In Brief
A public trust challenged a development agreement clause requiring free transfer of land reserved for public utility purposes to the Nagpur Improvement Trust (NIT). The Supreme Court upheld the High Court's dismissal, holding that the clause was valid and enforceable. The agreement created reciprocal obligations: while the trust transferred public utility land to NIT, it received substantial consideration—abandonment of land acquisition proceedings and immediate permission to develop and commercially exploit the remaining land. The Court found no unconscionable terms or unequal bargaining power, and held the clause was neither void nor opposed to public policy. The doctrine of approbation-reprobation prevented the trust from accepting beneficial terms while rejecting obligations."
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