1947 (1) TMI 17 - HC - Indian Laws

Summary

Issues Involved:
1. Mode of assessment of premises No. 4 Dum Dum Road.
2. Determination of whether the premises are ordinarily let so as to attract the operation of Section 127(a) of the Calcutta Municipal Act.
3. Examination of the relationship between the occupiers and the premises to determine if they are tenants or servants.

Comprehensive, Issue-wise Detailed Analysis:

1. Mode of Assessment of Premises No. 4 Dum Dum Road:

The primary issue in this appeal is the mode of assessment of premises No. 4 Dum Dum Road, which is owned by the Government of India and was assessed to a consolidated rate by the Corporation of Calcutta under Section 127(b) of the Calcutta Municipal Act. The Government of India contends that the assessment should have been made under Clause (a) of Section 127 of the Act. The Small Cause Court Judge of Sealdah dismissed the initial appeal, holding that the assessment was rightly made. The appellant then brought the case to the High Court.

2. Determination of Whether the Premises are Ordinarily Let:

The premises in question comprise a total area of 111 bighas of land, including 42 residential houses, an institute, a playground, tennis courts, recreation fields, bowling green, spare grounds, roads, and tanks. The Government acquired the land to erect quarters for officers and employees of the Cossipore Gun and Shell Factory. The residential buildings are classified into different categories, with varying rental values. Some buildings are let out to outsiders on specific terms and conditions, while others are occupied by officers and employees, some of whom pay rent subject to a maximum of 10% of their salary, while subordinate employees occupy the quarters rent-free.

The High Court examined whether the premises are ordinarily let to attract the operation of Section 127(a) of the Calcutta Municipal Act. The key question was whether the employees of the Gun and Shell Factory occupy the buildings as tenants or as servants on behalf of their masters. If they are considered tenants, Section 127(a) would apply.

3. Examination of the Relationship Between the Occupiers and the Premises:

The court referred to several English cases to determine whether a person occupies a house as a tenant or as a servant. The general principle is that if a servant is required to live in a house owned by the master for the better performance of their duties, the occupation is that of a servant. However, if residence is optional or merely a matter of convenience, the occupation is that of a tenant.

In this case, the evidence showed that the Government did not intend for all employees to be accommodated in these quarters, nor were the quarters meant exclusively for employees. Outsiders were allowed to reside in the buildings, and their occupation was that of tenants. Employees were not compelled to live in these buildings and could reside elsewhere. The court found that residence in these quarters was not required under the contract of service nor necessary for the efficient performance of duties. The evidence suggested that the convenience of having employees reside near the factory was not a significant factor.

The court concluded that the employees' occupation of the quarters was not that of servants. The arrangement relating to residence and payment of house allowance could be regarded as an independent arrangement separate from the terms of service. The employees were considered tenants, and the premises were let out to them within the meaning of Section 127(a) of the Calcutta Municipal Act.

Conclusion:

The High Court allowed the appeal, set aside the judgment of the Small Cause Court Judge, and held that the proper mode of assessing premises No. 4 Dum Dum Road is under Section 127(a) of the Calcutta Municipal Act. The appellant was entitled to costs, and the Corporation of Calcutta was entitled to assess the premises for the period in suit under Section 127(a).