1. The material facts and proceedings leading up this appeal are, inter alia, that the Government of United Provinces of Agra and Oudh, the predecessor of the present Government of Uttar Pradesh granted a licence under the Indian Electricity Act, 1910 , dt. the 28th June 1929, for generation and distribution of electricity in the districts of Saharanpur, Muzaffarnagar and Meerat in the then province of Uttar Pradesh in favour of one Martin and Co. The said Martin and Co. assigned the said licence in favour of Upper Jumna Valley Electricity Co. Ltd. the respondent No. 1 herein, whereupon the latter became a licensee within the meaning of the said Act of 1910.

2. Under cl.12(l) of the said Licence an option was conferred on the State Government to purchase the electricity undertakings of the licensee after the expiry of 35 years from the commencement of the licence and also on the expiration of every subsequent period of 20 years during the subsistence of the licence on one years notice and upon payment of the market value thereof at that time.

3. The respondent 1 set up its undertakings at Saharanpur, Muzaffarnagar, and Meerat for supply and distribution of electricity in the specifi