Assumption of liability

Assumption of liability.—(1) Where any liability of the club arising out of any item specified in the Category I or item

1. (a) and
2. (b) of Category II of the Second Schedule is not discharged fully by the Commissioner out of the amounts paid to him under this Act, the Commissioner shall intimate in writing to the Government the extent of the liability which remains undischarged and that liability shall be assumed by the Government.

1. (2) The Government may, by order, direct the Government company in which the undertaking becomes vested by virtue of any direction made under sub-section
2. (1) of section 6, to take over the liability assumed by the Government under sub-section
3. (1) and on receipt of such direction, it shall be the duty of such Government company to discharge such liability.