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2005 Supreme(Bom) 925

IN THE HIGH COURT OF BOMBAY
ETCO Spinners Private Limited
Versus
State of Maharashtra
Decided on 20.7.2005

Headnote:Electricity Act, 1910 - Sections 24 and 22 - Electricity (Supply) Act, 1948, Sections 49 and 79 and Regulations, Clause 23 - Liability to pay the arrears incurred by the previous owner of the property in respect of power supplied to such property - Petitioner purchased property of a co-operative spinning mill in public auction consequent to its liquidation - There were arrears of electricity consumption charges of the erstwhile mill - Petitioner called upon to pay outstanding electricity dues payable by erstwhile consumer at the premises for grant of electrical connection by MSEB - MSEB have a statutory duty to supply electricity to petitioner and cannot be saddled with liability to clear arrears of electricity charges payable by erstwhile consumer. - The controversy between the parties or the dispute merely relates to the scope of the clause 23 in relation to such liability of the person acquiring the property of the erstwhile consumer. There is also no dispute about the law on the point that in case of fresh connection sought for by the auction purchaser of the property, he cannot be asked to clear the arrears incurred by the erstwhile consumer in respect of the power supplied to the premises purchased by the auction purchaser in the absence of specific statutory provision in that regard and, therefore, the entire defence in support of the claim for arrears of the erstwhile consumer from the petitioners rest upon the meaning of the clause 23 of the said Regulations. The expression "any person claiming to be heir, legal representative transferee, assignee or successor of the defaulting consumer in sub-clause (b) of clause 23 of MSEB Regulations, do not include a successor by virtue of involuntary transfer. The word "successor" will have to be understood by applying the principle of ejusdem generis. The word preceding the word "successor" clearly discloses reference to the person who acquire right to the property on account of either voluntary transfer or on account of death of the owner. It does not contemplate any other type of transfer. Being so, the word "successor" has to be understood to refer to only to an owner acquiring the right by way of voluntary transfer or on account of right of inheritance and this is clear from the further reproduction of the same words while referring to the defaulting consumer in the same clause wherein it has been stated as "such person claiming to be the heir, legal representative, transferee, assignee or successor of the defaulting consumer". In other words, at both the places same words are reproduced and they cannot have two different meaning. Thus, clause 23 neither sub-clause (a) or (b) thereof nor any of the clauses of the agreement nor any of the statutory provisions discloses any such liability of the transferee occupying the premises of the erstwhile consumer on account of having acquired right by public auction or any other mode of non-voluntary transfer of the property by the erstwhile consumer. Therefore, the petitioners are justified in contending that the respondent Nos. 3 and 4 have statutory duty to supply electricity to the petitioners as those respondents have exclusive monopoly in supplying the electricity in the State and further that the petitioners cannot be saddled with the liability as regards the dues payable to the respondent Nos. 3 and 4 by the erstwhile consumer in the premises occupied by the petitioners. There is no justification to hold the third party liable for such dues when such party acquires the right to the property, either in public auction or in a proceeding where the property is conveyed to him by way of non-voluntary transfer. The petition is allowed and the rule is made absolute. (1995) 2 SCC 648, Ref.

Judgment

R. M. S. KHANDEPARKAR, J.

( 1 ) HEARD. Rule. By consent, the rule is made returnable forthwith.

( 2 ) THE petitioners seek mandamus directing the respondent Nos. 3 and 4 to grant forthwith the electricity connection (high tension consumer) to the petitioner No. 1 company at its premises, namely plots B-2 and B-3, MIDC, parabhani.

( 3 ) UNDISPUTED facts in the matter are, that a co-operative spinning mill known as "prabhavati Co-operative Spinning Mill Ltd. ", which existed on the said plots, was ordered to be liquidated by the authorities under the maharashtra Co-operative Societies Act, 1960, hereinafter called as the "cooperative Act" and as a result of the liquidation proceedings the assets of the said society were put to public sale by inviting tenders. The petitioner No. 1 submitted its tender along with some other parties and those tenders were opened on 25-3-2004 and the petitioner No. 1's tender having been found to be the highest, same was accepted by the respondent No. 2, the Liquidator and the petitioner No. 1 was informed to deposit a total amount of Rs. 4. 30 crores within 30 days by demand draft to get possession of the property. The petitioner-company accordingly deposited the entire amount of Rs. 4. 30 crores on 29-4-2004. The respondent No. 2 thereupon executed an agreement dated 8-7-2004 with the petitioner No. 1 confirming the petitioner No. 1 was the highest bidder and its bid having been accepted and handed over the possession of the assets along with the said plots to the petitioners. Thereafter an agreement of sale was also executed by the respondent No. 2 in favour of the petitioner No. 1 on 26-7-2004 and since then the possession of the said plots is with the petitioners. The final deed of assignment, however, is yet to be executed by the respondent No. 2.

( 4 ) IT is the case of the petitioners that the above referred Prabhavati spinning Mill was closed down more than five years back and the entire plant and machineries were not in use since then, as a result the major portion thereof had been rusted and rendered non-usable. Consequently, there was overhauling of the plant and machineries, including replacement of certain parts which resulted in further expenditure of Rs. 4 crores to the petitioners. It is further case of the petitioners that the Prabhavati spinning Mill was supplied with the electricity by the respondent Nos. 3 and 4 but on account of the said company having gone into liquidation and thus thee was default in payment of the consumption charges by the said Mill, the electricity supply to the premises was disconnected. Upon overhauling of the plant and machineries by the petitioners, the respondent No. 4 was requested by the petitioners to supply the electricity. Inspite of repeated letters, however, there was no response from the respondents nor release of the electricity supply. Meanwhile, the said plots were transferred to the petitioner-company by the MIDC on 4-2-2005. The respondents, however, refused to grant connection on the ground that no such connection would be granted unless the arrears of the Prabhavati Spinning Mill are cleared.

( 5 ) IT is the contention of the petitioners that the petitioner No. 1 is an independent company and has acquired the property of the Prabhavati spinning Mill in public auction and it cannot be saddled with the responsibility or liability of the Prabhavati Spinning Mill to pay the arrears of consumption charges relating to the period prior to the date of auction on which the property of the said mill was purchased by the petitioners. Besides, the electricity supply which is asked for by the petitioners is by way of a new connection and it has nothing to do with the connection which was granted to the Prabhavati Spinning Mill. It is their further contention that it is the statutory duty of the respondent Nos. 3 and 4 to supply the electricity to the petitioner-company and in the absence of such supply of electricity, the petitioners are no

























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