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High Court Of Rajasthan
Judgename : J.C.VERMA
D.C.M.SHRIRAM IND.LIMITED - Appellant
Versus
STATE OF RAJASTHAN - Respondent
CIV. WRIT PETITION 1651 Of 1996
Decided On : 10/06/1999
WATER SUPPLY - RAJASTHAN IRRIGATION AND DRAINAGE ACT, 1954 - SECTIONS 31, 60 - RAJASTHAN IRRIGATION AND DRAINAGE RULES, 1955 - RULES 14, 15 - FIXATION OF WATER CHARGES FOR INDUSTRIAL PURPOSES - EXPERT COMMITTEE RECOMMENDATIONS - JUDICIAL REVIEW.
Fact of the Case:
The petitioners, industrial establishments in Rajasthan, challenged the notification issued by the State Government increasing the price of water supply in bulk for industrial purposes from Rs. 10/- to Rs. 20/- per 1000 CFT. They contended that the price hike was arbitrary and unreasonable and violated the principle of legitimate expectation.
Finding of the Court:
The court held that the fixation of water charges was a matter of policy for the State Government and that the doctrine of legitimate expectation could not be invoked in this case. It also noted that the State Government had constituted an expert committee to examine the matter and that the committee had recommended a higher rate than the one fixed by the Government.
Issues: 1. Whether the increase in water charges for industrial purposes was arbitrary and unreasonable? 2. Whether the principle of legitimate expectation was applicable in this case? 3. Whether the State Government was bound by the recommendations of the expert committee?
Ratio Decidendi: 1. The court held that the fixation of water charges was a matter of policy for the State Government and that the courts could not interfere unless it was shown that the authorities had acted arbitrarily or unreasonably. 2. The court held that the doctrine of legitimate expectation could not be invoked in this case as the petitioners had not shown that the authorities had acted arbitrarily or unreasonably in fixing the water charges. 3. The court held that the State Government was not bound by the recommendations of the expert committee but that it had considered the recommendations and had fixed a lower rate than the one recommended by the committee.
Final Decision: The court dismissed the petitions, holding that the increase in water charges was not arbitrary or unreasonable and that the principle of legitimate expectation was not applicable in this case.
J. C. VERMA, J.
( 1 ) ALL the writ petitioners are aggrieved by the same impugned notification dated 17-5-1995 passed by the State of Rajasthan by which notification the price/charges for water supply in bulk for industrial purposes has been raised from Rupees 10/- per 1000 CFT to Rs. 20/- per 1000 CFT.
( 2 ) ON the basis of the said notification, the petitioners were given the bill of water charges vide Annexures 17 and 18 and prayer has been made to quash the submission of bill. Copy of the impugned notification is attached as Annexure-19.
( 3 ) ALL the petitioners are the registered companies engaged in the manufacture of certain products in the State of Rajasthan. The facts and law of challenge involved are similar and identical. For reference the facts are being taken from S. B. Civil Writ Petition No. 81/96 J. K. Synthetics v. State of Rajasthan.
( 4 ) THE factories of the petitioners require raw water for industrial purposes. For regulating the irrigation and drainage in the State of Rajasthan, the Government had enacted the Rajasthan (Irrigation and Drainage (Act, 1954) hereinafter referred to as the Act ). Under S. 31 of the Act, the supply of water from an irrigation work shall be deemed to be given at the rates and subject to the conditions prescribed by the Rules to be made by the State Government. S. 60 empowers the Government to make rules for regulating the matters enumerated in clauses (a) to (e) and sub-s. (2) of S. 60. State had also framed the Rules called the Rajasthan Irrigation and Drainage Rules, 1955 (hereinafter called as the rules ). Rule 14 and 15 of the rules read as under:-"rule 14 :- Contracts for water for other than irrigation purposes : The Divisional Irrigation Officer may make contracts for the supply of Canal water for purposes other than irrigation for any terms not exceeding one year. For terms exceeding one year the previous sanction of the State Government shall be necessary. RULE 15 :charges for water for other than irrigation purposes in the absence of a special contract : With the previous permission of the Divisional or Sub- Divisional Irrigation Officer, Tank may be filled or water may be supplied without a special contract, from a canal direct in small quantities for the purposes other than irrigation at the rates mentioned in Schedule-1".
( 5 ) INITIALLY, the water was being supplied to the industrial establishments as per agreement which was for a period of 20 years, the rate was mentioned in the agreement itself.
( 6 ) THE schedule to the drainage rules provide rates for supply for various purposes and so far as the industrial purposes is concerned, the previous rates prescribed for supply of bulk water was enhanced to Rs. 1/- per 1000 CFT, during the period when the agreement was in force or even after agreement from 20-6-1982 and bills were accordingly raised on the industrial establishments. Vide notification dated 28-11-1991 as published in the Rajasthan Gazette on January 2,1992. Schedule Item 5 (a) of Schedule I to the rules were amended. The rate of bulk supply of raw water was increased to Rupees 20/ -. The amendment of 1991 reads as under :irrigation DEPARTMENT notification jaipur, November 28, 1991. S. O. 138-In exercise of the powers conferred under sub- S. (1) of S. 60 read with S. 31 of the Rajasthan Irrigation and Drainage Act, 1954 (Act XXI of 1954) the State Government hereby makes the following amendment in Item No. 5 (a) of Schedule-I of the Rajasthan Irrigation and Drainage Rules. 1955, the other items and their rates shall remain same :- @@117. htm@@
( 7 ) BILLS were raised accordingly on the factories concerned as per Rs. 20/- per 1000 CFT. Number of industrial houses including the writ petitioners filed the writ petitions in the High Court which were decided by one common order on 2-4-1993 being D. C. M. Shri Ram Consolidated Ltd. v. State of Rajasthan and Others D. B. Civil Writ Petition No. 2282 /92. The Division Bench of this Court had gone
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