Chief Justice Anglin.-

The Melbourne and Metropolitan Board of Works (respondents) brought this action in the Melbourne County Court to recover a sum of £65-19s. claimed as a balance due for water supplied by it to the defendants (appellants), who, by their defence, asserted a right to exemption from water rates as a charitable institution" within the meaning of S. 94 of the Melborne and Metropolitan Board of Works Act, 1915. That section reads as follows :

94. In all the pipes to which any fire plug is fixed the Board shall provide and keep constantly laid on for use without charge, unless prevented by unusual drought or other unavoidable accident or during necessary repairs a sufficient supply of water for the following purposes (that is to say) : for cleansing the sewers and drains, for cleansing and watering the streets, and for supplying any public hospital or charitable institutions or any public pumps, baths and wash-houses that may be established for the use of the inhabitants and paid for out of any city town or borough rates ; and such supply shall be provided in such quantities and upon such terms and conditions as may be agreed upon by the council of the city, town or, bo