Bombay High Court, Ordinary Original Civil Jurisdiction (Somasekhar Sundaresan J.), Commercial Arbitration Petition No. 224 of 2024, pronounced November 21, 2025 — Post-award Section 9 petition; interplay with termination of development agreement. Pant Nagar Ashwamegh Co-operative Housing Society Ltd. filed a Section 9 petition under the Arbitration and Conciliation Act, 1996 seeking, pending execution of a consent Arbitral Award dated August 2, 2021 (directing compliance with Consent Terms dated February 18, 2020 for redevelopment of the Society's property at Pant Nagar, Ghatkopar), payment of Rs.1.68 Crores (including Rs.1.43 Crores towards arrears of rent and brokerage with 18% interest) and return of the Development Documentation. The Society had resolved on September 18, 2021 to terminate the Development Documentation and issued a Termination Notice on October 2, 2021. Held: (i) the Termination Notice cannot be in aid of execution of the Arbitral Award; the reliefs of return of documentation and non-interference run counter to the Award — which entails completion within the same relationship — and disclose a fresh cause of action outside the framework of this Petition; (ii) acceptance of Rs.1.40 Crores paid without prejudice during the hearing prima facie dilutes the termination stance, but the Society is not estopped from terminating; (iii) given unpaid MCGM property taxes (warrant of attachment August 6, 2024; auction threat December 3, 2024) and the ECL/Beacon security interest (claim Rs.429.04 Crores; symbolic possession notice June 18, 2025 under Section 13(4) SARFAESI Act; Securitisation Application No.404 of 2025 pending before the DRT), the equitable Section 9 jurisdiction cannot be blind to the situation; rather than rejecting the Petition as technically misconceived, the Court issued directions: Developer to clear MCGM dues within four weeks; outstanding compensation of Rs.3,07,19,160/- (as of December 31, 2024) payable in three equal instalments by January 31, 2026 if the Society confirms continuation of redevelopment, failing which Rs.1.40 Crores to be adjusted against pre-termination dues; MHADA NOC by December 31, 2025; monthly compensation from January 1, 2026 payable before the 15th of each month, delay attracting 18% per annum interest; bar chart (Exhibit 1, affidavit dated March 3, 2025) to operate with commencement shifted to January 1, 2026; transit rent/compensation claims post-termination preserved. Petition finally disposed of, entirely without prejudice to the Society's right to initiate fresh arbitration and fresh Section 9 proceedings.
