Fresh electricity connection cannot be tied to old arrears when an auction purchaser seeks supply for purchased premises.

An auction purchaser of a company in liquidation who applies for a fresh electricity connection cannot be compelled to clear the erstwhile owner's arrears as a condition for supply. Regulation 13(10)(b) of the Electricity Supply Code was held applicable only to transfer of an existing service connection, not to a new connection sought by a purchaser who did not request transfer of the old connection. Section 43 of the Electricity Act, 2003 obliges the distribution licensee to supply electricity on request, and past dues are not ordinarily a charge on the property. In the absence of a specific statutory rule authorising recovery from the purchaser, the demand for old arrears was unsustainable and supply had to be given without insisting on payment of those dues.

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Issues: Whether an auction purchaser of a company in liquidation, who seeks a fresh electricity connection for the purchased unit, can be compelled to clear arrears of electricity dues standing against the erstwhile owner as a condition for supply.

Analysis: Regulation 13(10)(b) of the Electricity Supply Code applies to transfer of an existing service connection from one consumer to another and requires clearance of arrears of the previous occupier. It does not govern a request for a fresh connection by a purchaser who has acquired the premises in auction and has not sought transfer of the old connection. Section 43 of the Electricity Act, 2003 casts a duty on the distribution licensee to supply electricity on request by the owner or occupier, subject to compliance with lawful conditions for a new connection. The arrears in question were not the liability of the purchaser, and there was no privity of contract between the purchaser and the supplier in respect of the past dues. The applicable legal principle is that arrears of electricity do not ordinarily constitute a charge on the property, and in the absence of a specific statutory provision authorising recovery from a purchaser seeking fresh supply, past dues of the former consumer cannot be foisted on the auction purchaser.

Conclusion: The purchaser could not be made liable for the erstwhile company's electricity arrears as a condition for obtaining a fresh connection; the demand was unsustainable.

Final Conclusion: The appeal failed, and the order directing supply of electricity without insisting on payment of the previous owner's arrears stood affirmed.

Ratio Decidendi: A purchaser seeking a fresh electricity connection cannot be compelled to clear the prior consumer's arrears unless a specific statutory rule or condition of supply expressly authorises recovery of such dues from the purchaser.

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