Chapter VI REORGANISATION OF THE BOARD

1. (1) The State Government may from time to time frame rules to provide for transfer schemes to reorganise the Board and to effect the transfer of such of the functions, duties, powers and obligations and such of undertakings of the Board or such portion thereof consisting of assets, properties, interest in properties, proceedings and liabilities in the manner and on the terms and conditions which the State Government may provide in the transfer scheme.
2. (2) On and from the date the transfer scheme under sub-section (1) is published or on and with effect from such further date as may be specified in such transfer scheme, (hereinafter referred to as the effective date), the State Government may provide that such of the undertakings of the Board consisting of assets, properties, interest in properties, proceedings, liabilities, rights and obligations or such portions thereof which immediately before the effective date belong to the Board shall stand transferred to and vest in the State Government on the terms and conditions specified in the transfer scheme without any further act, deed or thing to be done by the Board or any other person.
3. (3) The State Government may from time to time frame rules to provide for transfer schemes to effect transfer of the undertakings which vest in the State under sub-section (2) to such companies or bodies corporate or person or authority (hereinafter called "Transferee") on such terms and conditions as the State Government may provide in the transfer scheme and such transfer and vesting in the Transferee shall take effect from the date specified in the transfer scheme without any further act, deed or thing to be done by any person.
4. (4) The State Government may, after consulting the transferee to whom the functions, duties, rights, powers or undertakings, as the case may be, have been transferred and vested in terms of the foregoing provisions (hereinafter referred to as the First transferee), frame rules for transfer schemes to transfer and vest in any other company or body corporate or person or authority (hereinafter referred to as the "Second Transferee") such part of the undertakings from the first transferee to the Second Transferee on such terms and conditions as the State Government may specify and such transfer shall take effect from the date specified in the transfer scheme without any further act, deed or thing to be done by any person.
5. (5) The State Government may by notification provide that such of the functions, duties, powers and obligations exercisable by the Board under the Indian Electricity Act, 1910 (No. 9 of 1910) or the Electricity (Supply) Act, 1948 (No. 54 of 1948) or any rules framed there under shall be exercisable by the First Transferee or the Second Transferee or by other companies or bodies corporate or person or authority, as the State Government may specify.
6. (6) Notwithstanding anything contained in this section, where a transaction of any description is effected in pursuance of the transfer scheme under this part, it shall be binding on all persons including third parties.
7. (7) A transfer scheme may:
   • (a) define the property, interest in property, rights and liabilities to be transferred:
     • (i) by specifying or describing the property, rights and liabilities in question;
     • (ii) by referring to all the property, interest in property, rights and liabilities comprised in a specified part of the undertaking; or
     • (iii) partly in the one way and partly in the other,
   • (b) provide that any rights or liabilities specified or described in the scheme shall be enforceable by or against the first Transferee or the Second Transferee;
   • (c) provide for restructuring or re-organisation of the undertakings, including forming of subsidiaries, joint ventures, mergers and demergers;
   • (d) impose on any licensee an obligation to enter into such written agreements with, or execute such other instruments in favour of, any other subsequent licensee as may be specified in the scheme; and
   • (e) make such supplement, incidental and consequential provisions as it is considered appropriate including provision specifying the order in which any transfer or transaction will be effective.
8. (8) All debts and obligations incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Board, or the First Transferee before the relevant transfer scheme becomes effective shall, to the extent specified in the relevant transfer scheme, be deemed to have been incurred, entered into or done by the First or the Second Transferee, as the case may be.
9. (9) All suits or other legal proceedings instituted or that may be instituted or pending involving the Board or the First Transferee, as the case may be, before the relevant transfer scheme becomes effective shall in the manner specified in the relevant transfer scheme be continued or instituted by or against the First or the Second Transferee.
10. (10) If pursuant to the transfer scheme framed by the State Government a licensee is required to vest any part of its undertaking in another company or body corporate or person, the Commission shall amend the licence granted to the licensee and issue the requisite licence to enable such other company or body corporate or person to discharge the functions.
11. (11) The Board shall cease to be charged with, and shall not perform, the functions, rights, powers and duties to the extent the same are transferred and vested in any other company or body corporate or person in accordance with the provisions of this Act.
12. (12) The exercise by a licensee of any of the rights and powers of the Board may be made on such conditions as shall be specified in the transfer scheme including a condition that they shall be exercised by the licensee only with the approval of the Commission.

1. (1) The State Government may provide for the transfer of the personnel of Board to the First or Second Transferee, as the case may be, on the vesting of properties, rights and liabilities in the said Transferee, as a part of the undertaking transferred under section 23 and such transfers shall be effective in the like manner as in the case of transfers under section 23.
2. (2) Upon such transfers, the personnel shall hold office or service under the First or Second Transferee, as the case may be, on terms and conditions that may be determined in the transfer scheme subject to the following, namely:
   • (a) that the terms and conditions of the service applicable to them in the first or Second Transferee shall not in any way be less favourable than or inferior to those applicable to them immediately before the transfer;
   • (b) that the personnel shall have continuity of service in all respects; and
   • (c) that all benefits of service accrued before the transfer shall be recognized and taken into account for all purposes including the payment of any and all terminal benefits.
3. (3) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (No. 14 of 1947) or any other law as is applicable and except for the provisions made in this Act, the transfer of the employment of the personnel in terms of the provisions of this part shall not entitle such employees to any compensation or damage under this Act, or any other Central or State law or under the general law, save as provided in the transfer scheme. Explanation. - For the purposes of this Part and the Transfer Scheme the term "Personnel" shall mean and include all persons who on the effective date are the employees of the Board, by whatever name called.

The State Government may provide that the transfers in terms of Section 23 and 24 shall be provisional for a period of twelve months from the effective date of transfer and reserve the right to alter, vary, modify, add or otherwise change the terms in such manner as the State Government may consider appropriate.