2008 Supreme(MP) 1309
MADHYA PRADESH HIGH COURT AT JABALBUR BENCH
Abhay M.Naik, J.
Satish Gangrade and Anr. - Appellant
Versus
M.P.Madhya Kshetra Vidyut Vitran Company Limited and Ors. - Respondent
Decided On : 31-03-2008
The main legal point established in the judgment is that auction purchasers are entitled to a new electricity connection and cannot be denied based on outstanding dues from the previous owner, as per Clause 4.17 of the MP Electricity Supply Code, 2004.
Headnote:
Electricity Connection - Denial of Connection to Auction Purchasers - Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - [Rule 4.17 of the Madhya Pradesh Electricity Supply Code, 2004] - The court discussed the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and Rule 4.17 of the Madhya Pradesh Electricity Supply Code, 2004. It highlighted the rights of auction purchasers to obtain a new electricity connection and the legal obligations of the Electricity Board to recover dues from the previous owner.
Fact of the Case:
The petitioners challenged the denial of an electric connection by the Madhya Pradesh State Electricity Board to auction purchasers, citing outstanding dues from the previous owner. The petitioners argued that they were entitled to a new electricity connection in the purchased property and that the denial was unjust.
Finding of the Court:
The court found that the denial of the electricity connection to the petitioners was illegal and arbitrary, as it violated Clause 4.17 of the MP Electricity Supply Code, 2004. The court imposed a cost of Rs. 10,000 on the respondents for their actions.
Issues: The main issue was the legality of denying the electricity connection to auction purchasers based on outstanding dues from the previous owner.
Ratio Decidendi: The court held that the auction purchasers were entitled to a new electricity connection and that the denial was in violation of Clause 4.17 of the MP Electricity Supply Code, 2004.
Final Decision: The petition was allowed, and a cost of Rs. 10,000 was imposed on the respondents, payable to the petitioners within one month.
Abhay M. Naik, J.
1. Petitioners have assailed the denial of Madhya Pradesh State Electricity Board contained in its letter dated 8-5-2007 marked as Annexure P-1, in respect of electric connection to auction purchasers on the ground that there were dues against the person who availed electricity in the same premises prior to auction.
2. Short facts giving rise to the present writ petition are that the Cent Bank, Home Finance Limited (respondent No. 4) issued a notice to auction various properties in exercise of powers under Rule 8 framed under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, which included the subject flat situated in Serve Dharma Colony, Bhopal, as revealed in the advertisement marked as Annexure P-2. Petitioners being the highest bidder, purchased the said flat in open auction on 28-2-2007. A sale certificate was duly issued on 16-3-2007 and it was duly forwarded for registration to the office of Sub-Registrar, Bhopal, vide Annexure P-4, dated 16-3-2007.
3. Thereafter, the petitioner made application in due manner to the M.P. Madhya Kshetra Vidyut Vitran Company Limited (respondent No. 1) for grant of electric connection. Respondent No. 1 refused to grant the connection on the ground that certain dues were outstanding against the electricity connection availed in the same flat by the previous owner. Aggrieved by the same, present writ petition has been preferred on 3-7-2007.
It has been averred in the writ petition that the respondent No. 3 had published an auction notice in the newspaper for sale of the subject property to recover the loan amount under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'Act of 2002' for brevity). Petitioners purchased the said flat for Rs. 1,26,000/- being the highest bidder and was granted sale certificate. Requisite charges for its registration with the office of Sub-Registrar were also deposited vide receipt dated 28-3-2007. Petitioners are entitled to obtain a new electricity connection in the purchased property and the same cannot be denied on account of dues of the previous owner. Strength has been derived by the petitioner from the law laid down by the Apex Court in the case of Isha Marbles v. [1995] 1 SCR 847 and Ahmedabad Electricity Co. Ltd. v. AIR 2004 SC 217.
4. Respondent Nos. 1 to 3 submitted their return refuting thereby the claim of petitioners. They asserted that they have a right to insist for dues of the previous owner and may deny the grant of electricity connection in the same premises until the dues are cleared. For this purpose, Rule 4.17 of the Madhya Pradesh Electricity Supply Code, 2004, has been quoted in specific in the return, which is reproduced below:
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5. Return was subm