1991 (8) TMI 343 - HC - Indian Laws

High Court reevaluates property assessment, emphasizes evidence over assumptions

The High Court partially allowed the writ petition challenging the Additional District Judge's order under Section 169 of the Delhi Municipal Corporation ... - Issues:Challenge to order under Section 169 of the Delhi Municipal Corporation Act.Analysis:The writ petition challenged the order of the Additional District Judge, Delhi, allowing the appeal under Section 169 of the Delhi Municipal Corporation Act. The respondent, as the owner of a house in New Delhi, contested the rateable value fixed by the Assessor and Collector for the years 1984-85. The Assessor considered factors like land cost, construction cost, and rent received, including a security deposit. The Additional District Judge, in the appeal, disagreed with the Assessor's valuation, citing a D.D.A. circular and directed a fresh valuation of land. The Judge also questioned the addition of a monthly sum to the rent. The petitioner contended that the Judge's decision was incorrect.Case Precedent:Referring to a Division Bench judgment in a similar case, the High Court directed a fresh valuation of the land as of 1/08/1981, following established guidelines. The Court also instructed a reevaluation of the construction cost, allowing the owner to present evidence of expenses. The Assessor was advised to use C.P.W.D. rates as a guideline, not conclusive evidence.Rent Valuation:Regarding the addition of a monthly sum to the rent, the Court found no justification for presuming an increase in rent based on a security deposit. The Court emphasized that income from a security deposit should not automatically be considered part of the rent. The judgment highlighted that the security deposit is refundable and serves as a safeguard against nonpayment of rent. The Court rejected the notion that income from the security deposit should be included in the rent unless specific circumstances indicate otherwise.Conclusion:The writ petition was partly allowed, setting aside the Additional District Judge's order on land and building valuation. The original assessment order was also annulled, allowing the Assessor to conduct a fresh assessment following legal procedures. No costs were awarded in this judgment.