BHOOMIPUJAN PRIME BUILDERS LLP Vs. AL MASINA ENTERPRISES

JUDGEMENT

(1.) This is a petition filed under Sec. 9 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) seeking interim measures before commencement of the arbitral proceedings. By way of present Petition, Petitioners seek stay on the implementation of registered Development Agreement (DA) dtd. 5/1/2026 executed by Respondent No.1 in favour of new developer (Respondent No.6) as well as stay on termination notice dtd. 9/2/2026. The Petitioners have also sought appointment of court receiver in respect of the subject building.

(2.) Masina Building comprising of A, B, and C wings, situated at 68/70, Mirza Ghalib Marg (Clare Road), bearing Cadastral Survey No.240 of Byculla Division, Mumbai, admeasuring about 1123 sq. mtrs. is the 'subject property'. Al-Masina Enterprises (Respondent No.1) is a proprietary concern of Mohd. Rasul Mirza Hussain Ismaili, who is the owner of the subject property. Respondent Nos.2 to 5 are the children of the proprietor, Mohd. Rasul Mirza Hussain Ismaili. Mr. Mohd. Rasul Mirza Hussain Ismaili issued power of Attorney dtd. 9/3/2015, appointing his son-Respondent No.2 to deal with the subject property.

(3.) Petitioners are engaged in business inter alia of construction and development of properties. In the year 2021, Respondent No.2 approached the Petitioners with the proposal for redevelopment of the subject property. Accordingly, a Memorandum of Understanding dtd. 14/10/2021 was executed between Respondent No.1 and Petitioner No.2, under which Respondent No.1 agreed to grant development rights over the subject property to Petitioner No.2 on monetary consideration of Rs.1.89 crores in addition to 15% constructed area. According to the Petitioners, they started taking steps for mutation of name of Respondent No.1 in respect of the subject property. Thereafter, Agreement for Sale dtd. 9/9/2022 was executed between Petitioner No.1 and Respondent No.1, under which subject property was agreed to be sold for total consideration of Rs.5.40 crores. Respondent No.1 also executed specific Power of Attorney dtd. 9/9/2022 in favour of partners of Petitioner No.1. Side letter dtd. 9/9/2022 was executed in favour of Respondent No.1 under which Petitioner No.1 agreed to deal with disputes relating to the subject property.