A statutory obligation exists to execute a sale deed after ten years if conditions are met; previous authorities' refusals are overridden by statutory laws.

ORAL ORDER

1. The prayer in this petition is for issuance of a direction to respondent No.1 to consider the representation dated 05.09.2020 copy of which is produced at Annexure “AE” and also to direct respondent No.2 to execute the absolute sale deed in respect of the petition schedule site.

2. The facts in brief are that, on 07.01.1985, the petitioner had applied for allotment of a site from the then City Improvement Trust Board (“CITB”), Shimoga. CITB resolved to allot a plot measuring28x18 meters in favour of the petitioner for the purpose of constructing a school building on lease-cum-sale basis.

3. A lease-cum-sale agreement was also executed in favour of the petitioner on 26.09.1987 after the petitioner had paid the requisite allotment price. This registered lease-cum-sale agreement, as could be seen from Annexure ‘J’, is referable to Rule 22(4)¹ of the Karnataka Improvement Boards Rules, 1976 (for short, ‘the 1976 Rules’), which prescribes Form No.II, for executing a lease-cum-sale agreement in respect of the site allotted by the erstwhile CITB.

22. Conditions of allotment and Sale of site :-

After the payment under sub-rule (2) is made, the Board shall intimate the allottee the actual measurement of the site and the particulars thereof and a lease- cum-sale agreement in Form II shall thereafter be executed by the allottee and the Board and registered by the allottee. If the agreement is not executed within forty- five days after the Board has intimated the actual measurements and price of the site to the allottee, the earnest money paid by the allottee may be forfeited, the allotment of the site may be cancelled and the amount paid by the allottee after deducting the earnest money be refunded to him. Every allottee shall construct a building on the site in accordance with the plan and design approved by the Board. If in any case it is considered necessary to add any additional conditions in the agreement, the Board may make such conditions. Approval of the concerned Municipal Council or Corporation of the plans and designs shall be necessary when the layout in which the site is situated is transferred to the control of the said Municipal Council or Corporation.

4. Clause 12 of the said lease-cum-sale agreement reads as follows:

“12. If the Lessee/Purchaser has performed all the conditions mentioned herein and committed no breach thereof the Lesser/Vendor shall at the end of ten years referred to in clause I² sell the property to the Lessee/Purchaser and all attendant expenses in connection with such sale, such as stamp duty, registration charges, etc., shall be borne by the Lessee/Purchaser.”

5. As could be seen from Clause 12, on the lessee performing all the conditions mentioned therein and having committed no breach, the vendor is mandatorily required to execute a sale deed in favour of the lessee—purchaser at the end of ten years.years from (here enter the date of giving possession) 26.09.1987 or in the event of lease being determined earlier till the date of such termination. The amount deposited by the Lessee/Purchaser towards the value of the property shall during the period of tenancy, be held by the Lessor/Vendor as security deposit for the due performance of the terms and conditions of these presents.”

6. In other words, as per this registered lease-cum-sale agreement, the CITB undertook that it would execute a sale deed at the end of ten years in favour of the petitioner if all the conditions of lease had been complied with.

7. On the completion of ten years, the petitioner made an application for execution of the sale deed, but this was refused by the Authority on the ground that the sale deed could not be executed in respect of a civic amenity site.

8. It appears that, thereafte