- (1.) The exercise of option by the appellant under the Indian Electricity Act, 1910 (hereinafter referred to as the said Act) to purchase the respondent undertaking for supply of electricity to Malerkotla town has given rise to a dispute which has dragged on for 37 years!
(2.) In the pre-independent era, on 22.02.1947 the rulers of the erstwhile Malerkotla State had granted a license to M/s Bhagwan Dass and Sons/respondent for supply of electricity to Malerkotla town which was subsequently carried out under the name and style of Malerkotla Power Supply Company. The said company was generating its own power by installing diesel generating sets, but on increase of demand stopped generating the power and started purchasing the same in bulk supply from Punjab State Electricity Board. On the expiry of twenty years from the date of grant of license, an option was available to the appellant before us i.e. Punjab State Electricity Board under the said Act to purchase the undertaking which was duly exercised by issuance of a notice on 29.01.1976 requiring the lands, buildings, work materials, equipment machinery and plant to be delivered to the Board on 21.02.1977 for which the Board had to pay the purchase price to the respondent. This was so done.
(3.) The ordeal for the respondent began thereafter on the issue of evaluation of the assets and liabilities when a communication dated 21.02.1977 (Annexure P2) was sent by the appellant to the respondent seeking to work out the tentative purchase price of the undertaking at Rs. 30 lacs inclusive of 20 per cent solatium on account of compulsory purchase. However, simultaneously in the same letter, the amounts due from the respondent were also set out as a result of which the amounts due exceeded the purchase price tentatively worked out. The amounts due specified were as under:- JUDGEMENT_51_TLP&H0_2014_1.html;