# A A Estates Private Limited & Anr. vs. Kher Nagar Sukhsadan Co-operative Housing Society Ltd. & Ors.

> SC judgment dated 2025-11-28. Citation: TCN-2025-SC-00107. Appellant No. 1 (Corporate Debtor) entered into development agreements with Respondent No. 1…

- **Court:** SC
- **Order date:** 28 Nov 2025
- **Citation:** TCN-2025-SC-00107
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/a-a-estates-private-limited-anr-vs-kher-nagar-sukhsadan-co-operative-housing-soc-72068

## Summary

### Background

Appellant No. 1 (Corporate Debtor) entered into development agreements with Respondent No. 1 Society for a redevelopment project. Due to prolonged delays and persistent non-performance by Appellant No. 1, the Society terminated these agreements and subsequently appointed Respondent No. 8 as a new developer. During the pendency of a Corporate Insolvency Resolution Process (CIRP) against Appellant No. 1, Respondent No. 1 Society filed a writ petition in the High Court seeking directions for statutory authorities to grant necessary approvals for redevelopment with the new developer. The High Court allowed the writ petition, which the appellants challenged before the Supreme Court, arguing that the termination was invalid, the development rights constituted assets

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## Facts

Appellant No. 1 (A A Estates Private Limited) is the Corporate Debtor undergoing Corporate Insolvency Resolution Process (CIRP).

Appellant No. 2 (Mr. Harshad Shamkant Deshpande) is the Resolution Professional appointed for Appellant No. 1.

Respondent No. 1 (Kher Nagar Sukhsadan Co-operative Housing Society Ltd.) preferred a writ petition (WP No. 3893 of 2024) before the High Court.

The writ petition sought mandamus directing Respondent Nos. 2 to 7 (statutory authorities) to grant requisite permissions and approvals for redevelopment of Respondent No. 1 Society in furtherance of a Development Agreement dated 10.12.2023 executed with Respondent No. 8.

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## Issues and analysis

### Issue 1: Whether the termination of the Development Agreement dated 16.10.2005 and Supplementary Agreements …

**Ratio:** The termination of the Development Agreement and Supplementary Agreements by Respondent

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**Reasoning:** Appellant No. 1 failed to commence or complete any substantial portion of the

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**Interpretation:** The IBC is not intended to freeze urban welfare projects or protect commercial

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**Application:** Given Appellant No. 1's persistent non-performance and the Society's valid

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## Parties

- **Judges:** R. MAHADEV…; J.B. PARD…; +1 more
- **Appellants:** Harshad Shamkant…
- **Respondents:** A A Estates…; Kher Nagar…; +2 more
- **Other parties:** Committee of…; Directors of A A…; +1 more
- **Advocates:** Learned senior…; Learned senior…; +1 more

## Timeline

- **1980-04-01 — Lease Deed Effective…**: The Lease Deed between Respondent No. 1 Society and MHADA became effective for a period…
- **1996-02-12 — Lease Deed Ex…**: Lease Deed executed between Respondent No. 1 Society and Maharashtra Housing & Area…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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