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The petitioner is challenging revenue recovery steps initiated against him pursuant to Exts.P2 and P3 notices, issued under Section 7 and 34 of the Kerala Revenue Recovery Act. The amount sought to be recovered pertains to the arrears of electricity charges due with respect to electric connection with Consumer No.7281 provided from the Electrical Section, Padiyothuchal. The connection was provided to M/s.Softex Industries, on 01.11.1995. All the immovable assets of the said industry was taken over by the Kerala Financial Corporation (KFC) on 15.3.2000 in exercise of power vested under Section 29 of the State Financial Corporation Act, consequent to the default committed by M/s.Softex Industries in repayment of the loan availed.

2. The said industrial unit along with its assets were bid by the petitioner in an auction conducted by the KFC, pursuant to a notification published on 5.11.2005. Ext. P1 is the 'Deed of Sale' executed in favour of the petitioner by the KFC, on 16.9.2008. Contention of the petitioner is that he is not the consumer who had defaulted payment of the electricity charges and the property which he had purchased from KFC cannot in any way be proceeded against for realising arrears due from the consumer, M/s.Softex Industries. Hence the impugned recovery steps is bad in law and unsustainable, is the contention.

3. In the counter affidavit of the 3rd respondent it is conceded that the connection in question was provided on 1.11.95. Take over of the industry by KFC is also admitted. It is stated that the requisition for revenue recovery steps was initially issued against the Managing Partner of M/s. Softex Industries. But in the revenue recovery conference held on 15.2.2013 at the District level, it was decided to return the requisition and the authorities of the Board was directed to submit new requisition against the person who bought the land from KFC, since the liability towards the KSEB is pending with the buyer. It is only based on such decision fresh revenue recovery requisition was issued against the petitioner. It is pointed out that by virtue of clause (4) of Ext.P1 Sale Deed the petitioner is at liability, since it is specifically mentioned that the outstanding dues if any on account of usage of electricity and water supply and other statutory liabilities are to be paid by the purchaser. Learned Standing Counsel appearing for the 3rd respondent had conceded that the connection was given on 1.11.1995 and it was dismantled during October 2002.

8. In view of the legal position remaining settled as above, it cannot be held that the property purchased by the petitioner by virtue of Ext.P1 can be proceeded against for recovery of the arrears of electricity charges due from its previous owner, M/s. Softex Industries or due from the KFC who had taken over the property under section 29 of the SFC Act and kept it in possession until the auction sale.

9. Another contention raised by the 3rd respondent is based on the stipulations contained in Ext.P1 sale deed, wherein it is mentioned that it will be the liability of the purchaser for payment of outstanding dues on account of electricity supplied. But in view of the legal position remaining settled as enumerated above KSEB cannot enforce the demand against the petitioner based on the terms of the contract of sale, to which the Board is not a party. As contended by learned counsel for the petitioner, rights and obligations arising out of the contract of sale will apply only to the parties of such contract and not to the electricity Board. What is indemnified through the above said terms of the sale is only the liability of KFC with respect to payment of any electricity dues. Since the Electricity Board has not proceeded against the KFC for realisation of any such amounts, the question of recovery from the petitioner does not arise. Further the Board has no case that they were entitled to realise the dues of the consumer from KFC. Such a claim even if raised cannot be sustainable in view of the legal position enumerated.