In Brief
A.A. Estates, a property developer, executed a redevelopment agreement with a cooperative housing society in 2005 but failed to complete the project for nearly two decades. The society validly terminated the agreement in 2019 due to repeated defaults and appointed a new developer. When A.A. Estates subsequently entered insolvency proceedings, it claimed the terminated agreement was a protected asset under the Insolvency and Bankruptcy Code. The High Court upheld the society's right to proceed with redevelopment through the new developer. The Supreme Court dismissed A.A. Estates' appeal, holding that a lawfully terminated agreement cannot be treated as an asset of the corporate debtor. The moratorium under the IBC protects only existing rights, not those extinguished before insolvency. The Court emphasized that slum redevelopment carries a public welfare dimension, and statutory authorities must process approvals despite CIRP pendency, provided no subsisting rights remain with the insolvent developer.
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