LexMUNICIPAL CORPORATION OF GREATER BOMBAY versus M/S POLYCHEM LTD.
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687 A MUNICIPAL CORPORATION OF GREATER BOMBAY B c D E F G H v. M/S POLYCHEM LTD. March 20, 1974 [M.H. BEG AND Y.V. CHANDRACHUD, JJ.] Bombay Municipal Corporation Act. 3 of 1888-S. 3(r) and S. 154-Scope of. Principles for detennining rateable value of land on which a building is partly completed-Doctrine of sterility-Distinction between English and Indian Law. The respondent company was owner of a large area of land in Bombay, on a part of which there was a building under construction. The bulk of the remaining part was lying vacant. The Assessor and Collector of the Municipal Corporation determined the market value of the whole land on a notional basis and fixed the hypothetical annual rental value of the portion of land on which a building was being built as well as the vacant land. The respondent's appeal to the Small Cause Court was dismissed. ·Applying the doctrine of sterility the High Court held that although a vacant plot of land was rateqble under the provisions of the Bombay Municipal Corporation Act and so was land which had been built UP.on, yet, any part of land which was being actually built upon was not rateable until the building was finished because no tenant could take it in that condition. · In the appeal to this Court it was con~nded on bellalf of the ~ppellant Corporation that the High Court erred in applying the doctrine of sterility to land rateable under the provisions of the Act i. that, the High Court overlooked the essential distinction between the Indian and i:.nglish law which waS that the basis for determining the rateable value in India was the value of the property to the owner and not to the occupier, and, that, every kind of 'land' as defined-by s.3(r) of the Act was rateable under s.154 of the Act simply because it had a value to the owner of it and not because it was yielding any income or was usefully or beneficially occupied or enjoyed by tenant or any other kind of occupant paying for the use of it. Allowing the appeal. HELD : The judgment under appeal is erroneous as it was held there that land which was being rated as vacant ceased to be subject to any ratin~ at all simply because a buildin~ began to be made on it by the owner. The role of interpretation that, where two views are reasonably or equally open, the court should adopt the one which benefits the assessee would enable it to do no more than to treat land which is actually being built upon on the same footing as vacant land so long as no structure capable of occupation and letting is completed on it. [702 DPE] Land which was being built upon should not be rated like ]and on which a building has been actually constructed unless and. until the construction had reached a stage at which some occupation of the constructed portion was also le~lly and actually possible so that it could be taken into account in determining the rateable value. [701 F] The doctrine of sterility in the context of the provision$ to be construed could not apply in this case. In England, land which is in the process of being built uPon is equated with vacant land which is not yielding any profit, so that it ceases to bo "rateable'' ]and. ·But, under the statute, all 'land' .whether vacant or in the process of being built upon is rateable according to well settled principles. (700 A] West Bromwich Si:hool Board v. Overseers of West Bromwich, 13 Q.B.D, 929 @ 942, Mersey Docks & Harbour Boarq v. Oversem of L/ane///an,14 Q.B.O. p. 770, The Metropolitan Board of Works v. The. Overseers of Weil Ham : 688 SUPREME COURT REPORTS [1'174] 3 s.c.R. (1870) L.R. 6 Q.B. 193, The Guardians of the Poor of the Sculcoates Union in the Borough of Kingston- Upon-Hu/Iv. Dock Company at Kingston-Upon-Hull, 1895 A.C. 136, the Churchwardens & OversetrS of Lambeth Parish v. The London County Council, & 1897 A.C. 625 @ 630-31, London County Council v. Erith (Church- wardens Overseers of Parish; 1893 A.C. 562 @ 591, held inapplicable. The principles upon which lands are rated in this country have been practically settled by the decisions of this Court which held that the mode of assessment in every case must be directed towards finding out the annual letting value of land which is based. on rating of land, and, by definition, "land" includes land which is either being built upon or has been built upon. A reference to the provisions of the Act shows that, after a building haS been completed, the letting va
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