Supreme Court Allows Appeal in Pre-emption Case Under Rajasthan Pre-emption Act, 1966 — Right of Pre-emption Not Available Where Vendee Has Equal or Inferior Right. Court Holds That Under Section 5(1)(c) of the Act, a Claimant Must Have a Superior Right to That of the Vendee; Otherwise, No Right Accrues.

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Case Note & Summary

The appeal arises from a judgment of the Rajasthan High Court dismissing a second appeal under Section 100 of the Code of Civil Procedure, 1908. The dispute concerns a right of pre-emption claimed by Beni Prasad (since deceased, represented by respondents) over a courtyard sold by his brother Kirorilal to Devicharan (predecessor of the appellants) via a sale deed dated 6 January 1990. Beni Prasad and Kirorilal were brothers, and Beni Prasad alleged joint ownership of the courtyard. The suit for pre-emption was filed against Devicharan (first defendant) and Kirorilal (second defendant). The defendants contended that a partition in 1956 had allotted the disputed property to Kirorilal, and that Devicharan also had a right of pre-emption as a co-owner of the courtyard based on a written statement filed by Beni Prasad in an earlier suit. The Trial Court decreed the suit, holding that Beni Prasad had a superior right as a brother. The first appellate court affirmed, and the High Court dismissed the second appeal in limine. The Supreme Court allowed the appeal, holding that under Section 5(1)(c) of the Rajasthan Pre-emption Act, 1966, the right of pre-emption does not accrue if the vendee (Devicharan) also has a right of pre-emption, whether equal or inferior. The Court emphasized that the right of pre-emption is a weak right and the claimant must have a superior right to that of the vendee. Since the courts below failed to consider this statutory bar, the judgment was set aside, and the suit was dismissed.

Headnote

A) Pre-emption Law - Right of Pre-emption - Section 5(1)(c) of Rajasthan Pre-emption Act, 1966 - Bar on Accrual - The right of pre-emption does not accrue on a transfer to any person mentioned in Section 6, to any person who has an equal or inferior right of pre-emption. The claimant must have a superior right to that of the vendee. (Paras 10-13)

B) Pre-emption Law - Interpretation of Statutes - Sections 4, 5, 6 of Rajasthan Pre-emption Act, 1966 - The right of pre-emption under Section 4 is subject to Section 5. Section 5(1)(c) provides that no right accrues if the vendee has an equal or inferior right. Section 6 specifies persons entitled to pre-emption, including owners with common amenities. (Paras 10-13)

C) Pre-emption Law - Nature of Right - Weak Right - The right of pre-emption is a weak right and can be defeated by lawful means. The plaintiff must have a superior right to that of the vendee or the person substituted in his place. (Para 14)

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Issue of Consideration

Whether a right of pre-emption was available to Beni Prasad, who is alleged to be a joint owner in possession of the disputed courtyard, under the Rajasthan Pre-emption Act, 1966, when the vendee Devicharan also had a right of pre-emption.

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Final Decision

The Supreme Court allowed the appeal, set aside the judgments of the Trial Court, first appellate court, and High Court, and dismissed the suit for pre-emption. The Court held that under Section 5(1)(c) of the Rajasthan Pre-emption Act, 1966, the right of pre-emption does not accrue if the vendee has an equal or inferior right of pre-emption. Since Devicharan had a right of pre-emption as an owner of a common amenity, Beni Prasad's right, if any, was not superior, and thus no pre-emption right accrued.

Law Points

  • Right of pre-emption is a weak right
  • Pre-emption right does not accrue if vendee has equal or inferior right
  • Section 5(1)(c) of Rajasthan Pre-emption Act
  • 1966 bars pre-emption in such cases
  • Claimant must have superior right to vendee
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Case Details

2020 LawText (SC) (2) 98

Civil Appeal No 482 of 2020 (Arising out of SLP(C) No 11551 of 2011)

2020-01-17

Dr Dhananjaya Y Chandrachud

Mr Puneet Jain for appellants, Mr S K Sinha for respondents

Suresh Chand and Anr

Suresh Chander (D) Thr LRs and Ors

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Nature of Litigation

Civil suit for pre-emption under the Rajasthan Pre-emption Act, 1966.

Remedy Sought

Beni Prasad sought a decree of pre-emption against Devicharan regarding the sale of a house and courtyard by Kirorilal.

Filing Reason

Beni Prasad claimed a right of pre-emption as a joint owner and brother of the vendor Kirorilal.

Previous Decisions

Trial Court decreed the suit; first appellate court affirmed; High Court dismissed second appeal in limine.

Issues

Whether the right of pre-emption was available to Beni Prasad under the Rajasthan Pre-emption Act, 1966, when the vendee Devicharan also had a right of pre-emption. Whether Section 5(1)(c) of the Act bars the accrual of pre-emption right if the vendee has an equal or inferior right.

Submissions/Arguments

Appellants argued that under Sections 4, 5(1)(c) and 6(1)(ii) of the Act, pre-emption does not accrue if the vendee has a right of pre-emption, whether equal or inferior. Respondents argued that Beni Prasad, as brother of the vendor, had a superior right of pre-emption, and the sale would deprive them of common amenity.

Ratio Decidendi

Under Section 5(1)(c) of the Rajasthan Pre-emption Act, 1966, the right of pre-emption does not accrue on a transfer to any person mentioned in Section 6, to any person who has an equal or inferior right of pre-emption. The claimant must have a superior right to that of the vendee. The right of pre-emption is a weak right and can be defeated by lawful means.

Judgment Excerpts

The right of pre-emption is not a right to the thing sold but a right to the offer of a thing about to be sold. The right being a very weak right, it can be defeated by all legitimate methods. The plaintiff must have a superior right to that of the vendee or the person substituted in his place.

Procedural History

Beni Prasad filed Civil Suit No 71 of 1993 for pre-emption in the Court of Civil Judge, Senior Division, Badi, District Dholpur. The suit was decreed. The first appeal was dismissed by the appellate court. The second appeal under Section 100 CPC was dismissed in limine by the Rajasthan High Court. The Supreme Court granted leave and allowed the appeal.

Acts & Sections

  • Code of Civil Procedure, 1908: 100
  • Rajasthan Pre-emption Act, 1966: 4, 5(1)(c), 6(1)(ii), 6(2), 6(3)
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