TMI Blog2003 (5) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... , the appropriate authority has two options available to it, namely, (i) either to purchase a property by exercising the right of preemptive purchase by making an order under section 269UD; or (ii) if it is not inclined to purchase the property, to issue a "no objection certificate". It has no third option – Thus it is held that, it cannot also go into the question of validity of the agreement to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hi, for a total consideration of Rs. 66 lakhs. As required under section 269UC of the Act, on September 28, 1990, the petitioners and the said respondent filed a statement in Form No. 37-I, prescribed under the Income-tax Rules, with the appropriate authority for issuance of "no objection certificate", in order to enable respondent No.3 to execute the sale deed in favour of the petitioners. The ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority had no jurisdiction to go into the question of legality or validity of the agreement to sell executed between the petitioners and respondent No.3 and, therefore, the impugned order is void ab initio. It is also pleaded that since the period of two months from the date of filing of the application had elapsed, the appropriate authority was obliged to issue the requisite "no objection cer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 269UD or (ii) if it is not inclined to purchase the property, to issue a no-objection certificate. There is no third option. (ii) The time-limit of two months specified in section 269UD(I), first proviso (within which the appropriate authority has to act), cannot be extended; (iii) If no order is passed within the prescribed time of two months, it automatically follows that a certificate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of validity of the agreement to transfer the property or the legality of the transaction or the title of the vendor. In that view of the matter, the writ petition deserves to be allowed. We order accordingly, quash the impugned order dated November 20/21, 1990, and make the rule absolute. We further direct that since a period of two months from the date of filing of the statement in Form No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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