# In the matter of Jai Prakash Associates Ltd. vs. State of U.P. and another

> HC judgment dated 2025-03-10. Citation: TCN-2025-HC-00034. The case involves a writ petition challenging the cancellation of land allotment to M/S Jai Prakash…

- **Court:** HC
- **Order date:** 10 Mar 2025
- **Citation:** TCN-2025-HC-00034
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/jai-prakash-associates-ltd-vs-state-of-up-and-another-9be302b0

## Summary

### Background

The case involves a writ petition challenging the cancellation of land allotment to M/S Jai Prakash Associates Limited (JAL) by Yamuna Expressway Industrial Development Authority (YEA). JAL was allotted land to develop a Special Development Zone (SDZ) with 'sports' as its core activity. Over time, JAL faced financial difficulties, defaulted on payments, and failed to complete the required development. YEA cancelled the allotment, leading to the writ petition. The petition was amended to include challenges to subsequent resolutions and letters related to restoration charges and re-computation of dues. Several homebuyers were impleaded as parties. The case also involves insolvency proceedings against JAL.

## Facts

M/S Jai Prakash Associates Limited (JAL) was allotted land by Yamuna Expressway Industrial Development Authority (YEA) to develop a Special Development Zone (SDZ) with 'sports' as its core activity. Six allotment letters were issued between 2009 and 2011, covering 1085.3327 hectares. 32 lease deeds were executed for 965.7390 hectares. JAL defaulted on payments, leading YEA to issue multiple default notices. JAL requested rescheduling of payments, which was initially granted but later defaulted upon. YEA invoked a performance bank guarantee and entered into an Escrow Agreement, but JAL failed to honor its commitments. YEA cancelled the allotment on 12.02.2020, citing non-payment of installments. JAL was admitted into insolvency on 03.06.2024. Homebuyers of various

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## Issues and analysis

### Issue 1: Whether the writ …

**Ratio:** The scope of judicial review under Article 226 is limited in contractual disputes.

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**Reasoning:** The court considered arguments from both sides regarding the maintainability of the writ

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**Interpretation:** The court interpreted the legal precedents regarding the maintainability of

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**Application:** The court held that the impugned order of cancellation is being challenged as

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## Parties

- **Judges:** Manoj Kumar…; Kshitij Sha…
- **Respondents:** M/S JAI PRAKASH…; State Of…

## Timeline

- **2001-04-24 — TEA Consti…**: Government of Uttar Pradesh constituted Taj Express Industrial Development Authority…
- **2008-02-29 — YEA Invit…**: YEA invited applications from interested…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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