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the Municipal Corporation of Delhi took into account the value of the plant and machinery installed in the two Cinema buildings. The assessment was challenged by way of a suit. =AIR 2003 SC 2935 Krishna Mohan Pvt. Ltd. vs. MCD & Ors. The Supreme Court has held that while determining the ratable value of a land or a building, the value of the plant and machinery installed or brought upon the land or building cannot be taken into account while determining the standard rent and therefrom the ratable value of the building.

RFA(OS) 100/1998 & RFA(OS) 101/1998 Page 1 of 3

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* IN THE HIGH COURT OF DELHI AT NEW DELHI
% DATE OF DECISION: JANUARY 02, 2012
+ RFA(OS) 100/1998
SHRI J.R.SOOD & ORS. ….. Appellants
Through: None.
versus
MUNICIPAL CORPORATION OF DELHI ….. Respondent
Through: Ms.Amita Gupta, Advocate.
+ RFA(OS) 101/1998
M/S.AJAY ENTERPRISES LTD. ….. Appellant
Through: None.
versus
MUNICIPAL CORPORATION OF DELHI ….. Respondent
Through: Ms.Amita Gupta, Advocate.
CORAM:
HON’BLE MR. JUSTICE PRADEEP NANDRAJOG
HON’BLE MS. JUSTICE PRATIBHA RANI
PRADEEP NANDRAJOG, J. (ORAL)
%
1. Two suits filed in the singular and decided in singular are
being disposed of by a singular order for the reason a common
issue arises for consideration in both the appeals.
2. Subject matter of municipal assessment in the suit which
has resulted in filing of RFA (OS) No.100/1998, is the building
RFA(OS) 100/1998 & RFA(OS) 101/1998 Page 2 of 3
popularly known as EROS Cinema. The property which formed
the subject matter of the suit relatable to RFA (OS)
No.101/1998 is VISHAL Cinema.
3. While determining the ratable value of the two Cinema
buildings, the Municipal Corporation of Delhi took into account
the value of the plant and machinery installed in the two
Cinema buildings. The assessment was challenged by way of a
suit.
4. Vide judgment(s) and decree(s) dated 25.08.1998, both
suits have been held to be barred and hence the plaint(s) stand
rejected. It has been held that the plaintiff(s) have an
efficacious alternative remedy to challenge the assessment by
filing an appeal under Section 169 of the Delhi Municipal
Corporation Act, 1957.
5. Pertaining to the assessibility of the plant and machinery
situated in and upon any land or building, by relying upon sub
Section 3 of Section 116 of Delhi Municipal Corporation Act,
1957, the issue has attained finality before Supreme Court in
the decision reported as AIR 2003 SC 2935 Krishna Mohan Pvt.
Ltd. vs. MCD & Ors. The Supreme Court has held that while
determining the ratable value of a land or a building, the value
of the plant and machinery installed or brought upon the land
or building cannot be taken into account while determining the
standard rent and therefrom the ratable value of the building.
RFA(OS) 100/1998 & RFA(OS) 101/1998 Page 3 of 3
6. Suffice would it be to state that if a property is not exigible
to tax, if sought to be taxed, the said action can be challenged
by a suit notwithstanding a statutory remedy of appeal being
available.
7. Since the issue at hand stands settled by an authoritative
pronouncement of the Supreme Court, we dispose of the
appeal(s) as also the suit(s) filed by the appellant(s) and
decree the suit(s) quashing the assessments which were
challenged in the two suits and issue a direction to the MCD to
reassess the subject properties, for the relevant period, in
accordance with law by taking into account the decision of the
Supreme Court reported as AIR 2003 SC 2935 Krishna Mohan
Pvt. Ltd. vs. MCD & Ors.
8. No costs.
PRADEEP NANDRAJOG
(JUDGE)
PRATIBHA RANI
(JUDGE)
JANUARY 02, 2012
dc

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