LAWS(SC)-2003-12-60

VIDEOCON PROPERTIES LIMITED Vs. BHALCHANDRA LABORATORIES

Decided On December 19, 2003
VIDEOCON PROPERTIES LTD. Appellant
V/S
BHALCHANDRA LABORATORIES Respondents

JUDGEMENT

(1.) Leave granted.

(2.) The appellants are the plaintiffs in Suit No. 2145 of 2000, on the original side of the High Court of Bombay and the respondents-defendants are registered firm of partnership and its partners, respectively. The plaintiffs are builders and developers and they have entered into an agreement with the defendants on 13-5-1994 to sell the landed property owned by the respondents and a sum of Rs. 38 lakhs was said to have been paid by the appellants as deposit or earnest money on the execution of the agreement, which the respondents received under the agreement. Clause 2.3 of the agreement, insofar as it is relevant for the purpose, reads as hereunder :

(3.) It is the stand of the appellants that for nearly five years the respondents did not perform their part of the contract or fulfil their obligations under Clause 2 of the agreement, in spite of repeated requests and reminders and this necessitated their issuing a Notice dated 3-3-1999 calling upon the respondents to fulfil their obligations within 15 days of receipt. On 15-3-1999, the respondents appear to have, for the first time, expressed their liability to fulfil the terms within time and informed the appellants in writing to invoke their right under Clause 2.3, in the following words :