In redevelopment disputes under Arbitration Act Section 9, society members' right to safe housing from dilapidated buildings prevails over developer's profit rights where developer caused 13-year delay, refusing interim injunction to allow new developer.

Judgment :

1) Commercial Arbitration Petition (L) No.13956 of 2026 filed under Section 9 of the Arbitration and Conciliation Act, 1996 (the Arbitration Act) seeking interim measures before commencement of the arbitral proceedings.

2) Commercial Arbitration Application (L) No.14176 of 2026 is filed under Section 11 of the Arbitration Act for appointment of Arbitrator. It is not on board. At the request of the learned counsel appearing for the Applicant, the Application is taken on board for analogous hearing with Commercial Arbitration Petition (L) No.13956 of 2026.

3) Section 9 Petition is filed under an apprehension that the Respondent-Society is likely to execute Development Agreement with the new Developer. The Society has already adopted resolution in General Body Meeting held on 10 January 2026 appointing a new developer. Further Special General Body Meeting (SGBM) was scheduled to be held on 23 April 2026 for finalising draft of Development Agreement to be executed with the new developer. The Petitioner has accordingly, filed Section 9 Petition seeking interim measures in terms of the following prayers:

a. that pending the hearing and final disposal of the arbitral proceedings and for a period of 12 weeks thereafter, this Hon'ble Court be pleased to pass an order and injunction restraining the Respondent and/or their managing committee member/sand/or their office bearer/sand/or any person/s claiming through or under them from in any manner acting upon the Resolution dated 10th January 2026 passed in SGBM being Exhibit "W' and "W-1" hereto and notice dated 9th April 2026 of the Respondent being Exhibit "X" and "X-1" hereto and also from in any manner executing any development agreement and/or any such other agreement authorizing the new developer to proceed with the new development of the said Property as described in para 4 hereinabove.

b. that pending the hearing and final disposal of the present Arbitration Petition, this Hon'ble Court be pleased to pass an order and injunction restraining the Respondent and/ or their managing committee member/ s and/ or their office bearer/ s and/ or any person/ s claiming through or under them from in any manner acting upon the Resolution dated 10th January 2026 passed in SGBM being Exhibit "W" and "W-1" hereto and notice dated 9th April 2026 of the Respondent being Exhibit "X" and "X-1" hereto and also from in any manner executing any development agreement and/ or any such other agreement authorizing the new developer to proceed with the new development of the said Property as described in para 4 hereinabove.

c. Ad-interim and interim reliefs in terms of prayer clauses (a) and (b) above.

d. For costs.

e. For such and other reliefs as the nature and circumstances of the case may require.

4) The Respondent is a Society formed by owners/occupiers of 826 residential premises, 19 shops and 24 stalls in 46 buildings constructed in the year 1957 on land belonging to Municipal Corporation of Greater Mumbai at Naigaon Cross Road, 26 Road, Scheme No. 57, Wadala, Mumbai - 400 034. Since the buildings of the proposed society were old and dilapidated, it decided to redevelop the same and accordingly invited offers from the developers. The proposed society selected Petitioner as a Developer. Accordingly, Development Agreement dated 22 January 2013 (first DA) was executed in favour of the Petit