I O L LIMITED Vs. S C PRASAD

JUDGEMENT

(1.) RULE returnable forthwith. Shri Sethna and Shri Kalyaniwala waive service on behalf of respondent Nos. 1 to 4 and 5 respectively. By consent, petition taken on board and called out for hearing. Heard counsel.

(2.) BY this petition under Article 226 of the Constitution, the petitioners are challenging legality of order dated June 17, 1994 passed by Appropriate Authority in exercise of powers conferred under section 269-UD of Income Tax Act. The facts which gave rise to the passing of the order are required to be briefly stated to appreciate the grievance of the petitioners.

(3.) THE petitioners are owners of property bearing City Survey Nos. 168 and 168/1 to 168/76 situated at L. B. S. Marg, Ghatkoper (West), Bombay. The petitioners agreed by agreement dated March 10, 1994 to transfer development rights in respect of part of the property to respondent No. 5. The earnest money agreed to be paid under the agreement was Rs. 1,15,00,000/- and the balance consideration of Rs. 10,36,00,000/- was to be paid within five months from the date of signing of the agreement, with a grace period of one month, subject to the following formalities being complied with--