TaxTMI 
TaxTMI 
2015 (3) TMI 773
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....reto, the company and the applicant herein entered into an agreement dated 1st April, 1995 for sale of the factory as a going concern alongwith the land for Rs. 1.70 crore. It was agreed that the sum of Rs. 8 lakhs advanced by the applicant to the company would be adjusted towards the consideration money. Between 1996 and 1998 a sum of Rs. 1.10 crores was paid by the applicant to the company. Thereafter, further sums were paid and all that was required to be paid by the applicant to the company was Rs. 29 lakhs. Pursuant to the said agreement of April 1995 on 10th February, 1999 the company and the applicant entered into an agreement whereby possession of the factory premises was handed over by the company to the applicant herein. On 25t....
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....dated 10th February, 1999 possessory right was vested in the applicant and by the lease agreement of 25.03.1999 the applicant was given to run the factory for 10 years on and from 1st April, 1999. Sums agregating to approx Rs. 1.19 crore has been paid by the applicant, therefore, orders be passed as sought. In opposing the said application the Official Liquidator submits that the agreement for sale is dated 1st April, 1995 the terms whereof have been breached by the applicant. It is only to cover the breach that the agreement of 1999 was executed. The said agreement of 1999 is hit by S. 536(2) of the 1956 Act and is void. The execution of the 1999 agreement was necessary as the sale was not completed within the time specified although....
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....aving considered the submissions of the parties by agreement dated 1st April, 1995 the company agreed to sell to the applicant its land and factory at Mysore as a going concern on "as is where is and whatever there is basis," for Rs. 1.70 crores. A sum of Rs. 8 lakhs had been advanced by the applicant to the company and the said sum was to be adjusted towards the consideration money. Part payment was also made by the applicant but that was not all it was to do. As per clause 13 of the 1995 agreement the sale was to be completed by 31st December, 1998 unless mutually agreed by the parties. In case the company failed or refused to complete the transaction the applicant was entitled to seek specific performance of agreement. Admittedly, the co....
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.... contract within 3 years from either the date fixed for performance or where no date is fixed then 3 years from refusal of performance. Admittedly as per the 1995 agreement the agreement was to be performed by 31st December, 1998. A letter was written by the applicant to the Official Liquidator in 2001 calling upon him to execute the Deed of Conveyance. The said letter was received by the Official Liquidator but no reply was given nor step taken by the Official Liquidator to execute the conveyance, therefore, it was incumbent on the applicant to file a suit within 3 years from 2001 as per Article 54 of the Limitation Act. Without doing the same the applicant in 2005 and 2009 once again called upon the Official Liquidator to execute the c....