9911796707
TMI Blog1995 (8) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... successful bidders for a sum of Rs. 10,03,000 and they were declared as such. The entire amount was deposited by them with the third respondent who executed the sale deed on December 9, 1993, in their favour. Under section 115 of the Presidency Towns Insolvency Act, the sale deed executed by the official assignee is exempted from stamp duty and other duties whatsoever. It is further averred in the affidavit that the sale deed dated December 9, 1993, executed in their favour by the official assignee is also exempted from stamp duty. When they produced the sale deed before the first respondent for registration, he wrote to the second respondent seeking a clarification as to whether no objection certificate was required under Chapter XX-C of the Income-tax Act as the value of the property exceeded Rs. 10 lakhs. The second respondent, by his letter dated June 14, 1994, informed the first respondent that the sale by the third respondent-official assignee was not exempted from registration even though exempted from payment of stamp duty, and that no objection certificate is required under Chapter XX-C of the Income-tax Act, 1961. Further, it was informed that the applicants should comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the applicants. It is also stated that under section 269UC, a statement will have to be filed. A joint application signed by the vendor and the applicants will have to be filed before the appropriate authority in respect of the immovable property that is sought to be sold. It is said that in the instant case, the vendor is the official assignee representing the estate of the insolvent and the purchasers are the applicants, and hence, a statement will have to be signed and filed by them jointly. It is stated that in view of the various sections of Chapter XX-C, the Central Government has a right of pre-emptive purchase in respect of all the properties that are sold for a consideration of over Rs. 10 lakhs in contrast with the provisions of Chapter XX-A which ceased to have effect in respect of transfers of immovable properties made after September 30, 1986. In view of the above contentions, the appropriate authority stated that without a no objection certificate from him, the document is not liable to be registered. The official assignee has also filed a report and, according to him, it is not a case which requires a no objection certificate from the second respondent. I h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g in force, no person shall do anything or omit to do anything which will have the effect of transfer of any immovable property unless the appropriate authority certifies that it has no objection to the transfer of such property for an amount equal to the apparent consideration therefor as stated in the agreement for transfer of the immovable property in respect of which it has received a statement under sub-section (3) of section 269UC. (3) In a case where the appropriate authority does not make an order under sub-section (1) of section 269UD for the purchase by the Central Government of an immovable property, or where the order made under sub-section (1) of section 269UD stands abrogated under sub-section (1) of section 269UH, the appropriate authority shall issue a certificate of no objection referred to in sub-section (1) or, as the case may be, sub-section (2) and deliver copies thereof to the transferor and the transferee." It is not disputed that the sale in favour of the applicants was by public auction and not on the basis of any agreement entered into between them and the official assignee. From the typed set of papers, it is clear that the auction was conducted pursu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but by the court or its representative, the official assignee. Under these circumstances, the provisions of the Transfer of Property Act cannot have any application. It is in this view, that we have to consider the scope of section 269UC of the Income-tax Act. The said section contemplates that there cannot be any transfer of immovable property except after an agreement of transfer is entered into between the person who intends to transfer the immovable property and the person to whom it is proposed to be transferred. Till the auction is confirmed, there is no transferee. The official assignee will not be in a position to know who the proposed transferee is, and once the auction is confirmed, it is not on the basis of any agreement but by virtue of the auction, a title is conferred. There is no written agreement between the official assignee and the person in whose favour the sale is confirmed. Only if section 269UC of the Income-tax Act is applicable, there can be a prohibition for registering the document under section 269UL of the said Act. Learned counsel for the appropriate authority brought to my notice section 269UO of the Act where certain exemptions have been provided. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whom it is proposed to be transferred. In so far as this particular provision is concerned, the petitioner, being a judgment-debtor, cannot be construed as a person who intends transferring the immovable property ; nor is he a party to the agreement for transfer and further, unless the sale is confirmed in favour of the highest bidder, no one can contemplate as to who would be the proposed transferee. It may also be considered that in a court auction sale, no one can contemplate that there would be an agreement of sale as contemplated under section 269UC of the Act. The judgment-debtor can never be an agreement holder by reason of the fact that his property is being compulsorily brought to sale by auction only at the instance of the decreeholder and that the judgment-debtor who is not a willing seller is not a party to any agreement and that there is no agreement at all in so far as the judgment-debtor is concerned. While so, the petitioner cannot have any apprehension with reference to the non-compliance with the provisions contained in Chapter XX-C of the Act. On considering the provisions contained in section 269UC of the Act, it is hardly possible to follow the procedure p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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