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The INDIAN ELECTRICITY ACT, 1910

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THE INDIAN ELECTRICITY ACT, 1910 
 
(Act No. 9 of 1910) 
 
[18th March, 1910] 
 
CONTENTS 
 
 
PART 1 
 
Preliminary 
  
1.     Short title, extent and commencement
. 
  
2.     Definitions.
 
PART II 
  
Supply of Energy 
  
Licences. 
  
3.    Grant of licenses. 
  
4.    Revocation or amendment of licenses.
 
  
4A.   Amendment of license. 
  
5. 5.                           Provisions where license of a 
licensee, is revoked. 
  
6.     Purchase of undertaking in the purchaser.
  
  
7.   Vesting of the undertaking in the purchaser.
 
  
7A.   Determination of purchase price.
 
  
8.   Provisions where no purchase and license revoked with 
consent of   license. 
  
9.   Licensee not to purchase, or associates himself with, 
other licensed   undertaking or transfer his undertaking. 
  
10.      General power for Government to very terms of 
purchase.    
  
11.   Annual accounts of licensee. 
  
Works 
  
12.    Provision as to the opening and breaking up of streets, 
railways and tramways. 
  
13. Notice of new works.
 
  
14.   Alteration of pipes or wires.
 
  
15.   Laying of electric supply-lines or other works near 
sewers, pipes or other electric supply-lines or works. 
  
16.   Streets, railways, tramways, sewers, drains or tunnels 
broken up to be reinstated without realy. 
  
17.   Notice to telegraph authority.
 
 
18.   Overhead lines.
 
  
19.     Compensation for damage.
 
  
Supply 
  
19A.   Point where supply is delivered. 
  
20.  Power for licensee to enter premises and to remove 
fittings or other apparatus of licensee. 
  
21.   Restriction on licensees controlling or interfering with 
use of energy. 
  
22.   Obligation on licensee to supply energy.
 
  
22A.    Powers of State Government to give direction to a 
licensee in regard to the supply of energy to certain 
class o consumers 
 
22B.    Power to control the distribution and consumption of 
energy. 
  
23.   Charges for energy to be made without undue 
preference. 
  
24.   Discontinuance of supply to consumer neglecting to 
pay charge. 
  
25. Exemption of electric supply-lines or other apparatus 
from attachment in certain cases.   
  
 26.     Meters.
 
  
27. Supply of energy outside area of supply.   
  
PART III 
  
Supply, Transmission and Use of 
Energy by Non-Licences 
   
28.     Sanction required by non-licensees in certain cases. 
  
29.     Power for non-licensees to break up streets.
 
  
29A.   Application of section 18 to over-headlines maintained 
by railways. 
  
30.      Control of transmission and use of energy.
 
   
PART IV 
  
General 
  
Protective Clauses  
  
   
31.       Protection of railways, aerodromes, and canals, docks, 
wharfs and piers.  
. 
32.       Protection of telegraphic, telephonic and electric 
signaling lines.   
  
33.   Notice of accidents and inquiries
 
  
34.   Prohibition of connection with earth and power for 
Government to interfere in certain cases of default.  
  
Administration and Rules 
   
35.     Advisory Board. 
  
36.    Appointment of Electrical Inspector. 
  
36A.   Central Electricity Board. 
   
36B.    Central members affected by States’ re-organisation to 
vacate offices.   
  
37.      Power for Board to make rules
 
  
38       Further provisions respecting. Rules.
 
  
CRIMINAL OFFENCES AND PROCEDURE 
  
39.      Theft of energy. 
  
39A.    Abetment
 
  
40.      Penalty for maliciously wasting energy or injuring 
works. 
  
41.    Penalty for unauthorised supply of energy by non-
licensees. 
  
42      Penalty for illegal or defective supply or for 
noncompliance with older. 
  
43.       Penalty or illegal transmission or use of energy. 
  
44.     Penalty for interference with meters or licensee’s works 
and for improper use of energy. 
  
45.      Penalty for extinguishing public lamps.
 
  
46.       Penalty for neglecting wasting energy or injuring 
works. 
  
47.       Penalty for offences not otherwise provided for.
 
  
48.       Penalties not to affect others liabilities.
 
  
49.       Penalties where works belong to Government.
 
  
49A. Offences by companies.
 
  
50.        Institution of prosecutions
 
  
Supplementary 
  
51.        Exercise in certain cases of powers of telegraph 
authority. Act. 
  
51A. State Government to have powers and obligations of a 
licensee under this Act 
  
52.       Arbitration.
 
  
53.       Service of notices orders of documents
. 
  
54.       Recovery of sums recoverable under certain provisions 
of Act. 
  
55.       Delegation of certain functions of State Government to 
Electrician   Inspectors. 
  
56.      Protection for acts done in good faith. 
  
57. Amendments of the Land Acquisition Act, 1894
. 
  
58.        Repeals and savings.
 
  
THE SCHEDULE 
  
  
  
THE INDIAN ELECTRICITY ACT, 1910 
  
(Act No. 9 of 1910) 
[18th March, 1910] 
  
An Act to amend the law retaining to the supply and use of electrical energy. 
  
Whereas It Is expedient to amend the law relating to the supply and use of 
electrical energy; It is hereby enacted as follows- 
  
PART 1 
PRELIMINARY 
  
1.   Short title, extent and commencement. – 
  
(1) This Act may be called the Indian Electricity Act, 1910. 
  
(2)  It extends to the whole of India 1[except the State of Jammu and      
Kashmir]. 
. 
(3)   It shall come into force on such 2 [date] as the Central Government   
may, by notification in the Official Gazette, direct in this behalf. 
  
1.    Subs. by Act No. 3 of 1951, Sec. 3 and Sch., for “except Part B     
States”. 
2.  1
st  January. 1911. 
  
2.   Definitions. -In this Act, expressions defined in the Indian Telegraph Act, 
1885 (13 of 1885) 1[of in the Electricity (S upply) Act, 1948 (54 of 1948), 
have the meanings assigned to them in  either of those Acts], and unless 
there is anything repugnant in the subject or context, - 
  
(a)  “Appropriate Government” means  in relation to any works or 
electric installations belonging to, or under the control of, the 
Central Government or in rela tion to any mines, oilfields, 
railways, aerodromes, telegraphs, broadcasting stations and 
any works of defence, the C entral Government, and in any 
other case, the State Government; 
  
(b)  “Area of supply” means  the area within which alone a 
licensee is for the time being authorised by his license to 
supply energy; 
  
(c) “Consumer” means any person who is supplied with energy 
by a licensee or the Governm ent or by any other person 
engaged in the business of suppl ying energy to the public 
under this Act or any other law for the time being in force, 
and includes any person whose pr emises are for the time 
being connected for the purpose of receiving energy with the 
works of a licensee, the Govern ment or such other person, 
as the case may be; 
  
(d)  “Daily fine” means a fine for each day on which an offence is 
continued after conviction therefor; 
  
(e)   “Distributing main” means t he portion of any main with which 
a service line’ is, or is intended to be, immediately connected 
  
(f)   “Electric supply-line” m eans a wire, conductor or other 
means used for conveying, transmitting or distributing 
energy (whether by overhead li ne or underground cable), 
together with any casing, coati ng, 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 suppor t cross-arm, stay, strut or 
safety device erected to set up for that purpose. 
  
(g)  “Energy” means electrical energy- 
  
(i)   Generated, transmitted or supplied for any purpose, 
or 
  
(ii)  Used for any purpose except the transmission of a 
message; 
  
(h)  “Licensee” means any person licensed under Part 11 to 
supply energy; 
  
(i)   “Main” means any electric supply-Line through which 
energy intended to be, supplied to the public; 
  
1[(ii)  “Overhead line” means an el ectric supply-line which is 
placed above ground and ill the open air but does not 
include live rails of a traction system; 
  
(j)   “Prescribed” means prescri bed by rules made under this Act; 
  
(k)   “Public lamp” means an elec tric lamp used for the lighting of 
any street; 
  
(l)   “Service-Line” means any electric supply-line through which 
energy is, or is intended to be, supplied  
                         
(i)  To a single consumer ei ther from a distributing main 
or immediately from the supplier’s premises, or 
  
(ii)   From a distributing ma in to a group of consumers on 
the same premises or on adj oining premises supplied 
from the same point of the distributing main;; 
  
l(ll)   “State Electricity Board” in relation to any State means the 
State Electricity r that St ate under Section 5 of the 
Electricity(Supply)Act, 1948 ( 54 of 1948), and  Board which 
functions in that State under sections 6 and 7 of the said 
Act;] 
  
(m)  “Street” includes any way, r oad, lane, square, court, alley, 
passage or open space, whether a thoroughfare or not, over 
which the public have a right of  way, and also the roadway 
and footway over any public bridge or causeway; and  
  
(n)  “Work” includes electric supply-line and any building., plant, 
machinery, apparatus and any other thing of whatever 
description required to supply energy to the public and to 
carry into effect the objects of  a license or sanction granted 
under this Act or any other law for the time being in force. 
  
1.   Subs. by Act No. 32 of 1959.  
  
PART II 
SUPPLY OF ENERGY 
Licenses 
  
3.   Grant of licenses . – 
  
(1)  The State Government may, o il application made in the prescribed 
form and on payment of the prescr ibed fee (if any) grant after 
consulting the State Electricity B oard, 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 s upplied 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 lic ense and the grant ther eof the following 
provisions shall have effect, namely: - 
  
(a)   Any person applying for a license under this Part shall 
publish a notice of his applicat ion in the prescribed manner 
and with the prescribed particu lars, and the license shall not 
be granted- 
  
(i)   Until all objections rece ived by the State Government with 
reference thereto have been considered by it: 
  
  
Provided that no objection shall be so considered unless it is 
received before the expiration of  three months from the date 
of the first publication of such notice as aforesaid; and 
  
(ii)   Until, in the case of an application for a license for an area 
including the whole or any part of any cantonment 
aerodromes, fortress, arsenal, do ckyard or camp or of any 
building or place in the occu pation of the Government for 
defence purposes. the State Go vernment has ascertained 
that there is no objection to t he grant of the license on the 
part of the Central Government; 
  
(b)   Where an objection is re ceived 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 likes 
been given in the manner in whic h notices of meetings of 
such local authority are usually given; 
  
(d)   A license under this part- 
  
(i)   May prescribe such terms as to the limits within which, and 
the compulsory or permissive, 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 Sections 5 and 6,  or either of them, have been 
declared not to apply, every such license 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 Section 5 or Section 6; 
  
(e)   The grant of a license under  this Part for any purpose shall 
not in any way hinder or restri ct the grant of license to 
another person within the same  area of supply for a like 
purpose; 
  
(f)   The provisions contained in  the Schedule s hall 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, va riations or exceptions which 
the State Government is he reby empowered to make, apply 
to die undertaking authorised 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.  Revocation or amendment of licenses.-  
  
(1)  The State Government may, if i ll its opinion the public interest so 
require and after consulting the St ate Electricity Board, revoke a 
licence in any of the following cases, namely: - 
  
(a)   Where the licensee, in the opinion of the State Government, 
makes willful 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 wh ich the State 
Government may substitute ther efor by order under [Section 
4A, subsection (1), and before exercising any of the powers 
conferred oil 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 his license; 
  
(d)   Where in the opinion of t he 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; 
  
(e)   Where a licensee, in the opinion of the State Government, 
has made default in complying with any direction issued 
under Section 22A. 
  
(2)   Where in its opinion the public  interest so permits, the State 
Government may, oil the applicat ion or with the consent of the 
licensee, and after consulting the State Electricity Board, and the 
Central Government where that Go vernment 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 su ch terms and conditions as it 
thinks fit. 
  
(3)   No license shall be revoked under subsection (1) unless the State 
Government has given to the lic ensee not less than three months 
notice, in writing stating the gr ounds on which it is proposed to 
revoke the license and has cons idered any cause shown by the 
licensee within the period of th at notice, against the proposed 
revocation. 
  
(4)   Where the State Government might under subsection (1) revoke a 
license it may instead of revoking t he 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 laid effect as if they were contained in the license. 
  
4A.   Amendment of licenses.  – 
  
(1) Where in its opinion the public interest so permits, the State 
Government, on the application, of  the licensee or otherwise and, 
after consulting the State Electricity Board, and if the licensee is not 
a local authority, also  die local authority, if any, concerned, may 
make such alterations and amendments in the terms and conditions 
of a license, including the provis ions specified in Section 3. 
Subsection (2), clause (f), as it thinks fit: 
  
Provided that no such alteration s 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 appl ication under sub-section (1) 
proposing any alterations or amendment in his license; the 
following provisions shall have effect. Namely: - 
  
(a)   The licensee shall publish a notice of the application in the 
prescribed inlayer and with the prescribed particulars; 
  
(b)   The State Government shall not make any alterations or 
amendments until all objections re ceived by it with reference 
to the application within three m onths from the date of the 
first publication of the notice hive been considered; 
  
(c)   In the case of an appl ication proposing alterations or 
amendments in the area of supp ly comprising the whole or 
any part of any cantonment,, aer odrome, 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 altera tions 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 suppl y such as is referred to in 
clause (c) of sub-section (2), the State Government shall not make 
any alterations or amendments ex cept with the consent of the 
Central the Government. 
  
5. Provisions where licen se of a licensee, is revoked.- 
  
 (1)  Where the St Kate Governm ent revokes, Linder Section 4, sub-
section (1), the license of a licensee, the following provisions shall 
have effect, namely: - 
  
(a)   The State Government sha ll 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 e ffect 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 die licensee under this Act shall 
absolutely cease and determine; 
  
(b)   The State Government shall enquire from the State 
Electricity Board, and where the lincensee is not a local 
authority, also from any loca l 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, Filed 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 r equire the licensee to sell. and 
thereupon the license 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 licens ee and sell the undertaking 
to that local authority; 
  
(f)   If no sale of the undertaki ng is effected under any of the 
foregoing, clauses and if any  other person is wiling to 
purchase the undertaking, the State Government may by 
notice in writing requ ire the licensee to sell, and thereupon 
the licensee shall sell the undertaking to such other person. 
  
(2)   Where an undertaking is sold under subsection (I) the purchaser 
shall pay to tile licensee the purchase price of the undertaking 
determined in accordance with the provisions of subsection (1) and 
(2) Section 7A, 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 oil 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 B ank rate ruling at the time of 
delivery of the undertaking plus one per centum on the purchase 
price of the undertaking for the peri od 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 oil which the revocation of the license 
shall take effect, no notice li kes been issued to the licensee 
requiring him to sell the undertaken or where for any reason no sale 
of the undertaking has been effect ed under that subsection, the 
licensee shall have the option of dis posing of all lands, buildings, 
works, materials and plant belo nging 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 re moved and every such street to 
be reinstated, and recover the cost of such removal and 
reinstatement from the licensee. 
  
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 lic ense granted before the commencement 
of the Indian Electricity (Amendment) Act, 1959 (32 of 1959), 
oil the expiration of each such period as is specified in the 
license; and 
  
(b)   In the case of license gr anted oil or after the commencement 
of the said Act, oil the expiration of such period not 
exceeding 1[thirty] years and of, every such subsequent 
period, not exceeding 2[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 servi ng upon the licens ee a notice in 
writing of not less that] one year requiring the licensee to sell 
the undertaking to it at the ex piry of the relevant period 
referred to in this subsection. 
  
(2)   Where a State Electricity B oard has not been constituted, or if 
constituted, does not elect to purchase the undertaking, the State 
Government shall have the like opt ion to be exercised in the like 
manner of purchasing the undertaking. 
  
(3)  Where neither the State Electric ity 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 ex ercised in the like manner of 
purchasing the undertaking. 
  
(4)   If the State Electricity Board intends to exerci se the option of 
purchasing die undertaking under this section, it shall send all 
intimation in writing of such int ention to the State Government at 
least eighteen months before file expiry of the relevant period 
referred to in subsection (1) and if  no such intimation as aforesaid 
is received by the State Govern ment the State Electricity Board 
shall be deemed to have elected not to purchase the undertaking. 
  
 (5)   If the State Government in tends to exercise the option of 
purchasing the undertaking under this section, if shall send and 
intimation in writing of such intent ion to the local authority, if any, 
referred to in subsection (3) at least fifteen months before the 
expiry of the relevant period referr ed to in sub- section (1) and if no 
such intimation as aforesaid is re ceived 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 authori ty, 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 pur chased under this section, the 
purchaser shall pay to the licen see the purchase price determined 
in accordance with the provisions of sub-section (4) of Section 7A. 
  
1.   Subs. by Act No. 50 of 1991) for ‘twenty. 
2.   Subs. by Act No. 50 of 1991 for ‘ten’.  
  
7.   Vesting of the undertaking in the purchaser . -Where an undertaking is 
sold under section 5 or Section 6, t hen upon the completion of the sale or 
on the date on which the undertaki ng is delivered to the intending 
purchaser under subsection (3) of sect ion 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 on the intending 
purchaser, as die case may be,  free from any debt, mortgage or 
similar obligation of the licensees or attaching to the undertaking: 
  
Provided that any such debt, mort gage or similar obligation shall 
attach to the purchase money in substitution for the undertaking; 
  
(ii) The rights, powers, authoritie s, duties and obligations of the 
licensee under his license shall st and transferred to the purchaser 
and such purchaser shall he deemed to be the licensee: 
  
Provided that where t he undertaking is sold or  delivered to a State 
Electricity Board or the State Go vernment, the license shall cease 
to have further operation. 
  
7A. Determination of purchase price.  
  
(1)  Where an undertaking of a licensee,  not being a loca l authority, is 
sold under subsection (1) of Secti on 5, the purchase price of the 
undertaking shall be the market value of the undertaking at tile time 
of purchase or where the underta king has been delivered before 
the purchase under subsection (3) of th at section, at the time of the 
delivery of the undertaking and if there is any difference or dispute 
regarding such purchase price, t he same shall be determined by 
arbitration. 
  
(2)   The market value of an under taking for the purpose of subsection 
(1) shall be deemed to be the val ue of all lands, buildings, works 
materials and plant or the licensee suitable to, and used by him, for 
the purpose of the undertaking, ot her than (i) a generating station 
declared by the license not to fo rm part of the undertaking for the 
purpose of purchase, and ( ii) service-lines or other capital works or 
any part thereof which have been c onstructed at t he 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 die 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 th e purpose of the undertaking, but 
without any addition in respect of  compulsory purchase or of 
goodwill or of any pr ofits 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 aut hority, 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 underta king 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 licen see is purchased under Section 6, 
the purchase price shall be the value thereof as determined in 
accordance with the provisions of sub-sections (1) and (2): 
  
Provided that there shall be added to such value such percentage, 
if any, not exceeding tw enty per centum of that value as may be 
specified in the license on account of compulsory purchase. 
  
8. Provisions where -no purchase an d license revoked with consent of 
licensee. - Where, on the expiration of any  of the periods referred to 
Section 6, subsection (1) the underta king is not purchased by the State 
Electricity Board, the State Govern ment or the local authority, and the 
license is, on the applicati on 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 Stat e Government may proceed to take action as 
provided in Section 5, sub-section (4), proviso. 
  
9. Licensee not to purchase, or associ ate 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 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 s ub-section shall be construed to 
require the consent of the State Government for the supply of 
energy by one licensee to another  in accordance with the 
provisions of clause IX of the Schedule. 
  
(2) The licensee shall not at any ti me assign his license or transfer his 
undertaking, on any part thereof, by sale, mortgage, lease, 
exchange or otherwis e without the previous consent in writing of 
the State Government. 
  
(3) Any agreement relating to any transaction of the nature described 
in subsection (1) or sub-section (2), unless made with, or subject 
to, such consent as aforesaid, shall be void. 
  
10.  General power for Government to vary terms of purchase . – 
Notwithstanding anything in Sections 5, 6 and 8,  the State Government 
may, 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 ex pressly exempted from the liability 
by his license, or by order in writing of the State Government, 
prepare and render to the State Government or to such authority as 
the State Government 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, withi n the area of supply, or, when 
permitted by the terms of his licens e to lay down or place electric 
supply-lines without the area of supply, without that area- 
  
(a) Open and break up the so il and payment 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-sectio n (1) shall be deemed to authorise 
or empower a licensee, without the c onsent of the local authority or 
of the owner or occupier concer ned, as the case may be, to lay 
down or place any electric supply-I ine or other work in, through or 
against any building, or on, over or under any land’ not dedicated to 
public use whereon, wherever or whereunder any electric supply-
line work has not already been lawfully laid down or placed by such 
licensee: 
  
Provided that any support of an ov erhead line or any stay or strut 
required for the sole pur pose of securing in pos ition any support of 
an 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 su ch building or land, if the District Magistrate 
or, in a Presidency town, the Commi ssioner 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, stay or sturt has been 
fixed shows sufficient cause, the District Magistrate or, in a 
Presidency-town the Commissioner of Police may by order in 
writing direct any such support, st ay 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) sha ll be subject to revision by the 
State Government. 
  
(5) Nothing contained in sub-sectio n (1) shall be deemed to authorise 
or empower any licensee to open or break up any street not 
repairable by 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 authorised 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 Governm ent shall not give any such 
consent as aforesaid, until t he licensee has given notice by 
advertisement or otherwise as t he State Government may direct, 
and within such period as the Stat e Government may fix in this 
behalf. to the person above referred to, and until all representations 
or objections received ill accordance with the notice have been 
considered by the State Government. 
  
(6) In this section, “occupier” of any building or land means a person in 
lawful occupation of that building or land. 
  
13.  Notice of new works. – 
  
(1)  Where the exercise of any of t he 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 str eet, part of a street, railway, 
tramway, canal or waterway, the following provisions shall have 
effect, namely: - 
  
(a) Not less than one month bef ore commencing the execution 
of the works the licensee sh all serve upon the person 
responsible for the repair of t he street or par t 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, cana l or waterway (hereinafter in 
this section referred to as “the owner”), 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 ho rizontally, and intimation the 
manner in which, and the time at which, it is proposed to 
interfere with or alter any ex isting 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 in timates to the licensee that it 
disapproves of such works, section or plan, or approves 
thereof subject to amendmen t, the licensee may, within one 
week of receiving such inti mation, appeal to the State 
Government, whose decision, a fter 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 t he licensee within one months, it 
shall be deemed to have approved  of the works, section and 
plan, and the licensee, after givi ng not less than forty-eight 
hours, notice in writing to the repairing authority, may 
proceed to carry out the works in accordance with notice and 
the section and plan served under clause (a); 
  
(d) If the owner disapproves of su ch 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 t he 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 arbitr ation, and thereupon the matter 
shall unless settled by agreem ent, 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 hav e approved of the works, 
section and plan, and in t hat case, or where after a 
requisition for arbitration the matter has been determined by 
arbitration, the works may, upon payment or securing of 
compensation, by executed acco rding to the notice and the 
section and plan, subject to such modifications as may have 
been determined by arbitrati on or agreed upon between the 
parties. 
  
Explanation.-In clause (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 char acter or position is not be 
altered; 
  
(f) Where the works to be executed  consist of the laying of any 
under ground service-line immedi ately 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 exec uted 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 
hour’s notice in writing of hi s 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 despatch, and, if possi ble, 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, w here 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 breakdow n of an underground electric 
supply-Iine after giving notice in wr iting to the repa iring authority or 
the owner, as the case may be, of his intention to do so, place an 
overhead line without comp lying with the provisions of subsection 
(1): 
  
Provided that such overhead line shal l be used only until the defect 
in the underground electric suppl y-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 positio n of any pipe (not forming, in case 
where the licensee is not a local aut hority, part of a local authority’s 
main sewer), or of any wire unde r or over any place which he is 
authorised to open or break up, if such pipe or wire is likely to 
interfere with the exercise of hi s powers under this Act; and any 
person may alter position of any electric supply-Lines or works are 
likely to interfere with the lawful  exercise of any powers vested ill 
him. 
  
(2) In any such case as aforesaid t he following provisions shall, in the 
absence of an agreement to the c ontrary between the parties 
concerned, apply, namely: - 
  
(a) Not less than one month befor e commencing any alteration, 
the licensee or other person desiring to make the same 
(hereinafter in this section re ferred 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 ho rizontally, 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 effe ct that any question arising 
upon the notice, section or pl an shall be determined by 
arbitration, and thereupon the ma tter 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 an 
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 arbitr ation, 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 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 effe ct that he desires to execute 
the alteration himself and require s the operator to give such 
security for the repayment  of any expenses an may be 
agreed upon or, in default of  agreement, determined by 
arbitration; 
  
(f) Where a statement is serv ed upon the operator under cl

Excerpt shown. Open the full act in Lexace.

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