Summary: Mukesh Patel's attempt to include Avvad Spaces in a dispute over a canceled development deal was rejected. The court decided that Avvad isn't directly involved in the original agreement, so the arbitration will only be between Patel and the housing society.
In this case, Mukesh Patel and others filed a request to set up a panel to settle disagreements from a Development Agreement dated October 15, 2010. This deal was originally between Patel and Pant Nagar Ganesh Krupa Cooperative Housing Society, which later merged into Shubham Ambience Co-Operative Housing Society.
The Development Agreement was canceled on February 8, 2019, after a decision by the society members in December 2018. Despite this, Patel claimed the agreement was still valid because some society members continued to benefit from it.
Patel argued that Avvad Spaces LLP, a new developer appointed in November 2022, should be included in the arbitration. He believed that Avvad was part of the ongoing issues because they took over the development rights previously held by Patel.
"Patel believes Avvad should be included because they are dealing with the same development rights."
Justice Somasekhar Sundaresan looked into whether Avvad could be considered an involved party in the arbitration. The court found that Avvad had no link to the original agreement. Avvad's development deal was separate and independent.
Not Part of the Original Agreement: Avvad did not sign the original agreement. The court stressed that not signing doesn't automatically make them a part of the arbitration.
Different Agreements: The court pointed out that Avvad's agreement with the Merged Society was not connected to Patel's canceled agreement.
"An old and canceled contract cannot pull in a party to a completely different contract made years later."
The court rejected Patel's attempt to include Avvad in the arbitration. It decided that the arbitration should only be between Patel and the Merged Society. The court appointed Mr. Snehal Shah as the sole arbitrator for this purpose.
The court ordered Patel to pay Rs. 1.50 lakhs, to be shared among the original society members. This decision emphasizes the need for clear agreements and the limits of involving unrelated parties in arbitration without strong reasons.
