Goldbricks Infra gets interim arbitration relief against Godrej Properties
The arbitration tribunal has directed Godrej Properties to deposit Rs 140 crores to protect the interest of Goldbricks Infrastructure in respect of the award ultimately to be passed in this matter. The funds to be deposited within 10 days of the order passed on October 19, will also be used to prevent further losses and enable the landlord to clear its liabilities and carry out further activities on the property.
Godrej Properties has also been restrained from entering upon and interfering with the construction of the remaining work by owners or any other agency and dealing in the project and utilising any benefits arising out of it.
Goldbricks Infrastructure, which owns a 29-acre in Ganeshpeth locality of Nagpur is developing a residential-cum-commercial zone. In 2012, the company had entered into a development agreement with Godrej Properties for development of 9 towers.
Godrej Properties started with the development and completed 1 tower. However, it had stopped the further development of the project for the balance 8 towers.
“So far as the project is concerned, it is more than clear that in the interest of the project, it cannot be left in the hands of the respondent (Godrej Properties) who is not only unwilling to go ahead with the project but has also made it clear that it would like to exit from the project. The project must revert to the claimant (Goldbricks Infrastructure) and the claimant should be allowed liberty of executing it by itself or through an agency chosen by it,” said the interim award passed by R.C. Lahoti, the sole arbitrator and former Chief Justice of India.
Godrej Properties said it plans to challenge the arbitration award in the High Court.
“The honourable arbitrator has passed an interim order on October 19, 2021, but upon contesting the tribunal itself has stayed the operation of the said interim order for a period of two weeks,” a Godrej Properties spokesperson said.
“We are confident on our merits and feel that the said order has not considered our submissions on law as well as other factual aspects in totality and we are in the process of filing an appeal against the said order before the honourable High Court,” the spokesperson said.
As part of the order, the tribunal has directed that the clubhouse work being carried out by Godrej Properties should not be stopped and be completed by them as early as possible and in any case by 2022 as submitted by the company before the tribunal. For this limited activity, Godrej Properties will be allowed access to the project Land.
Godrej Properties has been asked to hand over all the requisite documents, drawings, tenders, work orders to consultants and other necessary information within a week to Goldbricks Infrastructure and provide such other information to the Claimant as may be necessary.
The tribunal has provided Goldbricks Infrastructure liberty to revoke or terminate the power of attorney given in favour of Godrej Properties and the latter will not be entitled to deal with any property of the project except by the consent or permission of the former.
Private equity fund Urban Infrastructure Opportunities Fund holds around 20% and Urban Infrastructure Real Estate Fund holds around 22.5% stake in this project. Both the private equity funds are managed by Urban Infrastructure Venture Capital.