Writ petitions are not maintainable in commercial disputes unless arbitrariness or illegality is demonstrated; contractual obligations must be fulfilled by the parties involved.

ORDER :

Nagesh Bheemapaka, J.

Challenging the action of the 1^st respondent -Telangana Rajiv Swagruha Corporation Limited (Corporation) in proposing to sell the semi- finished Flats Tower A02 in Sadbhavana Township, Pocharam Municipality as stated in the Broacher dated 10.09.2025 which flats were allotted to petitioners by the 2^nd respondent, this Writ Petition is filed.

2. The undisputed factual matrix of the case is that Respondent-Corporation invited Applications in respect of unfinished towers at Pocharam for completing the work. M/s Mahanandhi Builders (the 2^nd respondent) was allotted A02 Tower at Pocharam vide proceedings Lr.No. 04/TRSCLLEM/Unfinished Towers/2023 dated 07.06.2023. The 2nd respondent paid EMD and also paid part of balance amount, but did not complete the work of construction within the permitted time of four months Hence, they made Application dated 04.10.2024 for extension of time which was extended up to 05.01.2025 by Corporation's letter dated 17.10.2024.

2.1. In terms of the said allotment, the 2nd Respondent advertised that 120 flats are available for sale in A02 Tower. Petitioners purchased Flat Nos. 104, 301, 803, 804, 806, 405, 408, 204, 212, 407, 409, 405, 410, 409, 208, 504, 508, and 805 of unfinished Tower at A02 Pocharam Municipality, Ghatkesar, Medchal-Malkajgiri District in Sadbhavana Township and remitted the amount to respondent-Corporation. Since the 2nd respondent failed to pay the amounts within time, the Corporation passed the order of cancellation in Lr. No. 04/TGRSCLEM/A02 Unfinished Towers/PCHRM/2023, dated 21.01.2025 cancelling the allotment and forfeiting the token advance and first instalment amount of Rs. 3,05,10,000/-. The 2nd respondent approached the Corporation and submitted letter dated 24.03.2025 for issuance of ‘NOC’ for completing the work, however, ‘NOC’ was not given. The Corporation also issued a communication to the 2^nd respondent calling upon to pay Rs. 29.51 Crores. The 2nd respondent submitted a list of 40 members who are ready to purchase the flats, but the ‘NOC’ is not given. The Corporation brought a proposal to sell the semi- finished flats in Tower A02 at Pocharam vide its broacher and Notification dated 10.09.2025. Issuance of ‘NOC’ by respondent- Corporation is a must for Respondent No.2 to obtain loans from the Banks to finish the project. If respondent-Corporation refuses to give ‘NOC’, it will cause irreparable loss and prejudice to the Builder and also to the buyers, who purchased flats through him.

3. The Respondent Corporation filed counter-affidavit mainly contending that Writ Petition is not maintainable since the dispute is a commercial/contractual one. It is stated that Government decided to sell the unfinished towers of the Corporation in 'as is where is' basis and invited bids. As stated above, Respondent No.2 was allotted A02 unfinished tower at Pocharam for completion of the work. They failed to make prompt payments and hence, the allotment was cancelled. Respondent No.2 therefore, filed Writ Petition NO. 28982 of 2025 challenging cancellation with an inordinate delay of Eight Months from the date of cancellation letter dated 21.01.2025; after expiry of statutory waiting period, the same tower was re-notified for sale through a fresh notification dated 10.09.2025; from 22.01.2025 till date, there has been no correspondence between respondent Corporation and the 2^nd respondent.

3.1. It is also stated, allotment letter dated 25.04.2023 itself expressly provides that no ownership rights accrue to the tower allottee, its associates, members of an Association or prospective purchasers until the entire consideration is paid t