Developers must fulfill obligations under redevelopment agreements; failure enables societies to terminate contracts and seek alternate developers.

JUDGMENT:-

1 Two cross petitions in form of Arbitration Petitions filed u/s.9 of the Arbitration and Conciliation Act , 1996 are placed for consideration.

Commercial Arbitration Petition (L) No. 6410/2023 is filed by Meeti Developers Pvt. Ltd (hereinafter referred to as ‘Meeti’) against New Kamal Kunj Housing Co-op Society Limited (hereinafter referred to as ‘Kamal Kunj’) seeking the following substantive reliefs :-

(a) Pending the commencement, hearing and final disposal of the Arbitration proceedings and at any time after the making of the Arbitral award but before it is enforced in accordance with Section 36 of the Arbitration and Conciliation Act , 1996, this Hon’ble Court be pleased to pass an order of injunction restraining the respondent from taking any actions in pursuance of the purported Termination Notice, which affected the Petitioner’s rights under the Development Agreement dated 09.08.2006 (Exhibit A hereto), Addendum Development Agreement dated 18.03.2017 (Exhibit C hereto) and Power of Attorney dated 09.08.2006 (Exhibit B hereto) and Power of Attorney dated 31.10.2015 (Exhibit D hereto);

(b) Pending the commencement, hearing and final disposal of the arbitration proceedings and any time after the making of the arbitral award but before it is enforced in accordance with Section 36 of the Arbitration and Conciliation Act , 1996, this Hon’ble Court be pleased to pass an order of injunction restraining the Respondent from taking any steps in furtherance of or acting upon the purported Termination Notice dated 24.02.2023 (Exhibit R hereto)

(c) Pending the commencement, hearing and final disposal of the arbitration proceedings at any time time after the making of the arbitral award but before it is enforced in accordance with Section 36 of the Arbitration and Conciliation Act , 1996, this Hon’ble Court be pleased to stay the effect, implementation and operation of the purported Termination Notice dated 24.02.2023 (Exhibit R hereto); An order of injunction is also sought restraining the respondent from appointing a new developer in respect of the property or part thereof.

Arbitration Petition (L) No. 12837/2023 is the counter petition, filed by Kamalkunj Society against developer and it seek distinct reliefs, the primary one as under:-

(a) That pending the commencement and culmination of the Arbitral proceedings between the petitioner and the respondent and till the Award becomes executable, this Hon’ble Court be pleased to restrain the respondent from developing, constructing the said suit property, i.e. plot of land bearing CTS No. F/443/A1, admeasuring 3,259.80 sq.mtrs, situate lying and being on Plot No. 417-A, Village Bandra, Taluka Andheri Corner of 15th and 33rd Road, TPS III, Bandra (West), Mumbai 400050.

(b) That pending the commencement and culmination of the Arbitral proceedings between the petitioner and the respondent and till the Award becomes executable, this Hon’ble Court be pleased to pass an order and direct the respondents to deposit the outstanding due of monthly compensation amounting to Rs.16,30,61,262/- (Rupees Sixteen Crore Thirty Lakhs Sixty One Thousand Two hundred sixty two only) calculated till termination notice i.e. 24th February 2023 along with interest @ 18@ p.a. till actual realization more particularly mentioned in the particulars of claim at Exhibit-”X” as and by way of monthly rent due to the Petitioner.

(c) That pending the commencement and culmination of the Arbitral proceedings between the petitioner and the respondent and till the Award becomes executable, this Hon’ble Court be pleased to pass an order and direct the respondents to deposit a sum of Rs.6,12,62,584/- (Rupees Six Crore Twelve lakhs Sixty Two Thousand Five hundred eight four only) as and by way of outstanding property tax for the open land as assessed by MCGM.

(d) That pending the commencement and cul