2000 Supreme(Bom) 766
IN THE HIGH COURT OF BOMBAY
(AURANGABAD BENCH)
V.K. Barde R.G. Deshpande, JJ.
Aurangabad Industrial Associates through its proprietor.... Petitioner.
Versus
State of Maharashtra others.... Respondents.
Writ Petition No. 607 of 1988, decided on 28-9-2000.
Advocates appeared :
S.A. Deshmukh, for the petitioner.
N.S. Choudhary, A.G.P., for respondent No. 1.
Pradeep Deshmukh, for respondent No. 3.
H.T. Joshi, for respondent No. 4.
Headnote:Electricity Act, 1910
Section 25- Repayment of loan- Where on failure to repay the loan due to Maharashtra State Financial corporation, plant and machinery of the borrower auctioned by the court and application filed for reconnection by the auction purchaser, held board cannot demand outstanding arrears form the auction purchaser
2. Heard Shri S.A. Deshmukh, learned Counsel for the petitioner and Shri N.S. Choudhary, learned A.G.P. for respondent No. 1 and Shri H.T. Joshi, Counsel for the respondent No. 4 Board. So far as the respondent Nos. 2 and 5 are concerned, their names are deleted because the relief claimed against them are not pressed by the petitioner, in this petition.
3. Shri S.A. Deshmukh, learned Counsel for the petitioner, has argued that there was a proclamation for sale of property. As per that proclamation, the property was free from any encumbrance created by the Board. The petitioner, therefore, purchased the property in the Court auction. The petitioner was not at all aware about the arrears of electricity charges which were to be paid by the previous owner, namely M/s. K.K. Industries. The petitioner is a bona fide purchaser for value without notice and, therefore, he is not liable to pay electricity charges.
4. Shri Deshmukh, further, argued that there is no privity of contract between the petitioner and the Board, for the Board to claim electricity charges from the petitioner. He further argued that no charge was created on the property of M/s. K.K. Industries for the electricity charges payable by M/s. K.K. Industries and, therefore, the petitioner who is an auction purchaser, cannot be called upon to pay the arrears.
5. Shri H.T. Joshi, learned Counsel appearing on behalf of the Board, has argued that M/s. K.K. Industries had not paid the electricity charges. The petitioner is the successor of M/s. K.K. Industries and, therefore, before obtaining the reconnection of electricity supply, the petitioner must satisfy the arrears payable by M/s. K.K. Industries. For this proposition, the learned Counsel relied on the Condition No. 23 of the Conditions and Miscellaneous Charges for Supply of Electrical Energy, framed by the Board. The said condition reads as follows :-
"23. ASSIGNMENT OR TRANSFER OF AGREEMENT :
a) The consumer shall not without previous consent in writing of the Board, assign, transfer or part with the benefit of his agreement with the Board nor shall the consumer in any manner part with or create any partial or separate interest thereunder.
b) A consumer who commits breach of