Sinha, J. - (1.) The petitioner in this case is the East India Electric Supply and Traction Co., Ltd., a company incorporated in 1920 under the Indian Companies Act for supplying electrical energy in the Hooghly-Chinsurah area. The company has from time to time supplied and is still now supplying electrical energy to other areas but we are not concerned with that in this application. The company is a 'licensee' under the Indian Electricity Act, 1910 (hereinafter referred to as the 'Electricity Act'). Section 3 of the Electricity Act confers powers on the State Government to grant to any person a licence to supply electrical energy in a specified area and also to lay down or place electric lines for the convenience and transmission of energy. The section also lays down certain special provisions to be followed in the granting of such licence.
(2.) By virtue of section 3(2)(f) of the Electricity Act, the provisions contained in the schedule to that Act are deemed to be incorporated with and to form part of every licence granted under it. The schedule appended to the Act consists of a number of conditions covering all possible aspects of an electrical undertaking meant to supply electrical energy to the public.
(3.) Section 11 of the Electricity Act requires every licensee to make an annual statement of account in such form, and containing such particulars, as may be prescribed. According to the Schedule, the accounts, unless they be of a licensee which is a local authority, are to be audited by approved auditors.;