Coimbatore: In a landmark ruling, an arbitral tribunal has ordered JMJ Housing Ltd. and its director to pay Champion Textiles Ltd. Rs. 7.75 crore in damages. This decision stems from a dispute regarding a residential development project in Coimbatore, as per the tribunal’s order dated October 12, 2026.
The ruling came from Justice T. Ravindran, a former Madras High Court judge, who serve as the sole arbitrator in the case Arb. O.P. (Com. Div.) No. 394 of 2024.
The contention arose over land in Pattanam village, Coimbatore district, linked to a Joint Development Agreement (JDA) initiated on January 19, 2022.
Champion Textiles, under the stewardship of Managing Director V.R.S. Natarajan, entered into the agreement with JMJ Housing, whose director is Wilson P. Thomas.
According to the terms of the JDA, the developer was obligated to manage residential construction as specified in their agreement. Both parties had agreed to share the environmental and development benefits derived from the property.
However, disagreements surfaced regarding the implementation of this agreement, including construction responsibilities and transactions related to various plots within the property.
Champion Textiles accused JMJ Housing of transferring certain plots to third parties, thereby breaching the agreed contract and the General Power of Attorney. Concerns arose regarding the lack of necessary composite agreements before completing property transactions.
Conversely, the respondents countered these claims, asserting that they had invested significant resources into advancing the development project.
After reviewing extensive evidence, witness testimonies, and pleadings presented by both sides, the arbitrator sided with Champion Textiles on the vital contractual issues.
The award highlighted the developer’s failure to adhere to contractual obligations and the contested property transfers. It also expressed concerns surrounding the execution and registration of various sale deeds.
In response to these findings, the tribunal identified the transactions in question as inconsistent with the stipulated contractual guidelines and ordered their cancellation.
Champion Textiles’ compensation consists of two principal amounts totaling Rs. 7.75 crore. The tribunal mandated that JMJ Housing Ltd. and its director pay Rs. 6.75 crore with an interest rate of 18% per annum beginning March 13, 2025, until full settlement. An additional Rs. 1 crore was awarded, accruing interest at the same rate from the award date until payment is completed.
The tribunal also instructed the cancellation of ten specific sale deeds related to the disputed properties.
Furthermore, it directed that the respondents must restore vacant possession of the land detailed in Schedule A of the award to Champion Textiles within a month from the ruling date.
This directive represents a significant step towards rectifying the breaches identified in the development agreement and the questioned transfers.
The arbitration proceedings encapsulated competing claims concerning the contractual obligations, the extent of development work done on the property, and the legitimacy of third-party transactions.
Champion Textiles sought not just monetary compensation but also the cancellation of key transactions and reclamation of property possession. In contrast, JMJ Housing contested the claims, aiming for the dismissal of the proceedings.
The award meticulously outlines the arbitrator’s evaluation of the evidence and the pertinent contractual provisions regarding the development agreement.
While the award is dated October 12, 2026, its legal validation and execution will present separate challenges distinguishable from the findings stipulated within.
