—— - see —--= ~~ 4 '-   : ' ae we provided that nothing contained in this sub-section shall apply to— (a) the income and expenditure on revenue account relating to any period before the appointed day and received or, as the case may be, incurred by any of the three companies on or after the appointed day; | 5 (b) arrears of depreciation, regarding contingent liabilities on capital account relating to any period before the appointed day, arising on account of the decision of any court, tribunal or other authority  (2) where any repayment of a loan or interest, or both, has been 10 made, on or after the appointed day, by any of the three companies to any lending agency, such repayment shall be deemed to have been made by the corporation and the amount of such repayment shall be reimbursed by the corporation to the concerned company on adjustment of transmission charges or any other amount due te the corporation from 15 the concerned company, i corpo ration to be lessee or tenant, 6 (1) where any property is held by any of the three companies in relation to its power transmission system under any lease or right of tenancy, the corporation shal] on and from the appointed day, be deemed to have become the lessee or tenant, as the case may be, in respect of 20 such property as if the lease or tenancy in relation to such property had been granted to the corporation and thereupon all the rights under such lease or tenancy shall] be deemed to have been transferred to and vested in, the corporation  (2) on the expiry of the term of any lease or tenancy referred to in 25 sub-section (1), such lease or tenancy shall, if so desired bv the corvoration, be renewed on the same terms and conditions on which the lease or tenanev was held by any of the three companies immediately before the apnointed day removal 7, (1) for the removal of doubts, it is hereby declared that the pro- 30 doubts, visions of sections 3 4, 5 and 6 shall apply to the extent to which anv property apnertains to the business relating to the power transmission svsfem carried on bv the three companies and to the rights and nowers acouired, ond to debts liabilities and obligations ineurred, and to contracts, agreements and other instruments made by any of the three 35 companies and to letal proteedings relating to those matters pending in any court; tribunal or other authority in india (?) tf anv question arises as to whether any pronerty avpertains on the anvointed day to anv business of any of the three comvanies in relation to its power transmission system, or whether any rights powers 40 debts, liabilities or obligations were acquired or incurred or anv contract, agreement or other instrument was made hw anv of the three companies for the purposes of its said business or whether anv document relates tn those purooses the question shall be referred to the central government which shall, after giving a reasonable ovbortunity of being 43 heard to the persons interested in the matter, decide it in such manner as it may think fit ;ment 8 (7) for the transfer to, and vesting in the central goverument : under section 3 and 4, of the power transmission system and the right, pane title and interest of each of the three companies in relation to its power i transmission system, there shall be paid, in the presezfhed manner, by 5 the central government to each of the three companies such amount as is equal to the book value of all the assets anc properties after deduc-  tion of liabilities (ofher than contingent jiabilities) given in the andited statement of accounts of each of the three companies as on thse 3ist day of march, 1992 ve 10 (2) for the transfer to, and vesting in, the corporation under sub- section (2) of section 3 of the power transmission system and the right, title and interest of each of the three companies in relation to its power transmission system, there shall be paid, in the prescribed manner, by the corporation to the central government, the amount which is paid 15 by that government to the three companies under sub-section (1) (3) in case of any dispute relating to the nature of any asset, property or liability or the amount payable under sub-section (1) the dispute shall be referred by the central government to such authority as it may appoint and the decision of that authority in the matter shall be final  chapter ii delivery of assets, etc, to the corporation9 (1) any person who has, on the date of commencement of this duty of act, in his possession or under his control, any assets, books and any persons other documents relating to the power transmission system which has to' 25 been transferred to, and vested in, the corporation under sub-section pei (2) of section 3, shall be liable to account for the said assets, books and assets, documents to the corporation and shall deliver them up to the corpoote, in ration or to such person or personsas the corporation may specify in this their behalf possession 30 (2) the corporation may take or cause to be taken all necessary steps for securing possession of the power transmission system which has been transferred to, and vested in, the corporation under this act (3) each of the three companies shall, within such period as the corporation may allow in this behalf, furnish to the corporation a com- 35 plete inventory of all its property and assets as on the appointed day pertained to its power transmission system which has been transferred to, and vested in, the corporation under sub-section (2) of section 3  chapter iv provisions relating to associated personnel40 10 (1) on the vesting of the power transmission system of the three companies in the corporation, the associated personnel! who have been immediately on or before the appointed day, employed in any of the three companies and have not already become employees of the cor- ' poration shall become, on and from the date of commencement of this 45 act, employees of the corporation and shall hold office or service under the corporation on the terms and conditions which are not in any way less favourable than those which would have been admissible to them if there had been no such vesting and shall continue to do so unless and until their employment under the corporation is duly terminated or until their remuneration and other conditions of service are duly altered | by the corporation (2) notwithstanding anything contained in the industrial disputes act, 1947, or any other law for the time being in force, the transfer of the services of the associated personnel to the corporation, shall not entitle such personnel to any compensation under this act or any other - law for the time being in force and no such claim shall be entertained by 10 any court, tribunal or other authority provident fund and other funds 1} (1) where any of the three companies has established a provident fund or any other fund for the benefit of the persons employed by it, the monies relatable to the associated personnel who have already become employees of the corporation or whose services have become transferred 15 y under this act to the corporation shall, out of the monies standing, on the date of transfer of the associated personnel, to the credit of such provident fund or other fund, 'stand transferred to, and vest in, the corporation ; (2) the monies which stand transferred under sub-section (1) to 2) the corporation shall be dealt with by the corporation in such manner as may be prescribed  chapter v miscfllaneous12, the provisions of this act shall have effect notwithstanding any- 25 act to have thing inconsistent therewith contained in any other law for the time over_ riding effect being in force or in any instrument having effect by virtue of any law other than this act, or in any decree or order of any court, tribunal or other authority penal ties, 13 any person who— 30 ! (a) having in his possession, custody or control any property forming part of the power transmission svstem of any of the three companies wrongfully withholds such property from the cos tion; or : : (b) wrongfully obtains possession of, or retains, any property 35° forming part of the power transmission system of any of the three companies; or (c) wilfully withholds or fails to furnish to the corporation or any person or body of persons specified by the corporation, any document or inventory relating to the power transmission system 409 of any of the three companies, which may be in his possession, custedy or control; or (d) fails to deliver to the corporation or any person or body of persons specified by that corporation, any assets, books of account,registers or other documents in his possession, custody or control relating to the power transmission system of any of the three companies shall be punishable with imprisonment for a term which may extend to 5 two years and also with fine which may extend to ten thousand rupees 14 (1) where an offence punishable under this act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the cormpany, as well as the company, 10 shall be deemed to be gulity of the offence and shall be liable to be proceeded against and punished accordingly: provided tat nothing coniained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge and that he had exercised all due 15 diligence to prevent the commission of such offence (2) notwithstanding anything contained in sub-section (1), where any offence under this act has been committed by a company and it is proved that the offence has been commitied with the consent of connivance of, or is attributable to any neglect on the pari of, any director, 20 manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly explanation,—for the purposes of this section, - (¢) "company" means any body corporate and includes a firm 25 or other association of individuals; and (6) "director", in relation to a firm, means a partner in the firm 15 no suit, prosecution or other legal proceeding shali lie against the central government or the corporation or any of the three companies or any officer of that government, corporation or company or 30 any other person authorised by that government, corporation or company for anything which is in good faith done or intended to be done under this act 16, (1) the central government may, by notification, make rules for carrying out the provisions of this act, 35 (2) in particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: - (a) the manner in which the amount is to be paid under subsection (1) or sub-section (2) of section 8; 40 (6) the manner in which the monies in any provident fund or other fund, referred to in sub-section (2) of section 11, shall be dealt with; (c) any other matier which is required to be, or may be, prescribed, offences by companies protection of action taken in good faith power to make rules,(3) every rule made by the central government under this act shall - be laid, as soon as may be after it is made, before each house of parliament, while it is in session, for a total period of thirty days which may be comprised in one session or jn two or more successive sessions, and if, 4 before the expiry of the session immediately following the session or § the successive sessions aforesaid, both houses agree in making any modification in the rule or both houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification _ or annulment shall be without prejudice to the validity of anything pre- 10 viously done under that rule hit =[see section 2(e) and {g)1 names of companies ba 1 the national thermal power corporation limited, a company incorporated and registered under the companies act, 1956 having its registered: office in core no 7, scope complex, lodhi road, new delhi-110 008 = 2 the national hydroelectric power corporation limited, a company qmcorporated and registered under the companies act, 1956 having its registered office at hemkunt tower, 98, nehru place, new delhi-110 019: 3 the north-eastern electric power corporation limited, a company gncorporated and registered under the companies act, 1956 having its registered office at kharmalki road, shillong-793001 - 3 statement of objects and reasonsthe unevenly distributed energy sources in the country, the multiplicity of authorities for generating power and planning constructing, gional power grids the government of india teok a policy decision in 1981 basis to form 'a national power grid along: with load despateia and: communication facilities to ensure transmission' of 'power, within 'and - across different regions of india, on' a more scientific, efficient dnd economic ment of an integrated power system net-work, coordinating an, integrated operation of regional grids system and work towards the establishment of a national power --grid  tt was also decide __ to transfer inter alia the power transmission systems of the three companies, nhameiy, the national thermal power corporation ltd, the national hydroelectric power corporation ltd and the north-eastern electric power corporation ltd to the newly formed corporation accordingly, the management of the said bower transmission systems of the aforesaid three companies was taken over by power grid corporation of india ltd (powergrid) with effect from 16th august, 1991, 19th november, 1991 powergrid has, however, restricted its resource mobilisation efforts soth through internal cash generation as well as by going to the market tor commercial] borrowings as the legal formalities involved in transferring the ownership of the aforesaid three companies in relation to their said power transmission systems wil] be time-consuming, and it is necessary in the public interest that the said ownership should be vested in the powergrid immediately with a view to develop and operate an integrated transmission net-work by establishing a national power grid, it is proposed to acquire the right, title ang interest of the aforesaid three companies in relation to their assets pertaining to their power transmission systems and vest them in the powergrid with effect from ist april, 1992 the said acquisition of assets and their transfer will he on the basis of the book-value of all the assets and properties after deduction of liabilities (other than contingent liabilities) given in the audited statement of accounts of each of the three companies as on zist march, 1999 ' 4 the bill seeks to achieve the above objects new deut: kalp nath ral the 16th november, 1999  mpinancial' memorandum= sub-dlause (1) of clause zof the bill seeks to provide that the power iransmission systems and the right, title and interest of the national ther-_ mal power corporation ltd, the national hydroeleciri¢ power corpo-- ration "ltd and the north-eastern electric pewer corporation ltd, in relation to their power transmission systems: shali be: deemed to have been transferred to, and vested in, tae central government with effect from ist april, 1992 -sub-clause (2) of that 'clause further provides that the power transmission systems vested in the central government by virtue of sub-clause (1) shall, immediately after they had so vested; be deemed to have been transferred -to,'and vested in, the power grid corporation of india : - % syb-clause' (1) of clause 8 of the, bill geeks' to provide that the central government shall pay as compensation, in the prescribed manner, to each of the aforesaid three companies such amount as is equal to the book-value of the assets and properties, after deduction of liabilities (other than contingent liabilities) given in the audited statement of accounts of each of the aforesaid three companies as on 31st march, 1992 the said amount of compensation is for the acquisition by the central government of the power transmission systems and the right, title and interest of each of the aforesaid three companies in relation thereto sub-clause (2) of clause 8 further provides that the amount of compensation so paid by the central government shall be ultimately paid to it by the power grid corporation of india ltd to whom the power transmission systems so acquired by the central government are transferred under sub-clause (2) of clause 3 since she transfer of the power transmission systems from the aforesaid three companies to the central government and ultimately to the power grid corporation of india ltd will be on the basis of the corresponding equity loans, grants utilised for the construction of the assets, no expenditure from the consolidated fund of india is involved no other expenditure of recurring or nonrecurring nature is involved  memorandum regarding delegated legislationclause 16 of the bil] empowers the central government to make rules for carrying out the provisions of the bill such rules may, among other things, provide fer any of the following matters, mamely:— ty§ (a) the manner in which the amount is to be paid under sub-, clause (j) or sub-clause (2) of clause 8; (b) the manner in which the monies in any provident fund or other fund, referred to in sub-clause (2) of clause 11, shall be dealt with, 2 the matters in respect of which rules may be made are matters of procedure and detail and it is not possible to incorporate the same in the bill the delegation of legislative power is, therefore, of a nermal character had 4 ies | 