Tuesday, 19 May 2015

When right to pre-emption is not available after partition of ancestral property?



Section 22(1) of the said Act on the basis of which the plaintiffs 
claim relief reads thus: 
“Where,   after   the   commencement   of   this   Act,   an 
interest in any immovable property of an intestate, or 
in   any   business   carried   on   by   him   or   her,   whether 
solely   or   in   conjunction   with   others,   devolves   upon 
two or more heirs specified in class I of the Schedule, 
and any one of such heirs proposes to transfer his or 
her interest in the property or business, the other heirs 
shall have a preferential right to acquire the interest 
proposed to be transferred.” 
From the aforesaid provisions it is clear that when interest in any 
immovable   property   of   an   intestate   devolves   upon   two   or   more   heirs 
specified in Clause I of the Schedule and one such heir proposes to transfer 
his   or   her   interest   in   the   property,   then   the   other   heirs   would   have 
preferential right to acquire  interest in the immovable property proposed to 
be   transferred.  Thus, the contingency as stipulated under Section 22(1) of 
the said Act  is  devolution of interest in immovable property of an intestate 
on   two   or   more   heirs   specified   in   Clause   I   of   the   Schedule.     The   term 
“intestate” has been defined by Section 3(g) of the said Act and same reads as 
under: 

“intestate”   ­   a   person   is   deemed   to   die   intestate   in 
respect of property of which he or she has not made a 
testamentary disposition capable of taking effect;”.  
It is, therefore, clear that for the purposes of claiming preferential right under 
Section 22(1) of the said Act, the occasion for exercising such right would 
arise only on devolution of interest in   property of an intestate on the legal 
heirs and one of them proposing to transfer his interest so acquired.  
It   would   therefore   be   necessary   to   examine   whether   the 
requirements of Section 22(1) of the said Act stand satisfied in the present 
case.  As stated above, it was the specific case of the plaintiffs that pursuant 
to partition in the year 1957 field Survey No. 482 was allotted to defendant 
no.1.     It   therefore   became   his   separate   property   by   virtue   of   aforesaid 
partition.   Both the plaintiffs had also been allotted different properties in 
aforesaid   partition.     It   is   not   the   case   that   on   account   of   devolution   of 
interest in immovable property of an intestate, a right had accrued to the 
plaintiffs.     The   entire   claim   for   preferential   right   is   with   regard   to     the 
property allotted to the defendant no. 1 in partition.  It is, therefore,obvious 
that the aforesaid requirement of Section 22(1) of the said Act of interest of 
an intestate devolving is not at all satisfied. 

IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH 
NAGPUR.
SECOND  APPEAL   NO.    215    OF     1999

 Smt. Aloki wd/o Anandrao Idre, Vs  Gajanan Lahanuji Idre,

CORAM:   A. S. CHANDURKAR  J.
                           Citation;2015(3) MHLJ 233
Dated;4-12-2014

This appeal under Section 100 of the Code of Civil Procedure has 
been filed by the plaintiffs who are aggrieved by the judgment of the first 
appellate Court allowing the appeal preferred by the original defendants and 
dismissing the suit filed by the plaintiffs.  
2]
One   Lahanu   Idre   was   the   common   ancestor   who   was   married 
with one Sitabai.  From said wedlock they had three sons, Anandrao (plaintiff 
No.   1),   Pandhari,   son   of   Nathu   their   second   son   (plaintiff   No.   2)   and 
Gajanan­defendant No. 1.   According to plaintiffs, their father was having 
agricultural land and house property.  The ancestral property was partitioned 
after the death of Lahanu in the year 1957.  As per said partition, field Survey 

Nos. 94/6 and 93/5 (new 482) went to the share  of defendant no. 1.   Field 
Survey No. 94/7 (new 485) went to the share of Nathu­ the father of plaintiff 
no.2 and field Survey Nos. 94/3 and 93/3 (new 484) went to the share of 
plaintiff   No.   1.     The   defendant   no.1   sold   field   Survey   No.   482   for 
consideration   of   Rs.   66,500/­   on   27.02.1996   to   the   defendant   no.   2. 
According   to   plaintiffs,   they   had   preferential   right   to   purchase   said   field 
bearing Survey No. 482.  Hence, on the basis of said right of pre­emption the 
plaintiffs   issued   notice   dated   03.10.1996   to   the   defendants.     Thereafter 
came to be filed. 
3]
present suit for declaration of right of pre­emption and mandatory injunction 
The defendants in their written statement took the stand that the 
plaintiffs had no right of pre­emption to purchase aforesaid suit field.  It was 
further pleaded that the plaintiffs were not ready and willing to purchase said 
property and hence they were not entitled to any relief what so ever.  As  the 
defendant no.1 was the absolute owner of the suit property, he was legally 
entitled to sell the same to the defendant no. 2. 
4]
The trial Court after considering the evidence on record held that 
the plaintiffs had proved that the defendant no. 1 had sold the suit property 
to defendant no.2 without giving any notice.   It was further held that the 
plaintiffs had proved that they were ready and willing to purchase aforesaid 
property.  On that basis, the trial Court decreed the suit by holding that the 
plaintiffs had preferential right to purchase the same and hence directed the 
defendant no. 2 to accept the amount of sale consideration and execute sale 

The first appellate Court while considering the appeal filed by the 
5]
deed in favour of plaintiff no. 2.  
original   defendants   held   that   the   plaintiffs   had   no   preferential   right   to 
purchase the suit property.  It further held that the grant of relief in favour of 
plaintiff no.2 was totally unjustifiable.  It, therefore,  allowed the appeal and 
set aside the decree passed by the trial Court.  
While   admitting   the   second   appeal   the   following   substantial 
question of law was framed: 
6]
As to whether under the provisions of Section 22 of 
Hindu   Succession   Act,   the   plaintiffs  were   entitled   to 
have preferential right to purchase the suit land and 
whether   they   had   complied   with   the   provisions   of 
Section 22 of the said Act?  
Shri C. M.  Samarth, learned counsel appearing for the appellants 
7]
submitted that the first appellate Court erred in allowing the appeal filed by 
the original defendants.   He submitted that under Section 22 of the Hindu 
Succession Act, 1956 (for short the said Act) the plaintiffs had preferential 
right to purchase aforesaid property.   The defendant no.1 however without 
making any offer and without disclosing his intention sold the same to the 
defendant no.2.   Relying upon the decision in the case of Ganesh Chandra  
Pradhan     Vs. Rukmani Mohanty and others AIR 1971 Orissa 65, it was 
submitted   that   the   plaintiffs   being   co­heirs   were   entitled   to   be   offered 
aforesaid   land   by   the   defendant   no.1.     Reliance   was   also   placed   on   the 
judgment   of   learned   Single   Judge   in  Bharat   Machindra   Parekar  and  
another     Vs.     Anjanabai   w/o   Babarao   Thaware   and   another   2007(6)  

Maharashtra Law Journal 706  to submit that even if the defendant no. 1 
had executed  sale deed, the right of pre­emption was not lost.  He submitted 
that under the provisions of Section 22(1) of the said Act, cause of action 
accrued to the plaintiffs and hence the first appellate Court was not justified 
in dismissing the suit while allowing the appeal.  
8]
Shri   R.   Maheshwari,   the   learned   counsel   appearing   for   the 
respondents supported the impugned judgment.  He submitted that it was the 

case of the plaintiffs that pursuant to the partition between the brothers, field 
Survey No. 482 had been allotted to the defendant no.1 and hence he was 
competent to alienate the same.  He submitted that provisions of Section 22 
of the said Act were not attracted in the facts of the present case.  He relied 
upon   the   judgment   of  Chhattisgarh  in   the   case   of  Ghanshyam     Vs.  
Sanghmitra Datta and Another decided on 28.02.2011 in this regard.  He 
also relied upon the decision of the Orissa High Court in Bhagirathi Chhatoi  
Vs.   Adikanda Chhatoi and others AIR 1988 Orissa 285 and  Dwijabrata  
Das and others  Vs.  Debabrata Das and another AIR 1994 Gouhati 88.
9]
The short issue therefore that requires determination is whether 
the plaintiffs had a preferential right under the provisions of Section 22(1) of 
the said Act to purchase the suit property.  As per the averments made in the 
plaint, it was the specific case of the plaintiffs that till the year 1957, all the 
brothers were joint in mess and estate.   After partition was effected in the 
year 1957, field Survey No. 482 went to the share of defendant no. 2, field 
Survey No. 483 went to the share of plaintiff No. 1 and field Survey No. 485 

went to the share of plaintiff No. 2.   In para 2 of the plaint it was pleaded 
that besides aforesaid properties, other fields and house properties were also 
partitioned.  It is not in dispute that field Survey No. 482 that was allotted to 
the defendant no.1 in aforesaid partition was sold by him to the defendant 
no. 2 on 27.02.1996.  
10]
Section 22(1) of the said Act on the basis of which the plaintiffs 
claim relief reads thus: 
“Where,   after   the   commencement   of   this   Act,   an 
interest in any immovable property of an intestate, or 
in   any   business   carried   on   by   him   or   her,   whether 
solely   or   in   conjunction   with   others,   devolves   upon 
two or more heirs specified in class I of the Schedule, 
and any one of such heirs proposes to transfer his or 
her interest in the property or business, the other heirs 
shall have a preferential right to acquire the interest 
proposed to be transferred.” 
From the aforesaid provisions it is clear that when interest in any 
immovable   property   of   an   intestate   devolves   upon   two   or   more   heirs 
specified in Clause I of the Schedule and one such heir proposes to transfer 
his   or   her   interest   in   the   property,   then   the   other   heirs   would   have 
preferential right to acquire  interest in the immovable property proposed to 
be   transferred.  Thus, the contingency as stipulated under Section 22(1) of 
the said Act  is  devolution of interest in immovable property of an intestate 
on   two   or   more   heirs   specified   in   Clause   I   of   the   Schedule.     The   term 
“intestate” has been defined by Section 3(g) of the said Act and same reads as 
under: 

“intestate”   ­   a   person   is   deemed   to   die   intestate   in 
respect of property of which he or she has not made a 
testamentary disposition capable of taking effect;”.  
It is, therefore, clear that for the purposes of claiming preferential right under 
Section 22(1) of the said Act, the occasion for exercising such right would 
arise only on devolution of interest in   property of an intestate on the legal 
heirs and one of them proposing to transfer his interest so acquired.  
It   would   therefore   be   necessary   to   examine   whether   the 
11]
requirements of Section 22(1) of the said Act stand satisfied in the present 
case.  As stated above, it was the specific case of the plaintiffs that pursuant 
to partition in the year 1957 field Survey No. 482 was allotted to defendant 
no.1.     It   therefore   became   his   separate   property   by   virtue   of   aforesaid 
partition.   Both the plaintiffs had also been allotted different properties in 
aforesaid   partition.     It   is   not   the   case   that   on   account   of   devolution   of 
interest in immovable property of an intestate, a right had accrued to the 
plaintiffs.     The   entire   claim   for   preferential   right   is   with   regard   to     the 
property allotted to the defendant no. 1 in partition.  It is, therefore,obvious 
that the aforesaid requirement of Section 22(1) of the said Act of interest of 
an intestate devolving is not at all satisfied.  
12]
In  Ghanshyam  (supra) it was observed that on partition taking 
place between the parties, provisions of Section 22 of the said Act would not 
apply.  Similar view has been expressed in Bhagirathi Chhatoi (supra). 
13]
As regards the decision relied upon by the learned counsel for the 
appellants in Bharat Machindra Parekar (supra) the question which arises 

in the present case did not fall for determination therein.   It was held that 
even if the transfer  was complete, the  right of pre­emption under Section 
22(1) of the said Act was not obliterated.   Similarly, the decision in the case 
of Ganesh Chandra Pradhan (supra) also does not decide the question that 
arises in the present case.  
14]
The first appellate Court while considering the defendants appeal 
noted   the   fact   of   partition   and   hence   found   that   the   plaintiffs   were   not 
entitled to any relief of pre­emption what so ever.  On proper consideration 
of aforesaid provisions and the law laid down in that regard, it cannot be said 
that the first appellate Court erred in dismissing the suit of the plaintiffs.  
15]
In view of aforesaid, the substantial question of law as framed is 
answered by holding that the plaintiffs were not entitled to  any preferential 
right of purchasing the suit property.   In view  of said  answer  there is no 
option but to dismiss the second appeal.  The same is accordingly dismissed 
with no order as to costs. 

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