BOMBAY MUNICIPAL CORPORATION vs LIFE INSURANCE CORPORATION OF INDIA, BOMBAY

The Supreme Court held that under Section 154(1) of the Bombay Municipal Corporation Act, 1888, the annual rent for which a building might reasonably be expected to be let is the basis for fixing its rateable value. The Court clarified that the educational cess imposed by the appellant can be included in the calculation of the rateable value as a permitted increase under Sections 10, 10A, and 10AA of the Bombay Rent Act, 1947. Consequently, the High Court's ruling that the cess could not be included was overturned, affirming that landlords are entitled to recover such increases in addition to the standard rent.