SWATANTER KUMAR, A.M.KHANWILKAR
Girish Mulchand Mehta – Appellant
Versus
Mahesh S. Mehta – Respondent
Certainly. Based on the provided legal document, here are the key points:
The case involves a dispute under Section 9 of the Arbitration and Conciliation Act, 1996, concerning interim measures related to redevelopment of a building owned by a cooperative society (!) (!) .
The society’s General Body had taken a conscious, long-term decision to redevelop the property and appointed a developer through a resolution supported by the majority of its members. These resolutions were not challenged by the appellants and are binding on all members, including those who oppose the redevelopment (!) (!) .
The appellants, who are members of the society, have only challenged the terms of the development agreement, not the decision to redevelop or the appointment of the developer. Their challenge is limited to the stipulations in the development agreement, which were approved by the majority and incorporated into a registered contract (!) (!) .
The appellants have been expelled from the society’s membership, which affects their right to occupy the flats. Their right to occupy is linked to their membership status, and expulsion proceedings are pending before a higher authority. If their expulsion is upheld, their cause to oppose the redevelopment diminishes further (!) (!) .
The majority of members, including those who have already vacated their flats, have acted in accordance with the development agreement, incurring expenses and shifting to alternative accommodations. The obstruction by the appellants has caused delays and financial hardship to the developer and other members (!) (!) .
The court exercised its wide discretion under Section 9 to appoint a receiver and take possession of the property, considering the need for protection, preservation, and to facilitate the redevelopment process. The order aimed to balance the interests of the developer, the majority members, and the overall progress of the project (!) (!) .
The court emphasized that the decision of the society’s General Body to redevelop was a well-considered, democratic decision, and the minority’s disapproval alone does not justify interference unless there is evidence of fraud, misrepresentation, or statutory violation (!) (!) .
The order to appoint a Court Receiver and to facilitate the redevelopment was justified by the circumstances, including the obstruction by the appellants, the expenses incurred, and the hardship faced by the majority members and the developer (!) (!) .
The appeal was dismissed, affirming that the relief granted was within the court’s jurisdiction and that the appellants’ objections did not warrant overturning the order, especially given their limited participation and the procedural context (!) (!) .
The court clarified that its observations do not prejudice the ongoing proceedings and that each case must be decided on its own merits in accordance with law (!) .
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Khanwilkar, J.
This appeal takes exception to the Judgment dated 3rd July, 2009 in Arbitration Petition
(L) No. 493/2009. The said petition was filed by the Respondent No. 1 under Section 9 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Act’ for short). The reliefs claimed in the said Petition read thus:
“a) That during pendency of arbitral proceeding between the Petitioner and the Respondent No. 1, before the Ld. Sole Arbitrator Shri L.H. Patil, this Hon’ble Court may be pleased to appoint Court Receiver High Court Bombay or any fit and proper person as Receiver of the said property i.e. plot of land bearing city survey No. 5728 final plot No. 257 of Ghatkopar T.P.S.III, R.N.Narkar Marg, Ghatkopar (E) Mumbai-400 077 and the building known as “Harini” standing thereon with all powers under order 40 Rule 1 of the Code of Civil Procedure including power to take physical possession by physically removing the Respondent Nos. 2 and 3 and their family members occupying flat No. 1 and Flat No. 3 or anybody else found occupying any part of the Building known as “Harini” and/or any part of the said property and to hand over vacant and peaceful pos
Firm Ashok Traders & anr. vs. Gurmukhdas Saluja & ors. AIR 2004 SC 1433
State of U.P. vs. Chheoki Employees Cooperative Society Ltd. AIR 1997 SC 1413
Daman Singh & ors. vs. State of Punjab AIR 1985 SC 973
Ramesh Himmatlal Shah vs. Harsukh Jadhavji Joshi AIR 1975 SC 1470
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