Mandatory consultation before concessional valuation under subsidised housing schemes determines whether special municipal assessment applies.

Section 154(3) of the Bombay Municipal Corporation Act applies only to buildings forming part of a recognised subsidised housing scheme for industrial workers, and the Explanation requires prior consultation with the Corporation as a condition precedent. That consultation was treated as a mandatory safeguard because the concessional valuation reduces municipal revenue, so it goes to the core of the special valuation scheme rather than being a formality. As no consultation had taken place, the building could not be assessed under Section 154(3), and its rateable value had to be fixed under the general rule in Section 154(1).

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Issues: Whether the rateable value of the respondent's building, constructed under a subsidised housing scheme for industrial workers, was required to be determined under Section 154(3) of the Bombay Municipal Corporation Act, 1888 on the basis of the concessional rent, despite the absence of consultation with the Corporation as required by the Explanation to that provision.

Analysis: Section 154(1) lays down the general rule for fixing rateable value, while Section 154(3) creates an exception for buildings forming part of a recognised scheme of subsidised housing for industrial workers and related classes. The Explanation defines such a recognised scheme as one recognised by the State Government after consultation with the Corporation. The requirement of consultation was treated as a safeguard protecting the Corporation's financial interests, because the concession under the special provision would reduce municipal revenue. The consultation was held to be on the essential core of the scheme and not a mere formality. Since the admitted position was that no consultation took place, the statutory condition precedent for invoking Section 154(3) was not satisfied.

Conclusion: The consultation requirement was mandatory, and in its absence the respondent could not claim assessment under Section 154(3); the rateable value had therefore to be fixed under Section 154(1).

Ratio Decidendi: Where a statutory exemption or special valuation provision is made conditional upon prior consultation with a public body whose financial interests are directly affected, the consultation is mandatory and non-observance disentitles the claimant from the benefit of that special provision.

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