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Issues Involved:
1. Whether a tenant of a building is entitled to file and maintain an appeal against the order assessing the property tax u/s Bombay Provincial Municipal Corporation Act, 1949. 2. Whether proviso (aa) to sub-clause (ii) of clause (1A) of Section 2 of the said Act is valid and effective. Summary: 1. Tenant's Right to Appeal Against Property Tax Assessment: The appellants contended that tenants should have the right to appeal against property tax assessments as they bear the financial burden due to agreements with landlords and provisions u/s 10 of the Bombay Rent Act. The Gujarat High Court held that only the owner could appeal. The Supreme Court disagreed, stating that tenants have a direct stake in property tax assessments and should be allowed to file appeals. The court noted that the Municipal Corporations Act and the Bombay Rent Act do not explicitly bar tenants from appealing. The court emphasized that tenants, especially those contractually obligated to pay property taxes, should have the right to challenge assessments. The court concluded that tenants have the requisite locus standi to file complaints and appeals u/s 406 of the Municipal Corporations Act, provided they comply with the conditions prescribed. 2. Validity and Effect of Proviso (aa) to Clause (1A) of Section 2: Proviso (aa) states that if the standard rent is not fixed u/s 11 of the Bombay Rent Act, the actual rent received by the owner shall be deemed the annual rent for property tax purposes. The appellants argued that the standard rent should be considered even if not fixed, relying on precedents like Padma Debi and others. However, the Supreme Court upheld the validity of proviso (aa), emphasizing its non-obstante clause, which overrides other laws. The court distinguished this case from earlier decisions by noting the specific non-obstante clause in proviso (aa), which mandates considering the actual rent received for tax assessment. The court affirmed the principle from Ratna Prabha, stating that the actual rent received is the annual rent for determining the annual letting value, rateable value, and property taxes. Conclusion: The Supreme Court allowed the appeals in part, holding that tenants can file appeals against property tax assessments if they comply with the conditions in Sections 406 and 407 of the Municipal Corporations Act. The court also upheld the validity and effect of proviso (aa) to the definition of "Annual Letting Value" in Section 2(1A), requiring its application as explained in the judgment. Appeals allowed.
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