HUBLI ELECTRICITY CO LTD Vs. PROVINCE OF BOMBAY

JUDGEMENT

(1.) In the proceedings out of which this appeal arises the appellants sought a declaration that the purported revocation by the respondent Government on January 28, 1944, of a licence to supply electricity to the town of Hubli was invalid and asked for consequential relief on the footing of that declaration. Their suit was dismissed by the High Court of Judicature at Bombay acting in its original jurisdiction and that decision was affirmed by that Court in its appellate jurisdiction (Stone C.J. dissenting). Many matters at issue in the suit are not now in controversy. The substantial questions before their Lordships are confined to questions of construction arising under the Indian Electricity Act (IX of 1910).

(2.) Under that Act the Government was empowered to grant to persons to be selected by the Government licences to supply electrical energy in areas to be specified in the licences and to lay down electric supply lines for the transmission of such energy.

(3.) Secs.3(2) and 4(7) and (2) of the Act so far as relevant provided as follows : 3. (2) In respect of every such license and the grant thereof the following provisions shall have effect, namely : (d) a licence under this Part (i) may prescribe such terms as to the limits within which, and the conditions under which, the supply of energy is to be compulsory or permissive, and as to the limits of price to be charged in respect of the supply of energy, and generally as to such matters as the Provincial Government may think fit; (e) the grant of A license under this Part for any purpose shall not in any way hinder or restrict the grant of a 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 licence 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 Provincial Government is hereby empowered to make, apply to the undertaking authorised by the licence: Provided that, where a licence is granted in accordance with the provisions of 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 licence.