THE CORPORATION OF CALCUTTA vs SM. PADMA DEBI AND OTHERS

The Supreme Court held that under Section 127(a) of the Calcutta Municipal Act, 1923, the annual valuation of a property cannot exceed the standard rent fixed under the West Bengal Premises Rent Control (Temporary Provisions) Act, 1950. The Court clarified that the rental value must be based on what a landlord could reasonably expect to receive from a hypothetical tenant at the time of assessment, not the actual rent paid by the tenant. The appeal by the Calcutta Corporation was dismissed, affirming that the assessment must consider the legal constraints imposed by the Rent Control Act.