MINICIPAL CORPORATION OF DELHI Vs. PIYUSH TRADERS PRIVATE LIMITED

JUDGEMENT

(1.) These two Writ Petitions are being disposed of by this common judgment. Facts in brief are that M/s. Piyush Traders Private Limited, respondent No. 1. in both the writ petitions has constructed property bearing Municipal No. B-II/33, Mohan Cooperative Industrial Estate, Mathura Road, Badarpur, New Delhi. The petitioner. Municipal Corporation of Delhi, in both the writ petitions has sent a notice dated 30th March, 1984 proposing to fix the rateable value of Rs. 1,62.000 w.e.f. 1st April, 1983. Respondent No.1 filed objections to the said notice raising the plea that soon after constructing the building the same was let out to M/s. Jainsons Engineers Private Limted w.e.f. 1-10-83 for a period of 2 years vide a licence deed dated 26th October, 1983 at the rental of Rs. 6,000 per month, but the said tenant vacated the premises by the end of December, 1983 and the same name to he let out to American Embassy w.e.f. January 1. 1984 on a monthly rental of Rs. 15,000. Hence the plea was taken that as the first letting has been made to M/s. Jainsons Engineers Private Limited, the rent of Rs. 6000 per mensum under the provisions of the Delhi Rent Control Act would be deemed to be the standard rent and the same could be taken as a basis for fixing the rateable value of the property in question fur assessing property tax. The Assessing Authority after considering the objections and documents produced before it, however, gave the finding that the house in question was not fit for occupation tin January 1984 and thus, there could not be any letting of unconstructed house and in fact, it was a camaflougs letting made to show the less rateable value and in fact the first letting after completion of the house took place in favour of American Embassy at the rent of Rs. 15000 per mensum and the said rent has to be treated as a standard rent for 5 years and thus, he fixed the rateable value at Rs. 2350 for vacant plot from 1st April, 1983 and Rs. 64,800 w.e.f. 1-10-83 and at Rs. 1,59,890 w.e.f. 4-1-1984. This assessment was made in respect of the year 1983-84 and in respect of the year 1984-85 the same rateable value was fixed. As a matter of fact if a finding has to be given that first letting was made in favour of American Embassy at the rental of Rs. 15.000 per month, then in view of the provisions of Section 6 of the Delhi Rent Control Act. the said rent has to be treated as standard rent for a period of 5 years.

(2.) The respondent No. 1 was not satisfied of. the aforesaid assessment orders and two appeals were filed under Section 169 of the Delhi Municipal Corporation Act. Shri B. S. Chaudhary, Additional District Judge, the competent authority under the Act, who heard and accepted the appeals, gave a finding that in fact the first letting took place to M/s. Jainsons Engineers Private Limited at the rental of Rs. 6000 and the said rent has to be treated as standard rent for a period of 5 years and he thus modified the assessment order and fixed the rateable value at Rs. 64,800 w.e.f. 1-10-1983.

(3.) . The Municipal Corporation of Delhi has challenged the said order by filing these writ petitions. On merits, it has been pleaded that the bare reading of the documents produced before the Assessing Authority made it clear that the building was not fit for occupation till the same came to be let oat to the American Embassy and the first Appellate Authority went wrong in law in ignoring the material evidence and thus, gave a wrong finding that the first letting took place in favour of M/s. Jainsons Engineers Private Limited. In both the cases, a plea is also raised that the appeals to the Appellate Authority were not competent inasmuch as the respondent No. 1 had not deposited the disputed property-tax as required under Section 170 of the D.M.C. Act and the appeals were liable to be dismissed on that score alone.