Bombay HC – Development Agreement – Illegal Termination Does not Guarantee Specific Performance – Upheld Arbitral Award for possession of the trust property to Shri Mahavir Jaina Vidyalaya Trust.
There was MoU dated 9.4.2005 and the Development Agreement dated 30.4.007 for development of the trust property at Gowalia Tank, Mumbai.
This was terminated on 4.3.2016 on the ground that the developer failed to secure approval for construction of agreed area of 32,000 sq. ft for new hotel and IOD dated 2.12.2014 was obtained only for 25,838 sq.ft.
The Arbitrator held that the termination is illegal, rejected the Trust’s claim for damages and ordered refund of the amount paid by the Developer, vide Award dated 1.10.2019.
Bombay HC Upheld Arbitral Award for restoration of possession to the Trust Despite holding that the termination of Development Agreement Illegal
Bombay HC Confirms Arbitrability of Development Agreement Disputes including possession –
Bombay HC – Arbitral Award is not perverse merely because it holds termination illegal, yet denies specific performance but orders restitution of possession of the land owner / Trust
Bombay HC – Development Agreement Disputes are fully arbitrable – No bar of Small Causes Court Jurisdiction
The objection on arbitrability on the ground of exclusive jurisdiction under the PSCC Act is untenable since the license granted to the Developer was incidental to the development rights conferred on the Developer. Once such development rights are not held as being amenable to enforcement by way of specific relief, the license would also become irrelevant. The Learned Arbitral Tribunal’s findings that the statutory tenancy protection provisions in the PSCC Act have no relevance to the Development Agreement cannot be faulted;
The objection on the ground of lack of approval for litigation by the Charity Commissioner is untenable for the reasons set out above. The Charity Commissioner has been aware of the litigation and even if regulatory action were to be contemplated, it would not have a foundational and jurisdictional basis to undermine the Impugned Award.
Bombay HC – Development Agreement – Illegal Termination Does not Guarantee Specific Performance – Upheld Arbitral Award for possession of the trust property to Shri Mahavir Jaina Vidyalaya Trust.
Bombay HC – Reconciling Illegal Termination with Restitution Relief for possession on Termination of Development Agreement
Finding Termination Illegal Is Not Enough – Bombay HC Rejects Developer’s Claim for Specific Performance of the terminated Development Agreement
Judgment dated 6.4.2026 of the High Court of Bombay (OS) in Commercial Arbitration Petition No.128 of 2023 of Shri Mahavir Developers and 10 others vs. Shri Mahavir Jaina Vidyalaya and 6 others
