(1) The occupier or owner of an oilpalm factory shall make suitable provision to the satisfactory of the Oilpalm Commissioner for the payment of the price of oilpalm FFB supplied to the factory.
(2) Upon the delievery of oilpalm FFB the occupier or owner of a factory shall be liable to pay within fourteen days from the date of such delivery the price of the price of the oilpalm FFB so supplied.
(3) The price of the oilpalm FFB remaining un-paid on the expiration of the period specified in sub-section (2) shall carry interest at fifteen per cent per annum from the date of delivery of oilpalm FFB and it shall be recovered as if it were an arrear of land revenue.
(4) If any occupier or owner of a factory fails to pay the price of the oilpalm FFB sold to him in accordance with the provisions of sub-section (2) or the interest payable under sub-section(3), he shall, in addition to the said price or the interest being recovered from him as an arrear of land revenue, be liable to the penalty provided for under clause
(b) of sub-section (4) of section 3 of the Essential Commodities Act, 1955, as if he has contravened a direction issued under that clause.
(5) Without prejudice to the provisions of the foregoing sub-sections, where the owner or occupier of a factory or any other person competent in that behalf, enters into an agreement with a bank under which the bank agrees to give advance to him on the security of palm oil produced or to be produced in the factory, the said occupier, owner or other person, as the case may be, shall provide in such agreement that such percentage which shall not be less than fifty per cent of the total amount of advance, as may be prescribed, shall be set apart and be available only for payment to oilpalm growers or other co-operative societies on account of the quantity of oilpalm FFB purchased or to be purchased for the factory from those oilpalm growers or from or through those societies and interest thereon and such societies commission in respect thereof.
(6) Every such occupier, owner or other person as aforesaid shall send a copy of every such agreement to the Oilpalm Commissioner within a week from the date on which it is entered into.