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HIGH COURT OF BOMBAY
G. S. KULKARNI, ADVAIT M. SETHNA
Manoj Suresh Pingle – Appellant
Versus
Chief Executive Office Maharashtra Industrial Development Corporation – Respondent
ORDER :
G. S. Kulkarni, J.
1. This petition filed under Article 226 of the Constitution of India has prayed for a relief that the petitioner be granted allotment of a plot of land by respondent No.1-MIDC in lieu of the plot of land allotted to the petitioner qua allotment letter dated 12 February 2015. It is also prayed that in the alternative the respondents be directed to refund the earnest money alongwith interest. There is also a prayer that the respondents be directed to pay compensation to the petitioner as the petitioner did not start the project and as huge loss was suffered by the petitioner on account of the plot of land being not allotted to the petitioner.
2. In our opinion, the reliefs as prayed for by the petitioner are thoroughly misconceived which can be seen from the following facts:
On 28 January 2014 the petitioner made an application for allotment of2000 sq. meters of land for the project to the MIDC. The petitioner’s application was scrutinized and on such preliminary scrutiny, a communication dated 5 November 2014 was issued to the petitioner informing the petitioner that on scrutiny of the petitioner’s application, the land allotment committee of the Corporation
The court upheld the forfeiture of earnest money due to the petitioner's failure to comply with contractual obligations, emphasizing that reliefs sought were not maintainable under Article 226.
The principle of unjust enrichment and the doctrine of legitimate expectations were central to the court's decision, emphasizing the obligation of the Development Authority to act fairly and reasonab....
The court affirmed that failure to comply with payment terms in a contract justifies forfeiture of earnest money, and a claim for refund is not valid under such circumstances.
Non-payment of lease salami within stipulated time does not automatically cancel allotment; requires active governmental cancellation, establishing a directory interpretation of time limits.
The court emphasized that failure to comply with payment directives, as mandated by public notice, results in cancellation of allotment, and timely action to enforce rights is critically important.
(1) Breach of reciprocal contractual obligations – A commercial document ought not to be interpreted in a manner that arrives at a complete variance with what may originally have been intention of pa....
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