Case Law Details
New Delhi Municipal Council Etc. Vs Association Of Concerned Citizens Of New Delhi And Others Etc. (Supreme Court of India)
FACTS –
NDMC made NDMC House Tax Bye-laws, 1962 and was published on 24th April, 1964. Section 60 empowers levy of taxes which includes property tax. NDMC adopted existing 1962 bye-laws in so far as levy of property tax is concerned. Under these Bye-laws, the method of arriving at annual rent is on the basis of annual rent which land and building may reasonably be expected to be let from year to year.
On 13th February, 2006, the NDMC in its meeting discussed that the rateable value Bye-laws may be prepared in such a way so as to remove most of the difficulties faced in the present system. It was suggested to introduce Unit Area Method (UAM) selectively for self-occupied residential properties in the Bye-laws. Thereafter, on 10th March, 2006, the Chairperson of the NDMC constituted a committee (the NDMC Special Committee) under Section 9 of the NDMC Act to advice upon the property tax. This Special Committee submitted its final report in February, 2007 which was, in principle, accepted by the NDMC in its meeting on 12th February, 2007. Ultimately on, 24th February, 2009, the GNCTD notified the New Delhi Municipal Council (Determination of Annual Rent) Bye-laws, 2009 in the Official Gazette. These Bye-laws were enforced from 1st April 2009 and were made applicable in the area under the jurisdiction of the NDMC.
The constitutional validity of NDMC (Determination of Annual Rent) Bye-laws, 2009 was challenged by the person who have their properties in NDMC area by filing of a writ petition in High court. High court held that bye-laws are ultra vires the NDMC Act as they are far beyond the scope and ambit of the powers vested in NDMC under Section 388(1)(A)(9) of the Act. Against the said judgment of high court NDMC filed an appeal.
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