Electricity Supply Undertakings (Acquisition) Act, 1974 Section 7 - Bare Act

The Government shall be entitled to deduct the following sums from the amount to be given to a company under this Act:-

(a) the sum, if any, already given in advance by way of any amount to be given under section 5;

(b) the sum, if any, specified under sub-section (2) of section 4;

(c) the sum, if any, which may be, or ordered to be, deducted under section 9 or 11;

(d) the sum due, if any, from the company to the Government or the Board for electricity supplied by the Board for any period prior to one month immediately preceding the vesting date;

(e) all other sums and arrears of interest, if any, thereon due from the company to the Government or the Board except loans and arrears of interest, if any, thereon:

Provided that instalments of such loans and arrears of interest, if any, thereon which have accrued due during any period prior to one month immediately preceding the vesting date and outstanding on that date shall be deducted;

(f) the sum, if any, equivalent to the loss sustained by the Government by reason of any property or rights belonging to the undertaking not having been handed over to the Government, the sum of such loss being deemed to be the sum by which the market value of such property or rights exceeds the amount payable therefor under this Act, together with any income which might have been realised as aforesaid;

(g) all sums paid by consumers by way of security deposit and arrears of interest due thereon on the vesting date in so far as they have not been paid over by the company to the Government, less the sums which according to the books of the company are due from the consumers to the company for electricity supplied by it before the date;

(h) all advances from consumers and prospective consumers, and all sums which have been or ought to be set aside to the credit of the consumers fund in so far as such advances or sums have not been paid over by the Company to the Government.

Explanation.- For the purposes of this clause, Consumers fund shall, for any account year prior to the date on which the Sixth Schedule to the Electricity Supply Act came into force mean the amount referred to as such in the bulk supply agreement and, for any account year on and from the said date, it shall mean the amount specified in paragraph II (1) of the said Schedule as the amount to be set apart for distribution to consumers;

(i) if, under any law, award, agreement, contract of service or otherwise, the salary, wages, leave salary, bonus, pension, gratuity, provident fund, security deposit or other payment, becomes payable to a member of the staff after a specified period of service rendered by such member in connection with the undertaking, such member having been transferred to the Government,-

(a) before the expiry of such specified period, a sum equal to the sum which bears to the full salary, wages, leave salary, bonus, pension, gratuity, provident fund, security deposit or other payment payable after the expiry of the said specified period, the same proportion as the period upto the vesting date bears to the whole of the said specified period;

(b) after the expiry of such specified period, a sum equal to full such salary, wages, leave salary, bonus, pension, gratuity, provident fund, security deposit or other payment:

Provided that where any reserve fund has been created towards the salary, wages, leave salary, bonus, pension, gratuity, provident fund, security deposit or other payment referred to in this clause and such reserve fund shall vest in the Government under this Act, the amount of such reserve fund so vested shall not be deducted under this clause;

(j) sums, if any, in the credit of development rebate reserve, contingencies, reserves, tariff and dividend control reserve, consumers rebate reserve, reserve for bad and doubtful debts or any other reserve fund.