Madras High Court
Royal Orchid Hotels Ltd vs Ferdous Hotels Private Ltd on 21 March, 2014
Author: M.Jaichandren
Bench: M.Jaichandren, M.Venugopal
IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 21.03.2014 CORAM THE HONOURABLE MR.JUSTICE M.JAICHANDREN and THE HONOURABLE MR.JUSTICE M.VENUGOPAL O.S.A.No.192 of 2013 and M.P.No.1 of 2013 Royal Orchid Hotels Ltd., 1, Golf Avenue, Kodihalli, Off Airport Road Bangalore 560 008. .. Appellant vs. Ferdous Hotels Private Ltd., 5th Floor, "A" Block, Marina Square Building No.26-27, Santhome .. Respondent Original Side Appeal is filed under Order 36, Rule 1 of the O.S.Rules read with Clause 15 of the Letters Patent Appeal, praying for the relief as stated therein. For Appellant : M/s.Chitra Narayan For Respondent : Mr.A.J.Jawad ----- J U D G M E N T
(Judgment of the Court was made by M.JAICHANDREN,J.) This Original Side Appeal has been filed praying that this Court may be pleased to set aside the order and decreetal order, dated 15.04.2013 made in O.A.No.134 of 2013 and allow the appeal.
2. The matter was referred for mediation to the Tamil Nadu Mediation and Conciliation Centre, High Court of Madras, by the order of this Court, dated 27.02.2014.
3. A communication, dated 11.03.2014, of the Tamil Nadu Mediation and Conciliation Centre, High Court of Madras, has been received, enclosing a copy of the Mediation Report, dated 07.03.2014, stating that the matter has been settled between the parties concerned, as per the terms cited in the Mediation Agreement, dated 07.03.2014.
4. As the parties have arrived at a settlement in terms of the Mediation Agreement, dated 07.03.2014, this Original Side Appeal is listed for passing orders.
5. The Mediation Agreement, dated 07.03.2014, signed by the parties, as well as their respective counsels, reads as follows:-
"Both sides, out of their own volition and without any pressure or coercion from any side have agreed as follows:
"1. The parties have entered into (i) a Term Sheet dated 17.06.2011; (ii) a Consultancy Agreement for Technical Services dated 30.06.2011; (iii) a Hotel Operation Agreement dated 03.07.2011, under which the Royal Orchid would provide technical services, and services for operation and management of a hotel to be established at land measuring 10 grounds with building constructed thereon situated at R.S.No.1731/17 and 57, Block No.37 of Mylapore Village situated at New Door No.20 (Old Door No.9-C & 9-D), Dr.Radhakrishnan Salai, Mylapore, Chennai 600 004. The Hotel Operation Agreement has an arbitration clause.
2. Disputes arose between the Parties in respect of the Hotel Operation Agreement, and O.A.No.134 of 2013 and an appeal OSA No.192 of 2013 against the order dated 27.03.2013 passed in the said O.A., were filed by the Royal Orchid/Appellant, before the Hon'ble Madras High Court. The appeal is pending.
3. The Parties have since had discussions and have entered into an agreement through conciliation to settle their issues and have resolved to settle the disputes on the following terms:
(i) Upon execution of this Settlement Agreement, Ferdous Hotels/Respondent has this day paid Royal Orchid/Appellant a sum of Rs.45,00,000/- vide five Demand Drafts bearing Nos.867725,867726, 867727,867728 and 867729 dated 21.02.2014 and drawn on Indian Overseas Bank, in full and final settlement of all the claims of Royal Orchid/Appellant under the Hotel Management Agreement.
(ii) Royal Orchid/Appellant and Ferdous Hotels/ Respondent agree that the three agreements, viz., (i) Term Sheet dated 17.06.2011; (ii) Consultancy Agreement for Technical Services dated 30.06.2011; (iii) Hotel Operation Agreement dated 03.07.2011, including the arbitration agreement shall stand terminated;
(iii) The Parties agree that they have no claims against each other with respect to (i) Term Sheet dated 17.06.2011; (ii) Consultancy Agreement for Technical Services dated 30.06.2011; (iii) Hotel Operation Agreement dated 03.07.2011 and/or any other letter, agreement, notice, MOU or correspondence or oral instruction etc.,
4. Royal Orchid/Appellant will withdraw OSA No.192 of 2013 pending before the Hon'ble High Court of Madras by filing the present Settlement Agreement.
5. The Parties agree to cooperate to carry out and complete any action that may be required to give effect to this Settlement Agreement.
6. Royal Orchid/Appellant confirms that they have paid all dues to their employees, staff or workmen who participated in the said Agreements, in full. Neither party shall be liable in any manner to the other party in relation to any claim from any employee, staff or workman employed/engaged by the other party at the aforesaid property in relation to the Agreements and hereby agree to indemnify the other party against any such claim from employees, staff or workmen that may raise at any future date.
7. Royal Orchid/Appellant has removed all materials of their from site."
6. In terms of the settlement arrived at between the parties, which is recorded under the Mediation Agreement, dated 07.03.2014, this Original Side Appeal is disposed of. There shall be a Decree, in terms of the Mediation Agreement, dated 07.03.2014. The terms of the Mediation Agreement, dated 07.03.2014, shall form part of the record. No costs. Connected Miscellaneous Petition is closed.
(M.J.J.,) (M.V.J.,) mra 21.03.2014 Index :Yes/No. Internet :Yes/No. Note to Office:- Issue copy of the order, on or before 28.03.2014. M.JAICHANDREN, J. and M.VENUGOPAL, J. mra O.S.A.No.192 of 2013 and M.P.No.1 of 2013 21.03.2014