The present paper discusses a case study of industryinstitute collaboration project for fulfilling curriculum on project-based learning of university students. The case study is conducted with objective to expose students with latest technologies; identify the practices to bridge the gap between institute and industry and implement industry interaction project. The project was developed in closed feedback loop to improve the quality. The involvement of students was from analysis phase to testing phase of the project. The benefits of the project-based learning were, students got adequate knowledge of latest technologies used in software industry; experienced the importance of team-work; industry interaction of faculty has been increased. Although, the project delivered is not as per the expectation of project leader but many lessons are learned by conducting case study. Paper further highlights the hurdles faced during project development phases and suggest the remedies to avoid the hurdles. Thus, the presented case study is part of project-based learning and essentially improves software engineering learning process.