Mumbai, March 5: Holding the redevelopment agreement between members of Andheri-based Taruvel Co-operative Housing Society and the developer as valid, the city civil court, Dindoshi, refused to adjudicate the dispute but instead referred the case for arbitration.
Redevelopment dispute in Andheri
The society, located in Chakala, Andheri (East), has 84 members owning 118 flats and had undertaken redevelopment. Members signed a redevelopment agreement with developer DEM Homes LLP in September 2023. The dispute arose when some members refused to vacate the premises, stalling the project.
The developer had earlier sought intervention of the High Court. Meanwhile, the dissenting members approached the city civil court, Dindoshi, in February 2024, challenging the redevelopment agreement.
High Court direction to vacate premises
In July 2024, the High Court directed the members to vacate the premises and hand over possession of the property to the developer for redevelopment. Subsequently, the developer, through lawyer Jay Vakil, urged the court to refer the dispute to arbitration.
Members challenge agreement
The plaintiffs opposing the redevelopment claimed they were not party to the agreement and argued that its clauses were not binding on them. They also sought a permanent restraint on the society and developer from implementing the agreement.
It was argued that the decision of the managing committee is binding on all members of the society. However, a few members objected to the redevelopment and approached the court seeking termination of the agreement.
The developer contended that the building had already been demolished and therefore the plea to terminate the agreement had become infructuous.
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Court refers dispute to arbitration
After hearing both sides, the court observed that the plaintiffs had prima facie failed to show that the development agreement was invalid or non-existent. Referring to the arbitration clause in the agreement, the court held that the dispute falls within a valid arbitration agreement and must be referred to an arbitrator.
Accordingly, the court referred the dispute between the society members and the developer to arbitration for resolution of their differences.
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