Binding Nature of Possession Receipts and TDR Choices Under the MRTP Act

sketch of the Bombay High Court
Case
L B KUNJIR THR ITS PARTNER v. THE STATE OF MAHARASHTRA THR THE PRINCIPAL SECRETARY AND ORS (Bombay High Court, 24-09-2026)
Law
Maharashtra Regional and Town Planning Act, Indian Contract Act, Constitution of India, Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act.

Highlights of the Judgment:

  • Detailed interpretation of Section 126(1)(b) of the MRTP Act regarding land acquisition through agreement and FSI/TDR compensation.
  • Application of Sections 2 and 10 of the Indian Contract Act, 1872, in establishing a concluded contract via possession receipts.
  • Examination of whether landowners can unilaterally resile from mutually agreed FSI/TDR terms to demand monetary compensation.
  • Analysis of judicial limitations against rewriting unambiguous contractual obligations between parties in writ jurisdiction.
  • Differentiation between coercive acquisition and consensual statutory agreements under urban planning frameworks.