Unfairness of demanding arrears based on retrospective reassessment of water charges when a concluded contract and benefit passed on to consumers.

JUDGMENT :

1. The petitioner herein is a Society registered under the Delhi Cooperative Societies Act, 1972. The Petitioner is also deemed to be registered under the Multi – State Cooperative Societies Act, 1984. That one Krishak Bharati Cooperative Ltd. (KRIBHCO) was set up in April 1980 for the manufacture and distribution of chemical fertilizers and allied products and to undertake activities as are incidental and conductive to give fill up to agriculture and rural development. Petitioner has setup the World’s Largest Ammonia – urea complex in the Cooperative sector at Hazira with two Ammonia plants of 1350 MTPD capacity. The Petitioner continues to assist the cooperative movement under the KRIBHCO – NCDC scheme to develop the weaker cooperative societies. The petitioner is providing assistance to each of the 865 societies by way of supplying furniture, fixtures, agriculture implements etc., under this scheme. By way of present petition, the petitioner seeks to challenge the action of the respondent no. 2 whereby, the respondent no. 2 on the basis of reassessment has asked the Petitioner to pay the water charges in respect of water supply for drinking purposes to the tune of Rs.3,01,11,432/-. Being aggrieved by the aforesaid action initiated by the respondent no. 2, the petitioner herein has approached this Court seeking following reliefs:

“[a] this Hon’ble Court be pleased to issue an appropriate writ, order or direction quashing and setting aside the resolution dated 24.09.2002 as also the demand notices dated 21.07.2005 and 15.02.2006 and be further pleased to restrain the respondents from raising bills/revised rate;

[b] this Hon’ble Court be pleased to hold and declare that the respondents have acted wholly without jurisdiction in issuing resolution dated 24.09.2002;

[c] that pending admission, hearing and final disposal of this petition, this Hon’ble Court may be pleased to stay the effect and implementation of the demands made under letters of 21.07.2005 and 15.02.2006 towards arrears for the period 1997-98 onwards; [d] that pending admission, hearing and final disposal of this petition, this Hon’ble Court may be pleased to direct the respondents to raise demand for water charges as per the methodology adopted prior to June, 2005;

[e] Be pleased to pass such other and further orders, as may deem just and proper in the facts and circumstances of the case.”

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

2.1 The petitioner required supply of water from Hazira Branch, and in view thereof, entered into an agreement dated 16.04.1980 with the respondent – State of Gujarat for the period of 25 Years. As per clause 6 of the said agreement, IFFCO (the predecessor of the present petitioner) shall pay the quantity of water drawn and measured as provided under clause 7 of the said Agreement at the rate of Rs. 0.20 paisa per 10000 liters for the first five years from the commencement of drawal of water subject to the payment of interest at the rate of 15% and service charges at 1% on the amounts of the bills remaining outstanding for more than 3 months, provided the monthly minimum water charges shall be calculated at the rate of Rs. 2500 for drawals corresponding to each Million Gallons per day or part thereof during construction period of first three years and thereafter Rs. 62,500/-. These rates shall be liable for upward revision from time to time or whenever the general question arises with respect to the revision of the rates in connection with water used for irrigation or non irrigational purposes is considered by the Government and the rates fixed by the Government does not include cost of pumping, convoying etc. of water from its source.

2.2 The petitioner duly paid the bills raised by the respondent No.2 from time to time. The petitioner herein is governed by the provisions of the Bombay Irrigation Act, 1879 which empowers the respondent No.1 – State to arrive at such contractual requirement for sup