The main legal point established in the judgment is the unfairness of demanding arrears of water charges based on a resolution not acted upon, considering the executed contract and concluded transaction.

JUDGMENT :

1. The petitioner herein is a registered company incorporated under the Companies Act, 1956 and is involved in the mining, exploration and processing of oil and natural gas. The petitioner company has been functioning in the Hazira Industrial Belt, Surat since the year 1984. By way of present petition, the petitioner seeks to challenge the action of the respondent authority whereby, the respondent authority has ordered to charge and collect water tax to the tune of Rs.24,64,784/-. Being aggrieved by the aforesaid action initiated by the respondent authority, the petitioner herein has approached this Court seeking following reliefs:

“(a) The Hon’ble Court be pleased to issue appropriate writ, order or directions in the nature of mandamus quashing and setting aside the order communicated vide letter dated 21st July, 2005 as well as the ensuing bills and further to restrain the respondent’s in future from raising bills at revised rates after 21st July 2005 for drinking water.

(b) Declare that the basis on which the respondent is seeking to revise the water charges payable by the petitioner are totally illegal and untenable;

(c) Direct the respondent to refund the drinking water charges wrongly levied for the period 1997-98 to 2002;

(d) Pending hearing and final disposal of this petition, the Hon’ble Court be pleased to stay the recovery pursuant to letter dated 21st July, 2005 as well as the ensuing bills, subject however, to the petitioner continuing to pay on the same basis as it had been paying till June, 2005.

(d) Be pleased to pass such other order or orders as this Hon’ble Court may deem fit and proper in the facts and circumstances of the case as well as in the interest of justice.”

2. The brief facts leading to the filing of the present petition reads thus:

2.1 The petitioner required water supply for various purposes and in view thereof, entered into an agreement for a period of 20 years with the respondent – State Government on 19.04.2001. The said agreement is duly produced at Annexure– A. As per clause 3 of the said agreement, the petitioner herein was liable to pay fixed water charges of Rs.1,36,89,148=00 (Rupees One Crore Thirty Six Lac Eighty Nine Thousand One Hundred Forty Eight only) annually for the quantity of water got reserved at the rate of Rs.0.75 per 1000 litre or as may be fixed by Government from time to time. The above referred amounts were payable respectively as fixed water charges (booking charged). The actual usage charges were also payable by the petitioner to the respondent at the rate of 30 paise per 1000 ltrs. for domestic use and at the rate of Rs.2.50 per 1000 ltrs. for industrial use. The aforesaid charges were levied on the basis of the Government Resolutions/circular dated 30.01.2001 and 24.09.2002 are annexed at Annexure - D, and E respectively, in which the rates mentioned as per the Government Resolution/Circular dated 30.01.2001 shall be made applicable retrospectively from 01.04.1997.

2.2 It is the case of the petitioner that the petitioner received a letter dated 21.07.2005 along with a statement showing alleged reassessment of the water charges used for drinking purposes towards fixed charges and normal water charges for the period from 2002-03 to 2005-06. Upon reassessment, it has been claimed that the petitioner Corporation owes the respondent an amount of Rs.24,64,784/-. A copy thereof is produced at Annexure – F.

2.3 Being aggrieved by the issuance of the aforesaid communication dated 21.07.2005, the petitioner herein as approached this Court seeking the reliefs, as referred above.

3. Heard Mr. Ajay R. Mehta, learned advocate with Mr. Anmol Mehta, learned advocate appearing for the petitioner corporation and Mr. Ayaan Patel, learned AGP appearing for the respondent authority.

4. Mr. Ajay Mehta, learned advocate appearing for the petitioner submitted that the water being supplied for domestic purpose has also been charged in the bill at industrial consumption rate. The aforesaid r