NOTIFIED AREA COMMITTEE NANGAL TOWNSHIP versus BHAKRA MANAGEMENT BOARD, CHANDIGARH AND ORS.

Citation: [1999] SUPP. 1 S.C.R. 17 · Decided: 04-08-1999 · Supreme Court of India · Bench: D.P. WADHWA · Disposal: Dismissed

Judgment (excerpt)

NOTIFIED AREA COMMITTEE NANGAL TOWNSHIP 
A 
v. 
BHAKRA MANAGEMENT BOARD, CHANDIGARH AND ORS. 
AUGUST 4, 1999 
[D.P. WADHWA AND M.B. SHAH, JJ.] 
B 
Municipalities: 
Punjab Municipal Act, 191I-Section3(2)-Property Tax-'Building'-
Annual rental value of a row of bungalows adjoining each other in one block C 
taken as a 'building' for levying house tax-Jn appeal-Held-'Building' 
includes any house meant for human habitation-Each bungalow is a 
'building' and is assessable to tax separately. 
The respondent-Board constructed a number of residential houses for D 
accommodation of its employees. Different blocks have row of houses 
adjoining each other, but each bungalow has separate boundary walls with 
distinct house numbers and are allotted to different employees. 
Earlier, each house was assessed by the appellant-Committee to house 
tax on the basis of annual value worked out separately for each house. E 
'However, from 1977-78, the appellant-Committee treated the entire block as 
one 'building' and imposed ad va/orem rate of house tax at 15% of the 
annual rental value of the 'building', under the Punjab Government 
Notification dated 23.1.1976. 
The respondent-Board contended before the Committee that it was F 
exempt from house tax since the annual rental value of each house/unit was 
below the taxable amount specified in the Notification. However, the Committee 
rejected the objections, and the appeal filed before the Deputy Commissioner 
was dismissed. 
Single Judge of the High Court allowed the writ petition of the Board 
and the order was confirmed by the Division Bench of High Court in appeal. 
In this appeal, the appellant-Committee contended that there was only 
one building which was sub-divided and since there was one titleholder, the 
17 
G 
H 
18 
SUPREME COURT REPORTS [1999] SUPP. 1 S.C.R. 
A house tax was correctly levied. 
Dismissing the appeals, this Court 
HELD: 1.1. The appellant-Committee was not justified in clubbing all 
bungalows in a row in one block together and terming that as a 'building' 
B for the purposes of fixing the annual rental value for determination of house 
tax. Each bungalow for the residence of an employee would fall within the 
definition of a 'building' and be valued separately for the purposes of levying 
house tax. [il-B-C-D] 
1.2. 'Building' means any house intended for human habilitation. Simply 
C because some bungalows have a common boundary wall, though each 
separating the other and, each is allotted to separate employees, it would not 
mean that a bungalow ceases to be a house. [21-A-B) 
D 
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 3830-34 of 
1990 Etc. 
From the Judgment and Order dated 14.12.89 of the Punjab & Haryana 
High Court in C.W. Nos. 5528-30, 5487-88of1989. 
Ms. Kamini Jaiswal for the Appellant. 
E 
Dhruv Mehta. S.K. Mehta. Fazlin Anam and Ms. Shobha for the 
Respondents. 
The Judgment of the Court was delivered by 
D.P. W ADHW A, J. The question that falls for consideration in these 
F appeals is if the appellant - Notified Area Committee - was legally correct in 
assessing the annual value of row of quarters in one block as a 'building' for 
the purpose of"levying house tax under the Punjab Municipal Act, 1911 ('Act' 
for short). This question arises on the interpretation of the word 'building' 
in the Act. 
G 
'Building' is defined under clause (2) of Section 3 of the Act to mean 
"any shop, house, hut, outhouse, shed or stable, whether used for the 
purpose of human habilitation or otherwise and whether of masonry, bricks, 
wood, mud, thatch, metal or any other material whatever and includes a wall 
and a well". 
H 
The question crops· up in the fo11owing circumstances. 
NOTIFIED AREA COMMITTEE v. BHAKRA MANAGEMENT BOARD [D.P. WADHWA, J.) 
19 
Respondent Board (Bhakra Management Board) is constituted by the A 
Central Government under Section 79 of the Punjab Reorganisation Act, 1966. 
The Board was so constituted for administration, maintenance and operation 
of various works as described in the section. These works included Bhakra 
dam and reservoir and power houses. For the construction, maintenance and 
operation of the works entrusted to the Board under the Punjab Reorganisation B 
Act, the Board constructed number of residential houses at Nangal township 
for providing residential accommodation to its officers, staff and workers 
employed in the power houses. Residential accommodation consisted of 
different types of bungalows and quarters 

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