The Shell Co of the Federation of Malaya

Ltd v Commissioner of the Federal

Capital of Kuala Lumpur

The appellant owned a shell company. The

appellant owned a land which was attached
with a building and underground tank.
The Shell Companys tanks were fixed 2 feet
below the ground level and were covered with
concrete. The respondent in determining the
annual value of the appellants holdings for
rating took into account the storage tanks.
 ISSUE

Whether the underground tanks were classified

as fixtures or chattel.
 PRINCIPAL

The court applied the law of Fixtures (general

rule) from the case of Holland v Hogson.

There are twos tests shall apply in order to

determine whether the articles are fixture or
chattel

the tests of degree of annexation

the purpose of annexation test.
 The degree of
annexation test
The degree of annexation test is fairly
inconclusive and simply looks at how securely
an item is attached to the land or building.
if the item is fixed securely to the land, such as
a bath, then there is a presumption that it is a
fixture.
If the item is resting on its own weight and is
not securely attached to the land, such as a
vase, there is a presumption that it is a chattel.
 The purpose of
annexation test

The purpose of annexation test is where

the intention of the party shall take into
consideration.
If the intent for that article to be
permanently attached to enhance the
use and enjoyment of the land fixture
If the intent is temporary purpose -
chattel
 JUDGMENT

Held: The storage tanks were annexed to the land

for its better use and enjoyment and form part of it
and accordingly ratable. It enhances the value of
the holding on which they stood and therefore
ratable. Since the tanks were Fixtures, therefore it
was land within the definition of land under NLC.