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Tarak Das Ghosh v. Sunil Kumar Ghosh
Structured Summary of the Provided Opinion
Factual and Procedural Background
The disputed immovable property originally belonged to Bhujonga Bhushan Ghosh. On his death the property devolved upon his son, the present petitioner (Tarak Das Ghosh), his widow (Opposite Party No. 4) and his daughters (Opposite Parties Nos. 5 to 8) as Class I heirs under the Hindu Succession Act, 1956.
On March 2, 1973, Opposite Party No. 6 and Opposite Party No. 4 (on her own behalf and on behalf of her minor daughter Opposite Party No. 5) sold some land out of the said property to Opposite Party No. 3 for Rs. 2,000 by a Kobala (Ext. A). On the same date, the vendors sold land to Opposite Party No. 1 for Rs. 2,500 and to Opposite Party No. 2 for Rs. 2,500 by Kobalas (Exts. A1 and A2). Opposite Parties Nos. 1 to 3 were stranger-purchasers.
The petitioner filed an application under Section 22 of the Hindu Succession Act claiming his preferential right to acquire the interests sold. Opposite Parties Nos. 1 to 3 objected that the Section 22 application was barred by limitation, was bad for non-joinder of necessary parties and misjoinder of causes, and alleged that prior to the sales the vendors had proposed to sell to the petitioner but he had declined.
The learned Subordinate Judge dismissed the Miscellaneous Case holding the Section 22 application barred by limitation. On appeal the learned Additional District Judge held that the application was not barred by limitation but dismissed the appeal on the ground that no appeal lay from the Subordinate Judge's order. A Rule (petition) was thereafter directed against the order passed in that appeal, leading to the present opinion.
Legal Issues Presented
- Whether the right conferred by Section 22 of the Hindu Succession Act is a right of pre-emption (and, if so, whether Article 97 of the Limitation Act applies) or is merely a preferential right attracting residuary Article 137.
- Whether the application made under Section 22 (as was done before the trial court) was barred by limitation in the facts of this case.
- Whether an order made on an application under Section 22 is appealable.
- Whether the right conferred by Section 22 can be enforced by an application under that Section (or whether a regular suit is required for enforcement), and the limited scope of Section 22(2).
- Whether the present petition under Section 115 of the Code of Civil Procedure could be treated as an application against the Subordinate Judge's order and, if so, whether delay in filing such an application should be condoned (whether condonation of delay applies).
Arguments of the Parties
Petitioner's (Mr. S.P. Roychowdhury) Arguments
- The Court of Appeal was wrong to hold that no appeal lay from the Subordinate Judge's order made under Section 22 of the Hindu Succession Act.
- On the Court of Appeal's finding that the Section 22 application was not barred by limitation, the application should have been allowed.
- Alternatively, the present application under Section 115 of the Code of Civil Procedure could be treated as one made against the Subordinate Judge's order; and if delay arises in that context it should be condoned because the petitioner relied on his lawyer's advice in filing the appeal.
Opposite Parties' (Mr. Saktinath Mukherjee) Arguments
- The Subordinate Judge correctly held that the Section 22 application was barred by limitation (applying Article 97 of the Limitation Act).
- The Court of Appeal was correct in concluding that no appeal lay from the Subordinate Judge's order.
- The right conferred by Section 22 is a right of pre-emption (entitling heirs to purchase in preference to strangers), which triggers Article 97; accordingly the Section 22 application was time-barred.
- The Section 22 right cannot be enforced by merely filing an application under Section 22 except for the limited purpose under sub‑section (2) (i.e., determination of consideration); enforcement requires institution of a regular suit.
- If the present application under Section 115 of the Code is treated as an application against the Subordinate Judge's order, that application would in any event be barred by limitation (being made long after 90 days), and the court should not condone delay.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Sachindra Nath Banerjee v. Hari Bhusan Banerjee, 67 CWN 192 | Support for the view that an order made on an application under Section 22 is not appealable (order is not a decree and not one of the orders specifically made appealable under the Code of Civil Procedure). | The court relied on this authority to uphold the conclusion that no appeal lies from an order under Section 22, endorsing the Court of Appeal's reasoning on appealability. |
| Valliyll Sreedevi Amma v. Subhadra Devi, AIR 1976 Ker 19 | Support for the proposition that an application under Section 22 may not be maintainable for enforcement of the right, and that Section 22(2) is limited in scope (Kerala High Court's similar view). | The court cited this case to corroborate the conclusion that the original application under Section 22 before the trial court was not maintainable for enforcement of the right (other than for determination of consideration under sub‑section (2)). |
Court's Reasoning and Analysis
The court engaged in a textual and functional analysis of Section 22 of the Hindu Succession Act and of the Limitation Act provisions in issue.
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Characterisation of the right under Section 22:
The court examined the common-law definition of "right of pre-emption" (a right to purchase in preference to others; derived from "prae emptio") and concluded that the right conferred by Section 22 is a right of pre-emption. The court reasoned that when interests devolve on Class I heirs and one heir proposes to transfer his interest, the other heirs are given a preferential right to acquire that interest in exclusion of stranger-purchasers; thus the right is to purchase in preference to others and fits the definition of pre-emption.
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Application of the Limitation Act:
Because the right under Section 22 was characterised as a right of pre-emption, the court held that Article 97 of the Limitation Act applies. On that basis the court found that the Subordinate Judge was correct to apply Article 97 and to hold that the Section 22 application was barred by limitation in the circumstances of this case.
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Appealability of orders under Section 22:
The court accepted the contention that an order under Section 22 is not a decree and is therefore not appealable as such; it is not one of the categories of orders made appealable under the Code of Civil Procedure. The court relied on prior authority (Sachindra Nath Banerjee) in support of this conclusion and explicitly held that the Court of Appeal below was right in holding that no appeal would lie from a decision under Section 22.
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Maintainability and proper procedure to enforce the Section 22 right:
The court analysed Section 22(1) and Section 22(2). It held that sub-section (1) creates the preferential/pre‑emption right but does not prescribe a procedure for enforcement. Sub-section (2) permits an application to the court only for determination of the consideration where the parties do not agree. Therefore, the scope of an application under Section 22(2) is limited to fixing consideration and does not extend to enforcement of the pre-emption right itself. Where a statute creates a right but does not prescribe the enforcement procedure, the remedy must be sought under the general procedural law (i.e., by instituting a regular suit under the Code of Civil Procedure). The court cited other statutory examples where a special procedure is provided (S.24 West Bengal Non-Agricultural Tenancy Act, S.8 Land Reforms Act, 1955, and S.26 Bengal Tenancy Act, 1885) and observed that Section 22 lacks such a procedural mechanism. The court also noted that the Kerala High Court has adopted the same view in Valliyll Sreedevi Amma v. Subhadra Devi.
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Treatment of the present petition under Section 115 of the Code of Civil Procedure:
The petitioner argued that the present application under Section 115 might be treated as one made against the Subordinate Judge's order and that delay should be condoned. The court observed that even if the present application were so treated it would fail because the original Section 22 application was both time-barred and not maintainable. The court therefore found it unnecessary to decide whether the present petition should be treated as one against the Subordinate Judge's order or whether delay should be condoned; the court explicitly declined to decide those questions as the result would not affect the outcome given the earlier findings.
Holding and Implications
Holding:
Rule discharged.
Implications (direct effects on the parties and legal consequences stated in the opinion):
- The Section 22 application filed originally before the trial court was held to be barred by limitation under Article 97 of the Limitation Act because the right conferred by Section 22 is a right of pre-emption.
- The court held that an order made on an application under Section 22 is not a decree and is not appealable; the Court of Appeal was correct in concluding that no appeal lay from the Subordinate Judge's decision.
- The right conferred by Section 22 cannot be enforced by an application under Section 22 except for the narrow purpose provided by sub-section (2) (determination of consideration). Enforcement of the pre-emption right requires institution of a regular suit under the Code of Civil Procedure because Section 22 does not provide a special procedure for enforcement.
- The present petition (Rule) was discharged and no costs were ordered against any party ("without, however, any order as to costs").
The opinion did not purport to establish novel legal doctrine beyond applying existing principles (characterising the Section 22 right as a right of pre-emption; applying Article 97; and construing the procedural scope of Section 22). The court also declined to decide ancillary procedural questions about treatment under Section 115 CPC and condonation of delay because those questions were unnecessary to the outcome given the primary findings.
Rule discharged.
1. This Rule is directed against an order passed in an appeal from the decision of the learned Subordinate Judge, rendered in Misc. Case arising out of an application under S. 22 of the Hindu Succession Act, 1956 (hereinafter referred to as the said Act).
2. The said application under S. 22 of the said Act was made by the present petitioner on the following allegations:
3. The disputed property originally belonged to Bhujonga Bhushan Ghosh and on his death it devolved upon his son namely, Tarak Das Ghosh, the present petitioner, his widow, Opposite Party No. 4 and his daughters Opposite Parties Nos. 5 to 8. The said heirs of Bhujonga inherited the property in question as Class I heirs of his. Said Opposite Party No. 6 and said Opposite Party No. 4 on her own behalf and on behalf of her minor daughter Opposite Party No. 5 sold some land out of the said property for Rs. 2000/- the Opposite Party No. 3 on March 2, 1973 by a Kobala (Ext. A). The said vendors also sold on the same date some land out of the said property to Opposite Party No. 1 for Rs. 2500/- and some land out of the said property to Opposite Party No. 2 for Rs. 2500/- by Kobalas (Exts. A1 and A2) respectively. Said Opposite Parties No. 1 to 3 were stranger-purchasers. On these allegations the petitioner seeks to get the lands sold as aforesaid transferred to him in exercise of his preferential right under S. 22 of the said Act.
4. Opposite Parties Nos. 1 to 3 in their written objections contended that the application under S. 22 of the said Act was barred by limitation and was bad for non-joinder of the necessary parties and misjoinder of cause of action. It is their further case that before the aforesaid sales on March 2, 1973 the Opposite Parties Nos. 4 to 6 proposed to sell the said land to the petitioner but he expressed his reluctance to purchase the same.
5. The learned Subordinate Judge dismissed the said Misc. Case on the ground that the said application under S. 22 was barred by limitation.
6. On appeal the learned Additional District Judge found that the said application under S. 22 was not barred by limitation but dismissed the appeal on the ground that no appeal would he from the order passed by the learned Subosdinate Judge.
7. Mr. S.P Roychowdhury, the learned Advocate appearing in support of the Rule contended that the Court of Appeal below was wrong in holding that appeal did not he from the order passed by the learned Subordinate Judge under S. 22 of the said Act and that on the finding of the Court of Appeal below that the application was not barred by limitation, the application under S. 22 of the said Act should have been allowed.
8. Mr. Saktinath Mukherjee, appealing on behalf of the opposite party, on the other hand, argued that the learned Subordinate Judge was right in holding that the application under S. 22 of the said Act was barred by limitation and that the finding of the Court of Appeal below that no appeal lay from the judgment of the learned Subordinate Judge was also correct. According to the learned Subordinate Judge, Article 97 of the Limitation Act of 1963 was applicable to the present case while according to the Court of Appeal below it was Article 137 which applied to the present case. The learned Subordinate Judge takes the right conferred by S. 22 for a right of pre-emption while the Court of Appeal below differing from the learned Subordinate Judge takes the view that the right conferred by S. 22 was not a right of pre-emption but it was a preferential right to acquire properly in certain circumstances. If the right in question were a right of pre-emption the period of limitation would be determined by Article 97 of the Limitation Act, 1963 and if the right in question be of not a right of pre-emption Article 97 would not apply and in that event residuary Article 137 would apply.
9. It will appear from the definition of “right of pre-emption” as appearing in Sweet Law Dictionary that it is the right of purchasing property before or in preference to other persons. Further the word “pre-emption” is derived from “PRAE EMPTIO” and pre-emption is thus an act of buying before another. Having regard to all this I cannot but hold that the right which is conferred by S. 22 of the said Act is a right of pre-emption, for, here when one or several persons on whom an interest in any immovable property devolves on the death of a person dying intestate as heirs specified in Class I of the Schedule and when one of such heirs proposes to transfer his or her interest in the property, the other heirs are given a preferential right to acquire the interest proposed to be transferred. Here the right in question is one enabling a person to purchase the property in preference to others. When one of the heirs referred to above proposes to sell his interest in the property, which interest he got along with others as heirs belonging to Class I, the other heirs will have a right to purchase the same in exclusion to stranger-purchasers. The right is obviously, therefore, a right of pre-emption. In this view of the matter I ought to hold that the learned Subordinate Judge was right in applying Article 97 to the facts and circumstances of the case and in holding that the application under S. 22 was barred by limitation as it was made at a time beyond the period of limitation prescribed by Article 97 of the Limitation Act. Further I accept the contention of Mr. Mukherjee that the Court of Appeal below rightly held that no appeal would lie from a decision under S. 22 of the said Act. An order made on an application under S. 22 of the said Act is not a decree and is, therefore, not appealable as such. Further this is not one of the kind of orders which were specifically made appealable by the provisions of the Code of Civil Procedure. This is also the view expeessed in Sachindra Nath Banerjee v. Hari Bhusan Banerjee 67 CWN 192. In this view of the matter the Rule ought to be discharged.
10. Mr. Mukherjee, the learned Advocate appearing on behalf of the opposite party rightly contended that the right conferred by S. 22 of the said Act cannot be enforced by filing an application under the provisions of S. 22, for, the legislature while conferring that right did not lay dawn any special procedure for the enforcement of such right. The first two sub-sections of S. 22 are as fallows:
“(1) Where after the commencement of this Act, an interest in any immovable property of an intestate, or in any business carried on by him or by her whether solely or in conjunction with others, devolves upon two or more heirs specified in Class I of the Schedule and any one of such heirs proposes to transfer his or her interest in the property or business, the other heirs shall have a preferential right to acquire the interest proposed to be transferred.
(2) The consideration for which any interest in the property of the deceased may be transferred under this section shall, in the absence of any agreement between the parties, be determined by the Court on application being made to it in this behalf, and if any person proposing to acquire the interest is not willing to acquire it for the consideration so determined, such person shall be liable to pay all costs of or ineidental to the application.”
11. Thus, it will appear from provisions of S. 22 that by sub-s. (1) a right is conferred but there is nothing in that sub-section to indicate what procedure is to be followed in the matter of enforcement of that right sub-section (2) provides for cases where the parties fail to agree on the amount of consideration to be paid for the transfer of the property and it lays down the procedure for having the amount of consideration determined by the Court on an application being made to it. Thus under sub-s. (2) an application may be made to the Court but the scope of that application is quite limited. Such application may be made only for the purpose of determination of the amount of consideration and not for the purpose of enforcing the right conferred by sub-section (1). In cases where any statute creates a right without specifying the procedure for enforcement of such right, the person intending to enforce such right shall have to resort to the procedure contained in the Code of Civil Procedure for enforcement of his right. Accordingly, the right conferred by S. 22 can be enforced only by institution of a regular suit. It is significant to note in this connection that in cases where a right is created by a special Statute generally a procedure is also prescribed thereby for the enforcement of such right. By way of illustration mention may be made of provisions of S. 24 of the West Bengal Non-Agricultural Tenancy Act, 1949, S. 8 of the Land Reforms Act, 1955 and S. 26 of the Bengal Tenancy Act, 1885. In all these cases there specific provision made for the making of an application when the right is sought to be enforced. But as already pointed out sub-s. (1) of S. 22 creates a right without specifying any special made for enforcing the same. This view was also adopted by the Kerala High Court in Valliyll Sreedevi Amma v. Subhadra Devi AIR 1976 Ker 19. In the circumstances, it cannot but be held that the original application under S. 22 before the trial Court was not maintainable.
12. Mr. Roychowdhury further argued that even if the appeal before the Court of Appeal below was not maintainable the present application under S. 115 of the Code of Civil Procedure may be treated as one made against the order of the learned Subordinate Judge. In view of my findings aforesaid even if the present application under S. 115 of the code of Civil Procedure be treated as one made against the order passed by the learned Subordinate Judge the present application under S. 115 of the Code of Civil Procedure ought to fail, for, I have already held that the original application under S. 22 of the said Act was not only barred by limitation but also not maintainable. Futher so far as the present contention of Mr. Roychowdhury is concerned Mr. Mukherjee's argument is that if the present application under S. 115 of the Code of Civil Procedure is to be treated as one made against the order passed by the learned Subordinate Judge the present application is barred by limitation, for, it is made long after 90 days from the date of the order of the learned Subordinate Judge. Mr. Roychowdhury on the other hand argued that in view of the fact that in filing the appeal before the learned District Judge the petitioner depended on the advice of his lawyer and that in the circumstances of the case the delay should be condoned. The question whether the present application should be treated as one made against the order of the learned Subordinate Judge and if it is so treated, whether the delay in filing the present application under S. 115 of the Code of Civil Procedure should be cordoned need not be decided in this case as in view of the findings already arrived at by me in the foregoing paragraphs this will be an excercise in ???.
13. As all the questions raised by Mr. Roychowdhury fail, the Rule ought to be discharged.
14. The Rule is made accordingly discharged without, however, any order as to costs.
Rule discharged.
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