Section 7 of The British India Corporation Limited (Acquisition of Shares) Act, 1981 — Payment by the Central Government to the Commissioner
Bare section text
Official Legislative Text
(1) The Central Government shall, within thirty days from the specified date, pay, in cash, to the Commissioner, for payment to the shareholders of the Company,— (a) an amount equal to the amount specified in sub-section (1) of section 5; and (b) an amount equal to the amount determined under sub-section (2) of section 5. (2) A deposit account shall be opened by the Central Government in favour of the Commissioner, in the Public Account of India, and every amount paid under this Act to the Commissioner shall be deposited by him to the credit of the said deposit account and the said deposit account shall be operated by the Commissioner. (3) The interest accruing on the amount standing to the credit of the deposit account referred to in sub-section (2), shall enure to the benefit of the shareholders of the Company.
Educational Study Layer
Summary
- The Central Government must pay the Commissioner in cash within thirty days of the specified date.
- This payment includes a total amount of twenty-two lakhs and sixty thousand rupees as mentioned in Section 5 of the Act.
- The payment also includes simple interest at a rate of four percent per year for the time between the takeover and the payment date.
- The Commissioner keeps this money in a special deposit account within the Public Account of India.
- Any extra interest earned while the money sits in that deposit account belongs to the shareholders.
- The Commissioner is the only person authorized to operate this deposit account.
Practical examples
FAQ
1. How quickly must the Government give the money to the Commissioner?
They must pay within thirty days from the specified date chosen for that provision.
2. In what form is the payment made?
The Act requires the Central Government to make the payment in cash.
3. Who gets the interest earned on the Commissioner's deposit account?
The interest that grows in the deposit account is for the benefit of the shareholders.
4. Where is the money physically kept?
It is deposited in the Public Account of India in an account held in favor of the Commissioner.
Practice Quiz
Q1.Under Section 7 of The British India Corporation Limited (Acquisition of Shares) Act, 1981, within how many days of the specified date must the Government pay the Commissioner?
Q2.Under Section 7 of The British India Corporation Limited (Acquisition of Shares) Act, 1981, which amount from Section 5 of the Act must the Government pay to the Commissioner?
Q3.Under Section 7 of The British India Corporation Limited (Acquisition of Shares) Act, 1981, where is the Commissioner's deposit account opened?
Q4.Under Section 7 of The British India Corporation Limited (Acquisition of Shares) Act, 1981, who is entitled to the interest accruing on the deposit account?
Q5.Under Section 7 of The British India Corporation Limited (Acquisition of Shares) Act, 1981, what happens to the interest rate defined in Section 5 during the payment process?