(1) Within one month of his appointment, or such further time as may be granted by the Government, the accredited representative shall intimate to the Government in writing which basis of compensation, A, B or C, shall be adopted in respect of the undertaking.
Choice of basis of compensation.
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(2) The choice of the basis of compensation once intimated to the Government shall not be open to revision except with their concurrence.
(3) Where no choice has been intimated on behalf of the undertaking within the time allowed by sub-section (1), the Government shall declare the basis under which compensation will be paid for the undertaking and that basis shall be binding on the licensee as if the choice had been duly made in accordance with the foregoing provisions.
(4) Where in respect of an undertaking taken over, the accredited representative has intimated to the Government in writing which basis of compensation, A, B or C, should be adopted in respect of the undertaking, such intimation shall be deemed to have been made under this section and shall not be open to revision except with the concurrence of the Government.
9. Where the Government are of opinion that any licensee has on or after the 1st October 1947, disposed of any fixed asset whether by way of sale, exchange, gift, lease or otherwise or incurred capital expenditure, otherwise than in the normal course of events with a view to benefit unduly the licensee or some other person and thereby caused loss to the Government as succeeding owners of the undetaking, the Government shall be and shall be deemed always to have been entitled to deduct from the compensation payable to the licensee under this Act, an amout which they consider or considered to be the loss sustained by them:
Provided that notice of the intention to make such deduction shall be or shall have been given to the licensee within one year from the vesting date.
Effect of transactions bonafide.
14 [Act No. XV of 1954]