SMT. INDRANI V CHHABRIA @ D P INDRANI vs M/S TANDRA CONSTRUCTIONS PVT LTD.,
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC:58901-DB
COMAP No. 437 of 2026
CNR: KAHC010628412026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 16 DAY OF OCTOBER, 2026
PRESENT
THE HON'BLE MR. JUSTICE D K SINGH
AND
THE HON'BLE MR. JUSTICE H.SHANTHI BHUSHAN
COMMERCIAL APPEAL NO. 437 OF 2026
BETWEEN:
1. SMT. INDRANI V CHHABRIA @ D P INDRANI
W/O. LATE SRI VIJAYAKUMAR CHHABRIA,
AGED ABOUT 62 YEARS,
2. SMT. REVATHI SRIDHAR @ D.P. REVATHI
W/O. SRI SREEDHAR MURTHY,
AGED ABOUT 60 YEARS,
BOTH ARE R/AT NO.39, KRISHNAPPA LAYOUT,
ST
1 CROSS, SANJAY NAGAR,
BENGALURU-560 094.
…APPELLANTS
(BY SRI. SAMPATH A, ADVOCATE)
AND:
1. M/S TANDRA CONSTRUCTIONS PVT LTD.,
A COMPANY DULY INCORPORATED
UNDER THE COMPANIES ACT,
HAVING ITS OFFICE AT FLAT NO.D & E,
ST
1 FLOOR, RANJANA PARK,
BHANUMATHI RAMAKRISHNA ROAD,
SALIGRAMAM, CHENNAI,
TAMIL NADU-600 093.
DULY REPRESENTED BY ITS DIRECTOR
SRI T. RAMESH @ TANDRA RAMESH,
S/O. LATE T. PAPA RAO,
Digitally
signed by
MALA K N
Location:
HIGH COURT
OF
KARNATAKA
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NC: 2026:KHC:58901-DB
COMAP No. 437 of 2026
CNR: KAHC010628412026
[email protected] AND
[email protected]
MOBILE 93461 23200.
…RESPONDENT
(BY SRI. KASHYAP N NAIK, ADVOCATE FOR C/R IN CP
NO.16753/2026 & ALSO ACCEPTS NOTICE FOR RESPONDENT)
THIS COMAP FILED UNDER SECTION 13(1-A) OF
COMMERCIAL COURTS ACT, PRAYING TO SET ASIDE THE
ORDER DATED 08.07.2026 PASSED IN COM.A.A.NO.27/2026
BY LEARNED X ADDITIONAL DISTRICT AND SESSIONS JUDGE,
(DEDICATED COMMERCIAL COURT) BENGALURU RURAL
DISTRICT, BENGALURU. CONSEQUENTLY, ALLOW THE
APPLICATION OF THE APPELLANTS AS PRAYED FOR.
THIS APPEAL, COMING ON FOR DISPOSAL, THIS DAY,
JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE D K SINGH
AND
HON'BLE MR. JUSTICE H.SHANTHI BHUSHAN
ORAL JUDGMENT
(PER: HON'BLE MR. JUSTICE D K SINGH)
The present commercial appeal has been filed under
Section 13 (1-A) of the Commercial Courts Act, 2015
impugning the judgment and decree dated 08.07.2026 passed
in Com.A.A.No.27/2026 by the X Additional District and
Sessions Judge (dedicated Commercial Court), Bengaluru Rural
District, Bengaluru.
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NC: 2026:KHC:58901-DB
COMAP No. 437 of 2026
CNR: KAHC010628412026
2. During the pendency of this appeal, parties have
settled their dispute amicably and have presented a joint
compromise petition for passing a consent decree under Order
XXIII Rule 3 read with Section 151 of Code of the Civil
Procedure, 1908 (‘CPC’ ). The application supported by
affidavit, signed by the each parties and their respective
learned counsel putting their signatures has been filed. Parties
are present before this Court who were duly identified by the
respective learned counsel. We have interacted with them and
they unequivocally stated that they singed the consent terms
without there being any force, coercion or undue influence and
consent decree may be passed in terms of the compromise
petition filed under Order XXIII Rule 3 of CPC.
3. The consent terms stated in the application would
read as under:
“2.1. The Respondent herein shall construct the west
facing Villas, with a built up area measuring 1800 sq.ft
and East facing Villas with a built up area measuring
1850 sq. ft. each, in the 11 plots allocated to the
share of the Appellants as per the Sharing Agreement,
free of all cost. The construction shall include
excavation, all civil works, electrical wiring, plumbing
lines, installation of doors and windows, slabs in the
kitchen, installation of switches and switch plates,
flooring and painting sanitary fittings and hardware
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COMAP No. 437 of 2026
CNR: KAHC010628412026
fittings. The construction shall not include any interior
works such as, woodwork, wardrobes, modular
kitchen, temporary partitions, false ceilings, etc. Such
interior works shall be carried out at the cost of the
Appellants or their prospective customers, as the case
may be. No furnishing shall be included.
2.2. The parties agree that in respect of Villas Nos. 1
and 2, the Respondent shall obtain approval from
BIAPPA for the maximum permissible constructable
area, at Respondent's cost. The construction cost for
any area exceeding 1,800 sq. ft. in each of the said
Villas shall be borne by the Appellants at the time of
construction, at a per-square-foot market rate, to be
agreed mutually by both parties in writing.
2.3. Further, the original title documents shall first be
reviewed by the Appellants and thereafter kept in a
bank locker in the name of Ms. Karthika (Wife of Mr.
T. Ramesh, the Director of the Respondent) at Canara
Bank, Kannamangala, Devanahalli. The documents
shall be handed over by her to Plot Owners
Association that would be formed on a later date.
2.4. The Respondent shall obtain electrical connection
and bore well water supply for each of the plots. The
project shall also include the common Sump Tank with
pressurized water system, Septic tank, DG set, etc.,
as applicable.
2.5. Upon completion of the project relating to the
shares of both the Appellants and the Respondent, a
clubhouse shall be a constructed. The construction of
the clubhouse shall be after completion of construction
of all villas in the plots belonging to Appellants and
Respondent. In the event Club House is not
constructed, the said plot shall be handed over to the
Plot Owners Association.
2.6. The construction of all 11 Villas falling to the
share of the Appellants shall be completed within 30
months from the date of this Compromise. A grace
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COMAP No. 437 of 2026
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period of 3 months shall be available to the
Respondent for completion of the said construction,
subject to the condition that, upon failure to complete
the construction within the aforesaid period of 30
months, the Respondent shall be liable to pay the
Appellants liquidated damages of Rs.25,00,000/-
(Rupees Twenty-Five Lakhs only) each, which shall
become payable upon expiry of the said 30 months
and during the grace period of 3 months. If the
construction of all 11 Villas is not completed even
after the aforesaid period of 33 months, the
Appellants shall be entitled to claim damages from the
Respondent towards such delay in construction.
2.7. The parties agree that the Respondent shall
prepare and submit application for Building License
Plan for and on behalf of the Appellants in respect of
the 11 plots allocated to them on or before
05.11.2026 and obtain the same at its cost. The
Appellants shall cooperate with the Respondent for
submission of the application by providing all
necessary documents, detailed and information as and
when requested by the Respondent. The Respondent
shall commence construction of the Project within a
period of 7 (seven) working days from the date of
obtaining the Building License Plan.
2.8. The Respondent may obtain registration under
Real Estate (Regulation and Development) Act, 2016
("RERA") in respect of the 11 (eleven) plots allocated
to the Appellants after receipt of the requisite approval
from BIAPPA, if the registration under RERA Act, 2016
is applicable to the Appellants' share of plots. In such
an event, the cost of such application and approval
shall be paid by the Respondent. However, the
Appellants shall cooperate with the Respondent in
making the application for registration under the RERA
Act, 2016.
2.9. The Appellants hereby confirm that the General
Power of Attorney dated 07.02.2023 is valid,
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COMAP No. 437 of 2026
CNR: KAHC010628412026
subsisting and irrevocable. In view of the same, the
Appellants hereby withdraw the cancellation of general
power of attorney made by them through letter/notice
dated 24.03.2026 and public notice dated 31.03.2026.
The Respondent is hereby permitted to issue a public
notice to this effect. In view of the same, no fresh
General Power of Attorney from the Appellants shall
be required for implementation of the terms of the
present compromise.
2.10. The parties shall retain Construction Agreement
dated 07.02.2023 except changing the timelines for
carrying out the construction by the Respondent and
incorporating the applicable terms of this compromise.
The Respondent shall comply with and adhere to the
terms of the Construction Agreement dated
07.02.2023, in addition to the terms recorded herein.
The Appellants have got the Construction Agreement
dated 07.02.2023 regularized before the District
Registrar, Bangalore Rural District, as per Order No.
GNK/Grama/ADJ/500/26-27 dated 15.09.2026.
Further, in the event of any inconsistency,
discrepancy, or conflict between the terms of the
Construction Agreement dated 07.02.2023 and the
terms of this Compromise shall supersede the
provisions of the Construction Agreement dated
07.02.2023.
2.11. Mr. Mahesh Raja Reddy is appointed by both the
parties, to inspect, supervise and exercise quality
control over the construction and execution of the
entire project until completion of the entire project.
2.12. Obligations of the Respondent:
i. The entire cost of obtaining sanction of Building
Plan, construction of building over the 11 villas fallen
to the share of the Appellants, subject to Clause 2.1
and 2.2 herein above shall be borne by the
Respondent alone.
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COMAP No. 437 of 2026
CNR: KAHC010628412026
ii. As a measure of security, while the Respondent
may enter into agreements of sale/sale deeds in
respect of the plots falling to the Respondent's share,
as per the Sharing Agreement the Respondent shall
refrain from alienating 3 plots which have fallen to his
share, namely Plot Nos. 17, 24, 25, during the
Construction Period.
iii. Upon completion of construction of 6 Villas
belonging to the share of the Appellants, the
Respondent may sell or alienate or transfer Plot No.
17 to any third party.
iv. Upon completion of construction of all 11 Villas
falling to the share of the Appellants in the manner
specified herein, the Respondent may sell or alienate
or transfer the other two (2) plots bearing Plot Nos. 24
and 25 to any third parties.
2.13. The parties agree that the sum of Rs. 1 crore
refundable deposit paid by the Respondent to the
Appellants in 2023 under the JDA is treated as
compensation payable by the Respondent to the
Appellants towards delay in construction. Accordingly,
the said amount of Rs.1 crore stands forfeited in
favour of the Appellants. The Appellants are not be
required to return the same to the Respondent.
2.14. The Respondent further agrees to pay an
additional amount of Rs.1 Crore to the Appellants in
the manner prescribed below:
i. The Respondent has issued Cheques amounting to
Rs.15 lakhs to each of the Appellants on the date of
this Compromise Petition. The Cheques shall be dated
16.10.2026. The Respondent shall ensure that the
Cheques shall be honoured on presentation.
ii. The Respondent shall pay a sum of Rs.10 lakhs to
each of the Appellants on 01.12.2026.
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iii. The Respondent shall pay a sum of Rs.25 lakhs to
each of the Appellants within 5 months from the date
of this Compromise Petition.
2.15. In addition thereto, upon handover of the keys
to the Villas constructed in the Appellants' share and
provision of electricity connection thereto, it shall be
deemed that the Appellants have no objection for the
Respondent to alienate the 3 plots at the relevant
point of time as mentioned hereinabove.
2.16. The present mortgage deeds executed in respect
of the Respondent's share of the property shall not
come in the way of enforcement of the terms of this
Compromise. However, the Respondent shall ensure
that there is no default in respect of any loans
obtained by the Respondent against any of the
mortgaged plots, so as to give rise to an event
whereby the Mortgagee invokes his/her right to
enforce or seek foreclosure of the mortgage.
Nonetheless, the Respondent having executed the
deeds of Mortgage, Respondent alone is responsible to
repay the amount, if any, payable.
2.17. Obligations of the Appellants:
1. The Appellants shall not cancel or repudiate the JDA
or GPA or Sharing Agreement.
ii. The Appellants shall co-operate with the
Respondent through the completion of project,
including but not limited to signing any applications,
letters, for obtaining building sanction plans,
connections to utilities such as electricity etc.
iii. The Appellants shall not demand further
construction or increase in the construction areas for
each/ any villa that have fallen to their share except
as provided herein.
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iv. If the Appellants desire to get the interior works
done from the Respondent, then the Appellants shall
mutually discuss and bear the cost of such interior
works, together with applicable labour expenses, by
reducing the same into writing.
V. Further, the time taken for any such interior works
shall not be considered for the purpose of timeline of
construction of a villa as provided in this compromise
petition. It is hereby clarified that interior works shall
not form part of the Construction Agreement or any
construction activities to be undertaken by the
Respondent as per the terms of this Compromise.”
4. We therefore take on record the joint compromise
petition and pass consent decree in terms of the consent terms
set out in the joint compromise petition.
Accordingly, appeal stands disposed of in terms of the
joint compromise petition.
Sd/-
(D K SINGH)
JUDGE
Sd/-
(H.SHANTHI BHUSHAN)
JUDGE
BVK
List No.: 2 Sl No.: 10