(1) Where any liability of either of the two companies arising out of any item specified in Category I of the Second Schedule is not discharged fully by the Commissioner out of the amounts paid to him under this Act, the Commissioner shall intimate in writing to the Central Government the extent of the liability which remains undischarged, and to that extent the liability shall be assumed by the Central Government.
(2) The Central Government may, by order, direct that Government company to take over any liability assumed by that Government under sub-section (1) and on receipt of such direction, it shall be the duty of the Government company to discharge such liability.