Synopsis

The appellant (landowner) received Rs.7.5 crores as sale consideration under an agreement to sell a plot. The agreement could not be performed because statutory authority refused to grant partition permission. The appellant offered to refund the amount in 2013, but the respondent (buyer) did not take refund and later invoked arbitration seeking specific performance, alternatively refund. The buyer gave up specific performance, claimed only refund. The arbitrator directed refund with 10% interest. The appellant challenged the award under Section 34, then under Section 37, primarily on limitation (arguing three-year period from 2013). The Division Bench dismissed the appeal, holding: (i) under Section 55(6)(b) of TPA, the buyer has a statutory charge on the property for the refund amount, and the limitation period for enforcing a charge is 12 years; (ii) alternatively, the appellant’s balance sheets from 2013-14 to 2016-17 acknowledged the liability and extended limitation; (iii) an unregistered agreement to sell can be looked into for the collateral purpose of proving payment. The court found the appellant’s conduct dishonest and imposed costs.

Court: High Court of Delhi at New Delhi

Coram: Hon’ble Mr. Justice V. Kameswar Rao and Hon’ble Ms. Justice Manmeet Pritam Singh Arora (Division Bench)

Date of Decision: 22nd April 2026

Citation: FAO(OS) (COMM) 58/2026 (2026:DHC:3356-DB)

Core Law: Arbitration and Conciliation Act, 1996 – Sections 34, 37; Transfer of Property Act, 1882 – Section 55(6)(b) (buyer’s charge); Limitation Act, 1963 – Article 62, Section 18 (acknowledgment); Indian Contract Act, 1872 – Section 56 (frustration); Registration Act, 1908 – Section 49 (U.P. amendment).

1. Heading of the judgment

High court of delhi at new delhi

Fao(os) (comm) 58 of 2026, cm appl. 16297 of 2026

Sng developers limited (appellant) vs. Lord vardhman buildtech private limited (respondent)

Coram: hon’ble mr. justice v. kameswar rao and hon’ble ms. justice manmeet pritam singh arora (division bench)

Date of decision: 22nd april, 2026

2. Legal framework

Major laws and provisions involved:

• Arbitration and conciliation act, 1996 – sections 34, 37 (appeal against award)

• Transfer of property act, 1882 – section 55(6)(b) (buyer’s charge on property for purchase money paid)

... Upgrade to a Premium Plan to view the full judgment.