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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
| Table of Content |
|---|
| 1. lease imposes four-year construction completion obligation (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10) |
| 2. additional fsi allotted without revised time limit (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18) |
| 3. penalty paid under protest pending extensions (Para 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28) |
| 4. preliminary objections to writ jurisdiction raised (Para 29 , 30 , 31 , 32 , 33 , 34) |
| 5. no absolute bar to writs in contractual disputes (Para 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44) |
| 6. precedent quashes similar penalty demands (Para 45 , 46 , 47 , 48 , 49 , 50) |
| 7. completion impossibility due to composite construction argued (Para 51 , 52 , 53) |
| 8. no time limit for additional built-up area (Para 54 , 55 , 56 , 57 , 58 , 59 , 60 , 61 , 62) |
| 9. ambiguities construed against lease drafter (Para 63 , 64 , 65 , 66 , 67 , 68 , 69 , 70 , 71) |
| 10. duress payments must be refunded (Para 72 , 73 , 74 , 75 , 76 , 77 , 78 , 79) |
| 11. arbitrary classification violates article 14 (Para 80 , 81 , 82 , 83 , 84) |
| 12. impugned demands illegal; refund directed (Para 85 , 86 , 87 , 88 , 89 , 90) |
Judgment :
Suman Shyam, J.
1. Rule. Rule is made returnable forthwith.
2. By consent of the
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....
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....
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....
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....
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.
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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