NEO DEVELOPERS PRIVATE LIMITED Vs. RAHUL BHARGAVA

JUDGEMENT

(1.) Leave granted.

(2.) The appellant is the developer of a project titled 'Neo Square', who entered into commercial agreements for sale of undivided, un-demarcated commercial space with the respondents who agreed to purchase such space in the project situated at Sector 109, Dwarka Expressway, Gurugram, Haryana. Separate Builder Buyer Agreement; In short 'BBA' and Memorandum of Understanding; In short 'MoU' were entered into regulating the construction, conveyance and use of the premises. As per the BBA, there was an assured return payable to the purchasers, which initially was paid and then defaulted. The project too got delayed and the respondents herein approached the Haryana Real Estate Regulatory Authority [In short 'HRERA'] for enforcement of its rights under the BBA. The HRERA passed an order which is produced as Annexure P-13. It is seen from the impugned order that the respondents had initiated execution proceedings in April 2025 for the enforcement of the order dtd. 14/8/2024 before the HRERA, which is pending.

(3.) In the meantime, the respondent is said to have issued two communications dtd. 24/2/2025 and 11/3/2025, informing that the property is proposed to be leased out. Demands were also raised for development and fit out charges. The respondents then approached the Commercial Court under Sec. 9 of the Arbitration and Conciliation Act, 1996 [(Hereinafter referred to as 'the Act of 1996')], seeking interim measures against the alienation in any manner including the leasing out of the premises. The Commercial Court found that the respondents having first approached the HRERA and obtained orders, cannot turn around and invoke the arbitration clause. An appeal filed under Sec. 37 led to the impugned order, which restrained the appellant herein from creating any third-party interests or rights, including but not limited to that of leasing out the property, till the commencement of the arbitration proceedings. The respondent was further directed to maintain status quo in relation to the respective units under the BBA/MoU, again till the commencement of the arbitration proceedings. The request for arbitration is pending before the High Court.