Payment of amount

Payment of amount.—(1) For the transfer to, and vesting in, the Government, under section 4, of the undertaking, and the right, title and interest of the club in relation to such undertaking, there shall be paid by the Government to the club in cash and in the manner specified in Chapter VI, an aggregate of the value of the sums specified in sub-sections

1. (2) and (3).
2. (2) The Government shall pay as amount for the acquisition of the undertaking such as may be determined by the prescribed authority. In determining the amount under this sub-section, the prescribed authority shall have regard to—
   • (i) the book value of all completed works in beneficial use pertaining to the undertaking and vested in the Government under section 4, less depreciation calculated in accordance with the First Schedule ;
   • (ii) the book value of all works in progress vested in the Government under section 4 ;
   • (iii) the book value of all stores (including spare parts, consumable articles, fodders and other similar goods), vested in the Government under section 4 and in the case of used stores and spare parts, such amount as may be decided upon by mutual agreement between the Government and the club ;
   • (iv) the book value of all other fixed assets existing on the appointed day which have vested in the Government under section 4, less depreciation calculated in accordance with the First Schedule ;
   • (v) the book value of all plant and equipment existing on the appointed day but no longer in use owing to wear and tear or to obsolescence, to the extent such value has not been written off in the books of the undertaking less depreciation calculated in accordance with the First Schedule ;
   • (vi) the book value of all intangible assets to the extent such value has not been written off in the books of the undertaking. Explanation.—For the purposes of this sub-section, the book value of any fixed asset means its original cost, which shall comprise—
   • (a) the purchase price paid by the undertaking for the asset including the cost of delivery and all charges properly incurred in erecting and bringing the asset into beneficial use as shown in the books of the undertaking ;
   • (b) interest charges on capital expenditure incurred from borrowed money and shown in the books of the undertaking as properly attributable to the asset up to the date of bringing it into beneficial use, at a rate not exceeding six per cent per annum ;
   • (c) cost of supervision actually incurred, but not exceeding fifteen per cent of the sum referred to in clause (a).
3. (3) In addition to the amount payable under sub-section (2), for the acquisition of the buildings and assets referred to in that sub-section, the Government shall pay an amount for the acquisition of horses and the amount shall be their market value as may be agreed upon between the Government and the persons interested and failing such agreement, as may be determined by the prescribed authority. Explanation.—For the purpose of this sub-section, 'horse' includes mare, gelding, filly, pony or any other horse by whatever name called.
4. (4) Every amount specified in sub-sections
5. (2) and
6. (3) shall carry simple interest at the rate of four per cent per annum for the period commencing on the appointed day, and ending with the date on which the payment of such amount is made by the Government to the Commissioner.
7. (5) The amount determined in accordance with the provisions of sub-section
8. (4) shall be paid by the Government to the club in addition to the amount specified in sub-sections
9. (2) and (3).
10. (6) For the removal of doubts, it is hereby declared that the liabilities of the club, in relation to the undertaking which have vested in the Government under section 4, shall be discharged from the amount referred to in sub-sections
11. (2) and (3), and also from the amount determined under sub-section (4), in accordance with the rights and interests of the creditors of the club.