MUNICIPAL CORPORATION OF GREATER BOMBAY vs NEW STANDARD ENGINEERING CO. LTD.

The Supreme Court held that the assessment of property tax under Section 154 of the Bombay Municipal Corporation Act, 1888, must consider the actual rent charged when the property is constructed under a government-subsidized housing scheme. The Court found that prior consultation with the Corporation is mandatory and failure to observe this requirement invalidates the assessment made under subsection (1) of Section 154. The Court set aside the High Court's decision, restoring the Small Causes Court's ruling that the rateable value should reflect the actual rentals recoverable by the Respondent Company.