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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SHREE CHANDRASHEKHAR, CJ., SUMAN SHYAM
Shree Naman Hotels Pvt. Ltd. – Appellant
Versus
Mumbai Metropolitan Region Development Authority – Respondent
| Table of Content |
|---|
| 1. petition admitted for immediate final hearing. (Para 1 , 2 , 28) |
| 2. delays from approvals, additional fsi, demand raised. (Para 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25) |
| 3. parties contest demand's legality and estoppel. (Para 26 , 27) |
| 4. delays uncontrollable; additional area resets timeline. (Para 29 , 30 , 31 , 32) |
| 5. demand contractual; writ barred by limitation. (Para 33 , 34 , 35 , 36) |
| 6. writ maintainable; public law violation alleged. (Para 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51 , 52) |
| 7. lease silent on approval delays; unconscionable. (Para 53 , 54 , 55 , 56) |
| 8. approvals delayed start; additional fsi extended. (Para 57 , 58 , 59 , 60 , 61 , 62 , 63 , 64 , 65 , 66 , 67 , 68 , 69 , 70) |
| 9. time computed from commencement certificate issued. (Para 71 , 72 , 73) |
| 10. coerced payments under protest refundable. (Para 74 , 75 , 76 , 77 , 78 , 79 , 80 , 81 , 82) |
| 11. precedent binding; six-year period retrospective. (Para 83 , 84 , 85 , 86 , 87 , 88 , 89) |
| 12. demand illegal; full refund directed. (Para 90 , 91 , 92 , 94 , 95) |
Judgment :
Suman Shyam, J.
1. Rule, rule is made return
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....
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....
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 ruled that the lack of adherence to procedural fairness in demanding additional lease premium necessitated reconsideration, balancing the interests of both parties.
The court emphasized that administrative discretion must be exercised fairly, considering both parties' interests, especially when external factors impede contractual obligations.
The authority has the power to terminate a lease in case of breach, and a notice must be served before termination.
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