 the lndian electricity (amendment) bill, 1958(as introduced in iok sabha)  rhe indian electricity (amendmen1) bill, 1958 (as introduced in lok sabha) a billfurther to amend the indian electricity act, 1910 be it enacted by parliament in the ninth year of the republic of india as follows:-5 9 of 1910• i:j 1 this act may be called the indian electricity (amendment) short title act, 1958 z throughout the indian electricity act, 1910 (hereinafter substitution referred to as the principal act), unless otherwise expressly ~!on5 ~ri~ provided,-line" and tbiectric in-(i) for the words "aerial line" wherever they occur, the pector" bywords "overhead line" shall be substituted; and certain other exprenions (ii) for the words "electric inspector" wherever they occur, the words "electrical inspector" shall be substituted 3 in section 2 of the principal act,-amendment (i) for the words "have the meanings assigned to them in ~~ aec:uoa that act", the words, brackets and figures "or in the electricity (supply) act, 1948, have the meanings assigned to them in either of those acts" shall be substituted; (ii) for ctause (a), the following clause shall be substituted, namely:-20 - (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;'; (iii) for clause (c), the following clause shall be substituted, namely:-'(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 s 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 th~ works of a licensee, the government or such other person, as the case may bej'j 10 (iv> for clause (f>, the following clause shall be substituted, ilamely:-'(f) "electric supply-line" means e wire, conductor or other means used for conveying, transmitting or distributing energy (whether by overhead line or underground cable), 15 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 20 or safety device erected or set up for that purposej , j (v) in clause (i), the words "by a licensee" shall be omitted; (vi) after clause (i), the following clause shall be insert~d, ilameiy:-'(ii) "overhead line" means an electric supply-line whil!h 25 is placed above ground and in the open air but does not include live rails of a traction system;'; (vii) in clause (1), the words "bye licensee" shall be omitted and in sub-clause (i), for the words "licensee's premises", the words "supplier's premises" shall be substituted; 3r (viii) after clause (1), the following clause shall be inserted, namely:-'(ll) "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; , ; 35 s4 of 1948 (ix) for clause (n), the following clause shall be substituted, ,namely:-'(n) "works" includes electric supply-line and any building, plant, machinery, apparatw: and any other thing of whatever description required to supply energy to the public and 4) to carry into effect the objects of a license or sanction granted under this act or any other law for the time being in force'  t in section 3 of the principal act,-amendment of section :3 (i) in sub-section (1), after the words "prescribed form", the words "ond after consulting the state electricity board" shall be inserted; (ii) in sub-section (2)-(a) in clause (a), in item (ii)-10 (i) after the word "cantonment,", the word "aerodrome," shall be inserted; (ii) for the words "naval or military purposes", the words "defence purposes" and for the words "engineerin-chief, army headquarters, india", the words "central government" shall respectively be substituted; (b) in clause (d) ,-(i) in item (i), the words "and as to the limits of price to be charged in respect of the supply of energy," shall be omitted; 20 (ii) in item (ii) , for the words and figures "sections 5 and 7", the words and figures "sections 5 and 6" and for the words and figures "section 5 or section 7", the words and figures "section 5 or section 6" shall be substituted 5 in ~tion 4 of the principal act,-(i) in sub-section (1)-amendmenl of section 4· (a) after the words "so requires", the words "and after consulting the state electricity board" shall be inserted; 35 (b) in clause (c), for the words, brackets, figure and letter "sub-section (3), clause (b)", the words, figures, letter and brackets "section 4a, sub-section (1)" shall be substituted; (c) in clause (d), for the words "where the licensee is, in the opinion of the state government, unable, by reason of his insolvency", the words "where in the opinion of the state government the financial position of the licensee is such that he is unable" shall be substituted; (d) after clause (d), the following clause shell be inserted, namely:-"(e) where a licensee, in the opinion of the state government, has made default in complying with any direction issued under section 22a"; (ii) for sub-sections (2) and (3), the following sub-sectiona shall be substituted, namely:-"(2) where in its opinion the public interest so permits the state government may, on the application or with ihe consent of the licensee, and after consulting the state 5 electricity board, and the central government where that government is interested, and if the licensee is not a local authority, after consulting also the local authority if any, concerned, revoke a license as to the whole or any part of the area of supply upon such terms and conditions as it thinks 10 fit (3) no license shall be revoked under sub-section (1) unless the state government has gi¥en to the licensee not less than three months' notice, in writing, stating the grounds on which it is proposed to revoke the license and has collii- is dered 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 license it may instead of revoking the license permit it to remain in force subject to such further 20 terms and conditions as it thinks fit to impose and any further terms or conditions so imposed shall be binding lipon, and be observed by, the licensee, and shall be of like force ,and effect as if they were contained in the license" inaertion of 6 after section 4 of the principal act, the following section shall 2s n~ section be inserted, namely:-4a "4a (1) where in its opinion the public interest so permits, amendment of license the smte 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, 30 if any, concerned, may make such alterations and amendments in the terms and conditions of a license, including the pl'ovisions specified in section 3, sub-section (2), clause (f), as it thinks tit: provided that no such alterations or amendments shall be made except with the consent of the licensee unless such 35 consent has, in the opinion of the state government, been unreasonably withheld (2) where the licensee has made an application under sublection (1) proposing any alt~rations or amendments in his license, the following provisions shall have effect, namely:-40 (a) the licensee shall publish a notice of the appuca- tion in the prescribed manner and with the prescribed parttculars; (b) the state government shah 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; s 10 (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" 7 for sections 5, 6 and 7 of the principal act, the following sec- subsritutioe  11 b b' d i  of new sections sha e su sbtute , name y -rions for sections and 7 s 6 is "5 (1) where the state government revokes, under section provisions 20 4, sub-section (1), clause (c), the license of a licensee, the state :,h~~i=:: government shall serve a notice of revocation upon the licensee is revo·ked and on and with effect from the date on which such notice is served, all the powers and liabilities of the licensee under this act shall absolutely cease and determine (2) where the state government revokes, under any other provision of section 4, sub-section (1), the license of a licensee, the following provisions shall have effect, namely:-(a) the state government shall serve a notice of revoca-25 tion 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 30 purchaser in pursuance of sub-section (4), all the powers al'1d 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 autho-35 rity, 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 lilndertaking; (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; s (e) if the state electricity board is 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 clause (0) is willing to purchase the undertaking shall by notice in writing require 10 the licensee to sell and thereupon the licensee shall sell the undertaking to that local authority; (f> if no sale of the undertakina is eftected under any of the foregoing clauses and if any other person is willing to purchase the undertaking, the state government shall by is notice in writing require the licensee to sell, and thereupon the licensee shall sell the undertaking to such other person (3) where an undertaking is sold under sub-section (2), the purchaser shall pay to the licensee the purchase price of the undertaking determined in accordance with the provisions of sub- 20 section (1) and (2) of section 7a or as the case may be, subsection (3) of that section ,(4) where the state government issues any notice under subsection (2) requiring the licensee to sell the undertaking, it may by such notice require the licensee to deliver, and thereupon the 2s 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 (5) where before the date fixed in the notice issued under clause (a) of sub-section (2) as the date on which the revocation 30 of the license shall take effect, no notice has been issued to the licensee requiring him to sell the undertaking, 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: 35 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 40 removal and reinstatement from the licensee· 6 (1) where a license has been granted to any person, not being a local authority, the state electricity board sha11,-(a) in the case of a license granted before the commencement of the indian electricity (amendment) act, 1958, on the expiration of each such period as is specified in the license; and 10 20 2s 3s (b) in the case of q license granted on or after the commencement of the said act, on the expiration of such period not exceeding twenty years and of every such subsequent period, not exceeding ten years, as shall be specified in this behalf in the license; 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 boord 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 stete 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 eighteei! months before the expiry of the relevant period referred to in sub-section (1) and if no such intiii1qtion 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 the 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, 1114(b) ls-2 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 5 (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 section 7a vesting of the undertaking in the purchaser 7 where an undertaking is sold under sectiml 5 or section 6, 10 then upon the completion of the sale or on the date on which the undertaking is delivered to the intending purchaser under subsection (4) of section 5 or under sub-section (6) of section 6, as the case may be, whichever is earlier-determination 4)f purchase price (i) the undertaking shall vest in the purchaser or the is intending purchaser, as the case may be, free from any debt, mortgage or similar obligation of the licensee or attaching to the undertaking: provided that any such debt, mortgage or similar obligation shall attach to the purchase money in substitution for 20 the undertaking; (ii) the rights, powers, authorities, duties and obligations of the licensee under his license shall stand transferred to the purchaser or intending purchaser and such purchaser or intending purchaser shall be deemed to be the licensee: 25 provided that where the undertaking is sold or delivered to a state electricity board or the state government, the license shall cease to have further operation 7a (1) where an undertaking of a licensee, not being a local authority, is sold under sub-section (2) of section 5, the purchase 30 price of the undertaking shall be the fair market value of the undertaking at the time of purchase or where the undertaking has heen delivered before the purchase under sub-section (4) of that section, at the time of the delivery of the undertaking, reduced in either case by the value of contributions made by 35 consumers towards the cost of construction of service lines or other capital works; and if there is any difference or dispute regarding such purchase price the same shall be determined by arbitration (2) the fair market value of' an undertaking for the pur- 4q pose of sub-section (1) shall be deemed to be the value of all lands, buildings, works, materials and plant of the licensee suitable to, and used by him, for the purpose of the undertaking, o,thet ,ihan ii generating station declared by the license not to form part of the undertaking for the purpose of purchase, due regard being had to the nature and condition for the time being of such lands, buildings, works, materials and plant and the state of re-s pair thereof and to the circumstance that they are in such position as to be ready for immediate working and to the suitability of the same for the purpose of the undertaking, but without any addition in respect of compulsory purchase or of goodwill or of any profits which may be or might have been made from the 10 undertaking or of any similar consideration (3) where an undertaking of a licensee, being a local authority, is sold under sub-section (2) of section 5, the purchase price of the undertaking shall be such as the state government, having regard to the market value of the undertaking at the date of deu-i s very of the undertaking, may determine (4) where an undertaking of a licensee is purchased under section 6, the purchase price shall be the value thereof as determine(! in accordance with the provisions of sub-sections (1) and (2) : 20 provided that there shall be added to &uch value such percentage, if any, not exceeding twenty per centum of that value as may be specified in the license on account of compulsory purchase" 8 in section 8 of the principal act,-amcnd:ncnr , of section 8 25 (t) for the words, figures and brackets "section 7, sub-section (1), neither a local authority nor the state government purchases the undertaking", the words, figures and brackets "section 6, sub-section (1), the undertaking is not purchased by the state electricity board, the state government or the local 30 authority" shall be substituted; (ii) in the proviso, for the words, figure, qrackets and letter, "section 5, clause (f), proviso", the words, figures and brackets "section 5, sub-section (5), proviso" shall be substituted 9 in section 9 of the principal act, in 2ublsection (1), for the 3s words beginning with "notice of the application to every local au tho- atmcnd,ment " d di 'th'" d 0 section 9 nty an en ng wi or mten s to supply, energy", the following shall be substituted, namely:-"notice of the application-(a) to the state electricity board; and (b) to every local authority both in the licensee's area of supply and also in the area in which such other person supplies, or intends to supply energy" :rea::= 10 in section 10 of the principal act, for ,the words and figures 10 "sections 5,7 and 8", the words and figures "sections 5, 6 and 8" shall be substituted am f endmc!lt 11 in section 12 of the principal act, in sub-section (2), for the o aecuon d s u war s "owner and occupier", the words "owner or occupier" shall be substituted ameodment of aec:tiod 13· 12 in section 13 of the principal act, in sub-section (1),-- (i) in clause (a), after the words "not being a service line", the words "other than a service line in, under, over, along or 10 across a railway," shall be inserted; (ii) in clause (f), after the words "service line", the words "other than a service line in, under, over, along or across a railway," shall be inserted 13 in section 20 of the principal act,-amendment ef aec:tiou ao (i) in sub-section (1),-is (a) after the words "to which energy is or has been supplied by him", the words "or any premises or land, under, over, along, across, in or upon which the electric supply-lines or other works have been lawfully pieced by him" shall be inserted; 20 (b) in clause (a), for the words "inspecting and test- ingot, the words "inspecting, testing, repairing or altering" shall be substituted; (ii) in sub-section (2), for the words beginning with "the 2 district magistrate or" and ending with "belonging to the con- s su~er", the following shall be substituted, namely:-"a magistrate of the first class and after giving not less than twenty-four hours' notice in writing to the occupier-(a) enter any premises or land referred to in subsection (1) for any of the purposes mentioned therein; 30 (b) enter any premises to which energy is to be supplied by him, for the purpose of examining and "testing the electric wires, fittings, works and apparatus for the use of energy, belonging to the consumer" 14 in section 21 of the principal act,-35 amendment of lection 21 (i) in sub-section (1),-(a) after the words "save as provided", the words, brackets and figure "in any conditions made under sub-section (z) or" shall be inserted; (b) in the proviso, for the words "interfere with the supply by the licensee of energy to any other person", the following shall be substituted, namely:-"interfere with-5 (a) the safety or efficient working of a licensee's electric supply-lines or other works; or (b) the supply of energy by the licensee to any other person"; (ii) in sub-section (2) ,-10 (a) the words, bmckets and figure "subject to the provisions of sub-section (1)" shall be omitted; (b) after the words "after consulting", the words "the state electricity board and also" shall be inserted; 20 (iii) in sub-section (3), for the word "cancel", the words "add any new condition or cancel or otherwise amend" shall be substituted 15 after section 22 of the principal act, the following sections insertion of shah be inserted namely:-new s eetions , 22a and 228 "22a (1) the state government may, if in its opinion it powers of is necessary in the public interest so to do, direct any licensee ~~~~ ~v~; to supply, in preference to any other consumer, energy re- di~eetion gt,? quired by-- hcensee in regard to the liupply of (a) any establishment belonging to, or under the ~nergy to control of the central government or the state govern- certain class of consumera ment; or 35 (b) any other establishment notified by the state government in the official gazette, being an establishment which in the opinion of the state government, is essential to the life of the community (2) where any direction is issued under sub-section (1) requiring a licensee to supply e~ergy to any establishment and any difference or dispute arises as to the price or other terms and conditions relating to the supply of energy, the licensee shall not by reason only of such difference or dispute be entitled to refuse to supply energy but such difference or dispute shall be determined by arbitration (3) where any agreement by a licensee, whether made before or after the commencement of the indian electricity (amendment) act, 1958, for the supply of energy with any establishment referred to in sub-section (1) expires, the licensee sooll continue to supply energy to such establishment on the same terms and conditions as are specified in the agreement untn ne receives a notice in writing from the establishment requiring him to discontinue the supply (4) notwithstanding anything contained in this act, or in the electricity (supply) act, 19-f8, ,orm hisucense or in any agreement entered into by him for the supply of energy, a 5 licensee shall be bound to comply with any ~rectioq given to him under sub-section (1) and any action taken by him in pursuance of any such direction shall not be deemed to be a contravention of section 23 power to coi!-t rol the di stribution and consumption of energy 22b (1) if the state governtnent is of opinion that it is ,"0 necessary or expedient so to do, for maintaining the supply and securing the equitable distribution of energy, it may by order provide for regulating the distribution, supply, consumption or use thereof (2) without prejudice to the generality of the powers con- is ferred by sub-section (1) an order made thereunder may cij,rect the licensee not to comply, except with the permission of the state government, with-(i) the provisions of any contract, agreement or requisition whether made ~fore or after the commencement of 20 the indian electricity (amendment) act, 1958, for the supply i other than the resumption of a supply \ or an iocrease in the supply of energy to any person, or (ii) any requisition for the resumption of supply of energy to a consumer after a period of six months, from the 25 date of its discontinuance, or (iii) any requisition for the resumption of supply of energy made within six months of its discontinuance, where the requisitioning consumer was not himself the consumer of the supply at the time of its discontinuance" 30 amendment ef section 23· 16 in section 23 of the principal act, in sub-section (1), the words "but may, save as aforesaid, make such charges for the supply of energy as may be agreed upon, not ~xceeding the limits imposed by his license" shall be omitted amendment 17 in section 24 of the principal act, in sub-section (2), for the 35 of section 24 words "has been referred under this act to an electric inspector", the words "which by or under this act is required to be determined by an electrical inspector, has been referred to the inspector" shall by substituted amen~ment 18 in section 25 of the principal act, ,the words "101' ~be purpose 40 ofs~ctj()n 25 of supplying energy," shall be omitted 19 in section 26 of the principal aet,-amendment of section 010 (i) in sub-section (5), for the words beginning with "without giving" and ending with "his intention", the following shall be substituted, namely:-"but he may by giving not less than forty-eight hours' notice in writing to the licensee require the licensee to connect or disconnect such meter and on receipt of any such requisition the licensee shall comply with it within the period of the notime"; 10 (ii) for sub-section (6), the following sub-section shall be substituted, namely:-20 " (6) where any difference or dispute arises as to whether any meter referred to in sub-section (1) is or ilt not correct, the matter shall be decided, upon the application of either party, by an electrical inspector; and where the meter has, in the opinion of such inspector ceased to be correct, such inspector shall estimate the amount of the energy supplied to the consumer or the electrical quantity contained in the supply, during such time, not exceeding six mtmths, as the meter shall not, in the opinion of such inspector, have been correct; but save as aforesaid, the register of the meter shall, in the abscnc~ of fraud, be conclusive proof of such amount or quantity: provided that before either a licens('e or a consumer applies to the electrical inspector under this sub-section, he shall give to the other party not less than seven days' notice of his intention so to do" 10 in section 28 of the principal act,-amen:lment of sc<:tiod (i) for sub-section (1), the following sub-sections shall be 018 substituted, nemely:-35  (1) no person, other than a licensee shall engage in the business of supplying energy to the public except with the previous sanction of the state government and in accordance with such conditions as the state government may fix in this behalf, and any agreement to the contrary shall be void (la) the state government shall not give any sanction under 6ubsection (1)-(a) ejtcept after consulting the state electricity board; and (b) except with the consent-(i) in any case where energy is to be supplied in any area for which a local authority is constituted, of that local authority; (ii) in any case where energy is to be supplied s in any area forming 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, of the central government; 10 (iii) in any area falling within the area of supply of a licensee of that licensee: provided that except in a case falling under subclause (ii) , no such consent shall be necessary if the state government is satisfied that such consent has is been unreasonably withheld"; (ii) in sub-section (2), after the words "supplying energy", the words ''to the public" shall be inserted amendment 21 in section 29 of the principal act, in sub-section (1), after of section the words "supplying energy", the words "to the public" shall be 20 29· inserted amendment  mction 30• 22 in section 30 of the principal act, in sub-section (1), for the words, brackets, letters and figures beginning with "no person other - than a licensee" and ending with "as may be applicable", the following shall be substituted, namely:-2s "no person other than a licensee or a person to whom sanction is granted under section 28 duly authorised under the terms of his license or sanction, as the case may be, shall transmit or use energy at a rate exceeding two hundred and fifty watts and one hundred volts-30 (a) in ai)y street, or· (b) in any place,-(i) in which one hundred or more persons are likely ordinarily to be assembled, or (ii) which is a factory within the meaning of the 3s factories act, 1948, or a mine within the meaning of 63 of 1948 the mines act, 1952, or 35 of 1952 (iii) to which the state government, by general or speeial order, declares the provisions of this subsection to apply 5 without giving, before the commencement of transmission or use of energy, not less than seven days' notice in writing of his intention to the electrical inspector and to the district magistrate, or in a presidency-town to the commissioner of police, containing particulars of the electrical installation and plant, if any, the nature and the purpose of supply, and complying with such of the provisions of part iv, and of the rules made thereunder, as may be applicable" 10 23 in section 31 of the principal act,-amendment of iecdoa (i) after the word "railway," where it occurs for the first 31 time, the word "aerodrome," shall be inserted; (ii) after the word "railway," where it occurs for the second time, the word "airway," shall be inserted is 20 25 24 in section 33 of the principal act,-amendment of ~on (i) for sub-section (l), the following sub-section shall be 33 substituted, namely:-"(1) if any accident occurs in connection with the generation, transmission, supply or use of energy in or in connection with, any pert of the electric supply-lines or other works of any person and the accident results or is likely to have resulted in loss of human or animal life or in any injury to a human being or an animal, such person shall give notice of the occurrence and of any such loss or injury actually caused by the accident, in such form and within such time as may be prescribed, to the electrical inspector and to such other authorities as the appropriate government may by general or special order, direct"; (ii) in sub-section (2), for the words "the state government", the words "the appropriate government" shall be substituted; 35 (iii) after sub-section (2), the following sub-section shall be inserted, namely:-"(3) every electrical inspector or other person holding an inquiry under sub-section (2) shall have all the powers of a civil court under the code of civil procedure, 1908, for the purpose of enforcing the attendance of witnesses and compelling the production of documents and material objects; and every person required by an electrical inspector or such other person as aforesaid to furnish any inforrnation shall be deemed to he legally bound to do so within the meaning of section 176 of the indian penal code" 1114(b) ls--3 25 in section 34 of the principal act,-amendment of section 34 (i) for the words "state government" wherever they occur, the words "appropriate government" shall be substituted; (ii) in sub-section (2), for the words "the use of any electric supply-line", the words "the use of, and the supply of energy to,s any electric supply-line" shall be substituted 26 for !>cction :~ii (if the principal act, the following section shall be substituted, namely:-substitution of new section for ~ection 36 a intmenr g njectrical inspecton "3g (1) 'fhe appropl"illte government may, by notifi(~ation in the official gazette, appoint duly qualified persons to be etec- 10 trical inspectors and every electrical inspector so appointed shall exercise the powers and perform the functions of an electrical inspector under this act within such areas or in respect of such class of works and electric installations and subject to such restrictions as the appropriate government may direct is (2) in the absence of express provision to the contrary in this act, or any rule made thereunder, an appeal shall lie from the decision of an electrical inspector to the appropriate government or if the appropriate government, by general or special order so directs, to an advisory board" 20 amendment of section 36 a 27 in section 36a of the principal act,-(i) for sub-section (2), the following sub-section shall be substituted, namely:-"i (2) the central electricity board shall consist of twenty-five members, namely:-2s (a) a chairman and four other members to be nominated by the central government; (b) one member to be nominated by the gowrnments of each of the states, not being a union territory, to which this act extends; 30 (c) one member to be nominated by the central government to represent each of the union territories of delhi and himachal pradesh; (d) one member to be nominated by the central goyernment to represent the union territories of mani- 35 pur, tripura and the andamans and nicobar islands; (e) one member to be nominated by the central government to represent the federation of electricity undertakings of india; (f) one member to be nominated by the railway 40 "board; (g) one member to be nominated by the chief inspector of mines appointed under section 5 of the mines act, 1952; and 35 of j95 2• (h) one member to be nominated by the indian standards institution constituted under the indian standards institution (certification marks) act, 1952"; 36 of 1952 5 (ii) sub-section (6) shall be omitted 28 section 36b of the principal act shall be omitted omiuioo of section 36b 29 in section 37 of the principal act, in sub-section (3), for the amen~ent 10 woeds, brackets and letters "clause (f) or clause (h) ", the words, ~~ sec:uod brackets and letters "clauses (e) to (j) (both inclusive)" shall be substituted is 20 25 30 for section 42 of the principal act, the following section shall substitution be substituted namely:-of newaer-, tlon for section 42 "42 whoever-penalty for illegal or (a) being a licensee or a person who has obtained the defect i ive supp y or sanction of the state government under section 28 to engage for nonin the business of supplying energy to the public, save as ~°itt~:::: permitted under section 27 or section 51 or by his license or as the case may be, by the conditions of sanction, supplies energy or lays down or places any electric supply-line or works outside the area of supply; or (b) being a licensee or a person who has obtained the sanction of the state government as aforesaid, in contravention of the provisions of this act or of the rules thereunder, or in breach of the conditions of license or of the sanction, as the case may be, and without reasonable excuse, the burden of proving which shall lie on him, discontinues the supply of energy or fails to supply energy; or (c) makes default in complying with any of the provisions of an order or of any notice or requisition issued under section 5 or section 6; or (d) makes default in complying with any directions issued to him under section 2~a; or 35 (e) makes default in complying with any order issued to him under section 22b 'or sub-section (2) of section 34; shall be punishable with fine which may extend to one thousand rupees, and, in the oose of a continuing offence or default, with a daily fine which may extend to one hundred rupees" 31 in section 44 of the principal act,-~men\lmenl pf aectioll cu· 3 (i) in clause (a), the words ", without giving to the licensee forty-eight hours' notice in writing of his intention" shall be omitted; (ii) in clause (b), the words, "without such licensee's con- 5 sent" shall be omitted \mendment )f ,ection ,7 32 in section 47 of the principal act, after the words "conditions of his license", the words and figures "or in the case of a person who has obtained the sailction of the state government under section 28, with any of the conditions of the sanction" shall be inserted 10 {n,ertion of 33 after section 49 of the principal act, the following section lu' aecshall be inserted, namely:-ion 49a '49a (1) if the person committing an offence under this act )tren~ by is a company, every person who at the time the offence was com-:jmpiiwet mitted was in charge of, and was responsible to, the company for 15 the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that 20 the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence (2) n'otwithstanding anything contained in sub-section (1), where an offence under this act has been committed with the 25 consent or connivance of, or is attributable to any neglect on the part of, any director or manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly 30 explanation-for the purposes of this section,-(a) "company" means any body corporate and includes a fil'tl'l 01' other association of individuals; and (b) "director" in relation to a firm theans a partner in the firm '  3s amendment if section ,i 34 in section 51 of the principal act, for the words "appliances and apparatus for the transmission of energy, confer upon any public officer or licensee", the words "electric supply-lines, appliances and apparatus for the transmission of energy or for the purpose of telephonic or telegraphic communications necessary for the proper 40 co-ordtnation of works, confer upon any public officer, licensee or any other person engaged in the business of supplying energy to the public under this act" shall be substituted 35 after section 51 of the principal act, the following section shall inseniodot new section be inserted, namely:-51a 5 "51a where the state government engages in the business state  govof supplying energy to the public, it shall have all the powers hcrnmenr to ave power~ and obligations of a licensee under this act: and obliga-provided that nothing in seetions 3 to 11 (both inclusive), u~~;sc~f a section 21, sub-sections (2) and (3), sections 22 and 27 or in ander this io clauses i to v (both inclusive), clause vii and clauses ix to ct xii (both inclusive) of the schedule relating to the duties and obligations of a licensee shall apply to the state government: provided further that the provisions of clause vi of the schedule shall apply to the state government in respect of that 15 area only where distribution mains have been laid by the state government and the supply of energy through any of them has commenced"  16 to section 52 of the principal act, the following proviso shall amendment be added namely:-ofsectiod , ~ 20 "provided that where the government or a state electricity board is a party to a dispute, the dispute shall be referred to two ':lrbitrators, one to be appointed by each party to the dispute" 37 in section 54 of the principal act, for the words, figures, amendment brackets and letter "section 5, clause (f), section 6, sub-section (2) ", of aec:tiod 25 the words, figures and brackets "section 5, sub-section (5)" shall s4· 30 be substituted 38 section 56 of the principal act shall be re-numbered as sub- amendment section (1) thereof and after the sub-section as so re-numbered, the of section following sub-section shall be inserted, namely:-56 "(2) no court shall take cognizance of an offence under this act, by a public officer except with the sanction-(a) in the case of a person employed in connection with the affairs of the union, of the central government; and (b) in any other case, of the state government" 39 in the schedule to the principal act,-35 amendment of the schedule (a) in clause 1,-(i) in sub-clauses (a) and (b), for the words, figures brockets and letter "section 4, sub-section (3), clause (b) ", the words figures, letter and brackets "section 4a, subsection (1)" shall be substituted; (ii) in sub-clause (c), after the word "shall", the wortls "unless forfeited" shall be inserted; (b) in clause ii, in sub-clause (b), after the words "and information", the brackets and words" (including technical data and statements of energy generated and sold)" shall be inserted; (c) in clause iii, for the words "capital employed for the purposes of the undertaking", the words "undertaking relating 5 to the generation, supply or distribution of energy" shall be substituted; (d) in clause v,-(i) in sub-clause (1), for the words "six or more", the io words "two or more" shall be substituted; (ii) in sub-clause (1) (a) ,-(a) after the words "written contract", the words "in a form approved by the state government" shall be inserted; (b) for the words "produce annually, at the current 15 rates charged by the licensee, a reasonable return to the licensee", the words and brackets "assure to the licensee at the current rates charged by him, an annual revenue not exceeding fifteen per centum of the cost of the distributing mains (not including transformers and other sub- 20 station equipment) required to comply with the requisition" shall be substituted; (iii) for sub-clausg! (2), the following sub-clause shall be substituted, namely:-, " (2) where any difference or dispute arises between 2s the licensee and such owners or occupiers as to the sufficiency of the security offered under this clause, or as to the cost of the distributing mains or as to the amount of energy to be taken or iuaranteed as aforesaid, the matter shall be referred to the electrical inspector and decided 30 by him"; (e) in clause vi,-(i) in sub-clause (1), in the first proviso, in part (a), for the words "produce, at current rates charged by the licensee, a reasonable return to the licensee", the words "assure to the 3s licensee at the current rates charged by him, an annual revenue not exceeding fifteen per centum of the cost of the service line required to comply with the requisition" shall be substituted; (ii) in sub-clause (3), after the words "by any owner 40 or occupier", the words "or as tt> the position of the meter board" shall be inserted; <f) in clause vii, for the words "any five or more", 1 he words "any two or more" shall be substituted; (g) in clause viii, after sub-clause (2), the following subclause shall be inserted, namely:-5 10 "(3) where the state government or the local authority has complied with the provisions of sub-clauses (1) and (2), it may require the licensee to provide the mains and other equipments for public lamps and if any difference or dispute arises under this clause, it shall be determined by arbitration" ; (h) in clause ix,-(i) in sub-clause (1) (b), for the words "as will produce a reasonable return to the bulk-licensee on the outlay", the words "as will assure to the bulk-licensee an annual revels nue not exceeding fifteen per centum of the outlay" shall be substituted; (ii) sub-clause (1) (c) shall be omitted; (i) in clause x, in sub-clause (2), for the words and brackets "to the local authority (if any) concerned", the words and 20 brackets "to the state electricity board and the local authority (if any) concerned and to the electrical inspector" shall be substituted; (j) clauses xi and xia shall be omitted; (k) in clause xii, after the words "for the public: lamps", 25 the words "and other charges to be paid to him in connection therewith" shall be inserted; (l) in clause xiv, after the words "shall afford", the words "to an electrical inspector or other person authorised by such inspector" shall be inserted; 30 (m) in clause xv,-(i) for the words "electric inspector" where they occur for the first time, the words and brackets "electrical inspector or a person authorised by him in this behalf (hereinafter referred to as the authorised person)" shall be 35 substituted; (ii) for the words "electric inspector" wherever they occur elsewhere in the clause, the words "electrical inspector or the authorised person" shall' be substituted  statement of objects and reasonsthe bill is largely based on the recommendations of the advilory board appointed by the government of india ir 1953 to suggest amendments to the indian electricity act, 1910 (hereinafter referred to as the act) in making the~ recommendations, the board had, besides consulting the state governments, given careful consideration to the views of the private sector of th~ electricity supply industry 2 the main objects of the bill are:-(a) to enlarge the scope of facilities available to consumers of electricity; (b) to extend the same facilities to consumers served by a government electricity department, as are enjoyed by consumers of private licensees and state electricity boards; (c) to exercise stricter control over licensees; (d) to take powers to regulate the distribution, supply: consumption and use of energy in certain circumstances; and (e) to provide for the inspection of electric works and installations of the central government 3 with a view to making it easier for even scattered consumers to obtain the supply of electricity, the minimum number of persons entitled to get the mains extended to their premises at the licensee's cost is being reduced from six to two under the existing provisions of the act, the gross revenue to be guaranteed by a consumer before receiving the supply of electricity is not defini'te and varies from undertaking to undertaking such gross revenue is now being specified as 15 per cent of the cost of distribution mains (excluding the equipment in the sub-station) required for compliance with the requisition for supply of electricity this figure is based on the average revenue actually guaranteed by a large majority of consumers of electricity in the country 4 persons served by licensees or state electricity boards, are entitled to certain statutory rights and privileges in respect of extension of the distribution mains', requisitioning the supply of energy and meters, supply of energy for public lighting and freedom to use the energy in a prescribed manner although the government electricity departments generally extend similar facilities to their consumers, no statutory obligation is imposed upon them in this behalf it is accordingly proposed to give the same rights to consumers of a government electricity department as are enjoyed by those receiving supply from a state electricity board 5 control over licensees is being tightened by empowering the state government to forfeit the security deposit of a licensee on account of his failure to, complete within the period specified in the licence, compulsory works referred to in the schedule to the act inspectors appointed to investigate the causes of an electrical accident are being vested with powels of a civil court under the code of civil procedure, 1908, for the purpose of compelling attendance of witnesses and production of documents, etc 6 difficulty is often experienced on account of a licensee neglecting to supply energy promptly to essential services it is, there~ fore, proposed to empower state governments to direct a licensee to supply and to continue to maintain the supply of energy, to essential services within his area of supply any dispute with respect to the price or other tel'llls and conditions governing such supply shall be settled by arbitration with a view to maintaining the supply and equitable distribution of energy, the state governments are also being empowered to regulate the dis~ribution, liupply, consumption or use of energy 7 in view of the increasing share of the central government in the field of generation and utilisation of electricity, it has been found necessary, for ensuring the safety of life and property, to subject their installations in all fields, to inspection and tests, similar to those prescribed in the case of the installations in mines and railways it is, therefore, proposed to authorise the central government, to appoint inspectors with powers exercisable by electrical inspectors for mines and railways under the existing provisions of the act, in respect of all other electric installations under the control of the central government h mohd ibrahim new delhi; the 19th' august, 1958 1114(b) ls-4 clause 2-this clause makes certain formal amendments clause 3-this clause makes a few clarificatory amendments in certain existing definitions and adds a few new definitions clause 4-this clause provides that a state government while granting a licence under the act shall consult the state electricity board it further provides that where an aerodrome is included in the area of supply, the state government shall not grant a licence without ascertaining that the central government has no objection to the grant of such lieence the clause further brings the provisions of section 3 in line with those of paragraph i of the sixth schedule to the electricity (supply) act, 1948 clause 5-this clause provides that where a state government proposes to revoke a licence, it shall consult the state electricity board an additional ground for revocation of a licence would be non-compliance by the licensee with any directions issued under new section 22a the clause further provides for giving an opportunity to the licensee of being heard before his licence is cancelled clause 6-all the provisions relating to the amendment of a licence in the existing act are being made the subject matter of a separate section it is further being provided that before a licence is amended, the state government shall consult the state electricity board clause 7-this clause lays down the procedure to be followed in respect of revocation of a licence, purchase of an undertaking, the conditions on which the undertaking shall vest in the purchaser and the method of determination of the purchase price the existing law on this subject is not being changed except that the state electricity board would have the first option of purchasing the undertaking, the state government the secend option and the local authority which at present had the first option will have the third option clause b-this amendment is consequential on the amendments made by clause 7 clause 9-this clause provides that the state electricity soard shall be consulted before a licensee is permitted to purchase, m' usociat himjelf with, the undertakina of any other licensee or ~o transfer hia own undertaking clauie 1o-this amendment is consequential on the amendments made by clause 7 clause 11-l'his clause permits an occupier of premises, who is not the owner himself, to obtain supply of electricity without the conlent of the owner clause 12--this clause provides that in the case of erection of a service line in, under, over, along or acr08s a railway, the procedurelaid down in clauses (a) to (e) of sub-section (1) of section 13 shall be followed clause 13-this amendment enlarges the power of inspection of a licensee so as to enable him to inspect and test the electric supplylines not only in the premises of the consumers but also in certain other premises or land  clau,e h-this clause provides that the state government while approving the conditions of supply of a licensee shall consult the state electricity board it also makes certain other claribcatory amendments clatue i5-this clause adds certain new provisions in the act which empower the state govel'nment to give directions to a licensee in regard to iupply of energy to essential services and also to control the distribution and, consumption of energy clau3e 16-this amendment brings the provisions of section 23 in line with those of paragraph i of the sixth schedule to the electricity (supply) act, 1948 clause 17-this amendment is of a clarificatory nature clause 13-this clause provides that the procedure laid down in section 25 shall apply even w~1en the electric supply-lines are laid by a licensee for the purpose of utilising energy clause 19-this clause prohibits a consumer from connecting or cwconnecting a meter to the electric supply-line himself but makes it obligatory on the licensee to comply with the requisition of the consumer in this behalf it further provides for the reference of any dispute between a licensee and a consumer in regard t~ the alleged inaccuracy of meters, to an electrical inspector clauie 2ft-this clause makes it clear that the sanction of the ste government is ~uired only for engaetng in the business of supplying energy to the public it further provides that sanction for supplying energy cannot be given in an area forming part of cantonment, aerodrome, fortress or a place in occupation of the government for defence purposes except with the consent of the central government clause zl-the amendment made by this clause is clarificatory only clause zz-this clause deftnes the quantum of power for transmission or use of which, through any street, etc, by a person other than a licensee or a sanction holder, a notice is required to be given to the district magistrate and the electrical inspector clause 23-this clause includes within the ambit of section 31 "aerodromes" and "airways" clause 24-'i1lis clause vests electrical inspectors inquiring into the causes of accidents with certain powers of a civil court it also empowers the central government to prescribe the form and manner of sending notice of accidents in connection with the installations with which they are concerned the other amendments made by the clause are clarificatory only clau3e 25-the amendments made by this clause are consequential onlr clause 26-this clause empowers the central government to appoint electrical inspectors for inspecting electric installations of the central government clame 27-this clause provides for the re-constitution of the central electricity board in view of the constitutional changes in the country and for giving representation to the private sector ana the indian standards institution clause 28-the amendment made by this clause is consequential on the amendment made by clause 27 clame 29-this clause makes the rules with referenee to clauses (e) to (;) of sub-section (2) of section 37 of the act binding on the government clame 30-the penal provision;; of section 42 are being enlarged 80 as to include a penalty for contravention of the new provisions added by the bill clause 31-the amendinent made by this clause is consequential on amendment made by clause 19(i) clauss s2-the scope of application of the penal provullons of liiection 47 is being extended to cover cases of sanction holders clause ""-this clause makes specific provision in respect ot offences by companies on the lines of similar provisions inothe, acts clause 34-the amendment made by this clause is clarifteatory only clause 3s-this clause imposes the same obligations on state governments when they engage in the business of supplying electricity to the public, as are imposed on a state electricity board under aection 26 of the electricity (supply) act, 1948 clause 36-this clause provides that where a state government or a state electricity board is a party to a dispute, the dispute shall be referred to two arbitrators, one to be nominated by each party clause 37-this amendment is consequential on the amendment made by clause 6 clause 3b-this clause is intended to protect public officers against frivolous and vexatious prosecutions clame 39-(a) (i) the amendments are consequential on the amendment made by clause 6 (ii) this amendment makes it clear that the state government shall be competent to forfeit the security of a licensee for his failure to complete "compulsory works" in time (b) this is a formal amendment (c) this makes a c1arificatory amendment (d) (i) th~ minimum number of persons entitled to require the licensee to extend his mains to the locality where such persons reside has been reduced from six to two (ii) (a) the form of agreement to be executed between a licensee and his consumers is to be approved by the state government (b) this defines the "reasonable return" to be assured by the consumers of a licensee (iii) this provides that all disputes between a licensee and the owners or occupiers arising out of the provisions of elause v of the sched\lle ihall be determined by th electrical lnlpector (e) (i) this amendment is related to the amendment made by sub-clauae (d) (ii) (b) (ii) this enlarges the scope of matters, difference or dilpute regarding which, between a licensee and a consumer, may be referred to an electrical inspector (n thb amendment is related to the amendment made by i\tb-elaue (d) (i) (g) 'rhis empowers the state government and the local authority to require the licensee to provide mains and other equipm_t for public lamps it further lays down the manner in whjcll dijputte between a licensee and the authorities concerned sblll be detennined in such cases (h) (i) this amendment is related to the amendment made by 8ub-elaute (d) (u) (b) (it) this amendment is consequential on the amendment made by clause 4(ii) (b) (i) this provides that the notice regarding the change of the method of charge shall also be given to the state electricity board and the electrical inspector (j) this amendment is consequential on the ameadment made by clause 4(ii) (b) (k) this amendment is consequential on the amendment made by sub-clause (g) (l) this is a clarificatory amendment only (m) this amendment is consequential on the amendment made by sub-clause (l)  financial memorandumsection 36 of the indian electricity act, 1910 (9 of 1910) empowers the central government to appoint electrical inspectors in relation to mines, oil-fields and railways under clause 26 of the bill, read with clause 3 (ii) of the bill, the central government i further being empowered to appoint such inspectors to examine and test any works or electric installations belonging to, or under the control of, the central government in all the remaining departments, eg, aerodromes, telegraphs, broadcasting statigds, and any works of defence, etc the proposed amendment would involve a recurring expenditure of approximately rupees two lakhs per annum, in addition to a non-recurring expenduure of rupeee twenty thousand  a billfurther to amend the indian electricity act, 1910 the president has, in pursuance of clause (3) of article 1i7 of the constitution of india, recommended to lok sabha the consideration of the bill m n kaul, secretary (hafiz mohammad ibrahim, mmister of irrigation and pofder) 