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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
| Table of Content |
|---|
| 1. petition challenges mmrda delay penalty demand. (Para 1 , 2 , 3 , 4) |
| 2. lease mandates construction within four years. (Para 5 , 6) |
| 3. additional fsi allotment stayed by court. (Para 7 , 8 , 9 , 10) |
| 4. court stay delays composite construction commencement. (Para 11 , 12 , 13 , 14) |
| 5. further fsi increases require revised approvals. (Para 15 , 16 , 17 , 18) |
| 6. mmrda demands penalty despite extension resolutions. (Para 19 , 20 , 21 , 22 , 23) |
| 7. payments made under protest amid court stays. (Para 24 , 25 , 26 , 27) |
| 8. parties dispute contract breach and discrimination. (Para 28 , 29 , 30) |
| 9. petitioners argue delays from approvals, stays. (Para 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39) |
| 10. respondents defend mandatory penalty clauses. (Para 40 , 41 , 42 , 43 , 44 , 45) |
| 11. writ maintainable against arbitrary state action. (Para 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53 , 54 , 55) |
| 12. prior judgment supports writ jurisdiction. (Para 56 , 57 , 58 , 59 , 60 , 61 , 62) |
| 13. lease clauses unfair absent approval timelines. (Para 63 , 64 , 65 , 66 , 67) |
| 14. composite project timeline from effective cc. (Para 68 , 69 , 70 , 71 , 72 , 73) |
| 15. promissory estoppel excludes stay periods. (Para |
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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