Mr. Ved Marwah v. New Delhi Municipal Counil (Ndmc) and Ors

order on costs.

S. RAVINDRA BHAT (JUDGE)

A.K. CHAWLA (JUDGE) MARCH 23, 2018

* IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on: 20.03.2018 Pronounced on: 23.03.2018 + W.P.(C) 188/2018, C.M. APPL.772/2018 MR. VED MARWAH .…. Petitioner versus NEW DELHI MUNICIPAL COUNCIL (NDMC) AND ORS. .... Respondents + W.P.(C) 2198/2017 SAURABH MALHOTRA AND ORS .…. Petitioners Versus NEW DELHI MUNICIPAL COUNCIL (NDMC) AND ORS. .... Respondents + W.P.(C) 3995/2017 M/S. PEAREY LAL AND SONS (P) LTD. .…. Petitioner versus NEW DELHI MUNICIPAL COUNCIL AND ANR..... Respondents + W.P.(C) 4789/2017, C.M. APPL.20759/2017 M/S. MEHRA JEWEL PALACE PVT. LTD. .…. Petitioner versus NEW DELHI MUNICIPAL COUNCIL AND ANR..... Respondents Through: Mr. B.B. Jain, Mr. Amitabh Marwaha and Mr. Abhay Jain, Advocates, in W.P.(C) 188/2018, W.P.(C) 2198/2017 & W.P.(C) 3995/2017. Ms. Aastha Dhawan and Ms. Diksha Mathur, Advocates, for petitioner, in W.P.(C) 4789/2017. Mr. Arjun Mitra, Mr. Abhishek Mishra, Ms. Kaskaran Kaur, Advocates, with Mr. Puneet Gupta, DEO and Mr. Hardeep Singh, Jr. Assistant, NDMC, in all matters. Mr. Sanjeev Uniyal and Mr. Dhawal Uniyal, Advocates, for UOI, in W.P.(C) 188/2018. Ms. Shreya Sinha and Mr. Amritesh Raj, Advocates, for UOI, in W.P.(C) 2198/2017. Mr. Santosh Kumar Pandey, Advocate, for UOI, in W.P.(C) 3995/2017. CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE A.K. CHAWLA MR. JUSTICE S. RAVINDRA BHAT % 1. In all these petitions, although several grounds are urged, the common reliefs claimed are the quashing of notices under Section 72 of the New Delhi Municipal Act, 1994 (hereafter "the Act"); the assessment orders made pursuant thereto and the demands made by the respondent (NDMC). The petitioners also challenge the validity of Section 116(b) of the Act as arbitrary. 2. The New Delhi Municipal Council (NDMC) is a statutory local/municipal body constituted under the Act. As part of its functioning, it is entitled to assess and collect municipal property taxes in respect of each kind of property. The Punjab Municipal Act, 1911 was the precursor to the Act; Section 416(1) of the Act repealed that Act (of 1911). Section 63 of the Act authorizes the assessment and collection of municipal property taxes and reads as follows: "63. Determination of rateable value of lands and buildings assessable to property tax.-(l) The rateable value of any lands or building assessable to any property taxes shall be the annual rent at which such land or building might reasonably be expected to let from year to year less a sum equal to ten per cent of the said annual rent which shall be in lieu of all allowances for cost of repairs and insurance, and other expenses, if any, necessary to maintain the land or building in a state to command that rent: Provided that in respect of any land or building the standard rent of which has been fixed under the Delhi Rent Control Act, 1958 (59 of 1958) the rateable value thereof shall not exceed the annual amount of the standard rent so fixed. (2) The rateable value of any land which is not built upon but is capable of being built upon and of any land on which a building is in process of erection shall be fixed at five per cent of estimated capital value of such land. (3) All plant and machinery contained or situate in or upon any land or building and belonging to any of the classes specified from time to time by public notice by the Chairperson with the approval of the Council, shall be deemed to form part of such land or building for the purpose of determining the rateable value thereof under sub-section (1) but save as aforesaid no account shall be taken of the value of any plant or machinery contained or situated in or upon any such land or building." 3. Section 72 of the Act which is also relevant for the purpose of these proceedings reads as follows: "72. Amendment of assessment list.-(l) The Chairperson may, at any time, amend the assessment list (a) by inserting therein the name of any person whose name ought to be inserted; or (b) by inserting therein any land of building