(1) Every licensee may, within three months of the receipt of an order under sub-section (1) of section 4, intimating the vesting date, appoint an individual who may be the managing agent or a director or a managing director or a manager or an officer of the licensee or any other individual to acts as his sole and accredited representative in connection with the handing over of the undertaking or the fixed assets, as the case may be, to the State Government and performing on behalf of the licensee the functions hereinafter specified.
(2) Where the licensee is a company as defined in the Companies Act, 1956 the appointment of the accredited representative shall be made by the shareholders of the company at a meeting specially convened for the purpose.
(3) Where the accredited representative resigns or dies or becomes incapable of acting or is in the opinion of the State Government, incompetent or dishonest or where the appointment of such representative is set aside or declared void by competent authority, the State Government shall call upon the licensee to appoint, within six weeks, another individual as his accredited representative.
(4) The remuneration of, and the expenditure incurred by, the accredited representative shall be payable from the compensation payable under this Act and shall have priority over all other debts and liabilities.
(5) All assurances conveyed, and all statements made, by such representative (inclusive of a representative whose appointment is subsequently se aside on declared void by competent authority) shall be binding on the licensee.
(6) Where the licensee does not appoint an individual to act as his sole and accredited representative under sub-section (1) or sub-section (2) the functions hereinafter assigned to the accredited representatives shall be performed by the licensee ; and all references in the rest of this Act to the accredited representative shall be construed as references to the licensee and any reference to a period of time to be reckoned from the date of appointment of the accredited representative shall in such a case, be reckoned from the last date on which such accredited representative could have been appointed.
8. Where the State Government is of opinion that any licensee has on or after the appointed day disposed of any fixed asset whether by way of sale, exchange, gift, lease or otherwise or incurred capital expenditure otherwise that in the normal course of events with a view to benefit unduly the licensee or some other person and thereby caused loss to the State Government as succeeding owners of the undertaking, the State Government shall be entitled to deduct from the compensation, payable to the licensee under this Act, an amount which it considers to be the loss sustained by it :
Provided that notice of the intention of make such deduction shall be or shall have been given to the licensee within one year from the vesting date.
9. The State Government shall be entitled to deduct the following sums from the compensations payable under this Act to a licensee :-
(a) the amount, if any, already paid in advance by way of compensation ;
(b) the amount, if any, specified in section 8 ;
(c) the amount due, if any, from the licensee to the Gujarat Electricity Board for energy supplied by the Gujarat Electricity Board before the vesting date ;
(d) all other amounts and arrears of interest, if any thereon due form the licensee to the State Government, except loans and arrears from interest, if any, thereon ;
(e) the amount, if any, equivalent to the loss sustained by the State Appointment of a sole representative.
Effect of transactions not bonafide.
Deductions from the compensations.
[1969 : Guj. 7 Gujarat Electricity Supply Undertakings (Acquisition) Act, 1969 Government by reasons of any property or rights belonging to the undertaking not having been handed over to the State Government, the amount of such loss being deemed to be the market value on the vesting date of such property or rights, together with any income which might have been realized by the State Government if the property or rights had been handed over on the vesting date.
10. Notwithstanding anything to the contrary in any contract or agreement or in any law for the time being in force, all loans, debentures, mortgages and the like outstanding against the licensee on the vesting date may be repaid by the State Government or the licensee, although the time for their repayment may or might not have arrived.