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State of West Bengal - Section

Section 8 in The Oriental Gas Company Act, 1960

8. Compensation.

(1)In respect of the taking over of the management and control under section 3, or acquisition under section 7, of the undertaking of the Company, there shall be paid by the State Government to the Company compensation to be determined under sub-section (2), in accordance with the following principles, namely:-
(a)in the case of the taking over of the management and control of the undertaking of the Company, the annual compensation payable shall be a sum representing the average of the net annual income of the undertaking of the Company over a period of three accounting years ending in June, 1960;
(b)in the case of acquisition of the undertaking of the Company, the compensation payable by the State Government shall be a sun representing eight times the average net income of the undertaking of the Company over a period of five complete years preceding the year in which the undertaking of the Company has been transferred to the State Government under clause (a) of section 4 for the purpose of management and control.
Explanation. - In this sub-section, "net annual income of the undertaking of the Company" means the difference between the amount of gross revenue receipts and other general receipts accountable in the assessment of Indian income-tax arising from, and ancillary or incidental to, the business of the Company and the amount of expenditure incurred on the following -
(a)rents, rates and taxes,
(b)interest on loans and security deposits,
(c)maintenance and repair,
(d)collection charges,
(e)cost of management, including the remuneration of Managing Agents, if any,
(f)other expenses admissible under the law for the time being in force in the assessment of Indian income-tax and arising from, and ancillary or incidental to, the business of the Company.
Sub-Section (1) substituted by W.B. Act 6 of 1970, w.e.f. 1.10.1960. which was earlier as under:-"(1) In respect of the taking over of the management and control, under section 3, or acquisition under section 7, of the undertaking of the Company, and there shall be paid by the State Government to the Company compensation to be determined under sub-section (2), as follows, that is to say, -(a) in the case of the taking over of the management and control of the undertaking of the Company, the annual compensation payable shall be a sum calculated at two per centum of the sum representing the purchase price of the undertaking of the Company reduced by such depreciation as may be allowed by the Tribunal referred to in sub-section (2) after considering the period and the nature of the use and the present condition of the properties concerned on the appointed day:(b) in the case of acquisition of the undertaking of the Company, the total compensation payable shall be. -a sum representing the purchase price of the undertaking of the Company reduced by such depreciation as may be allowed by the Tribunal referred to in sub-section (2) after considering the period and the nature of the use and the present condition of the properties concerned on the date of vesting in the State Government under section 7,ora sum representing eight times the average net income of the undertaking of the Company over a period of five complete years preceding the year in which the undertaking of the Company has been transferred to the State Government under clause (a) of section 4 for the purpose of management and control,whichever is less.Explanation.- In this sub-section -(i) "purchase price of the undertaking of the Company" means the aggregate of the prices of the different parts of the undertaking of the Company at the respective dates on which such parts were purchased, acquired or constructed by the Company:(ii) "net income of the undertaking of the Company" means the difference between the amount of gross revenue receipts and other general receipts accountable in the assessment of Indian income-tax arising from, and ancillary or incidental to, the business of the Company and the amount of expenditure incurred on the following -(a) rents, rates and taxes,(b) interest on loans and security deposits,(c) maintenance and repair,(d) collection charges.(e) cost of management, including the remuneration of managing agents, if any,(f) other expenses admissible under the law for the time being in force in the assessment of Indian income-tax and arising from, and ancillary or incidental to, the business of the Company, and(g) such other expenses as may be prescribed by rules made under this Act.
(2)The compensation payable in respect of the taking over under section 3 of the management and control, or in respect of the acquisition under sub-section (1) of section 7, of the undertaking of the Company or the amount payable by the Company under sub-section (3) of section 7 for the additions made by the State Government at its own cost to the undertaking of the Company shall be determined by a Tribunal which shall be appointed by the State Government consisting of a person who is or has been a Judge of a High Court, or a District Judge or an Additional District Judge and such Tribunal shall make an award in respect of the compensation so determined.
(3)The State Government may appoint one or more persons possessing knowledge of any matter relating to the inquiry to assist the Tribunal in determining the compensation.
(4)The Tribunal shall have the powers of a civil court while trying suits under the Code of Civil Procedure, 1908, in respect of the following matters:-
(a)summoning and enforcing the attendance of any person and examining him on oath,
(b)requiring the discovery and production of documents,
(c)receiving evidence on affidavits, and
(d)issuing commissions for the examination of witnesses or documents.
(5)Any party aggrieved by the award of the Tribunal made under sub-section (2) may appeal to the High Court within thirty days from the date of such award.