Coimbatore: In a significant development for the property market, the arbitral tribunal has ordered JMJ Housing Ltd. and its director to pay a hefty Rs. 7.75 crore in compensation to Champion Textiles Ltd. This ruling stems from a dispute related to a residential development project in Coimbatore, revealed in an arbitral award issued on October 12, 2026.
The award was issued by Justice T. Ravindran, a former Judge of the Madras High Court, serving as the sole arbitrator in the case numbered Arb. O.P. (Com. Div.) No. 394 of 2024. The case highlights ongoing tensions in real estate agreements.
The conflict has its roots in a Joint Development Agreement (JDA) executed on January 19, 2022, between Champion Textiles Ltd., represented by Managing Director V.R.S. Natarajan, and JMJ Housing Ltd., represented by its director Wilson P. Thomas.
The JDA required the developer to fulfill specific construction obligations, including sharing property and development benefits as established in the agreement. However, disputes arose regarding the execution and adherence to the terms.
Champion Textiles alleged violations, claiming that JMJ Housing transferred plots to third parties without following proper procedures. They also raised concerns about the lack of essential composite agreements with potential buyers before any registrations took place.
In response, JMJ Housing contested the allegations, asserting that they had made substantial investments in the preparatory work for the development project.
After thorough consideration of the evidence, witness testimonies, and the contractual obligations, the tribunal ruled decisively in favor of Champion Textiles, focusing on the primary contractual breaches.
The arbitrator’s findings specifically addressed the developer’s responsibilities, the legality of the plot transfers in question, and the appropriateness of the executed sale deeds.
Consequently, the tribunal declared the disputed transactions illegal and ordered the cancellation of specific sale deeds. This decision arose from the tribunal’s findings regarding the violation of contractual conditions.
In terms of financial recompense, the tribunal directed JMJ Housing Ltd. and its director to pay Rs. 6.75 crore, accruing interest at a rate of 18% per annum starting from March 13, 2025. An additional Rs. 1 crore was also awarded, which carries interest at the same rate from the award date until the complete settlement of the amount.
The total compensation awarded amounts to Rs. 7.75 crore, excluding additional costs and interest accrued. The respondents must also cover the arbitration costs.
This tribunal decision includes the cancellation of ten contested sale deeds linked to the disputed property. Additionally, the tribunal has mandated that JMJ Housing must deliver vacant possession of the said property to Champion Textiles within one month following the award.
The ruling comes as part of remedies granted to Champion Textiles following the tribunal’s clarifications on allegations of breaches related to the development agreement and associated transfers.
The arbitration proceedings illustrated the complexity of the claims made by both parties concerning their contractual duties, the scope of development work undertaken, and the legitimacy of transactions with third parties.
Champion Textiles sought to annul the illicit transactions while recovering property possession and seeking monetary damages. Conversely, the respondents aimed for dismissal of Champion’s claims.
In summation, the tribunal’s award details the arbitrator’s conclusions based on substantial evidence and reinforces contract enforcement within the real estate sector in Coimbatore. The award’s validity and execution of the directives may lead to potential legal discussions as the parties proceed post-judgment.
