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2018 (2) TMI 1295 - SC - Income TaxSpecific performance of contracts - Non performing part of busniss - High Court took the view that rather than Rakesh Kumar, it was the defendants who were not willing to execute the sale deed as the requirement in terms of the agreement to sell that the defendants were obliged to obtain a ‘no objection certificate’ for executing the sale deed but they had not taken any steps in that regard - Held that:- As gone through the agreement to sell dated 29th May, 1986 and the relevant clause of the contract is remarkably vague and reads as follows: “That the vendors will obtain the no objection certificate from the authorities concerned and will inform the vendee by registered post after getting the income tax clearance certificate.” There is nothing to indicate the nature of the “no objection certificate” that the vendors were required to obtain and who were the authorities from whom the “no objection certificate” was required, nor is there any indication of the purpose for which the “no objection certificate” was required. Similarly, there is no indication about the nature of the income tax clearance certificate required and for what purpose. This clause appears to have been inserted in the agreement to sell without any application of mind and it is quite possible, as alleged by the vendors that the agreement to sell was ante-dated after the introduction of Section 269-UC in the Income Tax Act, 1961. However, we need not go into this possibility in view of the vague nature of the clause. High Court was in error in setting aside the judgment and decree of the Trial Judge. Accordingly, the appeal is allowed and the judgment and decree passed by the High Court is set aside.
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