Labour Commissioner 
SUPPLY OF ENERGY
LICENSES
3. GRANT OF LICENSES.-
(1) The State Government may, on application made in the prescribed form and on payment of the prescribed fee (if any) 1[grant after consulting the State Electricity Board, a license 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 therein, across such area.
(2) In respect of every such license and the grant thereof the following provisions shall have effect, namely:-
(a) any person applying for a license under this Part shall publish a notice of his application in the prescribed manner and with the prescribed particulars, and the license 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 or such notice as aforesaid; and
(ii) until, in the case of an application for a license for an area including the whole or any part of any cantonment 2[ aerodrome,] fortress, arsenal, dockyard or camp or of any building or place in the occupation of the Government for 3[defence purposes], the State Government has ascertained that there is no objection to the grant of the license on the part of the 4[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 license 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;
1. Subs. by Act 32 of 1959, sec. 4, for "grant to any person a license".
2. Ins. bymm9, sec.4, for "Engineer-in-Chief, Army Headquarters, India".
(d) a license 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, 1[***] and generally as to such matters as the State Government may think fit; and
(ii) save in cases in which under section 10, clause (b), the provisions of 2[sections 5 and 6], or either of them, have been declared not to apply, every such licensee shall declare whether any generating station to be used in connection with the undertaking shall or shall not form part of the undertaking for the purpose of purchase under 3[section 5 or section 6];
(e) the grant of a license under this Part for any purpose shall not in any way hinder or restrict the grant of license 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 license granted under this Part, save in so far as they are expressly added to, varied or excepted by the license, and shall, subject to any such additions, variations or exceptions which the State Government is hereby empowered to make, apply to the undertaking authorized by the license:
Provided that where a license is granted in accordance with the provisions of clause IX of the Schedule for the supply of energy to other licensees for distribution by them, then, in so far as such license relates to such supply, the provisions of clauses IV, V, VI, VII, VIII and XII of the Schedule shall not be deemed to be incorporated with the license.
4[***]
4. REVOCATION OR AMENDMENT OF LICENSES.-
(1) The State Government may, if in its opinion the public interest so requires 5[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 State Government, makes wilful and unreasonably 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 license the breach of which is expressly declared by such license to render it liable to revocation;
(c) where the licensee fails, within the period fixed in this behalf by his license or any longer period which the State Government may substitute therefor by order under 6[section 4A, 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 State Government, that he is in a position fully and efficiently to discharge the duties and obligations imposed on him by his license, or
(ii) to make the deposit or furnish the security required by this license;
1. The words "and as to the limits if price to be charged in respect of the supply of energy" omitted by Act 32 of 1959, sec. 4.
2. Subs. by Act 32 of 1959, sec. 4, for "sections 5 and 7".
3. Subs. by Act 32 of 1959, sec. 4, for "section 5 or section 7".
4. Sub-section (3) omitted by Act 38 of 1920, sec.2, Sch. I, Pt. 1.
5. Ins. by Act 32 of 1959, sec. 5.
6. Subs. by Act 32 of 1959, sec. 5, for, "sub-section (3), clause (b)".
(d) 1[where in the opinion of the State Government the financial position of the licensee is such that he is unable] fully and efficiently to discharge the duties and obligations imposed on him by his license;
2[(e) where a licensee, in the opinion of the State Government, has made default in complying with any direction issued under section 22A.]
3[(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 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 fit.
(3) No license 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 license 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 license it may instead of revoking the license 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 license.]
4[4A. AMENDMENT OF LICENSES.-
(1) Wherein 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 license, including the provisions specified in section 3, sub-section (2), clause (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 license, 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 license otherwise 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 clause (c) of sub-section (2), the State Government shall not make any alterations or amendments except with the consent of the Central Government.]
1. Subs, by Act 32 of 1959, sec. 5, for certain words.
2. Ins. by Act 32 of 1959, sec. 5.
3. Subs. by Act 32 of 1959, sec. 5, for sub-sections (2) and (3).
4. Ins. by Act 32 of 1959, sec. 6.
1[5. PROVISIONS WHERE LICENSE OF A LICENSEE IS REVOKED.-
(1) Where the State Government revokes, under section(1), the license of a licensee, the following provision 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 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(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 notice in writing require the licensee to sell, and thereupon the licensee shall sell the undertaking 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 sub-sections (1) and (2) of section 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 prevailing 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 clause (a) of sub-section (1) as the date on which the revocation of the license 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.
COMMENTS
By virtue of sub-section (1), clause (c), on mere receipt of notice sent by the Electricity Board intimating its option to purchase licensee's undertaking, the latter's right to receive price does not get crystallised into a chose-in-action or an optional exercise; Maharashtra State Electricity Board v. Thana Electric Supply Co. AIR 1990 SC 153.
1. Subs, by Act 32 of 1959, sec. 7, for the former sections 5, 6, and 7.
6. PURCHASE OF UNDERTAKINGS.-
(1) Where a license has been granted to any person, not being a local authority, the State Electricity Board shall,-
(a) in the case of a license 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 license; and
(b) in the case of license granted on or after the commencement of the said Act, on the expiration of such period not exceeding 1[thirty] years and of every such subsequent period, not exceeding 1[twenty] 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 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 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, 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.
(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.
COMMENTS
(i) By way of notice or on the exercise of the option of purchasing the undertaking by the Board, the right of the company to obtain purchase price in accordance with its market value and the obligation of the Board to pay such price do not thereby get crystallised into a debt or actionable claim, till the sale of the undertaking is completed; Thana Electric Supply Co. Ltd., Bombay v. M.S.E. Board, AIR 1985 Bom 48.
(ii) Since the impugned amending and validating Acts promulgated subsequent to the take-over of the undertaking conceived were held as 'discriminatory', payment of purchase price had to be made as per the market value of the undertaking concerned as on the date of the take-over of the same by the Board; U.P. State Electricity Board v. Upper Jumna Valley Electricity Supply Co. Ltd., AIR 1988 Cal 336.
7. VESTING OF THE UNDERTAKING IN THE PURCHASER.-
Where an undertaking is sold under section 5 or section 6, then upon the completion of the sale or on the date on which the undertaking is delivered to the intending purchaser under sub-section (3) of section 5 or under sub-section (6) of section 6, as the case may be, whichever is earlier-
(i) the undertaking shall vest in the purchaser or the 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 the undertaking;
(ii) the rights, powers, authorities, duties and obligations of the licensee under his license shall stand transferred to the purchaser and such purchaser shall be deemed to be the licensee:
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.
1. Subs. by Act 50 of 1991, sec. 2, for the words "twenty" and "ten" (w.e.f. 15.10.1991).
7A. DETERMINATION OF PURCHASE PRICE.-
(1) Where an undertaking of a licensee, not being a local authority, is sold under sub-section (1) of section 5, the purchase price of the undertaking shall be the market value of the undertaking at the time of purchase or where the undertaking has been delivered before the purchase under sub-section (3) of that section, at the time of the delivery of the undertaking and if there is any difference or dispute regarding such purchase price, the same shall be determined by arbitration.
(2) The market value of an undertaking for the purpose 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, other than (i) a generating station declared by the license not to form part of the undertaking for the purpose of purchase, and (ii) service-lines or other capital works or any part thereof which have been constructed at the expense of consumers, 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 repair 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 undertaking or of any similar consideration.
(3) Where an undertaking of a licensee, being a local authority, is sold under sub-section (1) 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 delivery 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 determined in accordance with the provision & of sub-sections (1) and (2):
Provided that there shall be added to such 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. PROVISION WHERE NO PURCHASE AND LICENSE REVOKE WITH CONSENT OF LICENSEE.-
Where, on the expiration of any of the periods referred to 1[section 6, sub-section (1)], 1[the undertaking is not purchased by the State Electricity Board, the State Government or the local authority], and the license is, on the application or with the consent of the licensee, revoked, 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, the State Government may proceed to take action as provided in 2[section 5, sub-section (4), proviso].
9. LICENSEE NOT TO PURCHASE, OR ASSOCIATE HIMSELF WITH, OTHER LICENSED UNDERTAKING OR TRANSFER HIS UNDERTAKING.-
(1) The licensee shall not, at any time without the previous consent in writing of the State Government, acquire, by purchase or otherwise, the license or the undertaking of, or associate himself so far as the business of supplying energy is concerned with any person supplying, or intending to supply, energy under any other license, and, before applying for such consent, the licensee shall give not less than one month's 3[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]:
Provided that nothing in this sub-section shall be construed of require the consent of the state Government for the supply of energy by one licensee to another accordance with the provisions of clause IX of the Schedule.
(2) The licensee shall not at any time assign his license or transfer his undertaking, on any part thereof, by sale, mortgage, lease, exchange or otherwise without the previous consent in writing of the State Government.
(3) Any agreement relating to any transaction of the nature described in sub-section (1) or sup-section (2), unless made with, or subject to, such consent as aforesaid, shall be void.
1. Subs. by Act 32 of 1959, sec. 8, for certain words.
2. Subs. by Act 32 of 1959, sec. 8, for "section 5, clause (f), proviso"
3. Subs. by Act 32 of 1959, sec. 9, for certain words.
10. GENERAL POWER FOR GOVERNMENT TO VARY TERMS OF PURCHASE.-
Notwithstanding anything in 1[sections 5, 6 and 8], the State Government may, 2[***] in any license to be granted under this Act,-
(a) vary the terms and conditions upon which, and the periods on the expiration of which, the licensee shall be bound to sell his undertaking, or
(b) direct that, subject to such conditions and restrictions (if any) as it may think fit to impose, the provisions of the said sections or any of them shall not apply.
11. ANNUAL ACCOUNTS OF LICENSEE.-
(1) Every licensee shall, unless expressly exempted from the liability by has license, or pay order in writing of the State Government, prepare and render to the State Government or to such authority as the State, Government may appoint in this behalf, on or before the prescribed date in each year, an annual statement of accounts of his undertaking made up to such date, in such form, and containing such particulars, as may be prescribed in this behalf.
(2) The licensee shall keep copies of such annual statement at his office and sell the same to any applicant at a price not exceeding five rupees per copy.
Works
12. PROVISION AS TO THE OPENING AND BREAKING UP OF STREETS, RAILWAYS AND TRAMWAYS.-
(1) Any licensee may, from time to time but subject always to the terms and conditions of his license, within the area of supply, or, when permitted by the terms of his license to lay down or place electric supply-lines without the area of supply, without that area-
(a) open and break up the soil and pavement of any street, railway or tramway;
(b) open and break up any sewer, drain or tunnel in or under any street, railway or tramway;
(c) lay down and place electric supply-lines and other works;
(d) repair, alter or remove the same; and
(e) do all other acts necessary for the due supply of energy.
(2) Nothing contained in sub-section (1) shall be deemed to authorize or empower a licensee, without the consent of the local authority or of the3[owner or occupier] concerned, as the case may be, to lay down or place any electric supply-line, or other work in, through or against any building, or on, over or under any land not dedicated to public use whereon, wherever or where under any electric supply-line or work has not already been lawfully laid down or placed by such licensee:
1. Subs. by Act 32 of 1959, sec. 10, for "sections 5, 7 and 8".
2. The words "with the previous sanction of the G.G. in C." omitted by Act 38 of 1920, see. 2 and Sch. I, Pt. I.
3.
Subs. by Act 32 of 1959, sec. 11, for "owner and occupier".
Provided that any support of an 1[overhead fine] or any stay or strut required for the sole purpose of securing in position any support of an 1[overhead line] may be fixed on any building or land or, having been so fixed, may be altered, notwithstanding the objection of owner or occupier of such building or land, if the District Magistrate or, in a Presidency-town 2[***], the Commissioner of Police by order in writing so directs:
Provided also, that if at any time the owner or occupier of any building or land on which any such support, slay or sturt has been fixed shows sufficient cause, the District Magistrate or, in a Presidency-town2[***], the Commissioner of Police may by order in writing direct any such support, stay or strut to be removed or altered.
(3) When making an order under sub-section (2), the District Magistrate or the Commissioner of Police, as the case may be, shall fix the amount of compensation or of annual rent, or of both, which should in his opinion be paid by the licensee to the owner or occupier.
(4) Every order made by a District Magistrate or a Commissioner of Police under sub-section (2) shall be subject to revision by the State Government.
(5) Nothing contained in sub-section (1) shall be deemed to authorize or empower any licensee to open or break up any street not repairable by 3[the Central Government or the State Government] or a local authority, or any railway or tramway, except such streets, railways or tramways (if any), or such parts thereof, as he is specially authorized to break up by his license, without the written consent of the person by whom the street is repairable or of the person for the time being entitled to work the railway or tramway, unless with the written consent of the State Government:
Provided that the State Government shall not give any such consent as aforesaid, until the licensee has given notice by advertisement or otherwise as the State Government may direct, and within such period as the State Government may fix in this behalf, to the person above referred to, and until all representations or objections received in accordance with the notice have been considered by the State Government.
4[(6) In this section, "occupier" of any building or land means a person in lawful occupation of that building or land.]
COMMENTS
(i) The right of the tenant relating to conversion of D.C. Current to A.C. Current in the tenanted premises was protected by the Amendment Act (32 of 1959) whereby the words "owner or occupier" were substituted in sub-section (2) of this section, giving a disjunctive meaning or interpretation thereto and thereby clearly implying that the supply of electricity now being a matter between the occupier and the licensee, the landlord in the capacity of the owner of the said premises was not entitled to ordinarily stand in the way; Ratnamala Dasi v. Ratan Singh, AIR 1990 Cal 26.
(ii) The act of fixing poles and larging over-head electric lines in private property will be unauthorized in the absence of prior permission of the District Magistrate when the resistance is offered by the owl1er of such private property; Surat Singh v. M.C.D., AIR 1989 Del 51.
(iii) If a person occupying the premises lawfully as tenant is derived consent by his/her landlord for obtaining electric supply, whether afresh or by way of addition, the prescribed authority would be required to be approached by such person for necessary permission so as to comply with the requisite provisions of this Act. On such permission being granted by the prescribed authority, the owner (landlord) of the premises would be deemed to have given the requisite consent under sub-section (2) of this section; Shantilal Keshavlal Pathak v. Asstt. Collector, Vadodra, AIR 1990 Guj 147.
1. Subs. by Act 32 of 1959, sec. 2, for "aerial line".
2. The words "or Rangoon' omitted by the A.O. 1937.
3. Subs. by the A.O. 1937, for "the Government".
4. Ins. by Act 32 of 1959, sec. 11.
13. Notice of new works.-
(1) Where the exercise of any of the powers of a licensee in relation to the execution of any works involves the placing of any works, in, under, over, along or across any street, part of a street, railway, tramway, canal or waterway, the following provisions shall have effect, namely:-
(a) not less than one month before commencing the execution of the works 1[***] the licensee shall serve upon the person responsible for the repair of the street or part of a street (hereinafter in this section referred to as "the repairing authority") or upon the person for the time being entitled to work the railway, tramway, canal or waterway (hereinafter in this section referred to as "the owner"), as the case may be, a notice in writing describing the proposed works together with a section and plan thereof on a scale sufficiently large to show clearly the details of the proposed works, and not in any case smaller than one inch to eight feet vertically and sixteen inches to the mile horizontally, and intimating the manner in which, and the time at which, it is proposed to interfere with or alter any existing works, and shall, upon being required to do so by the repairing authority or owner, as the case may be, from time to time give such further information in relation thereto as may be desired;
(b) if the repairing authority intimates to the licensee that it disapproves of such works, section or plan, or approves thereof subject to amendment, the licensee may, within one week of receiving such intimation, appeal to the State Government, whose decision, after considering the reasons given by the repairing authority for its action, shall be final;
(c) if the repairing authority fails to give notice in writing of its approval or disapproval to the licensee within one month, it shall be deemed to have approved of the works, section and plan, and the licensee, after giving not less than forty-eight hour' notice in writing to the repairing authority, may proceed to carry out the works in accordance with the notice and the section and plan-served under clause (a);
(d) if the owner disapproves of such works, section or plan, or approves thereof subject to amendment, he may, within three weeks, after the service of the notice under clause (a), serve a requisition upon the licensee demanding that any question in relation to the works or to compensation, or to the obligations of the owner to others in respect thereof, shall be determined by arbitration, and thereupon the matter shall unless settled by agreement, the determination by arbitration;
(e) where no requisition has been served by the owner upon the licensee under clause (d), within the time named, the owner shall be deemed to have approved of the works, section and plan, and in that case, or where after a requisition for arbitration the matter has been determined by arbitration, the works may, upon payment or securing of compensation, be executed according to the notice and the section and plan, subject to such modifications as may have been determined by arbitration or agreed upon between the parties.
1. Certain works and brackets omitted by Act 32 of 1959, sec. 12.
1[Explanation.-In clauses (a) to (e) the word "works" includes a service- line in, under, over, along or across a railway even if such line is immediately attached or intended to be immediately attached to a distributing main, but does not include-
(i) any other service-line so attached or intended to be so attached to a distributing main, or
(ii) works which consist of the repair, renewal or amendment of existing works of which the character or position is not to be altered;]
(f) where the works to be executed consist of the laying of any under ground service-line immediately attached, or intended to be immediately attached, to a distributing main, the licensee shall give to the repairing authority or the owner , as the case may be, not less than forty-eight hours' notice in writing of his intention to execute such works;
(g) where the works to be executed consist of the repair, renewal or amendment of existing works of which the character or position is not to be altered, the licensee shall, except in cases of emergency, give to the repairing authority, or to the owner, as the case may be, not less than forty-eight hours' notice in writing of his intention to execute such works, and, on the expiry of such notice, such works shall be commenced forthwith and shall be carried on with all reasonable dispatch, and, if possible, both by day and by night until completed.
(2) Where the licensee makes default in complying with any of these provisions, he shall make full compensation for any loss or damage incurred by reason thereof, and, where any difference or dispute arises as to the amount of such compensation, the matter shall be determined by arbitration.
(3) Notwithstanding anything in this section, the licensee may, in case of emergency due to the breakdown of an underground electric supply-line, after giving notice in writing to the repairing authority or the owner, as the case may be, of his intention to do so, place an 2[overhead line] without complying with the provisions of sub-section (1):
Provided that such: 2[overhead line] shall be used only until the defect in the underground electric supply-line can be made good, and in no case (unless with the written consent of the State Government) for a period exceeding six weeks, and shall be removed as soon as may be after such defect is removed.
14. ALTERATION OF PIPES OR WIRES.-
(1) Any licensee may alter the position of any pipe (not forming, in a case where the licensee is not a local authority, part of a local authority's main sewer), or of any wire under or over any place which he is authorized to open or break up, if such pipe or wire is likely to interfere with the exercise of his powers under this Act; and any person may alter position of any electric supply-lines or works of a licensee under or over any such place as aforesaid, if such electric supply-lines or works are likely to interfere with the lawful exercise of any powers vested in him.
(2) In any such case as aforesaid the following provisions shall, in the absence of an agreement to the contrary between the parties concerned, apply, namely:-
(a) not less than one month before commencing any alteration, the licensee or other person desiring to make the same (hereinafter in this section referred to as "the operator") shall serve upon the person for the time being entitled to the pipe, wire, electric supply-lines or works, as the case may be (hereinafter in this section referred to as "the owner"), a notice in writing, describing the proposed alteration, together with a section and plan thereof on a scale sufficiently large to show clearly the details of the proposed works, and not in any case smaller than one inch to eight feet vertically and sixteen inches to the mile horizontally, and intimating the time when it is to be commenced, and shall subsequently give such further information in relation thereto as the owner may desire;
(b) within fourteen days after the service of the notice, section and plan upon the owner, the owner may serve upon the operator a requisition to the effect that any question arising upon the notice, section or plan shall be determined by arbitration, and thereupon the matter shall, unless settled by agreement, be determined by arbitration;
(c) every arbitrator to whom a reference is made under clause (b), shall have regard to any duties or obligations which the owner is under, and may require the operator to execute any temporary or other works so as to avoid, as far as possible, interference therewith;
(d) where no requisition is served upon the operator under clause (b) within the time named, or where such a requisition has been served and the matter has been settled by agreement or determined by arbitration, the alteration may, upon payment or securing of any compensation accepted or determined by arbitration, be executed in accordance with the notice, section and plan and subject to such modifications as may have been determined by arbitration or agreed upon between the parties;
(e) the owner may, at any time before the operator is entitled to commence the alteration, serve upon the operator a statement in writing to the effect that he desires to execute the alteration himself and requires the operator to give such security for the repayment of any expenses as may be agreed upon or, in default of agreement, determined by arbitration;
(f) where a statement is served upon the operator under clause (e), he shall, not less than forty-eight hours before the execution of the alteration is required to be commenced, furnish such security and serve upon the owner a notice in writing intimating the time when the alteration is required to be commenced, and the manner in which it is required to be made; and thereupon the owner may proceed to execute the alteration as required by the operator;
(g) where the owner declines to comply, or does not, within the time and in the manner prescribed by a notice served upon him under clause (f), comply with the notice, the operator may himself execute the alteration;
(h) all expenses properly incurred by the owner in complying with a notice served upon him by the operator under clause (f) may be recovered by him from the operator.
(3) Where the licensee or other person desiring to make the alteration makes default in complying with any of these provisions, he shall make full compensation for, my loss or damage incurred by reason thereof, and, where any difference or dispute arises as to the amount of such compensation, the matter shall be determined by arbitration,
1 Ins. by Act 32 of 1959, sec. 12.
2. Subs. by Act 32 of 1959, sec. 2, for "aerial line".
15. LAYING OF ELECTRIC SUPPLY-LINES OR OTHER WORKS NEAR SEWERS, PIPES OR OTHER ELECTRIC SUPPLY-LINES OR WORKS.-
(1) Where-
(a) the licensee requires to dig or sink any trench for laying down, any new electric supply-lines or other works, near to which any sewer, drain, water-course or work under the control of the State Government or of any local authority, of may pipe, syphon, electric supply-line or other work belonging to any duly authorized person, has been lawfully placed, or
(b) any duly authorized person requires to dig or sink any trench for laying down or constructing any new pipes or other works, near to which any electric supply-lines or works of a licensee have been lawfully placed,
the licensee or such duly authorized person, as the case may be (hereinafter in this section referred to as "the operator"), shall, unless it is otherwise agreed upon between the parties interested or in case of sudden emergency, give to the State Government or local authority or to such duly authorized person, or to the licensee, as the case may be (hereinafter in this section referred to as "the owner"), not less than forty-eight hours' notice in writing before commencing to dig or sink the trench, and the owner shall have the right to be present during the execution of the work, which shall be executed to the reasonable satisfaction of the owner.
(2) Where the operator finds it necessary to undermine, but not to alter, the position of any pipe, electric supply-line or work, he shall support it in position during the execution of the work, and before completion shall provide a suitable and proper foundation for it where so undermined.
(3) Where the operator (being the licensee) lays any electric supply-line across, or so as to be liable to touch, any pipes, lines or service-pipes, or service-pipes belonging, to any duty authorized person or to any person supplying, transmitting of using energy under this Act, he shall not, except with the written consent of such person and in accordance with section 34, sub-section (1) lay his electric supply-lines so as to come into contact with any such pipes, lines or service-pipes or service-lines.
(4) Where the operator makes default in complying with any of the provisions of this section, he shall make full compensation for any loss or damage incurred by reason thereof.
(5) Where any difference or dispute arises under this section, the matter shall be determined by arbitration.
(6) Where the licensee is a local authority, the references in this section to the local authority and to sewers, drains, water-courses or works under its control, shall not apply.
16. STREETS, RAILWAYS, TRAMWAYS, SEWERS, DRAINS OR TUNNELS BROKEN UP TO BE REINSTATED WITHOUT DELAY.-
(1) Where any person, in exercise of any of the powers conferred by or under this Act, opens or breaks up the soil or pavement of any street, railway or tramway or any sewer, drain or tunnel, he shall-
(a) immediately cause the part opened or broken up to be fenced and guarded;
(b) before sunset cause a light or lights, sufficient for the warning of passengers, to be set up and maintained until sunrise against or near the part opened or broken up;
(c) with all reasonable speed fill in the ground and reinstate and make good the soil or pavement, or the sewer. drain or tunnel, opened or broken up, and carry away the rubbish occasioned by such openings or breaking up; and
(d) after reinstating and making good the soil or pavement, or the sewer, drain or tunnel, broken or opened up, keep the same in good repair for three months and for any further period, not exceeding nine months, during which subsidence continues.
(2) Where any person fails to comply with any of the provisions of sub-section (1), the person having the control or management of the street, railway, tramway, sewer, drain or tunnel in respect of which the default has occurred, may cause to be executed the work which the defaulter has delayed or omitted to execute, and may recover from him the expenses incurred in such execution.
(3) Where any difference or dispute arises as to the amount of the expenses incurred under sub-section (2), the matter shall be determined by arbitration.
17. NOTICE TO TELEGRAPH AUTHORITY.-
(1) A licensee shall, before laying down or placing, within ten yards of any part of any telegraph-line, any electric supply-line or other works 1[not being either service-lines], or electric supply-lines for the repair, renewal or amendment of existing works of which the character or position is not to be altered), give not less than ten day's notice in writing to the telegraph-authority, specifying-
(a) the course of the works or alterations proposed,
(b) the manner in which the works are to be utilized,
(c) the amount and nature of the energy to be transmitted, and
(d) the extent to, and manner in, which (if at all) earth returns are to be used,
and the licensee shall conform with such reasonable requirements, either general or special, as may be laid down by the telegraph-authority within that period for preventing any telegraph-line from being injuriously affected by such works or alterations:
Provided that, in case of emergency (which shall be stated by the licensee in writing to the telegraph-authority) arising from defects in any of the electric supply-lines or other works of the licensee, the licensee shall be required to give only such notice as may be possible after the necessity for the proposed new works or alterations has arisen.
(2) Where the works to be executed of the laying 2[or placing] of any 3[***] serviced-lines 4[***] the licensee shall, not less than forty-eight hours before commencing the work, serve upon the telegraph-authority a notice in writing of his intention to execute such works.
18. OVERHEAD LINES.-
(1) Save as provided in section 13, sub-section (3), nothing in this Part shall be deemed to authorize or empower a licensee to place any 5[overhead line] along or across any street, railway, tramway, canal or waterway unless and until the State Government has communicated to him a general approval in writing of the methods of construction which he proposes to adopt:
Provided that the communication of such approval shall in no way relieve the license of his obligations with respect to any other consent required by or under this Act.
(2) Where any 5[overhead line] has been placed or maintained by a licensee in breach of the provisions of sub-section (1), the State Government may require the licensee forthwith to remove the same, or may cause the same to be removed, and recover from the licensee the expenses incurred in such removal.
6[(3) Where any tree standing or laying near an 5[overhead line] or where any structure or other object which has been placed or has fallen near an 5[overhead line] subsequently to the placing of such line, interrupts or interferes with, or is likely to interrupt or interfere
1 Subs. by Act I of 1922, sec. 4, for. "not being service-line immediately attached or intended to be immediately attached to a distributing main".
2. Ins. by Act 1 of 1922, sec. 4.
3. The word underground" omitted by Act 1 of 1922, sec. 4.
4. The words "immediately attached or intended to be immediately attached to a distributing main" omitted by Act 1 of 1922, sec. 4.
5. Subs. by Act 32 of 1959. sec. 2, for "aerial line".
6. Subs. by Act 1 of 1922, sec. 5, for the original sub-section.
with, the conveyance or transmission of energy or the accessibility of any works a Magistrate of the first class or, in a presidency-town 1[***], [the Commissioner of Police, may, on the application of the licensee, cause the tree, structure or object to be removed or otherwise dealt with as he thinks fit.]
(4) When disposing of an application under sub-section (3), the Magistrate or Commissioner of Police, as the case may be, shall, in the case of any tree in existence before the placing of the 2[overhead line], award to the person interested in the tree such compensation as he thinks reasonable, and such person may recover the same from the licensee.
3[Explanation.-For the purposes of this section, the expression "tree" shall be deemed to include any shrub, hedge, jungle-growth or other plant.]
19. COMPENSATION FOR DAMAGE.-
(1) A licensee shall, in exercise of any of the powers conferred by or under this Act, cause as little damage, detriment and inconvenience as may be, and shall make full compensation for any damage, detriment or inconvenience caused by him or by anyone employed by him.
(2) Save in the case provided for in section 12, sub-section (3), where any difference or dispute arises as to the amount or the application of such compensation the matter shall be determined by arbitration.
Supply
4[19A. POINT WHERE SUPPLY IS DELIVERED.-
For the purposes of this Act, the point at which the supply of energy by a licensee to a consumer shall be deemed to commence shall he determined in such manner as may be prescribed.]
20. POWER FOR LICENSEE TO ENTER PREMISES AND TO REMOVE FITTINGS OR OTHER APPARATUS OF LICENSEE.-
(1) A licensee or any person duly authorized by a licensee may, at any reasonable time, and on informing the occupier of his intention, enter any premises to which energy is or has been supplied by him, 5[ of any premises or land, under, over, along, across, in or upon which the electric supply-lines or other works have been lawfully placed by him] for the purpose of-
(a) 6[inspecting, testing, repairing or altering] the electric supply lines, meters, fittings, works and apparatus for the supply of energy belonging to the licensee; or
(b) ascertaining the amount of energy supplied or the electrical quantity contained in the supply; or
(c) removing where a supply of energy is no longer required, or where the licensee is authorized to take away and cut off such supply, any electric supply-lines, 7[meters,] fittings, works or apparatus belonging to the licensee.
1. The words "or Rangoon" omitted by the A.O. 1937.
2. Subs. by Act 32 of 1959, sec. 2, for "aerial line".
3. Added by Act 1 of 1922, sec. 5.
4. Ins. by Act 1 of 1922, sec. 6.
5. Ins. by Act 32 of 1959, sec. 13.
6. Subs. by Act 32 of 1959, sec. 13, for "inspecting and testing".
7. Ins. by Act 1 of I922, sec.7.
(2) A licensee or any person authorized as aforesaid may also, in pursuance of a special order in this he half made by 1[a Magistrate of the first class or in a presidency-town, by a Presidency Magistrate and after giving not less than twenty-four fours' Hours in writing to the occupier-
(a) enter any premises or land referred to in sub-section (1) for any of the purposes mentioned therein;
(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].
2[(3) Where a consumer refuses to allow a licensee or any person authorized as aforesaid to enter his premises 3[or land] in pursuance of the provisions of sub-section (1) of, sub-section (2), when such licensee or person has so entered, fetuses to allow him to perform any act which he is authorized by those sub-sections to perform, of fails to give reasonable facilities for such entry or performance, the licensee may, after the expiry of twenty-four hours from the service of a notice in writing on the consumer, cut off the supply to the consumer for so long as such refusal or failure continues, but for no longer.]
21. RESTRICTION ON LICENSEES CONTROLLING OR INTERFERING WITH OF ENERGY.-
(1) A licensee shall not be entitled to prescribe any special form of appliance for utilizing energy supplied by him, or, save as provided 4[in any conditions made under sub-section (2) or] by section 23, sub-section (2), or by section 26, sub-section (7), in any way to control or interfere with the use of such energy:
Provided that no person may adopt any form of appliance, or use the energy supplied to him, so as unduly or improperly to 5[interfere with-
(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].
6[(2) 7[***] A licensee may, with the previous sanction of the State Government, given after consulting 3[the State Electricity Board and also] the local authority, where the licensee is not the local authority, make conditions not inconsistent with this Act or with his license or with any rules made under this Act, to regulate his relations with persons who are or intend to become consumers, and may, with the like sanction given after the like consultation, add to or alter or amend any such conditions; and any conditions made by a licensee without such sanction shall be nun and void:
Provided that any such conditions made before the 23rd day of January, 1922 shall, if sanctioned by the State Government on application made by the licensee before such date as the State Government may, by general or special order, fix in this behalf, be deemed to have been made in accordance with the provisions of this sub-section.
1. Subs. by Act 32 of 1959, sec. 13, for certain former words.
2. Ins. by Act 1 of 1922, sec.7.
3. Ins. by Act 32 of 1959, sec. 13.
4. Ins. by Act 32 of 1959, sec. 14.
5. Subs. by Act 32 of 1959, sec. 14, for "interfere with the supply by the licensee of energy to any other person".
6. Ins. by Act 1 of 1922, sec. 8.
7. The words, bracket and figure "Subject to the provisions of sub-section (1)" omitted by Act 32 of 1959, sec. 14.
(3) The State Government may, after the like consultation, 1[add any new condition or cancel or amend] any condition or part of a condition previously sanctioned under sub-section (2) after giving to the licensee not less than one month's noice in writing of its intention so to do.]
2[(4)] Where any difference or dispute arises as to whether a licensee has prescribed any appliance or controlled or interfered with the use of energy in contravention of sub-section (1), the matter shall be either referred to an 3[Electrical Inspector] and decided by him or, if the licensee or consumer so desires, determined by arbitration.
COMMENTS
Conditions regulating the relations between the parties (licensee and consumer) are not amended or altered merely by the change in the rates/charges of supply when the consumer has expressly accepted, as a condition, that whatever rate is levied Shall he payable by him. Hence, prior sanction of the State Government is not necessary for change in rate; Gulab Rai v. MCD, AIR 1990 Del 249.
22. OBLIGATION ON LICENSEE TO SUPPLY ENERGY.-
Where energy is supplied by a licensee, every person within the area of supply shall, except in so far as is otherwise provided by the terms and conditions of the license, be entitled, on application, to a supply on the same terms as those on which any other person in the same area is entitled in similar circumstances to a corresponding supply;
Provided that no person shall be entitled to demand, or to continue to receive, from a licensee a supply of energy for any premises having a separate supply unless he has agreed with the licensee to pay to him such minimum annual sum as will give him a reasonable return on the capital expenditure, and will cover other standing charges incurred by him in order to meet the possible maximum demand for those premises, the sum payable to be determined in case of difference or dispute by arbitration.
COMMENTS
The Electricity Board is responsible to supply electricity to every person/individual applying in that behalf, residing within the area of supply without any discretion or bias or option; Ram Bihari Movie Pvt. Ltd. v. Orissa Slate Electricity Board, AIR 1991 Ori 12.
4[22A. POWER OF STATE GOVERNMENT TO GIVE DIRECTION TO A LICENSEE IN REGARD TO THE SUPPLY OF ENERGY TO CERTAIN CLASS OF CONSUMERS.-
(1) The State Government may, if in its opinion it is necessary in the public interest so to do, direct any licensee to supply, in preference to any other consumer, energy required by any establishment which being in the opinion of the State Government an establishment used or intended to be used for maintaining supplies and services essential to the community, is notified by that Government in the Official Gazette in this behalf.
(2) Where any direction is issued under sub-section (1) requiring a licensee to supply energy 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 be determined by arbitration.
(3) Where any agreement by a licensee, whether made before or after the commencement of the Indian Electricity (Amendment) Act, 1959, for the supply of energy with any establishment referred to in sub-section (1) expires, the licensee shall continue to supply energy to such establishment on the same terms and conditions as are specified in the agreement until he 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, 1948 (54 of 1948), or in his license or in any agreement entered into by him for the supply of energy, a licensee shall be bound to comply with any direction 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.
1. Subs. by Act 32 of 1959, sec. 14, for "cancel".
2. Original sub-section (2) re-numbered as sub-section (4) by Act 1 of 1922, sec. 8.
3. Subs. by Act 32 of 1959, sec. 2, for "Electric Inspector".
4. Ins. by Act 32 of 1959, sec. 15.
22B. POWER TO CONTROL THE DISTRIBUTION AND CONSUMPTION OF ENERGY.-
(1) If the State Government is of opinion that it is 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 supply, distribution, consumption or use thereof.
(2) Without prejudice to the generality of the powers conferred by sub-section (1) an order made there under may direct 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 before or after the commencement of the Indian Electricity (Amendment) Act, 1959, for the supply (other than the resumption of a supply) or an increase 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 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.]
COMMENTS
A consumer of high tension industrial power, on account of interrupted supply of electrical energy due to power cuts, is not relieved of the liability/obligation to pay minimum monthly charges and thus can not restrict such liability to the extent of electrical energy actually consumed by him, especially when such consumer had agreed for power cuts; Gwalior Steels Pvt. Ltd. v. Madhya Pradesh Electricity Board, AIR 1993 MP 118.
23. CHARGES FOR ENERGY TO BE MADE WITHOUT UNDUE PREFERENCE.-
(1) A licensee shall not, in making any agreement for the supply of energy, show under preference to any person 1[***].
(2) No consumer shall, except with the consent in writing of the licensee, use energy supplied to him under one method of charging in a manner for which a higher method of charging is in force.
2[(3) In the absence of an agreement to the contrary, a licensee may charge for energy supplied by him to any consumer-
(a) by the actual amount of energy so supplied, or
(b) by the electrical quantity contained in the supply, or
(c) by such other method as may be approved by the State Government.
(4) Any charges made by a licensee under clause (c) of sub-section (3) may be based upon, and vary in accordance with, any one or more of the following considerations, namely-
(a) the consumer's load factor, or
(b) the power factor of his load, or
(c) his total consumption of energy during any stated period, or
(d) the hours at which the supply of energy is required.]
1. Certain words omitted by Act 32 of 1959, sec. 16.
2. Added by Act 1 of 1922, sec. 9.
COMMENTS
(i) Stipulation to pay minimum guaranteed charges, irrespective of the units of energy consumed or not consumed at all till the determination of the contract, is reasonable and valid, as the supply of electricity to a consumer involves incurring of fixed overhead expenses by way of installation by the Electricity Board; Bihar State Electricity Board, Patna v. Green Rubber Industries,, AIR 1990 SC 699.
(ii) Mere disconnection supply of electricity would not amount to termination of the contract except when no application for restoration within one week or seven days of such disconnection is moved, it would be deemed to be a notice of termination and the contract would be terminated either at the end of this period of notice or the tenure of the agreement, whichever was longer; General Manager-cum-Chief Engineer, Bihar State Electricity Board v. Rajeshwar Singh, AIR 1990 SC 706.
24. DISCONTINUANCE OF SUPPLY TO CONSUMER NEGLECTING TO PAY CHARGE.-
1[(1)] Where any person neglects to pay any charge for energy or any 2[sum, other than a charge for energy] due from him to a licensee in respect of the supply of energy to him, the licensee may, after giving not less than seven clear days' notice in writing to such person and without prejudice to his right to recover such charge or other sum by suit, cut off the supply and for that purpose cut or disconnect any electric supply-line or other works, being the property of the licensee, through which energy may be supplied, and may discontinue the supply until such charge or other sum, together with any expenses incurred by him in cutting off and reconnecting the supply, are paid, but no longer.
3[(2)] 4[***] Where any difference or dispute 5[which by or under this Act is required to be determined by an Electrical Inspector, has been referred to the Inspector] before notice as aforesaid has been given by the licensee, the licensee shall not exercise the powers conferred by this section until the Inspector has given his decision:
6[Provided that the prohibition contained in this sub-section shall not apply in any case in which the licensee has made a request in writing to the consumer for a deposit with the 7[Electrical Inspector] of the amount of the licensee's charges or other sums in dispute or for the deposit of the licensee's further charge for energy as they accrue, and the consumer has failed to comply with such request.]
1. First paragraph of section 24 numbered as sub-section (1) of that section by Act 1 of 1922, sec.10.
2. Subs. by Act 1 of 1922, sec. 10, for "other sum".
3. Provision numbered as sub-section (2) by Act 1 of 1922, sec. 10.
4. The words. "Provided that" omitted by Act 1 of 1922, sec. 10.
5. Subs. by Act 32 of 1959, sec. 17, for "has been referred under this Act to an Electric Inspector".
6. Added by Act 1 of 1922, sec. 10.
7. Subs. by Act 32 of, 1959, sec. 2, for "Electric Inspector".
25. EXEMPTION OF ELECTRIC SUPPLY-LINES OR OTHER APPARATUS FROM ATTACHMENT IN CERTAIN CASES.-
Where any electric supply-lines, meters, fittings, works or apparatus belonging to a licensee are placed in or upon any premises 1[or land], not being in the possession of the licensee, 2[***] such electric supply-lines, meters, fittings, works and apparatus shall not be liable to be taken in execution under any process of any Civil Court or in any proceedings in insolvency against the person in whose possession the same may be.
26. METERS.-
(1) In the absence of an agreement to the contrary, the amount of energy supplied to a consumer or the electrical quantity contained in the supply shall be ascertained by means of a correct meter, and the licensee shall, if required by the consumer, cause the consumer to be supplied with such a meter:
Provided that the licensee may require the consumer to give him security for the price of a meter and enter into an agreement for the hire thereof, unless the consumer elects to purchase a meter.
(2) Where the consumer so enters into an agreement for the hire of a meter, the licensee shall keep the meter correct, and, in default of his doing so, the consumer shall, for so long as the default continues, cease to be liable to pay for the hire of the meter.
(3) Where the meter is the property of the consumer, he shall keep the meter correct and, in default of his doing so, the licensee may, after giving him seven days' notice, for so long as the default continues, cease to supply energy through the meter.
(4) The licensee or any person duly authorized by the licensee shall, at any reasonable time and on informing the consumer of his intention, have access to and be at liberty to inspect and test, and for that purpose, if the thinks fit, take off and remove, any meter referred to in sub-section (1); and, except where the meter is so hired as aforesaid, all reasonable expenses of, and incidental to, such inspecting, testing, taking off and removing shall, if the meter is found to be otherwise than correct, be recovered from the consumer; and, where any difference or dispute arises as to the amount of such reasonable expenses, the matter shall be referred to an 3[Electrical Inspector], and the decision of such Inspector shall be final:
Provided that the licensee shall not be at liberty to take off or remove any such meter if any difference or dispute of the nature described in sub-section (6) has arisen until the matter has been determined as therein provided.
(5) A consumer shall not connect any meter referred to in sub-section (1) with any electric supply-line through which energy is supplied by a licensee, or disconnect the same from any such electric supply-line 4[but he may by giving not less than forty-eight hours' notice in writing to the licensee requires 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 notice.]
1. Ins. by Act 32 of 1959, sec. 18.
2. The words "for the purposes of supplying energy" omitted by Act 32 of 1959, sec. 18.
3. Subs. by Act 32 of 1959, sec. 2, for "Electric inspector".
4. Subs. by Act 32 of 1959, sec. 19, for certain words.
1[(6) Where any difference or dispute arises as to whether any meter referred to in sub-section (1) is or is 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 months, 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 absence of fraud, be conclusive proof of such amount or quantity:
Provided that before either a licensee 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.]
(7) In addition to any meter which may be placed upon the premises of a consumer in pursuance of the provisions of sub-section (1), the licensee may place upon such premises such meter, maximum demand indicator or other apparatus as he may think fit for the purpose of ascertaining or regulating either the amount of energy supplied to the consumer, or the number of hours during which the supply is given, or the rate per unit of time at which energy is supplied to the consumer, or any other quantity or time connected with the supply:
Provided that the meter, indicator or apparatus shall not, in the absence of an agreement to the contrary be placed otherwise than between the distributing mains of the licensee and any meter referred to in sub-section (1):
Provided also that, where the charges for the supply of energy depend wholly or partly upon the reading or indication of any such meter, indicator or apparatus as aforesaid, the licensee shall, in the absence of an agreement to the contrary, keep the meter, indicator or apparatus correct; and the provisions of sub-sections (4), (5) and (6) shall in that case apply as though the meter, indicator or apparatus were a meter referred to in sub-section (1).
Explanation.-A meter shall be deemed to be "correct" if it registers the amount of energy supplied, or the electrical quantity contained in the supply, within the prescribed limits of error, and a maximum demand indicator or other apparatus referred to in sub-section (7) shall be deemed to be "correct" if it complies with such conditions as may be prescribed in the case of any such indicator or other apparatus.
27. SUPPLY OF ENERGY OUTSIDE AREA OF SUPPLY.-
Notwithstanding anything in this Act, the State Government may, by order in writing, and subject to such conditions and restrictions, if any, as it thinks fit to impose, authorize any licensee to supply energy to any person outside the area of supply, and to lay down or place electric supply-lines for that purpose:
Provided, first, that no such authority shall be conferred on the licensee within the area of supply of another licensee without that licensee's consent, unless the State Government considers that his consent has been unreasonably withheld:
Provided, secondly, that such authority shall not be conferred unless the person to whom the supply is to be given has entered into a specific agreement with the licensee for the taking of such supply:
Provided, thirdly, that a licensee on whom such authority has been conferred shall not be deemed to be empowered outside the area of supply to open or break up any street, or any
1. Subs. by Act 32 of 1959, sec. 19, for the former sub-section.