3. (1) On the commencement of this Order, the management of the business of an insurer shall vest in the Government.
(2) The Government may appoint a Custodian for the purpose of taking over the management of the insurance business of an insurer pending which the persons in charge of the management of such business immediately before the commencement of this Order shall, on and from the date of the commencement of the Order, be in charge of the management of the insurance business for and on behalf of the Government, and the insurance business shall be carried on by them subject to such directions as the Government may give.
(3) On the appointment of a Custodian under sub-section (1) all persons in charge of the management of the insurance business of the insurer shall cease to be in charge of such management and shall be bound to deliver to the Custodian all books of account, registers, or other documents relating to the insurer in their custody.
(4) The Government may issue such directions to the Custodian as to his powers and duties or prohibit him from performing such acts or deeds as it deems necessary.
(5) The Custodian may seek instructions from Government as to manner in which he shall conduct the business of the insurer or on any other matter arising in course of its management.
(6) The Custodian shall receive such remuneration as the Government may determine.
(7) The Government may at any time cancel the appointment of any person as Custodian.
(8) Notwithstanding anything contained in this Order or under any law for the time being in force, any act or deed performed by the management of an insurer after the 25th day of March, 1971 in the form of making new appointments, giving promotions or increments in salary, bringing in changes in the salary structure involving additional expenditure, giving loan (other than loan granted against the security of life policies) or advances, incurring any expenditure other than for routine payments of salaries, commissions, etc. shall be treated as void unless expressly exempted by a notified order.
