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1960 Supreme(P&H) 216

PUNJAB & HARYANA HIGH COURT
Gurdev Singh, J.
Bai Chander Mani D/o Hari Ram Sanghi
Versus
Bhagirath S/o Sewa Ram Ahir
Second Appeal No. 1089 of 1960,
Decided On : DECEMBER 1, 1960

Possession taken by a vendee prior to the sale cannot be considered as one "under the sale" for the purpose of determining the limitation for a suit for pre-emption.

Headnote:

PRE-EMPTION - LIMITATION - POSSESSION TAKEN BY VENDEE PRIOR TO SALE - NOT POSSESSION "UNDER THE SALE" - LIMITATION RUNS FROM DATE OF REGISTRATION OF SALE DEED - PUNJAB PRE-EMPTION ACT, 1913, SECTION 30 - INDIAN LIMITATION ACT, 1908, ARTICLE 10.

Fact of the Case:

Plaintiff, daughter of the vendors, filed a suit for pre-emption of agricultural land sold by her parents to the defendant. The sale deed was executed on May 30, 1957, and presented for registration the same day. However, the Sub-Registrar endorsed a certificate of registration on June 12, 1957. The plaintiff claimed right of pre-emption and disputed the sale price, praying for a decree in her favor on payment of Rs. 1,800/- only. The vendee contested the suit, denying the plaintiff's preferential right of pre-emption and asserting that the entire consideration of Rs. 4,000/- mentioned in the sale deed had been paid. The trial court dismissed the suit as barred by time, and the plaintiff appealed to the District Judge, who agreed with the trial court's findings and dismissed the appeal.

Finding of the Court:

The High Court found that the possession of the property was taken by the vendee one day prior to the execution of the sale deed, on May 29, 1957. The court held that the possession was not taken "under the sale" and, therefore, the first part of Article 10 of the Limitation Act did not apply. The court further held that the second part of Article 10 applied, as the property did not admit of physical possession at the date of the sale, and the period of one year for a suit for pre-emption would be reckoned from the date of registration of the sale deed, which was June 12, 1957. Since the suit was instituted on June 10, 1958, it was within time.

Issues: 1. Whether the possession taken by the vendee prior to the sale was "under the sale" for the purpose of determining the limitation for a suit for pre-emption. 2. Whether the suit was barred by time.

Ratio Decidendi: 1. The court held that the possession taken by the vendee prior to the sale was not "under the sale" because the sale was not effected until the sale deed was executed and registered. The court reasoned that if possession taken in contemplation of the sale is held to be possession "under the sale," it would open doors for fraud and allow parties to a sale to defeat the claim of a pre-emptor by entering into an agreement to sell and delivering physical possession to the purchaser before the execution of the sale deed. 2. The court held that the suit was not barred by time because the second part of Article 10 of the Limitation Act applied, as the property did not admit of physical possession at the date of the sale. The court found that the sale deed was registered on June 12, 1957, and the suit was instituted on June 10, 1958, which was within one year from the date of registration.

Final Decision: The High Court accepted the appeal, set aside the finding of the court below on issue No. 4, and remanded the case to the District Judge for decision in accordance with law.

Judgment

Gurdev Singh, J.

1. On the 10th of June, 1958, the appellant Bai Chander Mani brought a suit for pre-empting the sale of agricultural land situate in village Murari Pur, District Narnaul, by her father Hari Ram and her mother Kushalya Devi for Rs. 4,000/- in favour of Bhagirath defendant No. 1 vide sale deed dated the 30th of May, 1957. She claimed right of pre-emption on the plea that she was the daughter of the vendors. She disputed the sale price and prayed for a decree in her favour on payment of Rs. 1,800/- only, on the allegation that the remaining sale consideration has been fictitiously entered in the sale-deed. The vendee, while contesting the suit, denied the plaintiffs preferential right of pre-emption and also asserted that the entire consideration of Rs. 4,000/- mentioned in the sale deed had been paid nor was it the market price of the properly in dispute. He further pleaded that the suit was barred by time. On trial of the relevant issues the learned Subordinate Judge found that the consideration of the sale was only Rs. 3,700/- and this was also the market price of the property in suit. He, however, dismissed the suit as barred by time.

2. The plaintiff went up in appeal to the learned District Judge. The question of limitation alone was agitated before that Court but the learned District Judge agreed with the findings of the trial Court and dismissed the appeal holding that the plaintiffs suit had been rightly dismissed as barred by time. It is against this judgment and decree of the learned District Judge dated the 24th of December, 1959, that Bat Chander Mani has come up in second appeal to this Court and the only question for consideration before me is whether Or not the plaintiffs suit was barred by time.

3. The facts necessary for the decision of this question are as follows, and they are not disputed. The sale was effected by means of a written agreement between the parties. The sale deed was executed on the 30th of May, 1957, and the same day it was presented to the Sub-Registrar for registration. The Sub-Registrar, however, recorded the statements of the parties concerned that very day, but it was only on the 12th of June, 1957, that he endorsed a certificate of registration on the sale deed itself and registered the document.

The suit out of which this appeal has arisen was instituted by Bai Chander Mani on the 10th of June, 1958. It is also common case of both the parties, as admitted by their learned counsel before me, that prior to the 12th of June, 1957 (when the sale deed was duly registered) the vendee had taken possession of the property. The finding of both the Courts below is also to the effect that the possession of the property was taken by the purchaser "on or before the 30th May 1957".

I regret to say that this finding is not definite. When the question of limitation was involved and the decision depended up the date of taking possession of the property in dispute it was the duty of the Courts below to give a definite finding regarding the date on which the possession passed from the vendors to the vendee. The learned counsel for the parties have, however, taken me through the entire evidence and the appellants learned counsel has also relied upon the evidence of the witnesses produced by the defendant, namely. Ram Kumar D. W. 1, Hardev D. W. 2, Bhani Sahia D. W. 4 and Bhagirath D. W. 5 all of whom were unanimous in deposing that the possession was taken by the vendor "one day prior to the registration".

The parties counsel, however, agree that in the context in which the word "registration" has been used by these rustic witnesses they meant by it the date on which the sale-deed was presented to the sub-Registrar for registration i.e. the 30th of May, 1957, and not the date (i.e. the 12th of June 1957), on which the Sub-Registrar recorded his certificate on the sale-deed itself in the presence of the witnesses.

On this point there is no difference between the learned counsel for b


































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