Holding

Only the land on which the dwelling house is constructed and the land appurtenant thereto, as per the building bye‑laws, is exigible to General Tax; the High Court’s directive prescribing a fixed appurtenant area is set aside.

Summary

The respondent, owner of a 2.5‑acre farmhouse in the agricultural green belt of Delhi, constructed a dwelling house on the land. The Municipal Corporation of Delhi (MCD) levied General Tax under Section 115 of the Delhi Municipal Corporation Act, 1957, treating the entire farm as taxable. The High Court directed that for farmhouses of at least 2.5 acres, half an acre of land appurtenant to the dwelling should be deemed taxable. On appeal, the Supreme Court held that only the land on which the dwelling house is built and the land appurtenant to it, as defined by the building bye‑laws, is subject to General Tax; the High Court’s blanket guideline was beyond its jurisdiction. Consequently, the High Court’s directions were set aside and the appeals were disposed of in accordance with this interpretation.

Issues considered

Whether the entire agricultural land becomes liable to General Tax when a dwelling house is constructed on it.
Whether the High Court can prescribe a uniform rule (half an acre) for the extent of appurtenant land liable to tax in all such cases.
What portion of land is appurtenant to a dwelling house for the purpose of levying tax under Section 115 of the Delhi Municipal Corporation Act.

Legislation cited

Delhi Land Reforms Acts. 81
Delhi Municipal Corporation Act, 1957s. 115(4)
Income Tax Act

Subjects

General TaxDelhi Municipal Corporation Actdowelling houseagricultural landappurtenant landtax exemptionstatutory interpretationbuilding bye‑lawsjudicial review

Judgment

MUNICIPAL CORPORATION OF DELHI A
v.
RISHI RAJ JAIN AND ANR.

SEPTEMBER 14, 2006

[S.B. SINHA AND DAL VEER P~~ANDARI, JJ.] B

Municipal Laws-Delhi Municipal Corporation Act, 1957-Section
I I 5-Dwelling house on agricultural /and-Land not being used for
agricultural purposes-Levy of General Tax u/S. I I 5-Extent of land exigible C
to tax-Held: Only the extent of land, on which the dwelling house has been
constructed, together with the land appurtenant thereto in terms of the
building bye-laws, would be exigible to General Tax,

Interpretation of statutes-Judicial review-Superior courts can
interpret a statute-But cannot issue guidelines contrary to provisions of the D
statute or rules fi·amed thereunder.

Respondent had constructed a dwelling house on his farmhouse. The
farmhouse situated within the agricultural green belt covered an area of 2.5
acres.
E
According to the Appellant-Corporation once a dwelling house is built
on an agricultural land, the entire area becomes exigible for levy of tax in the
event it is found that it is not being used for agricultural purposes. General
Tax was accordingly levied upon the Respondent in terms of Section 115 of
the Delhi Municipal Corporation Act, 1957. Respondent challenged the same,
by filing a writ petition, and the High Court issued certain directions in this F
regard. Hence the present appeal.

Disposing of the appeals, the Court

HELD: 1. Indisputably, building bye-laws framed. by the Appellant-
Corporation operate having regard to the areas and locations as well as the G
nature of the lands/premises. Farm houses, although, are primarily meant to
be used for agricultural or horticultural purposes; construction of a dwelling
house therein is permissible in law. (206-D)

2.1. Sub-Section (4) of Section 115 of the Delhi Municipal Corporation H
201
202 SUPREME COURT REPORTS [2006] SUPP. 6 S.C.R.

A Act, 1957 provides for an exception as regards payment of tax providing that
no tax shall be levied on agricultural lands and buildings. Dwelling house,
however, is not within the purview of the exempted category. Buildings on an
agricultural land may be constructed for different purposes. They may be built
for agricultural purposes. A dwelling house constructl!d by the owner thereof,
B however, has a different connotation. Whereas bui:ldings/houses built for
agricultural purposes are specifically excluded from levy of tax, dwelling
houses are not What would be the extent of the land, which, however, would
be exigible to tax would be the extent ofland upon whic:h it has been constructed
and the land appurtenant thereto. [206-F-H)

C 2.2. It was, thus, not for the High Court to issue any directions in this
behalf, as has been sought to be done by reason of the impugned judgment.
Each case has to be considered on its own facts. The superior courts, although,
can interpret a statute, cannot issue a guideline which would be contrary to
the provisions of the statute or the rules framed thereunder. The directions
issued by the High Court, therefore, are set aside. It is directed that only the
D extent of land, on which the dwelling house has been constructed, together
with the land appurtenant thereto in terms of the building bye-laws, would be
exigible to General Tax under Section 115 of the De'lhi Municipal Corporation
A~t. [209-G, H; 210-A)

Maharaj Singh v. State of Uttar Pradesh & Ors., (1977[ 1 SCC 155;
E Municipal Board, Saharanpur v. Shahdara (Deli1i) Saharanpur light Rail
Co. Ltd., (1999[ 1 SCC 586 and Municipal Corporation of Delhi & Anr. v.
Shri Naresh Kumar & Ors., JT (1997) 3 SC 436: [1997[ 4 SCC 766, referred
to.

F CIVIL APPELLATE JURISDICTION : Civil Appeal No. 4125 of2006.

From the interim Order dated 6.4.2004 of the High Court of Delhi at New
Delhi in C.M. (M.) No. 270/1999.

WITH
G C.A. No. 4 I 43/2006.

Arnita Gupta for the Appellant.

Sudhir Nandrajog for the Respondents.

H The Judgment of the Court was delivered by
'MUNICIPAL CORPORATION OF DELHI v. RISH! RAJ JAIN [S.B. SINHA, J.] 203
S.B. SINHA, J. Leave granted. A
The Respondent is owner of a farm house. He had constructed a
dwelling house therein. The area of the farm house is said to be 2.5 acres .
. The said land is within the agricultural green belt.

General tax is levied by the Appellant-Corporation in terms of Section B
115 of the Delhi Municipal Corporation Act, 1957 ('the Act', for short). Clause
(c) of Sub-Section (4) of Section 115 of the said Act exempts agricultural lands
and buildings from the purview of levy. of General Tax. Dwelling houses,
however, are not saved. In terms of the building rules contained in Item II of
Appendix 'J' of the Delhi Building Bye-Laws, 1983, construction of dwelling C
house on agricultural land is permitted with certain restrictions providing :

"II. "Agricultural Green Belt" and "Rural" Use Zones

In order to preserve these Zones in agricultural use certain restrictions
on the size of the dwelling units should be imposed: They are as
under:- D
(i) The minimum size of a farm shall be as under:-
(a) Orchard & Vegetable Farm - I hect
(ii) Poultry, Stud, Dairy & other live stock farms - 2 hect
E
(iii)The minimum coverage and height of DUs, shall be as under:-
Sr. No. Size of Farm Max coverage iMax ht of DU
of DU

(a) I hect & above 100 sq. mtrs. Single
· but less than
F
(including storeyed
2 hect mezzanine floor) · maximum ht. 6 mtrs .
. .
.
(b) 2 hect & above 150 sq: mtrs. Single
.
(including storeyed
mezzanine floor) maximum ht. 6 mtrs. G
N.B. (I) Set back for dwelling house should be 50 feet from any boundary
line of the property.
(2) Where the property abuts an urban road, the dwelling house
building_should be set back from the center line of that mad by H
204 SUPREME COURT REPORTS (2006] SUPP. 6 S.C.R.

A 200 ft. where the property abuts a village road, the building set
back from the center line of that road should be I00 feet.
(3) No dwelling unit should be built within two furlongs of the right
of way of any National Highway.
(4) In the case of special farms, for example, horse breeding farms
B covering a large area, Government may allow a larger coverage
as may be considered necessary for farm houses to be built on
these farms."

The Appellant-Corporation contends that once a dwelling house is built
C on an agricultural land, the entire area becomes exigible for levy of tax in the
event it is found that it is not beirrg used for agricultural purposes.

General Tax was levied accordingly upon the Respondent. He preferred
an appeal before the Appellate Authority. The Appellate Authority opined :

".... .In the instant case although the covered area of the dwelling unit
D admittedly does not exceed 196.44 sq. yards yet the assessing authority
has taken market price of land measuring 2.5 acres into consideration
solely on the grounds that no farm house can be approved if the area
of the farm house is less than 2.5 acres. In the eyes of this court, the
Assessment Authority is not justified in taking into consideration
E market price of land measuring 2.5 acres on the aforesaid ground
especially when there is nothing such in the impugned Assessment
Order itself and that for want of evidence, the Assessment Authority
presumed that entire land of 2.5 acres is necessary an~ is being used
for enjoyment of the dwelling house. When the Respondent is having
sufficient field staff for inspection of the appeal farm house, I see no
F reason why the Assessment Authority should go by presumption
against appellant showing an arbitrary attittde of the Assessment
Authority."

A writ petition was filed thereagainst. By reason of the impugned
G judgment, the High Court held :
"While deciding the size of the appurtenant land necessary for a
proper and convenient enjoyment of the dwelling unit in a farm house
the Court cannot be oblivious of the fact that the dwelling unit on a
farm house is not at par with a dwelling ur:it on a residential plot.
Whenever, a person decides to live in a farm house his object and
H
MUNICIPAL CORPORATIONOF DELHI r. RISH! RN JAIN [S.B. SINHA,].) 205

purpose is to live in wide open area with a vast lawn than in. the A
crowded residential area as he wants to enjoy the fruits of unpolluted
green expansive area and therefore appurtenant land necessary for a
proper and convenient enjoyment of the dwelling unit has to be
higher than permissible in plotted residential zone.

After having (iscussed the matt.er with the counsel for the MCD B
as well as the counsel for Ihe respondent and also on the premise of
reasonableness and rationality this Court feels as there is consensus
that size of the appurtenant land necessary for appropriate and
convenient enjoyment of the dwelling unit in a farm house of the
minimum size of 2.5 acre and above should be half an ?.ere for C
appropriate and convenient enjoyment of the dwelling unit. Any area
either lower or higher would not be in consonance with the concept
of living in a farm house. In the view of this court, this nonn should
be adopted by every Assessing Authority for the purpose of levying
general tax as contemplated under Section 115 of the DMC Act.
D
For the remaining land the concerned authorities have the powers
to take action under various laws viz. Delhi Land Refonns Act and
Income Tax Act if it is found being used for non-agrkultural/commercial
purposes. For instance section 81 of Delhi Land Reforms Act empowers
the revenue authority to direct.the owner to put the land back inio
agricultural use of face consequences if agricultural land _is found E
being used for non-agricultural or commercial purposes.' Similarly, if
. any commercial or non-agricultural activity on an agricultural land is
carried out such. a land loses its character of being agricultural land
as the very object of preservin.g and_ maintaining the green zone in the
farm house as contemplated in Appendix 'J' stands frustrated and any F
income from such a user ceases to be exempted ·from tax. Similarly
concerned authority, for instance, MCD can levy tax or penalty or take
any action permissible under law for using. the agricultural land for.
non-agricultural or commercial purposes ..

Upshot of the aforesaid discussion is that size of the land. G
appurtenant to a dwelling unit of maximum permissible limit constructed
on a farm house having the minimum size of2.5 acre and above for
proper and convenient enjoyment of the dwelling house shall be 'half
an acre' including the land over which the dwelling unit is made fot
the purpose of levying property/general tax and the remaining land
shall be preserved as an agricultural land . In case the non-agricultural H
206 SUPREME COURT REPORTS [2006) SUPP. 6 S.C.R.

A or commercial activities are found to be carried on the said remaining
land which has to be necessary preserved as a green zone it shall be
subjected to appropriate legal actions as these activities shall take

-
away the agricultural character of the land as contemplated under
Section 115 of the MCD Act. This norm shall be applicable with
retrospective effect so as to avoid discrimination."
B
The Appellant is, thus, before us.

Ms. Amita Gupta, learned counsel appearing on behalf of the Appellant
submitted that if the land in question is not used for agricultural purposes,
the entire land becomes exigible to levy of General Tax.
c
Mr. Sudhir Nandrajog, learned counsel appearing on behalf of the
Respondents, on tbe other hand, supported the impugned judgment.

Indisputably, building bye-laws framed by the Appellant-Corporation
operate having n:gard to the areas and locations as well a; the nature of the
D lands/prem i~cs. Farm houses, although, are primarily meant to be used for
agricultural or horti..:ultural purposes; construction of a dwelling house therein
is permissible in law.

We have noticed hcreinbefore that in term~ of the building bye-laws,
E the permissible limit for construction of a dwelling house would be about l 00
sq. nnrs. out of total 11,000 sq. mtrs. of land, i.e., about ~.5% of the total land.

Tax, indisputably, is imposable keeping in vie'N the nature of the land.
If the nature of the land is agricultural, the Corporation cannot levy tax only
because no agricultural operations arc carried out therein.
F
Sub-Section (4) of Section 115 of the Act provides for an exception as
regards payment of tax providing that no tax shall be levied on agricultural
lands and buildings. Dwelling house, however, is not within the purview of
the exempted category. Buildings on an agricultura. land may be constructed
for different purposes. They may be built for agriculmral purposes. A dwelling
G house constructed by the owner thereof, however, has a different connotation.
Whereas buildingsihouses built for agricultural purposes are specifically
excluded from levy of tax, dwelling houses are not. What would be the extent
of the land, which, however, would be exigible to tax would, in our opinion,
be the extent of land upon which it has been constructed and the land
appurtenant thereto. What would be the meaning of the land appurtenant
H
MUNICIPALCORPORATIONOF DELHI 1•. RISH! RAJ JAIN [S.B. SJNHA,J.] 207

thereto came up for consideration before· this Court in Maharaj Singh v. State A
of Uitar Pradesh & Ors., [ 1977] I SCC 155, wherein it was opined :

"The heated debate at the bar on this and allied aspects need not
detain us further also because of our concurrence with the second
contention of the Solicitor General that the large open spaces cannot
be regarded as appurtenant to the terraces, stands and structures. B
What is integral is not necessarily appurtenant. A position of
subordination, something incidental or ancillary or dependent is implied
in appurtenance. Can we say th~t the large spaces are subsidiary or ..
. . ancillary to or inevitably implied in the enjoyment of the buildings qua
buildings? That much of space required for the use of the. structures C
as such has been excluded by the High Court itself. Beyond that may
or may not be necessary for the hat or me/a but not for the enjoyment
of the chabutras as such. A hundred acres may spread out in front
of a clubhouse for various games like golf. But all these abundant
acres are unnecessary for nor incidental to the enjoyment of the
house in any reasonable manner. It is confusion to miss the distinction, D
fine but real.

"Appurtenance", in relation to a dwelling, or to a school, college
... includes all land occupied therewith and used for the purposes
thereof (Words and Phrases Legally Defined - Butterworths, 2nd
~} E
· "The word 'appurtenances' has a distinct and definite meaning ...
Prima facie it imports nothing more than what is strictly appertaining
to the subject matter of the devise or grant, and which would, in ·
truth, pass without being specially mentioned. Ordinarily, what is
necessary for the enjoyment and has been used for the purpose of F .
the building, such as easements, alone will be appurtenant. Therefore,
what is necessary for the enjoyment of the building is alone covered.
by the expression 'appurtenance'. If some other purpose was being
fulfilled by the building and the lands, it is not possible to contend
that these lands are covered by the expression 'appurtenances'. Indeed G
'it is settled by the earliest authority, repeated without contradiction
to the latest, that land cannot be appurtenant to land. The word
'appurtenances' includes all the incorporal hereditaments attached to.
. the land granted or demised, such as rights of way, of common ... but
it does not include lands in addition to that .granted"' (Words and
Phrases, supra). .. H
208 SUPREME COURT REPORTS [20061 SUPP. 6 S.C.R.

A In short, the touchstone of 'appurtenance' is dependence of the
building on what appertains to it for its use as a building. Obviously,
the hat. bazar or mela is not an appurtenance to the building. The law
thus leads to the clear conclusion that even if 1.he buildings were used
and enjoyed in the past with the whole stretch of vacant space for
a hat or mela, the land is not appurtenant to the principal subject ....
B granted by Section 9 viz. buildings."

Yet again, in Municipal Board, Saharanpu,· v. Sh11hd11ra (Deihl)
Saharanpur light Rail Co. ltd. (1999] I SCC 586 the question which arose
for consideration was : 'As to whether for imposition of house tax, all the
C buildings of the Respondent situated in the "common compound" and forming
part of one complex could be treated as one unit for imposing house tax?'
Section 128(1)(i) of U.P. Municipalities Act, 1916 rc:ads as under:

"128. Taxes which may be imposed. - (I) Subject to any general rules
or special orders of the State Government in this behalf, the taxes
D which a municipality may impose in the whole or any part of a
. municipality are 4 (i) a tax on the annual value of buildings or lands
or of both;"

Interpreting the said provision, it was held :

" ...... For imposing house tax on buildings under Section 140(l)(a), it
E
has to be shown that the buildings with their common appurtenant
land or the land in common appurtenance to several buildings situated
nearby are available for imposing such a te.x thereon. It is only such
appurtenant land which can form part of the buildings for attracting
house tax assessment proceedings. But if the "common compound"
F in which such buildings with appurtenant lands are situated also
includes land which cannot be said to be a common appurtenance to
several buildings situated therein or separately appurtenant to any
given building, such land would be outside the sweep of the term
"building". Such land, however, on its own could be legitimately made
the subject-matter of separate levy of ho·use tax as an independent
G unit being open land, as seen from Section 140( I)(b) itself as the
Board can impose the tax on annual value of lands which may not be
covered by the sweep of the definition of the term "building". Once
that conclusion is reached, it becomes obvious that all the buildings
situated along with their appurtenant lands in one "common
H
MUNICIPAL CORPORATION OF DELHI». RISH! RAJ JAIN [S.B. SINHA, J.] 209

compound" belonging to the same owner cannot be treated as one A
unit for the purpose of imposing house tax under Section 128(1 )(i).
The reasoning of the High Court in this connection cannot be found
fault with on the scheme of the Act. It is pertinent to note that
"common compound" which is relevant for the water tax as per Section ·
129 of the Act to which we have made a detailed reference while
deciding the companion Appeal No. 1218 of 1976 is conspicuously B
absent in connection with imposition of house tax on the annual value
of buildings or lands or both as found in Section 128(l)(i)."

Our attention has been drawn to a decision of this Court in Municipal
Corporation of Delhi & Anr. v. Shri Naresh Kumar & Ors., [JT (1997) 3 SC C
436: [1997] 4 SCC 766, wherein this Court opined:

"The next question is - if a "dwelling house" is exigible to levy
of general. tax, how much of the adjacent land should be treated as
an integral part ofthe dwelling house. In other words, the question
is whether the entire land surrounding or abutting a farm house is D
subject to general tax along with the dwelling house. The answer to
this question .is: a dwelling house includes within its ambit such
appurtenant land as is necessary· for a proper and convenient
enjoyment of the dwelling house. The extent of such appurtenant land
is naturally a question of fact to be decided in each case. We have
·only stated the test. lt is for the appropriate a~sessing ~uthority to • E .
determine the extent of land which can be called.appurtenant land to
a given dwelling house."

The findings we .have arrived at do not militate against the said dicta .
. In fact, the judgments of this Court support the same.
F
It was, thus, not for the High Court to issue any directions in this
behalf, as has. been· sought to be done by reason of the impugned judgrnent. ·
Each case has to be considered on its own facts. lhe superior courts,
although, can interpret a statute, cannot issue a guideline which would be
contrary to the provisions of the statute or the rules framed thereunder. The G
directions issued by the High Court, therefore, are set aside. We direct that
only the extent of land, on which the dwelling house has been constructed,
together with the land appurtenant thereto in terms of the building bye-laws,
would be exigible to General Tax under Section .115 of the Delhi Municipal

H
210 SUPREME COURT REPORTS (2006J SUPP. 6 S.C.R.

A Corporation Act.
The appeals are disposed of in terms of observations and directions
incorporated in the preceding paragraphs. Parties shall, however, pay and
bear their own costs.

B B.B.B. Appeals disposed of.