Section 22 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984
Disbursement of money by Commissioner.
After admitting a claim under this Act, the amount due in respect of such claim shall be paid by the Commissioner to the person or persons to whom such amount is due, and on such payment, the liability of each of the two companies in respect of such claim shall stand discharged.
Summary
- Once the Commissioner admits a claim under the Act, the Commissioner must disburse the due amount to the entitled person.
- Upon payment of the admitted claim, the liability of the company regarding that claim is legally discharged.
- The discharge applies specifically to the portion of the claim paid by the Commissioner.
Practical examples
FAQ
1. Who actually pays the claimant once a claim is admitted?
The payment is made directly by the Commissioner of Payments.
2. What is the legal effect of this payment on the company?
The payment completely discharges the liability of the company in respect of that claim.
Test yourself
Q1.Under Section 22 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, what is the direct legal consequence of the Commissioner paying an admitted claim?
Q2.Under Section 22 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, who is responsible for making the payment to the claimant after a claim is admitted?
Q3.Under Section 22 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, what must happen before the Commissioner can make a disbursement for a claim?
Q4.Under Section 22 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, whose liability is discharged when the Commissioner pays an admitted claim?