Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration
Date: 31.08.2026
High Court of Karnataka Decree on Compromise Settlement in Project Dispute under Section 8 of the Real Estate (Regulation and Development) Act, 2016
This Short Article has been prepared & written by Advocate Narendra Singh. The views expressed are based on his interpretation of the law. He can be reached at his email id amitnaren@outlook.com .
A significant legal dispute involving the Unishire Spacio real estate project in Bengaluru has reached a comprehensive settlement, bringing relief to developers, home buyers, and associated parties. This article provides a detailed overview of the case, the parties involved, the legal journey, and the terms of the final compromise.
Background: The Dispute and the Parties
The dispute centered around the Unishire Spacio project, developed on property in Arakere Village, Bengaluru South Taluk. The main parties included:
- M/s. Unishire Builtech LLP (Developer/Appellant)
- Karnataka Real Estate Regulatory Authority (RERA) (Regulatory Authority)
- Unishire Spacio Association (Apartment Ownersβ Association/Home Buyers)
- Altico Capital India Pvt. Ltd. (Financial Institution)
- C. Krishna Reddy & Pushpa Krishna Reddy (Landowners)
- Keya Homes Pvt. Ltd. (New Developer)
Legal Proceedings: From RERA to High Court
- The dispute began with a complaint before RERA, which issued an order on 8 November 2021 under Section 8 of the Real Estate (Regulation and Development) Act, 2016.
- The developer, Unishire Builtech LLP, appealed the order to the Karnataka Real Estate Appellate Tribunal, which dismissed the appeal.
- The matter was then brought before the High Court of Karnataka as RERA Appeal No. 1 of 2023.
The Settlement: Key Terms of the Compromise
After negotiations, the parties reached an amicable settlement, recorded in a compromise petition under Order 23 Rule 3 of the Code of Civil Procedure, 1908. The main terms include:
- Developerβs Withdrawal
- Unishire Builtech LLP agreed to abide by the original RERA order and withdraw all claims and appeals regarding the Unishire Spacio project.
- All allegations and counter-allegations between the parties were withdrawn.
- Project Takeover and Development
- The Apartment Ownersβ Association (Respondent 2) was allowed to take over the project.
- Keya Homes Pvt. Ltd. (Respondent 6) was authorized to complete the development and could engage in further construction, including additional apartments using Transferable Development Rights (TDR).
- Cancellation of Previous Agreements
- The Joint Development Agreement and General Power of Attorney dated 27 May 2013 were cancelled and revoked.
- Any civil suits related to the dispute were withdrawn as settled out of court.
- Financial Settlement
- Keya Homes agreed to pay Unishire Builtech LLP a total of Rs. 5.25 crore as full and final settlement.
- Of this, Rs. 2.5 crore had already been paid for the release of mortgaged property, and the balance was paid at the time of settlement.
- A refundable deposit of Rs. 3.5 crore, previously paid by Unishire to the landowners, would be transferred to Keya Homes for project development.
- Asset and Apartment Allocation
- Unishire relinquished all claims to construction materials and equipment at the site, except for a non-working crane, which was transferred to Keya Homes.
- Of 138 apartments originally allocated to Unishire, 129 had been sold; the remaining 9 could be sold by Keya Homes.
- No Further Claims
- All parties agreed not to pursue further claims against each other, except for enforcing the terms of the compromise.
- Keya Homes was permitted to change the project name to βKeya Spring.β
Courtβs Decision
The High Court reviewed the compromise, found it lawful and voluntary, and disposed of the appeal in accordance with the settlement. The court directed all parties to strictly adhere to the terms and avoid further litigation. Each party was to bear its own costs, and the registry was instructed to draw up the decree accordingly.
Significance of the Settlement
- For Home Buyers: The settlement ensures project completion and protects the interests of apartment owners.
- For Developers: It provides a clear exit for the original developer and a fresh start for the new developer.
- For the Real Estate Sector: The case highlights the effectiveness of RERA and judicial intervention in resolving complex real estate disputes through compromise and negotiation.
This resolution marks a positive step for all stakeholders, setting a precedent for amicable settlements in real estate disputes.
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Source: Karnataka High Court
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