Arbitration cannot be invoked by few members of a housing society
Re-Development disputes – Arbitration invoked by 13 out of 40 Society Members invoking arbitration – Not maintainable
Development Agreement dated 29.6.2018 was executed between Dahisar Chunabhatti Panchratna Cooperative Housing Society and the Respondent no.1 Developer M/s. Gauri Associates LLP.
By the notice dated 31.3.2023 from 13 members sent to the Society and the Developer, the arbitration clause in the agreement was invoked. The Society did not give consent to said members to invoke arbitration on its behalf.
The Developer has questioned authority of 13 members to invoke arbitration vide its reply dated 18.4.2023.
HELD that individual members give up desires and identity to the collective will of the society, the individual members are not party to the arbitration agreement in the Development Agreement, the agreement itself is between the Society & the Developer, individual members are not signatories to the arbitration agreement and the fundamental requirement of section 7 of the AA is not fulfilled, individual members cannot invoke arbitration for resolving disputes arising out of agreement with the society.
