Judgment

BEG, J. :- This is a defendants appeal by special leave against the judgment of the High Court of Andhra Pradesh decreeing, with costs, the claim of the plaintiffs respondents, the Andhra Pradesh State Electricity Board and the Andhra Pradesh State Government for Rupees 3,34,443.77 as arrears of electricity charges said to be due from the Vijayawada Municipal Council in respect of amounts which were shown in its books as payable to it by consumers of electricity.

2. The plaintiffs claim flowed from the terms of the Andhra Pradesh (Andhra Area) Electricity Supply Undertaking (Acquisition) Act 15 of 1954 (hereinafter referred to as the Act), the provisions of which were applied to the electricity undertaking of the appellant Municipal Council with effect from 22nd December 1961, by the Government of Andhra Pradesh. The rights of the State were transferred to the Andhra Pradesh Electricity Board the co-plaintiff respondent. The amounts claimed were shown in the books of the Councils electricity undertaking on the date of its acquisition as due to it from direct consumers of electricity to whom it used to sell electricity supplied to it in bulk.

3. The "Electricity Undertaking" w