Municipal service charges for Union properties settled through agreed rates, mediation, and no coercive recovery proceedings.

The Union of India agreed to pay service charges to municipal corporations for municipal services such as water supply, conservancy, sewerage disposal and other general services, while not paying property tax. The arrangement provided for differentiated service-charge rates according to the extent of services used, periodic revision by mutual consent, separate agreements for individual properties, and reference of disputes to a three-member mediation committee. Coercive recovery and revenue recovery proceedings were excluded for such dues. The appeals were disposed of on the basis of this recorded settlement, without adjudication of the constitutional and statutory issues.

---

---

Issues: Liability of the Union of India and its departments to pay service charges to municipal corporations for municipal services, and the mode of recovery and settlement of such charges.

Analysis: The parties recorded a broad consensus that the Union would pay service charges for services such as water supply, conservancy, sewerage disposal and other general municipal services, while not paying property tax. The arrangement contemplated differentiated service-charge rates based on the extent of services availed, periodic revision by mutual consent, separate agreements for individual properties, and reference of disputes to a three-member mediation committee. Coercive recovery measures and revenue recovery proceedings were not to be adopted for such dues.

Outcome: The appeals were disposed of on the basis of the recorded agreement, without adjudication on the merits of the constitutional and statutory questions.

---