Section 24 in Karnataka Electricity Reform Act, 1999
24. Provisions where the licence is revoked.
(1)Notwithstanding the provisions of sections 6 and 7 of the Indian Electricity Act, 1910, where the Commission revokes a license, under sub-section (2) of section 22 the following provisions shall apply:-(a)The Commission shall serve a notice of revocation upon the licensee and shall fix a date on which the revocation shall take effect.(b)The Commission shall invite applications for acquiring the undertaking of the licensee whose license has been revoked and determine the terms and conditions of the sale of the undertaking;(c)The Commission may by notice in writing require the licensee to sell, and thereupon the licensee shall sell the undertaking to the person whose application has been accepted by the Commission. Such person is referred to in this section as the "purchaser"; and(d)The Commission may make such interim arrangement in regard to the undertaking of the licensee for maintaining the electricity transmission and supply as may be considered appropriate including the appointment of administrators and additional directors for the undertaking;(e)On and with effect from the date of revocation or where the undertaking of the licensee is sold to a purchaser earlier to the date of revocation in pursuance of any of the provisions of the Act , on and with effect from such date of purchase, all the rights, duties, obligation and liabilities of the licensee under this Act shall cease and stand determined except for any liabilities that have accrued prior to that date.(2)Where an undertaking is sold under sub-section (1), the purchaser shall pay to the licensee the purchase price of the undertaking determined in accordance with the application submitted by the purchaser, subject however to the Commission's directions to deposit any part of the purchase price towards payment of any fines, charges, or compensation levied on the licensee or any other amount due or outstanding from the licensee under any orders passed by the Commission.(3)Where the Commission issues any notice under sub-section (1) requiring the licensee to sell the undertaking, it may by such notice require the licensee to deliver and thereupon the licensee shall deliver on a date specified in the notice, the undertaking to the designated purchaser pending the payment of the purchase price of the undertaking :Provided that in any such case, the purchaser shall pay interest at such percent not less than the Reserve Bank lending rate ruling at the time of delivery of the undertaking as the Commission may decide, on the purchase price for the period from the date of delivery of the undertaking to the date of payment.(4)Where before the date fixed in the notice issued under sub-section (1)(a) as the date on which the revocation of the license shall take effect, no notice has been issued to the licensee requiring him to sell the undertaking or where for any reason no sale of the undertaking has been effected under that sub-section, the State Government shall acquire the undertaking on the date of revocation of the license and shall pay to the licensee the book value of the undertaking as on the date of acquisition and shall perform all the obligations of the licensee until such time as the State Government is able to sell the undertaking to a new licensee, which it shall endeavour to do when reasonably practicable. The State Government shall make payment of the book value of the undertaking on the date of acquisition after State Government is able to sell the undertaking to a new licensee:Provided that such payment in any case be made within a period of one year from the date of such acquisition by the State Government.(5)The licensee shall duly implement the orders of the Commission, notwithstanding that the licensee may be aggrieved by the orders of the Commission and intends to take legal action challenging the orders of the Commission.
