Section 20 in The U.P. Electricity Reforms Act, 1999
20. Procedure to be followed after revocation of the licence.
(1)Notwithstanding anything contained in the provisions of Sections 6 and 7 of the Indian Electricity Act, 1910, where the Commission decides to revoke a licence under Section 18, the following provisions shall apply, namely :-(a)the decision of the Commission shall be communicated to the licensee, and the licence shall stand revoked on such communication of the decision;(b)the Commission shall, simultaneously with the communication of its decision under clause (a), make such interim arrangement in regard to the undertaking of the licensee for the purposes of maintaining and continuing transmission and supply of electricity as it may consider appropriate including the appointment of an administrator or administrators for such undertaking, and such administrator or administrators shall be deemed to be interim licensees;(c)the Commission shall, by advertising in at least two widely circulated newspapers, invite applications from such persons as are intending to purchase the undertaking of the licensee whose licence has been revoked and are also willing to obtain a licence under Section 15;(d)the Commission shall consider the applications received under clause (c) for the purposes of granting a licence under Section 15 and shall also determine the terms and conditions for the disposal of the said undertaking, and may and by notice in writing, require the licensee whose licence has been revoked, to sell his undertaking to the person whose application has been accepted by the Commission, hereinafter referred to in this section as the purchaser, for the purchase price put forward in the application; and(e)on and with effect from the date of revocation, or, where the undertaking of the licensee is sold to a purchaser earlier in pursuance of any of the provisions of this Act, on and with effect from the date of such sale, all rights, duties, obligations and liabilities of the licensee under this Act, shall cease except from any liabilities that have accrued to that date.(2)Where an undertaking is sold under clause (d) of sub-section (1), the purchaser shall pay its purchase price to the licensee, within such period, not exceeding three months, as may be determined by the Commission.(3)Where the Commission issues any notice under clause (d) of sub-section (1), requiring the licensee to sell the undertaking, it may, by such notice, require the licensee to deliver, and thereupon the licensee shall deliver on a date specified in the notice, the undertaking to the designated purchaser pending the payment of the purchase price of the undertaking :Provided that the purchaser shall pay to the licensee interest at such rate, not less than the Reserve Bank of India, lending rate in force at the time of the delivery' of the undertaking, as the Commission may decide, on the purchase price of the undertaking for the period from the date of delivery' of the undertaking to the date of payment of the purchase price.(4)Where, for any reason whatsoever, the undertaking of a licensee where licence has been revoked, cannot be sold under sub-section (1) the State Government shall acquire the said undertaking and pay the licensee whose licence has been revoked, the amount determined in accordance with Section 7-A of the Indian Electricity Act, 1910, as applicable to Uttar Pradesh, and shall discharge all the obligations of the licensee until such times as the State Government sells the said undertaking to a new- licensee, which it shall endeavour to do expeditiously without undue delay.
