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1991 Supreme(Raj) 698

RAJASTHAN HIGH COURT AT JAIPUR BENCH
Inder Sen Israni, J.
Dcm Ram Consolidated Ltd. & Ors. - Appellants
Versus
State of Rajasthan & anr. - Respondents
S.B. Civil Writ Petition No. 4790 of 90., 3605 of 90, 3439 of 90, 3453 of 90, 3454 of 90 and 3456 of 1990.
Decided On : 9-05-1991

The main legal point established is that the water rate is governed by the contractual agreement and the provisions of the Rajasthan Irrigation and Drainage Act, 1954 and Rules, 1955.

Headnote:

Water Rate Revision - Contractual Dispute - The court quashed the order revising the water rate from Rs.10/- per 1,000 C.Ft. to Rs.1/- per 1,000 C.Ft. based on the contractual agreement and the provisions of the Rajasthan Irrigation and Drainage Act, 1954 and Rules, 1955.

Fact of the Case:

The petitioner-company entered into an agreement with the respondents for water consumption at the rate of Rs.1/- per 1,000 Cft. However, the respondents sent bills at the rate of Rs.10/- per 1,000 Cft., leading to the dispute.

Finding of the Court:

The court found that the rate of water supply was governed by the contractual agreement and the provisions of the Rajasthan Irrigation and Drainage Act, 1954 and Rules, 1955. It quashed the orders revising the water rate and directed the petitioners to pay at the rate of Rs.1/- per 1,000 Cft. as provided in Schedule-1.

Issues: The main issue was the validity of the revised water rate and the interpretation of the contractual agreement and relevant legal provisions.

Ratio Decidendi: The court relied on the contractual agreement and the provisions of the Rajasthan Irrigation and Drainage Act, 1954 and Rules, 1955 to determine the applicable water rate, quashing the orders revising the rate.

Final Decision: The writ petitions were allowed, and the court directed the petitioners to pay at the rate of Rs.1/- per 1,000 Cft. as provided in Schedule-1, with no order as to costs.

JUDGMENT

1. - In all these writ petitions raise same controversy and are, therefore, decided by one order.In these petitions a challenge has been made to the order/orders, by which, the rate of water is revised from Rs.1/- per 1,000 CFt.to Rs.10/- per 1,000 C.Ft. and a prayer has been made that respondents may be directed to collect the charges for water consumption from the petitioner-companies at the rate of Rs.1/- per 1,000 Cft.

2. For the purposes of facts, the details are given as per writ petition No.4790/90. The petitioner-company vide Anx.1 dated June 26, 62 entered into an agreement with the respondents according to Rs25/- was to be charged for con-sumption of 1,000 Cft. This agreement was last for 20 years and was to expire in June, 1982 Second agreement dated 31.7.1985 (Anx.2) came into effect from 26.6.1982. As per this agreement, the charges were Rs.1/- 1,000 Cft. However, on 6.11.89, 30.3.90 and 5.5..90 (Anx.3) bill for water charges was sent at the rate of Rs.10/- per 1,000 Cft. Reply was sent vide Anx.4 dated 6.7.90 pointing out that as per agreement the charges may be made only at the rate of Rs.1/- per 1,000 Cft. Thereafter, another bill dated 24.7.90 Anx.7 was sent at the rate of Rs.10/- per 1,000 Cft. Hence this petition.

3. It is submitted by Shri M.D. Agrawal, Shri R.M.Lodha, and Shri Manish Bhandari, learned counsel that in some cases, the new agreement had been entered into between the parties and in several matters draft agreement was sent which was corrected by the petitioners and thereafter sent to respondent for their signatures. However, signatures have not been done by the respondents, but they continued to charge the petitioners at the rate of Rs.1/-per 1,000 Cft. It is pointed out that Section 31 of Rajasthan Irrigation and Drainage/Act, 1954 (for brevity 'the Act, 1954') provides that in the absence of a written contract, or so far as any such contract does not extent, every 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 in respect thereof. It is also pointed out that Rule 5 of the Rules, 1955 provides that with the previous permission of "the Divisional Irrigation Officer or Sub Divisional Irrigation Officer, tanks may be filled, or water may be supplied without a special contract, from a canal direct in small quantities for purposes other than irrigation, at the rates, mentioned in Schedule 1."

4. It is evident from the provisions discussed above, Sub-clause (a) of clause 5 of Schedule-1 provides that when water in bulk is supplied for industrial pur,poses, should be Rs.1/- per 1,000 Cft. Sub-clause (c) provides that for water supply in bulk for other purposes the rate will be same as mentioned above. Therefore, it can be said that rate of Rs.1/- per 1,000 is provided in the schedule itself. It is frankly submitted by Shri Saxena, learned Deputy Government Advocate that the Government has taken a decision, as is instructed to him by the Officer-in- charge, that rate of Rs.1/- per 1,000 Cft. will be charged from the petitioners. When an amendment is made in the law/rules the rate may be revised and thereafter in accordance with the amended provisions the rate will be charged from the petitioners.

5. In this view of the matter, the controversy infact does not survive any more. All the letters/orders/bills sent to various petitions regarding payment of charges of water at the rate of Rs.10/- per 1,000 Cft. are quashed the petitioners will be liable to pay at the rate of Rs.1 /- per 1,000 Cft. as provided in Schedule-1. The petitioners infact have been depositing the amount at this rate as per the stay order granted by this Court in each of the petitions. However, if any, arrears are outstanding against petitioners, each of them shall be liable to pay the same within one month from the day, the information regarding amount of arrears is conveyed to each of the petitioners.

6. The



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