VidhiSangh

Supreme Court of India · 01/06/2020

TELANGANA STATE SOUTHERN POWER DISTRIBUTION COMPANY LIMITED & ANR. versus M/S SRIGDHAA BEVERAGES

[2020] 4 S.C.R. 295 · 2020 INSC 410

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

The electricity distributor could require the auction purchaser to clear the previous owner’s arrears before supplying electricity. The auction terms expressly placed existing dues on the purchaser and disclosed outstanding liabilities, while the supply conditions permitted refusal of both an existing and a fresh connection until arrears were paid. The sale deed’s title-related indemnity did not cover those electricity dues. The contrary High Court orders were set aside.

Issues

  1. Whether the auction purchaser was liable for the previous owner’s electricity arrears under the auction and supply terms.
  2. Whether requesting a fresh connection avoided the clearance requirement.

Held

Result

Appeal allowed; High Court orders set aside. Distributor entitled to demand the last owner’s electricity arrears from the respondent purchaser. Parties to bear their own costs.

Judgment PDF: Supreme Court of India, [2020] 4 S.C.R. 295.