Section 7 in The Bihar Electricity Supply Undertakings (Acquisition) Act, 1979
7. Vesting of undertakings.
(1)The property, rights, liabilities and obligations specified below in respect of the undertaking shall vest in the State Government on the vesting date :-(i)all the fixed assets of the licensee and all the documents relating to the undertaking;(ii)all the rights, liabilities and obligations of the licensee under hire-purchase agreements, if any, for the supply of materials, or equipments made bona fide before the vesting date ;(iii)all the rights, liabilities, obligations of the licensee under any other contract entered into bona fide before the vesting date, not being a contract relation to the borrowing or lending of money of to the employment of staff.(2)All the assets specified in item (i) of sub-section (1) shall vest in the State Government free from any debts, mortgages or similar obligations of the licensee of attaching to the undertaking :Provided that such debts, mortgages or obligations shall attach to the amount payable under this Act for the assets.(3)In the case of an undertaking which vests in the State Government under this Act, the licence granted to it under Part II of the Electricity Act shall be deemed to have been terminated on the vesting date and all the rights, liabilities and obligations of the licensee under any agreement to supply electricity entered into before that date shall devolve or shall be deemed to have devolved on the State Government:Provided that where any such agreement is not in conformity with the rates and conditions of supply approved by the State Government and in force on the vesting date, the agreement shall be voidable at the opinion of the State Governments:Provided further that the State Government or in the case of transfer of the undertaking to the Board, the Board may alter the tariff and other terms and conditions of supply of electricity to the consumers in the different areas served by the different licensees, but only on expiry of a period of twelve months from the vesting date.(4)In respect of any undertaking to which Section 4 applies, it shall be lawful for the State Government or the authorised representative on or after the vesting date, after removing any obstruction that may be or might have been offered, to take possession of the entire undertaking, or as the case may be, the fixed assets and all documents relating to the undertaking or the Board which the State Government or the Board may require for carrying it on.(5)All the liabilities and obligations, other than those vesting in the State Government under sub-sections (1) and (3) shall continue to be the liabilities and obligations of the licensee, after the vesting date.Explanation. - All liabilities and obligations in respect of staff, taxes including income-tax and wealth-tax, provident fund, gratuity, Employees' State Insurance, industrial disputes and all other matters, up to and including the vesting date, shall continue to be the liabilities and obligations of the licensee after the vesting date.
