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1967 Supreme(SC) 265

SUPREME COURT OF INDIA
K.N. WANCHOO, C.J.I., R.S. BACHAWAT, V. RAMASWAMI, G.K. MITTER AND K.S. HEGDE, JJ.
Munni Lal (dead) by his legal representatives, Appellants
Versus
Bishwanath Prasad, Respondent.
Civil Appeal No. 2460 of 1966,
D/- 15-9 -1967:
Advocates Appeared
M/s. J. P. Goyal and Sobhag Mal Jain Advocates, for Appellants M/s. Yogeshwar Prasad and M. V Goswami, Advocates, for Respondent.

Advocates:
J.P.GOYAL, M.V.GOSWAMY, SOBHAG MAL JAIN, YOGESHAR PRASAD

Under Mahomedan Law, and customs co-extensive with it, the right of pre-emption applies only to the sale of full proprietary interests (full ownership) and does not extend to the sale of lease-hold interests.

Headnote:(A) Mahomedan Law of Pre-emption - Right of pre-emption - Lease-hold interest vs. Full ownership - Custom co-extensive with Mahomedan Law - Right of pre-emption does not arise on the sale of a leasehold interest in land as full proprietary rights are required for such a claim to be maintainable. (Paras 9, 13)

(B) Custom of Pre-emption - Application to non-residents - Where a custom of pre-emption prevails in a locality, it binds the parties to the transfer of property situated in that locality, regardless of whether the vendors or vendees reside there. (Paras 4, 6)

(C) Custom of Pre-emption - Application to different religions - A custom of pre-emption co-extensive with Mahomedan Law may bind persons of other religions if such custom is proved to exist in the locality. (Para 4)

Facts of the case:
A suit for pre-emption was filed regarding the sale of land held as a permanent lease-hold interest. The plaintiff claimed pre-emption based on a local custom co-extensive with Mahomedan Law, asserting rights by vicinage and appendages. The defendant contested the suit on the grounds that the custom did not apply to lease-hold land and that the parties, being non-residents of the locality, were not governed by the custom.

Findings of Court:
The court found that while a custom of pre-emption co-extensive with Mahomedan Law existed in the locality and bound both residents and non-residents regardless of religion, such a custom does not extend to lease-hold interests.

Issues: Whether a permanent lease-hold interest can be pre-empted under a custom that is co-extensive with Mahomedan Law.

Ratio Decidendi: Under Mahomedan Law, the right of pre-emption is predicated on full ownership of the land. It does not arise upon the sale of a lease-hold interest. Since the custom in question was co-extensive with Mahomedan Law, it could not be applied to the transfer of lease-hold land. Reciprocity is the basis of this law, requiring the pre-emptor to also possess full ownership to maintain a suit. (Paras 9, 13)

Result: Appeal allowed.

Legal Category Hierarchy

  • property law
    • pre-emption
      • mahomedan law of pre-emption (Para 9, 13)
      • customary pre-emption (Para 1, 4, 8)
      • lease-hold interests (Para 9, 10, 11, 12, 14)

Table of Contents

1. Suit for pre-emption of permanent lease-hold land based on a local custom co-extensive with Mahomedan Law. (Para 1 )

2. Whether a custom of pre-emption co-extensive with Mahomedan Law applies to lease-hold land and whether non-residents are bound by local customs. (Para 2 , 4 , 6 )

3. The court determined that Mahomedan Law requires full proprietary ownership for pre-emption, thus excluding lease-hold interests regardless of their heritable or transferable nature. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 )

4. The right of pre-emption under Mahomedan Law applies only to sales of full ownership and does not extend to lease-hold interests. (Para 9 , 13 )

5. Appeal allowed; decrees of the High Court and first appellate court set aside; suit dismissed. (Para 14 )

6. Does the right of pre-emption under Mahomedan Law apply to lease-hold interests?

No. Mahomedan Law requires full ownership in the land pre-empted. Consequently, the right of pre-emption does not arise on the sale of a lease-hold interest in land. (Para 9 , 13 )

7. What is the requirement for the pre-emptor's own interest in a pre-emption suit under Mahomedan Law?

The pre-emptor must also possess full ownership of their land to maintain a suit for pre-emption, as reciprocity is the fundamental basis of Mahomedan Law of pre-emption. (Para 13 )

8. Does a local custom of pre-emption co-extensive with Mahomedan Law extend to lease-hold land?

No. If a custom is co-extensive with Mahomedan Law, its application to lease-hold land depends on Mahomedan Law, which recognizes pre-emption only for full proprietary rights. (Para 8 , 14 )

9. Are non-residents of a locality bound by a local custom of pre-emption regarding property situated in that locality?

Yes. The court held that the fact that vendors and vendees do not reside in the locality does not exempt them from being governed by the custom prevailing where the property is situated. (Para 4 , 6 )

Judgement

WANCHOO, CJI. :- The main question raised in this appeal by special leave is whether Parjoti land (i. e. a permanent lease-hold interest) in the city of Benaras can be pre-empted. The respondent brought a suit for pre-emption of the land in dispute, which was sold under a sale deed dated February 6, 1942. The case of the respondent was that he was owner of a house and land to the south of the property sold. He based his claim to pre-emption as a shafi-i-jar (i. e. pre-emptor by right of vicinage) and also as a shafi-i-khalit (i. e. pre-emptor by right of appendages). His case was that there was such a custom of pre-emption prevailing in the whole of the city of Benaras and therefore he was entitled to pre-empt the property sold which was a khandar (i. e. a house in ruins). The plaint made the usual allegation that the necessary talabs had been performed and the respondent was entitled to pre-empt the sale.

2. The suit, was resisted by the vendee, whose legal representative is the appellant before this Court. The vendee denied that there was any custom of pre-emption in the city of Benaras, and particularly, in the mohalla in which the property in dispute was situate. It was further alleged that even if the existence of custom of pre-emption was proved, it could not be applied to parjoti land (i. e. lease-hold land). It was also denied that the respondent was either shafi-i-jar or shafi-i-khalit. It was further pleaded that as the vendors and the vendee lived in Calcutta, they were not governed by the custom of pre-emption, if any, prevalent in the city of Benaras. The performance of talabs was also disputed. The trial court framed four issues, namely (i) whether the respondent had a right to sue, (ii) whether the custom of pre-emption prevailed in Mohalla Baradeo, in the city of Benaras, (iii) whether the vendors and the vendee, as residents of Calcutta, were governed by the custom of pre-emption, and (iv) whether the talabs had been performed.

3. The trial court held that the necessary talabs had been performed. It also held that the respondent was the owner of the contiguous house and had therefore the right to sue. On the question of custom the trial court held that there was a custom of pre-emption in the locality, which was co extensive with Mahomedan Law of pre-emption. Finally, the trial court held that the vendors and the vendee were not governed by the custom as they did not live in Benaras. In this view of the matter, the suit was dismissed with costs.

4. The respondent then went in appeal and his contention, in one of the grounds of appeal, was that as the custom of preemption was held by the trial court to have been proved (and it was co-extensive with Mahomedan Law), the custom would bind Hindus also. It was further contended that the fact that the vendors and the vendees did not live in Benaras made no difference and they would be bound by the custom prevailing in the locality in which the property was situate. Two main questions thus arose before the first appellate court, namely-(i) whether the custom as proved bound Hindus also, and (ii) whether the fact that the vendors and the vendee did not live in Benaras exempted them from being governed by the custom. On the question of custom, the first appellate court observed that the custom in question had been proved to exist in the locality and was co-extensive with Mahomedan Law of Pre-emption and that this finding had not been challenged before it. On the second question, the first appellate court held that the fact that the vendors and the vendee did not reside in Benaras made no difference to the application of the custom to them with respect to the property transferred.

5. The question whether Parjoti lands could be subjected to pre-emption was not decided by the trial court, for it dismissed the suit on the ground that the vendors and the vendee not being residents in Benaras, were not bound by the custom. The first appellate court having found that the



















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