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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SHREE CHANDRASHEKHAR, CJ., SUMAN SHYAM
Indian Newspaper Society – Appellant
Versus
Mumbai Metropolitan Region Development Authority – 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 notice dated 12th September 2017 (Exhibit-N) the Writ Petitioner has approached this Court inter alia contending that the demand for penalty/additional premium on account of late completion of the construction, raised by the Respondent No. 1, i.e., Mumbai Metropolitan Region Development Authority (“MMRDA”), is contrary to the terms and conditions of the Lease Agreement and, therefore, arbitrary and illegal. The facts and circumstances, giving rise to the filing of the Writ Petition, shorn of unnecessary details, are as hereunder.
4. The Writ Petitioner is a registered company having its office at INS Building, Rafi Marg, New Delhi 110 001. The Petitioner is a non-profit organization and plays a central role in protecting and promoting the interest of the Press in India. The Respondent No. 1 (MMRDA), is an authority set up under a statute viz. the Mumbai Metropolitan Regional Development Authority Act, 1974 (hereinafter referred to as “MMRDA Act”) and the Respondent No. 2 is its Chief Executive Officer.
5. Based on an applic
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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.
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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.
The refusal of a No Objection Certificate for redevelopment based on misinterpretation of lease terms was deemed arbitrary, reinforcing the need for state entities to act fairly under Article 14 of t....
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