Bombay High Court Dismisses Developer's Section 9 Petition Against Tenant Not Party to Arbitration Agreement. Interim relief under Section 9 of the Arbitration and Conciliation Act, 1996 cannot be granted against a third party who is not bound by the arbitration agreement.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The petitioner, Heritage Lifestyles & Developers Pvt. Ltd., filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996 seeking interim relief against respondents including a tenant (Respondent no.3) who was not a party to the development agreement dated 15 December 2009. The development agreement was between the petitioner, the housing society (Respondent no.1), and the landlord (Respondent no.2). The tenant was in possession of the premises and was unwilling to vacate for development. The landlord and society had no objection to the development but the landlord could not hand over possession due to tenancy proceedings. The court noted that the tenant was not a party to the arbitration agreement and therefore no interim relief under Section 9 could be granted against him. The petition was dismissed as against the tenant, and the court declined to grant any relief against the other respondents as they had no objection. The court held that the remedy, if any, lies elsewhere and not under Section 9 of the Act.

Headnote

A) Arbitration Law - Interim Relief - Section 9 of the Arbitration and Conciliation Act, 1996 - Third Party - The petitioner sought interim relief against a tenant who was not a party to the development agreement containing the arbitration clause. The court held that Section 9 relief cannot be granted against a person who is not a party to the arbitration agreement. The petition was dismissed as against the tenant. (Paras 2-5)

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Issue of Consideration

Whether interim relief under Section 9 of the Arbitration and Conciliation Act, 1996 can be granted against a person who is not a party to the arbitration agreement.

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Final Decision

The petition is dismissed as against Respondent no.3. No order as to costs.

Law Points

  • Section 9 of the Arbitration and Conciliation Act
  • 1996
  • interim relief
  • third party
  • arbitration agreement
  • party to agreement
  • tenant
  • landlord
  • development agreement
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Case Details

2011:BHC-OS:4364

Arbitration Petition No. 109 of 2011

2011-03-10

Anoop V. Mohta, J.

2011:BHC-OS:4364

Mr. Virag Tulzapurkar, Sr. Advocate with Mr. Ashish Kamat with Mr. V.N. Tendulkar for the petitioner; Mr. S.E. Kazi for respondent no.1; Ms. Pooja Purandare for respondent no.2; Mr. C.G. Gavnekar with Mr. B.R. Vishwakarma for respondent no.3

Heritage Lifestyles & Developers Pvt. Ltd.

Amarvilla Cooperative Housing Society Ltd., Mrs. Sandhya R. Rao, Mr. Navnitlal P. Shroff

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Nature of Litigation

Petition under Section 9 of the Arbitration and Conciliation Act, 1996 seeking interim relief.

Remedy Sought

The petitioner, a developer, sought interim relief against the tenant (Respondent no.3) to vacate the premises for development.

Filing Reason

The tenant was not willing to vacate the premises, hindering the development project.

Issues

Whether interim relief under Section 9 of the Arbitration and Conciliation Act, 1996 can be granted against a person who is not a party to the arbitration agreement.

Submissions/Arguments

The petitioner argued that interim relief is necessary to proceed with development. The tenant argued that he is not a party to the arbitration agreement and thus no relief can be granted against him.

Ratio Decidendi

Interim relief under Section 9 of the Arbitration and Conciliation Act, 1996 cannot be granted against a person who is not a party to the arbitration agreement.

Judgment Excerpts

Admittedly, Respondent no.3 is not a party to this development agreement having arbitration clause between the Petitioner and Respondent nos. 1 & 2. The remedy, if any, lies elsewhere and not under Section 9 of the Act.

Procedural History

The petition was filed under Section 9 of the Arbitration and Conciliation Act, 1996. Rule was issued and heard finally by consent of parties.

Acts & Sections

  • Arbitration and Conciliation Act, 1996: Section 9
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