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TMI Blog2011 (11) TMI 490X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of section 269UD - the Constitutional Bench struck down the words “free from encumbrances” in sub-section 1 of Section 269UE, and it must be read without the expression 'free from all encumbrances". Further, Central Government is entitled to initiate eviction proceedings under the Public Premises (Eviction of Unauthorized Occupation) Act, 1971 and the protection of Delhi Rent Control Act, 1956 is no longer available. At this stage, petitioner filed an undertaking that property would be vacated on or before 30th November, 2012. Keeping in view the old age of the petitioner and other factors, such undertaking is accepted and in case of breach of undertaking it will be open to the respondent to forcefully evict the petitioner or any p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 269 UD (1), the entire property including the tenanted portion was purchased by the Central Government. Pre-emptive purchase was made subject matter of challenge in writ proceedings but the said writ petition was dismissed on 4th August, 2005. The said decision has become final. Thus the order under Section 269 UD(1) of the Act has also attained finality. 4. The petitioner herein cannot challenge/question the order under Section 269 UD(1). The question is what are rights and obligations of a tenant when the property has been acquired under the aforesaid section. This issue is no longer res integra and has been settled by Supreme Court in C.B. Gautam Vs. UOI (1993) 199 ITR 530 (SC) and the Constitutional Bench struck down the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s would have to obtain their compensation from the amount awarded as the purchase price to the owner of the property. This appears to be a fair construction because, in such a case, the apparent consideration can be expected to include the value of such leasehold interests or encumbrances " 6. This aspect was further clarified and decided by the Supreme Court in Adair Dutt and Co. India Pvt. Ltd. v. Appropriate Authority (1996) 222 ITR 438 (SC) as under : It was not disputed before us that the agreement for sale executed by the erstwhile owner, regarding the property in question, contained a stipulation that the property would be sold free of all encumbrances. However, learned counsel tried to get support for this contention from a decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said to be persons interested as contemplated in clause (e) of section 269UA. In this connection, we may refer to sub-section (5) of section 269UE which declares that nothing in the said section which deals with the vesting of property in the Central Government shall operate to discharge the transferor or any other person (not being the Central Government) from liability in respect of any encumbrances on the property and, notwithstanding anything contained in any other law for the time being in force, such liability may be enforced against the transferor or such other person. This provision makes it amply clear that, in the case we have just referred to, the encumbrance holder or the holder of the leasehold rights could claim the fair valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idavit is that the tenancy period agreed between the erstwhile owner/landlord and the petitioner had come to an end on 14th November, 1978 and after the said date, the petitioner was a statutory tenant or month to month tenant. In other words, the stand put up by the Revenue is that they are entitled to evict the petitioner from the portion in his occupation. As the property now vests with the Central Government, the Delhi Rent Control Act, 1956 is not applicable. In the counter affidavit the Revenue has stated that as per the Public Premises (Eviction of Unauthorized Occupation) Act, 1971 notice can be issued and the petitioner can be evicted. This is the correct position in law. 8. In view of the stand taken by the Revenue in the coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said undertaking keeping in view the old age of the petitioner and also the factum that proceedings under Public Premises (Eviction of Unauthorized Occupation) Act, 1971 may take some time before an order is passed. The undertaking will bring this litigation to an end and curtail any further proceedings which may arise. It is clarified that in case there is any breach in the undertaking it will be open to the respondent to forcefully evict the petitioner or any person in occupation of the premises without taking recourse to eviction proceeding under the Public Premises (Eviction of Unauthorized Occupation) Act, 1971. Undertaking will be executed as an eviction order under the said Act. Copy of the undertaking will be also furnished to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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