Central

Section 11 of The Chutia Nagpur Encumbered Estates Act, 1876

When the amount due in respect of the debts and liabilities mentioned in section eight has been finally determined, the Manager shall prepare and submit to the Commissioner a schedule of such debts and liabilities, and a scheme for the settlement thereof; and such scheme, when approved by the Commissioner, shall be carried into effect. Power to return scheme for revision.--Until such approval is given, the Commissioner may, as often as he thinks fit, send back such scheme to the Manager for revision, and direct him to make such further inquiry as may be requisite for the proper preparation of the scheme.

Summary

First is a schedule, which is a formal list of all the determined debts and liabilities of the estate.
Second is a scheme, which is a detailed plan for how those debts and liabilities will be settled or paid off.
These documents must be submitted to the Commissioner for his review and approval.
The Commissioner has the power to send the scheme back to the Manager for changes or more investigation as many times as he thinks necessary.
The plan for settling the debts can only be carried out (implemented) after it has received the final approval of the Commissioner.

Practical examples

1In 1881, after determining all 20 debts against the estate, the Manager creates a "Settlement Scheme." It proposes paying off the smallest debts first using the rent collected. He submits this to the Commissioner for approval under Section 11.

2The Commissioner reviews a submitted scheme and thinks the interest rates calculated are still unclear. He sends the scheme back to the Manager, directing him to conduct "further inquiry" into three specific claims before he will sign off on it.

3After three revisions, the Commissioner finally approves the Manager's scheme in 1882. The Manager then begins using the estate's income to pay the creditors exactly as outlined in the now-finalized schedule.

FAQ

1. What is the difference between the schedule and the scheme?

The schedule is the list of debts, while the scheme is the actual plan for how to settle or pay them.

2. Who has the final say on whether the settlement plan is acceptable?

The Commissioner has the final authority to approve the scheme.

3. Can the Commissioner ask the Manager to redo the plan?

Yes, the Commissioner can send the scheme back for revision as often as he thinks fit and can order further inquiry.

Test yourself

Q1.Under Section 11 of The Chutia Nagpur Encumbered Estates Act, 1876, what must occur before the Manager submits the schedule and scheme to the Commissioner?

Q2.Who is responsible for approving the scheme for settlement of debts under Section 11 of The Chutia Nagpur Encumbered Estates Act, 1876?

Q3.According to Section 11 of The Chutia Nagpur Encumbered Estates Act, 1876, what can the Commissioner do if he is not satisfied with the proposed scheme?

Q4.What two specific items must the Manager submit to the Commissioner under Section 11 of The Chutia Nagpur Encumbered Estates Act, 1876?

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