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Supreme Court of India 2020-06-01 allowed

Telangana State Southern Power Distribution Company Limited & Anr vs Srigdhaa Beverages

Bench: 2 — <UNKNOWN>, <UNKNOWN>

In Brief

A beverage company purchased a property through a securitised asset auction and sought to reconnect the electricity supply. The power distribution company demanded payment of the previous owner's unpaid dues. The Supreme Court held that the auction notice explicitly listed and quantified the dues, putting the buyer on notice. The sale was on an 'as is where is' basis with freedom from encumbrances. The indemnity clause protected only against title defects, not statutory dues. The buyer was not liable for arrears; the power company retained rights against the original defaulter. The appeal was allowed and orders set aside."

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Electricity Law Property Law Auction Sales Financial Liabilities Title Defects Secured Creditor

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