(1) The amount of compensation payable under section 6 shall in the first instance be payable out of the seven and a half per cent.
of the surplus referred to in sub-section (1) of section 49 of the Insurance Act earned by the insurer during the period the management of the controlled business of the insurer vests in the Central Government, and where such compensation or any part thereof cannot be so paid out the Central Government shall make due provision for the payment of such compensation or part thereof as the case may be.
(2) The compensation payable under section 6 shall be distributed among the persons entitled thereto by the Central Government in such manner as may be prescribed by rules made in this behalf:
rnpensa- •n, how to paid and Bfrtbutcd.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY
Provided that in the caso of an insurer who is a company the Central Government shall have due regard to the wishes of the members expressed by them at any general meeting convened for the rmrrjose.
8. If any person—
(a) fails to deliver to the Custodian any books of account, registers or any other documents in his custody relating to the controlled business of an insurer in respect of the management of which the Custodian has been appointed; or
(b) retains any property of such insurer appertaining to the controlled business of the insurer; or
(e) fails to comply with the provisions contained in subsection (3) or subjection (5) or sub-section (6) of section 3; or
(d) fails to comply with any directions issued under subsection (1) or sub-section (7) of section 3;
he shall be punJsbable with imprisonment which may extend to six months, or with fine which may extend to one thousand rupees, or with both.
Penalties.
% No proceeding for the winding up of an insurer the management of whoso controlled business has vested in the Central Govern* ment under this Ordinance or for the appointment of a Receiver in respect of such business shall lie in any court.
Insurer no to be woU' up by cou
10. In computing the period of limitation prescribed by any law for the time being in force for any suit or application against any person by an insurer in respect of any matter arising out of his controlled business, the time during which this Ordinance is in force shall be excluded.
Exclusion * time of Ordinanc for compi, ting peno of limitflti 11, The provisions of this Ordinance shall have effect notwithstanding anything inconsistent therewith in any other law or In any instrument having effect by virtue of any other law.
Effect of " Ordinanc on other laws.
12. The Central Government may, by notified order, direct that all or any of the powers exercisable by it under this Ordinance may also be exercised by any such person as may be specified in the order.
Oelegttte )f power