Sen, R. H. Dhebar, P. C. Kapoor, P. R. Ramasesh and R. Desai, for the appellants.
A. Shah and R. N. Sachthey, for respondent No.
Appeal by Special Leave from the judgment and order dated the 15th/16th October, 1973 of the Gujarat High Court in Spl.
S. Nariman, Addl.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The Judgment of the Court was delivered by MATHEW, J. The appellants filed a writ petition before the High Court of Gujarat challenging the validity of a numberice issued by the Gujarat State Electricity Board, respondent No.
Co. Ltd .
A companyparison of the original s. 7 with sections 6, 7 and 7A shows that the changes made by sections 6, 7 and 7A in the original s. 7 were six in number.
of India and N. M. Shroff, for respondent No.
Civil Apples.
The licence was signed on November 17, 1922 and the numberification granting it was published in the Bombay Government Gazette dated November 23, 1922 The licence was transferred to the ist appellant company viz.,
Soli J. Sorabjee, Ravinder Narain and K. John, for the intervener.
The High Court dismissed the petition and this appeal, by certificate, is against that judgment.
the Government of Gujarat issued a numberification under rule 115 2 of the Defence of India Rules taking over the management of the undertaking on November 18.1973.
Thereafter.
2 purported to exercise the option of purchasing the electrical undertaking of appellant No.
2, dated November 8, 1971, whereby respondent No.
2016 of 1973.
On December 21, 1973 of the State Government handed over the undertaking to the 2nd respondent.
The Amalgamated Elect.
The Government of the Province of Bombay granted a licence by numberification dated November 16, 1922, under S. 3 of the Act known as the Godhra Electric Licence, 1922 in favour of Lady Sulochana Chinubhai and Company, Ahmedabad.
The second respondent exercised the option to purchase the undertaking of the 1st appellant companypany by a numberice dated November 8, 1971, under s. 6 1 of the Act by calling upon the appellants to sell the undertaking to it on the midnight intervening between the 15th and 16th of November, 1972.
1752 of 1972.
1 under S. 6 of the Indian Electricity Act, 1910 hereinafter referred to as the Act and for a declaration that the provisions of sections 6, 7 and 7A of the Act are ultra vires Articles 14, 19 1 f , 19 1 g and 31 of the Constitution.
the Godhra Electricity Co. Ltd. The licence was for a period of 50 years initially from its companymencement.
The initial period of 50 years, according to the respondents, was to expire on the midnight intervening between the 15th and 16th November, 1972.
They were 1 the maximum length of the initial period to be specified in the licence for exercise of the option to purchase was originally fifty years whereas after the amendment, it was reduced to thirty years and the maximum length of subsequent periods was also reduced by the amendments from twenty years to ten years 2 the numberice of exercise of option was originally required to be of number less than two years but after the amendments, a numberice of number less than one year would be sufficient for exercising the option 3 the option to purchase under the old law vested in the Board but after the amendments it was also companyferred on the State Government and the local authority in case the Board did number elect to purchase, 4 the licensee companyld number be obliged under the old law to sell the undertaking to the purchaser except against payment of the purchase price but after the amendments, the licensee was bound to deliver the under taking to the purchaser on the expiration of the relevant period pending the determination and payment of the purchase price 5 there.
