What governments did, and what it cost the country

What was done

Parliament enacted the Companies Act, 1956 (Act 1 of 1956) on 18 January 1956, with the stated object of amending and consolidating the law relating to companies. The law was amended several times, including by Acts in 1960, 1964, 1965, 1974, 1977, 1985, 1988, 2001, 2002 and 2003, and was repealed by the Companies Act, 2013 on 29 August 2013.

What it meant for the country

The sources set out the statutory framework and its repeal, but do not record measurable consequences for companies, investors or public institutions.

• Section 166 required every company to hold an annual general meeting each year, with not more than fifteen months between meetings, placing a recurring shareholder oversight obligation on companies. [3]
• Section 56 required a prospectus to state specified matters and set out specified reports, and made issuing an application form for shares or debentures without the prescribed memorandum punishable with a fine up to 50,000 rupees. [7]
• Section 25 allowed the Central Government, by licence, to permit charitable or other useful-object companies to be registered with limited liability without using the word "Limited" or "Private Limited" in their names. [1]
• The 1956 Act was repealed by the Companies Act, 2013, ending the 1956 regulatory regime as the general law for companies. [9]

Step by step

1. 1956-01-18
   The Companies Act, 1956 (1 of 1956) was published and commenced. Its Statement of Objects and Reasons said the Bill's object was to amend and consolidate the law relating to companies. [9][5]
2. 1960
   The Companies Act was amended by Act 65 of 1960 to overcome practical difficulties, remove drafting defects and better fulfil the Act's purposes. [5]
3. 1964-07-05
   The Companies (Amendment) Ordinance, 1964 was promulgated by the President. [5]
4. 1965
   The Companies (Amendment) Act, 1965 (Act 31 of 1965) was passed following recommendations of the Commission of Inquiry on the administration of Dalmia-Jain Companies. [5]
5. 1975-02-01
   Section 58A, relating to acceptance of deposits, was inserted by the Companies (Amendment) Act, 1974 and came into force on 1 February 1975. [5]
6. 1977
   The Companies Act was amended by Act 46 of 1977. [5]
7. 1985
   Act 35 of 1985 amended the Act; the source notes the then existing blanket ban on political contributions by companies under section 293A. [5]
8. 1988
   Act 31 of 1988 amended the Act in light of the Sachar Committee recommendations. [5]
9. 2001-01-01
   The Companies (Amendment) Act, 2001 (57 of 2001) amended the Companies Act, 1956. [9]
10. 2003-01-01
    The Companies (Amendment) Act, 2002 (1 of 2003) and the Companies (Second Amendment) Act, 2002 (11 of 2003) amended the Companies Act, 1956. [9]
11. 2013-08-29
    The Companies Act, 1956 was repealed by the Companies Act, 2013 (18 of 2013). [9]

The documents

1. [1] Section 25 in The Companies Act, 1956 - Indian Kanoon Court, indiankanoon.org
2. [2] Companies Regulations, 1956 - Indian Kanoon Court, indiankanoon.org
3. [3] Section 166 in The Companies Act, 1956 - Indian Kanoon Court, indiankanoon.org
4. [4] Section 560 in The Companies Act, 1956 - Indian Kanoon Court, indiankanoon.org
5. [5] Section 1 in The Companies Act, 1956 - Indian Kanoon Court, indiankanoon.org
6. [6] Section 205 in The Companies Act, 1956 - Indian Kanoon Court, indiankanoon.org
7. [7] Section 56 in The Companies Act, 1956 - Indian Kanoon Court, indiankanoon.org
8. [8] Section 43A in The Companies Act, 1956 - Indian Kanoon Court, indiankanoon.org
9. [9] The Companies Act, 1956 - Indian Kanoon Court, indiankanoon.org
10. [10] Section 163 in The Companies Act, 1956 - Indian Kanoon Court, indiankanoon.org
11. [11] Section 565 in The Companies Act, 1956 - Indian Kanoon Court, indiankanoon.org
12. [12] Section 3 in The Companies Act, 1956 - Indian Kanoon Court, indiankanoon.org

Compiled from the documents cited, 1 Oct 2026

What was done

The First Law Commission prepared and submitted its First Report titled 'Liability of the State in Tort', recommending that the Central Government enact a law covering state liability in tort. The Central Government and Parliament did not enact the recommended legislation.

What it meant for the country

The 1956 recommendation that India enact a statutory law on state liability in tort was never implemented, leaving citizens without the remedy the Law Commission had called for.

• As of the 2021 Madras High Court order, citizens lacked a statutory remedy for tortious wrongs committed by the State or its officials, because the 1956 Law Commission recommendation had not been enacted as law. [2]
• The gap persisted for more than six decades: the High Court noted the 1956 recommendation remained unimplemented 'in spite of the judgments' of the Supreme Court calling for legislation on state liability. [2]

Step by step

1. 1955-02-11
   The Statute Revision Section of the Law Commission met and discussed the draft report on the liability of the State in tort. [1]
2. 1956
   The First Law Commission submitted its First Report, titled 'Liability of the State in Tort', recommending that the Central Government enact a law covering the field of liability of the State in tort. The report noted the law relating to the liability of the Union and the States for tortious acts was in a state of uncertainty. [1][2]
3. 1956-03-11
   The Statute Revision Section held a further meeting on the draft report; suggestions made by members were accepted and the Chairman and Sri Satyanarayana Rao were asked to finally settle the report in the light of the discussion. [1]
4. 2021-08-17
   The Madras High Court, in W.P.(MD).No.16274 of 2020, recorded that the recommendation made by the first Law Commission in 1956 had not been enacted as law, and suo motu impleaded the Union of India, the State of Tamil Nadu, and the Secretary of the Tamil Nadu Law Department as respondents. [2]

The documents

1. [1] Liability Of The State In Tort. - Indian Kanoon Court, indiankanoon.org
2. [2] S/O. I.Kasi Viswanathan vs The Union Of India on 17 August, 2021 Court, indiankanoon.org
3. [3] Om Prakash vs State on 20 October, 1955 - Indian Kanoon Court, indiankanoon.org
4. [4] Jaswantrai Manilal Akhaney vs The State Of Bombay on 4 May, 1956 Court, indiankanoon.org
5. [5] Indian Kanoon Court, indiankanoon.org
6. [6] Section 88 in The States Reorganisation Act, 1956 - Indian Kanoon Court, indiankanoon.org
7. [7] Raja Sri Sailendra Narayanbhanja Deo vs The State Of Orissa ... Court, indiankanoon.org
8. [8] Kishore B. Setalvad vs Inspecting Assistant Commissioner on ... Court, indiankanoon.org
9. [9] A New Forum For Judicial Appointments - Indian Kanoon Court, indiankanoon.org
10. [10] 198Th Report On Witness Identity Protection And Witness ... Court, indiankanoon.org
11. [11] Teesta Atul Setalvad And Anr vs State Of Gujarat on 19 March ... Court, indiankanoon.org
12. [12] 205Th Report On Proposal To Amend The Prohibition Of Child ... Court, indiankanoon.org

Compiled from the documents cited, 1 Oct 2026

What was done

The Government of India first took over management of private life insurance business by an ordinance in January 1956. Parliament then enacted the Life Insurance Corporation Act, 1956, which established the Life Insurance Corporation of India, gave it all life insurance business in India as a monopoly, provided for compensation to insurers, and guaranteed all life insurance contracts issued by the Corporation through the Central Government. The Central Government provided the Corporation's capital.

What it meant for the country

The Act gave policyholders a Central Government guarantee on all life insurance contracts issued by the Corporation and made life insurance a state-backed monopoly, with the stated aim of providing security to policyholders and spreading insurance to rural areas.

• The Act made the Life Insurance Corporation of India a monopoly over life insurance business in India and transferred all insurers' life business to it, with capital provided entirely by the Central Government. [1][6]
• All contracts for assurance executed by the Corporation were guaranteed by the Central Government, giving policyholders a central government guarantee. [1][6]
• The stated purpose of nationalisation was to ensure absolute security to the policyholder, to spread insurance much more widely and in particular to rural areas, and to mobilise public savings. [1][6]

Step by step

1. 1956-01
   An Ordinance was promulgated whereby, pending the passing of a Bill to nationalise life insurance business, the management of the life insurance business in India was vested in the Central Government. [1][6][7]
2. 1956-01-09
   The Government of India promulgated the Life Insurance (Emergency Provisions) Ordinance, 1956. [10]
3. 1956-01-19
   As the appointed day under the Life Insurance (Emergency Provisions) Act, 1956, management of life insurance business vested in the Central Government, and the government could appoint custodians to take over management. [8][10]
4. 1956-06-18
   The Life Insurance Corporation Act, 1956 was enacted by Parliament, providing for nationalisation of life insurance business by transferring all such business to a Corporation established for the purpose. [1][6]
5. 1956-09-01
   The Life Insurance Corporation Act, 1956 came into effect, completing the process of nationalisation of life insurance business. [10]
6. 1981-01-31
   The President promulgated the Life Insurance Corporation (Amendment) Ordinance, 1981, to amend the Life Insurance Corporation Act, 1956 to empower the Central Government to frame rules regarding the terms and conditions of service of employees and agents of the Corporation. This was later taken forward in Amendment Act 1 of 1981. [1][6]

The documents

1. [1] The Life Insurance Corporation Act, 1956 - Indian Kanoon Court, indiankanoon.org
2. [2] Section 2(3) in The Life Insurance Corporation Act, 1956 Court, indiankanoon.org
3. [3] Section 1 (1) in The Life Insurance Corporation Act, 1956 Court, indiankanoon.org
4. [4] Section 2(10) in The Life Insurance Corporation Act, 1956 Court, indiankanoon.org
5. [5] Section 6 in The Life Insurance Corporation Act, 1956 Court, indiankanoon.org
6. [6] The Life Insurance Corporation Act, 1956 - Indian Kanoon Court, indiankanoon.org
7. [7] Section 15 in The Life Insurance Corporation Act, 1956 Court, indiankanoon.org
8. [8] The Life Insurance (Emergency Provisions) Act, 1956 Court, indiankanoon.org
9. [9] Life Insurance Corporation Rules, 1956 - Indian Kanoon Court, indiankanoon.org
10. [10] Commissioner Of Income-Tax, Bombay ... vs New India Assurance ... Court, indiankanoon.org
11. [11] Life Insurance Corporation General Rules, 1956 - Indian Kanoon Court, indiankanoon.org
12. [12] Section 4 in The Life Insurance Corporation Act, 1956 Court, indiankanoon.org
13. [13] Section 16 in The Life Insurance Corporation Act, 1956 Court, indiankanoon.org
14. [14] Section 16 in The Life Insurance Corporation Act, 1956 Court, indiankanoon.org
15. [15] Section 12 (1) in Life Insurance Corporation Rules, 1956 Court, indiankanoon.org
16. [16] Section 13 in Life Insurance Corporation General Rules, 1956 Court, indiankanoon.org

Compiled from the documents cited, 1 Oct 2026

What was done

The Government of India set up the States Reorganisation Commission in December 1953. The commission reported on 30 September proposing a reorganisation plan. Parliament then enacted the States Reorganisation Act, 1956, which came into force on 1 November 1956. The Act created new states and union territories, merged several existing states, and established Zonal Councils as advisory bodies.

What it meant for the country

The sources show a wholesale redrawing of India's internal map and the creation of new advisory and judicial arrangements, but they do not record what this meant for people, money or rights.

• The Act created advisory Zonal Councils, with a Union minister as chairman and state chief ministers as vice-chairmen by rotation, to discuss economic and social planning, border disputes, linguistic minorities and inter-state transport. [1][5]
• The reorganisation changed court and public service arrangements: the President was empowered to fix the principal seat of a new state's high court, and existing public service commissions for Bombay, Mysore, Punjab, Rajasthan and Travancore-Cochin were deemed to be the commissions for the corresponding new states. [6][8]
• Agreements on irrigation, power and multipurpose projects between the central government and existing states were preserved, subject to adaptation by agreement or central government order up to 1 November 1957. [10]

Step by step

1. 1953-12
   The Government of India constituted the States Reorganisation Commission to examine the reorganisation of states. [1][2]
2. 1956-03-16
   The President referred the Bill to the Legislatures of the 12 Part A and Part B States affected by the scheme of reorganisation, as required by Article 3 of the Constitution. [2]
3. 1956-08-31
   The States Reorganisation Act, 1956 was published in the Gazette of India on 31 August 1956. [2]
4. 1956-11-01
   The appointed day under the Act was 1 November 1956, on which the new states and union territories came into being. [1]

The documents

1. [1] The States Reorganisation Act, 1956 - Indian Kanoon Court, indiankanoon.org
2. [2] Section 1369 in The States Reorganisation Act, 1956 Court, indiankanoon.org
3. [3] The State Of Bombay vs Ali Gulshan on 4 October, 1955 Court, indiankanoon.org
4. [4] The State vs Mohammad Ali on 19 April, 1955 - Indian Kanoon Court, indiankanoon.org
5. [5] Section 16 in The States Reorganisation Act, 1956 - Indian Kanoon Court, indiankanoon.org
6. [6] Section 118 (1) in The States Reorganisation Act, 1956 Court, indiankanoon.org
7. [7] Section 5 in The States Reorganisation Act, 1956 - Indian Kanoon Court, indiankanoon.org
8. [8] Section 51 in The States Reorganisation Act, 1956 - Indian Kanoon Court, indiankanoon.org
9. [9] Section 119 in The States Reorganisation Act, 1956 Court, indiankanoon.org
10. [10] Section 108 in The States Reorganisation Act, 1956 Court, indiankanoon.org
11. [11] Section 1 in The States Reorganisation Act, 1956 - Indian Kanoon Court, indiankanoon.org
12. [12] Section 47 in The States Reorganisation Act, 1956 - Indian Kanoon Court, indiankanoon.org

Compiled from the documents cited, 1 Oct 2026