Case Note & Summary
The appellant, OPG Power Generation Pvt. Ltd., filed a writ appeal against the order of a learned Single Judge dismissing its writ petition. The appellant had sought a direction to the respondent, Gulbarga Electricity Supply Co. Ltd., to sanction a new electricity connection without insisting on payment of arrears of electricity charges pertaining to the subject property. The appellant had purchased the property in an auction and argued that it was not liable for the arrears incurred by the previous owner. The learned Single Judge upheld the respondent's stand that payment of arrears is a precondition for sanctioning a new connection. In the appeal, the Division Bench of the Karnataka High Court considered the provisions of the Electricity Act, 2003, particularly Sections 43 and 56. The court noted that the liability to pay arrears attaches to the property and not merely to the previous consumer. The court held that the respondent was justified in demanding payment of arrears before granting a new connection, as the connection is sought for the same premises. The court also observed that the appellant, having purchased the property, must bear the burden of past dues. The appeal was dismissed, and the order of the learned Single Judge was upheld. However, the court granted some reprieve by allowing the appellant to pay the arrears in installments, subject to the respondent's consent.
Headnote
A) Electricity Law - Sanction of Power Connection - Precondition of Payment of Arrears - Section 43, Section 56 of Electricity Act, 2003 - The court considered whether the respondent could insist on payment of arrears of electricity charges by the appellant, a subsequent purchaser, as a precondition for granting a new connection. The court held that the liability to pay arrears attaches to the property and not merely to the previous consumer, and thus the respondent was justified in demanding payment of arrears before sanctioning a new connection. (Paras 1-2) B) Electricity Law - Arrears of Electricity Charges - Liability of Subsequent Purchaser - Section 43, Section 56 of Electricity Act, 2003 - The court examined the argument that the appellant, being a subsequent purchaser, should not be liable for arrears incurred by the previous owner. The court held that the electricity dues are a charge on the property and the subsequent purchaser cannot escape liability, as the connection is sought for the same premises. (Paras 2-3)
Issue of Consideration
Whether the respondent-Electricity Supply Company can insist on payment of arrears of electricity charges in respect of the subject property as a precondition for sanctioning a new power connection to the appellant, who is a subsequent purchaser of the property.
Final Decision
The writ appeal is dismissed. The order of the learned Single Judge dated 24.02.2021 in W.P.No.109192/2017 is upheld. However, the appellant is granted liberty to approach the respondent for payment of arrears in installments, subject to the respondent's consent.
Law Points
- Electricity connection
- arrears of electricity charges
- precondition for sanction
- Section 43 of Electricity Act
- 2003
- Section 56 of Electricity Act
- liability of subsequent purchaser
