Case Note & Summary
The petitioner, Bharat Infrastructure and Engineering Pvt. Ltd., a builder and developer, filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996, seeking appointment of a Court Receiver to take physical possession of flats occupied by respondent Nos. 2 to 6c in Park Darshan CHS Ltd., a cooperative housing society, for demolition and reconstruction. The petitioner also sought an injunction restraining the respondents from alienating or parting with possession of their flats. The respondents opposed the petition, arguing that the dispute was not arbitrable as it fell under the Maharashtra Cooperative Societies Act, 1960. The court analyzed the nature of the dispute and held that the dispute between the society and its members regarding redevelopment and possession of flats is covered under Section 91 of the Maharashtra Cooperative Societies Act, 1960, which provides for resolution of such disputes through the cooperative machinery. The court further held that since the underlying dispute is not arbitrable, no interim measures under Section 9 of the Arbitration and Conciliation Act, 1996, can be granted. The petition was dismissed with no order as to costs.
Headnote
A) Arbitration Act - Section 9 - Appointment of Court Receiver - Prima Facie Case - The petitioner sought appointment of Court Receiver for possession of flats for demolition and reconstruction. The court held that no prima facie case was made out as the dispute was not arbitrable. (Paras 1-3) B) Cooperative Societies Act - Section 91 - Bar on Arbitration - Disputes between a cooperative society and its members regarding redevelopment are covered under Section 91 of the Maharashtra Cooperative Societies Act, 1960, and are not arbitrable under the Arbitration and Conciliation Act, 1996. The court held that such disputes must be resolved under the Cooperative Societies Act. (Paras 2-3) C) Arbitration Act - Section 9 - Interim Measures - The court held that interim measures under Section 9 can only be granted if the underlying dispute is arbitrable. Since the dispute was not arbitrable, the petition was dismissed. (Paras 1-3)
Issue of Consideration
Whether a dispute between a cooperative housing society and its members regarding redevelopment and possession of flats is arbitrable under the Arbitration and Conciliation Act, 1996, and whether the court can appoint a Court Receiver under Section 9 of the Act.
Final Decision
The petition is dismissed. No order as to costs.
Law Points
- Arbitrability of disputes under Section 9 of Arbitration and Conciliation Act
- 1996
- Disputes relating to cooperative societies are not arbitrable
- Section 91 of Maharashtra Cooperative Societies Act
- 1960 bars arbitration
- Appointment of Court Receiver in Section 9 petition
- Prima facie case
- Balance of convenience
- Irreparable loss
