#Supplementary Lease Deed

Bombay HC ruled that a supplementary lease deed removing time limits for additional built-up area nullifies the original contractual deadlines, rendering MMRDA’s ₹52.80 crore penalty arbitrary. The court held that non-disclosure of site defects and procedural unfairness violated Article 14, setting aside the demand for lack of natural justice.

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.