Bombay High Court

THE MUNICIPAL CORPORATION OF GR. BOMBAYversusBANK OF BARODA

Decided: 17 February 2026
Disposal: Disposed Off
Bench: JITENDRA SHANTILAL JAIN

Holding

The appeal is disposed, granting the Corporation liberty to re‑determine the rateable value in accordance with law after hearing the assessee.

Summary

The Municipal Corporation of Greater Bombay appealed a Small Causes Court order that had set aside an earlier determination of a property's rateable value of Rs.2,88,180 per annum effective from 1 April 2002. The Small Causes Court held that the original order was based on circulars issued by the Corporation which had subsequently been challenged by assessees and withdrawn, as noted in the earlier decision of Ambadevi Hukmichand Jain v. Brihanmumbai Mahanagar Palika. Consequently, the court ordered that the rateable value be re‑determined in accordance with law, after giving the assessee an opportunity of hearing. The High Court affirmed this reasoning, disposing of the appeal and granting the Corporation liberty to redo the assessment. The appeal was therefore dismissed.

Issues considered

Whether an order determining rateable value that relies on circulars later withdrawn by the issuing authority is valid.
Whether the municipal corporation must re‑determine the rateable value after providing a hearing to the assessee.

Subjects

rateable value
municipal corporation
circulars
re‑determination
property tax
Small Causes Court

Judgment

2026:BHC-AS:8493
                   Sayyed                                                             36-FA.1806.2011.doc


                               IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                       CIVIL APPELLATE JURISDICTION

                                          FIRST APPEAL NO.1806 OF 2011

                   The Municipal Corporation
                   of Greater Bombay                            ...Appellant
                         Versus
                   Bank of Baroda                               ...Respondent
                         _____________________________________________________
                   Mr. Pradeep M. Patil for the Appellant-MCGM.
                   Ms. Shalaka Shinde i/by Anant Shinde & Co. for the Respondent.
                         _____________________________________________________

                                                        CORAM :          JITENDRA JAIN, J.
                                                        DATE         :   17 FEBRUARY 2026
                   P.C.:

                   1.          This appeal was admitted on 15 July 2011.


                   2.          The appeal is filed by the Corporation challenging the order
                   passed by the Small Causes Court on 28 April 2008. The Small Causes
                   Court has set aside the order passed by the Investigating Officer
                   determining the rateable value of the property at Rs.2,88,180/- n.p.a.
                   with effect from 1 April 2002.


                   3.          The Small Causes Court has given a finding that the original
                   order was passed based on the Circulars issued by the Corporation.
                   These Circulars were subject matter of challenge by various assessees
                   and the Hon’ble Bombay High Court in the case Ambadevi Hukmichand
                   Jain vs. Brihanmumbai Mhanagarpalika & Ors.1 have recorded that
                   these circulars have been withdrawn by the Corporation. Therefore, all
                   these matters were remanded back for re-determination of the ratable
                   value.
                   1 Writ Petition No.1801 of 2002 decided on 23.10.2002




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                               Sayyed                                                      36-FA.1806.2011.doc


                               4.        In the present appeal also, since the original order was based
                               on the circular which has been withdrawn by the Corporation, the
                               appeal is disposed of by giving liberty to the Corporation to re-
                               determine the rateable value in accordance with law and after giving
                               opportunity of hearing to the assessee.


                               5.        The First Appeal is disposed of in above terms.




                                                                             [ JITENDRA JAIN, J. ]




Signed by: Sayyed Saeed Ali
Designation: PA To Honourable Judge
Date: 18/02/2026 18:28:30                                        2 of 2

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