“Ex- gratia literally means out of grace. It is a term applied to anything accorded as a favour, as distinguished from that which may be demanded ex debito i.e. as a matter of right. Writ of Mandamus can be issued where there is a statutory duty imposed and there is a failure to discharge the statutory obligation.” stated Justice Sachin Datta of Delhi High Court, who quoted Black’s Law Dictionary’s definition of ‘ex-gratia payment’ in his order in the case of Bikaner House, that was at one time the property of erstwhile late Maharaja Dr. Karni Singh.

Dismissing the petition filed by the heir of late Maharaja Dr. Karni Singh seeking arrears of rent from Central Government for the Bikaner House property in Delhi , the court determined that it was unable to find any legal basis in support of the petitioner’s assertions/regarding entitlement to continued ex-gratia payment/s even after the demise of Dr. Karni Singh.

Brief background of the case involved the ‘Bikaner House’, a royal estate of Late Maharaja Karni Singh, ex-ruler of Bikaner. The property located in New Delhi was undertaken to be developed by Maharaja Ganga Singh(predecessor to Karni Singh) between 1922 and 1949. Subsequently, after the integration of princely states into the Indian Dominion, Bikaner House was included in the official document titled “Inventory of the Private Properties of the Ruler of Bikaner.” Thereafter, the property was taken on lease by the Ministry of States/Government of India (respondent no.1) from the Government of Rajasthan (respondent no. 2) and Dr. Karni Singh, on 15.03.1950. According to this arrangement, 67% of the rent was to be paid to the Government of Rajasthan, while 33% was allocated to the Maharaja of Bikaner, Dr. Karni Singh.

The Ministry of States/Government of India communicated on 20.10.1951 that one-third of the rent from the property would be released to the Maharaja’s Estate. Payments were made regularly until 1986 to the Government of Rajasthan and until 1991 to the Late Maharaja who died in 1988.

After the demise of the Maharaja his daughter, the petitioner, requested the release of rent in four equal installments for the legal heirs. It was the petitioner’s case that she continued to follow -up with Respondent 1 through numerous letters. It was submitted that the probated will had been submitted in 1991 but Respondent 1 insisted on receiving it again thereby delaying the process.

It was also submitted that in 2005, Respondent No.1, for the first time requested for a ‘No Dues Certificate’ from respondent No.2 which the petitioner objected to on grounds that there were no dues owed by her to Respondent No. 2.

In 2013, Respondent 2 filed a suit in the Apex Court seeking possession of the Bikaner house and in its order the court directed respondent no.1 to vacate the property which was duly undertaken.

The petitioner submitted that despite the vacation of the premises by December 2014, the arrears of rent from October 1991 to December 2014 remained unpaid, and the ‘No Dues Certificate’ was still not issued by the Rajasthan Government.

The court while dismissing the plea highlighted that the petitioner’s entire claim is based on a letter dated 20.10.1951, which indicates that Respondent 1 had agreed to grant one-third of the rent to the petitioner on an “ex gratia basis”.

The Court noted that 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. Mentioning that the Centre continued to pay the Late Dr Karni Maharaj one third of the rent while he was alive, the court stated that this was an ex- gratia payment . After the death of Dr. Karni Singh, his heirs cannot claim these payments as a matter of legal right.

Case Title: Estate Of Maharaja Dr Karni Singhji Of Bikaner Through Executrix v. Union Of India And ANR

Adv For Petitioner: Mr. Sriharsha Peechara, Akshat Kulshreshtha, D.S.Bhanu

Adv For Respondents: Mr. Rakesh Kumar, CGSC

Mr. Sunil for UOI