Bombay HC Restrains Property Owners From Obstructing Chembur Redevelopment, Orders Arbitration
Mumbai, October 20, 2026: The Bombay High Court has restrained a group of property owners from obstructing a redevelopment project in Chembur, holding that contractual disagreements cannot be used to pressure a developer into accepting fresh commercial terms when an existing agreement provides for arbitration. Justice Amit Borkar passed the order on October 19 while partly allowing a petition…
On October 19, 2026, the Bombay High Court intervened in a redevelopment dispute in Chembur, restraining property owners from obstructing the project and ordering arbitration. The case involved a development agreement known as "Delana," where property owners were entitled to eight flats of 600 square feet each and four parking spaces.
However, in November 2025, the owners contested the terms, alleging the developer had promised larger flats measuring 900 square feet. Despite resolving the dispute with another occupant in December 2025, the owners continued to communicate their demands, leading the housing society to withhold its final No Objection Certificate (NOC).
The developer, who had invested over Rs 15 crore in the project, sought protection from the court against further obstruction. Justice Amit Borkar ruled against the owners' objection to the developer's refusal to renegotiate the existing agreement. The court upheld Clause 85 of the agreement, which prohibited stopping construction due to contractual disputes, except for title-related issues.
The owners were prohibited from obstructing the redevelopment or creating rights contrary to the agreement, and they were directed to withdraw their communication within seven days. The developer was ordered to initiate arbitration within 14 days.
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