Section 3 in The Indian Electricity (Bihar Amendment) Act, 1974
3. Substitution of new section for Section 6 of Act (IX of 1910).
- For Section 6 of the said Act, the following section shall be substituted, namely:-"6. Purchase of Undertakings. - (1) Where a licence has been granted to any person, the State the Electricity Board shall, on the expiration of the period for which licence may be presently valid on the date the Indian Electricity (Bihar Amendment) Ordinance, 1974 comes into force, or on the expiry of subsequent period, not exceeding three years, have the option of purchasing the undertaking and such option shall be exercised by the State Electricity Board serving upon licensee a notice in writing of not less than six months requiring the licensee to sell the undertaking on the expiry of the relevant period referred to in this sub-section.(2)If the State Electricity Board intends to exercise the option of purchasing the undertaking under this section, it shall send an intimation in writing of such intention to the State Government at least one year before the expiry of the relevant period referred to in sub-section (1) and if no such intimation as aforesaid is received by the State Government the State Electricity Board shall be deemed to have elected not to purchase the Undertaking.(3)Where the State Electricity Board has not elected to purchase the Undertaking, the State Government shall have the like option to be exercised in the like manner of purchasing the Undertaking.(4)Where a notice exercising the option of purchasing the undertaking has been served upon the licensee under this Section, the licensee shall deliver the undertaking to the State Electricity Board or the State Government as the case may be, on the expiration of the relevant period referred to in subsection (1) pending the determination and payment of the amount referred to in sub-section (5) of this Section.(5)Where an undertaking is purchased under this Section the purchaser shall pay to the licensee an amount, determined in accordance with the provisions of sub-section (1) and (2) of Section 7-A."
