KAMAL K. OSWAL & ANR. Vs. KAILASH KANWAR

JUDGEMENT

(1.) THIS common judgment will dispose of RFA (OS) No. 34/2000 and RFA (OS) No. 60/2000 directed against the judgment and decree dated 26.05.2000 passed by learned Single Judge in CS (OS) No. 538/94.

(2.) SINCE both the parties felt aggrieved and impugned the judgment referred to above before us, subject matter of both the appeals being the agreement to sell dated 29.02.1988, for the sake of convenience hereinafter they would be referred to by their rank in the suit i.e. Sh. Kamal K. Oswal and Sh. Primal Oswal (Vendees) as plaintiffs and Sh. Kailash Kanwar (Vendor) as defendant. The facts are not in dispute. The parties entered into an agreement to sell in respect of property No. C -422, Defence Colony, New Delhi measuring 325 sq.yds. on 29.02.1988. The consideration for the transaction was settled at Rs. 28 lakhs and a sum of Rs. 1 lakh was paid by the plaintiffs to the defendant vide pay order no. 801555 dated 11.03.1988 drawn on Punjab and Sind Bank, Defence Colony branch, Delhi as earnest money, at the time of signing of the agreement for sale.

(3.) IN order to perform their obligation to seek necessary permission under the agreement dated 29.02.1988, the parties applied to Income Tax authorities vide application dated 11.03.1988, however, under Section 269UD (1) of Income Tax Act, vide order dated 16.05.1988, the Appropriate Authority of Income Tax passed an order of pre -emptory sale of the said property.