9911796707
TMI Blog2008 (1) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... he rent/compensation of the flat to the landlady. Their employee Ravindra Sahai resigned from the employment on March 5, 1995. Though the employee was called upon to vacate the flat he chose not to vacate. The petitioners, therefore, filed R. A. E. & E. Suit Nos. 80/490 of 1976, against Ravindra Sahai in the Court of Small Causes for recovery of possession of the flat along with arrears of compensation from May 1, 1975, till the date of filing of the suit. Ravindra Sahai on August 3, 1976, filed written statement and claimed ownership of the suit premises. The petitioners then have averred that petitioner No. 1 was incorporated to take over the entire assets and liabilities of petitioner No. 2. Issues were framed by the Court of Small Cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1991, an announcement was made indicating to all the parties who attended the auction that petitioner No. 2 has moved the Small Causes Court at Bombay praying for restoration of their tenancy and the Court of Small Causes at Bombay has decreed the said suit in favour of petitioner No. 2. In spite of the order of December 13, 1991, the respondents did not hand over possession of the suit premises to the petitioners, but instead on October 28, 1991, purported to hand over the possession of the flat to the auction purchaser. On January 23, 1991, the Court of Small Causes passed an order to break open the lock and put the petitioners in possession. Accordingly, the petitioners were put in possession. The auction purchaser, according to the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e provisions of law, equity and good conscience. The notice dated November 11, 1992, is purported to be in exercise of the powers of the respondents under section 269UD(2) of the Income-tax Act, 1961. That notice was issued pursuant to the order dated October 30, 1990, passed under section 269UD of the Income-tax Act, 1961. The petitioners as set out earlier are claiming right in the premises as tenants of Ravindra Sahai. The petitioners were put in possession pursuant to the proceedings in execution initiated by the petitioners against the respondents. The respondents were served. They chose not to challenge the order putting the petitioners back in the premises nor have they taken out any other proceedings in the Court of Small Causes fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ession 'free from all encumbrances' in subsection (1) of section 269UE is struck down and sub-section (1) of section 269UE must be read without the expression 'free from all encumbrances' with the result the property in question would vest in the Central Government subject to such encumbrances and leasehold interests as are subsisting thereon except for such of them as are agreed to be discharged by the vendor before the sale is completed." The court also noted that the holders of the encumbrances and leasehold interest were persons interested as contemplated in clause (e) of section 269UA of the Income-tax Act. In paragraph 37, the court noted that in case of monthly tenancies such tenancy would continue even on an order of purchase by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered the said contention. The Supreme Court in the said paragraph has noted that it is in those cases where the order for compulsory purchase under section 269UD of the Income-tax Act was made and possession has been taken over, the compensation paid to the owner of the property and accepted without protest, those transactions need not be upset. In our opinion, this would not apply to the facts of the present case. Admittedly, the petitioners have been claiming right in the suit flat as tenants pursuant to the proceedings initiated by them in the Small Causes Court. The petitioners had a decree in their favour on March 4, 1991. The said paragraph does not deal with cases of such persons who had encumbrances on the property and who are als ..... X X X X Extracts X X X X X X X X Extracts X X X X
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