Minority members of a co-operative housing society cannot obstruct redevelopment approved by a majority, and costs may be imposed for frivolous opposition.

1. The Petitioner is a Developer appointed by Respondent No. 1 (Society) for redevelopment of a building known as ‘Taruvel’ situated at Dr. Karanjia Marg (Tarun Bharat Road), Near Cigarette Factory, Chakala, Andheri East, Mumbai – 400 099. The present Commercial Arbitration Petition has been filed under Section 9 of the Arbitration and Conciliation Act, 1996 The Petitioner essentially seeks reliefs against Respondent No. 2 to 11 who are all stated to be non-cooperating members of Respondent No.1 (Society) since they have refused to vacate/hand over possession of their flats pursuant to the redevelopment agreement which has been entered into between the Petitioner and Respondent No. 1 (Society) as set out below.

2. The relevant facts as set out in the Petition are as follows, viz.

i. Respondent No.1 had on 29th August 2021 in a Special General Body Meeting of the members of Respondent No. 1, confirmed the appointment of the Petitioner as the developer to undertake redevelopment of the said building. On the same day, i.e. 29th August 2021 the adjoining society, namely one Suvarna Kalash Co-operative Housing Society Ltd. had also in a Special General Body Meeting passed a resolution appointing the Petitioner as a developer for redevelopment. The appointment of the Petitioner as a developer was thereafter confirmed by the Deputy Registrar, C.S., (K-E Ward) by a letter dated 1st September 2021 addressed to Suvarna Kalash Co-operative Housing Society Ltd.

ii. Suvarna Kalash Co-operative Housing Society Ltd. and Respondent No. 1 thereafter merged as recorded in an order dated 9th March 2023 passed by the Deputy Registrar, Co-operative Societies under Sub- section (1) of Section 17 of the Maharashtra Co-operative Societies Act, 1960 read with Rule 16 of the Maharashtra Co-operative Societies Rules, 1961 .

iii. On 30th April 2023 Respondent No. 1 in a Special General Body Meeting circulated a draft of the redevelopment agreement (‘Development Agreement’) proposed to be entered into with the Petitioner. The Development Agreement was unanimously approved by the General Body of the members of Respondent No. 1 vide a resolution of the same date. Consequently, on 5th September 2023 the Development Agreement came to be executed with Respondent No.1 for redevelopment of the said building ‘Taruvel’.

iv. On 4th October 2023 a structural audit of the building Taruvel was carried out by VJTI who vide a report dated 25th October 2023 declared the building as C-1 (dilapidated) category.

v. The Petitioner then as per clause 8 of the Development Agreement on obtaining the IOD addressed a letter dated 6th March 2024 calling upon the Society members to vacate the said building which they were bound to do on or before 6th April 2024 as per the said Agreement. The Petition sets out in the below extracted table giving the details of the non cooperating members of Respondent No. 1, viz.

Mr. Bharucha submits that it was thus that the Petitioner was c