Mrs. Sujata V. Manohar, J. - (1.) The appellants are the owners of the properties in Delhi which are governed by the Delhi Municipal Corporation Act, 1957 or the Punjab Municipal Act, 1911. Prior to coming into force of the Delhi Rent Control (Amendment) Act, 1988, these properties were governed by the Delhi Rent Control Act of 1958.
(2.) By the Delhi Rent Control (Amendment) Act, 1988, sub-sections 3(c) and (d) clauses (c) and (d) were added in Section 3 of the Delhi Rent Control Act, 1958. These provide that nothing in the said Act shall apply "(c) to any premises, whether residential or not, whose monthly rent exceeds three thousand and five hundred rupees"; or "(d) to any premises constructed on or after the commencement of the Delhi Rent Control (Amendment) Act, 1988, for a period of ten years from the date of completion of such construction." On the said provisions coming into force the appellants received notices under Section 126 of the Delhi Municipal Corporation Act for the assessment year 1988-89 and for subsequent years proposing to revise the rateable value of their properties. The footnote to these notices stated that this was in view of the amendments to the Delhi Rent Control Act, 1988. Assessments which were made pursuant to such notices were made by calculating the rateable value of the property on the basis of the actual annual rent received. These and similar notices and assessments are the subject-matter of challenge in the present proceedings.
(3.) Under Section 113 of the Delhi Municipal Corporation Act, 1957, the Corporation shall levy, inter alia, property taxes. Under Section 114 the property taxes shall be levied on lands and buildings in Delhi and shall consist of the following, namely, (inter alia) under sub-section (d) a general tax of not less than ten and not more than thirty per cent of the rateable value of lands and buildings within the urban areas. Section 116 provides as follows:- "116. Determination of rateable value of lands and buildings assessable to property taxes- (i) The rateable value of any lands and buildings assessable to property taxes be the annual rent at which such land or buildings might reasonably be expected to let from year to year less- (a) a sum of ten per cent of the said annual rent which shall be in lieu of all allowances for costs or repairs and insurance, and other expenses, if any, necessary to maintain the land or building in a State to command that rent, and (b) the water tax or the scavenging tax or both, if the rent is inclusive of either or both of the said taxes: Provided that if the rent is inclusive of charges for water supplied by measurement, then, for the purpose of this section the rent shall be treated as inclusive of water tax on rateable value and the deduction of the water tax shall be made as provided therein: Provided further that in respect of any land or building the standard rent of which has been fixed under the Delhi and Ajmer Rent Control Act, 1952 (38 of 1952), the rateable value thereof shall not exceed the annual amount of the standard rent so fixed. [Explanation - The expressions "water tax" and "scavenging tax" shall mean such taxes of that nature as may be levied by an appropriate authority.] (2) and (3) ********** " To determine the quantum of property tax, therefore, it is necessary to arrive at the rateable value of the land or building. Under Section 116(1) the rateable value is the annual rent at which such land or building might reasonably be expected to be let from year to year less certain deductions. We have to consider how the annual rent at which such property might be reasonably expected to be let, is to be arrived at when the rent of the property is not controlled under the Delhi Rent Control Act, 1958 or any other rent control legislation.;