MGF’s challenge to 2016 compromise decree rejected by city court

NEW DELHI: In a major setback for MGF, a city court dismissed their plea challenging a compromise between M3M and a land-owning company. The court noted that MGF had no locus, as it was never the owner nor in possession of the land. The court affirmed that the agreement forming the basis of the compromise decree had been fully complied with. MGF’s challenge to the 2016 compromise deed and Lok Adalat award, filed in 2022, was also deemed barred by limitation.

MGF had no right to seek the setting aside of the compromise and consent decree, as it was not a party to them. The court found that the land-owning companies belonging to Emaar were always the land’s owners. Through exchange deeds and the compromise decree, all rights were transferred to M3M entities in 2016. The Lok Adalat award and related deeds were upheld by multiple courts, including the Punjab & Haryana High Court.

Regarding MGF’s claim that the dishonor of cheques nullified the agreements, the court noted the cheques were dishonored in 2018, but the suit was filed in 2022, thus barred by limitation.

Additionally, MGF’s claims related to licenses and permissions were considered moot, as permissions had already been granted and were under review by the Punjab & Haryana

High Court.

In 2016, Emaar-MGF offered M3M 31 acres in Choma village, Gurgaon, for Rs 88 crore. M3M later discovered the plot was sold to another company, leading to a fraud complaint.