10 October 1963
Supreme Court
Download

BHAGWATI PRASAD SAH AND OTHERS Vs BHAGWATI PRASAD SAH AND ANOTHER

Bench: P.B. GAJENDRAGADKAR,K. SUBBA RAO,K.N. WANCHOO,J.C. SHAH,RAGHUBAR DAYAL
Case number: Appeal Civil 672 of 1962


1

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 12  

PETITIONER: BHAGWATI PRASAD SAH AND OTHERS

       Vs.

RESPONDENT: BHAGWATI PRASAD SAH AND ANOTHER

DATE OF JUDGMENT: 10/10/1963

BENCH:

ACT:     pre-emption--Muhammadan Law--Nature of --If right  could be  exercised in respect of lease hold  interest--Land  sold with house thereon--If pre-emption allowable regarding house only--Constitutionality of law of  pre-emption--Constitution of India, Art. 19(1) (g).

HEADNOTE:     One Chathilal Sah of Sahebganj, Bihar, was the owner  of a house and two golas which stood on a rent-paying land  and he  executed  a will bequeathing the said  property  to  his daughter  and  nephew in equal shares.  In 1940  the  nephew sold  one half of the property to respondent No. 1  who  two years later acquired under a patta some adjoining lands.  In 1949  respondent  No. 3 alleging to be the  husband  of  the daughter  sold  the  remaining  half  of  the  property   to appellants  1 and 2.  In December 1949  respondent  filed  a title  suit for declaration that he has a right to  pre-empt the  property  purchased  by  appellants 1  and  2  and  for directing them to transfer the same to him.  The trial court dismissed the suit but in the appeal before the  Subordinate Judge  he succeeded and the High Court dismissed the  appeal presented by the appellant. The present appeal is by special leave granted by this Court.     Before  this Court four contentions were raised  by  the appellants,  two of which being pure questions of  fact  and not  having  been  raised  in  the  courts  below  were  not considered by this Court.  The questions of law raised  were (a) the right of pre-emption infringes the fundamental right of  a citizen under Art. 19 (1) (f) of the Constitution  and (b) there is no right of pre-emption in respect of leasehold interest  and  therefore  there cannot be a  right  of  pre- emption in respect of a house standing on such land.     Held:  (i) The law of pre-emption  vis-a-vis  co-sharers does not infringe the fundamental right conferred under Art. 19(1) (f) of the Constitution.     Bahu  Ram  v. Baij Nath, [1962] Supp. 3 S.C.R.  724  and Nuri Mian v.Ambica Singh, (1917) I.L.R. 44 Cal. 47.     (ii) A right of pre-emption is annexed to full ownership of  property of co-sharers.  It is not attached to  property held  on subordinate tenure, such as lease etc.   It  is  an incident  of  the co-sharer’s property operating both  as  a right  and  as a burden in different situations.   It  is  a right of substitution taking in the entire bargain.  It must take  the  whole  or nothing.  It does  not  matter  if  the inability to take the house arises out of a voluntary act or out  of  a legal limitation inherent in the  nature  of  the property  transferred.  It is reciprocal in operation,  that is, if the situation was reversed and the vendor became  the

2

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 12  

pre-emptor, he should 106 be in a position to pre-empt the co-sharers’ whole bargains. The two doctrines which may, for convenience be referred  to as "entire bargain" and "reciprocity" cannot operate  unless both  the  co-sharers are full owners  of  their  respective properties.  Akar or a house standing on a freehold land  is subject  to  the  right  of preemption, but  a  house  on  a leasehold  land stands on a different footing.  As there  is no right of pre-emption in respect of a land on  subordinate tenure  the right of pre-emption cannot be enforced  against the  house either, as the pre-emptor cannot  be  substituted for  the  entire bargain.  The right must fail also  on  the ground  that  the super-structure disannexed from  the  land would  be movable property and it is well settled  that  the right  of  pre-emption  cannot be  enforced  in  respect  of movables.  Case law reviewed.     Bishan Singh v. Khazan Singh, [1959] S.C.R. 878,  Goblad Dayal  v. Inayatullah, (1885) I.L.R. 7 All 775, Sakina  Bibi v.  Amiran,  (1888) I.L.R. 10 All 472,  Dashrathlal  v.  Bai Dhondubai, A.I.R. (1941) Bom. 262, Shri Audh Behari Singh v. Gajadhar  Jaipuria, [1955] 1 S.C.R. 70, Mr. Bibi  Saleha  v. Amiruddin(1929)I.L.R.  8 Pat. 251, Baboo Ram Golam Singh  v. Nursingh Sabey, (1876) 25 W.R. 43 Mohammad Jamil v. Khub Lal Raut,  (1921)  5 Pat. L.J. 740, Phul Mohammad Khan  v.  Qazi Kutubuddin,  A.I.R. 1937 Pat. 578, Mooroof ly Ram  v.  Baboo Hari  Ram, (1867) 8 W.R. 106, Rameshwar Lal v.  Ramdeo  Jha, A.I.R.  1957 Pat. 695, Nathuni Ram v. Gopinath, A.I.R.  1962 Pat. 226 (F.B), Zahur v. Nur Ali, (1880) I.L.R. 2 All 99 and Chariter Dusadh v. Bhagwati Pandey A.I.R. 1934 Pat. 596.     Per  Raghubar Dayal J--While agreeing with the  majority judgment  on  other points, no opinion is expressed  on  the point whether in certain circumstances the pre-emptor can or cannot pre-empt part of the property sold.  There have  been cases where partial pre-emption has been allowed.     Zainab Bibi v. Umar Hayat Khan, (1936) All. L.J. 456 and Bishan Singh v. Khazan Singh, [1959] S.C.R. 878.     Sale  of leasehold interest in land is not  pre-emptible and  that the super-structure of the house is also not  pre- emptible and therefore the plaintiff-pre-emptor cannot  pre- empt the property sold. The appeal should be allowed.

JUDGMENT:     CIVIL  APPELLATE JURISDICTION: Civil Appeal No.  672  of 1962.   Appeal by special leave from the judgment and order  dated December  10, 1958, of the Patna High Court in  Appeal  from Appellate Decree No. 716 of 1954. S.P. Varma, for the  appellants.     Sarjoo Prasad and Mohan Behari Lai, for the respondents. 107    October 10,  1963.  The  Judgment of P.B. Gajendragadkar, K. Subba Rao, K.N. Wanchoo and J.C. Shah JJ., was  delivered by   Subba  Rao J. Raghubar Dayal J.  delivered  a  separate Opinion.     SUBBA  RAO J.--This appeal by special leave is  directed against  the  judgment of the High Court of’  Judicature  at Patna  and  raises mainly the question of the scope  of  the right  of pre-emption under the Mohamedan law as applied  by custom in Bihar.     The  facts  lie in a small compass.  On June  17,  1930, Chathilal Sah of Sahebganj, who was the owner of a house and

3

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 12  

two  golas  bearing holdings Nos. 184 and  185  situated  in mahalla  Sahebganj,  executed a will  bequeathing  the  said property to his daughter Parbati Kuer and nephew Ram  Swarup in equal shares.  Under the said will Ram Swarup was to  get the  entire property in case Parbati Kuer died unmarried  or issueless.   On July 18, 1940, Ram Swarup sold  one-half  of the  said property to the plaintiff-respondent 1.   On  July 27, 1942, the plaintiff-respondent 1 acquired under a  patta some  lands  adjoining the said property.   On  October  10, 1949, defendant 3 (respondent 3 herein), alleging to be  the husband of the said Parbati Kuer, sold the remaining half of the  disputed  property to defendants 1 and 2.   It  may  be mentioned  at  this stage that the land on  which  the  said house  and  golas stand is Dih-Basgit  Lagani  (rent-paying) land.   On December 10, 1949, respondent 1 filed Title  Suit No.  214 of 1949 in the First Court of the Munsif at  Chapra for  a  declaration  that he has a  right  to  pre-empt  the property  purchased by appellants 1 and 2 and for  directing them  to transfer the said property to him.  To  that  suit, the first appellant and his two sons were made defendants 1, 2  and  2A  and  their vendor was  made  defendant  3.   The defendants  contested the suit, inter  alia, on  the  ground that  the ceremonies of pre-emption were not  performed  and that under the Mohamedan, law the plaintiff was not entitled to  pre-emption,  as the land on which the  said  house  and golas  stood  was "rent-paying" land.   The  learned  Munsif dismissed the suit.  But, on appeal the Subordinate 108 Judge of Chapra allowed the appeal and granted a decree  for pre-emption  in  favour of the plaintiff-respondent  1.   On appeal, the High Court agreed with the Subordinate Judge and dismissed the appeal.  Defendants 1, 2 and 2A have preferred the present appeal by ’special leave against the Judgment of the High Court.  Mr.  Varma,  learned  counsel for  the  appellants,  raised before  us the following four points: (1) the right of  pre- emption  infringes the fundamental right of a citizen  under Art.  19(1) (f) of the Constitution and it is not  saved  by cl.  (5)  thereof:  (2)  the  first  respondent  failed   to establish  his  title and, therefore, his suit  should  have been  dismissed on that ground; (3) the ceremonies  of  pre- emption were performed only on October 11, 1949 whereas  the sale  deed  in  favour of the appellants  was  executed  and registered on October 20, 1949 and, as the said  performance of the ceremonies was premature, they having been  performed before  the  sale was completed, the  right  of  pre-emption could  not  be enforced; and (4) there is no right  of  pre- emption  in  respect of leasehold interest  and,  therefore, there cannot be a right of pre-emption in respect of a house standing on such land, as Mohamedan law does not recognize a right of pre-emption in mere super-structure.     Mr.  Sarjoo Prasad, learned counsel for the  respondents controverts  the correctness of the said  propositions.   We shall deal with his arguments in the course of the judgment.     To  appreciate the first contention, some dates  may  be recapitulated.  Respondent 1 purchased one-half share of the property  by a sale deed dated July 18, 1940.  Appellants  1 and  2 purchased the other half of the property  on  October 10,  1949.   The suit was filed on December 10,  1949.   The Munsif   dismissed  the  suit  on  April  14,   1953.    The Constitution  came  into  force on  January  26,  1950.  The appellants  had no fundamental right on the date  when  they purchased  the property.  But it is said that under the  law of pre-emption a person who seeks the assistance of a  court with a view to enforce the right of pre-emption is bound  to

4

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 12  

establish that the 109 right  existed on the date of the sale, on the date  of  the institution of the suit, and also on the date of the  decree of the primary court--See Nuri Mian v. Ambica Singh(1)  and, therefore,  the restriction on the  appellants’  fundamental right to acquire the property was not finally imposed before the   Constitution,   but  became   crystallized   into   an irrevocable  restriction only at the time of the passing  of the decree which was subsequent to the coming into force  of the  Constitution.  We need not express our opinion on  this question,  as it has been held by this Court in Bhau Ram  v. Baij  Nath(2)  that  a right of  pre-emption  vis-a-vis  co- sharers   was  not  an  unreasonable  restriction   on   the fundamental  right of a person to acquire, hold and  dispose of  property.   But learned counsel contends  that  decision should  be confined to a case of co-sharers who are  related to each other, and should not be extended to co-sharers  who are  not related to each other. Reliance is placed upon  the following observations in that judgment found at p. 1483:                      "If an outsider is introduced as a  co-               sharer  in  a  property it  will  make  common               management extremely difficult and destroy the               benefits of ownership in common." This sentence does not, in our view, sustain the distinction sought to be made by the learned counsel between  co-sharers who  are  relatives and co-sharers, who are  not  relatives. The  word  "outsider" in the said passage can  only  mean  a person  who is not a co-sharer.  The judgment of this  Court finally   settled  the  question  as   between   co-sharers. Following  the decision we hold that the law of  pre-emption vis-a-vis co-sharers does not infringe the fundamental right conferred under Art. 19 (1) (f) of the Constitution.     The  second  question, namely, that of  the  plaintiff’s title  does  not call for consideration by us.  It  was  not raised in the courts below, and it being a pure question  of fact,  we  cannot allow it to be raised for the  first  time before us. We, therefore, disallow it. (1) [1917] I.L.R. 44 Cal. 47.     (2) A.I.R. 1962 S.C. 1476. 110 The  next  point raised by the learned counsel is  that  the ceremonies  of  pre-emption  performed in  this   case  were premature,  as  the sale was completed only on  October  20, 1949  whereas the ceremonies were performed on  October  11, 1949.   This  Court, by  a majority, held in  Ram  Saran  v. Domini Kuer(1) that the registration under the  Registration Act  is not complete till the document to be registered  has been copied out in the records of the Registration Office as provided  in  s. 61 of that Act.  Learned  counsel  contends that  a perusal of the sale deed dated October 10, 1949,  ex facie  shows  that it was copied only on October  20,  1949. The  question  as to when a document was copied out  in  the concerned  register  is certainly a question of  fact.   The argument  was  not raised either before the trial  court  or before  the first appellate court.  No issue was  framed  on the point.  It was raised for the first time before the High Court.   The  learned Judges of the High Court  pointed  out that if the appellants wanted to take advantage of the  said point,  it  was their duty to have raised it either  in  the trial  court  or in the first appellate court  and  to  have adduced  evidence  by  calling for  the  register  from  the registration  department  to show on what  date  the  actual copying  of  the  record  was  made  under  s.  61  of   the Registration Act.  In the circumstances,  the learned Judges refused  to  allow the appellants to raise the  point.   The

5

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 5 of 12  

High  Court,   in  our  opinion,  was  certainly  right   in disallowing the appellants from raising the question of fact for  the first time in second appeal.  If the plea had  been taken  at the earliest point of time, the respondents  might have had many defences and might have explained the  various dates   found  on  the  documents.   We  cannot  allow   the appellants to raise the said plea.      Now  we  come to the substantial point  raised  in  the appeal.   The right of pre-emption is sought to be  enforced in  respect  of  a rent-paying land with  a  house  thereon. Learned  counsel for the appellants contends that the  right of pre-emption does not arise (1) A.I.R. 1961 S.C. 1747. 111 on the sale of a leasehold interest  in land and that in the absence  of  such a right there cannot be a  right  of  pre- emption  in respect of the super-structure  alone.   Learned counsel  for  the respondents, on the other  hand,  contends that under Mohamedan law the right of pre-emption exists  in the  case of akar i.e.,  a  house  or  mansion,  to   enable the  co-sharer  to have peaceful enjoyment thereof and  that the fact that there is no right of pre-emption in respect of a  leasehold  interest in land does not in any  way  detract from  that right.  He further contends that  whatever  might have  been the strict incidents of the right of  pre-emption under  Mohamedan  law, this Court cannot ignore  the  modern evolution   of  law  recognizing  the  transferability   and heritability of leasehold interest in land.     Before  we consider the problem thus presented  for  our decision,  it  would be convenient at the outset  to  notice certain general principles relevant to the present  enquiry. It  has  not been disputed that Hindus in  the  Province  of Bihar  came to adopt the Mohamedan law of pre-emption  as  a custom.   This was because under the Muslim rule the law  of pre-emption  under the Mohamedan law was administered  as  a rule of common law of the land in those parts of the country which  came  under their domination.  We  must,  therefore,. look  to  Mohamedan law to ascertain the  incidents  of  the right   of  pre-emption  unless  it  is  established  in   a particular  case  that  by  custom the  said  law  has  been modified  to any extent.  Being a customary law, it  is  not permissible  for  courts  to extend the  custom  beyond  the limits  within which upto  now it has been recognized.   The concept   of  rationalization  is  out  of  place   in   the ascertainment  of  the customary incidents of the  right  of pre-emption.  This Court in Bishan Singh v. Khazan  Singh(1) considered  the  law  on  the  subject  and  laid  down  the propositions  flowing  from the discussion.   The  following propositions  are relevant to the present enquiry:  (1)  The right of pre-emption is simply a right of sub-  (1)  [1959] S.C.R. 8 78. 112 situation, but not of re-purchase i.e., the pre-emptor takes the entire bargain and steps into the shoes of the  original vendee;  (2)  it  is a right to acquire  the  whole  of  the property sold and not a share of it; and (3) the right being a  very  weak right, it can be defeated  by  all  legitimate methods,  such  a.s the vendee allowing the  claimant  of  a superior or equal right being substituted in his place.   It is, therefore, settled law that the pre-emptor must take the entire bargain: he cannot split up the bargain and claim  to be  substituted in respect of a portion of it either on  the ground  that  he does not require a part of it  or  for  the reason  that  he is entitled to claim  pre-emption  only  in respect  of a part of it.  Further, the right being  a  weak

6

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 6 of 12  

one, a court need not be astute to rationalize the  doctrine so  as  to make it fit into modern trends of  property  law. Indeed,  it  should  be reluctant to extend  it  beyond  the incidents clearly recognized by Mohamedan law or by custom.      With  this background let us now turn to  the  question that  arises in this case.  The subject can conveniently  be considered  under  three  heads: the  pre-emptor;  (ii)  the vendor; and (iii) the property in respect of which the right is  claimed.  In Baillie’s "Digest of Moohummudan  Law"  the following passage appears at p. 478:                       "When  it is said that akar  (such  as               mansions, vine-yards and other kinds of  land)               are  proper  objects  of  the  right  of  pre-               emption,  it is by virtue of a right of  milk,               or ownership, that they are so." Mahmood 3. in Gobind Dayal v. Inayatullah(1) observed at  p. 779 thus:                   "pre-emption is a right which the owner of               certain   immovable  property  possesses,   as               such,   for  the  quiet  enjoyment   of   that               immovable property, to obtain, in substitution               for  the  buyer,  proprietary  possession   of               certain other immovable property, not his own,               on such terms as these               113               on  which such latter immovable   property  is               sold to another person."               The  same  learned  Judge in  Sakina  Bibi  v.               Amiran(1)  states  that  in  the   pre-emptive               tenement  (the  tenement by the  ownership  of               which  the  pre-emptor wants to  exercise  his               right of pre-emption ), the pre-emptor  should               have   vested   ownership  and  not   a   mere               expectancy  of inheritance or  a  reversionary               right, or any other kind of contingent  right,               or  any  interest which falls  short  of  full               ownership.   Beaumont C.J. in  Dashrathlal  v.               Bai Dhondubai(2), after considering the law on               the subject, accepted the view that the custom               of   preemption   only   exists   as   between               free  holders,   that is to  say  neighbouring               lands in respect whereof the custom is claimed               to  apply must be freehold and that  the  land               sought  to  be pre-empted must  also  be  free               hold.   This Court, in Shri Audh Bihari  Singh               v.  Gajadhar  Jaipuria(3), has laid  down  the               correct legal position thus:                     "........the  benefit  as  well  as  the               burden  of the right of pre-emption  run  with               the land and can be enforced by or against the               owner of the land for the time being  although               the right of the pre-emptor does not amount to               an interest in the land itself."               This  legal requirement of the full  ownership               of the pre-emptor may be traced either to  the               fact that "in ancient times Mohamedan law  did               hot  recognize leases although  it  recognized               hire of|and for the purpose of user, or to the               circumstance  that the right was conferred  to               enable   the   pre-emptor   to   prevent    an               undesirable    person   from   becoming    his               neighbour"  which would not be the case if  he               was only a temporary occupant of the  property               in respect whereof the right arose.   Whatever               may  be the reason, it may safely be held  now

7

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 7 of 12  

             that  the pre-emptor must be the owner of  the               property  in  respect whereof  he  claims  the               right of pre-emption.               (1)  (1888)I.L.R.10 All. 472, 477. (2)  A.I.R.               1941 Bom.262.                                (3) [1955] 1 S.C.R. 70, 80.               1 SCI/64--8               114               The  next  question, namely,  the  quantum  of               interest which the vender shall possess in the               land  sought to be pre-empted depends upon the               doctrine  of reciprocity.  Unless the land  in               respect of which the custom is claimed and the               land  sought to be pre empted  are  freeholds,               the   principle   of   reciprocity   will               be  defeated..To  illustrate:  "A"  has   full               ownership  in  a land in respect of  which  he               claims the right of pre-emption;the  co-sharer               vendor  has  only  a  leasehold  interest   in               respect  of the land sought to be  pre-empted;               if  the pre-emptor had sold the land  earlier,               the vendor having only a leasehold interest in               his land, could not have claimed the right  of               pre-emption in respect of his land, for he had               no full ownership in the land. The absence  of               this reciprocity gives an advantage to one  of               the  sharers which the Mohamedan law does  not               permit.  This doctrine of reciprocity has been               succinctly  stated  by Mahmood  J.  in  Gobind               Dayal v. Inavatullah(1) in the passage we have               extracted   earlier.  In  Mt. Bibi  Saleha  v.               Amiruddin(2)  the said doctrine was  restated.               It  was  held  therein  that  a   mukarraridar               holding under a co-sharer had no right to pre-               empt  as  against another co-sharer and  as  a               mukarraridar could not claim pre-emption,  the               co-sharer  on  the  doctrine  of  reciprocity,               which is well understood in the Mohamedan law,               could   not  claim  pre-emption  against   the               mukarraridar. A Full Bench of the Bombay  High               Court  in Deshrathlal v. Bai Dhondubai(3)  has               given   its  approval to the  said  principle.               This  Court  in  Shri  Audh  Behari  Singh  v.               Gajadhar Jaipuria(4) succinctly put the  legal               position in the following words:                      "The  crux of the whole thing  is  that               the benefit as well as the burden of the right               of  pre-emption run with the land and  can  be               enforced  by or against the owner of the  land               for  the time being although the right of  the               pre-emptor  does not amount to an interest  in               the land itself."               That leasehold interest is not subject to  the               law of pre-emption has been well settled:  see               Baboo Ram               (1)  [1885]  I.L.R. 7 All.  775.   (2)  [1929]               I.S.R. 8 pat  251.               (2)  A.I.R.  1941 Bom. 262.    (4)   [1955]  1               S.C.R. 70,80.               115               Golam  Singh  v. Nursingh  Sabey(1),  Mohammad               Jamil  v.  Khub Lal Raut(2);  Sakina  Bibi  v.               Amiran(3);    Phul  Mohammad  Khan   v.   Qazi               Kutubuddin(4);   Moorooly  Ram v.  Baboo  Hari               Ram(5);  Rameshwar Lal v. Ramdeo  Jha(6);  and

8

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 8 of 12  

             Nathuni Ram v. Gopinath(7).  Indeed this legal               position has not been controverted by  learned               counsel for the respondents.                   Now  let us address ourselves to the  main               contention  of the respondents,  namely,  that               the   right  of  pre-emption  exists  in   the               Mohamedan   law  in  respect  of  akar   which               includes  a  building, that the  main  purpose               intended to be served by the said right is  to               prevent  an undesirable person  from  becoming               the  sharer of the house and that,  therefore,               it would be unrealistic to negative that right               in the case of a house on the ground that  the               land on which the house stands is a  leasehold               interest.    Reliance  is  placed   upon   the               following  passage in Charles Hamilton’s  "The               Hedaya", 2nd Edn., at p. 558:--                      "It  is observed, in the abridgment  of               Kadooree,  that Shaffa does not affect even  a               house  or trees when sold separately from  the               ground  on  which they  stand.   This  opinion               (which  is also mentioned in the  Mabsoot)  is               approved;  for as buildings and trees are  not               of  a permanent nature, they are therefore  of               the class of movables." Relying  upon this passage it is contended that, as  in  the present  case the house was sold along with the ground,  the doctrine of "Shaffa" applies to the house. But this  passage must be understood on the assumption that the right of  pre- emption  exists  in respect of the land on which  the  house stands.  In Baillie’s "Digest of Moohummudan Law", the legal position is made clear.  Therein the author says at pp. 479- 480:                      "When  a person has purchased  a  palm-               tree to cut it down, or when he has  purchased               it  absolutely,  there  is no  right  of  pre-               emption in it.  But               (1)  [1876]  25 W.R. 43.   (2) [1921]  5  Pat.               L.J. 740.               (3)[1888] I.L.R. 10 All. 472, 477. (4)  A.I.R.               1937 Pat. 578.               (5)  [1867] 8 W.R.106.        (6) A.I.R.  1957               Pat. 695.               (7) A.I.R. 1962 Pat. 226 (F.B.)               116               if  it  be purchased with its  roots  and  the               ground on which it stands, it is liable to the               right.   The rule is the same with  regard  to               buildings purchased for removal, and the  same               buildings  purchased with  their  foundations;               and   there  is no preemption  in  the  former               case, while there is in the latter." This   passage   indicates  that  a  building  sold   as   a superstructure  is not subject to the right of  pre-emption, for  it would be in effect a sale of a movable.  Unless  the house is sold with its foundations, that is to say with  the land on which it stands, there is no right of pre-emption in regard  thereto.  Though it may be said that in the  present case  the  house  was sold with its  foundations,  the  same principle  will  have to be applied, for the right  of  pre- emption  cannot  be  invoked  in the  case  of  a  leasehold interest.  In effect and substance the right is sought to be invoked  in the case of the building decors the  foundations which the law does not permit.  Reliance is placed upon  the proposition found in para. 370 of Wilson’s  Anglo-Muhammadan

9

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 9 of 12  

Law, which reads:                   "If a house is sold apart from the  ground               on which it stands with a view to being pulled               down,  so  that it is in fact a  sale  of  the               materials, no right of pre-emption arises with               respect to it. If it is sold for occupation as               a house, then preemption can be claimed on the               ground  of  vicinage  by  the  owner  of   any               adjoining  land or house (and perhaps  by  the               owner of the site itself, supposing him to  be               a  different  person from the  vendor  of  the               house, even though he should happen to own  no               land except that covered by the house)."  It  is  said that the words in the brackets  conceding  the right of the owner of a site to pre-empt the house sold as a house indicates that the real principle is whether the house is  sold as a habitate or only as materials and that in  the former case irrespective of the ownership of the land or the existence  of the right of pre-emption in  respect  thereof, the sale of the house can be pre-empted.  The opening word 117 of  the  passage, namely, "perhaps", shows that  the  author himself is not sure of the legal position.  That apart,  the illustration  only  deals with a land in  respect  of  which there can be a right of pre-emption, i.e., the owner of  the land  has  a freehold interest therein. Strong  reliance  is placed  upon  the  decision  of  a  Division  Bench  of  the Allahabad  High  Court  in Zahur v. Nur  Ali(1).   There,  a dwelling  house  was sold as a house to be inhabited  as  it stood  with the same right of occupation as the  vendor  had enjoyed, but without the ownership of the site.  It was held that  the  right  of pre-emption  under  the  Mohamedan  law attached  to such house.  The judgment is not  a  considered one.  The learned Judges observed at p. 100 thus:                     "The seller not only sold the  materials               of   the  house,  but  such  interest  as   he               possessed  as  an occupier of the  soil.   The               house  was sold as a house to be inhabited  on               the spot with the same right of occupation  as               the seller had enjoyed.’’ The  learned  Judges distinguished the texts  cited  on  the ground  that they applied only to the sale of the  materials of a house or a house capable of and intended to be  removed from  its  site.   This  judgment  no  doubt  supports   the contention  of learned counsel for the respondents; but  the learned   Judges  have  not  considered  the  well   settled principle  that  there cannot be a right of  pre-emption  in respect  of  a  land  over which  the  vendor  has  no  full ownership.  The decision suffers from the infirmity that the said well settled principle has escaped the attention of the court. Reliance is also placed on the decision of a Division Bench of the Patna High Court in Chariter Dusadh v. Bhagwati Pandey(2).  There,  the question was whether the  pre-emptor had the milkiyat or ownership in the property on account  of which  he claimed the right of pre-emption.  The  pre-emptor was  birtdar  though  he was described as a  tenant  in  the Record of-Rights for a particular purpose.  The court held (1) (1880)I.L.R. 2 All. 99.        (2) A.I.R. 1934 Pat. 596. 118 that  he  was a full owner.  This decision does  not  really support  the respondents.  There is a direct  decision of  a Full  Bench  of  the Patna High Court on  the  question  now raised,  in Nathuni Ram v. Gopinath(1).  There, as here,   a right of pre-emption was claimed in respect of a house which stood  on a leasehold land.  After a full discussion of  the

10

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 10 of 12  

subject, Choudhary J., speaking for the Full Bench, came  to the following decision, at p. 229:                      "On  a  careful  consideration  of  the               authorities and the principle of law  involved               in  the case, my concluded opinion is  that,in               case  of a sale of different properties,  the.               right of pre-emption cannot be exercised  with               respect  to  one or some of them only  if  the               enjoyment thereof is dependent on the property               over  which  that right is not and  cannot  be               exercised  in law and consequently, where  the               land is sold with a house thereon, pre-emption               cannot  be allowed. with respect to the  house               only apart from the land over which the  right               could not be exercised on account of its being               a leasehold property.  The sale of a house for               inhabitation  or occupation, without the  sale               of its foundations and the land over which the               foundations  stand, is inconceivable,  except,               as pointed out in Hedaya, in case of the  sale               of the upper story of a house." We  agree  with  the  conclusion.   As  this  judgment   has considered the earlier decisions on the subject, we need not again refer to them.     To summarize:  A right of pre-emption is annexed to full ownership of property of co-sharers.  It is not attached  to property held on subordinate tenure, such as leases etc.  It is an incident of the co-sharer’s property operating both as a  right and as a burden in different situations.  It  is  a right of substitution taking in the entire bargain.  It must take  the  whole  or nothing.  It does  not  matter  if  the inability to take the whole arises out of a voluntary act or out of a legal limitation inherent in the nature of the  (1) A.I.R. 1962 Pat. 226 (F.B.) 119 property  transferred.  It is reciprocal in operation,  that is, if the situation was reversed and the vendor became  the pre-emptor,  he should be in a position to pre-empt the  co- sharer’s  whole bargain.  The two doctrines which  may,  for convenience,   be  referred  to  as  "entire  bargain"   and "reciprocity" cannot’ operate unless both the co-sharers are full owners of their respective properties.  Akar or a house standing  on  a  freehold land is subject to  the  right  of preemption,  but  a house on a leasehold land  stands  on  a different  footing.  As there is no right of  preemption  in respect of a land held on a subordinate tenure, the right of pre-emption cannot be enforced against the house either,  as the pre-emptor cannot be substituted for the entire bargain. The  right  must  fall also on the ground  that  the  super- structure disannexed from the land would be movable property and it is well settled that the right of pre-emption  cannot be enforced in respect of movables.     We,  therefore,  hold that the first respondent  has  no right  to  pre-empt  the  sale executed  in  favour  of  the appellants.   In  the  result, the appeal  is  allowed,  the decrees of the Subordinate Judge’s Court and the High  Court are set aside and that of the trial Court is restored.   The appellants will have their costs throughout.      RAGHUBAR DAYAL J.---I agree that the law of pre-emption regarding co-sharers does not infringe the fundamental right conferred  under Art. 19(1)(g), that the pre-emptor must  be the  owner of the property in respect whereof he claims  the right of pre-emption, that the vendor must have  proprietary right in the property sold and sought to be pre-empted, that the sale of lease-hold interest is not subject to the law of

11

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 11 of 12  

pre-emption  and that the sale of the super-structure  of  a house is not pre-emptible.  I also agree that the pre-emptor must  pre-empt for the entire property sold if that be  pre- emptible.  I would, however, not like to express an  opinion upon  the point whether, in certain circumstances, the  pre- emptor can or cannot 120 pre-empt  part of the property sold.  There have been  cases where  partial  pre-emption has been allowed.  Some  of  the exceptional cases have been referred to at p. 778 of ’Muslim Law as Administered in India & Pakistan’ by K.P. Saksena, IV Edition.     In Zainab Bibi v.  Umar Havat Khan(1) the preemptor  was allowed to pre-empt that part of the property sold which was pre-emptible and in support of the decision it was stated at p. 457:                      "So  far  as  the  Mohammedan  Law   is               concerned,  there  is  no  doubt  that   where               several  properties  are sold in  portions  of               which  a  pre-emptor  has the  right  of  pre-               emption,  he  is  entitled  to  preempt   that               portion  only  on payment of  a  proportionate               price.  On this point there was a consensus of               opinion  among the three Imams  as  quoted  in               the Fatawa Alamgiri, referred to in Omur  Khan               v.   Mooras  Khan (1865   N.W.P.  H.C.R.  173,               174)"     This  Court  did express an opinion in Bishan  Singh  v. Khazan  Singh(2):                  "The  general law of pre-emption  does  not               recognize  any right to claim a share  in  the               property sold when there are rival  claimants.               It is well established that the right of  pre-               emption is a right to acquire the whole of the               property  sold in preference to other  persons               (See  Mool  Chand v. Ganga Jal:  ILR  11  Lah.               258, 273)  " In that case the dispute lay between two rival preemptors and arose in these circumstances.  One preemptor  pre-empted the entire sale and obtained the decree on condition that he would deposit a certain amount within a certain time.   But, before  he  could deposit the amount, the  rival  pre-emptor instituted  another suit for the pre-emption of  the  entire property  sold  and impleaded in that suit  the  first  pre- emptor.  The rights of the two pre-emptors were found to  be equal.   The entire property sold was clearly  pre-emptible. It was, in this context, that the observation (1) 1936 A.L.J. 456. (2) [1959] S.C.R. 878,884. 121 was  made.   It would be a matter for consideration  at  the appropriate time whether there can be any exception to  this general  rule  that the entire property sold  must  be  pre- emptor by the pre-emptor in his suit.     I would therefore rest my decision on the facts that the sale of the lease-hold interest in land is not  pre-emptible and  that the super-structure of the house is also not  pre- emptible and that therefore the plaintiff pre-emptor  cannot pre-empt  the sale of the property sold.  I therefore  agree that  the appeal be allowed, the decrees of the  Subordinate Judge and the High Court be set aside and that of the  trial Court  be restored and that the appellants would have  their costs throughout.                                       Appeal allowed.

12

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 12 of 12