TMI Blog2001 (8) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... pril 18, 1991, a purchase order was passed by the Appropriate Authority and, on the same day, the owner of the land was directed to surrender possession of the subject property. In that regard, a writ petition was preferred before the High Court and on March 1, 1993, that writ petition was allowed in the light of the decision of this court in C. B. Gautam v. Union of India [1993] 199 ITR 530. Subsequent to the decision in the said writ petition decided by the High Court (see [1998] 231 ITR 318) a show-cause notice had been issued disclosing the following facts : In the case of subject property, the apparent consideration is ₹ 1,75,00,000. The plot area is 3595.32 sq. mts. including 830.95 sq. mtrs. declared as excess land under ULCR Act. The net plot area comes to 3595.32-830.95=2764.37 sq. mtrs. If salvage value of ₹ 1,64,445 is considered, the achieved land rate works out to ₹ 1,75,00,000-1,64,445 = 1,73,35,555 divided by 2764.37 = ₹ 6,271 per sq. mtr. We may compare the sale instance of property at 60, Friends Colony (East) which was agreed to be sold on December 5, 1990, for apparent consideration of ₹ 2.65 crores. If the depreciated value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han ₹ 14,000 per month as rent for the business premises and was in dire need of finances to carry on his business gainfully and successfully. The transferor had no hope of getting the property vacated from the tenant, Shri Vinod Jain who was very affluent, possessed of great political influence and at whose instance the action to acquire the property has been initiated. It was contended that the sale instances cited in the notice arc not comparable properties because the property comprised in 60, Friends Colony, is a vacant property and the actual physical and vacant possession of the property was handed over and delivered to the purchaser while the subject property is a tenanted property occupied by a person who cannot be easily evicted. There were dissimilarities between the subject property and the property comprised in 60, Friends Colony, and, therefore, the Department ought not to have compared the same. Thereafter, they set out a dozen instances where the method of valuation adopted was different. It was also contended that the valuation report prepared by the Departmental Valuer is not a bona fide one. Thus, it is ultimately submitted that the conclusions of the Depar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department and in fact without any protest received a sum of ₹ 1.75 crores from the Department and a further amount of ₹ 14,03,500 by way of interest. He had accepted the amount without any protest and has not contested the matter either in the High Court or in this court and thereafter the said S. L. P. (C) No. 6040 of 1994, filed by the Appropriate Authority along with other connected matters was disposed of as having become infructuous in view of the auction sale held and confirmation thereof by this court. One of the learned judges of the High Court (K. Ramamoorthy J.), apart from referring to the various facts arising in the case, the pleadings, the contentions put forth before the court, some of the decisions of different High Courts and of this court on the matter of law, did not specifically deal with the contentions arising in the case on analysis of the facts arising in the matter. As regards the contentions of the impact of the sale that had taken place pursuant to the permission granted by this court, which stood confirmed by an order of this court, the learned judge stated that the same could not come in the way of deciding the writ petition as the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details of the report in the show-cause notice itself which was issued and other materials having been made available to the party concerned, we do not think that there is justification for the High Court to interfere with the same on that ground. The grievance of the petitioners before the High Court was that not one of the methods but the combination of different methods of valuation such as comparative sales, cost or income or rent or developer's approach should have been adopted. The High Court, in fact, examined the facts, materials and the valuation report of the Appropriate Authority to come to the conclusion that the comparisons made were wrong or otherwise but that was not the procedure to be adopted as indicated in Sudha Patil's case [1999] 235 ITR 118 (SC). Thus, the order made by the High Court needs to be set aside. Though serious arguments have been advanced by learned counsel appearing for the parties in this court as to the mode of valuation, the nature of the power under Chapter XX-C of the Act, the scope of judicial review, the requirements to be taken note of in the valuation and a large number of decisions are referred to, we do not think there is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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