Interim Relief & Development Agreement Terminated by Society

The respondent society is formed by the owners / occupiers of 826 residential flats, 19 shops and 24 stalls in 46 buildings constructed in 1957 on the land of Municipal Corporation of Greater Mumbai at Naigaon, Wadala, Mumbai.

The petitioner was appointed as Developer vide Development Agreement dated 22.1.2013.

The petitioner filed sections 9 and 11 petitions in the background of resolution of the respondent – society to appoint a new Developer.

In my view, therefore, if the stakes of the rival parties are weighed, it is clear that the stakes of the society members in respect of redevelopment project are way higher than as compared to the one for the Petitioner. If the interim measures are granted in Petitioner’s favour, the same would result in redevelopment project being delayed indefinitely. This would endanger the lives of the 826 members, who are residing in the buildings constructed in the year 1957. The members are waiting for safer, bigger and better homes for the last 13 long years and their wait cannot continue indefinitely. On the other hand, if interim measures are refused, the Petitioner may only lose opportunity of earning profits in the project. In case, Petitioner succeeds in its claims, it can be adequately compensated while passing the arbitral Award.

The project also appears to be of substantially large magnitude as the same is being executed on land admeasuring 40,520.18 sq. mtrs. comprising of 46 buildings with 826 residential premises, 19 shops and 24 stalls in 46 buildings. In my view, therefore, it would not be appropriate to make interim measures in favour of the Petitioner. All the three parameters of prima facie case, irreparable loss, balance of convenience are against the Petitioner and in favour of the Respondent Society. In my view therefore, no case is made out for grant of interim measures in favour of the Petitioner before commencement of the arbitral proceedings.

Judgment dated 24.4.2026 of the High Court of Bombay in Commercial Arbitration Petition (L) No.13956 of 2026 with Commercial Arbitration Application (L) No.14176 of 2026 of M/s. Pioneer Constructions  vs.   Sahakarnagar Cooperative Housing Society Ltd.