1946 Supreme(Nagpur) 72
HIGH COURT OF NAGPUR
Pollock
KARIMUDDIN – Appellant
Versus
MEHERUNNISA BEGUM AND ORS – Respondent
Decided on : 12-09-1946
The main legal point established in the judgment is that the doctrine of estoppel applies when a person has relied upon a declaration, act, or omission of another person and has been induced to change their position to their detriment.
Headnote:
Estoppel - Pre-emption - The court held that the doctrine of estoppel applies when a person has relied upon a declaration, act, or omission of another person and has been induced to change their position to their detriment. The plea of estoppel was rejected as the party invoking it was a stranger to the estoppel and there was no privity between the parties involved.
Fact of the Case:
The defendant Wahidunnisa Begum sold certain fields to the defendant Meherunnisa Begum, leading to two suits for pre-emption. One suit was filed by Zaheda Begum, the daughter of Wahidunnisa and sister-in-law of Meherunnisa, and the other by Kazi Karimuddin. Kazi Karimuddin alleged that Zaheda Begum was estopped from claiming pre-emption.
Finding of the Court:
The court found in favor of Zaheda Begum, holding that she was entitled to preempt and rejecting the plea of estoppel raised by Kazi Karimuddin.
Issues: The main issue was whether Zaheda Begum was estopped from claiming pre-emption due to her conduct and acquiescence in the sale of the property.
Ratio Decidendi: The court rejected the plea of estoppel, stating that the party invoking it was a stranger to the estoppel and there was no privity between the parties involved.
Final Decision: The appeals were dismissed with costs, and Zaheda Begum was held entitled to preempt.
Pollock, J—The defendant Wahidunnisa Begum sold certain fields to the defendant Meherunnisa Begum, and as a result of this sale two suits for pre-emption were instituted, one by Zaheda Begum, who is the daughter of Wahidunnisa arid the sister-in-law of Meherunnisa, and the cliher by Kazi Karimuddin. It is admitted that Zaheda Begum has a prior claim to preempt, and that, if for any reason her claim fails, then Kazi Karimuddin is entitled to pre-empt. In each suit Kazi Karimuddin took the plea that Zehada Begum was estopped from claiming preemption. The lower Courts have decided the point in favour of Zehada Begum. This judgment will dispose of the appeals in both cases.
2. As stated above, Zehada Begum is closely related to both the vendor and the vendee. Kazi Karimuddin alleged the the took paJripin bringing about the sale, that the property was sold partly in order to provide for the maintenance of Zaheda Begum and her husband, and that she and her husband having taken an active part in bringing about the sale and having full knowledge of the transaction had waived their'' right of pre-emption, if any, by their conduct and acquiescence and were estopped from challenging the sale as it was brought about by them for their own benefit.
3. As the Privy Council explained in Pradyumna Kumar Mallik v. Binendra Maliik. The doctrine of estoppel rests upon the principle that the person invoking it bas relied upon a declaration, act, or omission of another person, and has thereby been induced to change his position to his detriment.
4. And again in Dawsons Bank Ltd. v. Nippon Menkwa Kabushiki Krisha Ltd.'estoppel' has been explained as follows:
It is a rule of evidence which comes into operation if (a) a statement of the existence of a fact has been made by the defendant or an authorized agent of his to the plaintiff or some one on his behalf, (b) with the intention that the plaintiff should act upon the faith of the statement, and. (c) the plaintiff does act upon the faith of the statement. On the other hand, waiver is contractual; and may constitute a cause of action; it is an agreement to release or hot to assert a'' right.'' Kazi Karimuddin relies upon a representation said to have been made by Zaheda Begum to Meherunnisa There is no suggestion that Kazi Karimuddin has been led by any such representation to change his position in any way, and it does not appear to me to be open to him to raise the plea of estoppel, for he is a stranger to the estoppel, and there was no privity between him and Zaheda Begum: see Caspersz on estoppel, Bdn. 4, at p. 72.
5. Even assuming that the property was sold in order to raise money for the maintenance of Zaheda Begum and her husband and the money was subsequently spent on them, that cannot, in my opinion, raise a presumption of waiver of the right of pre-emption, and it has not been specifically pleaded that the money was so spent.
6. Even if Zaheda Begum had agreed in writing to the transfer before it was made, her right of pre-emption would not have been extinguished if Kazi Karimuddin refused his consent to the sale, as is clear from the proviso to Sub-section (8) of Section 174, Berar Land Revenue Code. There appears therefore to be no reason why an implied consent not in writing should be more effective than a consent in writing.
7. The lower Courts were correct, in my opinion, in holding that Zaheda Begum and not Kazi Karimuddin in entitled to preempt. The appeals are dismissed with costs. No counsel's fee as prtificates have not been filed.
Final Result : Dismissed