LexTHE COMMISSIONER versus GRIHA YAJAMANULA SAMKHYA AND ORS.
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A THE COMMISSIONER v. GRIHA YAJAMANULA SAMKHYA AND ORS. MAY 2, 2001 B [S.P. BHARUCHA, D.P. MOHAPATRA AND S.N. PHUKAN, JJ.] Municipalities: Hyderabad Municipal Corporation Act, 1955-Section 212-Rateable C value, Annual rental value-Determination of for the purpose of property tax-Need not be the fair rent determined under the Rent Control Act. D E Sections 213, 220 and 223-Determination of property tax- Commissioner s power of-Advice of the District Level Advisory Committee constituted by the Government-Held, not binding on the Commissioner- Hyderabad Municipal Corporation Rules-Rule 7. Several Writ Petitions were filed in the High Court of Andhra Pradesh challenging the assessment of property tax of the buildings within the area of Municipal Corporations and Municipalities in the State of Andhra Pradesh. Section 199 of the Hyderabad Municipal Corporation Act provides that property tax shall be levied at such percentage of their rateable value as may be fixed by the Corporation. Section 212 of the Hyderabad Municipal Corporation Act, 1955 deals with the determination of the rateable value and states that the annual rental yalue of lands and buildings shall be deemed F to be the gross annual rent at which they may reasonably be expected to be let from month to month or from year to year with reference to its location, type of construction, plinth area, age of the building, nature of use to which it is put and such other criteria as may be prescribed. G Section 213 of the Hyderabad Municipal Corporation Act vests power in the Commissioner to call for information or returns from the owner or occupier of the assessable premises. Section 220 of the Act provides for filing of complaint against the amount of rateable value. Section 223 mandates that the Commissioner shall investigate and dispose of the complaint filed in the presence of the complainant if he appears before the Commissioner. II 392 !- .... THE COMMR. v. GRIHA YAJAMANULA SAMKHYA 393 Under Rule 7 of the Hyderabad Municipal Corporations Rules the A Commissioner has to gather the information relating to the prevailing rental value of the buildings of various categories in a zone and arrive at average monthly or yearly rent fixable for each category of building per square meter of the plinth area. Under sub rule (2) of Rule 7, the Commissioner has to fix the provisional monthly and yearly rent for each category and publish the same and invite objections and suggestions from the public and revise the B rental values. The proposal has to be thereafter put up before the District Level Advisory Committee constituted by the Government for its final recommendation. Thereafter, the Commissioner has to publish a final notification. Sub rule (3) of Rule 7 states that the Commissioner shall fix the monthly or yearly rent for each category in a zone and notify the rate C so fixed . The High Court disposed of the Writ Petitions holding, inter alia, t'1at 1. The power for determination of the rateable value of the building and the property, tax belongs to the Commissioner and the Committee constituted D by the Government has no role to play. The Commissioner is not bound by the recommendation of the Committee. 2. The annual rental value to be fixed by the Commissioner in the corporation areas shall be limited to the fair rent either determined or determinable under the A.P. Buildings (Lease, Rent and Eviction) Control E Act. The Commissioner may fix· a lesser annual rental value keeping in consideration the factors as provided under Section 212 of the Hyderabad Municipal Corporation Act 3. The annual rental value in respect of all buildings in the municipal F areas, where rent has been determined under the rent control legislation, would be the gross annual rental on the basis of such rent determined unless there is any fraud or collusion. In respect of other buildings in the municipality areas, the Commissioner shall determine rent considering factors mentioned in Section 87(2) of the Andhra Pradesh Municipalities ~41~~ G Against the order of the High Court, the Commissioners of the concerned Municipal Corporations and the Government filed appeals before this Court. Partly allowing the appeal, the Court H 394 SUPREME COURT REPORTS [2001] 3 S.C.R. A HELD : 1.1. The Hyderabad Municipal Corporation Act, 1955 and the Municipal Corporation Rules provide a complete code for assessment of the ..,. pro
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