 bill no1 ef jm the delhi municipal laws (amendment and valida tion) bill, 1980 a billfurther to amend the punjab mu1licipal act, 1911, ci8 in force in, new delhi, and the delhi municipal corporation act, 1957 '' '," be it enacted by parliament in the thirtyfirst year ot the republic of india as follows: - i this act may be called the delhi municipal laws (amendment short add validation) act, 1980 title amend· mentof section 3 punjab act iiiol 1911 ;;  2 lrhhe punjab municipal act, 1911, as in forte iri new delhi (hereinafter referred to as the municipal act), in cla~ (b) of sulhection (1) of section 3, expumation i and etcptantttion ii shall be renumbered as explanticicm 1] and e:rpzamtion' iii respectively and before e~ ii as so renumbered, the' follbwingexplantltibn shall be inserted, : 0 namely:- ·i;j'planation i-fqf the purppses; ~ this clause,the exqftlillsion "the gross annual rent at, w~ch $uch ho~ b1" builclin&: tosetber with its appurtenances and any furniture that may be let for use or ' ,e~ymenttherewith m~ re~~q1y be, ~~ to let" shall, 1<; ,,'  dotw~thstmdinganythingccmtaid8d· ia aj)y,~~,law tqr~  time  , ,' be~g in force, mean and be deemed always to have ~~ ~ ,~l rent received or receivable for such house or building or where the \ ciual ~entreceived~ lorreoetvawe  is":than ··'ibete~d rent determined for such bouser'or:~frg\uddeir, et,  )the  may be, in accordance with the principles wd down in, the law relating to control of rents, for _ time being in force, then the standard rent! 3 in the delhi municipal corporation act, 1957 (hereinafter referred 66 of 1957 to as the corporation act), in section 116,-amendmentor section 116 (i) the second proviso to sub-section (1) shall be omitted; and 5 (ioi) the following explamtion shall be added at the end, namely:-'expzanation-for the purposes of this section, the expression "the annual rent at which such land or building might reasonably be expected to let" shall, notwithstanding anything 10 contained in any other law for the time being in force, mean and be deemed always to have meant the actual rent received or receivable for such land or building or the standard rent determined for such land or building under, or, as the case may be, in accordance with the principles laid down in, the law relating i 5 to control of rents, for the time being in force, whichever is higher' validation 4 (1) notwithstanding anything contained in any judgment, decree, order or determination of any court, tribunal or other authority, any 88leslklefttop l'hiisessment, determination or redetermination of the 20 annual value or rateable value of any property '~der the municipal act or the ooppol'ation act, aji51 levy or collection of tax on 5lidl property made or purporting to have been made, any action or thing taken or done in relation to such assessmellt or reassessment, determination or redetermination of the annual value or rateable value or levy or collection 25 of such tax under the provisions of tfte municipal act or the corporation j\+t ~ lh:~ ca~ il}8y~, (it any tim~ before the commencement of this act, slwl ~ peeilled ~o pe a~ valid 8lld ~ve ~ if s\lc)l assessment or reassessment, determination or redetermination, levy or collection or aotioq or tiung wen made,taken or done wu:iel- tile ){uaiqpil,fqt; as 30 amended by section 2 of this act, or, as the case may tmt, wle:\« ~ col'-poration act, as amended by section 3 of this act, and accordingly-(a) all acts, proceedings or things done or action taken by the n~ ~i ~~~ ~~~ qf ~y ult! mwwipf'l ~rtion q' ptulj w ~y itj\y ~ ~ '''~aofi', , tre ciglj\t~ 9f ~~ 3~ ~ in ~qp with lay ~t 9r 1'i  mi,llt 4~'" -u 9, ~~jwltiop of vlf awlu~ valia, @f r_~e vu- ~ ~ couetiqi!l qf s1jqb  jwi, far mj purpo@es qe 4""",, tq ~ i1i\tf to have always been as valid and effective as if the ame~  in the municipal act by section 2 of this act or, as ~he case may 40 be, the al1}~~ents ~ ill the cerporauon act, by section 3 at this ad qad " jn force at all relevant times; (b) po suit or other pr~, shall be rnaiiltaifted ()f' ooiltinued ida'i17' eeurt, tribunal er ~foft ad, authority for the refund ei any suet) tax;ancj 4s (0)  e8ilrt, uibaal qr  ~u  , or onie4treetina tm _lad "" ', bueit tao (2) ,for the removal of doubts it is hereby deelated that nothing in  sub-section (1) shall be construed as preventin; my pel'llgl'l-5 10 (a) 1rotn quelltioninl ill aoeordange witb tbe provi&iom of  the munieipil act, as amend by leqtion 2 of thia ~ or, as the case may be, the corporation art" u ameded by uod 3 of this act, the aues&melltor reasaament, fie~tion or redetemdnation of the annual value or rateable value, levy or colleeijon of such tax for any period, or (b) from claiming refund of any tp paid by him in 8xci of the amount due from him under the municipal act, as amended by section 2 of this act, or, the corporation act, as amended by mction 3 of this act  statement of objects and reasonsunder \he punjab ,municipal act, 1911" as in fol1:e in ?few pelbi tax on any house or building is leviable on ~ bam, at its , 'annual' value' which has been defined to mean the gross annual rent at which jach house or building may reasonably be expected to let similar provisions exist' for the purposes of levy of the above referred tax udder the delhi 'municipal corporation act, 195'7 under both of tbeie ·enadments, tax  on lands and buildings was thus being 8sie_d ad llolledied dy taking the actual rent being received or receivable as the basis where the same was higher than the standard rent determined or determinable under the rent control legislation 2 the supreme court in its judgment delivered on 20-12-1979 in devan dauzat rai kaput vs new delhi municipal, committee cmd anothe,- (air 1980 sc 541) held that where a building is governed by the provisions of rent control legislation, the landlord cannot reasonably be expected to receive anything more than the standard rent from a hypothetical tenant and the 'annual value' of the building cannot, therefore, exceed the standard rent it was also held that even in case of a building in respect of which no standard rent has been fixed within the prescribed period of limitation or where the building is self-occupied by the owner, the 'annual value' must be limited to the measure of standard rent determinable under the rent act and the same could not be calculated on the basis of higher rent actually received or receivable by the landlord 3 as a consequence of this judgment, the assessment of the properties for the purposes of house tax "leviable under the punjab municipal act, 1911, as in force in new delhi, and the delhi municipal corporation act, 1957, cannot exceed the standard rent determined or determinable under the delhi rent control act, 195'8, even though the property may be fetching or could be reasonably expected to fetch a higher rent 4 the financial implications of the aforesaid supreme court judgment are far reaching inasmuch as the new delhi municip81 committee and the delhi municipal corporation would be annually losing two crore rupees and five crore rupees respectively besides, the aforesaid two m~cipal authorities may have to refund a major portion of the property tax already collected by them and such a refund in the case of delhi municipal corporation alone may be to the tune of fifteen crore rupees 5 in order to overcome the effect of the judgment and to enable the determination of 'annual value' with reference to actual rent received or rec¢vable or the standard rent, whichever is higher, it his become necessary to amend the punjab municipal act, 1911, as in force in new delhi and the delhi municipal corporation act, 1957 it is also necessary to make suitable validating provisions for validating the assessment of tax on lands and buildings already made in the past 6 the bill seeks to achieve the above object nzw dmm; the 25th july, 1980 zail singh  (puntabact 11-1 or 1911)    - 3 in this act, unless there is something repugnant' in the subject or context,-(1) "annual value" means--definitions '"   - (b) in the case of any house or buijd,ing, the' gross, @i1ual rent at which such house or building, together witbits appurtenances and any furniture that may be let for use or enjoyment therewith, may reasonably be expected, to let from year to year, subject' to the following dedudions:-(i) such deduction not exceeding 20 per cent ,of the gross annual rent as the committee in eac~cular, case may' consider, a reasonable 'allowance on account of 'the furniture let therewith; (ii) a deduction of 10 per cent for the eost' 'of' repailis and for all other, expenses necessary, to maintain the; buuding in a state to command such gross annual rent the dieduction under this sl,lb-clause shall be calculated on the balance of the gross annual rent after the deduction, (ii any) wlder sub-clause (i)'; , ' , (iili) where 'land is let with a building such' deduction, , j" , ,, -, not exceeding 20 per cent of the grossannuai rent,"as the committee in each particular case may consider reasonable" on account of the actual expenditure, if any, annually incurred by the owne>f on the upkeep of the land in a state to command such gross annual rent explanation i-for the purposes of this clause it is immaterial whether the house or building, and the furniture and the land let for use or enjoyment therewith, are let by the same contract of by different contracts, and if by different contracts, whether such contracts are made simultaneously or at different times erplatnation h-the term "gross annual rent" shall not include any tax payable by the owner in respect of which the owner and tenant have agreed that it shall be paid by the tenant - - - •• -  5(66 of 1957) - - - - 118 (l) the rateable value of any land or building assessable to property taxes shall be the annual rent at which such land or bullding might reason,wy be expeet4jd to let from year to yeu __ (4) a sum equal to )~ pel' ""t of ute said annual rent which shall be in lieu of all allowances for costs of repairs and insurance, and other expenses, if any, necessary to maintain the land or buudma in a ta~ to command that rent, and (b) the water tax or the scavenging tax or both, if the rent is inclusive of either or both of the said taxes: determination of rateable value of lands and buildings assessable to property taxes provided that if the rent is inclusive of charges for water supplied by measurement, then, for the purpose of this section the rent shall be tnated at lncluuve of water tax on rateable value and the deduction of the wi tax shall , lilade  provitiecl therein: pfovideci furthar that ill rel~ct of any jand or builclini the standard rent of which has been fixed \wier the delhi and ~1uer bert control act, 1952, the rateable value thereof shall not exceed the annual amount 38 of 1952 of the tazrdud j'wilt so azm (2) 'l11e rateable value of any imd wbith is 'lot bullt ~n but is capable of being built upon and of any lu1c1 on wbi:h a building is in proces of erection shall be fixed at five per cent of the estimated capital va!\18 of luch land (i) au plet and macltinery contallled or situate in or upon any land or butldtil, and behmllnl to any of the clanes spec:ifted from time to time by public notice by the col1lldiasioner with the iipproval of the 9tandlnl eammi~, shall be deemed to form part qf such land or building for the purpose of determining the rateable value thereof ul\d!eit lub-soc:uon (l) but 18" as ejoresatci 110 ~11d1 ihall be taken of ttl, vel\l8 of 8ay pltnt at ijllcbinery cantatad or aitil&atfkl in or upon any uc:h uuid or b\lil~  - " - - - a bill further to amend the punjab municipal act, 1911, as in force in new delhi, and the delhi municipal corporation act, 1957 