CHAND V RAHEJA Vs. UNION OF INDIA

JUDGEMENT

(1.) Leave granted.

(2.) In respect of the property known as "modi Bungalow", Napean Sea Road, Bombay, an agreement dated 24/10/1993 was entered into by Respondents 5 and 6, with the appellants for its sale for a consideration of Rs. 19.25 crores payable in instalments. On 30/12/1993. the appropriate authority issued a notice under Section 269-UD (1-A) of the Income Tax Act, 1961 calling upon the transferors and transferees to show cause as to why the central government should not make an order for purchase of the property. On 27/1/1994, an order was made by the appropriate authority under Section 269-UD (1) of the Act for purchase of the property at a discounted value of Rs. 18,68,54,154. 00. By virtue of Section 269-UD (1, on making of the said order by the appropriate authority, the property vested in the central government on the date of the order.

(3.) In terms of the purchase order made under Section 269-UD (1, the central government was required to pay the amount of Rs. 18,68,54,154. 00 as the consideration for the said property in accordance with the provisions of thestatute. It may be mentioned that the sum of Rs. 18,18,54,154. 00 alone was tendered by a cheque dated 25/2/1993 sent by speed post to the transferors which was delivered on 1/3/1994 against the amount of consideration of Rs. 18,68,54,154. 00 payable in terms of the said purchase order made by the appropriate authority. In other words the amount so paid on 1/3/1994 to the transferors by the central government fell short of the total consideration by the sum of Rs. 50 lakhs only. The balance amount of Rs. 50 lakhs was paid by the central government to the transferors much later on 8/4/1994 only. The only point involved for decision is the effect of non-payment of the balance amount of Rs. 50 lakhs along with the amount which was paid by cheque delivered to the transferors by speed post on 1/3/1994.