High CourtDivision BenchAppeal dismissed.

Prem Dulari v. Raj Kumari

Case / Petition Number:Civil Appeal No. 524 of 1964
Neutral Citation:Prem Dulari v. Raj Kumari, (1967) 3 SCR 274

Case Details & Bench

Court
High Court
Hon'ble Judges
  • K. Subba Rao
  • M. Hidayatullah
  • R. S. Bachawat
  • M. Shelat
  • C. A. Vaidalingam
Judgment Date
1967-03-23
Court Decision / Holding
Appeal dismissed with costs.
Final Disposition
Appeal dismissed.

Parties to the Case

Appellants / Petitioners

  • Prem Dulari

Respondents

  • First Respondent (claimant of right of prior purchase)
  • Second Respondent (owner of the house who sold to appellant)

Legal Representation & Advocates

Counsels for Petitioners

  • • Mr. Misra
  • • S. K. Mehta
  • • K. L. Mehta

Counsels for Respondents

  • • M. C. Setalvad
  • • Mohan Behari Lal

Case Synopsis & Summary

This Supreme Court judgment deals with the Right of Prior Purchase under the Right of Prior Purchase Act, 1993, specifically Section 15(4thly). The appellant Prem Dulari challenged a Jammu and Kashmir High Court decision upholding a prior-purchase claim by the first respondent on the ground that the two houses involved shared a common outer entrance. The Act provides that if a sale is of property having a common outer entrance with other properties, the owners of such properties acquire a right of prior purchase. The key issue was whether the existence of a common outer entrance requires joint ownership of that entrance by the owner selling the property and the owner exercising the right. Both the trial court and the High Court held that the two houses shared a common outer entrance and that the pre-emption right could vest in the owners of such properties, without requiring joint ownership of the entrance itself. The appellant contended that the right should vest only if the common outer entrance is jointly owned; the High Court had rejected this strict construction. The Supreme Court examined the plain language of s.15(4thly) and affirmed that joint ownership is not a prerequisite for the pre-emption right to vest. The Court also considered whether such a provision imposes an unreasonable restriction under Article 19(1)(f) and concluded that it does not; rather, the restriction is a reasonable one for co-ownership arrangements. The appeal was dismissed with costs, upholding the lower courts’ rulings.

Provisions of Law Cited

Right of Prior Purchase Act, 1993, Section 15(4thly)Constitution of India, Article 19(1)(f)Constitution of India, Article 14Punjab Pre-emption Act, 1905, Section 13(1)(fifthly)Punjab Pre-emption Act, 1913, Section 16

Legal Doctrines & Maxims

  • The right of pre-emption is simply a right of substitution, entitling the pre-emptor to stand in the shoes of the vendee in respect of all the rights and obligations arising from the sale.
  • The pre-emptor's name is inserted in the place of the vendee in the sale deed; it is a right to the offer of a thing about to be sold, not a right to purchase the thing already sold.
  • The right of pre-emption is not a right to the thing sold but a right to the thing offered for sale; it is a substitution rather than a re-purchase.
  • Where there is a common outer entrance, the owners of the respective properties may be considered in a position akin to co-sharers for purposes of pre-emption; such restrictions are not inherently unreasonable under Article 19(1)(f).
  • The existence of a common entrance does not require joint ownership to attract the right of pre-emption; the statutory language is plain and unambiguous.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant argued that Section 15(4thly) requires that the common outer entrance be jointly owned by the seller and the claimant to vest the right of prior purchase. Since the section speaks of a 'common outer entrance with other properties' but does not require joint ownership, the literal text should govern; thus, the right could vest in the owners of the properties sharing the entrance without joint ownership of the entrance itself. The argument contended that the construction adopted by the lower courts augments the rights beyond the plain language and could violate Articles 19(1)(f) and 14.

Contentions of Respondents

The respondents contended that the statutory clause does not require joint ownership and that the presence of a common outer entrance suffices to vest the right of prior purchase in the owners of the adjacent properties. They relied on prior precedents recognizing pre-emption as a meaningful limitation on property rights that serves to preserve orderly ownership and prevent fragmentation in common entrances.

Cited Precedents (7)

Case NameCitationTreatmentExplanation
Bhau Ram v. Baijnath[1962] Supp. 3 S.C.R. 724PositiveFollowed by the Court as a controlling authority on the existence and implications of a common outer entrance for pre-emption rights.
Bishan Singh v. Khazan Singh[1959] S.C.R. 878PositiveCited to support the doctrine of substitution in pre-emption and the incidents of the right.
Naba and others v. Piara Mal and another(1912) 44 P.R. 159Distinguished Discussed as a prior case whose facts did not align with the instant issue, hence distinguished.
Nanak Chand v. Tek Chand and othersA.I.R. 1920 Lah. 278Mentioned OnlyCited in the context of common entrance discussions without controlling the outcome.
Asa Nand v. Mahmud(year not clearly stated)Mentioned OnlyReferenced in the discussion of prior decisions without direct application.
Ram Chand v. Ram JowawaPunjab Chief Court decision (date not specified)Mentioned OnlyCited as part of the general landscape of pre-emption jurisprudence.
Govind Dayal v. Inayatullah:nullPositiveCited for the doctrinal definition of pre-emption as substitution and the nature of the right.

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Extracted Judgment Text

Exact text extracted from official judgment records.

**A** B # c D E F G **H** **PREM** **DULAR!** _v._ **RAJ 1'.UMARI** _March_ 23, 1967 [K. SUBBA RAo, C.J., M. HIDAYATULLAH, R. S. BACHAWAT, J. M. SHELAT AND C. A. VAIDIALINGAM, JJ.J _Th.e_ _Right_ _of_ _Prior Purchase_ _Act_ (J. & _K._ _Act_ 11 _of_ 1993), _a ._ . 15 _(fourthly)--Scope_ _of-CIMuae If v.lolates Ari._ 19(1) (/) _of_ _the Constllu·_ _**'tion.**_ The •econd respondent sold her houso to the appellant. Tho first respondent filed a suit for possession 0>! the house on the ground t~at she !tad a right of prior purchase under s. IS _(fourthly)_ o! th.e Right.of Prior Purchase Act 1993, because, her house and the house m question had a common outer entrance within the meaning o! that clause. The suit was decreed. In appeal to tllis Court it was contended that: (I) On a proper constru~ion of the clause such an entrance would not give rise to a right o! pre-emption unless the owner claiming the right and the owner o! the house in question jointly owned the common outer entrance, and, · (2) the clause as mterpreted by the Courts below violated Art. 19(1) (f) of the Constitution and was therefore _ultra vlres._ HELD: (I) lbe clause provides that where the sale is of property hzving a common outer entrance with other properties, the right of prior purchase shall vest in the owners of such properties. There is nothing Ill the section to warrant the construction that such a right would vest only if the common outer entrance is jointly owned by the owners of such houses. [275H] (2) In the case of properties having a common entrance, the owners of the buildings would stand more or less in the pooition of C<Hharers and the right of pre-emption is sustainable as a reasonable restriction. [278E] _Bhau_ _Ram_ v. _Baiinath,_ [1962] Supp. 3 S.C.R. 724, followed. _Blshan Singh_ v. _Khazan Singh,_ [1959] S.C.R. 878, referred to. ##### CIVIL APPELLATE JURISDICTION : Civil Appeal No 524 of 1%~ . Appeal by special leave from the judgment and order dated ~mi;>er 2, 1964 of the Jammu and Kashmir High Court in C1vi1 First Appeal No. 7 of 1964. _B._ _C._ _Misra,_ _S._ _K. Mehta_ and _K._ _L. Mehta,_ for the appellant. _M._ C. _Setalvad_ and _Mohan_ _Behari_ _Lal,_ for respondent No. 1. The Judgment of the Court was delivered by . She~~ ~· Respendent No. 1 filed a suit in the Court of AdditiOnal Distnct Judge, Jammu for possession of the house in dispute, owned by the second respondent and sold by her to the appellant .. The cau~e of action pleaded was that respondent No. 1 ##### had a right of prior purchase under sectioa 1 S (fourthly) of the 274 SUPREME COURT REPORTS (1967] 3 S.C.R. Right of Prior Purchase Act, 11 of 1993 as her house and the A house in question had a common-outer entrance within the meaning of that clause. The trial court and the High Court on evidence held that the two houses had a common outer entrance and decreed the suit on respondent No. 1 paying the sate price-of Rs. 13,000/-. Hence this appeal by special leave. On behalf of the appellant, the vendee, Mr. Misra raised two B questions (I) that on a proper construction of s. 15 (fourthly) this was not a case of the two houses having a common outer entrance as that clause requires that such an _entrance must be owned jointly by the owners of such two houses, and (2) that section 15 (fourthly) is _ultra vires_ as it offends Art. 19 ( 1 )( f) and constitutes an un### reasonable restriction on the appellant's right to property. c The evidence shows that the entire property consisting of these two, together with other houses in the vicinity were owned at one time by witness Mohinder Nath and one Uttam Chand. Subsequently they sold some of them. To give to these houses access to the public road, called the Secretariat Road, they retained to themselves the ownership of the lane but granted a right of way D thereon to the said vendees. The lane ends as a blind alley where the two houses are situate. The plan produced during the trial shows that there is first a common outer entrance through which one enters into this lane from the Secretariat Road and at a distance of about 10 yards there is another such entrance marked 'common entrance' in the plan through which one enters into the alley and E on which the doors of these and certain other houses open. During the course of the trial, the trial Judge made- local inspection and recorded his inspection note which was admitted by the parties as correct. The inspection note is as follows : "On spot I find that there is a common outer entrance from the street to number of houses and then again about F 10 yards from the common outer entrance there is another common outer entrance of six houses and. there is a street which ends at the houses of the plaintiff and the suit house. At the end of the street the outer door of the plaiptiff and the suit house abut". I There is thus no rooin for dispute that the said passage leading to G the said Secretariat Road ·has two common entrances, one where it opens on to the said Road and the other at a distance of about 1 O yards therefrom. Apart from the inspection note, the parties led oral and documentary evidence on a consideration of which the trial Judge r~corded the following finding : "Both the parties !!gree with this note and they adm!t H ·that there is a common outer entrance from the Muni cipal Street to the plaintiff's house and the suit house. The difference between the plaintiff's case and the defen A B ## c D E p G ff PREM DULARI _v._ RAJ KUMAR.I _(Shelat,_ /.) 27.f! dant's case as made out by the counsel for the defendant is that the plaintiff's house and the defendant's h~use both open into the blank alley (kucha sarbasta) and mto the same alley opens some more houses. The plaintiff has not shown that the alley was the private property. of the owners of the houses which abut on that. Accordmg to the statement of Pt. Mohinder Nath that alley belongs to him and Pt. Uttam Chand. The owners of the houses which abut in that alley are entitled to right of wa¥ over it. As they are not owners of the alley so accordmg to the counsel for defendant No. 1 the plaintiff is not entitled to right of prior purchase on the basis of their having a common outer entrance .... The words used in the subclause are that the property sold and the property on the basis of which the right is exercised must have a common outer entrance. It is not essential that the street which leads from outer entrance to the houses of the plaintiff and the defendant should be owned by them''. The High Court also came to a similar finding and held that once it had been shown that the owners of the four houses abutting on that alley had exclusive right of way over it, it was enough to vest in them the right of pre-emption. The High Court also held that it was not necessary to prove that the common outer entrance wall" jointly owned by the owners of the houses. It is therefore clear that the question raised by the appellant was not that there was no common outer entrance to the two houses but that on a proper construction of s. 15 (fourthly), such a common outer entrance would not give rise to a right of prior purchase unless the owner claiming such a right and the owner of the house in question jointly own the common outer passage. The construction urged before the trial court and the High Court and rejected by both of them was once· again urged before us by Mr. Misra. The language of s. 1 S(fourthly) is plain. The section in unambiguous language provides that "the right of prior purchase .................... shall vest :_Fourthly_ : Where the sale is of property having a common outer entrance with other properties in the owners of such properties''. The section clearly says that where the sale is of property having a common outer ent~ance with other properties, the right of prior purc~ase. shall vest .m the owners of such properties. There is nothmg m the sectton to warrant the construction that such a right would vest only if the common outer entrance is jointly ?wned b¥ the owners of such houses. What the section requires 1s the existence of a common outer entrance which need not be owned by the person claiming the right of pre-emption. Whether LSSup.Cl/67-5 276 SUPRBMB COURT REPORTS [1967] 3 ~.C.R. there is such a common outer entrance which would attract the A provisions of s. 15(fourthly) would, therefore, depend upon the facts proved in eayh case. In the present case, both the trial court as also the High Court came to the conclusion from the evidence led by the parties that there does exist a common outer entrance for both the houses. Nothing has been shown by Mr. Misra from the evidence which would justify our disagreeing with that con· 8 clusion. Let us now turn to the decisions relied upon by Mr. Misra. In _Naba and others_ v. _Piara Mal and another('),_ the High Court of Punjab held that the entrance to the alley in question was not 'a common entrance from the st.reet' of the pre-emptor and the ### vendor within the meaning of s. J 3(1)(fifthly) of the Punjab Pre- c emption Act, 1905. The decision, however, turned on the facts and the situation of the alley which was said to be the common entrance to the houses in question. The High Court found that the evidence led by the plaintiff was insufficient to prove that the said alley was the private property of the owners of the houses opening on to it or that none except the owners thereof had free D access to or right of way over it. Nor was it shown that the houses at one time constituted one building and were subsequently subdivided and that the privacy of those houses was ensured by the blind alley as it ordinarily would be by the existence of a common entrance. In _Nanak Chand_ v. _Tek Chand and others(_ _[2]_ _),_ the right of pre-emption was claimed on the ground that there was a step leading to a _thara_ which formed part of the plaintiff's house and E the house in question. The High Court held that the step could not be called either a 'staircase' or a common entrance from the street within the meaning of s. J 3(1)(fifthly) of the Punjab Preemption Act, 1905. In _Asa Nand_ v. _Mahmud('),_ the dispute was between two parties claiming the right of pre-emption and the High Court rejected the defendant's claim on the ground that he F had not even the right of way over the compound and his use of it was only permissive. In _Ram Chand_ v. _Ram Jowa,va('),_ the Punjab Chief Court held that a public street leading from the main road to two houses cannot be considered a common entrance from the street and that to bring a case withins. 13(1) (fifthly) it would not be sufficient to prove that the street into which the house sold and the house of the person claiming pre-emption open- G ed was common to the two properties or that each had an entrance from that street. There must be an entrance from the street which is common to both properties. None of these decisions, in our view, can assist, for, each turned on its own facts which determined whether there was in fact a H common entran0P within the meaning of the Punjab Act. ### c D #### -· E F G H (1) (1912) 44 P.R. 159. (2) A.LR. 1920 Lah. 278. (2) A.l.R. 1927 Lah. 96. (4) [1912] I.C. 484. A B # c PREM DULARI _v._ RAJ KUMARI _(She/at,_ 1.) 277 In the instant case, there is the admitted evidence that the alley, at the blind end of which the two houses are situate, has a com· mon entrance which opens into a passage of about 10 yards where there is again another common entrance opening on to the public road. It is also not in dispute that the entire passage is owned by the original owners of the houses opening into this passage and that at the time of the sales of some of these houses they had granted a right of way over this passage to them so that the said houses may have access from the public road. The said passage, therefore, is the private property of the said Mo hinder Nath and Uttam Chand and the right of way over it is enjoyed only by the owners of the houses opening on to it. The appellant did not raise any dispute with regard to these facts. Indeed, the only question raised by her was that in order to constitute a common outer en· trance under s. 15(fourthly) such an entrance must be owned jointly by the owner of the house in question and the owner claiming pre-emption. As aforesaid, both the courts negatived the su~· gested construction and we think that they were right for. the plam words of the section do not justify such a construction. D The question next is whether s. 15(fourthly) providing for the right of prior purchase amounts to an unreasonable restriction. There can be no doubt that such a provision amounts to a restric· tion in the sense that a person purohasing such a property has to give way to the person claiming such a right. The nature of the E right is expressed in felicitous language by Mahmood J. in _Gov ind_ _Dayal_ v. _lnczyatullah(')._ The right of pre-emption, he observed: "is simply a right of substitution, entitling the pre-emptor, by means of a legal incident to which sale itself was subject, to stand in the shoes of the vendee in respect of all the rights and obligations aris· ing from the sale, under which he derived his title. It is, in effect, as if in a sale deed the vendee's name were rubbed out and pre· emptor's name inserted in its place". This statement was approv· ed by this Court in _Bishan Singh_ v. _Khazan_ _Singh('),_ and the Court summarising the incidents of the right observed : G H . '1'hat the ri~t of pre-emption is not a right to the thmg sold but a nght to the offer of a thing about to be sold. This right is called the primary or inherent right. The pre-emptor has a secondary right or a remedial right to follow the thing sold. It is a right of substitution but not o! re-purchase, _i.e.,_ the pre-emptor takes the entire bargain and steps into the shoes of the original vendee". That being the nature of the right, the next question is whether the restriction on the vendee's right of property created by s, IS (fourthly) can be said to be an unreasonable restriction. A similar - 'I) fli!8SJ I.LR. 7 All.175, 809. (2) - [19S9J S.C,R. 878. 278 SUPREME COURT REPORTS (1967} 3 S.C.R. question in regard to a similar provision in section 16 of the Punjab Pre-emption Act, 1913 arose in _Babu Ram_ v. _Baijnath_ ('). Section 16 of that Act provided for pre-emption on six grounds, the· first, third, fourth and sixth grounds 'being in favour of co-sharers, owners of common staircases, owners of common entrance from a street and owners of contig'JOUs property. The Court held that the first, third and fourth grounds of pre-emption did not offend Articles 19(1)(£) and 14 and were valid. The Court observed that the Jaw under the first ground providing for pre-emption by co-sharers imposed reasonable restriction in the interest of the general public on the right under Art. 19(1)(£). If an outsider was introduced as a co-sharer in a }:lroperty it would make common management extremely difficult and destroy the benefits of ownership in common. The advantage of excluding a stranger in the case of a. residential house was all the greater as it would avoid all .kinds of disputes. The third ground which applied in a case where the property sold had a staircase common with other properties stood practically on the same footing as that of co-sharers. Regarding properties having a common entrance from the street with other properties, the Court held that that ground was similar to the first and the third grounds. At page 7 41 dealing with the fourth ground, the Court observed that the buildings were in a common compound and perhaps were originally put up by members of one family or one group v.;ith a common private passage from the public street. In such a case the owners of the buildings would stand more or less in the position of co-sharers, though actually there might be no co-sharership in the house sold. Such a case would approximate to cases of ##### a common staircase and co-sharers and, therefore, the right of pre emption in such a case was sustainable. The reasoning employed in upholding the validity of the fourth ground in s. 16 of the Punjab Act would apply with equal force to the provisions of s. 15(fourthly) before us. Consequently, the contention that the impugned provision amounts to an unreasonable restriction cannot be sustained. Both the contentions raised by Mr. Misra fail. The appeal is dismissed with costs. V.P.S. _Appeal dismissed._ (1) [1962] 3 Supp. S.CR. 724. 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