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Bikaner House in New Delhi was developed by Maharaja Ganga Singh between 1922 and 1949. After India’s integration of princely states, it was classified as state property. In 1950, the Government of India informally leased it from the Government of Rajasthan and Karni Singh on a monthly tenancy. The rent was Rs. 3,742 per month, with 67% allocated to Rajasthan and 33% to the Maharaja. Payments continued regularly to Rajasthan until 1986 and to the Maharaja until 1991.
The Delhi High Court, recently, in a petition filed by Rajyashree Kumari Bikaner seeking release of outstanding arrears of rent held that ex-gratia payments are discretionary in nature and cannot be enforceable as a matter of legal right.
The bench of Justice Sachin Datta held, “ex gratia payments are discretionary and are not enforceable as a matter of legal right. Such payments are made voluntarily by the paying party and cannot be claimed as an entitlement”.
The Estate of Late Maharaja Karni Singh, represented by his daughter, Rajyashree Kumari Bikaner, filed a petition against the Union of India. Rajyashree sought the release of outstanding arrears of rent for Bikaner House from October 1991 to December 2014 and requested that the Union not insist on a No Dues Certificate from the Government of Rajasthan for the release of funds.
Karni Singh passed away in 1988, after executing a will that designated Bikaner House as part of his residuary estate. In 1991, Rajyashree informed the Union of his demise and requested the release of rent in four equal installments for the legal heirs. However, the Union misinterpreted this request as a dispute among the heirs and stopped making payments.
Despite numerous follow-ups by Rajyashree, including the submission of the probated will in 1991, the union insisted on additional documentation, further delaying the process. In 2005, the Union, for the first time, demanded a No Dues Certificate from respondent no. 2 (Government of Rajasthan), even though Rajyashree had no outstanding dues.
In 2013, the Government of Rajasthan filed a suit in the Supreme Court seeking possession of Bikaner House. The Court, by order dated December 1, 2014, directed Union to vacate the property, which was done on December 17, 2014. Despite vacating the premises, the arrears of rent remained unpaid, and respondent no. 2 did not issue the requested certificate.
After reviewing the submissions, the court found no merit in Rajyashree’s claims. It was observed that Rajyashree failed to establish any legal right over the property or the alleged arrears of rent. The court noted that the property had been classified as state property and that respondent no. 2 had absolute ownership.
Additionally, the court ruled that the one-third rental payment made to Dr. Karni Singh was an ex gratia payment, which was discretionary and not legally enforceable. Since such payments were voluntary, they could not be claimed as an entitlement by the heirs. Given these findings, the court dismissed the petition, stating that the petitioner had no legal basis for claiming continued ex gratia payments after the demise of Karni Singh.
For Petitioner: Advocates Sriharsha Peechara, Akshat Kulshreshtha and D.S. BhanuFor Respondent: Standing Counsel Rakesh Kumar with Advocate SunilCase Title: Estate Of Maharaja v Union (2025:DHC:1183)
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