Bolsover District Council took Arba Ground Trading Company to court over a disputed development in a Derbyshire village.
The Hawthorne Meadows scheme in Barlborough was granted planning permission in March 2011 with the s106 condition that 10% of the homes on the site be affordable housing.
The council claimed 126 houses have currently been built and sold for £31m, leaving nine left to be built, which meant Arba could not meet the affordable housing target.
His Honour Judge Tindal presided over the case in the High Court in Birmingham and stated that “a party who made promises under a s106 and then breaks those promises can expect themselves to be made subject to an injunction”.
HHJ Tindal issued an interim injunction on the developer that prohibits them from building or selling/leasing any more properties.
The case has been adjourned because the developer has appealed a February 2024 decision refusing to vary the s106 agreement to reduce their obligations. Once the appeal process is complete the matter will be returned to the High Court.
Cabinet Member for Governance, Councillor Duncan McGregor said, “We faced the real risk that the development would be completed, sold and occupied without the monies being paid and other obligations being met.
“Nothing which has occurred over the last three years gives us any confidence that the obligations would be promptly and fully complied with, that’s why we sought court action.
“But let this be a warning to developers. We issue planning permission on the proviso that its conditions are met. If they are not, then we will take legal action against those responsible.”