IE Act 4
Section 4 · Substitution of Section 7-A of Central Act 9 of 1910
Text size — level 1 of 4
- For Section 7-A of the principal Act, the following section shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1960 and any proceedings pending before any court or before the arbitrator or umpire shall cease and of no effect namely :-"7-A. Determination of purchase money. - (1) Where an undertaking of a licensee is sold under sub-section (1) of Section 5 or is purchased under Section 6, the purchase-money therefor shall be determined as hereinafter provided.(i)enforcing the attendance of any person and examining him on oath; (ii)compelling the production of documents; and (iii)issuing commissions for the examination of witnesses.
(2)
The gross purchase-money to such licensee shall be the aggregate value of the amount specified below :-(i)
the book value of all completed works in beneficial use pertaining to the undertaking and taken over by the Haryana State Electricity Board, the State Government or local authority, as the case may be (excluding works constructed at the costs of local bodies for street light and works paid for by consumers), less depreciation calculated in accordance with Sixth Schedule read with the Seventh Schedule to the Electricity (Supply) Act, 1948;(ii)
the book value of all works in progress taken over excluding works paid for the consumers or protective consumers;(iii)
the book value of all stores, including spare parts taken over, and in the case of used stores and spare parts, if taken over, such sum as may be decided upon by the Special Officer;(iv)
the book value of all other fixed assets in use on the date of vesting (hereinafter referred to as the vesting date) and taken over under Section 7 less depreciation calculated in accordance with the schedules referred to in clause (i);(v)
the book value of all plants and equipments existing on the vesting date if taken over, 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 the schedule referred to in clause (i).(a)
the purchase price paid in good faith by the licensee for the asset, including the cost of delivery and all charges properly incurred in erecting and bringing the asset into beneficial use as shown in the books of the undertaking; and(b)
the cost of supervision actually incurred, but not exceeding fifteen per cent of the amount referred to in paragraph (a) :(3)
A sum equal to 10 per cent of the amounts assessed under clauses (i) to (v) of sub-section (2) shall be paid to the licensee in respect of the compulsory purchase under Section 6.(4)
When any asset is acquired by the licensee after the expiry of the period to which the latest annual accounts relate, the book value of the asset shall be such as may be decided upon by the Special Officer;Provided that before deciding the book value of any such asset, the licensee shall be given an opportunity by the Special Officer of being heard, after giving him a notice of at least 15 days therefor.(5)
The purchaser shall be entitled to deduct the following sums from the gross purchase money under the foregoing sub-section -(a)
the amount, if any, already paid in advance;(b)
where the purchaser is the Haryana State Electricity Board, the amount due, if any, including interest thereon, from the licensee to the Board, for energy supplied by the Board before the vesting date;(c)
all amounts and arrears of interest, if any thereon due from the licensee to the State Government or the Haryana State Electricity Board;(d)
the amount, if any, equivalent to the loss sustained by the purchaser by reason of property or rights belonging to the undertaking not having been handed over to the purchaser, the amount of such loss being deemed to be the amount by which the market value of such property or rights exceeds the amount payable therefor under this section, together with any income which might have been realised by the purchaser, if the property or rights had been handed over on the vesting date;(e)
all sums paid by the consumers by way of security deposit and arrears of interest due thereon on the vesting date; in so far as they have not been paid over by the licensee to the purchaser, less the amounts which according to the books of the licensee are due from the respective consumers to the licensee for energy supplied by him before that date;(f)
all advances from consumers and prospective consumers, and sums which have been or ought to be set aside to the credit of the consumers, insofar as such advances or sums have not been paid over by the licensee to the purchaser;(g)
the amounts remaining in Tariffs and Dividends Control Reserve, Contingencies Reserve and the Development Reserve, insofar as such amounts have not been paid over by the licensee to the purchaser.(6)
The State Government shall appoint, by order in writing, a person having adequate knowledge and experience in matter relating to accounts, to be the Special Officer to assess the net purchase-money under this section to the licensee, after making the deductions mentioned in this section.(7)
(a)
The Special Officer may call for the assistance of such officers and staff of the State Government or the Haryana State Electricity Board or the licensee, as he may deem fit, in assessing the net purchase-money.(b)
The Special Officer shall have the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 (Central Act V of 1908), when trying a suit, in respect of the following matters :-(c)
The Special Officer shall, also have such further powers as may be specified by the State Government by notification in the Official Gazette.(8)
Where the gross purchase-money is -(a)
equal to the total amount to be deducted under this Section, no payment shall be made to the licensee by the purchaser;(b)
less than the total amount to be deducted under this section, the difference between the gross purchase-money so payable and the total amount to be deducted shall on a certificate of the Special Officer be recoverable as arrears of land revenue.(9)
Where any amounts not belonging to it have been deducted by the purchaser under clause (c), clause (e), clause (f) or clause (g) of sub-section (5) or recovered under sub-section (8), the liability of the licensee towards the State Government or other bodies or consumers or prospective consumers, as the case may be, shall to the extent of the deduction and recoveries so made, stand discharged and the purchaser shall in substitution of the licensee become liable towards them to that extent :".Your private note on this section
Only you can see this note.