Supreme Court Upholds Co-Heir's Preferential Right to Purchase Property Under Hindu Succession Act - 2024-06-13

Background

In this case, the plaintiff, who is the widow of the deceased Sankaran , filed a suit for pre-emption to enforce her preferential right under Section 22(1) of the Hindu Succession Act, 1956. The defendants 1 to 4, who are Sankaran 's children, had assigned their 1/5 share each in the property to the 5th defendant. The plaintiff claimed that as a co-heir, she has the right to purchase the shares of the other co-heirs.

Arguments

The defendants argued that the plaintiff had agreed to the sale of the property to the 5th defendant and that she had no preferential right under the Hindu Succession Act. The plaintiff, on the other hand, contended that she has the right to purchase the shares of the other co-heirs under Section 22(1) of the Act.

Court's Analysis and Reasoning

The court examined the provisions of Section 22(1) of the Hindu Succession Act and the relevant case law. It found that the classification of heirs specified in Class I of the Schedule to the Act as a class for the purpose of granting preferential right of purchase is a reasonable one, similar to the court's reasoning in upholding the pre-emption rights of co-sharers in the Atam Prakash case.

The court also held that in a suit for pre-emption under Section 22(1), the invalidity of the sale already effected by the co-heirs can be considered and decided as an incidental matter, without the need for a separate prayer for declaration or setting aside the sale deed.

Decision

The Supreme Court upheld the decision of the first appellate court, which had allowed the plaintiff's claim for pre-emption under Section 22(1) of the Hindu Succession Act. However, the court directed the plaintiff to deposit an additional sum of ₹25,000 as part of the consideration payable to the other co-heirs, in line with the principles laid down in the Govindan Nair case.