Bombay High Court Hears Section 9 Arbitration Petitions in Redevelopment Dispute Between Co-operative Housing Society and Developer. Interim Relief Sought for Declaration of Termination and Stay of Termination Notice.

Cross arbitration petitions under Section 9 of the Arbitration and Conciliation Act, 1996 seeking interim measures in a dispute over termination of a redevelopment agreement between a co-operative housing society and a developer.

Society sought declaration that Development Agreement terminated, injunction to prevent developer from disturbing possession and interfering with right to redevelop; developer sought stay of termination notice and injunction restraining Society from acting on termination notice and from dispossessing developer.

Society alleged developer breached Development Agreement by failing to obtain approvals, execute permanent alternate accommodation agreements, pay rent from January 2026, and complete redevelopment; developer disputed termination and claimed rights under the agreement.

Earlier development arrangement with M/s. JKD Enterprises terminated on 23 January 2023; consent terms executed before High Court; possession restored to Society through Court Receiver; subsequent tender process led to appointment of current developer. No prior judicial decision in these specific petitions is mentioned in the provided text.

Whether the Society is entitled to interim relief under Section 9 of the Arbitration and Conciliation Act, 1996, including a declaration that the Development Agreement stands terminated and an injunction restraining the developer from interfering with possession and redevelopment. Whether the developer is entitled to a stay of the termination notice and an injunction restraining the Society from dispossessing the developer.

Society contended that developer failed to perform obligations under the Development Agreement, defaulted in payment of monthly rent and rehabilitation compensation from January 2026, did not cure breaches after cure notice, and that termination on 18 May 2026 was valid. Developer, in its petition, sought stay of the termination notice and restraint against dispossession, thereby disputing the termination. Learned counsel for the Society argued that developer was required to complete redevelopment within 18 months plus 6 months grace period, to obtain Occupation Certificate, and referred to Clause 8.3 of the Development Agreement.

Arbitration Petition (L) No.25010 of 2026 is filed by a Co-operative Housing Society against the developer. The Society terminated the Development Agreement, Power of Attorney and all other documents connected with the development arrangement by a notice dated 18 May 2026. Mr. Singh, learned Advocate appearing for the Petitioner Society, submitted that under the Development Agreement entered into between the Society and the developer, the developer was required to complete the redevelopment of the Society within a period of 18 months, with an additional grace period of 6 months.

On 31 January 2015, Society appointed M/s. JKD Enterprises as developer; terminated that arrangement on 23 January 2023; consent terms executed; possession taken through Court Receiver and restored to Society. Between 13 June 2023 and 11 December 2023, Society conducted fresh tender process and appointed Trilogy Infra Private Limited; executed Development Agreement on 25 November 2023 and Power of Attorney on 11 December 2023. Society issued cure notice calling upon developer to cure breaches; developer did not cure. Between 2 May 2026 and 18 May 2026, developer invoked arbitration and sought restraint. Society terminated development documents by notice dated 18 May 2026, informed authorities and issued public notices from 22 May 2026 onwards. Society filed ARBPL/25010/2026 under Section 9; developer filed CARBPL/23586/2026 seeking stay of termination. No final order available in provided text.

• Arbitration and Conciliation Act, 1996: Section 9
• Maharashtra Co-operative Societies Act, 1960: