JUDGMENT :

Sandeep V. Marne, J.

1. Rule. Rule made returnable forthwith. With the consent of the parties, petitions are taken up for final hearing.

2. By this petition, petitioner challenges latter dated 27th June 2022 by which City and Industrial Development Corporation of Maharashtra Ltd. (CIDCO) has terminated the allotment letter and forfeited the earnest money deposit in respect of Plot No.3-1C, Sector 18, Vashi, Navi Mumbai. Cancellation of allotment of plot is owing to Petitioner’s failure to pay the agreed installments of lease premium and Delayed Payment Charges (DPC) within the permissible period. During pendency of the Petition, Petitioner has paid the entire lease premium together with DPC. It now wants to retain the allotment by seeking condonation of delay in payment of amount of lease premium.

3. Brief facts of the case are that a tender was floated by CIDCO bearing scheme No. MM-II/05/2019-2020 for lease of various plots including Plot No. 3-1C admeasuring 3846.3200 sq. mtr. situated at Sector 18, Vashi, Navi Mumbai. Petitioner submitted its bid and paid Earnest Money Deposit (EMD) of Rs. 3,56,79,618/-. Petitioner quoted rate of Rs. 1,36,000/- per sq. mtr. and the total lease premium came to Rs. 52,30,95,520/-.

4. Petitioner was selected as the highest bidder and an allotment letter dated 13th February 2020 was issued in its name. After adjusting the amount of EMD, Petitioner was called upon to pay the balance lease premium of Rs.48,74,19,902/- in two equal installments. The first installment of Rs. 24,37,09,951/- was payable on 28th March 2020 and second installment was of Rs.24,37,09,951 was payable on 27th April 2020. Petitioner could not pay either of the installments within the stipulated time, apparently on account of outbreak of Covid-19 pandemic. Petitioner applied for extension of time to pay the first installment vide letter dated 8th June 2020. CIDCO granted extension till 28th June 2020 for payment of first installment. It was informed that failure to pay the installment alongwith DPC would result in cancellation of the allotment letter. On 26th June 2020, petitioner once again applied for extension relying upon various orders issued by the Government of India and State Government. On 29th June 2020, CIDCO communicated to Petitioner that it had committed default and necessary action was being initiated.

5. In the meantime, some of the allottees filed various writ petitions before this court seeking extension of time for payment of installments of lease premium. This court disposed of those writ petitions vide order dated 1st October 2020 directing the Managing Director of CIDCO to decide representations. In compliance with the order passed by this court, the Managing Director of CIDCO passed order dated 4th December 2020 granting extension of time for payment of installments by 9 months. Waiver of DPC was also granted during the period from 25th March 2020 to 24th December 2020. After 25th December 2020, full DPC rates as per prevailing policy of CIDCO were made applicable. The Board of Directors of CIDCO as well as the State Government approved the decision taken by the Managing Director. CIDCO thereafter issued letter dated 1st June 2021 to petitioner conveying it that the online payment gateway was opened and that it would be at liberty to deposit the lease premium with DPC within one month, failing which the allotment letter would be canceled. Petitioner however did not make the payment even within the period up to 30th June 2021. Instead, it addressed letter dated 28th June 2021 (received by CIDCO on 7th July 2021) seeking extension of time up to 90 days. Petitioner did not receive any response and therefore filed the present petition on 3rd September 2021 seeking extension of time for payment of lease premium. During pendency of the present petition, CIDCO passed order dated 27th June 2022 cance