Fresh assessments should be based on the actual annual rent received by the Petitioner, adjusting the Annual Fee and deducting Operating & Maintenance Expenses, to achieve parity and uniformity in property tax levied on the same parcel of land used for the same purpose.

JUDGMENT

Manmohan, J. (Oral)--By way of the present writ petition, the Petitioner, Delhi International Airport Limited ("DIAL") has inter-alia challenged the constitutional validity of Section 73 of the Cantonment Act, 2006 (`Cantonments Act') and sought the quashing of the final assessment order dated 15th June, 2020 ("Impugned Order") passed by the Respondent No.3 i.e., Delhi Cantonment Board ("DCB"). The assessment order for the triennial assessment period 2016-2019 was for INR 2589,10,97,035/- (Two Thousand Five Hundred Eighty-Nine Crores Ten Lakhs Ninety-Seven Thousand Thirty Five only) with respect to 1438.2017 acres of land claimed by the DCB as falling within its jurisdiction and which land forms a part of the Indira Gandhi International Airport, at New Delhi ("Land in Question"). By far the larger tract of land viz., 3,306 acres falls within the jurisdiction of the Municipal Corporation of Delhi ("MCD") (erstwhile South Delhi Municipal Corporation ("SDMC").

2. Subsequent to the filing of the present writ petition, the DCB issued another order dated 12th March, 2021 determining ARV for the triennial assessment period 2019-2022 for an amount of INR 2890,70,32,375.67 (Two Thousand Eight Hundred and Ninety Crores Seventy Lakhs Thirty Two thousand Three Hundred Seventy Five and Sixty Seven Paise only) with respect to the Land in Question. This subsequent fact was brought to the notice of this Court vide Additional Affidavit filed by the Petitioner dated 12th April, 2021 vide Diary No.363790/2021.

3. It may be pointed out that in addition to the validity and vires of the Cantonments Act, it is also contended by the Petitioner that the Land in Question does not fall within the definition of "Cantonment" as provided under Section 3 thereof and therefore cannot be taxed by the DCB.

4. One of the questions which would arise for determination is whether the assessment is to be carried out under Section 73(a) or 73(b) of the Cantonments Act. The provisions are set out hereunder:

"73. Definition of "annual rateable value"

For the purposes of this Chapter, "annual rateable value" means-

(a) in the case of hotels, colleges, schools, hospitals, factories and any other buildings which the Chief Executive Officer decides to assess under this clause, one-twentieth of the sum obtained by adding the estimated present cost of erecting the building to the estimated value of the land appertaining thereto;

(b) in the case of building or land not assessed under clause (a), the gross annual rent for which such building exclusive of furniture or machinery therein or such land is actually let or, where the building or land is not let or in the opinion of the Chief Executive Officer is let for a sum less than its fair letting value, might reasonably be expected to let from year to year

Provided that, where the annual rateable value of any building is, by reason of exceptional circumstances, in the opinion of the President Cantonment Board, excessive if calculated in the aforesaid manner, the President Cantonment Board may fix the annual rateable value at any less amount which appears to him to be just.

5. Under the statutory arrangement, the Airports Authority of India ("AAI"/Respondent No. 4) pursuant to Section 12A of the AAI Act, 1994 and in public interest executed Operation Maintenance and Development Agreement dated 04th April, 2006 ("OMDA"). A lease deed dated 25th April, 2006 ("Lease Deed") was also executed in favor of the Petitioner for operation, maintenance, development, design, construction and upgradation of the IGI Airport in Delhi. The total land which was the subject matter of the Lease Deed is approximately 4744 acres, comprising of 3306 acres of land parcel falling under the jurisdiction of MCD and the remaining 1438 acres claimed by DCB to be falling within its jurisdiction.

6. It may be pointed out that these lands leased to the Petitioner are used for operating the runways, taxiways, apron, hangers and the terminal building wh