Purchase of aerial ropeways

(1) Where the promoter is the Central Government the Central Government may at any time transfer the undertaking or any part thereof to (a) a local authority or local authorities under terms and conditions approved of by, and with the consent of, such authority or authorities; (b) to any other person under such terms and conditions as may be mutually agreed upon between the Central Government and the transferee. (2) Where the promoter is not the Central Government the Central 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 Central 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 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, and in accordance with, the preceding provisions of this section, all the rights, powers and authorities in respect of the undertaking sold, shall be transferred to the purchasers. (5) Subject to 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 made under sub-section (1) or sub-section (5)— (a) the undertaking shall vest in the purchasers 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 7 shall remain in full force, and the purchaser shall be deemed to be the promoter: Provided that where the Central Government elects to purchase, the order under section 7 shall, after purchase, in so far as the Central 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 Central 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 Central 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.