IMPORTANT POINT
The court affirmed that lease rent fixation by the government is an administrative function, and increases based on market conditions are lawful unless proven arbitrary.

JUDGMENT :

Heard learned counsel for the petitioners, Shri S.B. Pandey, learned D.S.G.I. assisted by Shri Raj Kumar Singh, learned counsel for the respondent Nos. 1 and 3 and Shri Sanjeev Singh, learned counsel for respondent No. 2.

2. This petition has been filed with the following prayers :

''(i) Issue a writ, order or direction in the nature of certiorari quashing the impugned demand notices dated 8.12.2023 (Annexure 2) and 19.2.2024 (Annexure 3) issued by the Defence Estates Officer, Lucknow Circle, Lucknow to the extent, it seeks to recover an amount of Rs. 91,63,857/- from the petitioners in respect of an area of 3.36 acres, situated over Survey No. 93/2 Cator House 236 M.G. Road Lucknow Cant.

(ii) Issue a writ, order or direction in the nature of certiorari 'summoning and quashing the minutes of the meeting of the Cantonment Board, Lucknow dated 25.9.2023 in so far as it increases the Standard Table of Rent (STR) of Zone-l, to Rs. 566.70/- per sq. meter w.e.f. 1.7.2023 to 1.7.2024.

(iii) Issue a writ, order or direction in the nature of mandamus declaring Clause-B(a)(iii) of the Policy dated 10.3.2017 as extended till 31.12.2024, in so far as it directs recovery of lease rent on the basis of Standard Table of Rent (STR) prevailing on the date of expiry of lease as ultra vires to the provisions of Rule-16 r/w rule 28 and also Schedule VIII of the Cantonment Land Administration Rules, 1937 and Article 14 of the Constitution of India.

(iv) Issue a writ, order or direction in the nature mandamus directing the respondents not to take any coercive measures against the petitioners in pursuance to the impugned demand notices dated 8.12.2023 and 19.2.2024 issued by the Defence Estates Officer, Lucknow Circle, Lucknow and further direct the respondents to accept the lease rent in respect of Survey No. 93/2 Cator House 236 M.G. Road Lucknow Cant. from the petitioner at the rate of Rs. 50/- per annum.''

3. The learned Counsel for the petitioners has submitted that a lease deed was executed on behalf of the Central Government on 15.5.1934 in respect of a premises described as 'Cator House, 236, M.G. Road, Lucknow Cantonment' in favour of Shri Shiv Charan, for a period of 30 years with effect from 25.10.1933, which was renewable up to 90 years. The said property has been mentioned at Survey No. 93/2 and comprises of buildings known as Cater house and Shiv Kutir. The petitioners are in actual physical possession of Shiv Kutir and are residing therein and they are in de-jure possession of the rest of the property (Cater House) which is in occupation of the respondents, as it was let out to the Governor General in Council by Smt. Lalto Devi, wife of Shri Shiv Charan at a monthly rent of Rs. 220/- by a lease deed dated 21.11.1941. The entire demised premises measures 13,597.44 Sq. Mts. On 10.3.2017, the Central Government framed a policy providing for an extension of expired/expiring leases and in pursuance of such policy, the lease of the demised premises was extended initially up to 31.12.2019 and thereafter it was again extended on 15.2.2021 up to 31.12.2021 or till finalization of a new policy, whichever is earlier. The policy dated 10.3.2017 was further extended beyond 31.12.2022 for one year i.e. till 31.12.2023 or till finalization of a new policy, whichever is earlier. The lease dated 15.5.1934 in favour of the predecessors of the petitioners, had expired on 24.10.2023 and in pursuance of the policy dated 10.3.2017 issued by the Central Government as extended from time to time, the petitioners have been allowed to occupy the demised premises till date.

4. The Cantonment Act 1924, under which the initial lease deed was executed, has been repealed by the Cantonment Act 2006. Section 125 of the Act of 2006 empowers the Central Government to make rules to provide for conditions on which properties vested in a Cantonment Board may be transferred by sale, mortgage, lease or exchange. Under Section 63 of the Act of 2006, the Board has to manage