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Conflict of spa business premises in the center of Saigon

Duy Tan Company asked the spa owner to return the 1,600 m2 premises in District 3, Ho Chi Minh City, due to the expiration of the cooperation period but the partner did not implement, the conflict became more and more acute.

The lawsuit filed by Duy Tan Development Investment Trading Co., Ltd (Duy Tan Company) – asking Golden Lotus Trading Co., Ltd (Golden Lotus Company, Korean-style spa business) to return the premises 27- 33 Pham Ngoc Thach, was accepted by the People’s Court of District 3. The first-instance judgment forced Golden Lotus Company to hand over assets attached to the land to Duy Tan Company, and at the same time pay the plaintiff 1.8 billion dong for profit sharing and unpaid use of the premises.

However, the defendant disagreed and appealed the entire content of the judgment. The dispute will be appealed by the Ho Chi Minh City People’s Court on April 15.





The ground is more than 1,600 square meters by the disputing parties.  Photo: Binh Nguyen

The ground is more than 1,600 square meters by the disputing parties. Photo: Binh Nguyen

According to the petition, on January 4, 2016, Duy Tan Company and Golden Lotus Company signed a contract in principle and investment cooperation on a two-fronted real estate with an area of ​​more than 1,600 m2 at 27-33 Pham Ngoc Thach and No. 208 Pastuer, Vo Thi Sau ward, district 3. The two sides agreed, Duy Tan Company contributed capital with the right to exploit the land, while Golden Lotus spent money to build suitable offices and commercial services. with the purpose of land use and business conditions. When put into operation, Duy Tan receives 400 million VND per month. From the third year onwards, profits will be increased by 5%. The contract expires in July 2021.

During the cooperation process, Duy Tan Company said that Golden Lotus did not comply with the agreement, instead of investing in building offices and commercial centers as signed, this company invested in spas for business. In addition, Golden Lotus Company used many reasons not to pay 5% more profit from the 3rd year; Arbitrarily renovating, repairing, and building new ones without the consent of Duy Tan, so this company demanded the return of the premises. Because the spa owner did not pay, Duy Tan Company sued the District 3 People’s Court.

At the first-instance trial, the plaintiff maintained his position, and said that by the time the case was heard, the cooperation contract between the two sides had expired (from July 2021, so Golden Lotus should be asked to: return the premises and the unpaid amount. They agreed to return the 1.2 billion dong deposit and exempt the defendant from profit sharing for 4 months of 2021.

Disagreeing with the plaintiff’s request, Golden Lotus Company requested the court to declare the principle contract between the two parties invalid due to a violation of form and content. According to the defendant, Duy Tan Company has not yet carried out the procedures for registration of property ownership on the land at the cooperation ground as agreed, so this contract has not yet taken effect. They asked Duy Tan Company to pay Golden Lotus the entire investment cost in the cooperation ground, a total of 70 billion dong, to refund the profit shared to Duy Tan so far is more than 28 billion dong.

After studying the file, the District 3 People’s Court accepted the request of Duy Tan Company. In addition to Golden Lotus Company having to hand over the ground and pay an additional 1.8 billion VND, the judgment also forces the defendant to pay 400 million VND/month for the use of assets on the land from July 4, 2021. (contract expiration) until handing over the entire premises.

According to the Panel, the signing of cooperation agreement to exploit and use the premises at 27-33 Pham Ngoc Thach and 208 Pastuer for profit-making business is voluntary by the parties. The content of the contract has provisions that are both oriented as a principle contract and detailed as a cooperation contract. In it, there is a clause that states: “The two parties commit to abide by this principle contract and when Party A (Duy Tan Company) completes the procedures for registration of property ownership on the land 27-33 Pham Ngoc Thach … then this principle contract automatically takes effect”.

The Court also said that, according to the official dispatch of the City Land Registry Office, Duy Tan Company had been granted a certificate of land use rights and ownership of leased land by the Department of Natural Resources and Environment. annual land rent). It is understood that Duy Tan Company has completed the procedures for registration of property ownership on land. “Considering that the content and form of the contract are consistent with the provisions of the law, it should be valid,” the judgment stated.

After the contract expired, in October 2021, Duy Tan Company sent a written request to the defendant to hand over the premises, but Golden Lotus did not do so. This has been re-dispatched by equals. From these grounds, the trial panel considered that the plaintiff’s claim was “grounded”.





Cement of Duy Tan Company was damaged by water spray.  Photo: Binh Nguyen

Cement of Duy Tan Company was damaged by water spray. Photo: Binh Nguyen

In early March, Duy Tan Company brought construction materials to repair the office under the license registered with the authorities before, hired a security company to protect the property, when a collision occurred. with managers and employees of Golden Lotus Company. People at the spa facility sprayed water and damaged all of Duy Tan’s cement.

The incident was recorded by the police of Vo Thi Sau ward, district 3. Currently, Duy Tan Company has made an application to the police to handle people at the spa about their behavior Destruction of property and Deliberately inflicting injury.

Binh Nguyen

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