Parsvnath has cancelled its joint venture (JV) agreement with Sumeru Soft (SSPL) and Gomathi Visweshwaran Trust (GVT) to develop a project situated at OMR Road, Chennai.
The company had entered into the JVA in 2006 with SSPL and GVT for development of multi facility complex comprising of residential apartments, service apartments, commercial, IT/ITES Parks etc. on the punja land of an extent of approximately 31 acres.
For certain reasons beyond the control of the parties to the JVA, the development of the project could not be initiated and possession of the Project land always remained with the SSP and GVT, it said in the regulatory filing.
As the project envisaged in the JVA was long been given up/shelved and the development of the project was not feasible, the company and GVT entered into a settlement agreement for cancellation of JVA.
Parsvnath and SSPL raised certain claims against each other for the recovery of the costs incurred by them/losses caused to them under the JVA and referred their dispute to arbitrator.
With the intervention of the arbitrator, it was mutually decided to cancel the JVA and settle the disputes. Accordingly, the parties executed a settlement agreement in September.
According to the settlement agreement, SSPL has agreed to convey and transfer punja land admeasuring 7.90 acres out of the said project land to Parsvnath, free from all encumbrances and claims, together with all rights and easements attached thereto in full and final settlement of all other claims.