JACOBS PRIVATE LIMITED Vs. THOMAS JACOB

JUDGEMENT

(1.) As construction of a multi-storeyied building on one of the prime sites at Ernakulam was in progress, a suit for partition was filed by one of the coowners of the land concerned. In the suit he sought for an injunction restraining the defendants from proceeding with the construction. As the lower court granted the injunction the aggrieved first defendant - company has filed this appeal.

(2.) The land in dispute has an extent of 45.408 cents. It belonged to a firm called "J'Kobs" which was later dissolved and thereafter ownership of the land became vested with the erstwhile partners of the firm. Plaintiff is one among them. First defendant - a private limited company - entered into an agreement with the coowners of the aforesaid land for purchasing the same. Ext. A1 is the agreement for sale which is dated 16-9-1988. Purchase price has been fixed as Rs.17.5 lakhs and this has to be paid to the coowners in accordance with the share of each one of them. On the date of agreement half a lakh of rupees was paid by the first defendant. The coowners put the first defendant company in possession of the land and permitted the company to construct buildings thereon subject to the condition that the entire sale consideration should be cleared on or before 31-3-1990. Though it was stipulated that time was the essence of the contract, plaintiff has agreed to extend the time on a condition that interest at the rate of 18% per annum would accrue on the sale consideration remaining unpaid.

(3.) Plaintiff's case is that first defendant - company failed to pay his share of sale consideration even after the extended time and hence the company has no right under the agreement as against the plaintiff. As the first defendant, who got possession of the land, started construction of the building, the suit was filed for partition to safeguard the plaintiff's right in the property.