NEW DELHI MUNICIPAL COMMITTEE vs M.N. SOl AND ANOTHER

The Supreme Court held that under Clause 5 of the New Delhi House Rent Control Order, 1939, the fixation of standard rent must correlate with the reasonable rent at which the house is let, rather than an artificially determined basis from the past. The Court emphasized that the assessment of house tax should be based on the fair rent fixed under the Rent Control legislation, as per Section 3(1) of the Punjab Municipal Act, 1911. The appeal was dismissed, affirming the High Court's decision to quash the assessment order that improperly enhanced the rateable value based on actual rent received, which was deemed illegal.