JUDGMENT

B. P. JEEVAN REDDY, J. - Leave granted.

2. This appeal is preferred by the Union of India through the Secretary, Ministry of Urban Development Officer, Ministry of urban Development against the judgment of the Delhi High Court allowing the writ petition filed by the respondents with certain directions. The first respondent is Jain Sabha, New Delhi (Sabha) and the second respondent is the President of the first respondent - Sabha.

3. The Sabha applied to the Land and Development Officer (L&DO) for allotment of a plot of land for locating the school being run by them. The L&DO allotted in 1963, a plot of land admeasuring 1.363 acres @ Rs. 5000 per acre plus the annual ground rent of five per cent thereon. The allotment could not, however, be given effect to. The Sabha was representing repeatedly for allotment of the land. In 1967, another letter of allotment was issued stipulating the very same rate. As required by the said letter, the Sabha deposited an amount of Rs. 7185 on 8-7-1967. The physical possession of the land could not, however, be delivered to the Sabha on account of existence of certain structures which could not be vacated or removed. The Sabha continued to press for allotment. The Sabha continued to press for allotment. A question was also raised in Parliament on 27-2-1978 in this behalf, to which a reply was given by the Government that an alternate plot of 2.15 acres would be allotted to the appellant-petitioner. This change in the extent to be allotted was the consequence of a change in the policy. Sometime after 1967, it appears, the relevant rules were amended according to which no school can be established in a plot of land less than two acres in extent. Be that as it may, possession of the alternate land was also not given to the Sabha. Correspondence went on between the parties. On 14-10-1986, the L&DO informed the Sabha that an extent of 2.15 acres is being allotted to the Sabha for running the school @ Rupees eight lakhs per acre. The Sabha represented against the price proposed to be charged. On 18-7-1990, a formal letter of allotment was issued in respect of 2.15 acres of land. So far as the rate is concerned, a distinction was made therein. With respect to the extent of 1.363 acres (which was the area originally allotted or intended to be allotted to the Sabha), consideration was fixed at Rs. 5000 per acre but in respect of the excess land of 0.787 acre, consideration was fixed at Rupees thirty-eight lakhs per acre. The total consideration so fixed for the entire extent of 2.15 acres came to Rs. 29,90,600 (premium) and Rs. 74,765 payable as ground rent per annum. On 16-8-1990, the Sabha deposited a sum of Rupees ten lakhs towards the consideration demanded.

4. On 5-9-1990, the Delhi High Court delivered its judgment in Delhi Development Authority v. Lala Amar Nath Educational & Human Society [42 (1990) DLT 651] holding that in respect of Nazul land allotted on "no profit no loss" basis in accordance with the policy of the Central Government to schools, it is not open to the Government to charge market rate. Relying upon the said judgment, the Sabha filed the writ petition (from which this appeal arises) in Delhi High Court questioning the demand of consideration @ Rupees thirty-eight lakhs per acre for part of the land allotted to it, i.e., in respect of an extent of 0.787 acre. The Delhi High Court has allowed the writ petition directing that the Government shall charge @ Rupees five thousand per acre for the extent of 1.363 acres (the original proposed extent) and @ Rupees eight lakhs per acre for the excess land of 0.787 acre. The Sabha is also made liable to pay proportionate ground rent and other charges in accordance with law. The money already paid the Sabha is directed to be adjusted against the amount determined as payable on the above basis. It has been further directed that physical possession of the land shall be handed over to the Sabha on completing all the formalities within tw