Amendment status not verified — confirm the current text below against the official source.
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 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 it 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 ~ 31~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 solztiu~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~il 01 er .ill.- Gcn-en::nex: :i::,! 12 &r: caje * . - - - - - -- - ,~fuwL! s:J:23 :*-:: <:-::- :-LYc. 5:*-- 2 ---- -; -2, - - - . . . . - 'a ti\ i ~ ? :b'>:. - .-:..& Q<cJ~ C I ~ Z T fcc2,j zzi2t j i~ b ~ c an tb3 vcjring L i ~ i z .:rid ::>ii&d O V Z ~ id ihf Guremment /es.,- depreciation calculstlrd in accordance with Schedule 11; (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 tl~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. 314 EIL7ctricaitj Sipply ji954: 'L'.N. Act XXIX ~~~dertsiiittgs ( A cq~11'Sil" ~QIZ) 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 of 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