Judgment

GAJENDRAGADKAR J. : The principal question which arises in these two appeals is related to the validity of S. 24 of the Madras Electricity Supply Undertakings (Acquisition) Act, 1954 (XXIX of 1954) (hereinafter called the Act). That question arises in this way. The appellant, the West Ramnad Electric Distribution Co. Ltd., Rajapalayam, was incorporated in 1935 to carry on, within the State of Madras and elsewhere, the business of an electric light and power company, to construct, lay down and establish and carry on all necessary installations, to generate, accumulate, distribute and supply electricity under a licence granted under the Indian Electricity Act of 1910. On the 24th January, 1950, the Madras Legislature passed an Act (XLIII of 1949) for the acquisition of undertakings supplying electricity in the Province of Madras. Under the said Act, the Government was empowered to acquire any electrical undertaking on payment of compensation according to the relevant provisions of the said Act. In pursuance of the provisions of section 4(1) of the said Act. the respondent, State of Madras passed an Order G. O. M/s. No. 2059 no the 17th May, 1951, declaring that the appellant