DR. BALBIR SINGH AND ORS. ETC. ETC. versus MUNICIPAL CORPORATION, DELHI AND ORS.

Citation: [1985] 2 S.C.R. 439 · Decided: 12-12-1984 · Supreme Court of India · Bench: P.N. BHAGWATI · Disposal: Directions issued

Cited by 6 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

._. 
439 
DR. BALBIR SINGH AND ORS. ETC. ETC. 
v. 
MUNICIPAL CORPORATION, DELHI AND ORS. 
December 12, 1984 
[P.N. BHAGWATI, R.S. PATHAK AND AMARENDRA NATH SEN, JJ.] 
Deihl Municipal Corporation Act, 1957 and Punjab Municipal Act 1911 
-Assessment of property tax-Different categories of properties enumerated 
-Rateable value-How to be determined-Criteria for calculating arrn1.al rent 
not lo be higher than standard rent-May be even lower lhon standard rent. 
Delhi Rent Control Act J9j8, s. 6-Determinatlon of Standard Rent-
PrlncipleJ explained-Sel!, 9 prescribts only procedure for fixation of standard 
r•nl. 
Section 2, sub-section (47) of Delhi Municipal Corporation Act, 19S1 
defines ~rateable value' to mean "the value of any land or building fixed in 
accordance with the provisions of this Act and the bye .. Jaws made there· 
under for the purpese of assessment to property taxes. 
Sub-secti00 (1) of 
Section 116 lays down that the rateable value of any land or building 
assessable to property taxes shall be the annual rent at which such Jaud or 
building may reasonable be expected to be let from year to year, less a sum 
equal to 10% of such annual rent. 
Sub-section 3 of sec. 120 provides that 
'"the liability of the several owners of any building which is, or purports to 
be. severally owned in parts or Oats or rooms, for payment of property taxes 
or any instalment thereof payable during the period of such ownership shall 
be joint and several.,. 
The appellants and petitioners chal1onged in the High Court of Delhi 
the assessmoats with regard to property tax made by the Municipal Cor• 
poration under the Delhi Municipal Corporation Act, 19S7 and the Punjab 
Municipal Act 1911 in respect of four categories of properties situated in 
Delhi and New Delhi areas. 
The municipal authorities contended that tho 
ratio of the decision in Dewan Dau/at Ram v. NDMC [1982] 2 S.C.R. 607 
was that whatever be the figure of the standard rent whether determined by 
the Controller under Section 9 of the Rent Act or arrived at by the assessing 
authority by applying the principles laid down in the Rent Act, must be 
taken as the measure of rateable value of the building for the purpose of 
assessability to property tu, irrespective of any other considerations i (2) 
that wberc any premises construoted on or after 9th June 1955 have not 
been let out at any time and have throughout been self-occupied, tho 
standard rent of such promises would be determinable under the provisions 
of 1ab 0 section (2) (b) of Section 6 of the Dolbi llool Control Ao1 19S8 and 
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440 
SUPREME C0t1RT REPORTS 
(1985) 2 s.c.a. 
any rent which. could be agreed upon between the landlord and the tenant 
if the premises were Jet out to a hypothetiCat tenant would be deemed to 
be the standard rent of tho premises and the formulae set out in sub. 
section (I) (B) (2) (b) of Section 6 would not bo applicable for determining 
the standard rent by reason of non·obstante clause contained in the opening 
part of sub-seotion (2) of Section 6 ; and (3) that since in some. of the 
cases the plot of land on which the premises s:tands, cannot be transferred 
without the previous ,consent of the Government, it· bas no market value 
and its market price cannot be ascertained and hence tha standard rent of 
the premises cannot be determined on the principles set out in sub-sectioDs 
(I) (A) (2) (b) or (1) (Bl (2) (b) of Section 6 and consequnetly, the miduuy 
provision in sub-section (4) of Section 9 Would apply and the standard rent 
would have· to b(: fixed io accordance with the principles laid down in that 
provision. 
On the questfon of determination of rateable value for four categories 
of properties for the purpose of assessability to property ta:ii:, the Court, 
HELD : 1.1 ~fhc relevant provisions of Delhi Municipal Corporation· Act~ 
1957 and the Punjab Municipal Act, 1911 in respect of determination of 
rateable value 'for the purp0se or assesSability to property talli:"are almost 
identical as· ob~erved by Suvrem1 Court in Diw•n Dau/at Ram v. NDMC 
(1980] 2 S.C.R. SOY and it vrould tberofor bo •ulloiont te refer t0 · tlu 
provisions of the· Delhi Municipal Corporation Act, 1957 (for short, the 
Act). [453E] 
It would appear from the provisions of ss. 114 and 1 t S and the Act 
'that the general tax is t'eviable on land and building as a whole and separate 

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