Allahbad High Court
DEOKINANDAN
Prayag Narain - Appellant
Versus
Vishwanath Kaushik - Respondent
Decided On : 02/01/1983
PARTITION ACT - SECTION 4 - APPLICABILITY - CO-SHARER'S RIGHT TO PURCHASE STRANGER TRANSFEREE'S SHARE - CONDITIONS.
Fact of the Case:
Plaintiff filed a suit for partition of a small double-storeyed house, claiming the benefit of Section 4 of the Partition Act, directing the first defendant to sell his one-half share purchased from the plaintiff's brother to the plaintiff. The trial court decreed the suit, but the lower appellate court held that Section 4 was not applicable and ordered a sale of the property under Section 2, allowing all co-sharers to offer to purchase the share.
Finding of the Court:
The High Court held that Section 4 of the Partition Act could be applied in the present case as the first defendant did not seek partition but claimed that the house was already divided. The court found that the house was not partible and that the plaintiff could take advantage of the provisions of Section 4.
Issues: 1. Whether Section 4 of the Partition Act is applicable in a suit for partition filed by a co-sharer against a stranger transferee who does not seek partition. 2. Whether the plaintiff has a preferential right to purchase the share of the first defendant under Section 3 of the Partition Act.
Ratio Decidendi: 1. Section 4 of the Partition Act confers a right of pre-emption on a co-sharer against a stranger transferee, but this right is limited to cases where the transferee either sues for partition himself or makes the same claim when impleaded as a defendant in such a suit. 2. A co-sharer cannot buy out the stranger transferee whenever he likes unless the transferee is claiming a partition of his share either as a plaintiff or as a defendant. 3. The right under Section 4 is not a right of pre-emption but a right to buy the share of the stranger transferee on payment of its fair value.
Final Decision: The High Court partly allowed the appeal and modified the decree of the lower appellate court. It directed the first defendant to sell his one-half share to the plaintiff on valuation within a period to be fixed by the trial court. The plaintiff was directed to bear the expenses of valuation and sale. In case the plaintiff failed to deposit the value so fixed, the suit would stand dismissed with costs to the first defendant.
2. The lower appellate Court found that Section 4 of the Partition Act was not applicable; inasmuch as the present suit was not by the transferee stranger to the family, but by the remaining coparcener member of the family. Having reached that conclusion, the provisions of Sections 2 and 3 of the Partition Act were invoked by the plaintiff who was the respondent before the lower appellate Court. The lower appellate Court found that the counsel for the parties had conceded that the property is not partible, and that the sale of the property as provided for by Section 2 of the Partition Act, would be more beneficial to the share-holders, and the lower appellate Court proceeded to hold that the proper mode of partition would be to order a sale of the property, as provided in Section 2; but, while dealing with the plaintiffs claim to a prior right to purchase the share of the defendant No. 1 the lower appellate Court held that "the question of offering to purchase the share of defendant No. 1 to the other co-sharers would arise only when a sale is ordered", and that "an order or direction for sale under Section 2 is yet to be made in the decree by this Court and it will be after such a decree is passed that it would be open to the share-holder under Section 3 to offer for buying the share of the other co-sharers." According to the lower appellate Court, all the co-sharers are entitled, under sub-sec.(2) of Section 3 of the Partition Act, "to make offer to buy the share and the Court will accept the offer of the co-sharers who pays the highest price", and the "the plaintiff has no preferential right of buying property under Section 3." The further contention that the plaintiff having already made an offer, the first defendant had no right now to make the offer, was rejected by the lower appellate Court. In the result, the lower appellate Court allowed the appeal and modifying the decree of the trial Court ordered that the property shall be got valued and it shall be offered for purchase to the share-holders, namely the plaintiff and defendant No. 1 and the party offering highest price above the valuation made by the Court shall be allowed to purchase the share of the other party and that "In case non of the parties offer to purchase or the price offered falls short of the market value of the property assessed by the Court, it shall be sold by public auction and the sale proceeds thereof shall be distributed equally amongst plaintiff and defendant No. 1.".
3. Learned counsel for the appellant first contended that the Full Bench decision of this Court in Haji Sakhawat Ali v. Ali Husain, 1957 All WR (HC) 342 : (AIR 1957 All 356) had been misapplied by the lower appellate Court to the facts of the present case; inasmuch as it was observed by the Full Bench that the benefit of Section 4 could be claimed "if the transferee either sues for partition himself or makes the same claim when he is impleaded as a defendant in such a suit and clarified t
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