Power of State Government and local authorities to purchase aerial ropeways for public traffic.

(1) When an order under section 10 has been made in favour of promoter of any aerial ropeway for public traffic not being a local authority, the State Government, or a local authority specified in the order published under the said section 10 shall on the expiration of such period not exceeding twenty-one years, and of every such subsequent period, not exceeding seven years, as shall be specified in such order, have the option of purchasing the under taking and if the State Government, or the local authority with the previous sanction of the State Government, elects to so purchase the undertaking the promoter shall sell the undertaking to the State Government or to the local authority, as the case may be, on payment of the value of all lands, buildings, works, materials, plants and apparatus of the promoter suitable to and used by him for the purposes of the undertaking, such value to be in case of difference or dispute determined by arbitration; Provided that the value of such lands, buildings, works, materials, plants and apparatus shall be deemed to the their fair market value at the time of purchase, due regard being had to the rapture and condition for the time being of such lands, buildings, works, materials, plant and apparatus and to the state of repair thereof, and to the circumstances that they are in such a position as to be ready for immediate working, and to the suitability of the same for the purposes of the undertaking. (2) Where a purchase has been effected under sub-section (1) (a) the undertaking shall vest in the purchase free from any debts, mortgages or similar obligations of the promoter or attaching to the undertaking; Provided that any such, debts mortgages or similar obligations shall attach to the purchase money in substitution for the undertaking; and (b) save as aforesaid, the order published under section 10 shall remain in full force, and the purchaser shall be deemed to the promoter: Provided that where the State Government elects to purchase, the order under section 10 shall, after purchase, in so far as the State Government is concerned, cease to have any further operation but all the other provisions of this Act excepting section 33 in so far as they relate to aerial ropeways for public traffic shall apply in respect of the undertaking so purchased by the State Government. (3) Not less than two years’ notice in writing of any election to purchase under this section shall be served upon the promoter by the State Government or the local authority, as the case may be. (4) Notwithstanding anything hereinbefore contained, a local authority may with the previous sanction of the State Government, waive its option to purchase and enter in to an agreement with the promoter for the working by him of the undertaking until the expiration of the next subsequent period referred to in sub-section (1) upon such terms and conditions as may be stated in the agreement.