India, April 4 -- The Bombay High Court has held that a builder cannot seek a refund of the expenditure incurred on a partially constructed building if the housing society cancels the development agreement due to delays, a ruling that is likely to be significant for several redevelopment projects across the city.

A single-judge bench of justice Sandeep Marne said on April 30 that a developer can claim the cost of construction from a housing society only if the redeveloped building is complete in all physical aspects and usable by the society members.

The court was hearing a petition filed by developer SSD Escatics Pvt Ltd, challenging an arbitral award dated June 24, 2023, which upheld the cancellation of its development agreement by Go...