Vesting of utility in purchaser
Section 21 of the Electricity Act, 2003 deals with vesting of utility in purchaser. Where a utility is sold under section 20 or section 24, then, upon completion of the sale or on the date on which the utility is delivered to the intending purchaser, as the case may be, whichever is earlier-- (a) the utility shall vest in the purchaser or the intending purchaser, as the case may be The Act came into force on 10 Jun 2003.
Where a utility is sold under section 20 or section 24, then, upon completion of the sale or on the date on which the utility is delivered to the intending purchaser, as the case may be, whichever is earlier--
(a) the utility shall vest in the purchaser or the intending purchaser, as the case may be, free from any debt, mortgage or similar obligation of the licensee or attaching to the utility:
Provided that any such debt, mortgage or similar obligation shall attach to the purchase money in substitution for the utility; and
(b) the rights, powers, authorities, duties and obligations of the licensee under his licence shall stand transferred to the purchaser and such purchaser shall be deemed to be the licensee.
Section 21, The Electricity Act, 2003 (Act 36 of 2003).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Made under this section, and citing it
2 instruments name this provision in its title or its text without being made under it.
Questions about Section 21
What does Section 21 of the Electricity Act deal with?
Section 21 of the Electricity Act is headed "Vesting of utility in purchaser". Where a utility is sold under section 20 or section 24, then, upon completion of the sale or on the date on which the utility is delivered to the intending purchaser, as the case may be, whichever is earlier-- (a) the utility shall vest in the purchaser or the intending purchaser, as the case may be
How do I find court cases under Section 21 of the Electricity Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Electricity Act 2003 21, section 21 Electricity Act 2003, section 21 of the Electricity Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 21 of the Electricity Act, and has it changed?
Its own text turns on section 20 (Sale of utilities of licensees), section 24 (Suspension of distribution licence and sale of utility), so none of them can safely be read on its own. 2 instruments name it without being made under it, most recently UP Electricity Regulatory Commission (Consumer Grievance Redressal Forum) Regulations, 2022 (2022), then UPERC Ombudsman (Terms & Conditions of Service) Regulations, 2007 (2007).
When did Section 21 of the Electricity Act come into force?
Section 21 of the Electricity Act, cited as Electricity Act 2003 21, came into force on 10 Jun 2003, having been enacted on 26 May 2003. It is in force as at the date shown on this page.
Other sections of this Act
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 19 Oct 2026. This page is not a substitute for legal advice.