Case Note & Summary
The petitioner, Sudarshan Chemical Industries Ltd., was a beneficiary of an exemption order dated 29 February 1980 under Section 20(1) of the Urban Land (Ceiling and Regulation) Act, 1976 (ULC Act), which exempted its land from Chapter III of the Act subject to the condition that the land be used only for industrial purposes. The land admeasured 25,762 sq. meters, comprising retainable land of 11,596 sq. meters and surplus land of 13,166 sq. meters. After the ULC Act was repealed in Maharashtra in 2007, the State Government issued Government Resolutions dated 1 August 2019 and 23 June 2021, offering to close all pending issues under Section 20 by accepting a one-time premium. The petitioner applied under these Resolutions and, on 11 October 2022, paid a premium of Rs.10,47,47,849/- (15% of the prevailing annual market rate of the entire land). Consequently, on 20 October 2022, the State Government declared the land free from ULC encumbrances. Thereafter, on 6 April 2023, the petitioner sold the land to third parties via a Deed of Conveyance. Subsequently, the petitioner relied on a Division Bench judgment of this Court in Salim Alimohomed Porbanderwalla and Anr. vs. State of Maharashtra & Anr. (2023 SCC OnLine Bom 731), which held that premium could not be charged on retainable land. The petitioner then filed a representation on 5 July 2023 seeking refund of Rs.5,30,95,030/- allegedly paid on the retainable land, and thereafter filed the present writ petition. The Court held that the petitioner, having voluntarily availed the benefit of the Government Resolutions, paid the premium without protest, obtained release of the land, and sold it to third parties, cannot now seek a refund. The Court noted that the petitioner had altered its position and that granting a refund would result in unjust enrichment. The Court also observed that the petitioner had not challenged the demand at the time of payment and had accepted the terms and conditions. The petition was dismissed with no order as to costs.
Headnote
A) Constitutional Law - Writ Jurisdiction - Money Claim - Refund of Premium - Petitioner voluntarily paid premium under Government Resolutions to obtain release of land from ULC Act encumbrances, sold the land to third parties, and thereafter sought refund based on a subsequent judgment - Held that the petitioner cannot claim refund after having availed the benefit and altered its position, as it would result in unjust enrichment (Paras 1-35). B) Urban Land Ceiling - ULC Act - Section 20 Exemption - Government Resolution - Premium on Retainable Land - Petitioner challenged demand of premium on retainable land relying on Porbanderwalla decision - Held that the petitioner, having accepted the terms and conditions of the Government Resolution and sold the land, is estopped from challenging the computation of premium (Paras 14-35). C) Contract Law - Unjust Enrichment - Refund - Petitioner paid premium, obtained release, sold land, and then sought refund - Held that granting refund would result in unjust enrichment as the petitioner has already enjoyed the benefit of the release and sale (Paras 30-35).
Issue of Consideration
Whether the petitioner, after voluntarily paying premium under Government Resolutions dated 1 August 2019 and 23 June 2021, obtaining release of land from ULC encumbrances, and selling the land to third parties, is entitled to a refund of the premium paid on the retainable land based on a subsequent judgment of this Court.
Final Decision
The writ petition is dismissed. No order as to costs.
Law Points
- Estoppel
- Unjust Enrichment
- Voluntarily Availing Benefit
- No Right to Refund After Sale
- Government Resolution Interpretation
