NIZAM SUGAR FACTORY LIMITED Vs. CITY MUNICIPALITY BODHAN

JUDGEMENT

(1.) The petitioner is Nizam Sugar Factory represented by its General Manager. It has prayed for issue of a writ of certiorari or any other appropriate writ, order or direction quashing the order in Case No. 117/a/7 of 1960 dated 6-2-1961 to the effect that a large specified amount was due from the petitioner as water tax. The two respondents are the City Municipality. Bodhan, represented by its Executive Officer and the City Municipal Committee, Bodhan represented by its President.

(2.) The relevant facts are as follows : In 1492, the City Municipality of Bodhan came into existence. Its jurisdiction included a large block of buildings belonging to the petitioner-factory which had been existing from a long time back along with a complete water supply system serving those blocks of buildings. In 1946-47, the Municipal Committee, Bodhan started its water works and began supplying a limited area within the Municipality. It has not extended its water supply to block of buildings belonging to the petitioner. The nearest public water tap which has been erected by the Municipality is far away from the blocks of buildings belonging to the petitioner . (2a) The contention of the petitioner is that the levy made by the Municipality is a fee and not a tax and is, therefore, illegal as there is no service rendered to the petitioner which would justify any such levy. (2b) On behalf of the respondents, a counter-affidavit was filed contending that the levy was not a fee but was a property tax under Section 97 of the Hyderabad District Municipalities Act and was perfectly legal and that it was a general tax and not a fee for actual quantity of water supplied or consumed coming under Chapter XIII of that Act.

(3.) This petition came up before this Bench on an order of reference by our learned brother, Basi Reddy J., as follows : "In view of the stakes involved, I direct this writ petition to be posted before a Bench after the vacation."