# In the matter of Kher Nagar Sukhsadan Co-operative Housing Soc Ltd. vs. The State of Maharashtra & Ors.

> HC judgment dated 2024-09-11. Citation: TCN-2024-HC-00031. Kher Nagar Sukhsadan Co-operative Housing Society Ltd. (the Petitioner) filed a writ petition in…

- **Court:** HC
- **Order date:** 11 Sept 2024
- **Citation:** TCN-2024-HC-00031
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/kher-nagar-sukhsadan-co-operative-housing-soc-ltd-vs-the-state-of-maharashtra-or-87e74ca7

## Summary

### Background

Kher Nagar Sukhsadan Co-operative Housing Society Ltd. (the Petitioner) filed a writ petition in the High Court of Judicature at Bombay seeking directions for the State of Maharashtra and MHADA to grant permissions and approvals for the redevelopment of their building. The Petitioner's building was declared unfit for habitation and categorized as 'C-1'. The Petitioner had entered into a Development Agreement (DA) with AA Estates Private Limited for redevelopment, but AA Estates failed to complete the work within the stipulated time. The Petitioner terminated the agreement with AA Estates, which was subsequently admitted into the Corporate Insolvency Resolution Process (CIRP). The Resolution Professional (RP) appointed for AA Estates issued letters to the authorities

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## Facts

Kher Nagar Sukhsadan Co-operative Housing Society Ltd. owned a building on land leased by MHADA. On 2005-10-16, the Petitioner entered into a Development Agreement (DA) with AA Estates Private Limited for redevelopment, granting redevelopment rights. AA Estates was to complete the work within 24 months, but failed to take any steps for seven years, only obtaining a No Objection Certificate (NOC) from MHADA by 2012-01-05. On 2014-04-09, the Petitioner executed a Supplemental Development Agreement with AA Estates. AA Estates obtained an IOD on 2014-09-04. The BMC issued notices under Section 353(b), 354, and 354A of the Mumbai Municipal Corporation Act, 1888, declaring the building in the C-1 category. 19 out of 60 members vacated their premises due to the dilapidated

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## Issues and analysis

### Issue 1: Whether the redevelopment rights of the Petitioner's property form a property of AA Estates and are …

**Ratio:** The redevelopment rights of the Petitioner's property do not form a property of AA

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**Reasoning:** The court reasoned that AA Estates failed to perform their part of the obligations under

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**Interpretation:** This means that the rights to redevelop the property belong to the Petitioner

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**Application:** Since the redevelopment rights are not an asset of AA Estates, the moratorium

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## Parties

- **Judges:** M.S. S…; Kamal K…
- **Appellants:** Kher Nagar…
- **Respondents:** A A Estates…; The State of…
- **Other parties:** Kohi…

## Timeline

- **1996-02-12 — Lease Agr…**: MHADA leased the plot of…
- **2005-10-16 — Development A…**: The Petitioner entered into a Development…

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