Judgment

DAS, J. : This is an appeal arising out of a judgment delivered on 27-4-1951 by a Bench of the Madras High Court in C. M. P. No. 4697 of 1951 filed under Art. 226 of the Constitution for the issue of a writ of Certiorari" or other appropriate writ to call for the records and quash the order of the Government passed under S. 4(1) of the Madras Act 43 of 1949 declaring the undertaking of the appellant company to vest in the Government.

2. The appellant company was formed and registered under the Indian Companies Act in 1924 with the object, inter alia , of generating and supplying electrical energy to the public in Rajahmundry. In 1949 the Madras Legislature passed the Madras Electricity Supply Undertakings (Acquisition) Act, 1949. The Act received the assent of the Governor-General on 18-1-1950 and was published in the Official Gazette on 24-1-1950. Upon the Constitution of India coming into force on 26-1-1950 the Act was submitted to the President for his certification and on 12-4-1950 the President certified that the Act should not be called in question in any Court on the ground that it contravened the provisions of Cl. (2) of Art. 31 or it contravened the provisions of sub-section (2) of S. 299, Government of India Act, 1935.

By an order in writing made on 2-9-1950 the Government of Madras acting under S. 4 (1) of the Act declared that the undertaking of the appellant company should vest in the Government on the date specified therein. Under the proviso to S. 4(1) the Government from time to time postponed the date of vesting and 2-4-1951 was the last extended date fixed for such vesting. On 29-3-1951 the appellant company filed C.M.P. No. 4697 of 1951 under Art. 226 for quashing the order of the Government.

3. Shortly stated the contentions of the appellant before the High Court were that the Act was ultra vires in that (1) it was beyond the legislative competency of the Madras Legislature to enact it, (2) it was not enacted to subserve any public purpose and (3) the compensation provided for was illusory. The High Court repelled each and all of the aforesaid contentions of the appellant company. It held that the legislation was with respect to electricity under entry 31 of the Concurrent List in the Seventh Schedule to the Government of India Act, 1935 and was not a legislation with respect to corporations under entry 33 in List I as contended by the appellant and that, therefore, the Madras Legislature was competent to enact it.

It further held that the Act having received the certificate of the President the challenge based on an alleged absence of public purpose or the illusory nature of the compensation was shut out and could not be raised. The High Court, however-held that certain sections and R. 19(2) of the Rules framed under the Act were invalid and subject thereto dismissed the application of the appellant company. The High Court granted leave to the appellant company to appeal before this court. The appeal has now come up for hearing before us.

4. Learned counsel appearing in support of the appeal has not pressed before us the contention raised in the High Court as to the absence of public purpose or the illusory nature of the compensation provided by the Act. He has confined his submissions to the question of the legislative competency of the Madras Legislature to enact this piece of legislation. In the High Court the contest centered round the question whether the Act was a law with respect to electricity under entry 31 of the Concurrent List or with respect to corporations under entry 33 in List 1.

The High Court held that the Act was, in pith and substance a law with respect to electricity and was, therefore, within the legislative competency of the Provincial Legislature. In his arguments before us learned counsel contended that the Act is in substance and effect one for the acquisition of an electrical undertaking and, as such, is ultra vires because ----

(a) the acquisition of an electrical underta