Arbitration & Enforceability of Head of Terms in Real Estate Collaboration
Judgment dated 29.5.2026 of the High Court of Delhi in O.M.P. (I) (COMM) 138/2026 of Conscient Infrastructure Pvt Ltd Vs. Mr. Mahesh Kapoor and another
In this section 9 petition the petitioner had sought interim reliefs and directions against the respondents – joint owners of the land, in respect of the collaboration land development agreement of 6.76 acres land.
In this connection, the contention was that there was no concluded and/or enforceable contract and in the absence of the same, no interim protection can be granted.
It was an agreement to agree on collaboration and to enter into development agreement for the land of the respondents.
In that context, it was said that section 9 petition is nothing but an indirect attempt to secure specific performance of an alleged agreement
HELD that the Heads of Terms in real estate collaborations can be enforceable if essential terms are settled and acted upon and Section 9 Court will protect the same to prevent frustration of arbitration. The Binding HoT was not a mere exploratory document but definite obligations and acted upon by the parties nearly for 30 months.
