ISHA MARBLES vs BIHAR STATE ELECTRICITY BD.

The Supreme Court addressed the liability of auction purchasers for outstanding electricity dues of previous consumers under Section 29(1) of the Bihar State Financial Corporation Act, 1951. The Court held that the auction purchaser is not liable for the electricity dues incurred prior to their acquisition of the property, as there is no consumption of electricity by the new owner before the transfer. The appeals were allowed, overturning the High Court's decision that imposed liability on the purchasers.