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2026 Supreme(All) 583

HIGH COURT OF JUDICATURE AT ALLAHABAD
MAHESH CHANDRA TRIPATHI, KUNAL RAVI SINGH, JJ.
 
M/s Designer Park Sahkari Awas Samiti Limited – Petitioner 
Versus
State of U.P. and others – Respondents
Writ C. No. 6524 of 2008
Decided On : 25-05-2026 
 

Advocates Appeared:
For the Petitioners: Praveen Kumar, Puran Nath Shukla, Sarita Dwivedi
For the Respondents: A. Khanna, C.S.C., Pranjal Mehrotra.

Contractual parties are bound by the express terms of a concluded agreement. Statutorily created authorities cannot use internal administrative circulars to override explicit contractual provisions or contradict admissions of payment contained within a signed lease deed, as doing so violates principles of consistency and fairness.

Headnote:(A) Constitution of India - Article 14 - Principles of administrative action - Fairness, consistency, and arbitrariness - Administrative decisions must be transparent and consistent - Demand raised by statutory body without providing supporting calculations, while ignoring terms of a concluded contract, violates Article 14. (Para 30)

(B) Contract Law - Interpretation of contract - Plain meaning rule - Contract should be read as it reads, per its express terms - No outside aid or implied terms should be sought when contractual terms are clear and unambiguous - Authority bound by terms admitted in a signed deed. (Para 26)

Facts of the case:
A society was allotted a plot under a scheme with an option to pay lease rent either annually or as a one-time payment equivalent to 11 times the yearly rate. The society deposited the total amount in two installments before the execution of the lease deed. The lease deed explicitly recorded that the one-time lease rent had been paid in full. Subsequently, the authority issued demand notices for a balance amount, claiming the initial payments did not constitute a single lump-sum deposit. The society challenged these demands, asserting that the full amount was paid and the subsequent demands were arbitrary and contrary to existing records.

Findings of Court:
The court found that the authority’s contention that payments on two different dates disqualified them from being treated as 'one-time' was not supported by the allotment terms. The lease deed contained a categorical admission that the one-time lease rent was paid in full. The authority’s reliance on internal administrative orders to override the explicit terms of the concluded contract was rejected. The court held that the authority was only entitled to recover lease rent for the period between possession and the execution of the lease deed.

Issues: 1. Whether deposits made on two separate dates before the execution of the lease deed satisfy the requirement of a one-time lease rent payment. 2. Whether the authority can impose additional charges contrary to the explicit terms of a signed lease agreement.

Ratio Decidendi: The court ruled that the terms of a concluded contract are binding and must be read in their natural, grammatical sense without adding implied conditions. An admission in a registered lease deed that payment has been made in full acts as conclusive evidence against the lessor, and internal administrative guidelines cannot negate the express terms agreed upon contractually. Therefore, the authority is legally bound by the terms of the deed.

Result: Petition partially allowed; order for refund issued after adjusting the legitimate rent for the interregnum period between possession and deed execution.

Table of Content
1. dispute concerning one-time lease rent payment conditions. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13)
2. parties' contentions on contractual obligations and interpretation. (Para 14 , 15 , 16)
3. contract terms prevail over departmental circulars and orders. (Para 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32)
4. acknowledgment of full one-time lease rent satisfaction. (Para 33 , 34)
5. writ petition partially allowed with mandate for partial refund. (Para 35)

JUDGMENT :

1. Heard Sri P.N. Shukla, learned counsel for the petitioner, Sri Suresh Singh Addl. Chief Standing Counsel for respondent No. 1 and Shri Pranjal Mehrotra for respondent nos. 2 and 3.

2. The present writ petition has been filed for the following reliefs :

“(a) Issue a writ, order or direction in the nature of mandamus commanding the respondent No. 2 to refund the wrongly realized amount of Rs. 29,22,675.00 with interest to the petitioner's Society.

(b) Issue a writ, order or direction in the nature of mandamus commanding the respondent No. 2 to issue a 'Non Dues Certificate' in favour of the petitioner's Society at an early date, which may be fixed by this Hon'ble Court.

(c) Issue any other writ, order or direction in favour of the petitioner, which this Hon'ble Court may deem fit and proper under the facts and circumstances of the case.

(d) Award the costs of the petition in favour of the petitioner.”

FACTS:

3. The present dispute relates to Group Housing Plot No. B-009/1A, Sector 62, NOIDA (hereinafter referred to as “the leased plot”) and the payment of one-time lease rent paid by the petitioner to NOIDA (hereinafter referred to as “the Authority”). The petitioner contends that the one-time lease rent was paid before the execution of the lease deed, whereas the Authority contends that the one-time lease rent was not paid in full, thus resulting in the issuance of a demand notice for the balance amount.

4. The petitioner was allotted a Group Housing plot, namely, Group Housing Plot No. B-9/1-A, Sector 62, Noida, under the Group Housing Scheme No. GHP/01/2001 (1). The allotment letter was issued on 19.05.2001. Clause 3 of the allotment letter provided for payment on lease rent either on a yearly basis or by way of one-time lease rent equivalent to 11 times the yearly lease rent payable at the time of execution of the lease deed. The possession of the plot was handed over to the petitioner through a possession letter dated 08.01.2002.

5. The petitioner, by means of challan no. 14940 dated 08.01.2002 deposited Rs. 5,56,700/- and by means of challan No. 14943 dated 21.02.2002 deposited Rs. 55,67,000/-. It is averred by the petitioner that the aggregate amount of Rs. 61,23,700/- constituted one-time lease rent payable prior to the execution of the lease deed. Thereafter, the lease deed was executed between the petitioner and Noida on 28.02.2002. Clause II (a) of the lease deed records that the petitioner has made full payment of one-time lease rent.

6. On 09.01.2004, the Authority issued a letter to the petitioner stating that the sum of Rs. 17,64,605/- was due towards the leased plot and directing the petitioner to deposit the same in the designated bank account of the Authority. Subsequently, on 13.03.2006, another letter was issued by the Authority to the petitioner stating that after adjustment of records, a sum of Rs. 2,552/- remains due till 30.08.2006. The letter further stated that “the amount due towards Lease rent at the time of the lease deed is being adjusted towards Lease rent on an annual basis”. The petitioner replied by stating that an amount of Rs. 2600/- has been deposited vide receipt no. 1430 on 27.02.2006. It was further asserted that the one-time lease rent had already been deposited, and the matter stood settled. A request was also made for the issuance of a No Dues Certificate from the Authority.

7. Thereafter, on 24.04.2006, a demand notice was issued stating that in response to the lett

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