Judgement

Appeal (No.100 of 1947) from a judgment and decree of the High Court in its appellate jurisdiction (October 1, 1946) affirming a judgment of the High Court in its original civil jurisdiction (April 5, 1945).

The following facts and statutory provisions are taken from the judgment of the Judicial Committee. On June 26, 1924, the government granted a licence—The Hubli Electric Licence, 1924—to Amte and Co., Hubli, and that licence was on January 28, 1925, duly transferred to the appellants with the consent of the government. The result of that transfer was that for all the purposes of the Act and the licence the appellants stood in the shoes of the original licensee. It was unnecessary to refer in detail to the provisions of the licence. The area of supply and compulsory area of supply were set out. No con dition of the licence (save one which was shortly after the grant of the licence complied with) was expressed to be a condition the breach of which was declared to render the licence liable to revocation. No material variation was made in any of the conditions set forth in the schedule to the Act. The distributing mains referred to in cl. VI (i.) of the schedule were duly laid down shortly after the grant of the licence, and thereupon the appellants began to supply electricity under the licence.

It appeared that the appellants were during the war faced with difficulties in the conduct of their undertaking. It was not necessary to consider their difficulties at length. Suffice it to say that at the end of 1941 the government demanded and received explanations as to an interruption in the supply, but there was nothing to show whether or not the government was satisfied with the explanations which were given. In December,

1942, the appellants informed their customers and the government that they proposed to shut down their works altogether on December 18 for the purpose of a thorough overhaul and stated that they anticipated resuming supply by January 1,

1943. On February 10, 1943, the government’s electrical engineer paid a visit of inspection to the appellants works and made a report to the government. Following on that report the following letter was, on April, 3 1943, sent by the government to the appellants

" 3rd April, 1943. " From

" The Deputy Secretary to the Government of Bombay, " Public Works Department.

"To

Law Rep. 76 Ind. App. 57 ( 1948- 1949) Hubli Electricity C ompany, Limited V. Province of Bombay 244

" Messrs. The Hubli Electricity Company, Limited. " Subject—Hubli Electric Licence, 1924. " Dear Sirs,

“The Electric Inspector, Bombay Province, who recently " visited your Company reports as under — " There is no qualified Engineer or other person in " charge of the Supply Companys station and works, either " electrical or mechanical. There are six generating " sets in the power house.

" Description of the Sets. Condition of the Sets.

" 1. 750 B.H.P. engine with Unserviceable owing to

600 KVA. generator. broken crankshaft.

" 2. 480 B.H.P. engine with Unserviceable owing to " 296 KW, generator. broken crankshaft.

" 3. 350 B.H.P. engine with Unserviceable, cylinder heads " 275 KVA. generator. and piston heads cracked.

" 4. 150 B.H.P. engine with Has been dismantled and new " 130 KVA generator. parts are being fitted from the Railway workshop.

" 5. 150 B.H.P. engine with The engine is in such bad " 130 KVA. generator. condition that not more than 60 KW load can be put on the generator.

“ 6. 115 B.H.P. engine with The set is in a very bad condition " 82 KVA. generator. and repairs are badly needed.

" ‘ It will be seen from the above that only one set " No. (5.), can be used for obtaining power, the maximum " being 60 KW against the Companys average peak load " of 180 KW.

“ 2. Government is satisfied that there are sufficient " grounds for revoking your licence under s. 4, sub-s. 1, " of the Indian Electricity Act but it is pleased to permit the " licence to remain in force under

s. 4, sub-s. 2, of the Act " su