GUNTUR MUNICIPAL COUNCIL vs GUNTUR TOWN RATE PAYERS' ASSOCIATION

The Supreme Court held that under Section 82(2) of the Madras District Municipalities Act, 1920, the assessment of rental values must be based on what rent the premises can lawfully fetch from a hypothetical tenant, adhering to the provisions of the Rent Control Act. The Court clarified that there is no distinction between buildings with fixed fair rent and those without, as the municipality must determine fair rent according to the principles of the Rent Control Act. The assessment must be revised every five years, but can be changed if justified, ensuring compliance with the Rent Control Act during the assessment period.