19. Effect on existing licences.-
(1) Where any licence granted under the Indian Electricity Act, 1910 (9 of 1910), becomes inoperative wholly or partly by virtue of the provisions of section 18, the licence shall be deemed to have been revoked or modified so as to be consistent with those provisions.
(2) Where a licence is deemed to have been revoked under sub-section (1) the Corporation shall purchase the undertaking of the licencee, and where a licence is modified under that sub-section, the Corporation shall, at the option of the licensee, either purchase the undertaking or pay fair compensation to the licensee.
(3) The purchase price or the amount of compensation payable by the corporation under sub-section (2) shall be such as may be agreed to between the Corporation and the licensee or, in the event of disagreement, as may be determined by arbitration.