Strict compliance with statutory notice requirements is essential when exercising compulsory purchase powers over a licensee's undertaking.

A statutory power to purchase a licensee's undertaking under section 6(1)(a) of the Indian Electricity Act, 1910 had to be exercised strictly in the manner required by the statute because it affected property rights. The notice was invalid because it did not expressly call upon the licensee to sell the undertaking at the expiry of the relevant period; instead, it merely stated that the Board had decided to exercise, and would exercise, the option of purchase. Its internal inconsistency also meant the licensee could not be certain that a valid statutory notice had been served. The Board therefore could not compel sale of the undertaking.

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Issues: Whether the notice issued by the State Electricity Board for purchase of the licensee's undertaking under section 6(1)(a) of the Indian Electricity Act, 1910, as amended, was valid.

Analysis: The right of the State Electricity Board to purchase the undertaking was a statutory power affecting property rights and therefore had to be exercised strictly in the manner prescribed by the statute. Section 6(1)(a) required a written notice calling upon the licensee to sell the undertaking at the expiry of the relevant period. The impugned notice did not do so; instead, it merely stated that the Board had decided to exercise and would exercise the option of purchase on the expiry date. The notice was also internally inconsistent, referring both to the amended statutory scheme and to the earlier position, so that the licensee could not know with certainty that he was being called upon to sell under the governing law.

Conclusion: The notice was invalid for non-compliance with the mandatory requirements of section 6(1)(a), and the Board could not compel the licensee to sell the undertaking.

Ratio Decidendi: Where a statute prescribes a specific mode for exercising a power that affects property rights, that mode must be strictly followed and a notice that does not expressly comply with the statutory requirement is invalid.

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