Section 13(1) in The Karnataka Electricity Supply Undertakings (Acquisition) Act, 1974
(1)This section shall apply where the company has, after the first day of January 1972 and before the vesting date,-(a)made any payment to any person without consideration or for an inadequate consideration;(b)sold or disposed of any of its properties or rights without consideration or for an inadequate consideration;(c)acquired any property or rights for an excessive consideration;(d)entered into or varied any agreement so as to require an excessive consideration to be paid or given by the company;(e)entered into any other transaction of such an onerous nature as to cause a loss to or impose a liability on the company exceeding any benefit accruing to the company; or(f)sold or otherwise transferred any equipment or machinery or other property of book value exceeding rupees ten thousand; andthe payment, sale, disposal, acquisition, agreement or variation thereof or other transaction or transfer, was not reasonably necessary for the purpose of carrying on the undertakings of the company, or was made with lack of prudence on the part of the company regard being had, in either case, to the circumstances at the time.
