Authority: High Court of Judicature at Bombay

Order Date: October 1, 2026

Case Overview

  • Applicant: The Zoroastrian Radih Society, a charitable trust registered under the Societies Registration Act, 1860 and the Bombay Public Trusts Act, 1950, owning property at Behram Baug Parsi Colony, Oshiwara, Mumbai.
  • Respondents: Various cooperative housing societies – Behramshah Shroff Building No.3 (Damavand) CHS Ltd, No.4 (Hormuzd) CHS Ltd, No.5 (Firozgar) CHS Ltd, No.6 (Dadgar) CHS Ltd, No.7 (Shah Barham) CHS Ltd, No.8 (Chaechast) CHS Ltd, No.9 (Rayomand) CHS Ltd, and No.2 (Meherabad) CHS Ltd.
  • Eight arbitration applications (Nos. 427, 383, 384, 385, 386, 387, 390, and one L‑application) were filed, all sharing substantially common facts; the lead matter is Application No. 427.
  • Dispute arises from individual Agreements for Sale (executed between the Trust and flat purchasers) containing Clause 36 arbitration clause. The Trust seeks recovery of ground lease rent, administrative/maintenance charges, parking charges, and related dues.
  • Key monetary claims: Rs 56,65,800 in lease rent, Rs 3,04,923 in maintenance charges, total Rs 59,70,723; later claim of Rs 72,36,564.
  • Background: Sanction to construct and sell flats granted by Charity Commissioner on 18 May 1999; Respondent society registered in 2000. Respondent allegedly failed to execute lease deed and has not paid ground lease rent for over two decades.
  • The Trust invoked arbitration on 4 Oct 2023, nominating Advocate Mr. Aksh Doctor as sole arbitrator. Respondent argued it was not a signatory to the sale agreements and that a pending consumer case before NCDRC (Interim Application No. 5157 of 2023, filed 19 Apr 2023) barred arbitration.
  • Applicant, through Advocate Mr. Cherag Balsara, undertook to withdraw the interim application before the NCDRC, ensuring no parallel proceedings.
  • The Court examined the objections, relying on Supreme Court judgments (M. Hemalatha Devi, Shri Shivranjan Towers) and held that the undertaking removes the parallel‑proceedings concern and that the society’s non‑signatory status does not preclude enforcement of the arbitration clause.

Final Outcome

  • The Court allowed all eight arbitration applications and appointed Mr. Vikramjit Garewal, Advocate, as the sole arbitrator to adjudicate disputes arising under Clause 36.
  • The applicant’s undertaking to withdraw Interim Application No. 5157 of 2023 before the NCDRC is accepted and binding.
  • Procedural directions:

a) Arbitrator to be contacted by parties within one week of order upload.

b) Arbitrator to issue statutory State of Disclosure under Section 11(8) & Section 12(1) within two weeks.

c) Parties to appear before arbitrator for scheduling pleadings, hearings, and to provide functional email and contact numbers.

d) Arbitral costs and fees to be borne equally by the parties, subject to final award.

e) Pending petitions under Section 9 of the Act are converted to applications under Section 17 for arbitration.

  • The order does not decide merits of the monetary claims; those will be determined by the arbitral tribunal.

Topics: Arbitration, Cooperative Housing Dispute