Case Note & Summary
The petitioner, Subodhkumar Manikchand Jain, purchased a property through an auction conducted by the Provident Fund Department. The property had outstanding electricity dues from the previous owner. When the petitioner applied for a new electricity connection, the respondents (Maharashtra State Electricity Distribution Company Limited) refused to grant it unless the arrears were paid. The petitioner filed a writ petition. The High Court, after hearing both parties, had earlier directed the respondents to provide a connection on condition of depositing the amount, which the petitioner did. The amount remained deposited as the respondents could not withdraw it. The court considered the legality of the refusal. It relied on a Division Bench decision in Jaisukhlal N. Bhuta v. Maharashtra State Electricity Board, which held that a new owner cannot be denied a connection for previous owner's dues. The court found no provision allowing such refusal and held that the petitioner, as a lawful auction purchaser, is entitled to a new connection without paying the arrears. The court directed the respondents to provide the connection and allowed the petitioner to withdraw the deposited amount.
Headnote
A) Electricity Law - New Connection - Arrears of Previous Owner - The respondents refused to grant a new electricity connection to the petitioner, who purchased the property in an auction, due to unpaid dues of the erstwhile owner. The court held that such refusal is illegal and unsustainable, as the petitioner is not liable for the previous owner's arrears. (Paras 2-4) B) Electricity Law - Auction Purchaser - Liability - The petitioner, being a bona fide purchaser through a legal auction by the Provident Fund Department, cannot be burdened with the electricity dues of the previous owner. The court directed the respondents to provide a new connection without insisting on payment of arrears. (Paras 2-4)
Issue of Consideration
Whether the respondents can refuse a new electricity connection to the petitioner, who purchased the property through an auction, on the ground of unpaid electricity dues of the erstwhile owner.
Final Decision
Writ petition allowed. Respondents directed to provide new electricity connection to the petitioner without insisting on payment of arrears of the previous owner. Petitioner permitted to withdraw the amount deposited in court.
Law Points
- Electricity connection cannot be denied to a new owner for arrears of previous owner
- auction purchaser not liable for prior dues
- Electricity (Supply) Act
- 1948 provisions
