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1962 Supreme(SC) 318

Supreme Court Of India
AMIR SINGH
Versus
RAM SINGH
Decided On : October 4, 1962

The retrospective operation of s. 31 of the Punjab Pre-emption (Amendment) Act, 1960, extinguished the respondents' right to pre-empt under the unamended s. 15 of the parent act, but the retrospective operation of s. 15 of the amending act entitled them to claim pre-emption as tenants under the amended provision.

Headnote:

PRE-EMPTION - PUNJAB PRE-EMPTION (AMENDMENT) ACT, 1960 (X OF 1960) - S. 31 - RETROSPECTIVE OPERATION - EFFECT ON RIGHTS OF PRE-EMPTORS - S. 15 - AMENDMENT - NEW GROUNDS OF PRE-EMPTION - TENANTS - RIGHT TO PRE-EMPT - WHETHER RETROSPECTIVE.

Fact of the Case:

The respondents filed pre-emption suits under the Punjab Pre-emption Act, 1913, claiming a right to pre-empt certain sales of agricultural land. The appellants resisted the claims, contending that they had acquired equal status with the respondents as pre-emptors by virtue of exchanges of land. The trial court found in favor of the respondents, but the lower appellate court reversed the decision and dismissed the suits. The High Court restored the decrees in favor of the respondents, holding that the exchanges did not confer a right to pre-empt. The appellants appealed to the Supreme Court.

Finding of the Court:

The Supreme Court held that the retrospective operation of s. 31 of the Punjab Pre-emption (Amendment) Act, 1960, which barred courts from passing decrees inconsistent with the provisions of the amending act, extinguished the respondents' right to pre-empt under the unamended s. 15 of the parent act. However, the court also held that the retrospective operation of s. 15 of the amending act, which introduced new grounds of pre-emption, including a right for tenants to pre-empt, entitled the respondents to claim pre-emption as tenants under the amended provision. The court set aside the High Court's decrees and remanded the cases to the trial court for further proceedings.

Issues: 1. Whether the retrospective operation of s. 31 of the Punjab Pre-emption (Amendment) Act, 1960, extinguished the respondents' right to pre-empt under the unamended s. 15 of the parent act? 2. Whether the retrospective operation of s. 15 of the amending act, which introduced new grounds of pre-emption, entitled the respondents to claim pre-emption as tenants under the amended provision?

Ratio Decidendi: 1. The court held that the plain and comprehensive language of s. 31 required appellate courts to give effect to the substantive provisions of the amending act, whether the appeal was against a decree granting pre-emption or refusing that relief. Therefore, the respondents' right to pre-empt under the unamended s. 15 was extinguished retrospectively. 2. The court held that the retrospective operation of s. 15, which was consequential on the retrospective operation of s. 31, necessarily involved giving effect to the substantive provisions of s. 15 retrospectively. This applied to both the extinction of old rights and the creation of new ones. Therefore, the respondents were entitled to claim a right to pre-empt as tenants under the amended provision of s. 15.

Final Decision: The Supreme Court set aside the High Court's decrees and remanded the cases to the trial court for further proceedings, allowing the respondents to amend their claims to assert their right to pre-empt as tenants under the amended s. 15.

Judgment

GAJENDRA GADKAR, J.

( 1 ) WHAT is the effect of the retrospective operation of s. 31 introduced by the Punjab Pre-emption (Amendment) Act, 1960 (X. of 1960) in the parent Act of Pre-emption (No. 1 of 1913 ). that is the short question which arises for our decision in these three appeals which have been ordered to be consolidated for the purpose of hearing by this Court. These appeals arise from three pre-emption suits instituted by the respondents against the respective appellants. The respondents case was that the properties in suit had been sold by Aftab Rai on May 31, 1956, for rs. 10,000. 00 to the appellants and it is these sales which they wanted to pre-empt. They alleged that they are the owners of agricultural land in Patti aulakh and Patti Kode, in Mauza Marahar Kalan, and as such, they had the statutory right to claim pre-emption, under s. 15 (c) (ii) and (iii ). The appellants resisted this claim on the ground that the respective vendees from Aftab Rai had transferred by exchanges about 2 kenals out of the lands purchased by them and as a result of the said exchanges the appellants had themselves become entitled to pre-empt the said sales under the same statutory provision. Since the appellants had acquired equal status with the respondents who claimed to be the pre-emptors, their claim for pre-emption cannot be sustained. That, in brief, was the nature of the contest between the parties.

( 2 ) THE trial Court held that the exchanges on which the appellants relied bad not been proved and so, it gave effect to the respondents right to pre-empt under s. 15 (c) (ii)and (iii ). The appellants took the metter before the Additional District Judge in appeal. The lower appellate Court was pleased to admit additional evidence under O. 41, r. 27, of the Code of Civil Procedure and held that the exchanges in question had in fact been proved and were, in law, valid. It, therefore came to the conclusion that the appellants acquired equal status with the respondents and so, the respondents claim for pre-emption must fail. That is why the appeals preferred by the appellants were allowed and the respondents suits were dismissed.

( 3 ) THE dispute was then taken up before the high Court of Punjab by the respondents by second appeals. Mahajan, J. , who heard these appeals held that the property acquired by exchange in lieu of the part of the property purchased by the vendees did not give the appellants a right to pre-empt. He referred to the fact that exchange of lands was sometimes recognised as conferring on the party the right to pre-empt, but that was where the land exchanged did not form part of the land sold and pre-empted. In the result, the High Court held that the plea made by the appellants was not well-founded in law and so, the respondents were entitled to pre-empt. As a result of this finding, the decrees passed by the lower appellate Court were reversed and the respondents suits were decreed. The appellants then moved the Division bench by Letters Patent appeals, but these appeals were dismissed. It is against the decrees thus passed by the Division Bench in Letters Patent appeals that the appellants have come to this Court by special leave.

( 4 ) WE have already noticed that both the appellants and the respondents are claiming a right to pre-empt under s. 15 (c) (ii) and (iii) of the parent Act of 1913. On February 4, 1960, the amending Act No. 10 of 1960 was passed. Section 4 of the amending Act has substitituted a new s,15 of the old s. 15 after making substantial changes in the provisions of the earlier section. Clauses (ii) and (iii) of the original s. l5 (c) have been deleted, with the result that the claims for pre-emption made both by the appellants and the respondents have ceased to be recognised by the amended provisions. The appellants contend that since the respondents have got a decree for pre-emption in their favour on the provisions of the unamended s. l5, that decree can no longer be sustained bec




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