Key Points from the Judgment

• Parties Involved: Petitioner is a developer (partnership firm). Respondent No. 1 is a cooperative housing society under Maharashtra Co-operative Societies Act, 1960. Respondents 2-6 (and heirs of original Respondent 6 as 6A-6C) are minority members occupying specific flats (18-A, 9-A, 2-A) and garage in a 48-year-old dilapidated building with 34 flats and 4 garages across two wings. (!) [4000444020001]

• Background Facts: Society lacked funds for repairs; held multiple Special General Body Meetings (SGMs) attended by majority members, appointing PMC, approving project report/tender, inviting developer bids, selecting petitioner unanimously (29/29 present, certified by Deputy Registrar), issuing letter of intent, approving/executing registered development agreement on 31.08.2012 after circulating drafts.[4000444020001][4000444020002][4000444020003]

• Development Agreement Terms: Petitioner paid Rs.50 lakhs to society; agreed to construct free flats larger than existing, pay Rs.9.21 crores total consideration, transit compensation, packing/moving charges (Rs.30,000); members to vacate within 45 days of IOD; time essence of contract; arbitration clause (mediation first, then arbitration under 1996 Act); society executed PoA in petitioner's favor.[4000444020003][4000444020004]

• Post-Agreement Steps: Petitioner obtained IOD (20.02.2013), sanctioned plans, loaded TDR FSI (spent Rs.4.47+ crores on TDR/stamp duty, Rs.6.29 crores FSI premium, architect/legal fees); offered payments, bank guarantees (Rs.3 crores each), individual flat agreements; society resolved vacate by 11.04.2013; 31/34 members agreed/signed vacate letters, handed possession; Respondents 2-6C refused.[4000444020004][4000444020005][4000444020006][4000444020007]

• Petition Filed: Under S.9 Arbitration Act for Court Receiver to take possession of holdout premises (flats/garage), hand to petitioner for demolition/redevelopment; mandatory injunction to vacate; invoked arbitration nominating arbitrator (12.04.2013).[4000444020001][4000444020008]

• Society's Position: Supports petition; 31 members vacated/suffering due to holdouts; building dilapidated needing urgent redevelopment.[4000444020011]

• Holdouts' Objections (Respondents 2-6C): No arbitration agreement with them; petitioner non-compliant (no bank guarantee, payments, proper IOD/plans); no mediation pre-arbitration; S.91 Societies Act applies (Clause 40); no S.164 notice; garages/flats area miscalculated under MOFA/DCR (demand larger areas/compensation); discrimination; managing committee biased; reliefs final, not interim.[4000444020012] (!) (!) (!) (!) [4000444020016][4000444020017]

• Petitioner's Rejoinder: Resolutions (3/4th+ majority) binding/un-challenged; complied/offered all; spent huge sums; holdouts obstruct majority; garage not part of flat FSI (separate stamp duty); transit rates higher for commercial; society waived mediation by communicating holdouts' refusal post-IOD.[4000444020009][4000444020010][4000444020018]

• Maintainability - S.91 Societies Act: Not applicable as redevelopment not society's "business"; society owns buildings but object not redevelopment; Clause 40 ineffective as Co-op Court lacks jurisdiction; parties cannot confer jurisdiction by agreement.[4000444020022][4000444020023]

• Maintainability - S.164 Societies Act: Inapplicable to S.9 petition (not a suit); doesn't touch society's business.[4000444020024]

• Relief Against Non-Signatories (S.9 Jurisdiction): Possible under S.9 against third parties claiming under party to agreement (society), affecting subject matter; members have subservient rights via membership/allotment, not independent; bound by unchallenged resolutions; notice under Rule 803E served as likely affected.[4000444020025][4000444020026][4000444020027] (!) (!) (!) (!) (!)

• Binding Nature of Resolutions: 3/4th+ majority in multiple SGMs (some attended by holdouts) approved PMC, tender, petitioner selection, drafts, agreement; circulated to all; binding on all members under Societies Act/bye-laws; minority loses individuality, speaks through society; no challenge in court.[4000444020028][4000444020031] (!)

• Minority Cannot Obstruct: 31/34 vacated; holdouts (3 flats/garages) stall project despite petitioner’s compliance/expenses/IOD/TDR; majority suffers; time essence breached; disputes (area/compensation) for arbitration/other forums, not S.9; refused to join arbitration.[4000444020032][4000444020033][4000444020034]

• Mediation Waiver: Society communicated holdouts' refusal post-IOD; waived by proceeding; holdouts can't raise post-refusal.[4000444020035]

• Appointment of Receiver Just/Convenient: Prima facie case; irreparable harm to petitioner/majority (delays, costs, dilapidation); minority gets new flats/transit pay; drastic but warranted vs. miniscule obstruction; police help if needed.[4000444020036][4000444020037] (!) (!) [4000444020038]

• Final Order: Petition allowed; Court Receiver appointed for holdout premises, take possession (break locks/police if needed), hand to petitioner for demolition/reconstruction/handover per agreement; ad-interim continues till then; no costs; 3-week stay.[4000444020039][4000444020040] (!)

• Court's Finding: Holdouts cannot stop project; resolutions bind; S.9 reliefs granted.[Finding of the Court]