Section 6(3) in The Karnataka Electricity Supply Undertakings (Acquisition) Act, 1974
(3)In the case of undertakings which vest in the Government under this Act, the licence granted or deemed to be granted for supplying electricity shall be deemed to have been terminated on the vesting date and all the rights, liabilities and obligations of the companies under any agreement to supply electricity entered into before that date shall devolve on the Government:Provided that where any such agreement is not in conformity with the rates and conditions of supply approved by the Government and in force on the vesting date, the agreement shall be voidable at the option of the Government.
