( 1 ) IN a suit for specific performance of an agreement to sell dated 14th January, 1985 relating to property bearing plot No. G-1, Rajouri Garden, New Delhi issues had been framed on 25th July, 1991 and it has been ordered that issue No. 4 be heard as a preliminary issue. Issue No. 4, reads as under:-

"whether the suit is maintainable in view of provisions of Section 269 UC of the Income-tax Act? If so, its effect?"

( 2 ) IT is submitted by Mr. Makhija, counsel for the plaintiff that Section 269 UC of the Income-tax Act (hereinafter referred to as the act ) is not attracted since it is an agreement to sell the property, specific performance whereof is claimed in the suit and the consideration is more than Rs. 5 lakhs. That in the present case the agreement is dated 14th January, 1985 and Section 269 UC of the Act came into force in 1987. That apart from the relief of specific performance, the suit of the plaintiff is for compensation and damages and suit would be maintainable and the question of non maintainability of the suit will not come in the way of the plaintiff.

( 3 ) AS against this, it is submitted by Mr. R. G. Srivastava, counsel appearing for defendants 1