# In the matter of A A Estates Private Limited vs. Kher Nagar Sukhsadan Co-Operative Housing Society Ltd. & Ors.

> SC judgment dated 2025-11-28. Citation: TCN-2025-SC-00095. The case involves a dispute over a redevelopment project between A A Estates Private Limited (the…

- **Court:** SC
- **Order date:** 28 Nov 2025
- **Citation:** TCN-2025-SC-00095
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/a-a-estates-private-limited-vs-kher-nagar-sukhsadan-co-operative-housing-society-ae8acddb

## Summary

### Background

The case involves a dispute over a redevelopment project between A A Estates Private Limited (the developer) and Kher Nagar Sukhsadan Co-operative Housing Society Ltd. The developer faced delays and CIRP was initiated against them. The Society then terminated the development agreement and appointed a new developer, leading to legal challenges.

## Facts

A A Estates Private Limited (Appellant No. 1) entered into a Development Agreement with Kher Nagar Sukhsadan Co-operative Housing Society Ltd. (Respondent No. 1) on 16.10.2005 for redevelopment.

The redevelopment project faced delays due to various reasons, including the failure of some members to vacate the premises and disputes between the parties.

CIRP was initiated against A A Estates Private Limited, and Mr. Harshad Shamkant Deshpande (Appellant No. 2) was appointed as the Resolution Professional.

Respondent No. 1 Society terminated the Development Agreement and appointed a new developer (Respondent No. 8).

Respondent No. 1 Society filed a writ petition before the High Court seeking directions to statutory authorities to grant approvals for the new developer.

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## Issues and analysis

### Issue 1: Whether the termination of the …

**Ratio:** The termination was valid because it occurred after prolonged default by the developer

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**Reasoning:** The developer failed to fulfill its obligations under the agreement, and the Society had

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**Interpretation:** The court interpreted the terms of the Development Agreement and the relevant

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**Application:** The court applied the principles of contract law and insolvency law to the

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## Parties

- **Judges:** R. MAHA…; J.B. PARD…
- **Appellants:** Harshad Shamkant…
- **Respondents:** A A Estates…; Kher Nagar…; +1 more
- **Other parties:** Affir…; State Bank of…

## Timeline

- **16.10.2005 — Development A…**: A A Estates Private Limited entered into a Development Agreement with Kher Nagar…
- **23.12.2005 — Power of At…**: Power of Attorney…

## 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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