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Supreme Court of India

INDIAN CITY PROPERTIES LTD. AND ANR.versusTHE MUNICIPAL COMMISSIONER OF GREATER BOMBAY AND ANR.

Citation
2005 INSC 341
Decided
5 August 2005
Disposal
Dismissed

Holding

The six ancillary structures are independent permanent buildings under Section 3(s) and cannot be acquired under Section 299.

Summary

Indian City Properties Ltd. owned a plot in Mumbai containing a bungalow and several ancillary structures. The Municipal Commissioner issued a notice under Section 299 of the Mumbai Municipal Corporation Act, 1888 to acquire land within the regular line of a public street, claiming the six ancillary structures were "other structures external to a building" and could be taken over. The Bombay High Court dismissed the writ, treating the structures as external and liable to acquisition. On appeal, the Supreme Court examined the definition of "building" in Section 3(s) and the meaning of "other structure" in Section 299, applying a test of independence and permanence. It held that all six items are independent permanent structures that fall within the definition of "building" and therefore are outside the scope of Section 299. Consequently, the notice and the High Court’s order were set aside.

Issues considered

  • Whether the six ancillary structures are "buildings" under Section 3(s) of the Mumbai Municipal Corporation Act, 1888 and thus exempt from acquisition under Section 299.
  • Whether the term "other structure external to a building" in Section 299 includes independent permanent structures.
  • Whether Floor Space Index considerations affect the interpretation of Section 299.

Legislation cited

Subjects

building definitionSection 299municipal acquisitionregular line of streetfloor space indexpermanent structuresummary powercompensation

Judgment

A                INDIAN CITY PROPERTIES LTD. AND ANR.
                                  v.

               THE MUNICIPAL COMMISSIONER OF GREATER
                          BOMBAY AND ANR.

B                                 AUGUST 5, 2005

            [MRS. RUMA PAL AND DR. AR. LAKSHMANAN, JJ.]

          Mumbai Municipal Corporation Act, 1888-Sections 3(s) and (sb), 296
    and 299-Notice issued by Municipal Commissioner to owner ofthe premises
c   for acquiring certain land not occupied by the building falling within the
    regular line of a street under section 299 of the Act-Writ Petition before
    High Court by the owner challe1Jging the notice-High Court dismissed the
     Writ Petition holding that the structures proposed to be acquired under the
    notice are structures external to the building and hence liable for acquisition-
D    Correctness of-Held, on facts, the structure proposed to be acquired are
     independent permanent structures forming part of the building and are not
    structures external to the building and hence not liable to be acquired under
    section 299 of the Act.

         Appellant No. l owned a plot in Mumbai which consisted of a
E   bungalow, an out-house, cooling towers, a pump room, servants' quarters
    and a watchman's room. The premises was let out to appellant no. 2.
    Respondent-Municipal Commissioner issued a notice to the appellants
    under section 299 of the Mumbai Municipal Corporation Act, 1888 for
    acquisition of certain land not occupied by a building forming part of the
F   premises within the regular line of public street. The notice also stated
    that the Municipal Commissioner would proceed to clear the building if
    necessary. The appellants filed a Writ Petition before High Court
    challenging the notice issued by the 'Municipal Commissioner. The High
    Court appointed a Commissioner to inspect the property and verify
    whether the proposed acquisition affected any of the structures of the
G   appellants. The Commissioner, after inspection, submitted a Report to
    the High Court, stating that the proposed acquisition affected six
    permanent structures in the premises of the appellants. The High Court
    dismissed the Writ Petition holding the six structures to be 'other
    structures' external to the main building within the meaning of Section
H   299 of the Act and are thus liable for acquisition.
                                        372
     INDiAN CITY PROPERTIES LID. r. MUNICIPAL COMMNR. OF GREATER BOMBAY   373

     Jn appeal to this Court, the appellants contended that the structures      A
mentioned by the Commissioner in his Report are 'building' under section
3(s) of the Act of which possession could not be taken under section 299
of the Act;

     The respondents contended that the definition of the word 'building'
in section 3(s) of the Act was subject to the context to the contrary and
                                                                                B
that the structures mentioned in the Commissioner's Report were
structures in respect of which proceedings could be taken under section
299 of the Act; that the expression 'other structure external to a building'
in section 299 of the Act means such other structures which are not part
of the main building; that the word 'building' in section 299 must be           C
understood in the context of the Floor Space Index (FSI) as provided
under Development Control Regulations for Greater Bombay, 1991; that
no FSI is exhausted by the structures proposed to be acquired; and that
the land beneath such structures were considered to be vacant. The
Corporation conceded that it was willing either to grant F.S.I. in terms
                                                                                D
of Development Control Regulations for Greater Bombay, 1991 or pay
compensation to the appellants in respect of loss or damage which may
be suffered by reason of the widening of the street.

     Allowing the appeal, the Court
                                                                                E
      HELD : I.I. The definition of 'building' in Section 3(s) of Mumbai
Municipal Corporation Act, 1988 is in terms an inclusive one and is
therefore to be widely construed. It seems to indicate that a structure
would be building if it has been erected by the use of whatever material,
which may or may not be used by human beings since it specifies stables
and tanks as buildings. When the Act separately defines a 'temporary            F
building' in section 3(sb) as opposed to a 'building', it indicates that, in
the absence of the word 'temporary' in a particular section, what is meant
is a permanent building. 1379-A-B; D-E]

     Municipal Corporation of Greater Bombay v. Indian Oil Corporation          G
Limited, (19911 (Suppl.) 2 SCC 18, referred to.

      1.2 The word 'structure' in section 299 of the Act is used as a
generic term so that while all buildings may be structures, all structures
are not buildings. That structure which is not a building and is a platform,
veranda, step, or some other such structure external to a building may          H
    374                  SUPREME COURT REPORTS [2005) SUPP. 2 S.C.R.

A   be taken over by the Commissioner under Section 299(1) of the Act if it
    is within the regular line of the street. The words 'some other such' in
    section 299 of the Act must be construed as structures similar or like
    platform, veranda and step. The words must be read ejusdem generis with
    the preceding words since the word 'such' means 'of the type previously
B   mentioned'. The word 'other' has also been held to indicate that it must
    be construed ejusdem gen eris. The underlying characteristic of platforms,
    verandas and steps is that they are not independent structures and are
    external to a building, that is they are attached to the outside and form
    an inessential part of a building. In order to be a 'building' for the
    purpose of Section 299, the structure would have to be an independent,
c   permanent structure. Thus there is no repugnancy if one were to read the
    definition of 'building' and Section 299 and the word 'building' has been
    used in Section 299 in the sense defined in Section 3(s). Applying the, test
    of independence and permanence, all the six items listed by the
    Commissioner in his report fall within the definition of 'building' in
D   Section 3(s) of the Act, and therefore, fall outside the purview of Secion
    299. [381-B-D; FJ

        Siddeshwari Cotton Mills (P) Ltd. v. Union.of India, [1989] 2 SCC 458
    and Assistant Collector of Central Excise v. Ramdeo Tobacco Co., [1991 j 2
    sec 119, referred to.
E
          Concise Oxford English Dictionary (10th Edition), referred to.

          1.3. Floor Space Index (FSI) merely relates to the permission to build
     having regard to various features such as height of the building, tenement
p   density, object with which the building is to be erected etc. The computation
    of the FSI is in a context which is wholly different from the context in
    which .the word has been used in Section 299 of the Act. In any event, it
    is in dispute which structures are taken into account for the purposes of
    calculating FSI. Apart from the language of Section 299 of the Act, and
    the immediate context in which the Section appears, the power to take
G   over possession conferred on the Commissioner under Section 299 of the
    Act in respect of certain structures is a summary power. Having regard
    to the nature of the power, it is unlikely that the legisl~ture intended that
    the Commissioner would exercise such summary powers in respect of
     independent structures which have been defined as 'building' under the
H    Act. [382-B-CJ
    INDIAN CITY PROPERTIES LTD v_ MUNlCIPAL COMMNR OF GREATER BO:\IBAY (RUMA PAL, J.]   375

     CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4801 of2005.                              A
     From the Judgment and Order dated 16.7.2001 of the Bombay High
Court in W.P. No. 2152 of 2000.

    Dr. A.M. Sanghi, Rajeev Sharma, S.N. Gupta, Ms. V. Kripalani, N.
Gupta and V.M. Chauhan for the Appellants.
                                                                                              B

      Pallav Shishodia, Ms. Sujeeta Srivastava and Mrs. Suchitra Atul Ch;tale
for the Respondents.

     The Judgment of the Court was delivered by                                               c
     RUMA PAL, J. : Leave granted.

       The appellant is the owner of Plot No. 2M/748 situated at M.L.
Dhanukar Marg, Mumbai. On the plot, there is a bungalow, an out-house,
cooling to\vers, a pump room, servants quarters and a watchman's room. The                    D
first appellant has let out the bungalow and the outhouse to the appellant No.2
for use as a guest house. On 16th November, 1999 a notice was issued to
the appellants under Section 299 of the Mumbai Municipal Corporation Act,
 1888, (hereinafter referred to as "the Act") to the effect that the Corporation .
would take possession of "certain land not occupied by a building" forming
part of the pren1ises within the regular line of public street as prescribed by
                                                                                              E
the Commissioner, under Section 299 of the Act.. together with its enclosing
wall, hedge, or fence, if any, and any platform, verandah, step or other
structure, which may be found upon the said land''. Notice was also given
that if necessary the authority issuing the notice namely, the Deputy
Municipal Commissioner (Zone-I), Greater Bombay, would "proceed to clear                      F
the building".

     Section 299 in so far as it is relevant is extracted verbatim below:-

         "299. Acquisition of open land or of land occupied by platforms,
         etc, within the regular line of a street.                                            G

         (I)   If any land not vesting in the corporation, whether open or
               enclosed, lies within the regular line of a public street, and is
               not occupied by a building, or if a platform, verandah, step or
               some other structure external to a building abutting on a public               H
           376                     SUPREME COURT REPORTS [2005) SUPP. 2 S.C.R.

A                           street, or a portion of a platform, verandah, step or other such
                            structure, is within the regular line of such street, the
                            Commissioner may, after giving to the owner of the land .or
                            building not less than seven clear days' written notice of his
                            intention so to do, take possession on behalf of the corporation
                            of the said land with its enclosing wall, hedge or fence, if any,
B                           or of the said platform, verandah, step or other such structure
                            as aforesaid, or of the portion of the said platform, verandah,
                            step or other such structure aforesaid which is within the
                            regular line of the street, and, if necessary, clear the same and
                            the land so acquired shall thenceforward be deemed a part of
c                           the public street".

                 The question is whether the land in the appellant's premises which is
            sought to be affected by the notice is "not occupied by any building" or
            occupied by "some other structure external to a building"? In terms of the
            Section, ifthe land is occupied by a building it is outside the scope of Section
D           299; but ifthere are only structures external to a building, action may be taken
            under Section 299 by the respondent to take possession of the land and
            demolish the structure. The notice was challenged by the appellants under
            Article 226 of the Constitution contending that the former was true in its case.

                  By an order dated 2nd May, 2001, the High Court directed the
E           Prothonotary and Senior Master of the High Court to appoint an Officer of
'\          the Court to visit the property and verify whether the proposed acquisition
            affected any of the structures of the appellant. Pursuant to the order, the
            Commissioner was appointed. The Commissioner visited the premises upon
            notice to the parties and submitted a report. According to the report, the
F           proposed acquisition affected the following permanent existing structures in
            the premises to the extent indicated:
           jl
           .1l   l Servants Room in two parts                 a) 13'-6"x 9'-6"     128.25
           J(      (Gr. Floor structure)                      b) 12'-6"x20'-6      256.25

G           2.     Security Cabin(Gr.Floor Structure)         6'-6x6'-6'            42.25

     ~   .' 3.     Pump Room with Compressor                  9'-0"x6'-0"           54.00
                   (Gr. Floor Structure)

            4.     Under ground RCC tank with                 l 4'-6"x 11 '-6"     166.75
H                  Cylinder shape pre-cast tank on Top
         JNDIAN CITY PROPERTIES LTD_ "·MUNICIPAL COMMNR. OF GREATER BOMBAY (RUMA PAL, J.J   377

    5.   A.C. Plant                                        l2'-6x 10'-6"            131.25        A

    6.   Part portion of Main Structure in                 a) 2xl3'-6"xl0 1-0" 270.00
         two parts viz. Ground and First                   b) 2x9'-0"x2'-6"         22.50
         Floors, staircase, part bed room
         Part bed room and balcony.                         2
                                                                                                  B
          The writ petition was ultimately dismissed on 15th July 200 l by the
    High Court which held Section 299 of the Act permitted such action against
    the six structures which were held to be "other structures" external to the main
    building within the meaning of the phrase in Section 299. The High Court
    however noted the respondents' submission that "the petitioners will be                       C
    entitled either for compensation or permissible FSI in accordance with the
    relevant provisions and rules".

          The appellants contend that the High Court misconstrued Section 299
    of the Act and erred in treating the six items mentioned in the Commissioner's.               D
    report as structures external to a building. According to the appellants each
    structure was a 'building' within the definition of the word in Section 3(s)
    of the Act of which possession could not' be taken under Section 299 of the
     Act. Our attention was also drawn to several photographs in support of the
    submission.
                                                                                                  E
           Learned counsel appearing on behalf of the respondents has submitted
    that the definition of the word "building" in Section 3(s) was subject to the
    context to the contrary and that in the context of the language of Section 299,
    it was clear that at least items l-5 in the Commissioner's report were
    structures in respect of which proceedings could be taken under Section 299.                  F
    It is contended that the expression "other structure external to a building" in
    Section 299 means such other structures as are not part of the main building.
    It is said that an important test to determine what structure can be considered
    as part of a building is whether the FSI is exhausted by "such other structure".
    In reckoning the FSI of constructed structures, water tanks, pump rooms,


-   security canopy or make-shift servant quarters with temporary construction
    are not counted. It is the respondent's case that in the present case no FSI
    is exhausted by the structures proposed to be taken away. Reference ha.s been
    made to Regulations 3(42), 30 and 35 of the Development Control Regulations
                                                                                                  G




-   for Greater Bombay, 1991 (referred to as "the Regulations"). It is said that
    the land beneath the disputed structures was considered to be vacant.                         H
    378                   SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R.

A   According to the respondent the legislative intent is to provide for acquisition
    of such external structures of buildings as are required in public interest to
    widen the road. It was also submitted that the need for taking over the portion
    of the premises in question was admittedly to widen the existing road on
    which the premises abutted and to bring it in within the regular line of the
    public street which had been determined by the Commissioner under Section
B
    297. According to the respondents, the adjacent properties falling on the
    prescribed regular line had given or not contested the area needed for road
    expansion and that the appellants were really interested in the grant of a
    greater Floor Space Index (FSI) under the Regulations in lieu of the portion
    of the premises sought to be taken over by the Corporation. However, it was
C   said that the Corporation was not interested in item six of the Commissioner's
    report and it was conceded that the said item fell outside the purview of the
    Commissioner's power under Section 299. As far as the remaining part of
    the premises was concerned, the Corporation was willing either to grant FSI
    in terms of the Regulations or pay compensation to the appellants in respect
D   of the loss or damage which may be suffered by reason of the widening of
    the street.

         The word 'building' occurs in different statutes and has been construed
    according to the context in which the word has been used. It is not necessary
    to consider those judgments given the fact that the word "building" has been
E   defined in sub-section(s) of Section 3 of the Act as follows:-

             (s) "building" includes a house, outhouse, stable, shed, hut, tank
             (except tank for storage of drinking water in a building or part of
             a building) and every other such structure, whether of masonry,
             bricks, wood, mud, metal or any other material whatsoever."
F
         The body of the Section however qualifies the definition with the words
    "unless there be something repugnant in the subject or context". The phrase
    in Section 3 means precisely what it says-namely, that the definition will
    apply unless excluded expressly or by necessary implication. The onus is on
G   the person alleging such exclusion. It is not the respondent's case that the
    items found to be permanent existing structures by the Commission of the
    High Court, would not fall within the general definition of building. The
    submission is that the word should be read in a more restrictive manner in
    the context of Section 299. The question then is - has, the onus been
H   discharged by the respondent?
        INDIAN CITY PROPERTIES LTD v. MUNICIPAL COMMJ\'R. OF GREATER BOM,BAY [RUMA PAL, J.]   3 79

           The definition itself is in terms an inclusive one and is therefore to be                 A
    widely construed. It seems to indicate that a structure would be a building
    if it has been erected by the use of whatever material, which may or may
    not be used by human beings since it specifies stables and tanks as buildings.
    The respondent's submission is that the servant quarters, security cabin, the
    pump room, underground RCC Tank with Cylinder shape pre-cast tank and                            B
    the AC Plant are temporary building and are ancillary to the main residential
    building and not buildings for the purposes of exclusion from Section 299.

         Section 299 itself does not draw a distinction between a main building
    and an ancillary building, or between a permanent building and a temporary
    building. But the phrase 'temporary buildings' has been defined in Section                       C
    3(sb) of the Act which says that:-

'            "temporary building" means any building which is constructed
             principally of mud, leaves, grass, cloth, thatch, wood, corrugated
             iron or asbestos cement sheets or such other material and includes
             a building of whatever size constructed of whatever material which                      D
             the Commissioner has allowed to be built as a temporary measure".

         In other words a temporary building is that which is not permitted to
    remain pennanently. When the Act separately defines a temporary building
    as opposed to a "building" it indicates that, in the absence of the word                         E
    'temporary' in a particular section what is meant is a permanent building.

           This Court in Municipal Corporation of Greater Bombay v. Indian Oil
    Corporation Limited, [1991] Suppl. 2 SCC 18, construed the words "every
    other such structure" in Section 3(s) in the context of Section 143 (a) of the
    Act (which authorizes a levy of general tax on building and land) and held                       F
    that - a petrol storage tank although not fixed to the earth was such a structure,
    holding that permanency is the test.

          The context of Section 299 is Chapter 11 of the Act which deals with
    the regulation of streets. The chapter contains inter alia (a) provisions relating
    to the construction, maintenance and improvement of public streets and (b)
                                                                                                     G
    preservation of the "regular line" in public streets. Section 296 of the Act
    falls within the first set of provisions and provides:-

             "(!)The Commissioner may, subject to the provisions of Sections
             90, 91 and 92-                                                                          H
    380                   SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R.

A            (a)   acquire any land required for the purpose of opening, widening,
                   extending or otherwise improving any public street or of
                   making any new public street, and the buildings, if any,
                   standing upon such land;

             (b)   acquire in addition to the said land and the buildings, if any,
B
                   standing thereupon, all such land with the buildings, if any,
                   standing thereupon, as it shall seem expedient for the corporation
                   to acquire outside of the regular line, or of the intended regular
                   line, of such street;

c            (c)   lease, sell or otherwise dispose of any land or building
                   purchased under clause (b ).
                                                                                        ,
             (2) Any conveyance of land or of a building under clause (c) may
             comprise such conditions as the Commissioner thinks fit, as to the
D            removal of the existing building, the description of new building to
             be erected, the period within which such new building sh~ll be
             completed and other such matters."

         The power of acquisition under Section 296 is to be exercised by the
    Commissioner under the provisions of the Land Acquisition Act, 1894 [See:
E   Sections 87,91 (i)]

          Sections 297 to 311 are grouped together under the sub-title "Preservation
    of Regular Line in Public Streets". Section 297 prescribes the method by
    which the Commissioner may prescribe a line on each side of any public
F   street which is called the "regular line" of the street. Section 298 allows the
    Commissioner to dispose of proposals relating to re-building or removal or
    re-construction or additions in respect of any part of a building abutting on
    a public street which is within the regular line of such street. In passing an
    order on the proposals under Section 345 or 346, the Commissioner may
    require such building to be set back to the regular line of the street. Section
G   301 mandates payment of compensation to be paid by the Commissioner to
    the owner of any building or land acquired for a public street under Sections
    298 or 299 for any loss which such owner may sustain in consequence of
    his building or land being so acquired and for any expenses incurred by such
    owner in consequence of an order made by the Commissioner under either
H   of the Sections.
      INDIAN CITY PROPERTIES LTD. v. MUNICIPAL cor.1MNR. OF GREATER BOMBAY (RUMA PAL, J.]   381

      It needs to be noted that in all these sections the word used is 'building'                 A
in contradistinction with Section 299 which speaks of 'structures' and
'buildings'.

      The word 'structure' is used as a generic term so that while all buildings
may be structures, all structures are not buildings. That structure which is not
a building and is a platform, verandah, step, or some other such structure
                                                                                                  B
external to a building may be taken over by the Commissioner under Section
299(1) if it is within the regular line of the street. The words "sotne other
such" must be construed as structures similar or like platform, verandah and
step. The words must be read ejusdern generis with the preceding words since
the word 'such' means "of the type previously mentioned"' . The word                              c
"other" has also been held to indicate that it must be construed ejusdern
generis. 2 The underlying characteristic of platforms, verandahs and steps is
that they are not independent structures and are external to a building, that
is they are attached to the outside and form an inessential part of a building,
In our opinion, therefore in order to be a building for the purpose of Section
299 the structure would have to be an independent, permanent structure. Thus
                                                                                                  D
there is no repugnancy if one were to read the definition of building and
Section 299 and in our opinion the word 'building' has been used in Section
299 in the sense defined in Section 3(s).

      Of the six items listed by the Commissioner in his report, learned                          E
counsel appearing on behalf of the respondents has, as we have noted earlier,
already conceded that the part of the main structure described against serial
No. 6 would be excluded from the purview of the action proposed in the
impugned notice under Section 299. Even without the concession in our view,
applying the test of independence and permanence each of the items fall
within the definition of 'building' in Section 3(s) of the Act, and therefore,                    F
fall outside the purview of Section 299.

      The next argument put forth by the respondent is that the word
'building' in Section 299 must be understood in the context of floor space
index (FSJ) as provided under the Development Control Regulation of
                                                                                                  G
Greater Bombay 1991. The argument is unacceptable.



I.   See Concise Oxford English Dictionary (10th Edn.)
2.   Siddeshwari Cotton Mills (P) Ltd. v. Union of India, [1989] 2 SCC 458 Assistant Collector
     of Central Excise v. Ramdeo Tobacco Co., [1991 2 SCC 119.
                                                                                                  H
    382                  SUPREME COURT REPORTS (2005] SUPP. 2 S.C.R.

A         FSI merely relates to the permission to build having regard to various
    features such as height of the building, tenement density, object with which
    the building is to be erected etc. The computation of the FSI is in a context
    which is wholly different from the context in which the word has been used
    in Section 299~ In any event it is in dispute which structures are taken into
    account for the purposes of calculating FSI.
B
          Apart from the language of Section 299, and the immediate context in
    which the Section appears the power to take over possession conferred on
    the Commissioner under Section 299 in respect of certain structures is a
    summary power. Having regard to the nature of the power, it is unlikely that
c   the legislature intended that the Commissioner would exercise such summary
    powers in respect of independent structures which have been defined as
    'building' under the Act. Needless to say it is always open to the municipal
    authority subject to the provisions of the Act, to acquire any land or building
    under Section 296 of the Act.
D         In the circumstances of the case, we allow the appeal by setting aside
    the impugned judgment as well as the impugned notice dated 16th November,
    1999. There will be no order as to costs.

    S.K.S.                                                     Appeal dismissed.


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