New owner of property has to pay predecessor's power dues: SC

In a decision which may bring cheer to power distribution companies, the Supreme Court has ruled they are entitled to recover unpaid electricity bills of a property's former occupier from its new owner or occupier. A bench of Justices R V Raveendran and L S Panta rejected the argument that a subsequent purchaser cannot be foisted with the electricity dues of any previous occupant, merely because he or she happens to be the current owner. "A stipulation by the distributor that the dues in regard to the electricity supplied to the premises should be cleared before electricity supply is restored or a new connection is given to a premises cannot be termed as unreasonable or arbitrary," the apex court said. The apex court further observed "In the absence of such a stipulation, an unscrupulous consumer may commit defaults with impunity, and when the electricity supply is disconnected for non-payment, may sell away the property and move on to another property, thereby making it difficult, if not impossible for the distributor to recover the dues." The bench passed the ruling while upholding the rule framed by the Paschimanchal Vidyut Vitran Nigam Ltd which enabled the distribution company to recover the dues of the previous occupier from the new occupier.

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