DAMODAR GULABRAI BELANI Vs. S C PRASAD

JUDGEMENT

(1.) The petitioners in Writ Petition No.2507 of 1993 were the owners of property bearing Plot No.60, Survey No.85, C.S. No.1362, 1362/1 to 1362/8 admeasuring 1819.41 square metres together with bungalow and outhouse situated at Versova, Andheri (West), Bombay - 400 058 (hereinafter will be referred to 'as the property'). These petitioners will hereinafter be referred to as 'the owners'.

(2.) The owners entered into an agreement dated 13th June, 1983 with one Sardar Bhupender Singh Sethi and Sardar Harbanssingh Kohli (hereinafter be referred to 'as the first purchasers'). By the agreement, the petitioners agreed to sell to the first purchasers the property with the structures existing thereon. By a supplementary agreement entered into on 24th September, 1986, it was agreed that the owners would be liable get vacant possession of the premises in occupation of G.K. Makhijani. The owners and the first purchasers applied to the Appropriate Authority for no-objection certificate in respect of the agreement dated 13th June, 1983 under Chapter XX-A of the Income Tax Act. By an order dated 24th February, 1987, the Competent Authority certified that it has no objection to the transfer of the said property. Subsequent to the agreement, one of the first purchasers (Sardar Bhupender Singh Sethi) succeeded in getting vacant possession from five tenants after litigation. The owners, thereafter by an agreement dated 11th June, 1993 agreed to sell the property to M/s.Carlton Properties Private Limited (hereinafter to be referred to 'as the second purchaser). The first purchasers were parties to the said agreement as confirming parties. The main terms of the agreement, according to the owners, are as under :

(3.) On 15th June, 1993, the owners, first purchasers and second purchasers filed Form No.37-I with the Appropriate Authority. On 29th July, 1993, according to the petitioners, the District Valuation Officer submitted a report on the valuation of the said property. Respondent Nos.1 to 3 - Members of Appropriate Authority, inspected the property on 24th August, 1993. On 2nd September, 1993, the owners received the show cause notice dated 27th August, 1993 calling upon them to show cause why the property may not be acquired under Chapter XXC of the Income Tax Act. In the show cause notice, it was stated that the owners may appear before the Appropriate Authority on 14th September, 1993. Reference was made to the agreement dated 11th June, 1993 filed with Form No.37-I. Reference was also made to three sale instances. Based on the F.S.I. available and taking the consideration payable, the rate was worked out at Rs.1,356/- per square foot. Taking the valuation done by the Valuation Officer, it was observed that there is significant undervaluation of the property. It was further mentioned that the consideration payable by the Government works out to Rs.1,52,62,560/-. The other contentions need not be referred to.