The Bombay High Court has cleared the way for redevelopment of Khernagar Adarsh Co-operative Housing Society in Bandra (East), refusing to grant an injunction to the Society’s former developer, Huges Real Estate Developers LLP. The Court also struck down the condition that required the new developer, Kumar Vibes Properties, to obtain a no-objection certificate (NOC) from Huges.
14-Year-Old Redevelopment Deal Turns Contentious
The dispute traces back to December 2011, when the Society signed a Development Agreement and Power of Attorneywith Huges Real Estate Developers. The proposal was initially filed under DCR 1991, but subsequent regulatory changes—most notably the implementation of DCPR 2034—altered the redevelopment potential.
Members of the Society began demanding larger flats and higher corpus payments. Huges revised its offers multiple times, eventually offering 520 sq. ft. carpet area and a corpus of ₹9 lakh per member in November 2022. The Society’s Special General Meeting (SGM) on 27 November 2022 approved this revised offer.
However, within weeks, the Society reversed its decision. On 1 January 2023, it resolved to terminate Huges’ contractand by September 2023 appointed Kumar Vibes LLP as the new developer, who offered significantly higher benefits—645 sq. ft. carpet area and a ₹17 lakh corpus per member.
Huges Moves Court Against Termination
Huges challenged the termination in Commercial Suit (L) No. 28114 of 2023, seeking:
- A declaration that the 2011 agreement plus revised offers were still valid,
- Specific performance of the contract,
- An injunction restraining the Society from appointing another developer, and
- Damages of over ₹40 crore.
The Society, on the other hand, defended its move, citing inordinate delay, lack of a concluded contract under revised terms, and the superior offer from the new developer.
Single Judge’s 2024 Order
In October 2024, a Single Judge of the High Court refused Huges’ plea for injunction, permitting the Society to move forward with Kumar Vibes. However, the Court directed that the new developer must obtain an unconditional NOC from Huges, in line with the tender conditions.
This led to cross-appeals—Huges appealed against the refusal of injunction, while the Society challenged the NOC condition.
Division Bench Ruling
A Division Bench of Chief Justice Alok Aradhe and Justice Sandeep V. Marne, pronouncing judgment on 19 August 2025, upheld the Society’s right to proceed with redevelopment.
Key findings included:
- Delay Not Solely Huges’ Fault: The Court noted that policy changes and Society’s own actions contributed to the delay, but redevelopment could not be stalled further.
- No Concluded Contract on Revised Terms: While the 2011 agreement existed, renegotiated offers required a fresh or supplemental contract, which never materialised.
- Redevelopment Cannot Be Halted: The Bench stressed that residents’ right to safe housing in dilapidated buildings outweighs a developer’s right to profit.
- NOC Condition Removed: The requirement for Kumar Vibes to secure Huges’ NOC was deleted. Huges’ interests, the Court said, could be pursued through monetary compensation in its pending suit.
Outcome
- Huges’ appeal for injunction dismissed.
- Society’s appeal against the NOC condition allowed.
- Redevelopment to proceed immediately with Kumar Vibes Properties.
- Huges may continue to pursue its damages claim of ₹40 crore.
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