The court held that the lessor was entitled to demand additional premium and interest for the change of purpose, but the rates should be based on the land values prevailing in 1970, when the petitioners first applied for permission, and not on the higher rates prevailing in 1972. The court also held that the NDMC was justified in rejecting the plans in the absence of the lessor's consent, as required by section 193(2) of the Punjab Municipal Act, 1911.

( 1 ) IN Lutyens s New Capital of Delhi, which he conceived and planned in the nineteen twenties he set apart areas for commercial purposes and residential purposes separately. Keeling Lane was a residential area in Sir Edwin Lutyens s architectural plan. After independence it was renamed as Tolstoy Marg after the famous Russian novelist. This case is concerned with a building situated at 9, Tolstoy Marg.

( 2 ) IN 1961 the Master Plan, a statutory plan under the Delhi Development Act, 1957, was published by the Delhi Development Authority. This plan modified in many ways the ruling conception and design of Lutyens s New Delhi. The plan is based on "land use. " Some land previously used for residential purpose was declared as commercial. Tolstoy Marg was declared a commercial area. In 1966 a zonal plan for this area was published.

( 3 ) THE petitioners are the lessee of 9 Tolstoy Marg. There is a lease deed dated 19th March- 1931 between the Secretary of State for India in Council (the lessor) of the one part and the petitioners (the lessee) of the other part. To the Secretary of State for India, the President of India succeeded as the lessor. Clauses 5 and 6 of the lease deed are material for the purposes of this case :

" (5) The Lessee will not without such consent in writing of the Chief Commissioner of Delhi or duly authorised officer as aforesaid erect or suffer to be erected on any part of the said demised premises and building other than and except the buildings erected thereon at the date of these presents.

(6) The Lessee will not without such consent as aforesaid carry on or permit to be carried on the premises any trade or business whatsoever or use the same or permit the same to be used for any purpose other than that of a residence or do or suffer to be done thereon any act or thing whatsoever which in the opinion of the Chief Commissioner of Delhi may be an annoyance of disturbance to the Secretary of State or his tenants in the New Capital of Delhi. "

( 4 ) AFTER the Master Plan was published in 1961 the petitioners on 18th March, 1963 applied to the Land and Development Officer (L. and D. O.), who acts on behalf of the lessor, for terms on which the lessor would allow change of use of the land from residential to commercial, In the letter they said :

". . . . . . As per the Master Plan, prepared by the I Government Development Authority and approved by the Central Government under the Delhi Development Act, 1957, our premises have been declared as a commercial area. . . . We propose to construct a multistoreyed building, consisting of basement, ground floor and office floors above.

WE shall be thankful if you will kindly intimate us the terms, if any, applicable for conversion and use the buildings, in this area, from residential to commercial,. . . . . . . . . . "

( 5 ) TO this. letter the L. and D. O. wrote to the petitioners on 2nd May 1963 that till the Zonal plan is finalised, the petitioners request connot be considered. On 17th May 1963 the petitioners addressed another letter to the L. and D. O. repeating their request to him to intimate the terms for conversion of the building from residential to commercial. "we shall submit the plans", they wrote "for the multi-storeyed building only after the Zonal Plan is finalised. "

( 6 ) ON 24th July 1963 the L. and D. O. wrote to the lessee in reply to their letter dated 17th May 1963 the following letter : "dated the 24th July, 1963 From P. D. Garg, Deputy Land and Development Officer. To Shri Satya Narain Prakash Punj, 9, Keeling Road, New Delhi. Sir, I am to refer to your letter No. REO-4-B/339 dated the 17th May. 1963 on the subject cited above and to request you to submit to this office the plans of the proposed cons- 575 N. D. M. C. AND OTHERS truction. On receipt thereof the charges for additional construction and change of purpose will be intimated to you. Yours faithfully, sd/- (P. D. Garg) Deputy Land and Development Officer. "

( 7 ) T