Quick Summary: The Bombay High Court decided against ISON Builders LLP in a case about a redevelopment project in Mumbai. The court rejected ISON's request to stop the ending of their development agreement with Om Sai Ram Cooperative Housing Society.
Development Agreement Issues
ISON Builders LLP was chosen as the developer for a redevelopment project on land owned by the Municipal Corporation of Greater Mumbai (MCGM) at Lower Parel, Mumbai. The deal was made on December 22, 2014, with the Om Sai Ram Cooperative Housing Society, which represents city tenants.
Ending the Agreement
On October 25, 2025, the society ended the development agreement because of delays and chose Aethon Developers Pvt. Ltd as the new developer. ISON Builders tried to stop this ending through legal action.
Initial Steps and Delays
The project faced many delays. At first, ISON Builders didn't submit necessary financial documents, causing significant hold-ups. The Municipal Corporation sent letters in March and November 2021, asking ISON to prove its financial ability, which wasn't done until much later.
"The proposal of the scheme was submitted in 2015, and even after lapse of 6 years; the Annexure-2 also has not been issued."
COVID-19 and Further Delays
The COVID-19 pandemic further slowed progress. Despite this, the society and MCGM noted that ISON did not take enough steps to move the project forward.
Judgment by Justice Sandeep V. Marne
On January 23, 2026, Justice Sandeep V. Marne decided against ISON Builders. The court found that the society and MCGM had good reasons to end the agreement because of the lack of progress and the developer's failure to meet their promises.
Appointment of Arbitrator
The court chose Smt. Justice Anjua Prabhudesai, a former judge, to handle disagreements between the parties.
Society's Right to Redevelop
The court stressed that the tenants' right to rebuild their old buildings was more important than the developer's right to make money. The judgment allows the society to continue with a new developer.
"The rights of a developer to earn profits through redevelopment contracts would always remain secondary to the rights of the society to have its building reconstructed."
The court's decision allows Om Sai Ram Cooperative Housing Society to move forward with their redevelopment plans with a new developer, emphasizing the importance of meeting contractual promises and timelines, especially for the benefit of residents living in old buildings.
