GUNTUR TOBACCOS LTD. vs THE TRANSMISSION CORPN. OF A.P.

The Supreme Court held that the lease agreements executed by Guntur Power and Light Limited (GPL) in favor of Guntur Tobacco Company (GTC) remained valid despite the acquisition of GPL's assets by the State Government under the Andhra Pradesh Electricity Supply Undertaking Acquisition Act, 1954. The Court emphasized that the lease did not terminate upon the acquisition and upheld GTC's right to purchase the demised land at market value as per the lease terms. The appeal was dismissed, affirming the High Court's decision that GTC retained its rights under the lease agreements.