Urban Land Ceiling Encumbrance Exemption – Premium for Surplus land

The petitioner was granted lease of the land adm 25,762 sq.mts at Wellesley Road, Pune City, for 97 years from 1.9.1963.

On 29.2.1980, the exemption Order under Section 20(1) of the ULC Act was passed provided the said land (retainable 11,596 sq.mt and 13,166 sq.mt surplus land) was used for industrial purpose.

In 1999, the ULC Act was repealed.  On 29.11.2007, the State adopted the Repeal Act.

On 26.8.2022, the petitioner applied to the respondent no.2 to retain Section 20 exemption granted in 1980 and to utilize the whole land for development.

On 10.11.2022, as per the Government Resolution dated 1.8.2019, levided lump sum premium at 15% of the prevailing annual market rate of the land.

On 11.11.2022, the petitioner deposited the premium of Rs.10,47,47,849/-.

On 6.3.2023, the petitioner executed sale deed with third party purchaser.

On 21.8.2024, the petitioner filed the writ petition challenging that the premium was levied and collected on the entire land instead of only surplus land.    The petitioner, therefore, claimed refund of Rs.5,30,95,030/- as per earlier decision in Porbanderwalla case.

HELD that the petitioner did not question the government resolutions or State policy either before payment or subsequent to premium but before transferring the land to the third parties on 26.4.2023.  Thus, the petitioner acted with open eyes in depositing premium but changing its position by transferring the land to a third party.  The law would not permit the petitioner to take a somersault and upset the concluded position.

A legal right which may accrue to a party can be waived and such party would be estopped / precluded from raising any question on breach of a right which stood waived.

Judgment dated 13.3.2025 of the High Court of Bombay in Writ Petition No.12014 of 2024 (AS) of Sudarshan Chemical Industries Ltd  Vs.  The State of Maharashtra and another.