Beg, J. - (1.) This is a defendant's appeal by special leave against the judgment of the High Court of Andhra Pradesh decreeing, with costs, the claim of the plaintiffs respondents, the Andhra Pradesh State Electricity Board and the Andhra Pradesh State Government for Rupees 3,34,443.77 as arrears of electricity charges said to be due from the Vijayawada Municipal Council in respect of amounts which were shown in its books as payable to it by consumers of electricity.
(2.) The plaintiff's claim flowed from the terms of the Andhra Pradesh (Andhra Area) Electricity Supply Undertaking (Acquisition) Act 15 of 1954 (hereinafter referred to as the Act), the provisions of which were applied to the electricity undertaking of the appellant Municipal Council with effect from 22nd December 1961, by the Government of Andhra Pradesh. The rights of the State were transferred to the Andhra Pradesh Electricity Board the co-plaintiff respondent. The amounts claimed were shown in the books of the Council's electricity undertaking on the date of its acquisition as due to it from direct consumers of electricity to whom it used to sell electricity supplied to it in bulk.
(3.) The "Electricity Undertaking" was taken over by the Government by an order under Sec. 4 (1) of the Act. This section provided: "4. Power of Government to take over any undertaking:- (1) The Government may, in respect of any undertaking not taken over by them before the commencement of this Act, by order in writing, declare that it shall vest in them on the date specified therein, such date not being earlier than four months from the date of the declaration.";