(1) For the transfer to, and vesting in, the Central Government, under section 3, of the right, title and interest of the Company in relation to its undertakings, there shall be paid in cash by the Central Government, before the expiry of a period of three months from the appointed day to the Company, an amount equal to a sum of nineteen lakhs twenty nine thousand five hundred and forty-two rupees.
(2) Notwithstanding anything contained in sub-section(1), out of the amount referred to in that sub-section, the Central Government shall deduct, in the first instance, any amount due from the Company to that Government and the State Bank of Travancore constituted under section 3 of the State bank of India(Subsidiary Banks) Act, 1959 (38 of 1959) and the liability of that Company shall, to the extent of such deductions, stand discharged and such deductions shall have priority over all other debts, secured or unsecured.
Section 7 - Interest
The amount referred to in sub- section (1)of section 6 as reduced by the deductions under sub-section (2)of that section, shall, if not paid to the Company before the expiry of the period specified in the said subsection (1), carry simple interest at the rate of four percent per annum for the period commencing on the appointed day and ending on the date on which payment of such amount as so reduced is made by the Central Government to the Company:
Provided that if the amount as so reduced is tendered to the Company. But not accepted by it, no interest shall run from the date of such tender.