Case Note & Summary
The appeal arose from a suit for pre-emption filed by the predecessor-in-interest of respondent No.1 (original plaintiff) against the appellant and others concerning a property in Ajmer. The plaintiff claimed a right of pre-emption under the Rajasthan Pre-Emption Act, 1966, based on a common portion in the property. The suit was filed on 10.01.1974, challenging a sale deed dated 21.01.1974 executed in favor of the appellant. The defendants raised the plea of limitation, arguing that earlier sale deeds of 1945, 1946, and 1966 (the last after the Act came into force) had not been challenged, and thus the right was barred. The Trial Court initially decreed the suit, but on appeal, additional issues were framed, and the matter was remitted. The Trial Court then held the suit barred by limitation, relying on Kutina Bibi v. Baikuntha Chandra Dutta. The first appellate court affirmed. However, the Rajasthan High Court reversed, holding that each sale gives a fresh cause of action and the suit was within time. The Supreme Court framed the question of whether limitation commences from the first sale after the Act or from any subsequent sale. The Court examined the nature of the right of pre-emption, noting it is a weak right of substitution, not re-purchase. It held that each sale is a separate transaction, and the limitation period under Article 97 of the Limitation Act, 1963 runs from the date of registration or possession of the sale deed in question. The failure to challenge earlier sales does not constitute waiver or estoppel. The Court dismissed the appeal, affirming the High Court's decision and remanding the matter for trial on merits.
Headnote
A) Pre-emption Law - Nature of Right - Primary and Secondary Rights - Rajasthan Pre-Emption Act, 1966 - The right of pre-emption is a weak right, consisting of a primary right to an offer before sale and a secondary right to substitute the vendee. The pre-emptor must have a superior right to the vendee at the time of exercise. (Paras 2, 11) B) Limitation - Pre-emption Suit - Article 97, Limitation Act, 1963 - Rajasthan Pre-Emption Act, 1966 - Each sale of property gives a fresh cause of action for a pre-emption suit. Limitation of one year runs from the date of registration of the sale deed or possession, not from earlier sales. Failure to challenge prior sales does not bar the right. (Paras 7, 10-11) C) Pre-emption - Waiver by Conduct - Rajasthan Pre-Emption Act, 1966 - The plea of waiver by conduct, based on the plaintiff's failure to challenge earlier sales, was rejected. The court held that each sale is a separate transaction and the right accrues afresh. (Paras 8-9, 11)
Issue of Consideration
Whether limitation for a suit for pre-emption under the Rajasthan Pre-Emption Act, 1966 commences from the first sale deed after the Act came into force or from any subsequent sale, and whether failure to challenge earlier sales bars the right.
Final Decision
The Supreme Court dismissed the appeal, affirming the High Court's judgment. The Court held that each sale of property gives a fresh cause of action for a pre-emption suit, and limitation runs from the date of registration or possession of the sale deed in question. The matter was remitted to the first appellate court for decision on merits.
Law Points
- Right of pre-emption
- Limitation
- Article 97 Limitation Act
- 1963
- Rajasthan Pre-Emption Act
- 1966
- Cause of action
- Fresh sale
- Waiver by conduct
