THE RAJAHMUNDRY ELECTRIC SUPPLYCORPORATION LTD. vs THE STATE OF ANDHRA.

The Supreme Court ruled that the Madras Electricity Supply Undertakings (Acquisition) Act, 1949, was beyond the legislative competence of the Madras Legislature as there was no relevant entry in the three Lists of the Seventh Schedule of the Government of India Act, 1935, concerning the compulsory acquisition of commercial or industrial undertakings. The Court emphasized that Section 299(2) of the Government of India Act, 1935, did not authorize such legislation. Consequently, the Court quashed the order of the Government declaring the appellant's undertaking to vest in the Government.