- (1.) The petitioners in this WP under art.226 dated December 14, 2011 are questioning a notice dated May 26, 2011 ( at p.26) issued by Damodar Valley Corporation (in short DVC) "under Clause-14 of the bi-lateral agreement and u/s 22 of DVC Act for Industrial and/Domestic Water Supply."
(2.) DVC entered into an agreement dated May 19, 1989 (at p.22) with one M/s. Damodar Cement and Slag Ltd. Under the agreement DVC permitted M/s. Damodar Cement and Slag to draw six million gallons of water per month from the river Damodar with effect from July 1, 1986 for a period of forty years. It was provided that six million gallons of water per month would be available for M/s.Damodar Cement and Slag. Clause 14 of the agreement provided that M/s. Damodar Cement and Slag would conform to and abide by all rules and regulations made by DVC consistent with the agreement relating to the extraction of water from DVC's sources. Clause 15 of the Agreement provided that in the event of any dispute or difference arising at any time between DVC and M/s. Damodar Cement and Slag in regard to any matter arising out of or in connection with the agreement such dispute or difference would be referred to the arbitration of two arbitrators.
(3.) In the notice DVC stated that though M/s. Damodar Cement and Slag was allocated 0.2 MGD water, it was actually consuming (based on peak utilization for last four years) only 0.093 MGD. Recording this fact DVC gave notice that in public interest it was necessary to terminate the agreement. Saying so it gave notice notifying that upon expiration of six months the agreement would stand terminated, and giving M/s. Damodar Cement and Slag liberty to enter into a fresh agreement for 0.093 MGD raw water.;