Section 16 of The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986
Payment by the Central Government to the Commissioner.
- (1)The Central Government shall, within thirty days from the specified date pay in cash to the Commissioner, for payment to the Company, an amount equal to the amount specified in section 8 and the amounts payable to the Company under section 9.
- (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 interests 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 Company.
Summary
- The Central Government has a strict thirty-day deadline, starting from a specified date, to give the Commissioner the money owed to the Company.
- The total cash given must include the fixed amount from Section 8 and the extra amounts calculated under Section 9.
- The Government will open a special deposit account in the Public Account of India specifically in the Commissioner's name.
- The Commissioner must deposit all the money received into this account and is responsible for operating it.
- Any interest that builds up on the money while it sits in this deposit account legally belongs to the Company.
Practical examples
FAQ
1. How much time does the Government have to hand the money over to the Commissioner?
They must pay the cash to the Commissioner within thirty days from the specified date.
2. Where is this massive amount of money kept safely?
The Central Government opens a deposit account in the Public Account of India for the Commissioner to operate.
3. Who gets the extra money if the account earns interest before it's paid out?
The interest accruing on the deposit account enures to the benefit of the Company.
Test yourself
Q1.Under Section 16 of The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986, what is the deadline for the Central Government to pay the required cash to the Commissioner?
Q2.Section 16 of The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986 references payments made under Sections 8 and 9. According to the text of Section 16, who is the ultimate intended recipient of these funds once the Commissioner receives them?
Q3.Under Section 16 of The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986, where exactly must the Central Government open the deposit account for the Commissioner?
Q4.Under Section 16 of The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986, who legally benefits from the interest that grows on the money sitting in the Commissioner's deposit account?