Telangana State Southern Power ... vs M/S Srigdhaa Beverages

The Supreme Court held that under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), the auction-purchaser is not liable for the previous owner's electricity dues as the sale was conducted on an 'AS IS WHERE IS' basis. The Court emphasized that the terms of the auction clearly stated that the successful bidder would bear all statutory dues, but did not extend this liability to pre-existing dues of the previous owner. The Court ruled in favor of the respondent, affirming that the liability for past dues does not transfer with the sale of the property.