Coimbatore: An arbitral tribunal has ordered JMJ Housing Ltd. and its director to collectively pay Rs. 7.75 crore to Champion Textiles Ltd. The ruling stems from a legal dispute concerning a residential development project in Coimbatore, with the award issued on October 12, 2026.
Justice T. Ravindran, a former Judge of the Madras High Court, presided over the case as the sole arbitrator in Arb. O.P. (Com. Div.) No. 394 of 2024.
The conflict originated from a Joint Development Agreement (JDA) established on January 19, 2022, regarding land in Pattanam village, Coimbatore district. Champion Textiles, represented by Managing Director V.R.S. Natarajan, entered the agreement with JMJ Housing Ltd., whose director is Wilson P. Thomas.
Under the terms of the JDA, JMJ Housing was supposed to manage the residential construction based on agreed parameters, along with sharing development benefits with Champion Textiles. However, disagreements emerged regarding fulfilling these obligations.
Champion Textiles accused JMJ Housing of unlawfully transferring certain plots to third parties, thereby breaching the JDA as well as the related General Power of Attorney. They also pointed out issues related to the absence of necessary composite agreements with potential buyers before finalising some property transactions.
The respondents countered these allegations, asserting that they had initiated significant preparatory work and incurred reasonable expenses related to the development.
In ruling on the matter, the tribunal scrutinised the submitted pleadings, relevant documents, and witness testimonies. Ultimately, Justice Ravindran sided with Champion Textiles, focusing on critical issues stemming from the JDA.
The tribunal’s award highlights key findings regarding the obligations and responsibilities of the developer, noting the irregularities in property transfers that contradicted the agreed terms.
Furthermore, the tribunal invalidated specific sale deeds, deeming them inconsistent with the contractual stipulations.
As per the award, JMJ Housing and its director must pay Champion Textiles Rs. 6.75 crore, bearing an interest of 18 percent per annum from March 13, 2025, until full payment occurs. Additionally, the tribunal decreed an extra amount of Rs. 1 crore, with interest accruing at the same rate from the date of the award.
Overall, the total compensation, amounting to Rs. 7.75 crore, excludes interest and arbitration costs. The tribunal also mandated that JMJ Housing covers the arbitration proceedings’ costs.
On top of the financial sanction, the tribunal instructed the cancellation of ten specific sale deeds linked to the disputed property, thereby reinforcing Champion Textiles’ rightful claims.
The award orders that JMJ Housing and its affiliates deliver vacant possession of the property, as detailed in Schedule A of the award, within one month of the ruling date. This directive emerges from the tribunal’s findings regarding the breach of contract and disputed property transactions.
The arbitration proceedings encompassed conflicting claims over the parties’ contractual obligations and the validity of the development work undertaken. Champion Textiles sought not only financial relief but also the reclamation of property possession.
As the case evolves, the legal status and implementation of the award’s directives will undergo separate considerations.
