In Brief
Tata Iron & Steel Co. (TISCO) challenged a demand notice for water charges levied by the State of Bihar for water drawn from the Subarnrekha River. TISCO claimed riparian and prescriptive rights to free water use without payment, arguing the demand violated Article 265 of the Constitution as it lacked legislative authority. The Supreme Court held that all compulsory exactions—whether termed taxes, fees, or duties—require legislative sanction under Article 265. It confirmed that 'fees' fall within Article 265's scope, following the Jindal Stainless precedent. Riparian rights require adjudication in civil suits, not writ proceedings. The Court set aside the High Court's judgment and remitted the matter for proper examination of whether the Bengal Irrigation Act or Bihar Public Irrigation Acts authorized the demand, pending which the demand remained stayed.
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