{"id":202793,"date":"1992-08-14T00:00:00","date_gmt":"1992-08-13T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/rajalakshmi-narayanan-vs-margaret-kathleen-gandhi-ors-on-14-august-1992"},"modified":"2015-08-18T02:24:13","modified_gmt":"2015-08-17T20:54:13","slug":"rajalakshmi-narayanan-vs-margaret-kathleen-gandhi-ors-on-14-august-1992","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/rajalakshmi-narayanan-vs-margaret-kathleen-gandhi-ors-on-14-august-1992","title":{"rendered":"Rajalakshmi Narayanan vs Margaret Kathleen Gandhi &amp; Ors on 14 August, 1992"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Rajalakshmi Narayanan vs Margaret Kathleen Gandhi &amp; Ors on 14 August, 1992<\/div>\n<div class=\"doc_bench\">Bench: M.H. Kania (Cj), J.S. Verma, S.C. Agrawal, Y. Dayal, A.S. Anand<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  3303 of 1992\n\nPETITIONER:\nRAJALAKSHMI NARAYANAN \n\nRESPONDENT:\nMARGARET KATHLEEN GANDHI &amp; ORS. \n\nDATE OF JUDGMENT: 14\/08\/1992\n\nBENCH:\nM.H. KANIA (CJ) &amp; J.S. VERMA &amp; S.C. AGRAWAL &amp; Y. DAYAL &amp; A.S. ANAND\n\nJUDGMENT:\n<\/pre>\n<p>JUDGMENT<\/p>\n<p>1993 AIR  273 = 1993 (3)Suppl.SCC 296 = 1992(2) SCALE 496<\/p>\n<p>The Judgment was delivered by M. H. KANIA C.J.\n<\/p>\n<p>M. H. KANIA CJI.-\n<\/p>\n<p>Counsel heard This appeal is directed against an interim order passed by a<br \/>\nDivision Bench of the Delhi High Court in Civil Writ Petition No. 387 of<br \/>\n1988 on May 4, 1988<\/p>\n<p>On December 9. 1987, a formal agreement to sell the property in question to<br \/>\nrespondent No. 1 was signed by the appellant and her co vendor, respondent<br \/>\nNo. 8 for a total consideration of Rs. 18 lakhs, out of which Rs. 50, 000<br \/>\nwas already paid to them in November, 1987. A further amount of rupees one<br \/>\nlakh and fifty thousand was received by the vendors from the first<br \/>\nrespondent in February, 1988. As security for the said amount the first<br \/>\nrespondent was put in possession of a portion of the property and she<br \/>\ncontinues to be in possession of the same till date. On February 10, 1988,<br \/>\nthe appellant entered into an agreement for the purchase of a flat in<br \/>\nAlaknanda, New Delhi, for a total consideration of rupees six lakhs and<br \/>\nseventy-five thousand, out of which Rs. 20, 000 was paid as earnest money.<br \/>\nOn March 14, 1988, the appropriate authority under Chapter XX-C of the<br \/>\nIncome-tax Act, 1961 It is pointed out to us by Mr. Vaidyanathan, learned<br \/>\ncounsel for the appellant, that in the present case the appellant, namely,<br \/>\nthe vendor, is in a completely helpless position although she is in urgent<br \/>\nneed of money in order to acquire another flat. It is pointed out by him<br \/>\nthat so far as the appellant is concerned, she never had any objection to<br \/>\nthe completion of the purchase of the property by the Government nor had<br \/>\nshe any objection to the specific performance of the agreement of sale in<br \/>\nfavour of respondent No. 1. It was submitted by Mr. Vaidyanathan that for<br \/>\nno fault of his client and as a result of the order passed by the<br \/>\nappropriate authority and the impugned interim order passed by the Delhi<br \/>\nHigh Court she is neither able to dispose of the said property to a third<br \/>\nparty nor she is able to get the sale price of the said property either<br \/>\nfrom respondent No. 1 or from the Government. He contended that if the<br \/>\nbalance of the purchase price is not paid to the appellant without delay,<br \/>\nshe will again lose interest for several years. In our opinion, in this<br \/>\ncase, some relief should be granted to the appellant because she has<br \/>\nneither attempted to delay or defeat the compulsory purchase of the<br \/>\nproperty by the Government nor has she any objection to the completion of<br \/>\nthe agreement for sale of the property to respondent No. 1. However, we are<br \/>\nnot in a position to direct any amount to be paid to the appellant at this<br \/>\nstage because it is not possible to predict whether the order for purchase<br \/>\nof the said property made by the appropriate authority will be upheld or it<br \/>\nwill be set aside and the sale of the property in favour of respondent No.<br \/>\n1 can be completed<\/p>\n<p>We can safely take judicial notice of the fact that the prices of immovable<br \/>\nproperties have shot up continuously for the last few years and today the<br \/>\nsaid property, if sold in the open market, would fetch a much larger amount<br \/>\nthan that for which it was agreed to be sold to respondent No. 1Taking into<br \/>\naccount these circumstances we modify the impugned order and direct that in<br \/>\nthe event of the aforesaid order of the appropriate authority being upheld,<br \/>\nthe Government shall pay to the appellant, as the purchase price, the<br \/>\namount stated as the consideration for the sale of the said property in the<br \/>\nagreement entered into between the appellant and respondent No. 1 with<br \/>\ninterest thereon at 15 per cent. per annum. In case the order of the<br \/>\nappropriate authority is set aside and the transaction of sale in favour of<br \/>\nrespondent No. 1 is completed, respondent No. 1 shall pay to the appellant<br \/>\ninterest on the balance amount payable on account of the purchase price by<br \/>\nrespondent No. 1 interest at 20 per cent. per annum. The interest in either<br \/>\neventuality will be calculated right from the day the impugned interim<br \/>\norder was made by the Delhi High Court<\/p>\n<p>We may clarify that whether interest should be paid to the owner of an<br \/>\nimmovable property who has entered into an agreement to sell the same which<br \/>\ncannot be completed by reason of an order of purchase under section 269UD<br \/>\nof the Income-tax Act and at what rate, will have to be decided in the<br \/>\nfacts and circumstances of each case. All that can be observed by way of a<br \/>\ngeneral principle is that where such a seller has raised no objection or<br \/>\nobstruction either to the purchase of his property by an order under<br \/>\nsection 269UD or to the completion to the agreement of sale entered into by<br \/>\nhim but is unable to get the purchase price by reason of the said order and<br \/>\nthe stay order or orders passed by a court, interest at an appropriate rate<br \/>\ncan, if equity so requires, be paid to him<\/p>\n<p>There will be no order as to the costs of the appeal<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Rajalakshmi Narayanan vs Margaret Kathleen Gandhi &amp; Ors on 14 August, 1992 Bench: M.H. Kania (Cj), J.S. Verma, S.C. Agrawal, Y. Dayal, A.S. Anand CASE NO.: Appeal (civil) 3303 of 1992 PETITIONER: RAJALAKSHMI NARAYANAN RESPONDENT: MARGARET KATHLEEN GANDHI &amp; ORS. DATE OF JUDGMENT: 14\/08\/1992 BENCH: M.H. KANIA (CJ) &amp; J.S. VERMA [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-202793","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Rajalakshmi Narayanan vs Margaret Kathleen Gandhi &amp; Ors on 14 August, 1992 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/rajalakshmi-narayanan-vs-margaret-kathleen-gandhi-ors-on-14-august-1992\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rajalakshmi Narayanan vs Margaret Kathleen Gandhi &amp; 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