Coimbatore, October 12, 2026: Champion Textiles Ltd. has emerged victorious in a protracted legal battle, securing a compensation of Rs. 7.75 crore from JMJ Housing Ltd. and its director. An arbitral tribunal made this ruling in response to a dispute over contractual obligations related to a residential development project.
The tribunal, led by former Madras High Court judge Justice T. Ravindran, issued its award following rigorous examination of documents and testimonies from both parties.
The conflict originated from a Joint Development Agreement (JDA) signed on January 19, 2022, intended for a property located in Pattanam village, Coimbatore district.
Champion Textiles, represented by Managing Director V.R.S. Natarajan, entered the agreement with JMJ Housing, whose director is Wilson P. Thomas. The contract mandated JMJ Housing to take charge of the residential construction, ensuring both parties shared in the development’s benefits.
However, differences began to surface regarding the adherence to the project terms. Champion Textiles accused JMJ Housing of breaching the agreement by transferring certain plots to third parties without necessary approvals, which violated the General Power of Attorney.
The tribunal scrutinized the allegations, evaluating the legality of the transfers and whether JMJ Housing had fulfilled its contractual responsibilities. The respondents defended their actions, claiming they made substantial progress and expenditures towards the project.
In its ruling, the tribunal found significant contractual violations. It ordered JMJ Housing to cancel the disputed transfers, determining they contravened the agreed conditions.
The compensation awarded comprises two amounts. The tribunal mandated JMJ Housing to pay Rs. 6.75 crore with an interest rate of 18 percent per annum from March 13, 2025, until the sum is fully paid. Additionally, the company must pay another Rs. 1 crore, with similar interest conditions from the date of the award.
Besides the financial compensation, the tribunal directed the cancellation of ten sale deeds associated with the disputed property transactions.
Moreover, JMJ Housing has been ordered to provide Champion Textiles with vacant possession of the property described in the award, effective within one month from the ruling date.
This decision follows an extensive arbitration process that involved contentious debates regarding the parties’ contractual duties and the legitimacy of transactions with third parties.
Champion Textiles pursued the annulment of the disputed deals and sought not only financial restitution but also regained lawful possession of the land. Conversely, JMJ Housing contested these claims, advocating for their dismissal.
The arbitration award, dated October 12, 2026, highlights the arbitrator’s detailed examination of the evidence presented. The implementation of its provisions now awaits further legal scrutiny to address the ruling’s future status.
