Building Regulation

Provisions where licence as a licensee is revoked

§224C

Summary

1[224-C. (1) Where the licence of a licensee is revoked under section 224-B as it stood immediately before the commencement of the U. P. Municipalities (Amendment) Act, 1975, or where such licence stands revoked by virtue of the new section 224-B as substituted by the said Act, all the property pertaining to the waterworks (namely, all existing water supply services, including all plants, machinery, waterworks, pumping sets, filter beds, water mains and pipes laid down along, over or under any public street, and all buildings and other works, materials, stores and things appurtenant thereto) belonging to or vested in the licensee immediately before the date of revocation of the license (hereinafter in this section referred to as the said date) shall as from the said date vest in and stand transferred to the Municipality free from any debt, mortgage or similar obligation of the licensee attached to such property : Provided that any such debt. mortgage or similar obligation shall attach to the amount referred to in sub-section (2) in substitution for such property. (2) Where any property belonging to the licensee vests in the Municipality under sub-section (1), not being waterworks of which only the management was transferred to him by the Municipality under clause (d) of section 224, the Municipality shall pay to such licensee an amount determined as hereinafter provided in this section : Provided that the licensee shall, in addition to the said amount, be paid interest thereon on the Reserve Bank are ruling on the said date plus one percentum for the period from the said date to the date of payment of the said amount. (3) The State Government shall appoint, by order in writing a person having adequate knowledge and experience in matters relating to accounts to be Special Officer to assess any amount payable under this section to the licensee after making the deductions mentioned in this section. (4) (a) The Special Officer may call for the assistance of such officers and staff of the State Government in the Local Self-Government Engineering Department or of the licensee as he may deem fit for assessing the net amount payable. (b) The Special Officer shall have the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908, when trying a suit, in respect of the following matters :- (i) enforcing the attendance of any person and examining him on oath ; (ii) compelling the production of documents ; and (iii) issuing commissions for the examination of witnesses. The Special Officer shall also have such further powers as may be specified by the State Government by notification in the Gazette. (5) The gross amount payable to such licensee shall be the aggregate value of the amounts specified below - (i) the book value of all completed works in beneficial use pertaining to the waterworks and taken over by the Municipality (excluding works paid for by the consumers), less depreciation calculated in accordance with the Table appended to this section ; (ii) the book value of works in progress taken over, excluding works paid for by the consumers or prospective consumers ; (iii) the book value of all stores, including spare parts taken over, and in the case of used stores and spare parts, if taken over, such sum as may be decided upon by the Special Officer ; (iv) the book value of all other fixed assets in use on the said date and taken over, less depreciation calculated in accordance with the said Table ; (v) the book value of all plants and equipments existing on the said date, if taken over, but no longer in use owing to wear and tear or to obsolescence, to the extent such value has not been written off in accordance with the said Table ; Explanation- The book value of any fixed asset means its original cost, and shall comprise - (i) the purchase price paid by the licensee for the asset, including the cost of delivery and all charges property incurred in erecting and bringing the asset into beneficial use, as shown in the books of the licensee ; (ii) the cost of supervision actually incurred, but not exceeding fifteen per cent of the amount referred to in paragraph (i) : Provided that before deciding the amount under this subsection, the licensee shall be given an opportunity by the Special Officer of being heard, after giving him a notice of at least 15 days therefor. (6) The Municipality shall be entitled to deduct the following sums from the gross amount payable under sub-section (5) to the licensee - (a) all amounts and arrears of interest, if any, thereon, due from the licensee to the Municipality ; (b) all amounts and arrears of interest, if any, thereon, due to the State Government or the State Electricity Board ; (c) any amount of wages, bonus, gratuity, provident fund or other payments due to remaining unpaid on the said date to persons employed as workmen (within the meaning of the U. P. Industrial Disputes Act, 1947) in connection with the waterworks ; (d) any amount which licensee may have failed to pay in respect of either his contribution or the employees contribution realized by him or any other dues recoverable from licensee under the Employees Provident Fund Act, 1952 or the Employees State Insurance Act, 1948 in respect of persons employed in connection with the water-works. (7) The liability of the licensee towards the State Government or the State Electricity Board or towards his employees, as the case may be, to the extent of deductions made under sub-section (7) shall use stand discharged. Upon any such deduction being made the Municipal Board shall to that extent be liable to make payment to the State Government, the State Electricity Board or the workmen, as the case may be. (8) Where the gross amount payable to the licensee is equal to or less than the amount to be deducted under this section no payment shall be made to the licensee by the Municipal Municipality. (9) The amount, if any, payable by the Municipality to the licensee shall be as determined by the Special Officer under subsections (5), (6), (8) and nothing in section 324 shall be construed to apply in relation to the determination of the amount, payable by the Municipality under this section. Table of depreciation based on the period of life expectancy of various assets There shall be deducted for each year in respect of fixed assets employed in the licensee’s undertaking such an amount as would, if set aside annually throughout the period specified in the following table and accumulated at compound interest at four per cent annum, produce at the end of the said period an amount equal to ninety per cent of the original cost of the asset after taking into account the sums already written off or set aside in the books of the licensee :- Column 1 Column 2 Description of assetNumber of years or periodA. Land owned under full title. Infinite. B. Land held under lease.The period of the lease or the period remaining unexpired on the assignment of the lease.C. Assets purchased now —(a) Building and Civil Engineering works of a permanent character not mentioned above :—(i) Offices Fifty (ii) Temporary erections, such as wooden structuresFive (iii) Roads other than Kuchacha Roads One hundred (iv) OthersFifty (b) Self-propelled vehiclesSeven(c) (i) Office future and fittings.(ii) Office equipmentTwentyTen D. Assets purchased second hand and assets not otherwise provided for in this table. Such reasonable period as the Special Officer determines in each case having regard to the nature, age and condition of the asset at the time of its acquisition by it. ]

1[224-C. (1) Where the licence of a licensee is revoked under section 224-B as it stood immediately before the commencement of the U. P. Municipalities (Amendment) Act, 1975, or where such licence stands revoked by virtue of the new section 224-B as substituted by the said Act, all the property pertaining to the waterworks (namely, all existing water supply services, including all plants, machinery, waterworks, pumping sets, filter beds, water mains and pipes laid down along, over or under any public street, and all buildings and other works, materials, stores and things appurtenant thereto) belonging to or vested in the licensee immediately before the date of revocation of the license (hereinafter in this section referred to as the said date) shall as from the said date vest in and stand transferred to the Municipality free from any debt, mortgage or similar obligation of the licensee attached to such property : Provided that any such debt. mortgage or similar obligation shall attach to the amount referred to in sub-section (2) in substitution for such property. (2) Where any property belonging to the licensee vests in the Municipality under sub-section (1), not being waterworks of which only the management was transferred to him by the Municipality under clause (d) of section 224, the Municipality shall pay to such licensee an amount determined as hereinafter provided in this section : Provided that the licensee shall, in addition to the said amount, be paid interest thereon on the Reserve Bank are ruling on the said date plus one percentum for the period from the said date to the date of payment of the said amount. (3) The State Government shall appoint, by order in writing a person having adequate knowledge and experience in matters relating to accounts to be Special Officer to assess any amount payable under this section to the licensee after making the deductions mentioned in this section. (4) (a) The Special Officer may call for the assistance of such officers and staff of the State Government in the Local Self-Government Engineering Department or of the licensee as he may deem fit for assessing the net amount payable. (b) The Special Officer shall have the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908, when trying a suit, in respect of the following matters :- (i) enforcing the attendance of any person and examining him on oath ; (ii) compelling the production of documents ; and (iii) issuing commissions for the examination of witnesses. The Special Officer shall also have such further powers as may be specified by the State Government by notification in the Gazette. (5) The gross amount payable to such licensee shall be the aggregate value of the amounts specified below - (i) the book value of all completed works in beneficial use pertaining to the waterworks and taken over by the Municipality (excluding works paid for by the consumers), less depreciation calculated in accordance with the Table appended to this section ; (ii) the book value of works in progress taken over, excluding works paid for by the consumers or prospective consumers ; (iii) the book value of all stores, including spare parts taken over, and in the case of used stores and spare parts, if taken over, such sum as may be decided upon by the Special Officer ; (iv) the book value of all other fixed assets in use on the said date and taken over, less depreciation calculated in accordance with the said Table ; (v) the book value of all plants and equipments existing on the said date, if taken over, but no longer in use owing to wear and tear or to obsolescence, to the extent such value has not been written off in accordance with the said Table ; Explanation- The book value of any fixed asset means its original cost, and shall comprise - (i) the purchase price paid by the licensee for the asset, including the cost of delivery and all charges property incurred in erecting and bringing the asset into beneficial use, as shown in the books of the licensee ; (ii) the cost of supervision actually incurred, but not exceeding fifteen per cent of the amount referred to in paragraph (i) : Provided that before deciding the amount under this subsection, the licensee shall be given an opportunity by the Special Officer of being heard, after giving him a notice of at least 15 days therefor. (6) The Municipality shall be entitled to deduct the following sums from the gross amount payable under sub-section (5) to the licensee - (a) all amounts and arrears of interest, if any, thereon, due from the licensee to the Municipality ; (b) all amounts and arrears of interest, if any, thereon, due to the State Government or the State Electricity Board ; (c) any amount of wages, bonus, gratuity, provident fund or other payments due to remaining unpaid on the said date to persons employed as workmen (within the meaning of the U. P. Industrial Disputes Act, 1947) in connection with the waterworks ; (d) any amount which licensee may have failed to pay in respect of either his contribution or the employees contribution realized by him or any other dues recoverable from licensee under the Employees Provident Fund Act, 1952 or the Employees State Insurance Act, 1948 in respect of persons employed in connection with the water-works. (7) The liability of the licensee towards the State Government or the State Electricity Board or towards his employees, as the case may be, to the extent of deductions made under sub-section (7) shall use stand discharged. Upon any such deduction being made the Municipal Board shall to that extent be liable to make payment to the State Government, the State Electricity Board or the workmen, as the case may be. (8) Where the gross amount payable to the licensee is equal to or less than the amount to be deducted under this section no payment shall be made to the licensee by the Municipal Municipality. (9) The amount, if any, payable by the Municipality to the licensee shall be as determined by the Special Officer under subsections (5), (6), (8) and nothing in section 324 shall be construed to apply in relation to the determination of the amount, payable by the Municipality under this section. <center class="font1">Table of depreciation based on the period of life expectancy of various assets </center> There shall be deducted for each year in respect of fixed assets employed in the licensee’s undertaking such an amount as would, if set aside annually throughout the period specified in the following table and accumulated at compound interest at four per cent annum, produce at the end of the said period an amount equal to ninety per cent of the original cost of the asset after taking into account the sums already written off or set aside in the books of the licensee :- <table style="margin-left: auto; margin-right: auto;border-collapse: collapse;"><tbody><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Column 1 </td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Column 2 </td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Description of asset</td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Number of years or period</td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">A. Land owned under full title. </td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Infinite. </td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">B. Land held under lease.</td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">The period of the lease or the period remaining unexpired on the assignment of the lease.</td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">C. Assets purchased now —</td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;"></td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">(a) Building and Civil Engineering works of a permanent character not mentioned above :—</td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;"></td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">(i) Offices </td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Fifty </td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">(ii) Temporary erections, such as wooden structures</td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Five </td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">(iii) Roads other than Kuchacha Roads </td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">One hundred </td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">(iv) Others</td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Fifty </td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">(b) Self-propelled vehicles</td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Seven</td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">(c) (i) Office future and fittings. (ii) Office equipment</td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Twenty Ten </td></tr><tr><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">D. Assets purchased second hand and assets not otherwise provided for in this table. </td><td style="border:1px solid black;height: 50px;text-align: left;vertical-align: top; min-width: 100px; padding: 10px;">Such reasonable period as the Special Officer determines in each case having regard to the nature, age and condition of the asset at the time of its acquisition by it. ]</td></tr></tbody></table>

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