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Sunday, April 24, 2011

Registration Act, 1908, S.17 (1) (b)--Requires that where the Conveyance Deed has been prepared, such deed should be registered within a period of 4 months after its execution

2011(1) LAW HERALD (SC) 788
IN THE SUPREME COURT OF INDIA
Before
The Hon’ble Mr. Justice B. Sudershan Reddy
The Hon’ble Mr. Justice Surinder Singh Nijjar
Civil Appeal No. 550 of 2003
DLF Universal Ltd. & Anr.
v.
Director, T.&C. Planning Haryana & Ors.
{Decided on 19/11/2010}
HUDA--Director Town & Country Planning Haryana is not authorized to interfere with agreements voluntarily entered into by and between the owner/colonizer and the purchasers of plots/flats--It do not require the approval or ratification by the Director nor is the Director authorized to issue any direction to amend, modify or alter any of the clauses in the agreement
Agreement to Sell--Stamp Act or Registration Act has no provision imposing any restriction on the assignment or transfer of rights under a sale/purchase agreement by the purchaser to a third party, before the execution of any conveyance deed in respect of any immoveable property.
(A) Haryana Development and Regulation of Urban Areas Act, 1975-- Ss.2, 3, 5 and R.11 B--Haryana Development and Regulation of Urban Areas Rules, 1976, R.26(2)--Director Town & Country Planning Haryana is not authorized to interfere with agreements voluntarily entered into by and between the owner/colonizer and the purchasers of plots/flats--It do not require the approval or ratification by the Director nor is the Director authorized to issue any direction to amend, modify or alter any of the clauses in the agreement--Held, there is no provision in the Act, Rules or on the license that empowers the director to fix the sale price of the plots or the cost of flats
The appellants were granted license under the Act for setting up residential colonies--The appellants entered into required agreements with the Governor of Haryana--Plot sold--Allotted to various buyers by appellants--under separate agreements--Mutual rights and obligations structured--The Director, Town and Country Planning, Haryana without any notice issued Impugned memo--Challenged before the High Court--The High Court upheld the validity of the impugned memo--Dismissed the writ petition--Now, this appeal--Supreme Court opined that the Director is not authorized to interfere with agreements voluntarily entered into by and between the owner/colonizer and the purchasers of plots/flats--It do not require the approval or ratification by the Director nor is the Director authorized to issue any direction to amend, modify or alter any of the clauses in the agreement--Held, there is no provision in the Act, Rules or on the license that empowers the director to fix the sale price of the plots or the cost of flats--The impugned directions issued by the Director are beyond the limits provided by the Act--Suffer from lack of power--Order which is ultra virus or out side jurisdiction is void in law--The Judgment of the High Court set aside--Appeals allowed. (Para 27, 36, 37, 43)
(B) Haryana Development and Regulation of Urban Areas Rules, 1976, R.26(2)--Director Town & Country Planning Haryana--Function & Duties--Director not to sit in judgment on the perceived fairness of any clauses incorporated in the agreement entered by the parties--License do not prohibit incorporation of clause in the agreement to be entered between the owners and the purchasers--Nor agreement empowers the Director to sit in appeal over the agreement entered by the owners with the purchasers of the plots. (Para 15)
(C) Registration Act, 1908, S.17 (1) (b)--Requires that where the Conveyance Deed has been prepared, such deed should be registered within a period of 4 months after its execution--It does not contain any provision requiring that a Conveyance Deed should be executed within any period of time after the execution of sale agreement between the buyer and the seller. (Para 19)
(D) Agreement to Sell--Stamp Act or Registration Act has no provision imposing any restriction on the assignment or transfer of rights under a sale/purchase agreement by the purchaser to a third party, before the execution of any conveyance deed in respect of any immoveable property. (Para 19)
(E) Haryana Development and Regulation of Urban Areas Act, 1975 and Rules, 1976--Directions issued by the Director suffer from lack of power--If any order which is ultra virus or outside jurisdiction is void in law.
2011(1) LAW HERALD (SC) 788
IN THE SUPREME COURT OF INDIA
Before
The Hon’ble Mr. Justice B. Sudershan Reddy
The Hon’ble Mr. Justice Surinder Singh Nijjar
Civil Appeal No. 550 of 2003
DLF Universal Ltd. & Anr.
v.
Director, T.&C. Planning Haryana & Ors.
{Decided on 19/11/2010}
HUDA--Director Town & Country Planning Haryana is not authorized to interfere with agreements voluntarily entered into by and between the owner/colonizer and the purchasers of plots/flats--It do not require the approval or ratification by the Director nor is the Director authorized to issue any direction to amend, modify or alter any of the clauses in the agreement
Agreement to Sell--Stamp Act or Registration Act has no provision imposing any restriction on the assignment or transfer of rights under a sale/purchase agreement by the purchaser to a third party, before the execution of any conveyance deed in respect of any immoveable property.
(A) Haryana Development and Regulation of Urban Areas Act, 1975-- Ss.2, 3, 5 and R.11 B--Haryana Development and Regulation of Urban Areas Rules, 1976, R.26(2)--Director Town & Country Planning Haryana is not authorized to interfere with agreements voluntarily entered into by and between the owner/colonizer and the purchasers of plots/flats--It do not require the approval or ratification by the Director nor is the Director authorized to issue any direction to amend, modify or alter any of the clauses in the agreement--Held, there is no provision in the Act, Rules or on the license that empowers the director to fix the sale price of the plots or the cost of flats
The appellants were granted license under the Act for setting up residential colonies--The appellants entered into required agreements with the Governor of Haryana--Plot sold--Allotted to various buyers by appellants--under separate agreements--Mutual rights and obligations structured--The Director, Town and Country Planning, Haryana without any notice issued Impugned memo--Challenged before the High Court--The High Court upheld the validity of the impugned memo--Dismissed the writ petition--Now, this appeal--Supreme Court opined that the Director is not authorized to interfere with agreements voluntarily entered into by and between the owner/colonizer and the purchasers of plots/flats--It do not require the approval or ratification by the Director nor is the Director authorized to issue any direction to amend, modify or alter any of the clauses in the agreement--Held, there is no provision in the Act, Rules or on the license that empowers the director to fix the sale price of the plots or the cost of flats--The impugned directions issued by the Director are beyond the limits provided by the Act--Suffer from lack of power--Order which is ultra virus or out side jurisdiction is void in law--The Judgment of the High Court set aside--Appeals allowed. (Para 27, 36, 37, 43)
(B) Haryana Development and Regulation of Urban Areas Rules, 1976, R.26(2)--Director Town & Country Planning Haryana--Function & Duties--Director not to sit in judgment on the perceived fairness of any clauses incorporated in the agreement entered by the parties--License do not prohibit incorporation of clause in the agreement to be entered between the owners and the purchasers--Nor agreement empowers the Director to sit in appeal over the agreement entered by the owners with the purchasers of the plots. (Para 15)
(C) Registration Act, 1908, S.17 (1) (b)--Requires that where the Conveyance Deed has been prepared, such deed should be registered within a period of 4 months after its execution--It does not contain any provision requiring that a Conveyance Deed should be executed within any period of time after the execution of sale agreement between the buyer and the seller. (Para 19)
(D) Agreement to Sell--Stamp Act or Registration Act has no provision imposing any restriction on the assignment or transfer of rights under a sale/purchase agreement by the purchaser to a third party, before the execution of any conveyance deed in respect of any immoveable property. (Para 19)
(E) Haryana Development and Regulation of Urban Areas Act, 1975 and Rules, 1976--Directions issued by the Director suffer from lack of power--If any order which is ultra virus or outside jurisdiction is void in law.