Case Note & Summary
The High Court dismissed both petitions filed by Petitioner against Respondents -- The Petitioner sought interim measures under Section 9 of the Arbitration and Conciliation Act, 1996 to stay termination of a Development Agreement and injunction against appointing a new developer, and under Section 11 for arbitrator appointment -- The Court found the Petitioner failed to show a prima facie case for interim relief, as the termination was based on the Petitioner's inability to demonstrate financial capacity and advance the redevelopment proposal under Development Control Regulations, 1991 -- The Municipal Corporation's refusal to issue NOC post-termination further weakened the Petitioner's case -- The Court held the arbitration clause did not warrant relief given the circumstances, dismissing both petitions
Headnote
The High Court of Judicature at Bombay dismissed Commercial Arbitration Petition (L) No. 36533 of 2025 filed under Section 9 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) seeking interim measures -- The Court also dismissed Commercial Arbitration Application (L) No. 37280 of 2025 filed under Section 11 of the Arbitration Act for appointment of arbitrator -- The Petitioner-Developer, ISON Builders LLP, sought stay on termination notice dated 25 October 2025 issued by Respondent No.1-Society and injunction against appointing another developer -- The Court held that the Petitioner failed to establish a prima facie case for interim relief under Section 9 of the Arbitration Act -- The Court noted that the Development Agreement contained an arbitration clause, but the termination was based on the Petitioner's failure to demonstrate financial capacity and progress the redevelopment -- The Municipal Corporation of Greater Mumbai (MCGM) had refused to issue NOC after termination -- The Court found no merit in the Section 11 application as the disputes were not arbitrable due to the termination being valid -- The judgment was reserved on 13 January 2026 and pronounced on 23 January 2026
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Issue of Consideration: The Issue of Consideration was whether the Petitioner-Developer was entitled to interim measures under Section 9 of the Arbitration and Conciliation Act, 1996 to stay termination of the Development Agreement and whether an arbitrator should be appointed under Section 11 of the Arbitration and Conciliation Act, 1996
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Final Decision
The High Court dismissed Commercial Arbitration Petition (L) No. 36533 of 2025 and Commercial Arbitration Application (L) No. 37280 of 2025, denying interim relief and arbitrator appointment
