Amendment status not verified — confirm the current text below against the official source.
(1) On and with effect from the date on which a transfer scheme prepared by the State Government to give effect to the object and purposes of this Act is published or such further date as may be prescribed by the State Government, (hereinafter referred to as the effective date), any property, interest in property, rights and liabilities which immediately before the effective date belong to the Board shall vest in the State Government on such terms as may be agreed between the State Government and the Board. (2) Any property, interest in property, rights and liabilities vested in the State Government under sub-section (1) shall be revested by the State Government in the Transco and generating company(ies) in accordance with the transfer scheme so published alongwith such other property, interest in property, rights and liabilities of State Government as may be specified in such scheme, on such terms and conditions as may be agreed between the State Government and the Transco or generating company(ies), as the case may be. The State Government would consult the major lenders while finalizing the transfer scheme. The State Government would continue to guarantee all the liabilities transferred to the successor companies. Explanation: For the purposes of this chapter generating company(ies) shall mean the company or companies to be incorporated by the State Government to implement the reorganisation of the Electricity Industry in the State. Annual Accounts of licensee. Reorganisation of State Electricity Board. ELECTRICITY REFORM [1998 : Hr. Act 10 99 (3) Such of the rights and power exercisable by the Board under the Electricity Supply Act, 1948 as the State Government may, by notification, specify shall be exercisable by the Transco or generating company(ies), as the case may be, for the purpose of discharging the functions and duties with which it is charged. (4) Notwithstanding anything in this section, where (a) the transfer scheme involves the transfer of any property or rights to any person or undertaking not wholly owned by the State Government, the scheme shall give effect to the transfer only for fair value to be paid by the transferee to the State Government. (b) a 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 third parties have not consented to it. (5) The State Government may, after consulting the Transco (the “transferor licensee”), or generating company(ies), as the case may be, require them to draw up a transfer scheme to vest in a further licensee (the “transferee licensee”) or any generating companies, any property, interest in property, rights and liabilities which have been vested in the transferor licensee or generating companies, as the case may be, under this section. (6) A transfer scheme may:— (a) 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 undertaking; or (iii) partly in the one way and partly in the other; (iv) provide that in case of transfer scheme made for distribution of the property, interest in property, rights and liabilities could be allocated either to a wholly State owned undertaking or a Joint Venture Company. (b) provide that any rights or liabilities specified or described in the scheme shall be enforceable by or against the transferor or the transferee; (c) impose on any licensee an obligation to enter into such written agreements with, or execute such other instruments ELECTRICITY REFORM 1998 : Hr. Act 10] 100 in favour of, any other subsequent licensee as may be specified in the scheme; and (d) 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. (7) All debts and obligations incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Board, or the Transco or generating company(ies) 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 State Government or the transferee and all suits or other legal proceedings instituted by or against the Board or transferor, as the case may be, may be continued or instituted by or against the State Government or concerned transferee, as the case may be. (8) In the event that a licensee is required to vest any part of its undertaking in another licensee pursuant to sub-section (5), the Commission shall amend the transferee licensee’s in accordance with section 19 or revoke its licence in accordance with section 18. (9) The Board shall cease to be charged with, and shall not perform, the functions and duties specified in sub-section (3) with regard to transfers made on and after the effective date. (10) The exercise by a licensee of any of the Board’s rights and powers may be made on such conditions as shall be specified in the transfer scheme including a condition that they shall be exercised by the licensee only with the approval of the Commission.