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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 ..... New Delhi. By the impugned letter, the petitioner was requested to vacate the premises within 10 days and hand over possession to the officers of the Appropriate Authority. 2. The petitioner claims and states that in 1976 he was inducted as a tenant in the said portion of the property and has been in occupation since then. The petitioner claims that he is a protected tenant under the Delhi Rent Control Act, 1956 and had successfully resisted attempts of eviction by the erstwhile landlord and owner M S Bhatnagar and Madhuri Bhatnagar. 3. The aforesaid erstwhile owners entered into an agreement to sell with a third person and had filed Form 37-I on 27th September, 1996 before the Appropriate Authority. By an order dated 26th March, 1997 und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 269UE must be read without the expression 'free from all encumbrances' with the result that the property in question would vest in the Central Government subject to such encumbrances and leasehold interests as are subsisting thereon except for such of them as are agreed to be discharged by the vendor before the sale is completed. XXXX As we have stated earlier, where an agreement for sale provides that the property is intended to be sold free of all encumbrances or leasehold rights, the order for purchase of such property under section 269UD(1) in the said Chapter would result in the said property vesting in the Central Government free of such encumbrances or leasehold interests. In such a case, the holders of the encumbrances or leasehol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the occupation of a bona fide tenant." The Karnataka High Court concluded that (page 252) : "on the facts and circumstances set out above, in so far as the tenant is concerned, the term of the sale agreement providing for delivery of vacant possession should be read down as only providing for delivery of vacant possession of the remaining portions of the premises. . . . " The said view of the learned single judge of the Karnataka High Court is not in consonance with the reasoning of this court in C. B. Gautam's case [1993] 199 ITR 530. The position has been clearly stated by this court in the judgment as follows (at page 560 of 199 ITR) : " The holders of the encumbrances or leasehold interests which would be destroyed in this m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f monthly tenancies, such tenancies would continue even on an order for purchase by the Central Government being made by the Appropriate Authority concerned under section 269UD(1) ; but such tenants would lose the protection given to tenants under the rent protection laws because such laws are not made applicable to properties owned by the Central Government with the result that their tenancies could be terminated by the Central Government." (emphasis* supplied)." 7. In the present case, the Revenue has not placed on record the agreement to sell, which was subject matter of Form 37-I. It is not the case of the Revenue that the property was to be sold "free from all encumbrances". On the other hand, the case set up by the Revenue in the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roperty. 9. At this stage, ld. counsel for the petitioner states that the petitioner is a widow and about 83 years of age. She has been staying in the property since 1976. He states that the petitioner and her children will file an undertaking in this Court that they shall vacate the premises on or before 30th November, 2012. The said undertaking will be filed by Shiela Sen Gupta within two weeks and by her children within 4 weeks as it is stated that one of the children is residing abroad. The property will not be sub-let or transferred. The petitioner will continue to pay rent/occupation charges/damages at the rate of existing rate. In case there are any arrears, the same will be paid within a period of one month. 10. We are inclined to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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