Club to close for not following MoU

The City Civil Court has restrained C Saravanan’s men, agents and executors from running the Benze Vaccations Club at Wellington Plaza on Anna Salai without inducting K Loganathan of Saidapet as a business partner in it.Plaintiff Loganathan had prima facie made out a case, VI Assistant Judge Chandrasekaran said, and granted the interim injunction last week.After the arguments of counsel for both the parties, the judge noted that as per the memorandum of agreement, Saravanan, who had borrowed a huge amount from Loganathan, had agreed to make the latter a business partner in the club. However, without making him a partner, Saravanan had started the unit and thereby committed a breach of contract. If an ad interim injunction is not granted, the plaintiff will be put to irreparable loss and injury,’’the judge said, and granted the stay.

Loganathan, a licensed financial consultant, said Saravanan in December last borrowed `25 lakh on the promise of making him a business partner before its inauguration.

As  Saravanan had not kept his promise and started the unit at Wellington Plaza, Loganathan demanded the money back. Saravanan issued cheques for a total sum of ` 25 lakh in March this year but the cheques bounced. Hence, the present suit to restrain Saravanan’s men from running the club at Wellington Plaza.