{"id":239449,"date":"1998-11-27T00:00:00","date_gmt":"1998-11-26T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/link-international-vs-union-of-india-on-27-november-1998"},"modified":"2017-05-18T01:24:26","modified_gmt":"2017-05-17T19:54:26","slug":"link-international-vs-union-of-india-on-27-november-1998","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/link-international-vs-union-of-india-on-27-november-1998","title":{"rendered":"Link International vs Union Of India on 27 November, 1998"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">Link International vs Union Of India on 27 November, 1998<\/div>\n<div class=\"doc_citations\">Equivalent citations: 76 (1998) DLT 852, 1999 239 ITR 19 Delhi<\/div>\n<div class=\"doc_author\">Author: R Lahoti<\/div>\n<div class=\"doc_bench\">Bench: R Lahoti, C Mahajan<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p>R.C. Lahoti, J.<\/p>\n<p>1.      CWP  3853  and 3872\/90 are between the same parties and  seek  reliefs<br \/>\nwhich  are more or less identical in nature. By order dated 7.10.1993  both the petitions have been directed to be heard together.\n<\/p>\n<p>2.   The  relevant facts in brief. The immoveable property No. 701,  Sahyog Building,  58, Nehru Place, New Delhi, belongs to M\/S  Link  International, the  petitioners. On 30.8.90, the petitioners entered into an agreement  to sell  the said property in favour of M\/S. Electronic  Component  Industries Association  the  respondent No.3 for a consideration  of  Rs.  14,70,000\/- only. Vide clause 12 of the agreement it was expressly agreed upon that the purchaser shall pay the transfer charges. On 8.9.90 the statement of transfer of immoveable property under Section 269UC of the Income-tax Act,  1961 in the prescribed proforma 37-I was filed before the appropriate  authority duly  signed by both the parties to the agreement. On 21.11.90, the<br \/>\nappropriate authority passed an order (Annexure P-1) under Section 269UD(1)  of<br \/>\nthe  Act.  The  order,  inter  alia,  recites  :&#8221;  Apparent  Consideration:\n<\/p>\n<p>Rs.14,70,000\/- including unearned increase payable to DDA,if any.&#8221;(  emphasis upplied).\n<\/p>\n<p>3.   On  3.12.1990,  CWP 3853\/90 was filed challenging the  impugned  order dated 21.11.90 Annexure P-1 and in the alternative seeking quashing of  the impugned order to the extent of the words inserted in the recital of apparent consideration as&#8221; including unearned increase payable to DDA, if  any&#8221;. On 5.12.1990 CWP 3872\/90 was filed by the petitioner wherein also challenge is  laid to the impugned order dated 21.11.1990. However, the main plea  in this  petition  is declaring Chapter XX-C of the Income-tax  Act,  1961  as ultra vires the Constitution.\n<\/p>\n<p>4.   In CWP 3872\/90 an interim order was passed on 7.12.1990 which reads as under :\n<\/p>\n<p>      &#8220;In the meantime,there will be stay of operation of the  impugned<br \/>\n     order dated 21st November, 1990 with the result that the respondents  will not be required to tender the apparent  consideration. The petitioner in turn will not encumber the property nor will he alienate or transfer the possession thereof and he shall maintain<br \/>\nstatus quo as of today.&#8221;\n<\/p>\n<p>     The above said order was continued till further orders on 15.1.1991 and was confirmed on 7.10.1993. It has thus remained effective till this day.\n<\/p>\n<p>5.   In the counter- affidavit filed by the purchaser- respondent No.3, it is stated that all transfer charges were to be borne by the transferee  and therefore,  the  amount of unearned increase if any was liable to  be  paid over  and  above the recited sale consideration by the  purchaser.  In  the counter-affidavit  filed by DDA-respondent No.4 in CWP 3853\/90, it is  submitted that as per the terms and conditions of auction relevant to the plot on  which  the  building has come up, the written permission  for  sale  or<br \/>\ntransfer  of the floor space constructed on the plot was to be  granted  on payment  of Rs. 100\/- in the first sale or transfer and  subsequently  each sale\/transfer  was liable to be charged by the DDA @ Re 1\/- per sft of  the floor  space to be transferred. Vide para 7, it is stated that 50%  of  the unearned  increase was not chargeable on the impugned ansaction  of  sale provided written prior permission of DDA was obtained .\n<\/p>\n<p>6.   On 8.6.98, CM 6712\/98 was moved by the petitioner submitting that  the petitioner had no objection to the property being taken over by the  appropriate  authority  subject  to  the petitioner being  paid  the  amount  of Rs.14,70,000\/- with interest @ 18% p.a. and the impugned recital &#8211; &#8216;including unearned increase payable to DDA, if any&#8217; being deleted from the  order made under Section 269UD(1).\n<\/p>\n<p>7.   In  view  of the above said application the scope  of  controversy  for<br \/>\ndecision  in  the two petitions has narrowed down. The  first  question  is whether  appropriate  authority  was justified in  inserting  the  impugned recital  in the order under Section 269UD(1)? Secondly, whether  the  petitioner  is entitled to relief for payment of interest on the amount  to  be paid to the petitioner by appropriate authority.\n<\/p>\n<p>8.   Neither  in  the counter, nor at the time of hearing, the  learned  Sr<br \/>\nStanding Counsel for the appropriate authority has been able to demonstrate<br \/>\nhow  and on what material the appropriate authority arrived at the  finding<br \/>\nthat  the apparent consideration of Rs. 14,70,000\/- included the amount  of<br \/>\nunearned  increase payable to the DDA,if any. The order u\/s 269UD(1) is  to<br \/>\nbe passed after affording the parties an opportunity of hearing and has  to<br \/>\nbe based on some material. It was brought to the notice of the  appropriate<br \/>\nauthority  that  the amount of consideration did not include  unearned  in-\n<\/p>\n<p>crease which in the event of being payable, was to be borne by the  intend-\n<\/p>\n<p>ing  purchaser. Yet it was not deleted The recital was, therefore,  without<br \/>\nany basis and has been inserted in the order arbitrarily. The same deserves<br \/>\nto be struck down.\n<\/p>\n<p>9.   Where  an  order for the purchase of any immoveable  property  by  the<br \/>\nCentral Govt is made under Section 269UD(1), the Central Govt shall u\/s 269 UF  pay  by way of consideration for such purchase an amount equal  to  the<br \/>\namount of the apparent consideration. Under Section 269UG the said  consideration shall be tendered to the person or persons entitled thereto  within<br \/>\na  period  of one month from the end of the month in which  the  immoveable<br \/>\nproperty concerned becomes vested in the Central Govt under section  269UE.\n<\/p>\n<p>The amount was admittedly not so tendered.\n<\/p>\n<p>10.  The  learned  counsel  for  the  petitioner  has  in  support  of  the<br \/>\npetitioner&#8217;s  plea for payment of interest relied on two decisions  of  the<br \/>\nSupreme  Court, namely, Mrs Raj Laxmi Narayanan Vs. Mrs MK Gandhi, 1993  SC<br \/>\n273,and Sri Nand Lal Tejmal Kothari Vs. IAC, .\n<\/p>\n<p>11.  In  Mrs  Raj Laxami Narainan&#8217;s case ( supra) the order  under  Section<br \/>\n269-UD  was  challenged before the Court and was  stayed.  Their  Lordships<br \/>\ndirected interest @ 15% p.a. being paid by the Government to the petitioner on  the  amount of consideration. In Sri nand Lal Tej  Mal  Kothari&#8217;s  case their  Lordships have directed the amount of apparent consideration  to  be paid with interest @ 9% p.a. from the date the impugned order was made.\n<\/p>\n<p>12.  The  petitioner  has come up laying challenge to  the  impugned  order under Section 269 UD(1) to the extent of the objectionable recital therein. We have held the impugned recital to be arbitrary based as no material  and hence  liable to be struck down. The petitions are, therefore, allowed  and disposed of in terms of the following directions.\n<\/p>\n<p>     (i)  From  the impugned order dated 21.11.90  under  Section  269UD(1) of the Income-tax Act, 1961 the words- &#8220;including  unearned increase payable to DDA,if any&#8221; as suffixed to &#8220;apparent  consideration: Rs.14,70,000&#8243;shall stand deleted <\/p>\n<p>     (ii) The amount payable to the petitioner shall carry an interest calculated  @ 9% p.a. from 21.12.90 [the date falling  one  month after  the date of the order u\/s 269UD(1)] till the date of  payment.\n<\/p>\n<p>     (iii)  Subject to the above said directions the respondents  shall proceed ahead with the order under Section 269UD(1). The interim<br \/>\norder dated 7.12.90 passed in CWP 3872\/90 stands vacated.\n<\/p>\n<p>13.  Both the petitions stand disposed of without any order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court Link International vs Union Of India on 27 November, 1998 Equivalent citations: 76 (1998) DLT 852, 1999 239 ITR 19 Delhi Author: R Lahoti Bench: R Lahoti, C Mahajan ORDER R.C. Lahoti, J. 1. CWP 3853 and 3872\/90 are between the same parties and seek reliefs which are more or less identical [&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":[14,8],"tags":[],"class_list":["post-239449","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Link International vs Union Of India on 27 November, 1998 - 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\/link-international-vs-union-of-india-on-27-november-1998\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Link International vs Union Of India on 27 November, 1998 - Free Judgements of Supreme Court &amp; 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