Electricity arrears do not run with property, so a bona fide auction purchaser cannot be made to clear predecessor dues for reconnection.

Electricity arrears under the Indian Electricity Act, 1910 are attributable to the consumer who incurred them and do not create a statutory charge on the premises. The electricity board may discontinue supply for non-payment by the defaulting consumer, but it cannot fasten that past contractual liability on a bona fide auction purchaser of a mortgaged industrial unit. Reconnection cannot be made conditional on payment of the predecessor's arrears unless statute expressly imposes such liability. Where the facts show continuity of the same entity, the purchaser's liability may still arise on those facts, but not merely because the premises earlier received supply.

---

---

Issues: Whether an auction purchaser of a mortgaged industrial unit is liable to clear the previous consumer's electricity arrears as a condition precedent for reconnection of supply.

Analysis: The right of the electricity board to discontinue supply for non-payment is traceable to Section 24 of the Indian Electricity Act, 1910, which operates against the consumer who incurred the dues. The scheme of Section 22 of the Indian Electricity Act, 1910, read with Clause VI of Schedule I and Section 26 of the Electricity (Supply) Act, 1948, shows that the statutory obligation is to supply energy to the premises on proper requisition, but the liability to pay past consumption charges remains personal to the contracting consumer or occupier. The judgment holds that there is no statutory charge on the premises for such dues, and the board cannot, by insisting on payment of arrears incurred by the erstwhile consumer, fasten contractual liability on a third-party auction purchaser who was not a party to the earlier consumption contract.

Conclusion: The auction purchaser is not liable to clear the previous consumer's electricity dues merely because the purchased premises had earlier enjoyed supply, and the board cannot make payment of those arrears a condition precedent to reconnection.

Final Conclusion: The appeals involving auction purchasers who sought to avoid liability for the predecessor's electricity arrears succeeded, while the appeal in which the facts showed continuity of the same entity failed.

Ratio Decidendi: Electricity arrears arising out of a prior consumption contract do not run with the property and cannot be recovered from a bona fide auction purchaser as a condition for reconnection unless the statute expressly creates such liability.

---