Madras High Court
M/S.Artha Real Estate Corporation ... vs D.Dinakaran on 28 June, 2024
Author: P.Velmurugan
Bench: P.Velmurugan
Civil Suit No.653 of 2017
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated : 28.06.2024
CORAM
THE HONOURABLE Mr. JUSTICE P.VELMURUGAN
Civil Suit No.653 of 2017
M/s.Artha Real Estate Corporation Limited
No.110/37, Solitaire Building,
Service Road, Outer Ring Road,
Marathahalli, Bangalore – 560 037. ... Plaintiff
Vs.
D.Dinakaran
Proprietor
M/s.Green Avenue Homes & Gardens
39-C, Second Floor, K.B.Dasan Road,
Teynampet, Chennai – 600 018. ... Defendant
Prayer:-
Civil Suit has been filed under Order XXXVII Rule 1 of CPC read
with Order VII Rule 1 of Original Side Rules for a judgment and decree
in favour of the plaintiff as against the defendant on the following terms :
a) to direct the defendant to pay the principal sum of
Rs.4,71,34,690/- together with interest on Rs.4,71,34,690/- from the date
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Civil Suit No.653 of 2017
of plaint till the date of realization at the rate of 24% p.a., on the amount
due;
ii) to pay the cost of the suit.
For Plaintiff : Mr.R.Venkatraman
For Defendant : Set ex-parte on 16.12.2020
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JUDGMENT
The Civil Suit has been filed to direct the defendant to pay
principal sum of Rs.4,71,34,690/- together with interest on
Rs.4,71,34,690/- from the date of plaint till the date of realization at the
rate of 24% p.a., on the amount due and also direct the defendant to pay
suit costs.
2.The brief facts, in nutshell, are thus:-
2.1. The plaintiff/Company submits that M/s.Bennett Property
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Holdings Company Limited, a unit of Times of India Group, had business
transactions with the defendant, wherein the plaintiff was providing
marketing services for the building projects developed by the defendant at
various locations. The plaintiff had been marketing the defendant's
properties in terms of the Agreement dated 02.03.2010. Originally, the
said agreement was entered by the defendant with M/s.Artha Financial
Services Limited for marketing the projects developed by the defendant.
However, through the business transfer agreement dated 03.02.2011,
M/s.Bennett Coleman & Company Limited took over the assets, including
the pending business transactions, receivable etc., from M/s. Artha
Financial Services Limited. Thereafter, a Marketing Agreement dated
02.03.2010 was entered between M/s.Bennett Coleman & Company and
the defendant. Subsequently, by a Demerger Arrangement, which was
duly approved by the Hon'ble High Court of Mumbai in Company
Petition No.427 of 2011 dated 14.10.2011 as amended by order dated
20.11.2011 and 02.12.2011, the assets, including the pending business
transaction and receivable etc., of M/s.Bennett Coleman & Company
Limited were taken over by M/s.Bennett Property Holdings Limited.
Thereafter, by a business transfer agreement dated 06.08.2014, the assets
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and receivable of M/s.Bennett Property Holdings Limited were taken over
by M/s.Artha Real Estate Corporation Limited. Therefore, the plaintiff is
legally entitled to recover the dues payable by the defendant.
2.2. It is stated that M/s.Bennett Property Holdings Company
Limited, having the role of marketing agency, marketed the defendant's
building projects having a value of Rs.1,11,45,16,910/- (Rupees One
Hundred Eleven Crores Forty Five Lakhs and Sixteen Thousand Nine
Hundred Ten only) as on 31.03.2014 and they were entitled for a
commission of Rs.13,70,20,241/- (Rupees Thirteen Crores Seventy Lakhs
Twenty Thousand Two Hundred Forty One Only). Further, the Agreement
between M/s.Bennett Property Holdings Company Limited and the
defendant for rendering marketing services for the properties developed
by the defendant was entered under several agreements from time to time.
The defendant has made payments on several dates towards the
commission due and payable to M/s.Bennett Coleman & Company
Limited.
2.3. It is further stated that the amount due from the defendant to
M/s.Bennett Property Holdings Company Limited stood at a sum of
Rs.4,46,34,690/- (Rupees Four Crores Forty Six Lakhs Thirty Four
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Thousand Six Hundred and Ninety only) after deducting the part
payments made on multiple dates and the defendant offered to set off an
amount of Rs.2,80,20,000/- (Rupees Two Crores Eighty Lakhs Twenty
Thousand only) towards the amount due as commission, by transferring
five plots in one of the projects developed by the defendant at
Oonamanjeri and known as Dakshin Avenue IV and to construct five
Villas thereon for the absolute ownership of M/s.Bennett Property
Holdings Company Limited. However, the defendant has failed to
develop the said project and abandoned the project due to various
financial difficulties faced by him. As a result, the proposal of setting off
dues to an extent of Rs.2,80,20,000/- (Rupees Two Crores Eighty Lakhs
Twenty Thousand only) became unworkable and was abandoned. It is the
claim of the plaintiff that the defendant is liable to pay a sum of
Rs.4,46,34,690/- (Rupees Four Crores Forty Six Lakhs and Thirty Four
Thousand Six Hundred and Ninety only) along with an interest at the rate
of 24% p.a., on the principal sum, after deducting the part payments
made on multiple dates to the plaintiff. Further, the defendant has also
admitted his liability by his letters dated 15.06.2013 and 20.04.2014.
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2.4. Apart from the above, the defendant is also liable to repay a
sum of Rs.25,00,000/- (Rupees Twenty Five Lakhs only) along with
interest on the principal at the rate of 36% p.a., towards loan advanced by
M/s.Bennett Property Holdings Company Limited on 17.07.2014, to meet
some urgent financial commitments. Therefore, the defendant is liable to
pay, in all a sum of Rs.4,71,34,690/- (Rupees Four Crores Seventy One
Lakhs Thirty Four Thousand Six Hundred and Ninety Only) together
with interest at the rate of 24% p.a. The plaintiff restrict their interest on
the sum of Rs.25,00,000/- advanced as a loan at the rate of 24% p.a.,
instead of the agreed interest at the rate of 36% p.a.
2.5. It is stated that the amount due and payable by the defendant
to M/s.Bennett Property Holdings Limited has been assigned to the
plaintiff by terms of the business transfer agreement dated 06.08.2014.
Therefore, the plaintiff is legally entitled to receive the entire suit claim
from the defendant and in any event, the defendant is liable to pay the
suit claim only to the plaintiff. Hence, the plaintiff issued a legal notice
dated 28.11.2016 to the defendant demanding to repay the commission
amount due. However, the defendant has not showed any inclination to
pay the amount due to the plaintiff and hence, the plaintiff is constrained
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to the file the present suit.
3. Since the defendant remained absent, the defendant was set ex-
parte by this Court on 16.12.2020.
4. On the side of the plaintiff, the Authorized Signatory of the
plaintiff/Company, Mr.A.Senthil Kumar was examined as P.W.1 and he
has reiterated the averments made in the plaint and also marked 14
documents as Exs.P1 to P14.
5. Heard the learned counsel appearing for the plaintiff and
perused the materials available on record.
6. On a perusal of the plaint averments and also Proof Affidavit of
the plaintiff and documents marked on behalf of them, this Court finds
that the suit claim is proved by the plaintiff, and hence, the
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plaintiff/Company is entitled to the decree as sought for in the plaint.
Accordingly, the suit is decreed as prayed for, with costs. Consequently,
connected pending applications, if any, are closed.
28.06.2024
Index: Yes/No
Speaking Order : Yes/No
Neutral Citation Case : Yes/No
ms
List of Witness examined on the side of the plaintiff
A.Senthil Kumar - PW1
List of documents marked on the side of the plaintiff
SL. Exhibits DESCRIPTION OF DATED
No DOCUMENTS
1. P1 Photocopy of the Board Resolution of 30.07.2018
the plaintiff
2. P2 Photocopy of the Marketing 02.03.2010
Agreement entered between M/s.Artha
Financial Services Limited and the
defendant
3. P3 Photocopy of the Business Transfer 03.02.2011
Agreement between M/s.Artha
Financial Services Limited and
M/s.Bennett Coleman & Co., Ltd.,
4. P4 Photocopy of the Annexure to 11.07.2011
Marketing Agreement dated
02.03.2010 between M/s.Bennett
Coleman & Co., Ltd., and the
defendant
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5. P5 Photocopy of the annexure between 03.01.2012
M/s.Bennett Property Holding
Company Ltd., and the defendant
6. P6 Office copy of the letter from the
defendant to M/s.Bennett Property
Holdings Company Limited
7. P7 Photocopy of the Marketing 06.09.2012
Agreement between M/s.Bennett
Property Holdings Company Limited
and the defendant
8. P8 Office copy of the Letter from 15.06.2013
defendant to M/s.Bennett Property
Holdings Company Limited
9. P9 Photocopy of the Sale cum 28.03.2014
Construction Agreement between the
defendant and others and M/s.Bennett
Property Holdings Company Limited
10. P10 Office copy of the letter from the 20.04.2014
defendant to M/s.Bennett Property
Holdings Company Limited
11. P11 Photocopy of the Business Transfer 06.08.2014
Agreement between M/s.Bennett
Property Holdings Company Limited
and between M/s.Artha Financial
Services Limited
12. P12 Office copy of the legal notice issued 28.11.2016
to the defendant
13. P13 Return Cover addressed to the 02.12.2016
defendant
14. P14 Return Cover addressed to the 14.02.2017
defendant
ms 28.06.2024
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P.VELMURUGAN, J
ms
28.06.2024
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