1. Punjab National Bank – respondent No.3 herein auctioned the subject property owned by M/s. Nibi Steels Limited in favour of the petitioner herein under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, 'the SARFAESI Act') and the rules made thereunder. Accordingly, sale certificate was issued in favour of the petitioner under Rule 9(6) of the Security Interest (Enforcement) Rules, 2002. Thereafter, the District Trade and Industries Centre, Durg, granted exemption from payment of stamp duty for execution of lease deed holding that it is a declared sick industry under the Chhattisgarh Band Avam Bimar Udyogon Hetu Vishesh Protsahan Niti 2016 and thereafter, lease deed was executed in favour of the petitioner by the Chief General Manager, District Trade and Industries Centre, Durg on 5-5-2017 for a period of 62 years. The State Government by its memo dated 29-12-2016 allowed the transfer of subject property by M/s. Nibi Steels Limited in favour of the petitioner herein subject to condition that all dues payable if any found outstanding to any Government/Semi-Government/ Local Body/Financial Institution or anybody else shall be payable by M/s. Nibi Steels Limited, as the subject property has been auctioned by Punjab National Bank under the provisions of the SARFAESI Act and the rules made thereunder. After the issuance of sale certificate and grant of lease by State authorities in favour of the petitioner, the petitioner made an application for grant of electricity connection of 2500 KVA to respondent No.2 herein. The said application was rejected by respondent No.2 stating inter alia that an amount of Rs.1,08,80,420/is outstanding in favour of M/s. Nibi Steels Limited and as per clause 4.19 of the Chhattisgarh State Electricity Supply Code 2011 (for short, 'the Code'), unless the amount due is cleared by the petitioner, such an electricity connection cannot be granted to the petitioner.

2. Feeling aggrieved against the order dated 8-9-2017, this writ petition has been filed principally on the ground that the petitioner is auction purchaser in the auction-sale held by respondent No.3 Bank under the provisions of the SARFAESI Act and the rules made thereunder and the sale certificate clearly incorporates that the subject property is free from all encumbrances and also stating that the State Government has already issued memo dated 29-12-2016 in favour of the petitioner allowing M/s. Nibi Steels Limited to transfer the unit in favour of the petitioner subject to condition that any dues outstanding of any Government Department or local body or any financial institution shall be payable by M/s. Nibi Steels Limited and the petitioner being bona fide purchaser cannot be held liable, as if this is allowed to stand, it will affect the finality of auction which the petitioner has bona fidely purchased. Therefore, the impugned order be set aside and respondents No.1 and 2 be directed to provide electricity connection to the petitioner forthwith.

3. Return has been filed on behalf of respondents No.1 and 2 controverting the allegations made in the writ petition stating inter alia that the amount of electricity arrears to the tune of Rs.1,08,80,420/is outstanding against M/s. Nibi Steels Limited and there is a statutory provision in the Electricity Supply Code in shape of clause 4.19 of the Code enabling the respondents for recovering electricity charges from the new owner of the premises which is the petitioner herein before restoring the old service connection or providing for a new supply connection. Therefore, the petitioner is not entitled for electricity connection till dues as indicated are cleared by the petitioner and as such, the writ petition deserves to be dismissed.

4. Mr. P.R. Patankar, learned counsel appearing for the petitioner, would submit that the petitioner has purchased the suit property / industry in the auction conducted by Punja