Judgment

Rajendra Babu, J.-The appellant before us is the owner of two facto­ries, one situate at Brajarajnagar in the State of Orissa and the other at Amlai in the State of Madhya Pradesh. The mill at Brajarajna­gar was installed by the appellant which is engaged in the manufacture of paper and board since 1939. A compact block of land measuring 889 acres is in the possession of the appellant and abutting the bank of river Ib. East to West. The lands on which the said Mill is situated was used for the purpose of cultivation earlier and is situated about 400 yards away from the river bank. Water is required for the purpose of manufacture of paper and board and for domestic purposes for the use of the workers and staff residing in the colonies attached to the Mill. The appellant has been drawing water from the year 1939 from the flowing stream of said river Ib. Water so drawn from the said river is purified before use for manufacturing paper and for supply for domestic purposes. The water after it is used is discharged into the river after purification in the filter and water recovery plant and sedimentation lagoons. During the lean period which is about four months in a year from Ja