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Madras High Court
V. KANAGARAJ
Manoharamma Hotels and Investments - Appellant
Versus
Aruna Hotels Ltd. - Respondent
Decided On : 02/20/2004
TEMPORARY INJUNCTION - PROPERTY DISPUTE - AGREEMENT DATED 28-3-2003 - [FACT OF THE CASE] The applicant sought a temporary injunction to restrain the respondents from interfering with the peaceful possession and enjoyment of the 'C' property. The applicant had entered into an agreement with the respondents, wherein the respondents promised to obtain a discotheque license, but failed to do so. The applicant invested substantial amounts and incurred expenses based on the representations made by the respondents. [FINDING OF THE COURT] The court found that the applicant had a prima facie case and was entitled to protection pending the suit. The court held that the applicant was in possession of the property and was entitled to the relief sought. [ISSUES] Mis-joinder of parties, maintainability of the application during the pendency of the suit, and the jurisdiction of the court. [RATIO DECIDENDI] The court ruled that the applicant was entitled to maintain the application and that the jurisdiction of the court was not ousted. The court also held that the applicant had a prima facie case and was entitled to the relief sought. [FINAL DECISION] The court allowed the application and granted the temporary injunction in favor of the applicant.
2. The properties concerned with the application are the first and second floor along with all fixtures and equipments at No. 145, Sterling Road, Nungambakkam, Chennai-600 034, viz., "Aruna Centre".
3. The application would be filed by the applicant on grounds such as that the applicant is one of the group companies managed by the representative of the applicant and another having diversified activities in the film field : that way back in 1992, the second respondent herein borrowed a sum of Rs. 20,00,000/- (Rupees Twenty Lakhs only) on 18-4-1992 and another sum of Rs. 10,00,000/- (Rupees Ten Lakhs only) on 25-7-1992; that the second respondent paid Rs. 5,00,000/- (Rupees Five Lakhs only) on 10-6-1994, a further sum of Rs. 15,00,000/-(Rupees Fifteen Lakhs only) on 26-8-1994 and Rs. 10,000/- (Rupees Ten Thousand only) on 21-9-1997 all towards interest; that the second respondent had not settled the loan account till June 2000, but was attempting to sell a portion of the suit schedule property; that one of the applicant's group companies, M/s. Asian Capital Consolidated Fund, filed a case in O.S. No. 3659 of 2000 for a decree of permanent injunction restraining the second respondent from selling the property.
4. The applicant would further submit that in a settlement, it was finally decided that the respondents would sell their discotheque business for a consideration of Rs. 1,50,00,000/- (Rupees One crore and Fifty Lakhs only) and the applicant could make good all the dues payable to the group companies by running the discotheque business; that an agreement was entered into between the applicant and the respondents on 28-3-2003 on the representations made on the part of the third respondent to the effect that the first respondent is running a Four Star Business Class Hotel situate in a land measuring about 13 grounds at No. 144. Sterling Road. Nungambakkam, Chennai-600 034; that in the "Aruna Centre", the first respondent owns the 1st, 3rd, 4th and 5th floors and the second respondent owns the second floor with proportionate undivided
shares of land; that they both have entered into an agreement for the first respondent to acquire the second floor besides having a lease of the same from the second respondent and hence the second respondent also joined the agreement dated 28-3-2003 as a confirming party; that in the said agreement, it was further represented that M/s. DMS Enterprises Private Limited had set up and was running a Bar and Discotheque in the second floor of "Aruna Centre" under the name and style of "Hell Freezes Over" (HPO); that the first respondent had acquired the rights to use the name of "HFO" for operating Discotheque within the Chennai city and that the first respondent would obtain necessary clearance from the authorities including the licence for running a Discotheque in the second floor of "Aruna Centre".
5. The applicant would further submit that on the basis of that representation of the respondent, he agreed to purchase the assets of the said Discotheque for a consideration of Rs. 1,40,00,000/- (Rupees One Crore Forty Lakhs) and the rights of "HFO" for Rs. 10,00,000/- (Rupees Ten lakhs only), totalling a sum of Rs. 1,50,00,000/-(Rupees One Crore Fifty Lakhs only) and it was a pre-conditional obligation on the respondents that they would obtain license for running the Discotheque in the second floor of the "Aruna Centre".
6. The further averments of the application are that towards the agreed consideration,
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