Gurgaon court has set aside a plea filed by realty developer MGF, challenging a compromise between another realty developer M3M and a land-owning company.
The court in its order dated May 27, observed that MGF has no locus as it was never the owner nor was ever in possession of the land. As per the court order, the agreement on the basis of which the compromise decree was passed stands fully complied with.
MGF had challenged compromise deed and Lok Adalat award of 2016 by filing civil suit in 2022.
The court said that MGF has challenged the compromise and consent decree despite the fact that MGF was not party to the same and thus, MGF had no right to claim said relief of setting aside compromise and consent decree.
As per the court findings, MGF was never the owner of the land and the land-owning companies belonging to Emaar were always owner and in possession of the land.
“By way of exchange deeds and compromise decree, all rights, titles & interests in the land were conveyed by land owning companies to Cosmo Propbuild etc. (M3M entities) in 2016. Validity of Lok Adalat award passed on basis on compromise decree and exchange deeds has been challenged before trial court, executing court and Punjab & Haryana High Court and all Courts have upheld the Lok Adalat award, compromise deed and exchange deeds,” the court order reads.
Regarding MGF claim that due to dishonour of cheques, compromise deed, exchange deeds and Lok Adalat award are automatically nullified, the court stated that cheques were dishonoured in 2018 but suit was filed in 2022, thus, same is barred by limitation.
