Punjab Urban Planning & Dev.Auth.& Ors vs Raghu Nath Gupta & Ors

The Supreme Court ruled that the Punjab Urban Planning and Development Authority (PUDA) cannot claim interest, penal interest, or penalties for delayed payments from the respondents due to PUDA's own delay in providing essential amenities as per the auction agreement. The Court upheld the High Court's decision, which relied on the precedent set in Municipal Corporation, Chandigarh v. Shantikunj Investment (P) Ltd. (2006) 4 SCC 109, establishing that a party cannot benefit from its own delay in performance. Consequently, the appeals were dismissed, affirming the High Court's ruling.