Question

What are the methods of recoupment of short workings ​

Answer 1

Answer:

Recoupment of Short-workings

Recoupment of Short-workingsThe right of Recoupment means the right given to the lessee by the lessor to carry-forward and set-off the short-workings from the surplus of royalties over the Minimum Rent. It can be of two types:

Recoupment of Short-workingsThe right of Recoupment means the right given to the lessee by the lessor to carry-forward and set-off the short-workings from the surplus of royalties over the Minimum Rent. It can be of two types:Fixed Right of Recoupment: When the lessor allows the lessee to adjust the short-workings only for a fixed period of time, it is known as Fixed Right of Recoupment.

2.Floating Right of Recoupment: When the lessor allows the lessee to adjust the short-working of any year in the next two or three years, it is known as the Floating Right of Recoupment.