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2026 Supreme(Telangana) 192

IN THE HIGH COURT OF JUDICATURE FOR THE STATE OF TELANGANA
NAGESH BHEEMAPAKA, J.
M/s Brundavan Projects - Petitioner
Versus
The State of Telangana Rep. by its Principal Secretary, Urban Housing Department, Hyderabad & others - Respondents
WRIT PETITION No. 33046 OF 2025
Decided On : 09-01-2026

Advocates:
Advocate Appeared:
For the Appellant : KADARU PRABHAKAR RAO
For the Respondent: GP FOR HOUSING

The court affirmed that disputes of a commercial nature are not within the writ jurisdiction under Article 226, emphasizing the responsibility of fulfilling contractual obligations.

Headnote:(A) Constitutional Law - Article 226 - Commercial disputes - The petitioner challenged the Telangana Rajiv Swagruha Corporation's decision to sell unfinished flats through a brochure and sought a No Objection Certificate (NOC) after the allotment to a third party was cancelled for non-payment. The court noted that the dispute is contractual in nature and not amenable to writ jurisdiction. (Paras 3, 8, 10, 12)

(B) Performance of Contracts - The court emphasized that contractual obligations must be fulfilled, and failure to comply justifies cancellation of the allotment by the Corporation. The reliance on unilateral payments by the petitioner did not create any enforceable rights. (Paras 6, 9, 10)

(C) Public Interest - No public interest element was involved, thus failing to invoke Article 226. (Paras 8, 10)

Findings of Court:
The court found that the petitioner did not have any legal standing to enforce rights against the Corporation, as the original allottee failed to make due payments and the contract terms restricted any ownership claim until all due amounts were paid. (Paras 6, 10, 12)

Issues: The court addressed whether the petitioner had enforceable rights to claim a NOC for the unfinished flats and whether the dispute was properly within the writ jurisdiction.

Ratio Decidendi: The court ruled that as the underlying issue was a commercial/contractual dispute, it was not suitable for resolution under Article 226, reinforcing that the Corporation's role was limited to its original contractual obligations.

Result: The Writ Petition is dismissed.

Table of Content
1. background of allege cancellation and noc request (Para 1 , 2)
2. defendant's arguments against the writ petition (Para 4)
3. counsel appearances (Para 5)
4. court's analysis and rationale for dismissing the writ (Para 6 , 7 , 8 , 9 , 10 , 11 , 12)
5. final order and closure of the case (Para 13 , 14)

ORDER :

NAGESH BHEEMAPAKA, J.

Challenging the action of the 2nd respondent -Telangana Rajiv Swagruha Corporation Limited (Corporation) in issuing broacher dated 10.09.2025 proposing to sell the semi- finished flat Nos. 205, 209, 210, 211 and 412 of unfinished tower A02 at Pocharam, Ghatkesar Mandal, Medchal-Malkajgiri District in Sadbhavana Township which were allotted to petitioner by the 7th respondent, petitioner is before this Court. Consequential direction is sought to the 2nd respondent to issue ‘No Objection Certificate’ to petitioner in respect of the above flats and to register the said flats after receipt of sale consideration from petitioner.

2. The case of petitioner is that the State Government authorised the 2nd Respondent-Corporation to construct and sell the house flats at Pocharam, Ghatkesar Mandal with the approval of HMDA. In furtherance of the notification issued by the 2nd respondent, the 7th respondent participated in the tender and they became the successful bidder and accordingly, was allotted flats in Tower A02, 120 unfinished flats who, in turn, to complete the finishing of all the 120 flats and to sell them to the prospective buyers.

2.1. In terms of the allotment, the 7th respondent took up the requisite works for completing the unfinished 120 flats by investing huge amounts. Petitioner firm, it is stated, purchased the subject flats and remitted the amount to respondent Corporation. When petitioner approached the bankers for availing loans, they insisted for securing ‘NOC’ from the 2nd respondent, but the 2nd respondent did not issue the same and dragging the matter. The 7th respondent also could not secure the ‘NOC’ from the 2nd respondent.

2.2. While so, it is stated, petitioner came to know through the broacher distributed by the 2nd respondent dated 10.09.2025 the proposal to conduct lottery on 25.09.2025 at 11.30 a.m. at Telangana Housing Corporation Building Meeting Hall, Himayathnagar and a pre-bid meeting was on 17.09.2025, but the said meeting was postponed. However, Respondents 2 to 4 are again making efforts for conducting sale proceedings including petitioner flats.

2.3. It is stated further, in similar circumstances, this Court granted interim order dated 18.09.2025 in Writ Petition No. 28502 OF2025 suspending the subject broacher in respect of petitioners therein and the present case is squarely covered by the facts of the above said Writ Petition.

2.4. The case of petitioner is that the 7th respondent was allotted A02 Tower at Pocharam vide proceedings Lr.No. 04/TRSCLLEM/Unfinished Towers/2023 dated 07.06.2023. They 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.

2.5. In terms of the said allotment, the 7th Respondent advertised that 120 flats are available for sale in A02 Tower. Petitioner purchased the subject Flats and remitted the amount to respondent-Corporation. Since the 7th 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 7th 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 2nd respondent calling upon to pay Rs. 29.51 Crores. The 7th respondent submitted a list

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