Amendment status not verified — confirm the current text below against the official source.
Act to apply to undertaking voluntarily handed over to Government. SCHEDULE. * * * * STATEMENTS OF OBJECTS AND REASONS I Act 36 of 1974.- Seven private electrical undertakings are presently engaged in the distribution and supply of electricity in their respective licensed areas in the Belgaum Division of the State under the licenses granted to them by the erstwhile Bombay Government under section 3 of the Indian Electricity Act 1910. In addition to these, a co-operative society set up under the Pilot Scheme of the Government of India has also been authorised under Indian Electricity Act to distribute power within the Hukkeri Taluk of the State. The period of licenses granted to the seven private electrical undertaking by the erstwhile Bombay Government vary from 30 to 40 years. As and when the licenses expire, the State Electricity Board has under the provision of section 6 of the Indian Electricity Act the option of purchasing the undertakings after giving necessary notice to the licensees, in writing and the licensees are required to sell their undertaking to the Board. 2 With the importance given by Government to the Rural Electrification Programme for economic development of the rural areas, it has been found that the growing demands for the rural parts of the licensed area may not be met adequately by the licensees and the interest of the consumers in these area will be better served by the Board with its vast orginisational and material resources at its disposal. In the present changed circumstances, it is also considered that it will not be a healthy practice to allow private licensees to function when the Statutory Electricity Board charged with the same duty is functioning in the State. To do away with this anomalous situation, it is considered necessary to take over all the private electrical undertakings by a special legislation so that the supply of power to the consumers in the respective licensed area will be smooth and satisfactory as in the case of other areas where electricity is applied by the State Electricity Board. It is accordingly proposed to take over all the seven private electrical undertakings and hence the Bill. (Published in the Karnataka Gazette (Extraordinary) Part IV- 2A, as No. 789, dated 13-5-1974 at page 22.) II Amending Act 5 of 1976.- Sub-section (2) of section 13 of the Act enables the Government to make an application for relief in respect of any of the transactions enumerated in sub-section (1) which, in the opinion of Government, is unreasonable or made with lack of prudence, within one year from the date of vesting to a Tribunal to be constituted under section 14. Writ petitions were filed in the High court of Karnataka challenging the validity of the Act and also against the possession by the Karnataka Electricity Board of the undertakings which have been taken over by Government. These writ petitions were admitted and a stay was also granted by the High Court of Karnataka. Against the stay both the State Government and the Karnataka Electricity Board preferred appeals which were allowed with certain restrictions but the possession of the undertaking by the Karnataka Electricity Board remained unaltered. Consequent to the litigations that ensued immediately after the vesting date, the majority of ex-licensees did not hand over all documents pertaining to the undertakings vested in Government and few documents were handed over by others. Also the restrictions imposed by the High Court, rendered the Karnataka Electricity Board unable to take action under sub-section (3) of section 8 of the Act to secure possession of all the assets and documents of the undertakings. Hence it was considered necessary to extend the period of limitation for making application for relief under section 13 from one year to two years. (Obtained from L.A. Bill No. 3 of 1976.) (Published as Notification No.10884 LA dated 20.1.1976 in Karnataka Gazette dated 22-1- 1976 at page 27.) III Amending Act 6 of 1977.- Sub-section (2) of section 13 of the Act enables the Government to make an application for relief in respect of any of the transactions enumerated in sub-section (1) which, in the opinion of Government, is unreasonable or made with lack of prudence, within one year from the date of vesting to a Tribunal to be constituted under section 14. Writ petitions were filed in the High Court of Karnataka challenging the validity of the Act and also against the possession by the Karnataka Electricity Board of the undertakings which have been taken over by Government. These writ petitions were admitted and a stay was also granted by the High Court of Karnataka. Against the stay both the State Government and the Karnataka Electricity Board preferred appeals which were allowed with certain restrictions but the possession of the undertaking by the Karnataka Electricity Board remained unaltered. 3 Consequent to the litigations that ensued immediately after the vesting date, the majority of ex-licensees did not hand over all documents pertaining to the undertakings vested in Government and few documents were handed over by others. Also the restrictions imposed by the High Court, rendered the Karnataka Electricity Board unable to take action under sub-section (3) of section 8 of the Act to secure possession of all the assets and documents of the undertakings. Hence it was considered necessary to extend the period of limitation for making application for relief under section 13 from two years to threes years. In the circumstances, an Ordinance was promulgated. This Bill seeks to replace the said Ordinance. (Published in the Karnataka Gazette (Extraordinary) Part IV- 2A, as No. 238, dated 28-3-1977 at pages 2-3.) IV Amending Act 23 of 1978.- Sub-section (2) of section 13 of the Act enables the Government to make an application for relief in respect of any of the transactions enumerated in sub-section (1) which, in the opinion of Government, is unreasonable or made with lack of prudence, within one year from the date of vesting to a Tribunal to be constituted under section 14. Writ petitions were filed in the High court of Karnataka challenging the validity of the Act and also against the possession by the Karnataka Electricity Board of the undertakings which have been taken over by Government. These writ petitions were admitted and a stay was also granted by the High Court of Karnataka. Against the stay both the State Government and the Karnataka Electricity Board preferred appeals which were allowed with certain restrictions but the possession of the undertaking by the Karnataka Electricity Board remained unaltered. Consequent to the litigations that ensued immediately after the vesting date, the majority of ex-licensees did not hand over all documents pertaining to the undertakings vested in Government and few documents were handed over by others. Also the restrictions imposed by the High Court, rendered the Karnataka Electricity Board unable to take action under sub-section (3) of section 8 of the Act to secure possession of all the assets and documents of the undertakings. Hence it was considered necessary to extend the period of limitation for making application for relief under section 13 from three year to five years. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary) Part IV- 2A, as No. 1128, dated 9-8-1978 at page 3.) V Amending Act 14 of 1981.- In the Karnataka Electricity Supply Undertakings (Acquisition) Act 1974 by which seven private electric companies were taken over by the Government, the amount payable for acquisition is determined on the book value of the assets. There is no provision now in the Act for payment of solatium. Normally, in the case of acquisitions, solatium is paid in view of the compulsory nature of the acquisition. Analogous statutes in several other States provide for the payment of such solatium. In these circumstances and having considered the representation made by the Companies, it is intended to provide for payment of solatium at ten per cent by suitably amending the Act. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary) Part IV- 2A, as No. 101, dated 3-2-1981 at page 3.) 4 VI Amending Act 9 of 1995.- The High Court of Karnataka in their order in W.P.Nos 6761/1974 and 6762/1974 struck down the Karnataka Electricity supply Undertakings (Acquisition) Act, 1974 (Karnataka Act 36 of 1974) on the ground that the Act was unworkable as it did not provide for some machinery or adjudicatory forum for resolution of the dispute arising from the provisions of the Act, particularly section 5, 6 and 7. The matter is now pending before the Supreme court in Civil appeal No. 2573 / 74 of 1982 and likely to be listed for final hearing shortly. Therefore, it is considered necessary to amend the Act to provide for making application to the tribunal constituted under section 14 in respect of disputes arising from sections 5, 6 & 7. Since the matter was urgent and the Karnataka Legislative Assembly was not in session, the Karnataka Electricity Supply Undertaking (Acquisition) (Amendment) Ordinance, 1995 (Karnataka Ordinance 2 of 1995) was promulgated to achieve the above object. Hence the Bill. (Obtained from L.A. Bill No. 7 of 1995.) * * * * 5 KARNATAKA ACT NO. 36 OF 1974 (First published in the Karnataka Gazette, Extraordinary on the Seventeenth day of December, 1974) THE KARNATAKA ELECTRICITY SUPPLY UNDERTAKINGS (ACQUISITION) ACT, 1974 (Received the assent of the President on the Twelfth day of December, 1974). (As Amended by Acts 5 of 1976, 6 of 1977, 23 of 1978, 14 of 1981, 9 of 1995.) An Act to provide for the acquisition of electrical undertakings in the State of Karnataka, supplying electricity for the purpose of ensuring better supply of electricity to the general public. WHEREAS it is expedient for the purpose of ensuring better supply of electricity to the general public, to provide for the acquisition of electrical undertakings in the State of Karnataka supplying electricity to the public other than such undertakings belonging to and under the control of, (a) the Karnataka Electricity Board constituted under section 5 of the Electricity (Supply) Act, 1948 (Central Act LIV of 1948) and (b) a co-operative society, and matters connected therewith and incidental thereto; BE it enacted by the Karnataka State Legislature in the Twenty-fifth Year of the Republic of India as follows:-