NEW DELHI MUNICIPAL COMMITTEE Vs. M N SOT
LAWS(SC)-1976-9-37
SUPREME COURT OF INDIA (FROM: DELHI)
Decided on September 24,1976

NEW DELHI MUNICIPAL COMMITTEE Appellant
VERSUS
M.N.SOT Respondents

JUDGEMENT

Beg, J. - (1.) This appeal by special leave is directed against the unanimous decision of a Full Bench of the Delhi High Court. The case before us arose from a Writ Petition filed by the respondent, M. N. Soi, praying that certain assessment orders, together with the order under Sec. 84 of the Punjab Municipal Act III of 1911, passed on 11th February, 1966, by an Additional District Magistrate of Delhi relating to the house of the petitioner at 15, Prithviraj Road, New Delhi, modifying assessments on appeal, be quashed. The respondent landlord submitted that assessment for purpose of rating, in accordance with the provisions of Section 3 (1) (b) of the Punjab Municipal Act III of 1911 (hereinafter referred to as the Act) and, in particular, the interpretation of the words "may reasonably be expected to be let from year to year", impose upon the assessing authorities the obligation not to aseess at a higher rental value than the "standard rent." It is not disputed that standard rent of the house was fixed on 25th September, 1941, in the following terms:"After due consideration of all the facts and circumstances a fair rent of Rs. 170/- one Hundred and Seventy P. M. (unfurnished) on annual tenancy, exclusive of House Tax and Irrigation water charges, is hereby fixed for House No. 15, Prithvi Raj Road, New Delhi under Clause 5 of the Rent Control Order, 1939."
(2.) It appears from the statement of facts by the Full Bench, which has not been questioned before us, that the fixation of rent in 1941, under the New Delhi House Rent Control Order, 1939, continues to be valid notwithstanding the repeal of the Control Order by Section 15 of the Delhi and Ajmer-Merwara Rent Control Act, 1947, which, in its turn, was repealed by Section 46 of the Delhi and Ajmer Rent Control Act, 1952. The repealing provisions maintained intact the validity of all that was legally done under the repealed Order.
(3.) The Delhi Rent Control Act, 1958 (59 of 1958), contains a very elaborate procedure for the fixation of "standard rent" under Section 6 of this Act. In so far as such premises as "have been let at any time before the 2nd day of June, 1944", are concerned, the standard rent is determined as follows: "6 (1) (a) If the basic rent of such premises per annum does not exceed six hundred rupees, the basic rent; or (b) if the basic rent of such premises per annum exceeds six hundred rupees, the basic rent together with ten per cent of such basic rent;" The first two clauses of the second schedule to the 1958 Act define the "basic rent" for the purposes of the case before us: "1. In this Schedule, basic rent in relation to any premises let out before the 2nd June, 1944, means the original rent of such premises referred to in paragraph 2 increased by such percentage of the original rent as is specified in paragraph 3 or paragraph 4 or paragraph 5, as the case may be. 2. Original rent, in relation to premises referred to in paragraph 1, means- (a) where the rent of such premises has been fixed under the New Delhi House Rent Control Order 1939, or the Delhi Rent Control Ordinance, 1944, the rent so fixed; or (b) in any other case,- (i) the rent at which the premises were let on the 1st November, 1939, or (ii) if the premises were not let on that date, the rent at which they were first let out at any time after that date but before the 2nd June 1944." Thus, the "fair rent" fixed under the 1939 Order determines, ultimately the "standard rent" which still affects the assessment of rates in the manner indicated below.;


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