.     ________________________________  (  Mr. __________________ )   ( Mr. _____________________ )            Managing Director                          Gen. Manager DIC, ____________    M/S ________________________                   Industries & Commerce Deptt.   For & on behalf of:   For & on behalf of:    M/S ________________________                           Governor of   J&K State.  ( FIRST PARTY )                                       ( SECOND PARTY )  WITNESSES: Sig: _________________________ Sig: ________________________ Name: ______________________                Name:  ________________________ S/O : ______________________      S/O : ________________________ R/O : ______________________      R/O : ________________________ The Common Seal of the Company has been affixed to this Agreement by Mr ___________________________ son of _________________________ resident of _____________________________, the Managing Director of the Company, for and on its behalf, in presence of Mr. ___________________________ son of _________________________ resident of _______________________________, the other Director of the said Company, pursuant to Board Resolution dated _______________ in presence of below named witnesses. COMMON  SEAL OF THE COMPANY SIGNED BY THE ABOVE NAMED: _________________________________ ____________________________     ( Mr. _____________________  )               ( Mr. ____________________)          Managing Director   of the                                     Director of the               Company                                                       Company WITNESSES: Sig: _________________________ Sig: ________________________ Name: ______________________                Name:  ________________________ S/O : ______________________      S/O : ________________________ R/O : ______________________      R/O : ________________________ Signed, sealed and Delivered by the within named M/S ___________________ through Mr. ____________________ son of __________________________ resident of ________________________________, the Managing Director of the Company, for and on its behalf, pursuant to Board Resolution passed by the Board of Directors of the Company in that behalf in its meeting held on _____________ in presence of : Witnesses: Sig:____________________________ __________________________ Name: _________________________                       ( Mr. ________________ ) S/O : _________________________                         Managing Director R/O :  _________________________     For  and  on behalf  of:                                                          M/S _____________________                                                                 Pursuant to Board Resolution, Sig: ____________________________      Dated ______________ Name: __________________________  S/O : _________________________ ( FIRST  PARTY )  R/O:  _________________________ ANNEXURE 'A' SCHEDULE TO THIS AGREEMENT AS MENTIONED ABOVE QUARTERWISE DETAILS OF RAW MATERIAL/ FINISHED GOODS (QTY / VALUE ) RELEVANT QUARTER OPENING BALANCE QUANTITY IMPORTED TOTAL QUANTITY QUANTITY CONSUMED QUANTITY DELETED ( 1)  ( 2)  ( 3)  ( 4)  ( 5)  ( 6)  QUANTITY QUALIFYING FREIGHT PAID APP. RATE ACTUAL FREIGHT FREIGHT REKONABLE 90 % SUBSIDY ( 7)  ( 8)  ( 9)  ( 10)  ( 11)  ( 12)  INDEMNITY BOND BY THE PRESENT INDEMNITY BOND executed on this the ________ day of ___________ 2006 at ______________ by: M/S _________________________________, a Private/Public Limited Company established, incorporated and registered under the Companies Act of 1956, and having its registered office at ________________________________________ through Mr. _______________________ son of Mr. _________________________ resident of _____________________________________, Managing Director of the said Company, who has been empowered and authorised to execute this Indemnity Bond for and on behalf of the Company and create charge upon the assets of the Company pursuant to the Board Resolution passed by the Board of the Directors of the Company in this behalf in its meeting held on ___________________, the copy whereof is being annexed herewith, and herein­after to be called " the Obligor­Company " ( Which expression shall always include its successors, executors, administrators, representatives, and the assigns where­ever the context or meaning shall so require or permit ) of the One part;  IN FAVOUR OF: The J&K State through the Directorate of Industries and Commerce Department, Srinagar through its General Manager, and hereinafter to be called " the Obligee­Department " ( which expression shall include his successors, executors, administrators, representatives and assigns where­ever the context or the meaning shall so required or permit ) of the Other Part. Whereas the Obligor­Company is engaged in carrying on the business of manufacturing of _________________________________ at _________________, under the name and style of M/S __________________________________. The said unit of the Obligor­Company is duly registered with the Directorate of the Industries and Commerce Department for the sake of the Incentives under the Registration No:  _______________________________. Whereas the Obligor­Company approached Government/Directorate of Industries and Commerce Department (Obligee­Department) for grant of 90 % Central Transport Subsidy in favour of Obligor­Company under the Central Transport Subsidy Scheme,  2002,  for the quarters _______________________, to which Obligor­Company has become entitled to claim and receive.  Whereas the Obligee­Department vide its Order No: ________________ dated ___________ (the copy whereof is enclosed herewith as Annexure­A) sanctioned an amount of Rs. ____________ (Rupees ______________________ only ) as the Central Transport Subsidy under Central Transport Subsidy Scheme, 2002, in favour of the above named Obligor­Company which shall be disbursed in favour of the Obligor­Company through J&K Development Finance Corporation Limited, Srinagar/Jammu, hereinafter to be referred to as " the J&K DFC " subject to furnishing of an Indemnity Bond to the intent and purpose and subject to the terms, covenants and the conditions governing the said Incentive as stipulated in this behalf under the Central Transport Subsidy Scheme, 2002 .With the above said objective the Obligor Company indemnifies the State Govt./ Obligee Deptt. as under :­ 1. That if the Government/Obligee­Department at any time hereinafter is satisfied that the subsidy granted to the Obligor­Company has been claimed and obtained by him by mis­representation as to any essential fact and/or by concealing the facts and/or by furnishing false information or if the concerned industrial unit goes out of production within 5 years after having availed the subsidy or if it subsequently comes to the notice that the unit was not qualifying and/or entitled to claim and receive the subsidy under reference, the Obligor­Company shall be bound and obliged to refund the above mentioned amount of the subsidy to the Obligee­Department together with the interest at the prevalent bank rates along­with all the costs, expenses, charges etc. without any demur. 2. In consideration of the above premises the Obligor­Company binds it and undertakes and agrees to keep the Obligee­Department safe and indemnified against all losses, claims, damages, costs, charges and the expenses which may be sustained, suffered or incurred, directly or in­directly, as the consequence of paying the subsidy amount under reference to the Obligor­Company and the Obligor­Company shall pay to the Obligee­Department on demand the said amount of the subsidy released or disbursed / to be released or disbursed and all other losses, damages, claims, costs and charges, what­so­ever, to the Obligee­Department as incurred by it, without any demur. 3. That the Obligor­Company do hereby agree and bind itself that this bond shall remain in full force and effect and binding and enforceable against it till its realisation and satisfaction and shall be by way of a charge upon its all assets and Obligor­Company do hereby agree and undertake that the Obligor­Company shall be liable to indemnify Obligee­Department for all demands, damages, costs, losses etc. which the Obligee­Department may incur and the said amount shall become payable and/or recoverable from the Obligor­Company within statutory period of limitation prescribed under the relevant statute but, however, the time for the same shall be reckoned from the date of the acquisition of the knowledge by the Obligee­Department about disentitlement/disqualification of the Obligor­Company to claim and receive the subsidy amount under reference on any account as provided herein­above. 4. That it is hereby agreed and consented by the Obligor­Company that this Indemnity Bond shall be enforceable against him in case of breach or infringement of any of the terms, covenants and conditions as laid down under the Central Transport Subsidy Scheme, 2002. 5.  That the Obligor­Company further agrees, consents and declares in unequivocal terms that all the legal proceedings for enforcing or in relation to the present Indemnity Bond shall be always subject to the Jurisdiction of the local Courts/ High Court of the State Jammu and Kashmir alone. IN WITNESS WHEREOF M/S __________________________________ has set and subscribed its hands to this Indemnity Bond through its authorised Signatory, the Managing Director of the Obligor­Company namely Mr. _____________________________ son of __________________________ resident of __________________________________, for and on behalf the Obligor­Company, pursuant to the Board Resolution dated ________________ in acceptance of its contents and the execution thereof out of his free will, consent and volition and without any sort of force, coercion or un­due influence or any sort of mis­representation on the date and place herein­above written. EXECUTANT ( Mr.  _________________ )                                  For & on behalf of                     M/S ___________________________ ( OBLIGOR­COMPANY) WITNESSES: Sig: _________________________ Sig: ________________________ Name: ______________________                Name:  ________________________ S/O : ______________________   S/O : ________________________ R/O : ______________________      R/O : ________________________ The Common Seal of the Company has been affixed to this Indemnity Bond by Mr. ________________________ son of __________________________ resident of _______________________________, the Managing Director of the Obligor­ Company, for and on its behalf, in presence of Mr. _______________________ son of __________________________ resident of ____________________________,   the other Director of the Obligor­Company, pursuant to Board Resolution dated _______________ in presence of below named witnesses.   COMMON  SEAL OF THE COMPANY SIGNED  BY THE ABOVE NAMED: _________________________________ ____________________________     ( Mr. _____________________  )  ( Mr. ____________________)          Managing Director   of the         Director of the               Company                                                       Company WITNESSES: Sig: _________________________ Sig: ________________________ Name: ______________________                Name:  ________________________ S/O : ______________________      S/O : ________________________ R/O : ______________________      R/O : ________________________ Signed, sealed and Delivered by the within named M/S ___________________ through Mr. ____________________ son of __________________________ resident of __________________________________, the Managing Director of the Obligor­Company, for and on its behalf, pursuant to Board Resolution passed by the Board of Directors of the Obligor­Company in that behalf in its meeting held on ______________________ in presence of : Witnesses: Sig:____________________________ __________________________ Name: _________________________                       ( Sh. ________________ ) S/O : _________________________                         Managing Director R/O :  _________________________                       For  and  on behalf  of:            M/S _____________________                                                                 Pursuant to Board Resolution, Sig: ____________________________      Dated ______________ Name: __________________________ S/O : _________________________                      ( OBLIGOR­COMPANY )  R/O:  _________________________ Copy of the extracts of the Board Meeting held by Board of Directors of M/S __________________________ at its registered office at _____________ On _____________________.               ************************************************************************ " The original Letter of the Director J&K Directorate of Industries and Commerce Department, __________ bearing No: ___________________________ dated __________________ regarding the sanction of the Transport Subsidy under the Central Transport Subsidy Scheme, 2002 in favour of the Company to the tune of Rs. ______ Lakhs for the quarters _________________ was placed before the Board of Directors of the Company to­day. It was approved and resolved that the Company will avail the said subsidy amount from the J&K Directorate of Industries and Commerce Department through the J&K Development Finance Corporation Limited, 24­A, IInd Extention, Gandhi Nagar, Jammu, on the terms and conditions as have been conveyed in the Sanction Letter supra and also on such other terms and conditions as shall be laid down in the legal deeds to be executed by the Company while securing the said subsidy amount. It was further resolved that Directorate of Industries and Commerce Department be conveyed the necessary consent in this regard.  The Board further resolved that Mr. __________________, the Managing Director of the Company, be and is hereby authorised to execute the necessary documents viz. Agreement and Indemnity Bond and such other deeds/documents favouring the Directorate of Industries and Commerce Department, for and on behalf of the Company, as are required to be executed with it for securing the said subsidy amount and create charge upon all the assets of the Company. It was further resolved that Mr. ______________________, the Managing Director, be and is hereby authorised to affix the Common seal of the Company on the said documents in presence of Mr. ________________________ , the other Director of the Company. True­Copy Attested.