Supreme Court Judgment | Writ Jurisdiction & Town Planning
Supreme Court Holds High Court Should Not Have Dismissed Writ Petitions Merely for Delay and Laches
In Kukreja Construction Company & Ors. v. State of Maharashtra & Ors., the Supreme Court held that the Bombay High Court was not justified in rejecting certain writ petitions solely on the ground of delay and laches where the petitioners sought implementation of the Court's earlier ruling on additional FSI/TDR for amenities constructed on surrendered land.
Supreme Court ruling in brief
The Supreme Court set aside those portions of the Bombay High Court's order that had dismissed the writ petitions on the ground of delay and laches. It directed the Mumbai Municipal Corporation to consider the petitioners' claims for balance FSI/TDR in light of the Court's earlier decision in Godrej & Boyce Manufacturing Co. Ltd. v. State of Maharashtra.
The Court also dismissed the connected appeals filed by the Municipal Corporation challenging decisions that had granted relief on merits.
Applicable law and present regulatory position
The dispute arose under the Maharashtra Regional and Town Planning Act, 1966 and the Development Control Regulations for Greater Bombay, 1991, particularly Regulation 34 and Appendix VII as they then stood.
The claim concerned compensation in the form of Floor Space Index (FSI) or Transferable Development Rights (TDR) under Section 126(1)(b) of the MRTP Act where reserved land was surrendered and the owner also constructed the required amenity at its own cost.
For current development-control matters in Greater Mumbai, the applicable regulatory framework is now the Development Control and Promotion Regulations for Greater Mumbai, 2034 (DCPR 2034). The 2024 Supreme Court judgment, however, decides rights arising under the earlier DCR 1991 regime and should be read in that historical statutory context.
Background of the dispute
The writ petitioners held plots shown as reserved in the sanctioned development plan under the Maharashtra Regional and Town Planning Act, 1966 for Development Plan Roads.
According to the petitioners, they constructed the Development Plan Roads at their own cost and voluntarily surrendered the reserved lands to the Mumbai Municipal Corporation. In return, they were granted FSI and/or TDR in the form of Development Rights Certificates equal to the gross area of the land surrendered.
Additional FSI/TDR for construction of amenities
Under the then-prevailing Para 6 of Appendix VII to the DCR 1991, where an owner or lessee also developed or constructed an amenity on the surrendered plot at his own cost and handed over the completed amenity to the Municipal Commissioner, additional development rights were contemplated for the construction or development undertaken.
Circulars dated 9 April 1996 and 5 April 2003 had limited such additional development rights to 15 per cent and later 25 per cent of the area of the Development Plan Road constructed by the owner or lessee.
Effect of Godrej & Boyce decision
In Godrej & Boyce Manufacturing Co. Ltd. v. State of Maharashtra, (2009) 5 SCC 24, the Supreme Court interpreted the expression "equivalent" in Para 6 of Appendix VII and held that an owner or lessee who constructed the amenity at its own cost was entitled to FSI/TDR equivalent to 100 per cent of the area of the amenity constructed, rather than merely 15 or 25 per cent.
The writ petitioners later claimed that they were entitled to the balance additional TDR in accordance with that ruling.
2016 amendment to Regulation 34
By notification dated 16 November 2016, Regulation 34 of the DCR was amended and Appendix VII was substantially altered. This led to disputes over whether the amendment could operate retrospectively or retroactively against rights that had already accrued under the earlier regulatory regime.
Why delay and laches became an issue
Some of the writ petitions were dismissed by the Bombay High Court on the ground that the petitioners had approached the Court after substantial delay. The petitioners argued that their claims arose from the Supreme Court's authoritative interpretation of the DCR in Godrej & Boyce and that similarly situated parties had already received relief.
Key holding: in the circumstances of these cases, the High Court should not have refused to examine the claims merely because of delay and laches. The claims had to be considered in the light of the binding legal position declared in the earlier Supreme Court decisions.
Supreme Court's decision on delay and laches
The Supreme Court held that the Bombay High Court was not right in dismissing the writ petitions on the ground of delay and laches. The relevant portions of the High Court order were therefore set aside.
The Court directed the Mumbai Municipal Corporation to consider the cases of the writ petitioners in light of the earlier judgments in Godrej & Boyce and release the balance FSI/TDR found due.
The Supreme Court concluded that the writ petitions could not, in the facts of the case, be shut out solely for delay and laches when the petitioners sought implementation of the legal position already declared by the Court.
Special direction in Kukreja Construction appeal
In the case of Kukreja Construction Company and the other appellants in the lead appeal, the Municipal Corporation was directed first to examine the nature of the amenities constructed and then consider the claim for additional FSI/TDR.
The Supreme Court directed that the exercise be completed as expeditiously as possible and within three months from the date of the judgment.
Municipal Corporation's connected appeals
The Supreme Court found no merit in the three connected appeals filed by the Mumbai Municipal Corporation. It upheld the reasoning of the High Court on the merits in those matters and directed release of the balance FSI/TDR in accordance with the earlier Supreme Court rulings.
Legal significance of the judgment
The judgment does not create a general rule that delay can never defeat a writ petition. Delay and laches remain relevant discretionary considerations in proceedings under Article 226 of the Constitution.
Its significance lies in the Court's application of that doctrine to the particular facts before it: where the claim involved implementation of a legal entitlement already clarified by binding Supreme Court precedent and similarly situated claims had been adjudicated, the High Court ought not to have rejected the petitions solely on delay.
Final directions
The civil appeals filed by the writ petitioners were allowed to the extent indicated by the Supreme Court. The portions of the High Court order dated 18 December 2018 dismissing the petitions for delay and laches were set aside, and the Mumbai Municipal Corporation was directed to reconsider and release balance FSI/TDR in accordance with the governing judgments.
The connected appeals filed by the Mumbai Municipal Corporation were dismissed.
Download the judgment
Kukreja Construction Company & Ors. v. State of Maharashtra & Ors., 2024 INSC 692, Civil Appeal No. 9702 of 2024 and connected appeals, decided on 13 September 2024.
Last reviewed and legally updated: 5 September 2026.