Prathiba M. Singh, J.

1. The question that has arisen in the present appeal is as to whether the Land & Development Office (hereinafter, ‘L&DO’) can impose damages, at the time of conversion from leasehold to freehold, in respect of a property constructed prior to 1952, on the ground that the said property is completely unauthorized due to non-furnishing of sanctioned plan. The construction in this case was done during a period prior to the DDA and the MCD coming into existence.

2. Most of the facts in this case are not in dispute. The suit property is Cottage Plot No.8, South Patel Nagar, New Delhi admeasuring 1000 Sq. Yards (hereinafter ‘suit property’). The original lease deed dated 18th May, 1952 was executed between and on behalf of the President of India and Shri Diwan Chand Behl and Dr. Mrs. Leela Bai Behl. The salient terms and conditions of the said lease deed are under:

The lease was for a period of 99 years subject to revision of rent after a period of 20 years;

The lessee covenanted to erect upon the land during the said term and maintain a good and substantial building, according to the local byelaws and regulations framed by the local authorities, having jurisdiction in the area, which included the DIT.

The lessee was required to obtain plans sanctioned from the local authority and not make any alternation or additions without obtaining permission in writing. This lease deed was registered on 4th August, 1952.

3. The current holders of the property i.e. the Respondents/Plaintiffs (hereinafter, ‘Plaintiffs’) purchased the suit property on 19th June, 1989. There is no dispute as to the fact that they are the current owners. Between 1952 to 1989 L&DO conducted various inspections of the suit property. One such inspection report dated 13th July, 1971 records that the inspection was conducted without the sanction plans and hence the plans were requested from the then owners. In 1976, another inspection by L&DO had revealed that a garage in the rear portion was used by one Amba Tent House. According to the L&DO, several office orders were issued on 3rd August, 1977, 13th February, 1978, 4th August, 1978, which were public notices asking the public at large to re-submit the building plans of the construction standing at site as on 31st December, 1975 within a period of 1 month. Thereafter, it is pleaded that circular no. 4/78 was also issued seeking the submission of the building plans of the existing construction.

4. It is L&DO’s case that the owners never chose to submit the sanctioned building plans. On 22nd February, 1980 another inspection was carried out by the L&DO and Amba Tent House had continued to exist. Since there was no sanction plan, which was produced, after inspecting the entire 2½ storey building on site, the L&DO treated the entire building as unauthorised.

5. On 3rd April, 1989 it was again reported that there was a 2-1/2 storey building on site, and sanction plans may be called for. On 18th July, 1989, the L&DO had filed records – “in this case, the party was asked to furnish the certified copy of the sanction plan, but the party has not furnished the same till now. If approved, we may close the case under intimation to the party……………….”

6. On 12th September, 2006, in response to the letter dated 14th January, 2005, one of the owners, who purchased 50% of the property submitted the original death certificate of a previous owner but also stated that “the copy of the plan is not traceable”. Another inspection report conducted on 14th July, 2010, showed that the mis-user had been removed.

7. On 24th February, 2011, the current owners of the property i.e., Lachami Narain (HUF) and its members as also the sons of Shri Ladha Ram applied for conversion of the leasehold property to freehold. The conversion charges of Rs.13,03,050/- were duly deposited by them. Another inspection was carried out on 13th