Section 9 in Madura Sugars Limited (Acquisition and Transfer of Undertaking) Act, 1984
9. Payment of amount.
(1)For the transfer to, and vesting in, the Government under section 4, of the undertaking and the right, title and interest of the Company in relation to its undertaking, there shall be paid by the Government to that Company in cash and in the manner specified in Chapter VI, the aggregate value of the sums specified in sub-sections (2) and (3).(2)The Government shall pay as amount,-(a)for any sugar stocks comprised in the undertaking their value, which shall be calculated-(i)in the case of levy sugar stocks, at the price determined by the Central Government, from time to time; and(ii)in the case of other sugar stocks, at the ex-factory market price prevailing immediately before the appointed day, minus excise duty and cess;(b)for the acquisition of any stocks of molasses comprised in the undertaking, their value calculated at the price prevailing immediately before the appointed day;(c)for the acquisition of any stocks of sugarcane comprised in the undertaking, the actual cost of their purchase;(d)for the acquisition of any sugar in the process of production or any bagasse or presumed comprised in the undertaking, its market value as may be agreed upon between the Government and the persons interested, and failing such agreement, as may be determined by the prescribed authority.(3)In addition to the amount, if any, payable under sub-section (2) for the acquisition of the properties and assets referred to in that sub-section, the Government shall pay as amount for the acquisition of the undertaking such sum as maybe determined by the prescribed authority. In determining the amount under this sub-section, the prescribed authority shall have regard to-(i)the book value of all completed works in beneficial use pertaining to the undertaking and vested in the Government under section 4,less depreciation calculated in accordance with the First Schedule;(ii)the book value of all works in progress vested in the Government under section 4;(iii)the book value of all stores including spare parts vested in the Government under section 4 and in the case of used stores and spare parts, such amount as may decided upon by mutual agreement between the Government and the Company;(iv)the book value of all other fixed assets in use on the vesting date which have vested in the Government under section 4, less depreciation calculated in accordance with the First Schedule;(v)the book value of all plant and equipment existing on the vesting date, but no longer in use owing to wear and tear or to obsolescence, to the extent such value has not been written off in the books of the undertaking less depreciation calculated in accordance with the Firs Schedule;(vi)the book value of all intangible assets to the extent such value has not been written off in the books of the undertaking.Explanation. - For the purposes of this sub-section, the book value of any fixed asset means its original cost, and shall comprise-(a)the purchase price paid by the undertaking for the asset, including the cost of delivery and all charges properly incurred in erecting and bringing the asset into beneficial use as shown in the books of the undertaking;(b)interest charges on capital expenditure incurred from borrowed money and shown in the books of the undertaking as property attributable to the asset up to the date of bringing it into beneficial use, at a rate not exceeding six per cent per annum;(c)cost of supervision actually incurred, but not exceeding fifteen per cent of the sum referred to in clause (i).
