The main legal point established in the judgment is the court's authority to grant interim measures under Section 9 of the Arbitration and Conciliation Act, 1996, based on a strong prima facie case in favor of the petitioner and the respondent's failure to fulfill its obligations under the development agreement.

JUDGEMENT :

1. The present proceeding is another case of a co-operative housing society having 40 members who are literally on the street. Their building being demolished in January 2015, who are at the mercy of the respondent-developer and who are suffering from the year 2011 that is since the time 39 members vacated their respective tenements.

2. This is a petition filed under Section 9 of the Arbitration and Conciliation Act, 1996 (for short, “the Act”) whereby the petitioner/a co-operative society (for short, “the society”) is before the court praying for the following interim measures pending the arbitral proceedings.:-

“(a) pending the hearing and final disposal of the arbitration proceedings, this Hon'ble Court restrain the Respondent, or its agents, servants or any person claiming through or under it from holding itself out as the developer of the subject property or from purporting to transfer, sell, encumber or create any third party rights or interests of any nature whatsoever or in any manner in the subject property;

(b) pending the hearing and final disposal of the arbitration proceedings, this Hon'ble Court direct the Respondent, or its agents, servants or any person claiming through or under it to remove all its men, materials, and construction, including any signage or fencing/ barricades, and materials at site if any from the subject property and restrain the Respondent or its agents, servants or any person claiming through or under it from entering upon or interfering with the possession of the Petitioner or its development manager or their respective agents or in any manner from obstructing the Petitioner from developing the said property, in any manner what so ever;

(c) pending the hearing and final disposal of the arbitration proceedings, this Hon'ble Court appoint the Court Receiver with such powers under Order 40 Rule 1 of the Code of Civil Procedure, 1908 as may be necessary to remove the Respondent and all its men, materials, and construction, including any spinage or fencing / barricades, from the subject property;

(d) pending the hearing and final disposal of the arbitration proceedings, this Hon'ble Court direct the Respondent, or its agents, servants or any person claiming through or under it from obstructing or interfering with the redevelopment of the property by the Petitioner or any person appointed by it in any any manner whatsoever;

(e) pending the hearing and final disposal of the Petitioner and Award, the Respondent be directed to hand over all the Original documents, title, permission and all deeds and documents, receipts as regard to the said redevelopment project to the Petitioner and also direct the Respondent to provide NOC' and or no objection for appointment of another Architect, engineer, professional etc. To ensure undisturbed continuous development of the said Property;

(f) pending the hearing and final disposal of the arbitration proceedings, this Hon'ble Court direct the Respondent to pay the Petitioner and in the alternative, to deposit in this Hon'ble Court, the unpaid amounts owed and payable to the Petitioner amounting to Rs. 5,10,00,000/- as set out in Exhibit F&U.

(g) ad-interim reliefs in terms of prayers (a) to (e) above.”

3. The relevant facts are required to be noted:- The society is a lessee of a plot admeasuring 671.97 sq. mtrs. being Survey No. 229 and 267, CTS No.12 (pt) situated at Nehru Nagar Layout, Kurla, Mumbai. The 40 members of the society belong to the low income group and were beneficiaries of a welfare scheme of the Maharashtra Housing and Area Development Authority (MHADA) in relation to allotment of tenements in building no.60, which came to be constructed by MHADA.

4. In the year 1967, the building in question was constructed by MHADA. As the years passed by, it became old and dilapidated. The society decided that there was no alternative but to redevelop the building which is by demolishing the existing building and constructing a new building and for which a d