HIGH COURT OF ALLAHBAD
RANDHIR SINGH, J.
Sheo Ram
Versus
Gauri Shankar
Second Civil Appeal No. 368 of 1946
Decided On : 01-12-1953
TRANSFER OF PROPERTY ACT, 1882 - SECTION 43 - PRE-EMPTION - RIGHT OF SUBSTITUTION - EFFECT OF DECREE FOR PRE-EMPTION - CONTRACT OF TRANSFER SUBSISTING - RECOVERY OF PROPERTY FROM TRANSFEROR ACQUIRING INTEREST SUBSEQUENTLY.
Fact of the Case:
Plaintiffs obtained a decree for pre-emption in respect of a property sold by Gauri Shankar to Ram Bir. However, Gauri Shankar subsequently acquired an interest in the property through a compromise decree with Ram Piari, a member of his family. The plaintiffs then filed a suit for possession of the property from Gauri Shankar under Section 43 of the Transfer of Property Act, 1882.
Finding of the Court:
The court held that the plaintiffs were entitled to recover possession of the property from Gauri Shankar under Section 43 of the Transfer of Property Act, 1882. The court found that the contract of transfer between Gauri Shankar and Ram Bir subsisted even after the decree for pre-emption was passed, as the right of pre-emption is a right of substitution and the pre-emptor is substituted for the vendee.
Issues: Whether the plaintiffs were entitled to recover possession of the property from Gauri Shankar under Section 43 of the Transfer of Property Act, 1882.
Ratio Decidendi: The court held that the plaintiffs were entitled to recover possession of the property from Gauri Shankar under Section 43 of the Transfer of Property Act, 1882, as the contract of transfer between Gauri Shankar and Ram Bir subsisted even after the decree for pre-emption was passed. The court found that the right of pre-emption is a right of substitution and the pre-emptor is substituted for the vendee, and all rights available to, and all duties cast upon, the vendee, are taken over by the pre-emptor.
Final Decision: The appeal was allowed and the suit for possession was decreed with costs in all the Courts.
2. Gauri Shankar defendant executed a sale deed in favour of Ram Bir on 31-5-1935 in respect of the property which was the subject of the suit which has given rise to this appeal. On the basis of this sale deed a suit for pre-emption was instituted by the appellants and this suit was decreed on 3-1-1935. The amount found to have been paid by the vendee as consideration, was deposited by the plaintiffs, but they were unable to obtain possession as vendee was not in possession. On 3-1-1936, Smt. Ram Piari a member of the family of Gauri Shanker, instituted a suit against Gauri Shanker for a declaration that the property belonged to her and could not be subject of transfer by Gauri Shanker. The allegations on which the suit for a declaration was based are not material for the purposes of this appeal, and they need not be mentioned. This suit resulted in a compromise decree by means of which Ram Piari was declared to be the owner of the property.
On 8-4-1936, the plaintiffs instituted another suit for a declaration that the compromise decree obtained by Ram Piari against Gauri Shanker was a collusive decree, but the suit was finally dismissed, and the compromise was held to be good. Ram Piari, however, died during the pendency of the appeal and was substituted by Smt. Jasoda mother of Ram Piaris husband. Litigation then ensued between Smt. Jasoda and Gauri Shanker with regard to the property declared to be the property of Ram. Piari under the terms of the compromise decree and this litigation also ended in a compromise between Jasoda and Gauri Shanker and both of them agreed to have the property in equal shares. This compromise was made on 21-1-1944.
On 2-1-1945, Jasoda sold her half share, which she obtained under the compromise decree, to Gauri Shanker and Gauri Shanker became the full proprietor of the property in suit. On 22-5-1945, the plaintiffs instituted the present suit which has given rise to this appeal for possession on the allegation that Gauri Shanker having acquired an interest in the property in suit the plaintiffs were entitled to recover it from Gauri Shanker under S. 43, T. P. Act.
3. The suit was resisted on several grounds. It was contended that the plaintiffs had not become entitled to the property simply because Gauri Shanker had become owner of it subsequently. It was also pleaded that S. 47, Civil P.C. barred the suit. The learned Munsif who tried the case held that the plaintiffs were not entitled to recover possession of the property and that the suit was barred by S. 47, Civil P.C. The plaintiffs then went in appeal to the District Judge and the Additional Civil Judge of Hardoi, who heard the appeal, concurred with the findings of the trial Court and dismissed the appeal. The plaintiffs have now come up in second appeal.
4. The only point which arises for consideration in this appeal is whether in view of the provisions of S. 43, T. P. Act the plaintiffs are now entitled to recover the property from Gauri Shanker. It is not disputed that Gauri Shanker has become the owner of the entire property which was the subject of sale in the sale deed dated. 31-5-1935, and which was also the subject of preemption by the plaintiffs. It is also obvious that when Gauri Shanker executed the sale deed in favour of Ram Bir on 31-5-1935, he represented that he was the owner of the property while in fact, he was not. If, therefore, he subsequently acquires an interest in this property, the vendee shall be entitled to recover the property from Gauri Shanker. There are, however, two conditions which should be fulfilled before this relief can be granted, and they are firstly that the contract was entered into by a person who was competent to contract and secondly that the contract of transfer subsists. It cannot be disputed that Gauri Shanker was otherwise competent to make a transfer.
As regards
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