Judgement

HEGDE, J.: The only question for decision in this appeal is whether the notice issued by the appellant on June 23, 1961 under Section 6 of the Indian Electricity Act 1910 as amended by Act 32 of 1959 (to be hereinafter referred to as the Act) is valid. The High Court has come to the conclusion that it is not a valid notice.

2. On 4th January, 1923, the father of respondent No. 1 was granted a licence to supply electric energy within the area consisting of municipal limits of Dabhoi and the territories comprised within half mile radius from the municipal boundary lines by the Government of Baroda under the Baroda Electricity Act Samvat 1964 (Act 1 of 1964). The said Co. was known as Dabhoi Electricity Co. Respondent No. 1 was at all material times the holder of this licence.

3. The said licence conferred an option on the Government to purchase the undertaking in accordance with the terms of the licence. Clause 26 (a) of that licence is material for our present purpose. That clause reads:

"The option of purchase given by Section 8 of the Act shall be exercisable on the expiration of 40 years computed from the commencement of this licence and thereafter on the expiration of eve