SANJEEV SETHI Vs. UNION OF INDIA

JUDGEMENT

(1.) The challenge in this writ petition is to the order passed under Section 269 UD(1) by the Appropriate Authority under the Income-tax Act (respondent No. 2), whereby it has decided to purchase the flat which was to be sold pursuant to a letter of allotment which had been issued by M/s Ansal Propel ties and Industries Ltd. (respondent No. 4) in favour of the petitioner.

(2.) Briefly stated the facts are that one Smt. Satyawanti Dhawan (respondent No. 5) is the owner of plot No. 6, Jantar Mantar Road, New Delhi. On 4th September, 1979 she entered into an agreement with M/s Competent Builders. As per the terms of the said agreement M/s Competent Builders was to develop this property and construct a multi-storeyed residential building. According to the terms of the agreement the entire building was to be constructed by M/s Competent Builders out of its own resources and 35% of the saleable area on all the floors was to be allotted to the owner. The balance area could be sold by Competent Builders. Both the parties to the agreement were free to sell their respective shares and Clause 24 of the said agreement provided that the owner had to execute an irrevocable power of attorney in favour of the builder to do all necessary acts and things required for approaching the public and all Govt., and local authorities for sanction of the plans etc. and also "for execution of sale agreements in favour of the purchasers of the flats or their assigns or nominees and to do all necessary acts, and things on behalf of the owners.'

(3.) One Navneet Sethi, brother of the petitioner, applied for allotment of a flat. On 1st December, 1979 a letter of allotment was issued in favour of Navneet Sethi whereby flat No. 308 was allotted to him. The approximate covered area of this was 1050 sq. ft. and in the recital of the letter of allotment it was stated that Competent Builders had entered into an agreement dated 4th September, 1979 with the owner and it was by virtue of this agreement and the general power of attorney executed by the owner which had empowered the Competent Builders to sell space on ownership basis in the proposed multistoreyed building in favour of different persons including Navneet Sethi. The allotment so made was called provisional but this was done because the clause of the allotment letter stated that there could be changes made by the sanctioning authorities or the architects or the builders, and, therefore, there could be variation in the area or even the price. It was further stated that in case of deletion of the flat from the sanctioned plan, no claim would be made in respect of any interest and the amount received would be refunded by Competent Builders.