Section 4 in The U.P. Electricity Reforms (Transfer of Transmission and Related Activities Including the Assets, Liabilities and Related Proceedings Scheme, 2010
4. Transfer of Transmission undertaking.
(1)Subject to the terms and conditions contained in this Scheme, the Transmission undertaking as set out in Schedule shall stand transferred to and vest with the Transferee on and from the date of the transfer notified for the purpose without any further act, deed or thing to be done by any person including the State Government, the Transferor or the Transferee.(2)The Trading undertaking shall continue to vest in the Transferor.(3)The assets and liabilities of the Transmission undertaking transferred from the Transferor to the Transferee as specified in the Part-II of the Schedule as on the Date of the transfer provided under clause 2(f)(e) and shall be adjusted to reflect the actual value on finalization and audit of accounts of the Transferor.(4)On such transfer and vesting of the Transmission undertaking in terms of this Scheme, the Transferee shall be responsible for all contracts, rights, deeds, schemes, arrangement, agreements and other instruments of whatever nature relating to the Transmission Undertaking transferred to the Transferee to which the Transferor was a party, subsisting or having effect on the date of the transfer in the same manner as the Transferor was liable immediately before the date of the transfer and the same shall be in force and effect against or in favour of the Transferee and may be enforced effectively as if the Transferee had been a party thereto instead of the Transferor.(5)The rights in the assets or undertaking transferred to the Transferee shall be subject to the restrictions and limitation specified in this scheme.(6)If the assets classified as a part of the Transmission Undertaking arc subject to any charge, lien, encumbrance or other arrangement in favour of third parties for any financial assistance or obligation taken or assumed by the Transferor hereinafter referred to as "Security" and the liabilities in respect thereof are to be discharged either wholly or partly by the Transferor, the Transferor shall indemnify the Transferee from all claims arising out of the enforcement of such security.(7)The transfer of the Transmission undertaking from the Transferor to the Transferee under this Scheme shall be a de-merger of the Transferor within the meaning of Section 2 (19AA) of the Income Tax Act, 1961 and subject to sub-clause (3) above, the opening Balance sheet of the Transferee as on the date of the transfer shall be as per Part II of Schedule of this scheme.(8)In consideration of the transfer of the Transmission Undertaking from the Transferor to the Transferee as per this scheme, the Transferee shall issue shares in favour of the Transferor at par value as specified in Part II of Schedule of this scheme.(9)The transfer and vesting of the Transmission Undertaking in terms of this Scheme shall take effect on the date of the transfer notified for the purpose under clause 2(1)(e), notwithstanding that the opening balance-sheets of the Transferee are subject to finalization of accounts of the Transferor as on the date of the transfer, audit and adjustment of the actual values.
