In Brief
Unitech Limited paid Rs. 165 crores to acquire land for a development project based on representations by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) that it had clear title. When the Government of Andhra Pradesh's title to the land was conclusively denied by the Supreme Court in 2015, Unitech sought refund with interest. The High Court and Supreme Court held that Unitech was entitled to refund of the principal amount plus interest at the SBI Prime Lending Rate from the respective payment dates, though simple rather than compounded. The Court rejected arguments that the writ petition was not maintainable despite an arbitration clause, finding that state instrumentalities cannot escape their constitutional duty to act fairly. The Court clarified that TSIIC (the successor entity) would bear the refund obligation, while being at liberty to pursue apportionment remedies against APIIC.</summary_100> </invoke>
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