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2026 DAILYLAW 5654 (BOM)

DESERVE EMERALD REALTY PRIVATE LIMITED v. ADARSH KAPOL NAGAR

WP/10252/2026 · 2026-08-29

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Judgment text

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15-WP-10252-2026.DOC IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 10252 OF 2026 Deserve Emerals Realty Private Limited ..Petitioner Versus Adarsh Kapol Nagar Cooperative Housing Society Limited …Respondent Mr. Mutahhar Khan, with Gaurav Aswani, i/b Rehan Chhapra, for the Petitioner. Mr. Prashant Gawali, with Shreya Mathane, for the Respondent. CORAM: N. J. JAMADAR, J. DATE : 29th AUGUST 2026 ORAL ORDER: 1. Heard the learned for the parties. 2. The challenge in this Petition is to a judgment and order dated 21st January 2026, passed by the learned District Judge, Vasai, in MCA No. 23 of 2025, whereby the Appeal preferred by the Respondent- Defendant/Judgment Debtor against an order dated 29th April 2025 in Civil MA No 121 of 2024, thereby restraining the Respondent from creating any third party interest in the suit property until the disposal of the said Application and to maintain status quo in respect of the development and restraining it acting in contravention of Memorandum of Understanding dated 19th February 2014, the Arbitral Award dated ARS 1/3 ARUN RAMCHANDRA SANKPAL Digitally signed by ARUN RAMCHANDRA SANKPAL Date: 2026.09.02 10:16:06 +0530 15-WP-10252-2026.DOC 28th April 2017 and the Consent Terms in Arbitration Execution No. 440 of 2019, came to be allowed by setting aside the order passed by the executing Court. 3. The core controversy between the parties revolves around the question as to whether the compromise memo filed before the Lok Adalat on 25th September 2021, constitutes as an Award under the Legal Services Authorities Act, 1987. 4. The said compromise memo was filed in Arbitration RD No. 440 of 2019. By an order dated 11th December 2021, the Panel Head, Lok Adalat and CJSD, Vasai, disposed of the said execution proceeding as a withdrawal pursis (Exhibit “12”) was filed by the Petitioner-Decree Holder. The learned Judge recorded that the Decree Holder intended to withdraw the said proceeding as the decree stood fully satisfied. 5. In the backdrop of the aforesaid proceeding before the Lok Adalat and the orders passed by the Panel Head, Lok Adalat and CJSD, Vasai, on 11th December 2021, the learned District Judge was of the view that the consent terms, which were executed between the parties on 25th September 2021, were in the nature of a separate agreement executed between the parties and did not constitute an Award. 6. Evidently, the Lok Adalat Panel has not disposed of the execution proceeding on the basis of the consent terms executed between the ARS 2/3 15-WP-10252-2026.DOC parties on 25th September 2021. Instead, in view of the consent terms, the Petitioner-Decree Holder chose to withdraw the RD asserting that the decree had been fully executed. The consent terms do not have the imprimatur of the Court as the Court had not passed an order in accordance with the consent terms. 7. In the aforesaid view of the matter, the learned District Judge was justified in interfering with the order passed by the Executing Court. 8. The Petitioners shall however have the liberty to institute a suit to enforce the consent terms executed between the parties on 25th September 2021. 9. In the event such a suit is instituted, the Civil Court will have due regard to the proceedings that have taken place before the Executing Court as well as the stand of the JD in the said proceedings and Arbitration Petition (L) No. 23214 of 2024. 10. It is clarified that this Court has not entered into the merits of the matter. 11. Petition disposed. [N. J. JAMADAR, J.] ARS 3/3