63. Provisions for Power Corporation Limited, etc.—(1) The following bodies corporate
constituted for the existing State of Uttar Pradesh, namely:—
(a) the Uttar Pradesh Power Corporation Limited, the Uttar Pradesh Jal Vidyut Nigam Limited
and the Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited;
(b) the Uttar Pradesh Electricity Regulatory Commission; and
(c) the State Warehousing Corporation established under the Warehousing Corporations Act,
1962 (58 of 1962),
shall, on and from the appointed day, continue to function in those areas in respect of which they were
functioning immediately before that day, subject to the provisions of this section and to such directions as
may, from time to time, be issued by the Central Government.
(2) Any directions issued by the Central Government under sub-section (1) in respect of the Power
Corporation, Commission or Warehousing Corporation shall include a direction that the Act under which
the Power Corporation, Commission or Warehousing Corporation was constituted shall, in its application
to that Power Corporation, Commission or Warehousing Corporation, have effect subject to such
exceptions and modifications as the Central Government thinks fit.
(3) The Power Corporation, Commission or Warehousing Corporation referred to in sub-section (1)
shall cease to function as from, and shall be deemed to be dissolved on such date as the Central
Government may, by order, appoint; and upon such dissolution, its assets, rights and liabilities shall be
apportioned between the successor States of Uttar Pradesh and Uttaranchal in such manner as may be
agreed upon between them within one year of the dissolution of the Power Corporation, Commission or
Warehousing Corporation, as the case may be, or if no agreement is reached, in such manner as the
Central Government may, by order, determine:
Provided that any liabilities of any of the said Power Corporations referred to in clause (a) of
sub-section (1) relating to the unpaid dues of the coal supplied to the Power Corporation by any public
sector coal company shall be provisionally apportioned between the corresponding Power Corporations
constituted respectively in the successor States of the existing State of Uttar Pradesh or after the date
appointed for the dissolution of the Power Corporation under this sub-section in such manner as may be
agreed upon between the Governments of the successor States within one month of such dissolution or if
no agreement is reached, in such manner as the Central Government may by order determine subject to
reconciliation and finalisation of the liabilities which shall be completed within three months from the
date of such dissolution by the mutual agreement between the successor States or failing such agreement
by the direction of the Central Government:
Provided further that an interest at the rate of two per cent. higher than the cash credit interest shall be
paid on outstanding unpaid dues of the coal supplied to the Electricity Corporation by the public sector
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coal company till the liquidation of such dues by the concerned State Power Corporation constituted in
the successor States on or after the date appointed for the dissolution of the Power Corporation under this
sub-section.
(4) Nothing in the preceding provisions of this section shall be construed as preventing the
Government of the State of Uttar Pradesh or, as the case may be, the Government of the State of
Uttaranchal from constituting, at any time on or after the appointed day, a State Power Corporation, an
Electricity Regulatory Commission or a State Warehousing Corporation for the State under the provisions
of this Act relating to such Power Corporation, Commission or Warehousing Corporation; and if such a
Power Corporation, Commission or Warehousing Corporation is so constituted in either of the States
before the dissolution of the Power Corporation, Commission or Warehousing Corporation referred to in
sub-section (1),—
(a) provision may be made by order of the Central Government enabling the new Power
Corporation, new Commission or the new Warehousing Corporation to take over from the existing
Power Corporation, Commission or Warehousing Corporation all or any of its undertakings, assets,
rights and liabilities in that State, and
(b) upon the dissolution of the existing Power Corporation, Commission or Warehousing
Corporation,—
(i) any assets, rights and liabilities which would otherwise have passed to that State by or
under the provisions of sub-section (3) shall pass to the new Board, new Commission or the new
Warehousing Corporation instead of to that State;
(ii) any employee who would otherwise have been transferred to or re-employed by that State
under sub-section (3), read with clause (i) of sub-section (5), shall be transferred to or
re-employed by the new Power Corporation, new Commission or the new Warehousing
Corporation instead of to or by that State.
(5) An agreement entered into between the successor States under sub-section (3) and an order made
by the Central Government under that sub-section or under clause (a) of sub-section (4) may provide for
the transfer or re-employment of any employee of the Power Corporation, Commission or Warehousing
Corporation referred to in sub-section (1),—
(i) to or by the successor States, in the case of an agreement under sub-section (2) or an order
made under that sub-section;
(ii) to or by the new Power Corporation, new Commission or the new Warehousing Corporation
constituted under sub-section (4), in the case of an order made under clause (a) of that sub-section,
and, subject to the provisions of section 68, also for the terms and conditions of service applicable to such
employees after such transfer or re-employment.
64. Continuance of arrangements in regard to generation and supply of electric power and
supply of water.—If it appears to the Central Government that the arrangement in regard to the
generation or supply of electric power or the supply of water for any area or in regard to the execution of
any project for such generation or supply has been or is likely to be modified to the disadvantage of that
area by reason of the fact that it is, by virtue of the provisions of Part II, outside the State in which the
power stations and other installations for the generation and supply of such power, or the catchment area,
reservoirs and other works for the supply of water, as the case may be, are located, the Central
Government may, after consultation with the Government of each successor States wherever necessary,
give such directions as it deems proper to the State Government or other authority concerned for the
maintenance, so far as practicable, of the previous arrangement.
65. Provisions as to Uttar Pradesh State Financial Corporation.—(1) The Uttar Pradesh State
Financial Corporation established under the State Financial Corporations Act, 1951 (63 of 1951) shall, on
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and from the appointed day, continue to function in those areas in respect of which it was functioning
immediately before that day, subject to the provisions of this section and to such directions as may, from
time to time, be issued by the Central Government.
(2) Any directions issued by the Central Government under sub-section (1) in respect of the
Corporation may include a direction that the said Act, in its application to the Corporation, shall have
effect subject to such exceptions and modifications as may be specified in the direction.
(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the Board of Directors
of the Corporation may, with the previous approval of the Central Government and shall, if so required by
the Central Government, convene at any time after the appointed day a meeting for the consideration of a
scheme for the reconstitution or reorganisation or dissolution, as the case may be, of the Corporation,
including proposals regarding the formation of new Corporations, and the transfer thereto of the assets,
rights and liabilities of the existing Corporation, and if such a scheme is approved at the general meeting
by a resolution passed by a majority of the shareholders present and voting, the scheme shall be submitted
to the Central Government for its sanction.
(4) If the scheme is sanctioned by the Central Government either without modifications or with
modifications which are approved at a general meeting, the Central Government shall certify the scheme,
and upon such certification, the scheme shall, notwithstanding anything to the contrary contained in any
other law for the time being in force, be binding on the Corporations affected by the scheme as well as the
shareholders and creditors thereof.
(5) If the scheme is not so approved or sanctioned, the Central Government may refer the scheme to
such Judge of the High Court of Uttar Pradesh and Uttaranchal as may be nominated in this behalf by the
Chief Justice thereof, and the decision of the Judge in regard to the scheme shall be final and shall be
binding on the Corporations affected by the scheme as well as the shareholders and creditors thereof.
(6) Nothing in the preceding provisions of this section shall be construed as preventing the
Government of the States of Uttar Pradesh and Uttaranchal from constituting, at any time on or after the
appointed day, a State Financial Corporation for that State under the State Financial Corporations Act,
1951 (63 of 1951).
66. Provisions as to certain companies.—(1) Notwithstanding anything contained in the foregoing
provisions of this Part, each of the companies specified in the Ninth Schedule to this Act shall, on and
from the appointed day and until otherwise provided for in any law, or in any agreement among the
successor States, or in any direction issued by the Central Government, continue to function in the areas
in which it was functioning immediately before that day; and the Central Government may from time to
time issue such directions in relation to such functioning as it may deem fit, notwithstanding anything to
the contrary contained in the Companies Act, 1956 (1 of 1956), or in any other law.
(2) Any directions issued under sub-section (1) in respect of a company referred to in that sub-section,
may include directions—
(a) regarding the division of the interests and shares of existing State of Uttar Pradesh in the
Company among the successor States;
(b) requiring the reconstitution of the Board of Directors of the Company so as to give adequate
representation to all the successor States.
67. General provision as to statutory Corporations.—(1) Save as otherwise expressly provided by
the foregoing provisions of this Part, where any body corporate constituted under a Central Act, State Act
or Provincial Act for the existing State of Uttar Pradesh or any part thereof has, by virtue of the provisions
of Part II, become an inter-State body corporate, then, the body corporate shall, on and from the appointed
day, continue to function and operate in those areas in respect of which it was functioning and operating
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immediately before that day, subject to such directions as may from time to time be issued by the Central
Government, until other provision is made by law in respect of the said body corporate.
(2) Any directions issued by the Central Government under sub-section (1) in respect of any such
body corporate shall include a direction that any law by which the said body corporate is governed shall,
in its application to that body corporate, have effect subject to such exceptions and modifications as may
be specified in the direction.
68. Temporary provisions as to continuance of certain existing road transport permits.—(1)
Notwithstanding anything contained in section 89 of the Motor Vehicles Act, 1988 (59 of 1988), a permit
granted by the State Transport Authority of the existing State of Uttar Pradesh or any Regional Transport
Authority in that State shall, if such permit was, immediately before the appointed day, valid and effective
in any area in the transferred territory, be deemed to continue to be valid and effective in that area after
that day subject to the provisions of that Act as for the time being in force in that area; and it shall not be
necessary for any such permit to be countersigned by the State Transport Authority of Uttaranchal or any
Regional Transport Authority therein for the purpose of validating it for use in such area:
Provided that the Central Government may, after consultation with the successor State Government or
Governments concerned add to amend or vary the conditions attached to the permit by the Authority by
which the permit was granted.
(2) No tolls, entrance fees or other charges of a like nature shall be levied after the appointed day in
respect of any transport vehicle for its operations in any of the successor States under any such permit, if
such vehicle was, immediately before that day, exempt from the payment of any such toll, entrance fees
or other charges for its operations in the transferred territory:
Provided that the Central Government may, after consultation with the State Government or
Governments concerned, authorise the levy of any such toll, entrance fees or other charges, as the case
may be:
Provided further that the provisions of this sub-section shall not be applicable where any such tolls,
entrance fees or other charges of a like nature is leviable for the use of any road or bridge which is
constructed or developed for commercial purpose by the State Government, an undertaking of the State
Government, a joint undertaking in which the State Government is a shareholder or a private sector.
69. Special provisions relating to retrenchment compensation in certain cases.—Where on
account of the reorganisation of the existing State of Uttar Pradesh under this Act, any body corporate
constituted under a Central Act, State Act or Provincial Act, any co-operative society registered under any
law relating to co-operative societies or any commercial or industrial undertaking of that State is
reconstituted or reorganised in any manner whatsoever or is amalgamated with any other body corporate,
co-operative society or undertaking, or is dissolved, and in consequence of such reconstitution,
reorganisation, amalgamation or dissolution, any workman employed by such body corporate or in any
such co-operative society or undertaking, is transferred to, or re-employed by, any other body corporate,
or in any other co-operative society or undertaking, then, notwithstanding anything contained in
section 25F or section 25FF or section 25FFF of the Industrial Disputes Act, 1947 (14 of 1947), such
transfer or re-employment shall not entitle him to any compensation under that section:
Provided that—
(a) the terms and conditions of service applicable to the workman after such transfer or
re-employment are not less favourable to the workman than those applicable to him immediately
before the transfer or re-employment;
(b) the employer in relation to the body corporate, the co-operative society or the undertaking
where the workman transferred or re-employed is, by agreement or otherwise, legally liable to pay to
the workman, in the event of his retrenchment, compensation under section 25F or section 25FF or
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section 25FFF of the Industrial Disputes Act, 1947 (14 of 1947) on the basis that his service has been
continuous and has not been interrupted by the transfer or re-employment.
70. Special provision as to income-tax.—Where the assets, rights and liabilities of any body
corporate carrying on business are, under the provisions of this Part, transferred to any other bodies
corporate which after the transfer carry on the same business, the losses or profits or gains sustained by
the body corporate first-mentioned which, but for such transfer, would have been allowed to be carried
forward and set off in accordance with the provisions of Chapter VI of the Income-tax Act, 1961 (43 of
1961), shall be apportioned amongst the transferee bodies corporate in accordance with the rules to be
made by the Central Government in this behalf and, upon such apportionment, the share of loss allotted to
each transferee body corporate shall be dealt with in accordance with the provisions of Chapter VI of the
said Act, as if the transferee body corporate had itself sustained such loss in a business carried on by it in
the years in which these losses were sustained.
71. Continuance of facilities in certain State institutions.—(1) The Government of State of Uttar
Pradesh or Uttaranchal, as the case may be, shall, in respect of the institutions specified in the Tenth
Schedule to this Act, located in that State, continue to provide facilities to the people of the other State
which shall not, in any respect, be less favourable to such people than what were being provided to them
before the appointed day, for such period and upon such terms and conditions as may be agreed upon
between the two State Governments before the 1st day of December, 2001 or if no agreement is reached
by the said date as may be fixed by order of the Central Government,
(2) The Central Government may, at any time before the 1st day of December, 2001, by notification
in the Official Gazette, specify in the Tenth Schedule referred to in sub-section (1) any other institution
existing on the appointed day in the States of Uttar Pradesh and Uttaranchal and on the issue of such
notification, such Schedule shall be deemed to be amended by the inclusion of the said institution therein.