In a significant relief for M/s Springdale Resorts and Villas Pvt. Ltd., the Himachal Pradesh High Court has quashed the state government’s decision that denied an extension for the company’s integrated housing project at Solan. The court, presided over by Justice Ajay Mohan Goel, held that the developer had already “put the land to use” as per law and that authorities had erred by adopting a rigid and narrow reading of Section 118 of the H.P. Tenancy and Land Reforms Act, 1972.
Background
Springdale Resorts had acquired over 144 bighas in Anech, Solan, intending to build an integrated housing project. Permission under Section 118-mandatory for non-agriculturists purchasing land in Himachal was granted in 2014. The company’s journey since then, however, was anything but smooth.
Delays in registration, multiple no-objection certificates, and later, the COVID-19 pandemic, stretched timelines. The project’s permissions were extended until September 2021, and development permission was granted shortly before that, on September 18, 2021. The company claimed it had begun on-ground development, a fact supported by a village revenue officer’s certificate.
Despite this, the Town and Country Planning (TCP) Department in February 2024 declared that the land had not been utilized and demanded fresh permission under Section 118. The state government then rejected Springdale’s request for further extension in January 2025, prompting the company to move the High Court.
Court’s Observations
Justice Goel took a firm view that the authorities had misunderstood the spirit of the law. The bench noted, “The words ‘shall put the land to such use’ cannot be interpreted myopically as the respondents want the Court to read them.”
The court observed that the law did not demand full completion of a project within the stipulated period but merely required meaningful action toward the intended use. “If cogent steps stood taken by the project proponent, the condition of putting the land to use stands satisfied,” the judge stated.
He added that development of internal roads, drainage, and site work were substantive steps - not cosmetic. The judge also remarked that if the state’s rigid interpretation were applied, “most projects would fall into the trap,” given the long chain of mandatory approvals from multiple departments.
Citing earlier precedents such as Ravinder Chauhan v. State of Himachal Pradesh and State of H.P. v. Barog Resorts Pvt. Ltd., the bench emphasized that vesting land back to the government could not be automatic and must follow proper adjudication, especially when delays were due to administrative or uncontrollable reasons.
Decision
Allowing the petition, the High Court quashed the communications dated February 3, 2024, and January 17, 2025, through which the authorities had denied extension and declared the permission expired.
Justice Goel held that the company had indeed used the land for the purpose intended and that the permission under Section 118 “has not expired.” The court directed the government to consider Springdale’s revised project drawings in accordance with existing rules and to issue a decision within six weeks.
The matter ended on a decisive note, with the court’s interpretation offering much-needed clarity for developers operating in Himachal’s regulated real estate sector.
Case: M/s Springdale Resorts and Villas Pvt. Ltd. vs. State of Himachal Pradesh & Others
Case No.: CWP No. 3363 of 2025
Petitioner: M/s Springdale Resorts and Villas Pvt. Ltd.
Respondents: State of Himachal Pradesh & Others
Date of Decision: 26 September 2025