Court Can Pass An Order Of Interim Measures Under Section 9 Of The A&C Act Against A Third Party: Reiterates Bombay High Court

[14 June 2022] The Bombay High Court has reiterated that the Court is free to pass an order under Section 9 of the Arbitration and Conciliation Act, 1996 (A&C Act) to grant interim measures of protection against a third party who is impleaded in the petition filed under Section 9.
The Single Bench of Justice G.S. Kulkarni held that the minority members of a Society cannot act against the will of the majority members of the Society and obstruct the redevelopment work in the Society.
The Court held that it is a settled position in law that the minority members of the Society cannot act against the will of the majority members of the Society and obstruct the redevelopment work in the Society. The Court observed that a Division Bench of the Bombay High Court in the case of Girish Mulchand Mehta versus Mahesh S. Mehta (2009) had held that though jurisdiction under Section 9 of the A&C Act can be invoked only by a party to the arbitration agreement, however, the Court is free to pass an order of interim measure against a third party who is impleaded in the petition filed under Section 9 of the A&C Act.
The Court noted that the Division Bench had held that the fact that an order would affect the person who is not a party to the arbitration agreement or the arbitral proceedings, would not affect the jurisdiction of the Court under Section 9 of the A&C Act to pass interim orders. The Court noted that the Division Bench had ruled that once a person becomes a member of a co-operative society, he loses his individuality, and he has no independent rights except those given to him by the statute and the bye – laws.
The Court further observed that the Bombay High Court in the case of M/s. Calvin Properties and Housing versus Green Fields Cooperative Housing Society Ltd. (2013) had ruled that the minority members cannot act contrary to the resolution passed by the general body of the society and that they are bound to follow the resolution passed by the majority members of the society for redevelopment work.