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 Bench, Ranchi. The stand taken by the writ petitioner before the High Court was: there is a transfer of a unit; it had not been supplied with electricity; hence, it had no occasion to consume electricity; and as transferee it is not liable for energy consumed before such transfer. The writ petition was dismissed by a Division Bench of the High Court holding that the Bihar State Electricity Board (hereinafter referred to as the Board) would be entitled to take action in accordance with law.

4. Aggrieved by the impugned judgment the appellant has come in appeal before this Court.

Civil Appeal No. 1420 of 1995 [arising out of SLP (C) No. 16227 of 1992] Bihar State Electricity Board v. Waxpol Industries Ltd.

5. In this case, the facts are slightly different. The Bihar Financial Corporation sanctioned loan to M/s Neo Chemicals and Metal Products (P) Ltd. for setting up a unit for manufacture of Graphite Beneficiation. The said unit occupied Plots Nos. 1819 and 1820 at P.O. Village Booti, District Ranchi, Bihar. For non-payment of electricity bills the electricity was disconnected. They were outstanding to the tune of Rs 2,35,924.78 against such electricity consumption charges. The Corporation had advanced a sum of Rs 3,40,000 to M/s Neo Chemicals. To secure this loan, the properties of the Company had been hypothecated/mortgaged. In order to realise this sum the properties were sought to be sold under Section 29 of the Corporations Act. The sale was through an advertisement. Waxpol Industries, the respondent, filed its tender. That was the highest. Therefore, the properties were sold in favour of the respondent for a consideration of Rs 2,97,578.27.

6. Waxpol Industries applied for electricity connection to the Board. After the purchase, in that application, Column No. 6 required Waxpol Industries to state whether it would undertake to clear the previous dues. As against this, it was stated "does not apply". Therefore, on 3-1-1986, the Board informed Waxpol Industries that it was unable to restore electricity as its dues had not been paid either by the consumer or by the subsequent occupant of the said premises.

7. Aggrieved by this, the respondent herein preferred CWJC No. 25 of 1986. By the impugned judgment, the writ petition was allowed on the ground that the present occupants are free from any encumbrance or liability towards the payment of outstanding electricity dues; Neo Chemicals and Waxpol Industries are two distinct companies and as such two separate legal entities. In view of the judgment in Ram Krishna Choudhary v. Bihar State Electricity Board{CWJC No. 204 of 1984} disposed of on 15-10-1990 unless there is a clause that the auction-purchaser shall not only have the assets but also the liability including the liability of the Electricity Board, the