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THE ELECTRICITY (SUPPLY) ACT, 1948

Title : THE ELECTRICITY (SUPPLY) ACT, 1948

Year : 1948



 
(1) No provision of the Indian Electricity Act, 1910 (9 of 1910), or of any rules made thereunder or of any instrument having effect by virtue of such law or rule shall, so far as it is inconsistent with any of the provisions of this Act, have any effect:

Provided that nothing in this Act shall be deemed to prevent the State Government from granting, after consultation with the Board, a licence not inconsistent with the provisions of the Indian Electricity Act, 1910 (9 of 1910), to any person in respect of such area and on such terms and conditions as the State Government may think fit.

(2) Save as otherwise provided in this Act, the provisions of this Act shall be in addition to, and not in derogation of, the Indian Electricity Act, 1910 (9 of 1910).



[Repealed. by the Indian Electricity (Amendment) Act, 1959 (32 of 1959), Section 41 (w.e.f. 5-9-1959).]



The State Government shall not grant any concession for the development or use of water-power for any electrical purpose to any person other than1*[the Board or a Generating Company], unless the State Government is of opinion that it is not expedient for the Board2*[or the Generating Company so to develop] or use the water-power concerned.

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1. Substituted by Act 115 of 1976, Section 27, for "the Board" w.r.e.f. 8-10-1976.

2. Substituted by Act 115 of 1976, Section 27, for "or that the Board is unable so to develop" w.r.e.f. 8-10-1976.

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Where a multi-purpose scheme for the development of any river in any region is in operation,1*[the Board and the Generating Company shall co-ordinate their activities] with the activities of the persons responsible for such scheme in so far as they are inter-related.

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1. Substituted by Act 115 of 1976, Section 28, for "the Board shall co-ordinate its activities" w.r.e.f. 8-10-1976.

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Any1*[officer or other employee]2*[of the Board or of a Generating Company] generally or specially 3*[authorised by the Board or by the Generating Company, as the case may be,] in this behalf may at any reasonable time after giving the owner or occupier reasonable notice enter upon any land or premises and there do such things as may be reasonably necessary for the purposes of lawfully using any transmission lines or main transmission lines or of making any survey, examination or investigation preliminary or incidental to the exercise of powers or the performance of 4*[duties by the Board or by the Generating Company, as the case may be,] under this Act.

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1. Substituted by Act 23 of 1978, Section 17, for "officer or servant" w.e.f. 3-6-1978.

2. Substituted by Act 115 of 1976, Section 29, for "servant of the Board" w.r.e.f. 8-10-1976.

3. Substituted by Act 115 of 1976, Section 29, for "authorised by the Board" w.r.e.f. 8-10-1976.

4. Substituted by Act 115 of 1976, Section 29, for "duties by the Board" w.r.e.f. 8-10-1976.

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1 [***]

2*[3*(1)]4*[***] The Board shall, as soon as may be after the end of each financial year, prepare and submit to the State Government 5*[before such date and] in such form as may be prescribed a report giving an account of its activities during the previous financial year and the report shall also give an account of the activities, if any, which are likely to be undertaken by the Board in the next financial year; and the State Government shall cause every such report to be laid before the State Legislature as soon as may be after it is received by the State Government.]

(2) The Board shall furnish to the State Government at such times and in such form and manner as may be prescribed or as the State Government may direct, such statistics and returns and such particulars in regard to any proposed or existing scheme as the State Government may from time to time require.

(3) The Board may at any time by notice in writing require any licensee 6 [or person or agency] supplying electricity for public or private purposes or generating electricity for his own use to furnish it with such information and accounts relating to such supply or generation and in such form and manner as the notice may specify:

7*[Provided that nothing in this sub-section shall be deemed to empower the Board to require a Generating Company to furnish it with any information or accounts.]

75A  8*Annual reports and accounts of Generating Company

9[*** ]

(2) A Generating Company shall, as soon as may be after the end of each year, prepare a report giving an account of its activities during the previous year and shall, within six months from the date of closure of the year, forward to the10*[competent] government, or where there are more than one 10*[competent] governments, to all such10*[competent] governments, the report together with a statement of accounts, in such form and containing such particulars as may be specified by the government or the governments, as the case may be, a copy of the balance-sheet and profit and loss account and the auditor's report, in relation to the accounts of the year aforesaid.

11*(3) For the purpose of preparing the statement of accounts referred to in sub-section (2), the depreciation to be provided every year shall be calculated at such rate as may be specified by the Central Government, by notification in the Official Gazette, in accordance with the provisions of section 43A.]

12[ ***]

(4) The provisions of13*[sub-section] (2) shall be in addition to and not in derogation of the provisions contained in the Companies Act, 1956 (1 of 1956), in relation to reports, statement of accounts and other documents required to be prepared or kept or submitted by a company within the meaning of section 3 of that Act.]

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1. Sub-section (1) omitted by Act 30 of 1966, Section 16 w.e.f. 16-9-1966.

2. Sub-section (1A) Inserted by Act 101 of 1956, Section 19 w.e.f. 30-12-1956.

3. Sub-section (1A) re-numbered as sub-section (1) by Act 30 of 1966, Section 16 w.e.f. 16-9-1966.

4. The words "Without prejudice to the provisions of sub-section (1)" omitted by Act 30 of 1966, Section 16 w.e.f. 16-9-1966.

5. Inserted by Act 30 of 1966, Section 16 w.e.f. 16-9-1966.

6. Substituted by Act 115 of 1976, Section 30, for "or person" w.r.e.f. 8-10-1976.

7. Inserted by Act 115 of 1976, Section 30 w.r.e.f. 8-10-1976.

8. Inserted by Act 115 of 1976, Section 31 w.r.e.f. 8-10-1976.

9. Sub-section (1) omitted by Act 50 of 1991, Section 13 w.e.f. 15-10-1991.

10. Substituted by Act 50 of 1991, Section 13, for "promoting" w.e.f. 15-10-1991.

11. Substituted by Act 50 of 1991, Section 13, for sub-section (3) w.e.f. 15-10-1991.

12. Sub-section (3A) Inserted by Act 23 of 1978, Section 18 w.e.f. 3-6-1978 and omitted by Act 50 of 1991, Section 13 w.e.f. 15-10-1991.

13. Substituted by Act 50 of 1991, Section 13, for "sub-section (1) and" w.e.f. 15-10-1991.

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1[ ***]

(2) Where any question or matter is, by this Act, required to be referred to arbitration, it shall be so referred-

(a) In cases where the Act so provides, to the Authority and on such reference the Authority shall be deemed to have been duly appointed as Arbitrators, and the award of the Authority shall be final and conclusive; or

(b) In other cases, to two arbitrators, one to be appointed by each party to the dispute.

(3) Subject to the provisions of this section, the provisions of the 2*[Arbitration and Conciliation Act, 1996 (26 of 1996)] shall apply to arbitrations under this Act.

3*(3A) Where any question or matter is referred to the Authority for arbitration under this section, the Authority may, having regard to the circumstances of each case, charge such arbitration fee as it may deem reasonable.]

4*(3B) All fees and charges due to the Authority in respect of any arbitration and award and all costs and charges for filing the award incurred by the Authority may, if they are not paid by the person from whom they are due within a period of one month from the date of a notice given to him by the Authority in this behalf, be recovered from him in the same manner as an arrear of land revenue.]

(4) The arbitrators shall in making their award have regard to the provisions of this Act and any rules and regulations made thereunder relevant to the reference.

(5) The arbitrators may, if they think it expedient so to do, call in the aid of one or more qualified assessors and hear the reference wholly or partially with the aid of such assessors.

(6) The provisions of sub-sections (4) and (5) shall apply to the umpire, if he enters on the reference, as they apply to the arbitrators.

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1. Sub-section (1) omitted by Act 30 of 1966, Section 17 w.e.f. 16-9-1966.

2. Substituted by Act 22 of 1998, Section 12, for "Arbitration Act, 1940 (10 of 1940)" w.e.f. 31-12-1998.

3. Inserted by Act 101 of 1956, Section 20 w.e.f. 30-12-1956 and Substituted by Act 22 of 1998, Section 12 w.e.f. 31-12-1998.

4. Sub-section (3B) Inserted by Act 101 of 1956, Section 20 w.e.f. 30-12-1956.

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If any licensee or other person, not being the Board, fails without reasonable excuse to comply with, or give effect to, any direction, order or requirement made under any of the following provisions, namely:-

(a) Section 4; or

(b) Section 55; or

(c) Clause (d) of sub-section (1) of section 57A; or

(d) Section 57B; or

(e) Section 58; or

(f) Sub-section (3) of section 75;he shall be punishable with fine which may extend to five hundred rupees, and in the case of a continuing offence with a further fine which may extend to fifty rupees for each day after the first during which the offence continues.

77A - Source from which fines may be paid

All fines payable by a licensee under this Act or under any other law for the time being in force in respect of any offence committed by the licensee, shall be payable by him from that part of the clear profit to which he is entitled under the Sixth Schedule.

77B - Offences by companies

(1) If the person committing an offence under this Act is a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director or manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.-For the purposes of this section,-

(a) "Company" means any body corporate and includes a firm or other association of individuals; and

(b) "Director" in relation to a firm means a partner in the firm.

77C - Cognizance of offences

No Court shall lake cognizance of an offence under section 77, except on the complaint of,-

(a) In the case of an offence relating to section 4, by an officer of the Authority authorized in that behalf by the Authority;

(b) In the case of any other offence,-

(i) Where a Board is constituted, by an officer of the Board authorized by the Board in that behalf;

(ii) Where no Board is constituted, by an officer of the State Government authorised by the State Government in that behalf.]

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1. Substituted by Act 101 of 1956, Section 21, for section 77 w.e.f. 30-12-1956.

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(1) The State Government may after previous publication, by notification in the Official Gazette make rules to give effect to the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing 'power, such rules may provide for-

1*(a) 2* The powers of the Chairman and the term of office] of the Chairman and other members of the Board, the conditions under which they shall be eligible for re-appointment and their remuneration, allowances and other conditions of service;]

(b) The terms and conditions of appointment of members of 3 State Electricity Consultative Councils] and Local Advisory Committees, the convening of meetings of such Councils and Committees, and the conduct of business thereat;

(c) The form in which the annual financial statement and supplementary statements under section 61 shall be prepared by the Board, and the particulars to be included therein;

(d) The conditions subject to which the Board may borrow under section 65;

(e) The manner in which stock issued by the Board shall be issued, transferred, dealt with and redeemed;

(f) The manner in which the accounts of the Board shall be published under section 69;

(g) The form in which and the date by which the annual report of the Board shall be submitted under section 75, and the form and manner of furnishing statistics and returns by the Board under that section;

(h) The business of the Board upon which the local Advisory Committees concerned shall be consulted.

78A 4*Directions by the State Government

(1) In the discharge of its functions, the Board shall be guided by such directions on questions of policy as may be given to it by the State Government.

(2) If any dispute arises between the Board and the State Government as to whether a question is or is not a question of policy, it shall be referred to the Authority whose decision thereon shall be final.]

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1. Substituted by Act 57 of 1949, Section 6, for clause (a).

2. Substituted by Act 101 of 1956, Section 22, for "the term of office" w.e.f. 30-12-1956.

3. Substituted by Act 101 of 1956, Section 22, for "State Electricity Councils" w.e.f. 30-12-1956.

4. Inserted by Act 101 of 1956, Section 23 w.e.f. 30-12-1956.

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1*[The Board may by notification in the Official Gazette, make regulations] not inconsistent with this Act and the rules made thereunder to provide for all or any of the following matters, namely:-

(a) The administration of the funds and other property of the Board, and the maintenance of its accounts;

(b) The summoning and holding of meetings of the Board, the times and places at which such meetings shall he held, the conduct of business thereat and the number of members necessary to constitute a quorum;

(c) The duties of 2*[officers and other employees] of the Board, and their salaries, allowances and other conditions of service;

(d) All matters necessary or expedient for regulating the operations of the Board under section 20;

(e) The making of advances to licensees by the Board under section 23 and the manner of repayment of such advances;

(f) The making of contributions by the Board under section 24;

(g) The procedure to be followed by the Board in inviting, considering and accepting tenders;

(h) Principles governing the fixing of Grid Tariffs;

(i) Principles governing the making of arrangements with licensees under section 47;

(j) Principles governing the supply of electricity by the Board to persons other than licensees under section 49;

2*(jj) Expending sum not included in statement submitted section-section (1)or sub-section (5)of section 61, under sub-section (2) of section 62;]

(k) Any other matter arising out of the Board's functions under this Act for which it is necessary or expedient to make regulations:

Provided that regulations under clauses(a) 3*[, (d) and (jj)] shall be made only with the previous approvalof the State Government and regulations under clauses (h) and (i) shall be made with the concurrence of the Authority.

79A 4* Laying of notification before the State Legislature

Every notification issued under section 55 by the State Government, or the State Commission, as the case may be, every rule made by that Government under section 78 and every regulation made by the Board under section 79, shall be laid, as soon as may be, before the State Legislature.]

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1. Substituted by Act 23 of 1978, Section19, for "officers and servants" w.e.f. 3-6-1978.

2. Inserted by Act 23 of 1978, Section 19w.e.f. 3-6-1978.

3. Substituted by Act 23 of 1978,Section 19, for "and (d)" w.e.f.3-6-1978.

4. Section 79A Inserted by Act 20 of 1983, Section 2 and Schedule w.e.f. 15-3-1984 and Substituted by Act 22 of 1998, Section 13 w.e.f. 31-12-1998.

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(1) For the purposes of the Indian Income-tax Act, 1922 (11 of 1922),the Board shall be deemed to he a company within the meaning of that Act and shall be liable to income-tax and super-tax accordingly on its income, profits and gains.

(2) The State Government shall not be entitled to any refund of any such taxes paid by the Board.



All1*[members and officers and other employees] of the Board shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).

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1. Substituted by Act 23 of 1978, Section 20, for "member, officers or servants" w.e.f. 3-601978.

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No suit, prosecution or other legal proceeding shall lie against1*any2*member or officer or other employee] of the Board] for anything which is in good faith done or intended to be done under this Act.

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1. Substituted by Act 30 of 1996, sec 18, for "any person w.e.f.16-9-1996.

2. Substituted by Act 23 of 1978, Section 20, for "member, officers or servants" w.e.f. 3-6-1978.

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Nothing in this Act shall be deemed to apply to a licensee on which a notice under section 5 or section 7 of the Indian Electricity Act, 1910 (9 of 1910) has been served prior to the coming into force of the sections, Schedule and Table mentioned in sub-section (3) of section 1.

Last updated on July, 2016

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