THE UTTAR PRADESH MUNICIPALITIES (AMENDMENT) ACT, 1975
(U. P. Act no. 45 of 1975)
((For Statement of Objects and Reasons, please see Uttar Pradesh Gazette Extraordinary, dated July 30, 1975).
(Passed in Hindi by the Uttar Pradesh Legislative Council on July 29, 1975 and by the Uttar Pradesh Legislative Assembly on August 1, 1975).
(Received the Assent of the President on September 7, 1975, under Article 201 of the Constitution of India, and was published in the Uttar Pradesh Gazette Extraordinary, dated September 8, 1975).) [Authoritative English Text of the Uttar Pradesh Municipalities (Sanshodhan) Adhiniyam, 1975]
An Act further to amend the United Provinces Municipalities Act, 1916
It is hearby enacted in the Twenty-sixth Year of the Republic of India as follows
Short title and commencement.
1. (1) This Act may be called the Uttar Pradesh Municipalities (Amendment) Act, 1975.
(2) Section 3 shall be deemed to have come into force on January 1, 1975, and the remaining provisions of this Act shall be deemed to have come into force on June 13, 1975.
Substitution of new section for section 224-B of U.P. Act II of 1916.
2. For section 224-B of the United Provinces Municipalities Act, 1916, hereinafter referred to as the principal Act, the following section shall be substituted, namely
Revocation existing licences.
“224-B. Every licence granted under clause (c) of section 224 shall, if not already revoked, stand revoked with effect from June 13, 1975.”
Substitution of new section for section 224-C.
3. For section 224-C of the Principal Act, the following section shall be substituted, namely:-
“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 licence (hereinafter in this section referred to as ‘the said date’ shall as from the said date vest in and stand transferred to the Board 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 Board under sub-section (1), not being waterworks, of which only the management was transferred to him by the Board under clause (d) of section 224 the Board shall pay to such licensee an amount determined as herein I after provided in this section :
Provided that the licensee shall, in addition to the said amount, be paid interest thereon on the Reserve Bank rate 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 Board (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 properly 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 sub-section, 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 Board 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 Board;
(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 realised 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 waterworks.
(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 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 Board.
(9) The amount, if any, payable by the Board to the licensee shall be as determined by the Special Officer under sub-sections (5) , (6) , (8) and nothing in section 324 shall be construed to apply in relation to the determination of the amount payable by the Board 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 per 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 account the sums already written off or set aside in the books of the licensee:-
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Column 1
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Column 2
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Description of asset
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Number of years or period
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A.
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Land owned under full title.
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Infinite.
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B.
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Land held under lease.
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The period of the lease or the period remaining unexpired on the assignment of the lease.
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C.
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Assets purchased now:—
(a) Building and Civil Engineering works of a permanent character not mentioned above
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(i) Offices
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Fifty.
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(ii) Temporary erections, such as wooden structures.
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Five.
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(iii) Roads other than Kuchoha Roads.
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One hundred.
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(iv) Others
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Fifty.
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(b) Self-propelled vehicles
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Seven.
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(c) (i) Office furniture and fittings.
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Twenty.
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(ii) Office equipment
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Ten.
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D.
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Assets purchased second hand and assets not otherwise provided for in this table.
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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.”
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Repeal and savings
U. P. Ordinance no. of 1975
4. (1) The Uttar Pradesh Municipalities (Amendment) Ordinance, 1975, is hereby repealed.
(2) Notwithstanding such repeal anything done or any action taken under the principal Act as amended by the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of the principal Act as amended by this Act.
Dated Lucknow, September 9, 1986
IN pursuance of the provisions of clause (3) of Article 348 of the Constitution of India, the Governor is pleased to order the publication of the following English translation of the Uttar pradesh Nagarpalika (Sanshodhan) Adhiniyam, 1986 (Uttar Pradesh Adhiniyam Sankhya 18 of 1986) as passed by the Uttar Pradesh Legislature and assented to by the Governor on September 8, 1986.