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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SHREE CHANDRASHEKHAR, CJ., SUMAN SHYAM
Reliance Industries Limited – Appellant
Versus
Mumbai Metropolitan Region Development Authority (MMRDA) – Respondent
Judgment :
Suman Shyam, J.
1. Rule. Rule is made returnable forthwith.
2. By consent of the parties, the matter is taken up for final hearing.
3. Assailing the demand-cum-show cause notice dated 12th September 2017 (Exhibit “R”), whereby, the Respondent No.1– Mumbai Metropolitan Region Development Authority (“MMRDA”) had demanded additional premium/penalty as per statements ‘A’ and ‘B’ annexed thereto, for the alleged delay of 7 years and 12 days in completion of construction of a Convention & Exhibition Centre and Commercial Complex on Plot No. C-64, ‘G’ Block, Bandra-Kurla Complex, Mumbai, the Petitioners have approached this Court by filing this Writ Petition invoking the jurisdiction of this Court under Article 226 of the Constitution of India. During the pendency of the Writ Petition, by the communication dated 13th June 2019 (Exhibit “X”) a further amount of Rs.1116,83,10,102/- was demanded from the Petitioner No. 1 as additional premium, along with interest, towards extension of time for completing the construction of the building by using the additional built up area of 72,500 sq mtrs. allotted under the Supplementary Lease Deed dated 13th July 2007. The said Notice is also und
Penalty for construction delay under lease quashed due to delays from court stay, statutory approvals, additional area; writ maintainable for arbitrary state action; 6-year extension non-discriminato....
Supplementary lease deeming additional built-up area integral with no time limit overrides original four-year completion clause for composite construction; penalty demands arbitrary, illegal; payment....
Additional premium demand for construction delay under lease held arbitrary where caused by statutory approvals, late commencement certificates, and extra built-up area without timeline; applicable s....
Lease penalty for construction delay invalid where lessor nondiscloses material site defects, supplementary deed removes time limit for additional built-up area, delays due to approvals/statutory fac....
Imposing penal charges for contract breaches is valid when stipulated policies and terms align with contractual obligations, and acceptance of penalties post-acceptance negates protest claims.
The court emphasized that administrative discretion must be exercised fairly, considering both parties' interests, especially when external factors impede contractual obligations.
The court ruled that the lack of adherence to procedural fairness in demanding additional lease premium necessitated reconsideration, balancing the interests of both parties.
Building permits must comply with statutory provisions, and challenges to such permits must be timely; delay may waive the right to contest approvals.
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