ORDER

On 1st November, 1990, 42.6 acres of Government land at Andrews Ganj, Delhi was given by the Government of India to the appellant for development. According to the terms of the allotment letter, 17.6 acres of land was to be developed by the appellant and utilised as a hostel and guest house facilities, conference hall, shopping and other community centre facilities. Out of the money earned therefrom, on 25 acres of land flats were to be constructed for housing Government servants. The said letter envisaged that a lease to this effect would be executed in future.

2. Possession was taken and on 25th March, 1994, even though formal lease had not been executed in favour of the appellant, assessment under the provisions of the Delhi Municipal Corporation Act, 1957 (for short "the Act") was made to property tax for the period 2nd July, 1990 to 31st March, 1995. The assessment was made at the rate of 5 per cent of the value of the land. The assessment was on the vacant land as no building as on that day had yet been erected.

3. The challenge of the appellant to the said levy based on the provisions of Section 119 of the Act did not succeed. It was the contention of the appellant that