Section 18 of The Sick Textile Undertakings (Nationalisation) Act, 1974
- (1)The Central Government shall, within thirty days from the specified date, pay in cash to the Commissioner, for payment to the owner of a sick textile undertaking, an amount equal to the amount specified against the sick textile undertaking in the First Schedule and shall also pay to the Commissioner such sums as may be due to the owner of a sick textile undertaking under sub-sections (1) and (2) of section 9.
- (2)In relation to the sick textile undertakings, the management of which was taken over by the Central Government under the Industries (Development and Regulation) Act, 1951 (5 of 1951), there shall be paid by the Central Government [in addition to the amount referred to in sub-section (1),] to the Commissioner, in cash, an amount calculated at the rate specified in section 6 of the Sick Textile Undertakings (Taking Over of Management) Act, 1972 (72 of 1972), for the period commencing on the date on which such management was taken over by the Central Government and ending on the appointed day.
- (3)In relation to the sick textile undertakings, the management of which was taken over by the Central Government under the Sick Textile Undertakings (Taking Over of Management) Act, 1972 (72 of 1972), there shall be paid by the Central Government [in addition to the amount referred to in sub-section (1),] to the Commissioner, in cash, such amount payable under section 6 of that Act as remains unpaid in relation to the period commencing on the date on which such management was taken over by the Central Government and ending on the appointed day.
- (4)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 in the Public Account of India, and thereafter the said deposit account shall be operated by the Commissioner.
- (5)Separate records shall be maintained by the Commissioner in respect of each sick textile undertaking in relation to which payments have been made to him under this Act.
- (6)Interest accruing on the amounts standing to the credit of the deposit account referred to in sub-section (4) shall inure to the benefit of the owners of the sick textile undertakings.
Summary
- The Central Government must pay the Commissioner the exact cash amount listed in the First Schedule within thirty days of a specified date.
- The government must also pay the Commissioner any extra sums owed to the owner under Section 9, as well as amounts calculated under Section 6 of the 1972 management takeover law.
- This money must be deposited into a special account in the Public Account of India, which the Commissioner then operates.
- The Commissioner has to keep separate records for every single sick textile undertaking.
- Any interest that grows on the money in this deposit account belongs to the previous owners of the undertakings.
Practical examples
FAQ
1. Where does the government deposit the money?
It must be deposited into a deposit account in the Public Account of India.
2. How much time does the government have to pay the Commissioner?
Thirty days from a date specified by the government.
3. Who keeps the interest earned on these deposits?
The interest benefits the owners of the sick textile undertakings.
Test yourself
Q1.Under Section 18 of The Sick Textile Undertakings (Nationalisation) Act, 1974, what is the deadline for the Central Government to pay the Commissioner the amount specified in the First Schedule?
Q2.Under Section 18 of The Sick Textile Undertakings (Nationalisation) Act, 1974, where must the Commissioner deposit the money received from the Central Government?
Q3.Under Section 18 of The Sick Textile Undertakings (Nationalisation) Act, 1974, what happens to the interest that accrues on the money in the deposit account?
Q4.Under Section 18 of The Sick Textile Undertakings (Nationalisation) Act, 1974, the payment to the Commissioner must include sums due under sub-sections (1) and (2) of Section 9. How does this reference to Section 9 alter the total payment made by the Central Government?