Thirunagar Panchayat vs Thirunagar Cooperative House Constructions Society Limited, Madurai

A. Ramamurthi, J.—The defendant in the suit is the appellant.

The case in brief is as follows:- The plaintiff Thirunagar Cooperative House Constructions Society Limited filed a suit against the defendant

Thirunagar Town Panchayat for permanent injunction restraining the Panchayat and its officers and their men from in any way interfering with the

plaintiff''s possession and enjoyment of the water works in Thirunagar Colony. Thirunagar Colony has been formed by the Society and there are

about 800 houses belonging to the members of the society. The society has constructed overhead water tank, dug wells for the supply of drinking

water to the members of the society and water is supplied through pipeline to the houses in Thirunagar colony. The water supply is given only to its

members who have constructed houses in the Thirunagar Colony. The general public or outsiders are not entitled to water supply. The plaintiff has

been maintaining the same all these years without any sort of complaint. The water works do not belong to the defendant panchayat or to the

Government. It is the privilege of the members of the society to the exclusive user of the water supplied by the Society through pipeline. The water

will be sufficient for the members only. The defendant panchayat cannot also maintain the water works in the manner in which it is being maintained

by the society. If the panchayat is likely to take the water works, then the members of the society will be seriously jeopardised. The panchayat has

no right to take over the same and they do not vest in the panchayat also. Without notice to the plaintiff, the panchayat has created records as if the

water works vest with them and they are trying to take over possession of the same. Natural justice and equity require that when the property is

sought to be taken over from the owners, proper notice should be given to them and compensation also has to be paid. The defendant panchayat

is hurriedly attempting to take forcible possession of the water works from the plaintiff society and hence the suit.

The water works in Thirunagar Panchayat is at present maintained by the House Construction Society. Although the overhead tank and the wells

are situated in the property belonging to the society, the pipelines through which the water is supplied go through the public streets vested in the

Town Panchayat. The Society is maintaining 9 wells and the water to the society members is supplied through these wells. The panchayat is also

maintaining one well and the water is taken from this well through the pipeline laid in the public streets but the water charges are collected by the

plaintiff society. The plaintiff cannot claim any special privilege and exclusive service of supply of water to the members of the society. During

summer season, the defendant panchayat alone is supplying water through cart, lorry and tractor for all the houses situated in Thirunagar. For the

supply of water to all the houses including to the society houses, the defendant is spending about Rs.50000/= to Rs.60000/= per year. The

panchayat requested the society to hand over the water works to then panchayats. The society also agreed to hand over the water works by a

resolution dated 20.07.1983. The Thirunagar panchayat was upgraded to Town Panchayat on 27.07.1984 and the Executive authority assumed

charge on 13.08.1984. They proposed to take the water works maintained by the society and the Executive Officer also issued notice, but there

was no reply from the society. The proposal to take over the water works was published in the District Gazette dated 12.11.1985 and objections

were called for, but none raised objection. There is statutory vesting of water works in the panchayat and the panchayat is empowered to take

over the water works from the society. The suit is liable to be dismissed.

The trial court framed 6 issues and on behalf of the plaintiff society P.W.1 was examined and Exs.A-1 to A-5 were marked. On the side of the

defendant panchayat, Exs.B-1 to B-5 were marked. The trial court dismissed the suit and aggrieved against this, the plaintiff preferred A.S.No.199

of 1988 on the file of Principal District Court, Madurai and the learned Judge after hearing the parties, allowed the appeal, set aside the judgment

and decree of the trial court and decreed the suit. Aggrieved against this, the defendant has come forward with the present second appeal.

At the time of admission, the only substantial question of law as framed by this Court is Whether the lower appellate court is correct in coming

to the conclusion that section 84 of the Tamil Nadu Panchayat Act would not be applicable to take over water works i.e. Suit overhead tank, wells

and the plaintiff''s society water pipelines which go through the streets roads vested in the appellant panchayat?

Heard the learned counsel for the parties.

It is not in dispute that the plaintiff society has built houses to the members. The Society had also constructed overhead tank and dug wells for

the supply of drinking water to the members through the pipeline laid underneath the streets said to have been vested with the Panchayat.

Admittedly, the overhead tank and wells are situated in the lands belonging to the society. Now, the defendant panchayat wants to take the

overhead water tank and wells and entire system regarding the water works relying upon section 84 of the Tamil Nadu Panchayat Act. The

learned counsel for the appellant / defendant contended that by virtue of section 84 of the said Act, all public water courses, reservoirs, tanks,

cisterns, fountain, wells, stand pipes and other water works (including those used by the public to such an extent as to give a prescriptive right to

their use) shall vest in the panchayat and be subject to its control. Only if the appellant is able to establish that there was statutory vesting of the

water force, then only they can succeed.

Learned counsel for the respondent contended that section 84 of the Act has no application to the case on hand. It is not a public water course,

but it is only a private water supply intended to benefit the members of the plaintiff society. Simply because the pipelines are laid underneath the

streets said to be vesting with the panchayat, it cannot be said that the water works also shall vest with the panchayat. No doubt, during summer

season the defendant panchayat supplied water to the members of the society also. If the panchayat has not collected any amount, it is always

open to the panchayat to collect the amount from the society for the water supplied to the members. There are number of wells dug up by the

plaintiff society in their own place and they have also put up overhead tank and they are maintained by them. The word ''public'' used in section 84

cannot be made use of to take the wells dug up and the overhead tank put up by the society exclusively for their members. The entire section has

to be read together so as to arrive at the intention of the framers of the Legislation.

Learned counsel for the appellant / defendant contended that the lower appellate court failed to note that all the public roads vested with the

panchayat. In fact, the Society already passed a resolution to hand over the overhead tank by the resolution No.4 dated 20.01.1983. Even if the

water distribution is taken over by the panchayat, it would benefit to all the citizens of the Thirunagar Panchayat and they will get the protected

water supply. As per section 63(g) of the Tamil Nadu Panchayat Act, it shall be the duty of the Panchayat to give protected water for drinking

purpose and also to maintain the same. The water distribution system was taken over only after duly publishing the notifications in the District

Gazette dated 12.11.1985. Moreover, the panchayat had already supplied the drinking water to all the members of the society at the time of acute

water scarcity and for which, the defendant panchayat had spent Rs.75,000/= and admittedly the panchayat had not collected any tax from the

members of the society.

As adverted to, only if the appellant panchayat is able to establish that there was statutory vesting of the overhead tanks, they can succeed in the

appeal. At one point of time, it appears that the society could have passed a resolution for entrusting the maintenance of the overhead tanks,

wells,etc., to the panchayat, but apart from that, there is nothing to show that there was actually any handing over of possession. The panchayat

has not even made any offer for payment of compensation to the plaintiff society for taking over the overhead tanks and other connected materials.

When admittedly the water works belongs only to the society, the panchayat cannot appropriate it even without any compensation. There was

already a litigation between the plaintiff and the defendant with regard to the earlier attempt by the panchayat to take over the amenities provided

by the plaintiff and the matter went up to the Apex Court in C.A.No.374 of 1965. The Society was granted permanent injunction with regard to

the amenities provided by the society and only the streets can be taken over. It was held that the scope of section 58 of the Panchayat Act cannot

be extended to include parks, playgrounds, schools, libraries and other public places which were provided by the society for the benefit of the

Thirunagar colony. It is only under such circumstance, the lower appellate court rightly came to the conclusion that there was no statutory vesting of

overhead tanks and wells belong to the plaintiff society. If water is required for the public, it is always open to the panchayat to request the plaintiff

society to supply the same at nominal cost. Similarly, if the panchayat supplies water to the members of the society, the panchayat also can collect

the necessary tax from the members. Simply because the road formed by the society is vested with the panchayat, for the purpose of maintenance,

it cannot be stretched to include that the pipeline running underneath the street also will vest with the panchayat and ultimately the overhead tank

and the wells from where the water is supplied will also vest with the panchayat. I am of the view that the imagination of the panchayat is farfetched

and the reasoning given by the lower appellate court for decreeing the suit is proper and correct and no interference is called for.

For the reasons stated above, the second appeal fails and is dismissed. No costs.