In a landmark decision, the Gujarat High Court set aside a Rs 146.79 lakh ($176,000 USD) demand from the Gujarat state government against Reliance Industries Ltd (RIL) for alleged unpaid water charges spanning from 1997 to 2005. Justice H M Prachchhak ruled that once a contract was executed and payments made, the state could not retroactively impose additional charges. The court noted that RIL had already paid dues as per earlier government resolutions and received a 'No Due Certificate' up to October 2003, which confirmed that all obligations were fulfilled. The demand arose from a notice issued in July 2005, which sought to recover the reassessed charges based on a government resolution from September 2002 that was not acted upon. The court highlighted that it would be unjust to demand arrears based on a resolution that had not been enforced. RIL argued that the retrospective reassessment violated contractual terms and established billing practices, emphasizing that any changes in charges should only be applied prospectively. This ruling reinforces the principle of contractual certainty and limits on retrospective state actions.