3.7.  Challenge Period and Judicial Review

3.7.1.  Where the Authority directs the Contractor to proceed to implement a Satisfactory Planning Permission without allowing the Challenge Period to elapse in respect of any relevant decision pursuant to paragraph 3.1 (Satisfactory Planning Permission) and a challenge is instituted within the Challenge Period the Authority shall indemnify and keep indemnified the Contractor for all costs, losses, expenses and liabilities reasonably and properly incurred up to the point at which the challenge is finally determined and the Contractor shall mitigate such costs, losses, expenses and liabilities provided that any indemnification of any costs, losses, expenses or liabilities shall be calculated on the basis that the Contractor should be in no better or no worse position than it would have been in had such costs, losses, expenses or liabilities not arisen.

3.7.2.  In the event that a Judicial Review Challenge is instituted in respect of a Planning Permission during the Challenge Period then any Planning Permission which would otherwise be deemed to be a Satisfactory Planning Permission shall be deemed to be and to have always been an Unsatisfactory Planning Permission until such time as the Judicial Review Challenge is dismissed, withdrawn, quashed or defeated.