JUDGMENT :

B. N. Kirpal, R. K. Abichandani, JJ.

1. The question which arises for consideration in the large number of First Appeals filed against various orders of Small Causes Courts as to how to determine the rateable value of premises for the levy of property tax under the provisions of the Bombay Provincial Municipal Corporations Act, 1949 (hereinafter referred to as "the B.P.M.C. Act").

2. Considering the importance of the points involved and in order to determine all the questions which arise in connection with the assessment to house tax, these Appeals were heard together and various learned Counsel addressed arguments on all the issues which could, possibly, arise and which are being decided by this judgment. For the sake of convenience, and in order to appreciate various submissions made, facts of two sample cases, viz., First Appeal No. 469 of 1990 filed by the Corporation against M/s. Hindustan Photo Films Manufacturing Co. Ltd. (which is the case of premises occupied by a tenant) and First Appeals Nos. 1339 of 1983 to 1341 of 1983 filed against Shri G. L. Shah (who is an owner in self-occupation of the premises in question), may, briefly, be considered.

3. M/s. Hindustan Photo Films Manufacturing Co. Ltd. are occupying premises, measuring 600 sq. ft. in the cellar, 1588 sq. ft. on the ground floor and 790 sq. ft. on the first floor of a building in a central location at Ahmedabad. The said premises were taken on rent by M/s. Hindustan Photo Films at the rate of Rs. 2/- per sq. ft. In respect of the assessment year 1983-84, the Corporation had fixed gross rateable value of the premises in question at Rs. 1,51,609/-, against which the Company preferred an appeal and the Small Causes Court, Vide order dated 2nd January, 1989. In M.V.A. No. 3479 of 1984 reduced the gross rateable value to Rs. 6,906/-. For the years 1984-85 and 1985-86, the Corporation adopted the rateable value of Rs. 1,51,609/- which had been fixed by it for the year 1983-84. The rateable value had been fixed on the basis of the actual rent being paid. But, on appeals being filed by the Company, the gross rateable value was again reduced by the Small Causes Court to Rs. 6,906/-, by following its earlier decision of 2nd January, 1989 in respect of the assessment year 1983-84. For the year 1986-87, the Corporation again fixed the gross rateable value at Rs. 1,51,609/-. But, for the subsequent year i.e., 1987-88, the gross rateable value was increased to Rs. 1,78,164/-. Appeals were filed by the Company, and once again the gross rateable value was reduced to Rs. 6,906/- because of the earlier judgment dated 2nd January, 1989. The total claim vide bill dated 5th August, 1987 of the Corporation was for Rs. 4,68,848.50, including arrears of Rs. 3,63,018.82. But the entire claim for Rs. 3,63,018.82 was quashed and it is thereafter that F.A. No. 469 of 1990 has been filed in respect of the year 1987-88.

4. First Appeals Nos. 1339 to 1341 of 1983 relate to rateable value of premises, which are in self-occupation of the owner himself and relate to the assessment years 1980-81, 1981-82 and 1982-83. The gross rateable value was fixed by the Municipal Corporation for each of these years at Rs. 12,714/-. Various contentions were raised in the Appeals which were filed against the said assessment, before the Small Causes Court. The submission related to the validity of the orders passed on the ground that the Municipal Commissioner himself had not passed the orders and there was no valid delegation order, and, on the basis of comparable instances, the comparison being with the rateable value fixed by the Small Causes Courts themselves of other buildings, the Court came to the conclusion that reasonable and expected rent would be Rs. 3.50 per sq. metre for the premises on the ground floor, Rs. 3.00 per sq. meter for the premises on the first floor and Rs. 2.50 per sq. metre for the premises on the second floor. This building is situated at the High Court Road and is in the