(1) A municipal council may, instead of imposing a water-rate or where a water-rate has been imposed, in individual cases, instead of levying a rate imposed in respect of the supply of water belonging to the municipal council to or for use in connection with, any private lands or buildings, --

(a) fix at rates not exceeding such as shall be specified in the rules in force under section 323, charges for such supply according to the quantity used, as ascertained by measurement; or

(b) arrange with any person on his application to supply on payment, periodically or otherwise, water belonging to the municipal council in such quantities, or for such purposes (whether domestic, ornamental, or irrigational or for trade, manufacture or any other purpose), on such terms and subject to such conditions as it shall fix by agreement with such person:

Provided that, --

(i) the meters, connection-pipes and all other works necessary for and incidental to such supply, and all repairs, extensions and alterations of such works shall be under the control of the municipal council and the expense thereof shall, so far as is not inconsistent with the rules or bye-laws of the municipal council, be defrayed by the persons liable for the charges or payments fixed in respect to such supply; and

(ii) such supply of water shall be, and shall be deemed to have been, granted, subject to all such conditions as to the limit or stoppage thereof, and as to the prevention of waste or misuse, as are prescribed in the byelaws for the time being in force under section 324.

(2) Where a municipal council has made provision for the cleansing ofany factory, hotel, club or any group of buildings or lands used for any one purpose and under one management, it may, instead of levying in respect thereof any special sanitary cess imposed under this Chapter, fix a special rate and the dates and other conditions for periodical payments thereof; such rate, dates and conditions shall be determined either, -

(i) in accordance with the rules for the time being in force under section 323, or

(ii) by written agreement with the person who would have been otherwise liable for the cess:

Provided that in fixing the amount of such rate proper regard shall be had to the probable cost to the municipal council of the service to be rendered.

(3) Where a municipal council has imposed a tax on vehicles or animals used for riding, draught or burden and kept for such use within the ¹ [municipal area] it may be compounded with the keeper of any livery-stable or of horses or vehicles kept for sale and hire for the payment of a lump sum for any period not exceeding one year at a time, in lieu of any amount which such keeper would otherwise have been liable to pay on account of the tax imposed as aforesaid.

(4) The municipal council may compound for a period not exceeding one year at a time, with any person for a sum to be fixed in accordance with a scale approved by the municipal council and to be paid monthly, quarterly, or half yearly, in advance in lieu of all tolls payable in respect of any vehicle belonging to such person and issue a pass for the free admittance of the vehicle or animal, within the limits of the ¹ [municipal area], provided that the sum charged shall not be less than one-half of the amount which such person would have been liable to pay if the vehicle had to pay toll once every day during the period for which the pass is issued.

(5) Every sum claimed by a municipal council due under sub-section (1)as charges, payments or expenses, or as a special rate under sub-section(2) or as lump sum under sub-section (3), shall for the purposes of Chapter VII be deemed to be, and shall be recoverable in the same manner as, an amount claimed on account of a tax recoverable under the said Chapter:

Provided that nothing in this section shall affect the right or power of a municipal council to contract with any person to supply for use beyond the limits of the ¹ [municipal area] at such rates and on such conditions as the municipal council may think fit, any quantity of water belonging to the municipal council but not required for the purposes of this Act.

_______________________________

1. Substituted by Act 36 of 1994 w.e.f. 1.6.1994.