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An auction purchaser cannot be called upon to clear the past arrears

In SOUTHERN POWER DISTRIBUTION COMPANY OF TELENGANA LTD. Vs GOPAL AGARWAL, the Hon'ble Supreme Court held that the auction purchaser applied for a fresh electricity connection to its unit which was denied on the ground of non payment of arrears by the past owner. The request of the auction purchaser for a fresh connection could not have been rejected. The tender/sale notice mentioned that the property was being auctioned on “as is where is” basis. The First Respondent applied for a fresh connection and he is in no way connected to the past owner. He has also not undertaken to pay the past arrears of the previous owner. In view of the above, the Appeal is dismissed.

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