Section 49(3) in The U.P. Water Supply and Sewerage Act, 1975
(3)Where the management of water supply or sewerage services of any Jal Sansthan or local body is taken over by the Nigam or any dues are realised by it under the [provisions of sub-section (2) or sub-section (2-A)] [Substituted by UP Act No. 28 of 1978 (w.e.f 1.8.1978).] all costs, charges and expenses properly incurred by it as incidental to such management and realisation shall be recoverable from the Jal Sansthan or local body and the money which is received by it from such management and realisation shall, in absence of any contract to the contrary, be held by it in trust to be applied, firstly, in payment of such costs, charges and expenses and secondly, in discharge of the debt due to the Nigam and residue of the money so secured shall be paid to the Jal Sansthan or local body entitled thereto.
