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1998 (9) TMI 24

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..... pursuant to the agreement of sale entered into by the petitioner and M/s Royapettah Benefit Fund Ltd. the second respondent dt. 6th June, 1990. 2. The petitioner filed Form 37-I seeking a no objection certificate from the authority on 20th June, 1990. The petitioner also produced several documents along with that form. The Appropriate Authority just before expiry of two months from that date, on 16th Aug., 1990, addressed a long letter to the petitioner stating therein that according to the authority there were several omissions in the form and also pointed out that there is breach of Chapter-XXC of the Act by the proposed vendor of the petitioner. It was asserted in that letter that the vendor of the petitioner had breached Chapter-XX-C .....

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..... limitation of two months, sent a long letter, neither granting the certificate of no-objection nor proposing compulsory purchase. The principal points made therein being the alleged violation of law by the proposed vendor of the petitioner some two years prior to the date of agreement, pursuant to which the petitioner sought to purchase the property. 4. Learned senior counsel for the petitioner rightly criticised the communication as disclosing a patent failure to exercise the jurisdiction insofar as it declined to grant no-objection certificate and also exceeding jurisdiction insofar as it sought to go into the legality and validity of the agreement by holding that the vendor had committed breach of Chapter XX-C of the Act two years ear .....

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..... hat even after the introduction of that sub-section the defects regarding the legality and validity of the agreement which renders the agreement void and unenforceable cannot be rectified. The appropriate authority, therefore, even after the introduction of sub-s. (4) must necessarily decide as to whether it should proceed with compulsory purchase even after noticing a defect in the title of the proposed transferor. No power is given to the authority to call upon the transferor to rectify the defect in his own title and thereafter file Form 37-I so that the authority thereafter could safely proceed to purchase compulsorily with the assumption that the Government will acquire a valid title to the property. 7. The objective of Chapter XX-C .....

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