Bombay HC orders Emgee Properties to compensate Sussanne Khan

Bombay HC orders Emgee Properties to compensate Sussanne Khan
05/02/2020 , by , in News/Views

The Bombay High Court has upheld an arbitrator’s order directing a firm to pay Rs 2.52 crore to interior designer Sussanne Khan.

A division bench of Chief Justice Pradeep Nandrajog and Justice Bharati Dangre, in a judgment passed on Tuesday, dismissed the appeal filed by Mudhit Gupta, founder of Goa-based real estate company Emgee Properties.

The firm and Khan had signed a contract in September 2013, commissioning her to design the interiors of a 12-villa project in Goa. The contract provided for a phase-wise payment to Khan, with the first phase labelled as “inception” and the second as “detailed design.”

The payment for first phase was set at Rs 1.68 crore and that for the second phase was over Rs 5 crore, which included the execution of the project.

The firm did not use Khan’s services to execute the second phase of her designs and refused to pay the sum owed to her. However, there was a clause on the second phase of the project, which said that if Khan’s services were not used for executing the designs created by her, she would be entitled to get Rs 2.52 crore as the architectural and designer’s fee. The fee due to her would be in addition to the money already paid by then.

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