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Union of India - Section

Section 4 in The Indian Electricity Act, 1910

4. Revocation or amendment of licenses .-(1) The State Government may, if in its opinion the public interest so requires [and after consulting the State Electricity Board], revoke a license in any of the following cases, namely:-

(a)where the licensee, in the opinion of the State Government, makes wilful and unreasonably prolonged default in doing anything required of him by or under this Act;(b)where the licensee breaks any of the terms or conditions of his license the breach of which is expressly declared by such license to render it liable to revocation;(c)where the licensee fails, within the period fixed in this behalf by his license or any longer period which the State Government may substitute therefor by order under [section 4-A, sub-section (1)] [ Substituted by Act 32 of 1959, Section 5, for " sub-Section (3), clause (b)" ], and before exercising any of the powers conferred on him thereby in relation to the execution of works,-(i)to show, to the satisfaction of the State Government, that he is in a position fully and efficiently to discharge the duties and obligations imposed on him by his license, or(ii)to make the deposit or furnish the security required by his license;(d)[where in the opinion of the State Government the financial position of the licensee is such that he is unable] [ Substituted by Act 32 of 1959, Section 5, for " where the licensee is, in the opinion of the State Government, unable, by reason of his insolvency" .], fully and efficiently to discharge the duties and obligations imposed on him by his license;(e)[ where a licensee, in the opinion of the State Government, has made default in complying with any direction issued under section 22-A.] [ Inserted by Act 32 of 1959, Section 5.]
(2)[ Where in its opinion the public interest so permits, the State Government may, on the application or with the consent of the licensee, and after consulting the State Electricity Board, and the Central Government where that Government is interested, and if the licensee is not a local authority, after consulting also the local authority, if any, concerned, revoke a license as to the whole or any part of the area of supply upon such terms and conditions as it thinks fit.
(3)No license shall be revoked under sub-section (1) unless, the State Government has given to the licensee not less than three months' notice in writing, stating the grounds on which it is proposed to revoke the license and has considered any cause shown by the licensee within the period of that notice, against the proposed revocation.
(4)Where the State Government might under sub-section (1) revoke a license it may instead of revoking the license permit it to remain in force subject to such further terms and conditions as it thinks fit to impose and any further terms or conditions so imposed shall be binding upon, and be observed by, the licensee, and shall be of like force and effect as if they were contained in the license.] [ Substituted by Act 32 of 1959, Section 5, for sub-Ss. (2) and (3).][4-A. Amendment of licenses.-(1) Where in its opinion the public interest so permits, the State Government, on the application of the licensee or otherwise and, after consulting the State Electricity Board, and if the licensee is not a local authority, also the local authority, if any, concerned, may make such alterations and amendments in the terms and conditions of a license, including the provisions specified in section 3, sub-section (2), clause (f), as it thinks fit:Provided that no such alterations or amendments shall be made except with the consent of the licensee unless such consent has, in the opinion of the State Government, been unreasonably withheld.
(2)Where the licensee has made an application, under sub-section (1) proposing any alterations or amendments in his license, the following provisions shall have effect, namely:-
(a)the licensee shall publish a notice of the application in the prescribed manner and with the prescribed particulars;
(b)the State Government shall not make any alterations or amendments until all objections received by it with reference to the application within three months from the date of the first publication of the notice have been considered;
(c)in the case of an application proposing alterations or amendments in the area of supply comprising the whole or any part of any cantonment, aerodrome, fortress, arsenal, dockyard or camp or of any building or place in the occupation of the Government for defence purposes, the State Government shall not make any alterations or amendments except with the consent of the Central Government.
(3)Before making any alterations or amendments in a license otherwise than on the application of the licensee, the State Government shall publish the proposed alterations or amendments in the prescribed manner and with the prescribed particulars and consider all objections received by it with reference to the proposed alterations or amendments within three months from the date of the first publication of the notice; and where alterations or amendments have been proposed in an area of supply such as is referred to in clause (c) of sub-section (2), the State Government shall not make any alterations or amendments except with the consent of the Central Government.]