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K.S.PARIPOORNAN, P.B.SAWANT, S.MOHAN
Isha Marbles: Bihar State Electricity Board: Chairman, Bihar State Electricity Board: Bihar State Electricity Board: Bihar State Electricity Board – Appellant
Versus
Bihar State Electricity Board: Waxpol Industries: Suman Packaging Private LTD. : Abhay Kumar: North East Fertilizers – Respondent
Key Points: - The auction-purchaser's liability for old electricity dues of the previous consumer under Section 29(1) of the State Financial Corporations Act and Electricity Act provisions (!) (!) - Whether reconnection of electricity can be denied to an auction-purchaser who has acquired mortgaged assets, where the previous consumer had defaulted (!) (!) - The correct construction of the Board’s remedies (Section 24, Section 22, Clause VI of the Schedule, and related regulations) in relation to auction-purchasers and pre-existing arrears (!) (!) (!) (!) (!)
JUDGMENT
MOHAN, J.- Leave granted.
2. All these appeals can be dealt with by a common judgment since the issue that arises for our consideration is one and the same, namely, whether the auction-purchaser is liable to meet the liability of old consumer of electricity to the premises which is purchased by him in the auction sale from Bihar State Financial Corporation (hereinafter referred to as the Corporation) under Section 29(1) of the State Financial Corporations Act, 1951 (hereinafter referred to as the "Corporations Act")?
Civil Appeal No. 1418 of 1995 [arising out of SLP (C) No. 617 of 1992] M/s Isha Marbles
3. In this case, the appellant is a purchaser of the mortgaged assets of M/s Patel Industries, Daltonganj in an open auction sale held by the Corporation. The appellant has paid a substantial sum towards the said transaction and thereafter got the possession of the industry on 31-1-1991. However, the electrical connection of the premises was disconnected when the appellant got possession of the said unit. The appellant was called upon to discharge all the liabilities of the previous consumer. This was challenged in CWJC No. 1536 of 1991 before the High Court of Patna, Ranchi B
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