Petition Under Section 9 of the Arbitration and Conciliation Act Dismissed Due to Binding Arbitral Award
In a significant ruling, the Delhi High Court has dismissed a petition filed by Mr. Bhanu Arora seeking interim reliefs under Section 9 of the Arbitration and Conciliation Act, 1996. The petition aimed to maintain the status quo regarding the first floor of a property located in Greater Kailash-I, New Delhi. The Court, presided over by Justice Harish Vaidyanathan Shankar, found the petition untenable as the rights claimed under an agreement were already negated by a binding arbitral award.
The case stemmed from disputes arising out of two agreements: a Collaboration Agreement between the respondents, Mr. Aditya Bhutani and another party, and an Agreement to Sell between Mr. Arora and Mr. Bhutani. The Collaboration Agreement, which governed the rights and obligations related to the development of the property, led to arbitration due to disputes. An arbitral award dated February 3, 2026, rejected Mr. Bhutani's claims and accepted counter-claims by the co-respondent.
Mr. Arora's petition sought to prevent any alteration or third-party encumbrances on the property during the arbitration proceedings. However, with the arbitral award rejecting the claims of Mr. Bhutani, the Court determined that the legal foundation of Mr. Arora's petition was no longer valid.
The Court emphasized that interim reliefs under Section 9 must have a valid legal and contractual basis. It stated that rights derived from an agreement that have been dismissed by an arbitral award cannot be sustained in a petition under Section 9. Furthermore, the Court clarified that reliefs against non-signatories to an arbitration agreement are not maintainable, dismissing the claims against the co-respondent.
Despite the dismissal, the Court noted that the petitioner's rights to pursue claims in the already initiated arbitral proceedings remain unaffected. The order concluded with the dismissal of the petition and any pending applications, without any order as to costs.
Bottom line:-
Section 9 of the Arbitration and Conciliation Act, 1996 - Interim reliefs cannot be granted when the underlying rights claimed under an agreement have been negatived by a binding arbitral award.
Statutory provision(s):
- Arbitration and Conciliation Act, 1996, Section 9
Bhanu Arora v. Aditya Bhutani, (Delhi) : Law Finder Doc id # 2907166
