The Indian Electricity Act, 1910, 9 of 1910 (Rep., Act 36 of 2003)

Section 4. (1) The Local Government may, if in its

Repealed or not in force · As amended up to 2026-08

4. (1) The Local Government may, if in its Revocation opinion the public interest so requires, revoke a or amend. ment of j license in any of the foll.owing cases, namely :- licenses, (a) .where the licensee, in the opinion of the Local 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' licenss to render it liable to revocation; (c) where the licensee fails, within the period fixed in this behalf by his license or any longer `E 2` .. . ............. --- , [ACT `EX` Blectricity. (Part II .-Su~ply `of` Bnergy.") longer period which the Local Government may substitute therefor by order under sub-section (3), clause (b), 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' Local Government, that he is in a position fully and eiticiently to discharge the duties and obligations imposed on him by his license, `O5` - `O5` - (ii) `to` make the deposit or furnish the security required by his license; - (d) where the licensee is, in the opinion of the Local Government, unable, by reason of his insolvency, fully and efficiently to discharge the duties and obligations imposed on him by his license. `(8)` Where the Local Government might, under sub-section ( I ) , 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. `(8)` Where in its opinion the public interest so permits, the Local Government may, on the application or with the consent of the licensee, and, if the licensee is not a local authority, after consulting the local authority (if any) concerned,- - (a) revoke a license as to the whole or any part of the area of supply upon such terms and conditions as it thinks fit, or - (b) make such alterations or amendments in the terms and conditions of a license, including i i `1910.1` Elzctri-ci3y.. (Part 11.-Supply `of` Energy.] ing the provisions specified in section 3, sub-section `(2),` clause V), as it thinks fit. 5. Where the Local Government revokes, under Provisione section 4, sub-section ( I ) , the license of a licensee, not oense where of li- li- where of li- li- of li- li- li- li- li- being a local authority, the following provisions shall censee, not - have effect, namely :- local being a being a a oense where of li- li- where of li- li- of li- li- li- li- licensee, not local being a being a a is - (a) the Local Government shall serve a notice of ;,",h;:$.ys the revocation upon the licensee, and, where the whole of the area of supply is included in the area for which a single local authority is constituted, upon that local authority also, and shall in the notice fix a date on which the revocation shall take effect; and on and with effect from that date all the powers and liabilities of the licensee under this Act shall absolutely cease and determine; - (b) where a notice has been served on a local authority under clause (a), the local authority may, within three months after the service of tohe notice, and with the written consent of the Local Government, by notice in writing, require the licensee to sell, and thereupon the licensee shall sell, the undertaking to the local authority on payment of the value of all lands, buildings, works, materials and lant of the licensee suitable to, and use by him d? for, the purposes of the undertaking, other than a generating station declared by the license not to form part of the undertaking for the purpose of purchase, such value to be, in case of difference or dispute, determined by arbitration : Provided that the value of such lands, - buildings, works, materials and plant shall be deemed to be their fair marketvalue at the time of purchase, due regardl being I `644` Electricity. `[ACT 1%` (Pwt II.-Supply of Energy.] being had to the nature and condition f o ~ the time being of such lands, buildings* works, materials and plant,, and to the state of rep,air thereof, and to the ciscumstance that they are in such a position as to `be` ready for immediate working, and to the suitability of the same for the purposes 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 anx similar considerations ; d2 (c) where no purchase has been effected by the local authority under clause (b), and any other person is willing to purchase the undertaking, the Local Government may, if it thinks fit, with the consent of the licensee, or without the consent of the licensee in case the price is not less than that for which the local authority might have purchased the same, require the licensee to sell, and thereupon the licenses shall sell, the undertaking to ~ u c h other person ; (d) where no purchase has been effected under clause (b) or clause (c) within such time as the Local Government may consider reasonable, or where the whole of the ares of supply is not included in the area for ,which a single local authority is constituted, the Local Government shall have the option of purchasing the undertaking and, if the Local Government elects to<' purchase, the licensee shall sell the undertaking to the Local Government upon terms and conditions similar to those set forth in clause (b); (a), mhwe IQIO.]' .Etectricity. - 65 (Part II.-Supply `of` Efiergy .) (e) where a purchase has been eft'ected under any of the preceding clauses,- (i) 'the undertaking shall vegt in `I&@` purchasers free faom any debts, . . .mortgages ,or ,similar obligations of the licensee -or attaching to the undertaking : @ Provided that any such debts, mortgages or similar obligations shall attach! to the purchase-money, in substithtion for the undertak: ing ; and (ii) the revocation of the license shall extend only to the revocation of the rights, powers,, authorities, duties and obligations of the licensee from whom the undertaking is purchased, and, save as aforesaid, the license shall remain in full force, and the purchaser shall be deemed to be the. licensee : Provided that where the h c a l Government elects to purchase .nnder clause (d), the license shall, after purchase, in so far as the Zocal Government is concerned, cease to have any further operation ; . . (f) where no purchase has been effected under any of the foregoing clauses, 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 date on which the same . . ~. ~ ~ - . - . . [ACT ix. EZectr6city. (part I I .-Supply o f Energy.) same became exerciseable, the Local 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 ; (g) if the licensee has been required to sell the undertaking, and if the,salb has not been completed by the date fixed in the notice . issued under'. clause `(a),` the purchaser may, with the previous sanction of the Local Government, work the undertaking pending the completion of the sale.

Source: India Code