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ELECTRICITY ACT, 1910
9 of 1910
An Act to amend the law relating to the supply and use of electrical energy whereas, it is expedient to amend the law relating to the supply and use of electrical energy ; It is hereby enacted as follows :
SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT
(1) This Act may be called the Indian Electricity Act, 1910.
2[(2) It extends to the whole of India 3[except the State of Jammu and Kashmir].]
(3) It shall come into force on such date4as the Central Government may, by notification in the official Gazette, direct in this behalf.
SECTION 02: DEFINITIONS
-In this Act expressions defined in the Indian Telegraph Act, 1885 (13 of 1885),5[or in the Electricity (Supply) Act, 1948 (54 of 1948), have the meanings assigned to them in either of those Acts], and unless there is anything repugnant in the subject or context,-
6[(a) "appropriate Government" means in relation to any works or electric installations belonging to, or under the control of, the Central Government or in relation to any mines, oil fields, railways, aerodromes, telegraphs, broadcasting stations and any works of defence, the Central Government, and in any other case, the State Government;]
(b) "area of supply" means the area within which alone a licensee is for the time being authorised by his licence to supply energy; 13[ (ba)"area of transmission" means the area within which a transmission licensee or any other person is for the time being authorised to transmit energy
(bb) "Central Commission" means the Central Electricity Regulatory Commission established under sub-section (1) of Section 3 of the Electricity Regulatory Commissions Act, 1998 (14 of 1998)
(bc)"Central Transmission Utility" means the utility notified by the Central Government under sub-section (1) of Section 27-A ]
7[(c) "consumer" means any person who is supplied with energy by a licensee or the
Government or by any other person engaged in the business of supplying energy to the public under this Act or any other law for the time being in force, and includes any person whose premises are for the time being connected for the purpose of receiving energy with the works of licensee, the Government or such other person, as the case may be;]
(d) "dally fine" means a fine for each day on which an offence is continued after conviction there for;
(e) "distributing main" means the portion of any main with which a service line is, or is intended to be, immediately connected;
8[(f) "electric supply-line" means a wire, conductor or other means used for conveying,
transmitting or distributing energy (whether by overhead line or underground cable), together with any casing, coating, covering, tube, pipe or insulator enclosing, surrounding or supporting the same or any part thereof, or any apparatus connected therewith for the purpose of so conveying, transmitting or distributing such energy and includes any support cross-arm, stay, strut or safety device erected or set up for that purpose;]
8[(g) "energy" means electrical energy-
(i) generated, transmitted or supplied for any purpose, or
(ii) used for any purpose except the transmission of a message;]
14[ (ga) "government company" shall have the meaning assigned to it in Section 617 of the Companies Act, 1956 (1of 1956);
(gb) "inter-State transmission system" means, any system for the conveyance of energy by means of a main transmission line from the territory of one State to another State and includes,-
(i) the conveyance of energy across the territory of an intervening State as well as conveyance within the State which is incidental to such inter-State transmission of energy;
(ii)the transmission of energy within the territory of a State on a system built, owned, operated, maintained or controlled by a Central Transmission Utility or by any person under the supervision and control of a Central Transmission Utility;
(gc) "intra-State transmission system" means any system for transmission of energy other than an inter-State transmission system; ]
(h) "licensee" means any person licensed under Pt. II to supply energy;
(i) "main" means any electric supply-line through which energy is, or is intended to be,
supplied 9[***] to the public;10[(ii) "overhead line" means an electric supply-line which is placed above ground and in the open air but does not include live rails of a traction system;]
(j) "prescribed" means prescribed by rules made under this Act;
(k) "public lamp" means an electric lamp used for the lighting of any street;
11[(l) "service-line" means any electric supply-line through which energy is, or is intended to be, supplied,9[***].
(i) to a single consumer either from a distributing main or immediately from the12[supplier's premises], or
(ii) from a distributing main to a group of consumers on the same premises or on adjoining premises supplied from the same point of the distributing main;]
15[ (la) "State Commission means the State Electricity Regulatory Commission established under sub-section (1) of Section 17 of the Electricity Regulatory Commissions Act, 1998 (14 of 1998);
(lb) "State Electricity Board" in relation to any State means the State Electricity Board, if any, constituted for that State under Section 5 of the Electricity (Supply) Act, 1948 (54 of 1948) and includes any Board which function in that State under Sections 6 and 7 of the said Act;
(lc) "State Transmission Utility" means the utility notified by the State Government under subsection (1) of Section 27-B; ]
11[(ll) "State Electricity Board" in relation to any State means the State Electricity Board, if any, constituted for that State under Sec. 5 of the Electricity (Supply) Act, 1948 (54 of
1948),and includes any Board which functions in that State under Sees. 6 and 7 of the said Act:]
(m) "street" includes any way, road, lane, square, court, alley, passage or open space, whether a thoroughfare or not, over which the public have a right of way, and also the roadway and footway over any public bridge or causeway: and 17[
(ma) "transmission license" means a license granted under Part II-A lo transmit energy;
(mb) "transmission licensee" means a person who holds a transmission license;
(mc) "transmit" means conveyance of energy by means of transmission lines and the
expression "transmission" shall be construed accordingly; 16[(n) "works" includes electric supply-line and any building, plant, machinery, apparatus and any other thing of whatever description required to supply energy to the public and to carry into effect the objects of a licence or sanction granted under this Act or any other law for the time being in force.]
SECTION 03: GRANT OF LICENCES
(1) The State Government may, on application made in the prescribed form and on payment of the prescribed fee (if any)18[grant after consulting the State Electricity Board, a licence to any person] to supply energy in any specified area, and also to lay down or place electric supply lines for the conveyance and transmission of energy,-
(a) where the energy to be supplied is to be generated outside such area, from a generating station situated outside such area to the boundary of such area, or
(b) where energy is to be conveyed or transmitted from any place in such area to any other place therein, across an intervening area not included herein, across such area.
(2) In respect of every such licence and the grant thereof the following provisions shall have effect, namely:
(a) any person applying for a licence under this Part shall publish a notice of his application in the prescribed manner and with the prescribed particulars, and the licence shall not be granted-
(i) until all objections received by the State Government with reference thereto have been considered by it : Provided that no objection shall be so considered unless it is received before the expiration of three months from the date of the first publication of such notice as aforesaid ; and
(ii) until, in the case of an application for a licence for an area including the whole or any part of any cantonment19[aerodrome], fortress, arsenal, dockyard or camp or of any building or place in the occupation of the Government for20[defence purposes], the
State Government has ascertained that there is no objection to the grant of the licence on the part of the 21[Central Government]:
(b) where an objection is received from any local authority concerned, the State Government shall, if in its opinion the objection is insufficient, record in writing and communicate to such local authority its reasons for such opinion ;
(c) no application for a licence under this Part shall be made by any local authority except in pursuance of a resolution passed at a meeting of such authority held after one month's previous notice of the same and of the purpose thereof has been given in the manner in which notices of meetings of such local authority are usually given;
(d) a licence under this Part-
(i) may prescribe such terms as to the limits within which, and the conditions under which, the supply of energy is to be compulsory or permissive, 22[***] and generally as to such matters as the State Government may think fit ; and
(ii) save in cases in which under Sec. 10-, Cl. (b), the provisions of 23[Secs. 5 and 6], or either of them, have been declared not to apply, every such licence shall declare whether any generating station to be used in connection with the under- taking shall or shall not form part of the undertaking for the purpose of purchase under 23[Sec. 5-orSec. 6-] ;
(e) the grant of a licence under this Part for any purpose shall not in any way hinder or restrict the grant of licence to another person within the same area of supply for a like purpose;
(f) the provisions contained in the Schedule shall be deemed to be incorporated with, and to form part of, every licence granted under this Part, save in so far as they are expressly added to, varied or excepted by the licence, and shall, subject to any such additions, variations or exceptions which the 24[State Government] is hereby empowered to make, apply to the undertaking authorised by the licence; Provided that where a licence is granted in accordance with the provisions of Cl. IX of the Schedule for the supply of energy of other licencees for distribution by them, then in so far as such licence relates to such supply, the provisions of Cls. IV, V, VI, VII, VIII and XII of the Schedule shall not be deemed to be incorporated with the licence.25[* * * *] STATE AMENDMENTS Gujarat.- Same as in Maharashtra, [Bombay Act 44 of 1951, read with Act 11 of 1960, Sec. 87.] Maharashtra.-In its application to the State of Maharashtra, in Sec. 3 after subsection
(1) insert the following : "(1-A) If the applicant under sub-section (1) is a local authority, the area specified in the licence may include any area outside the area for which such local authority is constituted : Provided that under the enactment constituting such local authority, such local authority is authorized to supply energy in such area." [Bombay Act 44 of 1951, Sec. 6 and Schedule (w.e.f. 27th November, 1951).] In Sec. 3 of the Indian Electricity Act. 1910 (IX of 1910), in its application to the State of Maharashtra hereinafter referred to as the principal Act),- ( 1 ) after sub-section ( 1 ), the following new sub-section shall be added and shall be deemed always to have been added, namely : "( 1 -AA) Every licence granted under sub-section ( 1 ) shall be published in the Government Gazette."(2) in sub-section (2), after Cl. (c). the following new clause shall be added and shall be deemed always to have been added, namely: "(cc) a licence under this Part shall commence on the date on which such licence is published in the Government Gazette”; And accordingly, the provisions of any rule made under the principal Act and for the time being in force or of any such licence which are inconsistent
with the provisions of Cl. (cc) of sub-section (2) of Sec. 3 of the principal Act shall be and shall be deemed always to have been repealed. (Maharashtra Act 52 of 1947, Sec. 2.1. Uttar Pradesh.-In its application to the State of Uttar Pradesh, in Sec. 3- (1) In sub-section (2), for Cl. (e). substitute the following : "(e) the grant of licence under this Part for any purpose shall not in any way bind or restrict- (i) the grant of licence to another person within the same area of supply for a like purpose ; or (ii) the supply of energy by the State Government or the State Electricity Board within the same area, where the State Government deems such supply necessary" in public interest"; (2) after sub-section (2), add the following: "(3 ) Where the supply of energy in any area by the State Electricity Board is deemed necessary under sub-clause (ii) of Cl. (e) of sub-section (2), the Board may, subject to any terms and conditions that may be laid down by the State Government, supply energy in that area not- withstanding anything to the contrary contained in this Act or the Electricity Supply Act, 1948." [U.P. Act. 30 of 1961, Sec. 2 (w.e.f 23-10-1961).
SECTION 04: REVOCATION OR AMENDMENT OF LICENCES
(1) The 26[State Government may, if in its opinion the public interest so requires 27[and after consulting the State Electricity Board], revoke a licence in any of the following cases, namely:
(a) where the licensee, in the opinion of the 26[State Government makes wilful and unreasonable prolonged default in doing anything required of him by or under this Act :
(b) where the licensee breaks any of the terms or conditions of his licence the breach of which is expressly declared by such licence to render it liable to revocation;
(c) where the licensee, fails, within the period fixed in this behalf by his licence or any longer period which the28[State Government] may substitute thereof by order under 29[Sec. 4-A-, sub-section (1)]. And before exercising any of the powers conferred on him thereby in relation to the execution of works,-
(i) to show, to the satisfaction of the 28[State Government], that he is in a position fully and efficiently to discharge the duties and obligations imposed on him by his licence, or
(ii) to make the deposit or furnish the security required by his licence;
(d)30[where in the opinion of the State Government the financial position of the licence is such that he is unable] fully and efficiently to discharge the duties and obligations imposed on him by his licence; 31[(e) where a licensee, in the opinion of the State Government, has made default in complying with any direction issued under Sec. 22-A-.]
32[(2) Where in its opinion the public interest so permits, the State Government may, on the application or with the consent of the licensee, and after consulting the State Electricity Board, and the Central Government where the Government is interested, and if the licensee is not a local authority, after consulting local authority, if any, concerned, revoke a licence as to the whole or any part of the area of supply upon such terms and conditions as it thinks fit.
(3) No licence shall be revoked under sub-section (1) unless the State Government has given to the licensee not less than three months' notice, in writing stating the grounds on which it is proposed to revoke the licence and has considered any cause shown by the licensee within the period of that notice, against the proposed revocation.
(4) Where the State Government might under sub-section ( 1 ) revoke a licence it may instead of revoking the licence permit it to remain in force subject to such further terms and conditions as it thinks fit to impose and any further terms or conditions so imposed shall be binding upon, and be observed by, the licensee, and shall be of like force and effect as if they were contained in the licence.]
STATE AMENDMENT
Uttar Pradesh.--(i) For sub-section (2), substitute the following : "(2) Where the State Government might, under sub-section (1) revoke a licence, it may, instead of revoking the licence- (i) permit it to remain in force subject to further terms and conditions as it thinks fit to impose, and any further terms or conditions so imposed
shall be binding upon, and be observed by the licensee, and shall be of like force and effect as if they were contained in Revocation or amendment of licences Page 2 of 2
the licence, or(ii) issue any direction for the execution of the work by the licensee or by any other person for, on behalf and at the cost of the licensee and any such direction shall be binding upon the licensee and be complied by him." (ii) After sub-section (2), add the following as a new sub-section (2-A): "(2-A) Any expenditure incurred by such other person in execution of any work under and in pursuance of the directions issued under Cl. (ii) of sub-section (2) shall be realizable from the licensee as an arrear of land revenue". [U.P. Act 29 of 1956, Sec. 3 (w.e.f. 30th September, 1956]."
SECTION 04A: AMENDMENT OF LICENCES
(1) Where in its opinion the public interest so permits, the State Government, on the
application, of the licensee or otherwise and, after consulting the State Electricity Board, and if the licensee is not a local authority, also the local authority, if any, concerned, may make such alterations and amendments in the terms and conditions of a licence, including the provisions specified in Sec. 3, sub- section (2), Cl. (f), as it thinks fit : Provided that no such alterations or amendments shall be made except with the consent of the licensee unless such consent has, in the opinion of the State Government, been unreasonably withheld.
2) Where the licensee has made an application under sub-section (1) proposing any alterations or amendments in his licence, the following provisions shall have effect, namely:
(a) the licensee shall publish a notice of the application in the prescribed manner and with the prescribed particulars ;
(b) the State Government shall not make any alterations or amendments until all objections received by it with reference to the application within three months from the date of the first publication of the notice have been considered ;
(c) in the case of an application proposing alterations or amendments in the area of supply comprising the whole or any part of any cantonment, aerodrome, fortress, arsenal, dockyard or camp or of any building or place in the occupation of the Government for defence purposes, the State Government shall not make any alterations or amendments except with the consent of the Central Government.
(3) Before making any alterations or amendments in a licence other- wise than on the application of the licensee, the State Government shall publish the proposed alterations or amendments in the prescribed manner and with the prescribed particulars and consider all objections received by it with reference to the proposed alterations or amendments within three months from the date of the first publication of the notice, and where alterations or amendments have been proposed in an area of supply such as is referred to in Cl. (c) of subsection (2), the State Government shall not make any alterations or amendments except with the consent of the Central Government.]
SECTION 05: PROVISIONS WHERE LICENCE OF A LICENSEE IS REVOKED
(1) Where the State Government revokes, under Sec. 4-, sub-section (1), the licence of a licensee, the following provisions shall have effect, namely :
(a) the State Government shall serve a notice of revocation upon the licensee and shall fix a date on which the revocation shall take effect ; and on and with effect from that date, or on and with effect from the date, if earlier, on which the undertaking of the licensee is sold to a purchaser in pursuance of any of the succeeding clauses or is delivered to a designated purchaser in pursuance of sub-section (3) all the powers and liabilities of the licensee under this Act shall absolutely cease and determine ;
(b) the State Government shall enquire from the State Electricity Board, and where the licensee is not a local authority, also from any local authority constituted for the area within which the whole of the area of supply is included, whether it is willing to purchase the undertaking:
(c) if the State Electricity Board is willing to purchase the undertaking, the State Government shall, by notice in writing, require the licensee to sell, and thereupon, the licensee shall sell the undertaking to the State Electricity Board :
(d) if the State Electricity Board is not willing to purchase the undertaking, the State Government shall have the option of purchasing the undertaking and if it elects to purchase, it shall by notice in writing require the licensee to sell, and thereupon the licensee shall sell the undertaking to it;
(e) if the State Electricity Board it not willing to purchase the undertaking and the State Government does not itself elect to purchase it, the State Government in any case where the local authority referred to in Cl. (b) is willing to purchase the undertaking shall by notice in writing require the licensee to sell and thereupon the licensee shall sell the undertaking to that local authority;
(f) if no sale of the undertaking is effected under any of the foregoing clauses and if any other person is willing to purchase the undertaking, the State Government may by notices in writing require the licensee to sell, and thereupon the licensee shall sell the under- taking to such other person.
(2) Where an undertaking is sold under sub-section ( 1 ) the purchaser shall pay to the licensee the purchase price of the undertaking determined in accordance with the provisions of subsections (1) and (2) of Sec. 7-A-, or as the case may be, sub-section (3) of that section.
(3) Where the State Government issues any notice under sub-section (1) requiring the licensee to sell the undertaking, it may by such notice require the licensee to deliver, and thereupon the licensee shall deliver on a date specified in the notice the undertaking to the designated purchaser pending the determination and payment of the purchase price of the undertaking: Provided that in any such case, the purchaser shall pay to the licensee, interest at the Reserve Bank rate ruling at the time of delivery of the undertaking plus one per centum, on the purchase price of the undertaking for the period from the date of delivery of the undertaking to the date of payment of the purchase price.
(4) Where before the date fixed in the notice issued under Cl. (a) of sub-section ( 1 ) as the date on which revocation of the licence shall take effect, no notice has been issued to the licensee requiring him to sell the undertaking or where for any reason no sale of the undertaking has been effected under that sub-section, the licensee shall have the option of disposing of all lands, buildings, works, materials and plant belonging to the undertaking in such manner as he may think fit : Provided that if the licensee does not exercise such option within a period of six months from the aforesaid date. the State Government may forthwith cause the works of the licensee in, under, over, along, or across any street to be removed and every such street to be reinstated, and recover the cost of such removal and reinstatement from the licensee.
STATE AMENDMENTS
Assam.- In Sec. 5 of the principal Act. in sub-section (2)- (i) for the words "the purchase price of the Undertaking", the words "an amount" shall be substituted; . (ii) the words, brackets, figures and punctuation marks, "or as the case may be, sub-section (3) of that section" shall be omitted. [Assam Act 9 of 1973 (w.e.f. 27th September, 1972).] To Cl. (a) of Sec. 5 of the said Act. the following proviso shall be inserted namely: "Provided that where the undertaking vests in the State Government under the provisions of Sec. 7-A, for the purposes of valuation the time of such vesting shall be deemed to be the time of purchase:" [Bihar Act 29 of 1950, Sec. 3 ]. For sub-sections (2) and (3) of Sec. 5 of the Indian Electricity Act, 1910 (Act IX of 1910) (hereinafter referred to as the said Act, the following subsections shall be substituted, namely : "(2) Where an undertaking is sold under sub-section (1), the purchaser shall pay to the licensee the amount payable for the undertaking determined in accordance with the provision of sub-sections (1) and (2) of Sec. 7-A. (3) Where the State Government issues any notice under sub- section ( 1 ) requiring the licensee to deliver on a date specified in the notice the undertaking to the designated purchaser pending the determination and payment of the amount payable for the undertaking: Provided that in any such case the purchaser shall pay to the licensee, interest at the Reserve Bank rate ruling at the time of delivery of the undertaking plus one per cent on the amount payable for the undertaking for the period from the date of delivery of the undertaking to the date of payment of the amount payable." [Biliar Ordinance 5 of 1974.] Gujarat.-In the principal Act, in Sec. 5, in sub-section (2), for the words, brackets, figures and letter "sub-sections (1) and (2) of Sec. 7-A or, as the case may be, sub-section (3) of that section", the words, brackets figures and letter "sub-sections (1), (2) and (3) of Sec. 7-A" shall be substituted [Vide-Gujarat Ordinance No. 3 of 1979.] Madhya Pradesh.- In Sec. 5 of the Indian Electricity Act, 1910 (IX of 1910), in its application to the State of Madhya Pradesh (hereinafter referred to as the principal Act), for sub-sections (2) and (3), the following sub-sections shall be substituted, namely :"(2) Where an undertaking is sold under sub-section (1), the purchaser shall pay to the licensee an amount determined in accordance with the provisions of sub-sections (1) and (2) of Sec. 7-A. (3) Where the State Government issues any notice under sub- section (1) require the licensee to sell the undertaking it may by such notice requiring the licensee to deliver and thereupon the licensee shall deliver on a date specified in the notice the undertaking to the designated purchaser pending determination and payment of the amount to the licensee : Provided that in any such case, the purchaser shall pay to the licensee, interest at the Reserve Bank rate ruling at the time of delivery of the undertaking plus one per cent, on the amount payable to the licensee for the period from the date of the delivery of the undertaking to the date of payment of such amount." [Madhya Pradesh Act 19 of 1974, Sec. 2.1 The provisions of sub-sections (2) and (3) of Sec. 5, sub-section (7) of Sec. 6 and Sec. 7-A as substituted by Sees. 2, 3 and 4, respectively of this Act shall apply to all licensees in respect of their undertakings sold under Sec. 5 or Sec. 6 of the principal Act, and purchase price in respect whereof was not determined prior to the 2nd day of March, 1974. [Madhya Pradesh Act 19 of 1974, Sec. 5.] Maharashtra.-To Cl. (d) of Sec. 5 and sub-section (2) of Sec. 7 of the Indian Electricity
Act, 1910 (IX of 1910), hereinafter called the said Act in its application to the Province of Bombay, the following proviso shall be added, namely: "Provided that where the undertaking vests in the Provincial Government under the provisions of Sec. 7-A for the purposes of valuation, the time of such vesting shall be deemed to be the time of purchase". [Maharashtra Act 18 of 1946, Sec. 2.] In Sec. 5 of the Indian Electricity Act, 1910 (IX of 1910), in its application to the State of Maharashtra (hereinafter referred to as "the principal Act"),- (a) for sub-section (2), the following shall be substituted, namely: "(2) Where an undertaking is sold under sub-section ( 1 ), the purchaser shall pay to the licensee for the undertaking an amount determined in accordance with the provisions of
sub-sections (1) and (2) of Sec. 7-A" ; (b) in sub-section (3),- (i) for the words "payment of the purchase price of the undertaking," the words "payment of the amount for the undertaking" shall be substituted; (ii) in the proviso- (1) for the words "purchase price of the undertaking, " the words "amount for the undertaking" shall be substituted; and (2) for the words "payment of the purchase price", the words "payment of such amount" shall be substituted. [Maharashtra Act 44 of 1976. Sec. 2.] Uttar Pradesh.- In Sec. 5 of the Indian Electricity Act, 1910, as amended in its application to Uttar Pradesh (hereinafter referred to as the principal Act), for sub-sections (2) and (3), the following subsections shall be substituted, namely : "(2) Where an undertaking is sold under sub-section (1) the
purchaser shall pay to the licensee an amount determined in accordance with the provisions of Sec. 7 and Sec. 7-A, as substituted by the Indian Electricity (Uttar Pradesh Amendment and Validation) Act, 1975, excepting sub-section (3) of the said Sec. 7-A. (3) Where the State Government issues any notice under sub- section (1) requiring the licensee to sell the undertaking, it may by such notice require the licensee to deliver and thereupon the licensee shall deliver on a date specified in the notice of the undertaking to the designated purchaser or to such officer as the designated purchaser may appoint in that behalf pending determination and payment of the said amount to the licensee :
Provided that in any such case, the purchaser shall pay to the licensee, interest at the Reserve Bank rate ruling at the time of delivery of the undertaking plus one per cent., on the amount payable to the licensee for the period from the date of delivery of the undertaking to the date of payment of such amount." [U.P. Act 16 of 1975, Sec. 2.]
SECTION 06: PURCHASE OF UNDERTAKINGS
(1) Where a licence has been granted to any person, not being a local authority, the State
Electricity Board shall-
(a) in the case of a licence granted before the commencement of the Indian Electricity (Amendment) Act, 1959 (32 of 1959), on the expiration of each such period as is specified in the licence : and
(b) in the case of a licence granted on or after the commencement of the said Act, on the expiration of such period not exceeding 35[thirty] years and of every such subsequent period, not exceeding 35[twenty] years, as shall be specified in this behalf in the licence have the option of purchasing the undertaking and such option shall be exercised by the State Electricity Board serving upon the licensee a notice in writing of not less than one year requiring the licensee to sell the undertaking to it at the expiry of the relevant period referred to in this sub-section.
(2) Where a State Electricity Board has not been constituted, or if constituted, does not elect to purchase the undertaking, the State Government shall have the like option to be exercised in the like manner of purchasing the undertaking.
(3) Where neither the State Electricity Board nor the State Government elects to purchase the undertaking, any local authority constituted for an area within which the whole of the area of supply is included shall have the like option to be exercised in the like manner of purchasing the undertaking.
(4) If the State Electricity Board Intends to exercise the option of purchasing the undertaking under this section, it shall send an intimation in writing of such intention to the State Government at least eighteen months before the expiry of the relevant period referred to in sub-section (1) and if no such intimation as aforesaid is received by the State Government the State Electricity Board shall be deemed to have elected not to purchase the undertaking.
(5) If the State Government intends to exercise the option of purchasing the undertaking under this section, it shall send an intimation in writing of such intention to tlie local authority, if any, referred to in sub-section (3) at least fifteen months before the expiry of the relevant period referred to in sub-section (1) and if no such intimation as aforesaid is received by the local authority, the State Government shall be deemed to have elected not to purchase the undertaking.
(6) Where a notice exercising the option of purchasing the undertaking has been served upon the licensee under this section, the licensee shall deliver the undertaking to the State Electricity Board, the Government or the local authority, as the case may be, on the expiration of the relevant period referred to in sub-section (1) pending the determination and payment of the purchase price.
(7) Where an undertaking is purchased under this section, the purchaser shall pay to the licensee the purchase price determined in accordance with the provisions of sub-section (4) of Sec. 7-A-.
STATE AMENDMENTS
Assam.-In Sec. 6 (7) of the Act- (a) Substitute the words "an amount" for the words "the purchase price"; (b) Substitute the words, brackets, figures "sub-sections (1), (2) and (3)" for the words, brackets and figure "sub-section (4)" (Assam Act 9 of 1973, Sec. 3, enforced w.e.f. 27th September. 1972). Bihar.- For Sec. 6 of the said Act, the following section shall be substituted, namely: "6. Purchase of undertaking.-(1) Where a licence has been granted to any person, the State Electricity Board shall, on the expiration of the period for which the licence may be presently valid on the date the Indian Electricity (Bihar Amendment) Ordinance, 1974 comes into
force, or on the expiry of subsequent period, not exceeding three years, have the option of purchasing the undertaking and such option shall be exercised by the State Electricity Board serving upon licensee a notice in writing of not less than six months requiring the licensee to sell the undertaking on the expiry of the relevant period referred to in this sub-section. (2) If the State Electricity Board intends to exercise the option of purchasing the undertaking under this section, it shall send an intimation in writing of such intention to the State Government at least one year before the expiry of the relevant period referred to in sub-section (1) and if no such intimation as aforesaid is received by the State Government, the State Electricity Board shall be deemed to have elected not to purchase the undertaking. (3) Where the State Electricity Board has not elected to purchase the undertaking, the State Government shall have the like option to be exercised in the like manner of purchasing the undertaking. (4) Where a notice exercising the option of purchasing the undertaking has been served upon the licensee under this section, the licensee shall deliver the undertaking to the State Electricity Board or the State Government, as the case may be, on the expiration of the relevant period referred to in sub-section (1) pending the determination and payment of the amount referred to
in sub-section (5) of this section. (5) Where an undertaking is purchased under this section the purchaser shall pay to the licensee an amount determined in accordance with the provisions of subsections ( 1 ) and (2) of Sec. 7-A." [Bihar Ordinance 50 of 1974, Sec. 3.] In Sec. 6 of the Indian Electricity Act, 1910(9 of 1910), as substituted by the Indian Electricity (Bihar Amendment) Act, 1974 (Bihar Act 15 of 1975),- : (i) to sub-section (4), the following proviso shall be added, namely: "Provided that: (a) the State Electricity Board or the State Government, as the case may be, shall pay or tender payment of the amount referred to in sub-section (5) of this section as soon as the
amount has been determined, together with interest on such amount from the date of purchase to the date of payment or tender of payment as aforesaid at the rate of one per centum above the average of the Reserve Bank rates between the date of delivery of the undertaking and the dates of payment; (b) the receipt of the licensee shall, notwithstanding anything in any other law be a full and sufficient discharge to the State Electricity Board or the State Government as the case may be, for the payment of dues in respect of the purchase." (ii) after sub-section (5), the following sub-section shall be added, namely. "(6) Where a notice exercising the option of purchasing the undertaking has been served upon the licensee before the commencement of the Indian Electricity (Bihar Amendment) Act, 1974 (Bihar Act XV of 1975), and the undertaking has been purchased thereafter the amount payable to the licensee on account of the purchase of the undertaking shall be determined in accordance with the provisions of Sec. 7-A of the Indian Electricity Act, 1910 as substituted by the Indian Electricity (Bihar Amendment) Act, 1974 (Bihar Act 15 of 1975), as if the last-mentioned Act was then in force and it shall be deemed to have been always in force." [Vide Bihar Act 7 of 1956.]
Validation.-Notwithstanding anything contained in any judgment, decree or order of any Court, every delivery of an undertaking effected by a licensee to the Bihar State Electricity Board, the Government of Bihar or local authority, as the case may be, after the 2nd day of February, 1974 and before the commencement of this Act, shall be deemed to have been exercised or effected, as the case may be, under Sec. 6 of the Indian Electricity Act, 1910 (Act IX of 1910), as amended by Bihar Act XV of 1975 and this Act, as if the said Sec. 6 so amended was in force at all material times when the delivery was effected and accordingly every delivery of the undertaking so effected and all things
done or actions taken in consequence of such delivery of the undertaking shall be and shall be deemed always to have been valid and shall not be called in question in any Court or tribunal or before any authority merely on the ground that Sec. 6 of the Bihar Act XV of 1970, did not provide for payment of any Interest on the amount payable for the period from the date of delivery of the undertaking to the date or dates of its payment. Gujarat.- In Sec. 6 of the Indian Electricity Act. 1910 (in its application to the State of Gujarat) (hereinafter referred to as "the principal Act"),- (i) after sub-section (5), the following sub-section shall be inserted and shall be deemed to have been added with effect from the 1st day of May, 1960. namely : "(5-A) Where a notice exercising the option of purchasing the undertaking has been served upon the licensee under this section, the licensee shall deliver the undertaking to the State Electricity Board, the State Government or the local authority, as the case may be, on the expiration of the relevant period referred to in sub-section ( 1 ) pending the determination and payment of the purchase price; (ii) sub-section (6) shall be deleted and shall be deemed to have been deleted with effect from the 1st day of May, 1960. [Gujarat Act 18 of 1976, Sec. 2]. Validation.-Notwithstanding anything contained in any judgment, decree or order of any
Court, every option of purchase of an undertaking exercised by the Gujarat Electricity Board, the State Government or a local authority in the State of Gujarat by serving a notice upon a licensee under Sec. 6 of the principal Act and every delivery of an undertaking effected by a licensee to the Electricity Board, State Government or local authority, as the case may be, in pursuance of such notice, at any time after the 1st May, 1960 and before the commencement of this Act, shall be deemed to have been exercised or effected, as the case may be, under Sec. 6 of the principal Act as amended b
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