Chaparmukh Silghat Railway Line and the Katakhal Lalabazar Railway Line (Nationalisation) Act : PAYMENT OF

Chaparmukh Silghat Railway Line and the Katakhal Lalabazar Railway Line (Nationalisation) Act,1982

Act No : 36

Section : PAYMENT OF AMOUNT

SECTION 06: PAYMENT OF AMOUNT

( 1 ) For the transfer to, and vesting in, the Central Government, under S. 3, of the right, title and interest of each of the two specified companies in relation to its undertakings there shall be paid in cash by the Central Government before the expiry of a period of three months from the appointed day,-

(i) to the Chaparmukh Silghat Railway Company Limited, an aggregate amount of rupees ten lakhs and fifty thousand; and

(ii) to the Katakhal Lalabazar Railway Company Limited, an aggregate amount of rupees nine lakhs.

(2) Notwithstanding anything contained in sub-section (1), out of the amount referred to in clause
(i) of that sub-section, the Central Government shall deduct, in the first instance, any amount due from the Chaparmukh-Silghat Railway Company Limited to that Government and the liability of that company shall, to the extent of such deduction, stand discharged and such deduction shall have priority over all other debts secured or unsecured.

(3) Notwithstanding anything contained in sub-section (1) out of the amount referred to in clause
(ii) of that sub-section, the Central Government shall deduct, in the first instance, the amount due from the Katakhal-Lalabazar Railway Company Limited in respect of the secured debentures issued by that company and shall pay the sums so deducted for the redemption of such debentures and the liability of that company in relation to the said debentures shall, to the extent of such deduction, stand discharged and such deduction shall have priority over all debts, secured or unsecured.