# Kul Bhushan Virmani & Ors v. Rajya Krishi Utpadan Mandi Parishad U.P. & Ors

- **Citation:** (2020) 1 ILRA 1076
- **Court:** High Court of Judicature at Allahabad
- **Decided:** 2020-01-08
- **Case number:** Writ C No. 17774 of 2013
- **Bench:** Pankaj Mithal, Vipin Chandra Dixit
- **Source:** https://unisonlegal.in/judgment/allahabad-high-court/kul-bhushan-virmani-ors-v-rajya-krishi-utpadan-mandi-parishad-u-p-ors-45536
- **Pages:** 6

## Headnote

S.C.,
Sri
Satish
Madhyan,
Sri
M.C.
Chaturvedi

A. Petitioner's bid for purchase of the
house was accepted-allotted the housePetitioner
paid
the
entire
sale
consideration of Rs. 4,75,000/--given
possession-sale
deed
not
executedadditional amount of Rs. 1,35,607/- for
getting sale deed registered -Respondent
obliged to execute the sale deed in favour
of the Petitioner without any additional
amount.

Writ Petition allowed. (E-9)

## Text

1076 INDIAN LAW REPORTS ALLAHABAD SERIES
with his personal work. Thereafter, the
petitioner Company approached another
person to act as its representative and got
the application filed without any further
delay on 11.6.2018. The Labour Court has
observed that the petitioner has offered a
confusing explanation and in case it was
having knowledge that its authorised
representative was visiting his home
district on regular basis, it ought to have
authorised another person to act on its
behalf.
Evidently,
the
Tribunal
has
completely
misread
the
explanation
offered by the petitioner. In M.K. Prasad
(supra) where also explanation offered
was that the counsel did not appear after a
particular date to contest the case without
any information to the party, the Supreme
Court has observed thus:-

"10. In the instant case, the
appellant tried to explain the delay in
filing the application for setting aside the
ex-parte decree as is evident from his
application filed under Section 5 of the
Limitation Act accompanied by his own
affidavit. Even though the appellant
appears not to be as vigilant as he ought
to have been, yet his conduct does not, on
the whole, warrant to castigate him as an
irresponsible litigant. He should have been
more vigilant but on his failure to adopt
such extra vigilance should not have been
made a ground for ousting him from the
litigation with respect to the property,
concededly to be valuable..."

18. In my opinion, it is a fit case where the
explanation offered has to be accepted in the
interest of justice. While at the same time, the
inconvenience cause to the respondent workman
could be compensated in terms of cost.

19. Accordingly, the application dated
11.6.2018 filed by the petitioner for setting
aside exparte award is allowed. The exparte
award dated 20.12.2017 is set aside subject to
payment of a cost of Rs.5000/- to the
respondent-workman within three weeks from
today. The Tribunal shall now decide the
matter afresh, after providing opportunity of
hearing to both the sides.

20. The writ petition stands allowed
accordingly.
----------
(2020)1ILR 1076

ORIGINAL JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 08.01.2020

BEFORE
THE HON'BLE PANKAJ MITHAL, J.
THE HON'BLE VIPIN CHANDRA DIXIT, J.

Writ C No. 17774 of 2013

Kul Bhushan Virmani & Ors. ...Petitioners
Versus
Rajya Krishi Utpadan Mandi Parishad U.P.
& Ors. ...Respondents

Counsel for the Petitioners:
Sri S.P. Singh

Counsel for the Respondents:
S.C.,
Sri
Satish
Madhyan,
Sri
M.C.
Chaturvedi

A. Petitioner's bid for purchase of the
house was accepted-allotted the housePetitioner
paid
the
entire
sale
consideration of Rs. 4,75,000/--given
possession-sale
deed
not
executedadditional amount of Rs. 1,35,607/- for
getting sale deed registered -Respondent
obliged to execute the sale deed in favour
of the Petitioner without any additional
amount.

Writ Petition allowed. (E-9)
(Delivered by Hon'ble Pankaj Mithal, J. &
Hon'ble Vipin Chandra Dixit, J.)
1 All. M/S Universal Cylinders Ltd. Vs. The Presiding Officer Labour Court (2), U.P. Kanpur & Ors.
1077

1. Heard Sri S.P. Singh,learned
counsel for the petitioner and Sri M.C.
Chaturvedi, Senior Counsel on behalf of
U.P.
Rajya
Krishi
Utpadan
Mandi
Parishad (In short Mandi Parishad).

2.

The
Mandi
Parishad
had
purchased
8
Higher
Income
Group
(H.I.G.) houses, situate in Pallaupuram,
Phase-II,
Meerut
from
Meerut
Development Authority (In short M.D.A.).

3. The aforesaid houses were put
under use of the Officers of the Mandi
Parishad as their official residences. After
several years, Mandi Parishad decided to
sell of the said houses and accordingly
invited tenders for the sale of the same.

4. The terms and conditions of the
tender/sale of the houses were contained in
the brochure issued with the tender forms.
The petitioner after purchasing the tender
form submitted his tender for the purchase
of one of the houses. His bid was accepted
as it was amongst the highest.

5. Accordingly, the petitioner was
allotted one of the houses i.e. MH-16 for a
total sale consideration of Rs.4,75,000/-
vide letter dated 19.08.1996. Subsequently
in place of house No.16, the petitioner was
allotted house No.14 for the same
consideration.

6. The petitioner deposited the entire
sale consideration of Rs.4,75,000/- and
was given possession of it on 25.10.1996.
However, the sale deed was not executed.
The petitioner repeatedly requested the
respondents to execute the sale deed but
instead of executing the sale deed, they
served him a letter dated 10.01.1999
requiring him to deposit an additional
amount of Rs.1,35,607/- for getting the
sale deed registered as the M.D.A. from
whom the Mandi Parishad had purchased
the said house was required to pay
additional amount as compensation to the
farmers from whom the land was acquired.
Subsequently, this demand of additional
amount was raised to Rs.1,90,101/- vide
letter
dated
03.03.2001
and
to
Rs.4,29,409/- vide letter dated 24.03.2009.

7. It is in the aforesaid background
that the petitioner has preferred this writ
petition
under
Article
226
of
the
Constitution of India seeking a writ in the
nature of mandamus commanding the
respondents to execute the sale deed in
respect of house No.MH-14, situate in
Pallaupuram, Phase-II, Meerut pursuant to
the allotment letter dated 19.08.1996 as
modified vide letter dated 04.09.1996
without realising any additional amount of
sale
consideration
except
the
one
mentioned in the allotment letter.

8. The respondents have filed counter
affidavit in response to the writ petition to
which even rejoinder affidavit has been
filed. Thus, as the pleadings are complete
counsel for the parties agree for the final
disposal of the petition at the stage of the
admission itself.

9. The submission of learned counsel
for the petitioner is that in view of the
allotment letter on record the petitioner is
entitle to a sale deed in respect of allotted
house on the sale consideration mentioned
therein as that was the highest amount of
the bid of the petitioner which was
accepted. The respondents cannot demand
any additional sale consideration for any
reason much less for the reason that the
previous owner of the house is required to
pay some additional compensation to the
farmers. The terms and conditions of the
1078 INDIAN LAW REPORTS ALLAHABAD SERIES
allotment or the tenders do not provide
that
the
bid
amount
or
the
sale
consideration on which the tender of the
petitioner is accepted can be revised
altered or changed.

10. Sri M.C. Chaturvedi, has justified
the action of the respondents in demanding
the additional amount on the ground that
under the terms and conditions of the
tender, the Director of the Mandi Parishad
had reserved right to modify the rules and
conditions of the tender at any time which
would be binding upon the parties.

11. He further submits that the
additional demand has been made for the
reason that pursuant to the judgement of
the Supreme Court the compensation
payable to the farmers had increased.
Therefore, the M.D.A. has shifted the
proportionate component of the said
burden upon the Mandi Parishad in respect
of the said house and accordingly,
additional demand has been made from the
petitioner.

12. The basic demand of additional
amount is Rs.1,35,607/- as on 11.01.1999
but on account of its non-payment by
applying interest it has increased from
time to time. The petitioner is not entitled
to any parity with the case of Ramesh
Chandra Jain as on reconsideration of his
matter, the demand of additional amount
against him was waived vide order dated
21.03.2011 of the Mandi Parishad but
subsequently after execution of the sale
deed in his favour on 26.05.2011 as it
transpired that the waiver is incorrect the
demand has again been issued in his name
of the additional amount.

13. There is no dispute to the fact
that the aforesaid 8 houses including the
one allotted to the petitioner were
constructed
by
the
M.D.A.
after
developing the acquired land. The M.D.A.
has sold the said houses to the Mandi
Parishad long back and the said sale deeds
have become conclusive.

14. It is pertinent to mention here
that once a sale deed has been executed
and the entire sale consideration has been
paid the vendor cannot subsequently raise
demand
of
any
additional
sale
consideration for any reason unless there is
contrary stipulation in the sale deed.

15. The Mandi Parishad had
purchased the said houses from the
M.D.A. and after utilising them for a
number of years had auctioned them and
that in the auction the following 8 persons
including the petitioner were successful
and their bids were accepted.

MH-1

Smt.
Naveena
Chabra
Rs.5.00 lacs.

MH-2

R.S. Kashyap

Rs.5.00 lacs

MH-3

S.S. Lohia

Rs.5.00 lacs

MH-4

Major
Narendra
Singh

Rs.5.00 lacs

MH-13
Shri
Yogendra
Gupta

Rs.4.75 lacs

MH-14
Kul
Bhushan
Virmani
Rs.4,75 lacs

MH-15
Smt. Vijay Laxmi

Rs.4.75 lacs

MH-16
Ramesh
Chandra Jain

Rs.4.75 lacs

16. The bid of the petitioner was for
Rs.4,75,000/- which amount the petitioner
had deposited in time. Accordingly, he
was put in possession of the house on
25.10.1996. Thus, only the sale deed
remain to be executed.
1 All. Kul Bhushan Virmani & Ors. Vs. Rajya Krishi Utpadan Mandi Parishad U.P. & Ors. 1079

17. Along with the petitioner the bid
of one Ramesh Chandra Jain was also
accepted in respect of MH-16 again for the
same amount of sale consideration of
Rs.4,75,000/-. He also deposited the entire
sale consideration in time but sale deed
even his favour was not executed. An
additional demand of similar amount was
also issued against him on 28.01.2008. In
fact the said demand was a common
demand to all the bidders including the
petitioner and the aforesaid Ramesh
Chandra Jain.

18. However, the Mandi Parishad
vide order dated 21.03.2011 ignored the
additional demand raised against the
aforesaid Ramesh Chandra Jain and
executed the sale deed in his favour on
26.05.2011. It is said that after the
execution of the sale deed it was realised
that the additional demand was incorrectly
ignored and therefore, again a fresh
demand of the additional amount has been
raised against him.

19. The terms and conditions of the
tender have been annexed by the petitioner
as annexure-1 to the petition and the same
are not in dispute. The said conditions
clearly provides for submission of tenders
in sealed covers in respect of aforesaid 8
houses.

20. The Committee constituted for
accepting the tenders was required to
accept the highest tenders in respect of
each of the houses whereupon 50% of the
tender amount was to be deposited
immediately and the balance in three
months.
It
also
provided
that
the
possession would be delivered only after
deposit of the entire amount.

21. Clause-12 of the conditions of
the tender is important which provides that
the Director Mandi Parishad is empowered
to modify the terms and conditions of the
tender and the conditions so modified
would be acceptable to the parties.

22. In addition to the above, Clause 5
provides that the Committee has the right
to exclude any property from the auction.

23. It is admitted that the house
allotted to the petitioner has not been
excluded from the auction and therefore,
its auction in favour of the petitioner is
final and conclusive as on date.

24. The Director Mandi Parishad has
not even modified any of the terms and
conditions of the tender notice.

25. The sale consideration is not part
of the tender or its terms and conditions
and as such could not have been modified
by taking aid of Clause 12 of the terms and
conditions of the tender. The said Clause
permitting modification in the terms and
conditions of the tender is in reference to
the manner of allotment as laid down in
the tender notice and is not referable to the
sale consideration which was not even
known to any one at the time of issuance
of the tender notice. The said Clause as
such do not envisages for modifying the
sale consideration or the bid amount
submitted by the petitioner.

26. In view of above, the submission
of Sri Chaturvedi, that the respondents are
entitle to modify the terms and conditions
and thus have right to increase the sale
consideration is bereft of merit and cannot
be accepted. The modification of the terms
and conditions of the tender is quite
distinct and separate an issue then the
1080 INDIAN LAW REPORTS ALLAHABAD SERIES
alteration or increase of sale consideration
which is not part of it.

27. Secondly, as stated above, the bid
amount tendered by the petitioner could
not be changed by the respondents. The
petitioner had never agreed or offered to
purchase the house in dispute on any
higher amount than that mentioned in the
tender. The said tender amount is the
amount offered and accepted and is not
liable to change unilaterally by the
respondents. At best the respondents could
have refused to accept the offer by holding
it to be on the lower side or cancelled the
auction or have excluded the property
from the auction which acts were never
performed by them.

28. Thus, there is concluded contract
between the parties for the sale of the said
house on the consideration on which the
tender was accepted i.e. Rs.4,75,000/-. The
respondents as such are not justified in
making any additional amount for any
reason.

29. Thirdly, the burden of the
M.D.A. to pay additional compensation to
the farmers for the acquired land cannot be
shifted upon the petitioner. The petitioner
is not the purchaser of the house from the
M.D.A. rather he has purchased it in
auction from the Mandi Parishad. The
petitioner is too remote to the liability of
payment of additional compensation, if
any, fastened upon the M.D.A.

30. Admittedly, Ramesh Chandra
Jain was also allotted one of the houses
pursuant to the same tender notice in
which the petitioner was allotted the house
in question. Both of them were allotted the
respective
houses
on
the
same
sale
consideration of Rs.4,75,000/-each. In the
case of Ramesh Chandra Jain, the demand of
additional amount of sale consideration was
waived and the sale deed was executed.

31. There is no reason to give a
different treatment to the petitioner and in
not executing the sale deed in his favour
by ignoring the additional demand.

32.

The
submission
that
the
additional demand was incorrectly waived
in the case of Ramesh Chandra Jain and
that after the execution of the sale deed a
fresh demand has been issued against him
is of no consequence as once a sale deed
has been executed, the amount mentioned
therein cannot be altered so as to permit
the
vendor
to
demand higher
sale
consideration.

33. In the last, the petitioner had
admittedly
deposited
the
entire
sale
consideration on or before 27.01.1997 whereas
the judgement of the Supreme Court directing
for payment of enhance compensation to the
farmers has come on 30.04.1997. During the
above period 27.01.1997 to 30.04.1997 there
was no legal impediment on part of the
respondents for not executing the sale deed in
favour of the petitioner. Had the sale deed been
executed during the above period, the
transaction would have come to a close,
leaving no room for demand of any additional
consideration. The respondents themselves are
to be blamed for the delay in executing the sale
deed or in not executing the sale deed within
the above period.

34. Thus, in the overall facts and
circumstances of the case, we are of the
opinion that there was a conscious
decision on part of the Mandi Parishad to
sell the house in question to the petitioner on
the sale consideration of Rs.4,75,000/- and
the petitioner having paid the said amount in
1 All. Kul Bhushan Virmani & Ors. Vs. Rajya Krishi Utpadan Mandi Parishad U.P. & Ors. 1081
time, the respondents were obliged to execute
the sale deed in his favour without demanding
any additional sale consideration.

35. Accordingly, a writ in the nature
of mandamus is issued to the respondents
to execute the sale deed of house No. MH14 situate in Pallaupuram, Phase-II,
Meerut in favour of the petitioner on the
terms and conditions of the allotment letter
dated 19.08.1996 and 04.09.1996 without
demanding any additional amount other
than that mentioned in the allotment letters
most expeditiously preferably within a
period of two months from the date a copy
of this order is produced before them.

36. The Writ Petition is allowed with
no order as to costs.
----------
(2020)1ILR 1080

ORIGINAL JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 13.11.2019

BEFORE
THE HON'BLE YASHWANT VARMA, J.

Writ C No. 22837 of 2002

State of U.P. ...Petitioner
Versus
The A.D.J. Sonbhadra & Ors.
 ...Respondents

Counsel for the Petitioner:
S.C.

Counsel for the Respondents:
Sri B.K. Srivastava, Sri R.C. Srivastava, Sri
R.V. Chaudhary, S.C.

A. Indian Forest Act, 1927 - Section 4 -
Notification
by
state
government
-
Section 5 - Bar of accrual of forest-rights
- U.P. Zamindari Abolition and Land
Reforms Act, 1950 - Section 131-A -
Bhumidhari rights in gaon sabha or state
government land in certain circumstances
- Limitation Act, 1963 - Section 5 -
Respondent
having
no
evidence
to
establish a right to possess or to work the
land as may have existed prior to 4 July
1970 when the plots in question came to
be included in the proposed reserved
forest - The respondent asserted a right
over the land only from 1978 - Neither
any evidence , nor any proof referred to
by the Forest Settlement Officer in order
to
establish
a
right
of
cultivatory
possession
being
exercised
by
the
respondent from prior to the issuance of
the notification under Section 4 - Barred
by
Section
5
of
the
1927
Act.
-
Respondent not entitled for benefit under
Section 131-A of U.P.Z.A. and Land
Reforms Act, 1950. (Para 23)

The dispute relates to Plot included in a
notification issued by the State under Section 4
of the Indian Forest Act, 1927 on 4 July 1970 -
Once the notification under Section 4 of the
1927 Act came to be issued on 4 July 1970, the
statutory restraint comprised in Section 5 of
that Act also applied - Section 5, it becomes
important to recall, prohibits the acquisition of
rights in or over land comprised in a Section 4
notification except by way of succession, grant,
or contract in writing made by the Government
- Section 131-A as is evident does not override
or eclipse the prohibition put in place by
Section 5 of the 1927 Act - to accord a
harmonious construction upon Section 131-A of
the 1950 Act bearing in mind Section 5 of the
1927 Act, it must be interpreted to extend at
best to land held in cultivatory possession from
prior to the issuance of the notification under
Section 4. (Para 22 & 24)

Held: - No rights could have either accrued,
stood created or been acquired after the
notification under Section 4 came to be issued
and the land stood included in the proposed
reserved forest. The claim of the respondent
barred by Section 5 of the 1927 Act. No relief
was liable to be granted to the private
respondent under Section 131-A of U.P.