Inordinate delay in Chapter XX-A acquisition proceedings can vitiate the order and make the exercise of power unsustainable.

Acquisition under Chapter XX-A of the Income-tax Act is described as an urgent, compulsory divestment mechanism, so unexplained and extraordinary delay in completing proceedings under sections 269C, 269D and 269F(6) is said to defeat the statutory purpose, prejudice the transferee, and render the action oppressive. The commentary also notes that where the record contains no cogent explanation for deferment, and the connected valuation material and acquisition action have already been disapproved, the impugned acquisition order becomes unsustainable and liable to be quashed as an abuse of power.

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Issues: Whether the order acquiring the immovable property under Chapter XX-A of the Income-tax Act was sustainable in view of the inordinate delay in completing the acquisition proceedings and the surrounding circumstances bearing on the fairness of the action.

Analysis: The acquisition proceedings were initiated under sections 269C and 269D, but the order under section 269F(6) was passed after an extraordinary lapse of time. The statutory scheme under Chapter XX-A indicates urgency, since acquisition results in compulsory divestment and payment of compensation under section 269J based on the apparent consideration. A prolonged and unexplained delay defeats the purpose of the provision, causes prejudice to the transferee, and renders the exercise oppressive. The record disclosed no cogent explanation for the deferment. The facts also aligned with the connected case where the valuation material and acquisition action had already been disapproved, reinforcing the unsustainability of the impugned order.

Conclusion: The acquisition order was held to be vitiated by inordinate and unexplained delay and was quashed.

Ratio Decidendi: Where acquisition proceedings under Chapter XX-A are not completed within a reasonable time and the delay is inordinate and unexplained, the resulting order is vitiated as an abuse of power and cannot be sustained.

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