M/S ISHA MARBLES ETC. ETC. versus BIHAR STATE ELECTRICITY BOARD AND ANR. ETC. ETC.

M/S ISHA MARBLES ETC. ETC. versus BIHAR STATE ELECTRICITY BOARD AND ANR. ETC. ETC.

Auction purchaser is not liable for arrears incurred by previous consumer; Board cannot insist on clearing past arrears as condition to supply; liability is contractual, not statutory or attached to the property; remedies against previous consumer remain available, but cannot be enforced against new owner unless continuity of contract is established.

Parties
Appellant: M/S Isha Marbles; Respondent: Bihar State Electricity Board; Statutory Party: Bihar State Financial Corporation
Jurisdiction
India
Judgment Date
03 February 1995
Procedural Posture
Civil Appeal / Final Judgment of Supreme Court, Appeals From Patna High Court
Outcome
Appeal of Isha Marbles allowed; other appeals dismissed; High Court decision in Isha Marbles case set aside; High Court decisions in Waxpol Industries, Suman Packaging, Abhay Kumar, North East Fertilizers upheld
Legal Topics
Liability of Auction Purchaser for Electricity Dues, Remedies for Recovery of Electricity Dues, Statutory Obligations of Electricity Board, Relationship Between Contractual and Statutory Liabilities
Electricity Law Contract Law Property Law Administrative Law Liability of Auction Purchaser for Electricity Dues Remedies for Recovery of Electricity Dues Statutory Obligations of Electricity Board Relationship Between Contractual and Statutory Liabilities

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Parties

M/S Isha Marbles

Appellant

Bihar State Electricity Board

Respondent

Bihar State Financial Corporation

Statutory Party

Procedural Posture

Civil Appeal / Final Judgment of Supreme Court, Appeals From Patna High Court

Legal Issues

  1. 1 Whether an auction purchaser of mortgaged assets is liable for electricity dues incurred by previous consumer before transfer
  2. 2 Whether electricity board can insist upon clearing arrears of previous consumer as precondition for new/reconnection
  3. 3 Nature of remedies available for recovery of electricity dues

Ratio Decidendi

Auction purchaser is not liable for arrears incurred by previous consumer; Board cannot insist on clearing past arrears as condition to supply; liability is contractual, not statutory or attached to the property; remedies against previous consumer remain available, but cannot be enforced against new owner unless continuity of contract is established.

Court Disposition

Appeal of Isha Marbles allowed; other appeals dismissed; High Court decision in Isha Marbles case set aside; High Court decisions in Waxpol Industries, Suman Packaging, Abhay Kumar, North East Fertilizers upheld

Orders

  • Civil Appeal No. 1418 of 1995 (Isha Marbles) allowed with costs; High Court judgment set aside
  • Civil Appeal Nos. 1420, 1419, 1422, 1421 of 1995 (Waxpol Industries Pvt. Ltd., Suman Packaging Pvt. Ltd., Abhay Kumar, North East Fertilizers Pvt. Ltd.) dismissed with costs; High Court judgments upheld