The principle of estoppel is not available against the Legislature.

SRINIVASAN, J.

I. HISTORY.

1. The Parambikulam Aliyar Project was conceived in 1959 for the purpose of exploiting the rivers in the Western Ghats in Anamalai Region to the fullest extent possible and giving irrigation facilities to as much area as possible in the rain shadow lands which are always drought-stricken for nearly two centuries. The Project depended on the combined effort and co-operation of two neighboring States-Tamil Nadu and Kerala-for harnessing the rivers flowing in both the States. It contemplated integration of eight rivers, six on Anamalai Hills viz., Anamalayar, Nirar, Sholayar, Parambikulam, Thunakadavu and Peruvaripallam and two on the plains viz., Aliyar and Palar, by constructing reservoirs across them and inter-connecting them by tunnels, the tunnels were to help diversion of the waters impounded in the reservoirs to the plains of the then Coimbatore district in Tamil Nadu and Chithur district in Kerala State. As the rivers were in various elevations ranging between 3800 feet and 1050 feet, it was incidentally possible to utilise the drops between the rivers for the development of hydro-power. The project envisaged construction of dams and power houses. The Taluks of Palladam, Udamalpet, Pollachi and Dharapuram in the then coimbatore District formed a very dry region chronically famine-stricken with poor rain fall and no natural water resources. During the last century and the first half of this century, the Government had to spend large sums of money to afford relief to the famine stricken people in the area besides large remissions given to them.

Dharapuram Taluk became part of Periyar District after the bifurcation of Coimbatore District. With a view to develop the entire area and raise the general standard of living, the project mentioned above was undertaken. Canals had to be constructed in such a manner as to make use of each and every drop of water to the fullest extent possible and without wasting any part of it. It was initially estimated that 30.5 TMC feet of water could be realised and utilised for irrigation, out of which 2.5 TMC feet in the Anamalayar Project would be available for Tamil Nadu only after the State of Kerala completes the Edamalayar Scheme.

2. The project is divided into two basins viz., Aliyar Basin and Plar Basin. It should be mentioned that an area of about 40.000 acres was expected to be irrigated by Aliyar basin every year and since 1973-1974 that region has been getting water once in two years.

3. With reference to Palar basin, it was originally estimated that an extent of 2.03 lakhs acres of land could be irrigated. The work on the project commenced in 1960. It was decided that even before the completion of the entire project, the available water could be released for the purpose of irrigation of such extent as may be possible. Government framed rules known as Parambikulam Aliyar Project Water Cess Rules, 1965 in G.O.Ms. No. 1956, Public Works, dated 26-6-1965, in exercise of the powers conferred by S. 1 of the Madras Irrigation Cess Act, 1865 for the levy of water cess for the irrigation of the lands under the project. Rule 3 provides for issue of permits for all the lands irrigation of which is allowed from the project by or under the orders of the State Government. A form of permit is also prescribed, which contains the conditions under which the same is issued. A fee is charged for the issue of permit. Rule 5 enables the District Collector or the Executive Engineer concerned to cancel or modify any permit at any time after giving an opportunity to the permit-holder to put forward his objection. The rates of water cess are fixed by the Rules. Conditions 5 to 10 of the Conditions set out in the prescribed form read as follows.

“5) The permit holder shall not take water contrary to any turn system that may be introduced by the authorities.

6) Irrigation of the land at any time, other than the period mentioned in column (9) or through any source other than that