Bharat Hydro Power Corporation Limited (Acquisition and Transfer of Undertaking) Act, 1996
No: 1 Dated: Jan, 06 1997
THE BHARAT HYDRO POWER CORPORATION LIMITED (ACQUISITION AND TRANSFER OF UNDERTAKING) ACT, 1996
ASSAM ACT NO. 1 OF 1997
An Act to provide for the acquisition, in the public interest, of the right, title and interest of the undertaking of the Bharat Hydro Power Corporation Limited and for matters connected therewith or incidental thereto.
Preamble. - Whereas the Bharat Hydro Power Corporation Limited, having its registered office in the State of Assam, has been engaged for speedy execution and completion of the Karbi Langpi (Lower Barapani) Hydro Electric Project for ensuring adequate supply of electricity in the State of Assam in view of the chronic shortages of power in the State ;
Whereas it was agreed upon in the Memorandum of Understanding entered into between the Government of Assam, the Assam State Electricity Board and the M/s. Subhas Projects and Marketing Limited on 25th March, 1993 that the project would be completed and would be commissioned by the month of June, 1995 ;
And whereas the company failed in the sole object of speedy execution of the project within the specified time ;
Whereas it is expedient in the public interest that the undertaking of the Bharat Hydro Power Corporation Limited should be acquired for the purpose of enabling the State Government to efficiently supervise, manage and execute the work expeditiously as to subserve the common good, in the context of the acute power shortage in the State ;
It is hereby enacted in the Forty-seventh Year of the Republic of India, as follows :
CHAPTER I
Preliminary
1. Short title, extent and commencement. - (1) This Act may be called the Bharat Hydro Power Corporation Limited (Acquisition and Transfer of Undertaking) Act, 1996.
(2) It shall extend to the whole of Assam.
(3) It shall be deemed to have come into force on the 30th November, 1996.
2. Definitions. - (1) In this Act, unless the context otherwise requires:-
(a) "appointed day" means the day on which this Act comes into force ;
(b) "Board" means the Assam State Electricity Board ;
(c) "company" means the Bharat Hydro Power Corporation Limited ;
(d) "Commission" means the commission constituted under Section 14 ;
(e) "fixed assets" includes works, spare parts, stores, tools, motor and other vehicles, office equipments and furniture ;
(f) "notification" means the notification published in the Official Gazette ;
(g) "project" means the Karbi Langpi (Lower Barapani) Hydro-Electric Project;
(h) "prescribed" means prescribed by rules made under this Act;
(i) "State Government" means the Government of Assam ;
(j) "Schedule" means the Schedule appended to this Act;
(k) "undertaking" means the Bharat Hydro Power Corporation undertaking owned and managed by the Bharat Hydro Power Corporation Limited;
(2) Words and expressions used herein and not defined, but defined in the Companies Act, 1956 shall have the same meanings respectively assigned to them in that Act.
CHAPTER II
Acquisition and Transfer of the Undertaking of the Company
3. Transfer to and vesting in the State Government of the undertaking of the company. - On the appointed day the undertaking of the company and the light, title and interest of the company in relation to its undertaking shall, by virtue of this Act, be transferred to and vest in the State Government:
Provided that nothing herein contained or contained in any other law for the time being in force or in the Memorandum or Articles of Association of the company shall preclude from transferring and vesting the undertaking of the company to the State Government.
4. General effect of vesting. - (1) On the appointed by the property, rights, liabilities and obligations specified herein below in respect of the company shall vest in the State Government:-
(i) all the fixed assets of the company and all the documents relating to the company ;
(ii) all the rights, liabilities and obligations of the company under hire purchase agreement, if any, for supply of materials or equipments made before the appointed day ;
(iii) all the rights, liabilities and obligations of the company entered into bona fide before the appointed day not being a contract relating to borrowing or lending of money or to the employment of staff.
(2) All the assets specified in clause (i) of sub-section (1) shall vest in the State Government free from all debts, mortgages, or similar obligations of the company or attaching to the company :
Provided that debts, mortgages or obligations shall attach to the amount payable under this Act for the assets.
(3) The rights and liabilities granted to the company under the relevant Electricity Act shall be deemed to have been terminated on the appointed day and all rights, liabilities and obligations, which were granted in favour of the company under any agreement to supply electricity shall be deemed to have devolved on the State Government:
Provided that when any such agreement is not in conformity with the rates and terms and conditions of supply approved by the State Government and in force on the appointed day, the agreement shall be voidable at the option of the State Government.
(4) Any contract, whether express or implied, or other arrangement, in so far it relates to the management of the affairs of the company in relation to its undertaking and in force immediately before the appointed day, shall be deemed to have terminated on the appointed day ;
(5) It shall be lawful for the State Government or their authorised representative on or after the appointed day to remove the obstructions, if any, and to take possession of the entire company, or as the case may be, the fixed assets and of all documents relating to the company which the State Government may require for carrying it on.
(6) All the liabilities and obligations, other than those vested in the State Government under clauses (i) and (iii) of sub-section (1) shall continue to be the liabilities and obligations of the company after the appointed day.
Explanation. - All the liabilities and obligations in respect of staff, taxes, provident fund, Employees State Insurance, industrial dispute and all other matters upto the appointed day, shall continue to be liabilities and obligations of the company.
5. State Government not liable for past liabilities. - (1) Liabilities of the undertaking of the company incurred in any period upto the appointed day shall be the liabilities of the company and shall be enforceable against it and not against the State Government or where the undertaking of the company are directed, under Section 6 to vest in the Board, against that Board :
Provided that the State Government may, after observing proper financial formalities and by notification, declare certain liabilities or class or classes of liabilities to be the liabilities of the State Government or the Board, as the case may be.
(2) No award, decree or order of any Court, Tribunal or other authority in relation to the undertaking of the company passed on or after the appointed day in respect of any matter, claim or dispute arising before the appointed day shall be enforceable against the State Government or against the Board where the undertaking of the company stands transferred to and vested in the Board under this Act.
(3) No legal liability for contravention before the appointed day by the undertaking of any provision of law, for the time being inforce, shall be enforceable against the State Government or where the undertaking of the company are directed under Section 6 to vest in the Board, against that Board.