Summary: A legal battle unfolds between Khernagar Adarsh Co-operative Housing Society and Huges Real Estate Developers over a redevelopment agreement. The court had to decide whether to allow the society to appoint a new developer or stick with Huges, amidst claims of delays and contract disputes.
In this case, Huges Real Estate Developers (formerly a private limited company, now a type of partnership) was initially hired to redevelop a building for Khernagar Adarsh Co-operative Housing Society. However, due to disagreements, Khernagar Adarsh Co-operative Housing Society wanted to bring in a new developer, Kumar Vibes LLP.
Originally, a Development Agreement was signed in December 2011 between Khernagar Adarsh Co-operative Housing Society and Huges. Over the years, changes in rules and internal disagreements led to delays. By 2018, new rules (DCPR 2034) required changes to the redevelopment plans.
Huges Developers claimed they were ready to proceed with updated offers, which were initially accepted by Khernagar Adarsh Co-operative Housing Society. However, Khernagar Adarsh Co-operative Housing Society later ended the agreement, citing delays and unmet conditions, and decided to appoint a new developer. Huges challenged this, seeking to enforce the original agreement.
"The society changed its mind within days after accepting Huges' revised offer," noted the court.
The court, led by Judges Alok Aradhe and Sandeep V. Marne, decided not to grant a temporary order to Huges, allowing Khernagar Adarsh Co-operative Housing Society to go ahead with the new developer. However, they required Khernagar Adarsh Co-operative Housing Society to deposit Rs. 5 crores to cover Huges' claimed expenses, protecting Huges' rights to some extent.
The court decided that Khernagar Adarsh Co-operative Housing Society can proceed with a new developer but must deposit Rs. 5 crores to cover Huges' expenses. Huges' request to stop the new development was not granted, but their financial interests were partially protected.
