Transfer of Board's properties, powers, functions and duties

Reorganisation of the Electricity Industry

1. (1) On and with effect from the date on which a transfer scheme, as may be prepared by the State Government to give effect the objects and purposes of this Act, is published (hereinafter referred to as the effective date), any property, interest in property, rights and liabilities which immediately before the effective date belong to the Board, shall vest in the State Government, on such terms as may be agreed between the State Government and the Board.
2. (2) Any property, interest in property, rights and liabilities vested in the State Government under sub-section
3. (1) shall be revested by the State Government in the Gridco and OHPC in accordance with the transfer scheme so published alongwith such other property, interest in property, rights and liabilities of the State Government as may be specified in such scheme, on such terms and conditions as may be agreed between the State Government and the Gridco or OHPC, as the case may be.
4. (3) Such of the rights and powers exercisable by the Board under the Electricity (Supply) Act, 1948 as the State Government may, by notification, specify shall be exercisable by the Gridco or OHPC, as the case may be, for the purpose of discharging the functions and duties with which it is charged.
5. (4) Notwithstanding anything in this section, where-
   • (a) the transfer scheme involves transfer of any property or rights to any person or undertaking not wholly owned by the State Government, the scheme shall give effect to the transfer only for fair value to be paid by the transferee to the State Government; and
   • (b) a transaction of any description is effected in pursuance of a transfer scheme, it shall be binding on all persons including third parties, even if, such persons or third parties have not consented to it.
6. (5) The State Government may, after consulting the Gridco (the "transferor licensee") or OHPC, as the case may be, require them to draw up a transfer scheme only on lease to vest in a further licensee (the "transferee licensee") or any generating company, any property, interest in property, rights and liabilities which have been vested in the transferor licensee or OHPC, as the case may be, under this section.
7. (6) A transfer scheme may-
   • (a) define the property, interest in property, rights and liabilities to be allocated,-
     • (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 transferor's undertaking; or
     • (iii) partly in 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 transferor or the transferee;
   • (c) impose on the licensee an obligation to enter into such written agreements with, or execute such other instruments in favour of, any subsequent licensee as may be specified in the scheme; and
   • (d) make such supplemental, incidental and consequential provisions as the transferor licensee considers appropriate including provision specifying the order in which any transfer or transaction is to be regarded as taking effect.
8. (7) All debts and obligations incurred, all contracts entered into and all matters and things done by with or for the Board, or the Gridco or OHPC, before a 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 with or for the State Government or the transferee, and all suits or other legal proceedings instituted by or against the Board or transferor, as the case may be, may be continued or instituted by or against the State Government or the concerned transferee, as the case may be.
9. (8) In the event that a licensee is required to vest any part of its undertaking in another licensee pursuant to sub-section (5), the Commission shall amend the transferee licensee's licence in accordance with section 19 or revoke its licence in accordance with section 18.
10. (9) The Board shall cease to be charged with, and shall not perform, the functions and duties specified in sub-section
11. (2) with regard to transfers made on, and after the effective date.
12. (10) The exercise by a licensee of any of the Board's rights and powers 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.