Section 77 Electricity Act 2023
Section 77 of the Electricity Act 2023 is about Sale of undertakings of licenses. It is under Part VI (Licensing) of the Act.
(1) Where the Commission revokes a license under section 75 (4) of this Act, the Commission shall make an order regarding the sale of the undertaking of the licensee in accordance with the provisions of this section —
(a) invite applications for acquiring the undertaking of the licensee whose license has been cancelled and determine which of such applications should be accepted, primarily on the basis of the highest and best price
offered for the undertaking;
(b) require the licensee to sell his undertaking and the licensee shall sell his undertaking to the person (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 cancellation of license or on and from the date, if earlier, on which the undertaking of the licensee is sold to a purchaser, shall absolutely cease except for any liabilities which have accrued prior to that date;
(d) the Commission may make such interim arrangements in regard to the operation of the undertaking as it may consider appropriate including the appointment of an Administrator;
(e) the Administrator appointed under paragraph (d) shall exercise such powers and discharge such functions as the Commission may direct.
(2) Where the undertaking of a licensee is sole under subsection (1), the purchaser shall pay to the licensee the purchase price of the undertaking in such a manner as may be agreed upon subject to the approval of the Commission.
(3) Where the Commission issues any order under subsection (1) requiring the licensee to sell the undertaking, it may, by such notice, require the licensee to deliver the undertaking, and the licensee shall deliver on a date specified in the notice, the undertaking to the designated purchaser on payment of the purchase price.
(4) Where the licensee has delivered the undertaking referred to in subsection (3) to the purchaser, but its sale has not been completed by the date fixed in the order issued by the Commission, the Commission may, if it deems fit, permit the intending purchaser to operate and maintain the undertaking system pending the completion of the sale.
