ORDER

1. This appeal, by grant of special leave, is directed against the final judgment of the Division Bench of the High Court of Delhi dated 27-10-1998. By the impugned order the High Court has directed the Union of India, the appellant herein (hereinafter referred to as "the appellant") to grant permission for the construction of a multi-storeyed commercial complex at 27, Kasturba Gandhi Marg, New Delhi with reference to the application filed by the respondents dated 23-3-1981, filed on 25-3-1981.

Facts

2. A perpetual lease was executed by the appellants under the Government Grants Act, 1895, granting a perpetual lease of Property No. 27, Kasturba Gandhi Marg, New Delhi to Dr. Raghunath. Under the terms of the lease deed, the lessee could not construct a multi-storeyed building without taking permission from the appellant. The appellant modified the master plan for Delhi in the year 1962, according to which a multi-storeyed commercial a complex could be constructed on the said property and other similarly located properties. The zonal development plan also prescribed for the commercial use of the property in question and other properties in Connaught Place area.

3. Original lessee Dr. Raghunath died on 25-2-1972. The legal heirs being the successors of Dr. Raghunath executed a general power of attorney in favour of one Praveen Nayyar and Ashok Malik. In the said GPA, there is a mention of an agreement to sell dated 19-5-1980 executed by the legal heirs of Dr. Raghunath in favour of MIs Mahajan Woollen (P) Ltd. Le. Respondent 1 herein.

4. One Shri B.L.N. Sastry informed the appellant on 16-12-1980 that Dr. Raghunath had executed a registered power of attorney in his favour on 7-1-1972. In the said power of attorney also, there was a reference of agreement to sell dated 4-1-1972 with Ram Lal Jaggi and Narinder Anand, who were the promoters of Mis Indu Peoples Theatre Company Ltd. B.L.N. Sastry did not file an application for conversion of land use from residential to commercial. He is no longer in the picture.

5. On 25-3-1981, an application which was dated 23-3-1981 was submitted by Praveen Nayyar, one of the GPA-holders, to the appellant for and on behalf of the original owners requesting for permission for change in the land use of the property in question from residential to commercial. Permission was sought to put up a multi-storeyed complex. It seems that the appellant vide different communications asked Respondent 1 to produce a certified copy of GPA dated 19-5-1980 executed in his favour and cancellation of the general power of attorney in favour of B.L.N. Sastry. The requisite information was not supplied. Respondent 1 was informed by the appellant by four different communications that since he had failed to furnish a certified copy of GPA dated 19-5-1980 and also failed to furnish the information regarding cancellation of GPA in favour of B.L.N. Sastry, his application for change of land use could not be considered/reconsidered.

6. Respondent 1 filed Writ Petition No. 4695 of 1996 in the High Court of Delhi with the following prayers:

"(a) that a writ in the nature of mandamus and/or any other appropriate writ/order or directions setting aside and/or quashing the policy of the respondents as contained in the guidelines dated 11-1-1995 or any other guidelines of the respondents to demand conversion charges and revision of ground rent as a condition to granting permission for construction of multi-storeyed commercial complex under lease deed, dated 8-2-1939 in respect of 27, Kasturba Gandhi Marg, New Delhi, be issued;

(b) that a writ or mandamus or in the nature of mandamus and/or any other appropriate writ/order/directions, directing the respondents to permit the petitioner for redevelopment/conversion of the property bearing No. 27, Kasturba Gandhi Marg, New Delhi into a multi-storeyed building without demanding any conversion charges or revised ground rent, be issued;

(c) that in the alternative a writ or mandamus