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2024 Supreme(P&H) 1325

IN THE HIGH COURT OF PUNJAB AND HARYANA
Pankaj Jain, J.
Chawli Devi (Since Deceased) through her LRs. – Appellant
Versus
Inder Paul – Respondent
R.S.A. No. 941 of 1991
Decided On : 04-11-2024

Advocates:
Advocate Appeared:
Ashwani Chopra, Brahmjot Singh Nahar, Ashish Aggarwal, Aashna Aggarwal, Vishal Punder, Anmol Dhillon, Karan Singla

The court ruled that co-ownership acquired through sale does not confer superior rights in pre-emption claims, and failure to prove lack of notice under the Punjab Pre-emption Act is detrimental to the plaintiffs' case.

Headnote:(A) Punjab Pre-emption Act, 1913 - Sections 10, 21A, and 28A - Pre-emption suits - Plaintiffs, as co-sharers, sought decree of pre-emption against defendants who claimed co-ownership through sale deeds - Trial Court dismissed the suit, but the Lower Appellate Court reversed this, affirming plaintiffs' right to pre-empt - The court found that the defendants could not claim co-sharer status as they acquired property through sale, not inheritance - The non-impleadment of the vendor was deemed significant, as plaintiffs failed to prove lack of notice under Sections 19 and 20 - The court ruled that without proving notice was not served, the plaintiffs' suit could not succeed. (Paras 1, 9, 22, 23)

(B) Co-sharer Rights - The court emphasized that mere co-ownership through sale does not equate to superior rights over pre-emption claims - The status of the lowest vendee is determinative in pre-emption suits. (Paras 17, 21)

(C) Non-impleadment of Vendor - The court noted that while the vendor is not a necessary party, her non-examination affected the plaintiffs' ability to prove lack of notice, impacting the suit's success. (Paras 22, 23)

Findings of Court:
The appeals were disposed of with the dismissal of the plaintiffs' suit due to failure to prove necessary elements for pre-emption.

Issues: The main issues included whether the defendants could resist the pre-emption claim based on their status as co-sharers and the implications of the vendor's non-impleadment.

Ratio Decidendi: The court held that the defendants' claim to co-ownership through sale did not confer superior rights over the plaintiffs' pre-emption claim, and the plaintiffs' failure to prove lack of notice under the relevant sections was fatal to their case.

Result: Appeals dismissed.

JUDGMENT :

Pankaj Jain, J.

1. These two appeals are inter-connected. Both arise out of suits seeking decree of possession by way of pre-emption by co-sharer. RSA No. 941 of 1991 is at the behest of the defendants, who are aggrieved of the decree of pre-emption passed against them in favour of the plaintiffs. RSA No. 2383 of 1996 is at the behest of the plaintiffs whereby suit seeking decree of pre-emption stands dismissed.

2. Both the appeals are being disposed off by common judgment based upon common set of facts arising out of suits wherein relief claimed is the same i.e. decree of pre-emption though qua different sale deeds but between same parties.

3. Plaintiffs are co-sharers and related to vender Kalanwati. The pedigree table showing their relationship with the vender Kalanwati reads as under:

4. Relationship between Sarbti wife of Devi Lal and Kalanwati-the vender is further evident from the following pedigree table:

5. Hari Singh died in the year 1940. His share also devolved upon his three sisters through his mother Sheo Kauri. The land in dispute is estate of Kalanwati co-owner to the extent of 1/3 in the total land measuring 399 kanal 15 marlas. Kalanwati agreed to sell her share admeasuring 133 kanal 05 marlas in favour of defendant No. 2-Raja Ram vide agreement to sell dated 12.06.1986. Out of the said land, she executed sale deed dated 10.07.1986 qua 80 kanal 0 marla land in favour of defendant No. 1 to 4. Parties agreed to extend date of sale qua residual land. Rest of the land i.e. remaining 53 kanal 5 marlas was further sold by Kalanwati in favour of defendant No. 2 and 4 vide sale deed dated 02.01.1987. Plaintiffs filed suit i.e. civil suit No. 330/1987 on 16.07.1987 seeking decree of possession by way of pre-emption in re: sale deed dated 10.07.1986. On 10.09.1987 i.e. during the pendency of the suit, Bhag Chand defendant No. 4 by way of decree, exchanged his land with defendant No. 3 and 5. Second suit to preempt the sale deed dated 02.01.1987 was filed on 21.12.1987.

6. The first suit filed by the plaintiffs was resisted by the defendants-vendees claiming that prior to filing of the said suit, they have become co-owners in the entire suit land. The plaintiffs were required to have superior right to preempt the sale deed on the date of sale, date of filing of the suit and the date of decree of suit. Plaintiffs having lost their superior right are at par with vendees.

7. Suit filed by the plaintiffs was put to trial framing following issues:

    “1. Whether the plaintiffs have right of pre-emption que the ale in question as alleged in the plaint? OPP.

    2. Whether sale consideration of Rs 1,80,000/- was fixed in good faith and actually paid to the vendor as alleged in the plaint? OPD.

    3. If issue No. 2 is not proved that was the market value of the suit land at that time? OPP.

    4. Whether plaintiffs are estopped from filing the present suit by his own act and conduct? OPD.

    5. Whether defendants/vendors are entitled the stamp and registration expenses, if so what to amount? OPD.

    6. Whether defendants have made improvement in the suit land and if so that to amount? OPD

    7. Whether the plaintiffs have no locus-standi to file the present suit? OPD.

    8. Whether the suit of plaintiffs not maintainable in the present form? OPD.

    9. Whether the suit is time-barred? OPD.

    10. Relief.”

8. Trial Court decided issue No. 1 in favour of defendants and against the plaintiffs holding that plaintiffs do not have any right superior to that of the defendants and are thus, not entitled to preempt the sale deed. Issue No. 2 and 3 were decided as not pressed in favour of the defendants and against the plaintiffs. Issue No. 4 and 5 were decided in favour of the defendants and against the plaintiffs. Issue No. 6 and 9 were decided against defendants. Issue No. 7 and 8 were decided in favour of defendants and against the plaintiffs. In view of the findings returned on issue No. 1, suit filed by the plaintiffs was ordered to be dismissed.

9. Plaintiffs filed appea

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