NEW DELHI MUNICIPAL COMMITTEE Vs. LITTLE THEATRE GROUP

JUDGEMENT

(1.) How is the annual letting value to be determined in' the case of property constructed on a leasehold land for the purpose of arriving at the amount of house tax to be paid under section 3 (1) (b) of the Punjab Municipal Act is the question involved in this and connected writ petitions.

(2.) A plot of land measuring O.5 acre or thereabout situate at Ferozeshah Road, New Delhi by lease-deed dated 21st April, 1972 was 1et out to respondent No. 1 in perpetuity from 6th February, 1962. The consideration in terms of premium which was paid was of Rs. 18,000 "or acquiring the said rights. In addition the respondent in terms of the lease-deed was required to pay yearly rent of Rs. 900 in advance which rent is subject to revision in terms of the said lease after the expiry of every thirty years. It appears that this land has been given to the respondent at a concessional rate and the land user is described in the lease-deed. The purpose for which the land can be used is that of "Theatre Arts Training Centre". One of the relevant clauses of the said lease-deed is clause (14) of para 2, which reads as under :

(3.) The respondent constructed a building on the aforesaid land. With a view to levy the house tax under section 3 (1) (b) of the Punjab Municipal Act, the petitioner published a notice under section 65 of the Punjab Municipal Act proposing annual value of the said property. The respondent filed objections to the same. The counsel for the respondent were heard by the Committee and it was contend- ed that the rateable value of the property should be fixed under section 6 of the Delhi Rent Control Act. 1958 (hereinafter referred to as 'the said Act'). The Committee, however, vide their resolution No. 8 passed in their ordinary meeting held on 24th February, 1977 did not arrive at the annual value on the basis of the principles contained in section 6 of the said Act The Committee purported to apply the principles contained in section 9(4) of the said Act but even there it made a mistake inasmuch as it did not take into consideration the standard rent of similar properties in the localities. As per the said resolution the annual value was fixed at Rs. 3,28,920. Against the demand received pursuant to the said fixation of the annual letting value the respondent filed an appeal. The Additional District Magistrate by his order dated 29th September, 1979 allowed the said appeal and directed the petitioner to assess the property keeping in view the lease-deed, the ground rent and the cost of construction. Against the said order the petitioner has filed the present writ petition. The first question which arise for consideration is whether the annual value is to be fixed with reference to the standard rent of the property under section 6 or 9 of the said Act or whether any other basis is to be taken into consideration for arriving at the annual letting value.