1972 (11) TMI 102 - HC - Indian Laws

Summary

Issues Involved:
1. Basis for assessing annual value or rateable value of properties.
2. Applicability of standard rent fixed under Rent Control Acts.
3. Legal principles governing the determination of annual value.
4. Interpretation of relevant statutory provisions.

Detailed Analysis:

1. Basis for Assessing Annual Value or Rateable Value of Properties:
The primary issue was whether the Municipal Corporation of Delhi and the New Delhi Municipal Committee should assess the annual value of properties based on the actual rent received or the standard rent as per the Delhi Rent Control Act, 1958. The Court held that the Corporation or Committee must ascertain the standard rent in accordance with the Rent Control Act provisions and use it as the basis for assessment.

2. Applicability of Standard Rent Fixed Under Rent Control Acts:
The Court examined whether the standard rent, if not fixed by the Rent Controller, should still be considered when determining the annual value. It was concluded that even if the standard rent is not fixed, the Corporation or Committee should determine it as per the Rent Control Act and use it for assessing the annual value. The Court emphasized that the annual value or rateable value cannot exceed the standard rent fixed or determined under the Rent Acts.

3. Legal Principles Governing the Determination of Annual Value:
The Court referred to several Supreme Court decisions to establish that the annual value should be based on the standard rent, which is either fixed or determinable under the Rent Control Acts. The principle laid down in *Patel Gordhandas Hargovindas v. Municipal Commissioner Ahmedabad* was reiterated, stating that annual value is determined by actual rent, hypothetical rent, or capital value. The Court also cited *The Corporation of Calcutta v. Smt. Padma Debi* and *Guntur Municipal Council v. The Guntur Town Rate Payers Association* to support the view that the rent for assessment should not exceed the standard rent.

4. Interpretation of Relevant Statutory Provisions:
The Court analyzed sections 116 of the Delhi Municipal Corporation Act, 1957, and section 3(1)(b) of the Punjab Municipal Act, 1911. It was noted that the second proviso to section 116 of the Corporation Act, which limits the rateable value to the standard rent, is immaterial as the legal position remains the same even without it. The Court also interpreted sections 4, 5, and 48 of the Delhi Rent Control Act, 1958, which prohibit the recovery of rent exceeding the standard rent and impose penalties for contraventions.

Conclusion:
The Court concluded that the annual value of properties should be based on the standard rent fixed or determinable under the Rent Control Acts. If the standard rent is not fixed, the Corporation or Committee must determine it as per the Rent Control Act before assessing the annual value. The judgment under appeal was set aside, and the writ petitions were directed to be placed before a learned Single Judge for disposal in light of this judgment. No order was made as to the costs of the appeals and the writ petition.