GUJARAT ELECTRICITY BOARD vs GIRDHARLAL MOTILAL AND ANR.

The Supreme Court upheld the Gujarat High Court's ruling that the notice issued by the appellant under Section 6(1) of the Indian Electricity Act, 1910, as amended by Act 32 of 1959, was invalid. The Court established that a notice must specifically call upon the licensee to sell the undertaking as a condition precedent for exercising the option to purchase. The notice in question failed to meet this requirement, thus the appellant could not compel the respondent to sell the undertaking.