Chapter VI COMMISSIONER OF PAYMENTS

(1) For the purpose of disbursing the amounts payable to the owner of the undertaking and the owners of the properties sold, the Government shall, by notification in the Gazette, appoint a person as they may think fit to be the Commissioner of payments. (2) The Government may appoint such other persons as they may think fit to assist the Commissioner and thereupon the Commissioner may authorise one or more of such persons also to exercise all or any of the powers exercisable by him under this Act and different persons may be authorised to exercise different powers. (3) Any person authorised by the Commissioner to exercise any of the powers may exercise those powers in the same manner and with the same effect as if they have been conferred on that person directly by this Act and not by way of authorisation. (4) The salaries and allowances of the Commissioner shall be as may be prescribed and it shall be defrayed out of the Consolidated Fund of the State of Kerala.

(1) The Government shall, within thirty days from the commencement of this Act, pay in cash to the Commissioner, for payment to the owner of the undertaking, an amount equal to the amount specified against the undertaking in the First Schedule and shall also pay to the Commissioner such sums as may be due to the owner of the undertaking and the owners of the properties sold under sub-section (2) of section 8, section 9 and section 10. (2) A separate account shall be opened by the Government in favour of the Commissioner and every amount paid under this Act to the Commissioner shall be deposited by him in that account and thereafter such account shall be operated by the Commissioner. (3) Separate records shall be maintained by the Commissioner in respect of the undertaking and the payment made to him under this Act. (4) Interest accruing on the amounts standing to the credit of the account referred to in sub-section (2) shall ensure to the benefit of the owners of the undertaking and payment of interest to the owners of the properties sold.

Every person having a claim against the owner of the undertaking or the properties sold shall prefer such claim before the Commissioner within thirty days from the date of appointment of the Commissioner or such extended period, as the Government may, by notification in the Gazette, specify: Provided that if the Commissioner is satisfied that the claimant was prevented by sufficient cause from preferring the claim within the said period he may entertain the claim within a further period of thirty days but not thereafter.

(1) The claims arising out of the matters specified in the Second Schedule shall have priorities in accordance with the following principles, namely:— (a) Category I will have precedence over all other categories and Category II will have precedence over Category III and so on; (b) The claims specified in each of the categories, except Category V, shall rank equally and be paid in full, but if the amount is insufficient to meet such claims in full, they shall abate in equal proportions and be paid accordingly; (c) The liabilities specified in Category V shall be discharged subject to the priorities specified in this section, in accordance with the terms of the secured loans and the priority, inter se, of such loans; and (d) The question of payment of a liability with regard to a matter specified in a lower category shall arise only if a surplus is left after meeting all the liabilities specified in the immediately higher category. (2) The provisions of this section shall not in any way affect payment of compensation to the owners of properties sold.

(1) After examining the claim with reference to the priority set out in the Second Schedule, the Commissioner shall fix a certain date on or before which every claimant shall file the proof of his claim or be excluded from the benefit of the disbursement made by the Commissioner. (2) Not less than fourteen days’ notice of the date so fixed shall be given by advertisement in one issue of a daily newspaper in the English Language and one issue of a daily newspaper in the regional language, as the Commissioner may consider suitable, and every such notice shall call upon the claimant to file the proof of his claim with the Commissioner within the time specified in the advertisement. (3) Every claimant who fails to file the proof of his claim within the time specifid by the Commissioner shall be excluded from the disbursement made by the Commissioner. (4) The Commissioner shall, after such investigation as may, in his opinion, be necessary and after giving the owner of the undertaking an opportunity of refuting the claim and after giving the claimant a reasonable opportunity of being heard, in writing, admit or reject the claim in whole or in part. (5) The Commissioner shall have the power to regulate his own procedure in all matters arising out of the discharge or his functions, including the place or places at which, he will hold his sittings and shall, for the purpose of making any investigation under this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (Central Act 5 of 1908), while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) discovery and production of any document or other material object producible as evidence; (c) reception of evidence on affidavits; (d) issue of commissions for the examination of witnesses. (6) Any investigation before the Commissioner shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Penal Code (Central Act 45 of 1860); and the Commissioner shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974). (7) Any person aggrieved by, or who is dissatisfied with the decision of the Commissioner may, within thirty days from the date of receipt of the order leading to such decision, prefer an appeal against the decision to the principal civil court of original jurisdiction within the local limits of whose jurisdiction the undertaking is situated.

After admitting a claim under this Act, the amount due in respect of such claim shall be credited by the Commissioner to the relevant fund or be paid to the person or persons to whom such sums are due and on such credit or payment the liability of the owner in respect of such claim shall stand discharged.

(1) If out of the amount paid to him in relation to the undertaking, there is a balance left after meeting the liabilities as specified in the Second Schedule, the Commissioner shall disburse such balance to the owner of such undertaking. (2) Before making any payment to the owner of the undertaking under sub-section (1), the Commissioner shall satisfy himself as to the right of such person to receive the whole or any part of such amount, and in the event of there being a doubt or dispute as to the right of the person to receive the whole or any part of the amount referred to in section 8, the Commissioner shall refer the matter to the court and make the disbursement in accordance with the decision of the court. (3) For the removal of doubts, it is hereby declared that the entries in column (2) of the First Schedule shall not be deemed to be conclusive as to the right, title and interest of any person in relation to the undertaking specified in the corresponding entries in column (1) of the said Schedule; and evidence shall be admissible to establish the right, title and interest of any person in relation to such undertaking. (4) Where any machinery, equipment or other property in the undertaking has vested in the State Industrial Development Corporation but such machinery, equipment or other property does not belong to the owner of such undertaking, the amount specified in column (3) of the First Schedule against such undertaking shall, on a reference made to it by the Commissioner, be apportioned by the court between the owner of such undertaking and the owner of such machinery, equipment or other property having due regard to the value of such machinery, equipment or other property on the date of commencement of this Act.

Explanation.— In this section, “court”, in relation to the undertaking, means the principal civil court of original jurisdiction within the local limits of whose jurisdiction, the undertaking is situated. Any amount paid to the Commissioner which remains undisbursed or unclaimed for a period of three years from the last day on which the disbursement was made, shall be transferred by the Commissioner to the general revenue account of the Government, but a claim to any money so transferred may be preferred to the Government by the person entitled to such payment and shall be dealt with as if such transfer had not been made, the order, if any, for payment of the claim being treated as an order for the refund of revenue.