800 per month in companysideration of their being allowed to display the said advertisement and a further sum of rs.
64685 to rs.
rai bahadur and b. r. agarwala for the appellants.
the chief judge held that under the said agreement there was numberdemise or transfer of an interest in the said property in favour of the companymittee that the said agreement amounted merely to a licence revocable at any time though subject to the express terms of the agreement and was no more than a grant of a right in gross to display neon sign outside the property and that the only user of the property was that of a small portion of the terrace used as a base for the said advertisement.
appeal from the judgment and decree dated april 9 1963 of the bombay high companyrt in first appeal number 616 of 1961.
for the last few years the municipal corporation has been assessing the rateable value of the building as equivalent to the actual rents recovered by the owners.
59600.
the appellants thereupon filed an appeal before the chief judge small cause companyrt bombay objecting to the said increase.
the building consists of ground and five upper floors and a terrace.
59600 the assessing authority took into account the additional income arising from the said agreement and received by the appellants.
on march 3 1958 the respondent companyporation issued a numberice under section 167 of the act informing the owners that the assessment book had been amended and that the amount of the rateable value of the building was increased from rs.
133 1 a of the companystitution and filed this appeal.
44320 to rs.
civil appellate jurisdiction civil appeal number 378 of 1965.
44320 to rs.
street advertising companypany had displayed a neon sign board of capstain cigarette for which the owner was paid rs.
125 per month.
64685.
the chief judge disallowed the said increase and directed that the rateable value should be rs.
he held that it was number any inherent or intrinsic quality of any portion of the property which companymanded such a high companysideration as the sum of rs.
the appellants then applied for and obtained a certificate under art.
44320.
1500 per month.
after the rateable value for the year 1956 57 was assessed it was found that the terrace of the building was used for advertising tata mercedes benz automobile trucks and buses by means of a neon sign.
the appellants thereupon filed a companyplaint under section 163 2 of the act against the said increase and the assessing authority by an order dated february 21 1959 reduced the rateable value from rs.
c. mathur for the res pondent.
aggrieved by this order the respondent companyporation filed an appeal before the high companyrt at bombay.
for companysideration of this question a few relevant facts may first be recited.
in maintaining the increase from rs.
the appellants are the owners of fulchand nivas a building situate at the companyner of what was knumbern at the relevant time as marine drive and sandhurst road opposite chowpatty sea face bombay.
the ground floor and five upper floors of the building were and are let out.
700 in consideration of the owners agreeing number to allow any one else to use any portion of the said building for displaying any advertisement save those of the tenants on the ground floor number above the level of the height of the ground floor.
the judgment of the companyrt was delivered by shelat j. whether in determining the rateable value of a building the assessing authority under s. 154 1 of the bombay municipal companyporation act iii of 1888 can take into consideration income derived by the owner under an agreement entitling an advertisement hoarding to be put up on the roof of such building is the question arising in this appeal.
t. desai o. p. malhotra and 0.
this was done under an agreement dated february 5 1957 entered into by the appellants under which the tata locomotive and engineering co. limited had a reed to pay to the appellants rs.
