Asian Refractories Limited (Acquisition of Undertakings) Act,1971
Act No : 65
Section : PAYMENT OF COMPENSATION
SECTION 07: PAYMENT OF COMPENSATION.
- (1) The Central Government shall deposit, in Court, in cash, to the credit of the company a sum of rupees eighty-one lakhs as compensation in respect of the transfer, under section 3-, to the Central Government of the undertaking of the company.
(2) Out of the total amount of compensation referred to in sub-section (1),-
(a) a sum of rupees eight lakhs shall be deposited by the Central Government, within three months from the appointed day, to the credit of the company:
(b) the balance of the amount of compensation shall be deposited in Court by the Central Government in ten equal annual instalments, the first of which shall become due on the date on which a period of one year expires from the appointed day and the subsequent instalments shall become due accordingly; and
(c) each instalment of the compensation, referred to in clause (b), shall carry interest at the rate of seven per cent, per annum from the commencement of this Act.
(3) For the avoidance of doubts, it is hereby declared that the compensation referred to in subsection (1) represents the realisable value of the assets of the undertaking, which has vested in the Central Government under section 3-, and the liabilities of the undertaking shall be met from the said amount of compensation.
(4) In meeting the liabilities of the undertaking which has vested in the Central Government under section 3-, the Court by which the company owning such undertaking is being wound up, shall distribute, in due course of administration, the amount of the compensation amongst the creditors and, if there is any surplus left after such distribution amongst the contributories of the company in accordance with their rights and interests.
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