( 1 ) MUNICIPAL Corporation of Delhi ( mcd for short), a body constituted under the Delhi Municipal Corporation Act, 1947 (for short the Act ), framed Bye-laws called the Delhi Municipal Corporation (Determination of Rateable Value) Bye Laws, 1994 ( r. V. Bye-Laws" for short) and the Delhi Municipal Corporation (Property Tax Return) Bye-Laws, 1994 (for short "property Tax Return Bye-Laws"), both notified by notifications dated 24 October 1994. The petitioners in this petition under Article 226 of the Constitution have challenged the constitutional validity of these bye-laws. They also say that these bye-laws are ultra vires the Act. They, therefore, seek declaration to that effect and also seek quashing of these bye-laws.

( 2 ) FOR the decision of this petition the relevant provisions of the Act would be sections 2 (38), 2 (47), 114, 116, 131,481,481a and 483. The Articles of the Constitution to which references have been made are Articles 245, 266, 270 and entries 86 and 49 respectively of Lists I and II (Union List and State List) of Seventh Schedule to the Constitution. Reference has also been drawn to the provisions of the Delhi Rent Control Act relating to fixation of standard rent of the properties.

( 3 ) THERE is another writ petition (CWP No. 555/95) filed by Dr. Vijay Aggarwal, President of the Delhi Nusing Home Forum. In this there is a challenge to bye-law 3 (l) (c) (ii) of the R. V. Bye-laws being ultra vires the provisions of the Act and violative of Article 14 and 19 (1) (g) of the Constitution. This judgment will cover both these writ petitions (CWP No. 5102/94 and CWP No. 555/95 ).

( 4 ) UNDER section 2 (47) of the Act, "rateable value" means the value of any land or building fixed in accordance with the provisions of this Act and the bye-laws made thereunder for the purpose of assessment to property taxes. Section 2 (38) defines "premises" which means any land or building or part of a building and includes - (a) the garden, ground and out-houses, if any appertaining to a building or part of a building; and (b) any fittings affixed to a building or part of building for the more beneficial enjoyment thereof. As to what are the components and rates of property taxes, section 114 describes them which, in relevant parts, is as under :-

"114. Components and rates of property taxes. (1) Save as otherwise provided in this Act, the property taxes shall be levied on lands and buildings in Delhi and shall consist of the following, namely :- (a) Omitted. (b) Omitted. (c) Omitted. (d) a general tax - (i) of not less than ten and not more than thirty per cent of the rateable value of lands and buildings within the urban areas; and (ii) on lands and buildings within the rural areas at such lower rates and with effect from such date as may be determined by the Corporation: PROVIDED that the Corporation may, when fixing the rate at which the general tax shall be levied during any year, determine that the rate leviable in respect of lands and buildings or portions of lands and buildings in which any particular class of trade or business is carried on shall be higher than the rate determined in respect of other lands and buildings or portions of other lands and buildings by an amount not exceeding one-half of the rate so fixed: PROVIDED FURTHER that the general tax may be levied on a graduated scale, if the Corporation so determines. xxxxxxxxxxxxxx"

( 5 ) AS to how the ratetable value of lands and buildings assessable to property tax is to be determined, it is section 116 which in relevant parts is as under:-

"116. Determination of rateable value of lands and buildings assessable to property taxes. (1) The rateable value of any land or building assessable to property taxes shall be the annual rent at which such land or building might reasonably be expected to let from year to year less - (a) a sum equal to ten per cent of the said annual rent which shall be in lieu of all allowances for costs of repairs and i