Spl.Officer Com.North Eas.Elc.Co.& ... vs M/S Raghunath Paper Mills P.Ltd.& Anr

The Supreme Court held that a company purchasing assets of another company in liquidation is not liable for the outstanding electricity dues of the previous owner. The Court referenced the Companies Act and emphasized that the principle of 'no liability for past debts' applies in such transactions. The Court upheld the High Court's decision to quash the demand for payment of arrears, affirming that the purchaser's rights are protected under the auction terms.