( 1 ) BY way of this writ petition the petitioner seeks a declaration that the sale of property bearing No. C (C)-18, Kalkaji, New Delhi, purchased by the petitioner from the President of India by way of registered Sale Deed dated 5. 4. 1989 after its acquisition under Sections 269ud and 269ue of the Income-tax Act, 1961 (hereinafter the Act , for short) is a first sale and full ownership rights, title and interests vest in the petitioner and further seeks quashing of paras 3, 4 and 5 and portion of A, 2a in para 1 of the letter dated 11. 1. 1991, issued by the Assistant Settlement Commissioner for and on behalf of the President of India demanding enhanced ground from Rs. 9. 00 to Rs. 72,409. 00 per annum. The petitioner further seeks a declaration that the ground rent demanded is in abuse and excess of authority and offends Articles 14 and 300a of the Constitution.

( 2 ) ONE Surjit Singh Sahni s/o Sh. Jai Singh acquired rights in immovable property bearing plot No. l8 Block No. C (C) Kalkaji, New Delhi measuring 866 square yards from the Central Government through Settlement Commissioner, Government Built Property, New Delhi vide auction held on 4. 12. 1955. A lease deed dated 6. 8. 1959 was executed between the President of India and Surjil Singh Sahni and registered in the office of the Sub Registrar on 19. 8. 1959. For the purpose of the present petition the relevant Clauses of the lease deed are extracted and reproduced as under: (b) The lessee shall before any assignment or transfer of the said premises hereby demised or any part thereof obtain from the Lessor approval in writing of the said assignment or transfer and all such assignes and transferees and the heirs of the Lessee shall be bound by all the covenants and conditions herein contained and be answerable in all respects therefor. (c) The Lessee can transfer the land after obtaining the permission of the Lessor aforesaid and the Lessor will not share any unearned increment in the value of the land being the different in the premium paid by him to the Lessor and the market value of the land then prevailing) for permitting such transfer. The Lessor will, however, be entitled to claim and recover the unearned increment in the value of the land in the event of any subsequent transfer of the land by a transferee. . . . . In the case of any subsequent transfers the Lessor shall have the pre-emptive right to purchase the premises as hereby demised and all the buildings and structures standing thereon, after deducting 50% of the unearned increment as aforesaid. (d) The Lessor shall also have the right to revise the annual ground rent at the time of any assignment or transfer of the premises hereby demised subsequent to the First transfer or assignment as aforesaid. The revised ground rent payable in such case shall be at the rate of OB 2-1/2% of the value of the land at the time of such transfer. Provided further that in the case of any transfer or assignment subsequent to the First transfer or assignment the Lessor shall also have the right to revise the ground rent hereby reserved on the First day of January of the year following the year in which thirty years from the date of such subsequent transfer or assignment shall be complete and thereafter at the end of each successive period of not less than thirty years.

( 3 ) SH. SURJIT Singh Sahni gifted his rights in the said plot of land to Sh. Surinder Singh Sahni, his son. The gift deed was registered on 2. 3. 1960 by the Sub Registrar.

( 4 ) SH. Surinder Singh Sahni, entered into an agreement to sell the said property to the petitioner, M/s. S. K. Bansal Contractors and Engineers on 7th September, 1987. A statement was furnished under Section 269 UC of the Income -tax Act to the appropriate authority. The appropriate authority exercised its powers under Section 269 UD of the Act and made an order on 6. 11. 1987 for the purchase of the said plot of land by the Central Government.

( 5 ) THE said proper