← Back to The Electricity Act 2003

Section 20. (1) Where the Appropriate Commission revokes under section 19 the

licence of any licensee , the following provisions shall apply, namely:-
(a) the Appropriate Commission shall invite applications for
acquiring the utility of the licensee whose licence has been
revoked and determine which of such applications should be
accepted, primarily on the basis of the highest and best price
offered for the utility;

(b) the Appropriate Commission may, by notice in writi
ng, require
the licensee to sell his utility and thereupon the licensee shall sell
his utility to the person (hereafter in this section referred to as
the “ purchaser” ) whose application has been accepted by that
Commission;

(c) all the rights, duties, obligations and liabilities of the licensee, on
and from the date of revocation of licence or on and from the
date, if earlier, on which the utility of the licensee is sold to a
purchaser, shall absolutely cease except for any liabilities which
have accrued prior to that date;

(d) the Appropriate Commission may make such interim
arrangements in regard to the operation of the utility as may be
considered appropriate including the appointment of




16





























Vesting of
utility in
purchaser
















Provisions where
no purchase takes
place

















Directions to
licensees.




Suspension of
distribution
licence and sale of
utility.
considered appropriate including the appointment of
Administrators;

(e) The Administrator appointed under clause (d) shall exercise such
powers and discharge such functions as the Appropriate
Commission may direct.

(2) Where a utility is sold under sub-section (1), the purchaser shall
pay to the licensee the purchase price of the utility in such manner as may
be agreed upon.

(3) Where the Appropriate Commission issues any notice under sub-
section (1) requiring the licensee to sell the utility, it may, by such notice,
require the licensee to deliver the utility, and thereupon the licensee shall
deliver on a date specified in the notice, the utility to the designated
purchaser on payment of the purchase price thereof.

(4) Where the licensee has delivered the utility referred to in sub-
section(3) to the purchaser but its sale has not been completed by the date
fixed in the notice issued under that sub-section, the Appropriate
Commission may, if it deems fit, permit the intending purchaser to operate
and maintain the utility system pending the completion of the sale.