DCM Limited has disclosed that GCD Prime (Developer) has filed an appeal before the Hon’ble High Court of Delhi seeking to set aside the order dated July 28, 2026, which dismissed the developer’s petition under Section 9 of the Arbitration and Conciliation Act, 1996. The appeal challenges the court’s refusal to stay the operation of the Termination Notice issued by DCM Limited on November 1, 2025, regarding the Joint Development Agreement (JDA) for a project in Hisar, Haryana. This development follows the earlier dismissal of GCD Prime’s request to restrain DCM Limited from interfering with its legal rights or creating third-party interests in the subject land.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The company received the copy of the appeal via email from the developer’s advocates on August 7, 2026, at 09:09 A.M. The filing marks a continuation of the legal dispute stemming from the termination of the JDA dated August 11, 2022, due to alleged breaches by the developer, including failure to secure revocation of a suspended license from the Haryana Government.

Background of the Dispute

The conflict originated from a Joint Development Agreement between DCM Limited and GCD Prime for the development of approximately 68.35 acres of land situated in Village Bir Hisar, Sector-23, Hisar, Haryana. Under the agreement, the parties intended to develop an affordable residential plotted colony under the Deen Dayal Jan Awas Yojna (DDJAY), 2016. The revenue sharing model stipulated that DCM Limited would receive 55% of the net sale revenue, while GCD Prime would receive 45%.

The project faced regulatory hurdles when the Director General, Town and Country Planning, Haryana, suspended License No. 179 of 2022 dated November 7, 2022, vide order no. LC-4455/JE(S)/2023/10909-21 dated April 18, 2023. The suspension was issued due to an inquiry into alleged unauthorized sale of land and illegal change of use. Consequently, the Haryana Real Estate Authority (HRERA), Panchkula, placed the project registration (HRERA-PKL-HSR-427-2023) in abeyance and directed HDFC Bank Limited to freeze the escrow account of DCM Limited.

Legal Proceedings Timeline

In its petition under Section 9 of the Act, GCD Prime had sought interim directions to stay the termination notice and restrain DCM Limited from taking steps that might prejudice its rights. The developer argued that it had performed all obligations and that the license suspension was attributable to statutory authorities rather than its own default. However, the Delhi High Court found that the petitioner failed to establish a prima facie case, balance of convenience, or risk of irreparable injury. The court noted that the JDA did not confer proprietary interest on the developer, limiting its rights to a share in net sales revenue.

Current Status and Financial Implications

Following the dismissal of the Section 9 petition, an arbitrator, Justice (Retd.) Badar Durrez Ahmed, was appointed as the Sole Arbitrator to adjudicate the disputes between the parties. However, the arbitration proceedings have not yet commenced. DCM Limited has stated that the expected financial implication of these proceedings is not determinable at this stage. Similarly, the quantum of claims remains undetermined. The company continues to monitor the situation and will provide further updates as required under regulatory guidelines.

The Hon'ble Delhi High Court, presided over by Justice Jasmeet Singh, on July 28, 2026, dismissed the Section 9 petition filed by GCD Prime against DCM Limited under the Arbitration and Conciliation Act, 1996, vacating all interim orders. DCM Limited received the copy of the court order on July 28, 2026, at 7:30 P.M., and disclosed the development to the stock exchanges on July 29, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Background: The Joint Development Agreement and Termination

The dispute traces its origins to a Joint Development Agreement (JDA) executed between DCM Limited and GCD Prime on August 11, 2022, for the joint development of DCM's land admeasuring approximately 68.35 acres situated at Village Bir Hisar, Sector-23, Hisar, Haryana, under the Deen Dayal Jan Awas Yojana-2016 (DDJAY) policy. Under the JDA, GCD Prime was entitled to retain 45% of the net sales revenue, while DCM Limited was entitled to 55%. GCD Prime paid Rs. 50 crores in advance and obtained a development license bearing No. 179 dated November 7, 2022, from the Directorate of Town and Country Planning, Haryana, for setting up an affordable residential plotted colony on 67.275 acres of the subject land.

However, on April 18, 2023, the Director General, Town and Country Planning, suspended the license on account of an inquiry initiated against DCM regarding alleged unauthorized sale of land and illegal change of use. Following over two years of inordinate delay in revocation of the suspension, DCM Limited's Board, in its meeting held on November 1, 2025, approved the issuance of a Notice of Forfeiture and Termination to GCD Prime under Clause 11.3 of the JDA, notifying that the amounts paid by GCD Prime under the JDA would stand forfeited and the JDA would stand terminated upon expiration of 15 days from receipt of the notice.

Key Milestones in the Dispute

The following table summarises the key events in the chronology of the dispute:

Reliefs Sought and Court's Findings

GCD Prime had approached the Delhi High Court seeking, inter alia, the following reliefs:

• Stay on the operation of the Termination Notice dated November 1, 2025.
• Restraint on DCM Limited from interfering with GCD Prime's legal rights over the concerned land and/or creating any third-party rights.
• Directions to maintain status quo with respect to the ownership, possession, title, rights, and development of the subject land.
• Directions to maintain status quo with respect to the terms and performance of the JDA until conclusion of arbitration proceedings.

The court, after hearing arguments at length, held that GCD Prime failed to establish the three-fold test required for grant of interim relief under Section 9 of the Act, namely: a good prima facie case, balance of convenience in favour of the petitioner, and risk of irreparable loss and injury.

Court's Analysis on Prima Facie Case and Balance of Convenience

On the question of prima facie case, the court observed that Clause 4.4.1 of the JDA imposed a continuing obligation on GCD Prime to not only obtain necessary approvals and licenses but also to keep them valid and subsisting throughout the project period. The court held that GCD Prime's contention that its obligation was limited to obtaining the license and did not extend to its reinstatement after suspension was contrary to the express contractual stipulation under Clause 4.4.1.

On the balance of convenience and irreparable injury, the court found that the JDA did not create any proprietary or possessory interest in the subject land in favour of GCD Prime. The development was structured on a profit-sharing model of 45% and 55%, and accordingly, GCD Prime's entitlement was limited to a 45% share in the net sales revenue. The court held that any loss suffered by GCD Prime could be compensated in monetary terms and that the petitioner could seek damages before the Sole Arbitrator if it succeeded in the arbitration proceedings.

Arbitration Proceedings and Disclosure

Pursuant to the notice received from GCD Prime under Section 21 of the Arbitration and Conciliation Act, 1996 on March 18, 2026, a Sole Arbitrator — Hon'ble Mr. Justice (Retd.) Badar Durrez Ahmed — was appointed with the consent of the parties. However, as disclosed by DCM Limited, the arbitration proceedings have not yet commenced. The court clarified that its observations in the judgment were confined to the Section 9 petition and that the Sole Arbitrator shall be at liberty to draw independent conclusions after evidence is led in the matter. DCM Limited's Managing Director, Vinay Sharma, signed the regulatory disclosure filed with the stock exchanges on July 29, 2026.