Dipak Kumar Sen, J. - (1.) The United Provinces Electric Supply Co. Ltd. (in voluntary liquidation), the assessee, used to carry on business in generation and supply of electricity at Allahabad and Lucknow under two licences, issued under the Indian Electricity Act, 1910, both dated January 1, 1914, for a period of 50 years.
(2.) On the expiry of the said licences, the Government of Uttar Pradesh exercised its rights under the Indian Electricity Act, 1910, and took over the said undertakings of the assessee at Allahabad and Lucknow on purchase with effect from September 17, 1964, and the said undertakings vested in the Uttar Pradesh State Electricity Board, hereinafter referred to as "the Board". Under Section 7A of the Indian Electricity Act, the assessee became entitled to payment of compensation for the compulsory purchase of the said undertakings.
(3.) The U. P. State Electricity Board paid to the assessee Rs. 62,60,668 and Rs. 41,35,008, respectively, and also made certain adjustments of the assessee's liabilities in respect of the said undertakings by way of compensation aggregating Rs. 3,35,84,552. The assessee contended that such compensation was insufficient and accepted the same without prejudice to its rights to claim further compensation under Section 7A of the Indian Electricity Act, 1910. The difference or dispute over the compensation payable to the assessee was referred to arbitration. The arbitrators failed to make any award and the disputes were referred to an umpire appointed in the arbitration proceeding for adjudication. The Board thereafter moved the civil court at Lucknow and obtained an order for stay of the proceedings before the umpire. At the material time, the proceedings before the umpire remained stayed under the said order of the civil court.;