KADINHIMOOLA VISHNUMURTHY DEVASWOM Vs. KERALA STATE ELECTRICITY BOARD

JUDGEMENT

(1.) Petitioner is a temple which purchased in auction sale an adjoining industrial property sold for recovery of arrears due to Kerala Financial Corporation. When the petitioner applied for electricity connection in the purchased property, KSEB has raised objection stating that it is defaulted premises inasmuch as the industry which was functioning earlier in the property which was purchased by the petitioner has liability of over Rs.10 Lakhs. A Division Bench of this Court in Purushothaman v. KSEB., 2007 (2) KHC 424 : 2007 (2) KLT 827 : ILR 2007 (2) Ker. 378 : 2007 (2) KLJ 185 : AIR 2007 Ker. 201 held that Electricity Board is entitled to deny electricity connection in the defaulted premises, and the arrears cannot be recovered by attachment and sale of the very same property. In Souriyar Luka v. KSEB, 1959 KHC 5 : 1959 KLT 14 : 1959 KLJ 88 : ILR 1959 Ker. 187 : AIR 1959 Ker. 199 : 1959 KLR 54, this Court has held that the purchaser gets the property sold in recovery proceedings free of all encumbrances and therefore, recovery cannot be taken against the purchaser. The learned single Judge observed that the decisions in these two judgments are conflicting. Hence referred the matter to the Division Bench. These two questions are decided by the Supreme Court in Paschimanchal Vidyut Vitran Nigam Ltd. v. DVS Steels & Alloys Pvt. Ltd., 2009 (1) KLT 253 (SC) wherein the Supreme Court finally held that the arrears of electricity charges cannot be realised from the purchaser of a property in Revenue sale. At the same time, it is also stated that the Electricity Board is entitled to say that no connection will be given till the arrears are paid. Under Regulation 19(3) of the KSE Board Terms and Conditions of Supply 2005, 'when there is a transfer of ownership or right of occupancy of the premises, the registered consumer should intimate the transfer of occupancy of the premises within 7 days to the Assistant Engineer / Assistant Executive Engineer concerned. On such intimation having been received, the service shall be disconnected, after giving notices to the occupants. If the transferee desires to enjoy the service connection, he shall pay the dues to the Board and apply for the transfer of the ownership of service connection within 15 days and execute fresh agreement and furnish additional security. Since the previous owner has an outstanding arrears, the request for new connection was rightly rejected in this case.'

(2.) Therefore, petitioner being purchaser of the property, the electricity connection for the building bearing No. XV/391 of the Nileshwar Grama Panchayat by Ext. P1 document cannot be granted without payment of arrears, as it was defaulted premises. But at the same time, Electricity Board cannot recover the arrears from the purchaser of the property, the writ petitioner. By an interim order, electricity connection was given to the petitioner. But if the petitioner wants to continue the electricity connection, it may pay the arrears within three months from the date of receipt of a copy of this judgment. If the petitioner is aggrieved by the levy of interest, it can approach the Electricity Board or Adalath for reduction of the interest as the matter was pending before this Court.