BY S.P.A.D.
Date: 22.09.2021
To,
Sri Boomadevi Land Developers Pvt. Ltd.
Rep. by its Managing Director, Mr. K. Malairajan
Having its registered office at:
No. 16A, Kaliamman Koil Street,
Virugambakkam, Chennai – 600092
Sir,
Sub: Notice on behalf of Narayana Educational Society – reg.
Upon instructions from my client Narayana Educational Society rep. by its
Secretary, Mr. R. Koteswara Rao, having its regional office at No 7A, New No. 12/1,
New Avadi Road, Villivakkam, Chennai – 600049, I am issuing the following notice to
you;
1.
My client states that it is a registered society established for the purpose of
establishing and running of educational institutions and has been running
several schools and colleges.
2.
My client states that it had entered into a Lease Agreement dated 04.11.2016
for lease of the premises comprising freehold land (without building)
measuring about 30,000 sq. ft. comprised in various survey numbers as set
out in the Agreement at Virugambakkam, Chennai. You had specifically
represented to my client that you are developing the property into an
Institutional building of about 1,00,000 sq. ft. which is suitable for running a
School.
3.
On the basis of your said representation, my client, being in the field of
establishing and running of schools and educational institutions, agreed to
take on a license basis, upon completion of construction of the building as
represented by you, for a period of 9 years, extendable mutually, with a lock
in period of 5 years.
4.
Under the Agreement, the entire construction was to be completed by you for
the purpose of use by my client for running a School, and a license fee of Rs.
55 per. Sq. ft. was payable on the built up area.
5.
My client states that Clause 2 of the Agreement specifically provides that you
shall privde by way of License on or before 30.04.2017 or upon completion of
the building, whichever is later. The term of License was for a period of 9
years commencing from 1st May, 2017, which was agreed upon your
representation and assurance that the construction of the building would be
concluded well within time and my client would be able to put the building to
use for the purposes set out in the Agreement.
6.
Under the Agreement, the license was terminable with a written notice of 12
months or equivalent time for completion of academic session, whichever is
later, after the completion of the lock-in period. The Agreement further
provided that if termination occurs at the behest of my client during the lockin period, the license fee shall be paid for the unexpired lock-in period as
well.
7.
My client states that Clause 7 of the Agreement clearly sets out your
company’s obligations with regard to construction of the building and
provision of requisite amenities, taxes, etc. in this regard.
8.
My client further states that Clause 8.2 of the Agreement specifically provided
for an “interest free refundable security deposit” of Rs. 4,50,00,000 (Rupees
Four Crore and Fifty Lakh only) to be paid by my client to your company to be
kept during the license period, and upon termination of the Agreement, the
same was to be returned to my client in full.
9.
My client states that due to your company’s inability to provide any proof of
having complied with obligations to procure permits/approvals for the
building, my client had made a payment of Rs. 2,00,00,000 (Rupees Two
Crore Only) towards refundable security deposit, and indicated that it would
pay the balance only once your company was in a position to establish its
bona fide regarding the construction of the buildings by providing proof of
having applied or obtained permits/approvals for the same as envisaged
under the Agreement. My client states that the aforesaid amount as security
deposit was paid to your company in the following manner.
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Paid Owner Name - SRI BOOMADEVI LAND DEVELOPERS PRIVATE LIMITED - KARNATAKA BANK
IMUL-PAY
TRANSACTI IMUL-PAY FILE NUMBERAMOUNT
BANK ACCOUNT
OWNER
NUMBER
ACCOUNT NUMBER
IFSC CODE
10/27/2016 BUIS656853-148556
50,00,000.00 ICICI -3538
1662000100002501' KARB0000166
10/27/2016 BUIS656871-148557
50,00,000.00 ICICI -3538
1662000100002501' KARB0000166
11/23/2016 BUIS663657-153751
50,00,000.00 ICICI -3538
1662000100002501' KARB0000166
11/23/2016 BUIS663616-153750
50,00,000.00 ICICI -3538
1662000100002501' KARB0000166
10.
While your company had accepted the same and promised to take immediate
action in relation to applying/obtaining of building approval and other requisite
permits from the concerned authorities expeditiously, my client did not
receive any further details in this regard and till date, you have not been able
to obtain proper approvals or take any steps towards putting up the
construction of the building as required for the School premises. My client
states that since the purpose of the Agreement was for establishing and
running a School for which time is of essence, it had indicated its displeasure
to your company for the inordinate delay caused to fulfil your obligations
under the Agreement and sought for termination of the Agreement and
refund of the amounts paid to your company as refundable security deposit.
11.
My client has reminded your company and its Managing Director, Mr. K.
Malairajan several times and sought for refund of the amounts deposited.
However, my client has not received the money from your client thus far.
Despite my client’s attempts to meet your company’s officials in this regard,
you have been avoiding meeting my client on some pretext or the other.
Hence, my client, around 18.11.2019, communicated to your company its
intention to terminate the Agreement and seek refund.
12.
My client states that after much effort from my client in pursuing the refund of
moneys liable to be paid by your company to my client, my client received an
email response from your company’s Managing Director Mr. K. Malairajan on
25.11.2019 stating as follows;
“Sir,
Received your email and noted the contents.
After entering into the agreement between us for the construction of new
proposed school building at our site, just because of your competitors lots
of disturbances came along the way for us and delayed the process
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We have spent lots of money to clear all issues, gifted land, made gift
deed to government by spending our money and obtained clearance for
plan approval.
Despite the efforts and my goodwill towards organization, you have
decided to terminate the contract.
However, We will do the needful, kindly give me some time so that I will
talk to my auditor and send you the repayment schedule shortly.
THANKING YOU
K. MALAIRAJAN
NO.16A,
KALIAMMAN KOIL STREET, VIRUGAMBAKKAM, CHENNAI-92”
13.
My client states that in spite of promising to repay the amount of Rs.
2,00,00,000/- (Rupees Two Crore Only), your company has failed to repay
the amount to my client.
14.
My client calls upon you to forthwith, and in any case, within two weeks from
receipt of this letter, refund the amount of Rs. 2,00,00,000/- (Rupees two
crore only). In case of your failure to comply with the above demand, my
client shall be constrained to take appropriate legal action against your
company for recovery of the aforesaid amount, along with interest at the rate
of 18% p.a. from the date of default until date of repayment and also hold you
liable for the costs and consequences thereof.
Yours Sincerely,
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