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Dewan Daulat Rai Kapoor Etc. Etc vs New Delhi Municipal Committee & Another ... on 20 December, 1979

37. With regard to some Institutions, like Hospitals, Schools, or other public institutional buildings, it was also submitted that the provisions of Section 2(1A) Proviso (c) would be applicable and in such cases, the principle of Devan Daulat Rai Kapoor's case, etc., would not apply. Proviso (c) contemplates a case of a building, which belongs to a class, which is not, ordinarily, let and in respect of which the annual rent cannot, in the opinion of the Commissioner, be easily estimated. Now the annual rent is to be determined on the basis of the standard rent and this is fixed either by taking into account the rents in the neighbourhood of identical buildings or by ascertaining the cost of land and cost of building and fixing a return on the same. A fixed return on the capital employed is a known method for determination of hypothetical rent.
Supreme Court of India Cites 38 - Cited by 251 - P N Bhagwati - Full Document
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