Full Judgment Text
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CASE NO.:
Appeal (civil) 6054 of 1998
Appeal (civil) 6055 of 1998
PETITIONER:
UNION OF INDIA & ORS.
Vs.
RESPONDENT:
M/S SHATABADI TRADING & INVESTMENT PVT.LTD. & ORS.
DATE OF JUDGMENT: 10/08/2001
BENCH:
K.G.Balakrishnan, S.R.Babu
JUDGMENT:
RAJENDRA BABU, J. :
In respect of property comprised in 25, Friends Colony West, New
Delhi [hereinafter referred to as ’the subject property’], an agreement was
entered into to sell for a consideration of Rs.1.75 crores on 1.2.1991. On
4.2.1991, the intended seller and the purchaser filed Form 37-I for
issuance of ’No Objection Certificate’. However, on 18.4.1991, a
purchase order was passed by the Appropriate Authority and on the
same day, the owner of the land was directed to surrender the
possession of the subject property. In that regard, a writ petition was
preferred before the High Court and on March 1, 1993, that writ petition
was allowed in the light of the decision of this Court in C.B. Gautam vs.
Union of India, 1993 (1) SCC 78. Subsequent to the decision in the said
writ petition decided by the High Court a show cause notice had been
issued disclosing the following facts:
"In the case of subject property, the apparent consideration is
Rs.1,75,00,000. The plot area is 3595.32 sq. mts. including
830.95 sq. mtrs. Declared as excess land under ULCR Act. The
net plot area comes to Rs.3595.32-830.95=2764.37 sq. mtrs. If
salvage value of Rs.1,64,445 is considered, the achieved land rate
works out to Rs.1,75,00,000 - 1,64,445 = 1,73,35,555 divided by
2764.37 = Rs.6271 per sq. metr. We may compare the sale
instance of property at 60, Friends Colony (East) which was
agreed to be sold on December 5, 1990 for apparent consideration
of Rs.2,65 crores. If the depreciated value of structure of sale
instance is taken at Rs.11,60,000 the land rate per sq. mtr. works
out to Rs.2,65,00,000 (-) 11,60,000 = 2,53,40,000 divided by
1173.91 = Rs.21,586. If adjustment on account of time gap of