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The Shillong Electric Supply Undertaking (Acquisition) Act, 1977

Meghalaya Act 10 of 1977

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(As passed by the Assembly)

(a) "Annual Account" means the account of the undertaking rendered to the Government annually under and in accordance with the Electricity Act;

(b) "Board" means the Meghalaya State Electricity Board constituted under Section 5 of the Electricity Supply Act;

(c) "Document" in relation to the undertaking, includes its books, accounts, registers, maps and plans, and all other documents of whatever nature relating to the undertaking;

(d) "Electricity Act" means the Indian Electricity Act, 1910 (Act 9 of 1910);

(e) "Electricity Supply Act" means the Electricity (Supply) Act, 1948 (Act 54 of 1948);

(f) "Fixed Assets" includes works, spare parts, stores, tools, motor and other vehicles, instruments office and other equipments and furniture;

(g) "Government" means the Government of Meghalaya;

(h) "Licensee" means the Shillong Hydro Electric Ltd.;

(i) "Prescribed" means prescribed by rules made under this Act;

(j) "Schedule" means the Schedule appended to this Act;

(k) "Undertaking" means the electric supply undertaking at Shillong owned and managed by the Shillong Hydro Electric Ltd.;

(l) "Vesting date" means the date and time on which the undertaking shall vest in the Government under Section 3 of this Act;

(m) "Works" includes electric supply lines, any land, buildings, structure, plant, machinery or apparatus required to supply energy and to carry into effect the object of a licence granted under the Electricity Act;

(n) Other expressions shall have the meanings respectively assigned to them in the Electricity Act.

(i) all the fixed assets of the licensee and all the documents relating to the undertaking;

(ii) all the rights, liabilities and obligations of the licensee under hire-purchase agreements, if any, for the supply of materials or equipment made bona fide before the vesting date;

(iii) all the rights, liabilities and obligations of the licensee under any other contract entered into bona fide before the vesting date, not being a contract relating to the borrowing or lending of money, or to the employment of staff;

(iv) (a) all cash and bank balances of the licence relatable to the undertaking on the vesting date;

(b) all amounts due or accruable or accrued to the licensee in connection with electrical energy supplied or other supplies made or services rendered by the licensee, in the course of operations of the undertaking, upto the vesting date; and

(c) all investments, loans, advances or deposits relatable to the operations of the undertaking, made by the licensee and outstanding on the vesting date except loans and advances to the employees of the licensee.

(i) the book value of all completed works in beneficial use pertaining to the undertaking and taken over by the Government (excluding works paid for by consumers) less depreciation calculated in accordance with the Schedule;

(ii) the book value of all works in progress taken over by the Government, excluding works paid for by consumers or prospective consumers;

(iii) the book value of all stores including spare parts taken over by the Government and in the case of used stores and spare parts, if taken over, such sum as may be decided upon by the Government;

(iv) the book value of all other fixed assets in use on the vesting date and taken over by the Government less depreciation calculated in accordance with the Schedule;

(v) the book value of all plants and equipments existing on the vesting date, if taken over by the Government, 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;

(vi) the amount due from consumers in respect of every hire-purchase agreement referred to in clause (ii) of sub-section (1) of Section 5, less a sum which bears to the difference between the total amount of the instalments and the original cost of the materials or equipment, the same proportion as the amount due bears to the total amount of the instalments;

(vii) any amount paid actually by the licensee in respect of every contract referred to in clause (iii) of sub- section (1) of Section 5;

(viii) the amount of cash and bank balances taken over by the Government under sub-clause (a) of clause (iv) of sub- section (1) of Section 5;

(ix) the value of the items taken over by the Government under sub-clauses (b) and (c) of clause (iv) of sub-section (1) of Section 5, less bad debts or unrealisable amounts, as the case may be.

(i) the purchase price paid 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;

(ii) the cost of supervision, if any, actually incurred and charged to the value of the assets in the books of the undertaking, but not exceeding fifteen per cent of the amount referred to in paragraph (i) :

(a) the amount, if any, already paid in advance;

(b) the amount, if any specified in Section 8;

(c) the amount payable, due, or accrued, if any, including interest and/or surcharge thereon, from the licensee to the Board, for energy supplied by the Board before the vesting date;

(d) all amount and arrears of interest, if any, thereon, due from the licensee to the Government;

(e) the amount, if any, equivalent to the loss sustained by the Government by reason of any property or rights belonging to the undertaking not having been handed over to the Government, 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 Act, together with any income which might have been realised by the Government if the property or rights had been handed over on the vesting date;

(f) the amount of all loans due from the licensee to any financial institutions constituted by or under the authority of the Government and arrears of interest, if any, thereon;

(g) all sums paid by 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 Government;

(h) all advances from consumers and prospective consumers, and all sums which have been or ought to be set aside to the credit of the consumer's fund, in so far as such advances or sums have not been paid over by the licensee to the Government;

(i) the amounts remaining in Tariffs and Dividends Control Reserve, Contingencies Reserve, Provident Fund and Staff Gratuity Fund accounts and the Development reserve, in so far as such amounts have not been paid over by the licensee to the Government;

(j) the amount, if any, as specified in sub-sections (2) and (3) of Section 10;

(k) the amount, if any, relating to debts, mortgages or obligations as mentioned in proviso to sub-section (2) of Section 5 :

(a) Whether any property belonging, or any right, liability or obligation attaching to the undertaking, vests in the Government;

(b) Whether any fixed asset forms part of the undertaking;

(c) Whether any contract including any contract or agreement referred to in clauses (ii) and (iii) of sub-section (1) of Section 5 has been entered into bona fide or not;

(d) Whether any agreement to supply electricity entered into by the licensee prior to the vesting date is of the nature referred to in the first proviso to sub-section (3) of Section 5;

(e) Any other dispute that may arise regarding the gross or net amount payable to the licensee under this Act.

Schedule

[See Section 6(1)]

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