Qass ul Anbia 

The story of Adam and creation is pieced throughout the Quran. There are references in chapters: 2, 4, 5, 20, 21, 38 and others. In the Quran narrative, God created humankind out of clay (Q3:59),[18] shaped it to a form and then commanded the angels to bow (submit) to Adam. Iblis refused out of pride (Q15:26-32)[19] and was banished from Jannah (Paradise).

According to the Quran, God had already decided before the creation of Adam that mankind (Adam and his progeny) would be placed on earth. Islam does not ascribe mankind's life on earth as a punishment, rather as part of God's plan.