EXPRESS TOWERS P LTD Vs. MOHAN SINGH

JUDGEMENT

(1.) The appellants, Express Towers Pvt. Ltd. and its Director- Mr. R.C. Goel, have filed the present Appeal against the Order dated 22nd August, 2006 dismissing their application under Order XII, Rule 6 read with Section 151 of the Code of Civil Procedure, 1908 (hereinafter referred to as the Code, for short) for passing a decree of specific performance on the basis of admissions made by Mr.Mohan Singh and Smt. Jit Kaur, the respondent nos. 1 and 2 herein.

(2.) The appellants had entered into an "agreement to sell" dated 21st May, 1987 with the respondent nos. 1 and 2 for purchase of property no. B-7/118, Safdurjung Enclave, New Delhi for sale consideration of Rs.23.50 lakhs. Rs.1 lakh was paid in advance to the respondent nos. 1 and 2 out of the total sale consideration and the balance sum of Rs.22.50 lakhs remained payable. The said amount was payable by bank drafts at the time of execution of the sale deed and possession was to be given to the appellants after full payment and encashment of the bank drafts.

(3.) The Appropriate Authority-Income Tax Department by Order dated 10th July, 1987, decided to exercise its pre-emptive right to purchase the said property under Chapter XX-C of the Income Tax Act, 1961 (hereinafter referred to as the Act, for short). The Order passed by the Income Tax Department was made subject matter of Writ Petition No. 2275/1987 filed by the appellants. By an interim Order dated 26th August, 1987 it was directed that the possession of the property will be with the Income Tax Department and the same should not be disturbed. During the pendency of this Writ Petition, by an another interim Order dated 29th July, 1992, Rs. 22.50 lakhs was paid to the respondent nos. 1 and 2 by the Income Tax Department. The Court while passing the said Order noticed that Rs.1 lakh was payable to the appellants herein and the said amount would be paid whenever the appellants appear in the said proceedings.