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2023 Supreme(All) 1964

IN THE HIGH COURT OF ALLAHABAD
Sunita Agarwal, Vipin Chandra Dixit, JJ.
Rkg Industries LLP - Applicant
Versus
Uttar Pradesh Power Corporation Limited and others - Respondents
Civil Misc Review Application No. 129 of 2023
Decided On : 08-05-2023

Advocates:
Advocate Appeared:
For the Applicant : Veerendra Kumar Shukla, Anurag Khanna, Sandeep Arora and V.K. Shukla
For the Respondent: C.S.C., Baleshwar Chaturvedi, Krishna Agarawal and K.M Asthana

IMPORTANT POINT
The auction purchaser is liable for the previous owner's electricity dues under the U.P. Electricity Supply Code 2005, as the statutory provisions impose a duty to verify such dues.

Headnote:

Electricity - Auction Purchaser - U.P. Electricity Supply Code 2005, Sections 4.1, 4.3 - The court interpreted the provisions of the U.P. Electricity Supply Code 2005, emphasizing the auction purchaser's obligation to verify outstanding electricity dues, affirming that such dues are statutory and can be recovered from the purchaser.

Fact of the Case:

The review applicant, an auction purchaser, contested the recovery of electricity dues from the previous owner, arguing that such dues should not be imposed on him as he was not the previous consumer.

Finding of the Court:

The court found that the auction purchaser had a duty to inquire about outstanding electricity dues and that the provisions of the U.P. Electricity Supply Code 2005 imposed liability on him for the previous owner's dues.

Issues: Whether the auction purchaser can be held liable for the electricity dues of the previous owner under the U.P. Electricity Supply Code 2005.

Ratio Decidendi: The court held that the auction purchaser is liable for the previous owner's electricity dues as per the statutory provisions of the U.P. Electricity Supply Code 2005, which require the purchaser to verify such dues before the auction.

Result: The review application was dismissed, affirming the original judgment that the auction purchaser is liable for the outstanding electricity dues.

JUDGMENT :

Heard Sri Anurag Khanna learned Senior Advocate assisted by Sri Sandeep Arora and Sri V.K. Shukla learned Counsels appearing for the review applicant, Sri Baleshwar Chaturvedi learned counsel for the respondent No. 2, Sri K.M Asthana learned counsel for the respondent No. 4.

2. The present review petition has been filed seeking for recall/review of the judgement and order dated 30.9.2022 passed by this Court after the review-applicant had approached the Apex Court in a Special Leave Petition (Civil) Diary No. 462 of 2023, decided vide judgement and order dated 13.2.2023. On the submission of the learned counsel for the petitioner therein that certain error in the judgement of the High Court with reference to certain clauses had been made and a view different from the division bench decision of the very same High Court had been taken, permission was granted to the petitioner to withdraw the Special Leave Petition with liberty to file review.

3. The issue raised in the review application is about the correctness of the decision given by us dated 30.9.2022 wherein considering the provisions of Clause 4.3 of the U.P. Electricity Supply Code' 2005 (hereinafter referred as Code' 2005), the challenge to the recovery of electricity dues from the auction purchaser namely the review applicant herein, has been turned down. The main question which arises for consideration in the review application as also the writ petition is whether the liability towards the electricity dues in relation to the property in question can be realized from the petitioner/review applicant, who was an auction purchaser.

4. We have heard the learned Senior Counsel appearing for the review applicant at length as also the counsels appearing for the Electricity Department namely Paschimanchal Vidyut Vitran Nigam Limited and the bank concerned.

5. Few facts of the case in brief are relevant to be noted to examine the merit of the dispute. The petitioner herein is an auction purchaser of a property bearing No. G-599 to G-623 situated at Mussoorie Gulawati Road Industrial Area, Ghaziabad, Uttar Pradesh. The said property was put to auction sale and E-sale proclamation dated 14.5.2019 is appended with the supplementary-affidavit in the review application filed by the review applicant. After purchase of the property, when the petitioner had applied for electricity connection in the premises in question, it was intimated of the arrears of electricity dues against the previous consumer namely the owner whose property was put to auction by the Debt Recovery Tribunal, Delhi. The recovery citation initiating recovery of electricity dues had been issued in the name of the petitioner herein.

6. In the writ petition, it was argued by learned counsel for the applicant that the arrears of electricity charges in relation to the property in question cannot be realized from the petitioner, who is an auction purchaser, as electricity dues do not constitute the charge over the property and a transferee of the premises cannot be held liable for the dues of the previous owner/occupier.

7. This argument was dealt by us in the original judgment by reading the provisions of clause 4.3 (f) (i) of the Code' 2005. It was held that in view of a specific statutory provision dealing with the dispute, general law principle that a transferee of the premises is not liable for the dues of the previous owner/occupier are not applicable. It was also noted that as per the conditions of the auction sale, the auction purchaser was under obligation to verify about the dues/encumbrances over the property and while purchasing the property in distress sale, he has also purchased the liability towards the electricity dues.

8. Terming this finding returned by us in the original judgement as erroneous, it was argued by learned Senior Counsel appearing for the review applicant that an error apparent on th

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