GUJARAT ELECTRICITY BOARD vs SHANTILAL R. DESAI

The Supreme Court held that under Section 7 of the Indian Electricity Act, 1910, the authority must exercise its option to purchase an electricity undertaking by issuing a notice as required by Section 7(4). The Court clarified that the option to purchase and the election to purchase are part of a single process, and the notice issued on January 8, 1959, was sufficient to compel the respondent to sell the undertaking. The High Court's decision was overturned, affirming the appellant's right to purchase the undertaking upon the expiration of the license.