THE NEYVELI LIGNITE CORPORATION LIMITED (ACQUISITION AND TRANSFER
OFPOWER TRANSMISSION SYSTEM) ACT, 1994 (AS PASSED BY
THE HOUSES OF PARLIAMENT)
ACT NO. 56 OF 1994
[14th September, 1994.]
An Act to provide in the public interest for the acquisition and
transfer of the power transmission system of the Neyveli Lignite
Corporation Limited and the right, title and interest of the company
in the power transmission system to the Power Grid Corporation of
India Limited, with a view to developing the National Power Grid to
ensure transmission of power, within and across the different regions
of India, on a more scientific, efficient and economic basis and for
matters connected therewith or incidental thereto.
BE it enacted by Parliament in the Forty-fifth Year of the
Republic of India as follows:--
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PRELIMINARY
CHAPTER I
PRELIMINARY
1.
Short title, extent and commencement.
1. Short title, extent and commencement. (1) This Act may be
called the Neyveli Lignite Corporation Limited (Acquisition and
Transfer of Power Transmission System) Act, 1994.
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(2) It extends to the whole of India except the State of Jammu
and Kashmir.
(3) The provisions of sections 8 to 11 and sections 13 to 16
shall come into force at once and the remaining provisions of this Act
shall be deemed to have come into force on the 1st day of April, 1992
and any reference to the commencement of this Act in any provision of
this Act shall be construed as a reference to the commencement of that
provision.
2.
Definitions.
2. Definitions. In this Act, unless the context otherwise
requires,--
(a) "appointed day" means the 1st day of April, 1992;
(b) "associated personnel" means the employees of the
company associated with its power transmission system;
(c) "company" means the Neyveli Lignite Corporation Limited,
a company incorporated and registered under the Companies Act,
1956 (1 of 1956) having its registered office at Neyveli-607801,
South Arcot District, Tamil Nadu;
(d) "Corporation" means the Power Grid Corporation of India
Limited, being a company within the meaning of the Companies Act,
1956 (1 of 1956) and having its registered office at Hemkunt
Chambers, 89, Nehru Place, New Delhi-110019;
(e) "notification" means a notification published in the
Official Gazette;
(f) "power transmission system", in relation to the company,
means the main transmission lines [including extra high voltage
alternative current (EHVAC) lines and high voltage direct current
(HVDC) lines] and sub-stations owned by the company;
(g) "prescribed" means prescribed by rules made under this
Act;
(h) words and expressions used herein and not defined but
defined in the Electricity (Supply) Act, 1948 (54 of 1948) or,
as the case may be, the Companies Act, 1956 (1 of 1956) shall
have the meanings, respectively, assigned to them in those Acts.
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ACQUISITION AND TRANSFER OF POWER TRANSMISSION SYSTEM
CHAPTER II
ACQUISITION AND TRANSFER OF POWER TRANSMISSION SYSTEM
3.
Acquisition of rights of company in relation to the power transmissionsystem.
3. Acquisition of rights of company in relation to the power
transmission system. (1) On the appointed day, the power transmission
system and the right, title and interest of the company in relation to
its power transmission system shall, by virtue of this Act, be deemed
to have been transferred to, and vested in, the Central Government.
(2) The power transmission system vested in the Central
Government by virtue of sub-section (1) shall, immediately after it
had so vested, be deemed to have been transferred to, and vested in,
the Corporation.
4.
General effect of vesting.
4. General effect of vesting. (1) The power transmission system
shall be deemed to include all assets, rights, leaseholds, powers,
authorities and privileges and all property, movable and immovable,
relating to such system including lands, buildings, workshops,
projects (whether complete or at any stage of completion or planning),
stores, spares, instruments, machinery and
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equipment, construction equipment, unutilised long-term and short-term
loans and all other rights and interests in, or arising out of, such
property as were, immediately before the appointed day, in the
ownership, possession, power or control of the company and all books
of account, registers and all other documents of whatever nature
relating thereto but shall be deemed not to include--
(a) book debts due to the company, immediately before the
appointed day;
(b) cash balances and bank balances as on the appointed day;
(c) income and expenditure on revenue account relating to
any period before the appointed day.
Explanation.--For the removal of doubts, it is hereby declared
that rights in relation to the power transmission system of the
company which have been transferred to, and vested in, the Corporation
under sub-section (2) of section 3 and this sub-section shall include
the right to collect transmission charges for transmission of power
and any monies collected on or after the appointed day by the company
as transmission charges (whether shown separately or not) shall be
payable by the company to the Corporation.
(2) Unless otherwise expressly provided by this Act, all deeds,
bonds, guarantees (other than guarantees given by the Government of
India), agreements, powers of attorney, grants of legal representation
and other instruments of whatever nature in relation to the power
transmission system of the company, subsisting or having effect
immediately before the appointed day, and to which the company is a
party or which are in favour of the said company shall be of as full
force and effect against or in favour of the Corporation and may be
enforced or acted upon as fully and effectually as if in the place of
the company, the Corporation had been a party thereto or as if they
had been issued in favour of the Corporation.
(3) If, on the date of commencement of this Act, any suit, appeal
or other proceeding of whatever nature, in relation to any property or
assets which have been transferred to, and vested in, the Corporation
under sub-section (2) of section 3, instituted or preferred by or
against the company was pending, the same shall not abate, be
discontinued or be, in any way, prejudicially affected by reason of
the transfer of the power transmission system of the company or of
anything contained in this Act, but the suit, appeal or other
proceeding may be continued, prosecuted or enforced, subject to the
provisions of sub-section (1) of section 5, by or against the
Corporation.
5.
Corporation to be liable for certain prior liabilities.
5. Corporation to be liable for certain prior liabilities. (1)
Subject to the provisions of sub-section (2), every liability of the
company in relation to its power transmission system, in respect of
any period prior to the appointed day, which has been transferred to,
and vested in, the Corporation under sub-section (2) of section 3,
shall be the liability of the Corporation and shall be enforceable
against the Corporation and not against the company:
Provided that nothing contained in this sub-section shall apply
to--
(a) the income and expenditure on revenue account relating
to any period before the appointed day and received or, as the
case
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may be, incurred by the company on or after the appointed day;
(b) arrears of depreciation, regarding contingent
liabilities on capital account relating to any period before the
appointed day, arising on account of the decision of any court,
tribunal or other authority.
(2) Where any repayment of a loan or interest, or both, has been
made, on or after the appointed day, by the company to any lending
agency, such repayment shall be deemed to have been made by the
Corporation and the amount of such repayment shall be reimbursed by
the Corporation to the company on adjustment of transmission charges
or any other amount due to the Corporation from the company.
6.
Corporation to be lessee or tenant.
6. Corporation to be lessee or tenant. (1) Where any property is
held by the company in relation to its power transmission system under
any lease or right of tenancy, the Corporation shall, on and from the
appointed day, be deemed to have become the lessee or tenant, as the
case may be, in respect of such property as if the lease or tenancy in
relation to such property had been granted to the Corporation and
thereupon all the rights under such lease or tenancy shall be deemed
to have been transferred to, and vested in, the Corporation.
(2) On the expiry of the term of any lease or tenancy referred to
in sub-section (1), such lease or tenancy shall, if so desired by the
Corporation, be renewed on the same terms and conditions on which the
lease or tenancy was held by the company immediately before the
appointed day.
7.
Removal of doubts.
7. Removal of doubts. (1) For the removal of doubts, it is hereby
declared that the provisions of sections 3, 4, 5 and 6 shall apply to
the extent to which any property appertains to the business relating
to the power transmission system carried on by the company and to the
rights and powers acquired, and to debts, liabilities and obligations
incurred, and to contracts, agreements and other instruments made by
the company and to legal proceedings relating to those matters pending
in any court, tribunal or other authority in India.
(2) If any question arises as to whether any property
appertained, on the appointed day, to any business of the company in
relation to its power transmission sytem, or whether any rights,
powers, debts, liabilities or obligations were acquired or incurred or
any contract, agreement or other instrument was made by the company
for the purposes of its said business, or whether any document relates
to those purposes, the question shall be referred to the Central
Government which shall, after giving a reasonable opportunity of being
heard to the persons interested in the matter, decide it in such
manner as it may think fit.
8.
Payment of amount.
8. Payment of amount. (1) For the transfer to, and vesting in,
the Central Government under sections 3 and 4 of the power
transmission system and the right, title and interest of the company
in relation to its power transmission system there shall be paid, in
the prescribed manner, by the Central Government to the company such
amount as is equal to the book value of all the assets and properties
after deduction of liabilities (other than contingent liabilities)
given in the audited statement of accounts of the company as on the
31st day of March. 1992.
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(2) For the transfer to, and vesting in, the Corporation under
sub-section (2) of section 3 of the power transmission system and the
right, title and interest of the company in relation to its power
transmission system, there shall be paid, in the prescribed manner, by
the Corporation to the Central Government, the amount which is paid by
that Government to the company under sub-section (1).
(3) In case of any dispute relating to the nature of any asset,
property or liability or the amount payable under sub-section (1), the
dispute shall be referred by the Central Government to such authority
as it may appoint and the decision of that authority in the matter
shall be final.
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DELIVERY OF ASSETS, ETC., TO THE CORPORATION
CHAPTER III
DELIVERY OF ASSETS, ETC., TO THE CORPORATION
9.
Duty of persons to account for assets, etc., in their possession.
9. Duty of persons to account for assets, etc., in their
possession. (1) Any person who has, on the date of commencement of
this Act, in his possession or under his control, any assets, books
and any other documents relating to the power transmission system
which has been transferred to, and vested in, the Corporation under
sub-section (2) of section 3, shall be liable to account for the said
assets, books and documents to the Corporation and shall deliver them
up to the Corporation or to such person or persons as the Corporation
may specify in this behalf.
(2) The Corporation may take or cause to be taken all necessary
steps for securing possession of the power transmission system which
has been transferred to, and vested in, the Corporation under this
Act.
(3) The company shall, within such period as the Corporation may
allow in this behalf, furnish to the Corporation a complete inventory
of all its property and assets as on the appointed day pertained to
its power transmission system which has been transferred to, and
vested in, the Corporation under sub-section (2) of section 3.
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PROVISIONS RELATING TO ASSOCIATED PERSONNEL
CHAPTER IV
PROVISIONS RELATING TO ASSOCIATED PERSONNEL
10.
Continuance of associated personnel.
10. Continuance of associated personnel. (1) On the vesting of
the power transmission system of the company in the Corporation, the
associated personnel who have been, immediately on or before the 1st
day of December, 1992, employed in the company and have not already
become employees of the Corporation shall become, on and from the date
of commencement of this Act, employees of the Corporation and shall
hold office or service under the Corporation on the terms and
conditions which are not in any way less favourable than those which
would have been admissible to them if there had been no such vesting
and shall continue to do so unless and until their employment under
the Corporation is duly terminated or until their remuneration and
other conditions of service are duly altered by the Corporation.
(2) Notwithstanding anything contained in the Industrial Disputes
Act, 1947 (14 of 1947) or any other law for the time being in force,
the transfer of the services of the associated personnel to the
Corporation, shall not entitle such personnel to any compensation
under this Act or any other law for the time being in force and no
such claim shall be entertained by any court, tribunal or other
authority.
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11.
Provident fund and other funds.
11. Provident fund and other funds. (1) Where the company has
established a provident fund or any other fund for the benefit of the
persons employed by it, the monies relatable to the associated
personnel who have already become employees of the Corporation or
whose services have become transferred under this Act to the
Corporation shall, out of the monies standing, on the date of transfer
of the associated personnel, to the credit of such provident fund or
other fund, stand transferred to, and vest in, the Corporation.
(2) The monies which stand transferred under sub-section (1) to
the Corporation shall be dealt with by the Corporation in such manner
as may be prescribed.
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MISCELLANEOUS
CHAPTER V
MISCELLANEOUS
12.
Act to have overriding effect.
12. Act to have overriding effect. The provisions of this Act
shall have effect notwithstanding anything inconsistent therewith
contained in any other law for the time being in force or in any
instrument having effect by virtue of any law, other than this Act, or
in any decree or order of any court, tribunal or other authority.
13.
Penalties.
13. Penalties. Any person who,--
(a) having in his possession, custody or control any
property forming part of the power transmission system of the
company wrongfully withholds such property from the Corporation;
or
(b) wrongfully obtain possession of, or retains, any
property forming part of the power transmission system of the
company; or
(c) wilfully withholds or fails to furnish to the
Corporation or any person or body of persons specified by the
Corporation, any document or inventory relating to the power
transmission system of the company, which may be in his
possession, custody or control; or
(d) fails to deliver to the Corporation or any person or
body of persons specified by that Corporation, any assets, books
of account, registers or other documents in his possession,
custody or control relating to the pnwer transmission system of
the company,
shall be punishable with imprisonment for a term which may extend to
two years and also with fine which may extend to ten thousand rupees.
14.
Offences by companies.
14. Offences by companies. (1) Where an offence punishable under
this Act has been committed by a company, every person who, at the
time the offence was committed, was in charge of, and was responsible
to, the company for the conduct of the business of the company, as
well as the company, shall be deemed to be guilty of the offence and
shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render
any such person liable to any punishment, if he proves that the
offence was committed without his knowledge and that he had exercised
all due diligence to prevent the commission of such offence.
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(2) Notwithstanding anything contained in sub-section (1), where
any offence under this Act has been committed by a company and it is
proved that the offence has been committed with the consent or
connivance of, or is attributable to any neglect on the part of, any
director, manager, secretary or other officer of the company, such
director, manager, secretary or other officer shall be deemed to be
guilty of that offence and shall be liable to be proceeded against and
punished accordingly.
Explanation.--For the purposes of this section,--
(a) "company" means any body corporate and includes a firm
or other association of individuals; and
(b) "director", in relation to a firm, means a partner in
the firm.
15.
Protection of action taken in good faith.
15. Protection of action taken in good faith. No suit,
prosecution or other legal proceeding shall lie against the Central
Government or the Corporation or the company or any officer of that
Government, Corporation or company or any other person authorised by
that Government, Corporation or company for anything which is in good
faith done or intended to be done under this Act.
16.
Power to make rules.
16. Power to make rules. (1) The Central Government may, by
notification, make rules for carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the
foregoing power, such rules may provide for all or any of the
following matters, namely:--
(a) the manner in which the amount is to be paid under sub-
section (1) or sub-section (2) of section 8;
(b) the manner in which the monies in any provident fund or
other fund, referred to in sub-section (2) of section 11, shall
be dealt with;
(c) any other matter which is required to be, or may be,
prescribed.
(3) Every rule made by the Central Government under this Act
shall be laid, as soon as may be after it is made, before each House
of Parliament, while it is in session, for a total period of thirty
days which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the rule or
both Houses agree that the rule should not be made, the rule shall
thereafter have effect only in such modified form or be of no effect,
as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything
previously done under that rule.
A. C. C. UNNI,
Aditional Secretary to the Govt. of India.
