Section 14 in Karnataka Electricity Reform Act, 1999
14. Reorganisation of the Karnataka Electricity Board.
(1)On and with effect from the date on which a transfer scheme prepared by the State Government to give effect to the object and purposes of this Act is published or such further date as may be prescribed (hereinafter referred to as the effective date of the first transfer), any property, interest in property, rights and liabilities which immediately before the effective date of first transfer belong to the Board shall vest in the State Government on such terms as may be agreed between the State Government and the Board.(2)Any property, interest in property, rights and liabilities vested in the State Government under sub-section (1) or part thereof may be revested by the State Government in the KPTC or any generating company or companies in accordance with the transfer scheme published under sub-section (1) along with such other property, rights and liabilities of the State Government as may be specified in such scheme, on such terms and conditions as may be agreed between the State Government and the KPTC or any generating company or companies, as the case may be.(3)From the effective date of first transfer of properties etc., to the KPTC, the Board shall stand dissolved. The Chairman and Members of the Board shall be deemed to have vacated their office. Such of the functions, duties, rights and powers exercisable by the Board under the Indian Electricity Act, 1910 or Electricity (Supply) Act, 1948 or any rule framed thereunder as the State Government may by notification specify shall be exercisable by the KPTC or any generating company or companies, as the case may be, from the effective date of first transfer.(4)Notwithstanding anything in this section, where,-(a)the transfer scheme involves the transfer of any property or rights to any person or undertaking not wholly owned by the State Government, the scheme shall give effect to the transfer only for fair value to be paid by the transferee to the State Government; and(b)a transaction of any description is effected in pursuance of a transfer scheme, it shall be binding on all persons including third parties.(5)The State Government may, after consulting the KPTC [or a licensee as the case may be] [Inserted by Act 4 of 2005 w.e.f. 24.12.2004], KPTC require the [or a licensee as the case may be] [Inserted by Act 4 of 2005 w.e.f. 24.12.2004] to draw up a transfer scheme to vest in a further licensee (the "transferee licensee"), any of the function including a distribution function, any property, interest in property, rights and liabilities which have been vested in the KPTC [or a licensee as the case may be] [Inserted by Act 4 of 2005 w.e.f. 24.12.2004] under this section and publish the same as the scheme of transfer under this Act. The transfer scheme to be notified under this sub section shall have the same effect as the transfer scheme under sub section (2) and shall be effective from the date specified (effective date of second transfer).(6)A transfer scheme under this section may, amongst others,.-(a)define the property, interest in property, rights and liabilities to be allocated,-(i)by specifying or describing the property, rights and liabilities in question;(ii)by referring to all the property, interest in property, rights and liabilities comprised in a specified part of the transferor's undertaking; or(iii)partly in the one way and partly in the other;(b)provide that any rights or liabilities specified or described in the scheme shall be enforceable by or against the transferor, or the transferee, as the case may be;(c)impose on KPTC or any licensee, an obligation to enter into such written agreements with, or execute such other instruments in favour of, any person as may be specified in the scheme;(d)impose on any transferee licensee the obligations to comply with the power procurement and purchase arrangements with KPTC; and(e)make such supplemental, incidental and consequential provisions as transferor licensee considers appropriate including provision specifying the order in which any transfer or transaction is to be regarded as taking effect.(7)All debts and obligations incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Board, or the KPTC or generating company or companies before a transfer scheme becomes effective shall, to the extent specified in the relevant transfer scheme, be deemed to have been incurred, entered into or done by the Board, with the Board or for the State Government or the KPTC or the transferee, and all suits or other legal proceedings instituted by or against the Board or transferor, as the case may be, may be continued or instituted by or against the State Government or the concerned transferee, as the case may be.(8)If pursuant to a transfer scheme framed by the State Government, the KPTC [or a licensee as the case may be] [Inserted by Act 4 of 2005 w.e.f. 24.12.2004] is required to vest any part of its undertaking in another company or body corporate or person, the Commission shall amend the licence granted to enable the transferee to carry out the functions and activities assigned to the transferee.
