Defence Production Act — D-1 24
Re-assessment of costs and profits 24 (1) Where the Minister is satisfied, either before or after the performance, in whole or in part, of a defence contract, that the total amount paid or payable thereunder to any person is in excess of the fair and reasonable cost of performing the contract together with a fair and reasonable profit, the Minister may (a) by order, reduce the amount that the person is entitled to retain or receive thereunder to such amount as the Minister may fix as the fair and reasonable cost of performing the contract together with a fair and reasonable profit thereon; and (b) direct the person to pay to the Receiver General forthwith any amount that the person has received under the contract in excess of the amount so fixed. Where person a party to two or more contracts (2) Where a person is a party to two or more defence contracts, the Minister may, (a) by one order, reduce the total amount that the person is entitled to retain or receive under any two or more or all of the contracts to such amount as the Minister may fix as the fair and reasonable cost of performing the contracts together with a fair and reasonable profit thereon, or (b) by order, fix the amount that the person is entitled to retain or receive in respect of defence contracts, during such period as may be designated by the Minister, as the fair and reasonable cost of performing the contracts together with a fair and reasonable profit thereon during that period, and the Minister may direct the person to pay to the Receiver General forthwith any amount that the person has received under the contracts or in respect of defence contracts during that period in excess of the amount so fixed in respect thereof. Contractor carrying on other business (3) In determining a person’s fair and reasonable cost of performing defence contracts, or the fair and reasonable profit thereon, during any period, the Minister may, if during that period the person has carried on business other than the performance of defence contracts, determine for the purposes of this section such share or part of the gross income of, or the cost incurred by, the person during that period as is to be regarded as being attributable to that other business. Minister not limited or bound by contractor’s accounts or records (4) Where the Minister is satisfied that the accounts or records kept by a person with respect to the performance of a defence contract, or of defence contracts during any period referred to in paragraph (2)(b) or subsection (3), are insufficient to enable the cost of performance of the contract or contracts to be determined or that the cost as shown by the accounts or records is not fair and reasonable, the Minister is not limited or bound by the accounts or records in fixing the fair and reasonable cost of performance of the contract or contracts. Recovery of repayments directed by Minister (5) An amount payable to the Receiver General pursuant to a direction of the Minister under this section is recoverable in the Federal Court or any other court of competent jurisdiction, with full costs of suit, as a debt due to Her Majesty. R.S., c. D-2, s. 19; R.S., c. 10(2nd Supp.), s. 64