Decided on January 12,1983

UNION OF INDIA Respondents


A.M.AHMADI, R.C.MANKAD - (1.) Where any immovable property is subjected to acquisition under the provisions of Chapter XX-A of the Incometax Act 1961 (hereinafter called (the Act) can the tenants who are in occupation of different parts of the said property be evicted therefrom under sec. 269-I of the Act with a view to vesting it absolutely in the Central Government free from all encumbrances is the question which we are required to consider in these three petitions brought by the tenants of the acquired property. The facts giving rise to these petitions briefly stated are as under.
(2.) The property which is the subject matter of acquisition is a three storeyed building known as Shamlaji Kripa standing on a parcel of land bearing Tikka No. 8-3 Survey No. 3-7 of Revenue Survey No. 554 situate at Sayajigunj Station Road Baroda. It consists of the ground floor and three storeys. The ground floor of the said property was let sometime in November 1966 to the Union Bank of India Sayajigunj Branch Baroda on a monthly rent of Rs. 1 600 exclusive of municipal taxes. A portion of the ground floor by the side of the staircase was given on rent to Shri Manubhai S. Rajput sometime in April 1968 on a monthly rent of Rs. 125.00 for a Pan shop. The upper floors were let to the partners of Satkar Hotel and Restaurant under two separate rent notes of March 1968 in respectspect of the first floor and June 1970 in respect of the second and the third floors. The rent in respect of the first floor was fixed at Rs. 1 500 per month exclusive of municipal taxes. The rent in respect of the second and the third floors was fixed at Rs. 2 500 month exclusive of municipal taxes. The restaurant has an air conditioned hall with a capacity to accommodate 32 persons and an additional 112 persons in the remaining portion. The hotel on the second and the third floors has the capacity to accommo date 36 beds. The partners of the said concern claim to have invested a sum of Rs 1,40,000 furnishing and equipping the premises for the purpose of running a hotelcum-restaurant. According to them their monthly wage bill is around Rs. 5,000 and their annual turnover is around Rs. 7,00,000 The aforesaid three tenants who have filed the present three petitions claim that they are in occupation of different parts of the aforesaid property since the last several years.
(3.) Messrs. S. S. Parshottamdas & Company the original owners of the property in question incurred heavy debts and were not able to honour their financial commitments. As the creditors were pressing hard for payment a committee consisting of eight principal creditors was appointed to manage the affairs of the said concern. By virtue of the powers conferred on the said Committee it negotiated and finalised a deal for the sale of the said property for a sum of Rs. 4,50,000 to respondents Nos. 5 to 10. A deed of conveyance was executed in favour of the said purchasers on 27/12/1973 and the same was got registered on 18/02/1974 The petitioners contend that the entire sale consideration of Rs. 4,50,000 was utilised in discharging the debts of Messrs. S. S. Parshottamdas & Company. Under the sale deed the transferors delivered constructive possession of the property to the transferees and directed the tenants to attorn to the transferees. According to the terms of the conveyance the rent falling due till the date of the execution of the document was to be recovered by the transferors and the rent for the period subsequent thereto was to be recovered by the transferees.;

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