(1) This Act may be called the Tinsukia an;:l Dibrugarh Electric Sup?lY _ Undertaa:ings (Acquisition) Act, 1973.
(2) It extends 'o the whole of the State of Assam.
(3) It shall be deemed to have come into force on the 27th day of September, 1972.
Dei~itions 2. In this Act, unless the context otherwise a11~ interpl'c· roq uirestanea.
(a) 'Annual Account' means the account of the undertaking rendered to the Gove nment annually under and in accordanc~ with the Electricity Act J
(b) 'Board' means the Assam State Electricity Board constituted under sect.on 5 of &he Electricity Supply Act;
(c) 'Document' in relation to an undertaktng, includes its books, accounts, registers, maps and plans;
(d) 'Electricity Act' means the Indian Electricity Ceatral Act .A.ct, 1910 a 9ef 1110-.
(•) 'Electricity Supply Act' means the Electricity Central Act Supply Act, 1948 ; ~ of 1941.
(f) 'Fixed assets' includes works, spare parts, stores, tools, motor and other >chicles, office equipment and furniture ;
I,. ·_, (~) 'Government' means the Government of Assam;
(h) 'Licensee' means the Tinsukia Electric Supply Company Ltd. and/or the Dibru· garh Electric Supply Uompany Private Ltd., as the case may be;
(i) 'Prescribed' means prescribed by rules under this .Act;
tj) 'Undertaking' means the Tinsukia Electric Supply Undertaking owned and managed by the Tinsukia E lectric Supply Company Ltd., and/or the Oibrugarh Electric Supply Undei taking owned and managed by the Dibru~arh Electric Supply Company Private Ltd., as the case may be ;
(k} 'Vesting date' means the 27th day of September, 1972, at ll·30J p.m., being the .. _ date and time when the undertaking shall - vest in the Government under section 4; · · · {l) 'Works' includes ele;tric sQ.pply lines and any lands, buildings, machinery or apparatus required to supply energy and to carry into effect the object of a licence granted under the Electricity Act ;
(m) Other expressions shall have the meanings respectively aHigned to them in the Electri city Act.
App]ication; S. (1) This Act shall apply to the undertaking1.
(2) Any notice given under any of the provision• - of th t' Electricity Act or the Electricity Supply Act to the licensee for the purchase of the undertaking and in pursuance or which notice the undertaking has ·not been purchased before the commencement of this -Act, shall lapse and be of no e:(fect.
Explanation :-There shall be no obligation on the · part of the Government or t~c Board to purchase any undertaking in pursuanc'e of any notice given as aforesaid, nor shall the service of such notice be deem.elil to prevent the Government from taking any proceei ing denovo in respect of the undertaking under this Act.
'1cstlac tlate1 -4.-. The Tinsukia and Dibrugarh Electric Supply undertakings shall be deemed to be transferred to, and shall vest in the Government, on the 27th day of September, 1972, at 11-30 P. M.
T sf f 5. The Government may, by an order in writi11.r, ~!rt:1i.~a tramfer the undertaking acquired under this Act to the te Board. Board on such te rms and conditions, as may be specified therein, and on such transfer the undertaking together with all assets, liabilit ies, rights and obliga tions which by virtue of this Act have devolved on the Government, shall thereupon vest and devolve on the Board.
or• s s 6. (l) The gross amount payable to a licensee, aa•u•t shall be the aggregate value of the amounts specified payallle to below:- Lieen•ec.
(i) the book value of all completed worka in beneficial use pertaimng to the undertak· ing and taken over by the Government (excluding works paid for by consumers) less depreciation calculated in accordane• with Schedule I ;
(ii)
(iii)
(iv) the book value of all works in progress taken over by the Government, excludin1 works paid for by consumers or prospective consumers;
the book value of an stores includin~ sparo .
parts taken over by the Government and in the case of used stores and spare parts.
if taken over, such sum as may be decided upon by the Government ;
the book value of all other fixed assets in use on the vesting date and taken over by.
the Government less depreciation calcu lated in accordance with Schedule I ;
{v) the book value of all plants and equipments existing on the vestin~ date, if tak.-n OV«a' - by the Government, but no longer in wic owing to wear and tear or to obsole1cence, to the extent such value has not IDeen written off in the books of the licensee less depreciation calculated in accordance:: with Schedule I;
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(vi) 4 the amount due from consumers in rcspecl of every hire-purchase agreement referred to in section 7(1) (ii) less a sum which bears to t1' .. difference between the total amount of the ins talments and the original cost of the material or equipment; the same proport· ion as the amount due bears to the total amo .. mt of the instalu1ents ;
(vii) any amnunt p .. id actually by the licensee in re~pect of every contract referred to in section 7 ( 1) (iii).
Explanation. : - The book value of any fixed asset means its original cost and shall comprise-
(i) the t:urchase price paid by the licensee for the aaset, including the cost of delivery and all charge. properly incurred in erecting and brin .. ing the dsset mto beneficial use as shown in the books of the undertaking;
(ii) the cost of supervision actually incurred but not excerding fifteen per cent of the amount referred to in pa1agraph \i):
Prcwided that hefore deciding the amocmt1 under this sub-sectiun, the licensee shall be given a n oppor tunity by the G0vernm nt of being heard, afrer giving him a no tice of at least 15 days therefor.
(2) In addition . a s· m equal to 10 per cent of the amounts assessed under la uses ( i) to (iv) of sub-sec tion (1) shall be paid to the licensee by the Govern ment,
(3) When am· assri is acquired by the licensee after the expiry 01 lhe period to which the latest annual accou11ts r lat ·, the book value of the asset shall be suc b as may b ~ de<:~ded up<m hy the Govern me11t:
Provided that bt>forr deciding the book value of any such assf'.'t, tht> licensee shall be given an oppor tunity hy the Govrrnmcnt of being heard, after giving him a notice of aL 1edst 15 d ays therefor.
V11tiaa of 7. (I) The :-lroperty, rights, liabilities and obligauii.dcr• ·k· tions specified below in respect of the undertaking mir. shall vest in the Government on the vesting date:-
(i) all the fixed assets of the licensee and all the document• xelating to the undertaking ;
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(ii) all the rights, liabilities and obligations o( · the licensee under hire-purchase agree· ments, if any, for the supply of materials or equipment made bona.fide before the vesting date; ·•
(iii) all the rights, liabilities and obligations of the licensee under any other contract entered into bona.fide before the vesting date, not being a contract relating to the borrow ing or lending of money, or to the employ· ment of staff.
(2) All the assets specified in su b-section (I) (i) shall vest in the Government free from any debts, mortgages or similar obligations of the licensee or attaching to the undertaking :
Provided that such debts, mortgages or obligations shall attach to the amount payable under this Act for the assets. /
(3) In the case of an undertaking which vests in the Government under this Act, the licence granted to it under Part II of the Electricity Act shall be deemed to have been terminated on the vesting date and all the rights, liabilities and obligations of the licensee under any agreement to supply eletricity entered into before that date shall devolve or shall be deemed to have devolved on the Government:
Provided that where any such agreement is not in conformity with the rates and conditions of s!!pply approved by the Government and in force on the vesting date, the agreement shall be voidable at the option of the Government.
(4) In respect of any undertaking to which section 4 applies, it shall be lawfol for the Govern• mentor their authorised representative on and after the vesting date, a fter removing any obstruction that may be or might have been offered, to take posses "lion of the entire undertaking, or as the case may be, the fixed assets and of all documents relating to the undertaking which the Government may require for carrying it on.
(5) All the liabilities and obligations, other than those vesting in the Government under sub-sections {l) and (3), shall continue to be the liabilities and obligations of the licensee, after the vesting date.
Explanation : All liabilities and obligations in respe~J of staff, taxes, provident fund, employees' I 6 state Insurance , industrial disputes and all other matters, upto and including the vesting date, shall continue to be the liabilities and obligations of the licensee, after the vesting date.
~~· •f 8. Where the Government are of opinion that aet i.e.raafiJ:. any licensee has on or after the 1st January, 1971, disposed of any fixed asset whether by way of sale, exchange, gift, lease or otherwis.e, or incurred any expenditure, liability or obliization 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 succee ding owners of the undertaking, the Government shall be entitled to deduct from the amount payable to the licensee under this Act, an amount which they consider to be the loss sustained by them :
Provided that before making such deduction, the licensee shall be given a notice within nine months of the vesting date to show cause against such deduction, within a period of fifteen days from the date of receipt of such notice.
Ji)eductions 9. The Government shall be entitled to deduct ft°;:oss the the following sums from the gross amount payable amnnt. under this Act to a licensee-:-
(a) the amount, if any, already paid in advance;
(b) the amount, if any, specified in section 8;
(c) the amount due, if any, including interest thereon, from the licensee to the Board, for energy supplied by the Board before the vestng date ;
(d) all amounts and arrears of interest, if any, thereon, due from the licensee to the Government ;
(e) the amount, if any, equivalent to the losa sustained by the Government by reason of any property or rights belonging to the un dertaking not having been handed over to the Government, the amount of such loss being deemed to be the amount by which the market value of such property or rights exceeds the amount payable therefore under this Act, together with any income which - might have been realised by the Govern ment, if the property or rights had been handed over on the vesting date;
( f) the amount of all loans due from the liccns~c t• any financial institutions constituted 9y or under the authority of the Government and arrears of interest, if any, thereon ; ·
(g) all sums paid by consumers by way of security deposit and arrears of interest due thereon on the vesting date, in so far as they have not been paid over by the licensee lo the Government, less the amounts which accor ding to the books of the licensee are due from the consumers to the licensee for energy supplied by him before that date ;
(h) all advances from consumers and prospective consumers, and all sums which have been or ought to be set aside to the credit of the consumer's fund, in so far as such advances or sums have not been paid over by th_e licensee to the Government ;
(i) the amounts remaining in Tariffs and Divi dends Control Reserve, Contingencies Re serve and the Development R(.serve, in so far as such amounts have not been paid over by the licensee to the Government ;
(j) the amount, if any, as $pecified in sectiOns 11 (2) and 11(3) ;
(k) the amount, if any, relating to debts, fnort gages or obligations as mentioned in proviso to st.ction 7 (2): -
Provided that before making any deduction under this section, the licensee shall be given a notice to show cause against such deduction, within a period of fifteen days from the date of receipt of such notice.
Mannu of 10. (1) The Government shall appoint, by order payment of in writing, a person having adequate knowledge and net amount. experience in matters relating to accounts, as Special Officer to assess the net amount payable under this . Act by the Goverl'lment to the licensee, alter making the deductions mentioned in section 9. · - ·
(2) The Special Officer may call for the assi•· tance of such Officers and staff of the Government or the Board or the undertaking as he may deem fit, in assessing the net amount payable.
(3) The net amount due to a licensee under -- this Act shall be paid by the Government to -the - licensee within one year from the vesting date :
Provided that this period may be suitably extended - by the Government if the licensee fails to furniah or delays the furnishing _ of _ accounts, information, particulars or documents as mentioned in section 12.
(4) The net amount payable shall bear interest at 4 per cent per annum from the vesting date:
Provided that no interest shall be payable during "dny extensions of time granted under the proviso to sub-section (3).
(5) Where the gross amount payable to the licensee is equal to or less than the total amount to be deducted under section 9, no payment shall be made to the licensee by the Government.
Provisions 11. (I) Every person who was genuinely employed for existing in connection with the affairs of an undertaking as its •.ta ff of employee immediately before the vesting date, shall licensee. become on the vesiting date an employee of the Government and thereafter an employee of the Board on the da te of transfer of the undertaking to the Board under section 5, and shall hold his service on the same terms and condition and with the same rights to pension, gratuity and other matters as would have been admissible to him if the undertaking had not been transferred to and vested in the Govern ment or the Board, as the case may be, and continue • to do so unless aud until his employment under the Government or the Board, as the case m ay be, is terminated or until his remuneration, terms or conditions are duly altered by the Government or the Board, as· the case inay be.
(2) If the licensee fails to pay such an employee his dues as immediately before the vesting date, the Government or the Board, as the case may be, may pay him these dues and the amount so paid shall be deducted from the amount payable by the Gov.ernment to the licensee.
(3) In case the Government or the Bo-ard, as the case may· be, retrench any such employee within a period of one year from the vesting date, the amount payable to such an employee on retrenchment shall be deducted from the amount payable by the Govern· ment to the: licensee.
(4) For the persons who immediately before the ve1ting date were the trustees for any -pensien, provident, irratuity or: other like fund constituted for the employees of the licensee, there may be substituted as trustees, such persons as the Government may, by ge1aeral or special order, specify.
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(5) Notwithstanding anything contained in [ the ~:n}"al 4~ct Industrial Disputes Act, 1947, or in any other law for 0 19 • the time being in force, the transfer of the services of any employee from the licensee to the Government or from the, Government to the Board, shall not entitle mch employee to any compensation under this Act or any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority.
(6) If any question arises as to whether or not any person was genuinely employed in connection with the affairs of the undertaking as its employee immediately before the vesting date, or whether or not the services of any person have been transferred to the Government or Board under this Act, it shall be decided by an officer authorised for this purpose by the Government and an appeal shall lie against his decision to the Government whose decision shall be final.
Inventory of 12 (1) The licensee shall, within ninety days from ';l5sfets t~nd the vesting date or such further time as may be granted 111 orma ion. "' th by the Government, prepare and hand over to em a complete inventory of all the fixed assets belonging to his undertaking and of its documents.
(2) The licensee shall also write up the accounts of his undertaking upto the vesting date, get them audited and submit them to the Govern ment within four months from 'that date or such fur ther time as may be granted by the Government.
(3) The licensee shall also, within such time as may be specified by the Government, furnish to them sucil information and particulars as may be required by the Government in regard to documents relating to the undertaking.
(4) The licensee shall not destroy any document relating to th~ undertaking and shall hand over to the Government on vesting date all such documents as are necessary for ascertaining the assets of the unaer taking, the rights, liabilities and obligations attaching thereto and for determining the amount payable or deductible in resp«:ct of tfie undertaking ufiqer this Act.
(5) Where the documents aforesaid have been t::iken possession of by the Government, the license~ or any person authorised by him in this behalf, shall have access to such documents at all reasonable times and shall also · be entitled to take copies tliereof or extracts therefrom. · Power of 13. Any employee of the Government or the entry. Board authorised in this behalf by general or special order by the Government, or the Special officer ,) Penalties.
10 appointed under section I 0 may, at any time after giving the licewee reasonable notice, enter upon any land or premises in his possession and make any survey, exa mination or investigation preliminary or incidental to the purposes of this Act.