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Shankar Vithobai Desai and Ors vs. Gauri Associates and Anr.
Comm. Arbitration Application (L) No. 21070 of 2023 (Bom HC)
16th July, 2024
24. Arbitration — Development Agreement between Society and Firm — Dispute — Individual members of the society cannot invoke Arbitration clause — [S. 11, Arbitration and Conciliation Act, 1996].
FACTS
A Development Agreement (DA) was executed between society and the Respondent (i.e., Gauri Associates). The Applicants (thirteen individual members) are among the forty members of the society. A dispute arose between the Applicants and the Respondent. Therefore, the Applicants, issued a letter / notice to the Society and to the Respondent invoking arbitration clause in the DA. Interestingly, the Society had not authorised / consented to the Applicants on whose behalf the said notice was issued.
An application was filed before the Hon’ble Bombay High Court by the thirteen individual members of the society, on behalf of the society for the appointment of an Arbitrator.
HELD
The Hon’ble Bombay High Court observed
