Point of Law: arrears are 'statutory dues'; the power supply is regulated by the contract, does not make them any the less statutory and therefore, the absence of privity of contract does not come to the protection of the buyers of the property concerned, which suffered disconnection of power supply on account of non-payment of power charges.

JUDGMENT :

This Intra Court Appeal seeks to lay a challenge to the Judgment & Order dated 24.02.2021 rendered by a learned Single Judge whereby appellant’s W.P.No.109192/2017 having been dismissed the stand of the respondent Electricity Supply Company that the payment of arrears of electricity charges in respect of subject property is a precondition for the sanctioning of power connection is upheld.

2. Some reprieve is granted by the learned Judge to the appellant, as can be construed from the following text of operative portion of the impugned order:

“i) The writ petition is disposed of.

ii) In the event, the petitioner paying entire arrears as demanded by the respondents, the petitioner would be entitled for fresh connection of electricity.

iii) If after payment of money by the petitioner, the respondents recover the money from the previous consumer, the same shall be paid to the petitioner.”

3. The respondents having entered appearance through their Panel Counsel vehemently resist the appeal making submission in justification of the impugned order and the reasons on which it has been constructed; the panel counsel for the Supply Company contends that this being an Intra Court Appeal, the examination of the appellant’s grievance has to be undertaken in a restrictive way, more particularly when the learned Single Judge has considered all aspects of the matter.

4. A BRIEF FACT MATRIX OF THE CASE:

(a) The subject land in all admeasured about 800 acres of which the writ petitioner bought in a public auction held on 08.12.2010, only a small extent of 119 acres & 62 cents; in this land existed an industry and all its apparatus, is not in dispute, in which the industry was established; the auction price is Rs.64.90 crore; Sale Certificate was issued followed by delivery of possession; the remainder of the land, it is stated at the Bar, has been bought by another Company namely M/s. Sessagoa Company, which is not a party to these proceedings.

(b) Petitioner’s application dated 11.05.2011 for sanctioning of power supply was replied to, on 19.05.2011 by the second respondent herein that the erstwhile owner of the property had the power supply of 400 KVA, in 110 KV class vide RR No.EHT2 and the supply was disconnected on 06.05.2010 for nonpayment of arrears then quantified at Rs.17.36 crore (now almost doubled) and therefore, unless the same is cleared, power supply cannot be sanctioned; petitioner’s challenge to the aforesaid reply in the subject writ petition, having been negatived by the learned Single Judge, this appeal is presented.

5. We have heard the learned counsel for the parties and perused the appeal papers; we have also adverted to the relevant rulings cited at the Bar; having done this, we grant a limited indulgence in the matter as under and for the following reasons,

(i) Learned Sr. Advocate Mr. Guru Khannur appearing for the writ petitioner firstly argues that the arrears of power supply charges not being an encumbrance do not run with the land and therefore, the buyer more particularly a buyer in public auction cannot be saddled with the said liability; learned Sr. Panel Counsel for the Electricity Supply Company replies that it is not a case of coercive recovery, but only a precondition for availing the power supply to the premises in question; it is a matter of a bit statutory policy vide “Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka” (hereafter ‘Policy Conditions’); he justifiably draws our attention to clause 4.09(iv) of the Policy Conditions which has the following text:

“iv) If any person desires to have electricity for a premises for which the power supply Agreement has been terminated (whether the service line is dismantled or not) he shall be treated as a fresh Applicant and the licensee shall collect the outstanding arrears in respect of the said premises from such persons before connection is given.”

(ii) The question raised by Mr. Khannur as above is no longer res inte