Section 10

Amendment status not verified — confirm the current text below against the official source.

(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 iesi 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) of ? l ~ e T..niil Nadu Elecrricity St~l?;)ly Un(!el.takini\s, ( A c c ~ ~ ~ i s ~ ~ ~ o i , ~ k~ineridnic~~f Act, 1969 (Tamr l Nltciu /\cl 1 1 of 1W;C)) wltich was ct~+emed to have come irto loicc oil ~ J L G 1st July 1957. - - - - - \ (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 ; 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 afte~ effecting tl~e ::jppr(.qy i"ions to the 3cnei.al T!il*~iLs cf the local authority in ;\.ccoFdr;tllctl wit11 tilo turms of tl~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 tl~c Sixth SchcJulo to lhc Etoctricity Supply Act cainc i~zi,o force, it shall nlaan Il~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 ailli-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 nny 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~uritiej ~ i i d oth.l.: properties, if any, in ;,-h;<h rha .iame may has.@ b s n irive 14, in - -- - -. - . - 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- 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 Govei~i~~i~ub il~ any 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 cl~~usc (a) shall ~Szquise the Gov~rn- m ~ n t +o d~tcrmine !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 taka over, the Gov~rnrnent hgve deter mint a the am~unt 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 an 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. - . 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 hally 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 to 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 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 thatrs deteiminetl 01 deemed tc have determined by the Government unc' er clause (a), the a mor nt ,if any, to which it is finally decij~rl 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 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 i n sectioii 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.