Section 7 in The Punjab Electricity (Emergency Powers) Act, 1941
7. Power to contract.
(1)During such period as the public electricity service is in the possession and control of the .[State] Government the [State Government shall have power to acquire and hold property, both movable and immovable, and to transfer any property held by it for and on behalf of the public electricity service and to contract and to do all other things necessary for the purposes of its efficient management.(2)All debts and obligations incurred, all contracts entered into and all matters and things engaged to be done by the [State] Government for and on behalf of the public electricity service shall be deemed to have been incurred, entered into or engaged to be done by the said public electricity service.
