JASPAL KAUR Vs. UNION OF INDIA

JUDGEMENT

(1.) This order will dispose of an application filed by respondent No.2, the Appropriate Authority under the Income Tax Act, 1961 (for short the Act) seeking certain directions. It is necessary to give a brief background before the application can be disposed of.

(2.) An agreement to sell with respect to property being a plot of land bearing No.115, Sector 36-A, Chandigarh, was entered into between the petitioners in the writ petition and respondent No.3 on 25th October, 1989. The consideration agreed upon was Rs.l5 lacs out of with a sum of Rs. 1,50,000.00 was paid by the petitioners (purchasers) to respondent No.3 (vendor) at the time of the agreement. On 5th November, 1989 the vendor and the vendee filed a statement in Form No. 37(1) alongwith an agreement to sell with respondent No.2, the Appropriate Authority for obtaining the "No Objections in terms of Chapter XX C of the Act. On 8th June, 1990, respondent No.2 passed an order for pre-emptory purchase of the property. Possession of the property was delivered to respondent No.2 on 20th June, 1990 in pursuance of the said order. The petitioners, vendees challenged the said order by filing a writ petition in this Court in July, 1990. In pursuance of an order passed in the said writ petition the balance amount of sale consideration, i.e. Rs;13,50,000.00 was paid by respondent No.2 to the vendor, respondent No.3 on 28th February, 1992. On 23rd January, 1995 the said writ petition filed by the petitioners was allowed and the order of the Appropriate Authority was set aside. The case was, however, remanded back to the Appropriate Authority for fresh consideration in view of the decision of the Supreme Court in C.B. Gautam vs. Union of India & Ors. In view of the remand order the petitioners were served with a shew cause notice dated 5th April, 1995 requiring the petitioners to show cause why the property be not acquired. The petitioners filed a reply to the show cause notice on 18th April 1995. On 27th April 1995 a fresh order for purchase of the property was passed by the Appropriate Authority. This order was again challenged by the petitioners by way of the present writ petition filed on 23rd May, 1995.

(3.) On 25th May, 1995 this Court passed an order regarding maintenance of status quo with respect to the property which continued to be in possession of the Appropriate Authority all through. The writ petition was finally disposed of on 13th February, 1998 when this Court quashed the order dated 27th April, 1995 and directed the Appropriate Authority to issue the "No Objection Certificate" in terms of Section 269 UL (3).