Land Lease - The Legal Chamber

The Supreme Court held that an agreement to sell flats, which was contingent upon construction violating building bye-laws and the master plan, was unlawful and void under Section 23 of the Indian Contract Act. The Court ruled that specific performance cannot be granted for an illegal contract, and courts cannot rewrite or sever its essential, unlawful terms to make it enforceable. Facts Of The Case: In December 1984, Canara Bank entered into an agreement with K.L. Rajgarhia to purchase residential flats to be constructed on his plot in East of Kailash, Delhi, for ₹32,07,500. The bank paid approximately 90% of the consideration upfront. The agreement specified the construction and sale of eight flats and a basement, with completion required within 18 months. When the defendant failed to ...

The Supreme Court ruled that a writ court cannot travel beyond the reliefs sought in the petition and pass adverse orders that render a petitioner worse off. Such directions, issued without notice, violate principles of natural justice. A litigant cannot be penalized for approaching the court, as it would seriously impact access to justice. Facts Of The Case: The case involved the Cochin Devaswom Board and the Chinmaya Mission Trust. The Trust had been allotted land in 1974 near the Vadakkunnathan Temple in Thrissur to build a hall for marriages and cultural activities, for an annual license fee of Rs. 101. After subsequent allotments, the total fee was fixed at Rs. 227.25 per annum. In 2014, the Board unilaterally enhanced this fee to Rs. 1,50,000 per annum. The Trust challenged this dr...

Tag: Land Lease

When a Contract Becomes Void: Supreme Court Explains the Limits of Specific Performance

Natural Justice Upheld: Supreme Court Says Parties Must Be Heard on Adverse Directions