LexMUNICIPAL CORPORATION OF GREATIOR BOMBAY AND ANR. versus INDIAN OIL CORPORATION LTD.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
MUNICIPAL COR.pOR.ATION OF OR.EATIOR
BOMBAY ANP ANR.
v,
INDIAN OIL COR,PORATION LTO.
NOVEMB!'R. 27, 1990
[S. RANOANATHAN AND K RAMA$WAMY, JJ,]
Bomb(ly Mrmicipal Corporation Act, 1888-Se!'/ions 3(r), 3(s),
143 anif 154-Petroleum storage t!lnk-Whether bµild/ng, s(rµc(µre, or
land-Exigible to property tqx,
Words and Phrases-'Land', 'building'-Meqning <Jf.
The respondent-Oil . Col]>Orntion took I! pil!fe of l!llld on leasll
from the lJomb!ly Port Trw;t for 30 years from February 19{il !11!!1 p11t
up si11 oil tanks for storage llf petrol llllcl p!-'troJeUID products, 11part
from other strudµres !llld buildings.
For the ye,.r 1964-65 tlte appe1J1111t-Mu11ic!pal C(lrpol'l!tion fixed a
sum as the rateable v11lue of the Installations oil th• demlsell property
consisting pf the buildillgs, structures and tanks. Tb• J!lvestigllting
11fficer, on objections raised by the respon!lent, rectuce!l the r11teable
value, the rateable value of th• tanks being fixed on the basis of the
capacity of each llf the tanks.
On appeal to the Court pf Small Causes as against rateable value
of the tanks, the Additim1al Chief Judge foun!l that the tanks fell within
the dermition of 'land' or 'builcling' in Sl!ftl1111 3(r) and 3(s) of th•
Bombay Municipal Corporation Act, 1888 !llld are liallle to pr11perty
tall'. \lnder the Act. Accordingly, the rate111lle v11lue 11f the tanks fixed by
the Corporation was upheld.
On further appeal, the Hlglt Court llllowed the appeal holiJing
tllat the tanks are neither structure nor 11 building nor laud under the
Act.
In ·the appeaf to this Court by the Municipal Corporation the
question was whether the storage tauks of petroleum products are
"lands" within the meaning of section 3(r) or "buildings" as defme!l
11ncler section 3(s) of the Bombay Municipal Corporation Act, 1888 and
are •J<igible to property tax.
365
c
F
0
A
B
c
D
E
F
366
SUPREME COURT REPORTS
[1990] Supp. 3 S.C.R.
Allowing the appeal, this Court,
HELD: 1. The expression 'building' includes the fabric of which it
is composed, the ground upon which its walls stand and the ground
within those walls because the ground would not have a separate
existence, apart from the building. [371G-H]
A tank to be a building must be a structure designed for either
habitation or shelter for human habitation or storage of inanimate
objects in storehouse or stable for horses shed or a hut etc. within the
four corners of the waUs built with masonary or otherwise with ingress
or egress. [372A-B]
The word, 'building' must be given its ordinary natural meaning
ascribable to it Including the fabric and the ground on which it stands.
On a mere look at the tank, by no stretch of bnagination, it could be
said to be a building. [372A-B]
The dermition of the word, 'building' is an inclusive definition
bringing within its ambit house, out-house, stable, shed, hut and every
other such structure, whether of masonary, bricks, wood, mud, metal
or auy other material whatever. [372B-C]
The tank does not answer any of the descriptive particulars. [372C]
2. The house or building, etc. must be coustructed in accordance
with the Master Plan and the Building Regulations conformable to the
statutory requirements like drainage/Sewage regulations. The cons-
truction of the tank is not required to be within the parameters of these
regulations. Thereby tauks cannot be construed to be a structure, [3721).E]
The structure must be an entity In itself, although not necessarily
a building in itself, adopted to the particular purpose it serves. In its
ordinary sense a structure is something which Is constructed by way of
being built as is a building. But method of construction by itself is not
conclusive. Structure by itself may not be a building but it may be
G analogous to a building, outhouse, shed, hut or a stable. Ship is like a
floating building hut it is uot a structure. A crane, gentry or a turnable
is a structure but is not a building. Weighing bridge is a structure.
Tilting furnaces mains are In the nature of structure. [378E-F]
3. The dermition of 'land' also is of an inclusive definition. Its
H accompanhneuts are land, which is being built upon or Is built upon or
MUNICIPAL CORPN. v. 1.0.C
367
covered with water; benefits to arise out of land; things attached to the
earth or permanently fastened to anything attached to the earth and
rights created by legislative enactment over any street. [378H-379B]
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