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Showing contexts for: common plot in Shah Nitinkumar Dhirajlal vs Patel Mahendrakumar Rameshchandra @ ... on 7 April, 2016Matching Fragments
17. In the same judgement, nextly, the Honble Supreme Court had to consider the question as to whether the coowners are together a person.
9. Normally, where a group of persons have not become coowners by their own volition with a common purpose, they cannot be considered as a person. When the children of the owner of a property succeed to his property by testamentary succession or inherit by operation of law, they become co owners, but the coownership is not by volition of parties nor do they have any common purpose. Each can act in regard to his/her share, on his/her own, without any right or obligation towards the other owners. The legal heirs though coowners, do not automatically become an association of HC-NIC Page 23 of 61 Created On Thu Dec 21 23:14:06 IST 2017 R/SCR.A/2750/2015 ORDER persons/body of individuals. When different persons buy undivided shares in a plot of land and engage a common developer to construct an apartment building, with individual ownership in regard to respective apartment and joint ownership of common areas, the coowners of the plot of land, do not become an association of persons/body of individuals, in the absence of a deeming provision in a statute or an agreement. Similarly, when two or more persons merely purchase a property, under a common sale deed, without any agreement to have a common or joint venture, they will not become an association of persons/body of individuals. Mere purchase under a common deed without anything more, will not convert a co ownership into a joint enterprise. Thus when there are ten coowners of a property, they are ten persons and not a body of individuals to be treated as a single person. But if the coowners proceed further and enter into an arrangement or agreement to have a joint enterprise or venture to produce a common result for their benefit, then the coowners may answer the definition of a person.
Each can act in regard to his/ her share, on his/her own, without any right or obligation towards the other owners. The legal heirs though coowners, do not automatically become an 'association of persons/ body of individuals'. When different persons buy undivided shares in a plot of land and engage a common developer to construct an apartment building, with individual ownership in regard to respective apartment and joint ownership of common areas, the co owners of the plot of land, do not become an 'association of persons/ body of individuals', in the absence of a deeming provision in a statute or an agreement. Similarly, when two or more persons merely HC-NIC Page 43 of 61 Created On Thu Dec 21 23:14:06 IST 2017 R/SCR.A/2750/2015 ORDER purchase a property, under a common sale deed, without any agreement to have a common or joint venture, they will not become an 'association of persons/body of individuals'. Mere purchase under a common deed without anything more, will not convert a coownership into a joint enterprise. Thus when there are ten coowners of a property, they are ten persons and not a 'body of individuals' to be treated as a 'single person'. But if the coowners proceed further and enter into an arrangement or agreement to have a joint enterprise or venture to produce a common result for their benefit, then the coowners may answer the definition of a 'person'.
"29. Normally, where a group of persons have not become coowners by their volition with a common purpose, they cannot be considered as a 'person'. When the children of the owner of a property succeed to his property by testamentary succession or inherit by operation of law, they become coowners, but the coownership is not by volition of parties nor do they have any common purpose. Each can act in regard to his/her share, on his/her own, without any right or obligation towards the other owners. The legal heirs though coowners, do not automatically become an 'association of persons/ body of HC-NIC Page 53 of 61 Created On Thu Dec 21 23:14:06 IST 2017 R/SCR.A/2750/2015 ORDER individuals'. When different persons buy undivided shares in a plot of land and engage a common developer to construct an apartment building, with individual ownership in regard to respective apartment and joint ownership of common areas, the co owners of the plot of land, do not become an 'association of persons/body of individuals', in the absence of a deeming provision in a statute or an agreement. Similarly, when two or more persons merely purchase a property, under a common sale deed, without any agreement to have a common or joint venture, they will not become an 'association of persons/body of individuals'. Mere purchase under a common deed without anything more, will not convert a coownership into a joint enterprise. Thus when there are ten coowners of a property, they are ten persons and not a 'body of individuals' to be treated as a 'single person'. But if the coowners proceed further and enter into an arrangement or agreement to have a joint enterprise or venture to produce a common result for their benefit, then the coowners may answer the definition of a 'person'."