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Issues Involved:
The issues involved in this case include the validity of a sale transaction of a property, the vesting of the property in the Central Government under the Coal Mines (Nationalisation) Act, 1973, and the consideration of whether the transaction was genuine or sham. Validity of Sale Transaction: The appellants filed a suit for a declaration of title in a property owned by a company, alleging a genuine sale transaction. The trial court dismissed the suit, but the District Judge allowed the appeal. The High Court, after remand, held that the sale transaction was sham and bogus, entered into to avoid vesting of the property in the Central Government. The High Court found discrepancies in the documents presented, including an antedated resolution and lack of exercise of rights by the appellants, leading to the conclusion that the transaction was not genuine. Vesting of Property in Central Government: The property in question was subject to the Coal Mines (Nationalisation) Act, 1973, leading to its vesting in the Central Government. The High Court held that due to the lack of genuineness in the sale transaction, the property remained with the company and vested in the Central Government as per the Act. This decision was supported by a previous judgment of the Supreme Court in a similar case. Genuine or Sham Transaction: The High Court analyzed the evidence presented, including resolutions, payments, and agreements, to determine the authenticity of the sale transaction. It considered factors such as the relationship between the parties, lack of independent income sources, and discrepancies in documentation. The court concluded that the transaction was not bona fide or genuine, leading to the property vesting in the Central Government. The appellants' arguments regarding the validity of the transaction were not accepted, and the appeal was dismissed with costs.
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