The Bench of Dr. AK Sikri and Ashok Bhushan, JJ has declared the New Delhi Municipal Council (Determination of Annual Rent) Bye-laws, 2009 (NDMC Bye-Laws) violative of the New Delhi Municipal Act, 1944 (NDMC Act). The NDMC Bye-Laws were challenged on the ground that by introducing the Unit Area Method (UAM), these Bye-laws sought to alter the earlier system of determining the rateable value on the basis of the annual rent at which the land or buildings may reasonably be expected to be let from year to year....

2) The ‘rateable value’, as per Section 2(42) of the NDMC Act is to be fixed in accordance with the provisions of the Act and the Bye-laws made thereunder. Section 63(1) deals with determination of annual rent of a property. This annual rent has to be the one which the land or the property ‘might reasonably be expected to let from year to year’. It is, thus, based on the letting yearly value of the property. Based on various judgments of this Court, it was noticed that the only basis for fixation of rateable value is the annual rent at which the land or building might reasonably be expected to let from year to year, subject to the deductions provided under the NDMC Act...

3) The Impugned Bye-laws that provide UAM, which is based on the annual value of the property, are foreign to the methodology provided in Section 63 of the NDMC Act. Such Bye-laws are, thus, ultra vires the provisions of NDMC Act....

It’s for both 

NDMC (Determination of Annual Rent) Bye-laws, 2009 (hereinafter referred to as the ‘impugned Bye-laws’). These Bye-laws changed the earlier regime of determining the rateable value for the purposes of levying property tax. These Bye-laws seek to alter the earlier system of determining the rateable value on the basis of he annual rent at which the land or buildings may reasonably be expected to be let from year to year. 

2) hese Bye-law were framed in the year 2009. They were struck down by the High Court vide impugned judgment dated 10th August, 2017. They held the field from 2009-2017.

Your understanding is correct 

Dear Client,

The Delhi High Court has declared the New Delhi Municipal Council (Determination of Annual Rent) Bye-laws, 2009 (NDMC Bye-Laws) to be invalid. The NDMC Bye-Laws were challenged on the grounds that they violated the New Delhi Municipal Act, 1944 (NDMC Act).

The NDMC Bye-Laws introduced a new method for determining the rateable value of properties, called the Unit Area Method (UAM). The UAM is based on the annual value of the property, rather than the annual rent at which it could be reasonably expected to be let from year to year.

The High Court found that the UAM was not in accordance with the provisions of the NDMC Act. The Act specifically states that the rateable value of a property is to be determined on the basis of the annual rent at which it could be reasonably expected to be let from year to year.

The High Court's decision means that the NDMC Bye-Laws will no longer be used to determine the rateable value of properties in Delhi. The rateable value of properties will now be determined in accordance with the provisions of the NDMC Act.

The NDMC Bye-Laws were in force from 2009 to 2017. They were struck down by the High Court in August 2017.

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You are right in your views about the MCD in connection with the assessment of property tax is 

The formula used for calculation is as follows: Property tax = Annual value x Rate of tax Where Annual value = Unit area value per sq metre x Unit area of property x Age factor x Use factor x Structure factor x Occupancy factor..

In the impugned judgment, Delhi High Court accepted the submission of the assessees holding that the impugned Bye-laws are ultra vires the NDMC Act as they are far beyond the scope and ambit of the powers vested in NDMC under Section 388(1)(A)(9) of the Act which gives rule making power to the NDMC.

SC observed that these Bye-law were framed in the year 2009 and they were struck down by the High Court vide impugned judgment dated 10th August, 2017. That at present, 95% of the assessees have paid their tax as per Byelaws 2009. In these circumstances, to upset the applecart completely may not be appropriate. In such a peculiar situation, in exercise of powers under Article 142 of the Constitution, the Apex Court directs that those assessees who have paid the tax as per Bye-Laws, 2009, their assessments shall not be reopened. However, it will not apply to the respondents namely, those assessees who were the writ petitioners in the High Court. In their cases, the direction given by the High Court in the impugned judgment shall prevail.

SC observed that these Bye-law were framed in the year 2009 and they were struck down by the High Court vide impugned judgment dated 10th August, 2017. That at present, 95% of the assessees have paid their tax as per Byelaws 2009. In these circumstances, to upset the applecart completely may not be appropriate.

Your understanding in this aspect seems to be correct.

It’s a govt ready reackoner price which always changes