1 FA-680-1990

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

CIVIL APPELLATE JURISDICTION

FIRST APPEAL NO.680 OF 1990

Municipal Corporation of Greater Bombay,

a Corporation constituted under

the Bombay Act III of 1988, having its

Office at Mahapalika Marg, Bombay

..Appellant

(Orig.Respondent)

Versus

Steel Suppliers Private Ltd.Bombay

a Company registered under the companies

Act, having its office at 1, Quay Street,

Darukhana, Mazgaon, Bombay-400 010

..Respondent

(Orig.Appellant)

Mr.R.T. Walawalkar with J.J.Xavier for the Appellant

None for Respondent

CORAM : S.R. SATHE,J.

DATED : 14/08/2007

ORAL JUDGEMENT :-

1.

The Municipal Corporation of Greater Bombay-

Original Respondent in Municipal Appeal No.247 of 1985

has preferred this appeal against the judgement and

order passed by the Court of Additional Chief Judge,

Small Causes Court, Bombay whereby the order of

Investigating officer fixing the ratebale value of the

present Respondent's property at Rs.1,89,660/- was set

aside and the rateable value was fixed at the previous

ratable value i.e. Rs.42,605/-. For the sake of

convenience hereafter the parties shall be referred to

as 'Steel Supply Company' and 'BMC'.

2.

The brief facts giving rise to this appeal are

as under :-

2 FA-680-1990

Steel Supply Company purchased the property in

question from the official liquidators in the Court

auction in 1980 for Rs.20 lakhs. The property consists

of a structure consisting of ground plus two upper

floors and two shades. The total area of the property

in question is 16,383 sq. yards. It is located in the

heavy industrial zone. After purchase of the said

property Steel Supply Company was having their factory

in the said property. However, due to some difficulty

they were required to close the said factory. They,

therefore, gave some portion of the said property i.e.

two shades and portion of about 22500 sq.feet to Oil

and Natural Gas Commission on leave and license basis

at monthly license fee of Rs.49,307/-.

3.

When the entire property was being occupied by

Steel Company, BMC had fixed the ratable value of the

said property at Rs.41,595/-. However, when BMC came

to know about the property given to ONGC by the Steel

Company, Deputy Superintendent BMC visited the suit

property and after necessary inquiry proposed the

revision of ratable value of the suit property to the

tune of Rs.3,44,995/-. Being aggrieved by the same,

Steel Company filed complaint to BMC. After hearing

Steel Company, Investigating Officer of BMC fixed the

3 FA-680-1990

ratable value of the entire suit property i.e. portion

in occupation of ONGC and portion in occupation of

Steel Company at Rs.1,89,660/-. Being dissatisfied with

the above mentioned ratable value, Steel Company filed

Municipal Appeal No.247 of 1985 in the Court of Small

Causes at Bombay. In order to show that the ratable

value fixed by the Investigating Officer of BMC is

exorbitant, unreasonable and illegal. On behalf of the

Steel Company one Arun Agarwal was examined. As against

this, BMC examined their Deputy Superintendent J.R.

Tamhane. After considering evidence adduced by both the

parties the learned Additional Chief Judge, Small

Causes Court Bombay came to the conclusion that the

previous ratable value was Rs.41,595/-. Even after the

time some portion of the suit property was given to the

ONGC as licensee, there were no additions or changes in

the structure and merely because Steel Company started

getting rent/license fee of Rs.49,307/- per month, it

can not be said that BMC is entitled to consider the

said amount while fixing the ratable value of the

property. Learned Additional Chief Judge held that as

the earlier ratable value was fixed at Rs.41,595/- the

same is to be treated as the fair