1991 (8) TMI 343 - HC - Indian Laws

Summary

Issues:
Challenge to order under Section 169 of the Delhi Municipal Corporation Act.

Analysis:
The writ petition challenged the order of the Additional District Judge, Delhi, allowing the appeal under Section 169 of the Delhi Municipal Corporation Act. The respondent, as the owner of a house in New Delhi, contested the rateable value fixed by the Assessor and Collector for the years 1984-85. The Assessor considered factors like land cost, construction cost, and rent received, including a security deposit. The Additional District Judge, in the appeal, disagreed with the Assessor's valuation, citing a D.D.A. circular and directed a fresh valuation of land. The Judge also questioned the addition of a monthly sum to the rent. The petitioner contended that the Judge's decision was incorrect.

Case Precedent:
Referring to a Division Bench judgment in a similar case, the High Court directed a fresh valuation of the land as of 1/08/1981, following established guidelines. The Court also instructed a reevaluation of the construction cost, allowing the owner to present evidence of expenses. The Assessor was advised to use C.P.W.D. rates as a guideline, not conclusive evidence.

Rent Valuation:
Regarding the addition of a monthly sum to the rent, the Court found no justification for presuming an increase in rent based on a security deposit. The Court emphasized that income from a security deposit should not automatically be considered part of the rent. The judgment highlighted that the security deposit is refundable and serves as a safeguard against nonpayment of rent. The Court rejected the notion that income from the security deposit should be included in the rent unless specific circumstances indicate otherwise.

Conclusion:
The writ petition was partly allowed, setting aside the Additional District Judge's order on land and building valuation. The original assessment order was also annulled, allowing the Assessor to conduct a fresh assessment following legal procedures. No costs were awarded in this judgment.