Section 5 in The Shillong Electric Supply Undertaking (Acquisition) Act, 1977
5. Vesting of undertaking.
(1)The property, rights, liabilities and obligations specified below in respect of the undertaking shall vest in the 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 equipment made bona fide before the vesting date;(iii)all the rights, liabilities and obligations of the licensee under any other contract entered into bona fide before the vesting date, not being a contract relating to the borrowing or lending of money, or to the employment of staff;(iv)(a)all cash and bank balances of the licence relatable to the undertaking on the vesting date;(b)all amounts due or accruable or accrued to the licensee in connection with electrical energy supplied or other supplies made or services rendered by the licensee, in the course of operations of the undertaking, upto the vesting date; and(c)all investments, loans, advances or deposits relatable to the operations of the undertaking, made by the licensee and outstanding on the vesting date except loans and advances to the employees of the licensee.(2)All the assets specified in clause (i) of sub-section (1) shall vest in the Government free from any encumbrances, debts, mortgages or similar obligations of the licensee or attaching to the undertaking :Provided that such debts, mortgages or obligations shall attach to the amount payable under this Act for the assets.(3)The licence granted to the undertaking under the Electricity Act shall be deemed to have been terminated on the vesting date and ail 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 Government:Provided that where any such agreement is not in conformity with the rates and conditions of supply approved by the Government and in force on the vesting date, the agreement shall be voidable at the option of the Government :Provided further that on and from the vesting date the consumers will be governed by the Tariff for supply of electricity and the general conditions of supply of the Board.(4)On and from the vesting date, it shall be lawful for the Government or their authorised representative, after removing obstruction, if any, to take physical possession of all the property, movable and immovable including fixed assets and documents of the undertaking.(5)All the liabilities and obligations other than those vesting in the 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, provident fund, Employees State Insurance Industrial disputes and all other matters upto and including the vesting date, shall continue to be the liabilities and obligations of the licensee, after the vesting date.
