Supreme Court Dismisses Appeal by Purchaser in Punjab Pre-emption Act Case Due to Co-sharer Right of Vendor's Brother. Brother of Vendor Not Party to Sale Held 'Other Co-sharer' Under Section 15(1)(b) Clause Fourthly, and Right of Pre-emption Upheld.

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Case Note & Summary

The dispute arose from a suit for pre-emption under the Punjab Pre-emption Act, 1913. The respondent Anil Kumar filed the suit claiming right of pre-emption as brother of the vendor Neeru, who had sold the disputed property to the appellant Karnail Singh by registered sale deed. The trial court decreed the suit, the appellate court confirmed it, and the High Court of Punjab and Haryana dismissed the second appeal in limine by order dated 22 January 1985. The Supreme Court granted special leave after noticing that the very clause relied upon by the respondent, namely clause secondly of Section 15(1)(b) of the Act, had been declared ultra vires Articles 14 and 15 of the Constitution in Atam Prakash v. State of Haryana. The core legal question was whether the respondent, a brother of the vendor and not a party to the sale, could still claim pre-emption as an 'other co-sharer' under clause fourthly of Section 15(1)(b), despite the invalidation of clauses (i) to (iii). The appellant argued that there was no evidence to show that the respondent was a co-sharer, and that the sale deed recitals indicated a prior partition under which the vendor Neeru obtained the property towards her share, thereby negating co-ownership. The respondent produced a document of 1974-75, already marked in the trial court, evidencing co-ownership. The Court relied on the three-Judge bench decision in Bhikha Ram v. Ram Sarup, which had interpreted the expression 'other co-sharers' in clause fourthly to include relatives specified in the erstwhile first three clauses if those relatives happened to be co-sharers. The Court held that Atam Prakash did not intend to deny the right of pre-emption to kinsfolk who were also co-sharers, as that would be discriminatory. Applying this principle, the Court concluded that even relations otherwise not entitled under clauses (i) to (iii) would become co-sharers under clause fourthly if they were co-owners. Since the respondent Anil Kumar was not a party to the sale transaction executed by his sister, he qualified as an 'other co-sharer' under clause fourthly and was entitled to pre-emption. The Court found no reason to remit the matter for further evidence because the document of 1974-75 demonstrated co-ownership. Accordingly, the appeal was dismissed though for different reasons, with no order as to costs.

Headnote

A) Constitutional Law - Ultra Vires Provisions - Clauses (i) to (iii) of Section 15(1)(b) Punjab Pre-emption Act, 1913 as amended in 1960 were declared ultra vires Articles 14 and 15 of the Constitution in Atam Prakash v. State of Haryana - The court noted that the claim based on clause secondly had been declared ultra vires, hence special leave was granted. Held that classification based on consanguinity is offensive to Articles 14 and 15, but co-ownership is a valid basis for pre-emption (Paras 1-2).

B) Punjab Pre-emption Act, 1913 - Right of Pre-emption of Co-sharers - Section 15(1)(b) clause fourthly - The expression "other co-sharers" includes relatives specified in erstwhile first three clauses if they happen to be co-sharers; the word "other" conveys possibility of their being co-sharers. Court relied on Bhikha Ram v. Ram Sarup which held that Atam Prakash did not intend to deny right to kinsfolk-co-sharers. Held that respondent Anil Kumar, being brother of vendor and not party to sale, is an other co-sharer under clause fourthly and entitled to pre-emption (Paras 2-3).

C) Evidence - Proof of Co-ownership - Section 15(1)(b) clause fourthly, Punjab Pre-emption Act, 1913 - Appellant contended no evidence of co-sharer status; sale deed recitals showed prior partition. Respondent produced document of 1974-75 already marked in trial court showing co-owners. Court held no justification to remit for further evidence and dismissed appeal (Para 3-4).

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Issue of Consideration

Whether a brother of vendor, not party to sale, is entitled to pre-emption as 'other co-sharer' under clause fourthly of Section 15(1)(b) of Punjab Pre-emption Act, 1913 after clauses (i)-(iii) were declared ultra vires; and whether evidence established co-sharer status.

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Final Decision

The appeal was dismissed, though for different reasons, with no order as to costs. The Supreme Court held that Anil Kumar, as brother of the vendor and not a party to the sale, is an 'other co-sharer' under clause fourthly of Section 15(1)(b) of Punjab Pre-emption Act, 1913, and entitled to claim pre-emption. The Court found no justification to remit the matter for further evidence.

Law Points

  • Clauses (i)-(iii) of Section 15(1)(b) of Punjab Pre-emption Act
  • 1913 as amended in 1960 are ultra vires Articles 14 and 15 of Constitution
  • Classification based on consanguinity is unconstitutional but co-ownership is valid basis for pre-emption
  • The expression 'other co-sharers' in clause fourthly includes relatives from erstwhile clauses if they are co-owners
  • A co-sharer not party to sale can claim pre-emption
  • Prior partition recital does not necessarily negate co-ownership if other document shows co-ownership
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Case Details

1995 LawText (SC) (01) 4

1995-01-10

K. Ramaswamy, Sujata V. Manohar

1995 SCC (2) 9, JT 1995 (2) 516, 1995 SCALE (1)141

K.K. Mohan (for the appellant); Not mentioned (for respondents)

Karnail Singh

Anil Kumar and Another

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Nature of Litigation

Civil suit for pre-emption under the Punjab Pre-emption Act, 1913.

Remedy Sought

The respondent Anil Kumar sought a decree of pre-emption in respect of property sold by his sister Neeru to the appellant Karnail Singh.

Filing Reason

Anil Kumar claimed right of pre-emption as brother of the vendor under Section 15(1)(b) clause secondly of the Punjab Pre-emption Act, 1913.

Previous Decisions

Trial court decreed the suit; appellate court confirmed the decree; High Court dismissed second appeal in limine; Supreme Court granted special leave after clauses (i)-(iii) were declared ultra vires.

Issues

Whether a brother of the vendor, not a party to the sale, is entitled to pre-emption as 'other co-sharer' under clause fourthly of Section 15(1)(b) of Punjab Pre-emption Act, 1913 after clauses (i)-(iii) were declared ultra vires. Whether the evidence on record established that the respondent Anil Kumar was a co-sharer, despite the sale deed recitals indicating a prior partition.

Submissions/Arguments

Appellant contended that there was no evidence to show that Anil Kumar was a co-sharer; the recitals in the sale deed showed a prior partition under which Neeru obtained the property towards her share, so Anil Kumar could not be a co-sharer. Respondent produced a document of 1974-75 already marked in the trial court which showed that the parties were co-owners, and relied on Atam Prakash and Bhikha Ram to claim pre-emption as a co-sharer under clause fourthly.

Ratio Decidendi

The expression 'other co-sharers' in clause fourthly of Section 15(1)(b) of the Punjab Pre-emption Act, 1913 includes relations specified in erstwhile clauses (i)-(iii) if those relations happen to be co-owners. Classification based on consanguinity is unconstitutional under Articles 14 and 15 of the Constitution, but co-ownership is a valid basis for pre-emption. A co-sharer who is not a party to the sale transaction is entitled to claim pre-emption.

Judgment Excerpts

The right of pre-emption to co-sharers is held to be ultra vires the Constitution. Therefore, it is difficult to hold that this Court intended to deny the right of pre-emption of those kinsfolk even if they happened to be co-sharers. That would clearly be discriminatory. even relations who would be otherwise not entitled under clauses (i) to (iii) of Section 15(1)(b) of the Act would also become 'co-sharers' under clause fourthly. The appeal is accordingly dismissed though for different reasons. No costs.

Procedural History

Anil Kumar filed a suit for pre-emption under Section 15(1)(b) clause secondly of Punjab Pre-emption Act, 1913. The trial court decreed the suit, and the appellate court confirmed the decree. The second appeal was dismissed in limine by the Punjab and Haryana High Court on 22 January 1985. Karnail Singh appealed to the Supreme Court by special leave. During pendency, Atam Prakash v. State of Haryana declared clauses (i)-(iii) of Section 15(1)(b) ultra vires, and Bhikha Ram v. Ram Sarup clarified the scope of clause fourthly. The Supreme Court granted leave and eventually dismissed the appeal.

Acts & Sections

  • Punjab Pre-emption Act, 1913: Section 15(1)(b)
  • Constitution of India: Articles 14, 15
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