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.
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
