Section 10(2) in Tamil Nadu Electricity Supply Undertakings (Acquisition) Act, 1954
(2)In addition to the deductions specified above the Government shall also be and be deemed always to have been entitled to make the following deductions: -(a)in cases where the compensation is payable under Basis A or Basis B, any sum which during a period not exceeding three consecutive account years immediately before the vesting date has been distributed as profits, but is not correctly so distributable;(b)in cases where the compensation is payable under Basis C -(i)the amount of all loans due from the licensee to the Government [and the Board] [Inserted by section 3(ii) of the Tamil Nadu Electricity Supply Undertakings Acquisition) Amendment Act, 1969 (Tamil Nadu Act 11 of 1969), which was deemed to have come into force on the 1st July 1957.] and arrears of interest, if any, thereon;(ii)a portion of the amount of solatium bearing the same proportion to the total amount of solatium, as the amount of all loans due to the Government [and the Board] [These Words there inserted by section 3(H) of the Tamil Nadu Electricity Supply Undertakings Acquisition) Amendment Act, 1969 (Tamil Nadu Act 11 of 1969), which was deemed to have come into force on the 1st July 1957.] from the licensee on the vesting date bears to the aggregate of -(a)the paid up share capital of the licensee not being a local authority, or the value of the capital assets as shown in the capital account of the undertaking in the case of a licensee being a local authority,(b)his debenture capital, and(c)the amount of all loans due to the Government [and the Board] as aforesaid;(iii)all sums paid by consumers by way of security deposit and arrears of interest due thereon on the vesting date in so far as they have not been paid over by the licensee to the Government, less the amounts which according to the books of the licensee are due from the consumers to the licensee for energy supplied by him before that date;(iv)all advances from consumers and prospective consumers, and all sums which have been or ought to be set aside to the credit of the consumers' fund in so far as such advances or sums have not been paid over by the licensee to the Government;Explanation. - For the purpose of this clause, "consumers' fund" shall, in the case of the undertaking of a licensee being a local authority, mean the amount referred to as such in the bulk supply agreement or, where no such reference has been made in the bulk supply agreement, the net profits of the undertaking remaining after effecting the appropriations to the general funds of the local authority in accordance with the terms of the said agreement. In the case of the undertaking of a licensee other than a local authority, for any account year prior to the date on which the Sixth Schedule to the Electricity Supply Act came into force, it shall mean the amount referred to as such in the bulk supply agreement and, for any account year on and from the said date, it shall mean the amount specified in paragraph 11(1) of the said Schedule as the amount to be set apart for distribution to consumers;(v)all deposits made by, and all sums due to the staff transferred to the Government on account of Provident Fund or other beneficial schemes, in so far as such deposits or sums have not been paid over by the licensee to the Government, less the amounts which the Government are satisfied are due to the licensee from the members of the staff so transferred;Provided that no deduction shall be made in pursuance of paragraph (v), in so far as the deposits or sums aforesaid may be in the custody of trustees under a valid deed of trust.
