Section 9 interim relief can bind non-signatory co-operative society members when needed to protect redevelopment and arbitral subject matter.

Section 9 of the Arbitration and Conciliation Act, 1996 can support interim relief against co-operative society members who are not signatories to the arbitration agreement where their rights are traceable to the society and the relief is needed to protect the subject matter of arbitration. The court may extend interim protection to persons affected by the proposed measure, including those claiming under a party, if the underlying resolutions or arrangements remain unchallenged. The court's wide power to grant just and convenient interim measures also covers appointment of a Court Receiver and delivery of possession to a developer where redevelopment is being obstructed and the arbitral remedy would otherwise be frustrated.

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Issues: (i) Whether a court exercising power under section 9 of the Arbitration and Conciliation Act, 1996 could grant interim protection against members of a co-operative society who were not signatories to the arbitration agreement. (ii) Whether, on the facts, appointment of a Court Receiver with authority to take possession of the entire building and hand it over to the developer was justified as an interim measure.

Issue (i): Whether a court exercising power under section 9 of the Arbitration and Conciliation Act, 1996 could grant interim protection against members of a co-operative society who were not signatories to the arbitration agreement.

Analysis: Section 9 confers jurisdiction only on a party to an arbitration agreement, but the court is not confined to making orders only against parties to the arbitration agreement. The provision enables interim measures of protection to preserve the subject matter of arbitration and may operate against persons who are affected by the relief, including those claiming under a party. Members of a co-operative society hold and occupy flats through the society and are bound by valid resolutions of the general body unless set aside by a competent forum. Since the appellants' rights in the flats were traceable to the society and the resolutions for redevelopment and appointment of the developer remained unchallenged, they could not resist the section 9 relief on the ground of being non-signatories.

Conclusion: The section 9 relief was maintainable against the appellants, and the objection based on absence of privity with the arbitration agreement failed.

Issue (ii): Whether, on the facts, appointment of a Court Receiver with authority to take possession of the entire building and hand it over to the developer was justified as an interim measure.

Analysis: The redevelopment proposal had been approved by the overwhelming majority of members, the developer had acted upon the agreement, substantial expenditure had been incurred, and ten out of twelve members had already vacated their flats. The appellants alone were obstructing implementation, causing delay and recurring loss. In those circumstances, the court's wide power under section 9 to grant interim measures that are just and convenient extended to appointing a receiver and directing delivery of possession so that the redevelopment could proceed and the arbitral remedy would not be frustrated.

Conclusion: The order appointing the Court Receiver and directing handing over of vacant possession to the developer was warranted.

Final Conclusion: The appellate challenge failed, and the interim order sustaining redevelopment and possession delivery was affirmed.

Ratio Decidendi: Under section 9 of the Arbitration and Conciliation Act, 1996, a court may grant interim measures against persons who are not signatories to the arbitration agreement if they claim through a party and the relief is necessary to protect the subject matter of arbitration, provided the measure is just and convenient.

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