Case Note & Summary
The matter pertained to a commercial arbitration petition filed by the developer, Wadhwa Estates and Developers (India) Private Limited, against respondent no. 1 society and respondent nos. 2 to 11, who were dissenting members. The dispute arose from a redevelopment project of Moon Craft Apartments Cooperative Housing Society Limited at Plot No.1485/1487, Shirley Rajan Road, Off Carter Road, Bandra (West), Mumbai 400 050. The society was formed around 1972, and the building was constructed in 1975, consisting of 38 residential flats and 7 garages, occupied by 36 members. In December 2021, the society resolved to redevelop the building, which was then about 49 years old. In a Special General Body Meeting on 5 December 2021, a unanimous resolution for redevelopment was passed. Subsequently, Palash PMC LLP was appointed as Project Management Consultant in a meeting on 4 September 2022. The petitioner was appointed as the developer in a meeting on 21 May 2023, and a No Objection Certificate was issued by the Deputy Registrar of Cooperative Societies on 8 June 2023. In meetings on 18 August 2024 and 26 January 2025, the majority members approved the final draft of the Development Agreement and authorized its execution. Accordingly, on 31 March 2025, the petitioner, respondent no.1 society, and 22 consenting members executed and registered the Development Agreement. The agreement imposed obligations on the developer, including procuring MDP IOD from BMC within 9 months plus 2 months grace period, and on the members to submit Consenting Member Declarations. In case of default, the developer was to take legal steps against dissenting members. The petitioner obtained MDP IOD on 5 March 2026 and forwarded it to the society on 7 March 2026. The society informed all members by email on 6 March 2026 to execute declarations. By 24 March 2026, 32 of 38 members had submitted declarations, but respondent nos. 2 to 11 failed to submit their declarations or vacate their flats despite requests. The petitioner therefore sought interim directions under Section 9 of the Arbitration and Conciliation Act, 1996, pending constitution of an arbitral tribunal: (a) directing respondent nos. 2 to 11 to execute Consenting Member Declarations; (b) directing them to vacate their flats after Full IOD and notice; and (c) alternatively, appointing a Court Receiver under Order XL Rule 1 of the Code of Civil Procedure, 1908. The petition was heard and reserved for judgment on 11 June 2026, and pronounced on 18 June 2026. The provided judgment excerpt ends after reciting the facts and the reliefs sought, containing no further analysis, reasoning, or final order.
Issue of Consideration
COMM ARBITRATION PETITION (L) NO.13424 OF 2026
