Builders In Kolkata Cannot Seek Extension For Construction After Expiry of Sanction Plan, Fresh Approval Necessary: Calcutta High Court

Setting aside a single bench order which directed the Kolkata Municipal Commissioner to renew an expired sanction plan of a builder, the Calcutta High Court has held that builders cannot file for extension of sanctioned building plans after expiry of the period permitted for construction and must obtain a fresh sanction, as per the Kolkata Municipal Corporation Act, 1980.

The division bench of Justices Arijit Banerjee and Rai Chattopadhyay said the Supreme Court has categorically stated in the Pune Cantonment Board & Anr. v. M.P.J. Builders & Anr that unless time is extended on an application made before the expiry of sanction, the sanction lapses and the construction activities cannot be continued thereafter without a fresh sanction. 

"Thus, the application for extension of validity of the sanctioned plan must be made before the time permitted for completing the construction expires. In the present case nothing stopped the writ petitioner from making such application for extension of time prior to February 20, 2020, when the validity period of the sanctioned plan expired. Not having done so, the writ petitioner will have to face the consequences. In order to be able to carry on with the construction activities, the writ petitioner will have to obtain fresh sanction," said the division bench.

The judgement dated September 30 has been passed on an appeal filed by the Kolkata Municipal Corporation against the single bench's order of April 21, 2022. In the case, a building plan was sanctioned by the KMC in favour of the private respondents granting sanction for construction of a multi-storied building. The building plan was valid for a period of five years.

Before the expiry of the plan, the respondents were instructed by police officials to stop the construction work. Despite requests to the police officials, their demands to resume work were not acceded to. The police had made the demand in view of a municipal circular on height restrictions of buildings in that particular zone.

Meanwhile, the validity of the sanctioned plan expired. After the expiry, the respondents made an application to the KMC, seeking extension of the plan for another term. With representation not having been responded to, the matter reached court.

The single bench directed the Commissioner to renew the sanction plan and extend the period of completion of construction. Aggrieved by the decision of the single bench, the KMC approached the High Court in appeal.

The counsel representing the KMC argued that the question of extension of time to complete any construction work can only arise when application for extension is made before the expiry of the sanctioned plan and that there cannot be extension of something which does not exist anymore.

Furthermore, it was argued that if a builder allows the stipulated time period to expire without applying for extension of time prior thereto, the only way such builder can continue with the construction work is after obtaining a fresh sanction. Reliance was placed by KMC on the Supreme Court decisions in Pune Cantonment Board and Another v. M.P.J. Builders and Another, (1996) 5 SCC 438 and Provash Chandra Dalui and Another v. Biswanath Banerjee & Another, 1989 Supp (1) SCC 487.

With regard to police action, the KMC told the court the circular was not made applicable to the case of private respondents.