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Checking relevance for K. C. Ninan VS Kerala State Electricity Board...
K. C. Ninan VS Kerala State Electricity Board - 2023 0 Supreme(SC) 555 : Where electricity dues are intact as per the auction memorandum, the buyer cannot deny liability. The principle of ''''as is where is'''' basis puts every intending bidder on notice that the seller does not undertake responsibility for any liability, including electricity dues, and the auction purchaser is bound to inspect the premises and provide for such dues. This is particularly clear when the existence of electricity dues is specifically mentioned in the auction notice, as in Srigdhaa Beverages (supra), where the Court held that the liability to pay electricity dues exists on the purchaser. The buyer cannot deny liability if the dues were disclosed or reasonably discoverable through due diligence, especially when the power connection was disconnected, which would put a prudent buyer on notice of outstanding dues.Checking relevance for Paschimanchal Vidyut Vitran Nigam Ltd. VS Raman Ispat Private Limited...
Paschimanchal Vidyut Vitran Nigam Ltd. VS Raman Ispat Private Limited - 2023 0 Supreme(SC) 640 : The court held that electricity dues do not carry higher priority than secured creditors'''' dues under the insolvency framework, and that the IBC provides a comprehensive framework for prioritizing creditor claims in liquidation which must take precedence over the provisions of the Electricity Act. The court affirmed that the obligations of the IBC are to be followed despite the specific provisions of other laws, and that the buyer in an auction under the IBC cannot deny liability for electricity dues that are intact as per the auction memorandum, as such dues are subject to the waterfall mechanism under Section 53 of the IBC and must be satisfied from the proceeds of liquidation assets.Checking relevance for Borah and Company VS Assam Power Distribution Company Ltd. ...
Borah and Company VS Assam Power Distribution Company Ltd. - 2023 0 Supreme(Gau) 1269 : The auction purchaser of a property sold on an ''''as is where is'''' basis is liable for previous electricity dues, as the sale on such terms puts the purchaser on notice that they assume all existing rights, obligations, and liabilities of the property, including outstanding electricity dues. This principle is supported by the Hon’ble Supreme Court of India in K.C. Ninan vs. Kerala State Electricity Board and others, which held that the implication of ''''as is where is'''' basis includes the transfer of encumbrances such as electricity arrears, and that prospective bidders must satisfy themselves about pending statutory dues. The court further emphasized that when electricity supply has been disconnected, it is implausible for a purchaser to claim ignorance of outstanding dues, reinforcing the buyer''''s liability.Checking relevance for Dharti Agro Industries Pvt. Ltd. vs Managing Director, Pashchimanchal Vidyut Vitran Nigam Ltd....
Checking relevance for Rkg Industries LLP VS Uttar Pradesh Power Corporation Limited...
Rkg Industries LLP VS Uttar Pradesh Power Corporation Limited - 2023 0 Supreme(All) 1964 : Under the U.P. Electricity Supply Code 2005, and as affirmed by the Apex Court in Telangana State Southern Power Distribution Company Limited (supra), an auction purchaser cannot deny liability for outstanding electricity dues of the previous owner when such dues are explicitly mentioned or implied in the auction memorandum. The court held that the auction purchaser is liable for these statutory dues because the auction sale notice—particularly when it includes terms like ''''as is where is, what is there is and without any recourse basis''''—clearly imposes the obligation to pay pre-existing electricity dues. Clause 4.3(f)(i) of the U.P. Electricity Supply Code 2005 specifically imposes a duty on the purchaser to inquire into and clear outstanding electricity dues before purchase. Furthermore, the Apex Court emphasized in Telangana State Southern Power Distribution Company Limited that electricity dues partake the character of statutory dues, and if the auction notice contains specific clauses addressing such dues (as in this case), the purchaser cannot escape liability. Therefore, where electricity dues are intact as per the auction memorandum, the buyer cannot deny liability.Checking relevance for Asian Steel Traders, represented by its Proprietor, M.A. Khadar Mohideen vs Official Liquidator, High Court of Kerala...
Asian Steel Traders, represented by its Proprietor, M.A. Khadar Mohideen vs Official Liquidator, High Court of Kerala - 2025 0 Supreme(Ker) 1241 : Where electricity dues are specifically mentioned in the auction memorandum as a liability of the purchaser under an ''''as-is-where-is'''' sale, the buyer cannot deny liability for such dues. The Supreme Court in K.C. Ninan v. Kerala SEB and Srigdhaa Beverages has held that when the existence of electricity dues is explicitly stated in the auction notice, the purchaser is clearly put on notice and is bound to inspect the premises and account for such dues. The court emphasized that a prudent buyer must satisfy themselves about pending statutory dues, and where power disconnection is evident, it would be implausible for the buyer to claim ignorance of outstanding electricity dues. Therefore, if electricity dues are intact as per the auction memorandum, the buyer cannot deny liability.
