MCGM - The Legal Chamber

This Supreme Court judgment clarifies that validly terminated contracts do not constitute "assets" of a corporate debtor under the IBC, and its moratorium does not revive extinguished rights. It reaffirms that NCLT cannot interfere with terminations based on pre-existing, non-insolvency-related defaults. Furthermore, High Courts retain constitutional jurisdiction to direct statutory authorities, even during moratorium. Facts Of The Case: The dispute originated from a 2005 Development Agreement between Kher Nagar Sukhsadan Co-operative Housing Society and developer AA Estates for redevelopment of a dilapidated Mumbai building declared dangerous under municipal laws. The agreement required completion within 24 months, but the developer failed to meet this timeline. A Supple...

The Supreme Court, overturning a High Court order, ruled that restoring a demolished lake to its original state was not feasible given the passage of time and the establishment of a public park. The Court balanced environmental conservation with public welfare, emphasizing that the public trust doctrine must consider practical realities. It directed the Municipal Corporation of Greater Mumbai (MCGM) to maintain the park, explore alternative water bodies, and restore other deteriorated water bodies. Facts Of The Case: The Municipal Corporation of Greater Mumbai (MCGM) undertook a redevelopment project on a plot (CTS No. 417) at Khajuria Tank Road, Kandivali (West), Mumbai, for a theme park. This project allegedly led to the obliteration of a lake that had existed at the premises for app...

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Balancing Ecology & Development : Supreme Court’s Verdict on Mumbai’s Khajuria Lake Case