Determination and mode of payment of certain amounts

The Bobbili and Seethanagaram (Acquisition and Transfer of Sugar Undertakings) Act, 1986

General198625 sections

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Statutory text

(1) The Government shall pay for the acquisition and transfer of the sugar undertakings specified in column
(2) of the First Schedule, an amount specified in column
(3) thereof, out of which fifty percent shall be paid in cash and for the remaining fifty percent bonds shall be issued on such terms and carry such rate of interest as may be prescribed and redeemable after five years and the same shall be paid to the persons entitled thereto in accordance with the decisions of the prescribed authority or the Tribunal as the case may be, under this Act.
(2) The prescribed authority shall give notice of every deposit made with it under this section to all persons known or believed to be interested in the sugar undertakings or to be entitled to act for persons interested in the manner prescribed.
(3) The deposit referred to in sub-section
(1) shall be made not later than six months from the date on which possession of the properties and assets relating to the sugar undertakings has been delivered under section 6: Provided that where in consequence of any act committed by any person interested (including any legal proceeding instituted by him) or of any other reason, the Corporation is deprived of or is interrupted in the possession of such properties and assets, the period of such deprivation or interruption shall be excluded while computing the said period of six months.
(4) Interest at the rate of six percent per annum shall accrue on the amount referred to in sub-section
(1) and enure to the benefit of Company.
(5) If any doubt or difficulty arises in respect of the period referred to in the proviso to sub-section
(3) or about the amount of interest referred to in sub-section (4), the same shall be determined by the prescribed authority, which may in accordance with its decision direct the Government to make such deposit or further deposit as may be necessary. (6)
- (a) The Corporation shall be entitled to receive up to date prescribed in this behalf to the exclusion of all other persons, all moneys—
  - (i) due to the company, in relation to any of the sugar undertakings owned by it which have vested in the Corporation and realised after the appointed day, notwithstanding that the realisation pertains to a period prior to the appointed day;
  - (ii) being the proceeds of sale or disposal otherwise of stocks of sugar, molasses, sugarcane, sugar in process, bagasse or press mud comprised in the sugar undertakings notwithstanding any contract or agreement to the contrary:
- (b) The moneys received by the corporation under this sub-section shall be utilised for meeting the liabilities arising out of transactions which took place during the post take over management period, and any surplus amount left out shall be deposited with prescribed authority. (7)
- (a) The corporation may make a claim to the prescribed authority with regard to every payment made by the Corporation after the appointed day, for discharging any liabilities of the Company including the payment made under sub-section
(4) of section 9 in respect of any of the sugar undertakings owned by it, in relation to any period prior to the appointed day and every such claim shall have priority in accordance with the priority attaching under this Act to the matter in relation to which such liability has been discharged by the Corporation.
- (b) save as otherwise provided in this Act the liabilities of the Company in relation to any of the sugar undertakings owned by it, in respect of any transaction prior to the appointed day, which have not been discharged on or before the date prescribed under sub-section
(6) shall be the liabilities of the Company.

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