Bare Acts

CHAPTER VI COMMISSIONER OF PAYMENTS


20. Commissioner of Payments to be appointed.—(1) For the purpose of disbursing the amounts
payable to the owner of each coking coal mine or coke oven plant, the Central Government shall appoint
such person as it may think fit to be the Commissioner of Payments.
1
[(2) The Central Government may appoint such other persons as it may think fit to assist the
Commissioner and thereupon the Commissioner may authorise one or more of such persons to also
exercise all or any of the powers exercisable by him under this Act, and different persons may be
authorised to exercise different powers.
(2A) Any person authorised by the Commissioner to exercise any powers may exercise those powers
in the same manner and with the same effect as if they have been conferred on that person directly by this
Act and not by way of authorisation.]
(3) The salaries and allowances of the Commissioner and other persons appointed under this section
shall be defrayed out of the Consolidated Fund of India.
21. Payment by the Central Government to the Commissioner.—(1) The Central Government
shall, within thirty days from the specified date, pay, in cash, to the Commissioner, for payment to the
owner of a coking coal mine or coke oven plant, a sum equal to the sum specified against the coking coal
mine or coke oven plant, as the case may be, in the First Schedule or the Second Schedule together with
the amount and interest, if any, referred to in section 12.
(2) In addition to the sum referred to in sub-section (1), the Central Government shall pay, in cash, to
the Commissioner, such amount as may become due to the owner of a coking coal mine or coke oven
plant in relation to the period during which the management of the coking coal mine or coke oven plant
remained vested in the Central Government 2
[and simple interest at the rate of four per cent. per annum
on such amount for the period commencing on the 1st day of April, 1973 and ending on the date of
payment of such amount to the Commissioner].
(3) The Commissioner shall open an d operate an account in a scheduled bank in respect of each
coking coal mine or coke oven plant.
(4) Every amount paid to the Commissioner shall be deposited to the credit of the account, referred to
in sub-section (3), of the coking coal mine or coke oven plant to which the payment relates.
(5) Interest accruing on the amount standing to the credit of the account referred to in sub-section (3)
shall enure to the benefit of the owner of the coking coal mine or coke oven plant, as the case may be
2
[and shall also be payable to the Commissioner in addition to the sum referred to in sub-section (1).]
(6) References in this section to the owner of a coking coal mine shall, in relation to a group of
coking coal mines specified in the First Schedule, be construed as references to the owner of that group of
coking coal mines.

1. Subs. by Act 22 of 1978, s. 3, for sub-section (2) (w.e.f. 27-5-1978).
2. Ins. by Act 57 of 1986, s. 7 (w.e.f. 1-5-1972).
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22. Statement of accounts in relation to the period of management by the Central Government,
etc.—(1) The Central Government or the Government company, as the case may be, shall cause the books
in relation to each coking coal mine or coke oven plant, the management of which has vested in it under
the Coking Coal Mines (Emergency Provisions) Act, 1971 (64 of 1971), to be closed and balanced as on
the 30th day of April, 1972, and shall cause a statement of accounts, as on that day, to be prepared, within
such time, in such form and in such manner as may be prescribed, in relation to each such mine or plant in
respect of the transactions effected by it during the period for which the management of such coking coal
mine or coke oven plant remained vested in it:
Provided that where two or more coking coal mines or coke oven plants were owned, before the
commencement of this Act, by the same owner, a consolidated statement of accounts may be prepared for
all the coking coal mines or coke oven plants owned by such owner.
(2) All amounts received by the Central Government or the Government company after the closure of
such accounts shall, where such amounts relate to transactions effected before the appointed day, be
included in the said statement of accounts in respect of the coking coal mine or coke oven plant to which
the said receipt relates.
(3) The Central Government or the Government company in which the right, title and interest of the
coking coal mine or coke oven plant stands vested shall be entitled to receive, up to the specified date, to
the exclusion of all other persons, any money, due to the coking coal mine or coke oven plant, as the case
may be, realised after the appointed day notwithstanding that the realisations pertain to a period prior to
the appointed day:
Provided that where such realisations have not been included in the statement of accounts as on the
30th day of April, 1972, a supplementary statement of accounts shall be prepared and furnished, at such
intervals as may be prescribed, by the Central Government or the Government company to the owner of
the coking coal mine or the coke oven plant, as the case may be.
1
[(4) The liabilities of the coking coal mine or the coke oven plant (not being liabilities arising out of
advances made by the Central Government or the Government company), which could not be discharged
by the appointed day, may be discharged by the Central Government or the Government company up to
the specified date out of the realisations effected before or after the appointed day or out of advances or
borrowings made up to the specified date and every payment so made shall be included in the statement
of accounts as on the date immediately before the appointed day indicating therein the period in relation
to which the payments were made and the payments so made shall not be called in question in any court:
Provided that the liabilities in relation to the period prior to the appointed day, which have not been
discharged on or before the specified date, shall be the liabilities of the owner of the coking coal mine or
the coke oven plant, as the case may be.]
(5) A copy of each statement of accounts prepared under this section shall be delivered by the Central
Government or the Government company, as the case may be, to the Commissioner and also to the
owner:
Provided that where the number of owners is more than one, only one copy of the statement of
accounts shall be given to the owners for the benefit of all of them.
(6) The statement of accounts prepared under this section shall be audited by a person
who is qualified to be appointed as an auditor of a company under section 226 of the Companies Act,
1956 (1 of 1956) and the auditor so appointed shall receive, from the funds of the coking coal mine or
coke oven plant, as the case may be, such remuneration as the Central Government may fix.
(7) The audit of the statement of accounts shall be conducted in such manner as the Central
Government may direct.
2
[(8) The statement of accounts audited under sub-section (6) shall, unless the contrary is proved, be
conclusive proof in respect of every matter entered therein.

1. Subs. by Act 57 of 1986, s. 8, for sub-section (4) (w.e.f. 1-5-1972).
2. Ins. by s. 8, ibid. (w.e.f. 1-5-1972).
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Explanation.—For the purposes of this section, “statement of accounts” means a statement in the
form of receipts and payments, and does not include any statement that may be prepared as a result of the
closing and balancing of the books for the preparation of the profit and loss account and balance-sheet or
any statement prepared in accordance with the normal commercial practice.]
1
[22A. Validation of certain collections.—(1) Notwithstanding anything contained in section 3, as
amended by section 2 of the Coal Mines Nationalisation Laws (Amendment) Act, 1978 (22 of 1978), any
money collected by the Central Government or the Government company during the period commencing
on the appointed day and ending with the date specified under sub-section (3) of section 22 shall be
deemed to have been validly collected by the Central Government or the Government company, as the
case may be, and any such money shall be applied in accordance with the provisions of section 22.
(2) Any money collected as aforesaid shall not be called in question in any court of law.]
23. Claims to be made to the Commissioner.—(1) Every person having a claim against the owner
of a coking coal mine or coke oven plant shall prefer such claim before the Commissioner within thirty
days from the specified date:
Provided that if the Commissioner is satisfied that the claimant was prevented by sufficient cause
from preferring the claim within the said period of thirty days, he may, on the expiry of the said period of
thirty days, entertain the claim within a further period of thirty days, but not thereafter.
2
[(1A) Without prejudice to the provisions of sub-section (1), claims in relation to a provident fund,
pension fund, gratuity fund or any other fund established for the welfare of the persons employed by the
owner of a coking coal mine or group of coking coal mines or a coke oven plant may be filed on behalf of
the persons so employed by the Coal Mines Provident Fund Commissioner appointed by the Central
Government under section 3C of the Coal Mines Provident Fund, Family Pension and Bonus Schemes
Act, 1948 (46 of 1948); 3
[and claims in relation to any other matter may be filed on behalf of all or any of
the persons so employed or any group of such persons, by any Trade Union, registered under the Trade
Unions Act, 1926 (16 of 1926), or, where no such claim has been filed by any Trade Union, by the Chief
Labour Commissioner (Central) appointed by the Central Government or any officer subordinate to him;]
and the claims so made shall be deemed to have been made by the persons having a claim against the
owner of a coking coal mine or group of coking coal mines or a coke oven plant, as the case may be:
Provided that no such claim shall be made by the Coal Mines Provident Fund Commissioner 3
[or the
Trade Union or the Chief Labour Commissioner (Central) or any officer subordinate to him,] in relation
to a person who has already made a claim under sub-section (1).]
4
[(1AA) Where any claim, not being a claim which was time-barred on the 17th day of October, 1971,
was preferred under sub-section (1) within the period specified therefor and was rejected merely on the
ground that such claim was time-barred, such claim shall be deemed not to have been rejected and the
Commissioner shall restore on his file such claim and shall deal with it in the manner specified in this
section.]
(2) Notwithstanding anything contained in any other law for the time being in force, there shall be
paid in priority to all other unsecured debts, not being the amounts advanced by the Central Government
or the Custodian appointed under the Coking Coal Mines (Emergency Provisions) Act, 1971 (64 of 1971),
for the management of the coking coal mine or coke oven plant, as the case may be,—
(a) all wages or salary (including wages payable for time or piece work and salary earned wholly
or in part by way of commission) of any employee, in respect of services rendered to the coking coal
mine or coke oven plant, as the case may be, and any compensation payable to any workman under
any provisions of Chapter VA of the Industrial Disputes Act, 1947 (14 of 1947);
5
* * * * *

1. Ins. by Act 22 of 1978, s. 4 (w.e.f. 27-5-1978).
2. Ins. by Act 41 of 1973, s. 5 (w.e.f. 1-5-1972).
3. Ins. by Act 22 of 1978, s. 5 (w.e.f. 1-5-1972).
4. Ins. by s. 5, ibid. (w.e.f. 1-11-1973).
5. Clause (b) omitted by Act 41 of 1973, s. 5 (w.e.f. 1-5-1972).
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(c) all amounts due in respect of any compensation or liability for compensation under the
Workmen’s Compensation Act, 1923 (8 of 1923) in respect of the death or disablement of any
employee of the coking coal mine or coke oven plant unless such mine or plant has, under such a
contract with insurers as is mentioned in section 15 of the said Act, rights capable of being transferred
to, and vested in, the workmen;
1
[(d) all sums deducted by the employer from the salary or wages of any workman or other
employee of the coking coal mine or group of coking coal mines or coke oven plant, as the case may
be, for credit to any provident fund, or any other fund established for the welfare of such workmen or
other employees but not deposited to the credit of the said fund;]
(e) all sums due to the State Government 2
[including royalty, rent and dead rent.]
(3) The debts specified in sub-section (2) shall rank equally among themselves and be paid in full,
unless the assets are insufficient to meet them, in which case they shall abate in equal proportions and be
paid accordingly.
(4) The Commissioner shall fix a certain date on or before which every claimant shall file the proof of
his claim or be excluded from the benefit of the disbursements made by the Commissioner.
(5) Not less than fourteen days’ notice of the date so fixed shall be given by advertisement in one
issue of the daily newspaper in the English language and one issue of such daily newspaper in the
regional language as the Commissioner may consider suitable, and every such notice shall call upon the
claimant to file the proof of his claim with the Commissioner within the time specified in the
advertisement.
(6) Every claimant who fails to file the proof of his claim within the time specified by the
Commissioner shall be excluded from the disbursements made by the Commissioner.
(7) The Commissioner shall, after such investigation as may, in his opinion, be necessary and after
giving the owner of the coking coal mine or coke oven plant, as the case may be, an opportunity of
refuting the claim and after giving the claimant a reasonable opportunity of being heard, in writing admit
or reject the claim in whole or in part.
(8) The Commissioner shall have the power to regulate his own procedure in all matters arising out of
the discharge of his functions including the place or places at which he will hold his sittings and shall, for
the purpose of making any investigation under this Act, have the same powers as are vested in a civil
court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following
matters, namely:—
(a) the summoning and enforcing the attendance of any witness and examining him on oath;
(b) the discovery and production of any document or other material object producible as
evidence;
(c) the reception of evidence on affidavits;
(d) the issuing of any commission for the examination of witnesses.
(9) Any investigation before the Commissioner shall be deemed to be a judicial proceeding within the
meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Commissioner shall be
deemed to be a civil court for the purposes of section 195 and Chapter XXXV of the Code of Criminal
Procedure, 1898 (5 of 1898).
3
[(9A) The Commissioner may, on receipt of a claim,—
(a) elect to settle the claim himself; or
(b) transfer the claim for settlement to a person authorised in this behalf under sub-section (2) of
section 20; or
(c) withdraw the claim from the person referred to in clause (b) and either settle the claim
himself or transfer it for disposal to any other person who has been authorised in this behalf under
sub-section (2) of section 20.]

1. Subs. by Act 41 of 1973, s. 5, for clause (d) (w.e.f. 1-5-1973).
2. Subs. by s. 5, ibid., for “as royalty, rent or dead rent, as the case may be” (w.e.f. 1-5-1973).
3. Ins. by Act 22 of 1978, s. 5 (w.e.f. 27-5-1978).
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(10) 1
[A claimant or owner who is dissatisfied with the decision of the Commissioner may prefer an
appeal, within a period of sixty days from the date of the decision,] to the principal civil court of original
jurisdiction within the local limits of whose jurisdiction the coking coal mine or coke oven plant, as the
case may be, is situated:
2
[Provided that where a person who is a Judge of a High Court is appointed to be the Commissioner,
such appeal shall lie to the High Court for the State in which the coking coal mine or coke oven plant, as
the case may be, is situated, and such appeal shall be heard and disposed of by not less than two Judges of
that High Court:]
3
[Provided further that any appeal which has not been preferred before the date on which the Coal
Mines Nationalisation Laws (Amendment) Act, 1978 (22 of 1978), receives the assent of the President,
shall be preferred within a period of sixty days from such date.]
4
[23A. Application of sections 5 and 12 of the Limitation Act.—The provisions of sections 5 and
12 of the Limitation Act, 1963 (36 of 1963), shall, so far as may be, apply to appeals under section 23.]
24. Disbursement of money by the Commissioner.—Where the total amount of the claim admitted
by the Commissioner does not exceed the total amount of the money credited to the account of a coking
coal mine or coke oven plant, every such admitted claim shall rank equally among themselves and be paid
in full, and the balance, if any, shall be paid to the owner, but where such amount is insufficient to meet in
full the total amount of the admitted claims, every such claim shall abate in equal proportions and be paid
accordingly.
5
[24A. Interest on admitted claims.—Notwithstanding any award, decree or order of any court,
tribunal or other authority, passed before the appointed day, in relation to any coking coal mine or coke
oven plant, where any amount is payable in respect of a claim admitted under this Act, the interest
payable on such amount for any period after the appointed day shall be at such rate not exceeding the rate
of interest accruing on any amount deposited by the Commissioner under section 21.]
6
[25. Recovery of excess payments made by Central Government or Custodian.—Any amount in
excess of payments over receipts in the statement of accounts prepared under section 22 shall be deemed
to be an amount advanced by the Central Government or the Custodian, as the case may be, for the
management of a coking coal mine or a coke oven plant during the period in which the management of
such mine or plant remained vested in the Central Government and the Central Government may make a
claim to the Commissioner for such excess payment and such claim shall have priority over the claims of
all other unsecured creditors of the coking coal mine or coke oven plant.
Explanation.—In this section, “Custodian” means the Custodian appointed under the Coking Coal
Mines (Emergency Provisions) Act, 1971 (64 of 1971).]
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[25A. Notice to owners of coking coal mines or coke oven plants and managing contractors,
etc.—(1) After meeting the liabilities of persons whose claims have been admitted under this Act, the
Commissioner shall notify, in such manner as he may think fit, the amount of money available with him
and specify in such notification a date within which the owners of the coking coal mines or coke oven
plants, the managing contractors and the owners of any machinery, equipment or other property which
has vested in the Central Government or a Government company under this Act and which does not
belong to the owners of the coking coal mines or coke oven plants may apply to him for payment.
(2) Where any application is made under sub-section (1), the Commissioner shall, after satisfying
himself as to the right of the applicant to receive the whole or any part of the amount, pay the amount to
the person concerned and in the event of there being a doubt or dispute as to the right of the person to
receive the whole or any part of the amount, the Commissioner shall deal with the application in the
manner specified in sub-section (1) of section 26.]

1. Subs. by Act 22 of 1978, s. 5, for certain words (w.e.f. 27-5-1978).
2. The proviso ins. by Act 41 of 1973, s. 5 (w.e.f. 1-5-1972).
3. The proviso ins. by Act 22 of 1978, s. 5 (w.e.f. 27-5-1978).
4. Ins. by s. 6, ibid. (w.e.f. 27-5-1978).
5. Ins. by s. 7, ibid. (w.e.f. 1-5-1972).
6. Subs. by Act 57 of 1986, s. 9, for section 25 (w.e.f. 1-5-1972).
7. Ins. by Act 22 of 1978, s. 8 (w.e.f. 27-5-1978).
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26. Disputes how to be dealt with.—(1) In the event of there being a doubt or dispute as to the right
of a person to receive the whole or any part of the amount referred to in sections 10, 11 and 12, the
Commissioner shall refer the matter to the court for a decision, and shall make the disbursements in
accordance with the decision of the court.
(2) In relation to a coking coal mine or coke oven plant, the operations of which were, immediately
before the 17th day of October, 1971 under the control of a managing contractor, the amount specified in
the First Schedule against such coking coal mine or in the Second Schedule against such coke oven plant
shall be apportioned between the owner of the coking coal mine or coke oven plant and such managing
contractor in such proportions as may be agreed upon by or between the owner and such managing
contractor, and in the event of there being no such agreement, in such proportions as may be determined
by the court.
1
[(3) Where the amount specified in the fifth column of the First Schedule is relatable to a group of
coking coal mines, the Commissioner shall have power to apportion such amount among the owners of
such group, and in making such apportionment, the Commissioner shall have regard to the highest annual
production in the coking coal mine during the three years immediately preceding the appointed day.]
Explanation.—In this section, “court”, in relation to a coking coal mine or coke oven plant, means the
principal civil court of original jurisdiction within the local limits of whose jurisdiction the coking coal
mine or coke oven plant is situated.
27. Undisbursed or unclaimed amounts to be deposited to the general revenue account.—Any
money paid to the Commissioner 2
[which remains undisbursed or unclaimed for a period of three years
from the day on which the last order for disbursement was made] shall be transferred by the
Commissioner to the general revenue account of the Central Government; but a claim to any money so
transferred may be preferred to the Central Government by the person entitled to such payment and shall
be dealt with as if such transfer had not been made, the order, if any, for payment of the claim being
treated as an order for the refund of revenue. 

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