Section 10 in Telangana Electricity Supply Undertakings (Acquisition) Act, 1954
10. Deductions from the compensation.
(1)The Government shall be and shall be deemed always to have been entitled to deduct the following sums from the compensation payable under this Act to a licensee:-(a)the amount, if any, already paid in advance by way of compensation;(b)the amount, if any, specified in section 9;(c)[ the amount, if any, due from the licensee to the Government or the Andhra Pradesh State Electricity Board for energy supplied by them before the vesting date;] [Substituted by Act No.6 of 1972 w.e.f.01.04.1959.](d)all other amounts and arrears of interest, if any, thereon due from the licensee to the Government except loans and arrears of interest, if any, thereon;(e)the amount, if any equivalent to the loss sustained by the Government by reason of any property or rights belonging to the undertaking not having been handed over to the Government, the amount of such loss being deemed to be-(i)in cases where compensation is payable under Basis A or Basis B, the market value on the vesting date of such property or rights, together with any income which might have been realised by the Government if the property or rights had been handed over on the vesting date; and(ii)in cases where compensation is payable under Basis C, the amount by which the market value of such property or rights exceeds the compensation payable therefor under this Act, together with any income which might have been realised by the Government if the property or rights had been handed over on the vesting date.(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 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 from the licensee on the vesting date bears-(a)in the case of a licensee not being a local authority, to the aggregate of (i) the paid up share capital of the licensee, (ii) his debenture capital and (iii) the amount of all loans due to the Government as aforesaid; and(b)in the case of a licensee being a local authority, to the value of the capital assets as shown in the capital account of the undertaking;(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 in so far as such advances have not been paid over by the licensee to the Government;(v)all sums which have been or ought to be set aside to the credit of the consumers' funds constituted under the bulk supply agreement or under the provisions in the licence relating to distribution of profits or under paragraph II (1) of the Sixth Schedule to the Electricity Supply Act in so far as such sums have not been paid over by the licensee to the Government and in cases where there is no bulk supply agreement or the licence does not contain provisions relating to distribution of profits or paragraph II (1) of the Sixth Schedule to the Electricity Supply Act does not apply, the amounts, if any, which have been contributed to the consumers' fund account in the annual accounts, in so far as such sums have not been paid over by the licensee to the Government;(vi)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 (vi), in so far as the deposits or sums aforesaid may be in the custody of trustees under a valid deed of trust.(3)In the case referred to in the foregoing proviso, the Government shall have and shall be deemed always to have had power to require the trustees to transfer the funds with them, and the securities and other properties, if any, in which the same may have been invested, in so far as they may relate to the staff transferred to the Government; and the trustees shall be completely discharged in respect of all claims to, or enforceable against, the funds, securities and other properties so transferred.
