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Estimates by local authorities of their requirements.
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12.—(1) The Minister may at any time require any local authority to submit to him, in the prescribed form and manner and within a specified time, an estimate of the total quantity of a specified commodity which such local authority will require during a specified period for the purposes of their powers and duties.
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(2) Whenever the Minister requires under this section a local authority to furnish to him such estimate as is mentioned in the next preceding sub-section of this section, the following provisions shall have effect, that is to say:—
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(a) the prescribed officer of such local authority shall prepare such estimate as is so required by the Minister and shall submit such estimate to such local authority within such time as will enable such local authority to comply with the subsequent provisions of this sub-section;
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(b) such local authority shall consider the said estimate so submitted to them by such prescribed officer and shall approve of such estimate either (as they shall think proper) without alteration or with such alterations as they shall think proper;
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(c) such local authority shall submit such estimate as so approved of by them to the Minister within the time limited in that behalf by the said requisition of the Minister.
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(3) Whenever, after the submission under this section of an estimate by a local authority to the Minister in pursuance of a requisition made by the Minister under this section, the Minister appoints under this Act one official contractor for the supply to such local authority (whether alone or together with other local authorities) of the commodity to which such estimate relates during a period which coincides with or includes the period to which such estimate relates, and such appointment, in so far as it relates to the supply of such commodity to such local authority, is specifically made by the Minister and applied for by such official contractor on the basis of such estimate, the following provisions shall apply and have effect, that is to say:—
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(a) the Minister shall forthwith inform such local authority that such appointment was made and applied for on the said basis and that this sub-section and the next following sub-section of this section apply accordingly;
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(b) it shall be the duty of such local authority to order and take from such official contractor, under and in accordance with this Act, during the said period to which such estimate relates the quantity (in this section referred to as the estimated quantity) of such commodity stated in such estimate as the quantity thereof which would be required by such local authority during the said period.
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(4) Whenever, by virtue of the next preceding sub-section of this section, it is the duty of a local authority to order and take from a particular official contractor the estimated quantity of a commodity during a particular period, then and in such case—
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(a) if such local authority fails to order and take from such official contractor during the said period the estimated quantity of such commodity, it shall be lawful for such official contractor within the prescribed time after the expiration of the said period to deliver to such local authority so much of such commodity as will, with the amount (if any) thereof taken by such local authority during the said period, make up the estimated quantity of such commodity, and the amount of such commodity so delivered shall be deemed for all purposes to have been ordered by such local authority under this Act, and
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(b) if such local authority orders and takes from such official contractor during the said period a supply of such commodity exceeding the estimated quantity thereof, such official contractor shall (notwithstanding anything to the contrary contained in this Act) be entitled to charge and to be paid by such local authority, for so much of such commodity so ordered and taken as exceeds the estimated quantity of such commodity, a price exceeding the standard price by the prescribed percentage.
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(5) Where a local authority fails to submit to the Minister an estimate in accordance with a requisition in that behalf made by the Minister under this section to such local authority, and the Minister appoints under this Act one official contractor for the supply to such local authority of the commodity to which such requisition related during a period which coincides with or includes the period to which such requisition related, such official contractor shall (notwithstanding anything to the contrary contained in this Act) be entitled to charge and to be paid by such local authority for all supplies of such commodity ordered and taken from him by such local authority during the said period to which such requisition related a price exceeding the standard price by the prescribed percentage.
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