SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(MP) 335

IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
Vishal Mishra, Avanindra Kumar Singh, JJ.
M/S Shivsaksh Enterprise Partnership Firm – Petitioner
Versus
Bhopal Smart City Development Corporation Limited (Bscdcl) Bhopal M.P. And Others – Respondents
Misc. Petition No. 3036 of 2022
Decided On : 07-08-2025

Advocate Appeared:
For the Petitioner:Shri D.K.Dixit, Senior Advocate with Ms. Disha Rohitas, Advocate and Shri Kapil Sharma, Advocate
For the Respondent:Shri Bharat Singh, Advocate with Shri Aryaditya Singh, Shri Siddharth Shukla, Advocates, Shri Rajeev Mishra, Advocate

The petitioner cannot be held liable for contractual obligations if the respondent has not fulfilled its obligations under RERA, specifically regarding project registration and necessary facilities for plot access.

Headnote:(A) Real Estate (Regulation and Development) Act, 2016 - Sections 3(1) and 13(1) - Project registration and advance payment requirements - Petition challenging the order of RERA regarding liability for non-completion of project by the respondent despite plaintiff depositing substantial amount for Plot No.82 - Respondent failed to provide access and complete development as stipulated, thus non-compliance of mandatory provisions by respondents noted. (Paras 4, 6, 11, 16)

(B) Contract Law - Contractual obligations and liability - Court found petitioner cannot be held liable when the termination of contract was due to respondent's own failure to comply with contractual requirements and provision of basic amenities. (Paras 10, 16)

Facts of the case:
The petitioner, a partnership firm, challenged orders from RERA and the Appellate Authority regarding the allotment and subsequent termination of Plot No.82 under a development project; key issues included non-compliance and improper execution by the respondent authorities.

Findings of Court:
The court noted that despite the petitioner's significant deposit, the respondent’s failure in providing necessary facilities nullified the grounds for liability against the petitioner.

Issues: The main issues included the respondent's compliance with registration and development obligations under RERA and whether the petitioner should be liable for non-completion of the project.

Ratio Decidendi: The court emphasized that the petitioner cannot be penalized for conditions unmet by the respondent authorities; termination of the contract and the consequent liability were deemed illegal due to the respondent's major lapses.

Result: Petition allowed and orders quashed.

Table of Content
1. establishment of real estate project and its specifications. (Para 1)
2. establishment and role of bhopal smart city project (Para 2 , 3)
3. petitioner's allegations of procedural non-compliance (Para 4 , 5 , 6)
4. legal precedents supporting petitioner's arguments (Para 7 , 8)
5. court's examination of facts and rera compliance. (Para 9)
6. non-compliance with rera act requirements by respondents (Para 10 , 11 , 12)
7. court's findings on rera's handling of the petitioner's complaint (Para 13 , 14 , 15 , 16)
8. court's directive for reassessment of the project status (Para 17 , 18)
9. final ruling to allow petitioner's project completion (Para 19)

ORDER :

Vishal Mishra, J.

Assailing the order dated 13.04.2022 passed by the Real Estate Regulatory Authority as well as the order dated 14.06.2022 passed by the Appellate Authority, the present petition has been filed.

2. It is the case of the petitioner that the petitioner is a Partnership Firm, having registration No.01/01/010028/19 which is engaged mainly in the business of commercial and residential real estate development and constructions works. Shri Sanjeev Agrawal being one of its partner is authorised through resolution dated 15.06.2022 to file this petition on behalf of the firm. The Government of India through its department of Housing and Urban Affairs has launched the ambitious smart cities mission, which initiative, is a time bound advancement and redevelopment endeavor, sharply focused on generating opportunities of growth by imbuing the substantial socio-cultural framework of the city with up-to-the-minute technology and futuristic planning.

3. Considering the aforesaid, the Bhopal Smart City Project was launched vide Resolution No.F-10-22/2016/18-2 dated 10.03.2016. The composition of the Special Purpose Vehicle for Bhopal Municipal Corporation was approved by the Government of Madhya Pradesh, in pursuance to which Bhopal Smart City Development Corporation Limited/respondent No.1 was established on 14.03.2016 under the Companies Act, 2013 which is owned and managed by the Government of M.P. through its Urban Development Company Limited and Bhopal Municipal Corporation. The respondent No.2 is an authority created under the provisions of Real Estate (Regulation and Development) (RERA) Act, 2016 with the objective to facilitate the growth and promotion of healthy, transparent, efficient and competitive Real Estate sector. The main function of the respondent No.2/Authority is to register and regulate Real Estate Projects within the State of Madhya Pradesh and to entertain, register, hear and decide the complaints filed by the allottees and promoters with respect to the Real Estate Projects. The respondent No.3 is the Enforcement Officer appointed under the provisions of the amended Rule 27 of the M.P. Real Estate (Regulation & Development) Rules, 2017 who has been given the limited powers to execute and enforce the orders passed by the respondent No.2/Authority. The respondent No.1 has undertaken the Area Based Development (ABD) Area Project, on an area of around 342 acres of land situated in North & South T.T. Nagar Area of the city of Bhopal, which has been allotted to it by the Government of M.P. which is the Real Estate Project which is defined under Section 2 (zn) of the Act and the respondent No.1 is covered under the definition of "Promoter" as defined under Section 2 (zk) of the Act. The respondent No.1 floated NIT inviting applications for allotment of various plots in project by online bidding process namely plot No.82 was floated in the month of November, 2020. The petitioner in all good faith presuming that the respondent No.1 has complied with all the mandatory requirements of law, applied for allotment of Plot No.82 in the aforesaid "ABD Area Project". He was the highest bidder and his bid was accepted with the sale consideration of Rs.35,11,00,000/- and the concerned commercial Plot No.82 was allotted to the petitioner by the respondent No.1. Lette








Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top