Coimbatore: The Arbitral Tribunal has ruled that JMJ Housing Ltd. and its director must collectively pay Champion Textiles Ltd. ₹7.75 crore. This decision arose from a legal dispute regarding a residential development project in Coimbatore, documented in an award dated October 12, 2026.
The sole arbitrator for this case, Justice T. Ravindran, formerly of the Madras High Court, delivered the ruling in Arb. O.P. (Com. Div.) No. 394 of 2024.
This significant dispute involved land situated in Pattanam village, Coimbatore district. The property was designated for residential development under a Joint Development Agreement (JDA) signed on January 19, 2022.
Champion Textiles Ltd. entered into this agreement with JMJ Housing Ltd., whose director is Wilson P. Thomas. The agreement outlined detailed terms for residential construction and defined the distribution of the property and development benefits among the parties.
However, conflicts soon emerged regarding the execution of the agreement, particularly concerning construction responsibilities and transactions linked to specific plots within the property. Champion Textiles accused JMJ Housing of transferring certain plots to outside parties, which allegedly breached the terms of their contract and the linked General Power of Attorney.
The company’s objections pointed to a lack of required composite agreements with potential buyers prior to the registration of certain property transactions. In response, JMJ Housing Ltd. refuted these claims, asserting that they had completed crucial preparatory work and incurred expenditures for the development.
In the arbitration process, the tribunal meticulously evaluated all pleadings, documentary evidence, and testimonies from both sides. Ultimately, it ruled in favor of Champion Textiles concerning core contractual issues.
The award detailed findings related to the developer’s obligations, contentious property transfers, and the legitimacy of sales executed. The tribunal concluded that these transactions violated the stipulated contractual conditions and instructed the cancellation of the corresponding sale deeds.
The tribunal also ordered JMJ Housing Ltd. and its director to jointly pay Champion Textiles ₹6.75 crore, accruing interest at an annual rate of 18% from March 13, 2025, until full payment is made. An additional ₹1 crore will attract the same interest rate from the award date until payment completion, bringing the total compensation to ₹7.75 crore, not including costs and interest.
More than just monetary compensation, the award mandates the cancellation of 10 specific sale deeds tied to the contested property. The tribunal instructed that the respondents must deliver vacant possession of the property as described in Schedule A of the award to Champion Textiles within one month of the award issue date.
This direction forms part of the remediation granted to Champion Textiles following the tribunal’s findings regarding the alleged breaches of the development agreement and the contested property transfers.
The background of this arbitration highlighted competing claims regarding the parties’ contractual duties, the development work accomplished, and the validity of transactions involving third parties. Champion Textiles sought to nullify the controversial transactions, regain possession, and seek financial restitution. In contrast, the respondents challenged these claims, urging for dismissal of the proceedings.
The award, dated October 12, 2026, sets the stage for further legal endeavors concerning its enforcement and subsequent implications regarding the findings expressed.
