Shri J.R.Sood & Ors. vs Municipal Corporation Of Delhi
2012 Latest Caselaw 15 Del

*    IN THE HIGH COURT OF DELHI AT NEW DELHI


%                         DATE OF DECISION: JANUARY 02, 2012

+    RFA(OS) 100/1998

     SHRI J.R.SOOD & ORS.                   ..... Appellants
                    Through: None.

                   versus

     MUNICIPAL CORPORATION OF DELHI ..... Respondent
                   Through: Ms.Amita Gupta, Advocate.

+    RFA(OS) 101/1998

     M/S.AJAY ENTERPRISES LTD.               ..... Appellant
                   Through: None.

                   versus

     MUNICIPAL CORPORATION OF DELHI ..... Respondent
                   Through: Ms.Amita Gupta, Advocate.

      CORAM:
      HON'BLE MR. JUSTICE PRADEEP NANDRAJOG
      HON'BLE MS. JUSTICE PRATIBHA RANI

PRADEEP NANDRAJOG, J. (ORAL)

%

1. Two suits filed in the singular and decided in singular are being disposed of by a singular order for the reason a common issue arises for consideration in both the appeals.

2. Subject matter of municipal assessment in the suit which has resulted in filing of RFA (OS) No.100/1998, is the building

popularly known as EROS Cinema. The property which formed the subject matter of the suit relatable to RFA (OS) No.101/1998 is VISHAL Cinema.

3. While determining the ratable value of the two Cinema buildings, the Municipal Corporation of Delhi took into account the value of the plant and machinery installed in the two Cinema buildings. The assessment was challenged by way of a suit.

4. Vide judgment(s) and decree(s) dated 25.08.1998, both suits have been held to be barred and hence the plaint(s) stand rejected. It has been held that the plaintiff(s) have an efficacious alternative remedy to challenge the assessment by filing an appeal under Section 169 of the Delhi Municipal Corporation Act, 1957.

5. Pertaining to the assessibility of the plant and machinery situated in and upon any land or building, by relying upon sub Section 3 of Section 116 of Delhi Municipal Corporation Act, 1957, the issue has attained finality before Supreme Court in the decision reported as AIR 2003 SC 2935 Krishna Mohan Pvt. Ltd. vs. MCD & Ors. The Supreme Court has held that while determining the ratable value of a land or a building, the value of the plant and machinery installed or brought upon the land or building cannot be taken into account while determining the standard rent and therefrom the ratable value of the building.

6. Suffice would it be to state that if a property is not exigible to tax, if sought to be taxed, the said action can be challenged by a suit notwithstanding a statutory remedy of appeal being available.

7. Since the issue at hand stands settled by an authoritative pronouncement of the Supreme Court, we dispose of the appeal(s) as also the suit(s) filed by the appellant(s) and decree the suit(s) quashing the assessments which were challenged in the two suits and issue a direction to the MCD to reassess the subject properties, for the relevant period, in accordance with law by taking into account the decision of the Supreme Court reported as AIR 2003 SC 2935 Krishna Mohan Pvt. Ltd. vs. MCD & Ors.

8. No costs.

PRADEEP NANDRAJOG (JUDGE)

PRATIBHA RANI (JUDGE)

JANUARY 02, 2012 dc