IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE ACTING CHIEF JUSTICE MR.J.B.KOSHY & THE HONOURABLE MR. JUSTICE V.GIRI TUESDAY, THE 27TH JANUARY 2009 / 7TH MAGHA 1930 WP(C).No. 24791 of 2007(B) -------------------------- PETITIONER(S): --------------- SRI.KADINHIMOOLA VISHNUMURTHY DEVASWOM, REPRESENTED BY ITS PRESIDENT SRI.E.KRISHNAN, THAIKADAPURAM, NILESHWARAM VILLAGE, HOSDURG TALUK, KASARAGOD DISTRICT, P.O.THAIKADAPURAM - 671 314. BY ADV. SRI.K.SHRIHARI RAO SMT.N.SHOBHA RESPONDENT(S): --------------- 1. KERALA STATE ELECTRICITY BOARD, REPRESENTED BY ITS SECRETARY, TRIVANDRUM. 2. THE ASSISTANT ENGINEER, ELECTRICAL SECTION, KERALA STATE ELECTRICITY BOARD, NILESHWAR, KASARAGOD. 3. THE SPECIAL OFFICER (REVENUE), KERALA STATE ELECTRICITY BOARD, KSEB OFFICE, TRIVANDRUM. 4. THE KERALA FINANCIAL CORPORATION LIMITED, REPRESENTED BY ITS MANAGING DIRECTOR, K.F.C OFFICE, TRIVANDRUM. 5. THE MANAGER, K.F.C. BRANCH OFFICE, KASARAGOD. ADV. SRI.P.P.THAJUDEEN, SC, K.S.E.B FOR R.1TOR3 SRI.C.K.KARUNAKARAN, SC FOR KSEB FOR R1 TO 3 SRI.K.JAJU BABU,SC,KERALA FINANCIAL COR FOR R4-5 SMT.R.S.GEETHA FOR R4-5 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 27/01/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 24791 of 2007 APPENDIX EXHIBITS EXT.P1- TRUE COPY OF THE SALE DEED NO.3242/1 DATED 26.11.04 MADE BY THE 5TH RESPONDENT IN FAVOUR OF THE PETITIONER EXT.P2- TRUE COPY OF THE LETTER DATED 6.3.07 OF THE 2ND RESPONDENT TO THE PETITIONER EXT.P3- TRUE COPY OF THE NOTICE DATED 4.1.95 OF THE 3RD RESPONDENT TO THE DISTRICT COLLECTOR, KASARAGOD EXT.P4- TRUE COPY OF THE LEGAL NOTICE DATED 7.5.07 SENT BY THE PETITIONER TO THE 5TH RESPONDENT EXT.P5- TRUE COPY OF THE REPLY DATED 22.5.07 OF THE 5TH RESPONDENT (TRUE COPY) P.A TO JUDGE J.B.KOSHY,Ag.C.J. & V.GIRI, J -------------------------------- W.P.(C).24791/2007 ----------------------------- Dated this 27th day of January, 2009 JUDGMENT Koshy (Ag.C.J.) 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 in as much 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. K.S.E.B (2007 (2) KLT 827) 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. K.S.E.B (1959 KLT 14), this Court has held that the purchaser gets the property sold in recovery proceedings free of all W.P.(C).24791/2007 2 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 realized 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 W.P.(C).24791/2007 3 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”. 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 W.P.(C).24791/2007 4 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. Writ petition is disposed of as above. sd/- J.B.KOSHY, Acting Chief Justice sd/- V.GIRI, Judge mrcs //true copy// P.A. to Judge