EXPRESS TOWERS Vs. MOHAN SINGH

JUDGEMENT

(1.) This order shall dispose off plaintiffs' application under Order 12 Rule 6 read with Section 151 of Code of Civil Procedure for passing a decree of declaration and a decree of specific performance on the basis of admissions made by the defendants.

(2.) The plaintiffs contended that an agreement to sell dated 21.5.1987 was entered into between the plaintiffs and Sh.Mohan Singh and Smt.Jeet Kaur, defendant Nos.1 and 2 for the purchase of property No.B-7/118, Safdarjung Enclave Extension, New Delhi for a sale consideration of Rs.23,50,000/- out of which Rs.1 lakh was paid to defendant Nos.1 and 2 at the time of entering into agreement to sell. It was asserted by the plaintiffs that the provision of Chapter XXC of Income Tax Act, 1961 was applicable in respect of the purchase of the property. Therefore, the plaintiffs and the defendants Nos.1 and 2 filed necessary application on 27th May, 1987 in form No.37(I) with the appropriate Income Tax authorities for 'No objection certificate' for sale of the property. However, on the application of the defendant Nos.1 and 2, the Income Tax authorities instead of granting 'No objection certificate', passed an order dated 10.07.1987 for pre-emptive purchase of the property.

(3.) Against the said order of pre-emptive purchase of property, a civil writ petition No.2275/87 was filed by the plaintiffs for quashing the order of Income Tax authorities dated 10.7.1987 for pre-emptive purchase of the property of defendant Nos.1 and 2. By an interim order dated 26.8.1987, the Income Tax Authorities who had taken the possession of the property were directed to maintain the status quo and by another order dated 8th May,1989 the Income Tax authorities were allowed to retain possession which was taken by them on 20th August,1987.