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Sunday, December 8, 2019

right of pre-emption = in order to claim the right of pre-emption, the plaintiff should have such right as, inter alia, the co-sharer or heir of the said property. In the matter at hand, though the respondent was declared as a co-sharer by virtue of the decree dated 28.03.1984, the said decree was set aside by the First Appellate Court, the High Court as well as this Court. Thus, the respondent cannot be considered as a co-sharer, and since it is so, he cannot claim the right of pre-emption either.

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IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 9064 OF 2019
(Arising out of SLP (C) No.11268 of 2018)
SURAJ BHAN & ORS.                                 APPELLANT(S)
                                VERSUS
GORAKH RAM                                        RESPONDENT(S)
O R D E R
Heard learned counsel for the parties.
Leave granted.
The   judgment   dated   21.02.2018   in   R.S.A   No.   444   of   1995
passed   by   the   High   Court   of   Punjab   and   Haryana   at   Chandigarh
has been called in question in this appeal.
The brief facts in this appeal are as under:
The   respondent   herein   filed   a   suit   claiming   pre-emption
on  the  ground  that  he  was  a  co-owner  of  the  suit  property  and
had   been   in   possession   thereof   by   virtue   of   decree   dated
28.03.1984. The said decree had been passed by the Trial Court
in   a   prior   suit   wherein   the   respondent   was   declared   as   a   co-
sharer   in   the   suit   property.     Based   on   this,   the   respondent
filed   the   suit   for   pre-emption,   which   came   to   be   decreed   on
13.08.1993.     This   decree   was   subsequently   confirmed   by   the
First Appellate Court on 10.12.1994.
  In   the   meanwhile,   the   appellant   herein   filed   an   appeal
against the  decree dated  28.03.1984.    This appeal  was allowed
and consequently, the declaration that the respondent is a co-
sharer   in   the   suit   property   was   set   aside   vide   order   dated

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30.04.2005.     This   order   was   confirmed   by   the   High   Court   on
11.05.2010   and   by   this   Court   vide   order   dated   25.08.2005   in
SLP   (C)   No.23144/2014.   Thus,   the   decree   passed   in   favour   of
the   respondent,   declaring   him   as   a   co-sharer,   was   set   aside
and this has been confirmed upto this Court. Consequently, the
respondent   cannot   be   said   to   be   a   co-sharer   in   the   suit
property.
Despite this, in the second appeal filed by the appellant
herein   against   the   decree   dated   13.08.1993   passed   in   the   suit
for   pre-emption,   the   High   Court   has,   vide   the   impugned
judgment, held that the respondent is entitled to exercise his
right   of   pre-emption   under   the   provisions   of   the   Punjab   Pre-
emption Act, 1913.  In doing so, the High Court relied upon the
judgment   of   this   Court   in   Shyam   Sunder   &   Ors.   v.   Ram   Kumar   &
Anr., (2001) 8 SCC 24.
In the aforementioned judgment by a Constitution Bench of
this   Court   (supra),   the   principles   of   pre-emption   have   been
succinctly stated as follows:
�In   changed   circumstances,   the   right   of   pre-emption
may   be   called   outmoded,   but   so   long   it   is
statutorily recognized, it has to be given the same
treatment   as   any   other   law   deserves.     The   right   of
pre-emption   of   a   co-sharer   is   an   incident   of
property   attached   to   the   land   itself.     It   is   some
sort of encumbrance carrying with the land which can
be enforced by or against the co-owner of the land.
The   main   object   behind   the   right   of   pre-emption,
either   based   on   custom   or   statutory   law,   is   to
prevent   intrusion   of   a   stranger   into   the   family-
holding   or   property.     A   co-sharer   under   the   law   of
pre-emption has right to substitute himself in place
of   a   stranger   in   respect   of   a   portion   of   the
property   purchased   by   him,   meaning   thereby   that
where   a   co-sharer   transfers   his   share   in   holding,
the other co-sharer has right to veto such transfer

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and thereby prevent the stranger from acquiring the
holding   in   an   area   where   the   law   of   pre-emption
prevails.     Such   a   right   at   present   may   be
characterised   as   archaic,   feudal   and   outmoded   but
this was law for nearly two centuries, either based
on   custom   or   statutory   law.     It   is   in   this
background   the   right   of   pre-emption   under   statutory
law   has   been   held   to   be   mandatory   and   not   mere
discretionary.  The court has no option but to grant
decree   of   pre-emption   where   there   is   a   sale   of   a
property by another co-sharer.
From   the   aforesaid   observations,   it   is   amply   clear   that
the right of pre-emption is a sort of encumbrance carrying with
the   land,   which   can   be   enforced   by   or   against   the   co-owner   of
the property only.   This is because the main object behind the
right of pre-emption is to prevent intrusion by a stranger into
the family holding of a property. Section 17 of the Punjab Pre-
emption   Act,   1913   also   indicates   this   by   stating   that   the   co-
sharers   or   the   heirs   of   a   person   can   claim   the   right   of   pre-
emption. The provision reads as follows:
�17.   Where   several   pre-emptors   are   found   by   the
Court   to   be   equally   entitled   to   the   right   of   pre-
emption, the said right shall be exercised�
a) if they claim as co-sharers, in proportion
among   themselves   to   the   shares   they   already
hold in the land or property;
b) if they claim as heirs, whether co-sharers
or   not,   in   proportion   among   themselves   to   the
shares   in   which   but   for   such   sale   they   would
inherit   the   land   or   property   in   the   event   of
the vendor�s decease without other heirs;
c)  [Omitted]
d) [Omitted]
e) in   any  other   case,  by   such  pre-emptors   in
equal shares.�
Thus,   it   is   clear   that   in   order   to   claim   the   right   of

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pre-emption,   the   plaintiff   should   have   such   right   as,   inter
alia, the co-sharer or heir of the said property.
In the matter at hand, though the respondent was declared
as   a   co-sharer   by   virtue   of   the   decree   dated   28.03.1984,   the
said   decree   was   set   aside   by   the   First   Appellate   Court,   the
High Court as well as this Court.   Thus, the respondent cannot
be   considered   as   a   co-sharer,   and   since   it   is   so,   he   cannot
claim the right of pre-emption either.
Accordingly,   the   judgment   of   the   High   Court   dated
21.02.2018 is liable to be set aside and Civil Case No. 260 of
1990 stands dismissed.
The appeal is allowed in the above terms.
  ����������������������J.
[MOHAN M.SHANTANAGOUDAR]
��������������������.J.
[KRISHNA MURARI]
NEW DELHI;
NOVEMBER 27, 2019

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ITEM NO.8               COURT NO.13               SECTION IV
               S U P R E M E  C O U R T  O F  I N D I A
                       RECORD OF PROCEEDINGS
Civil Appeal  No(s).  9064/2019
Arising out of SLP ( C) No. 11268 of 2018
SURAJ BHAN & ORS.                                  Appellant(s)
                                VERSUS
GORAKH RAM                                         Respondent(s)
Date : 27-11-2019 This appeal was called on for hearing today.
CORAM :
         HON'BLE MR. JUSTICE MOHAN M. SHANTANAGOUDAR
         HON'BLE MR. JUSTICE KRISHNA MURARI
For Appellant(s) Mr. P.S. Patwalia, Sr. Adv.
                    Mr. Rajat Singh, AOR
                 
For Respondent(s)  Mr. Vikas Mehta, AOR
 Mr. Mithun Shashank, Adv.   
               
          UPON hearing the counsel the Court made the following
                             O R D E R
Leave granted.
The appeal is allowed in terms of signed order.
(RAJNI MUKHI)                            (R.S. NARAYANAN)
SENIOR PERSONAL ASSISTANT              COURT MASTER (NSH)
      (Signed order is placed on the file)