JUDGMENT :

Uday Umesh Lalit, CJI.

1. Leave granted in all Special Leave Petitions.

2. These appeals are challenging the common judgment and order dated 24.4.2019 passed by the Division Bench of the High Court of Judicature at Bombay in Writ Petition No. 2592/2013 and connected matters. Contempt Petition (Civil) No. 38/2021 has been filed against the alleged contemnor for disobedience of orders dated 29.7.2019, 21.10.2019 and 22.11.2019 passed by this Court in the appeal arising out of said SLP(C) No. 17009 of 2019. For the present purposes, said Contempt Petition is segregated with a direction to list the same before an appropriate Court after six weeks.

3. The MUMBAI MUNICIPAL CORPORATION ACT , 1888¹[“MMC Act”, for short] has been enacted by the State Government to consolidate and amend various Municipal Acts which were in force relating to the Municipal administration of the city of Mumbai. The Municipal Corporation of Greater Mumbai (“the Corporation” for short) has been established and discharging its duties under the MMC Act.

4. The MMC Act authorizes the Corporation to impose property tax on lands and buildings. Importantly, property tax is one of the main sources of revenue for the Corporation, specifically after abolition of Octroi. The MMC Act earlier provided for levy of property tax on the basis of certain percentage of rateable value of the buildings or lands. The basis of determination of rateable value as provided in the MMC Act was the annual rent for which such buildings or lands might reasonably be expected to be let from year to year.

5. The Corporation appointed Tata Institute of Social Sciences (for short “TISS”) and University of Mumbai to study the system of levy of property tax and to suggest alternative system for such levy. TISS submitted a detailed report recommending that capital valuebased system of assessment be adopted in place of annual rental system. After detailed discussions with stake holders and based on the recommendations of TISS, the MMC Act was amended by the Maharashtra Act No. XI of 2009. The amendment incorporated an option and empowered the Corporation to levy property tax on the basis of capital value as an alternative to the earlier method of levying property tax on the basis of rateable value.

6. The Statement of Objects forming part of the Bill which led to the passing of the Maharashtra Act No. XI of 2009 was as under:

”STATEMENT OF OBJECTS AND REASONS

Section 139 of the MUMBAI MUNICIPAL CORPORATION ACT (Bom. III of 1888) provides for imposition of taxes by the Municipal Corporation of Brihan Mumbai. The taxes to be so imposed provide inter alia property taxes on buildings or lands. The property taxes include water tax, water benefit tax, sewerage tax, sewerage benefit tax, general tax, education cess and street tax, which are leviable on the basis of certain percentage of rateable value of the buildings or lands.

2. Section 154 of the Act provides the method of fixing rateable value of any buildings or lands assessable to property tax. The basis to determine the rateable value is the annual rent for which such buildings or lands might reasonably be expected to let from year to year, less 10 per centum of the said annual rent and the said deduction is in lieu of all allowances for repairs or on any other account whatever.

3. The determination or fixation of the rateable value under different Municipal Acts or Municipal Corporation Acts throughout India for the purpose of levy of property taxes under these Act