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2021 Supreme(Kar) 197

IN THE HIGH COURT OF KARNATAKA AT DHARWAD BENCH
Ashok S. Kinagi, J.
Opg Power Generation Pvt. Ltd. – Petitioner
Versus
Gulbarga Electricity Supply Company Limited – Respondent
Writ Petition No.109192 of 2017 (GM-KEB)
Decided On : 24-02-2021

Advocates:
Advocate Appeared:
For the Petitioner: Sri.Gurudas S.Kannur, Senior Counse For Sri.Shivaraj C.Bellakki, Adv.
For the Respondent: Sri.B.S.Kamate, Adv.

Headnote:

Land – Auction - Non-payment of electricity bill - Liable to pay the arrears - Petitioner is that, IFCI has issued a public notification for auction in respect of land - Petitioner company participated in the auction held and the petitioner company was highest bidder and declared as successful bidder for a sale consideration certain crores and sale certificate and possession certificate were issued in favor of petitioner - After procuring property, petitioner company applied for supply of electricity to respondent vide communication - Respondent vide letter intimated petitioner that erstwhile owner of said property had a power supply class and the said connection was disconnected for non-payment of electricity bill, as the erstwhile owner was liable to pay the arrears of crores to GESCOM - Said demand was purportedly made under Regulation No.4.09 (iv) of conditions of supply of electricity of distribution licenses in State of Karnataka - Whether quantified or not, have been specifically mentioned as a liability of purchaser in the auction notice and the sale is on – Held, Respondents have already filed an application before liquidator for release of the amount - Said application is pending and respondents have also initiated proceedings against previous consumer for recovery- Respondents would be entitled to the said arrears either from previous consumer or from present petitioner and they cannot get from both - Where the existence of electricity dues, whether quantified or not, have been specifically mentioned as a liability of purchaser in auction notice and the sale is on “as is where is, whatever there is and without recourse basis”, liability to pay electricity dues exists on the purchase - As discussed, from the records, tender notification in respect of land and premises of previous consumer which was issued by IFCI, the auction tender document contained clauses which makes it clear that there would be outstanding liabilities and the same has to be paid by purchaser - Therefore, court do not find any merit in any of contentions of petitioner - Respondents after considering material on record has rightly passed impugned order - Writ petition is disposed of.

ORDER :

The petitioner aggrieved by the order passed by respondent No.1 dated 08.07.2016 vide Annexure-J and also sought for mandamus directing respondent Nos.1 and 2 to provide new connection to the extent of 1000 KVA and supply of electricity to the schedule premises situated at Bisalahalli and Haddinagundu villages, Bellary Taluk and Bellary District measuring 119 acres 62 cents.

2. Brief facts of the case of the petitioner is that, IFCI has issued a public notification for auction in respect of land under reference situated at Bisalahalli and Haddinagudu villages, Bellary Taluk and Bellary District totally measuring 119 acres 62 cents. The petitioner company participated in the auction held on 08.12.2010 and the petitioner company was the highest bidder and declared as successful bidder for a sale consideration of Rs.64.90 crores and sale certificate and possession certificate were issued in favour of the petitioner.

3. After procuring the property, the petitioner company applied for supply of electricity to respondent No.2 vide communication dated 11.05.2011. Respondent No.2 vide letter dated 19.05.2011 intimated the petitioner that erstwhile owner of the said property namely, Bellary Steels and Alloys Limited (hereinafter referred to as ‘BSAL’ for short) had a power supply of 400 KVA on 110 KV class having R.R.No.EHT2 and the said connection was disconnected for non-payment of electricity bill, as the erstwhile owner was liable to pay the arrears of Rs.17.36 crores to GESCOM. The said demand was purportedly made under Regulation No.4.09 (iv) of the conditions of supply of electricity of distribution licences in the State of Karnataka. The petitioner being aggrieved by the said communication dated 19.05.2011 issued by respondent No.2 approached this Court in W.P.No.63672/2011. This Court disposed of the aforesaid writ petition directing respondent No.1 to pass a detailed order on the application filed by the petitioner in accordance with law.

4. Pursuant to the said order passed by this Court in the aforesaid writ petition, the petitioner submitted his written submission. Respondent No.1 passed the impugned order dated 08.07.2016 demanding payment of Rs.21.63 crores from the petitioner as a pre-condition to obtain supply of electricity power to the schedule premises. The petitioner aggrieved by the impugned order filed this writ petition.

5. Respondents filed statement of objections stating that petitioner has addressed a letter to respondent No.2 for supply of power. On verification, it was noticed that the petitioner company has purchased the land to an extent of 119 acres 62 cents belongs to BSAL. The said BSAL had a power supply having R.R.No.EHT2 which was discontinued for nonpayment of arrears. Respondent No.2 by letter dated 19.05.2011 clarified that as per the electricity supply regulations and the Electricity Act, the power supply will not be arranged to the premises which is having dues to the GESCOM until they are cleared. As against the communication dated 19.05.2011, the petitioner filed a writ petition before this Court in W.P.No.63672/2011 and this Court vide order dated 22.04.2016 disposed of the writ petition directing the petitioner to appear before respondent No.1 along with written submission and respondent No.1 directed to pass the order in accordance with law.

6. Respondent No.1 after considering the contentions of the petitioner and also GESCOM, passed the impugned order holding that the petitioner is liable to pay entire arrears including interest. It is also stated that, impugned order passed by respondent No.1 is in accordance with law and there is absolutely no merit in the contention raised by the petitioner in the writ petition and prays to dismiss the writ petition.

7. Heard Sri.Gurudas S.Kannur, learned Senior counsel appearing for Sri.Shivaraj Bellakki, learned counsel for the petitioner and Sri.B.S.Kamate learned counsel for the respondents.

8. Learned senior counsel appearing for the petitioner f

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