Mohali Court Bars Sale of Kharar's VR Punjab Mall Land in H&M Disputeਮੋਹਾਲੀ ਅਦਾਲਤ ਵੱਲੋਂ ਖਰੜ ਦੇ ਵੀਆਰ ਪੰਜਾਬ ਮਾਲ ਦੀ ਜ਼ਮੀਨ ਦੀ ਵਿਕਰੀ 'ਤੇ ਰੋਕ, ਐੱਚ ਐਂਡ ਐੱਮ ਨਾਲ ਵਿਵਾਦ

A Mohali court has barred the management of the VR Punjab mall in Kharar from selling, transferring, redeveloping or creating any third-party rights over the 21.61-acre property alongside NH-21 until arbitration proceedings are decided, according to reports on Wednesday, October 7. The order follows a suit by fashion retailer H&M over the mall's sudden closure.

What did the court order?

The court restrained the mall's management from selling, transferring, redeveloping or creating third-party rights on the 21.61-acre site. It also directed the petitioner, Hennes and Mauritz Retail, to approach arbitration in New Delhi within the stipulated time.

H&M had sought interim protection under Section 9 of the Arbitration Act, which lets a party ask a court for interim measures to protect its interests while arbitration is pending.

Why was the mall closed?

The mall, earlier known as North Country mall, was suddenly shut on April 20 this year, leaving several brand outlets, employees and stakeholders in the lurch. The management said the shopping hub was unsafe for structural reasons after an earthquake on April 3, and closed it fully a few days later.

What is H&M's case?

On June 11, a Mohali court issued notice on H&M's suit and stay application to VR Malwa Private Ltd, the defendant, in a case over the closure and the possible transfer of the leased property. The court had asked both sides to maintain status quo until July 2.

H&M's counsel, Manish Jain, pointed to a lease clause that, he said, does not let the lessee end the agreement early unless the lessee defaults. He also said the lease was for 35 years from handover.

What happens next?

The restraint stays until the arbitration proceedings in New Delhi run their course. The reports do not say when the arbitration will begin, and they carry no response from the mall's management to the order.

Who is barred from selling the VR Punjab mall land?

The mall's management, which a Mohali court has restrained from selling, transferring, redeveloping or creating third-party rights on the 21.61-acre property.

Why did H&M go to court over the Kharar mall?

H&M says its 35-year lease does not allow the lessee to end it early except on the tenant's default, and it challenged the mall's closure and any transfer of the property.

Where is the VR Punjab mall?

In Kharar, Punjab, alongside NH-21. It was earlier called North Country mall.