Synopsis

The petitioner (Indian Newspaper Society) was allotted a plot in Bandra-Kurla Complex (BKC) on a long-term lease for construction of an office building. The original lease deed (2008) required completion within four years, failing which additional premium/penalty was payable. Subsequently, due to increase in Floor Space Index (FSI), the authority allotted additional built‑up area and executed a supplementary lease deed (2013) which explicitly stated that “there shall be no time limit” for completion of construction using the additional area. Despite this, the authority demanded penalty for delay. The petitioner paid under protest and challenged the demand. The High Court allowed the writ petition, holding that: (i) the supplementary lease deed had dispensed with the time limit; (ii) the demand was contrary to the contract; (iii) the authority’s policy of granting six years’ time only to post‑August 2015 lessees was arbitrary and discriminatory; (iv) the demand notice was vague and violated natural justice; and (v) the petitioner was entitled to refund of the penalty amount paid under duress, with interest.

Court: High Court of Judicature at Bombay (Ordinary Original Civil Jurisdiction)
Coram: Suman Shyam, J. (the judgment is by a Division Bench, as indicated by “DB” in the citation, though the coram is not fully specified; the judgment is authored by Suman Shyam, J.)
Date: The judgment was uploaded on 09.04.2026; the date of decision is not explicitly mentioned but is likely around the same date. For the purpose of analysis, I will treat the date as 09.04.2026.
Citation: 2026:BHC-OS:8910-DB
Core Law: Contract Law, Constitutional Law (Articles 14, 226), Principles of Natural Justice, Doctrine of Contra Proferentem, Refund of Money Paid under Duress.

2. Legal Framework

• Constitution of India: Article 14 (arbitrariness, equality), Article 226 (writ jurisdiction).

• Indian Contract Act, 1872: Section 10 (contract), Section 72 (refund of money paid under coercion).

• Mumbai Metropolitan Region Development Authority Act, 1974: Section 44 (appeal provision for recovery of money as arrears of land revenue).

• Principles of Natural Justice: Audi alteram partem (right to be heard before penal action).

• Doctrine of Contra Proferentem: Ambiguity in a contract is to be resolved against the party who drafted i

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