Court Rejects Claim of Irrevocable License Under Indian Easements Act, Emphasizing Conditional Nature of License and Obligations to Construct Composite Office Building
In a significant ruling delivered on March 20, 2026, the Delhi High Court dismissed the writ petition filed by United News of India (UNI), upholding the cancellation of its land allotment at 9, Rafi Marg, New Delhi. The Court found that the petitioner’s persistent failure to comply with the conditions attached to the allotment, spanning over four decades, justified the cancellation of the license granted by the Land & Development Office (L&DO), Union of India.
The land at 9, Rafi Marg was originally allotted to UNI along with other news media institutions in 1979 for constructing a composite office complex. The allotment came with clear conditions, including the obligation to complete construction within two years of possession. Subsequent allotment letters in 1986, 1999, and 2000 reiterated the requirement for construction and specified that leasehold rights would only be granted after satisfactory completion of the building.
Despite multiple extensions and modifications in the allotment terms, the petitioner failed to initiate or complete the construction of the composite office building. UNI repeatedly cited lack of clarity regarding the construction agency and land-use conversion, and expressed financial constraints, admitting its inability to participate in the construction project. Meanwhile, the Press Council of India (PCI), a co-allottee with a larger share of the land, remained largely in notional possession.
The Court noted that the petitioner’s rights were limited to a conditional license and that no lease deed was ever executed. UNI’s contention that it had acquired irrevocable rights under Section 60(a) and 60(b) of the Indian Easements Act, 1882-citing transfer of a pre-existing bungalow and construction of a boundary wall—was firmly rejected. The Court held that such a license, being performance-bound and revocable, does not confer proprietary or leasehold rights merely by construction of ancillary structures or payment for the superstructure.
The judgment emphasized that the license was granted strictly for the purpose of constructing a composite office building, and prolonged non-compliance with this condition renders the license liable to revocation. The Court also highlighted the importance of timely enforcement of conditions attached to public land allotments to prevent misuse and ensure efficient utilization of valuable public assets.
In its conclusion, the Court directed the authorities to take immediate possession of the land and ensure its proper use, while refraining from commenting on the rights of the Press Council of India. The Court urged the Land & Development Office and Ministry of Urban Development to exercise due diligence and institutional rigor in enforcing conditional allotments to prevent undue delays in public land utilization.
This ruling reinforces the principle that licenses over public land are conditional and revocable, and that licensees cannot claim irrevocable rights without fulfilling their primary obligations. It also serves as a stern reminder to public authorities to act promptly against breaches of license conditions to protect public interest.
Bottom line:-
Prolonged non-compliance with the conditions of a land allotment license justifies its cancellation. A licensee cannot claim irrevocable rights under Section 60 of the Indian Easements Act, 1882, when the license is performance-bound, conditional, and contractually revocable.
Statutory provision(s): Indian Easements Act, 1882 Sections 60(a), 60(b)
United News of India v. Union of India, (Delhi) : Law Finder Doc id # 2869714
