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2026 Supreme(Bom) 162

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
M.S. KARNIK, S.M. MODAK, JJ.
Rajkumar Chandrasen Chavan – Appellant
Versus
Managing Director for CIDCO Limited – Respondent
Writ Petition No. 14359 of 2024
Decided On : 27-03-2026

Advocates Appeared:
For the Appellants : Rohan Surve, Shrushti Vishwakarma, Shivank Singh, Yogesh B. Dandekar
For the Respondents: G.S. Hegde, P.M. Bhansali, Ganesh Bajpei, N.C. Walimbe, S.P. Kamble

Transferee of leasehold plot rights entitled to 0% additional lease premium waiver for construction delay due to specific performance litigation against original lessee, as delay beyond transferee control and lessor party to suit.

Headnote:(A) Constitution of India - Article 226 - Navi Mumbai Disposal of Lands (Amendment) Regulations, 2008 - Regulations 7, 8, 9, 10 - Lease of plot for construction within four years - Extension on payment of additional lease premium (ALP) - Transferee of leasehold rights bound to observe all lease conditions including ALP payment - However, board policy levies ALP at 0% for period restrained from construction due to court case/order of judicial authority wherein lessor party - Transferee entitled to waiver despite no privity with lessor, as delay due to specific performance litigation and execution against original lessee beyond transferee's control. (Paras 30, 31, 39, 40)

(B) Specific Relief - Specific performance decree against original lessee - Puts transferee in position to comply with lease only post-decree execution - Lessor cannot demand ALP for pre-decree delay attributable to lessee's breach, not transferee's fault. (Paras 36, 37, 38)

Facts of the case:
Plot allotted to original lessee who transferred rights to petitioner prior to lease execution. Lessee refused performance leading to specific performance suit against lessee and lessor. Interim injunction restrained transfer/creation of third-party rights. Suit decreed directing balance payment and performance; executed via court commissioner appointing for tripartite agreement. Lessor demanded ALP post-amnesty waiver for construction extension.

Findings of Court:
Demand notices for ALP quashed. Petitioner transferee not liable for ALP; entitled to 0% levy per board policy due to litigation delay.

Issues: Whether transferee liable for ALP for construction delay caused by specific performance litigation; applicability of Regulation 10 and board waiver policy to transferee.

Ratio Decidendi: Transferee steps into lessee's shoes under Regulation 10 but entitled to board waiver for court-restrained periods; expecting construction pre-decree execution unjust as possession with resisting lessee and no transferee fault - lessor demand arbitrary, recourse against lessee available. (Paras 34-40)

Result: Writ petition allowed; demand notices dated 25/06/2024 and 27/06/2024 quashed and set aside.

Table of Content
1. plot allotted to mapara; rights transferred pre-lease to petitioner. (Para 1 , 2 , 3 , 4 , 5)
2. specific performance suit decreed; execution via court commissioner. (Para 6 , 7 , 8 , 9)
3. cidco demands alp despite litigation delays claimed. (Para 10 , 11 , 12 , 13 , 14)
4. court proceedings excuse alp levy on petitioner. (Para 15)
5. transferee must pay alp per regulation 10. (Para 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28)
6. regulations mandate timely construction; alp for extensions. (Para 29 , 30)
7. board waives alp for court case restraints. (Para 31)
8. litigation prevented construction; cidco demand unjustified. (Para 32 , 33 , 34 , 35 , 36 , 37 , 38)
9. petitioner gets 0% alp; no fault in delay. (Para 39 , 40)
10. quash cidco's alp demand notices. (Para 41 , 42)

JUDGMENT :

M.S. KARNIK, J.

1. This petition under Article 226 of the Constitution of India challenges the demand notice dated 25/06/2024 and 27/06/2024 issued by the respondent No.2-City and Industrial Development Corporation of Maharashtra Limited ("CIDCO" for short).

2. The facts of the case in brief are that CIDCO vide letter of allotment dated 26/06/2005 allotted plot of land bearing Plot No.104, admeasuring 450.090 sq. mtrs. situated at Sector 19, Kharghar, Navi Mumbai to one Mr. M.S.K. Mapara, the Proprietor of Pioneer Developers ("Mr. Mapara" for short). Mr. Mapara made substantial payment of consideration/premium to CIDCO against the letter of allotment and accordingly, CIDCO proposed to execute the agreement to lease of the said plot in his favour soon subject to payment of the balance premium and other charges and compliance of other formalities.

3. Mr. Mapara then offered to sale, assign and transfer all his leasehold rights, title and interest etc. in respect of the suit plot, free from all encumbrances in favour of Mr. Rajkumar Chandrasen Chavan viz. the petitioner herein, for the total and lump sum consideration of Rs.55,00,000/-. The petitioner thus purchased and acquired all leasehold rights, title and interest in respect of the said plot from Mr. Mapara under the "Agreement for transfer of Assignment of Rights" dated 08/12/2010, whereby Mr. Mapara agreed to execute the tripartite agreement in favour of the petitioner.

4. The petitioner made substantial payment of Rs.29,00,000/- to Mr. Mapara and was also ready and willing to pay balance amount of Rs.26,00,000/- against the total consideration of Rs.55,00,000/- to Mr. Mapara.

5. CIDCO entered into and executed a registered agreement of lease dated 20/10/2010 thereby granting the leasehold rights, title and interest with respect to the said plot in favour of Mr. Mapara on the terms and conditions and for the premium, etc. as stated in the agreement of lease. CIDCO also delivered the actual and physical possession of the suit plot in favour of Mr. Mapara.

6. Mr. Mapara refused to perform his part of the contract, therefore the petitioner filed Special Civil Suit No.377 of 2011 before the Civil Judge, Senior Division, Panvel for declaration, specific performance and injunction against Mr. Mapara and CIDCO in respect of the said plot along with an application for temporary injunction against the defendants below Exhibit-5 praying for the following reliefs:-

"a. That pending the hearing and final disposal of the suit, the Defendants, their agents, servants, employees, representative, officers and/or any other person/s claiming through or under them be restrain by an order of temporary injunction on from dealing with and disposing of the suit Plot to any other person or party or in manner creating third party interests with respect to the Suit Plot.

b. That pending the hearing and final disposal of the suit, the Defendant their agents, servants, officers, employees, representatives, officers and/or any other person/s claiming through or under them be restrained by an Order of temporary injunction from transferring and/or executing Conveyance and/or the Tripartite Agreement of t

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