TELANGANA STATE SOUTHERN POWER DISTRIBUTION COMPANY LIMITED vs M/S SRIGDHAA BEVERAGES

The Supreme Court ruled 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 electricity dues of the last owner, as the sale was conducted on an 'AS IS WHERE IS' basis. The Court emphasized that the successful bidder must bear all statutory dues, but this does not extend to liabilities incurred prior to the auction. The holding clarifies the extent of liability for auction purchasers in cases of secured asset sales.