Bombay High Court Grants Interim Protection in Partnership Property Dispute Under Section 9

Case Snapshot

Case Name: Vikas Babulal Khandelwal v. Shree Krishna Sai Development Corporation & Ors.

Citation / Neutral Citation: 2026:BHC-OS:18248

High Court: High Court of Judicature at Bombay

Bench: Hon'ble Mr. Justice Amit Borkar

Date of Judgment: 2nd September, 2026

Area of Law: Arbitration Law, Partnership Law, Section 9 of Arbitration and Conciliation Act, 1996, Indian Partnership Act, 1932

Judgment Headline

Court restrains sale of partnership properties in interim order under Section 9 of Arbitration Act.

The Judgment in One Line

Bombay High Court grants limited interim relief restraining transfer of seven retail shops pending arbitration, while leaving authority and valuation disputes for final determination.

Why This Judgment Matters

This judgment clarifies the scope of Section 9 of the Arbitration Act in partnership disputes. It establishes that interim protection can be granted against a non-signatory third party where necessary to preserve the subject matter of arbitration, without finally determining whether such party is bound by the arbitration agreement. The ruling also addresses the interplay between express authority conferred by an "Authority Letter" and the implied restrictions under Section 19(2)(g) of the Partnership Act. It reinforces that disputes over authority, valuation, and the validity of transactions require preservation of assets pending arbitration.

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