NEW DELHI MUNICIPAL COUNCIL versus SOHAN LAL SACHDEV (DEAD) REPRESENTED BY MRS. HARINDER SACHDEV W/O LATE SOHAN LAL SACHDEV

NEW DELHI MUNICIPAL COUNCIL versus SOHAN LAL SACHDEV (DEAD) REPRESENTED BY MRS. HARINDER SACHDEV W/O LATE SOHAN LAL SACHDEV

Letting out premises for running a guest house amounts to commercial purpose, and electricity use therein is liable to be charged at commercial rates as the relevant consideration is the owner's use, not the purpose of the guests.

Parties
Appellant: New Delhi Municipal Council; Respondent: Sohan Lal Sachdev (dead) represented by Mrs. Harinder Sachdev
Jurisdiction
India
Judgment Date
09 February 2000
Procedural Posture
Civil Appeal / Appeal From High Court Decision Reversing Concurrent Findings of Trial Court and First Appellate Court
Outcome
Appeal allowed
Legal Topics
Tariff Classification, Meaning of 'commercial' and 'domestic' Use, Use of Premises for Guest House, Electricity Charges

Case Brief

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Parties

New Delhi Municipal Council

Appellant

Sohan Lal Sachdev (dead) represented by Mrs. Harinder Sachdev

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Decision Reversing Concurrent Findings of Trial Court and First Appellate Court

  1. 1 Whether use of premises as a guest house amounts to 'domestic use' or 'commercial use' for electricity charges by NDMC

Ratio Decidendi

Letting out premises for running a guest house amounts to commercial purpose, and electricity use therein is liable to be charged at commercial rates as the relevant consideration is the owner's use, not the purpose of the guests.

Court Disposition

Appeal allowed

Orders

  • Judgment of the Delhi High Court set aside
  • NDMC entitled to charge for use of electricity in Sachdeva Guest House at the commercial rate