A lease granted by the Government to lessees, deemed a Government grant under applicable statutory provisions, is exempt from compulsory registration under certain conditions.

1. Both the petitioners i.e. Power Grid Corporation of India Limited (for short ' Power Grid' ) and National Thermal Power Corportion Limited (for short ' NTPC' ) are Public Sector undertakings. They have preferred the present writ petitions seeking quashment of the orders passed by the State authorities directing them to execute the lease and get it registered in accordance with the provisions of the Registration Act, 1908 (for short ' the Registration Act' ). The petitioners have further prayed for restraining the respondents from charging or deducting the amount of registration fees and stamp duty.

2. The petitioner Power Grid has been allotted Government land admeasuring 53.68 acres at Village Janjgiri, R. I. Circle Ahiwara, Tehsil Damdha, District Durg vide communication dated 20-10-1997 on payment of premium of Rs. 76,74,545/- and annual rent of Rs. 5,75,591/-.

3. The petitioner NTPC has been granted the Government land admeasuring 604.78 acres situated at villages Lata, Sumedha, Kumgari, Pandaripani, Dhanras and Ghorapat, Tehsil Katghora, District Bilaspur (now Korba) vide State Government - s letter dated 15/21-1-1998 for construction of second stage of fly ash dam on payment of premium of Rs. 2,16,36,155/- and annual rent of Rs. 16,21,806/-.

4. After payment of the premium amount and deposit of the annual rent, the petitioners have been handed over possession of the land and both the petitioners have executed the work for which the land has been allotted.

5. By the impugned communications, the State Authorities are insisting that the petitioners should get the lease deed executed and registered in accordance with the provisions of the Registration Act and for that they should make payment of registration fees and stamp duty as required under the law.

6. The issue raised before this Court is whether - (i) the petitioners are beneficiary of a Government grant within the meaning of 'grant' under the Government Grants Act, 1895 (for short 'the GG Act') read with S.181 and S.182 of the Chhattisgarh Land Revenue Code, 1959 (for short 'the CGLRC'); and (ii) whether the said grant or lease is not compulsorily registerable by virtue of S.17 (2) (vii) read with S.90 of the Registration Act?

7. Petitioners have argued that by virtue of above referred provisions, the respondents are not justified in compelling the petitioners to get the lease deed executed and registered, wheres learned counsel appearing for the State has argued that the land has been granted under the provisions of the Revenue Book Circular and not under the CGLRC, therefore, it is not a 'Government grant' and, as such, it is compulsorily registerable.

8. The GG Act was enacted with an object to explain the Transfer of Property Act, 1882 (for short ' the TP Act - ) so far as relates to grants from the Government and to remove certain doubts as to the powers of the Government in relation to such grants. The object further states that WHEREAS doubts have arisen as to the extent and operation of the TP Act and as to the power of the Government to improve limitations and restrictions upon grants and other transfers of land made by it or under its authority, and it is expedient to remove such doubts, the Act is enacted.

9. S.2 of GG Act provides that nothing contained in the Transfer of Property Act, 1882, shall apply or be deemed ever to have applied to any grant or other transfer of land or of any interest therein heretofore made or hereafter to be made by or on behalf of the Government to, or in favour of, any person whom