Case Note & Summary
The Maharashtra State Electricity Distribution Company Limited (MSEDCL) filed a writ petition challenging an order of the Electricity Ombudsman, Nagpur, dated 30.10.2012. The Ombudsman had directed MSEDCL to provide a new electricity connection to Dr. Neelima Deshmukh, who had purchased a property in an auction conducted by the Maharashtra State Financial Corporation. The property previously belonged to M/s Himalaya Ice Factory, which had accumulated electricity arrears of Rs.5,31,470/-. The connection was disconnected in 1991 due to non-payment. Dr. Deshmukh purchased the property in 1992 and subsequently applied for a new electricity connection multiple times between 2008 and 2012. MSEDCL refused, insisting that the previous dues must be cleared first. Dr. Deshmukh approached the Consumer Grievance Redressal Forum, which dismissed her complaint. She then appealed to the Electricity Ombudsman, who allowed her representation and directed MSEDCL to provide a new connection without insisting on payment of the previous owner's arrears. MSEDCL challenged this order in the High Court. The court considered whether an auction purchaser can be held liable for the previous owner's electricity dues. It held that under the Electricity Act, 2003, the liability to pay for electricity consumed rests with the consumer who actually used the supply. There is no provision making a subsequent purchaser liable for arrears of a previous owner. The court noted that the property was purchased in an auction by MSFC, and Dr. Deshmukh was a bona fide purchaser. The court dismissed the petition, upholding the Ombudsman's order and directing MSEDCL to provide a new connection within four weeks.
Headnote
A) Electricity Law - New Connection - Liability for Previous Dues - Section 43, Section 56 of the Electricity Act, 2003 - The issue was whether the petitioner, an auction purchaser of a property, could be required to pay the electricity arrears of the previous owner as a precondition for a new connection. The court held that the liability to pay arrears is that of the consumer who enjoyed the supply, and a subsequent purchaser cannot be made liable unless there is a statutory provision or contract to the contrary. The Ombudsman's order directing the electricity company to provide a new connection without insisting on payment of previous dues was upheld. (Paras 4-6)
Issue of Consideration
Whether an auction purchaser of a property can be compelled to pay the electricity dues of the previous owner as a condition for grant of a new electricity connection.
Final Decision
The High Court dismissed the writ petition and upheld the order of the Electricity Ombudsman dated 30.10.2012. MSEDCL was directed to provide a new electricity connection to respondent No.2 within four weeks from the date of the order, without insisting on payment of the previous owner's arrears.
Law Points
- Electricity supply
- auction purchaser
- previous dues
- new connection
- Electricity Act 2003
- Section 43
- Section 56
- liability of subsequent purchaser
