SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2024 Supreme(P&H) 1356

IN THE HIGH COURT OF PUNJAB AND HARYANA
VINOD S. BHARDWAJ, J.
Kaniyha Singh (Since Deceased) Through LRs. - Appellant
Versus
Binnu Singh Alias Beer Singh & Ors. - Respondents
R.S.A.No. 1845 of 1991
Decided On : 29-11-2024

Advocates:
Advocate Appeared:
For the Appearing Parties : Mr. Rajinder Goel Adv., Mr. Keshav Pratap Singh Adv., Mr. Nitin Sansanwal Adv.

Right of pre-emption, being a weak legal entitlement, can be defeated by all lawful means if the transaction is deemed a sham transaction.

Headnote:(A) Punjab Pre-emption Act, 1913 - Right of pre-emption - Regular Second Appeal regarding the suit land possession by pre-emption claimed by the respondent-plaintiff - Appeal previously decreed in favor of plaintiff was allowed to be contested based on the assertions of the appellant-defendant stating it was a sham transaction designed to defeat rights - Factually, the execution of the sale deed was established but claimed to be fraudulent by asserting collusion between the vendor and vendee for money extraction. (Paras 1, 5, 6, 25)

(B) Legal principle regarding the right of pre-emption being a piratical right - The court reiterated that the courts can ascertain the true nature of the transaction and if marked dishonest or sham, it can be disregarded - Circumstances indicating ineffectiveness of a sale transaction must be examined for validity. (Paras 18, 20, 23)

Facts of the case:
The appellant-defendant challenges lower court’s decision affirming pre-emption suit filed by the respondent-plaintiff. The appellant contends the transaction to be a sham designed to defraud and the respondent not entitled to pre-empt based on the sale deed’s inadequacy concerning proper value and legitimacy of relationship.

Findings of Court:
The court observed the sale deed execution was formally proved, yet the determination leaned towards labeling it a sham transaction based on circumstantial evidence; hence, the pre-emptive right of the plaintiff was contested successfully.

Issues: Key issues included the authenticity and motivations behind the sale deed in favor of the plaintiff and the actual context of pre-emptor rights being abused as per standards outlined in statute.

Ratio Decidendi: The court ruled that the overarching evidence supported viewing the sale as sham, thus granting the defendant's right to challenge pre-emption based on substantial circumstantial critiques of both documents and actions taken prior to the transactions.

Result: The appeal was allowed, thereby setting aside prior decrees.

Table of Content
1. nature of the evidence regarding property ownership. (Para 1 , 2)
2. arguments about co-sharership and validity of sale. (Para 3 , 6)
3. citations reflecting nature of transactions and rights. (Para 4 , 8 , 10 , 12)
4. arguments and defenses raised by the appellant. (Para 5)
5. court analysis on the validity of transactions. (Para 7 , 9 , 11 , 21)
6. final determination regarding the rights of the parties. (Para 13)
7. court's finding on sham transactions and pre-emption rights. (Para 19 , 22 , 23)
8. final ruling on the appeal and its implications. (Para 24 , 25 , 26)

JUDGMENT :

Mr. Vinod S. Bhardwaj, J.

Appellant-defendant has preferred the present Regular Second Appeal against the judgment and decree dated 31.07.1990 passed in Civil Suit No.272 of 1988 by the Court of Sub Judge IInd Class, Jhajjar whereby the suit of the respondent-plaintiff praying for a decree of possession by pre-emption of the suit land was decreed as well as the judgment and decree dated 07.08.1991 passed by the Additional District Judge, Rohtak, in Civil Appeal No.10/13 of 1990, decided on 07.08.1991, whereby the appeal preferred by the appellant-defendant was dismissed.

2. Briefly summarized, the facts of the present case are that one Bhuria son of Shalu Singh had two sons namely Jai Narain Singh and Prithi Singh. Jai Narain Singh was owner of land measuring 04 kanals comprised in Khewat No.351 min Khata No.414 min, Killa No.97/11 (8-0) to the extent of ½ share situated in the revenue estate of village Luhari, Tehsil Jhajjar, District Rohtak, as per Jamabandi for the year 1985-86. The said Jai Narain Singh executed a registered sale deed dated 11.05.1988 with respect to the aforesaid land measuring 04 kanals for a total sale consideration of Rs.20,000/- (Rs.5000/- per kanal). The respondent-plaintiff who claimed to be co-sharer in the joint Khewat, thus instituted a suit for possession by way of pre-emption.

3. The appellant-defendant filed the written statement refuting the claims made by the respondent-plaintiff stating that the respondent-plaintiff was neither a co-sharer in the suit land before execution of the sale deed nor at the time of filing of the suit. It was also stated that Prithi Singh – brother of the appellant-defendant was reflected as a co-sharer in the revenue records and that said Prithi Singh had chosen not to seek pre-emption. It was averred that Prithi Singh got executed a sale deed in favour of his son’s brother-in-law (respondent-plaintiff herein) Binnu Singh for an area measuring 2 kanals on 10.05.1988, i.e. one day before the execution of the sale deed in favour of the appellant-defendant @ Rs.1,000/- per kanal i.e. for a total sale consideration of Rs.2,000/- in collusion with his brother Jai Narain Singh so as to defraud the appellant-defendant. It was averred that the transaction was a sham and Benami transaction intended to prejudice the rights of the appellant-defendant and that no sale consideration had ever been paid. It was further averred that the suit for pre-emption is collusive and has been filed at the behest of Prithi Singh. It was further averred that the respondent-plaintiff was a resident of Hassan Pur, Tehsil Khurja, District Bulland Seher and was working in Delhi. He has no other property or residence in village Lohari other than the 02 kanals of land purchased on 10.05.1988. There was thus no reason or occasion for the respondent-plaintiff to acquire the land holding. It was averred that the sale deed thus ought to be disregarded and should not be read against the appellant-defendant. It was also pleaded that the sale deed executed in favour of the appellant-defendant was for a price of Rs.5,000/- per kanal whereas the sale deed in favour of the respondent-plaintiff executed on 10.05.1988 was for a price of Rs.1,000/- per kanal which is nearly 20% price of the actual price prevailing at the time of transaction. It is highly unlikely that any sane person would be alienating his land at such a meagr

            Click Here to Read the rest of this document
            1
            2
            3
            4
            5
            6
            7
            8
            9
            10
            11
            Judicial Analysis

            AI

            SupremeToday Portrait Ad
            supreme today icon
            logo-black

            An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

            Please visit our Training & Support
            Center or Contact Us for assistance

            qr

            Scan Me!

            India’s Legal research and Law Firm App, Download now!

            For Daily Legal Updates, Join us on :

            whatsapp-icon Back to top