JUDGMENT

V. N. Khare, J.-Appellant No. 1 is a Municipal Corporation (hereinafter referred to as the Corporation ), established and constituted under the Mumbai Municipal Corporation Act, 1888 (hereinafter referred to as the Act ).

2. There is a large hilly tract of land in the locality of Chembur in the city of Greater Bombay. On the said land, there is a drain, by which rain water and drainage is carried, enamates from the upper region of the hill and ultimately submerges into the sea. It appears that the said land was acquired by the State Government for setting up industries. As a result of acquisition proceeding under Land Acquisition Act, the land, drain and all easementary right to discharge water in the drain came to be vested in the State free from all encumbrances. It further appears that subsequently the State Government leased out certain portion of the acquired land to the respondents in these two appeals for setting up their industries. Consequently, the respondents have set up their industries on the said land and, admittedly, they are discharging their effluents in the aforesaid drain.

3. Under the Act, one of the amongst numerous other functions and duties assigned