SPL.OFFICER COM.NORTH EAS.ELC.CO. vs M/S RAGHUNATH PAPER MILLS P.LTD.

The Supreme Court ruled that a company purchasing assets of another company in liquidation is not liable for the outstanding electricity dues of the previous owner. The Court emphasized that the liability for such dues does not transfer with the sale of assets under the Companies Act, specifically under Section 529 and Section 530, which govern the distribution of assets in liquidation. The appeal by the North Eastern Electricity Supply Company of Orissa was dismissed, affirming the High Court's order to provide electricity supply to the purchaser without the burden of previous dues.