#Penalty Demand

The Bombay High Court struck down a Rs. 22.63 crore penalty imposed on the Indian Newspaper Society for late construction, holding that a supplementary lease deed extinguishing the original time limit nullifies any penalty based on the expired deadline. The ruling reinforces that administrative bodies cannot impose financial penalties without prior notice or meaningful opportunity to respond, and that ambiguous lease terms must be construed against the drafter - a critical safeguard for non-profit institutions dealing with public authorities.