Chapter VII PURCHASE OF AERIAL ROPEWAYS

(1) Where the promoter is the State Government, it may at any time sell the aerial ropeway- (a) to a local authority, or (b) to any other person under such terms and conditions as may be mutually agreed upon between the State Government and the transferee. (2) Where the promoter is not the State Government, the State Government may- (a) within such limits of time and upon such terms and conditions as may be specified in this behalf in the order, or (b) if a time was not specified in the order, then within six months after the expiration of a period of twenty-one years from the date of the order, and within six months after the expiration of every subsequent period of seven years, or (c) within two months after the publication of a notification under section 22 or within six months after the publication of a notification under section 26, by notice in writing, require the promoter to sell to the State Government or to a local authority the aerial ropeway or a part thereof, and thereupon the promoter shall sell the same upon the terms specified in the order, or if the terms were not specified in the order, then upon the terms of receiving the then value of the aerial ropeway or of the part thereof. The then value of the aerial ropeway, shall be deemed to be twenty-five times the amount of the average yearly net earnings derived by the promoter from the aerial ropeway or part thereof, during the three years immediately preceding the date of sale: Provided that if the terms were not specified in the order published under section 7, the total amount so payable to the promoter shall not exceed by more than twenty per cent the total capital expenditure of the promoter on the aerial ropeway, or part thereof. (3) A requisition shall not be made under sub-section (2) requiring the promoter to sell to the local authority unless the making thereof has been approved by the local authority. (4) When a sale has been made under this section, all the rights, powers and authorities of the promoter in respect of the undertaking or part thereof sold, or, where a notification has been published under section 22 or section 26, all the rights, powers and authorities of the promoter previous to the publication of the notification in respect of the undertaking or part thereof sold, shall be transferred to the authorities to whom the undertaking or part has been sold, and shall vest in, and may be exercised by, that authority in the same manner as if the aerial ropeway had been constructed by it under an order made under this Act. (5) Subject to, and in accordance with the preceding provisions of this section, two or more local authorities may jointly purchase an undertaking or so much thereof as is within their circles. (6) Where a purchase has been effected under sub-section (1) or sub-section (5),- (a) the undertaking shall vest in the purchaser 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 of the undertaking; and (b) save as aforesaid, the order published under section 7 shall remain in full force and the purchaser shall be deemed to be the promoter: Provided that where the State Government elects to purchase, the order under section 7 shall, after purchase, in so far as the State Government is concerned, cease to have any further operation. (7) Not less than two years' notice in writing of any election to purchase under clause (a) or clause (b) of sub-section (2) of this section shall be served upon the promoter by the State Government or the local authority, as the case may be. (8) Notwithstanding anything hereinbefore contained, a local authority may, with the previous sanction of the State Government, waive its option to purchase and enter into an agreement with the promoter for the working by him of the undertaking until the expiration of the next subsequent period mentioned in the order or referred to in clause (b) of sub-section (2), upon such terms and conditions as may be stated in the agreement.

Where, on the expiration of any of the periods referred to in section 24, neither the State Government nor local authority purchases the undertaking, and the order published under section 7 is, on the application or with the consent of the promoter, revoked, the promoter shall have the option of disposing of all lands, buildings, works, materials, plants and apparatus belonging to the undertaking in such manner as he may think fit.