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HIGH COURT OF JUDICATURE AT ALLAHABAD
AJIT KUMAR, SWARUPAMA CHATURVEDI
Kci Ltd Formerly M/S Khemka Containers Ltd – Appellant
Versus
State Of U.P. – Respondent
JUDGMENT :
Swarupama Chaturvedi, J.
1. Heard Sri Tarun Agarwal, learned Senior Advocate assisted by Sri Prashant Mishra, learned counsel for the petitioner, Sri Shivam Yadav, learned counsel for the respondents no. 2 to 4 and Sri Devesh Vikram, learned Additional Chief Standing Counsel for the State respondents.
2. By means of this petition filed under Article 226 of the Constitution, petitioner has prayed for quashing of the order dated 12.12.2024 passed by respondent no. 3 raising a demand of Rs. 5,28,85,639/- and order dated 15.05.2025 whereby the petitioner’s request for grant of early production incentive has been rejected as well as the consequential final notice before cancellation of allotment dated 23.12.2024. Further it is prayed that a direction be issued to the respondents to recalculate the lease rent dues according to the directions contained in the revisional order dated 27.07.2023 as well as grant the petitioner the benefit of early production incentive rebate of Rs. 9.02 lacs as applied on 27.03.2003. Also a direction to respondents be issued to grant the petitioner the benefit of waiver of past interest in accordance with the office order dated 05.12.2013.
3. Brief fa
Unilateral retrospective enhancement of lease rent by an authority, without executing a supplementary deed, is illegal, and higher authority’s orders must be implemented by lower bodies.
A party cannot be denied benefits due to issues beyond their control; zero period benefits were affirmed due to delays stemming from governmental actions.
Consent orders are binding and can only be reviewed for fraud or similar grounds; parties cannot resile from consents without just cause.
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....
Legislation impairing accrued rights of transferees cannot operate retrospectively, protecting vested property rights from legislative re-imposition of restrictions.
The authority has the power to terminate a lease in case of breach, and a notice must be served before termination.
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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