#Article 14 arbitrariness

Supreme Court rules that denying refund of premium paid for unutilized Floor Space Index (FSI) is arbitrary and violates Article 14, directing refund of ₹27.41 lakh with 7% interest after deducting 10% administrative charges. The judgment reinforces that state actions under Development Control Regulations must align with constitutional guarantees of equality and non-arbitrariness, impacting property developers and urban planning authorities.

Allahabad HC rules that the State’s unjustified delay in terminating a mining lease under Rule 58 of the U.P. Minor Minerals Rules, 1963, renders its action arbitrary and violates Article 14. The court held that royalty liability ceases once mining operations stop, and directed adjustment of ₹70 lakh deposits against earlier installments, setting a precedent for prompt State action in lease terminations.

Gauhati High Court rules that issuance of a Consignee Receipt and Acceptance Certificate (CRAC) under Government e-Marketplace (GeM) contracts creates an absolute payment obligation within 10 days, overriding arbitration clauses or defect claims. The Court held that arbitrary withholding of payment by the State violates Article 14, while defect remedies remain arbitrable separately.