JUDGMENT

K. JAGANNATHA SHETTY, J.:— The essential question raised by these appeals relates to the determination of rateable value of the respondents building; whether it is to be determined under sub-section (1) or under sub-section (3) of Section 154 of the Bombay Municipal Corporation Act, 1888 ("Act").

2. The facts giving rise to these appeals briefly are as follows: The respondents M/ s. New Standard Engineering Co. Ltd. is an industrial concern. It has constructed a building for providing housing accommodation for its labourers under a scheme known as the "Government Subsidised Scheme for Industrial Workers". Under the Scheme, the respondent has obtained certain amount by way of subsidy together with a loan advanced by the Government. The subsidy and loan were advanced under an agreement dated 12 November, 1959 entered into between the Government and the respondent. The agreement inter alia, provides that the Government being satisfied that the proposed construction would be helpful in implementing the Governments scheme for giving an impetus to industrial housing with a view to relieving the acute shortage of houses intended for industrial workers, has agreed to grant a subsid