Sudhamay Basu, J. - (1.) This Rule has been obtained to quash the order of revocation, dated the 16th July, 1973, another notice also dated the 16th of July, 1973 requiring the Vishnupur Electric Supply and Industrial Development Company limited to sell the undertaking to the West Bengal State Electricity Board and deliver the same to the Board on the 10th of August, 1973, a letter dated the 25th of July, 1973 requiring the said Company to make inventory of the assets and to do diverse other acts for the purpose of handing over the undertaking and a further notification, dated the 27th of May, 1971 purporting to alter the option of purchase.
(2.) The petitioner No. 1 is a Company incorporated under the Indian Companies Act, 1913 on Dec. 22, 1939 with the objects inter alia of supplying electrical energy in the town of Vishnupur in the District of Bankura and its suburbs. The State Government by a Notification No. 2552-MP, dated Nov. 6, 1950, in exercise of the power conferred by Section 3 of the Indian Electricity Act, 1910 (Act IX of 1910), granted the said Company a licence known as the Vishnupur Electric Licence, 1950.
(3.) The petitioner-Company erected power station with diesel generating plants and in 1953 illuminated the town of Vishnupur with electric lights. It started with a few domestic connections and supplied street lights free of charge. From the year 1957-58 there was a change over from power generating plant to the receiving of bulk supply from the West Bengal State Electricity Board and that arrangement continued. The Commissioner and Secretary of the Government of West Bengal served with a show cause notice, dated Jan. 30, 1973 under Section 4 (3) of the Indian Electricity Act, 1910 as to why the licence granted to it should not be revoked as in the opinion of the Government the financial position of the licensees was such that they were unable to discharge the duties and obligations imposed on them. On April 25, 1973 the petitioner-Company sent a representation against show cause notice which is Annexure 'B' to the petition. After that an order of revocation was served on the Company under Section 4 (1) of the Indian Electricity Act which is Annexure 'C" to the petition. The said order of revocation was followed by another notice under Section 5 (3) (1) (c) of the Indian Electricity Act, to the Company requiring it to sell the undertaking to the West Bengal State Electricity Board and to deliver the undertaking on August 10, 1973. The notice is Annexure 'D' to the petition. On July 25, 1973 another letter was addressed to the petitioner-Company to arrange for taking over and preparing the inventory of stores. The said letter is Annexure 'E' to the petition. It is alleged in the petition that order of revocation and the subsequent notice Annexure 'D' were not bona fide. It is stated that on the expiry of the period of licence of the petitioner-Company from the date of notification of the grants of licence, namely on the expiry of twenty years, it was given a go-by by the issuance of a notification, dated August 27, 1971 by the Government of West Bengal, Department of Commerce and Industries (Power Branch) which made alterations and amendments in Clause 15 of the Vishnupur Electricity Licence, 1950. An option for purchase given by Section 6 of the Act was to be first exercisable on Nov. 22, 1975 and thereafter at the end of every subsequent period of five years during the subsistence of the licence. The petitioner-Company on July 10, 1973 made a demand for justice to the State of West Bengal against the order of revocation on grounds which are stated in para. 18 of the petition. It is alleged in the petition that Section 4 (1) of the Indian Electricity Act gives no power to the State Government to issue the order of revocation. It was also stated in the petition that Section 4 (1) of the Indian Electricity Act, 1910 is ultra vides the Constitution, but the said point was not argued in course of hearing.;