DELHI MUNICIPAL CORPORATION Vs. BATRA BROTHERS

JUDGEMENT

(1.) The question involved in this petition is regarding the assessment of property tax under Delhi Municipal Corporation Act, 1957 (for short `the act') pertaining to property No. 13-KM Shakurbasti, Rohtak Road, Delhi. It is a railway property. Its ownership vests in President of India. Under an agreement dated 21st November, 1974 entered into between the Administration on one part and respondent No. 1 on the other, the use of the land in question was granted to respondent No. 1 for the purpose of constructing and maintaining thereon depot for petroleum products. As provided in the agreement, the land is to be used solely for storage of petroleum products and vegetable oils. The agreement, inter alia, provides that respondent No. 1 shall not be entitled to assign, mortgage, sublet or transfer otherwise the privileges mentioned in Clause 1 of the agreement without previously obtaining the consent in writing of the Administration. The agreement describes the arrangement between the parties as a licence.

(2.) The Assessing Officer of Delhi Municipal Corporation by order dated 25th July, 1984 assessed the rateable value of the property in question at Rs. 1,08,930/ w.e.f. 1st April, 1979. The order of the Assessing Officer was challenged by respondent No. 1 by preferring an appeal under Section 169 of the Act 1958. By order dated 2nd June, 1989 passed by learned Additional District Judge, the appeal of respondent No. 1 was allowed and the assessment order dated 25th July, 1984 was set-aside holding that the property in question could not be assessed to property tax under Section 120 of the Act. The order of learned Additional District Judge in now under challenge in this petition filed by the Municipal Corporation of Delhi.

(3.) The exigibility to property tax of oil tankers to property tax has now not been disputed on behalf of respondent No. 1 in view of the decision of the Supreme Court in The Municipal Corporation of Greater Bombay and others Vs. The Indian Oil Corporation Ltd. AIR 1991 Supreme Court 686. It has, however, been submitted that respondent No. 1 being only a licensee in respect of property in question, the property tax is not leviable.