Case Note & Summary
The judgment text provided contains the factual background and context of a commercial arbitration petition filed under Section 37 of the Arbitration and Conciliation Act, 1996, challenging an Arbitral Tribunal's order dated October 24, 2024, which refused interlocutory relief to the petitioner. The petitioner, Atul Projects India Pvt. Ltd., entered into a Memorandum of Understanding dated November 29, 2014 with the first respondent, Nima Developers Pvt. Ltd., to develop 5,00,000 square feet of residential area on 12.5 acres of land in Village Marve, Malvani and Aksa. This land formed part of a larger 100-acre tract leased to Nima by the second respondent, India Farmers Pvt. Ltd., under a sub-lease dated November 28, 2014. India Farmers held a reclamation lease from the Governor of Bombay Presidency dated July 7, 1956 for approximately 114 acres of marshy land for 999 years. The lease history involved termination by the Collector in 1993, reversal by the Additional Commissioner in 1994, and confirmation of termination by the Revenue Minister in 1998. India Farmers challenged these actions in Writ Petition No. 1029 of 1998, which was allowed by a Single Judge on March 23, 2004, setting aside the Revenue Minister order and a 2002 Show Cause Notice. The Government appealed in Appeal No. 766 of 2004. During the pendency of that appeal, the MoU was executed. The MoU contained conditions precedent, including the withdrawal or disposal of the appeal, and provided for payments and rights of first refusal. On November 2, 2015, a Deed of Confirmation was executed among the three parties, reaffirming obligations and providing for refund and interest if clear title was not obtained. The appeal proceedings culminated in a Division Bench judgment on October 1, 2019, which partially allowed the Government's appeal by setting aside the Revenue Minister order but reviving the 2002 Show Cause Notice based on allegations of mortgaging government land without consent. After this judgment, Nima called upon Atul to pay Rs. 12 crore and perform the MoU, but Atul disputed that clear title existed. On September 18, 2020, the Collector passed an order under the revived Show Cause Notice, holding India Farmers guilty of violating lease conditions and directing forfeiture of the lease and repossession. Possession was attempted on September 23, 2020, leading India Farmers to file Writ Petition (L) No. 3607 of 2020, and property cards were mutated to record the Government of Maharashtra as owner. The text ends mid-sentence noting that legal possession was with the Government. The provided excerpt does not include the court's analysis, issues framed, arguments of parties, or final decision. Therefore, those aspects are not mentioned in this extract.
Issue of Consideration
Challenge to the Arbitral Tribunal's order dated October 24, 2024 refusing interlocutory relief, and the intervention application by Oberoi Realty Limited.
Law Points
- Appeal under Section 37 of the Arbitration and Conciliation Act
- 1996 against an arbitral tribunal's order refusing interlocutory relief
Case Details
2025 LawText (BOM) (07) 72
Commercial Arbitration Petition (L) No. 35274 of 2024 with Interim Application (L) No. 1461 of 2025
Somasekhar Sundaresan, J.
Mr. P. Chidambaram, Senior Advocate a/w Dinyar Madon, Senior Advocate, Cyrus Ardeshir, Senior Advocate, Kausar Banatwala, Ziyad Madon, Manini Roy, Neuty N. Thakkar, Vaishali Dedhia, Nisha Waghmare, Dipsy Sequiera, i/b Tushar Goradia, for Petitioner; Mr. Aspi Chinoy, Senior Advocate a/w, Mr. Rohaan Cama a/w Pheroze Mehta, Krishna Balaji Moorthy, Bhakti Mehta, Letishiya Chaturvedi, i/b Wadia Gandhi & Co., for Applicant; Mr. Darius Khambata, Senior Advocate, a/w Karl Tamboly, Karan Rukhana, Deeksha Jani, Niket Jani, i/b Jani & Parikh, for Respondents.
Atul Projects India Pvt. Ltd.
1. Nima Developers Private Limited, 2. India Farmers Private Limited
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Nature of Litigation
Appeal under Section 37 of Arbitration and Conciliation Act, 1996 against Arbitral Tribunal's order refusing interlocutory relief, with intervention application by Oberoi Realty Limited.
Remedy Sought
Petitioner sought to challenge and set aside the Arbitral Tribunal's order dated October 24, 2024 refusing interlocutory relief; Intervenor sought intervention in the arbitration petition.
Filing Reason
Arbitral Tribunal refused to grant interlocutory relief to the Petitioner in a dispute arising from a Memorandum of Understanding for development of land; Petitioner filed appeal under Section 37; Oberoi Realty Limited sought intervention.
Previous Decisions
Arbitral Tribunal order dated October 24, 2024 refusing interlocutory relief. Prior related proceedings include Writ Petition No. 1029 of 1998, Appeal No. 766 of 2004, Civil Appeal 5947 of 2007, Division Bench judgment dated October 1, 2019, Collector's order dated September 18, 2020 under 2002 Show Cause Notice, and Writ Petition (L) No. 3607 of 2020.
Issues
Challenge to Arbitral Tribunal's order refusing interlocutory relief
Application for intervention by Oberoi Realty Limited in the arbitration appeal
Judgment Excerpts
This Petition is an appeal filed under Section 37 of the Arbitration and Conciliation Act, 1996 (“ the Act ”) impugning an Order dated October 24, 2024 (“ Impugned Order ”) passed by the Learned Arbitral Tribunal refusing to grant interlocutory relief to the Petitioner.
The Petitioner, Atul Projects India Pvt. Ltd. (“ Atul ”) entered into a Memorandum of Understanding dated November 29, 2014 (“ Atul MoU ”) with Respondent No. 1, Nima Developers Pvt. Ltd. (“ Nima ”) to develop 5,00,000 square feet of residential area on 12.5 acres of land that Nima was entitled to in Village Marve, Malvani and Aksa (“ Subject Land ”).
On September 18, 2020 , less than ten days after Nima had called on Atul to perform the Atul MoU, the Collector, Mumbai Suburban District passed an Order dealing with the 2002 SCN and holding India Farmers guilty of violating the lease conditions by mortgaging the property in favour of Indian Bank, which had led to recovery proceedings – contrary to India Farmers’ assertion that the loan had been repaid.
Procedural History
Petition filed under Section 37 of Arbitration and Conciliation Act, 1996 challenging Arbitral Tribunal order dated October 24, 2024. Interim Application for intervention filed by Oberoi Realty Limited. The matter was reserved on March 17, 2025 and pronounced on July 23, 2025. Prior related proceedings: Writ Petition No. 1029 of 1998, Appeal No. 766 of 2004, Civil Appeal 5947 of 2007, Division Bench judgment dated October 1, 2019, Collector's order dated September 18, 2020, Writ Petition (L) No. 3607 of 2020.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 37
