In Brief
Tata Iron and Steel Company (TISCO) challenged a demand by the State of Bihar for payment of water charges for water drawn from the Subarnarekha River. The Supreme Court held that any compulsory exaction—whether termed a tax, fee, duty, or cess—requires legislative authority under Article 265 of the Constitution. The Court clarified that "fee" falls within the scope of Article 265. The Court also declined to examine for the first time whether specific irrigation statutes authorized the demand, and held that claims to riparian or prescriptive rights must be decided in a proper civil suit, not writ proceedings. The judgment was set aside and the matter remitted to the High Court for proper examination, with the demand remaining stayed pending further proceedings."
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