Appropriate Commission, shall be void.

1. (1) Where in its opinion the public interest so permits, the Appropriate Commission, may, on the application of the licensee or otherwise, make such alterations and amendments in the terms and conditions of a licence as it thinks fit:

Revocation of

licence

Provided that no such alterations or amendments shall be made except with the consent of the licensee unless such consent has, in the opinion of the Appropriate Commission, been unreasonably withheld.

1. (2) Before any alterations or amendments in the licence are made under this section, the following provisions shall have effect, namely: -
   • (a) where the licensee has made an application under sub-section (1) proposing any alteration or modifications in his licence, the licensee shall publish a notice o f such application with such particulars and in such manner as may be specified;
   • (b) in the case of an application proposing alterations or

modifications in the area of supply comprising the whole or any

part of any cantonment, aerodrome, fortress, arsenal, dockyard or camp or of any building or place in the occupation of the Government for defence purposes, the Appropriate Commission shall not make any alterations or modifications except with the consent of the Central Government;

1. (c) where any alterations or modifications in a licence are proposed

to be made otherwise than on the application of the licensee, the

Appropriate Commission shall publish the proposed alterations or

modifications with such particulars and in such manner as may

be specified;

1. (d) the Appropriate Commission shall not make any alterations or modification unless all suggestions or objections received within thirty days from the date of the first publication of the notice have been considered. 19. (1) If the Appropriate Commission, after making an enquiry, is satisfied that public interest so requires, it may revoke a licence in any of the following cases, namely: -
2. (a) where the licensee, in the opinion of the Appropriate Commission,

makes wilful and prolonged default in doing anything required of

him by or under this Act or the rules or regulations made thereunder;

1. (b) where the licensee breaks any of the terms or conditions of his licence the breach of which is expressly declared by such licence to render it liable to revocation;
2. (c) where the licensee fails, within the period fixed in this behalf by his licence, or any longer period which the Appropriate Commission may have granted therefor –
   • (i) to show, to the satisfaction of the Appropriate Commissio n, that he is in a position fully and efficiently to discharge the duties and obligations imposed on him by his licence; or Sale of utilities of licensees. and obligations imposed on him by his licence; or
   • (ii) to make the deposit or furnish the security, or pay the fees or other charges required by his licence;
3. (d) where in the opinion of the Appropriate Commission the financial position of the licensee is such that he is unable fully and efficiently to discharge the duties and obligations imposed on him by his licence.

1. (2) Where in its opinion the public interest so requires, the Appropriate Commission may, on application, or with the consent of the licensee, revoke his licence as to the whole or any part of his area of distribution or transmission or trading upon such terms and conditions as it thinks fit.
2. (3) No licence shall be revoked under sub-section (1) unless the Appropriate Commission has given to the licensee not less than three months’notice, in writing, stating the grounds on which it is proposed to revoke the licence, and has considered any cause shown by the licensee within the period of that notice, against the proposed revocation.
3. (4) The Appropriate Commission may, instead of revoking a licence under sub-section (1), permit it to remain in force subject to such further terms and conditions as it thinks fit to impose, and any further terms or conditions so imposed shall be binding upon and be observed by the licensee and shall be of like force and effect as if they were contained in the licence.
4. (5) Where the Commission revokes a licence under this section, it shall serve a notice of revocation upon the licensee and fix a date on which the revocation shall take effect.
5. (6) Where an Appropriate Commission has given notice for revocation of licence under sub-section (5), without prejudice to any penalty which may be imposed or prosecution proceeding which may be initiated under this Act, the licensee may, after prior approval of that Commission, sell his utility to any person who is found eligible by that Commission for grant of licence.

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

licence of any licensee , the following provisions shall apply, namely:-

1. (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;
2. (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;

1. (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;

1. (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 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;
2. (e) The Administrator appointed under clause (d) shall exercise such powers and discharge such functions as the Appropriate Commission may direct.

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

1. (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