SOBHA LTD Vs. NIHO CONSTRUCTION LTD

JUDGEMENT

(1.) Present suit has been filed under Order XXXVII Rules 1 & 2 of the Code of Civil Procedure for recovery of Rs. 7,85,00,000/- (Rupees Seven Crore Eighty Five Lacs Only) with pendente lite and future interest @ 18% per annum along with costs.

(2.) The relevant facts of the present case are that a Memorandum of Understanding (hereinafter referred to as 'MoU') was executed between the parties on 19th October, 2012 for development of certain properties claimed to be owed by the defendant-company. Under the MoU, Refundable Interest Free Advance (RIFA) of rupees five crores was paid by the plaintiff to the defendant-company in two installments of rupees one crore upon signing of MoU and rupees four crores on 29th October, 201

(3.) The MoU provided for carrying out due diligence by the plaintiff of the defendant-company's title over land and also stipulated that in case the report of due diligence was not to the satisfaction of the plaintiff, the defendant-company shall refund the amount of rupees five crores. The relevant clauses of the MoU are reproduced hereinbelow:-