TaxTMI 
TaxTMI 
2021 (4) TMI 1327
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....injunction to deposit the title deeds with the Court. It was alleged in the plaints that the Respondent entered into separate agreements with the Appellants who belong to the same family for sale of property situated at Door No.325, Arcot Road, Vadapalani, Chennai on 20.03.1991. As per the terms of the agreement, the sale was to be concluded within a period of four months. The Respondents would produce the encumbrance certificate much before the execution and registration of the sale deeds. The Respondents should also obtain the income tax clearance certificate under Section 230-A of the Income Tax Act, 1961. To comply with the obligation stipulated in the agreement, the first Respondent applied to the Income Tax authorities for permission to alienate the property. The Income Tax authorities passed an order for compulsory acquisition of property on 25.06.1991. 3. The Writ Petition filed by the Respondents challenging the order of the Income Tax authority was allowed by the Madras High Court by its judgment dated 21.12.1992. The authorities were directed to reconsider the matter afresh. The Income Tax authorities passed another order on 22.02.1993 directing purchase of the proper....
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....willing to perform their part of the agreement. 6. All the four suits were tried together and a learned Single Judge of the High Court decreed the suits on 17.07.2003. The Appellants were directed to deposit the balance sale consideration along with interest at the rate of 12 per cent within eight weeks from the date of decree and upon such deposit, the Respondents were directed to execute the sale deeds in favour of the Appellants. Thereafter, the Respondents were directed to deliver possession of the property to the Appellants. The Appellants deposited the balance consideration on 01.08.2003. The Respondents filed original suit appeals against the judgment of the learned Single Judge which were allowed by a Division Bench of the High Court on 25.07.2008. The judgment of the Division Bench setting aside the decrees passed in favour of the Appellants is the subject matter in the present Appeals. 7. While decreeing the suit filed by the Appellants, the learned Single Judge of the High Court expressed his opinion that it cannot be said that the Appellants did not evince any interest in performing their part of the agreement nor can it be said that they did not have sufficient f....
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....the MOUs have to be read together. It was argued on behalf of the Appellants that the sale consideration of all the four agreements for purchase of the property is Rs. 37/- lakhs out of which Rs. 34/- lakhs was paid by August, 1994. Mr. Srivatsa, submitted that the demand made by the Appellants for execution of the sale deeds was rejected by the Respondents on the ground that the Writ Appeal filed by the Income Tax Department against the judgment of the High Court dated 11.09.1998 was pending. It was only on receipt of information by the Appellants that the property was already encumbered, that the Appellants filed suits for specific performance. According to the Appellants, it cannot be said that there was any delay in filing the suits. The Appellants were always ready and willing to perform their part of the agreement. The Appellants asserted that the interpretation of the MOU is contrary to well settled law of this Court. The Division Bench of the High Court placed undue emphasis on the word "immediately" to conclude that the Appellants failed to pay the balance consideration immediately after the disposal of the Writ Petition. By placing reliance on the judgments of this Court ....
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....the relief claimed for. It was argued on behalf of the Respondents that the escalation in prices of properties in Chennai is a relevant factor. Mr. Narasimha, supported the judgment of the Division Bench of the High Court by arguing that the Appellants were not put in possession of the property at the time of the agreement. There is no covenant in the MOU that the possession shall be given to the Appellants. The Appellants have not explained as to how they got possession of the first floor. The Appellants highhandedly made attempts to disturb the possession of the Indian Bank from a portion of the building. As the First Appellate Court is the last Court on findings of fact, this Court should refrain from interfering with the judgment of the Division Bench of the High Court. 11. There is no dispute about the agreements dated 20.03.1991 and the MOUs between the parties. It is also a fact that Income Tax Department wanted to compulsorily acquire the property, due to which Writ Petitions were filed which were disposed of on 11.09.1998. Writ Appeals filed by the Department were pending on the date of filing of the suit. The relevant clause in the MOU is that the Appellants shall pay ....
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.... interpretation of clause 3 of the MOUs as stated earlier. 13. The High Court highlighted the conduct of the Appellants to deny relief. The failure of the Appellants in not pleading and proving how they were put in possession of a part of the property, the frivolous complaint about vacant possession not being given by the Respondents and the attempt made by the Appellants to take forcible possession of a part of the property were commented upon to hold that the Appellants were disentitled to equitable relief. There is not dispute that the Appellants were in possession of the first floor of the property. Details about the manner in which possession was given to the Appellants not being pleaded cannot be a ground to deny relief. The contention of the Appellants before the High Court was that the Respondents should demolish the super structure and hand over vacant possession of the land. The High Court observed that the Appellants who were in possession of a part of the property cannot make such an inane plea. According to the terms of the agreement, the Respondents had to hand over vacant possession of the land. The Appellants submitted that no steps were taken to demolish the str....