- (1.) THE Judgment of the Court was delivered by this appeal has been filed by the defendants in C. S. No. 248 of 2006 challenging the judgment and order passed by the learned single Judge dated 22nd January, 2008 whereby two applications filed by them seeking dismissal of the suit on the ground of limitation have been dismissed.
(2.) THE suit was filed claiming specific performance of an agreement, as recorded in agreement dated 23rd September 1988, by directing the defendants to execute and register the appropriate conveyance in favour of the plaintiff. The claim put forward by the plaintiff is that the defendants through defendant No. 1 entered into negotiation with regard to the sale of suit premises fully described in the plaint. Pursuant to the negotiations on or about 2nd August, 1988 an agreement was entered into between the parties whereby the defendants agreed to sell and the plaintiff agreed to purchase the suit premises on certain terms and conditions. Brief summary of the relevant conditions is as under: (1) The defendants shall sell the said premises to the plaintiff at or for the total consideration of Rs. 26,70,000/-only free from all encumbrances whatsoever but subject to the existing tenants. (2) Out of the total consideration the plaintiff shall pay a sum of rs. 3,70,000/- as and by way of earnest money and/or part consideration and the balance consideration money shall be paid at the time of completion of the transaction. (3) The vendor shall within three days hereof deliver all original title deeds to the Advocate of the purchaser for investigation of title and undertakes to deduce a marketable title to the property at the own cost. (4) Subject to the vendors making out a marketable title to the said premises, the purchase shall be completed within 6 months from the date of the agreement or within such extended time as may be agreed upon between the parties. (5) The vendors shall obtain all such permissions as are necessary under. the law for transferring the said premises to the plaintiff including "no objection certificate" under section 269ul of the Income Tax Act, 1961 and shall produce the same for the inspection of the purchaser's advocates at least 2 weeks before completion of the transaction. (6) The vendors shall obtain necessary clearance certificate under section 230a of the Income Tax Act, 1961 and shall produce the same for the inspection of the purchasers advocates at least 2 weeks before completion of the transaction.
(3.) IT is the case of the plaintiff that the defendants failed to obtain 'no objection Certificate' from the Income Tax Authorities under sections 269 ul and 230a of the Income Tax Act, 1961. In fact, the Income Tax Authorities had served, a notice dated 22nd November, 1988 on the defendants as well as the plaintiff informing them about an order of purchase of the suit premises under section 269ud (1) of the Income Tax Act, 1961.;