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State of Haryana - Section

Section 6 in Haryana Electricity Reform (Transfer of Distribution Undertakings from Haryana Vidyut Prasaran Nigam Ltd. to Distribution Companies) Rules, 1999

6. Pending proceedings [Sections 23 and 55].

- All Proceedings of whatever nature by or against HVPN, or against the Board which have been assumed by HVPN under the First Transfer Scheme, pending on the Effective Date, shall not abate or discontinue or otherwise in any way be prejudicially affected by reason of any transfer effected under the Transfer Scheme. Subject to what is provided in the Transfer Scheme, such Proceedings may be continued by or against the concerned Transferee, in the same manner and to the same extent as would or might have been continued, prosecuted and/or enforced by or against HVPN had the transfers specified in the Transfer Scheme not been made.Appendix IHaryana Electricity Reform (Transfer of Distribution Undertakings from Haryana Vidyut Prasaran Nigam Ltd. to Distribution Companies) Scheme, 1999PreambleA. Haryana Vidyut Prasaran Nigam Ltd. (as more fully described below, "HVPN") is a company incorporated under the Companies Act, 1956, having its registered office at Panchkula.B. HVPN was promoted and established by the State Government as envisaged in Section 13 of the Haryana Electricity Reform Act, 1997 (Haryana Act 10 of 1998) (hereinafter referred to as "the Act") with the principal objects of engaging in the business of procurement, transmission and supply of electricity in the State of Haryana.C. In terms of sub-sections (1) and (2) of Section 23 and Sections 24 and 25 of the Act and the First Transfer Scheme, the following were transferred from the Board to HVPN:
(a)the transmission and distribution undertakings of the Board as specified in Schedule B to the First Transfer Scheme;
(b)other assets, liabilities and proceedings of the Board excluding those specified in Schedule A to the First Transfer Scheme; and
(c)the personnel of the Board as specified in rule 6 of the First Transfer Scheme.
D. The State Government, in consultation with HVPN, as a part of the ongoing reform and re-structuring of the electricity industry in the State of Haryana, has directed HVPN to draw this Transfer Scheme which inter-alia, entails the following :-
(a)the electricity distribution functions in the State of Haryana be divided into Zone-I and Zone-II, respectively being the two contiguous geographical territories described in Schedule A hereto;
(b)transfer of the electricity distribution business and undertakings in Zone-I and Zone-II respectively to the distribution companies;
E. Discom-I and Discom-II were incorporated under the Companies Act, 1956 on March 15, 1999 and they have obtained their respective certificates of commencement of business from the Registrar of Companies dated April 1, 1999.F. In furtherance of the transactions specified in preamble paragraph D above,-
(i)Discom-I and Discom-II will apply to the Haryana Electricity Regulatory Commission constituted under sub-section (1) of Section 3 of the Act (hereinafter referred to as "HERC") for grant of distribution and supply licenses under Section 15 of the Act, to enable them to undertake Distribution Business in their respective Zones; and
(ii)HVPN will simultaneously apply for surrender of its Distribution and Retail Supply License.
G. Pending the grant of the distribution and supply licenses to Discom-I and Discom-II, HERC, by its order dated April, 21, 1999 has, inter alia, granted permission to HVPN to hold its distribution undertaking and to carry on its distribution and retail supply business pertaining to the Zone-I through and in the name of Discom-I and that pertaining to Zone-II through and in the name of Discom-II.Now this Transfer Scheme Witnesseth as under