Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - Auction purchaser - Liability towards previous electricity dues of the last owner - Under Clause 24, Property sold on "AS IS WHERE IS, WHATEVER THERE IS AND WITHOUT RECOURSE BASIS" in all respects and subject to statutory dues if any – Under Clause 26, Authorised Officer carrying out the auction absolved himself of the liability for any charge, lien, encumbrance, property tax dues, electricity dues, etc.- a holistic reading of all these clauses left little in doubt that the auction notice provided for a reserve price, with a bid being made about Rs.10 lakh over and above that, and certain nature of charges, lien, encumbrances, including electricity dues were clearly beyond the sale consideration paid - Security Interest (Enforcement) Rules, Rule 8 & 9. Held, an auction purchaser bidding in an "as is where is, whatever there is and without recourse basis", the respondent would have inspected the premises and made inquiries about the dues in all respects. The facts of the present case, as in Dakshin Haryana Bijli Vitran Nigam Ltd. v. Paramount Polymers (P) Ltd., are more explicit in character as there is a specific mention of the quantification of dues of various accounts including electricity dues. The respondent was, thus, clearly put to notice in this behalf. Held, Where, as in cases of the E-auction notice in question, the existence of electricity dues, whether quantified or not, has been specifically mentioned as a liability of the purchaser and the sale is on "AS IS WHERE IS, WHATEVER THERE IS AND WITHOUT RECOURSE BASIS", there can be no doubt that the liability to pay electricity dues exists on the respondent (purchaser). (2020)198 Punjab law Reporter 639
Security Interest (Enforcement) Rules, Rule 8 & 9 - Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - Auction purchaser - Sale deed executed in pursuance of auction - Provided for the sale "made free from all encumbrances known to the Secured Creditor." - An indemnity was provided by the vendor to the respondent against "any loss arising out of any defect in the title, including recovery of statutory liabilities taxes, as also litigation expenses arising out of such defects in title." - This indemnity was, confined to aspects mentioned in this clause, but relatable to defects in title, and not to other liabilities like electricity dues. (2020)198 Punjab law Reporter 639
Electricity dues - Statutory - Partake the character of statutory dues under the Electricity Act, 2003 read with the General Terms & Conditions of Supply - The mere fact that agreements were entered into with every consumer only served the purpose of bringing to the notice of the consumer the terms and conditions of supply, but did not make the dues purely contractual in character - General Terms and Conditions of Supply of Distribution & Retail Supply Licensees in AP - Clauses 5.9.6 and 8.4. Held, that electricity dues, where they are statutory in character under the Electricity Act and as per the terms & conditions of supply, cannot be waived in view of the provisions of the Act itself more specifically Section 56 of the Electricity Act, 2003 (in pari materia with Section 24 of the Electricity Act, 1910), and cannot partake the character of dues of purely contractual nature. (2020)198 Punjab law Reporter 639
Facts: Property sold under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Auction purchaser applied to electricity board for connection. Request denied on the ground that there were previous electricity dues. Board asserted its right to recover this amount even from the new purchaser (auction purchaser), based on a reading of Clauses 5.9.6 and 8.4 of the General Terms and Conditions of Supply of Distribution & Retail Supply Licensees in AP (for short 'General Terms & Conditions of Supply').
Supreme Court e@journal
Annual subscription Rs. 1000/-
Full text with Headnotes through email / WhatsApp
call 9383598502/ email@example.com