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Issues: (i) Whether the electricity board could insist, under the amended Terms and Conditions of Supply, that a transferee of an undertaking clear the arrears of the previous consumer before obtaining a fresh connection. (ii) Whether the earlier decision in Isha Marbles governed the dispute so as to prevent enforcement of the amended condition.
Issue (i): Whether the electricity board could insist, under the amended Terms and Conditions of Supply, that a transferee of an undertaking clear the arrears of the previous consumer before obtaining a fresh connection.
Analysis: The amended clause inserted into the supply conditions applied to transfers of occupancy and also to existing consumers where arrears existed against the premises. The application for fresh connection was made after the amendment had been circulated and formally notified, so the request was governed by the amended terms. The recovery provisions under the State enactments also supported the board's authority to secure dues through conditions attached to supply. The condition was statutory in character and could not be treated as beyond power merely because the purchaser acquired the premises earlier.
Conclusion: The amended condition was applicable to the transferee and could validly be invoked against it.
Issue (ii): Whether the earlier decision in Isha Marbles governed the dispute so as to prevent enforcement of the amended condition.
Analysis: The earlier decision concerned a situation where no comparable supply condition existed. It proceeded on the absence of contractual privity with the later purchaser and on the statutory position then obtaining. The present case involved an express supply condition inserted under the board's statutory power, together with recovery statutes enabling recovery of dues in respect of the premises. That made the earlier decision inapplicable as a complete answer to the challenge.
Conclusion: The earlier decision did not bar enforcement of the amended condition in the present case.
Final Conclusion: The High Court's judgment was set aside and the writ petition was remitted for fresh consideration, with interim protection crafted for continuation of supply on deposit of a part of the claimed arrears.
Ratio Decidendi: A statutory supply condition validly imposed under the electricity board's rule-making power can be applied to a fresh connection sought after its introduction, even by a transferee of premises, where the condition is supported by the governing recovery framework.
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