In Brief
The Mumbai Municipal Corporation appealed against a High Court judgment that had quashed water-related bills issued to the respondent-tenant on the ground that his water supply had been disconnected. The Supreme Court held that the Corporation's demand notices were for property tax in the form of water benefit tax (Sections 139-141 of the MMC Act), not water charges (Section 169). Property tax is a compulsory imposition payable regardless of water disconnection, while water charges can be levied only on water actually supplied. The Court allowed the appeal, directing the respondents to pay outstanding amounts with prescribed interest within three months.
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