ORDER

Leave granted.

2. We have heard learned counsel on both sides.

3. The respondent-Municipality had made a consolidated outstanding demand for a sum of Rs. 1,01,501/- for years 1993-94, 1994-95 on December 16, 1993 towards the service charges. The appellants challenged the validity of the demand. On reference, the Division Bench in the impugned order dated May 15, 1995 in CWJC No. 3223/94 upheld the demand of the Municipality. Thus this appeal by special leave.

4. The controversy is no longer res integra. This Court in Union of India v. Purna Municipal Council & Ors.1, had held that Section 135 of the Railways Act is subject to the provisions of Article 285 of the Constitution. Therefore, the respondent-Municipality was restrained from demanding any payment by way of service charges from the Railways. Shri M.P. Jha, learned counsel appearing for the Municipality sought to rely on Clause (4) of Section 135 of the Railway Act which contemplates a contract between the Central Government and the Municipality and payment thereof on the basis of the said contract. In this case the contract now sought to be relied upon is only to relieve distress warrant pending disposal of the dispute i