Chapter III PAYMENT OF AMOUNTS

For the transfer to, and vesting in, the State Government under section 3, of the undertaking and the right, title and interest of the proprietors in relation to the undertaking, there shall be paid by the State Government to the proprietors, in cash, and in the manner specified in Chapter VI, an amount of rupees six crores and ten lakhs : Provided that, where any liability of the proprietors specified in the Schedule is discharged by the State Government or the Corporation according to the order of the priorities mentioned in the Schedule, the amount to be paid to the proprietors under this section shall stand reduced to that extent.

(1) The amount payable in accordance with the provisions of section 7 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 amount is made by the State Government to the Commissioner. (2) The amount representing interest calculated at the rate specified in sub-section (1) shall be given by the State Government to proprietors in addition to the amount specified in section 7. (3) For the removal of doubts it is hereby declared that the liabilities of the proprietors in relation to their undertaking which has vested in the State Government or the Corporation under section 3 shall be discharged from the amounts specified in section 7 and also from the amounts specified in sub-section (1) in accordance with the rights and interests of the creditors of the proprietors.

(1) The general superintendence, direction, contol and management of the affairs and business of the undertaking, the right, title and interest in relation to which have vested in the State Government under sub-section (1) of section 3, shall— (a) by virtue of the provisions of sub-section (2) of section 3, vest in the Corporation or in such person and to such extent or limitations as the Corporation may by order in writing, specify ; or (b) where a direction has been issued by the State Government under sub-section (1) of section 6, vest in the new Government company or in such person and to such extent or limitations as the new Government company may, by order in writing, specify ; and thereupon the Corporation or the new Government company or, as the case may be, such persons shall be entitled to exercise, to the exclusion of all other persons, all such powers and do all such things as the proprietors were authorised to exercise and do in relation to their undertaking. (2) Notwithstanding anything contained in sub-section (1) or any other law for the time being in force, it shall be lawful for the Corporation or the new Government company to reorganise the functioning of the different units and offices of the undertaking and the employees employed therein and thereby restructure such units and offices with such strength of employees as the Corporation or such new Government company deems fit.

(1) On the vesting of the management of the undertaking in Corporation or the new Government company all persons in charge of the management of the undertaking immediately before such vesting, including the liquidator appointed by the Court shall be bound to deliver to the Corporation, or new Government company, as the case may be, all assets, books of account, registers and other documents in their possession or custody or under their control, relating to the undertaking. (2) The State Government may issue such directions as it may deem desirable in the circumstances of the case to the Corporation or new Government company, and such corporation or new Government Company may also, if it is considered necessary so to do, apply to the State Government at any time for instructions as to the manner in which the management of the undertaking shall be conducted or in relation to any other matter arising in the course of such management.

(1) Any person who has on the appointed day, in his possession or custody or under his control, any assets, books, documents or other papers relating to the undertaking, which have vested in the State government or in the Corporation, or in the new Government company under this Act, shall be liable to account for the said assets, books, documants and other papers to the State Government, or the Corporation or the new Government company, as the case may be, and shall deliver them to the State Government or the Corporation or the new Government company or to such person or persons as the State Government or the Corporation or the new Government company may specify in this behalf. (2) The State Government or the Corporation or the new Government company aforesaid may take, or cause to be taken, all necessary steps for securing posession of the undertaking which has vested in the State Government or the Corporation or the new Government company under this Act. (3) The proprietors shall, within such period as the State Government may allow in this behalf, furnish to that Government a complete inventory of all its properties and assets, as on the appointed day, pertaining to the undertaking which has vested in the State Government under sub-section (1) of section 3 and in the Corporation, by virtue of the provisions of sub-section (2) of that section, or the new Government company and, for this purpose the State Government or the Corporation or the new Government company shall afford to the proprietors all reasonable facitities.