Chapter IV ESTABLISHMENT, TRANSFER AND VESTING OF WATER SUPPLY AND SEWERAGE SERVICES

Immediately after the establishment of the Board under section 3, every local authority shall, furnish to the Board the following information and particulars:-

1. (a) the description and details of all properties to be transferred to the Board under this Act;
2. (b) the particulars of liabilities to be transferred to the Board under the provisions of this Act;
3. (c) the particulars relating to existing contracts and other obligations devolving on the Board under the provisions of this Act;
4. (d) the particulars of all legal proceedings covered by section 30 to which the existing authority is a party, pending on the date of establishment of the Board.

1. (1) Subject to the other provisions contained in this Act, all properties, assets and liabilities of an existing authority relating to water supply and sewerage services exclusively for the Madras Metropolitan Area (including all works in progress and all water works and sewerage works situated in or outside that Area and connected with the services as aforesaid) shall stand transferred to, and vest in, the Board, with effect from such date as the Government may, by notification, appoint: Provided that different dates may be notified-
   • (i) for different existing authorities,
   • (ii) for the vesting of different properties, assets and liabilities of the existing authorities.
2. (2) Where any water works situate outside the Madras Metropolitan Area is utilised partly for water supply for that Area and partly for other areas or purposes, the Board and the Government shall enter into an agreement not later than three months from the date of coming into force of this Act specifying the nature and extent of the Board's control over such works, the quality and quantity of water to be supplied for that Area and other matters connected therewith: Provided that in the absence of such agreement or until such time as such agreement is reached, the Government shall be responsible for the continuance and maintenance of the arrangements and works in existence on the date of coming into force of this Act.
3. (3) The assets relating to water supply and sewerage service referred to in sub-section
4. (1) shall be deemed to include all rights, powers, authorities and privileges, and all property, movable and immovable, including cash balances, deposits, funds and investments and all other interests and rights in or arising out of such property and all books, accounts and documents relating thereto as may be in the possession or control of a local authority immediately before the notified date; and the liabilities relating thereto shall be deemed to include all debts, liabilities and obligations pertaining to such services.
5. (4) If the notified date in relation to the Municipal Corporation of Madras is earlier than the notified date in relation to the Government, the Government shall until the latter date and in respect of the water works situated outside but used exclusively for the Madras Metropolitan Area, be responsible for the continuance and maintenance of the arrangements and works in existence on the former date.

1. (1) Notwithstanding the transfer of the assets and liabilities of an existing authority to the Board under sub-section
2. (1) of section 26, the provisions of this section shall apply to works in progress.
3. (2) With effect from the notified date applicable to the Municipal Corporation of Madras, the works in progress which are being executed or carried out by that Corporation (excluding such works executed or carried out by the Tamil Nadu Water Supply and Drainage Board, or for the benefit of the said corporation) immediately prior to that date, shall be taken over by the Board which shall be responsible for the continuance and completion thereof from that date.
4. (3) Works in progress which are being executed or carried out by the Tamil Nadu Water Supply and Drainage Board for any other existing authority immediately prior to the notified date applicable to the existing authority concerned shall be continued and completed by that Board—
   • (a) on behalf of the existing authority, if the assets and liabilities of that authority had not been transferred to the Board under sub-section
5. (1) of section 26; and
   • (b) on behalf of the Board, if such assets and liabilities had been so transferred to the Board.
6. (4) In cases to which sub-section
7. (2) or sub-section
8. (3) is not applicable, works in progress which are being executed or carried out by an existing authority immediately prior to the notified date applicable to that authority, the existing authority shall be responsible for the continuance and completion thereof from that date.
9. (5) The existing authority concerned shall be responsible for the satisfactory completion of the work specified in sub-section
10. (3) and sub-section
11. (4) and shall be fully accountable therefor and immediately after the completion of such work hand over to the Board all properties and assets pertaining to such work.
12. (6) Where an existing authority continues to execute any work under this section, the Board shall be entitled to exercise such powers of supervision over such work and all matters connected therewith as it may deem necessary to safeguard its interests and if the Board considers that the existing authority is carrying out such work in a manner prejudicial to the interests of the Board or at an unduly excessive cost, the Board may refer the matter to the Government for such action as may be considered necessary in the circumstances. Explanation.—For the purposes of this section and section 26, "works in progress" shall include any work pertaining to water supply or sewerage services in or for the Madras Metropolitan Area which has actually commenced and is pending completion on the relevant date applicable under section 26, but shall not include the maintenance, alteration or repair of any work already completed or in use.

1. (1) Where any property or assets have been transferred to and vested in the Board under sub-section
2. (1) of section 26, then—
   • (a) every person, in whose possession, custody or control any such property or assets may be, shall deliver the property or assets to the Board forthwith except as otherwise provided in section 27;
   • (b) any person who on the notified date, has in his possession, custody or control any books, documents or other papers relating to the water supply and sewerage services referred to in sub-section
3. (1) of section 26 shall be liable to account for the said books, documents and papers to the Board, and shall deliver them to the Board or to such person as the Board may direct.
4. (2) It shall be lawful for the Board to take all necessary steps for securing possession of all properties and assets which have been transferred to and vested in it under this Act.

1. (1) All questions relating to the transfer and vesting of any asset or property under sub-section
2. (1) of section 26, including identification and valuation of assets and liabilities and any financial arrangement shall be determined—
   • (a) in the case of the Government, by agreement between the Government and the Board; and
   • (b) in the case of any other existing authority, by a committee consisting of a nominee of the Board and of the existing authority concerned.
3. (2) If the decision of the committee on any question is not acceptable to the Board or the existing authority concerned, the matter shall be referred to the Government whose decision thereon shall be final.
4. (3) The value determined under this section shall be entered in the books of the Board as the value on the date of transfer.

With effect from the notified date,—

1. (a) any notification, order, scheme, rule, by-law, form or notice made or issued, and any licence or permission granted by any existing authority in so far as it relates to water supply or sewerage service in or for the purpose of the Madras Metropolitan Area, shall continue in force and be deemed to have been made, issued or granted under the provisions of this Act, unless and until it is superseded by any notification, scheme, order, regulation, form or notice made or issued or any licence or permission granted under this Act;
2. (b) all obligations and liabilities incurred, all contracts entered into, all matters and things engaged to be done by, with, or for the existing authority, before the notified date in connection with the water supply or sewerage service in or for the purpose of the Madras Metropolitan Area, shall be deemed to have been incurred, entered into or engaged to be done by, with, or for the Board;
3. (c) all suits, prosecutions, appeals or other legal proceedings of whatever nature instituted or which might have been instituted by or against an existing authority, in so far as they relate to the assets and liabilities transferred to the Board under section 26, may be continued or instituted by or against the Board: Provided that nothing contained in this clause shall apply to any such suit, prosecution, appeal or other legal proceeding in respect of the levy, collection or payment of any rate, charge, cess or fee for any period prior to the notified date applicable to the existing authority concerned.