The Allahabad High Court has directed the Uttar Pradesh government to deposit Rs 1.21 crore, along with 8% annual interest, towards the unpaid consideration for 1,512 sq metres of temple land in Ayodhya that was taken over after execution of a sale deed in December 2023.
The order was passed by a Bench of Justice Shekhar B. Saraf and Justice Abdhesh Kumar Chaudhary while hearing a petition filed by Shri Thakur Ram Janki Sugrivji Virajman Mandir. The land, situated at Sugriv Kila near the Ram Janmabhoomi temple, was sought by the authorities for development works connected with the temple
The dispute relates to land recorded under Khata No. 44/2 and Khasra No. 246. According to the temple, the property had consistently been recorded in the name of the deity in successive revenue settlements, despite changes in plot numbers.
Following negotiations between the temple and the authorities, a Memorandum of Understanding was executed concerning the cost of the land and construction. A registered sale deed was subsequently executed on December 22, 2023, fixing the total consideration at Rs 1,38,44,559. This included Rs 1,20,96,000 towards the land and Rs 17,48,559 towards construction.
The temple told the Court that although the entire amount was payable, the authorities assured it that the consideration would be transferred through RTGS within 15 days. The temple’s bank account details were also incorporated in the sale deed. Relying on the assurance, the temple handed over possession of the property.
The Court noted that the sale deed was registered at around 9 pm on December 22, 2023, and possession was taken immediately. However, the promised payment was not made within the stipulated period.
The State did not dispute the agreed sale consideration. It submitted that the construction component had already been paid but contended that the remaining Rs 1,20,96,000 was not payable since the land was allegedly Nazul land belonging to the government.
The State also questioned the authority of the temple’s Sarvarahkar to execute the sale deed and stated that, since the title was disputed, it had instituted a civil suit seeking cancellation of the December 22, 2023 sale deed.
The High Court questioned the State’s conduct, observing that there was no dispute that the sale deed had been executed and that the land component of the consideration remained unpaid. It found it “rather amusing” that the State was disputing the temple’s title to avoid payment while continuing to retain possession of the property.
The Bench observed that if the authorities were genuinely not convinced about the temple’s ownership, the property ought to have been returned. Their continued possession, followed by the filing of a suit seeking cancellation of the sale deed, “speak volumes” about their conduct.
The Court further observed that the authorities’ conduct could not be described as “fair, proper or reasonable”. It prima facie appeared that the petitioner had been “fooled” into surrendering possession through the sale deed, after which the State “volte-faced” and claimed the land was government property. The bench remarked that the situation appeared carefully orchestrated, observing that the authorities seemed focused on hastily taking possession of the land while subsequently withholding the promised payment.
At the same time, the High Court made clear that it was not adjudicating the title dispute. It held that the question of ownership could not be decided in writ proceedings without a full-fledged trial and would have to be determined by the civil court where the State’s suit is pending.
The Court also reiterated that payment of the entire sale consideration at the time of execution of a sale deed is not an essential condition for completion of a sale. Non-payment of the balance consideration does not invalidate a registered sale deed, and the unpaid amount can be recovered through appropriate proceedings. Since the civil suit is pending, the High Court directed the State to deposit the outstanding Rs 1,20,96,000 along with 8% annual interest, calculated from the expiry of the 15-day period promised for payment.
The amount is to be deposited within four weeks in an interest-bearing fixed deposit with a nationalised bank in the name of the Additional Chief Judge-II (Junior Division), before whom the civil suit is pending. The trial court will decide whether the amount, wholly or partly, along with accrued interest, should be released to the temple depending on the circumstances and outcome of the suit. The High Court also directed that the civil suit concerning the 2023 sale deed be expedited, with an effort to conclude the trial preferably within one year.
The Bench clarified that its observations were confined to the conduct surrounding execution of the sale deed and transfer of possession and that it had not adjudicated the title to the property. Both parties remain free to place their documents and evidence before the civil court, with all questions of law left open.
The post Allahabad High Court directs UP Government to deposit Rs 1.21 Crore with 8% interest for Ayodhya temple land appeared first on India Legal.