Disposed

Sobha Limited v. G.Ravanan

Madras HC11 Mar 2022OA/640/2021

Case brief

AI extract

What is this about?

The High Court disposed of Original Application No. 640 of 2021 and closed Arbitration Application No. 268 of 2021 in terms of a Memorandum of Compromise dated 08.03.2022 executed by the parties to settle their dispute arising from Joint Development Agreements without costs.

What did the court decide?

Original Application No. 640 of 2021 disposed of in terms of the Memorandum of Compromise; Arbitration Application No. 268 of 2021 closed.

Sobha Limited Vs G.Ravanan — Civil Procedure and Limitation | Madras HC (2022)

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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(ORDINARY ORIGINAL CIVIL JURISDICTION)

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FRIDAY, THE 11TH DAY OF MARCH 2022

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THE HON'BLE MR. JUSTICE SENTHILKUMAR RAMAMOORTHY

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O.A.No. 640 of 2021

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and Arb.Appln.No. 268 of 2021

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In the matter of Joint Development Agreement dated 10.01.2014 as pending Document Numbers 8 & 12 of 2014 between Sobha Limited and G.Ravanan.

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SOBHA LIMITED.,

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(Formerly known as SOBHA DEVELOPERS LIMITED), a company incorporated under Companies Act, 1956, Having its registered Office at Sarjapur-Marthahalli Outer Ring Road, Devarabisanahalli (Opp.Intel), Bellandur Post, Bangalore – 560 102. and its Regional Office at 'Polyhose towers', Fifth Floor, SPIC Annex Buildings, 88, Annasalai, Guindy, Chennai – 600 032. Represented by its Authorised Signatory Mr. K.R. Ravi. ... Applicant (in both applications)

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-Vs-

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G. Ravanan, Son of S.Gnanasundaram, No.26, 'Crescendo Apartments', Desika Road, Mylapore, https://hcservices.ecourts.gov.in/hcservices/ Chennai – 600 004. ... Respondent (in both applications)

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O.A.No. 640 of 2021 :-

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Original Application praying that this Hon'ble Court be pleased to an interim injunction restraining the Respondent herein from making protest against and or cancelling, the Power of Attorney dated 10.01.2014 registered as Document No.250 of 2014 in the Office of the Sub Registrar, Pallavaram and or from interfering with right of exercise of the authority by the Applicant under the aforesaid Power of Attorneys should not be given

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pending Arbitration Proceeding.

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Arb.Appln.No. 268 of 2021 :-

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Arbitration Application praying that this Hon'ble Court be pleased to issue a direction directing the Respondents to produce the Original Gift Deed dated 24.08.2016 registered as Document No.10568 of 2016, at Sub Registrar, Pallavaram and other relevant documents required for registering the sale deeds in favour of buyers of the project should not be given pending Arbitration Proceeding.

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These applications coming on this day before this Court for hearing in the presence of Mr.G.Vivekanand, Advocate for the applicant in both applications, and Mr.S.R.Rajagopal for Mr.Antony Selvam, Advocates for the respondent in both applications, and upon reading the order herein dated

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16/12/2021, and the Memorandum of Compromise signed by the applicant https://hcservices.ecourts.gov.in/hcservices/ and the respondent herein and their respective counsels and the said

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advocates for the parties hereto praying this Court to pass an order interms of Memorandum of Compromise morefully set out in the Schedule

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hereunder, It is ordered as follows :-

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That the allocation of 20 Apartments to the Respondent herein, vide Clause 3 and Clause 4 of the Allocation Agreement read with letter dated 14.06.2016 stands cancelled, and the Respondent herein, has handed over possession of the said 20 Apartments more fully set out in Annexure I along with the 10 car parking earmarked in the Sketch-III annexed hereto to the Applicant herein.

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That the Applicant and the Respondent herein, have mutually agreed that the agreement in JDA-III and JDA-IV stood mutually terminated and the Applicant herein be and is hereby discharged from all the obligations under the said JDA-III and JDA-IV.

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That the Respondent herein, towards the full and final settlement of the dues payable by the Respondent to the Applicant herein, under the Agreements have agreed to transfer to the Applicant or its nominees as the case shall be, 26 apartments out of the Apartments allocated and retained by the Respondent under the Allocation Agreement, which are morefully set

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out in the Annexure-II to this Agreement along with the 13 car parking

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https://hcservices.ecourts.gov.in/hcservices/

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earmarked in the Sketch-III annexed hereto.

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That the Respondent herein, simultaneous to execution of this Memorandum of Compromise, shall execute a power of the attorney with regard to the apartment earmarked in Annexure-II along with the respective undivided share of the lands in the Project Lands as mentioned in Annexure-II.

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That the said Power of Attorney is being executed for consideration of the amounts payable by the Respondent to the Applicant which is Agency coupled with interest hence the said Power of Attorney shall be irrevocable.

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That the Respondent herein, agree to provide the life certificate and other necessary certificates, and affidavits to the Sub Registrar Office or any other authorities, as and when required by the Applicant herein, without any delay or conditions and the said Power of Attorney shall not be cancelled.

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That the Respondent herein, paid sum of Rs.75,720/- (Rupees Seventy-Five Thousand Seven Hundred and Twenty only) vide Cheque bearing No.000290 dated 08.03.2022 drawn on HDFC Bank towards the full and final settlement based on the reconciliation of the accounts between

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the Parties herein and the Parties herein discharge the respective other Parties from all further payments and or claims.

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https://hcservices.ecourts.gov.in/hcservices/

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That the Applicant herein, shall hand over possession of the remaining apartments allotted to the Respondent herein, under the Allocation Agreement excluding the apartments forming part of the Annexure-I, Annexure-II and the apartments already conveyed to third party purchases by the Applicant in exercise of the Authority under POA-II and the apartments handed over along with the 3 car parking are more fully set out in the Annexure-III.

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That the Applicant herein, allotted 34 car parking to the Respondent herein, out of which 14 car parking is dependent and 1 car parking is independent in the First Basement (Upper) earmarked in the Sketch 1 and 18 car parking is dependent, and 1 car parking is independent in the Second Basement (Middle) earmarked in the Sketch II.

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That the Applicant herein, be and is hereby discharged from all further obligations except to the indemnity in terms of Clause 8.

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That the Applicant herein, hereby undertakes and assures that in the event of any refund is received from the department against the payment of the GST for the Respondent's share, the Applicant shall refund the said amount of GST as received to the Respondent.

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That if the Respondent herein, wants to apply for GST refund

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from the respective department by himself at his cost, the Applicant shall https://hcservices.ecourts.gov.in/hcservices/

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co-operate and assist on best endeavor basis.

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That upon requisition from the Respondent herein, the Applicant shall amend the GSTRI to pass the input tax credit to the Respondent's GST Registration Number.

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That it is made clear that unless and otherwise any refund from the department / authority towards the Respondent's account, there is no liability for the Applicant herein to refund any amounts to the Respondent herein.

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That the Applicant herein, undertakes to indemnify the Respondent herein, against all the claims, charges and costs that shall arise with regard to stamp duty and registration fees issues with regard to the Agreements and the Applicant in the event of any liability of payment of the Stamp Duty and Registration Fees on the Agreements shall pay the same and indemnify the Respondent to that extent of Stamp Duty and Registration Fees on the aforesaid Agreements alone.

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That the Respondent herein, has neither entered into any kind of agreements with third parties nor created any encumbrances with respect to the said 46 apartments, morefully set out in the Annexure I and II.

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That the Respondent herein, indemnifies the Applicant herein,

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against all claims, charges, attachments, interests and proceedings raise by https://hcservices.ecourts.gov.in/hcservices/ any third party, which affects the transferability and title of the 46

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apartments due to act or omission to act by the Respondent or any third party through him.

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That the Respondent herein, undertakes not to create any encumbrance or any third-party interest over the 46 apartments morefully set out in the Annexure I and II and confirms that there is no subsisting encumbrance or third party interest prevailing thereon.

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That the Applicant herein, shall be entitled to commence the registration pertaining to the Applicant's share and the 46 apartments forming part of Annexure I and Annexure II in execution of this MOC.

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That the Power of Attorney dated 10.01.2014 registered as Document No.250 of 2014, Book-I, in the office of the Sub Registrar, Pallavaram is coupled with interest and the Respondent shall not revoke at any point of time and the Applicant herein, shall be entitled to exercise the right, interest and authority under the said POA-I with regard to the apartments earmarked in Annexure-II along with the respective undivided share of the lands in the Project Lands morefully set out in Annexure-II.

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That the Respondent herein, agree to provide the life certificate and other necessary certificates and affidavits to the Sub Registrar Office or any other authorities, as and when required by the Applicant, without any

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delay or conditions.

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https://hcservices.ecourts.gov.in/hcservices/

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That the respondent herein, agrees unconditionally to produce the original of the Gift Deed dated 24.08.2016, registered as Document No.10568 of 2016, to the Sub Registrar, Pallavaram, to enable the Applicant to sell and register the documents for their respective share allotted in terms of this Agreement including the Applicant's Allocation morefully set out in the Annexure-I and II.

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That in the event of any reasons, (other than the default of the Applicant) that causes as restraint or difficulty for the Applicant in realizing its amounts by sale of 46 Apartments morefully set out in Annexure-I and II, the Respondent herein shall cooperate and redress such obstacle within 15 days from the date of intimation.

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That if such restraint or difficulty caused, is due to any of the reasons of non-performance of the obligations to be performed by the Respondent herein, in terms of JDA I and II and in terms of this Compromise or at the behest of his family members or if any of the representations are found to be untrue, it is considered as default by the Respondent, after the expiry of such 15 days notice.

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That in the event of Default, the Claim amount of

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Rs.12,45,38,906/- (Rupees Twelve Crore Forty-Five Lakhs Thirty Eight https://hcservices.ecourts.gov.in/hcservices/ Thousand Nine Hundred and Six Only) made by the Applicant herein, shall

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be treated as the amount payable by the Respondent to the Applicant, in

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terms of this Compromise with applicable interest.

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That the Applicant herein, be and is hereby entitled to enforce to recover such Claim amount, as amount decreed, in the terms of the Compromise.

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That the JDA-III and JDA-IV shall stand terminated and the POA pursuant to the JDA-III and JDA-IV is hereby revoked mutually between the parties hereto.

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That the Parties hereto, shall execute necessary documents and complete the formal termination.

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That the Applicant herein, shall handover the keys and the possession to the Respondent share of 58 Apartments morefully set out in ANNEXURE-IV and the 34-car park as mentioned in SKETCH I & II along with the Original documents pertaining to the Phase-II Lands simultaneous to passing of orders by the Hon'ble High Court recording this MOC and The Parties hereto, also file this MOC before TN RERA in Complaint No.274/2021.

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That the Parties hereto, hereby state the settlement between the Parties have been arrived after mutual negotiation with equal bargaining power, without any coercion or undue influence. https://hcservices.ecourts.gov.in/hcservices/

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That each of the Parties hereto, have understood the impact,

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consequences and their respective rights and liabilities under this Memorandum of Compromise and have taken legal advice while arriving at this settlement between the Parties.

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That the Parties hereto, waive, release relinquish and forfeit all the claims, against each other save those otherwise agreed in the Memorandum of Compromise and shall not initiate any proceedings except for the matter subject matter of this Memorandum of Compromise.

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That this Compromise is full and final settlement of all claims under agreements.

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That the parties hereto shall bear their respective costs subject to compliance of their respective obligations.

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That Arb.Appln.No. 268 of 2021 do stand closed.

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That there shall be no order as to costs of these applications.

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SCHEDULE

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MEMORANDUM OF COMPROMISE and ANNEXURE

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https://hcservices.ecourts.gov.in/hcservices/

22.03.2022

O.A.No. 640 of 2021 and Arb.Appln.No. 268 of 2021

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DECREE

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DATED : 11.03.2022

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THE HON'BLE MR. JUSTICE SENTHILKUMAR RAMAMOORTHY FOR APPROVAL: 25.03.2022 APPROVED ON : 29.03.2022

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https://hcservices.ecourts.gov.in/hcservices/

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 11.03.2022

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CORAM

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THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY

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O.A.No.640 of 2021 and Arb.Appln. No.268 of 2021

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In the matter of Joint Development Agreement dated 10.01.2014 as pending Document Numbers 8 & 12 of 2014 between Sobha Limited and G.Ravanan

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SOBHA LIMITED

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(Formerly known as SOBHA DEVELOPERS LIMITED), a company incorporated under Companied Act, 1956, having its registered Office at Sarjapur - Marthahalli Outer Ring Road, Devarabisanahalli (Opp. Intel), Bellandur Post, Bangalore - 560 102. and its Regional Office at 'Polyhose towers', Fifth Floor, SPIC Annex Buildings, 88, Annasalai, Guindy, Chennai - 600 032 Represented by its Authorised Signatory Mr.K.R.Ravi ... Applicant

vs.

G.Ravanan

... Respondent

https://hcservices.ecourts.gov.in/hcservices/

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PRAYER : Original Petition filed under Order XIV Rule 7 and 8 of Original Side Rules Read With Section 9 of the Arbitration and Conciliation Act, 1996 Read With Section 151 of the Code of Civil Procedure, 1906 prayed for Order:

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(a) An interim injunction restraining the respondent herein from making protest against and or cancelling, the Power of Attorney dated 10.01.2014 registered as Document No.250 f 2014 in the Office of the Sub Registrar, Pallavaram and or from interfering with right of exercise of the authority by the Applicant under the aforesaid Power of Attorneys should not be given pending Arbitration Proceedings.

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(b) To Pass such further or other order.

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For Applicant : M/s.G.Vivekanand For Respondent : Mr.S.R.Rajagopal for Mr.Antony Selvam

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https://hcservices.ecourts.gov.in/hcservices/

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O R D E R

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After orders were reserved in this application, the parties concluded a

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settlement and executed a Memorandum of Compromise. The said Memorandum of Compromise dated 08.03.2022 has been placed before the Court with a request to dispose of O.A.No.640 of 2021 in terms thereof.

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The Memorandum of Compromise has been executed by both

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parties and their respective counsel. On perusal thereof, there does not appeared to be any impediment to the disposal of O.A.No.640 of 2021 in terms thereof.

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Accordingly, O.A.No.640 of 2021 is disposed of in terms of the Memorandum of Compromise dated 08.03.2022, which shall form an integral part of the order. Consequently, Arb.Appln.No.268 of 2021 is closed. There will no order as to costs.

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Sd./- S.K.R.J., 11/03/2022

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//Certified to be true copy//

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Dated at Madras this the day of 2022.

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COURT OFFICER(O.S.)

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From 25th Day of September 2008 the Registry is issuing certified copies https://hcservices.ecourts.gov.in/hcservices/ of the Orders/Judgments/Decrees in this format.

Sobha Limited v. G.Ravanan

Case brief

What is this about?

What did the court decide?

Sobha Limited v. G.Ravanan

Case brief

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