High Court Of Calcutta
A. M. BHATTACHARJEE, S. K. SEN
GOPAL CHANDRA MITRA - Appellant
Versus
KALIPADA DAS - Respondent
F. M. A. 820 Of 1986
Decided On : 12/23/1986
PARTITION ACT, 1893 - SECTION 4(1) - Valuation of share of transferee - Relevant date - Date of undertaking by member-shareholder to purchase share after preliminary decree.
Fact of the Case:
The issue in this case was to determine the relevant date for valuation of a share of a dwelling-house transferred to a non-family member under Section 4(1) of the Partition Act, 1893.
Finding of the Court:
The court held that the relevant date for valuation under Section 4(1) of the Partition Act is the date when the member-shareholder undertakes to buy the share of the transferee, provided such undertaking is given after the share of the transferee has been ascertained by the Court in the preliminary decree.
Issues: 1. What is the relevant date for valuation of a share of a dwelling-house transferred to a non-family member under Section 4(1) of the Partition Act, 1893? 2. Whether the valuation should be made as on the date of the undertaking by the member-shareholder or the date of order by the Court or any other date?
Ratio Decidendi: The court reasoned that the provisions of Section 4(1) of the Partition Act contemplate three steps for its invocation and compliance: (a) an undertaking by a member-shareholder to purchase the share of the transferee, (b) a valuation of such share made by the Court in such manner as it thinks fit, (c) an order by the Court directing the sale of such share to such shareholder. The court held that it would be reasonable to hold that the valuation of the share is to be made with reference to the date when the member-shareholder has undertaken to buy the share transferred.
Final Decision: The court dismissed the appeal, holding that the valuation of the share transferred would have to be made with reference to the dates of the applications and undertakings made by the member-shareholder after the preliminary decree.
( 1 ) THE only question that has arisen for our consideration in this appeal is what should be the relevant date with reference to which the Court shall make a valuation under S. 4 (1) of the Partition Act, 1893. Under the first paragraph of S. 44 of the Transfer of Property Act, if a co-owner of an immovable property transfers his share, the transferee thereby acquires the transferor's right to joint possession and also his right to enforce partition. But the second paragraph of that Section, however, provides that if the property transferred is a share in a dwelling-house belonging to an undivided family and the transferee is not a member of that family, then the transferee does not acquire any right to joint possession and all that he acquires by such transfer is only a right to enforce partition. But as a result of S. 4 of the Partition Act even that right to enforce partition may be reduced almost to a bare right to sue without a right to the share as that Section provides that in a suit for partition, whether by or against such transferee, any member of that undivided family having a share in the dwelling-house may undertake to buy the transferred share and that on such undertaking having been made, "the Court shall. . . . . . . . . . make a valuation of such share in such manner as it thinks fit and direct the sale of such share to such shareholder" member. In a sense, therefore, S. 4 of the Partition Act goes a long way to take away what para 2 of S. 44 of the Transfer of Property Act purports to give to the transferee.
( 2 ) AS already indicated, the only question involved in this appeal is what should be the relevant date with reference to which "the Court shall make a valuation of such share" under S. 4 (1) of the Partition Act before directing under that Section the re-sale thereof to the shareholder-member who has undertaken to purchase the same. The provisions of S. 4 (1) are reproduced hereunder for the facility of discussions : -"where a share of a dwelling-house belonging to an undivided family has been transferred to a person who is not a member of such family and such transferee sues for partition, the Court shall, if any member of the family being a shareholder shall undertake to buy the share of such transferee, make a valuation of such share in such manner as it thinks fit and direct the sale of such share to such shareholder and may give all necessary and proper directions in that behalf. "
( 3 ) THE words "and such transferee sues for partition" may, at the first blush, give rise to the impression that S. 4 would come into play only when such transferee as a plaintiff sues for partition. But in a partition suit, every party thereto, whether arrayed as a plaintiff or a defendant, in effect sues for as well as is also sued for partition and therefore the Section would operate even when the transferee does not initiate or proceed with the suit for partition as a plaintiff but is proceeded against as a defendant. This is now the settled law as has been pointed out by a Division Bench of this Court in its decision in an earlier proceeding arising out of the suit giving rise to this present proceeding and which has since been reported in Santosh v. Kalipada, AIR 1981 Cal 278 at p. 280. Now, when such a suit for partition is filed to which the transferee is a party. S. 4 (1), as quoted above, contemplates three steps for its invocation and compliance- (a) an undertaking by a member-shareholder to purchase the share of the transferee, (b) a valuation of such share made by the Court in such manner as it thinks fit, (c) an order by the Court directing the sale of such share to such shareholder. All that a member -shareholder is to do is to undertake to buy the share of the transferee and once that is done, it would then be for the Court to make the valuation and to direct sale. Though the member-shareholder can enforce resale of the share by the transferee only after an order directing s
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