Section 170
Deczszon ofGovnnmell! on the vestl1lg of p1ofxrl)' to bcji1wl-Whcre any doubt or d1spute as to w hethcr any prope1 t y or asset has vested m the Authonty urder sectJ.JJl 16 or any nghts, liabilities or obhgatwns have become the rights, hab1hties and obligations of the Authonty under that section, such doubt or dispute shall be referred to the GovLrnment whose uceiSIO!l thereon shall Le final.
170 Deczszon ofGovnnmell! on the vestl1lg of p1ofxrl)' to bcji1wl-Whcre any doubt or d1spute as to w hethcr any prope1 t y or asset has vested m the Authonty urder sectJ.JJl 16 or any nghts, liabilities or obhgatwns have become the rights, hab1hties and obligations of the Authonty under that section, such doubt or dispute shall be referred to the GovLrnment whose uceiSIO!l thereon shall Le final.
I H 0 H 0 Vestzng -of ex!stuzg water supply and sewerage servzces wzde1 local bodzeso-( I) As from the date followmg the expiry of a penod of three years from the appointed day or such further penod as may be specified by the Government m this behalfby notification in the Gazettc,-
(a) all the wate1. 0 wpply and sewerage services, sewerage ami sewage farms includmg all the plants, maehmeries, pumpmg stations. distribution lmes and pubhc sewer<> m, along, over or under any puLIIc street <>nd alJ buildings, lands and works, matenals, and thmgs appertaining thereto;
(b) w much of the sub-sod appertainmg to the said UlstnLutiOn lmes and sew<>rs as mav be necessary for the purpose of enlarging, deepcnmg or otherwise 1epairmg or maintaming any such d1stnbuuon lines and sewers or any p10cs and other appliances and fittingl> connected with such water supply and sewerage services and <>ewe I works; and 0
(c) .til nghts, aud obligations mcludll1g the 11ght to recover arrears ol water charges, meter hire and of any cost or feu relatmg to water supply and sewerage services, which immediately b~fore t the above mentiOned date vested m any local body shall vest in and stard transferred to the Authority.
(2) The pt opcrtw'>; as!>ets, nghb, liabilities :md obligatwns ref en ed tu In !>u_b-section (I) sh,dl he valued in such manner as the Gowrnment may dctcimine. ·
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Wbere any doubt or dispute arises as to whether any property l'lf a~set has vested in the Authonty or anv right, ltahility or obligation ha11 become the p~ht, ·liability or oblu~ation o of the Authortty undrr tillS sccti~n, such doubt or dtspute shall be referred to the Government whose dccis1on thereon ~hall b be final and bmding on th,. Authority and till' loc;ll body concerned.
T ratZrfer of emplo)'ees to the Authonly --(I) Save as oth<·rwiM. provided in this sectton, every pqson who was (·mpl0yed Ill the Publi·: Health Engmeermg Department of the Government shall, on and from thr: dppointed day become an employee of the P uthority and ~hall hol<l hi' office or service therem by the 5ame tenure, at tlte same remuneration ami upon the same terms and conditions, and With the same r1ghts arul p1Ivdcges as to pension, gratuity and other mattf'rs as he would have hdd the same on the appointed day if this Act had no' come into fiJrce and shnll continue to do so until his employment m the Authonty i<. tcrmln,lted M until his remuneration or other rerms and conditions of service are revi1r:d or altered by the Authority under or in pursuance of any law <'I Ill accordance with any provision. which for the tnne being governs Ius servic~ : :
Provided that nothwg contained in tillS ~uh-section shall <ipply tn .111 nnployee m the cadres of the Admm1strat1ve Olf1cers, Fmallcial D1visional Accountants, Typists and Stenographers, who, by not1u: iu wntmg given to the Government and the !\uthonty withm such time <IS tlw Govemrnen t may, by general or speCial or de· , specify, intimates his intention of not becoming an employee of the Aut honty:
PI O\ 1ded further that an employee ref'!rrcd to m the preceding shall continue to be an employee under the Government and shall he provir ed elsewhere m any post or other service under the Government.
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The sums standin?; m the cred1t qf 1 he ·emplovees referred to in sub-section (1) in any pensiOn, prov1dent fund, gratmty or other like funds constituted for them sh'all be transferred by the Govcrmnent to the Aut honty along with any accumulated due till appointed day <1ncl with the relat,ng to such funds and the i\uthonty shall, to the excln!ion of the Government, be' hable for payment of peru.IOII, pr0vident fimd, gratuity or other like sums as may bC" payable to ~uch employees at the appropnate ume in accordance w1th rhc condit ons of their servicr.
C'llll,Lill· din thc· Industrial D·sputes Act, 1947 (Central Act 14 of l 1H7J, u· 111 ·Ill)' other l<1w for the tune being 10 Ioree, the tramler of service of an employee to the Authority unde1 uon (I) shall not entl' le any such to any compr:nsatwn llntltr that Act or such other law and no such cl.t·m shall he cntcrt,lined hy any court, lribunal or other autbonty:
(+) Everv perllldllent OI tcmpor:tJ \' f rnrloyee ofthr· l'llhlic llr-,tfl h Engi teermg Depa rtml'llt of the State Government unrlr·r sub-sectlol· (I 1 'hall on and from the appomted day, be a pcrmaucnt or tempor,uy · mployc<",
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as the case may be, of the Authority,, against a permanent or tcmporarv po~t w which shall stand created 1n the establishment of the Authority "'ith dfect on and from the appointed day.
An employee referred to in the first prov1so to ~t.ib-s~ction (I) shall b; deemed to have continued in the serv1ce of the Government betwee.l the appointed day and the date of relief from the establishment of the Authority· after receipt of his notice in wntmg addressed to the AuthOJ 11y referred to m that provJs" and the Authority shall be entitled to reimbursement from the Governmc;nt of the remuneration paid by It to such emplo)ee for such penod. ·
Nothmg in any rule, regullttons or order apphcable to Government servants in_ relatiOn to retrenchment or abolition of posts sha 11 applv to any employee referred to m sub-section ( l)
Notwithstanding anythin ~ con tamed in forgomg sub-sections the Authority shall be competent to take mch disdplinarv or other action as it thinks fit or to continue any such action already initiated agamst or in rt>~p~ct of any employee who becomcs an employee of the Authonty under sub-sect 1011 (I) 111 re·pect of any act or. omissiOn or conduct or 1 ecord of such employee whlle he was m the service of the Government.
Twnsjer ofemploJCeS of local bod1es to the Authonty.-(1) Save ..l.S otherwise provided in sectwn, an employee \\ ho was employed exrluSIVcly m connectiOn with water supply or sewerage serv1ce or !eweragc works under a local bodv proper1ies, assets, and water supply and sewerage services have been tramferred to the Authority under section 18 shall, on and from the dat< of transfer of such property and assets to the Authoritl', become an employee of the Authority. ·
Not>l"ithstanding anything con tamed in sub-section (I) but subject to any cxpl.f'SS agreement to the contrary, any employee to therein other than a workman as defined in the Industnal Disputes Act. I 947 (Central Act 14 of 1947}, who becomes an employee of the Auth01 ity shaH be lia'l:>le fo1 tranfer from any establi£hment or undertaking in wh1ch he was e·1ployed immedtately before the said date to any other or unde1taking belongwg to the Authonty at the remuner< tion and on the same terms and condtttons as were appiicable to them 1mrneoia:ely before such transfu.
Jf any question arises a~ to whether an~r perwn \~as'exclusively employed in connection with the water supply or sewerage services or sewerage w0rks under a lo<..al bod\' ill!mediately before the said date, such question sh;,ll be decided b) the Governmc_nt.
The sums stand1ng to the credit of the emplo)·ees 1 efcrred to 111 sub4sntion \I) many pcmion, provident fund, gratmty or other like funds constitlted for them shall be transferred by the local body concerned to the
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d \uthonty along w1th any ac .. ... u -~-- ,
umulated mterest due till the said date and with the accounts rclatmgto the said fund and the Authority shall, to the exdu~iou of the local body, be liable for payment of pens1011, provident fund, gr..ttuity or other like sums as may be payable to ~uch e employees at the appropriatt: y pypy
ttme Jrl accordance with the conditions of their serv1ce
Notwithstanding anythmg con~.uncd m the Indu<>tnal Disput~'l Act, 1947. (Central Act 14 of 1947), or 111 any othc1· law for the tune being m force, the transfer of services of an emplovcc to the Autho11ty undc1 ~ub (I) shall not entitle any such employee to .my compensatiOn under that Act or such other law and no such clann shi't II Jw entert.uncd by any court, ttibunal or other authority.
Every permanent or tempotary employee of a local body beconung an employee of the Auth011ty unde1 suh-sectwn , I I) ~hall, .m and trom the sa1d date, be a permanent or tempo rat y employee, a'! the case may, be, of the Authority, against a permanent 01 tcmpo1ary post wluch shall stand created in the establishment of the Aw honty with effect J rom the satd date . .
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{ 7) Nothing in any rule, regulat1ons or order appltcable t0 emplovces of the local bodies m relation to retrenchment or abolition of p post~ ~hall apply to any employee referred to m sub-sectwn (I).
Notwithstanding anything contained m the lotegoiu~ suosections, the Authority shall be competent. to take such disciplinary 01 othe1 a~tion a as 1t thinks fit or to contmue any such action already 1I!ittated agdimt or in respect of any employee who becomes an employee of the Authority under sub-sectiOn (I) m respect of any act or omtsswn or conduct or record of such employee while he was in the service of the local body . ..
CHAPTER IV
PROPERTY, CONTRACT, FINANCE, ACCOUNTS AND .:\UDIT
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2~. Executw1t and registration. of contracts etc.-Every contract for assurance of property on behalf of the Authonty shall be m writing and cxecutl'd by such officer and in such manner as may be provided by the regulations.
Funds'oj authorzty.-(1) The Authonty shall have Its own fimd to he called the "Kera1a Water Authonty Fund" wJuch shall be deemed to be a local fund and to which shall be credited all moneys received othc1 w wt~e than, by way of loanJ by or on behalf of the Authority.
The Authonty shall also have another fund to he C..ilblthe "Kerala Water Authority's Loan Fund" wh1ch shall also be deemed to he a local fund and to which shall be credtted all moneys te.teived by 01 on behalf of the Authontv by way-of loans.
Without p1ejudice to the proviSions of sub-sections (I) and (~). the Authority may, With the previous approval of the Govenunent, constitute such other funds as may be necessary for the efficient performance of its functions under this Act.
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A moneys spec1 e m the f01 egomg prOVISIOns and fo1 ming part of the funds of the Authonty shall be deposited undet such detailed or Accounts as may be prCSCIJbed-
(a) into the Public Account of the Govetnment, or
(b) m the State Bank of Imha constituted under the State Ban1 of India Act, 1955 (Central Act 23 of 1955), or
(c) in a Substdiary Bank as dehned In ~ection 2 of .the State Bank of Ind1a (Subsidiary Banks) Act, 1959 (Central Act 38 of 1959); 01
(d) m, anv Natwnuliscd Bank commg w1tlun the scope of the B'l.nking Companies (Acquisition and Tiansfer of Unde1takings) Act, 1970 iliJ.f~a)_ A Act 5 of 1970) or the Banking Companies (Acquil!itlon :md Transfer 1Jiid,"-mgs) Act, 1980 (Central Act 40 of 1980);
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a 1 il, -1·~ount shall be operated upon by ~uch officet s of the Autho , C~ / /9-aurhorised by the Authonty and m such manner as may be pr 'J~
th Ce/Jtr. ity may mvest any sums not requucd lor immediate usc m sue Ci/.1'-or debentures as may be approved by. the Government. Cf ~ ~
Ger.eral pnnczples for the A Of)9.].,ce.-The Authority shall not, a'> far as practicable and after takin </_) 0,. ;my gr,;t;nts or subventions
Grants subventtons capztal contrzbut· to tlzc Authorti.J'.The Government may, alter duy/ by law of- the State Legislature, from time to time , subventions, capital contributions and advance loans to the A or the purposes of this Act on such terms and conditions as the Gove t may determme.
Power oj Authorzty to borrow.- (I) Notwithstanding anything contained in any law for the tim~ b being in Ioree under which any local body is constituted, the Authority shall With eff.:ct hom the date of its establishment be the only loc.1l ·authonty autl-tonsed to borrow any sum of mony for water supply and sewerage works.
Without prejudice tl the provisiOns of st:tb-secrion (1), the Authonty may, from time to time, with the previous sanction of the Government and subject to the provisions of this Act and to sucb conditions as the Government may, by general or special order, determme, borrow any sum required for the purposes of thts Act whether by the Issue of bonds or stock or otherwise or by makmg arrangement With Bank, other bodies of institutions approved by the Government in that behalf.
Stocks issued by she Authonty under this sect1on ~hall be i~sued, transferred, dealt with and redeemed in such manner as the Government may, by general or special order, direct.
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Depreczatzon Remve.-The Authority shall create a Deprc< 1 1lton Reserve! and mak..: annual provtsion therefor in accordance with such principles as rna' be prescribed.
Guarantn for Loans.-(!) Governm~nt m may guarantee the repayment of' any loan and payment of interest on all made ot transf<'l'l'ed to he Authonty for the purposes of this Act; ·
The Govcrnme:nt shall s? long as any such gua1antee is in fOJc<", lay before the State m every· year durmg the budget .t statement of the guarantees, if any, g1ven durmg the current finan<!i,ll yeat and up·to-date·account<; of the tot'll sum~, 1f any, which have hcen p'lld out of tile Consolidated Fund of the State by of any such or paid Into the sa1d Fund towards repayment of any mowys so p.11d out