ORDER

1. Leave granted.

2. In respect of the property known as "Modi Bungalow", Napean Sea Road, Bombay, an agreement dated 24-10-1993 was entered into by Respondents 5 and 6, with the appellants for its sale for a consideration of Rs 19.25 crores payable in instalments. On 30-12-1993, the appropriate authority issued a notice under Section 269-UD(1-A) of the Income Tax Act, 1961 calling upon the transferors and transferees to show cause as to why the Central Government should not make an order for purchase of the property. On 27-1-1994, an order was made by the appropriate authority under Section 269-UD(1) of the Act for purchase of the property at a discounted value of Rs 18,68,54,154. By virtue of Section 269-UD(1), on making of the said order by the appropriate authority, the property vested in the Central Government on the date of the order.

3. In terms of the purchase order made under Section 269-UD(1), the Central Government was required to pay the amount of Rs 18,68,54,154 as the consideration for the said property in accordance with the provisions of the statute. It may be mentioned that the sum of Rs 18,18,54,154 alone was tendered by a cheque dated 25-2-1993 sent by speed post to the transferors which was delivered on 1-3-1994 against the amount of consideration of Rs 18,68,54,154 payable in terms of the said purchase order made by the appropriate authority. In other words the amount so paid on 1-3-1994 to the transferors by the Central Government fell short of the total consideration by the sum of Rs 50 lakhs only. The balance amount of Rs 50 lakhs was paid by the Central Government to the transferors much later on 8-4-1994 only. The only point involved for decision is the effect of non-payment of the balance amount of Rs 50 lakhs along with the amount which was paid by cheque delivered to the transferors by speed post on 1-3-1994.

4. According to Section 269-UG(1) the amount the consideration shall be tendered to the transferor within a period of one month from the end of the month in which the immovable property concerned becomes vested in the Central Government. For this reason the entire consideration had to be paid by the end of the month of February 1993 since the property had vested in the Central Government on 27-1-1994 when the purchase order was so made by the appropriate authority. Section 269-UH provides for the consequences of re-vesting of the property in the transferor on failure of payment or the deposit of the consideration in terms of Section 269-UG. Sub-section (1) of Section 269-UH to the extent it is material reads as under :

"269-UH. If the Central Government fails to tender under sub-section (1) of Section 269-UG or deposit under sub-section (2) or sub-section (3) of the said section, the whole or any part of the amount of consideration required to be tendered or deposited thereunder within the period specified therein in respect of any immovable property which has vested in the Central Government under sub-section (1) or as the case may be, sub-section (6) of Section 269-UE, the order to purchase the immovable property by the Central Government made under sub-section (1) of Section 269-UD shall stand abrogated and the immovable property shall stand re-vested in the transferor after the expiry of the aforesaid period."

5. The first submission of Shri Nariman, learned counsel for the appellant is that the tender of the amount of Rs 18,18,54,154 by cheque which the delivered to the transferor by speed post on 1-3-1994 was also not within the time prescribed by Section 269-UG(1) since the last date for the purpose was 28-2-1994. We are unable to accepted this submission. The cheque for that amount is dated 25-2-1994 and the same was despatched by speed post on 28-2-1994. Moreover, there is an affidavit filed on behalf of the Central Government wherein it is stated that the cheque was so despatched by speed post at the request of the transferor who expressed the inability to come and collect it p