Amendment status not verified — confirm the current text below against the official source.
(1) With effect from the date on which a transfer scheme prepared by the Government to give effect to the objects and purposes of this Act, is published or such further date as may be specified by the Government (hereinafter referred to as “the effective date”), any property, interest in property, rights and, liabilities which immediately before the effective date belonged to the Board shall vest in the Government. 15 (2) The Government may transfer such property, interest in property, rights and liabilities to any company or companies established under section 14 for the purpose in accordance with the transfer scheme prepared therefore. (3) Such of the rights and power to be exercised by the Board under the Electricity (Supply) Act, 1948, as the Government may, by notification in the official Gazette, specify, shall be exercisable by a company or companies established as the case may be, under section 14, for the purpose of discharge of the functions and duties with which it is entrusted. (4) Notwithstanding anything contained in this section or any other Act, where: - (a) the transfer scheme involves the transfer of any property or rights to any person or undertaking not wholly owned by the Government, the scheme shall give effect to the transfer only after asset valuation; and (b) where any transaction of any description is effected in pursuance of a transfer scheme, it shall be binding on all persons including third parties, even if such persons have not consented to it. (5) The Government may require any transmitting or distributing company established under the provisions of sub-section (1) of section 14 (hereinafter referred to as "the transferor licensee") or any generating company to draw up a transfer scheme to vest in a further licensee or licensees (the "transferee licensee or licensees"), or any generating company, any property, interest in property, rights and liabilities which have been vested in the transferor licensee or generating company, as the case may be, under this section and publish the same in the official Gazette. The transfer scheme to be notified under this sub-section shall have the same effect as a transfer scheme under sub-section (2). (6)A transfer scheme may- (a) provide for the formation of subsidiaries, joint venture companies or other schemes of division, amalgamation, merger, reconstruction or arrangements; (b) define the property, interest in property, rights and liabilities to be allocated- (i) by specifying or describing the property, rights and liabilities in question, (ii) by referring to all the property, interest in property, rights and liabilities comprised in a specified part of the transferor's under-taking, or (iii) partly in one way and partly in the other : Provided that the property, interest in property, rights and liabilities shall be subject to such further transfer as the Government may specify; (c) provide that any rights or liabilities specified or described in the scheme shall be enforceable by or against the transferor or the transferee; (d) impose on any licensee an obligation to enter into such written agreements with, or execute such other instruments in favour of any other subsequent licensee as may be specified in the scheme; 16 (e) make such supplemental, incidental and consequential provisions as the transferor licensee considers appropriate including provision specifying the order in which any transfer or transaction is to be regarded as taking effect; (f) provide that the transfer shall be provisional subject to the provisions of section 18. (7) All debts and obligations incurred, all contracts entered into and all matters and things done by, with or for the Board, or a company or companies established as the case may be, under section 14 or generating company or distribution company or companies before a transfer scheme becomes effective shall, to the extent specified in the relevant transfer scheme, be deemed to have been incurred, entered into or done by, with or for the Government or the transferee and all suits or other legal proceedings instituted by or against the Board or transferor, as the case may be, continued or instituted by or against the Government or concerned transferee, as the case may be. (8) In the event a licensee is required to vest any part of its undertakings in another licensee pursuant to sub-section (5), the Government shall amend the transferee licence in accordance with section 24 or revoke its licence in accordance with section 23. (9) The Board shall cease to exist with the transfer of functions and duties specified and with the transfer of assets as on the effective date. (10) The exercise by a licensee of any of Board’s rights and powers may be made on such conditions as shall be specified in the transfer scheme including a condition that such rights and powers shall be exercised by the licensee only with the approval of the Commission/Government.