HIGH COURT OF MADRAS
Hon`ble Mr.Justice G.R.SWAMINATHAN
P.Murugendran – Appellant
Versus
The Superintending Engineer – Respondent
Electricity - Supply and Liability - The Electricity Act, 2003 - Sections 43, 49, 50, 181; The Tamil Nadu Electricity Supply Code - Regulation 17(9)(a) - The court interpreted key provisions regarding obligations of new property owners to clear prior electricity debts and the circumstances under which service connections can be granted, affirming that proportional payment of dues is essential for receiving supply.
Fact of the Case:
The petitioner purchased land from M/s.M.V.M.Traders, which had previously belonged to Embee Tex, who owed significant electricity dues. The petitioner sought electricity supply but was denied unless the prior dues were cleared. He challenged this requirement in court.
Finding of the Court:
The court reviewed the legal obligations under the Electricity Act and related regulations, but ultimately decided that due to a similar case where a prior purchaser was allowed a proportional liability for dues, the petitioner should receive the same treatment.
Issues: Whether the subsequent purchaser is liable for past dues and whether they can obtain electricity supply without clearing the entire outstanding amount from the previous owner.
Ratio Decidendi: The ruling emphasized equal treatment for similarly situated individuals, allowing the petitioner to receive service connection by paying a proportionate share of the previous liability, as established in a related case.
Final Decision: The writ petition was allowed, directing authorities to grant electricity service connection upon proportional payment of dues.
O R D E R
Heard the learned Senior counsel appearing for the writ petitioner and the learned Standing counsel appearing for TANGEDCO.
2. The petitioner seeks supply of electricity. He has purchased
3 acres and 24 cents of land in the petition-mentioned survey number. It originally belonged to an entity by name Embee Tex. The said Embee Tex owed a sum of Rs.7,28,000/- to TNEB. Without clearing the said liability, the establishment was sold in favour of M/s.Aruna Textiles in the year 1996. Aruna Textiles appears to have been wound up in liquidation proceedings. The entire property measuring 8.3 acres was sold in public auction in favour of M/s.M.V.M.Traders. From M/s.M.V.M. Traders, the petitioner purchased a parcel of land measuring an extent of 3.24 acres. When the petitioner approached the respondents for supply of electricity, the respondents insisted that the liability originally incurred by M/s.Embee Tex must be cleared in full. Challenging the stand of the respondents, the present writ petition came to be filed.
3. The learned Senior counsel appearing for the petitioner reiterated all the contentions set out in the affidavit filed in support of the writ petition and called upon this Court to grant relief as prayed for.
4. The learned Standing counsel submitted that the issue raised in the writ petition is no longer res integra. He drew my attention to the decision reported in 2023 SCC OnLine SC 663(K.C.Ninan V. Kerala State Electricity Board and Others). It has been authoritatively held therein that the subsequent purchaser of the property is obliged to clear the antecedent liability incurred under the Electricity Act. Paragraph No.341 of the said decision reads as follows:- ''341. The conclusions are summarised below:
a. The duty to supply electricity under Section 43 of the 2003 Act is not absolute, and is subject to the such charges and compliances stipulated by the Electric Utilities as part of the application for supply of electricity;
b. The duty to supply electricity under Section 43 is with respect to the owner or occupier of the premises. The 2003 Act contemplates a synergy between the consumer and premises. Under , when electricity is supplied, the owner or occupier becomes a consumer only with respect to those particular premises for which electricity is sought and provided by the Electric Utilities;
c. For an application to be considered as a ‘reconnection’, the applicant has to seek supply of electricity with respect to the same premises for which electricity was already provided. Even if the consumer is the same, but the premises are different, it will be considered as a fresh connection and not a reconnection;
d. A condition of supply enacted under Section 49 of the 1948 Act requiring the new owner of the premises to clear the electricity arrears of the previous owner as a precondition to availing electricity supply will have a statutory character;
e. The scope of the regulatory powers of the State Commission under Section 50 of the 2003 Act is wide enough to stipulate conditions for recovery of electricity arrears of previous owners from new or subsequent owners;
f. The Electricity Supply Code providing for recoupment of electricity dues of a previous consumer from a new owner have a reasonable nexus with the objects of the 2003 Act;
g. The rule making power contained under Section 181 read with Section 50 of the 2003 Act is wide enough to enable the regulatory commission to provide for a statutory charge in the absence of a provision in the plenary statute providing for creation of such a charge;
h. The power to initiate recovery proceedings by filing a suit against the defaulting consumer is independent of the power to disconnect electrical supply as a means of recovery under Section
56 of the 2003 Act;
i. The implication of the expression “as is where is” basis is that every intending bidder is put on notice that the seller does not undertake responsibility in respect of the property offered for sale with regard to a
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