B. VIJAY VENKATASAMY Vs. B. LAKSHMIT NARAYAN

JUDGEMENT

(1.) This Civil Miscellaneous Appeal challenges the order passed by the Principal District Judge, Coimbatore in Arbitration Original Petition No.513/2011 on 12.12.2012.

(2.) The respondent M/s. Jain Housing and Constructions Ltd is a builder. The appellants 1 and 2 are brothers while the appellants 3 and 4 are their son and daughter respectively.

(3.) An extent of 0.96-1/2 acres in S.F.No.413/2 Singanallur village, Coimbatore South taluk belongs to the appellants. The appellants entered into an agreement with the respondent for joint venture and development of the property on 02.03.2006. The respondent was to construct a residential complex of which they were entitled to 62% of the undivided share and the appellants to 38%. The cost of construction of 38% share of the appellants was to be treated as the cost of the 62% undivided share of land. The appellants had received a sum of Rs.50,00,000/- from the respondent as refundable security deposit. The agreement envisaged completion of the project within 18 months from the date of obtaining approval of the Coimbatore Municipal Corporation/DTCP/LPA. Towards enabling the respondent dealing with the property the appellants executed a General Power of Attorney on 28.02.2006 and Specific power of attorney on 02.03.2006. Clause 8 of the agreement provided that respondent would be liable to pay damages at Rs.5/- per square feet per month till completion and handing over of the possession of the apartment in the event of delay in completion of construction.