{"id":45852,"date":"1996-02-23T00:00:00","date_gmt":"1996-02-22T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/municipal-corporation-of-vs-mafatlal-industries-and-others-on-23-february-1996"},"modified":"2015-05-05T17:21:17","modified_gmt":"2015-05-05T11:51:17","slug":"municipal-corporation-of-vs-mafatlal-industries-and-others-on-23-february-1996","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/municipal-corporation-of-vs-mafatlal-industries-and-others-on-23-february-1996","title":{"rendered":"Municipal Corporation Of &#8230; vs Mafatlal Industries And Others, &#8230; on 23 February, 1996"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Municipal Corporation Of &#8230; vs Mafatlal Industries And Others, &#8230; on 23 February, 1996<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1996 AIR 1541, \t\t  JT 1996 (3)\t190<\/div>\n<div class=\"doc_author\">Author: G Pattanaik<\/div>\n<div class=\"doc_bench\">Bench: G.B. Pattanaik (J)<\/div>\n<pre>           PETITIONER:\nMUNICIPAL CORPORATION OF GREATERBOMBAY\n\n\tVs.\n\nRESPONDENT:\nMAFATLAL INDUSTRIES AND OTHERS, ETC.\n\nDATE OF JUDGMENT:\t23\/02\/1996\n\nBENCH:\nG.B. PATTANAIK (J)\nBENCH:\nG.B. PATTANAIK (J)\nKULDIP SINGH (J)\n\nCITATION:\n 1996 AIR 1541\t\t  JT 1996 (3)\t190\n 1996 SCALE  (2)415\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>\t\t      J U D G M E N T<br \/>\nG.B. PATTANAIK, J.\n<\/p>\n<p>     These appeals by special leave are directed against the<br \/>\njudgment of  the division  bench of  Bombay High Court dated<br \/>\n8.2.1993 arising  out of  writ petition nos. 539 of 1981 and<br \/>\n1606 of 1983 respectively.\n<\/p>\n<p>     The facts\tare not\t in dispute  namely the respondents&#8217;<br \/>\nindustries had\tgot their  guest houses\t in Bombay  and\t the<br \/>\nMunicipal  Corporation\t of  Bombay  treating  the  premises<br \/>\nfalling under Category under &#8216;C&#8217; the Bombay Electricity Duty<br \/>\nAct raised  a bill  for payment\t of  electricity  duty.\t The<br \/>\nrespondents being  aggrieved by\t the said billing filed writ<br \/>\npetition in the Bombay High Court contending inter alia that<br \/>\nthe premises  having been  used\t as  guest  houses  for\t the<br \/>\noccupation of  the employees  of the company, the same could<br \/>\nnot have  been categorized  as Category &#8216;R&#8217; and the order of<br \/>\nthe Municipal  Corporation is  invalid and  inoperative. The<br \/>\nappellant &#8211; Municipal Corporation in its return filed before<br \/>\nthe learned  Single Judge  took the  stand that\t the  tariff<br \/>\nunder Category &#8216;R&#8217; is exclusively meant for premises used as<br \/>\n&#8216;private residential premises&#8217; and tariff under Category &#8216;C&#8217;<br \/>\nis meant  for all  non industrial premises and a guest house<br \/>\nmaintained by  a commercial  undertaking even for occupation<br \/>\nof  its\t employees  cannot  come  within  Category  &#8216;R&#8217;\t and<br \/>\ntherefore rightly  they have been charged in accordance with<br \/>\nthe tariff  meant for Category &#8216;C&#8217;. The learned Single Judge<br \/>\non consideration  of the  relevant provisions  of the tariff<br \/>\ncame to\t the conclusion\t that Category\t&#8216;R&#8217; is restricted to<br \/>\npremises used  as private  residence and by a fixed category<br \/>\nfor example  a family  whose occupation\t is permanent  or at<br \/>\nleast of  a duration  dependent on factors such as length of<br \/>\nservice or  posting at a place etc. and it will not apply to<br \/>\ncases where  flats are\tprovided for  transitory periods for<br \/>\nout-station officers and directors. The learned Single Judge<br \/>\naccordingly held  that the  placing of\tthe  premises  under<br \/>\nCategory &#8216;C&#8217;  is fully justified and the Writ petitions were<br \/>\ndismissed. The\trespondents being aggrieved by the aforesaid<br \/>\njudgment of  the learned  Single Judge\tpreferred appeals to<br \/>\nthe Division  Bench. The  Division  Bench  by  the  impugned<br \/>\njudgment came  to the  conclusion that\tsince the company is<br \/>\nusing the  premises as\tguest house without any intention to<br \/>\nmake profit and it is not the business of the company to run<br \/>\na  guest  house\t it  must  be  held  that  the\tpremises  is<br \/>\nexclusively used  for its own purpose and accordingly tariff<br \/>\nrate meant for Category &#8216;R&#8217; should apply. The Division Bench<br \/>\nconstrued  that\t  the  word   &#8220;private&#8221;\t in  the  expression<br \/>\n&#8220;exclusively used  as a private residential premise&#8221; must be<br \/>\nread as\t opposed to  &#8220;public&#8221;. It  further came to hold that<br \/>\nsince guest  house  maintained\tby  the\t company  is  not  a<br \/>\nbusiness proposition  it cannot be held to be for commercial<br \/>\npurpose and  unless the\t premises is used for any commercial<br \/>\npurposes then  the same\t cannot be  categorized as &#8216;C&#8217;. With<br \/>\nthis conclusion the judgment of the learned Single Judge has<br \/>\nbeen reversed  and the\tappeals\t having\t been  allowed,\t the<br \/>\npresent appeals\t by special  leave have\t been filed  in this<br \/>\nCourt.\n<\/p>\n<p>     Mr.  Reddy,   learned  Additional\t Solicitor   General<br \/>\nappearing for  the appellant  contended\t that  the  Division<br \/>\nBench of  the Bombay  High Court  totally  misconstrued\t the<br \/>\nexpression  &#8220;exclusively   used\t as  a\tprivate\t residential<br \/>\npremise&#8221; and  the said\texpression has\tno co-relation\twith<br \/>\neither the  object of  profit making  or it is to be read in<br \/>\ncontradistinction to  the word\t&#8216;public&#8217;. According  to\t Mr.<br \/>\nReddy,\tthe   expression  &#8220;exclusively\tused  as  a  private<br \/>\nresidential premise&#8221;  must be  given its natural grammatical<br \/>\nconstruction and if such a construction being given it would<br \/>\napply to  those premises  which\t are  used  for\t residential<br \/>\npurpose\t and   will  certainly\tnot  apply  to\tguest  house<br \/>\nmaintained by  a company  or a\tcommercial undertaking where<br \/>\nits employees come and reside for some time when they are in<br \/>\nBombay. Mr.  Naik, learned  senior counsel appearing for the<br \/>\nrespondents on\tthe other hand contended that when under the<br \/>\nBombay Electricity  Duty Act two different tariffs have been<br \/>\nprovided for,  one for\tthe premises  used  for\t residential<br \/>\npurpose and the other for premises used for business, trade,<br \/>\ncommercial undertaking\tor professional\t purpose  the  guest<br \/>\nhouse belonging\t to the\t commercial  undertaking  must\tcome<br \/>\nwithin the  first category  and therefore the Division Bench<br \/>\nwas wholly  justified in directing the payment of tariff for<br \/>\nsuch  guest   houses  bringing\t them  under  Category\t&#8216;R&#8217;.<br \/>\nAccording to  learned counsel guest houses are maintained by<br \/>\ncommercial undertakings\t to be\tused by\t its employees\twhen<br \/>\nthey come  to  the  cities  and\t therefore  the\t purpose  of<br \/>\nmaintenance of\tsuch guest houses is undoubtedly residential<br \/>\nand consequently the categorization must be Category &#8216;R&#8217;.\n<\/p>\n<p>     In view  of  the  rival  submissions  at  the  bar\t the<br \/>\nquestion that  arises for consideration is, what is the true<br \/>\nmeaning of  the expression  &#8220;exclusively used  as a  private<br \/>\nresidential premises&#8217;? A premise to come within Category &#8216;C&#8217;<br \/>\nPart I\tto the\tSchedule of  Electricity Tariff\t must  be  a<br \/>\npremise which  is exclusively  used as a private residential<br \/>\npremise. It  is a  cardinal principle  of Construction\tof a<br \/>\nStatute that the words must be given its natural meaning and<br \/>\nmust be understood in its ordinary or popular sense and each<br \/>\nword must have its play. Natural and ordinary meaning of the<br \/>\nwords should  not be  departed from  unless it is shown that<br \/>\nthe context in which the words are used requires a different<br \/>\nmeaning.  Under\t  the  Bombay  Electricity  Duty  Act,\t1958<br \/>\n(hereinafter referred, to as &#8216;the Act&#8217;), under Section 3(1),<br \/>\nelectricity Duty  shall be  levied and\tpaid on the units of<br \/>\nenergy consumed\t at the\t rates specified  in the Schedule to<br \/>\nthe Act.  In the  Schedule &#8211;  Part A provided the tariff for<br \/>\npremises used  for residential\tpurposes and Part B provided<br \/>\nthe tariff for premises used for business, trade, commercial<br \/>\nundertaking or\tprofessional purposes.\tThe said Schedule of<br \/>\nelectricity tariff has been changed from time to time and in<br \/>\nthe case  in hand we are concerned with the tariff which was<br \/>\neffective from\t20th March,  1981. Under  the aforesaid 1981<br \/>\ntariff, Category  &#8216;R&#8217; would  apply to  premises\t exclusively<br \/>\nused as\t a private  residential premises  and  Category\t &#8216;C&#8217;<br \/>\nwould apply,  as a residuary category to premises which does<br \/>\nnot come  within categories R, S, RC (LV) and SL. This being<br \/>\nthe position  the question  for consideration is whether the<br \/>\nguest house  maintained by  the company\t for the  use of its<br \/>\nemployees when\tthey come  to the  city can  be held to be a<br \/>\npremise &#8220;exclusively  used as a private residential premise&#8221;<br \/>\nso as  to come\twithin the  Category &#8216;R&#8217;? On a plain literal<br \/>\nmeaning being  given to\t each of  the word in the expression<br \/>\n&#8220;exclusively used  as a\t private residential premises&#8221; it is<br \/>\ndifficult for  us to hold that the guest house maintained by<br \/>\na company  aforesaid expression.  The  aforesaid  expression<br \/>\nconnotes that  the premises  in question must be exclusively<br \/>\nused as\t a residential\tpremises which\tin other words would<br \/>\nmean where the premise which is used by any person privately<br \/>\nfor its\t own residence\tfor a  sufficiently continued period<br \/>\nand not a premise where a person can come and spend a day or<br \/>\na night and then go back. The guest houses are maintained by<br \/>\ncompany or  commercial undertaking  on the  other hand\tis a<br \/>\npart of\t its commercial\t venture and  such  premises  by  no<br \/>\nstretch of imagination can be held to be meant for exclusive<br \/>\nuse as\tprivate residential  premises. The Division Bench of<br \/>\nBombay\tHigh  Court  in\t our  considered  opinion  committed<br \/>\nserious error  in applying the test of profit making as well<br \/>\nas  the\t  test\t of   use   of\t the   word   &#8216;private&#8217;\t  in<br \/>\ncontradistinction to  &#8216;public&#8217;, which in our opinion have no<br \/>\nrelevance for  interpreting the expression &#8220;exclusively used<br \/>\nas a private residential premises&#8221;. The context in which the<br \/>\naforesaid expression  has been\tused for  determining tariff<br \/>\nunder the  Act, it  can only apply when any premises is used<br \/>\nas a  private residential  premises. The  word &#8216;exclusively&#8217;<br \/>\nalso must  be given  a rational meaning and viewed from that<br \/>\nangle, we are of the considered opinion that the guest house<br \/>\nmaintained by  a company  or commercial\t undertaking in\t the<br \/>\ncities can&#8217;t  be held a premise which is exclusively used as<br \/>\nprivate residential  premise. Therefore, Category &#8216;R&#8217; of the<br \/>\ntariff cannot  be held\tto be  applicable. The\tappeals\t are<br \/>\naccordingly allowed.  The judgement of the Division Bench of<br \/>\nBombay High  Court is set aside, the writ petitions filed by<br \/>\nthe respondents\t stand dismissed.  There will be no order as<br \/>\nto costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Municipal Corporation Of &#8230; vs Mafatlal Industries And Others, &#8230; on 23 February, 1996 Equivalent citations: 1996 AIR 1541, JT 1996 (3) 190 Author: G Pattanaik Bench: G.B. Pattanaik (J) PETITIONER: MUNICIPAL CORPORATION OF GREATERBOMBAY Vs. RESPONDENT: MAFATLAL INDUSTRIES AND OTHERS, ETC. DATE OF JUDGMENT: 23\/02\/1996 BENCH: G.B. PATTANAIK (J) BENCH: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-45852","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Municipal Corporation Of ... vs Mafatlal Industries And Others, ... on 23 February, 1996 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/municipal-corporation-of-vs-mafatlal-industries-and-others-on-23-february-1996\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Municipal Corporation Of ... vs Mafatlal Industries And Others, ... on 23 February, 1996 - Free Judgements of Supreme Court &amp; 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