JUDGMENT

Ranjit More, J. - The Petitioner by filing this writ petition under Article 226 of the Constitution of India is challenging the validity of section 4(2) of the Interest Act, 1978 on the ground that the same is ultra vires to the provision of Articles 14 and 19 of the Constitution of India. The Petitioner is also challenging the Circular dated 19th October 2018 and Resolution bearing No.1423 dated 13th July 2017 passed by Respondent No.1 leading to the issuance of instructions on 19th September 2017 insofar as they provide for demand of penal interest amount on the agreed contractual rate of interest under clause 2(a) of the supplementary lease deed dated 29th October 2013. The Petitioner is further seeking direction to Respondent No.2 to compute the interest and penal interest strictly as per the supplementary lease deed dated 29th October 2013. By way of interim relief, the Petitioner seeks direction to Respondent No.1 to issue requisite NOCs / OCs subject to payment by the Petitioner of the balance short fall in payment of each installment of lease premium, which covers interest @ 10% till agreed due dates, and penal interest on delayed payment of each installment amount at the prevailing Reserve Bank of India [for short, "RBI"] prime lending rate.

2. On 1st November 2007 Respondent No.1 invited bids for disposal of land on lease admeasuring 10183.18 sq.mtrs. bearing Plot No.C-66, situated at G-block, Bandra Kurla complex. The purpose of grant of lease was construction of a commercial building with car parking. One M/s. Reliance Industries Limited was declared as the successful bidder and letter of allotment was issued to them on 28th December 2007. On 15th July 2008, a registered lease deed was executed between Respondent No.1 and said Reliance Industries Limited. By February 2013, the basic built up area from ground floor to 9th Floors was constructed. In the year 2013 additional FSI / built up area of 67,000 sq.mtrs. was proposed by Respondent No.1 for use in the same building as one composite structure of 20 floors with various other services to be located on the top of such building. On 29th October 2013, a supplementary lease deed was executed for construction of 10 to 20 floors by utilising additional built up area. Clause 2(a) of the supplementary lease deed deals with contractual obligation about payment of lease premium for additional built up area in installments, simple interest @ 10% upto due dates mentioned therein, and penal interest. On 23rd December 2013, Respondent No.1 approved the assignment of the lease hold interest in respect of the said plot together with the entire development potential by M/s. Reliance Industries Limited in favour of the Petitioner and also gave its consent for assigning the additional built up area of 67,000 sq.mtrs to the Petitioner. Thus, the Petitioner stepped into the shoes of M/s. Reliance Industries Limited and is bound to fulfill the terms of the supplementary lease deed. Various disputes arose, leading to issuance of notices dated 11th February 2014, 23rd December 2014 and 12th September 2017 by Respondent No.1. The Petitioner has already challenged these notices and those are subject matter of Writ Petition No.586 of 2018 wherein Respondent No.1 is restrained from taking any coercive steps against the Petitioner. On 17th December 2018, the Petitioner made an application to Respondent No.1 to issue NOC for transfer of 40,266 sq.mtrs in favour of One BKC Realtors Private Limited. On the very same day, M/s. Space Age Consultants, the liasoning Architect of the Petitioner applied for Occupation Certificate for 7 units aggregating to 2788 sq.mtrs. On 19th December 2018, Reliance Industries jointly with the Petitioner made an application to Respondent No. 1 for NoC for formation of condominium in respect of project One BKC. On 31st December 2018, the Petitioner issued 5 post dated cheques to Respondent No.1 towards remittance of additional built up area lease premium and