IN THE HIGH COURT OF KARNATAKA CIRCUIT BENCH AT DHARWAD

DATED THIS THE 17TH DAY OF JULY, 2012 PRESENT

THE HON'BLE MR. JUSTICE N. KUMAR

AND

THE HON'BLE MR. JUSTICE H . S. KEMPANNA

WRIT APPEAL NO.6438/2011 (GM-RES )

BETWEEN:

Shri. Keshav Cements and Infra Limited (Formerly Katwa Udyog Ltd..) Jyoti Tower No.215/2, Karbar Street Nazar Camp, Vadgaoan Belgaum:590005 By its Chairman. …Appellant

(By Sri. S.Hanumanth Reddy Sanukar, Adv., for Sri.L.M.Chidanandayya, Adv.,)

AND:

• 1. Hubli Electricity Supply Company Limited, Hubli By its Managing Director.
• 2. The Asst. Executive Engineer (E), Hubli Electricity Supply Co. Ltd., Sub-Division Office

Mudhol
Dist. Bagalkot.	…Respondents

This Writ Appeal is filed under Section 4 of the Karnataka High Court Act, praying to set aside the order dated 22.3.2011 passed by the learned Single Judge in W.P.No.66434/2010.

This appeal coming on for orders this day, N.Kumar J. , delivered the following:

J U D G M E N T

This appeal is preferred against the order passed by the learned Single Judge who has dismissed the writ petition and held that the appellant is liable to pay the electricity dues which were due from the concerned cement plants which he has purchased in an auction sale.

2. Clause 4.09 (iv) of the General Conditions of Supply of Electricity of Distribution of licensees in Karnataka expressly states, if any person desires to have electricity for a premises for which the power supply agreement has been terminated (whether service line is dismantled or not) he shall be treated as a fresh applicant and the licensee shall collect the outstanding arrears in respect of the said premise from such person before connection is given. It is not in dispute that a sum of Rs.35,11,332/- was the amount due to the Electricity Department from the M/s. Shri. Quality Cements Ltd. The appellant has purchased the cement plant in a public auction held by the Debts Recovery Tribunal, Pune, on 7.5.2007. It is settled law that what the purchaser purchased the property in such a public auction is right, title and interest of the seller. When a person purchases a property in a Court auction, such a Court auction encompasses encumbrances, such as liabilities i.e. dues of the seller. Therefore, when the seller is due Rs.34,11,332/- to the Electricity Department, when the cement plants, electricity installation is purchased and when they want electricity to be supplied to the said cement plants, then the

purchaser in law is bound to pay the arrears and he cannot escape from the said liability. In that view of the matter, we do not see any merit in this writ appeal.

3. Learned counsel for the appellant has relied on two judgments of the Apex Court in the case of Haryana Seb V. Hanuman Rice Mills reported in (2010) 9 SCC 145 and in the case of Isha Marbles V. Bihar State Electricity Board and Another reported in (1995) 7 SCC 648. In the said cases the Hon'ble Supreme Court dealing with the liability of the purchaser in the absence of any rule governing the party, it made it very clear that if the rule is provided for payment of such liability, it cannot be avoided. In this case there is an express rules, which bind the parties. Therefore, no merits in this writ appeal and it is dismissed.

In fact, in this case under protest the entire amount is deposited. Therefore, no more deposit to be made.

SD/- JUDGE

SD/- JUDGE

SA/-