CORPORATION OF CALCUTTA vs LIFE INSURANCE CORPORATION OF INDIA

The Supreme Court held that under Section 168(1) of the Calcutta Municipal Corporation Act, 1951, when no standard rent is fixed under Section 9 of the West Bengal Premises Rent Control (Temporary Provisions) Act, 1950, the annual rent for assessment must be based on the rent paid by the tenant to the landlord, not the higher rent received from sub-tenants. The Court clarified that the annual value cannot exceed the standard rent, which is determined by what would have been fixed if an application were made. The appeal was dismissed, affirming the lower court's ruling that only the rent paid by the tenant should be considered for determining annual value.