VIBHU BAKHRU, J.

1. The present petitions have been filed by shopkeepers in Sarojini Nagar market seeking quashing of Demand Notices (hereafter ‘impugned demand notices’) issued by North Delhi Municipal Council (NDMC) directing the petitioners to deposit conversion charges for conversion of first floor of the properties at Sarojini Nagar market from residential area to commercial area.

2. As the petitions have similar facts and common principal issues were raised, the petitions were heard together and petition W.P.(C) 9462/2009 was considered as the lead matter.

3. Briefly stated, the relevant facts of petition W.P.(C) 9462/2009 necessary to deal with the controversy are as follows:

3.1 It is relevant to note that in the notifications, communications etc. issued by the Government of India, the first floor of the Sarojini Nagar Market has been referred to as ‘Flat(s)’ and the ground floor has been referred to as ‘Shop(s)’. The same terminology has been followed herein.

3.2 Sarojini Nagar market came into existence around the year 1951 and shops were allotted to the shopkeepers on licence basis. In 1979, administrative and complete control of Sarojini Nagar market was transferred to Land & Development Officer, Ministry of Urban Development (hereinafter ‘L&DO’) and lease deeds were executed in favor of the shopkeepers.

3.3 By an office order dated 22.03.1983 bearing no.7/1983, the Ministry of Urban Development, Land and Development Office, condoned certain breach mentioned therein including “Use of top floor of commercial premises for commercial purposes even if the plans for the top floor were sanctioned for residential purposes”.

3.4 Two separate lease deeds dated 27.07.2000, were executed in favor of the Petitioner-Smt Asha Rani, with respect to the Shop and Flat of the property in question, being property No. 13, Sarojini Nagar Market, New Delhi (hereafter the ‘said property’), including the attributable land beneath the said property.

3.5 The lease deed executed in respect of the Shop specifically indicated that 2/3rd of the land underneath the said property was attributable to the Shop and 1/3rd of the land underneath building was attributable to the Flat.

3.6 Thereafter, by Conveyance Deeds dated 27.07.2000 and 28.08.2000, the Shop and Flat respectively of the said property were converted to freehold.

3.7 In June 2003, the Ministry of Urban Development & Poverty Alleviation, Land and Development Office, issued a Brochure titled ‘Conversion from Lease Hold into Free Hold’ wherein it provided for the ‘Formula for Calculation of one time conversion Fee for various Industrial, Commercial and mixed land use properties’ as under:-

Area X (Notified land rates Commercial/Industrial on the date of 100 application) X 10/100

3.8 In 2004, Smt Asha Rani and other shopkeepers of Sarojini Nagar market, applied for conversion of lease hold plot to free hold. By a letter dated 14.10.2004, the Public Relation Officer, Ministry of Urban Development, Land and Development Office – in response to an enquiry made by the President, Sarojini Nagar Market Shopkeepers Association (Regd.) – stated that “the conversion fee for conversion of lease hold into freehold of the flats of Sarojni Nagar Market is calculated based on the notified commercial rates of the area as on the date of application. The present rates are Rs.24,100/- Per Sq. mtr.”

3.9 Subsequently, two separate Conveyance Deeds dated 19.10.2004 and 29.04.2006, were executed with respect to the Shop and Flat of the said property respectively, including the attributable land beneath the said property.

3.10 Thereafter, by notification dated 24.03.2006 the Sarojini Nagar market, comprising of the Shops and Flats, was transferred from L&DO to New Delhi Municipal Council (NDMC) with effect from 01.04.2006 on “as is where is” basis.

3.11 Smt Asha Rani, by a letter dated 16.01.2008, and other shopkeepers of the Sarojini Nagar market by differently dated letters, applied to NDMC for change of use of F