Court dismisses review applications due to delay but orders Department to pay withheld interest with accrued interest. Emphasis on commitment to pay interest. Vendors entitled to interest despite Department's failure.

The court dismissed the review applications due to delay but directed the Department to pay withheld interest amounts with accrued interest by a specified date. The court emphasized the Appropriate Authority's commitment to pay interest on the consideration amount and clarified the interpretation of relevant statutory provisions. Despite the Department's failure to take possession of the property, the court held that vendors were entitled to interest. Exemplary costs were not awarded as the withheld interest was invested and would be paid with accrued interest.

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Issues Involved:
1. Delay in filing review applications.
2. Maintainability of review applications based on a consent order.
3. Entitlement to interest on the consideration amount deposited by the Appropriate Authority.
4. Interpretation of Section 269UG of the Income-tax Act, 1961.
5. Consequences of the Department not taking possession of the property.

Detailed Analysis:

1. Delay in Filing Review Applications:
The Appropriate Authority filed the review applications with a delay of 56 days. The Authority argued that the delay was due to the time required to follow due procedure for releasing the principal amount and analyzing the legal provisions. Although the explanation was not detailed, the court took a liberal view and entertained the review applications.

2. Maintainability of Review Applications Based on a Consent Order:
The opponents contended that the review applications were not maintainable as the order was passed based on consensus among the parties. The court noted that the Appropriate Authority had previously agreed to pay the interest accrued on the fixed deposit along with the principal amount. The court found substance in the opponents' argument that the Appropriate Authority's current stance was inconsistent with its earlier affidavit and submissions.

3. Entitlement to Interest on the Consideration Amount Deposited by the Appropriate Authority:
The Appropriate Authority argued that it was not liable to pay interest on the consideration amounts of Rs. 115 lakhs and Rs. 125 lakhs to the vendors and purchasers. The court rejected this argument, noting that the Appropriate Authority had previously committed to paying the interest accrued on the fixed deposit. The court emphasized that the stand taken by the Appropriate Authority in the affidavit was consistent with the statutory provisions of Section 269UG(4).

4. Interpretation of Section 269UG of the Income-tax Act, 1961:
The Appropriate Authority contended that Section 269UG(4) conferred discretion on whether to invest the consideration amount and pay interest. The court clarified that the provisions did not prohibit the payment of interest on the consideration amount. The court held that the Appropriate Authority's commitment to pay interest was in line with the statutory provisions and the submissions made during the hearing of the petitions.

5. Consequences of the Department Not Taking Possession of the Property:
The Department argued that it did not take possession of the property due to the pendency of the petitions. The court noted that the vendors had repeatedly called upon the Department to take possession. The court held that the Department's failure to take possession did not justify withholding interest on the consideration amount. The court cited a previous decision (Hotel Mardias Pvt. Ltd. v. Union of India) to support its view that vendors cannot be deprived of their right to get possession even if the Department does not take possession.

Conclusion:
The court dismissed the review applications, directing the Department to pay the withheld interest amounts along with accrued interest by December 15, 2004. The court declined to award exemplary costs to the opponents, noting that the withheld interest had been invested in fixed deposits and would be paid along with accrued interest.

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