Guntur Tobaccos Ltd vs The Transmission Coprn. Of A.P. & Anr

The Supreme Court held that the leases executed by Guntur Power and Light Limited (GPL) in favor of Guntur Tobacco Company (GTC) were invalid as they were made without the necessary government sanction required under Section 9(2) of the Indian Electricity Act, 1910. The Court emphasized that the acquisition of GPL's assets by the State Government under the Andhra Pradesh Electricity Supply Undertaking Acquisition Act, 1954, rendered the leases ineffective. Consequently, the appeal was dismissed, affirming the High Court's decision that GTC could not claim rights over the properties based on the invalid leases.