Compensation for land under a contractual lease resumption is limited to structures, not market value, as established by the lease agreement, distinguishing it from statutory acquisition.

JUDGMENT

ANIL KSHETARPAL, J.

1. With the consent of learned counsel for the parties, the present batch of matters, comprising five Letters Patent Appeals and one Writ Petition, all arising out of a common factual background and interlinked orders, are being disposed of by this common judgment.

2. The principal questions which arise for consideration in the present batch of matters concern the nature and character of the leasehold rights of the Respondent-lessee in respect of public land; the effect and enforceability of the resumption clause contained in the lease deed; the entitlement, if any, of the lessee to conversion of the leasehold rights into freehold under the applicable policy framework; and the legality of the determination of compensation and valuation undertaken pursuant to the directions of this Court, particularly in a situation where substantial portions of the leased land have already been resumed for public purposes.

FACTUAL MATRIX

3. In order to comprehend the issues involved in the present batch of matters, it is necessary to notice the relevant and largely undisputed factual background, which forms the common substratum of all the Appeals and the Writ Petition.

4. In terms of Resolution No. 15 dated 10.03.1948, an area admeasuring 0.68 acres (approximately 3,300 sq. yards/2,759.13 sq. meters) at the site in question was leased to National Cold Storage and Refrigeration Ltd. [hereinafter referred to as „NCSRPL‟] for a period of nine years; however, the said lease was not confirmed by the Chief Commissioner, Delhi. Thereafter, the competent authorities considered grant of a fresh lease over an area admeasuring 0.54 acres.

Pursuant to assessment of market value by the Revenue Assistant, Delhi, a lease deed dated 06.09.1951 in respect of land measuring 0.54 acres (2614 sq. yards/approximately 2185.23 sq. meters), situated at the junction of G.T. Road and Boulevard Road, was executed in favour of NCSRPL for a period of 30 years, with an option of renewal for two further terms of 30 years each, subject to the stipulated terms. As per the lease deed, the land was to be utilised only for the purpose of running a cold storage, though activities relating to an ice factory and ice-cream manufacturing were also permitted. Any use for a purpose other than those permitted rendered the lease liable to determination. Clauses I(xi), III(c) and III(d) of the lease deed read as under:

“1. (xi) if during the period of the lease the premises are required for a public purpose or for administrative purposes by the Government the Lessor shall be at liberty to take possession of the land together with all buildings, structures and appurtenances and the Lessees shall be entitled to compensation on respect of the buildings and structure on the demised land at the time when notice to the effect that the said land required for such purpose as aforesaid has been served on the Lessee, and the Lessee will not be entitled to any compensation for his interest in the said land except refund of a proportion of the premium which in case of dispute shall be d