AIR 2007 DELHI 133
BADAR DURREZ AHMED, J.
Ganga Malhotra v. Land and Development Officer and others.
W. P. 12455 of 2005
Decided On:- 9 -3 -2007.
unearned increase - Lease Transfer Condition - The court held that unless the perpetual lease deed provides for the charging of unearned increase, the respondent cannot impose any such condition for transfer. The lease, being a Government grant, must be interpreted according to its own tenor under the Government Grants Act, 1895.
Fact of the Case:
The petitioner challenged the imposition of a condition requiring the payment of 50% unearned increase for the transfer of a lease property. The lease deed did not contain any provision for the respondent to claim unearned increase.
Finding of the Court:
The court found that the case was entirely covered by previous decisions, which held that unless the perpetual lease deed provides for the charging of unearned increase, the respondent cannot impose any such condition for transfer. The impugned order demanding unearned increase was set aside.
Issues: The main issue was whether the respondent could impose a condition of requiring the petitioner to pay 50% unearned increase at the time of giving consent/permission to the transfer of the lease.
Ratio Decidendi: The court relied on the Government Grants Act, 1895 and previous decisions to establish that the lease, being a Government grant, must be interpreted according to its own tenor, and unless the perpetual lease deed provides for the charging of unearned increase, the respondent cannot impose any such condition for transfer.
Final Decision: The impugned order demanding unearned increase was set aside, and the petition was allowed to that extent. No costs were awarded.
2. The letter impugned in this petition has been issued on 11-3-2005 by the respondent No. 1. By virtue of the said letter the petitioner has been informed that as per Clause 2(11) of the Lease Deed, the lessee is required to obtain permission at the time of assignment or transfer of the premises or any part thereof from the Lessor or the Chief Commissioner of Delhi, or such officer or any part thereof from the Lessor or the Chief Commissioner of Delhi, or such officer or body as the Lessor may authorize on this behalf in writing of the said assignment or transfer. The said Clause is also said to prescribe that, after such permission is given, all such assignees and transferees and the heirs of the lessee shall be bound by all the covenants and conditions therein contained and be answerable in all respects therefor. Citing the above provision of the lease deed the respondent No. 1 has indicated that 50% unearned increase calculated on a predetermined rate amounting to Rs. 10,09,56,339.00 is payable by the petitioner in respect of the transfer of the said property by the petitioner.
3. The petitioner and the other owners namely, respondents Nos. 2 to 16 hold the said property jointly under a perpetual lease dated 16-9-1933 which was made in favour of Mrs. Chandrani Bhagyabhari Kaula (Nee Wanchoo) wife of Mr. Ganga Ram Kaula. The petitioner and the said respondents are the legal heirs of Mrs. Chandrani Bhagyabhari Kaula. The lease, in question, has been placed as Annexure P-1 to the present petition. Clause 2(11) of the Lease Deed which is relevant for the purpose of this case is reproduced hereinbelow :-
"11. The Lessee shall before every assignment or transfer of the said premises hereby demised or any part thereof obtain from the Lessor or the Chief Commissioner of Delhi, or such officer or body as the Lessor may authorize on this behalf approval in writing of the said assignment or transfer and all such assignees and transferees and the heirs of the Lessee shall be bound by all the convenants and conditions herein contained and be answerable in all respects therefore."
4. The learned counsel for the petitioner, with reference to the above-mentioned clause submitted that there is no provision therein for the respondent No. 1 acting on behalf of the lessor, to claim any unearned increase as a condition for permitting transfer of the lease property. He submitted that there is also no other provision or clause in the perpetual lease deed which entitles the respondent No. 1 to claim unearned increase. He further submitted that this issue has been decided and is no longer debatable. He referred to the decision in the case of Sunil Vasudeva and others v. Delhi Development Authority, 34 (1988) DLT 37 : (AIR 1988 Delhi 184) wherein a learned Single Judge of this Court held that such a lease, being a Government grant, would have to be interpreted according to its own tenor under Section 3 of Government Grants Act, 1895. It was further held, interpreting a similar clause in the perpetual lease involved in the case, that there being no condition for grant of any levy, any fee, cess or payment in the lease itself, the DDA (in that case) was not authorised to make any claim for any such charges. The principle is very clear that unless the perpetual lease itself provides for the charging of unearned increase, the respondent by itself cannot impose any condition for transfer. The relevant clause in Sunil Vasudeva's case (supra) read as under :-
"Without first obtaining such consent not to sub-divide the said land or to part with
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