JUDGMENT :

These two suits were jointly tried as per the orders of this Court. The suit in Transfer CS No.108 of 2017 was withdrawn to this Court from the City Civil Court. Transfered CS No.108 of 2017 was originally filed before this Court as C.S.No.257 of 2005, upon the enhancement of the pecuniary jurisdiction of the City Civil Court, the said suit stood transfered to the City Civil Court and was numbered as OS No.12159 of 2010. Thereafter, since the suit was connected with CS No.164 of 2011 which was pending on the file of this Court, the suit was transferred to this Court to be tried along with CS No.164 of 2011. Hence both the suits are disposed of by this common judgment.

2. The brief averments in the plaint in Transfer CS No.108 of 2017 (CS No.257 of 2005) are as follows:

2.1. The plaintiffs are limited companies carrying on business in hospitality industry. The first plaintiff owns a chain of luxury hotels of international standards and the second plaintiff owns the brand 'oberoi' which has acquired a tremendous reputation and goodwill in hospitality industry both in India and abroad. The first defendant viz. Balaji Hotels and Enterprises Limited, which is the sister concern of the second defendant Balaji Industrial Corporation Limited had approached the plaintiffs for provision of Technical Services, Project Consultancy for the proposed Star Hotel which they intended putting up in their property situate on Mount Road, which is one of the arterial roads having high commercial potential in the City of Chennai.

2.2. After negotiations, the plaintiff entered into a technical services agreement on 26.10.1988. As per the said Technical Services agreement, the first plaintiff had agreed to provide technical knowledge, skill and professional services required for operation of the Hotel. On the same day, a Project Consultancy Agreement was also entered into between the plaintiff and the first defendant under which the plaintiff agreed to provide consultancy for creating the infrastructure viz. buildings etc., for the proposed Star Hotel. The second plaintiff which is the owner of the brand 'Oberoi' entered into a Royalty Agreement with the first defendant for use of the name Oberoi for the Hotel to be constructed by the first defendant.

2.3 According to the plaintiffs, the first defendant agreed to complete the construction of the Hotel by 31.03.1992 and the first plaintiff had agreed to provide complete technical support for running the Hotel. It was also agreed between the parties that the first defendant will disclose the existence of the agreement and the vested rights of the plaintiffs in the Hotel to any lender, leasing company or other financial institutions which are involved in the project. It was also agreed that the owner viz., the first defendant shall inform the plaintiff about any loans that are taken by it for the construction of the Hotel. Though the project was commenced in all earnestness, the first defendant could not complete the project by 31.03.1992 as agreed to. The first defendant was unable to complete the Hotel and commence business despite several extensions being granted.

2.4. On an appraisal of the project by the Financial Institutions the estimated project cost was pegged at Rs.120 Crores. The same was to be financed through equity share capital of Rs.45 crores and term loan of Rs.75 Crores consisting of Rs.20 crores to be advanced by the Tourism Finance Corporation of India/ sixth defendant and Rs.55 crores by the Industrial Finance Corporation of India/ fifth defendant. In September 1996 there was a reappraisal of the cost of the project and the financial institutions which were involved in the project estimated the total cost at Rs.192 crores. The fourth defendant ICICI Bank sanctioned a debenture assistance of Rs.49.5 crores for funding the commercial complex. Despite such increased inflow, the first defendant could not complete the construction of the Hotel as it could not bring in its own capital