The Karnataka High Court allows a developer to pursue a ₹117 crore compensation claim despite the company being struck off by the Registrar of Companies.
Karnataka High Court Decision on Developer's Compensation Claim
The Karnataka High Court has ruled that a company's strike-off by the Registrar of Companies (ROC) does not impede a developer's right to claim ₹117 crore in compensation. The court specifically refused the specific performance of a Memorandum of Understanding (MOU) while permitting the amendment of the plaint for the compensation claim.
The court's decision reflects a nuanced understanding of the rights of stakeholders involved with companies undergoing legal transitions. Despite the technical strike-off, the court recognized the developer's claims regarding the failure of contractual obligations necessitating compensation.
Practitioners should note the implications of this ruling as it reinforces the possibility of pursuing claims even when a company has been officially struck off, emphasizing the need for alternative remedies available to aggrieved parties.
Citations
- Karnataka HC (2026)
