VASANT CHEMICALS LTD. vs HYDERABAD METROPOLITAN WATER SUPPLY AND SEWERAGE BOARD THE MANAGING DIRECTOR

The Supreme Court upheld the High Court's decision that the levy of sewerage cess on M/s Vasant Chemicals Limited by the Hyderabad Metropolitan Water Supply and Sewerage Board is valid under Section 55 of the Hyderabad Metropolitan Water Supply and Sewerage Act, 1989. The Court affirmed that the appellant's agreement with the Board, specifically Clause 16, mandates the payment of sewerage cess, and the appellant's claims regarding the treatment of effluents were insufficient to exempt them from this liability. The judgment reinforces the enforceability of statutory obligations in agreements related to public utilities.