VidhiSangh

Supreme Court of India · 29/11/2021

THE VICE CHAIRMAN & MANAGING DIRECTOR, CITY AND INDUSTRIAL DEVELOPMENT CORPORATION OF MAHARASHTRA LTD.& ANR. versus SHISHIR REALTY PRIVATE LIMITED & ORS. ETC

[2021] 13 S.C.R. 190 · 2021 INSC 797

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

The Court upheld the setting aside of CIDCO’s cancellation of land allotment and related permissions. The cancellation followed a predetermined inquiry, relied on technical objections already known to the authority, and failed to establish substantive illegality or public loss. The contract permitted discretionary change of use and transfer; the approved changes reflected material commercial circumstances. Public interest required evidence rather than an assertion of potentially higher revenue, particularly after the allottees had paid substantial sums and relied on official permissions.

Issues

  1. Whether CIDCO’s cancellation complied with natural justice and rested on sustainable contractual grounds.
  2. Whether the approved change of use, subdivision and transfer justified annulment of the allotment.
  3. Whether asserted public interest displaced the allottees’ reliance and promissory estoppel.

Provisions considered

Held

Result

Civil appeals dismissed with costs. The High Court judgment setting aside CIDCO’s cancellation remained in force; pending applications disposed of.

Judgment PDF: Supreme Court of India, [2021] 13 S.C.R. 190.