Arbitration – Section 17 – Interim stay to the termination of Development Agreements
On 19.3.2014, there was Development Agreement between Heritage and Madhugiri society for redevelopment of two buildings with three floors.
On 19.3.2024, the supplementary Development Agreement dealing with hardship compensation, transit rent, shifting expenses, etc; was executed and notarized and stamped.
On 19.8.2022, Madhugiri society terminated the Agreement, SDA and related documentation.
On 26.3.2023, Madhugiri held the special general body meeting to approve the offer dated 24.3.2023 of Heritage and revoked its earlier decision to terminate the Agreement.
The dispute over entitlements and the revised proposals continued. Heritage filed section 9 petition for interlocutory relief on 13.9.2023.
On 21.1.2024, Madhugiri passed resolution terminate both the agreements again.
On 27.3.2024, the learned Arbitral Tribunal was appointed, and section 9 petition was converted in section 17 application.
On 14.10.2024, the Tribunal rejected section 17 application that prima facie the termination of the Agreements was valid, and no stay could be granted to the termination.
HELD that the parties had not reached agreement the revised proposal and on amending the Agreements pursuant to the revised proposal, the applicant is not entitled to interlocutory relief. Section 37 appeal is devoid of merits and dismissed.
Judgment dated 4.3.2025 of the High Court of Bombay in Commercial Arbitration Petition [L] No.32740 of 2024 (OS) of Heritage Lifestyles & Developers Pvt Ltd Vs. Madhugiri Cooperation Housing Society Ltd with connected matter.
