9911796707
TMI Blog1992 (11) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. Parshottamdas & Co. incurred huge debts for the repayment of which they executed a composition deed in favour of a committee formed by the creditors for the purpose of management and disposal of the debtor's property. A registered sale deed was executed on December 27, 1973, conveying the Shamlaji Kripa building to respondents Nos. 5 to 10 for a consideration of Rs. 4,50,001 paid by a cheque dated July 12, 1973, for Rs. 50,001, and another cheque for Rs. 4 lakhs dated February 4, 1974. According to the recital in the sale deed, the purchasers were given constructive possession and the existing tenant was to attorn in favour of the purchaser. By a letter dated February 5, 1974, M/s. S.S. Parshottamdas and Co. informed the appellant of the sale requiring the appellant to attorn to the purchasers-respondents Nos. 5 to 10. The competent authority under section 269B of the Income-tax Act, 1961, initiated proceedings for acquisition of the said property under, Chapter XX-A of the Act by a notice dated August 31, 1974, under section 269D(1) to the effect published in the Gazette of India dated November 16, 1974. This notice was also served on the appellants as the persons in occupati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng possession from the tenant by virtue of the other provisions in that Chapter enabling recovery of possession from the occupant of the property. The appeal is confined only to these submissions. In reply Dr. Gauri Shankar submitted that there is no acquisition of the tenancy rights and, therefore, the question of payment of compensation for the tenancy rights does not arise. Learned counsel for the respondents submitted that the right of a statutory tenant to continue in possession and enjoy the protection against eviction by virtue of the provisions of the Rent Act does not clothe the statutory tenant with a right of the kind claimed by the appellants. It was further submitted that the liability of the tenant in occupation of an acquired property to deliver possession by virtue of the provisions in Chapter XX-A of the Act and deprivation of the protection of the Rent Act is a consequence of the statutory provisions governing properties owned by the Central Government. On this basis, it was urged by learned counsel for the respondents that the appellants as tenants in occupation of the acquired property have no basis to make this challenge. Alternatively, it was urged that the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... properties in certain cases ceased to operate in respect of transfer of immovable property made after September 30, 1986. The validity of certain provisions of Chapter XX-C of the Act is the subject-matter of challenge in some other matters decided separately and, therefore, no further mention of Chapter XX-C is required to be made in the present context. A brief reference to the scheme of Chapter XX-A and the provisions therein may now be made. Chapter XX-A was inserted to provide for acquisition of immovable properties in certain cases of transfer to counteract evasion of tax. In the said Chapter, as originally enacted by the Income-tax (Amendment) Act, 1981, section 269AB was inserted with effect from July 1, 1982, and section 269RR was inserted by Finance Act, 1986, with effect from October 1, 1986. Section 269A contains the definition of expressions used in the different provisions in the Chapter. Section 269AB provides for registration of certain transactions requiring that such transactions shall be reduced to writing in the prescribed manner and registered with the competent authority. The specified transactions are those which allow the possession of any immovable prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es for vesting of the property in the Central Government when the order of acquisition of any immovable property becomes final. Further reference to this section would be made later. Section 269J provides for payment of compensation by the Central Government for acquisition of the immovable property which amount is a sum equal to the aggregate of the amount of the apparent consideration for its transfer and fifteen per cent. of the said amount. Section 269K requires tender of the compensation amount to the person or persons entitled thereto, as soon as may be, after the property becomes vested in the Central Government under sub-section (4) of section 269-1. It also provides for adjudication of disputes relating to apportionment of compensation amongst persons claiming to be entitled thereto after deposit of the compensation amount by the Central Government in the court and for other ancillary matters. Section 269L provides for assistance by Valuation Officers to enable the competent authority to properly discharge its functions. Section 269Q exempts transfer of immovable property made by a person to his relative on account of natural love and affection for a consideration which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority under that sub-section may take possession of the immovable property and may, for that purpose, use such force as may be necessary . . . (4) When the possession of the immovable property is surrendered or delivered under sub-section (1) to the competent authority or person duly authorised by him in that behalf or, as the case may be, when the possession thereof is taken under sub-section (2) or sub-section (3) by such authority or person, the property shall vest absolutely in the Central Government free from all encumbrances Provided that nothing in this sub-section shall operate to discharge the transferee or any other person (not being the Central Government) from liability in respect of such encumbrances and, notwithstanding anything contained in any other law, such liability may be enforced against the transferee or such other person by a suit for damages. The main submission of learned counsel for the appellant is that the tenancy right of the tenant in occupation of the acquired property is not acquired and such a tenant continues in occupation as the tenant of the Central Government till evicted in accordance with law. The submission is that the tenancy right, not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sted in the property is obviously for the reason that all such persons including those having interest merely in possession are considered to be persons interested in the acquisition proceeding. Section 269E enables all such persons to make objections against the acquisition of the immovable property on publication of the notice and the competent authority is required by section 269F to hear and decide those objections on merits, stating the reasons for the decision in writing, before making the final order for acquisition of the property. Obviously, a tenant in possession, of whatever nature, has this opportunity. An appeal to the Appellate Tribunal is provided by section 269G which has to be decided on merits. A further appeal then lies to the High Court under section 269H. A person interested only in possession of the property has also the opportunity to show cause against the acquisition of that property. The order of acquisition made by the competent authority under section 269F(6) becomes final only thereafter on conclusion of this process wherein all legitimate objections are adjudicated on merits. It is only after the order of acquisition of any immovable property made und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction (2) therein requires the Central Government to deposit the amount of compensation in the court, if any dispute arises as to the apportionment of the compensation amongst persons claiming to be entitled thereto and refer such dispute for decision to the court. It is, therefore clear that this compensation amount is to be shared between persons claiming to be entitled thereto and, in case of any dispute, the amount so deposited is to be apportioned according to the decision of the court. These provisions make it clear that a tenant in possession is at best entitled only to a share in the compensation amount but has no right to continue in possession after the order of acquisition made under section 269F(6) has become final, since he is bound to deliver possession of the property to the Central Government in accordance with section 269-1. It is also clear from the proviso to sub-section (4) of section 269-1 that any person claiming any encumbrance on the property which may survive against the transferee or any other person, not being the Central Government can enforce the same only against the transferee or such other person and that to by a suit for damages alone. The scheme o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e final, the transferor, the transferee or any other occupant of the property has to deliver possession thereof to the competent authority and, on possession being so obtained, by virtue of sub-section (4) of section 269-I, the property shall vest absolutely in the Central Government free from all encumbrances. There is no other situation visualised in the scheme of Chapter XX-A and no person including any tenant in occupation of the immovable property has any surviving right to continue in possession. The expression "person in occupation of the property" in section 269D(2)(a) includes every person including a contractual or a statutory tenant. The provision for sharing the compensation amount in section 269K and that of enforcement of any right under a surviving encumbrance, if any, against the transferee or any other person, excluding the Central Government, by a suit it for damages takes care of the interest, if any, of an occupant of the immovable property. There is, thus, no room for any doubt that the transferor or the transferee in possession is bound to deliver possession of the property on its acquisition in this manner, and the right of a tenant including a statutory tena ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
