Authority: High Court of Judicature at Bombay

Order Date: October 1, 2026 (reserved September 30, 2026)

Case Overview

  • Parties: Applicant – Zoroastrian Radih Society (charitable trust registered under the Societies Registration Act, 1860 and Bombay Public Trusts Act, 1950); Respondent – various Behramshah Shroff Building Co‑operative Housing Societies (CHS Limited) namely Building No.3 (Damavand), No.7 (Shah Barham), No.6 (Dadgar), No.9 (A & B) (Rayomand), No.4 (Hormuzd), No.2 (Meherabad), No.8 (Chaechast), and No.5 (Firozgar).
  • Nature of Proceedings: Eight Arbitration Applications (Nos. 427, 383, 384, 385, 386, 387, 390, and one listed as (L) No.24556 of 2026) filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of a sole arbitrator.
  • Background: The Trust constructed residential buildings in Behram Baug Parsi Colony, Oshiwara, Mumbai and, under a sanction dated 18 May 1999 from the Charity Commissioner, entered into individual Agreements for Sale with flat purchasers. Clause 36 of each Agreement contains an arbitration clause. The societies were later registered (2000) and the flat purchasers became members. The Trust alleges the societies have (i) failed to execute a lease deed, (ii) not paid ground‑lease rent for over two decades, (iii) defaulted on administrative, maintenance, and parking charges, and (iv) used open spaces unlawfully.
  • Monetary Claims: Invocation notice dated 4 Oct 2023 demanded Rs 56,65,800 as lease rent and Rs 3,04,923 as maintenance charges, total Rs 59,70,723. The Trust later claimed Rs 72,36,564 in the application.
  • Parallel Consumer Proceeding: An interim application (No. 5157 of 2023) was filed before the National Consumer Disputes Redressal Commission (NCDRC) on 19 Apr 2023 seeking Rs 11,75,190 (or alternatively Rs 52,56,720) plus parking and administrative charges. The Trust later undertook to withdraw this interim application.
  • Objections Raised by Respondent: (a) Pending consumer proceedings under the Consumer Protection Act, 1986; (b) The societies were not signatories to the sale agreements containing the arbitration clause.
  • Legal Precedents Cited: Supreme Court judgments in M. Hemalatha Devi v. B. Udayasri (2023), Shri Shivranjan Towers Sahakari Griha Rachana Sanstha Maryadit v. Bhujbal Constructions (2025), Karnataka High Court in Scenic Beauty Homes Private Limited v. Nag Kiran Kempanoon (2025), and Daman Singh v. State of Punjab.

Final Outcome

  • The Court accepted the applicant’s undertaking to withdraw Interim Application No. 5157 of 2023 before the NCDRC, thereby removing the objection of parallel proceedings.
  • The Court rejected the respondent’s argument that the societies, being non‑signatories, are outside the arbitration clause, holding that the societies represent the members who are parties to the original agreements.
  • Appointment: Mr. Vikramjit Garewal, Advocate, is appointed as the sole arbitrator to adjudicate all disputes arising from Clause 36 of the Agreements for Sale.
  • Procedural Directions:

a) The arbitrator’s office address and email are provided.

b) Advocates for the petitioner must forward a copy of this order to the arbitrator within one week of upload.

c) The arbitrator must issue the statutory State of Disclosure under Section 11(8) read with Section 12(1) within two weeks of receipt.

d) Parties must appear before the arbitrator on a date to be fixed, providing functional email, mobile and landline numbers for service of correspondence.

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

f) All petitions filed under Section 9 of the Act are converted into applications under Section 17 and will be dealt with by the arbitrator.

  • The order expressly states that it does not decide the merits of the claims; the arbitrator will determine liability, amounts, limitations, and defenses.

Topics: Arbitration Appointment, Cooperative Housing Dispute, Consumer Proceedings