Sir John Beaumont.-

These consolidated appeals are from a decree of a Division Bench of the High Court of Judicature at Allahabad, dated 22nd August 1941, and from an earlier decree of a Division Bench of that Court, dated 30th April 1940, both decrees being made in the winding-up of the Lower Ganges and Jumna Electricity Distributing Co., Ltd., (hereinafter called the company).

2. The question which calls for decision is whether certain mortgage debentures issued by the company for the purpose of securing a sum of Rs. 3 lacs with interest, and secured by a debenture trust deed, constitute a valid charge on the undertaking and assets of the company, or whether the charge upon the undertaking intended to be created in favour of the debenture holders is void by reason of the provisions of S. 9, sub-Ss. (2) and (3), Electricity Act IX [9] of 1910 (hereinafter called the Act). These sub-sections are in the following terms :

"9. (2) The licensee shall not at any time assign his licence or transfer his undertaking, or any part thereof, by sale, mortgage, lease, exchange or otherwise without the previous consent in writing of the Provincial Government.

(3) Any agreement relating to any transa