U.P. STATE ELECTRICITY BOARD, LUCKNOW vs THE OFFICIAL LIQUIDATOR LOWER GANGESJAMUNA ELECTRICITY DIST

The Supreme Court ruled that under Clause VA of the 6th Schedule to the Electricity Supply Act, 1948, the development reserve must be handed over to the purchaser only if it is available. In this case, since the entire development reserve had been utilized for creating assets, the official liquidator could not be compelled to pay any amount representing the development reserve to the U.P. State Electricity Board. The Court emphasized that the Board had already benefited from the assets created and could not claim a notional sum in addition to those benefits.