Bombay High Court Dismisses Petition Challenging Water Charges for Industry in Non-Conforming Zone. Water Charges at Higher Rate of Rs.44 per 1000 litres Upheld as Per Water Charges Rules (Revised) w.e.f. 1-4-1996.

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

The petitioners, Dhunjibhoy Ice Factory Pvt. Ltd. and its Managing Director, filed a writ petition under Article 226 of the Constitution of India challenging a letter dated 9-2-2000 issued by the Assistant Engineer, Water Works, Municipal Corporation of Greater Mumbai. The letter informed the petitioners that their ice factory at Mazgaon was located in a non-conforming zone as per the Water Charges Rules (Revised) w.e.f. 1-4-1996, and therefore they were liable to pay water charges at Rs.44 per 1000 litres. The petitioners sought a direction to the respondents not to recover water tax and water benefit tax on the basis of the said letter and to cancel the letter. The petitioners' factory was situated in a residential/commercial zone in the Development Plan of Greater Mumbai, but the industrial use was non-conforming. The petitioners had been paying property tax under Section 140 of the Mumbai Municipal Corporation Act, 1888, which included water tax and water benefit tax. After the letter, bills were issued for January, February, and March 2000, charging Rs.22 per 1000 litres for one meter and Rs.15 per 1000 litres for other meters. The petitioners objected to the bills, but the Corporation maintained the higher rate for non-conforming zones. The court considered the issue of whether the Corporation could levy higher water charges for industries in non-conforming zones. The court held that the Corporation was entitled to do so under the Water Charges Rules (Revised) w.e.f. 1-4-1996. The petition was dismissed, and the rule was discharged. No order as to costs.

Headnote

A) Municipal Law - Water Charges - Non-Conforming Zone - Section 140 of Mumbai Municipal Corporation Act, 1888 - Water Charges Rules (Revised) w.e.f. 1-4-1996 - The petitioner's ice factory was located in a residential/commercial zone but was a non-conforming industrial use. The Corporation issued a letter dated 9-2-2000 demanding water charges at Rs.44 per 1000 litres for non-conforming zones. The court held that the Corporation was entitled to levy higher water charges for industries in non-conforming zones as per the revised rules, and the petition was dismissed. (Paras 1-3)

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Issue of Consideration

Whether the Municipal Corporation can levy water charges at a higher rate for an industry located in a non-conforming zone under the Water Charges Rules (Revised) w.e.f. 1-4-1996.

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Final Decision

The petition is dismissed. Rule is discharged. No order as to costs.

Law Points

  • Water charges for non-conforming industrial zones
  • Mumbai Municipal Corporation Act 1888 Section 140
  • Water Charges Rules (Revised) 1996
  • Article 226 of Constitution of India
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Case Details

2011 LawText (BOM) (10) 34

Writ Petition No.2076 of 2000

2011-10-04

P.B. Majmudar, R.M. Savant

E.P. Bharucha Senior Advocate i/b Ms Preeti Shah for Petitioners, Ms P.A. Purandare for Respondent Nos.1 to 3, Mr. A.B. Ketkar AGP for Respondent No.4

Dhunjibhoy Ice Factory Pvt. Ltd. and Fardun N. Mulla

Municipal Corporation of Greater Mumbai, Assistant Engineer Water Works, Assessor & Collector of Municipal Taxes, State of Maharashtra

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging a letter demanding higher water charges for an industry in a non-conforming zone.

Remedy Sought

Petitioners sought direction to respondents not to recover water tax and water benefit tax based on the letter dated 9-2-2000 and to cancel the said letter.

Filing Reason

The petitioners' ice factory was located in a non-conforming zone, and the Corporation demanded water charges at Rs.44 per 1000 litres as per revised rules.

Issues

Whether the Municipal Corporation can levy water charges at a higher rate for an industry located in a non-conforming zone under the Water Charges Rules (Revised) w.e.f. 1-4-1996.

Submissions/Arguments

Petitioners argued that the water charges should not be based on the non-conforming zone classification. Respondents contended that the higher rate was applicable as per the Water Charges Rules (Revised) w.e.f. 1-4-1996.

Ratio Decidendi

The Municipal Corporation is entitled to levy higher water charges for industries located in non-conforming zones as per the Water Charges Rules (Revised) w.e.f. 1-4-1996.

Judgment Excerpts

The Respondent No.2 vide letter dated 9-2-2000 informed the Petitioner No.1 that its industry was located in non conforming zone as per Water Charges Rule (Revised) w.e.f. 1-4-1996 and the Petitioners was therefore, liable to pay water charges at Rs.44 per 1000 litres.

Procedural History

The petition was filed in 2000. After correspondence and issuance of bills, the matter was heard and decided on 4th October 2011.

Acts & Sections

  • Mumbai Municipal Corporation Act, 1888: Section 140
  • Constitution of India: Article 226
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