I. P. Mukerji, J. - (1.) The question to be answered in this case is whether the Kolkata Metropolitan Development Authority (KMDA), the respondent no.2 can, as the lessor of the subject land demand any penal charges for delayed construction by the lessee Siddhartha Co-operative Housing Society Ltd. the petitioner and for the extension of time granted by them to it, to complete it.
(2.) The facts are these.
(3.) On 8th March, 2001 the said respondent by a lease deed granted a 99 year's lease to the petitioner of the subject land with a condition that they had to complete the construction on it within three years. There is no doubt that the petitioner made considerable delay in submitting the building plan for sanction. In fact, it was submitted for sanction in 2006 and sanctioned in September of the same year. Although in May, 2009 the respondent authority was contemplating determination of the lease by issuing a show cause notice dated 5th May, 2009 asking the petitioner why the lease should not be determined, it took no steps in that direction. It extended the time to complete the construction upto 31st December, 2011. On 5th January, 2012 they wrote to the petitioner stating that since the time period for completion of the work had been extended from 8th March, 2004 till 31st December, 2011, they were required to pay Rs. 37,53,974 to the authority as penal charge for delayed construction. Again by a letter dated 5th October, 2012 time was extended till 30th September, 2012, subject to payment of Rs. 42,48,216/- as penal charges. Again by the letter dated 19th October, 2012 time to make construction was extended till 31st March, 2013 upon making payment of Rs. 45,87,258 as penal charges. On 20th January, 2016 another notice was issued by the respondent authority demanding Rs. 1,95,14,488 from the petitioner as penal charges from 8th March, 2004 to 29th February, 2016.;