Licensees are bound to pay charges for the sanctioned quantity of water by the Government, irrespective of the actual drawal.

Since the issue raised in all these writ petitions is one and the same, they are being disposed of by the following common order. Aggrieved by the Government instructions communicated in letter No. CP/7083/88/A1 dated 28-7-88 of the Executive Engineer, P.W.D., R.C Division, Trichy-1 regarding levy of Royalty on water drawn for their factory, Nava Bharat Ferro Alloys Limited, Sugar Division, Deccan Sugars has filed W.P.No. 15720 of 1989 to quash the said communication and direct the respondents to levy and collect royalty from the petitioner according to the instructions contained in Board Standing Order No.11-A and at the concessional rate regardless of the erstwhile limit of 1.5 million Cubic Yards.

2. Questioning the very same communication of the Executive Engineer, R.C.Division, Trichy-1, Cauvery Sugars and Chemicals Limited, Madras-28 has filed W.P.No. 15794 of 89.

3. Questioning the same communication of the Executive Engineer, R.C.Division, Trichy-1, A. Krishnan, Equity Shareholder and wholetime Director of M/s Cauvery Sugars and Chemicals Limited has filed W.P.No. 15834 of 1989.

4. Questioning the same communication of the Executive Engineer, Public Works Department, Mettur Division, Mettur Dam, South India Textile Processors Association by its Chairman, S.S.M. Processing Mills by its partner, J.K.K. Textile Processing Mills Private Limited by its Managing Director and Rajalakshmi Textiles Processors Limited, by its General Manager, Ramanathapuram Pudur P.O. Erode have filed W.P.No. 14189 of 93.

5. E.I.D. Parry India Limited, Madras-1 has filed W.P.No. 18540 of 94 seeking to issue a Writ of Mandamus calling upon the respondents to consider their application dated 11-6-93 and grant licence for drawal of water from Pugalur channel without reference to the alleged arrears from M/s Nava Bharat Ferro Alloys Limited and the alleged dues subject matter of W.P.No. 15720/89.

6. As stated earlier, since the grievance of all the petitioners is similar and identical, for convenience I shall refer the case of the petitioner in W.P.No. 15720 of 89. The petitioner company, formerly known as the Deccan Sugar and Abkahri Company Limited is registered under the Companies Act. It is engaged in the manufacture of Sugar at its factory situate at Pugalur, Trichy District in Tamil Nadu on the bank of Pugalur channel. Eversince the factory was commissioned in 1944, it has been drawing its requirements of water for cooling purposes from the Pugalur channel which belongs to the State Government, in conformity with the instructions contained in Board Standing Order No.11A and the agreements entered into thereunder. The exact quantities of water drawn and the quantities returned to the channel are measured by Water Meters installed and duly recorded in the registers maintained under P.W.D. supervision. Board Standing Order (hereinafter referred to as "B.S.O") No. 11A contains instructions relating to the issue of licence for the diversion or use of water from Government sources for non-irrigation purposes including industrial purposes. An industrial concern requiring a licence for drawing water has to enter into an Agreement with the Superintending Engineer concerned, in Form No.4 Appendix I (1), the Agreement being subject to renewal at the end of every 10 years. Para 5 of the B.S.O. specifies the rates chargeable as Royalty for the licence to draw water. Two different rates are prescribed, namely, the Normal Rate applicable to water taken and consumed, and a Concessional Rate for water taken and returned un-diminished and un-polluted to the Government source. Royalty is charged on the basis of the quantity of water actually drawn by the licensee and not on any notional or other basis. The licensee is entitled to take such quantity of water as the licensee shall require (and shall be available) for the purpose of the factory and shall have paid for in advance not exceeding the maximum quantity. When the factory was commissioned in 1944 w