Case Note & Summary
The petitioners, Atul Resorts and Hospitality India Pvt. Ltd. and Atul Projects India Ltd., filed two arbitration petitions under Section 9 of the Arbitration and Conciliation Act, 1996, seeking interim relief pending arbitration against the respondents, Lucky Developers and others. The dispute arose from development agreements concerning slum rehabilitation properties. The petitioners claimed that the respondents had agreed to sell them balance saleable FSI of 2,78,973 sq.ft. and that the petitioners were in possession of certain land. The petitioners sought an injunction restraining the respondents from alienating the saleable FSI and from disturbing their possession. The court considered the submissions and found that the petitioners had made out a prima facie case, the balance of convenience was in their favour, and they would suffer irreparable loss if the relief was not granted. The court granted interim relief restraining the respondents from selling, alienating, encumbering, or creating any rights in respect of the saleable FSI and from disturbing the petitioners' possession of the property described in the schedule, except in accordance with law. The court directed that the interim relief would continue until the disposal of the arbitration proceedings or until further orders.
Headnote
A) Arbitration - Interim Measures - Section 9 of the Arbitration and Conciliation Act, 1996 - Injunction restraining alienation of saleable FSI and possession - Petitioners sought interim relief pending arbitration based on development agreements - Court held that a prima facie case exists, balance of convenience is in favour of petitioners, and irreparable loss would be caused if relief not granted - Respondents restrained from selling, alienating, or encumbering saleable FSI and from disturbing petitioners' possession (Paras 1-10).
Issue of Consideration
Whether the petitioners are entitled to interim relief under Section 9 of the Arbitration and Conciliation Act, 1996, restraining the respondents from alienating saleable FSI and disturbing possession of the property pending arbitration.
Final Decision
The court allowed the petitions and granted interim relief restraining the respondents from selling, alienating, encumbering, consuming, transferring, or creating any rights in respect of the saleable FSI generated from the slum rehabilitation property, and from disturbing the possession of the petitioners over the property described in the schedule, except in accordance with law. The interim relief to continue until the disposal of the arbitration proceedings or until further orders.
Law Points
- Section 9 of the Arbitration and Conciliation Act
- 1996
- interim measures
- prima facie case
- balance of convenience
- irreparable loss
- arbitration agreement
- development agreement
- saleable FSI
- slum rehabilitation
