The Reference :

On a difference of opinion between Mr. Justice D.K. Deshmukh and Mr. Justice R.G.Ketkar, constituting a Division Bench, in an appeal arising out of the decision of a Single Judge, the following question of law has been sent for reference to a third judge:

“(i) In view of the repeal of the Bombay Rent Act and enactment of the Maharashtra Rent Control Act, is the Bombay Municipal Corporation justified in taking into consideration the actual amount of rent received or receivable by the landlord in relation to the units which are let out, but where the lease is exempted from the provisions of the Rent Act for determination of annual letting value with effect from 1 April 2000?”

The Controversy:

2. Section 140 of the Mumbai Municipal Corporation Act, 1888, provides for the levy of taxes on buildings and lands in Brihan Mumbai. These taxes which are called property taxes comprise of: (i) water tax; (ii) additional water tax; (iii) sewerage tax; (iv) additional sewerage tax; (v) general tax; (vi) education cess; (vii) street tax; and (viii) betterment charges. Section 154(1) aligns the ratable value of a building or land assessable to property taxes with the an