Important Point – Court's discretion while exercising power under Section 9 of Arbitration and Conciliation Act, 1996 is very wide.

1. Heard the learned counsel for the parties.

2. This petition is under section 9 of the Arbitration and Conciliation Act, 1996 for appointment of Court Receiver in respect of the property as described in Exhibit-A with power to take possession of flats from respondent nos.2 to 7 or their family members or any person found in possession thereof and hand over the same to the petitioner for demolition and redevelopment in accordance with the redevelopment agreement dated 25.9.2013. (Hereinafter referred to as 'said property')

3. In the present proceeding, respondent no.1 Society entered into a Redevelopment Agreement with the petitioner on 25.9.2013 for redevelopment of their property as described in Exhibit-A (hereinafter referred to as 'said Agreement'. The said agreement was duly registered with the Sub-Registrar of Assurance, Mumbai Suburban District, Bandra. As per the said agreement, the Society agreed to hand over vacant and peaceful possession of the suit premises to the petitioner on terms and conditions as stated therein. It was specifically stated in the said agreement that, in case any difference or dispute arise between the parties than the Arbitrator can be appointed as per Clause 62 of the said agreement which reads thus:

“62 In the event of any disputes, or difference arising between the parties hereto, as regards construction, the meaning and interpretation of these presents or any of the clauses hereto the right, and obligations of the parties hereto as regards construction, the meaning and interpretation of these presents or any of the clauses hereto as also the performance, failure, breach of violation of any of the terms, conditions and covenant, contained under these presents during subsistence of these presents or even thereafter the same shall be referred to the Three Arbitrators. One to be appointed each by the Society and the Developers and the Two Arbitrators shall appoint the Third Arbitrator an such arbitrator shall be in accordance with The Arbitration and Conciliation Act 1996 or statutory modification or reenactment there of for the time in force. The decision of the Arbitrator shall be final and binding on the parties hereto. The arbitrator shall have summary power including the power including the power to give interim awards and directions and Use personal knowledge. The place of Arbitrator shall be in Mumbai.”

4. Out of 18 members of respondent no.1, 13 members handed over vacant and peaceful possession of their flats to the petitioner for redevelopment. Only 5 members i.e. respondent nos.3, 4, 5, 6 and 7 failed and neglected to hand over their respective flats to the petitioner for redevelopment. Hence, the petitioner filed the present petition u/s 9 of the said Act for various reliefs.

5. The learned counsel for the petitioner submits that as per redevelopment agreement dated 25.9.2013, the respondent no.1 on behalf of their members permitted the petitioner to carry out the redevelopment of the said structure on terms and conditions as stated in the said agreement. He submits that as per the said redevelopment agreement, petitioner agreed to provide temporary alternate accommodation to the members of respondent no.1. He submits that out of 18 members, 13 members vacated their respective flats and handed over same to the petitioner. In terms of that, petitioner provided alternate accommodation and or compensation as per the redevelopment agreement dated 25.9.2013. He submits that the respondent nos.3 to 7 objected for handing over vacant possession on one or the other ground. Hence, it constrained the petitioner to file the present petition under section 9 of the said Act. He submits that though respondent nos.6 and 7 gave their Consent Declaration cum Affidavit being Exhibit' 1' and 2', page 202 and 203 of the petition, they failed and neglected to hand over the flats in their possession. He submits that after executing the said agreement, petitioner submitted copy of plans to the respo