Sanjay Kishan Kaul, J.

( 1 ) THE purchaser purchases an existing constructed property. The Municipal Corporation of Delhi assesses the rateable value afresh on the basis of new purchase value. The purchaser claims that since no change has been made in the property, mere purchase of the same by the purchaser cannot result in increase of rateable value determined on the basis of new purchase price. This, in sum and substance, is the dispute in the present writ petition.

( 2 ) THE property bearing No. C - 776, New Friends Colony, New Delhi was purchased and constructed upon in 1983 The premises were initially let out. The plot measures 480 sq. yds. and two independent building units are stated to have been constructed on the same being front and rear portion of the building. Shri P. S. Khera was owner of the property. Shri Khera sought fixation of rateable value on the basis of standard rent determinable on cost basis under Section 6 of the Delhi rent Control Act, 1958 (hereinafter to be referred to as, the Rent Act ) on expiry of the initial five years period of letting. In terms of the assessment order dated 20. 5. 1987, the said plea was accepted, but Shri Khera was aggrieved by determination of the said rateable value and preferred an appeal. In terms of the order of the appellate Authority dated 20. 5. 1987, the rateable value was determined at Rs. 43,650/ -. The petitioners purchased the front portion of the said building in terms of two sale deeds dated 15. 4. 1996 executed by Shri Khera, which was constructed on land measuring 272. 8 sq. yds. , for a sale consideration of Rs. 42. 5 lakhs each totalling to Rs. 85 lakhs.

( 3 ) AS a consequence of purchase and transfer of the property, the respondent corporation proposed enhancement of rateable value of the entire property to Rs. 11,80,000/- w. e. f. 1. 4. 1995. The petitioners requested for the front portion to be assessed separately in their names and stated that the same continued in the original position without any additions or alterations and, thus, no change was required since the rateable value was fixed on cost basis in the year 1987. In terms of the assessment order dated 26. 12. 1997, the respondent fixed rateable value of the front portion of the property purchased by the petitioners at Rs. 7,22,500/- w. e. f. 18. 12. 1995. It was accepted that the building was in the earlier old condition and determination of rateable value is on the basis of the price paid by the petitioners.

( 4 ) THE petitioners have filed the present writ petition aggrieved by the said assessment order and has prayed for fixation of rateable value on the basis of standard rent under the Rent Act.

( 5 ) THE determination of rateable value as aforesaid is stated to have been done on the basis of the Delhi Municipal Corporation (Determination of Rateable Value) bye-Laws, 1994 (hereinafter to be referred to as, the said Bye-Laws ) framed under the Delhi Municipal Corporation Act, 1957 (hereinafter to be referred to as, the dmc Act ).

( 6 ) THE Bye-Laws on the basis of which the rateable value has been determined are reproduced hereunder:

" 2. Definitions. (1) In these bye-laws (b) cost of premises means (i) where the premises have been acquired by purchase or through any transaction (whether by way of becoming a member of, or acquiring shares in a Co-operative Society, company or their association of persons or by way of any agreement or in any other manner whatsoever) which has the effect of transferring, or enabling the enjoyment of the premises, the cost paid, or where the cost is partly paid or partly payable the aggregate of the cost paid or payable for the premises and the cost of additions and improvements whether made by the owner or by the occupier, or "3. Determination of rateable value of lands and buildings. (1) For the purposes of Sub-section (1) of Section 116 of the Act, the annual rent shall be determined as under: (c) in case premises are used and occupied or are lying vac

Click Here to Read the rest of this document