NEW DELHI MUNICIPAL COUNCIL versus SOHAN LAL SACHDEV (DEAD) REPRESENTED BY MRS. HARINDER SACHDEV W/O LATE SOHAN LAL SACHDEV

Citation: [2000] 1 S.C.R. 731 · Decided: 09-02-2000 · Supreme Court of India · Bench: S.B. MAJMUDAR · Disposal: Appeal(s) allowed

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Judgment (excerpt)

/
NEW DELHI MUNICIPAL COUNCIL
v.
SOHA'.'l LAL SACHDEV (DEAD) REPRESENTED BY MRS.
HARINDER SACHDEV w;o. LA TE SO HAN LAL SACHDEV
FEBRUARY 9, 2000
[S.B. MAJUMDAR AND D.P. MOHAPATRA, ff[
Electricity Act, 19 IO.· Section 23--Two floor of a residential house rented
for use as a Guest house-Electricity charges claimed 011 domestic
rates-Commercial rates charged--Suit filed for injunction restraining NDlvlC
f ram charging commercial rates-Suit dismissed- First appeal also dis-
missed--Seco11d appeal allowed by High Court-On appeal, Held: letting out
of premises for rnnning a guest house amounted to commercial purpose-Pur-
pose for which the guest or occupant of guest house uses the electricity not
relevant-Nature of purpose of the user by the owner relevant for detem1ina-
tion.
Word.I & Phrases:
'Commercial', 'domestic purpose'-Meaning of.
A
B
c
D
The respondent (after death represented by his wife) was residing E
on the ground floor of his house and let out the first floor and barsati to
a Guest House. On this the appellant started charging for w.iter and
electricity on 'non-domestic rates'. The respondent, therefore, filed a suit
for an injunction restraining the appellant from raising demand on the
basis of commercial user of the premises which was dismissed. First
F
appeal before the Sr. Civil Judge was also dismissed. The second appeal
filed by the respondent was allowed by the High Court on the ground that
the user of the suit premises for running the 'guest house' without any
kitchen facility was a user for residential purpose. Hence the present
appeal.
G
Allowing the appeal, this Court
HELD : 1.1. The terms 'domestic' and 'commercial' are not defined
in the Electricity Act or Rules. Therefore, the expressions are to be given
common parlance meaning and must be understood in their natural, H
731
732
SUPREMF. COURT RHORTS
[2C<,'O] l S.C.R.
A ordinary and popular sense. In interpreting the phr.tses the context in
which they are used is also to be kept in mind. The word "commercial"
means traffic, trade or merchandist! in buying and selling of goods whereas
the phrase "domestic purpose" m1~ans use for personal residential pur·
poses. The significant thing to note is that what is the character of the
B purpose of user of the premises hy the owner or landlord and not the
character of the place of user. The classification made for the purpose of
charging electricity duty by the N.'.JMC sets out the categories 'domestic
user' as contra- distinguished from 'commercial' user or to put it different·
ly 'non-domestic user'. The intent and purpose of the classification is to
make a distinction between 'purely residential purpose' as against 'com·
C mercial purpose'. ln the case of a 'guest house', the building is used for
providing accommodation to 'guests' who may be travellers, passengers,
or such persons who may use the premises temporarily for the purpose of
their stay on payment of charges. The use for which the building is put by
the keeper of the guest house in the context cannot be said to be for purely
D residential purpose. It is the use of the premises by the owner (not
necessarily absolute owner) which is relevant for determination of the
question and not the purpose for which the guest or occupant of the guest
house uses electric energy. [735-C-H; 734-A·B]
Municipal Corporation of Greater Bombay v. Mafatlal Industries,
E [19961 s sec 21 relied on.
F
Stroud's Judicial Dictionary, Vth Edition, referred to.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 912 of
2000.
From fae Judgment and Order dated 18.12.96 of the Delhi High
Court in R.S.A. No. 27 of 1995.
R.K. Maheshwari for the Appellant.
G
Rajesh Malhotra and Dalip Kumar Ylalhotra, for the Respondent.
The Judgmtnt of the Court was ddiwred by
MOHAPATRA, J. Delay condoned. Li;:;ave granted.
H
The con: question that arises for determination in this case ts
v
N.D.M.C '· s.:. SACHDE'V :DEAD) REflU'-'toNIAIBD EY \1RS. H. SAC:HJJl!V [MOHAPATRA. J.[ 733
whether use of premises for the purpose of a guest house can be termed A
as 'domestic use' for the purpose of electricity charges by the New Delhi
Municipal Council (NDMC)?
The factual backdrop of the case, shorn of unnecessary details, may
be stated thus :
Sohan Lal Sachdev, deceased, represented by legal representative,
was the landlord of the premises bearing No. 49, Golf Links, New Delhi.
He occupied the ground floor the said premises.

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