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2026 Supreme(Gau) 255

THE GAUHATI HIGH COURT, (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
RAJESH MAZUMDAR, J.
Assam Power Distribution Company Ltd., Represented Its Managing Director, Sri Rakesh Kumar And Anr. – Petitioner 
Versus
The Electricity Ombudsman And Ors. – Respondents
WP(C) No.749 of 2023
Decided On : 09-01-2026

Advocates Appeared:
For the Petitioner: Mr. K.P. Pathak, standing counsel, APDCL.
For the Respondents:Mr. Dr. A.K Saraf, Senior Advocate, Mr. D. Goswami.

New owners of properties are liable to pay fixed electricity charges of prior tenants, while charges deemed unlawful cannot be enforced against them.

Headnote:(A) Electricity Act, 2003 - Section 56 - Regulations 2.2 of the Electricity Supply Code and Related Matters - Liability of new owner to pay outstanding electricity dues of erstwhile consumer - Court established that the new owner inherits specific liabilities, including fixed charges, from the previous owner for the relevant period. (Paras 19, 21, 41)

(B) Fixed Charges - Electricity Ombudsman’s directive on payment of fixed charges is upheld for the period of 31.7.2013 to 24.9.2014, while LTMU charges for the period from July 2006 to July 2013 are ruled non-recoverable from the new owner. (Paras 15, 40)

(C) Public Notice - Legal implications of issuing notices regarding outstanding dues for subsequent purchasers and the enforceability of previous liabilities as per statutory regulations are clarified. (Paras 8, 11)

Facts of the case:
The case involves a dispute over electricity dues between Assam Power Distribution Company Ltd. and M/s H.K. Sagar Realtors LLP, where the former’s claim on dues from the former consumer (Brahmaputra TMT Bars Pvt. Ltd.) is contested by the latter in relation to an electricity connection.

Findings of Court:
The respondent no.2 is liable for fixed charges but not for LTMU charges based on the relationship between the parties and timing of disconnections.

Issues: The key issues were whether outstanding dues of the previous consumer could be enforced against the new owner and the legality of fixed charges beyond specified periods.

Ratio Decidendi: The court held that the new owner inherits the prior consumer's debt obligations regarding fixed charges, reinforcing the principle that prior debts are retained by subsequent parties unless legally exempted.

Result: Writ petition disposed of; new owner liable for certain charges, but not for others.

Table of Content
1. electricity connection agreements and previous arrears. (Para 2 , 3 , 4 , 5 , 6 , 9 , 10 , 11 , 12 , 13)
2. effect of the electricity ombudsman's rulings on arrears. (Para 14 , 15 , 16)
3. key issues for adjudication. (Para 17 , 18)
4. liability for dues of previous occupants. (Para 19 , 20 , 21 , 23)
5. arguments regarding fixed charges and payment liabilities. (Para 22 , 24 , 25 , 26 , 27)
6. dispute over lower voltage charges and implementation of surcharges. (Para 31 , 32 , 33 , 34 , 35 , 36)
7. court's rejection of ltmu charges rationale. (Para 38 , 39 , 40)
8. final determination on payment responsibilities. (Para 41)
9. conclusion regarding the writ petition. (Para 42)

JUDGMENT :

Rajesh Mazumdar, J.

Heard Mr. K.P. Pathak, learned Standing counsel, APDCL for the petitioner. Also heard Dr. A.K. Saraf, learned Senior Counsel assisted by Mr. D Goswami, learned counsel for the respondent no.2.

2. This writ petition has been filed by the Assam Power Distribution Company Ltd. (hereinafter referred to APDCL) challenging the impugned judgment dated 15.11.2022 passed by the Electricity Ombudsman in Appeal Petition No. 1/2022. The second respondent in the writ petition is M/s H.K. Sagar Realtors LLP while the Brahmaputra TMT Bars Private limited and the State Bank of India are arrayed as proforma respondents.

3. It requires a mention that M/s H.K. Sagar Realtors LLP, the second respondent herein, has also filed a writ petition being WP(C) 1358/2023 arraying the APDCL as the contesting respondent, praying for reliefs which would depend upon the outcome of this petition. Though for the sake of convenience both the writ petitions were heard together, separate orders are proposed to be passed in the both the writ petitions respectively.

Facts involved in this case:

4. M/s Brahmaputra TMT Bars Pvt. Ltd. had been sanctioned an electricity connection for 8000 KW of power load by the Government of Assam, Power (Electric) Mines & Mineral Department, in the year 2005. Subsequently, an agreement was executed between the then Assam State Electricity Board (ASEB) and M/s Brahmaputra TMT Bars Pvt. Ltd. on 18.07.2006 for supply of the 8000 K.W of power, stipulating that a metering system of 33 KV/570 and 33 KV/433 was to be installed in the premises of the consumer. A power transformer for 3450 KVA X 3 and 1000 KVA X 1 was also installed in the premises of the consumer for which a separate agreement was also executed.

5. M/s Brahmaputra TMT Bars Pvt. Ltd. (hereinafter referred to as erstwhile consumer) was thereafter drawing power at a rate which exceeded 5000 KVA and further, while the normal supply voltage for 5000 KVA was 132 KV, the erstwhile consumer was drawing electricity at only 33 KV. The ASEB was succeeded by the APDCL and as such, APDCL made a request to the erstwhile consumer to make arrangements for conversion of his supply voltage from 33KV to 132 KV.

6. The consumer defaulted in the monthly payment of its electricity charges on account of which electricity connection to the premises was temporarily disconnected on 31.07.2013. On 01.02.2014, the APDCL wrote to the consumer to inform that the electricity connection was liable to be disconnected permanently on account of non-payment of electricity charges. Upon receipt of such letter, the consumer wrote back on 26.03.2014 requesting immediately that the date of permanent disconnection be extended as it was not in a position to pay the dues. Accordingly, after considering the case of the consumer, the authorities at APDCL deferred the “permanent” disconnection by 3 months on the condition that the erstwhile consumer would pay an amount of Rs. 90 lakhs per month during the period in order to pay off its outstanding dues. The same was communicated to the consumer on 11.04.2014.

7. Instead of making the payment, the consumer wrote to the APDCL on 30.06.2014 by enclosing a cheque of Rs. 1 crore with a request that a further period of 1 month be granted to it, with a promise that the bala

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