Arbitration of Promoter after Deemed Conveyance
the judgment dated 4.9.2025 of the High Court of Bombay in Writ Petition No.11281 of 2025 of Shivranjan Towers Sajakari Griha Rachana Sanstha Maryadit Vs. Bhujbal Constructions and others
On 28.12.2018, the certificate for deemed conveyance for 16280. Sq.mts ut of the total area of 27800 sq.mts with the buildings thereon was granted. It was registered on 13.2.2019.
Thereafter, the respondent no.1 invoked arbitration seeking declarations in respect of the deemed conveyance.
The petitioner society filed section 16 application on the ground that the individual arbitration agreement with member cannot be construed as “existing arbitration agreement” with the society and the respondent no.1. The petitioner society was not signatory to the said agreement with the member.
The Arbitrator dismissed section 16 application on the ground that the title of the society flowed from the individual agreements and therefore, bound by the terms of the individual agreements. Moreover, the society filed counter claim on the basis of the said individual agreements.
The core controversy was whether the petitioner society is bound by the arbitration clause in the individual agreements of the members invoked by the promoter after grant of deemed of conveyance in favour of the society.
In this case, the challenge was to the order dated 14.5.2025 of the Arbitrator passed on section 16 application in arbitral proceedings.
