Case Note & Summary
The dispute pertained to redevelopment of a cooperative housing society's property. The respondent society, owner of a plot in Andheri, Mumbai, appointed the petitioner developer for redevelopment of its three buildings comprising 58 tenements. A Development Agreement dated 3 May 2008 was executed, under which the developer agreed to provide 52% additional carpet area to society members, complete redevelopment within 24 months (extendable by 6 months), and pay monthly compensation. The Municipal Corporation granted an Intimation of Disapproval (IOD) and sanctioned plans on 17 September 2008. The developer allegedly failed to complete redevelopment within the agreed period, and disputes arose over altered building plans. The society contended that the developer submitted revised plans in 2009 and 2011 showing 'open to sky ducts' in flats of Wing A (society building), thereby reducing built-up area and transferring it to Wing B (free-sale component). Information obtained under the Right to Information Act revealed these modifications, which were not in the original 2008 plan. The society claimed that the developer constructed Wing A as per the 2008 plan without ducts but got later plans approved to shift area. The developer also allegedly breached other terms: non-payment of monthly compensation from January 2014, failure to provide amenities, and starting a bar-cum-restaurant in Wing B. The society terminated the agreement on 15 October 2015. The dispute was referred to arbitration. The sole arbitrator passed an Award on 16 August 2024, directing the developer to amend building plans to match the 2008 sanctioned plan, obtain occupation certificate for Wing A, and if not granted, regularise the ducts or pay Rs. 128.98 crores to the society. The developer was also directed to pay monthly compensation for February 2014 to October 2015 at Rs. 80 per sq. ft. per month, Rs. 45.82 lakhs for area shortfall, and property taxes, all with 8% interest. The Arbitrator declared the 2009 and 2011 plans and a Rectification Deed dated 3 November 2010 as illegal and void. The developer filed a petition under Section 34 of the Arbitration and Conciliation Act, 1996 in the Bombay High Court, seeking to set aside the Award. The petition was heard by Justice Sandeep V. Marne, with arguments concluded on 24 December 2025 and judgment pronounced on 13 January 2026. The provided text contains only the background facts and the summary of the Award; the court's reasoning and final decision are not included in the excerpt.
Issue of Consideration
COMMERCIAL ARBITRATION PETITION (L) NO.34791 OF 2024
