9911796707
Advanced Search 
TMI Blog1997 (11) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... ransfer. On September 7, 1995, the appellant entered into an agreement with the executors of Shri S. R. Unger for the purchase of urban property in the City of Madras (now Chennai) for a sum of Rs. 5,50,00,000. The extent of the property is 23.5 grounds comprising 5,239 sq. mts. of vacant land and 954 sq. mts. of built up area. On the same date, i.e., September 7, 1995, an application in Form No. 37-I was filed before the Appropriate Authority, Madras. The Appropriate Authority addressed a letter dated October 30, 1995, to the intending transferors and transferees seeking certain clarifications in respect of nine points mentioned in the said letter. One of the said points was that the extent of the property under transfer is about 24 groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the respondents to reconsider the matter and pass appropriate orders keeping in view the said judgment. The respondent filed an appeal (W. A. No. 429 of 1996 ; Government of India v. Jagadish A. Sadarangani [1996] 221 ITR 338 (Mad)), against the said judgment of the learned single judge which has been allowed by the Division Bench of the High Court by the impugned judgment dated June 21, 1996. The High Court has held that keeping in view sub-section (4) of section 269UC, the order passed by the Appropriate Authority was valid since the agreement was unenforceable and void being in violation of the provisions of section 6 of the Urban Ceiling Act. Feeling aggrieved by the said judgment of the Division Bench of the High Court the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re it is found that the statement referred to in sub-section (2) is defective, the appropriate authority may intimate the defect to the parties concerned and give them an opportunity to rectify the defect within a period of fifteen days from the date of such intimation or within such further period which, on an application made in this behalf, the appropriate authority may, in its discretion, allow and if the defect is not rectified within the said period of fifteen days or, as the case may be, the further period so allowed, then notwithstanding anything contained in any other provision of this Chapter, the statement shall be deemed never to have been furnished." Sub-section (4) was inserted in section 269UC by the Finance Act, 1995, with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are open under the scheme of the legislation.--(i) The Union of India through the appropriate authority could buy the property, or (ii) in the event of its decision not to buy, it has to issue a 'no objection certificate' leaving it open to the parties to deal with the property. In that view of the matter the High Court was right in its conclusion." In the impugned judgment, the Division Bench of the High Court has taken note of the said decision of the Delhi High Court as well as the aforementioned observations of this court while dismissing the special leave petition against the judgment of the Delhi High Court but has observed that the position has changed as a result of the amendment which has been introduced in section 269UC by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority exercising statutory power cannot be compelled to ignore the basic defect in the agreement, which also disables the appropriate authority to make its decision as to pre-emptive purchase, on determining the real market value, which will be the basis for taking a decision regarding pre-emptive purchase. As in the instant case, until the proceeding is completed as per section 11 of the Urban Land Ceiling Act, no transaction of sale or purchase can take place, the appropriate authority cannot be expected or compelled to act in contravention of section 6 of the Urban Land Ceiling Act and to make a decision as to pre-emptive purchase. Such an interpretation would not only defeat the very object of sub-section (4) of section 269UC of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... half. The said provision in sub-section (4) of section 269UC envisages a defect which can be removed/rectified within the period of fifteen days or the further period which is given by the appropriate authority. A defect regarding the legality and validity of the agreement which renders the agreement void and unenforceable cannot be rectified. Since a defect which cannot be rectified was not within the contemplation of the Legislature in enacting sub-section (4) of section 269UC a defect regarding the legality or validity of the agreement would not fall within the ambit of the said provision. The Objects and Reasons of the Bill which was enacted as Finance Act, 1995, also do not give an indication that by inserting sub-section (4) in sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
