Section 7: Section 7

Q: What does Section 7 of The Indian Electricity Act, 1910 (EA) deal with?

Section 7 EA pertains to "Section 7". It is part of the The Indian Electricity Act, 1910, a legislation enacted by the Parliament of India. Section 7 of The Indian Electricity Act, 1910 (EA) governs section 7. As verified on 19 May 2026.

Q: Is Section 7 EA still in force?

Yes, Section 7 of the The Indian Electricity Act, 1910 is currently in force across the Republic of India.

Q: What is धारा 7 EA?

धारा 7 EA is the Devanagari Hindi reference for Section 7 of the The Indian Electricity Act, 1910. Section 7 of The Indian Electricity Act, 1910 (EA) governs section 7. As verified on 19 May 2026.

Q: What is Dhara 7 EA?

Dhara 7 EA is the Roman Hindi reference for Section 7 of the The Indian Electricity Act, 1910. "Dhara" means "Section" in Hindi. Section 7 of The Indian Electricity Act, 1910 (EA) governs section 7. As verified on 19 May 2026.

Q: How to cite Section 7 of The Indian Electricity Act, 1910?

Cite as: "Section 7, The Indian Electricity Act, 1910 (EA)" in legal briefs. For academic writing, use the BlueBook format: The Indian Electricity Act, 1910, § 7 (India).

Law on Tips Editorial Board

-A. Determination of purchase price .-(1) Where an undertaking of a licensee, not being a local authority, is sold under sub-section (1) of section 5, the purchase price of the undertaking shall be the market value of the undertaking at the time of purchase or where the undertaking has been delivered before the purchase under sub-section (3) of that section, at the time of the delivery of the undertaking and if there is any difference or dispute regarding such purchase price, the same shall be determined by arbitration.

(2)

The market value of an undertaking for the purpose of sub-section (1) shall be deemed to be the value of all lands, buildings, works, materials and plant of the licensee suitable to, and used by him, for the purpose of the undertaking, other than: (i) a generating station declared by the license not to form part of the undertaking for the purpose of purchase, and (ii) service lines or other capital works or any part thereof which have been constructed at the expense of consumers, due regard being had to the nature and condition for the time being of such land, buildings, works, materials and plant and the state of repair thereof and to the circumstance that they are in such position as to be ready for immediate working and to the suitability of the same for the purpose of the undertaking, but without any addition in respect of compulsory purchase or of goodwill or of any profits which may be or might have been made from the undertaking or of any similar consideration.

(3)

Where an undertaking of a licensee, being a local authority, is sold under sub-section (1) of section 5, the purchase price of the undertaking shall be such as the State Government, having regard to the market value of the undertaking at the date of delivery of the undertaking, may determine.

(4)

Where an undertaking of a licensee is purchased under section 6, the purchase price shall be the value thereof as determined in accordance with the provisions of sub-sections (1) and (2):

Provided that there shall be added to such value percentage, if any not exceeding twenty per centum of that value as may be specified in the license on account of compulsory purchase.