Section 9 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984
- (1)For the deprivation of the two companies of the management of their undertakings during the period commencing on the date on which the undertakings of each such company was taken over in pursuance of the orders made by the Central Government under the provisions of the Industries (Development and Regulation) Act, 1951 (65 of 1951) and ending on the appointed day, there shall be paid by the Central Government to each of the Companies in cash, an amount of rupees fifty thousand.
- (2)The amount referred to in section 8 and the amount specified in sub-section (1) shall carry simple interest at the rate of four per cent. per annum for the period commencing on the appointed day and ending on the date on which payment of such amounts is made by the Central Government to the Commissioner.
- (3)The amount referred to in sub-section (1) and the amount determined in accordance with the provisions of sub-section (2) shall be given by the Central Government to the two companies in addition to the amount specified in section 8.
- (4)For the removal of doubts, it is hereby declared that the liabilities of either of the two companies in relation to its undertakings which have vested in the Central Government under section 3, shall be discharged from the amount referred to in section 8, and also from the amount specified in sub-section (1) and the amount determined under sub-section (2), in accordance with the rights and interests of the creditors of the two companies.
Summary
- The Central Government must pay each of the two companies an additional fifty thousand rupees in cash.
- This payment compensates the companies for being deprived of the management of their undertakings before nationalisation.
- The deprivation period begins when the Central Government took over management under the Industries (Development and Regulation) Act, 1951, and ends on the appointed day.
- Both the Section 8 amount and the fifty thousand rupees management deprivation amount carry simple interest at a rate of four percent per annum.
- These additional amounts are used to discharge the liabilities of the companies in relation to their undertakings in accordance with the rights of their creditors.
Practical examples
FAQ
1. Why are the companies paid an extra fifty thousand rupees under Section 9?
It is paid to compensate them for being deprived of the management of their undertakings while they were run by the Government before the appointed day.
2. What is the interest rate applied to these payments, and is it compound or simple?
The interest rate is four percent per annum, and it is calculated as simple interest.
3. How are the liabilities of the companies discharged using these funds?
The liabilities are discharged from the Section 8 amount, the fifty thousand rupees deprivation payment, and the interest, in accordance with the rights and interests of the company's creditors.
Test yourself
Q1.Under Section 9 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, what is the exact amount paid to each company as compensation for the deprivation of management?
Q2.Under Section 9 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, which of the following amounts carry interest?
Q3.Under Section 9 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, what is the interest rate and type applied to the compensation amounts?
Q4.Under Section 9 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, what is the starting point and ending point for the calculation of interest?
Q5.Under Section 9 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, how are pre-nationalisation liabilities of the companies in relation to their undertakings discharged?