Legal Views

  Power of Distribution Licensee under the Electricity Act, 2003 to recover the Electricity dues;                                              Supreme Court's latest view.   T o recover the arrears of the electricity consumption is always prime concern of the  distribution companies under the regime of the electricity law.  section 56 of the Electricity Act, 2003 provides for the disconnection of supply in default of payment  wherein it is mentioned that where any person neglects to  pay any charges for electricity or any sum other than a charge for electricity due from him to a licensee or the generating company in respect of  supply, transmission or distribution or wheeling of electricity to him, the licensee or the generating company may, after giving not less than fifteen  clear days notice in writing, to such ...

Auction Purchaser not liable to clear the outstanding dues of the Electricity of previous owner   Property purchased under the liquidation proceedings conducted under the IBC, the issue which is very debatable over the period of time, the auction purchaser is not liable to clear the outstanding dues of the previous owner of the property.  the National Company Law Appellate Tribunal,  Principal Bench New Delhi,    has  set at rest the proposition in the  in the Company Appeal No. 961 of 2021 decided on 26-05-2022  titled as  Eastern Power Distribution Company of Andhra Pradesh Limited versus Maintan Alloys Limited and others wherein the Hon'ble Appellate Tribunal held as under: (para 17)     “17.  It is noted that the Hon’ble Supreme Court in the above case was considering the Auction Sale under SARFAESI Act, 2002. No provision of IBS were under consideration of  Hon’ble Supreme Court. In the IBC proceedings, the electric...