The Barakar Electric Supply Installations Acquisition Act, 1981

GOVERNMENT OF WEST BENGAL 
LEGISLATIVE DEPARTMENT 
West Bengal Act V of 1981 
THE BARAKAR ELECTRIC SUPPLY 
INSTALLATIONS 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 Barakar Electric Supply 
Installations for public purpose and for matters connected thcrewith 
or incidental thereto. 
WHEREAS it is expedient to provide for the acquisition of the Barakar 
Electric Supply Installations 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 Barakar Electric Supply Shorttitle 
Installations Acquisition Act, 1981. 	 and 
commence-
ment. 
(2) It shall be deemed to have come into force on the 12th day of 
February, 1981. 
2. In this Act, unless the context otherwise requires,— 	 Definitions. 
(a) "appointed day" means the 12th day of February, 1981; 
(b) "area of supply" means the area specified as such in the 
Barakar Electric Licence, 1935; 
(c) "Barakar Electric Licence, 1935" means the licence, cited 
as the Barakar Electric Licence, 1935, granted to Babu 
Hariram Agarwalla (since deceased) of Barakar by the State 
9 of 1910. 	 Government under Part II of the Indian Electricity Act, 1910; 
(d) "Barakar Electric Supply Installations" means and includes 
any feeder, distributing main, service line, transformer 
station with all its connected machinery and apparatus, plant, 
workshop, generating station, electric supply line (whether 
overhead line or underground cable), land, building, 
9 
The Barakar Electric Supply Installations Acquisition Act, 1981. 
[West Ben. Act 
(Sections 3, 4.) 
machinery, apparatus, fixed assets and any other thing of 
whatever description acquired, erected or set up and any 
service line or other capital work or any part thereof 
constructed to supply energy within the area of supply under 
the Barakar Electric Licence, 1935 and to carry into effect 
the objects of such licence and all the books, documents and 
other papers relating to the said Barakar Electric Supply 
Installations. 
Explanation.—"Generating station" shall have the same 
meaning as in the Electricity (Supply) Act, 1948; 	 54 of 1948. 
(e) "Board" means the West Bengal State Electricity Board 
constituted under section 5 of the Electricity (Supply) Act, 
1948; 
(f) "fixed assets" includes works, spare parts, stores, stocks, 
instruments, tools, motor and other vehicles, office 
equipments and furniture; 
(g) "notification" means a notification published in the Official Gazette; 
(h) "owner" means any person having right, title and interest 
in the Barakar Electric Supply Installations; 
(i) "prescribed" means prescribed by rules made under this Act; 
(j) "property" means the Barakar Electric Supply Installations 
and the right, title and interest of the owner in relation to 
such installations; 
(k) words and expressions used but not defined in this Act and 
defined in the Indian Electricity Act, 1910 or the Electricity 	 9 of 1910. 
(Supply) Act, 1948 shall have the meanings respectively 
assigned to them in that Act. 
Barakar 
Electric 
Supply 
Installations 
to vest in 
the State 
Government 
General 
effect of 
vesting. 
3. (1) On and from the appointed day, the Barakar Electric Supply 
Installations and the right, title and interest of the owner in relation to 
such installations shall, by virtue of this Act, stand transferred to, and 
vest absolutely in, the State Government. 
(2) The property which stands vested in the State Government by 
virtue of sub-section (1) shall, immediately after such vesting, stand 
transferred to. and vest in, the Board. 
4. (1) The property which vests under section 3 shall, by force of 
such vesting, 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 
property in any manner shall be deemed to have been withdrawn. 
10 
The Barakar Electric Supply Installations Acquisition Act, 1981. 
V of 1981.] 
(Sections 5, 6.) 
(2) Any person in whose possession or custody or control the property 
as aforesaid or any part thereof may be , immediately before the appointed 
day, shall, on the appointed day, deliver the possession of such property 
or any part thereof, as the case may be, and all books of account, registers 
and all other documents of whatever nature relating to such property or 
any part thereof to the Board or to such other person as the Board may 
authorise in this behalf. 
(3) The Board may take, or cause to be taken, such steps as it considers 
necessary for securing the possession of the property which has vested 
under section 3. 
5. (1) For the transfer and vesting of the property under section 3, a mo 
Paym
unt.  
ent of 
the Board shall pay to the owner in the manner provided in section 8 an 
amount determined as hereinafter provided. 
(2) The gross amount payable to the owner shall be the market value 
of the property on the appointed day. 
(3) The market value of the property shall be deemed to be the value 
of all lands, buildings, works, materials, fixed assets and plants including 
others mentioned in clause (d) of section 2 of the owner suitable to, and 
used by him for, the purpose of the property, 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 including others mentioned in clause (d) of section 
2 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 property, 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 property or of any similar 
consideration. 
6. Where the Board is of opinion that the owner has on or after the Effect of 
transaction 
appointed day disposed of any fixed assets whether by way of sale, not &ma 
exchange, gift, lease or otherwise, or incurred any expenditure, liability ,fide. 
or obligation otherwise than in the normal course of events, with a view 
to benefit unduly the owner or some other person or persons and thereby 
caused loss to the Board as succeeding owner of the property, the Board 
shall be entitled to deduct from the amount payable to the owner under 
this Act an amount which the Board considers to be the loss sustained by 
the Board: 
Provided that before making such deduction, the owner 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. 
11 
The Barakar Electric Supply Installations Acquisition Act, 1981. 
[West Ben. Act 
(Section. 7.) 
Deduction 
from the 
gross 
amount. 
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 owner under 
this Act:— 
(a) the amount, if any, due from the owner 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 owner to the employee employed 
in the affairs of the property immediately before the 
appointed day; 
(c) the amount, if any, already paid by the Board to the owner 
in advance; 
(d) the amount due, if any, including interest thereon from the 
owner to the Dishergar Power Supply Company Limited for 
energy supplied by the Dishergar Power Supply Company 
Limited before the appointed day; 
(e)_ all amounts and arrears of interest, if any, on such amounts 
due from the owner 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 owner 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 owner to the Board; 
(i) the amount remaining in tariffs and Dividend Control 
Reserve, Contingencies Reserve, Development Reserve and 
rebate to consumer's account, in so far as such amount has 
not been paid by the owner to the Board; 
(j) the amount, if any, due from the owner under any debt or 
obligation: 
Provided that before making any deduction under this 
section the owner shall be given a notice to show cause 
againsrisuch deduction within a period of fifteen days from 
the date of receipt of such notice. 
12 
The Barakar Electric Supply Installations Acquisition Act, 1981. 
V of 1981.] 
(Section 7.) 
(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 owner 
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 owner under this Act after 
deduction therefrom of the amounts, if any, that may be due from the 
owner under clauses (a), (c), (1), (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 owner 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 owner 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 owner, 
(1) the amount, if any, due to the owner from each such employee 
with reason therefor, and 
(c) the amount due on 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 owner. 
(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 owner of the date fixed for hearing 
of the objection and, after hearing the employee and the owner and taking 
into account the evidence adduced, shall determine the amount due to 
the employee. If the owner 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 owner 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. 
13 
The Barakar Electric Supply Installations Acquisition Act, 1981. 
[West Ben. Act 
(Section 8.) 
Manner of 
payment of 
amount. 
8. (1) The Board shall determine the net amount payable to the 
owner after determining the gross amount payable to the owner and 
making therefrom the deductions provided in this Act. 
(2) The Board may call for the assistance of such officers and staff 
of the Barakar Electric Supply Installations 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 owner 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 owner. 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 owner 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 property vests under section 3? 
(b) Whether any fixed asset forms part of property? 
(c) Whether any hire-purchase agreement or other contract has 
been entered into bona fide or not? 
(d) What was the value of the property on the appointed day? 
(e) What amount, if any, is due from the owner 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 owner 
immediately before the appointed day? 
(f) What amounts, if any, have to be deducted under this Act 
from the gross amount payable to the owner? 
(5) The net amount payable to the owner shall, on determination 
under sub-section ( I) or sub-section (3), as the case may be, be paid by 
the Board to the owner as soon as possible. 
(6) The net amount referred to in sub-section (5) shall bear interest 
at the rate of four per centunz per annum from the appointed day till the date of payment. 
(7) When the gross amount payable to the owner is equal to or less 
than the total amount to be deducted no payment shall be made to the 
owner 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. 
14 
The Barakar Electric Supply Installations Acquisition Act, 1981. 
V of 1981.1 
(Sections 9, 10.) 
(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 he 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 provisions of the 
10 of 1940. 	 Arbitration Act, 1940 -shall apply to the arbitration under this Act. 
9. (1) Where any asset forming part of the property has been 
transferred and vested under section 3,— 
(a) every person in whose possession, custody or control any 
such asset 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 property, 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 
he lawful for the Board to take all necessary steps for securing possession 
of all assets forming part of the property which have been transferred 
and vested under section 3. 
10. (1) The persons who have been in employment under the owner 
in connection with the affairs of the property immediately before the 
appointed day shall cease to be in such employment so far as the property 
is concerned and such persons who were not part-time employees and 
who have been in continuous service for a period of two years immediately 
before the appointed day and who have not attained the age of 
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 property 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 apportunity of 
being heard, decide it in such manner as it thinks fit and the decision of 
the State Government thereon shall be final. 
Duty to 
deliver 
possession 
of assets, etc. 
Employment 
of 
employees 
of the 
property. 
15 
Power of 
entry. 
Penalty. 
Offence by 
Companies. 
The Barakar Electric Supply Installations Acquisition Act, 1981. 
[West Ben. Act 
(Sections 11-13.) 
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 owner 
reasonable notice, enter upon any land or premises in his possession and 
make survey, examination or investigation for the purposes of this Act. 
12. (1) Any person who,— 
(a) having in his possession or custody or control any asset 
forming part of the property wrongfully withholds such asset 
from the Board, or 
(b) wrongfully obtains possession of, or retains, any asset 
forming part of the property which has 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 property 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 property, or 
(e) wrongfully removes or destroys any assets forming part of 
the property, or 
(f) wrongfully uses any assets forming part of the property, 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 assets 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. 
16 
The Barakar Electric Supply Installations Acquisition Act, 1981. 
(Sections 14-18.) 
(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. 
14. No suit, prosecution or other legal proceeding 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. ( I ) The Barakar Electric Supply Installations (Acquisition) 
Ordinance, 1981, is hereby repealed. 
(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. 
V of 1981.] 
West Ben. 
Ord. 111 of 
1981 
Protection 
of action 
taken to 
good faith. 
Act to 
override 
other laws. 
Power to 
remove 
difficulties. 
Power to 
make rules. 
Repeal and 
savings. 
17 

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