Bombay High Court Allows Water Tanker Operators to Continue Operations Pending License Renewal — Municipal Corporation Cannot Disconnect Water Supply Without Following Natural Justice. The court held that the MCGM's threatened disconnection of water supply without deciding renewal applications and without hearing the licensees was arbitrary and illegal.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The petitioners, Harbour Water Suppliers Company Pvt. Ltd. and OK Marine, are water tanker operators who hold licenses from the Municipal Corporation of Greater Mumbai (MCGM) to draw water from municipal hydrants for supply to residents. Their licenses were due for renewal, and they had applied for renewal well in advance. However, the MCGM, without deciding the renewal applications, issued notices threatening to disconnect water supply on the ground that the licenses had expired. The petitioners approached the Bombay High Court under Article 226 of the Constitution, seeking to restrain the MCGM from disconnecting water supply and to direct the MCGM to consider their renewal applications. The court observed that the MCGM's action was arbitrary and violative of principles of natural justice, as no opportunity of hearing was given before the threatened disconnection. The court held that pending decision on renewal applications, the petitioners are entitled to continue operations subject to payment of fees and compliance with other conditions. The court directed the MCGM to consider the renewal applications within a specified period and not to disconnect water supply without following due process of law. The petitions were disposed of with these directions.

Headnote

A) Administrative Law - Natural Justice - Right to be Heard - Municipal Corporation cannot disconnect water supply without giving notice and opportunity of hearing to the licensee whose renewal application is pending. Held that the action of the Corporation in disconnecting water supply without following principles of natural justice is arbitrary and illegal (Paras 10-15).

B) Municipal Law - Licensing - Renewal of License - Pending Application - Licensee entitled to continue operations until decision on renewal application, subject to compliance with conditions. Held that the Corporation must consider renewal applications expeditiously and not resort to coercive measures (Paras 16-20).

C) Constitutional Law - Article 226 - Writ Jurisdiction - Interim Relief - High Court can grant interim protection to prevent irreparable injury where prima facie case exists. Held that petitioners have made out a prima facie case for continuance of water supply pending disposal of renewal applications (Paras 21-25).

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Issue of Consideration

Whether the Municipal Corporation of Greater Mumbai can disconnect water supply to tanker operators without following principles of natural justice and without considering pending renewal applications.

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Final Decision

The court allowed the petitions and directed MCGM to consider the renewal applications within a specified period and not to disconnect water supply without following due process of law. Pending decision, petitioners were permitted to continue operations subject to payment of fees and compliance with conditions.

Law Points

  • Natural justice
  • right to be heard
  • interim relief
  • license renewal pending
  • water supply regulation
  • municipal corporation powers
  • writ jurisdiction
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Case Details

2020 LawText (BOM) (01) 12

WRIT PETITION (L) NO. 3756 OF 2019 and WRIT PETITION (L) NO. 50 OF 2020

2020-03-16

S.J. Kathawalla, & Not mentioned

Mr. Gauraj Shah a/w. Mr. Meetal Savla for Petitioners in WPL 3756/2019; Mr. D.A. Nalavade a/w. Mr. J.A. Patnigere, Mr. S.B. Deshmukh for Petitioner in WPL 50/2020; Mr. N.R. Bubna a/w. Mr. S.M. Modle, Ms. Sheetal Metkari, Ms. Rupali Adhate, Ms. Yamuna Parekh for Respondent Nos. 1 to 3 in WPL 3756/2019; Mr. Girish Godbole a/w. Mr. S.M. Modle, Ms. Sheetal Metkari, Ms. Rupali Adhate, Ms. Yamuna Parekh for Respondent Nos. 1 to 4 in WPL 50/2020; Mr. Vishal Talsania i/b. Motiwalla and Company for Respondent No. 4 in WPL 3756/2019 and proposed Respondent in WPL 50/2020

Harbour Water Suppliers Company Pvt. Ltd. and Shivram Shirke (in WPL 3756/2019); OK Marine (in WPL 50/2020)

Municipal Corporation of Greater Mumbai and others

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Nature of Litigation

Writ petitions challenging threatened disconnection of water supply by Municipal Corporation without considering renewal of licenses.

Remedy Sought

Petitioners sought to restrain MCGM from disconnecting water supply and to direct MCGM to consider their renewal applications.

Filing Reason

MCGM threatened to disconnect water supply to petitioners' tankers on ground that their licenses had expired, without deciding pending renewal applications.

Issues

Whether MCGM can disconnect water supply without following principles of natural justice? Whether petitioners are entitled to continue operations pending decision on renewal applications?

Submissions/Arguments

Petitioners argued that they had applied for renewal well in advance and MCGM was duty-bound to consider the applications before taking coercive action. Respondents argued that licenses had expired and petitioners had no right to continue operations without valid licenses.

Ratio Decidendi

A municipal corporation cannot disconnect water supply without giving notice and opportunity of hearing to the licensee, especially when renewal application is pending. Principles of natural justice must be followed before taking coercive action.

Judgment Excerpts

The action of the Corporation in disconnecting water supply without following principles of natural justice is arbitrary and illegal. The petitioners are entitled to continue operations until decision on renewal application, subject to compliance with conditions.

Procedural History

Petitioners filed writ petitions under Article 226 before the Bombay High Court challenging the threatened disconnection of water supply. The court heard both petitions together and disposed them with directions.

Acts & Sections

  • Municipal Corporation Act, 1888:
  • Constitution of India: Article 226
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