Writ Petition; Bombay High Court; Land Acquisition; Compensation; FSI; TDR; Contract Act; MRTP Act; Monetary Compensation; Property Rights
 24 Sep, 2026
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M/s. L.B. Kunjir Thr. Its Partner Shri. Amit L.Kunjir & Ors. Vs. The State of Maharashtra & Ors.

  Bombay High Court J-WP-5159-2026
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Case Background

As per case facts, petitioners owned land reserved for road widening. The Municipal Corporation requested possession, offering compensation in the form of additional Floor Space Index (FSI), Transferable Development Rights ...

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                                                                      1                        J-WP-5159-2026 (C).doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

CIVIL APPELLATE JURISDICTION

WRIT PETITION NO. 5159 OF 2026

1. M/s. L.B. Kunjir Thr. Its Partner

    Shri. Amit L.Kunjir,

    Age – 47, Occupation – Business,

2. Shri. Laxman Bhausaheb Kunjir,

    Age – 74, Occupation – Business,

3. Sau. Kusum Laxman Kunjir,

    Age – 74, Occupation – Business,

    Above all residing at – B – 107,

    Pelican Building, Raheja Woods,

    Kalyani Nagar, Pune – 411 046. ...Petitioners

Versus

1. The State of Maharashtra

    The Principal Secretary,

    Urban Development Department,

    Government of Maharashtra, Mantralaya,

    Mumbai – 400 032.

2. The Collector of Pune,

    Pune – 411 001.

3. The Pune Municipal Corporation,

    Shivajinagar, Pune – 411 005, 

    through its Municipal Commissioner   ...Respondents

-----------------

Dr.   Ramdas   P.   Sabban   a/w   Mr.   Pravin   Sabban,   Mr.   Shrikant

Kompali, Mr. Rohit Chitiken for the Petitioners.

Mrs. Neha S. Bhide, GP a/w Mrs. Shruti D. Vyas, Addl. GP, Mrs.

P.J. Gavhane, AGP for State Respondent Nos.1, 2 – State.

Mr. Rishikesh M. Pethe, for Respondent No.3.

-----------------

Pallavi/Mayur 1/22

PALLAVI

MAHENDRA

WARGAONKAR

Digitally signed by

PALLAVI MAHENDRA

WARGAONKAR

Date: 2026.09.24

19:42:00 +0530

                                                                      2                        J-WP-5159-2026 (C).doc

CORAM :  MAHESH CHANDRA TRIPATHI, CJ.  &

ADVAIT M. SETHNA, J.

RESERVED ON     : 10

th

 SEPTEMBER, 2026 . 

PRONOUNCED ON : 24

th

 SEPTEMBER, 2026 .

-----------------

JUDGMENT (Per : Advait M. Sethna, J.) :-

1.Heard learned counsel for the parties. 

2.Rule. Rule made returnable forthwith, with the consent of

the parties.

3.This   instant   Petition   is   preferred   for   the   following

substantive reliefs:-

“(a) This Hon'ble High Court may be pleased to issue a Writ

of Mandamus or any other appropriate Writ, direction or

order,   directing   the   Respondents   to   acquire   &   pay

compensation with all the statutory benefits, for the

petitioner's   owned   said   land   admeasuring   area

1721.03   sq.   mtrs.   reserved   for   18   mtr.   D.P.   Road

widening, situated at Survey No. 56/6C/1, 566C/2,

56/6C/2/2, 56/6C/2/3, 56/6C/2/4 & 56/6C/2/5 at

Kharadi,   Pune,   on   which   the   Respondent   Municipal

Corporation has forcibly/ illegally constructed the said

18 mtr. wide D.P. Road widening, without following due

process of law of land acquisition.”

I. Factual Matrix:-

4.The Petitioners claim to be the owners of land admeasuring

1721.03   sq.   mtrs.,   bearing   Survey   Nos.   56/6C/1,   566C/2,

56/6C/2/2, 56/6C/2/3, 56/6C/2/4 and 56/6C/2/5 at Kharadi,

Pallavi/Mayur 2/22

                                                                      3                        J-WP-5159-2026 (C).doc

Pune, which is reserved for widening of an 18 Mtr. D. P. Road

(“Subject Land” for short). 

5.On 29

th

 August 2013, the Land Acquisition and Management

Department   of   the   Respondent   No.   3   -   PMC   called   upon  the

Petitioners to hand over possession of the subject land. It was

stated therein that due compensation will be paid in the form of

additional   Floor   Space   Index   (FSI)/Transferable   Development

Rights (TDR)/Cash compensation in lieu of the subject land.

6.Pursuant thereto, by a Possession Receipt dated 9

th

  June

2016, the Petitioners agreed to hand over the possession of the

subject land admeasuring 1721.03 sq. mtrs. to Respondent No.3 -

PMC on the condition that compensation in the form of FSI/TDR

will be given for the affected area of the subject land.

7.Thereafter,   after   almost   10   years,   by   a   letter   dated  10

th

February 2026, the Petitioners requested the Respondent No. 3 -

PMC to acquire the subject land and pay monetary comp ensation

in accordance with law. According to the Petitioners, however, no

further action was taken by the Respondent No.3 - PMC.

8.The Petitioners, therefore, approached this Court by filing

the present Petition on 13

th

  March 2026. By an order dated 7

th

May 2026, this Court directed Respondent No.3-PMC to t ake a

decision regarding payment of compensation to the Petitioners in

Pallavi/Mayur 3/22

                                                                      4                        J-WP-5159-2026 (C).doc

accordance with the applicable rules/policy.

9.Pursuant thereto, on 22

nd

 July 2026, the Respondent No.3 –

PMC   filed   an   Affidavit-in-Reply.   It   is   stated   therein   that   the

Municipal   Commissioner,   upon   considering   the   entire   file  in

relation to the execution of the Possession Receipt dated 9

th

 June

2016 rejected the Petitioners' claim for monetary compensation

and held that the Petitioners were entitled to compensation in the

form   of   FSI/TDR,   as   stipulated   therein.   The   Petitioners  were

accordingly   at   liberty   to   submit   a   proposal   for   TDR/FSI  in

accordance with the prescribed procedure, so as to enable the

Respondent No. 3 - PMC to consider the same expeditiously.

II. Rival Contentions:-

A. Submissions of the Petitioners :-

10.Mr.   Sabban,   learned   Counsel   for   the   Petitioners   would

submit that the Petitioners have been deprived of their valuable

property   rights   in   violation   of   Articles   14   and   300-A   of  the

Constitution of India. 

11.Mr. Sabban would submit that the subject land is required to

be acquired under Section 126(1)(a) of the Maharashtra Regional

and Town Planning Act, 1966 (‘MRTP Act’ for short) and that the

Respondents  cannot  deprive   them  of  the  subject land  without

Pallavi/Mayur 4/22

                                                                      5                        J-WP-5159-2026 (C).doc

following the due process of acquisition and compensation under

the   provisions   of   the   Maharashtra   Municipal   Corporation   Act,

1949 and MRTP Act. According to him, the Respondents  cannot,

merely by offering additional FSI/TDR, compel them to part with

their   property   without   following   the   statutory   procedure  for

acquisition and without payment of compensation in accordance

with law.

12.Mr. Sabban would then submit that a co-ordinate Bench o f

this Court vide Order dated 7

th

  May 2026 directed Respondent

No.3- PMC to take a decision for payment of compensation to the

Petitioners as per rules. However, the Respondent No.3 - PMC took

a   contrary   stand   by   rejecting   Petitioners’   claim   for   monetary

compensation. 

13.Mr.   Sabban   would   further   submit   that   the   Possession

Receipt dated 9

th

  June 2016 would not constitute a concluded

contract   between   the   Petitioners   and   the   Respondents,  with

respect to giving possession of the subject land against additional

FSI/TDR   compensation.   In   the   absence   of   such   concluded

contract, the Respondents cannot treat the Petitioners’ willingness

for receiving FSI/TDR as an agreed consideration for acquisition

in accordance with law. 

Pallavi/Mayur 5/22

                                                                      6                        J-WP-5159-2026 (C).doc

14.Mr. Sabban would contend that acquisition by agreement

under   Section   126(1)(a)   or   (b)   requires   a   joint   consensus  and

cannot rest upon a unilateral offer by the acquiring authority. In

this   regard,   reliance   is   placed   upon   the   decisions   in  Shree

Vinayak   Builders   and   Developers,   Nagpur   v.   State   of

Maharashtra and Others

1

, Pundalik Sharanbasappa Patil v.

State   of   Maharashtra

2

 and  Niyojit  Siddhivinayak

Gruhnirman   Sanstha   Marjewadi   v.   The   State   of

Maharashtra

3

. The Full Bench in Shree Vinayak Builders and

Developers, Nagpur  (supra) has, in particular, recognised that

that   the   offer   of   additional   FSI/TDR   is   not   binding   upon  the

landowners and that the authorities cannot unilaterally insist on

the same. 

15.Mr. Sabban further placed reliance on the decisions of co-

ordinate Bench of this Court in Makarand Sharad Pande & Ors.

v. State of Maharashtra

4

; Lata Balaso Patil Through Power of

Attorney Holder v. State of Maharashtra and Ors

5

;  Sushant

Sureshrao   Charjan   v.   The   State   of   Maharashtra

6

;   and

Minakshi Pramod Sonar v. The State of Maharashtra

7

. This to

12022 SCC OnLine Bom 1562

2Writ Petition No.9003 of 2021 dt. 14.07.2022

3Writ Petition No.5391 of 2025 dt. 25.11.2025

4    2026 SCC Online Bom 1432

5    2026 SCC Online Bom 6939

6    WP No.7119 of 2016 decided on 17

th

 March 2020

7    2024 SCC Online 1220

Pallavi/Mayur 6/22

                                                                      7                        J-WP-5159-2026 (C).doc

support his contention that the Respondent cannot co mpel the

Petitioners to accept the compensation in form of FSI/TDR only,

by refusing to accept the Petitioners’ plea/prayer for monetary

compensation   in   the   given   factual   matrix.   Accordingly,   the

Petitioners are entitled to 80% advance compensation and  75%

additional   compensation   as   provided   under   Section   40   of   the

Right   to   Fair   Compensation   and   Transparency   in   Land

Acquisition, Rehabilitation and Resettlement Act, 2013.

16.According to Mr. Sabban, there is  a continuing cause o f

action and that delay/laches is irrelevant, placing reliance on the

Supreme Court’s decisions in Tukaram Kana Joshi  & Ors Thr.

Power of Attorney Holder v. M.I.D.C. & Ors

8

.  and  Sukh Dutt

Ratra v. State of Himachal Pradesh

9

.

17.In light of above, he would urge that the Petition be allowed.

B. Submissions on behalf of Respondent No.3 – PMC :-

18.Per Contra, Mr. Rishikesh Pethe, learned for the Respondent

No.3 would submit that the Petition is completely misconceived,

devoid of merit, and deserves to be dismissed.

19.He   would   first   invite   the   attention   of   this   Court   to

communication dated 29

th

 August 2013 addressed by the Deputy

8 (2013) 1 SCC 353

9 (2022) 7 SCC 508

Pallavi/Mayur 7/22

                                                                      8                        J-WP-5159-2026 (C).doc

Commissioner,  Land  Acquisition and  Management Office, Land

and Properties, Pune Municipal Corporation to the Petitioners. 

20.By   the   said   communication,   the   Respondent   Authorities,

inter alia, provided that in case the possession of the subject land

is given to the Respondent No.3 – PMC under Section 126 of the

MRTP Act, due compensation will be paid to the Petitioners in the

form of additional FSI/TDR/Cash compensation in lieu of the said

acquisition. The Petitioners were required to submit the necessary

documents to the concerned Respondent - Department. 

21.Mr. Pethe, would then rely on the document in the nature of

a   possession   receipt   dated   9

th

  June   2016   addressed   by   the

Petitioners to the Respondent Authorities. He would submit that

the  said  communication clearly records  the  acceptance  by  the

Petitioners of the offer made by the Respondent No.3 pursuant to

the decision of subject land acquisition. The possession of the

subject land was handed over as per the said communication with

the condition that the compensation in form of FSI/TDR will be

paid for the said affected land by the Respondent Auth orities,

under the extant Rules and Policies. 

22.Thereafter Mr. Pethe, would submit that until 10

th

 February

2026, there has been no response from the Petitioner s to the

Respondents. It is only by such letter dated 10

th

  February 2026

Pallavi/Mayur 8/22

                                                                      9                        J-WP-5159-2026 (C).doc

that the Petitioners have demanded compensation by stating that

the Petitioners are no longer interested in TDR and that they are

not bound to accept such TDR in lieu of the acquisition of the

subject land. 

23.Mr. Pethe would rely on Section 126(1)(a) of the MRTP Act to

submit   that   the   said   provision   is   of   no   assistance   to   the

Petitioners to support their claim for monetary compensation in

lieu of the FSI/TDR in the given facts and circumstances. This is

more   particularly   considering   the   fact   that   pursuant  to   the

possession   receipt   dated   9

th

  June   2016,   there   is   a   concluded

contract, for FSI/TDR compensation that has taken place in the

given factual situation.

24.Mr. Pethe, would submit that pursuant to the order of the

coordinate Bench of this Court dated 7

th

 May 2026, the Municipal

Commissioner   has   rejected   the   Petitioners’   claim   for   monetary

compensation, which is stated in the Affidavit-in-Reply dated 22

nd

July 2026 filed by the Respondent No.3. 

25.Mr.   Pethe   would   submit   that   considering   the   above,   the

decision   of   the   Full   Bench   in  Shree   Vinayak   Builders   and

Developers, Nagpur (supra) as well as the other decisions cited by

the   Petitioners   will   lend   no   assistance   to   the   case   of   the

Petitioners.

Pallavi/Mayur 9/22

                                                                      10                        J-WP-5159-2026 (C).doc

26.In light of all the above submissions, Mr. Pethe would urge

that the Petition is devoid of merits and deserves to be dismissed.

III. Analysis and Conclusion :

27.Heard   learned   counsel   for   the   parties   and   with   their

assistance, perused the record.

28.At the very outset, in our view, an interesting legal issue falls

for our determination, revolving around a narrow compass. We are

called upon to decide whether the claim of the Petitioners to insist

on monetary compensation and not FSI/TDR, under the r elevant

statutory provisions, is sustainable in law.

29.In the above context, it would be necessary at this juncture

to,   refer  to   the   communication   dated   29

th

  August   2013   which

reads thus:

“True Translation Copy from Marathi to English

Land Acquisition and Management Office, Land

and   Properties,   Pune   Municipal   Corporation,

Outward No. LEO/3292, 

Date: 29-08-2013

To,

Mr. Laxman Bhausaheb Kunjir & Ors.

R/o. Kharadi

Subject:- About 18 Mtr. D.P. Road at Pune Kharadi Survey No. 56.

By Mutual Compromise the Pune Municipal Corporation intend to take

possession of the Lands situated at Survey No. 56/6C/2 at Kharadi,

Pune affected by the 18 Mtr. D.P. Road Reserved Lands under the Pune

City Development Plan. Prima facia the said land is in your possession.

In case the possession of the said 18 Mtr. D.P. Road Reserved Lands

Pallavi/Mayur 10/22

                                                                      11                        J-WP-5159-2026 (C).doc

is   given   to   the   Pune   Municipal   Corporation   as   per   the   provisions   of

Section 126 of the MRTP Act, it is proposed to take the possession of this

land   by   Mutual   Compromise   as   per   the   final   Land   area   affected   as

shown in the final Government Measurement Map and after verification

of the title documents as per 7/12 extract, and after getting advice from

the   Legal   Advisor   of   the   Pune   Municipal   Corporation.   The   due

Compensation   will   De   paid   in   the   form   of   Additional   FSI/TDR/Cash

Compensation in lieu of the said 18 Mtr. D.P. Road Reserved Lands. The

appropriate   proposal   for   Compensation   alongwith   all   the   required

documents   as   per   official   procedure   should   be   submitted   to   the

Department.

Hence   you   are   requested   to   handover   the   said   subject   properties

reserved for 18 Mtr. D.P. Road to the Pune Municipal Corporation, and

cooperate in the Development of Pune city.

Sd/-

Deputy Commissioner

Land   and   Properties,   Pune   Municipal

Corporation Land Acquisition and Management

Office,   Land   and   Properties,   Pune   Municipal

Corporation.”

30.Pursuant to the above, we refer to the communication dated

9

th

 June 2016 which reads thus :

“[Translation of a photocopy of a Preliminary Possession Receipt

typewritten in Marathi.]

Exh.C

                                                                                36

(Subject to the provisions prescribed under Section 126 of

M.R.T.P. Act)

Preliminary Possession Receipt

I/We, the undersigned,

Name – M/s. Amit L. Kunjir, through Partner Shri Amit Laxman Kunjir.

Age – 36 years.

Address – Pelican Building, Raheja Woods, Kalyani Nagar, Pune – 411

006.

give   in   writing   the   Possession   Receipt   in   favor   of   Pune   Municipal

Corporation, for the reasons as mentioned herein-below. 

Description of the Property – Land bearing S. No. 56/6C/1, 56/6C/2,

56/6C/2/2, 56/6C/2/3, 56/6C/2/4, 56/6C/2/5 part, thus, total area

admeasuring 86.83 Are, situated at Village – Kharadi. 

Approximate Area admeasuring 1721.00 sq. mts. affected by widening of

18 Meter DP Road and the four boundaries thereof are as under:

Pallavi/Mayur 11/22

                                                                      12                        J-WP-5159-2026 (C).doc

On East - Remaining property from out of S. No. 56/6C/1, 56/6C/2,

56/6C/2/2, 56/6C/2/3, 56/6C/2/4, 56/6C/2/5.

On West - S. No. 56/1B + 2A+6A part.

On South - S. No. 57 part and 18 mts. D.P. Road.

On North - Internal Road from out of S. No. 56/6C. 

A   requisition   bearing   O.   No.   LEO/3292,   dated   29.08.2013,   under

Section   126   of   the   MRTP   Act,   has   been   sent   to   you   regarding   taking

possession of the area admeasuring 1721.00 sq. mts. approximately, the

area affected by widening of 18 mts. D.P. Road, from out of the property

bearing   S.   No.   56/6C/1,   56/6C/2,   56/6C/2/2,   56/6C/2/3,

56/6C/2/4,   56/6C/2/5,   situated   at   Village   –   Kharadi.   After

determination   of   the   final   area   being   calculated   as   per   Official

Government Survey and in accordance with the opinion and layout from

the  Development  Planning  Department,  regarding  the  area  affected  by

road widening and upon verification of the land ownership in accordance

with the opinion of the Legal Advisor's Office, admissible consideration in

the form of F.S.I./T.D.R. towards the said land shall be granted as per

prevailing rules and policy.

Hence, subject to the aforesaid conditions, the possession of the said

land is being handed over. In accordance with the prevailing procedures

of   the   Department,   we   shall   submit   documents   pertaining   to   the

Ownership Rights and land survey map etc. and shall transfer the said

area in favor of the Municipal Corporation. We have been  informed that

unless and until the 7/12 extract in respect thereof is produced before the

Municipal Corporation by us, we will not get any compensation towards

the said land. 

Thus,   on   this   day,   the   date   9.6.2016,   we   are   handing   over   the

possession of the said land, after understanding the above-mentioned

aspects. 

Party giving possession 

For M/s. Amit L. Kunjir

(Signature Illegible)

PARTNER

Shri. Amit Laxman Kunjir.

Party taking possession 

(Signature Illegible)

(Suhas Nalawade)

Deputy Engineer

Estate and Management 

Pune Municipal Corporation.”

A plain reading of the above would demonstrate that the

Petitioners handed over the possession of the said land subject to

the conditions set out in the communication dated 9

th

 June 2016.

This   being   that   the   Petitioner   shall   receive   admissible

Pallavi/Mayur 12/22

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consideration in the form of FSI/TDR towards the subject land, to

be   granted   as   per   the   prevailing   rules   and   policy.   The   above

document which is in the nature of preliminary possession receipt,

further records that unless and until the 7/12 extract in respect

of the subject land is produced before the Municipal Corporation

by the Petitioners, they will not be entitled to any compensation

towards the subject land. Be that as it may. 

31.A conjoint reading of the above documents, would clearly

indicate that the communication dated 29

th

 August 2013 is in the

nature of an offer by the Respondent No.3 to the Petitioners. Such

offer   was   accepted   by   the   Petitioners   vide   the   subsequent

possession receipt dated 9

th

 June 2016 issued, referring to Section

126 of the MRTP Act. Such acceptance in writing clearly records

that the Petitioners would accept the admissible consideration in

the form of FSI/TDR at the prevailing rates, in accordance with

the extant Rules/Policy. Such offer, followed by the acceptance by

the Petitioners vide the possession receipt dated 9

th

 June 2016 by

which the Petitioners voluntarily handed over possession of the

subject land to the Respondent No.3 – PMC for the pu rpose of

acquisition,   would   constitute   a   legally   binding   contract,   even

under the scheme and framework of the Indian Contract Act, 1872

(“Contract Act” for short). 

Pallavi/Mayur 13/22

                                                                      14                        J-WP-5159-2026 (C).doc

32.At this juncture, we deem it apposite to refer to the following

provisions of the Contract Act, which read thus:-

“2(a)    When   one   person   signifies   to   another   his   willingness   to   do   or   to

abstain from doing anything, with a view to obtaining the assent of

that other to such act or abstinence, he is said to make a proposal.

2(b)    When the person to whom the proposal is made signifies his assent

thereto,   the   proposal   is   said   to   be   accepted.   A   proposal,   when

accepted, becomes a promise.

 ………….

2(d)  When, at the desire of the promisor, the promisee or any other person

has done or abstained from doing, or does or abstains from doing, or

promises   to   do   or   to   abstain   from   doing,   something,   such   act   or

abstinence or promise is called a consideration for the promise.”

        …………..

“10. What agreements are contracts . - All agreements are contracts if

they are made by the free consent of parties competent to contract, for

a lawful consideration and with a lawful object, and are not hereby

expressly declared to be void.

Nothing herein contained shall affect any law in force in India and

not hereby expressly repealed by which any contract is required to

be made  in writing or  in the  presence  of  witnesses,  or any  law

relating to the registration of documents.”

33.Based on the above, it is evident that the Petitioners elected

FSI/TDR vide their acceptance in writing dated 9

th

  June 2016,

pursuant   to   the   offer   of   the   Respondents   vide   their

communication dated 29

th

  August 2013. In the given facts and

circumstances, we are clearly of the view that the offer of the

Respondent No.3 - PMC by communication dated 29

th

 August 2013

and the unequivocal acceptance of the same by the Pe titioners

vide possession receipt dated 9

th

 June 2016 constitutes a legally

binding and concluding contract between the parties. Such finding

is   returned   more   particularly   in   light   of   the   categorical

Pallavi/Mayur 14/22

                                                                      15                        J-WP-5159-2026 (C).doc

observations   recorded   by   the   Full   Bench   in  Shree   Vinayak

Builders and Developers, Nagpur   (supra) which are discussed

in the paragraphs to follow. 

34.In the aforesaid backdrop, we are, therefore, not persuaded

to accept the submission of Mr. Sabban to the effect that there is

no concluded contract in the given factual complexion. Despite

specific query put to him in this regard, we have not been able to

get any satisfactory response to buttress the Petitioners’ claim of

there being no concluded contract, in terms of the Full Bench

decision (supra).

35.We have duly perused the Letter dated 10

th

 February 2026

addressed   by   the   Petitioners   to   the   Respondent   No.3.  The

Petitioners for the first time vide the said communication, record

that they are not interested in accepting TDR in lieu of the subject

land   handed   over   for   acquisition   to   the   Respondents,   which

according to them, is not binding on the landowner. They would

on the other hand, insist for compensation in accordance with law

for the subject land of which they claim to be the owners. This

would tantamount to a complete change of stance at the behest of

the   Petitioners,   by   which   they   are   resiling   from   the   binding

contractual terms (supra), as mutually agreed upon. 

36.In the above context, it is apposite to refer to the decision of

Pallavi/Mayur 15/22

                                                                      16                        J-WP-5159-2026 (C).doc

the Supreme Court in  State of Haryana & Ors. Vs M/s. Jai

Durgaa Finvest P. Ltd.

10

. It was held therein that, in matters of

contract between the parties, the function of the Courts  is to

interpret and enforce the terms as has been agreed between the

parties.   The   Courts   will   not   re-write   the   terms   howsoever

reasonable the substituted term may appear to be. It was further

held   that   where   the   parties   have   committed   to   certain

unambiguous terms, the parties are bound by the same. Once the

parties with their eyes open, without any protest whatsoever and

with   free   will,   accept   certain   terms   of   a   contract   they cannot

afterwards be permitted to go back on the same merely because at

a later point of time the stipulation proves to be onerous. 

37.In light of the above, in the event we accept the claim of the

Petitioners for monetary compensation made for the first time in

the year 2026 despite a concluded contract taking place on 9

th

June 2016, we are not stopping short of re-writing such legally

binding concluded contract between the parties. Such recourse is

held   to   be  impermissible   in   law,   in   various   decisions   of   the

Supreme Court  inter alia,  General Assurance Society Ltd. vs.

Chandumull Jain and another

11

; Rajasthan State Industrial

Development & Investment Corporation vs. Diamond & Gem

10 2026 SCC OnLine SC 1323

11 AIR 1966 SC 1644

Pallavi/Mayur 16/22

                                                                      17                        J-WP-5159-2026 (C).doc

Development Corporation Ltd.

12

; Shree Ambica Medical Stores

vs. Surat People's Coop. Bank Ltd.

13

; and GMR Warora Energy

Ltd.   vs.   Central   Electricity   Regulatory   Commission

14

.  The

same were also re-iterated in a recent judgment of the Supreme

Court in Venkataraman Krishnamurthy And Another v. Lodha

Crown   Buildmart   Private   Limited

15

,  the   relevant   extract   of

which, for convenience, reads thus:- 

“16. In this regard, we may refer to the Constitution Bench decision in General

Assurance Society Ltd. vs. Chandumull Jain and another, wherein it was

observed that, in interpreting documents relating to a contract of insurance,

the duty of the Court is to interpret the words in which the contract is

expressed by the parties because it is not for the Court to make a new

contract, however reasonable, if the parties have not made it themselves.

Thereafter,   in  Rajasthan   State   Industrial   Development   &   Investment

Corporation vs. Diamond & Gem Development Corporation Ltd., this Court

reiterated that a contract, being a creature of an agreement between two or

more parties, is to be interpreted giving the actual meaning to the words

contained in the contract AIR 1966 SC 1644 (2013) 5 SCC 470 and it is not

permissible for the Court to make a new contract, however reasonable, if the

parties have not made it themselves. 

17.  More recently, in Shree Ambica Medical Stores vs. Surat People   's Coop. Bank   

Ltd., it was observed that, through its interpretative process, the Court can-

not rewrite or create a new contract between the parties and has to simply

apply the terms and conditions of the agreement as agreed between the par-

ties. Again, in GMR Warora Energy Ltd. vs. Central Electricity Regulatory

Commission, it was observed that Courts cannot substitute their own view of

the presumed understanding of commercial terms by the parties, if the terms

are explicitly expressed. It was held that the explicit terms of a contract are

always the final word with regard to the intention of the parties.”

(Emphasis supplied)

In  our view,  captured  in essence,  the   ratio in the  above

judgments   clearly   would   be   that,   the   Courts   exercising   writ

12  (2013) 5 SCC 470

13 (2020) 13 SCC 564

14 (2023) 10 SCC 401

15 (2024) 4 SCC 230)

Pallavi/Mayur 17/22

                                                                      18                        J-WP-5159-2026 (C).doc

jurisdiction ought not to pass any order/directions which would

result   in   making   a   new   contract   or   re-writing   the   same.  We,

therefore   cannot   countenance   the   stand   espoused   by  the

Petitioners, as the law would clearly not support the same.

38.We have carefully perused the decision of the Full Bench of

this Court in Shree Vinayak Builders and Developers, Nagpur

(supra).   The   Full   Bench   in   paragraph   34   of   the   decision  has

clearly   contemplated   existence   and   or   non-existence   of   a

concluded contract. Accordingly, it is held that if there exists a

concluded contract between the parties, the landowner or lessee

cannot withdraw his request for compensation and/or ref use to

surrender the land. In other words, the parties are bound to act

on   the   terms   and   conditions   of   such   concluded   contracts.

However,   the   existence   of   a   concluded   contract   would   be  a

question of fact to be determined in the facts and circumstances of

every   case.   In   such   view   of   the   matter,   the   decision   of   the

Petitioners to refuse to accept FSI/TDR as compensation and to

insist   only   on   monetary   compensation   would   effectively   mean

changing the terms of a concluded contract and seekin g such

relief in writ jurisdiction, is legally impermissible.

Pallavi/Mayur 18/22

                                                                      19                        J-WP-5159-2026 (C).doc

39.At this juncture, it would be relevant to refer to Section 126

(1) of the MRTP Act, which is reproduced below :-

“126. Acquisition of land required for public purposes specified in plans -

(1) When after the publication of a draft Regional Plan, [Structure

plan] a Development or any other plan or town planning scheme,

any land is required or reserved for any of the public purposes

specified in any plan or scheme under this Act at any time the

Planning Authority, Development Authority, or as the case may

be, any Appropriate Authority may, except as otherwise provided

in section 113A acquire the land, -

(a)  by agreement by paying an amount agreed to, or

(b)  in lieu of any such amount, by granting the land-owner or the

lessee,   subject,   however,   to   the   lessee   paying   the   lessor   or

depositing with the Planning Authority, Development Authority

or Appropriate Authority, as the case may be, for payment to the

lessor, an amount equivalent to the value of the lessor's interest

to be determined by any of the said Authorities concerned on the

basis   of   the   principles   laid   Acquisition,   Rehabilitation   and

Resettlement Act, 2013), Floor Space down in the Right to Fair

Compensation   and   Transparency   in   Land   Index   (FSI)   or

Transferable Development Rights (TDR) against the area of land

surrendered free of cost and free from all encumbrances, and

also   further   additional   Floor   Space   Index   or   Transferable

Development Rights against the development or construction of

the amenity on the surrendered land at his cost, as the Final

Development   Control   Regulations   prepared   in   this   behalf

provide, or

(c)  by making in application to the State Government for acquiring such land

under   the   provisions   of   the   Right   to   Fair   Compensation   and

Transparency in Land Acquisition, Rehabilitation and Resettlement Act,

2013],

and   the   land   (together   with   the   amenity,   if   any,   so   developed   or

constructed) so acquired by agreement or by grant of Floor Space Index

or   additional   Floor   Space   Index   or   Transferable   Development   Rights

under sections for under the provisions of the Right to Fair Compensation

and Transparency in Land Acquisition, Rehabilitation and Resettlement

Act,   2013],   as   the   case   may   be,   shall   vest   absolutely   free   from   all

encumbrances in the Planning Authority. Development Authority, or as

the case may be, any Appropriate Authority.”

(Emphasis supplied)

Apropos the above, we find that the facts of the given case

are such that the conditions under Section 126(1)(b) are duly

fulfilled.   In   view   thereof,   the   acquisition   proceedings   are

Pallavi/Mayur 19/22

                                                                      20                        J-WP-5159-2026 (C).doc

undertaken clearly by consensus of both the Petitioners and the

Respondent – Authorities, and not merely at the instance of the

Respondent – Authorities.   Accordingly, the reliance on the Full

Bench decision (supra) by the Petitioners, is like carrying coal to

New Castle, which does not take the case of the Petitioners any

further.

40.Similarly, the other decisions cited by the Petitioners in the

case of Makarand Sharad Pande & Ors.  (supra), Lata Balaso

Patil (supra), Sushant Sureshrao Charjan  (supra) and Minakshi

Pramod Sonar (supra) will not come to the aid/assistance of the

Petitioners   primarily  on  the   ground   that  there  is  a  concluded

contract in the given factual complexion, unlike the facts situation

in those cases. Even on such count, those decisions are clearly

distinguishable on facts and the Petitioners cannot insist on the

relief of monetary compensation, in the given case, by relying on

those authorities.

41.We may observe that, had the converse been true and  in

case there was no concluded contract between the parties, then

the Petitioners' case for claiming monetary compensation would

have had some substance, as held in a recent co-ordinate bench

decision  of   this   Court   in  Purnima   Talkies   vs  Chief   Officer,

Pallavi/Mayur 20/22

                                                                      21                        J-WP-5159-2026 (C).doc

Dahanu   Nagar   Parishad,   Dahanu

16

, which   is   not   the   case,

before us.

42.The Affidavit-in-Reply of the Respondent No.3 dated 22

nd

 July

2026   discloses   that   the   representation   of   the   Petitioner   for

monetary compensation was rejected pursuant to the order of the

coordinate Bench this Court dated 7

th

 May 2026. Be that as it may.

In light of our analysis above, we are not persuaded to accept the

case of the Petitioners and/or grant any relief in the given facts

and circumstances.

43.The   Petitioners   have   placed   reliance   by   way   of   written

submissions on the decision of this Court in  Tukaram Kana

Joshi  &   Ors.  (supra) and  Sukh   Dutt   Ratra  (supra).   These

judgments mainly deal with delay and laches and that there is a

continuing cause of action for persons claiming compensation. In

our view, such decisions in the given factual complexion lend no

assistance to the Petitioners. There being no quarrel with such

principle laid down therein, however, the same would not apply in

the present case. 

44.For all the above reasons, in our considered view, the Writ

Petition is devoid of merit. Accordingly, Rule is Discharged and the

Writ Petition is Dismissed. 

16 2025 SCC OnLine Bom 326

Pallavi/Mayur 21/22

                                                                      22                        J-WP-5159-2026 (C).doc

45.Before parting, we clarify that the Petitioners are at liberty to

submit   a   proposal   for   compensation   in   form   of   FSI/TDR,   in

accordance   with   the   prescribed   procedure   to   the   Competent

Authority/Officer of the Respondents which, in the absence of any

other   impediment   can   be   considered,   in   accordance   with  law,

expeditiously. 

      [ADVAIT M. SETHNA, J.]     [CHIEF JUSTICE] 

Pallavi/Mayur 22/22

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