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KERALA HIGH COURT
K. P. Jyothindranath, J
Revenue Divisional Officer, Fort Cochin – Appellant
Versus
Official Liquidator, High Court of Kerala – Respondent
A covenant can become extinct or cease to be enforceable if the parties involved agree to its termination, or if its purpose has been fulfilled or rendered irrelevant due to changes in circumstances. When a covenant is no longer needed—such as when the original reason for its creation no longer exists—it may be considered extinguished.
Additionally, if the covenant has been waived explicitly or implicitly by the parties, it is no longer required or enforceable. The doctrine of merger can also lead to the extinction of a covenant when the ownership of both the benefited and burdened estates consolidates in the same individual, thereby nullifying the need for the covenant.
Legal principles also recognize that if the covenant is superseded by newer agreements or legal changes, or if it has been discharged through legal mechanisms, it ceases to have any effect. Changes in the legal or factual context can make the continued existence of the covenant unnecessary, resulting in its extinction (!) (!) .
1This MFA is filed challenging the order of a learned Single Judge in Company Application No. 306 of 1986 in Company Petition No. 11 of 1983.
2 The Revenue Divisional Officer, Fort Cochin, who is the appellant herein filed the above application under R.7 of the Companies Court Rules, praying to cancel the sale effected pursuant to a notice of sale dated 15-10-1985 published by the Official Liquidator, High Court of Kerala in respect of 1.35 acres of land specified in the Agreement executed between the Government and M/s. Brunton and Company (Engineers) Ltd. now in liquidation and to direct the Official Liquidator to confine the sale only to the structures standing on the land and to surrender vacant site to the Government after declaring that the lease is terminated.
3The material averments contained in the affidavit filed in support of the above application are as follows:
4A lease agreement was executed between the Director of M/s. Brunton & Company (Engineers) Ltd., (in liquidation) and the Government, covering 1.35 acres of land in Sy. No. 8/9/2 and 1173 in Fort Cochin for a period of 50 years from 1-5-1954. This lease deed was only in continuation of an earlier lease deed execute
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