COMMISSIONER OF PAYMENTSCentral

Section 23 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984

(1)If, out of the moneys paid to him in relation to the undertakings of either of the two companies, there is a balance left after meeting the liabilities as specified in the Second Schedule, the Commissioner shall disburse such balance to the concerned company.
(2)Where the possession of any machinery, equipment or other property has vested in the Central Government or the existing, or new, Government company under this Act, but such machinery, equipment or other property does not belong to either of the two companies, it shall be lawful for the Central Government or the existing, or new, Government company, as the case may be, to continue to possess such machinery or equipment or other property on the same terms and conditions under which they were possessed by either of the two companies immediately before the appointed day.

Summary

If any balance of money remains with the Commissioner after meeting all the liabilities specified in the Second Schedule, the Commissioner must pay this balance to the concerned company.
The Act allows the Central Government or the government company to continue possessing third-party machinery, equipment, or property.
This possession of third-party assets continues on the same terms and conditions that were in place immediately before the appointed day.
This right of continued possession applies even if the assets did not belong to either of the two nationalized companies.

Practical examples

1The Commissioner finishes paying off all the verified claims against National Rubber Manufacturers Limited using the 159.64 lakh rupees fund. After all payments, there is a balance of 10,000 rupees left. Under Section 23, the Commissioner pays this remaining 10,000 rupees directly back to National Rubber Manufacturers Limited.

2A specialized rubber cutting machine used by Inchek Tyres Limited actually belonged to a leasing firm, Rent-A-Machine Corp, before the takeover. Under Section 23, the Government company can continue to hold and use this machine on the exact same lease terms and monthly rental fee that Inchek Tyres Limited was paying before February 14, 1984.

FAQ

1. What happens to the money paid to the Commissioner if there is a surplus left after settling all claims?

The Commissioner must disburse any remaining balance to the concerned company.

2. Can the government keep third-party equipment that was being used by the companies before the takeover?

Yes, it is lawful for the government or the government company to continue possessing machinery, equipment, or other property that does not belong to the two companies.

3. On what terms can the government continue to hold this third-party property?

It continues on the same terms and conditions under which the property was possessed by the company immediately before the appointed day.

Test yourself

Q1.Under Section 23 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, what must the Commissioner do with any remaining balance of money after meeting all liabilities specified in the Second Schedule?

Q2.Under Section 23 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, what is the rule regarding machinery or equipment that was possessed by the companies but belonged to a third party?

Q3.Under Section 23 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, what condition triggers the Commissioner's duty to disburse a balance to the concerned company?

Q4.Under Section 23 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, whose possession of third-party machinery is protected?

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