Best Builder, Landowner or Investor Dispute? Real Estate Arbitration Lawyer

Real estate projects involve many parties with large sums at stake: landowners who contribute land, developers who build, investors and co-developers who fund, and buyers who pay in advance. When a project is delayed, costs rise or the market turns, these relationships come under pressure. A landowner says the developer has sold more flats than its share; a developer says the landowner has not delivered clear title; an investor wants its money back with the promised return. Many of these agreements contain arbitration clauses.

This page is for landowners, developers, investors and commercial buyers. In short: joint development and collaboration agreements, investor agreements and most commercial property contracts can go to arbitration; homebuyers usually have the choice of RERA or the consumer commission despite an arbitration clause; pure title disputes and rent control tenancy matters are not arbitrable; and urgent orders can stop the sale of units or the creation of third-party rights while the dispute is decided.

Real estate disputes turn on documents: the agreement, approvals, sale records and accounts. The side with the clearer paper trail usually does better.

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Common real estate disputes

Joint development and collaboration agreements

Under a joint development agreement (JDA) or collaboration agreement, the landowner contributes land and the developer contributes construction, approvals and marketing. The landowner is paid in area (a share of the flats or floors), in revenue (a share of sale proceeds), or both, often with a refundable security deposit. The developer is usually given a power of attorney to obtain approvals and sell its share.

Disputes typically concern delay in obtaining approvals or completing the project, allocation of the landowner's units, the quality and location of those units, accounts of revenue, sale of units from the landowner's share, refund of the deposit, and termination. Each JDA is different, so the starting point is the agreement: the timelines, the force majeure clause, the allocation mechanism, the escrow arrangements, and the termination and consequences clauses.

Where the developer has failed to perform, the landowner may terminate and revoke the power of attorney, but must be careful: a power of attorney coupled with an interest may be irrevocable under Section 202 of the Contract Act, and wrongful termination exposes the landowner to a counter-claim.

How we handle real estate disputes

Time and typical cost range

Our fees are agreed in writing at the start, stage by stage, and are not linked to the outcome.

Documents needed

Which forum for which dispute

RERA, consumer forums and arbitration

Many builder-buyer agreements contain arbitration clauses. But the Supreme Court in Emaar MGF Land v Aftab Singh (2018) held that a consumer complaint can be pursued before a consumer commission despite an arbitration clause, because the consumer protection remedy is a statutory right the buyer cannot be forced to give up. Similarly, homebuyers in RERA-registered projects can file complaints before the RERA authority or adjudicating officer, and Section 79 of the RERA Act bars civil courts from deciding matters the authority can decide.

So, for an individual homebuyer, an arbitration clause does not usually prevent a complaint to RERA or the consumer commission. For landowners, developers, investors and commercial parties, however, the arbitration clause usually applies, and their disputes are decided by arbitration. Some RERA authorities have also held that landowners in JDAs can be "promoters" under the Act, which affects their obligations to buyers. We also advise homebuyers on RERA and consumer complaints.

Arbitrability: what cannot go to arbitration

In Vidya Drolia v Durga Trading Corporation (2020), the Supreme Court explained that disputes relating to actions against the whole world, such as disputes about title binding the world at large, are not arbitrable, while disputes about rights in personam arising from contracts are. It also held that landlord-tenant disputes governed by rent control legislation are not arbitrable, but tenancy disputes under the Transfer of Property Act are.

In real estate, this means that a dispute between a landowner and a developer about their rights under the JDA is arbitrable, even if it affects the land. But a dispute with a third party claiming title to the land must go to the civil court. Where both kinds of dispute exist, the arbitration can usually proceed on the contractual issues while the title question is decided in court, though the timing must be managed.

Laws that apply

How we work

We are a litigation and advisory practice led by Advocate BK Singh, with offices in Dwarka (New Delhi) and Vaishali (Ghaziabad). This is what you can expect:

• Forum clarity: arbitration, RERA, consumer or civil court, chosen with reasons.
• Fast protection: orders to stop sales from the disputed share.
• Project evidence: sanctioned plans, RERA filings and escrow statements used together.
• Practical results: allocation, accounts or a negotiated exit.
• Written fee terms: agreed stage by stage, never linked to the outcome.

Mistakes in real estate disputes

Force majeure and project delays

Developers often defend delay claims by citing force majeure: the COVID-19 lockdowns, construction bans in the National Capital Region during periods of high pollution, delays in government approvals, and court orders affecting the land. Whether these excuse delay depends on the force majeure clause, which usually lists specific events and requires prompt notice. Where the clause does not cover an event, Section 56 of the Contract Act on frustration applies only if performance has become impossible, not merely more difficult or expensive (Energy Watchdog v CERC, 2017).

Tribunals usually allow extensions for periods actually covered by a force majeure event, such as a lockdown or a construction ban, if notice was given, but not for general market slowdowns. RERA authorities have granted general extensions for the COVID period, which tribunals often take into account. Build a chronology showing the exact periods claimed and the documents for each.

Revenue sharing and escrow accounts

In revenue-sharing JDAs, the landowner receives a percentage of sale proceeds, usually through an escrow account. Disputes arise when sales are recorded at lower prices than actually collected, when cash components are suspected, when bookings are cancelled and resold, or when the developer delays deposits into escrow. RERA requires 70% of buyers' payments to be deposited in a separate account for construction and land costs, and quarterly updates of bookings are published on RERA websites.

Ask the tribunal to order production of the booking register, allotment letters, buyer agreements, bank statements of the escrow and collection accounts, and the RERA filings. A forensic accountant can compare the declared sale prices with market rates and with the buyers' payment records. Discrepancies, once shown, often lead to settlement.

Termination of a JDA

A landowner who wants to end a JDA because the developer has failed must follow the agreement's termination clause precisely: the notice, the cure period, and the steps after termination. Many JDAs give the developer a right to cure, or require mediation before termination. A landowner who terminates without following these steps may face a claim for wrongful termination and specific performance.

After a valid termination, the consequences depend on the JDA: return of the deposit, compensation for work done, handing over of the site and approvals, and dealing with buyers who have already booked. Where flats have been sold to third parties, RERA obligations to those buyers may continue. A tribunal can make orders on all of these, but the landowner should plan for buyers' claims from the start.

Specific performance of development agreements

Developers sometimes seek specific performance of a JDA when a landowner tries to terminate or sell the land to someone else. After the 2018 amendment to the Specific Relief Act, specific performance is no longer discretionary in the old sense; the court or tribunal must enforce a contract unless it falls within the exceptions in Sections 11(2), 14 and 16. A developer seeking specific performance must show that it has performed, or has always been ready and willing to perform, its essential obligations.

A landowner facing such a claim should look at the developer's own defaults, the time elapsed, and whether the developer has the financial capacity to complete. Tribunals can grant specific performance of JDAs, and the award is enforceable through execution, including through registration of documents by a court officer where the landowner refuses.

Investor and co-developer agreements

Real estate projects are often funded by private investors, family offices, or co-developers under investment agreements that promise a fixed return, a share of profits, or allotment of units. When the project is delayed or unprofitable, investors seek return of their money with the promised return, while developers argue that the investment was risk capital.

The agreement's wording decides most of these disputes: was the investment a loan, an equity-like contribution, or an advance against units? Was the return assured or contingent? Is there security, such as a mortgage or a pledge of shares? Some arrangements may fall under regulations on deposits or collective investment schemes, which can affect enforceability. We assess this at the outset, before the claim is framed.

Stamp duty and registration

Agreements relating to immovable property, such as JDAs, are often required to be stamped and registered. An unstamped or insufficiently stamped arbitration agreement is no longer a bar to appointing an arbitrator after In re Interplay (2023), but the stamp duty issue may still need to be addressed before the tribunal. An award that creates, declares or assigns rights in immovable property may require stamp duty and registration under the Registration Act and the state Stamp Act before it can be relied on as a document of title.

Before an award or a settlement involving units is implemented, check the stamp duty payable under the relevant state law and arrange registration. Uttar Pradesh, Haryana and Delhi each have their own rates and rules.