HARJINDER KAUR Vs. USHA GUPTA

JUDGEMENT

(1.) A suit being Suit No. 294/74 for specific performance for an agreement to sell, came to be filed by Seth Narain Singh and others against Smt. Usha Gupta and another in respect of property bearing No. 28 situate at khewat No. 1 Khatauni N 1392 Khasra No. 2022/1558 measuring 1583 sq. yards - 1402 sq. meters approximately situate on Pusa Road, Ajmal Khan Road, Karol Bagh, New Delhi (hereinafter referred to as the 'property'). It is suggested that the suit came to be decreed on 19th May, 1978 and the Execution Proceedings No. 90 of 1978 for the execution of the said decree. It is also suggested that the plaintiff (decree-holder L.R.of deceased Narain Singh) pursuant to the decree deposited the consideration amount for getting the sale deed in her favour. At that stage, the Tax Recovery Officer, Mayur Bhawan, New Delhi vide their letter No. TROXX, New Delhi dated 17.6.1988, addressed to the Registrar, Delhi High Court, New Delhi preferred a claim to the sale proceeds amounting to Rs. 6,45,000.00, lying with the Registrar, Delhi High Court, New Delhi towards there covery of outstanding demand against Shri J.C. Gupta, resident of 204 Ashutosh Building, 9th Floor, Napean Sea Road, Bombay, which has led to the filing of this E.A. 142 of 1989 under Order 21 Rule 58 of the Code of Civil Procedure objecting to the attachment of the amount of Rs. 6,45,000.00. The objector is judgment-debtor No. I (original defendant).

(2.) It has been the say of the objector (judgment-debtor No. I ) that the objector was the absolute owner of the property by virtue of Gift Deed dated 16th March, 1970registered on 18th January, 1981 in the office of the Sub-Registrar, Bombay; that the said property was gifted to her by her mother-in-law Smt. Shanti Devi wife of Shri J.C. Gupta who was the previous absolute owner of the property; that the objector as an absolute owner had entered into an agreement to sale dated 17th May, 1970 with Seth Narain Singh for a total consideration of Rs. 7,45,000.00. That Seth Narain Singh on 28th July, 1972 filed a suit for specific performance against the objector. After the death of Seth Narain Singh,. his legal representatives were brought on record in Suit No. 294 of 1972 and the suit was ultimately compromised between the parties and the compromise decree on 19th May, 1978. That the statement of this objector was also recorded on 19th May, 1978. That in October-November, 1988 Mr. J.C. Gupta her father-in-law told her that the Income-Tax Authorities had issued notice for attachment to him in respect of the said property and till then the objector was not aware of the execution of the sale deed and the deposit of the sale proceeds in the registry of the Delhi High Court. It is stated that the Income-Tax Authorities had neither issued notice to the objector nor they had filed any proper application before this Court regarding their claim to the sale proceeds of the said property. That the Income-Tax Authorities cannot withdraw the aforesaid amount of Rs. 6,45,000.00 in view of the fact when no amount whatsoever is due and payable from the objector to the Income-Tax Department. That the amount is the exclusive property of the ob)ector and the Income-Tax Authorities have no concern with the said amount. In substance, objector contends that she is the absolute owner of the property and Mr. J.C. Gupta has no right, title or interest in the said property and, therefore, the amount is not liable to be attached on account of the tax liabilities of Mr. J.C. Gupta or any other person.

(3.) It is not in dispute that the property originally belonged to Mr. J.C. Gupta, 104 father-in-law of the objector and that the said property came to be gifted to Smt. Shanti Devi wife of Mr. J.C. Gupta in the year 1949. It is also admitted position that the property came to be gifted by Smt. Shanti Devi to her daughter-in-law, the objector (judgement-debtor No. 1) on 16th March, 1970 and thereafter the objector Smt. Usha Gupta entered into an agreement to sale the said property to Seth Narain Singh and the said property came to be conveyed to the legal representatives of the deceased Seth Narain Singh under the Court decree for specific performance of the agreement and the sale proceeds deposited with the Registrar, Delhi High Court, New Delhi and then the claim by the Income-Tax Department against the sale proceeds for the recovery of tax liabilities of Mr. J.C. Gupta.