Right of Pre-emption in Rajasthan: Supreme Court Interprets Pre-emption Law
The case of Suresh Chand & Anr. vs. Suresh Chander (D) Thr LRs & Ors. is a significant ruling regarding the right of pre-emption under the Rajasthan Pre-emption Act, 1966. The Supreme Court clarified the conditions under which a co-owner can claim pre-emption rights over a property transaction involving another co-owner. The judgment reaffirmed that a person with a superior right of pre-emption has precedence over one with an equal or inferior right.
Background of the Case
The dispute arose when a property in Rajasthan was sold by one co-owner to a third party, leading another co-owner to file a suit for pre-emption, claiming a preferential right to purchase the property. The matter was contested on whether the buyer also had a right of pre-emption, which could override the plaintiff’s claim.
The case was initially decided by the Trial Court, which ruled in favor of the plaintiff. The first appellate court upheld the decision, and the High Court dismissed the second appeal, leading the defendants to approach the Supreme Court.
Arguments of the Petitioner (Suresh Chand & Anr.)
- The petitioners argued that the buyer, Devicharan, had an existing interest in the property, as he already had a right of access through the disputed courtyard.
- They contended that under Section 5(1)(c) of the Rajasthan Pre-emption Act, the right of pre-emption does not accrue when the buyer has an equal or inferior right.
- They claimed that the lower courts failed to consider that the plaintiff had admitted the buyer’s right to access the common courtyard in previous litigation.
Arguments of the Respondent (Suresh Chander (D) Thr LRs & Ors.)
- The respondents asserted that the plaintiff had a superior right of pre-emption as the brother of the seller, which should prevail over any right claimed by the buyer.
- They argued that the Rajasthan Pre-emption Act prioritizes the nearest co-heir when multiple persons claim pre-emption rights.
- They maintained that the sale transaction deprived them of the use of the common courtyard, affecting their property rights.
Supreme Court’s Judgment
A bench comprising Justice Dhananjaya Y. Chandrachud and Justice Ajay Rastogi dismissed the appeal, affirming the lower courts’ rulings. The Court made the following key observations:
“The right of pre-emption is a preferential right to acquire the property by substituting the original vendee. The transfer or sale of an immovable property is a condition precedent to the enforceability of the right.”
The Court emphasized that under Section 6(3) of the Rajasthan Pre-emption Act, a person with a closer relationship to the seller has a superior right. Since the plaintiff was the brother of the seller, he had a higher claim than the buyer, whose right was based on access to a common amenity.
“Where a right of pre-emption enures to the benefit of a person under the provisions of Section 6(1)(ii), a consequence emanates in terms of Section 5(1)(c). The effect of Section 5(1)(c) is that a right of pre-emption does not accrue, on a transfer to any person mentioned in Section 6, to any person who has an equal or inferior right of pre-emption.”
The Court also rejected the argument that the buyer’s existing access rights nullified the plaintiff’s pre-emption claim:
“Though the right is recognized by law, yet it can be rendered imperfect by the vendor when he transfers the property to another person who also has a superior right to the plaintiff pre-emptor.”
Key Takeaways from the Judgment
- Right of pre-emption depends on hierarchy: A person with a closer familial or legal relationship to the seller has a superior claim over a buyer with an equal or lesser right.
- Transfer is a condition for pre-emption: The right of pre-emption is triggered only when a sale transaction occurs.
- Pre-existing property rights do not override superior pre-emption rights: A buyer who already has an interest in the property cannot defeat a claim by a person with a superior right.
- Legislative clarity on pre-emption rights: The ruling provides a clear interpretation of Sections 5 and 6 of the Rajasthan Pre-emption Act.
Impact of the Judgment
This ruling has significant implications for property transactions in Rajasthan. It ensures that:
- Persons with superior pre-emption rights are not unfairly deprived of their claims.
- Sale transactions must comply with pre-emption laws to avoid legal challenges.
- Courts will uphold the hierarchy of pre-emption rights based on familial and ownership considerations.
The judgment will serve as a guiding precedent for future disputes related to pre-emption rights, providing clarity on how courts should interpret conflicting claims.
Conclusion
The Supreme Court’s decision in Suresh Chand & Anr. vs. Suresh Chander (D) Thr LRs & Ors. reinforces the legal principles governing the right of pre-emption under the Rajasthan Pre-emption Act, 1966. By upholding the plaintiff’s superior right, the ruling ensures that pre-emption laws are applied consistently and fairly. This judgment will have a lasting impact on property transactions and legal interpretations of pre-emption rights.
Petitioner Name: Suresh Chand & Anr..Respondent Name: Suresh Chander (D) Thr LRs & Ors..Judgment By: Justice Dhananjaya Y. Chandrachud, Justice Ajay Rastogi.Place Of Incident: Rajasthan.Judgment Date: 19-02-2020.
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