HC upholds firm deadline for slum housing project
Real Estate

HC upholds firm deadline for slum housing project

The recent dismissal of a petition by a city-based construction company, Aishwaryagiri Constructions Limited, by the high court underscores the principle that a contractor or tenderer cannot assume complacency and prolong work, especially when the construction involves housing for slum-dwellers.

The legal challenge was against the Karnataka Slum Development Board (KSDB), which rejected the company's representations seeking an extension of the deadline for completing the construction of 1,978 houses for slum-dwellers, a project initiated between 2014 and 2017 in the Rajarajeshwari Nagar area.

Initially granted a two-year extension after failing to meet the initial deadline, the company faced contract termination on July 27, 2021, when it failed to complete the work and sought yet another extension. The high court directed KSDB to consider the company's representations, but after rejection, the firm returned to the high court.

Justice Nagaprasanna, upon reviewing the records, emphasized that KSDB's contract termination had achieved finality as it was not challenged by the co-ordinate bench. The judge highlighted that a new tender had been issued, and only the work order needed to be issued.

Out of the 1,978 houses planned for construction in nine slums, 674 are completed, 505 are incomplete, and 799 are yet to commence. The judge remarked that the urgency of improving living conditions for slum-dwellers should not be underestimated. Despite being granted multiple extensions, the petitioner failed to complete the work.

In a metaphorical expression, the judge noted, "The petitioner is an unwilling horse, though taken to a lakebed, is not ready to drink water," emphasizing that the petitioner, despite receiving repeated extensions, did not fulfill its obligations. Consequently, the judge concluded that no indulgence could be shown.

The recent dismissal of a petition by a city-based construction company, Aishwaryagiri Constructions Limited, by the high court underscores the principle that a contractor or tenderer cannot assume complacency and prolong work, especially when the construction involves housing for slum-dwellers. The legal challenge was against the Karnataka Slum Development Board (KSDB), which rejected the company's representations seeking an extension of the deadline for completing the construction of 1,978 houses for slum-dwellers, a project initiated between 2014 and 2017 in the Rajarajeshwari Nagar area. Initially granted a two-year extension after failing to meet the initial deadline, the company faced contract termination on July 27, 2021, when it failed to complete the work and sought yet another extension. The high court directed KSDB to consider the company's representations, but after rejection, the firm returned to the high court. Justice Nagaprasanna, upon reviewing the records, emphasized that KSDB's contract termination had achieved finality as it was not challenged by the co-ordinate bench. The judge highlighted that a new tender had been issued, and only the work order needed to be issued. Out of the 1,978 houses planned for construction in nine slums, 674 are completed, 505 are incomplete, and 799 are yet to commence. The judge remarked that the urgency of improving living conditions for slum-dwellers should not be underestimated. Despite being granted multiple extensions, the petitioner failed to complete the work. In a metaphorical expression, the judge noted, The petitioner is an unwilling horse, though taken to a lakebed, is not ready to drink water, emphasizing that the petitioner, despite receiving repeated extensions, did not fulfill its obligations. Consequently, the judge concluded that no indulgence could be shown.

Next Story
Real Estate

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Next Story
Real Estate

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Next Story
Infrastructure Urban

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement