THE NATIONAL THERMAL POWER CORPORATION LIMITED, THE
NATIONAL HYDROELECTRIC POWER CORPORATION LIMITED AND THE
NORTH-EASTERN ELECTRIC POWER CORPORATION LIMITED (ACQUISITION
AND TRANS- FER OF POWER TRANSMISSION SYSTEMS) ACT, 1993
NO. 24 OF 1993
[2nd April, 1993.]
An Act to provide in the public interest for the acquisition and
transfer of the power transmission systems of the three companies and
the right, title and interest of those companies in the power
transmission system situated in different parts of India, 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-fourth Year of the Republic
of India as follows:--
CHAP
PRELIMINARY
CHAPTER I
PRELIMINARY
1.
Short title, extent and commencement.
1.Short title, extent and commencement. (1) This Act may be
called the National Thermal Power Corporation Limited, the National
Hydroelectric Power Corporation Limited and the North-Eastern Electric
Power Corporation Limited (Acquisition and Transfer of Power
Transmission Systems) Act, 1993.
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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
be deemed to have come into force on the 8th day of January, 1993 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 each of the
three companies associated with its power transmission system;
(c) "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;
(d) "notification" means a notification published in the
Official Gazette;
(e) "power transmission system", in relation to each
company specified in the First Schedule, 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 each such company;
(f) "prescribed" means prescribed by rules made under this
Act;
(g) "three companies" means the companies specified in the
First Schedule;
(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, as signed to them in
those Acts.
CHAP
ACQUISITION AND TRANSFER OF POWER TRANSMISSION SYSTEM.
CHAPTER II
ACQUISITION AND TRANSFER OF POWER TRANSMISSION SYSTEM
3.
Acquisition of rights of three companies in relation to the
powertransmission systems.
3.Acquisition of rights of three companies in relation to the
power transmission systems. (1) On the appointed day, the power
transmission system and the right, title and interest of each of the
three companies 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 systems vested in the Central Gov-
ernment by virtue of sub-section (1) shall, immediately after they 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 three companies 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 three companies 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 each of
the three companies 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 any of the three companies as transmission charges
(whether shown separately or not) shall be payable by such 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 each of the three companies,
subsisting or having effect immediately before the appointed day, and
to which each of the three companies is a party or which are in favour
of any of the said companies 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 concerned
company, the Corporation had been a party thereto or as if they had
been issued in favour of the Corporation.
(3) If, on the 8th day of January, 1993 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 any of the three companies 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 that
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 each
of the three companies 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 may
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be, incurred by any of the three companies 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 any of the three companies to
any lending agency, such repayment shall be deemed to have been made
by the Corporation' and the amount of such repayment shall be reim-
bursed by the Corporation to the concerned company on adjustment of
transmission charges or any other amount due to the Corporation from
the concerned company.
6.
Corporation to be lessee or tenant.
6.Corporation to be lessee or tenant. (1) Where any property is
held by any of the three companies 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 any of the three companies
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 three companies and
to the rights and powers acquired, and to debts, liabilities and
obligations incurred, and to contracts, agreements and other
instruments made by any of the three companies 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 any of the three
companies in relation to its power transmission system, or whether any
rights, powers, debts, liabilities or obligations were acquired or
incurred or any contract, agreement or other instrument was made by
any of the three companies 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 each of the
three companies in relation to Its power transmission system, there
shall be paid, in the prescribed manner, by the Central Government to
each of the three companies 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
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statement of accounts of each of the three companies as on the 31st
day of March, 1992.
(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 each of the three companies 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 three companies 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.
CHAP
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) Each of the three companies 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.
CHAP
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 three companies in the Corporation,
the associated personnel who have been, immediately on or before the
appointed day, employed in any of the three companies 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 any of the three
companies 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.
CHAP
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 any of the
three companies wrongfully withholds such property from the
Corporation; or
(b) wrongfully obtains possession of, or, retains, any
property forming part of the power transmission system of any
of the three companies; 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 any of the three companies, 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 amount, registers or other documents in his
possession, custody, or control relating to the power
transmission system of any of the three companies,
shall be punishablewith imprisonment for a term which may extend to
two years and also with fine which may extend to ten thousand rupees.
14.
Offence by companies.
14.Offence 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.
(2) Notwithstanding anything contained in sub-section (1), where
any offence under this Act has been committed by a company and it
7
is proved that the offence has been committed with the consent or con-
nivance 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 any of the three companies 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 pre-
viously done under that rule.
17.
Repeal and saving.
17.Repeal and saving. (1) The National Thermal Power Corporation
Limited, the National Hydroelectric Power Corporation Limited and the
North-Eastern Electric Power Corporation limited (Acquisition and
Transfer of Power Transmission Systems) Ordinance, 1993 (Ord. 10 of
1993) is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action
taken under the said Ordinance, shall be deemed to have been done or
taken under the corresponding provisions of this Act.
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SCHE
[See section 2 (e) and (g)
THE SCHEDULE
[See section 2 (e) and (g)
NAMES OF COMPANIES
1. The National Thermal Power Corporation Limited, a company
incorporated and registered under the Companies Act, 1956 having its
registered office in Core No. 7, SCOPE Complex, Lodhi Road, New Delhi-
110 003.
2. The National Hydroelectric Power Corporation Limited, a
company incorporated and registered under the Companies Act, 1956
having its registered office at Hemkunt Tower, 98, Nehru Place, New
Delhi-110 019.
3. The North-Eastern Electric Power Corporation Limited, a
company incorporated and registered under the Companies Act, 1956
having its registered office at Kharmalki Road, Shillong-793001.
