J K V B PROPERTIES Vs. BANARSI DAS

JUDGEMENT

(1.) LEARNED counsel for the plaintiff submitted that with the execution of the Conveyance Deed dated 18th March, 2004, the claim in the suit has been satisfied. Learned counsel for the applicant in I. A. 897/2003, however, submitted that the amount lying in Court since 20th February, 2004 should be appropriated having regard to the circumstances of the case. Learned counsel for the defendants urged that by virtue of the said order dated 4th September, 2003 before passing any final judgment, the Court has to make suitable order towards payment of interest by the plaintiff on the said balance amount i. e. Rs. 3. 55 crores which had been kept in Court.

(2.) THE facts briefly are that the plaintiff entered into an agreement to purchase industrial plot bearing Plot No. 1, Okhla Industrial Estate, New Delhi along with super structure measuring 1648 sq. mtrs. which had been originally allotted to the second defendant in the proceedings. The said second defendant according to the agreement was a unit of the first defendant.

(3.) IN terms of the agreement, the total consideration payable was Rs. 3. 7 crores of which Rs. 15 lakhs was admittedly paid at the time of the execution of the Agreement to Sell. The balance was payable, after obtaining the income tax clearance under Chapter XX-C of the then existing Income Tax Act. The Vendor agreed thereafter to execute the Conveyance Deed. The pleadings on record and the materials reveal that there is no dispute that the plaintiff was informed on 29th November, 2001 about the income tax authorities having approved the proposed sale. On 6th December, 2001, the plaintiff wrote to the Vendors seeking no objection certificate or approval from the Directorate of Industries to effectuate the sale. It is relevant here to mention that the suit property was registered; in terms of the perpetual lease deed ( a copy of which is on the record), several restrictive covenants have been placed on the Vendor, who is a lessee. Under the scheme of allotment, the Vendor was expected to obtain no objection certificate whenever it proposed to convey or transfer the property.