Mandatory statutory notice to every transferor is essential in property acquisition proceedings; failure vitiates the process.

Service of notice under section 269D(2)(a) in Chapter XX-A acquisition proceedings was mandatory for every transferor and other persons specifically entitled to notice, because the notice secured a valuable statutory right to object to the proposed acquisition and contest the basis of the action. Each transferor had an independent interest in the property, so service on one did not amount to service on the others. Non-service on two transferors therefore deprived them of the opportunity to object and amounted to non-compliance with a mandatory requirement, vitiating the acquisition proceedings and rendering them illegal and void.

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Issues: Whether, in proceedings for acquisition of immovable property under Chapter XX-A, service of notice under section 269D(2)(a) of the Income-tax Act, 1961 on all transferors was mandatory and, if not served on every transferor, whether the acquisition proceedings were vitiated.

Analysis: Section 269D(2)(a) required the competent authority to serve notice on the transferor, transferee, person in occupation, if any, and every person known to be interested in the property. The provision was held to be mandatory because the notice afforded the affected persons a valuable statutory right to object to the initiation of acquisition proceedings and to contest the grounds on which the property was proposed to be acquired. Since each transferor had an independent interest in the property and could be proceeded against in relation to alleged understatement of consideration, service on one transferor did not amount to service on the others. Non-service on two transferors therefore denied them the opportunity to object and constituted non-compliance with a mandatory requirement, which vitiated the proceedings.

Conclusion: The notice requirement under section 269D(2)(a) had to be complied with in respect of all transferors, and failure to serve notice on every transferor rendered the acquisition proceedings illegal and void.

Ratio Decidendi: Where a statutory notice provision is mandatory and is intended to secure an opportunity of objection before acquisition or similar adverse action, failure to serve notice on all persons whom the statute specifically requires to be notified vitiates the entire proceedings.

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