Coimbatore: On October 12, 2026, an arbitral tribunal awarded Rs. 7.75 crore to Champion Textiles Ltd. after ruling against JMJ Housing Ltd. and its director in a dispute over a residential development project.
The verdict came from Justice T. Ravindran, a former Judge of the Madras High Court, who served as the sole arbitrator in Arb. O.P. (Com. Div.) No. 394 of 2024.
This disagreement traces back to a Joint Development Agreement (JDA) initiated on January 19, 2022, concerning land located in Pattanam village, Coimbatore district. Champion Textiles, under the leadership of Managing Director V.R.S. Natarajan, entered into this agreement with JMJ Housing, represented by Director Wilson P. Thomas.
According to the agreement, the developer was tasked to oversee residential construction, adhering strictly to the stipulated terms. It also implicated a property and development benefits-sharing framework between the two parties.
Conflicts arose later regarding adherence to the agreement, obligations regarding construction, and transactions relating to various property plots.
Champion Textiles claimed that several plots were wrongfully transferred to outsiders, contravening both the agreement and a General Power of Attorney linked to the dealings. The company also cited issues with the absence of necessary composite agreements with prospective buyers prior to the registration of certain transactions.
In defense, JMJ Housing maintained that they had undertaken significant preparatory work and incurred costs associated with the development.
Upon careful evaluation of the evidence presented by both sides, the tribunal ruled in favor of Champion Textiles on key contractual issues.
The tribunal’s award highlighted the responsibilities of the developer and the irregularities in property transfer, emphasizing violations of the contractual agreements.
The tribunal declared that the disputed transactions contradicted the contractual terms, thus ordering the annulment of the specified sale deeds.
In terms of financial compensation, the tribunal instructed JMJ Housing and its director to jointly disburse Rs. 6.75 crore to Champion Textiles, subject to an annual interest of 18% beginning March 13, 2025, until full payment is realized.
Additionally, a further sum of Rs. 1 crore, also attracting an 18% interest rate from the date of the award until full settlement, was included in the compensation package. Overall, the awarded amount totals Rs. 7.75 crore, exclusive of any interest or legal expenses. The tribunal furthermore mandated the respondents to cover the costs associated with the arbitration process.
Beyond financial directives, the award specified the cancellation of ten sale deeds tied to the contested property.
The tribunal ordered that the implicated parties must deliver vacant possession of the property outlined in Schedule A of the award to Champion Textiles within one month of the ruling.
The tribunal’s ruling reflects its findings on the breaches of the development agreement and associated transfers.
This arbitration process involved extensive scrutiny of the parties’ contractual duties, the development efforts on the site, and the legitimacy of transactions with third parties.
Champion Textiles sought not only compensation but also the cancellation of disputed transactions and possession recovery, while JMJ Housing contested the claims, advocating for case dismissal.
The award, dated October 12, 2026, raises questions about its legal enforceability and the forthcoming steps required for fulfilling its directives.
