UNION OF INDIA Vs. STATE OF GUJARAT

JUDGEMENT

(1.) , C.J.

(2.) . Rule. Since the learned Counsel for the respondents has appeared, service of the notice of Rule is dispensed with and by consent of parties the matter is treated as listed for final hearing. The petitioner Union of India has moved this application being aggrieved by the refusal by the Registering Officer under the Registration Act, 1908, to register the document of Sale Deed presented by the petitioner on the ground that the Central Government should file necessary declaration under the Urban Land (Ceiling and Regulation) Act, 1976. Respondent No. 1 is the State of Gujarat and respondent No. 2 is the officer appointed by the State Government for the territories of the State of Gujarat in exercise of the powers under Sec. 3 of the Registration Act, 1908. It appears that certain immovable properties were sought to be transferred by some persons. The Income Tax Authority, after the receipt of the statement under sub-sec. (3) of Sec. 269 UC of the Income Tax Act, 1961, made an order for the purchase by the Central Government of such immovable properties at an amount equal to the amount of apparent consideration. After such preemptive purchase of the immovable properties by the Central Government, the said properties were put to auction and were sold but in order to make such sale effective, the sale deeds were required to be registered. The Registering Authority refused to register in view of the Circular of the Central Government dated 7/06/1976 issued in connection with the Urban Land (Ceiling and Regulation) Act, 1976. The Registering Authority insisted that the Chief Commissioner of Income Tax should file necessary declaration under the Urban Land (Ceiling and Regulation) Act, 1976. It is contended by the petitioner that, under Sec. 19 of the Urban Land (Ceiling and Regulation) Act, 1976 ceiling for vacant land is not applicable to the Central Government and sub-sec. (1) of Sec. 27 has been held as ultra vires insofar as that Section imposes restrictions on the transfer of any urban or urbanisable land with a building or a portion of such building, which is within the ceiling area. Such declaration relating to vires of sub-sec. (1) of Sec. 27 to the aforesaid extent was made by the Supreme Court in the case of Maharao Sahib Shri Bhim Singhji and Ors. v. Union of India and Ors., reported in AIR 1981 SC 234 and also in AIR 1985 SC 1650. It appears to us that the Circular dated June 7, 1976 was issued immediately after the Urban Land (Ceiling and Regulation) Act was enacted. But the same is not applicable so far as the lands and the building appurtenant thereto are held by the Central Government. In view of Sec. 19(1), Chapter III of the Act including the provisions for ceiling of vacant land, does not apply to the Central Government. Accordingly, the question of ceiling will not arise so far as the vacant land belonging to the Central Government is concerned. It, therefore, appears to us that there was no good reason for the Registering Authority to ask for declaration about the sale of land to be made by the Chief Commissioner of Income Tax and refusal by the said Registering Authority to register the document of sale was not justified. We, therefore, allow this application and direct the Registering Authority to register the Sale Deeds. Since the matter is pending for long, let the registration be done without any further delay not exceeding a month from today. Rule made absolute accordingly. There will be no order as to costs.