A Mohali court has issued notice of the suit as well as the stay application to VR Malwa Private Ltd (defendant) in a case relating to the closure and transfer or alienation of the property leased to H&M Hennes and Mauritz Retail Private Ltd.
The court directed both parties to maintain the status quo till July 2.
The sudden closure of VR Mall, Sector 118, on Mohali-Kharar Road, one of the biggest shopping malls in the region, has put a question mark on the future of showroom owners, employees, retailers, suppliers, and other stakeholders.
Hennes and Mauritz Retail Private Ltd (H&M) filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996, seeking an urgent interim order restraining VR Malwa Private Ltd (respondent) from alienating, transferring, or creating third-party rights in respect of the leased property.
Counsel Manish Jain, representing petitioner H&M, referred to a clause that states the lessee, who is the respondent here, does not have any right to early termination of the lease agreement except in case of default on the part of the lessee. He also submitted that the lease in this case was for 35 years from the handover date. He further referred to a clause which states that only the lessee can terminate the agreement by giving prior notice of 60 days.
The court noted that there is a lease agreement between the parties, but the respondent, on 18.04.2026, gave notice to shut down the mall citing public interest due to damage caused by an earthquake on 03.04.2026. Since material rights of the petitioner are involved in this case as he is running a business inside the premises, the respondent cannot proceed with closure, transfer, or alienation of the property without settling the matter with him.
