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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 2

PUBLISHED BY AUTHORITY

No. 43] NEW DELHI, WEDNESDAY, DECEMBER 14,1977/AGRAHAYANA 23,1899

Separate paging is given to this Part in order that it may be filed

as a separate compilation

LOK SABHA

The following Bills were introduced in Lok Sabha on the 14th Decem-

ber, 1977:—

BILL NO. 143 OF 1977

A Bill further to amend the Indian Electricity Act, 1910.

BE it enacted by Parliament in the Twenty-eighth Year of the

Republic of India as follows: —

1. This Act may be called the Indian Electricity (Amendment) Act,

1977

9 of 1910

Short title.

Amend- ment of section 1.

2. In section 1 of the Indian Electricity Act, 1910 (hereinafter referred to as the principal Act), in sub-section (I), the word "Indian" shall be omitted

Amend- ment of section 5.

3. In sub-section (2) of section 5 of the principal Act, for the words, brackets, figures and letter "sub-sections (1) and (2) of section 7A, or as the case may be, sub-section (3) of that section", the words, brackets, figures and letter "sub-sections (1), (2) and (3) of section 7A" shall be substituted

4 In section 6 of the principal Act,—

(i) after sub-section (5), the following sub-section shall be in-

serted, namely —

Amend- ment of section 6.

"(5A) Where a notice exercising the option of purchasing the undertaking has been served upon the licensee under this section, the licensee shall deliver the undertaking to the State Electricity Board, the State Government or the local authority, as the case may be, on the expiration of the relevant period re- ferred to in sub-section (1) pending the determination and pay- ment of the purchase price:

(865)

Provided that m any such case, the purchaser shall pay to the licensee, interest at the Reserve Bank rate ruling at the time of delivery of the undertaking plus one per centum on the pur- chase price of the undertaking for the period from the date of delivery of the undertaking to the date of payment of the pur- chase price.";

(ii) sub-section (6) shall be omitted

Amend- ment of section 7.

5. In section 7 of the principal Act, for the words, brackets and figures "or under sub-section (6) of section 6", the words, brackets, figures and letter "or under sub-section (5A) of section 6" shall be substituted

6. In section TA of the principal Act,—

Amend- ment of section 7A,

(i) for sub-sections (1) to (3), the following sub-sections shall be substituted, namely: —

"(7) Where an undertaking of a licensee is sold under sub- section (1) of section '5, the purchase price of the undertaking shall be the book value of the undertaking at the time of pur- chase or where the undertaking has been delivered before the purchase under sub-section (3) of that section, at the time of delivery of the undertaking

(2) For the purposes of sub-section (1), the book value of an undertaking shall be an amount equal to the sum of—

(i) the original cost of fixed assets available for use and necessary for the purpose of the undertaking;

(ii) the cost of intangible assets, including expenses on account of the new capital issue;

(ni) the original cost of works in progress,

(iv) the cost of stores, materials and supplies including fuel on hand which are required for the purpose of the undertaking,

less—

(a) the amounts written off or set aside on account of depreciation of fixed assets and the amounts written off in respect of intangible assets in the books of the undertaking;

(b) the original cost of service lines or other capital works or part thereof which have been constructed at the expense of the consumers or any other deposits made by the con- sumers •

54 of 1948, Provided that where the State Electricity Board, the State Government or the local authority, as the case may be. exer- cises an option not to take over any asset of the undertaking ac- quired by the licensee without the concurrence of the State Government under paragraph XV of the Sixth Schedule to the Electricity (Supply) Act, 1948, the value of such asset shall not be included.

(3) If there is any difference or dispute regarding the de- termination of the book, value of the undertaking under siih- section (2), the same shall be determined by arbitration.'

(u) in sub-se,ction (J), for the words, brackets and figures "sub- sections (2) and (2)", the woids, brackets and iiguies "sub-seccions (1), (21) and (3)" shall be substituted.

7. After section 7A of the puricipal Act, thfe¹ following section shall be inserted, namely: —

Insertion of new section 7AA.

Power to take possession of under- taking.

"7AA. (1) If a licensee Upon whom a notice requiring him to deliver the undertaking to the designated purchaser has been served in pursuance of bub-section (3) of section 5 or a notice exercising the option of purchasing the undertaking has been served under section 6, refuses or fails to deliver the undertaking as required under sub-section (3) of section 5, or under sub-section (5A) of section 6, as the case may be, the State Electricity Board, the State Government or the local authority, as the case may be, may, by order in writing, require the licensee to deliver on or before such date as may be specified in the oider, the undertaking to such officer as the State Electricity Board, the State Government or the local authority, as the case may be, may appoint in that behalf and the licensee shall comply with such order.

(2) If the licensee fails to comply with an order issued under sub-section (2), the officer appointed under that sub-section may forthwith take possession of the undertaking and may take or cause to be taken such steps and use or cause to be used such force as may, in the opinjon of such officer, be reasonably necessary for that purpose.

(3) On the taking over of possession of the undertaking under sub-section (2)), the provisions of section 7 shall apply as if the un- dertaking had been delivered to the State Electricity Board, the State Government or the local authority, as the case may be, under sub-section (3) of section 5 or sub-section {5A) of section 6, as the case may be.",

8. In sub-section (2) of section 36A of the principal Act, for clauses

(c) and (d), the following clauses shall be substituted, namely: —

Amend- ment of section 3&A.

"(c) one member to be nominated by the Central Government

to represent the Union territory of Delhi;

(d) one member to be nominated by the Central Government to represent the Union territory of the Andaman and Nicobar Islands;".

9 In section 38 of the principal Act, for sub-section (.?), the following

sub-section shall be substituted, namely —

Amend- ment of section 38

"(3) Every rule made under section 37 shall be punishable in the Gazette of India and 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 in two or more successive sessions, and if, before the expiry of the Ses- sion 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 annul- ment shall be without prejudice to the validity of anything previ- ously done under that rule.".

10. For section 39 of the principal Act, the following section shall be

substituted, namely: —

Substitu- tion of new section for section 39.

Theft of energy.

"39 Whoever dishonestly abstracts, consumes or uses any energy shall be puniahablie with imprisonment for a term which may extend to three years, or with fine which shall not be less than five hundred rupees but which may extend to five thousand rupees, or with both:

Provided that the court may, for any adequate and special reasons to be mentioned in the judgment, impose a fine of less than five hundred rupees.".

11. In section 40 of the principal Act, for the words "two years", the

words "three years" shall be substituted.

Amend- ment of section 40.

12 Aiter section 42 of the principal Act, the following section shall

be inserted, namely: —

Insertion of new section 42A,

"42A. Whoever—

(a) being a licensee or an officer or other employee of the licensee, wilfully fails or refuses to deliver to the officer ap- pointed under sub-section (I) of section 7AA, possession of the undertaking of which such officer is entitled to take, or

(b) wilfully obstructs the said officer in entering into pos- session of the undertaking or taking possession of any of its property,

Penalty for refusal oi failure to deliver possession of under- taking and for obstruct- ing the taking of possession thereof.

shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to one thousand rupees, or with both ".

Amend- ment of section 44.

13. In section 44 of the principal Act, for the words "shall be punish- able with fine which may extend to five hundred rupees", the words "shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to one thousand rupees, or with both" shall be substituted.

Amend- ment of section 46. 14| In section 46 of the principal Act, for the words "shall be punish- able with fine which may extend to two hundred rupees", the words "shall be punishable with Imprisonment which may extend to six months, or with fine which may extend to two hundred rupees, Or with both" shall be substituted-

15. For section 50 of the principal Act, the following sections shall be

substituted, namely: —

Substi- tution of new sections for section 50.

Institu- tion of prosecu- tions.

"50. No prosecution shall be instituted against any person for any offence against this Act or any rule, licence or order thereunder, except with the previous sanction of the Electrical Inspector, District Magistrate or Sub-Divisional Magistrate

Power to compound offences.

50A (J) An Electrical Inspector may, either before or after the institution of any proceedings, compound any offence punishable under section 39, section 40 or section 44:

Provided that in a case where proceedings have already been instituted in any court, no composition under this section shall be made except with the permission of that court.

(2) Where an offence has been compounded the offender, if in custody, shall be discharged and no further proceedings shall be taken against him in respect of the offence so compounded.".

16. Section 55 of the principal Act shall be re-numbered as aub-section (2) thereof, and before the sub-section as so re-numbered, the following sub-section shall be inserted, namely: —

Amend- ment of section 55.

"(2) The Central Government may, by general or special order, authorise the discharge of any of its functions under sub-section (2j) of section 34 by an Electrical Inspector.".

STATEMENT OF OBJECTS AND REASONS

The Indian Electricity Act, 1910, deals with the supply and use of electrical energy in the country. The Act also prescribes procedure for the purchase and take-over of undertakings of private licensees and procedure for determining the purchase price.

2. With! a view to discouraging theft of energy and tampering with meters and electrical installations, the provisions for punishment of such offences are being made more stringent It is proposed to amend sections 39, 40, 44 and 46 of the Act suitably.

3. The Act, at present, does not contain a specific provision for taking compulsory possession of an undertaking where a licensee refuses or wilfully fails to deliver possession to the State Electricity Board, the State Government or the local authority. It is proposed to incorporate a provision for taking compulsory possession of an undertaking and to provide for suitable penalty for such refusal or failure to deliver possession

4. Sub-section (6) of section 6 of the Act does not provide for pay- ment of interest on the purchase price of the undertaking for the period between the date of delivery of the undertaking and the date of pay- ment of the purchase price. It is proposed to amend section 6 to pro- vide for the payment of interest for the said period.

5 Section 7A of the Act provides that where an electrical under- taking is sold under section 5, the purchase price of the undertaking shall be the market value of the undertaking at the time of purchase or where the undertaking has been delivered before the purchase under sub-section (3) of section 5; at the time of the delivery of the under- taking, and if there is any difference or dispute regarding such purchase price, the same shall be determined by arbitration. It is proposed to amend this section tQ provide for payment of book value of the assets of the undertaking which is more realistic instead of the market value.

6. The other amendments proposed are minor and consequential in

nature.

7. The Bill seeks to achieve the aforesaid objects.

NEW DELHI;

P RAMACHANDRAN.

The 2nd December, 1977.

BILL NO 142 OF 1977

A Bill to authorise payment avd appropriation of certain further sums

fromi and out of the Consolidated Fvnd of India for the services of

the financial year 1977-78

BE it enacted by Parliament in the Twenty-eighth Year of the

Republic of India as follows: —

Short title 1. This Act may be called the Appropriation (No, 4) Act, 1977.

2. From and out of the Consolidated Fund of India there may be paid and applied sums not exceeding those specified in column 3 of the Sche- dule amounting in the aggregate to the sum of nine hundred and forty- two crores, thirty-seven lakhs and seventy-one thousand rupees towards defraying the several charges which will come in course of payment dur- ing the financial year 1977-78, in respect of the services specified in column 2 of the Schedule

Ksue of Rs 942,37, 71,000 out of the Consoli- dated Fund of India for the year 1977-78.

Appro- priation, 3 The sums authorised to be paid and and applied fiom and out of the Consolidated Fund of Tndia bv this Act shall be appiopnated lor the ser- vices and purposes expressed in the Schedule in relation to the said year,

T HE SCHEDULE

($e" sections 2 and 3)

1

3

3

Sums not exceeding

Services and purposes

No. of Vote

Total

Voted by Charged on Parliament the Consoli- dated Fund

Rs.

Rs.

Rs.

10,00,00,000

10,00,00,000

Agriculture , , . Revenue

3

••

23,00,00,000

2 5,00,00,000

Capital

••

1,00,000

1,00,000

Forest , Revenue

••

5

Department of Rural Deve-

7

30,00,83,000

20,00,00,000

lopment . . .. Revenue

Chemicals and Fertilizers

13

25,01,86,000 Industries . . . Revenue 25,01,86,000

3,01,89,000

3,01,89,000

Capital

• •

Foreign Trade and Export

16

29,00,33,000

32,000

Production . . . Revenue 29,00,00,000

Capital

139>sl>00,000

• •

i39>⁰7.°°.°°°

6,11,01,000

6,11,01,000

Power Development . , Revenue

• •

32

117,80,00,000

117,80,00,000

Capital

• •

5,38,00,000

3,38,00,000

Ministry of External Affairs . Capital

• •

34

Transfers to State and Union

40

131,95,00,000

131,95,00,000

Territory Governments . Revenue

353)05,oo,ooo

3 S3 °S 00,000

Capital

••

4,29,30,000

4,39,30,000

Medical and Public Health . Revenue

• •

49

87,76,000

87,76,000

Capital

•

Department of Pel sonnel and

53

10,93,000

10,99,000

Administrative Reforms . Revenue

Other Expenditure of the

56

3,000

a,ooo

Ministry of Home Affairs . Revenue

5,00,00,000

5,00,00,000

I n d u s t r i es . . .. R e v e n ue

• •

63

20,00,000

30,00,000

C a p i t al

• •

4,50,00,000

4,50,00,000

Village and Small Industries Capital

64

••

Ports, Lighthouses and Ship-

83

20,53,00,000

30,55,00,000

ping . . .. Capital

29,00,01,000

1,000

29 00 00,000

Department of Steel . Capital

84

13,30,79,000

13,20,79,000

Mines and Minerals . Capital

86

••

STATEMENT OF OBJECTS AND REASONS

This Bill is introduced in pursuance of article 114(1) of the Constitu- tion of India, read with article 115 thereof, to provide for the appropria- tion out of the Consolidated Fund of India of the moneys required to meet the supplementary expenditure charged on the Consolidated Fund of India and the grants made by the Lok Sabha for expenditure of the Central Government, excluding Railways, for the financial year 1977-78

H. M. PATEL.

PRESIDENT'S RECOMMENDATION UNDER ARTICLE 117 OF THE CONSTITUTION OF INDIA

[Copy of letter No F.5(53)-B(SEi)/77, dated the 1st December, 1977 from Shn H M. Patel, Minister of Finance and Revenue and Banking to the Secretary, Lok Sabha 1

The President, having been informed of the subject matter of the proposed Bill to authorise payment and appropnation of certain fur- ther sums from and out of the Consolidated Fund of India for the services of the year ending on the 31st day of March, 1978, recommends the introduction of the Appropriation (No. 4) Bill, 1977 in Lok Sabha and also recommends to the Sabha the consideration of the Bill under article 117(1) and (3) of the Constitution iead with article 115(2) thereof.

2. The Bill will be introduced in the Lok Sabha after all the Supple- mentary Demands for Grants for 1977-78 have been voted.

AVTAR SINGH RIKHY,

Secretary.

PRINTED BY THE OENBRAL MANAOEH. OOVEHNMKNT OF INDIA PRESS, MINTO ROAD. NEW DEI HI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI 1 9 77

I

a

3

exceeding

hums noi

S*rvk" and purpiMat

Charged on

Voted bv Parliament

Total

No. of Vote

the Consoli-

dated Fund

Rs.

Rj

RJ.

Department of Rehabilita-

89

3,86,00,000

3,86,00,000

tion , . . Revenue

1 00 Atomic Energy ReJcaich, Development and Indui- tnal Project! Capital

5,00,00,000

5,00,00,000

1 05

56,00,000

56,00,000

TJi partmunt of Space . Capital

94²"37.7i>

407,06,1 $,000

Total