Tag: Real Estate Law

“Nothing Short of Harassment”: Supreme Court Allows Man to Rebuild Old House, Imposes ₹10 Lakh Fine on SDMC
19Jan By The Legal ChamberNo Comments
Supreme Court

“Nothing Short of Harassment”: Supreme Court Allows Man to Rebuild Old House, Imposes ₹10 Lakh Fine on SDMC

The Supreme Court upheld that municipal bylaws and the Master Plan permitting mixed land use are enabling, not compulsory. Property owners cannot be forced to convert residential use to commercial use. A deemed sanction for purely residential reconstruction plans is valid if the applicant chooses not to avail the option for commercial activity. Facts Of The Case: The respondents, owners of an 85-year-old dilapidated residential house in Delhi, applied for sanction to demolish and reconstruct it in 2010. The Municipal Corporation failed to decide, leading the owners to obtain a deemed sanction from the Appellate Tribunal under the Delhi Municipal Corporation Act. The Corporation challenged this order successively before the Additional District Judge, the Delhi High Court (via writ and rev...
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Commercial vs. Residential Use: Supreme Court Decides on Delhi Market Plot Dispute
17Jan By The Legal ChamberNo Comments
Supreme Court

Commercial vs. Residential Use: Supreme Court Decides on Delhi Market Plot Dispute

In a significant order, the Supreme Court clarified the legal framework governing the use of upper floors in designated Local Shopping Centres (LSCs) in Delhi. The Court held that while the ground floor is permitted for commercial use, utilizing upper floors for commercial purposes requires payment of conversion charges and regularization of any unauthorized construction as per the Master Plan for Delhi-2021 and relevant building bylaws. Facts Of The Case: This case concerns an application for the de-sealing of a commercial premise at Plot No. 106 in New Rajinder Nagar Market, New Delhi. The applicant, M.C. Mehta, filed an Interlocutory Application (I.A.) in the long-standing Public Interest Litigation (W.P.(C) No. 4677 of 1985) concerning unauthorized constructions and land misu...
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When a Contract Becomes Void: Supreme Court Explains the Limits of Specific Performance
25Dec By The Legal ChamberNo Comments
Supreme Court

When a Contract Becomes Void: Supreme Court Explains the Limits of Specific Performance

The Supreme Court held that an agreement to sell flats, which was contingent upon construction violating building bye-laws and the master plan, was unlawful and void under Section 23 of the Indian Contract Act. The Court ruled that specific performance cannot be granted for an illegal contract, and courts cannot rewrite or sever its essential, unlawful terms to make it enforceable. Facts Of The Case: In December 1984, Canara Bank entered into an agreement with K.L. Rajgarhia to purchase residential flats to be constructed on his plot in East of Kailash, Delhi, for ₹32,07,500. The bank paid approximately 90% of the consideration upfront. The agreement specified the construction and sale of eight flats and a basement, with completion required within 18 months. When the defendant failed to ...
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Supreme Court Judgment: When a “Security Bond” is Actually a Mortgage: A Landmark Stamp Duty Ruling
23Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Judgment: When a “Security Bond” is Actually a Mortgage: A Landmark Stamp Duty Ruling

In this judgment, the Supreme Court clarified the distinction between a mortgage deed and a security bond for stamp duty under the Indian Stamp Act, 1899. The Court held that the substance of an instrument, not its nomenclature, determines its character. For Article 57 (security bond) to apply, a third-party surety distinct from the principal debtor must be involved. Since the deeds were executed by the principal debtors themselves to secure their own obligations, they were rightly classified as mortgage deeds chargeable under Article 40. Facts Of The Case: In Civil Appeal No. 7661 of 2014, M/s Godwin Construction Pvt. Ltd. executed a "Security Bond cum Mortgage Deed" on 19.12.2006 in favour of the Meerut Development Authority (MDA). This was done to secure performance of its oblig...
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Supreme Court Judgment: Family Gifts & Registered Deeds Matter More Than Authority Claims
23Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Judgment: Family Gifts & Registered Deeds Matter More Than Authority Claims

The Supreme Court upheld the exemption from Open Space Reservation charges under Annexure XX of the Development Regulations, applicable to holdings below 3000 square metres. It affirmed that a lawful pre-1975 subdivision, evidenced by registered deeds and revenue records, created a separate holding, preventing the authority from notionally recombining it with a larger parent estate to levy charges. Facts Of The Case: The property originated from the estate of Haji Syed Ali Akbar Ispahani. Following a 1949 partition, 21 grounds in Nunganbakkam were allotted to his son, Syed Jawad Ispahani. In 1972 and 1973, Syed Jawad gifted 11 grounds to his own son, Syed Ali Ispahani, via registered deeds, and separate pattas were issued for this holding. In 1984, Syed Ali gifted a small portion (125 sq...
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Specific Performance Suit Fails: Supreme Court Explains Why Buyer Must Vacate Despite Long Possession
4Dec By The Legal ChamberNo Comments
Supreme Court

Specific Performance Suit Fails: Supreme Court Explains Why Buyer Must Vacate Despite Long Possession

The Supreme Court affirmed the executability of a warrant of possession, ruling that a party who receives substantial monetary compensation in lieu of specific performance cannot retain possession of the property. The Court held that equity prevents unjust enrichment and that execution proceedings exist to enforce judgments, not to facilitate windfalls for unscrupulous litigants. Facts Of The Case: On 12.06.1989, the defendants agreed to sell a property to the plaintiff for ₹14,50,000, with ₹25,000 paid as earnest money. Possession of the vacant ground floor was handed over to the plaintiff. In 1990, the plaintiff first filed and withdrew a suit for permanent injunction. Subsequently, in June 1990, the plaintiff filed a suit for specific performance, which was decreed by the Trial Court ...
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Supreme Court Shields Minors’ Property Rights Against Unauthorized Guardian Sales
1Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Shields Minors’ Property Rights Against Unauthorized Guardian Sales

The Supreme Court ruled that a sale of a minor's property by a natural guardian without court permission is voidable. The minor, upon attaining majority, can repudiate this transaction not only by filing a suit but also through unequivocal conduct, such as executing a fresh sale deed, within the prescribed period of limitation. Facts Of The Case: The case revolves around Plot No. 57, originally owned by three minor sons of Rudrappa. In 1971, their father and natural guardian, Rudrappa, sold this plot to Krishnoji Rao through a registered sale deed without obtaining prior permission from the court. Later, in 1993, Krishnoji Rao sold the same plot to Smt. K. Neelamma. Meanwhile, after the minors attained majority, they, along with their mother, sold the very same Plot No. 57 to K.S. Shivap...
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Central vs. State Green Authority: Supreme Court Settles the Jurisdiction Debate for Builders
4Nov By The Legal ChamberNo Comments
Supreme Court

Central vs. State Green Authority: Supreme Court Settles the Jurisdiction Debate for Builders

In a significant ruling, the Supreme Court upheld the validity of the 2025 EIA Notification, clarifying that the "General Conditions" under the EIA 2006 Notification do not apply to building and construction projects. Consequently, such projects will continue to be appraised and granted environmental clearance by State-level authorities (SEIAA/SEAC) and not be automatically elevated to the Central level for approval. Facts Of The Case: The case originated from an order dated 09.08.2024 passed by the National Green Tribunal (NGT). The NGT had directed that all building and construction projects falling within 5 km of protected areas, critically polluted areas, or other eco-sensitive zones must be treated as ‘Category A’ projects. This meant they would require environmental clearance from ...
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Homebuyer Alert: Supreme Court Clarifies When a Real Estate Investment Becomes “Speculative”
2Nov By The Legal ChamberNo Comments
Supreme Court

Homebuyer Alert: Supreme Court Clarifies When a Real Estate Investment Becomes “Speculative”

This Supreme Court judgment clarifies the distinction between genuine homebuyers and speculative investors under the Insolvency and Bankruptcy Code, 2016. It holds that allottees with agreements structured for assured returns or buy-back clauses, without a genuine intent to possess the property, are speculative investors. Such investors are barred from initiating Corporate Insolvency Resolution Process under Section 7 of the IBC, as the Code is not a recovery mechanism for speculative investments. Facts Of The Case: This case consolidates four civil appeals concerning the initiation of Corporate Insolvency Resolution Process (CIRP) against real estate developers by individual allottees. The primary appellant, Mansi Brar Fernandes, entered into a Memorandum of Understanding (MoU) with Gay...
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Proof of Tenancy: Supreme Court’s Key Ruling on Rent Receipts and Title Disputes
16Oct By The Legal ChamberNo Comments
Supreme Court

Proof of Tenancy: Supreme Court’s Key Ruling on Rent Receipts and Title Disputes

The Supreme Court held that In disputes over landlord-tenant relationships, the Supreme Court clarified that under the Karnataka Rent Act, 1999, the production of rent receipts signed by the landlord constitutes prima facie evidence of the jural relationship. Once this initial burden is discharged, the Rent Controller is justified in proceeding with the eviction case without delving into title disputes, which are beyond its scope. Facts Of The Case: The appellant, H.S. Puttashankara, filed an eviction petition against the respondent, Yashodamma, under the Karnataka Rent Act, 1999, concerning a property in Bengaluru. The appellant claimed to be the landlord, asserting that the property originally belonged to his great-grandfather and devolved to him through a release deed from other legal...
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