TaxTMI 
TaxTMI 
2020 (3) TMI 159
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...., microbiological, toxicological, bio-availability studies, bio-analytical testing services; undertaking clinical research and development activities and engage in the business as manufacturers, processors of drugs and pharmaceuticals in India and abroad in allied fields. It was also authorised to acquire properties for carrying on its business activities and to invest money in Stocks and Securities. The Respondent Company was incorporated on 23.06.1955 under CIN: 26940AP1955PLC000546 with the object inter alia to produce, manufacture, process cements of all kinds and purchase or acquire property in India and abroad. The Respondent was the owner of certain properties situated at Bommannahalli and Hongasandra villages, in Begur Hobli, Bangalore South Taluk. It had approached M/s Salarpuria Properties (Private) Limited, for joint development of these properties aggregating 21 Acres and 22 Guntas in a phased manner and entered into an undertaking to that effect on 21.04.2005. Subsequent thereto Respondent and the said developer entered into a joint development agreement on 15.10.2005. Under the joint development agreement the owners i.e. the Respondent was entitled to 28% in the comme....
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.... Greenage Project, Bommannahalli, Bangalore under letter, dated 26.12.2017. Subsequently, two of these apartments were respectively sold to Vipin Megotia (assignee of the Petitioner) under an absolute sale deed, dated 27th March, 2018, for Rs. 86,45,478/- (Rupees Eighty Six Lakhs Forty Five Thousand Four Hundred Seventy Eight) and to Joydeep Hazra & Pamela Banerjee (assignees of the Petitioner) under absolute sale deed, dated, 29th May, 2018, for Rs. 1,51,03,524/- (Rupees One Crore Fifty One Lakh Three Thousand Five Hundred Twenty Four only). Two others were agreed to be respectively sold to Mr. Nitesh Sharma & Mrs. Garima Jain and Mr. M. N. Vijayakumar and Mrs. Jayashree under separate assignment agreements, dated 29.06.2018 and 07.07.2018, to which the Respondent was a party. As per the assignment agreements, dated 29.06.2018 and 07.07.2018, the Respondent was obliged to execute the sale deeds in favour of the respective assignees of the Petitioner. 3. The Respondent did not honour such agreements. That constituted default on the part of the Respondent. Further the Respondent as per the agreement, dated 15.03.2007, was to deliver 10 (ten) flats/apartments. In fact it delivered....
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.... approached the Respondent in 2007, for purchasing 10 (ten) flats, measuring 13500 sq. ft. of built-up area at the rate of Rs. 1,500/-per sq. ft. They accordingly entered into the agreement on 15.03.2007, for a total sale consideration of Rs. 2,52,50,000/- (Two Crores Fifty Two Lakhs Fifty Thousand only). The Petitioner paid an advance payment of Rs. 55,00,000/- (Rupees Fifty Five Lakhs) and was to pay the balance of Rs. 1,97,50,000/- (Rupees One Crore Ninety Seven Lakhs Fifty Thousand only) on or before 15.03.2008. The Respondent agreed to deliver the built-up area to the Petitioner on or before 14.09.2009, subject to contingencies mentioned in clause 15 of the agreement. Between the date of agreement (15.03.2007) and 14.03.2008, the Petitioner, including the advance, paid an amount of Rs. 1,61,00,000/- (Rupees One Crore Sixty One Lakhs only). The Petitioner also paid an amount of Rs. 30,00,000/- (Rupees Thirty Lakhs) between 05.04.2008 and 21.05.2008. It did not make any further payment in accordance with the terms of the agreement. It rather requested the Respondent to return the amount paid. The Respondent accordingly paid back an amount of Rs. 65,00,000/- (Rupees Sixty Five La....
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....e' and 'Real Estate Project' shall be construed as under the Real Estate (Regulations and Development) Act 2016. The 'allottee' is defined under section 2(d) of the said Act as a person who acquires apartments/flats through transfer or sale. The term 'Real Estate Project' defined under section 2 (zn) of the said Act provides that it would mean the development of a building or a building consisting of apartments, or converting an existing building or a part thereof into apartments, or the development of land into plots or apartments, as the case maybe, for the purpose of selling all or some of the said apartments or plots or buildings, as the case maybe, and includes the common areas, the development works, all improvements and structures thereon and all easement, rights and appurtenances belonging thereto. In 2005, the Respondent had entered into an agreement with M/s Salarpuria Properties (Private) Limited for construction of residential apartments over its properties. It subsequently entered into an agreement on 15.03.2007, with the Petitioner for allotment of 10 flats/apartments in the developed project. Accordingly the development so carried out woul....
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.... by any such covenant. It had to pay the balance amount within a period of one year. The Respondent executed registered sale deeds in respect of the two apartments in favour of the respective assignees namely Mr. Vipin Megotia and Mr. Joydeep Hazra (with wife Mrs. Pamela Banerjee) respectively on 27.03.2018 and 29.05.2018. Admittedly allotment of eight flats was made on 26.12.2017. Despite these developments the Petitioner did not make payment of the entire balance amount within one year. However, it only paid Rs. 1,91,00,000/- including the advance. The Petitioner having not paid the full amount as agreed under the agreement, dated 15.03.2007, could not expect the Respondent to execute and deliver possession of all the flats agreed thereunder. In view of the non-payment of the agreed balance amount the Respondent under letter, dated 18.07.2018, recalled the allotment letter, dated 26.12.2017, and terminated the agreement, dated 15.03.2007. The Petitioner having not adhered to the terms of the agreement cannot claim that the Respondent owed a financial debt to it and squarely was in default in payment of the debt. 9. The Hon'ble Supreme Court in Innoventive Industries Ltd. v....