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Homebuyers under the Code: Judicial Calibration Between Protection and Process

Summary: Recent judicial developments in India are reshaping the treatment of homebuyers under the Insolvency and Bankruptcy Code, 2016. Courts have moved beyond merely recognising homebuyers as financial creditors to substantively distinguishing genuine homebuyers from speculative investors, ensuring the Code is not misused as a recovery tool. While admission into insolvency remains a narrow enquiry of debt and default, broader homebuyer protection is addressed within the resolution process through prospective directions, equitable exceptions for belated claims, and judicial intervention against third-party actions that threaten project viability  Alongside, consumer protection remedies under RERA and the Consumer Protection Act continue to offer parallel avenues for redressal. The evolving framework seeks to balance procedural discipline with fairness, ensuring genuine homebuyers are not left without effective remedies.

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Summary: A key procedural question in Indian arbitration law concerns the trigger for the commencement of the limitation period under Section 34(3) of the Arbitration Act, where a party files a Section 33 application before challenging an arbitral award. Conflicting judicial precedents had created uncertainty on whether an application that was misconceived in scope, or unsuccessful in outcome, could nonetheless shift the limitation trigger from the date of receipt of the award to the date of disposal of the Section 33 request. The Supreme Court in Geojit Financial Services v. Sandeep Gurav (2025) has resolved this conflict by holding that any proper and timely Section 33 application, regardless of outcome or scope, defers limitation to the date of its disposal.

Introduction

The computation of limitation for challenging an arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996 (“the Act”) has given rise to conflicting lines of authority, particularly where a party invokes Section 33 for correction or interpretation of the award before approaching the court. Section 33 allows such applications within a period of 30 days from the receipt of the arbitral award, unless another time period has been agreed upon by the parties.[1] Section 34 stipulates a period of three months for making an application for setting aside an arbitral award. However, Section 34(3) establishes two triggers for the three-month limitation period: (i) in the ordinary course, limitation starts from the date on which the party receives the arbitral award; (ii) alternatively, where the party has made a request under Section 33, limitation commences from the date on which the arbitral tribunal disposes of that request.[2]

The legal issue centres around what qualifies as a Section 33 application for determining which of the two limbs of Section 34(3) governs the commencement of limitation, and whether its outcome, scope, or maintainability affects the commencement of limitation under the second limb. Two factual scenarios recur in practice: first, where an application styled as one under Section 33 is, in substance, a disguised attempt to seek a review of the award on the merits; and second, where a Section 33 application that is otherwise “proper” in form, is dismissed by the tribunal without any correction or modification to the award. Recent judicial developments, culminating in the Supreme Court’s decision in Geojit Financial Services Ltd. v. Sandeep Gurav[3] (“Geojit”), have settled much of this debate.

Damani Construction: Disguised Review and Improper Form of Application

The Supreme Court first addressed the debate in State of Arunachal Pradesh v. Damani Construction Co. [4](“Damani Construction”). In this case, the party did not file a formal Section 33 application but merely addressed a letter to the arbitrator seeking review on the merits of the interim award and directions regarding the mode of payment.

The Court held that such a communication lay outside the scope of Section 33, emphasising the Act does not confer any power of review on arbitral tribunals. It concluded that a request wholly beyond Section 33 cannot be treated as a Section 33 application for the purposes of Section 34(3). Consequently, the arbitrator’s response to such a letter did not furnish a fresh trigger for limitation under the second limb of Section 34(3).

Importantly, Damani Construction turned on two factors, i.e., the absence of a formal application, and that the request was entirely alien to Section 33. The Court was not confronted with a situation where a formal Section 33 application, although misconceived on merits, had been filed and disposed of.

Extension of Damani Construction by High Courts

Subsequently, certain High Court decisions relied on the reasoning in Damani Construction to hold that even formally styled Section 33 applications would not shift the limitation trigger to the second limb under Section 34(3) if they were substantively beyond the scope of Section 33.

In Nirmal Singh v. Horizon Crest India Real Estate,[5] the Delhi High Court held that applications seeking re-appreciation of evidence or review on merits could not be treated as Section 33 applications. The Karnataka High Court in Sri Prahaldas Goyal v. Sri Anand[6] and T. Younis v. NHAI[7]and the Bombay High Court in Dr. Writer’s Food Products Pvt. Ltd. v. The Cosmos Co-operative Bank Limited[8] adopted similar views.

Importantly, these decisions held that limitation under Section 34(3) could not be artificially extended by filing an application which the tribunal had no jurisdiction to entertain under Section 33. Hence, this strand of authority effectively made the commencement of limitation contingent on a judicial or arbitral determination of whether the Section 33 application was within scope.

Ved Prakash Mithal: Meaning of “Disposal”

The Supreme Court decisively shifted course in Ved Prakash Mithal and Sons v. Union of India[9](“Ved Prakash”). The issue was whether limitation would recommence from the date of disposal of a Section 33 application even when that application was dismissed and no correction was made to the award.

The Supreme Court held that the expression “disposed of” in Section 34(3) is clear and admits of no qualification. A Section 33 application is “disposed of” whether it is allowed or dismissed, and the statute draws no distinction based on the result of such proceedings. Accordingly, limitation under Section 34(3) turns solely on the date on which the arbitral tribunal disposes of the Section 33 application.

Geojit Financial Services: Settling the Conflict

The apparent conflict between Damani Construction and Ved Prakash, especially as amplified by the mentioned High Court rulings, was resolved by the Supreme Court in Geojit.

After a detailed analysis of Sections 33 and 34(3), the Court reaffirmed the ratio of Ved Prakash, holding that once a Section 33 request is made, limitation for filing a Section 34 petition commences from the date of its disposal, irrespective of whether the tribunal grants or rejects the request. The Court clarified that the legislature’s use of the word “disposed” is deliberate, and that it would have used “allowed” instead had Parliament intended the benefit of a shifted trigger to arise only where the application was allowed.

Further, the Supreme Court distinguished Damani Construction on the ground that the party had never formally invoked Section 33, but only issued a letter seeking review of the award and ancillary clarifications, which the Court refused to recognise as a Section 33 request.

Geojit has made it explicit that a “formal application” invoking Section 33 does not cease to be a Section 33 application merely because the reliefs sought fall outside its substantive scope. Even a misconceived or “disguised” application attracts the second limb of Section 34(3), provided it satisfies the statutory prerequisites.

Against this backdrop, the Supreme Court limited the inquiry to only two conditions for shifting the limitation trigger under Section 34(3):

  1. A formal application under Section 33 must be filed within thirty (30) days of receipt of the arbitral award (unless otherwise agreed by the parties[10]); and
  2. Notice of such application must be given to the other party.

Once these conditions are fulfilled, the commencement of limitation follows directly from the statutory framework. The Court expressly rejected the notion that the commencement of limitation could be contingent on whether the application was maintainable, justified, or within the substantive ambit of Section 33. The Court grounded this approach in the importance of providing parties with a clear and predictable basis for calculating limitation.

Conclusion

The Supreme Court’s decision in Geojit brings much-needed clarity to the law governing the commencement of limitation under Section 34(3) of the Act. By adopting a simple literal interpretation of the statutory language, the Court has ensured that the trigger for limitation is ascertainable, objective, and immune from ex post facto evaluations on the merits or maintainability of the Section 33 application. Parties no longer need to speculate whether a Section 33 request will be characterised as beyond scope to determine when their window for filing a Section 34 petition begins. This approach also aligns with the Model UNCITRAL Law, which deliberately retained the deferral of limitation following Article 33 requests, despite concerns that it could be used as delaying tactic , in order to preserve certainty and finality in arbitration proceedings.[11]

While Damani Construction cannot be characterised as bad law as its facts remain materially distinguishable, the manner in which certain High Courts have extended its reasoning to formally filed Section 33 applications is now open to question in light of Geojit.

[1] Section 33(1), the Act

[2] Section 34(3) of the Act: “An application for setting aside may not be made after three months have elapsed from the date on which the party making that application had received the arbitral award or, if a request had been made under section 33, from the date on which that request had been disposed of by the arbitral tribunal”

[3] 2025 SCC OnLine SC 1811

[4] (2007) 10 SCC 742

[5] 2020 SCC OnLine Del 2564

[6] CRP No. 100014/2019, Karnataka High Court

[7] W.P. No. 105176 of 2023 (GM-RES), Karnataka High Court

[8] Commercial Arbitration Petition No. 486 of 2017, Bombay High Court

[9] 2018 SCC OnLine SC 3181

[10] Section 33(1), the Act

[11] Peter Binder, International Commercial Arbitration and Conciliation in UNCITRAL Model Law Jurisdictions (7th edn, Sweet & Maxwell 2010): “An application for setting aside an award can only be made during the three months following the date on which the party making the application has received the award. Only if a party has made a request for correction or interpretation of the award under Article 33 does the time-limit of three months begin after the tribunal has disposed of the request. This exception from the three-month time-limit was subject to criticism in the working group due to fears that it could be used as a delaying tactic. However, although “an unbreakable time-limit for applications for setting aside” was sought as being desirable for the sake of “certainty and expediency” the prevailing view was that the words ought to be retained “since they presented the reasonable consequence of Article 33”. According to this “unbreakability” of time-limit and true to the “certainty and expediency” of the arbitral awards, any grounds for setting aside the award that emerge after the three-month time-limit has expired cannot be raised.”

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Sanctions Compliance Beyond the 50% Rule: A Practical Guide for Indian Businesses

Summary: The 50% ownership rule has always been the cornerstone of sanctions compliance offering apparent certainty to entities navigating complex cross-border transactions. However, in recent years, global regulators have started looking beyond the ownership percentage, scrutinizing effective control and influence to determine sanctions exposure. This piece examines the evolving sanctions landscape across the US, UK & EU and provides Indian businesses with a practical, risk-based compliance framework to align with international enforcement expectations.

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Summary: The Securities Appellate Tribunal and Supreme Court recently had the occasion to examine what amounts to securities fraud. While in BDMCL, the SAT examined whether the essential ingredients of fraud were satisfied, in Terrascope, the Supreme Court ruled that false promises in fundraising documents amount to fraud and the same cannot be ratified subsequently by shareholders. Together, these rulings highlight the critical role of transparency and accountability in corporate disclosures.

Continue Reading Where Does Indian Law on Securities Fraud Stand?
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Statutory Interpretation versus Hierarchical Presumptions: Supreme Court Settles Section 29A Jurisdiction

Summary: The Supreme Court in Jagdeep Chowgule v. Sheela Chowgule resolved conflicting High Court views on whether Section 29A application to extend an arbitral tribunal’s mandate lies before the High Court or the Civil Court. Drawing a clear and principled distinction between appointment jurisdiction and supervisory jurisdiction, it held that jurisdiction under Section 29A rests exclusively with the “Court” as defined in Section 2(1)(e), irrespective of whether the tribunal was appointed under Section 11(2) or 11(6). Rejecting a hierarchy‑based reasoning, the judgment affirms statutory text as the sole determinant of jurisdiction, thereby bringing clarity and consistency to Indian arbitration jurisprudence. The Court invoked Dicey’s enduring dictum: “however high you may be, the law is above you.”

Introduction

The Supreme Court’s decision in Jagdeep Chowgule v. Sheela Chowgule[1] resolves a critical jurisdictional question that had long divided High Courts into two irreconcilable streams of authority — should an application for extension of time under Section 29A of the Arbitration and Conciliation Act, 1996[2] (“Act”), be filed before the High Court which appointed the arbitrator or, the Civil Court of original jurisdiction. The judgment represents a decisive rejection of interpretive approaches grounded in notions of court hierarchy and affirms the primacy of statutory text in determining jurisdiction.

Background

The Single Judge of the Bombay High Court at Goa referred two domestic arbitration questions to the Division Bench. First, if an arbitral tribunal constituted by the High Court under Section 11(6) fails to complete proceedings within the stipulated/ extended period, should an application under Section 29A(4) be filed in the High Court or the Civil Court original jurisdiction? Second, if an arbitral tribunal constituted under Section 11(2), based on the agreement and consent of the parties, fails to complete proceedings within the stipulated/ extended period, should such an application be submitted to the High Court or the Civil Court having original jurisdiction.

The Division Bench answered that if the High Court has constituted an arbitral tribunal under Section 11(6), the application under Section 29A(4) needs to be made to the High Court, but if it is constituted under Section 11(2), as per agreement and consent of the parties, the application would lie to the Principal Civil Court of original jurisdiction, including the High Court, in exercise of its ordinary original jurisdiction.[3]

Divergent High Court Approaches

Before delving into the question, the Supreme Court identified two distinct streams of High Court jurisprudence on this issue:

Plain Reading of Section 2(1)(e)

    The first stream of High Court decisions[4] hold that the expression “Court” in Section 29A of the Act refers to the definition provided in Section 2(1)(e) of the Act. This applies regardless of whether the arbitral tribunal was constituted by the Supreme Court or High Court under Section 11(6), or through mutual consent of parties as outlined under Section 11(2). The reasoning stems from the principle that once an arbitrator has been appointed through the judicial process, the appointing court becomes functus officio, and applications seeking extension of mandate must accordingly be filed before the “Court” as defined in Section 2(1)(e).

    Further, the text of the Act is unambiguous as, neither a High Court (not having original ordinary civil jurisdiction) has been included with regard to jurisdiction to entertain an application under Section 29A, nor has a Principal Civil Court been excluded from Section 2(1)(e), as has been explicitly done for Sections 47 and 57 of the Act.

    Contextual Interpretation Based on Hierarchical Concerns

      The second stream of High Court decisions[5] hold that when an arbitrator is appointed by the High Court under Section 11(6), applications for extension of time under Section 29A cannot be made before Civil Courts, as this interpretation would create a jurisdictional anomaly where the High Court would be appointing the arbitrator and the Civil Court, a Court inferior to it, could be asked to extend the arbitrator’s mandate or appoint a substitute arbitrator.

      To address this issue, the rulings interpret the term “Court” in Section 29A contextually. They rely on the opening phrase in Section 2(1) of the Act, “in this Part, unless the context otherwise requires”, to conclude that, to extend the mandate of an arbitral tribunal constituted under Section 11(6) by the High Court or the Supreme Court, the relevant “Court” is not the one defined in Section 2(1)(e), it is the High Court or the Supreme Court that constituted the tribunal under Section 11(6) of the Act.

      The Analytical Framework adopted by the Supreme Court

      The Court begins by disproving the need to bifurcate the question based on the initial process of appointment under Section 11(6) and Section 11(2) of the Act, respectively, holding that the true issue lies not in the mode of constitution of the tribunal but in identifying the proper forum empowered under Section 29A to extend its mandate.

      The Court’s analysis underscores a functional compartmentalisation of the Act, treating it as a complete code with distinct chapters — covering general provisions (Chapter I), arbitration agreements (Chapter II), composition of the arbitral tribunal (Chapter III), jurisdiction of arbitral tribunals (Chapter IV), conduct of arbitral proceedings (Chapter V), making of award and termination (Chapter VI), and judicial remedies including challenge, appeal, finality, and enforcement (Chapters VII–IX), each serving distinct and separate purposes. The Court breaks down the Parliament’s intent behind introducing such chapters — to introduce efficiency, where appointment jurisdiction differs from supervisory jurisdiction. In particular, jurisdiction under Section 11 is special and limited, confined to a prima facie determination of the existence of an arbitration agreement.[6] The same stands exhausted once the tribunal is constituted, leaving no residual supervisory power with such referral court, and thus necessitating approaching the “Court” as defined in Section 2(1)(e) i.e., the principal Civil Court of original jurisdiction, for purposes of Section 29A.

      The Supreme Court refers to Chief Engineer (NH) PWD (Roads) v. BSC&C and C JV[7], affirming that the power under Section 29A(4) vests in the “Court” as defined under Section 2(1)(e), being the principal Civil Court of original jurisdiction in a district, including a High Court with ordinary original civil jurisdiction, and that the power of substitution under Section 29A(6) is a consequential power vesting in the same court.

      The Supreme Court also relies on the reasoning in SBP & Co. v. Patel Engineering Ltd.[8], to distinguish and explain why the Parliament vested the Section 11 power in the Chief Justice rather than in the “Court” as defined. The underlying intent is to ensure that the appointment of the arbitral tribunal carries the greatest credibility and is exercised by the highest judicial authority in the state and in the country.

      Relying on A.R. Antulay v. R.S. Nayak[9] and State of Jharkhand v. Hindustan Construction Co. Ltd., [10] the Court’s analysis underscored that jurisdiction cannot be shaped by notions of hierarchy or conflict of power, which are opposed to the fundamental conception of rule of law, but must rest squarely on the statutory text. It rejected the argument that civil courts should be excluded from Section 29A applications merely because arbitrators are appointed by the High Court under Section 11(6).

      Further, applying settled principles of statutory interpretation, the Court emphasised that defined terms must carry their assigned meaning unless context dictates otherwise.[11] Building on precedents,[12] the Court clarified that applications concerning termination or substitution must be filed before the “Court” so defined under Section 2(1)(e), not before the Supreme Court or High Court acting under Section 11(6).

      The Court clarified that Section 42, which channels all subsequent applications to the same court where the first application under Part I of the Act was made, does not apply to proceedings under Section 11. Applications under Section 11 are made before the Chief Justice of the High Court or of India, or their designate, who do not qualify as a “Court” within the meaning of Section 2(1)(e). Consequently, the filing of a Section 11 application does not trigger Section 42, and later applications such as those under Section 29A cannot be funnelled to the High Court on that basis.[13]

      Holding of the Supreme Court

      The Supreme Court conclusively held that all applications under Section 29A(4) for extension of time must be filed before the “Court” as defined in Section 2(1)(e), namely, the Principal Civil Court of original jurisdiction or the High Court exercising ordinary original civil jurisdiction. The method of appointment of the arbitral tribunal, whether by the parties under Section 11(2) or by the High Court under Section 11(6), is immaterial to determining jurisdiction. Once the tribunal is constituted, the appointing authority under Section 11 becomes functus officio and retains no supervisory power over arbitral proceedings. The authority to extend time or substitute arbitrators under Section 29A(6) vests in the statutorily defined “Court” under Section 2(1)(e), and not in the High Court or Supreme Court acting in their Section 11(6) capacity.

      Conclusion

      In resolving a long‑standing jurisdictional divide, the Supreme Court’s ruling restores coherence to the scheme of the Act and reinforces the principle that legislative text, not judicial hierarchy, must guide jurisdiction. By delineating the boundaries of Section 11 and Section 29A, the judgment safeguards arbitral independence and enhances institutional clarity. It stands as a significant step toward harmonising arbitration practice across India.

      [1]  2026 SCC OnLine SC 124

      [2]  The Arbitration and Conciliation Act, 1996 (Act No. 26 of 1996)

      [3] Vide order dated 07.08.2024 in Writ Petition No. 88 of 2024 filed by Respondent No.1, against of order of the Commercial Court in CMA No. 20/2023/A allowing application under Section 29A by Respondent no. 2

      [4] Mormugao Port Trust v. Ganesh Benzoplast Ltd. 2020 SCC OnLine Bom 11821; A’Xykno Capital Services Private Ltd. v. State of UP 2023 SCC OnLine ALL 2991; Dr. VV Subbarao v. Dr. Appa Rao Mukkamala 2024 SCC OnLine AP 1668

      [5] Nilesh Ramanbhai Patel v. Bhanubhai Ramanbhai Patel 2018 SCC OnLine Guj 5017; Cabra Instalaciones Y. Servicios v. Maharashtra State Electricity Distribution Co. Ltd. 2019 SCC Online Bom 1437; DDA v. Tara Chand Sumit Construction Co. 2020 SCC OnLine Del 2501; Amit Kumar Gupta v. Dipak Prasad 2021 SCC OnLine Cal 2174; Magnus Opus IT Consulting Pvt Ltd v. Artcad Systems 2022 SCC OnLine Bom 2861; Indian Farmers Fertilizers Cooperative Limited v. Manish Engineering Enterprises 2022 SCC OnLine All 150; Best Eastern Business House Pvt. Ltd. v. Mina Pradhan 2025 SCC OnLine Cal 7997; Ovington Finance Pvt Ltd. v. Bindiya Naga 2023 SCC OnLine Del 8765; K.I.P.L. Vistacore Infra Projects J.V. v. Municipal Corporation of the city of Ichalkarnj 2024 SCC Online Bom 327; Geo Miller Company Private Limited v. UP Jal Nigam 2024 SCC OnLine All 1676;

      [6] Duro Felguera SA v. Gangavaram Port Ltd (2017) 9 SCC 729; Interplay Between Arbitration Agreement under the Arbitration and Conciliation Act, 1996 and the Indian Stamp Act, 1899 In re (2024) 6 SCC 1; SBI General Insurance Co Ltd v. Krish Spinning Mills Pvt. Ltd. 2024 SCC Online SC 1754

      [7] Chief Engineer (NH) PWD (Roads) v. BSC&C and C JV2024 SCC OnLine SC 1801

      [8] SBP & Co. v. Patel Engineering Ltd. (2005) 8 SCC 618

      [9] A.R. Antulay v. R.S. Nayak (1988) 2 SCC 602

      [10] State of Jharkhand v. Hindustan Construction Co. Ltd. (2018) 2 SCC 602

      [11] KV Muthu v. Angamuthu Amman (1997) 2 SCC 53

      [12] State of West Bengal v. Associated Contractors (2015) 1 SCC 32; Nimet Resources Inc. v. Essar Steels Ltd. (2009) 17 SCC 313

      [13]  State of Jharkhand v. Hindustan Construction Co. (2018) 2 SCC 602; State of West Bengal v. Associated Contractors (2015) 1 SCC 32

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      Summary: The article examines the Indian Supreme Court’s landmark ruling in C. Velusamy v. K. Indhera, which confirms that courts retain the power under Section 29A(5) of the Arbitration and Conciliation Act, 1996 to extend an arbitrator’s mandate even after an award has been passed following the expiry of that mandate. Crucially, the Court clarified that such a post-mandate award is unenforceable, and any extension of the mandate does not validate the defective award. Instead, the tribunal may resume proceedings from the point at which the mandate expired and deliver a fresh, valid award within the extended period. The judgment clarifies that an award delivered after the expiry of mandate of the tribunal is not fatal to the arbitration itself, and procedural steps may be taken to revive and resume the arbitration so that a valid award may be delivered to bring the arbitration to conclusion.

      Continue Reading When the Clock Runs Out: The Supreme Court Reaffirms Courts’ Power to Extend Arbitrator’s Mandate Post Award  
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      Does Interest Stop Running When Award Amounts Are Deposited In Court?

      Summary: Recent Indian jurisprudence confirms that depositing an arbitral award amount with the court during Section 34 proceedings stops interest from running, but only if the deposit is full, unconditional, and properly notified. Partial payments made over time do not attract this benefit. This clarity provides judgment debtors with a powerful tool to limit their exposure while awards remain under challengeand gives decree holders certainty about their entitlements.

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      Bombay High Court Closes the Door on Enforcing Foreign Awards Against Non-Parties

      Summary: This article analyses the Bombay High Court’s decision in Ningbo Aux Imp and Exp Co Ltd v. Amstrad Consumer India Pvt Ltd & Anr., which held that enforcement of a foreign arbitral award under Part II of the Arbitration and Conciliation Act, 1996, is confined to persons between whom the award was made, and directed deletion of a non-party guarantor from enforcement proceedings. The article also examines the subsequent Section 9 petition, dismissed on the ground that interim measures cannot be directed against a party against whom the award is not enforceable.

      Continue Reading Bombay High Court Closes the Door on Enforcing Foreign Awards Against Non-Parties
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      From Ambiguity To Authority: Supreme Court Affirms Selective Capital Reduction

      Summary: The Companies Act, 2013, under Section 66, permits the reduction of share capital by a company “in any manner”, subject to passing a special resolution and attaining a confirmation from the National Company Law Tribunal. Whether this flexibility can be extended to permit selective reduction of share capital wherein the shares of only a particular class/category of shareholders is reduced is a question the High Courts and the tribunals have answered in the past, albeit with some contradictions. The Supreme Court in its recent judgment in Pannalal Bhansali v. Bharti Telecom Limited & Ors. has conclusively settled this issue and upheld the validity of selective capital reduction.

      Continue Reading From Ambiguity To Authority: Supreme Court Affirms Selective Capital Reduction