U. L. BHAT, C. J. ( 1 ) THREE companies owning factories within the limits of Ratlam Municipal Corporation have filed these writ petitions. The petitions raise common questions and, therefore, have been heard together and are being disposed of by this common order. ( 2 ) RATLAM Municipality came into existence in 1944. In due course, it became a part of Madhya Bharat State and came to be governed by the Madhya Bharat Municipalities Act, 1954 (hereinafter called the Act of 1954 ). Section 46 of the 1954 Act empowered Municipalities to make bye-laws in regard to various matters. Ratlam Municipality in 1956 made bye-laws in regard to levy and collection of property tax. In 1956, Madhya Bharat State became part of newly constituted State of Madhya Pradesh. In 1961, M. P. Municipalities Act was enacted repealing 1954 Act and certain other Acts. Ratlam Municipality became a Municipal Corporation with effect from 1-1-1981 and thereafter, Ratlam Municipal Corporation is governed by M. P. Municipal Corporation Act, 1956 (for short the Act of 1956 ). ( 3 ) DISPUTE in these three writ petitions relates to the property tax to be paid by the petitioners to the Ratlam Municipality till 1-1-1981 and to Ratlam Municipal Corporation till 31-3-1982. The Municipality/ Corporation demanded property tax for the respective periods calculating tax on the basis of annual letting value as assessed under clause 2 (Cha) (Aa) of the 1956 Bye-laws, namely 10% of the actual cost of construction. It appears, at the instance of the Companies and the Corporation, the District Collector interfered in the matter and the petitioners agreed to suggest to the State Government that the bye-law be allowed to be amended reducing the annual letting value from 10% of the actual costs of construction to 5% thereof. The Government declined to approve the proposed change. The petitioners have, therefore, approached this Court challenging the assessment of the property tax. ( 4 ) LEARNED counsel for the petitioners has raised two contentions in the course of his arguments. The first contention is that the definition of 'annual letting value' in bye-law No. 2 (Cha) (Aa) is in conflict with Sec. 3 (14) of the Act of 1954 and, therefore, has to be regarded as ultra vires the Act. ( 4 ) LEARNED counsel for the petitioners has raised two contentions in the course of his arguments. The first contention is that the definition of 'annual letting value' in bye-law No. 2 (Cha) (Aa) is in conflict with Sec. 3 (14) of the Act of 1954 and, therefore, has to be regarded as ultra vires the Act. Second contention is that even if the bye-law is valid, since it is in conflict with the provisions of M. P. Municipalities Act, 1961 and the M. P. Municipal Corporation Act, 1956, it is not saved by either of the enactments and, therefore, the assessment to the property tax on the basis of bye-law is illegal. ( 5 ) SECTION 69 (1) (b) (i) of the Act of 1954 empowers any municipality to impose a tax on houses, buildings or lands situated within the limits of the municipality. The preliminary procedure is prescribed in Sec. 70. Section 73 of the Act of 1954 contemplates preparation of assessment list containing valuation based on capital or annual letting value, as the case may be, on which the property is assessed and the amount of tax assessed thereon. It is clarified that where the valuation is on annual letting value, a sum of 10% of that valuation shall be deducted therefrom in lieu of all allowances for repairs or on any other account whatsoever, Section 3 (14) of the Act of 1954 defines 'annual letting value' as follows :"'annual letting value' shall mean the annual rent for which any building or land exclusive of furniture or machinery contained or situated thereon or therein might reasonably be expected to let from year to year, and shall include all payments made or agreed to be made by a tenant to the owner of the building or land on account of occupation, taxes, insurance or other charges incidental to his tenancy. "in other words, property tax is to be based on the annual letting value as determined under the provisions of the Act. Annual letting value shall be the rent which might reasonably be expected to let from year to year. ( 6 ) BYE-LAW 2 (Cha) (Aa) of the bye-laws states that in relation to College buildings, school buildings, hospital buildings, Nursing Home buildings, factory buildings and Government buildings, annual rental value shall be reckoned as equal to 10% of the actual cost of construction. ( 6 ) BYE-LAW 2 (Cha) (Aa) of the bye-laws states that in relation to College buildings, school buildings, hospital buildings, Nursing Home buildings, factory buildings and Government buildings, annual rental value shall be reckoned as equal to 10% of the actual cost of construction. According to the learned counsel for the petitioners, this method of computation is in conflict with the definition of 'annual letting value' in Sec. 3 (14) of the Act of 1954. We are unable to agree. The statutory definition merely indicates that the annual letting value shall be the rent which the building may reasonably fetch. Many kinds of building can be easily let out. There may be a few varieties of buildings which cannot be let out ordinarily and can only be used by owners. Bye-law 2 (Cha) (Aa) has put together buildings which are not ordinarily left out to tenants, such as buildings used for purposes of Colleges, Nursing Homes, Factory as also Government buildings. According to the bye-law, the annual letting value will be 10% of the actual cost of construction. This only means that the Municipal Council has adopted a rough and ready method of assessing annual letting value of such buildings by equating 10% of the actual cost of construction with the annual rent which the buildings may fetch, if it could be let out. The formula prescribed in the bye-law is only a method of ascertaining the reasonable annual letting value. There is no conflict, between the bye-law and Sec. 3 (14) of the Act of 1954. ( 7 ) IT cannot also be suggested that the classification of buildings is not reasonable or that the classifications has no nexus with the object sought to be achieved. The object sought to be achieved is to provide funds for the Municipality to meet its expenses. Certain; types of buildings are treated in a separate category. We have already indicated that these buildings which cannot ordinarily be let out belong to a special category i. e. in the cases of such buildings, it would be difficult to find out what would be the reasonable annual letting value except by mere conjunction. Therefore, separate treatment given to buildings used for Colleges, Factories etc. is reasonable and the categorisation plus the method suggested for arriving at the annual letting value have close nexus with the object of the statute. Therefore, separate treatment given to buildings used for Colleges, Factories etc. is reasonable and the categorisation plus the method suggested for arriving at the annual letting value have close nexus with the object of the statute. The provision cannot be said to be arbitrary. ( 8 ) THE next argument is that with the coming into force of the M. P. Municipalities Act, 1961 or at any rate, of the Municipality becoming a Municipal Corporation the bye-law ceases to be in force and is not saved by the two statutes. ( 9 ) SECTION 2 of the Act of 1961 contains the provision for 'repeal' and 'savings'. Sub-sec. (1) of Sec. 2 repeals the Act of 1954 and certain other Acts. The relevant portion of sub-sec. 2 (i) reads thus :"2. Notwithstanding such repeal - (i) All Municipal Committees, Municipal Councils. . . . . . rules, orders, bye-laws made, notifications and notices issued. . . . . under the said Acts or any enactment thereby repealed shall, in so far as they are not inconsistent with the provisions of this Act, be deemed to have been respectively. . . . made, issued. . . . . under this Act. "act of 1961 also contains parallel provisions with regard to levy and collection of the property tax based on annual letting value. Section 126 of the Act of 1961 defines the expression 'annual letting value' as meaning; (i) Where any building or land is let out, the annual rent for which it is actually let out; (ii) where the rent of any building has been determined under the Madhya Pradesh Accommodation Control Act, 1955 (23 of 1955), the annual rent as so determined; and (iii) in any other case, theannual rent for which any building or land exclusive of furniture or machinery contained or situated therein or thereon, might reasonably be expected to let from year to year. There is no contention for the petitioner that the factory building was taken on rent or let out or that rent has been determined under the Accommodation Control Act. Therefore, only clause (iii) would be attracted in the instant case. Annual letting value shall be the annual rent for which any building or land might reasonably be expected to let from year to year. This is practically the same as the definition in Section 3 (14) of the Act of 1954. Therefore, only clause (iii) would be attracted in the instant case. Annual letting value shall be the annual rent for which any building or land might reasonably be expected to let from year to year. This is practically the same as the definition in Section 3 (14) of the Act of 1954. We have already indicated that there is no conflict between bye-law 2 (Cha) (Aa) and Section 3 (14) of the Act of 1954. On the same reasoning, it must follow that there is no conflict between the bye-law and Section 126 of the Act of 1961. Therefore, the demand made under the bye-law till 31-12-1980 is valid. ( 10 ) THE areas within the limits of Ratlam Municipality were constituted into a Municipal Corporation with effect from 1-1-1981 and came to be governed by the provisions of the M. P. Municipal Corporation Act, 1956. Act of 1956 empowers Corporation to levy and collect property tax. Section 138 deals with the ascertainment of annual value of land or building. Clause (c) of Section 138 is relevant for purposes of these cases which reads as under :" (C) the annual value of any building, the gross annual rent of which cannot be determined under clause (b), shall be deemed to be five percent on the sum obtained by adding the estimated present cost of erecting the buildings less any amount which the Commissioner may deem it reasonable to deduct for depreciation, to the estimated market value of the land valued with building as part of the same premises : provided that- (i) in calculating the annual value of any land or building under this section the value of any machinery on such land or in such building shall be excluded; and (ii) when a building is occupied by an owner under such exceptional circumstances as to render excessive a valuation of five per cent on the cost of erecting the building, less depreciation, a lower percentage may be taken. "according to clause (b) of Section 138, annual value of a building which may be let for use or enjoyment is the gross annual rent which the building might reasonably be expected to be let from year to year. We have already indicated that a factory building cannot come under this provision. "according to clause (b) of Section 138, annual value of a building which may be let for use or enjoyment is the gross annual rent which the building might reasonably be expected to be let from year to year. We have already indicated that a factory building cannot come under this provision. It is, therefore, clause (c) of Section 138 of the Act of 1956 which will apply to the buildings of the petitioners. Under this provision, the annual value of the building shall be deemed to be 5% on the sum obtained by adding the estimated present cost of erecting the building, less any depreciation plus estimated market value of the land which is part of the premises. This is totally different from the formula adopted in the bye-laws. ( 11 ) LETTING value as defined in Section 138 (c) of the Act of 1956 is wholly in conflict with the definition of "annual value" in the bye-law 2 (cha) (Aa) of the 1956 bye-laws. Section 3 (2) of the Act of 1956 states, inter alia, that every rule, bye-law made under the Municipal Law shall, so far as it relates to the Municipality of such city and so far as it is in force at the time of application of the rule is not inconsistent with this Act, be deemed to have been made or issued under the provisions of this Act and shall remain in force unless altered, modified, cancelled etc. When the Municipal area was constituted as a Municipal Corporation, it came to be governed by the Act of 1956. The bye-law framed under the Municipalities Act would service only to the extent it is not inconsistent with the provisions of Act of 1956. Since bye-law 2 (cha) (Aa) is inconsistent with Section 138 (c) of the Act of 1956, it must follow that it has ceased to be in force with the formation of the Ratlam Municipal Corporation. The demand made on the petitioners for the period subsequent to 1-1-1981 is illegal. Fresh demand has to be made in terms of the law applicable. ( 12 ) THE petitioners are disposed of, holding that the demand made on the petitioners for the period till 31-12-1980 is valid and the demand made subsequent thereto is illegal and unenforceable. Parties shall bear their own costs. Security amount deposited, if any, be refunded. Order accordingly. .