Manner of payment or deposit of compensation

(1) The compensation due to a licensee under this Act shall be paid in cash, as hereinafter provided. (2) Within four months from the vesting date in the case of an undertaking which vests in the Government in pursuance of an order under section 4, sub-section (1), and as soon as may be after the commencement of this Act in the case of an undertaking taken over, the Government shall estimate roughly the compensation payable to the licensee under this Act. (3) Three-fourths of the amount as so estimated shall be paid by the Government to the licensee, where it is a local authority after deducting any amount paid, whether before or after the commencement of this Act, as or towards the compensation payable and the amounts referred to in section 10. (4) In the case of any other licensee, the Government shall deposit with the Reserve Bank of India or any other bank approved by the Government for the purpose (which is hereinafter referred to as the Bank) three-fourths of the amount as estimated under sub-section (2) after deducting the amounts referred to in section 10. Explanation.—Where the amount to be paid or deposited under sub-section (3) or this sub-section is equal to or less than the amount to be deducted therefrom as aforesaid, no payment or deposit need be made under sub-section (3) or this sub-section. (5) Nothing in sub-section (2) or sub-section (4) shall require the Government to estimate roughly the compensation payable to a licensee under this Act or to deposit in the Bank three-fourths of the amount as so estimated after deducting therefrom the amounts referred to in section 10, in a case where, in respect of an undertaking taken over, the Government have, before the commencement of this Act, estimated roughly the compensation payable to the licensee and have deposited in the Bank three-fourths of the amount as so estimated after deducting therefrom the amounts referred to in section 10; and the estimate and the deposit made by the Government in any such case shall be deemed for all purposes to be an estimate and a deposit made under sub-section (2) and sub-section (4), respectively. (6) (a) Within one year from the date on which the compensation was estimated under sub-section (2), the Government shall determine the amount of compensation payable in respect of the undertaking and pay to the licensee or deposit in the Bank the balance left from the amount aforesaid after deducting therefrom (i) the amounts referred to in section 10, and (ii) the payment or deposit previously made under sub-section (3) or sub-section (4) as the case may be. (b) Nothing in clause (a) shall require the Government to determine the amount of compensation payable in respect of the undertaking or to make a deposit in a Bank in any case where in respect of an undertaking taken over, the Government have determined the amount of compensation payable in respect of the undertaking and have deposited in the Bank the balance left from the amount aforesaid after deducting therefrom the amounts referred to in section 10 and the deposit previously made or deemed to have been made under sub-section (4); and the determination and the deposit shall in such a case be deemed to have been made under clause (a). (c) Where the accredited representative claims or in the case of an undertaking taken over has claimed that compensation is or was due to the licensee over and above that as determined or deemed to have determined by the Government under clause (a), the amount, if any, to which it is finally decided in pursuance of this Act that the licensee is entitled, shall be paid to the licensee or deposited in the Bank, as the case may be, within one month from the date on which such final decision is arrived at. (d) All amounts liable to be paid or deposited in pursuance of clause (a) or clause (c) shall bear interest at three per cent per annum from the date of expiry of four months from the vesting date.