THE MUNICIPAL CORPORATION, versus MODERN SCHOOL, FARIDABAD & ORS.

Citation: [2019] 3 S.C.R. 703 · Decided: 08-02-2019 · Supreme Court of India · Bench: D.Y. CHANDRACHUD · Disposal: Appeal(s) allowed

Judgment (excerpt)

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THE MUNICIPAL CORPORATION, FARIDABAD
v.
MODERN SCHOOL, FARIDABAD & ORS.
(Civil Appeal No. 1555 of  2019)
FEBRUARY 08, 2019
[DR. DHANANJAYA Y. CHANDRACHUD AND
HEMANT GUPTA, JJ.]
Haryana Municipal Corporation Act, 1994:
ss.43, 87, 88, 177, 193, 194, 196 and 205 – Office Order
dated 14.6.1999 issued by Municipal Corporation for regularisation
of tubewells causing unauthorised activities of discharging of waste
water into the main sewer of the Corporation – Corporation claimed
user charges from the schools for discharging the water drawn from
tubewell, into the sewer vested in the Corporation – The schools
challenged the levy of user charges – High Court set aside the
charges on the ground that such fee falls within ambit of s.88 and
hence in absence of prior approval of State Government, such levy
is not sustainable – On appeal, held: The user charges were not a
tax or fee as contemplated u/ss. 87 or 88 – The water extracted by
tubewells were discharged by the schools into the municipal drains
– Therefore, Corporation was justified to levy user charges for the
use of municipal drains for discharge of waste water from the
tubewells.
Allowing the appeals, the Court
HELD: 1. In terms of Section 43 of Haryana Municipal
Corporation Act, 1999, one of the obligatory functions of
Corporation is construction, maintenance and cleaning of drains
and drainage works and also scavenging, removal and disposal
of filth, rubbish and other obnoxious or polluted mattes.  It is in
exercise of such function that the Municipal Corporation has
provided for the disposal of the waste water from residential,
commercial and industrial areas falling within the area of Municipal
Corporation into its sewer drain. [Para 14][711-A-B]
2. The water extracted by tubewells installed by the Schools
is discharged into the Municipal drains, therefore, the
[2019] 3 S.C.R. 703
703
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SUPREME COURT REPORTS
[2019] 3 S.C.R.
Corporation is justified to levy user charges whereby, the waste
water of the Schools is carried by the Municipal drains. Though,
the Schools could not discharge waste water into Municipal drains
without prior permission but instead of stopping the
communication of private drain with the Municipal drain, the
Corporation has demanded user charges which is not a tax or fee
as contemplated under Section 87 or 88 of the Act, but user
charges for using the Municipal services for discharge of waste
water extracted by the Schools from the tubewells installed by
them. [Paras 20 and 21][712-B-C]
3. The fact that the Municipal Corporation has claimed user
charges is made out from the office order dated 14.06.1999.  In
response to notice, the Schools have agreed to regularise the
discharge, but, disputed the levy subsequently on the ground
that such fee cannot be charged being in contravention of Sections
87 and 88 of the Act. The documents on record leave no manner
of doubt that the Corporation has not levied any tax or fee falling
within the scope of Section 87 or 88 of the Act.  The Corporation
has claimed the user charges for permitting the Schools to
discharge waste water into the Municipal drains which are related
to the capacity to extract ground water. Such demand does not
contravene any of the provisions of the Act.  Therefore, the
Corporation was well within its right to claim user charges for
the use of Municipal drains for discharge of waste water from the
tubewells installed by the Schools. [Paras 22, 23 and 24][712-D-G]
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1555
of 2019.
From the Judgment and Order dated 21.12.2015 of the High Court
of  Punjab & Haryana at Chandigarh in LPA No. 1057 of 2015 (O&M).
WITH
Civil Appeal No. 1556 of 2019.
B. K. Satija (for Sanjay Kumar Visen), Adv. for the Appellant.
H. L. Tiku, Sr. Adv., Ms. Yashmeet Kaur, Ashok K. Mahajan,
Mohan Bhadana, Mrs. Priya Puri, Ranjay Dubey, Ms. Vineeta
Meghrajani, Ankush Dewan, Advs. for the Respondents.
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The Judgment of the Court was delivered by
HEMANT GUPTA, J. 1. Leave granted.
2. The present appeals are directed against an order passed by
the Division Bench of High Court of Punjab & Haryana on 21.12.2015
whereby intra-court appeals against common order dated 19.02.2015
passed by the learned Single Judge in the two writ petitions filed by the
respondents were dismissed.
3. The respondents were allotted the land for the purpose of the
School by the Haryana Urban Development Authority, Faridabad on
leasehold basis. Th

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