CHRISTIAN CHILDREN FUND INC. versus MUNICIPAL CORPORATION OF DELHI AND ORS.

Citation: [1994] 3 S.C.R. 1017 · Decided: 12-05-1994 · Supreme Court of India · Bench: KULDIP SINGH, P.B. SAWANT

Judgment (excerpt)

J 
.., . -r 
CHRISTIAN CHILDREN FUND INC. 
v. 
MUNICIPAL CORPORATION OF DELHI AND ORS. 
MAY 12, 1994 
[KULDIP SINGH AND P.B. SA WANT, J.1.J 
Delhi A1u11ic1jJa/ C(nporation Act, 1957-Section l 15(4}-!11tc1pre1atio11 
of-Propeny Tax-Ere111ptio11 jf·o1n-In respect of preniiscs of Organisation 
established e.:i:clusirc(r for chalitable pu1pose-Includes Ad1ninistrative Office 
A 
B 
of such organisation. 
C 
The appellant-organisation established with the object of promotiug 
the welfare of orphans and the needy children sought exemption from 
Property Tax, under Section 115(4) of the Delhi Municipal Corporation 
Act, 1957, in respect of its Delhi Branch Office on the ground tliat the 
premises in question were being exclusively used and occupied for 
charitable purpose. The respondent-Corporation refused exemption on the 
ground that since the premises in question were used for office purposes 
D 
the same could not be said to be the premises exclusively occupied and 
used for charitable purpose. The appellant filed a writ petition in the High 
Court which dismissed the same and affirmed the view that as the building E 
in question was being used for office exemption from Property Tax was not 
permissible. 
Against the decision of the High Court an appeal was preferred in 
this Court. 
Allowing the appeal and setting aside the order of the High Court, 
this Court 
F 
HELD : I. Both the municipal authorities and the High Court have 
committed an obvious error of interpreting the provisions of Section G 
115(4) narrowly and unrealistically. The interpretation placed by them on 
the said provisions has, therefore, to be rejected. [1021·E, 1022-B] 
2. Every organisation established for a charitable purpose requires 
some premises to run its administration. Without an administrative office, 
it is not possible for an organisation to run and manage its charitable H 
1017 
1018 
SUPREME COURT REPORTS 
[1994] 3 S.C.R. 
A 
activities. The extent of the premises required to run the administrative 
office would depend upon the nature and size of its activities. Hence the 
·~ 
premises required by an organisation for its administrative office are an 
essential and an integral part of its charitable activities. Sometimes the 
administrative office of such organisations may be located where the 
B charitab1e activity or activities are carried on and sometimes it is located 
away from such place depending upon the availability of the premises and 
convenience. So long as the premises in which the administrative office of 
the charitable organisation is carried on are exclusively used and occupied 
by its office, the premises would be covered by the exemption provided 
' 
under Section 115(4). To hold otherwise, viz. that it is only the premises 
c where actual charitable activity is carried on alone is qualified for the 
exemption is irrational. The respondent-Corporation is directed to con-
sider the-appellant's application accordingly. [1021-F-H; 1022-A-B] 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2624 of 
1984. 
D 
From the Judgment and Order dated 23.5.84 of the Delhi High Court 
'--. 
in C.W. No. 1351 of 1984. 
R.K. Jain, G.K. Arora and R. Agnihotri for the Appellant. 
E 
Ms. Binn Tamta for the Respondents. 
The Judgment of the Court was delivered by 
SAWANT, J. The appellant-organisation has been established with 
the object of promoting the welfare of the orphans and the needy children 
F 
throughout the world. It is founded with the help of voluntary contributions 
collected from all over the world. It has branches in many countries. The 
appellant also funds other organisations with similar charitable objectives 
' 
such as orphanages, educational institutions and other institutions meant 
for the handicapped children irrespective of religion, caste, creed and sect. 
G In this country also there are many charitable institutions for child welfare 
which are in receipt of funds from the appellant. The Delhi branch of the 
appellant is situated in its own premises on the 5th floor of the building 
known as 
11Padma Palace
11
1 86, Nehru Place, New Delhi. 
2. Under Section 115(4) of the Delhi Municipal Corporation Act, 
H 1957 (the 'Act') the premises occupied and used exclusively by an organisa-
.... -
CHRISTIAN CHILDREN FUND INC. v. M C.D. [SAWANT,J.] 
1019 
tion for a charitable purpose are exempted from property tax• The relevant A 
provisions of Section 115(4) are as follow: 
"( 4) Save as otherwise provided in this Ac

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