(1) If the Appropriate Commission, after making an inquiry, is satisfied that public interest so requires, it may revoke a licence in any of the following cases, namely:—
(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;
(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;
(c) where the licensee fails, within the period fixed in this behalf by his licence, or any longer period with the Appropriate Commission may allow—
(i) to show, to the satisfaction of the Appropriate Commission, that he is in a position fully and efficiently to discharge the duties and obligations imposed on him by his licence; or
(ii) to make the deposit or furnish the security, required by his licence;
(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.
Legal Commentary & Landmark Judgments: Section 19
Section 19 of the Electricity Act, 2003 empowers the Appropriate Commission to revoke a licence on grounds of persistent willful default, breach of licence conditions, insolvency, or failure to maintain electrical systems, following a mandatory three-month show-cause notice procedure.
When representing a licensee served with a Section 19 revocation notice, immediately file a comprehensive cure-plan within the statutory 3-month period showing corrective investments, and challenge any precipitous Commission action before APTEL under Section 111.