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Supreme Court of India 2023-05-19

K C Ninan vs Kerala State Electricity Board & Ors

Bench: 3 — Dhananjaya Y Chandrachud, Hima Kohli, Pamidighantam Sri Narasimha

In Brief

The Supreme Court held in this landmark 19-case batch that distribution licensees can require new owners of property sold at auction to pay outstanding electricity arrears of previous owners as a condition for new connections, provided statutory regulations authorize this. The Court clarified that the duty to supply electricity under Section 43 of the 2003 Act is not absolute—it applies to the consumer (the owner/occupier), not the premises itself. When a new owner applies for electricity, it constitutes a fresh connection, not a reconnection, even if the same premises. Electricity arrears do not automatically become a property charge, but regulations can create such charges. The Court exercised Article 142 jurisdiction to waive interest on principal dues from the date of application, balancing equities after two decades of litigation and recognizing impacts on commercial ventures.

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Electricity Supply Consumer Rights Property Law Regulatory Power Limitation of Actions Auction Sales Commercial Law Administrative Law Statutory Interpretation

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