Section 224A(1) in The U.P. Municipalities Act, 1916
(1)When a licence is granted under clause (c) of Section 224, the rate at which, the manner in which, and the person by whom, payments shall be made to the licensee for water supplied by him and the terms and conditions on which the licensee may grant water connections to the consumers shall be settled between the [Municipality] [Substituted by U.P. Act No. 12 of 1994.] and the licensee and entered in the licence, and the [Municipality] [Substituted by U.P. Act No. 12 of 1994.] may delegate to the licensee any of the powers conferred on it by this Act or rules relating to water-works and water-supply :Provided that the power of assessment of water-tax and of its recovery otherwise than by a civil suit shall not be delegated to the licensee.