Smt. Maddi Seetha Devi vs. M/S Provident Housing Limited

Held

The Court held that all three appeals are disposed of in terms of the Joint Memo dated 05.08.2021 filed by both parties. The Court explicitly stated that the orders impugned in these appeals merge in the Common Judgment being passed in terms of the Joint Memo. The reasoning was based on the joint submission of counsel for both sides who requested the disposal of the appeals in terms of the said Joint Memo. The Court did not delve into the merits of the GST dispute itself but rather facilitated the parties' agreed-upon resolution for the disposal of the appeals. No order as to costs was made. The operative direction was the disposal of the appeals in terms of the Joint Memo.

Facts

These three appeals were filed before the Telangana High Court against judgments and decrees passed by the III Additional District Judge, Ranga Reddy District. The appeals involved M/s. Provident Housing Limited (Developer) and Smt. Maddi Seetha Devi (Landowner). The parties jointly filed a memo requesting the disposal of the appeals in terms of this memo. The memo outlined an agreement to resolve issues, including a dispute pertaining to the payment of GST in respect of units falling to the Landowner's share. The Developer agreed to retain possession of certain units as interim security for the alleged GST liability of the Landowner, estimated at Rs. 13,86,82,293/-. The parties also agreed on procedures for handing over possession of completed units, addressing delay penalties, and managing refundable deposits. The dispute concerning GST was to be pursued by both parties through their respective legal remedies.

Key Issues

1. Whether the parties have reached a mutually agreeable resolution for the disposal of the appeals, as presented in the Joint Memo dated 05.08.2021? (Question of fact and procedure). The Petitioner (Developer) and Respondent (Landowner) argued that they have filed a Joint Memo and requested the appeals be disposed of in terms of this memo. The Revenue or State did not file any arguments as they were not a party to the Joint Memo. The Court was asked to consider the Joint Memo for disposal of the appeals. The core of the dispute, as reflected in the Joint Memo, involves the payment of GST on units, the retention of possession of certain units by the Developer as security for this alleged GST liability, and the eventual resolution of this GST matter through legal remedies. The parties agreed to refer this Joint Understanding to the High Court for disposal of the appeals and setting aside of the orders passed in the original applications.