1. Dispute Resolution Mechanism Defined in the Agreement
The Joint Development Agreement (JDA) typically contains a dispute resolution clause, which outlines:
- The method of resolution (e.g., arbitration, mediation, or civil litigation)
- The jurisdiction—specific courts or arbitral tribunals
- The language, location, and timeline for proceedings
This clause governs how disputes are to be addressed, ensuring that both landowner and developer follow a pre-agreed legal pathway.
2. Arbitration as the Preferred Method
Most JDAs include an arbitration clause to handle disputes such as:
- Delay in delivery of the landowner’s share of constructed area
- Misuse or underutilization of Floor Space Index (FSI)
- Breach of profit-sharing terms or misrepresentation
Arbitration is preferred because it is:
- Faster and more private than court litigation
- Handled by an independent arbitrator or panel, mutually appointed
- Enforceable under the Arbitration and Conciliation Act, 1996
The arbitral award is binding and enforceable through civil courts if not honored voluntarily.
3. Civil Courts and Judicial Recourse
In the absence of an arbitration clause—or if the clause is disputed—parties can approach:
- Civil courts with appropriate jurisdiction over the location of the property
- Commercial courts, if the value of the dispute qualifies
- High Courts, for writs or appeals against lower court orders
The courts can issue injunctions, specific performance orders, or grant compensation, depending on the case.
4. Real Estate Regulatory Authority (RERA) Jurisdiction
If the joint development involves residential or commercial projects meant for sale to allottees, the project must be registered under RERA. In such cases:
- Disputes between landowners (as co-promoters) and developers may fall under RERA’s purview
- Landowners can file complaints regarding non-delivery, project delays, or unfair practices
- RERA has the power to issue penalties, directions, and project completion mandates
However, RERA’s role is limited to cases involving public sale components and buyer interests.
5. Consumer Forums (In Limited Circumstances)
If the landowner is treated as a consumer—for example, receiving built-up space as consideration—they may:
- Approach Consumer Dispute Redressal Forums for compensation
- Seek relief for deficiency in service, construction quality, or delays
This is applicable when the landowner’s share is akin to a purchaser’s entitlement, not an investment partnership.
6. Mediation or Conciliation for Amicable Resolution
Before initiating formal proceedings, parties may:
- Engage in mediation or conciliation with help from a neutral third party
- Try settlement negotiations, often facilitated by legal advisors or real estate consultants
- Include a pre-arbitration mediation clause in the JDA to avoid escalation
These options are cost-effective and preserve the ongoing relationship between the parties.
