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Keyword(s):
Account Year, Annual Account, Electricity Act, Electricity Supply Act, Fixed Assets, Licensee, Undertaking Taken Over, Vesting Date, Works
1
- +.
951 : TO N. Act XxIx] 81Lctricit~ suppry 305 hdertakings (-4 cquisition)
\
THE TAMIL NADU ELECTRICI~FY SUPPLY UNDERTAmNGs (ACQUISITION) ACT, 1954.
TABLE OF CQNTENTS.
I
hhcrt title, extent and comrneetcernent. IkS7i*.j~% sriC! imve:&:: d&, App1uc.11 i o : ~ o f Act. Powzr of Government to take over any
Comyensdnllio~l pdydble to a licensee. Vesting of th,: undertaking or assets. Appointment. of a sole representative. Choic: of b2sis of compensation. Effcck of tral~sactions not bonafide. Deductions fcom the &mpzosation. M a ~ ~ n e r of pxyment or deposit of c0rnpo.n- sr? tion.
Repayment of debentures, loans , etc. Termination of managing agency.
Provisions for existing staff oflicensees. Inveiltory of assets and information in regard to doc~iments maintained by the hcenset. Offccces by corporations.
Protection of action taken under the Act.
Power to make rules.
Effect of other lsws. Powcr to remove difficulties. Saving and Validation. Rep221 of Madras Act XLIII of 1949r
2
" . ___ . _ _ _ -- - ------ --r).n
1954 : CN. Act ls~ecriicitjt Supply 307 "
Wider takings (~cqu id ion) j . \ t
'&TAMIL NADU] ACT No. XXIX OF 1954.9
\ fIhe T TAMIL NADU] ELECTRICITY SUPPLY UNDER-
TAKINGS (ACQUISITION) ACT, 1954.1
*
(Received the assent of the president ofi the 9th October 1954 ; first published in the Fort St. George Gazette on the 13th October 1954).
An Act to provide for the acquisition of undertakings in the 3[State of Tamil Nado] supyIyirkg electricity. 4 [ W m ~ s it is expedient to provide for the acquisition of undertakings other than those belonging to and under the control of the State Electricity Board constituted under section 5 of the Electricity (Snpply) Act, 15-3
(Central Act LIV of 1948), in the 3[State of Tanv; Nadu] engaged in the business of supplying electricity to the public ;
1Tkse words were substituted for the word Madras" by the Tamil Nadu Adaptation of Laws Order, 1969, as amended by the Tamil Nactu Adaptation of Laws (Second Amendment) Order, 1969. aFor Statement of Objects and Reasons, see Fort St. George Gazette, Extraordinary, dated the 3rd May 1954, Part JV-A, page 89,\ This Act was extended to the added territories by section 3 of, and the First Schedule to, the Tamil Nadu (Added Territories) Ext~nsian of Laws Act, 1962 (Tamil Nadu Act 14 of 1962), repealing the corresponding law in force in those territories. This Act was extended to the Ksnyakumari district and the Shen- catt-th taluk of the Tirur-relveli district by section 3 of, and the First Schedule to, the Tamil Nadu (Transferred Territory) Extension of
Laws Act, 1965 (Tamil Nadu Act 22 of 1965), reflealing the corres- ponding law in force in that territory.
This Act shall cease to apply to any undertnking as dcfined in
section 3 (12) of the Tamil Nadu Private Electricity Supply Under- takings (Acquisitiori) Act, 1973 (Tamil Nadu Act 30 of 1973) which
ha9 not vested with and taken possession of by tltc Government under the provisions of the 1954 Act before the commencement of Tamil Nadu Act 30 of 1973 by virtue of sect ion 23 (1) of the said 1973 Act.
8Thit: expression was substituted for the exrression State of
Madras" by the Tamil Nadu Adaptation af Lan7s Order, 1969, as amended by the Tamil Nadu Adaptation of Laws (Second Amend.
ment) Order, 1969.
4 This preamble was substituted for the original p r e a b l e
by section 2 of the Tamil 'Pu'adu Electricity Undertakings (Acquisi- tian) Amendment Act, 1937 (Tamil Nadu Act \I I of 19571, deemed
to have came into farce a n the 13th October 1954..
12353-20~
3
a c c b c r c ~ e u y r . . r ~ r l / p & y ~ag371 o a e ~ . \ e LIVI. 4n4sa4~ J V V Undertakhgs (Acquisition). B i
BE it enacted in the Fifth Year of the Republic of India k I
as follows :-I. t
Short title, 1. 'J(1) This Act may be called the ?[Tamil Nadul i 1 extent and Electrmty Supply Under takings (Acquisition) Act, 1954. ~mmencement ,
(2) It extends to the whole of tllc 3[St;ite of Tamil
Nadu] .
(3) It shall colllc ;.ntu ibrce at oi~ce.
P i
I
Definitions 2. (1) 111 this Acl, un!css the contcxi o~llcr\\i.sc requires- and inter- *
pretation. (a) ': act-o~mt yt,ar " ineails the licensee's financial f year ;f.
(6) " accredited rcpresentativc " ineans the re*
presentative appoio~ed or tieeined to llave been appointed under sectiolz 7 ;
(c ) " annual irccount " means the accollnt of the undertaking rcndcrcd to the Government annually under and in accordance with the Electricity Act, or where
I no such accoui~ts has to be rendcrcd under that Act,
the accollnt of the u;ldertaking norlnally made up for the account ycar of the undertaking and audited by a certified auditor;
4 [ ( ~ ~ ) '' Board " means the Tamil Nadu Electricity Board constituted undtr scction 5 of the Electricity Supply
Act ;]
( d ) " doculncut " inrelation to an. undertaking, iilcludes its books, uc~ouiirs , registers, ~lzaps and plans ; - - - --.-- .-- - - - - - . - -.-- A ---- - -
I This sub-sicti(>ii wss ;*il),ii!ti ed for the origin:.! sub-section (1) by section 3 01 .' )'::mi 1 I ;, 1: 1t;ciricity U it C~Iti1,kjl1g~ Acquisition Amenc: -tilt AG( , 1957 (, ,117 ; I 'Niid~t AC: V l Of 1957) deemed ta hr,ve came in:a fblce (10 I ~ L L I 2, h Octobcr i 954,
2 These wdrtjs &crG st~b>ti l i tcd f ~ r the kvortis v'n/Eatisas" by the
Tamil N;.tlu (iZ:l;l.pl:l !cii.! i f i.a\vs Orci.c'r, ! Shu, as amendec by the Tamil Nac,u Ac ap;:~til 1 1 c f Laws (Secutl~! Amendment) Order
1960,
8 This express l~n has . ~ b s i , i i ~ t e d for the expression "State of Madras" by the T m i l Na4u Rciala! ztiar~ ( f Laws Order, 1969 as amended by the Tamii N:.itil ihiaptation of Laws (Second Anlend- ment) Order, 196 '.
4 This clause \~;!s i r l \ ~ l le 1 by 5cct ion 2 of L hc Tarnil Nadu Electri.
city Supply Ut1iic~1:1kii-ig, (ilcqiti.;itiuri) Amei~tiinent Act, 1969 (Tamil
Nadu Act 11 o f 1 !Itr)), v~hic ,~ w:is clcemed to have conlc into force on the 1st July 1957,
-- - . -
2 d/
4
1954 : T.N. Aat XXIX] Electr ieir y Supply 309
linderraki'g (Acquisition)
1
(e) " Electricity Act" means the Indian Electri-
city Act, 1910 (Central Act IX of 1910) ;
(f) " E1ec:tricity Supply Acr " means ,the Electricity (Supply) Act, 1948 (Central Act LIV of 1948) ;
(g) " fixed assets " includes works, spare parts9 stores, tools, motor and other vehicles, office equipment and furniture ;
(h) " Government " means the State Government ;
( i ) " intangible assets " means any amount paid on account of goodwill, under-writers' commission and such preliminary and promotional expenditure shown as a debit'in the capital account of the undertaking, as has fairly arisen in promoting electricity supply ;
(j) " licensee " means a person licensed under Part I1 of the Electricity Act to supply t:lectrical energy, or a person who has obtained sanction under section 28 of that Act to engage in the business of supplying electri- city and, in relation to an undertaking taken over or an undertaking which has ve3ted in the Government under section 4, the person who was the licensee at the time the undertaking was taken over or vested in the Government, as the case may be, or his successor-in-interest ;
(k) " prescribed " means prescribed by rules made under this Act ;
(I) Y~ndertaking taken over" means an under- taking taken over by the Government after the 1st January 1951 and before the commencement of this Act ; (rn) " vesting date " means, i r relation to . an undertaking, the date fixed ut~der ~ection 4, sub-section (1)
as the date on which the undertaking shall vest in the Government or in the case of an undertaking taken over,
the date on which it was taken over ;
(n) " works " includes electric supply lir-0 and any lands, buildings, machinery or apparatus, required to
supply energy and to carry into effect the objects of a licence or sanction for the supply of electricity, granted under the Electricity Act ;
(0) other expressions shall have the meanings re P pectively assigned to them in the Electricity Act or the
rule8 thereunder.
5
6
---
llsr -0 -
I954 : X.N. Act XXIX] Hectricity SZIPP[, 311 Undertakings (Acquisition)
5. The compnwiion payable to a licensee, on whom Campen-
an order has been served und.er sect ion 4 or whose under- sation payable
taking has been t hken a ver before t he commencemenl'oaliaosee. to a kmme.
of this Act, shall be determined 6nder any one of the Basis A, B, and C specified below, cas may be chosen under section 8.
(1) Basis A*--(i) The compensation payable under this basis shall be zn amount equel to twenty times the I average net annual prcfit of the undertaking during a
period of five consecutive account years immediztetely preceding the vesting date.
Explanation.--Bor the purpose of this clause, the net
I
annual profit shall be determined in t he mt,nner bid down 1 in Part A or Part B, as the case may be, of Schedule I.
(ii) This basis shall not apply to an undertaking which has not been supplying electricity fc r five consecu- tive account years imneciiately pr'eceding the vesl ing dg.te.
(2) Basis B.-Tile cornpensat ion payable under this basis shall be the aggregal e wlue of all the shares consi itut - ing the share e.plta.1 of the und.erla,king, reckoned as shown below:-
(a) In the case of shares issued on or before the 31st March 1946, the value of each shcre sh2.11 be reckoned at its average value as ~rrivcd at from the . quotalions for the.shstres as given in the offlcial list of the Madras
Shere Market on the 15th dey of each month and where I
such market was closed on that day, t hie quotations on
the next working dey, during the per icci cf three years commencing on the 1st Apl il 1946 and ending on the 31st March 1949 :
Provided th8.t this clause sh?,ll not apply if eny one or -ore of the d.iff'erent cl~.sses of shares constituting the capital of the undertaking were not beingregulcxly quoted
in such market during t he pericd of three years aforesaid, or if such quotetions c'xringl he whcle cf anyone cf those thee years were not based on actual transactions in such year.
(b) In the case of shares issued on or br:fore the 31st
M~.rch 1946, if clause (a) does not apply but there h?.ve
been bona fide transfers in each of the ditlerent classes of shares in every one of the three years aforesaid, and such transfers have been duly registered in the appro- priate hooks of the licensee, the value of each share of
7
312 EIeesri~iiy St4pply [I954 : I'.N. Act XXIX
Oi~~lertirliit~ys (Acquisitiorz) : - each suclz cl3.s~ tll:l.ll be 1-cckoned ;,t one-t hircf of the aggreg?!t: of its ,T~rce ktnt~unl p.vil*i:go v;~li.c.s for tlie I hrce
yezrs, the avc;r:!ge v;:lri,e PI- eech yc-:.r being determined from the ~ T ~ I ~ S L " . C ~ ! U I I S in ihet yea- . ( c ) Whcrc ! lu crnounts c2.Jled fc.1- in respect of any sh::rc ! e Torrcc! to in cIt:~isc (a) OJ- C~BLISC (b) 2re in arrezrs, rhe valtlo i.1' such sh::rt. sh:.li bc taken to be a sum which be:~.rs to i t 5 vil.luc cs rcckoncd L! rider ckus-e (0)
or cL?usc (b), ;l.s ;tls w.sc 1xw.y bc, 1 h ~ . sc?luc propoifion as the amounk paid up bars it? t hc i'iill ;:ruouiit pi>,yit.ble
in respect of 1 he sh:~rc. ) I t i s S I S i s 1 I i l i ~ 3 1 ~ I Mrrch 1946, t h x xggseg -.te vi:lt P sll:.ll E-ru k :?.kc n 1 cl bc r he zmcu nt actuc.lly pzid i 11 1 espect ! hcrc; f (inclt- c i 11g 1 he pl c m i ~ m, if any), tog:thl:r with. a n zdc,i'iorn:l ::LIIII by ~ , : y iif solatiurn, c;?lculated 2.t 1 he i - ~ t c of ' wo pcr tin' 5~ e v ~ r y completed year prececling t1.c vesting crp.ec !.-;I i Ilc i:n~ount so mid
which wc:s i n exislerlcc d i:'-iiig the whole such ye as as
shown in the licelxsre's books :
Provided t 1v.t iio pzrt cf s t ~ c l ~ F. IIC;U 111 sl~?,ll be eatitled t~ a solzt iu~i~ cxcirl~j.ing Ten per ceni ! I l c ~ ( ( - i .
Explunotion.-.-This basis s11;lll not apply anlesa clause (a) or clause (6) is applicable.
(3) Basis C.-The compensation payable under this basis shall ba the aggregate value of the amounts
specified below :-
(i) the book value of all completed works in beneficial use pertaining to the undertaking and handed over ; o the Go- rcr~~rnent (excluding works paid for by
consumers) lesLs d.epreciation calcalated in accordance
with Schedule 11:;
(ii) the book value of all works in progress handed-
over to the Government, excluding works paid for by
consumers or prospective consumers;
(iii) the bcok i7a1ue of all stores including spare parts hnnd~i l 01 er .ill.- Gcn-en::nex: :i::,! 12 &r: caje
* . - - - - - -- - ,~fuwL! s:J:23 :*-: <:-::- :-LYc. 5:*-- 2 ---- -; 2, - - -
. . . . - 'a ti\ i ~ ? :b'>:. - . :..& Q
tb3 vcjring L i ~ i z .:rid ::>ii&d O V Z ~ id ihf Guremment /es.,-
depreciation calculstlrd in accordance with Schedule 11;
8
(v) the book value of dl plant and equipment existing on the vesting date but no longer in use owing to wear and tear or to obsolescence, to the extent such
value has not been written off in the books of the licensee less depreciation calculated in accordance with Schedule 11;
(vi) the book value of all intangible assets, ts the extent such value has not been written off in the books ~f the licenseo ;
(vii) the amount due from consumers in respect of every hiire- purchase agreement referred to in sac- tion 6 (2) (a) (ii) less a sum which bears to the difference between the total amount of the instalments and the original cost of the material or equipment, the same
proportion as the amount due bears to the total amount
of the instalments;
(viii) any amount paid actually by the licensee in respect of every contract referred to in sectlull 6 (2)
(a) (iii) ;
(ix) an additional sum by way of solatiurn- . I *[(a) in case the licensee is a person licensed under Part I1 of the Electrjcity Act, at the rate of ten
per cent on the y7nlue refcired to in sub-clause (ii), at the rate of five per cent on the value referrcd to in sub-clause
(iii) and at the rate specified in the licence in respect of compulsory purchase, or whe~e no rate is specified in the licmce, at fifteen per cent on the values referred to in sub-clauses (i) and (iv) ;]
(b) in case the licensee is a person who has obtained sanction under section 28 of that Act to engage in the
business of supplying electrical energy, at the rate of ten
per cent on tlie values referred to in sub-clauses (i) and (iv)
and at the rate of five per cent on the values referred to
in sub-clauses (ii) and (iii). - ...-
1 This clotrse wa? s ~ ~ b s l i t ~ ~ t e d for I he origi17;ll C]CUSC (a) by scct ion 4 of t l ~ e 'i*:am,l N::du Elect rich y ul~dcrtczkings (Acquisi-
tion) Amendmc~~t Act, 1957 (Tamil Ncdu Act V1 of 1957) deemed io have come into force an the 13th October 1954.
9
314 EIL7ctricaitj Sipply ji954: 'L'.N. Act XXIX ~ ~ ~ d e r t s i i i t t g s ( A cq~11'Sil" ~ Q I Z ) E~plr.~-fion.-(l j For the purposes of Basis C; the borl- value of any fixed asset mean5 its original costs, and shall compiise-
(i) the purchase price paid by the licensca fsr the asset, including thc cost of delivery and all charges properly incurred in erectmg and bringing the asset into beneficial use as shown in the books of the ~rndertaking;
(ii) interest clwrges on capital expendit tire incurred from borrowed nlolley and shown in the books of the undertaking as properly attributable lo the asset up to the date of bringing it into beneficial use, at a ].are ilot excee- ding six per cent per annum;
(iii) cost of su,)ervision actually incur-red, Sut not excwding fifteen per corzt o f the anzount refcrred to in
paragraph (i).
(2) Whero any asset was acquired afwr ttle expiry of the period to which the latest annual account relates,
or where no annual account has to be rendered under the Electricity Act, tl e book value of the ass2ts s11all be such sum as may be dec,,ded upon by mutual agreement between
the Government a~ncl the licensee.
Vesting of the 6. (1) If compensation is payable in respect of an under-
undertaking assets. Or taking under Baris A or Basis B, all property belonging to the undertaking including fixed assets, cash , securities, investments, documents and the like and all its rights, liabilities and obligations as on the vesting date, shall vest or? shall be deemed to have vested in the Governnlent:
Provided that liabilities arvd obligations not illcurred in
a bonafide manner shzll not vest or be deorned to have
vested in the Governine~~t-
(i) in so far as they are in excess of the vnluc on the vesting date of t ' l ~ corresponding assels, i f ;rnv, vesting or deemed to hcve vested in tlte Goveri~rncrzt ;or
(ii) where there ,Ire, no corresponding assals which vest or are deennod to Zra.ve .~ested in tlxs C~>vl;ri~lnanr.
Expla~rutic/i.z.----For- the purposes o f this sub-section,
"undertaking" incltlctcls evcjey b 3 * ~ : - . - ~ ~ ~ . l ~ , r r i e ~ ~ or1 by the licensee, the fuizcis o ~ " \v hie11 form part c.rt' thw frtnds of ttle
licensee.
10
1954 : T.N. Act XXIX] Electr ici . y Sicpply 31 5 Underrak ings ( A cquisit ion)
(2) (a) If compensation is payable in respect of an
undcrtaicing under Basis C , only the property, rights, liabilities arid obligations specified herein shall vest or be deemed ro have vested in the Government on the vesting date--
(i) al! the fixed assets of the licensee and all the documents relating to the undertaking ';
(ii) all the rights, liabilities and obligations of the licensre under hire-purchase agreements, if any, for the supply of mattrials or equipment made bonafide
before the vesting date ;
(iii) all the rights, liablities and obligations of
the licensee under any other contract enle~ed into
bonafde before the vesting date not being a contract relating to the borrowing or lending of money.
(b) All the asscts specified in clause (a) (i) shall vest or shall be deemed to have vested in the Government free from any debts,mortgages or similar obligations of the , licensee or attaching to the undrrtalang :
Provided. that such dcbts, mortgages or obligations shall attach or shall be deemed to have attached to the compensation payable under this Act for the assets.
(3) In the case of all undertakings which vest or are deemed to have vested in the Government under this Act,
the licence granted or the sa ncticn given for the supply of
et-icity shall be deemed to have baen termin. tee, on the
vesting ckte and all the rights , liabilitic and obligatio- of . the licensee under any agreement to supply electricity ontered into before that date shall devolve or shall be
deemed to have dolvolved on the Goverr?.ment:
Provided that where any such agreement is not in conformity with the rates and conditions of supply appro- ved by the Government and in force on the vesting date, the
agreement shall be voidable or shall be deemed to have been voidable at the option of the Government.
(4) In respect of any undertaking to whichsection 4
applies or any undertaking takenover, it shall be, and
shall be deemed always to have beeln aw ul t i r the GLVL A -
ment, after removing any obstruction that may bb L- might have been offarod, to take possession of the entire under- taking or, as the case may be, of the fixed assats and of all documents relating to the undertsking which the Government may require, br required for cmying it on,
11
316 Electricity S,rpp t~ [I934 : T.N. Act XXIX Undertukitzgs (Arqrrisit ion)
Appoint men t 7. (1) Every licensee may, within thrm months of (he of a sole receipt of an ordei. under soction 4, sub-section (I), inti-
resresentaiive. mating the vesting date or, in the caso of an u n d e r t a w taken over, within three months of the commencement
of this Act, appoint an individual who may be the rnanagng
agent or a director or an officer of the licensee or l[any
other individual] to act a: his solo and accredited rrprosan-
tative in connoxion with the handing over of the under-
taking Qr the fixed assats, as the case may be, to the
Government and perfarming on behalf of the licanoea the
functions herainaftt r specified.
(2) Where the: licensee is a company registered under
*the Indian Companies Act, 1913 (Central Act VII of 19 13), the appointment of the accredited rapressntative shall be made by tho shareholders of the company at a meeting specially convened for aha purpose.
(3) Nothing in the foregoing sub-sacti02 shall be deemed to require a licensee of an undertaking taken over, who has appointed an individual as his sole and accredit& representative, to m a k ~ a fresh appointment after the com-
mencement of this Act; and the .said representative shall
be deemed for all purposes to be the accredited representa-
tive appointed under the foregoing sub-sections.
(4) Where the :~ccradited roprasantativc reaigns OE dies or becomes incapable of acting or i s ir the opinion of the Government, incompetent or dishonest or where the appointment of such representative is set aside or declared void by corn;>eten t authority, tha Government shall call upon tho licensee. to appoint within six waeks,
a[another individual] as his accreditad representative.
(5) The remullerntion of, and the expel-Jiture incur- red by, the accreditec! repmstlntative shall be, and shall
be deemed always to have been, payable from the
compensation deposited or deemed to h ~ v e been depositd
under this Act and shdl hava and shall be deemed always
to have had priority over all other d ~ b t s and liabilities. - - -- -- -.-- - - --- --- I_- _ ___-
1 These words were suhstitu!ed fbr t f le war(ls "or. any c)tlrer person" by section I c;f the Tamil Nadu Bl~~ctr.icity Urlclcr.r;,kiilgs (Acquisition) Atncri(lrncn1 Act, 1957 (T::mil N:ld{i Act VJ f p f ' 1 #)57), deemed 10 have t.clrnc i n t c ) iorcc ort thc 1 3 l l l 0ctoirc.t 1054.
Whcsc wortis wci'c. substitut ccf fikr ( tic wcrrtla * *;t~luthcr. I personcc by sect ion S(ii), ibirl.
* See now the Cornpaflies Act, 1956(Centrai Act 1 of 1956)
12
1954: T*N. Act XXM] Electricity Supply - 319 -- - -- -- L Under takings ( A cqu hitton)
(6) assurances conveyed, and all statements made,
by such representative (inclusive of a representative whose appointm~nt i s subsequently set aside or declared void
by competent authority) shall be binding on the licensee.
(7) Where the licahsee does not appoint an individual to act as his sole and accredited representative under sub- section (1) or sub-section (4), the functions hereinafter ansigned to the accredited representative shall be performed
by the licensee ; and all references in the rest c f this Act to the accredited representative shall be construed as references to the licensee and any referonce to a pe~iod 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
8. (1) Within one month of his appointment, or such Choice of baa of compensa- h ~ t h e ~ time as inay be granted by the Government, the tion. accredited representative shall int ima ta to the Governmem in writing which basis of compensation, A, B or C, shall beI adopted in respect of the undertaking.
(2) The choiw of the basis of compensation once inti- mated to the Governmefit shall not be open to revision
except with the i~ concurrance.
(3) Whare no choice has been intimated on behalf of the undertaking within the time allowed by sub-section (I),
tb.e Government shall declare the basis undl:r which com- pensation will be paid f o ~ the undertakilsg and that basis
WE be binding on the licensee as if the choice had been
duly made in accordance with the folqegoing provisions.
(4) Where in respect of an undertaking taken over, the accredited repr ssentative has intimated to the Govetn- compensation, Ai B or C, should be
tlzo undertaking, such intimation shall
been made under. this section and is
dec1ara.I not open to sevisiorr exccpt with the con- of the Go~~~mt:rmt.
rnment are of opinion that any 1 icensee ~ e ~ ~ t oftva.
st October 1947, disposed of any fixed sactions not
by way of sale, exchange, gift, lease OE other- bon*de ed capital expenditme otherwise thahan in the
13
.a 1- -"' - . . .A .. .*I* r().L%IL1 ~&rtakin& (Acquisition)
normal course of events with a view to benefit unduly the licensee ol: some other parson and thereby caused loss to the Government a i iuzcecil ing owners of the uncit.rtaking, the Goilern1n:ilt sl-iall be and shall bi: deemed always to have been entitled to doduct from the compensation payable
to the licensee under this Act, an amount which they consi- der or considered to be the loss sustained by them:
Provided 'hat notice of r he intention to nlake such
deduction shall be or shall have been given 1.0 the licensee within one year from tha vesting date.
Dedunions 10. (1) The Goverllrnent shall be and shall be deemed
fror.1 the always to have baen entitled to deduct the following sums
Comp@nsatl~n*from the compensation payable uotler this Act to a licensee :-
(a) tha amount, it'any, alroarly l~artl 1 1 ) ; ~ t l v i ~ ~ l c o by
way of c,>~-t~pensai ion ;
(b) the amour L, if any, specified i 11. sect ion 9 ;
(c) the amount due:, if any, froin lhl: lieellsee lo
t1le Governlnent '[or the koard] fbr the emxgy supplied by the Govrsnment or tile Board/ boforc tlze i e s i i1l.g date ;
( d ) all othew a.111ounis aud anens:; of interest, if
any, thereon due i ro m licensee l o tho (iovecninen t
'[OF tho Board] except loans and nrroars of interest, if
any, thereon ;
(e) the atnoul-11, if any, equivalilnt to 'ha loss sustained by the Government by reasoil of any property or rights belonging o the :I 11deri aking no! having he011 handed over to the Govtrnnlgni, the arnouut, of s~ich loss beiug deemed to be-
I
(i) in cases whcrc cornpensat ion is payable under Basis A or Basis B, tile market value on * he vosting date of such property or rights, together with any income which might have been realized by the Government if the proporty
01 rights had been handed over on the vest -ng (late ; and ^ - "_ - -- -.- - - - I--_- --__ ll__l___ iThese worcl, wcrcb i,i.;er.ted b;), secti,)n 3 !i) o f ? l ~ e T..niil
Nadu Elecrricity S t ~ l ? ; ) l y Un(!el.takini\s, ( A c c ~ ~ ~ i s ~ ~ ~ o i , ~ k~ineridnic~~f
Act, 1969 (Tamr l Nltciu / \c l 1 1 of 1W;C)) wltich was ct~+emed to have come irto loicc oil ~ J L G 1st July 1957.
14
- - - - - \
(ii) in cases whete compensation is payable I L undei Basis C, the amount by whch the market value of such property or rights exceeds the compensation payable therfor under this Act, together with any income whicb
might have been realiied as aforesaid.
(2) Iri addition to the deductions specified aboves the Government shall also be and ba doernad always to have been entitled to make the followink; deductions :-
(a) in cases where the compensation is payable under Basis h a E L L 2, any sum which during a period not exceeding three consecut ivc account years immediately befotre the vesting date has been distributed as profits, but is not correctly so distributable ;
(6) in ca,s:s where the compensation is payable under! Basls C-
(i) the amount of all loans due from the licensee to the Governmant '[and the Board] and arzeaFs of
i nterast, if any, thereon ;
(ii) a portion of the amount of solatium bearing the same proportion to the total amount of solatium, as the amount of all loaas due to the Government "and
the Boapd] from the licensee on the vesting date beam
to the aggmgate of-
(a) the paid up' share capital of the licensee not being a local authority, or the value of the capital assets shown in the capital account of the undertaking in
(c) the amount of all loans due to the Govern-
en$ '[and the Boaxd] as aforesaid ;
15
320 Electricity Supply [I954 : T.N. Act X X E Undcrtci kings (Acquisition)
which according to tha books of the licensee ara due from the consumers to the licensee for energy supplied by him before that date ;
(iv) all advances from consumers and prospective consumers, and all sr!ms which have been or ought to be
set aside to the c~edit of the consumers' fund in so far. as such advances 0% su111s have not been paid over by the licensee to t h ~ Government ;
E.xplnnlrliot).---.-For the purpose ij!' lllis clause, 'consulners' rund' sh;,ll, in the case of tho rii~dertaking of a licensee being ;r local ;~u..hor;t\r. I Iho itinount refer- red to as such (13 the bulk suppfy agrwimi. (sI*, where no s u ~ h reference has b.xn r1.lad.e in the bulk supply agree-
ment, th,a cct prc #fit% ol' the upldertakin~ ren1;iilliizg af te~ effecting t l~e ::jppr(.qy i"ions to the 3cnei.al T!il*~iLs cf the local authority in ;\.ccoFdr;tllctl wit11 tilo turms of t l~c said
agreement. I n thcr cast of the u~zdcst~rkilll?; <)I" u licetlsea othep thdn a local ;tuii~ority, for any ;~ccount yeltr prior to the data on whiclz t l~c Sixth SchcJulo to lhc Etoctricity
Supply Act cainc i~zi,o force, it shall nlaan I l~e amount referred to as such. ilt thc bulk siLppIy agi.uctncnt and, for any account year on 2nd from the said date, it sliall mean the amount spesifiod i.1 p;.lragraph i 1 ( 1) of the said Schedule as the a~noant to be set apart For distribution to consumers ;
(v) all depo dts ~~*tado by, tind d l ai l l i - is due to the staff transferred to the Government on ac~ount of' Provi- dent Fund or othor hcr~eficial scho~ncn, irl so t'ar. as such deposits or sulus Itavt not been paid ov.:r by tho licensee to the Goverlzljzetlt, le.ss the amounts which the Govern- ment are satisfied are dtic to the licenses froin tllc inembers of the staff so transferred ;
nrovidea that 119 d~duction sllail be aaiidi: it1 pur- suance of pavagr;iph (v), in so far as tho depo~its or sums aforesaid n n y be in t l ~ e custody of lrust@~S urrcrioi ti valid
deed of trust*
(3) In tho a~~ic: ~".sfcrred to in the foragoing proviso, the Goveriuncot slull have, znd shall be deemed always
to have had p a ~ c t ~ C P ~'r=quire the trrrstees to trarl~fer th(2 funds with ther14 A!: .I rhs se~ur i t i e j ~ i i d oth.l.: properties,
if any, in ;,-h;
16
- - - - - -. - . - Electricity su& 32 1
Undertakings (Acquisition) the staff transferzed to the Govern. shall be completely discharged in 0, or enforceable against, the , securities and other properties so transferred.
4
n due to a licensee under this d in cash, as hereinafter pro+
(2) Within four months from the ve2ting date in
the case of a2 undertaking which vests in the Govem- ment in pursuance of an order unde~ section 4, sub-sec- tion (1), and as soon as may be after the commencement of this Act in the case of an undertaking taken oXr-r. the Government shall estimate roughly the compensation payable to the license0 under this Act.
(3) Three-fourths of the amount as so estimated shall be paid by the Government to the licensee, where it is a local authority after deducting any amount paid, whether before or after the comrnencemnt of this Act, as or towards the coxnpensation payable arid the amounts referred to in section 10.
ther licensee, the; Government Eank of India or any other ment for the purpose (which inafter refellred to as the Bank) as estimated under sub-section om tlie amounts referr d o in Explanation.-Where the amount to be paid or deposited under sub-section (3) or this sub-scction is equal to less than the amount to be daducted tharefro~n as
aforesaid, no payment or deposit need be made under sub- section (3) or this wb-secrio11.
. (5) Nothing in sub-section (2) or sue -section (4) sllall require the Government to estimate roughly the com- pensation payable to a licensee under this Act or to deposit in the Bank three-fourths of the amount as so estimated after deducting ther :from the amounts referred to in section 10, in a case where, in respact of an undertaking taken over, the Government have, before the comenc~rnent of this Act,estimated roughly the omp pens at ion payable to the
Manner df p.?yment or deposit of compen- sat :on-
17
licensee and have deposited in Iha B2tn k t hree-f'ourths of the amount as so estimated after deducting therefrom the amounts referred lo in ssction 10 ; and the estimate and the
deposit made by the Gove i~ i~~ i~ub ilany such case shall be deemed for all pulposes to be an estimate and a deposit made under sut -section (2) and sub-section (4), respectively.
(6) (a) Within one year from the date on which the compensation was estimated urldor sub-section (2), the
Governmcnt sllall doterrnine the :mount of colnpensation
payable in respect of the undertaking and yay to the licen~oci or deposit in the Bank the balance left from the amount
afcres~id ~ f t er deducting I htrcfrom (n)lhc am( unts referred to in section 10, P [la (b) the payrnent or &posit prcviously made under sub-sccfion {3) sub-sect ion (4) as the case
may be.
(6) Nothing in c l~~usc (a) shall ~Szquise the Gov~rn-
m ~ n t +o d ~ t c r m i n e !hi: amount of compcnsarion payable in respect of the undist~iking or to make a dc posit in :j, Bank jn any cclsc wl~cra in rcspect of an undertaking t a k a over,
the Gov~rnrnent hgve deter mint a the a m ~ u n t c f compen- sation payablt in rcspect of tb.c undert~king and have deposited in the Bank the balance left from the amount
aforesaicr. -*"%r deducting therefrom the amounts referred to 111 s~ ctZon 10 and the deposit p~eviously made or deemed
to have b e ~ n made under sub-section(4); and the determina-
tion and the deposit shall in such a case be deemed to have been made under clause (a).
(c) Where the accredited rt presentative clams or in the czse of a n urlderstakrng taken over has clz~imed tbat compensation is or was due to tbe licence^ QVCr 2nd above that r s deteimined 01 deemed tc hzve determined by the Government undcr clause (a), the r mor nt ,if any, to which it is finally dccidcd in pursuance of thic Ac! th?t the licensee is cnt itled, ?hall be paid to t?le licernee or deposited
in the Bank, 2s the case may be, within one month from
the PI e on which such finel decjsion is arrived at.
(d ) All ?mounts lirble to oe ppid or depceited in pursumce of cbuse (a) or clarlse (c) shall bear interest at three per cent per snnum from the date of erpiry offow
mom hs from the vegting date.
18
- . 1154 : T.N. Act Myl Electricity Stlpaly 323 - -
U.~dvrtakings (Acquisition)
(7) In the case referred to in the Explanatica to sub-
section (9, that is to say, where oc, paym~nt or deposit has
been previously macle, the Gove~nment shall pay to thg
licensee or deposit in the Bank the amount of compen- sation determined under ciause (u) of sub-section (6), afte r deducting therefrom the ardountsrefened to in sectirn 10, together with interest on the amcunt to be paid or depoi~itiiled, st three per cent per annum fro= the date
cf expiry of four months from the vesting date.
(8) The amount of cornpensetion as estimated undm sub-section (2) and the amount of compensaiion as hal ly detmmined under sub-section (6) shall be intimated forth- with to the accredittd representative and he shall, within two weeks of such intimation or such further time as may
be d o w d by the Government, state in writing whether the amount as determined by the Oov@mrnent is agr6ed to by him acting on behalf of the licensee.
(9) Every person claiming any amount deposited in
the Bank under the foregoing sub-sections, or any portion thereof, shall apply to the Special Officer appointed by the Government in this behalf, within three months from the
date of the deposit or within such further time as the Special
officer m y allow.
(10) (a) The Spacial Officcr shall, as expeditiously as possible, inquire into all claims made under sub-section (9) and determine the persons who, in his opinion, are entitled t o the amount deposited and the sum to which each of them
Is entitled and disburse the same to him.
(b) The Special OEcer shall have the same powers as are vested in a Civil Court under the Code of Civil Pro- cedure, 1908 (Central Act V of 1908), when trying a suit in respect of the following matters ; -
, (i) enforcing the attendance of any person and ~xamining him on oath ;
(ii) compelling the production of documents; a d
(iii) issuing commissions for i hr caa mination of
witnesses.
The Special Officer shall also have such further powers 8s may be prescribed.
b ,
125-321 A r,
& e
19
licensee and haw deposited in Lhe Bank throe-fourths
of the amount as so astimatad after deducting therefrom the amounts referred to in section 10 ; and the estimate and he deposit made by the Government in any such case shall be
deemed for all plrrposes to be at1 estimate and. a deposit made undar sub-section (2) and sub-section (4), respectively.
(6) (a) With-ill ons year. from tho date on which the compensation was estimated under sub-section (3, the Government shall dotarmine the amount ot' con~pensation
payable in respect of tho undertaking nt~ti pay to tho Iicensae or deposit in the Bank the balur~cc loft from tho amount
afcres~id c?ft cr dcducei~>g 111~rcf1-0m (o) th~ :trn( unts referred to in section 10, m a (6) the payincnt or dcposit previously made undcr sub-scction (3) or sub-sect ion (4) as the case
may be.
(b) Nothing in clause (a) shall require the GOVL~II- m ~ n t to dcf crminc the amount of compensation payable in rrspcct of the und'rtnkirg or to makc a dr posit in a Back in any casc wIzc'rc in rzspect of o l ~ undertaking iakcn over, the Government hJvz determinto the amcunt cf compen- sation payablt in respect of the undert~king and have deposited in the Bank the balance left from the amount aforesaid* after deducting therefrom the amounts referred
to in stct:on 10 and the deposit previously made or deemed to have b e ~ n made under sub-section(4) ; and the determina- tion and the deposit shall in such a case be deemed to have been made under clause (a).
(c) Where the accredited rtpresentative cla~ms or in the czse of an understaking taken over has chimed that compensation is or was due to tbe licencet ova- 2nd above tha t r s deteiminetl 01 deemed tc have determined by the Government unc' er clause (a), the a mor nt ,if any, to which
it is finally d e c i j ~ r l in pursuance of this Act tbet the licensee is entitlcd, hall be paid to the licemee or deposited in the Bank, esthecasemay br, within onc month from the d?te on which such final decision is ariivcd at.
(d) A11 ?mounts lirble to - oe p?id or depcrited in pursuence of clause (a) or clarlse (c) shall bear inleiat at
three per cent per snnum from the date of elrpiry of fow:
mom hs from the ve~~ting date.
II
20
1954 : T.N. Act XXIX] EZectricity .Tupply 325 Undertakings (Acqr{isition)
may be prescribed, it shall be determined by an arbitrator appointed by the Government who shall b: . District Judge or a person who is a retired High Court Judge or a retired District Judge:-
9
(a) the ainount of the compeni'ation payable in res- pect of the undertaking as a whole or any component part thereof; I
(b) whether any property belonging, or any right.
lia.bi:ity or obligation attaching, to the undertaking vests in the Government;
(cr whether any fixed asset forms palt c f the undertaking ;
(d) whether any contract or hire-purch ase agreement
or other contract referred to in section 6 (2) (a) (ii) or (iii)
bas been ,entered ir;l:o bnnn fide or not ;
(e) whether any agreement to su-ply electricity entered into by the licensee j~rior to the vesting date is of the nature referred to insectioii 6, sub-section ('9, proviso ;
(f) whether the Government are entitled to deduct any sum under scction 9 or section 10
(2) Subject to the provisions of this section, the provi- sions of the Arbitration Ac!, 1940 (Central Act X of 1940), shall apply to all arbitrations under this Act.
(3) The arbitrator may, if he thinks it expedient to do so, call in the aid of one or more qualified assessors andi . hear the whole or any part of the reference with the aid of such assessor or assessors.
(4) Where, in respect of an undertaking taken over, an
award in a dispute of the nature referred to in sub-section (1) has been made by an arbitrator appointed by the Govern-
ment, such award is hereby declared to have been validly made.
14. (1) Any agreement between the licensee and his Termination
managing agent or managing director (by whatever name of managing
known) shall, notiwithstanding anything to the contrary in a t ~ n c ~ such agreement, be deemed to have been terminated on the
21
326 E / e c / r i ~ ~ i ~ ~ ' Sipply 11954: rr.N7 Act XXlX 12 rzdert hl: z'itgs (A cquisi t iolt )
vesting date in so f i~r as it relatcs to the undertaking; and the managing agont or managing tf iractor shall not be en- titled to any renmncration or c ~mmissio., I'or suctl period of the agreement tts rnay remain unexy>ireil on tho vesting
date but shall be entitled only to compensation as deter- mined under su b-section (2).
(2) Where l11e agreement was i n force on the 1st November 1949 and continued to be in force until the vest- ing date, without having been i.cnewcd or replaced by a
fresh agrccmcnt r'lx a t'urthcr puiucl, t ltc managiizg agcat
or managing &rector shall, lor sucll periocl of thc agrec-
m ,nt as may re~cain unexpired on the vesting date or for a period of two years, whicheyer is less, be entitled to compel,., .+;on calculated at the following rate per annum,
t -,'nely :-
The average annual ordinary remuneration (including purchasing commission and office allowar,ce) to which a ~nanaging agent of the licensee would have beerr entitled under paragraph XI Jl of the Sixth Scl~edulc to the Electri- city Supply Act during a period of t\vo complete account years iinmediately preceding the vesting date.
(3) Ally amount payable to a managing agent or managing director undei sub-stetion (1) shall be payable from the compensation depositcd 01- daemed to have been dep ,sited uuder this Act.
Plovisions 15. Notwithstanding anything to the contrary in any r or existing contract or agreement or in any law for the t ime being in
staff of force, the following provisions shall apply and shall be
IiGensees* deemed always to have applied in regard to the persons on the staff of the liccnsee immediately before the vesting date:--
(I) The Goverilrnent shall have and ~11alI be deemed always to have had power to terminate the services of an.4
such person after giving him three calender months' notice
i 1 - writing or paying him three months' pay in lieu of such
notice.
(2) Persolzs whose services arc retailled shall be
by sue!! rules as the Government may, from time to time, mako in regard to them.
22
--A- - - --- - - *- - , *
ct XXIX] Elecfri city S I C ~ ~ I ~ 327 . . j
Undertakfngs (Aapdsition) a*
16. (1) Every licensee shall within three 'months from Inventory of date on which an order undtr section I , sub-section (I), assets and information served on him, 01 such further time as may be allowed in regard to
nment, piepare and hand over 10 them documenh
ntory of all the assets belonging to his maintained of its documents. by the
licensee.
(2) The licensee shallalso write up t he accounts of his undertaking up to the vesting date, get t:~em audited, and
submit themtc the Government within three monthsfrom that date or such further time as may be granted by the
(3) The licensee shallalso, within such time as may be specifi~d by the Government, furrish to t h ~ m such infor- mation and particulars as may be required by the Govern- ment in rrgard to the documents relating to the under-
(4) The licensee shall not destroy any G;-lunent relating to the undertaking and shall hand over to the Government on ibe vesting date all such documents ir cases falling under section 6, sub-section (I) and in case
falling under section 6, sub-section (2), all such docuinent s
as ape necessary for as ecrtaining the assets of the under- taking, the rights, liabilities and obligations attaching thereto oz: the terms of employment of the staff and fop
determining the compensation payable for the under- taking ander this Act.
(5) Where the documents aforesaid have been taken I possession of by the Govel nment , the licensee or any person authorized in this behalf, shall have access to such documents at all reasonable times and shall also be entitled to rake copies thereof or extracts thercfi om. or servant of the Government authorized Power 0 f
nment in this behalf by general or special ny time, after giving the licensele reasonable ce, enter upon any land or premises in h's possessicn make any survey, examination, or investigation incidental to the purposes of this Act. 18 (1) Wlloever, being required to furnish any infor- Peneoi\lt;es* ion or makes any statement under this Act, furnishes information or riakes any statement which he knows
23
328 Ii%.clrir.i:j* Su~ply [lc)54: T,N. Act XXIX U/z(Ei>t'tnliing (Roy u i sit ioil)
to be i'.C~ise, or wllozvcr wilCuJly h i l s tt:, hn tlci over to the Government any fixed assci belonging to the undertaking or wilfully suppresses or destroys any docu mcnt which is to be handed over to t 1 1 ~ Government ~incder sectioil 16, sub-seciluii (4), sl~all b; punisha blc with iinprisonment for a term which may extend to two yzars, or with fine which lnaycxtcnd to t wc:l~tytho~'isai~d rupee:; or with both and in thc case of 2 continuing oE~"rrcc wit11 an ajditional
fini which lnay cxtcn~ll to iive hundred rupees, for every day after the first during which the ofi'cncc. c.ontinues.
(2) Whoevzr rBil.r, without rcxson;iblc cause, to com- ply with any oft he provisions oft his Act or tile rules made thereunder, or any directions or orclsr ishued in pursuance t hereof,shall,if't he case be not governed by su b-section (I), be punishable with fine which may extend to twenty thou- sand rupees and in the case of a contirluing offence, with an additional fine which may extend to five hundred rupees,?or everydayaf'ter the first during wllich the offence continues.
(3) Notwithstandi~lganyiIzirrg con !:lined in seclion 32 of t h ~ . Code c:C Criininal Procedure, 1898 (C'cnti-al Act V of
1898), it shall be lawful for any* Magislr~ktc of the First Class specially c~npo wct'cd by t flc Cover nnzcnt in this behalf or for ; ,ny s;~l:uicd* P r ~ s i d c ~ ~ c y Magi~tratc, to
impos~ a sentcnce of' fine excccciing o12c thousand rupees
when awarding punishment under sub-scct ion (1) or (2).
(4) No Court shall take cognizance of an oRefenc~ punishablc und5r this section except wit11 the previous sanction of the Government or of an officer authcrized by them in this behalf.
Offences by 19. Where a pel son commi!ting any o B'cncc punishable
oorporations* under this Act it; a company or an association or a body of persons, whetilcr incorporated cr not, the manager, secretary, agent or cl her principal officer managing the affairs of sucll co!::p.:?:y, association or body shall be deenxd to b? guilty ?I ' i ~ ~ h ofSIC~>f;c.
X___..___ --------.- - - - - _---, =-. -^ ___-__ ___ *According to cl.ll!i(; a liij 2nd (c) of S L I I I - ? C L . ~ ~ U ~ ~ (3 j of seciion 3
of the Code ol" C~-irniitai srocecture, 1973 (Central Act 2 of 1974),
whichcame into foi ccon ti^^ 1st April 197$, a;?!: rekrc~lce to a Magis- i rate of tllc f i t ;' clcl : c s;l !!I b: C.~IIS~TLLC'~! , ;LS a :-:l;3-, L'I'I#:C 1 0 ;1 JtidicaI
k[agistr:rtc ..:' , iii. l i l . . ! ~ ~ 1 ; ~ : s itnli n!,j I L % , 1 :i f're.;kiency f
Magistrate s l ~ n l l t?ix c ,, ,;I r { I 3s i: rei: ( : i lc. .!<: rnpt)1ii;tfl Q Magistra~c.
24
-- - -- - - --- -- rCR 1954: T.N. Act PXIX] Electri city ,S'~p~l.v 329 undertakings ( A < quis~ ion)
20. No s ~ i t , pr,ro;~c,;:c 2 ar a1 her lega 1 proceeding shall Rotection of act ]on Ee against the Government or any officer Cr servant of the taken u drr
Government or any person acting under the direction of the Gavernm:nk or ap oficer or servant of the Govern- ment or aid;ng or assisting the Government or an officer or servant of t ha G~vcrnrnent, in respect of anything which is in good faith done or intended to be done in pursuance of this Act or ajly rule or order made thereunder or i n , respect of anything which was in good faithdone or intend- ed to bj done in the exercise oft he povrers or jurisdiction purported to be conferred by the Madras
Electricity Supply Undertakings (Acquisition) Act, 1949 (Madras Act XLIII of 1949), or anyruleor order made
thereunder .
21. (1) The Government may, after previous publica- Power to
tion, make rules to carry out the purposes of this Act. make rules.
(2) In particular and without prejudice to the gene- ralit y of t h t foregoing power, such rules may provide for-
(a) allmatters required or allowed by this ~ c t to be prescribed ;
(b) the manner of service of notices and orders under this Act;
(c) the obtaining of the particulars necessary for assessing the compensation under this Act ;
(d) the appointment of auditors and their duties and remuneration ;
(ej the inspection, checking and taking over of the assets and documents of an undertaking ;
Cf) the qualifications cf, and tbe remuneration payable to, the accr et~ited representative ;
(g) the procedure to be followed by the Special Officer under section 11 ;
(12) the remuneration payable to an arbitrat~r appointed under section ! 3 ;
( i ) the manner of obtaining the inform: lion and
P articulars referred to in section 16, sub-secticn (3).
25
330 ElecrricityS~pnlp [1%4 : T.N. Act XXlX Undertduings (~lquisition)
(3) All rules made under this section shall be pub- lished in the *Fort St. George Gazette, and upon such publication shall have effcct as if enacted in this Act, ~ f f e c t of 22. (1) No provision of the Electricity Act or of the other laws. Electricity Supply Act or of the Madras City Muiiicipal Act, 1919(l[Tamil Nadu] Act IV of 1919),or of thel[Tamil
NaduJ District Municigalities Act, 1920flTa1nil Nadul Act V of 1920), or ot t hel[TamilNaduJDistrict Boards Act, 1920 ('[Tamil Nadu] Act XlV of 1920), or of the'[Tamil Nadu] Village Pancha yat s Act, 1950 r[Tarnil Nadul Act X of 1950),
or of any rule ma je under any of those Acts or of any instrument having effect by virtue of any of those Acts or any rule made thereunder shal1,in sofaras it is inconsistent with any of the provisions oft his Act, havt; any effect.
(2) Save as other wise provided in this Act, the pro- visions of this Act shall be in addition to, and not in derogation of, the Electricity Act and the Electricity Supply Act.
Power to 8. If any difficulty arises in giving effect t o the provi-
reniove sions of this Act, the Government may, as occasion may require, do anything which a pptars to t h-ni necessary for the purpose of removing the difficulty.
A copy of every order passed under t h ~ s ection shall be laid befort each House oft he State Legislature. saving and 24. Orders m?de, d-cWs:ons or dierections given, noti-
validat jon* fications issued ,proceedings 1 a ken :md acts or things clone, in relation to ally unc!,r.t:rking t;:kcn over, if they would have been validly I l d e , giv-n, ~ssusd, tal:,:n or done,
h?d the Mqdras Electricity Supply Undcl takings (Acquisi- tion) Act, 1949, (Ma 1 r . a Act XLIII of 1949), end the rules made thereunder been in force on the date 01-1 which the s ~ i d ordcrs, dccisions or directions, notifications, proceedings, acts, or t hings,wcre m::d e, given. i s $ ucd, takcn or done, are hcrcby Jccl,:red to Ixive b c n v:rliuly made, ------ -
IThese words were slrl>s: i t uted for the word " M;tdres " by the TaailNadu Adaptat ion of Laws Order, 1969, as amended by the Tamil Nadu Adapt at ictlt of Laws (Second Amendmect) Order, 1969. *Now the Tc~nziC Nfitlir Go j~enmzent (;IIzetze,
26
. -4 -
1954 TON Act XXIX] ' Electricity Sq#'y '33 1 Undertakings (Acquisition)
given, issued, taken or done as the case r n h ~ : -, except to the extent to which the said o~ders, decisions, directionr, notific%tions, proceedings, acts, or things are repugna ~t to
the provisions of t hiq Act.
4
25. The Madras Electricity Supply Undertakings Repeal of
(Acquisition) Act, 1949 (Madras A n XLIII of 1949), is Madras hereby repealed. Act X L ~
of 1949.
!
I
SCHEDULE I.
[See section 5 (I)]
Part A-Apglicable to a licensee not baing a local authority,
1. For the purposes of section 5 (1) ' net annual profit ' shall, in respect of any account year subsequent to the date on which section 57 of the Electricit y Supply Act and the Sixth Schedule thereto came into force, means tbe excess of ' income ' over ' expenditure ' as defined below,
leas the sums ieferA bd LU aragraph 4 or, as the case ' B may be, pZas the sums referre to in paragraph 5.
2. For the purposes of fo~egoing paragrrph, ' income'
means income derived from-
(i) gross receipts from sale of energy, less discounts applicable thereto ;
(ii) rental of meters and other apparatus hired toI consumers ; I
I
(iii) sale and repair of lamps and apparatus ;
(iv) rents ;
(v) transfer fees ;
(vi) investments, fixed and call deposits, and ban&
balances ;
i 6 '
(vii) other general receipts acco~mtsblc in the assessment of Indian Income-tax and sri sing from and anciallaty or incidental to the business of electricity supply.
27
330 Electricity Supply 11954 : T.N. Act XXlX Undertaloings (Acquiuisition)
(3) All rules made under this section shall be pub- lished in the *Fort St. George Gazette, and upon such publication shall hilve effcct as if enacted in this Act.
Effect of a. (1) No provisioxl of the Electricity Act or of the
other laws. Electricity Supply Act or of the Madras City Municipal Act, 191 9(l[Tamil Nadu] Act IV of 191 9),or of thel[Tamil
Nadu] District hlunicipalities Act, 1920(l[Tamil Nadu] Act V of 1920), or ot thel[T~milNadu]District Boards Act, 1920 (l[Tamil Nadu] Act XIV of 1 920), or of t hel[Tarnil Nadu] Village Panchayats Act, 1950 ('[~arnil Nadu] Act Xof l95O),
or of any rule ma& under any of those Acts or of any instrument having eRxt by virtue of any o f t hose Acts or any rule made thereunder shal1,in sofaras it is inconsistent with any of the provisions of this Act, fiavc; any cffcct,
(2) Save as otherwise provided i n this Act, the pro- visions of this Act shall be in addition to, and not in derogation of, the Electricity Act and the Electricity Supply Act.
Power to 23. If ar,y difficulty arises in giving effect to the provi-
remove sions of this Act, the Ciover nrnent may, as occasion may difficulties*require, do anything which 2 pptak a ,.. i:k.~:i r .c. r;Eary for the purpose of rernovjilg the tliEculty.
A copy of every >,rcler passed under tbls section shall
be laid beforc each House oft he State Legislature.
Saving slid 24. Orders m?de, dec's:ons or d ierections given, noti* ficoions issued,proccrdings taken and acts or things done, in relation to any und,rt:)king teken over, if they would have been validly m:de, given, issued, t:rkcn er donc,
h9.d the M?dras Electricity Supply Und ert~kings (Acquisi- tion) Act, 1949, (Madras Act XLIII of 1949), ac! the rules made thereunder been in force on the date on which the s ~ i d orders, deci~isns or directions. i~oiific~tions, proceedings, acts, or t hi~~gs,wcre mr.d e, given. isrued, taken or done, are hcseby deci*!red to 112.ve been valitlip made,
*These words werc sctbs4 it uted for the word '' Madrlis " by the TamilNadu Adaptat ion of Laws Order, 1969, as amended by the Tamil Nadu Adaptat ion of Laws (Second Amendment) Order, 1969. *Now the Tg~nil N~dir Gs~*enznzent Gazette,
28
.
1954': IP.N Act XXEXl ~ ~ & c t i i c f t ~ ~ ~ ~ ~ ~ ~ - - - .- - 353 '
Undertakings (Arquisirion) i
\
5. The sums referred to in paragraph I as those to be added to the exctss of ' income ' o v ~ ' expend~ture ' are-
(a) Tho gppropriations from the Ta -iffs and Dividend Control Reserve to the extent , newssary by vitruc of paragraph I1 (2) of the Sixth Schedule aforesaid. ~ n d
-
(b) t h ~ trxes prid or payable inrespect of the appro. priations aforesaid as ta.xts on income aad pwfits.
Part B-A.ppIicable to ailicensee being n local authority.
For the purpose of section 5 (1) ' net annual profit ' in respect of any account yew of a licensee being a local authority shall b,: (i) the a m o m aclually appropriated, or
(ii) the amount which could b v e been a~propriated, to the
genmrl funds of tht local au?tority on account of the undertaking fcr that amount year n accordance with the audited accounts of the undertaking.
SCHEDULE 11,
LSee section 5 (311 For purposes of payment of compcnsntion u nd cr section S (3), the depreciation shall bd calculated at annual t;ates
a n ived at by dividing ninety per cent cf the book--value of each asset by the number of yegrs of life of the assel as specified in the table below. For the 2 ccount year in which an asset was brought into beneficial use, the depreciation shall be calculated at hzlfthe annualrate and for the period aftex thelast account year to the date cftaking over, the depreciation shall be @f:ulatud pro rata.
Depreciation shall not be calculated for any period beyond the life of the asset as preshibed herein.
29
334 Elcctvicit y Slipply [I954 : T.N. Act XXIX
Under tcrkirrgs ( A cquisi t ion)
Description of asset. Nuntber oj'yenw or period.
(2)
A. Land owned under full title . . . . Infinite. B. Land held under least: -
((1) for invcstrnc~lt i n 1 l-tc land . . . . 'The pcriocl of the lcase, or the perivd remain*
ing unexpired on the assignment of the
lease.
(6) for cost of clearing r-i t e . . . . The period of the lease remaining unexpired
at the dale of clearing
the site.
C. Assets purchased. new- --
(a) Plant and machinecy in pener,: r',,, stat ions, inclutling plant founda- t ions-
(i) Hydro-dectric .. .. Thirty-five.
(ii) Steam-electric , . . . Twenty-five.
(iii) Diesel-clectric . . . . Fiftee12.
(6) Cooling towers alld circulating Thirty. water systems.
I (c) Hydraulic works forming part of a hydroelectric syst e x , including-
(i) dams, spillways, weirs, canals, One hundred, reinforced concrete fiiimes
and syphons.
(ii) reinforced wncret c pipe-lines Forty, and surge t anks, st ccl pipe- lines, sluice gates, st eel surge tanks, hydraulic control valves and other hydraulic
luorks .
30
1w : T.N. Act XX~XJ secirtcity supply 335 Underiak inp; (Ac@yitfon)
TABLE- cant.
Description of asset. N ~ j h e r of years or period.
(0
4 (2)
C, Assets pui-chased new- cont.
(d) Buildings and civil engineering works of a pczmanent character, not mentioned above-
(i) offices and show-rooms . . Fifty.
(ii) Containing t herlno-eletric Thirty. generating plant.
(iii) Containing hydroelectric Thirty-five, generating plant
(iv) temporary erect ions such as Five. wooden structures,
(v) others .. . . . . Fifty,
(e) Transformer, Transformer kiosks, sub-stat ion equipment and other fixed apparatus (including plant foundations)-
(i) transformers (including founda- Thir t y-five. tions) having a rating of 100
kilo-valt amperes and over.
(ii) others . . . . . . Twenty-five.
(f) Swit chgear, including cable connect- Twent: l.
t ions.
(g) Batteries . . . . . . .. Ten.
(h) (1) Underground cables, including Fort ye
' joint boxes and disconnecting boxes.
(2) Cable dctct systems . . .. Sixty.
( i ) Overhead lines, including support s-
(i) lines on s t eelor reinforced concrete Thirty. supports, operating at nomi-
nal volt ages higher than
13.2 kilo volts.
(ii) other lines on st eel or reinfo:- Twent ymfive.
ced concrete supports.
(iii) lines on wood supports . . Twenty.
(j) Metres . . . . . . . . Fifteen,
F) SeIf-propelled vehicles . . . . Seven,
31
336 Eject r i n't y ,Ytlpply [I954 : 'I .it'. Act XXIX Undert akiirgs (Acquiuitio/t)
TAR LE- con t .
Description o f asset. 1TLTLinber a f'years
or pC,~iod
C. Assets purchased new- cor~t. ( I ) Static machine i ool:: * . . . , Twenf y.
(m) Air-condil ionin g pl,! nu - .
(i) Static . . . . . Fifteen'
(ii) Portable . . . . . . Scven.
(n) (i) Officefl!ruitcr .c :i,zd fittings . . Twct?ty.
(ii) Office equ iprrrenl # . , , 'Trtn,
(0) Apparatus let 011 hira-
(i) other t ha 11 1110 . ors . e , , Sevela
(ii) motors . . a . . . . Tivenl y.
D. Assets purchased seand hand and Such reasollablc perid assets not t,ttlerwise provided as I ; IC GotVcrrnmnent for in this t able. iiel~rtraine in each case, having regarti to the
i ~ i k ( lik C , ; i 1 ~ 1 ~ ~ i d i -
t io~k of tht* ;isset a1 1 he
t imc of its i t ~ q u i s i t i ~ ~
!" Y 1;r: Qs 3 gagj~rng~l,
32