Section 35. Amalgamation and transfer of insurance business

35. Amalgamation and transfer of insurance business.—[4] [(1) Notwithstanding anything contained in any other law for the time being in force, no insurance business of an insurer shall be transferred to or amalgamated with the insurance business of any other insurer except in accordance with a scheme prepared under this section and approved by the Authority.] (2) Any scheme prepared under this section shall set out the agreement under which the transfer or amalgamation is proposed to be effected, and shall contain such further provisions as may be necessary for giving effect to the scheme. (3) Before an application is made to the[5] [Authority][6] [to approve any such scheme] notices of the intention to make the application together with a statement of the nature of the amalgamation or transfer, as the case may be, and of the reason therefore shall, at least two months before the application is made, be sent to the[5] [Authority][7] [and certified copies, four in number, of each of the following documents shall be furnished to the[5] [Authority], and other such copies shall] during the two months aforesaid be kept open for the inspection of the members and policy-holders at the principal and branch offices and chief agencies of the insurers concerned, namely: — (a) a draft of the agreement or deed under which it is proposed to effect the amalgamation or transfer; 1. Subs. by Act 41 of 1999, s. 30 and the First Schedule for [Serial no. 22 (b)] "Controller" (w.e.f. 19-4-2000). 2. Subs. by Act 5 of 2015, s. 41, for "Central Government" (w.e.f. 26-12-2014). 3. Subs. by Act 20 of 1983, s. 2 and the Schedule, for "may make rules" (w.e.f. 15-3-1984). 4. Subs. by Act 5 of 2015, s. 42, for sub-section (1) (w.e.f. 26-12-2014). 5. Subs. by Act 41 of 1999, s. 30 and the First Schedule, for "Controller" (w.e.f. 19-4-2000). 6. Subs. by s. 30 and the First Schedule, ibid ., for "to sanction any such scheme" (w.e.f. 19-4-2000). 7. Subs. by Act 13 of 1941, s. 22, for "and certified copies of the following documents shall be furnished to the Central Government and shall" (w.e.f. 8-4-1941). 1[(b) balance sheets in respect of the insurance business of each of the insurers concerned in such amalgamation or transfer, prepared in such forms as may be specified by the regulations; (c) actuarial reports and abstracts in respect of the life insurance business of each of the insurers so concerned, prepared in conformity with the regulations specified in this regard.] (d) a report on the proposed amalgamation or transfer, prepared by an independent actuary who has never been professionally connected with any of the parties concerned in the amalgamation or transfer at any time in the five years preceding the date on which he signs his report; (e) any other reports on which the scheme of amalgamation or transfer was founded. The balance-sheets, reports and abstracts referred to in clauses (b), (c) and (d) shall be prepared as at the date at which[2] [the amalgamation or transfer if approved] by the[3] [Authority] is to take effect, which date shall not be more than twelve months before the date on which the application to the[3] [Authority] is made under this section: Provided that if the[3] [Authority] so directs in the case of any particular insurer there may be substituted respectively for the balance-sheet, report and abstract referred to in clauses (b) and (c) prepared in accordance with this sub-section certified copies of the last balance-sheet and last report and abstract prepared in accordance with sections 11 and 13[4] [of this Act or sections 7 and 8 of the Indian Life Assurance Companies Act, 1912 ( 6 of 1912 ),] if that balance-sheet is prepared as at a date not more than twelve months, and that report and abstract as at a date not more than five years, before the date on which the application to the[3] [Authority] is made under this section]. 5* * * * * 6 — [36. Sanction of amalgamation and transfer by Authority. When any application under sub-section (3) of section 35 is made to the Authority, the Authority shall cause, a notice of the application to be given to the holders of any kind of policy of insurer concerned alongwith statement of the nature and terms of the amalgamation or transfer, as the case may be, to be published in such manner and for such period as it may direct, and, after hearing the directors and considering the objections of the policyholders and any other persons whom it considers entitled to be heard, may approve the arrangement, and shall make such consequential orders as are necessary to give effect to the arrangement.]