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2026 Supreme(Online)(Tel) 9177

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Suddala Chalapathi Rao, J
Dilawar Banu – Appellant
Versus
Hyderabad Metropolitan Water Supply and Sewerage Board – Respondent
WRIT PETITION NO.3402 OF 2014



Advocates:
For the Appellants/Petitioners: Zainab Khan, Mohammed Imran Khan
For the Respondents: A.Veeresh Kumar

Sewerage cess is a charge linked to the utilization of sewerage infrastructure and remains payable by an occupier for services rendered, regardless of the existence of an individual water supply connection, provided the administrative demand is supported by transparent calculation and prior notice.

Headnote:(A) Hyderabad Metropolitan Water Supply and Sewerage Board Act, 1989 - Section 55 - Sewerage Cess - Liability to pay - Even in the absence of an individual water supply connection, an occupier is liable to pay sewerage cess if the premises are connected to the sewerage infrastructure maintained by the Board - Occupiers cannot escape liability merely by citing the lack of individual service connections.

(B) Writ Petition - Calculation of arrears - Due process - Demand notices must be supported by proper calculations and transparency - Respondents are required to issue a show-cause notice and afford a reasonable opportunity for explanation before initiating coercive recovery proceedings for alleged outstanding dues.

Facts of the case:
Petitioner challenged a distraint order for the recovery of water and sewerage charges. The petitioner contended that her water connection was disconnected in 2009 and therefore she was not liable for charges or sewerage cess. The respondent Board maintained that the petitioner availed sewerage disposal services and that arrears were still outstanding.

Findings of Court:
The court held that the challenge to the specific amount demanded in the initial notice was untenable as the petitioner had already paid it. However, the court ruled that the determination of further outstanding dues (approx. Rs. 20 lakhs) was made without sufficient supporting records. The court ordered the authorities to issue a fresh notice and provide the petitioner an opportunity to explain before enforcing further recovery.

Issues: Whether the petitioner is liable to pay sewerage cess in the absence of a live water supply connection and whether the Board followed due process in arriving at the new demand amount.

Ratio Decidendi: Sewerage cess is linked to the use of sewerage infrastructure and not contingent upon a specific individual water supply connection. When premises benefit from municipal sewerage transmission, the owner is liable under the relevant Act. Furthermore, any administrative demand for public dues must be based on verifiable records and preceded by notice to the affected party to satisfy principles of natural justice.

Result: Disposed of with direction to the respondents to issue a fresh notice for the remaining balance.

Table of Content
1. challenge to the validity of recovery proceedings under the revenue recovery act for disputed water and sewerage charges. (Para 1 , 2 , 3 , 4 , 5)
2. respondent's contention regarding the statutory duties of the board and the persistent usage of sewerage facilities by the petitioner. (Para 6 , 7 , 8 , 9 , 10)
3. evaluation of whether water disconnection renders sewerage cess non-applicable under rule 4(2) of the rules, 1990. (Para 11 , 12 , 13 , 14)
4. requirement for transparent calculations and the necessity of due process (notice) before enforcing recovery of alleged outstanding arrears. (Para 15 , 16 , 17 , 18 , 19 , 20)

ORDER:

The present writ petition has been filed, to declare the action of the respondents, more particularly, the respondent Nos.2 and 3 in issuing the final notice dated 06.08.2013 seeking for recovery of sum of ₹ 2,54,556/- along with interest and consequently seeking to enforcement of the same by way of undated distraint order demanding the payment of the said amount by 09.02.2014, as arbitrary, irrational, illegal and voilative of fundamental rights of the petitioner.

2. The brief facts of the case are that, petitioner is the original owner of the entire property bearing Municipal No.1-8-203, known as ‘Dillu Apartment’, situated opposite Hockey Stadium, S.P.Road, Secunderabad, and the same was sold from time to time to prospective purchasers and the petitioner retained two Mulgis bearing No.1-8-303/32/8. It is stated that the said property has been leased out to a franchise of ‘Hyderabad House Private Limited’ and being operated by them, and further as the water supply in the said area was not regular, most of the tenants of the said complex including the tenant of the petitioner were depending only on the groundwater level and by way of water tankers. It is also stated that around 4 or 5 years ago, the water connection has been damaged in the process of road widening, and despite several representations to restore the said connection, the respondent Nos.2 and 3 did not restore the said connection, which forced the tenant of the petitioner to take water supply directly by way of water tankers, and there is no water supply connection to the premises of the petitioner since 2009 over the said premises bearing No.1-8-303/32/8.

3. It is further contended that to the surprise of the petitioner, the respondent Nos.2 and 3 served an undated notice styled as ‘Statutory Notice’ under A.P. Revenue Recovery Act 1864, by issuing distraint order for attachment of movables of the petitioner’s tenant by demanding the payment of the amount by 09.02.2014. Further that upon receipt of the said notice, when the petitioner approached the respondent Nos.2 and 3, stating that there is no water connection since 2009 and no water supplied through water connection, and questioned the authorities the basis for such notice demanding the amount which was raised dated 06.08.2013 for an amount of ₹ 2,54,556/- along with interest. It is stated that though the said final notice was served upon the petitioner, the petitioner was unable to pay the said amount on or before the said date of 09.02.2014, in pursuance of the said distraint order, the movables of the petitioner was sought to be attached.

4. It is further stated that despite there being no water supply connection to the petitioner’s apartment, the said distraint order has been passed by demanding the sewerage cess along with water connection bill. It is contended that the said distraint order is erroneous, contrary to law, and in fact, as there is no water supply connection to the said apartment, the question of raising demand along with sewerage charges as per the final notice vide the distraint order is arbitrary, illegal, and violative of Rule 4(2) of Hyderabad Metropolitan Water Supply Rules and as such, invoking the provisions of the Revenue Recovery Act is bad in law and liable to be set aside.

5. The main grievance of the petitioner is that, though there

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