TMI Blog1990 (11) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000 (rupees four crores fifteen lakhs) In accordance with the provisions of section 269UC, the petitioners and respondents Nos. 3 to 10 jointly filed statement in Form No. 37-1 with the appropriate authority appointed under the said Chapter for the grant of a certificate. The appropriate authority passed the impugned order dated July 19/20, 1989. In this order, it was observed that it was not certain as to which portion of the land would be surrendered to the State Government in view of the orders having been passed under the Urban Land Ceiling Act declaring 680.26 sq. metres as being surplus. It was further stated that the said agreement to sell was not capable of being made certain and was void as per section 29 of the Indian Contract Act. Furthermore, according to the appropriate authority, the agreement to sell was a contingent contract depending upon the orders of the Competent Authority under the Urban Land Ceiling Act and a no-objection certificate could not be issued in respect of an agreement which the appropriate authority had termed as void or at best contingent. The appropriate authority concluded that the statement in Form No. 37-I was premature and invalid and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gard to the legality of the proposed transaction. It was further submitted that implied and/or inherent in the exercise of the jurisdiction under section 269UD was the right of the appropriate authority to examine the legality of the proposed sale. Chapter XX-C contains provisions with regard to the purchase by the Central Government of immovable properties in certain cases of transfer. According to section 269UC, no immovable property in excess of the value of Rs. 10 lakhs shall be effected without, inter alia, the agreement being reduced to writing and a statement being furnished to the appropriate authority. Sub-section (3) of section 269UC prescribes as to what the statement should contain. Once the statement under section 269UC(3) is received, the provisions of section 269UD come into play. The said section reads as follows : "269UD. (1) The appropriate authority, after the receipt of the statement under sub-section (3) of section 269UC in respect of any immovable property, may, notwithstanding anything contained in any other law or any instrument or any agreement for the time being in force, and for reasons to be recorded in writing, make an order for the purchase by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... feror or if there was any other law which was violated by such a sale, the same was to be of no consideration to the appropriate authority except that it could take all such factors into consideration while making up its mind whether to exercise the pre-emptive right of purchase or not. The appropriate authority cannot, on grounds of alleged infringement of law, exercise its right of purchase and, at the same time, refuse to grant the certificate sought by the seller. An authority constituted under the Act can exercise only those powers which are, expressly or by necessary implication, conferred on it. The only power which is conferred on the appropriate authority under section 269UD is the power to decide whether to purchase the property or not. Of course, in exercise of this power, the authority will have other implied powers which will make such a power effective. The authority would be entitled to see material and documents like documents of title, agreements, etc., in order to satisfy itself whether the apparent consideration is proper or not in order to come to the conclusion whether to purchase the property or not. The investigation which will be undertaken by the appropri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b-section (1) of section 269UD for the purchase by the Central Government of an immovable property, or where the order made under sub-section (1) of section 269UD stands abrogated under subsection (1) of section 269UH, the appropriate authority shall issue a certificate of no objection referred to in sub-section (1) or, as the case may be, sub-section (2) and deliver copies thereof to the transferor and the transferee." Section 269UL(1) refers to a no-objection certificate being granted by the appropriate authority to the transfer of the property for an amount equal to the apparent consideration. This presupposes that when the statement is filed in Form No. 37-I, if a decision is taken not to purchase a property, then a specified certificate to this effect can be issued. When no order at all is passed under section 269UD(1), then the provisions of sub-section (3) of section 269UL come into play. This sub-section, inter alia, provides that where no order for purchase has been passed, then the appropriate authority shall issue a certificate no objection referred to in sub-section (1) of section 269UL. The language of section 269UL(3) is mandatory and this also shows that the only o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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