JUDGMENT

VENKTACHALIAH, J. :— In these writ petitions under Art. 32 of the Constitution of .India, three electric supply undertakings in the State of Tamil Nadu, namely, Vellore Electric Corporation Ltd, Nagapatam Electric Supply Co. Ltd., and Kumbakonam Electric .Supply Corporation Ltd., challenge the constitutional validity of the Tamil Nadu Private Electricity Supply Undertakings (Acquisition) Act, 1973, (Act for short) on the ground that the Act, which envisages the acquisition of the Electric Supply Undertakings of three petitioners, as violative of Arts. 14, 19(l)(f), 19(l)(g) and 31 of the Constitution.

These writ petitions were heard along with Writ Petition (Civil) Nos. 457 and 458 of 1.972, pertaining to the acquisition of Tinsukhia Electric Supply-Co. Ltd., and Dibrugarh Electric Supply Co. Ltd., under the provisions of the Tinsukhia and Dibrugarh Electric Supply Undertakings (Acquisition) Act, 1973, (Assam Act 1973) and the main contentions touching the constitutionality of such State laws, providing for acquisition of private electricity undertakings - independently of and without recourse to the option to purchase envisaged by the terms of licences and under the provisions of Ss. 6, 7 and 7A of the Electricity Act 1910 - are considered in the main judgment in the said WP Nos. 457 and 458, separately rendered today.

2. The scheme and the broad features of The Tamil Nadu Private Electricity Supply Undertakings (Acquisition) Act, 1973, which received the assent of the President on 30th September, 1973, are that the "Act" enables and provides for the acquisition of the private undertakings engaged in the business of supplying electricity to the public other than those belonging to and are under the control of the State Electricity Board or the local authorities.

Section 2 of the Act declares that the "Act" is for giving effect to the policy of the State towards securing of the Directive Principles, specified in Cls. (b) and (c) of Art. 39 of the Constitution of India. Section 3 is the interpretation clause. Section 4 empowers the State Government to declare, by order in writing. that any undertaking shall vest in Government on the date specified in such order the proviso to S. 4 enables the Government to modify, by advancing or postponing the date originally fixed in such order, or the modified date; or to cancel such order. The proviso is, however, subject to a limitation which is in terms following :

"So, however, that no such order shall be modified or cancelled after the undertaking has vested in the Government but such cancellation shall not be deemed to prevent the Government from taking any proceeding de novo in respect of such undertaking under this Act."

The mode of promulgation and the incidence and consequence of an order under sub-sec. ( 1) of S. 4. are envisaged in sub-secs. (3), (4) and (5) of Ss. 4 and 6 of the Act. Sub-sections (3),(4) and (5) of S. 4 provide :

"(3) Every order under sub-sec.(1) shall be -

(a) served on the licensee in the prescribed manner and

(b) published in such manner as the Government may deem fit.

(4) On the vesting date the undertaking, to which the order under sub-sec. ( 1) relates, shall subject to the provisions of S. 6. stand transferred to, and vest in, the Government.

(5) Every licensee who, after the vesting date, was in possession of, or deriving any benefit from the undertaking vested in the Government under sub-sec. (1) shall be liable to pay to the Government, for the period. after such vesting, for which he was in such possession or deriving such benefit. an amount as compensation for the use occupation or enjoyment of that undertaking as the prescribed authority may fix in the prescribed manner. Such authority shall take into consideration such factors as may be prescribed."

We shall refer to S. 6 and its impact at an appropriate stage later.

Section 5 of the "Act- envisages the amount to be given to the licensee on whom an order has been served under S.4 and provides for its