406. Power to modify Act in its application to Nidhis.— (1) In this section, “Nidhi” means a
company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and
savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual
benefit, and which complies with such rules as are prescribed by the Central Government for regulation of
such class of companies.
(2) Save as otherwise expressly provided, the Central Government may, by notification, direct that
any of the provisions of this Act shall not apply, or shall apply with such exceptions, modifications and
adaptations as may be specified in that notification, to any Nidhi or Nidhis of any class or description as
may be specified in that notification.
(3) A copy of every notification proposed to be issued under sub-section (2), shall be laid in draft
before each House of Parliament, while it is in session, for a total period of thirty days which may be
comprised in one session or in two or more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid, both Houses agree in
disapproving the issue of the notification or both Houses agree in making any modification in the
notification, the notification shall not be issued or, as the case may be, shall be issued only in such
modified form as may be agreed upon by both the Houses.
CHAPTER XXVII
NATIONAL COMPANY LAW TRIBUNAL AND APPELLATE TRIBUNAL
