S. Ravindra Bhat, J.

( 1 ) THE present appeal, under letters patent, is directed against the judgment and order of a learned Single Judge dated 28. 4. 2004 in WP (C) 272/2003. By the judgment, the writ petition of the respondent was allowed, with certain directions.

( 2 ) THE issue involved in this appeal is with regard to the power of the appellant to insist upon payment of damages as a pre-condition for conversion of leasehold property into freehold.

( 3 ) THE predecessor in interest of the respondent, late Shri Lakshmi Chand was the perpetual lessee of Plot No. 1 Block 90, 1, at Jain Mandir Road, New delhi further to a lease deed executed on 15. 3. 1922. A two-storeyed building was constructed on that plot ("the plot") in 1935. On the death of Lakshmi chand, the property and the plot was mutated as per letter dated 6. 6. 1963 in the name of the petitioner. Later, apparently, the respondent made certain additional constructions as per the Resolution of the New Delhi Municipal Committee but the appellant, Land and Development Office, Government of India, which was the perpetual lessor refused to grant permission for the additional construction and further refused to regularise the

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