The Berhampore Electric Supply Company Limited ( Undertaking ) Acquisition Act, 1981

GOVERNMENT OF WEST BENGAL 

LEGISLATIVE DEPARTMENT 

West Bengal Act VI of 1981 
THE BERHAMPORE ELECTRIC SUPPLY 

COMPANY LIMITED (UNDERTAKING) 
ACQUISITION ACT, 1981. 

[Passed by the West Bengal Legislature.] 

[Assent of the President was first published in the Calcutta Gazette, 
Extraordinary, of the 28th March, 1981.] 

[28th March, 1981.] 

An Act to provide for the acquisition of the electric supply undertaking 
of the Berhampore Electric Supply Company Limited with a view to 
ensuring proper functioning of the said electric supply undertaking 
for public purpose and for matters connected therewith or incidental 
thereto. 

WHEREAS the financial condition of the Berhampore Electric Supply 
Company Limited is such that it is unable to carry out its functions 
properly in relation to its electric supply undertaking; 

AND WHEREAS it is expedient to provide for the acquisition of the 
electric supply undertaking of the Berhampore Electric Supply Company 
Limited with a view to ensuring proper functioning of the said electric 
supply undertaking for public purpose and for matters connected therewith 
or incidental thereto; 

It is hereby enacted in the Thirty-second Year of the Republic of 
India, by the Legislature of West Bengal, as follows:- 

1. (1) This Act may be called the Berhampore Electric Supply 
Company Limited (Undertaking) Acquisition Act, 1981. 

(2) It shall be deemed to have come into force on the 12th day of 
February, 1981. 

Short title 
and 
commence-
ment. 

2. In this Act, unless the context otherwise requires,— 	 Definitions. 

(a) "appointed day" means the 12th day of February, 1981; 

(b) "Board" means the West Bengal State Electricity Board 
54 of 1948. 	 constituted under section 5 of the Electricity (Supply) Act, 

1948; 

19 



The Berhampore Electric Supply Company Limited 
(Undertaking) Acquisition Act, 1981. 

[West Ben. Act 

Undertaking 
to vest in the 
State 
Government. 

General 
effect of 
vesting. 

(Sections 3, 4.) 

(c) "fixed assets" includes works, spare parts, stores, stocks, 
instruments, tools, motor and other vehicles, office 
equipments and furniture; 

(d) "licensee" means the holder of the Berhampore Electric 
Licence, 1928; 

(e) "notification" means a notification published in the Official 
Gazette; 

(f) "prescribed" means prescribed by rules made under this 
Act; 

(g) "undertaking" means the electric supply undertaking of the 
Berhampore Electric Supply Company Limited held under 
the Berhampore Electric Licence, 1928 granted under the 
Indian Electricity Act, 1910; 

(h) words and expressions used but not defined in this Act, and 
defined in the Indian Electricity Act, 1910 or the Electricity 
(Supply) Act, 1948 shall have the meanings respectively 
assigned to them in that Act. 

3. (1) Notwithstanding anything in any other law for the time 
being in force or in any contract, on and from the appointed day the 
undertaking shall, by virtue of this Act, stand transferred to, and vest 
in, the State Government. 

(2) The undertaking which stands vested in the State Government 
by virtue of sub-section (1) shall, immediately after such vesting, stand 
transferred to, and vested in, the Board. 

4. (I) The undertaking which vests under section 3 shall be deemed 
to include all rights, powers, authorities, privileges, properties, liabilities 
and obligations as specified below:— 

(a) all lands, buildings, works, materials, plants, fixed assets 
and books, documents and other papers of the licensee in 
relation to the undertaking; 

(b) all rights, liabilities and obligations of the licensee in 
relation to the undertaking under hire-purchase agreement, 
if any, made before the appointed day; 

(c) all rights, liabilities and obligations of the licensee in 
relation to the undertaking under any contract entered into 
bona fide before the appointed day, not being a contract 
relating to the borrowing or lending of money, or to the 
employment of staff. 

9 of 1910. 

54 of 1948. 

20 



The Berhampore Electric Supply Company Limited 
(Undertaking) Acquisition Act, 1981. 

VI of 1981.] 

(Sections 5, 6.) 

(2) The undertaking which vests under section 3 shall, by force of 
such vestine, be freed and discharged from any trust, obligation, mortgage, 
debt, charge and all other incumbrances affecting it, and any attachment, 
injunction or decree or order of any court restricting the use of such 
undertaking in any manner shall be deemed to have been withdrawn. 

(3) The licence shall be deemed to have terminated on the appointed 
day and all rights, liabilities and obligations of the licensee under any 
agreement to supply electricity shall on the appointed day be so devolved 
on the Board. 

(4) It shall be lawful for the Board or any officer or employee of 
the Board authorised by the Board in this behalf to take possession of 
the undertaking. 

5. (1) For the transfer and vesting of the undertaking under section 
3, the Board shall pay to the licensee in the manner provided in section 
8 an amount determined as hereinafter provided. 

(2) The gross amount payable to the licensee shall be the market 
value of the undertaking on the appointed day. 

(3) The market value of the undertaking shall be deemed to be the 
value of all lands, buildings, works, materials, fixed assets and plants 
of the licensee suitable to, and used by him for, the purpose of the 
undertaking, other than the service lines or other capital works or any 
part thereof which have been constructed at the expenses of the consumers, 
due regard being had to the nature and condition for the time being 
of such lands, buildings, works, materials, fixed assets and plants and 
the state of repair thereof and to the circumstance that they are in such 
position as to be ready for immediate working and to the suitability of 
the same for the purpose of the undertaking, but without any addition 
in respect of compulsory acquisition or of goodwill or of any profits 
which may be or might have been made from the undertaking or of any 
similar consideration. 

6. Where the Board is of opinion that the licensee has on or after 
the appointed day disposed of any fixed assets whether by way of sale, 
exchange, gift, lease or otherwise, or incurred any expenditure, liability 
or obligation otherwise than in the normal course of events, with a view 
to benefit unduly the licensee or some other person or persons and 
thereby caused loss to the Board as succeeding owner of the undertaking, 
the Board shall be entitled to deduct from the amount payable to the 
licensee under this Act and an amount which the Board considers to 
be the loss sustained by the Board: 

Payment of 
amount. 

Effect of 
transaction 
not bona 
fide. 

21 



Deduction 
horn the 
MSS 
amount. 

The Berhampore Electric Supply Company Limited 
(Undertaking) Acquisition Act,1981. 

[West Ben. Act 

(Section 7.) 

Provided that before making such deduction, the licensee shall be 
given a notice to show cause against such deduction within a period 
of fifteen days from the date of receipt of such notice. 

7. (1) Notwithstanding anything to the contrary contained in any 
other law for the time being in force, the Board shall be entitled to 
deduct the following amounts from the gross amount payable to the 
licensee under this Act:— 

(a) the amount, if any, due from the licensee under any mortgage 
or charge; 

(b) the amount, if any, due on account of salary or wages, 
leave-salary or leave-wages, bonus, gratuity, retrenchment 
compensation, contribution to provident fund or on similar 
or other account from the licensee to the employee employed 
in the affairs of the undertaking immediately before the 
appointed day; 

(c) the amount, if any, already paid by the Board to licensee 
in advance; 

(d) the amount due, if any, including interest thereon from the 
licensee to the Board, for energy supplied by the Board 
before the appointed day; 

(e) all amounts and arrears of interest, if any, on such amounts 
due from the licensee to the State Government; 

(f) the amount, if any, which the Board is entitled to deduct 
under section 6; 

(g) the amount of all loans due from the licensee to any financial 
institution constituted by or under the authority of the State 
Government and arrears of interest, if any, on such loans; 

(h) all advances from consumers and prospective consumers 
and all sums which have been or ought to be set apart to 
the credit of the consumer's fund, in so far as such advances 
have not been paid by the licensee to the Board; 

(i) the amount remaining in tariffs and Divident Control 
Reserve, Contingencies Reserve, Development Reserve and 
rebate to consumer's account, in so far as such amount has 
not been paid by the licensee to the Board; 

(j) the amount, if any, due from the licensee under any debt 
or obligation; 

22 



The Berhampore Electric Supply Company Limited 
(Undertaking) Acquisition Act,I981. 

VI of 1981.] 

(Section. 7.) 

Provided that before making any deduction under this 
section the licensee shall be given a notice to show cause 
against such deduction within a period of fifteen days from 
the date of receipt of such notice. 

(2) The amount referred to in clause (b) of sub-section (1) shall, 
on adjustment of the amount, if any, due from the employee to the 
licensee immediately before the appointed day, have preference to all 
amounts due under clauses (d), (e), (g) and (j) of sub-section (1) 
and shall be payable out of the amount payable to the licensee under 
this Act after deduction therefrom of the amounts, if any, that may 
be due from the licensee under clause (a), (c), (f), (h) and (i) of sub-
section (1). 

(3) If, however, the amount payable under this Act after deduction 
therefrom of the amounts, if any, that may be due under clauses (a), 
(c), (f), (h) and (i) of sub-section (1) falls short wholly or in part of 
the amount referred to in clause (b) of sub-section (1) on adjustment 
of the amount, if any, due from the employee to the licensee immediately 
before the appointed day, the Board shall be liable to pay such amount 
due to the employee to the extent of such shortage. 

(4) The licensee shall, within such period as may be specified in 
this behalf by the State Government by notification, submit to the Board 
a statement containing the following particulars— 

(a) the amount due under different heads of account to each 
employee from the licensee, 

(b) the amount, if any, due to the licensee from each such 
employee with reason therefor, and 

(c) the amount due to adjustment to each employee, and shall 
furnish to each employee a copy of such portion of the 
statement as relates to such employee. 

(5) An employee may, within fifteen days of the receipt of the copy 
of the statement relating to him, submit in writing his objection thereto 
to the Board and send a copy of the objection to the licensee. 

(6) If no objection is submitted by an employee under sub-
section (5), the amount shown on adjustment to be due to him in the 
statement shall be deemed to be the amount determined to be due to 

him. 

(7) On receiving an objection under sub-section (5), the Board shall 
give notice to the employee and the licensee of the date fixed for hearing 
of the objection and, after hearing the employee and the licensee and 

23 



The Berhampore Electric Supply Company Limited 
(Undertaking) Acquisition Act,1981. 

[West Ben. Act 

Manner of 
payment of 
amount. 

(Section 8.) 

taking into account the evidence adduced, shall determine the amount 
due to the employee. If the licensee fails to appear at the hearing, the 
amount due to the employee shall be determined ex parte. If the 
employee fails to appear at the hearing the objection shall stand rejected. 

(8) If the Board is of opinion on the application of the employee 
or the licensee or of its own motion that some relevant facts had not 
been disclosed or considered at the time of determination under sub-
section (6) or under sub-section (7) it may review the matter and 
determine the amount due to the employee. 

8. (1) The Board shall determine the net amount payable to the 
licensee after determining the gross amount payable to the licensee and 
making therefrom the deductions provided in this Act. 

(2) The Board may call for the assistance of such officers and staff 
of the undertaking as it may deem fit in determining the net amount 
under sub-section (1). 

(3) If any dispute arises in the determination of the net amount 
payable to the licensee under sub-section (1), the Board shall report the 
dispute to the State Government and the State Government shall refer 
the dispute to an Arbitrator to be appointed by the State Government 
for determination of the net amount payable to the licensee. The Arbitrator 
shall be a person who is or has been a High Court Judge or a District 
Judge. 

(4) The dispute in the determination of the net amount payable to 
the licensee under sub-section (1) may include any of the following 
matters— 

(a) Whether any property belonging, or any right, liability 
or obligation attaching, to the undertaking vests under 
section 3? 

(h) Whether any fixed asset forms part of the undertaking? 

(c) Whether any hire-purchase agreement or other contract has 
been entered into bona fide or not? 

(d) What was the value of the undertaking on the appointed 
day? 

(e) What amount, if any, is due from the licensee to the employee 
under clause (b) of sub-section (1) of section 7 on adjustment 
of the amount, if any, due from such employee to the 
licensee immediately before the appointed day? 

(f) What amount. if any, have to be deducted under this Act 
from the gross amount payable to the licensee? 

24 



The Berhampore Electric Supply Company Limited 
(Undertaking) Acquisition Act,.1981. 

V of 1981,) 

(Section 9.) 

(5) The net amount payable to the licensee shall, on determination 
under sub-section (1) or sub-section (3), as the case maybe, be paid by 
the Board to the licensee as soon as possible. 

(6) The net amount referred to in sub-section (5) shall bear interest 

at the rate of four per centum per annum from the appointed day till 

the date of payment. 

(7) When the gross amount payable to the licensee is equal to or 
less than the total amount to be deducted no payment shall be made 

to the licensee by the Board. 

(8) The determination of the amount due to the employee under 
sub-section (6) or sub-section (7) or sub-section (8) of section 7 or under 
sub-section (3) of this section, as the case may be, shall be final and 
conclusive and shall not be called in question in any court or tribunal 

or any other authority. 

(9) The Board shall, on final determination of the amount due to 
the employee, pay to him in terms of the provisions of sub-section (2) 
or sub-section (3), as the case may be, of section 7 the amount so 
determined to be due to him. If any amount due to any employee remains 
unpaid. the same shall be deposited by the Board in any branch of the 
State Bank of India and shall be payable to the employee or his legal 
representative. 

(10) Subject to the provisions of this section, the provitions of the 

I() of 1940. 	Arbitration Act, 1940 shall apply to the arbitration under this Act. 

9. (1) Where any property forming part of the undertaking has 
been transferred and vested under section 3,— 

(a) every person in whose possession, custody or control any 
such property may be, shall forthwith deliver possession 
thereof to the Board; 

(b) any person who, immediately before such transfer and 
vesting, has in his possession, custody or control any books, 
documents or other papers relating to the undertaking, 
shall be liable to account for the said books, documents and 
papers to the Board and shall deliver them to the Board 
or to such person or persons as the Board may authorise 
in this behalf. 

(2) Without prejudice to the other provisions of this section it 
shall be lawful for the Board to take all necessary steps for securing 
possession of all properties which have been transferred and vested 

under section 3. 

Duty to 
deliver 
possession of 
property etc. 

25 



The Berhampore Electric Supply Company Limited 
(Undertaking) Acquisition Act,1981. 

[West Ben. Act 

(Sections 10-12.) 

Employment 
ofemployees 
of the under-
taking. 

Powerof 
entry. 

10. (1) The persons who have been in employment under the licensee 
in connection with the affairs of the undertaking immediately before 
the appointed day shall cease to be in such employment so far as the 
undertaking is concerned and such persons who were not part-time 
employees and who have not attained the age to superannuation on the 
appointed day under the rules framed by the Board shall be appointed 
afresh on the appointed day by the Board on such remuneration and 
on such terms and conditions of service as may be fixed by the Board. 

(2) If any question arises as to whether any person was employed 
part-time in connection with the affairs of the undertaking immediately 
before the appointed day, the question shall be referred, within a period 
of one year from the appointed day, to the State Government and the 
State Government shall, after giving such person a reasonable 
opportunity of being heard, decide it in such manner as it thinks fit 
and the decision of the State Government thereon shall be final. 

11. Any employee of the Board authorised by the Board in this 
behalf by general or special order may, at any time, after giving the 
licensee reasonable notice, enter upon any land or permises in his 
possession and make survey, examination or investigation for the 
purposes of this Act. 

Penalty. 	 12. (1) Any person who— 

(a) having in his possession or custody or control any property 
forming part of the undertaking wrongfully withholds such 
property from the Board, or 

(b) wrongfully obtains possession of, or retains, any property 
forming part of the undertaking which have vested under 
section 3, or 

(c) wilfully withholds or fails to furnish to the Board or to any 
person authorised in this behalf by the Board any books, 
documents or other papers relating to the undertaking 
which may be in his possession, custody or control, or 

(d) fails to deliver to the Board any assets, books of account 
or other documents in his possession, custody or control 
relating to the undertaking, or 

(e) wrongfully removes or destroys any property forming part 
of the undertaking, or 

(f) wrongfully uses any property forming part of the 
undertaking, 

26 



The Berhampore Electric Supply Company Limited 
(Undertaking) Acquisition Act,1981. 

VI of 1981.] 

(Section 13.) 

shall be punishable with imprisonment for a term which may extend 
to two years or with fine which may extend to ten thousand rupees, or 
with both: 

Provided that the court trying any offence under this section may, 
at the time of convicting the accused person, order him to deliver up 
or refund, within a time to be fixed by the court, any property wrongfully 
withheld or obtained or any document wilfully withheld or not furnished. 

(2) No court shall take cognizance of an offence punishable under 
this section except with the previous sanction of the State Government 
or an officer authorised by the State Government in this behalf. 

13. (1) Where an offence punishable under this Act has been 
committed by a Company, every person who, at the time the offence 
was committed, was in charge of, and was responsible to, the Company 
for the conduct of the business of the Company as well as the Company, 
shall be deemed to be guilty of the offence and shall be liable to be 
proceeded against and punished accordingly: 

Provided that nothing contained in this section shall render any such 
person liable to any punishment if he proves that the offence was 
committed without his knowledge or that he had exercised all due 
diligence to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub-section (1), where 
any such offence has been committed by a Company and it is proved 
that the offence has been committed with the consent or the connivance 
of, or is attributable to any neglect on the part of, any director, manager, 
secretary or other officer of the Company, such director, manager, 
secretary or other officer shall be deemed to be guilty of that offence 
and shall be liable to be proceeded against and punished accordingly. 

Explanation.—For the purposes of this section,— 

(a) "Company" means any body corporate and includes a firm, 
society or other association of individuals; and 

(b) "director" in relation to— 

(i) a firm, means a partner in the firm, 

(ii) a society or other association of individuals, means 
the person who is entrusted, under the rules of the 
society or other association, with the management of 
the affairs of the society or other association, as the 
case may be. 

Offences by 
Companies. 

27 



Protection of 
action taken 
in good faith. 

Act to 
override 
other laws. 

Power to 
remove 
difficulties. 

Power to 
make rules. 

Repeal and 
savings. 

The Berhampore Electric Supply Company Limited 
(Undertaking) Acquisition Act,1981. 

[West Ben. Act VI of 1981.] 

(Sections 14-18.) 

14. No suit, prosecution or other legal proceedings shall lie against 
the State Government or the Board or any employee of the State 
Government or of the Board in respect of anything which is in good 
faith done or intended to be done in pursuance of this Act or any rule 
or order made thereunder. 

15. The provisions of this Act shall have effect notwithstanding 
anything to the contrary contained in any law or in any instrument or 
in any decree or order of any court, tribunal or other authority. 

16. If any difficulty arises in giving effect to the provisions of this 
Act, the State Government may, by order not inconsistent with the 
provisions of this Act, remove such difficulty. 

17. (1) The State Government may, by notification, make rules for 
carrying out the purposes of this Act. 

(2) In particular and without prejudice to the generality of the 
foregoing power, such rules may provide for all or any of the matters 
which may be, or are required to be, prescribed or made by rules. 

18. (1) The Berhampore Electric Supply Company Limited West Ben 

(Undertaking) Acquisition Ordinance, 1981, is hereby repealed. 	
Ord. II 1981. 

(2) Notwithstanding such repeal, anything done or any action taken 
under the said Ordinance shall be deemed to have been validly done 
or taken under this Act. 

28 


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