THE OKARA ELECTRIC SUPPLY CO. LTD., AND ANOTHER versus THE STATE OF PUNJAB AND ANOTHER

THE OKARA ELECTRIC SUPPLY CO. LTD., AND ANOTHER versus THE STATE OF PUNJAB AND ANOTHER

Clause 11 of the notification is intra vires Section 28 of the Indian Electricity Act, 1910, as the authority to grant sanction for supplying energy necessarily includes power to impose conditions concerning the compulsory acquisition of the undertaking upon payment of compensation. Section 28 is valid and does not offend Articles 19 or 31 of the Constitution since it is an existing law and imposes reasonable restrictions in the interests of the general public. The petitioners took sanction subject to these conditions prior to the Constitution; therefore, their claim fails.

Parties
Petitioner: The Okara Electric Supply Co. Ltd.; Petitioner: Shrimati V. V. Oberoi; Respondent: The State of Punjab; Respondent: Punjab State Electricity Board
Jurisdiction
India
Judgment Date
13 November 1959
Procedural Posture
Petition Under Article 32 of the Constitution of India for Enforcement of Fundamental Rights / Supreme Court Original Jurisdiction – Final Judgment
Outcome
Petition dismissed
Legal Topics
Compulsory Acquisition, Reasonable Restrictions, Existence of Fundamental Rights, Ultra Vires, Interpretation of Statutes
Constitutional Law Administrative Law Electricity Law Compulsory Acquisition Reasonable Restrictions Existence of Fundamental Rights Ultra Vires Interpretation of Statutes

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Parties

The Okara Electric Supply Co. Ltd.

Petitioner

Shrimati V. V. Oberoi

Petitioner

The State of Punjab

Respondent

Punjab State Electricity Board

Respondent

Procedural Posture

Petition Under Article 32 of the Constitution of India for Enforcement of Fundamental Rights / Supreme Court Original Jurisdiction – Final Judgment

Legal Issues

  1. 1 Whether clause 11 of the government notification (regarding compulsory acquisition of the petitioners' electricity undertaking) is ultra vires Section 28 of the Indian Electricity Act, 1910?
  2. 2 If clause 11 is justified by Section 28, whether Section 28 itself is void as offending Articles 19(1)(f), 19(1)(g), and 31 of the Constitution?

Ratio Decidendi

Clause 11 of the notification is intra vires Section 28 of the Indian Electricity Act, 1910, as the authority to grant sanction for supplying energy necessarily includes power to impose conditions concerning the compulsory acquisition of the undertaking upon payment of compensation. Section 28 is valid and does not offend Articles 19 or 31 of the Constitution since it is an existing law and imposes reasonable restrictions in the interests of the general public. The petitioners took sanction subject to these conditions prior to the Constitution; therefore, their claim fails.

Court Disposition

Petition dismissed

Orders

  • Petition dismissed with no order as to costs