TaxTMI 
TaxTMI 
2026 (5) TMI 1310
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....ioner's unit as illegal, arbitrary, unwarranted and contrary to law and the same may be set aside and consequently direct the respondents not to disconnect the power supply to the petitioner unit No.D-4, Phase -IV Extn, IDA Jeedimetla, Hyderabad" 3. The brief facts of the case are that the petitioner purchased premises bearing No.D-4, Phase-IV Extension, IDA Jeedimetla, Hyderabad from M/s. Victory Transformers and Switchgears Ltd., in an auction conducted on 21.02.2020 by the Insolvency Professional under aegis of NCLAT. In the said auction, the sale certificate was issued in favour of the petitioner on 02.09.2020. On 24.06.2021, the Official Liquidator executed a registered sale deed in favour of the petitioner and the same was registered vide document No.17172 of 2021 and conveyed with absolute title, right and interest with respect to the property consisting of industrial plot with constructed structures, shed bearing No.D-4 (ground plus two floors) with a plinth area of 28684 Sq.fts., RCC and 1800 Sq.ft., ACC, in all admeasuring 2917.33 Sq.yds., in IDA, Phase-IV (Extn), IDA Jeedimetla situated at Gajularamaram Village, Qutubullahpur Mandal. 4. The property which was origi....
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.... not bar the recovery of electricity arrears through other avenues for recovery in accordance with law. 8. The respondents claim that they have got every right to disconnect the power supply in case the previous owner's dues are not paid under Clause 4.8.1 of Electricity Supply Code Regulations 7 of 2013. According to the respondents, the auction purchaser has to satisfy themselves in all the circumstances with respect to title, encumbrances and pending statutory dues while ascertaining facilities available including the electricity supply and electricity dues pending. 9. The respondents relied upon judgment of the Hon'ble Supreme Court in TSSPDCL v. Srigdhaa Beverages 2020 6 SCC 404 to claim that the subsequent purchaser is liable to pay the dues whenever the purchase is 'as is where is', 'whatever there is' and 'without recourse basis'. Further recovery notice is based on general terms of supply Clause 8.4 which states as follows:- "The seller of the property should clear all the dues to the company before selling such property, if the seller did not clear the dues as mentioned above, the company may refuse to supply electricity to the premises through the already ....
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....any proceedings in respect to a claim, which is not part of the resolution plan." 12. Lastly, learned counsel for the petitioner submits that the demand notice contains a claim which is time barred. In that context, he relied upon the judgment of this Court in the case of Sri Sai Baba Cellulose Pvt. Ltd., Hyderabad v. State of Telangana 2020 4 SCC 650 wherein it is held as follows:- "Right of licensee company to disconnect supply of electricity - Is subject to period of limitation of two years provided under S.56(2) - S.56(2) does not, as held by Supreme Court in (2020) 4 SCC 650, preclude licensee company from raising additional or supplementary demand after expiry of limitation period in case of a mistake or bona fide error - However, it does not empower disconnection of electricity supply, for recovery of additional demand." 13. In response, learned counsel for the respondents relied upon the judgment of Hon'ble Supreme Court reported in Srigdhaa Beverages (supra) wherein it is held as follows:- "Once the purchaser purchases the property on "AS IN WHERE IS, WHATEVER THERE IS AND WITHOUT RECOURSE BASIS", there can be no doubt that the liability to pay elec....
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....Beverages (supra), wherein it is held that electricity dues being statutory in character under the Electricity Act and as per the terms and conditions to supply, cannot be waived and cannot partake the character of dues of purely contractual nature. This finding was given against the auction purchaser, who participated in the auction under the SARFAESI Act, 2002. When the auction is conducted under the SARFAESI Act and purchaser has purchased in the auction and the sale is on 'as is where is, whatever there is and without recourse basis', the liability to pay electricity dues survives on the purchaser i.e., said liabilities do not stand extinguished. 18. To the contrary, the Hon'ble Supreme Court of India in Ghanashyam Mishra (supra) has clearly held that once a resolution plan is approved, in case statutory and Governmental dues are not presented before the liquidator, such statutory and Governmental dues claims shall stand extinguished. The language is crystal clear. Unless a claim is made before the resolution professional and claim is part of the resolution plan, the State Government or Central Government or local authority cannot make any claim subsequently. 19. The righ....