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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • sections 6 and 7 of the Agra Pre-emption Act.
  • section 14 of the Agra Pre-emption Act,
  • provisions of the Agra Pre-emption Act
  • section 3 of the Agra Pre-emption Act
  • Pre-emption Act of 1922. This Act
  • SECTION 9 A OUDH LAWS ACT
  • Pre-emption Act. Section 16
  • Agra Pre-emption Act,
  • Laws Act section 10
  • Pre-emption Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • sections 6 and 7 of the Agra Pre-emption Act.
  • section 14 of the Agra Pre-emption Act,
  • provisions of the Agra Pre-emption Act
  • section 3 of the Agra Pre-emption Act
  • Pre-emption Act of 1922. This Act
  • SECTION 9 A OUDH LAWS ACT
  • Pre-emption Act. Section 16
  • Agra Pre-emption Act,
  • Laws Act section 10
  • Pre-emption Act
Smart Summary

Court Opinion Summary (Sulaiman, C.J. and Bennet, J.)

Factual and Procedural Background

This is an appeal by the plaintiff arising from a suit for pre-emption. The plaintiff's husband, Amindad Khan, owned a half share in three villages and was the owner of two houses situated in one of those villages. On 15 June 1930 the three sisters of the plaintiff's husband executed a sale deed in respect of their shares in the zamindari properties and in the two houses in favour of the defendants, who were admitted strangers.

Prior to institution of the suit the plaintiff executed a deed of gift concerning the house properties; she alleged that the gift was invalid and ineffective because it had not been given effect. She sued for pre-emption of the entire property conveyed by the sale deed, offering to pay the consideration (while contending the consideration in the sale had been inflated).

The defendants pleaded that the deed of gift was valid and that the plaintiff had thereby lost her right of pre-emption in respect of the house properties; they further contended that as a consequence she had lost her right to pre-empt the zamindari properties as well. Both courts below dismissed the plaintiff's claim. The lower courts found (a) that the deed of gift in respect of the houses was valid and not fictitious or ineffective, and (b) that the plaintiff failed to perform necessary demands under Muhammadan law. They also found that the vendee was on equal footing with the pre-emptor as regards shares in two of the villages, leaving the appeal confined to the plaintiff's claim in respect of the share in village Kote Mustaqil.

The single question left for this Court's consideration was whether the plaintiff's failure to pre-empt the two houses (or omission to include them) necessarily defeated her claim to pre-empt the zamindari share in village Kote Mustaqil.

Legal Issues Presented

  1. Whether, as a consequence of the plaintiff's failure or omission to pre-empt the two houses, her claim to pre-empt the zamindari property (the share in village Kote Mustaqil) must also fail.
  2. Whether a right to pre-empt a house under the Muhammadan law can be treated as a right "to which a pre-emptor is entitled under" the Agra Pre-emption Act (i.e., whether such a Muhammadan-law right is a right "under the Act" for the purposes of section 16 and related provisions).

Arguments of the Parties

Appellant (Plaintiff)

  • The plaintiff alleged the deed of gift executed by her (concerning the houses) was invalid and ineffective, and therefore she retained a right to pre-empt the houses.
  • She offered to pay the consideration for the property she sought to pre-empt and claimed that the sale consideration had been inflated by the vendee.

Respondents (Defendants)

  • The defendants contended that the deed of gift in respect of the houses was valid and effective, and that the plaintiff had therefore lost her right of pre-emption in respect of the houses.
  • They further argued that because the plaintiff had lost the right to pre-empt the houses, she thereby also lost her right to pre-empt the zamindari shares (i.e., her claim to pre-empt the remaining property should fail).
  • The respondents relied strongly on a recent Privy Council decision (Birendra Bikram Singh v. Brij Mohan Pande) under the Oudh Laws Act to support the contention that a pre-emptor cannot be allowed to pre-empt part of a larger property sold as one whole.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Oomur Khan v. Moorad Khan Quoted Fatawa Alamgiri: consensus of the three Imams that under Muhammadan law, where several properties are sold, a pre-emptor entitled to pre-empt some portions is entitled to pre-empt that portion only on payment of a proportionate price. Used to support the proposition that under Muhammadan law a pre-emptor may claim a proportionate share and must pay a proportionate price for the portion pre-empted.
Salig Ram v. Debi Parshad Applied the rule of apportionment to customary pre-emption: permitted pre-emption as to one thok while excluding another and disallowed pre-emption of other items (bungalow, garden, factory). Relied upon to show that customary law and this Court's practice permit apportionment and separate valuation of sold properties so that pre-emption can be enforced for the pre-emptible portion only.
Durga Prasad v. Munsi Explained the general rule that a suit for pre-emption must include the whole of property conveyed by one bargain to a stranger, but recognised the exception where the sale includes both pre-emptible and non-pre-emptible property. Invoked to confirm the long-established exception allowing a pre-emptor to sue only for that portion subject to pre-emption when the same deed sells other property not subject to pre-emption.
Mohindra Man Singh v. Maharaj Singh Held that the pre-emptor must claim pre-emption in respect of the whole part of the property to which he has a right; if the vendee included properties not subject to pre-emption, the pre-emptor may exclude them but must claim the entirety of the pre-emptible part. Also cited for interpretation of "land" in section 4(3). Cited to reinforce the obligation on the pre-emptor to claim the entire portion of property he is entitled to and to support the conclusion that the houses in this case were not "land" within the meaning of the Agra Pre-emption Act.
Abdul Khan v. Shakira Bibi Under the pre-amendment wording of section 16, held that failure to perform necessary demands for one item (house) meant the claim to pre-empt other property also failed; included an obiter that enforcement under Muhammadan law might be considered "under the Act." Referred to as an illustration of the difficulty under the old wording of section 16; the Court notes that an obiter in this case was later criticized and that legislative amendment of section 16 addressed the problem.
Amjad Ali Khan v. Saadat Begam Disapproved the obiter in Abdul Khan; held that failure to exercise Muhammadan-law rights in respect of a house in a city where the Act did not apply did not deprive the plaintiff of a right to pre-empt property in a village to which the Act applied. Used to show judicial criticism of earlier reasoning and to support the view that rights under Muhammadan law are not always to be treated as rights "under the Act."
Birendra Bikram Singh v. Brij Mohan Pande Privy Council decision under the Oudh Laws Act holding that an under-proprietor with an interest in one village of a mahal made up of many villages could not pre-empt one part of the mahal sold as one whole (decision dependent on the language of the Oudh Laws Act). The Court considered and distinguished this decision on grounds that the Oudh Laws Act differs from the Agra Pre-emption Act (notably in mandatory notice provisions and absence of a section analogous to section 16). The judgment was not accepted as overruling the long line of provincial decisions under the Agra Pre-emption Act/customary law.

Court's Reasoning and Analysis

The Court began by acknowledging the general principle that a pre-emptor cannot pick and choose and pre-empt only parts of the property he finds convenient; partial pre-emption is ordinarily disallowed. However, the Court emphasised the well-established exception: where a sale deed includes both property that is subject to pre-emption and other property as to which the pre-emptor has no right, the inclusion of the non-pre-emptible property in the sale does not defeat the pre-emptor's right as to the pre-emptible portion. The longstanding practice of the provincial courts had been to allow apportionment of the sale price and permit pre-emption of the pre-emptible portion alone.

The Court examined the Agra Pre-emption Act, focusing on section 11 (conferring a right of pre-emption) and section 16. It observed that section 16, particularly after amendment to add the words "under the Act," embodies a comprehensive prohibition on suits for enforcing pre-emption in respect of a portion only of the property which the plaintiff is entitled to pre-empt under the Act. The Court interpreted the effect of the added words "under the Act" to mean that a pre-emptor is required to include in his suit all property which he is entitled to pre-empt under the Agra Pre-emption Act; by contrast, property as to which a pre-emptor has a right only under other laws or customs (for example, Muhammadan law) but not under the Act need not be included and the omission of such property will not be fatal to the suit as regards property that is pre-emptible under the Act.

The Court addressed the respondents' contention that the proviso to section 3 made Muhammadan-law pre-emption rights "rights under the Act." The Court rejected that contention: it explained that the substantive portion of section 3 takes away customary and other pre-emption rights in areas to which the Act applies, but the proviso preserves the Muhammadan law of pre-emption in the special circumstance where there is no right under section 5 and both vendor and pre-emptor are Muhammadans. The Court held that the proviso left those Muhammadan-law rights intact but did not convert them into rights "under the Act" — they remain rights preserved outside the operative scope of the Act for the limited class described by the proviso.

The Court considered the Privy Council decision in Birendra Bikram Singh v. Brij Mohan Pande (under the Oudh Laws Act) relied upon by respondents, but distinguished it on statutory grounds: the Oudh Laws Act contains different procedural and substantive provisions (notably mandatory notice requirements and absence of a provision like section 16), and therefore the Privy Council's conclusion under that Act did not dictate the outcome under the Agra Pre-emption Act or the established provincial customary law.

Applying the foregoing analysis to the facts, the Court concluded that because the plaintiff was not entitled to pre-empt the houses under the Agra Pre-emption Act (and the houses were not "land" within the meaning of the Act per the Court's reliance on Mohindra Man Singh), the plaintiff's failure or omission to pre-empt the houses was not fatal to her claim to pre-empt the share in village Kote Mustaqil which was an interest falling within the Agra Pre-emption Act. The Court therefore allowed the appeal as regards Kote Mustaqil and remitted the matter to the lower court for determination of the proportionate price of the share to be pre-empted.

Holding and Implications

Holding: The Court allowed the plaintiff's appeal and decreed her claim for pre-emption of the share in village Kote Mustaqil on payment of the proportionate price.

Implications and direct consequences:

  • The plaintiff's omission or disqualification in respect of pre-empting the two houses (which were not land within the meaning of the Agra Pre-emption Act) does not defeat her right to pre-empt the portion of zamindari property in Kote Mustaqil that she is entitled to under the Agra Pre-emption Act.
  • The appeal was allowed and the Court remitted the following issue to the court below for determination: "What was the proportionate price of the share pre-empted in village Kote Mustaqil?"
  • The parties were permitted to produce fresh evidence if necessary. The lower court was directed to return its finding within three months from the date of the judgment, with the usual ten days allowed for objections.
  • The Court's reasoning clarifies that post-amendment language of section 16 ("under the Act") limits the duty to include property in a pre-emption suit to that property which the pre-emptor is entitled to pre-empt under the Agra Pre-emption Act; rights preserved under the Muhammadan law by the proviso to section 3 are not thereby converted into rights "under the Act."

No broader declaratory relief or a formal statement that a new precedent was laid down was expressed beyond the holdings and directions summarised above.

    Zainab Bibi v. Umar Hayat Khan

    Sulaiman, C.J and Bennet, J.:— This is a plaintiff's appeal arising out or a suit for pre-emption. The plaintiff's husband, Amindad Khan, was the owner of a half share in three villages, and the owner of two houses which were situated in one of the three villages. The plaintiff on his death claimed to be entitled to a one-eighth share in the zamindari properties and one-fourth share in the two houses. On the 15th of June, 1930, the three sisters of the plaintiff's husband executed a sale deed of their shares in the zamindari properties and in the two houses in favour of the defendants, who were admittedly strangers. Before the institution of the suit the plaintiff executed a deed of gift in respect of the house properties, but she alleged that gift was invalid and ineffective as it had not been given effect to. She brought a suit for pre-emption of the entire property sold under the sale deed and offered to pay the entire consideration which might really have been paid by the vendee, but put forward the case that the amount of sale consideration had been inflated. The defendants took the plea that the deed of gift was valid and the plaintiff had lost her right of pre-emption in respect of the house properties; and they further pleaded that she had in consequence lost her right to pre-empt even the zamindari properties. Both the courts below have dismissed the claim. So far as the plaintiff's claim to preempt the houses under the Muhammadan law is concerned it must fail. The courts below have found that she had parted with her interest in the house properties validly under the deed of gift, and that the deed of gift was not fictitious and ineffective. There is a further finding that she has failed to perform the necessary demands as required by the Muhammadan law. It has, however, been found that the vendee is on an equal footing with the pre-emptor as regards the shares in two villages, and that the plaintiff has no preference against him in those two villages. The appeal is accordingly confined to village Kote Mustaqil.

    The only question which remains for consideration is whether in consequence of the failure of the plaintiff's claim to pre-empt the shares in the two houses her claim to pre-empt the zamindari property in Kote Mustaqil as well must fail.

    No doubt it is a well settled principle that a pre-emptor cannot be allowed to pick and choose and preempt only as much property as he considers convenient to get. In that sense partial pre-emption cannot be allowed. On the other hand, it has been equally well settled in this Court that the mere fact that the vendee has included in the sale deed some property as to which the pre-emptor has no right of pre-emption at all, would not deprive the pre-emptor of his right to pre-empt that property as to which he has a right. There has so far been no conflict of opinion on this point in this Court, and thousands of cases have been decided in which the pre-emptor has been allowed to claim pre-emption in respect of that portion to which he is entitled, leaving out the portion to which he was not entitled, although the same was included in the sale deed. In such cases an apportionment of the price has been allowed, and in many cases issues have been sent down to the court below for making such an apportionment. So far as the Muhammadan 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 pre-empt 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 Oomur Khan v. Moorad Khan(1).

    The same rule of law was applied to a customary right of pre-emption by a Full Bench of this Court in Salig Ram v. Debi Parshad(2), where although the sale deed had included shares in two thoks together with a bungalow, garden and factory, the claim for pre-emption was allowed in respect of a share in one thok to the exclusion of another thok, and the claim for pre-empting the bungalow, garden and factory was also disallowed. The court directed that it was necessary to ascertain separately the value of the several properties sold. The same rule was laid down in Durga Prasad v. Munsi(3), where it was pointed out that there was a general rule that “every suit for pre-emption must include the whole of the property, subject to the plaintiff's pre-emption, conveyed by one bargain of sale to one stranger; and that a suit by a plaintiff pre-emptor, which does not include within its scope the whole of such pre-emptional property, is unmaintainable being inconsistent with the mature and essence of the pre-emptive right.” It was pointed out (at page 426) that there was a clear exception in the case where “under one and the same deed of sale, property subject to pre-emption is sold along with other property not subject to the right, and the plaintiff pre-emptor cannot, ex necessitate rei, sue for the whole property conveyed by the sale, but only for so much as is subject to his pre-emptive right.” The learned counsel for the respondent concedes that this rule has been invariably followed in numerous cases by this Court. We may only refer to a recent case, Mohindra Man Singh v. Maharaj Singh, where it was held (at page 76) that “it is the duty of the pre-emptor to claim pre-emption in respect of the whole of that part of the property sold as to which he has a right, failing which his whole claim must fail. If the vendee has included properties in which the plaintiff has no right to pre-empt, the pre-emptor is entitled to exclude them, but he must nevertheless claim pre-emption in respect of the whole of that part with regard to which he has the right.”

    The origin of the customary law in this province obviously was the rules of Muhammadan law which were found prevalent in these parts, and the custom grew up somewhat on those lines. Apparently the idea was that if a pre-emptor has a right to pre-empt certain properties, the vendee cannot by taking a sale deed of that property along with other property, whether movable or immovable, deprive the pre-emptor of his right to preempt that property as to which he has a right. If this were not the law, then a vendee by taking a sale deed of pre-emptible property along with any movable property would prevent pre-emption altogether. Similarly the vendee may include shares in some villages in which he is a co-sharer and therefore on the same footing with the pre-emptor. In such a case the integrity of the bargain will have to be broken and the claim decreed for the pre-emptible part only. Of course, in such cases the proportionate price has to be ascertained and paid. This position could not be disputed prior to the coming into force of the Pre-emption Act of 1922. This Act has, to a great extent, consolidated the old law, though undoubtedly in some particulars it has amended the old law also. The question is whether under the provisions of the new Act a different rule should now prevail.

    Prima facie the Pre-emption Act is quite comprehensive and exhaustive, and ordinarily it would not be necessary to import into it general principles which are not embodied therein. Section 11 confers a right of preemption on sale or foreclosure of any proprietary interest in land to persons mentioned in section 12. If that section stood by itself then a right of pre-emption would accrue in respect of the sale of all and every item of land sold; but section 16 lays down certain restrictions and in essence embodies the principle of the prevention of partial pre-emption. The latter portion of it says “no suit shall lie for enforcing a right of pre-emption in respect of a portion only of the property which the plaintiff is entitled to pre-empt under the Act”. A pre-emptor is, therefore, bound to enforce his right of pre-emption in respect of the entire property which he is entitled to pre-empt under the Pre-emption Act. Section 16 contains a prohibition which must be understood to be quite comprehensive, and any case which is not covered by this prohibition should be considered to be permissible. It would follow that where there is property which the pre-emptor is not entitled to pre-empt under the Act, he can leave it out and his suit would not fail by reason of his having left out that property. It is only incumbent upon him to include in his claim all such property as he is entitled to pre-empt under the Act.

    Before 1959 the words “under the Act” were no part of this section. The language then was far more ambiguous, and it was somewhat doubtful whether a pre-emptor was not bound to include in his claim all properties as to which he had a right of pre-emption, whether under the Agra Pre-emption Act or under the Muhammadan law or any contract or custom. Abdul Khan v. Shakira Bibi was a case where the pre-emptor had, on account of his failure to perform the necessary demands, disqualified himself from pre-empting the share in a certain house, and it was held that his claim to pre-empt the zamindari property also must fail in view of the provisions of section 16 as it then stood. No doubt at page 351 there was an observation that even if words like “in accordance with the provisions of the Act” or “pre-empt under the Act” were taken to be understood at the end of section 16 it would make no difference, because the right under the Muhammadan law was maintained under section 5 of the Act and therefore it could be said in one sense that the preemption of the house under the Muhammadan law was “in accordance with the provisions of section 3”. The observation was in the nature of an obiter dictum and was stated to be incorrect in Amjad Ali Khan v. Saadat Begam. In that case also the question of the applicability of section 16, as it stood before the amendment, i.e, before the addition of the words “under the Act”, arose. Referring to the case of Abdul Khan v. Shakira Bibi, the Bench observed (at page 526): “At another place in the judgment it was remarked that the enforcement of such a right under the Muhammadan law would also be a pre-emption under the Act. This last expression was certainly inaccurate, but that was a case to which the Act in its entirety was applicable.” In the latter case the house as to which the plaintiff had lost his right was situated in the city of Moradabad, and it was held that by the mere fact that the plaintiff did not properly exercise his right under the Muhammadan law in respect of the house in the city of Moradabad, to which the Act was not applicable, he had not lost his right to pre-empt the property in the village to which the Act applied. The great hardship which might arise was pointed out by the Bench in Abdul Khan's case at pages 350-1. Soon after the difficulty had been pointed out the legislature amended section 16 and added the words “under the Act”. The additional words must have a special significance. The obvious intention is that a pre-emptor is no longer compelled to include in his claim properties to which he may be entitled under some law or custom outside the Agra Pre-emption Act, and all that is now necessary is that he must bring his suit for pre-emption in respect of the property which he is entitled to pre-empt under the Agra Pre-emption Act.

    The question is whether a right to pre-empt a house under the Muhammadan law can be said to be a right to which a pre-emptor is entitled under the Act. It has been strongly contended on behalf of the respondents that the proviso to section 3 of the Agra Pre-emption Act makes it clear that the Muhammadan law has been made applicable by this Act to certain class of cases, and that accordingly when such a right is exercised the right must be deemed to be exercised under the Agra Pre-emption Act. We are unable to accept this contention. If section 3 had not been there then the right of pre-emption under the Muhammadan law, or for the matter of that, under the customary law, or under special contracts, would have remained intact. The substantive portion of section 3 takes away all such right in respect of interest in land in any area to which this Act applies; but the abolition of customary and other rights of this kind is subject to the proviso that where there is no right of preemption under section 5 of the Act the provisions of Muhammadan law of pre-emption shall not be affected in case the vendor and pre-emptor are both Muhammadans. It follows that the Muhammadan law has not been taken away by section 3 in the case where there is no right of pre-emption under section 5 and the vendor and the pre-emptor are both Muhammadans. The proviso must be read as part and parcel of section 3 and the effect of the whole section is that in that particular case the Muhammadan law has remained untouched and has not been abrogated. The position is similar to the reservation in regard to other rights of pre-emption under special laws mentioned in sections 6 and 7 of the Agra Pre-emption Act. The right of pre-emption under the Act mentioned therein has been preserved and not affected by the Agra Pre-emption Act. When such a right is enforced it cannot be said, that the right is being enforced under the Agra Pre-emption Act, and not under those enactments. It is, therefore, difficult to hold that, a right of pre-emption in respect of a house exercised under the Muhammadan law can be said to be a right to which the plaintiff is entitled under the Pre-emption Act.

    The learned counsel for the respondents has relied very strongly on the recent pronouncement of their Lordships of the Privy Council in Birendra Bikram Singh v. Brij Mohan Pande. That was a case under the Oudh Laws Act of 1876. There a single mahal of taluqdari consisted of 163 villages and was sold as one property for a large sum of Rs. 5,50,000. The pre-emptor was not a co-sharer or a superior proprietor in any of these villages at all; but he was an under-proprietor in one out of the 163 villages, and claimed a right of pre-emption under section 9 of the Oudh Laws Act on the ground that he was a member of the village community and came within the third class specified therein. Two questions arose for consideration. The first was whether the under-proprietor who had an interest in one village only had a right to pre-empt that village; and the second was whether he could come within the meaning of the words “member of the village community”. Their Lordships quoted the relevant sections 6 to 13 in extenso in order to consider whether under the provisions of that special enactment the plaintiff's claim could be decreed. Now under the Oudh Laws Act section 10 made it obligatory on the vendor to give notice to the persons concerned of the price at which he is willing to sell the property, and also made it necessary that such notice should be given through the court within the local limits of whose jurisdiction the property or any part thereof was situated. Under section 14 of the Agra Pre-emption Act, however, sending of the notice is by no means obligatory but is purely discretionary. It is also a fact that in the Oudh Laws Act their is no special section like section 16 embodying the rule of partial pre-emption. On an examination of the provisions of that Act their Lordships, overruling the cases of the Oudh court, came to the conclusion that an under-proprietor who had an interest in one village only which was a part of a whole mahal of 163 villages which had been sold as one property had no right to pre-empt one part of the entire mahal, as there was no duty on the vendor to name any properties other than the full price of Rs. 5,50,000, which, of course, the under-proprietor would not be prepared to pay for one village only. We are not concerned with the other question which was decided in that case. Obviously that case was decided on the language of the sections in the Oudh Laws Act, and in Oudh the right of pre-emption was purely a creature of statute. The provisions of the Agra Pre-emption Act embody the previous customary law of this province and are not identical with those of the Oudh Laws Act; in particular, section 16 has been specially enacted, which prima facie is intended to be comprehensive and to include the whole rule of partial pre-emption. We have to interpret that section in this case. It, therefore, seems to us that the ruling of the Privy Council under the Oudh Laws Act cannot be said to have overrated the long series of decisions of this Court, arising under the customary law, or under the Agra Pre-emption Act.

    We are accordingly of the opinion that if the pre-emptor was not entitled to pre-empt the houses under the Agra Pre-emption Act, then, neither the omission to pre-empt them nor her disqualification in pre-empting the same is fatal to her claim as regards the properties which she is entitled to pre-empt under the Agra Pre-emption Act.

    As stated above, the plaintiff's husband was entitled to a half share in the site and the entire houses standing thereon. It is very difficult to say that the two houses should be considered to be attached to, or permanently fastened to, anything attached to the half share in the land which was sold. If the husband had been the owner of the entire site on which the houses stood, the position would have been different. Following the interpretation of the definition of the word “land” in section 4(3) as laid down in Mohindra Man Singh v. Maharaj Singh, we must hold that the houses were not land within the meaning of the Agra Pre-emption Act.

    Accordingly we allow the appeal and decree the plaintiff's claim for pre-emption of the share in Kote Mustaqil on payment of the proportionate price. We, therefore, send down the following issue to the court below for determination: What was the proportionate price of the share pre-empted in village Kote Mustaqil? The parties will be at liberty to produce fresh evidence, if necessary. The finding should be returned within three months from this date. The usual ten days will be allowed for objections.

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    Zainab Bibi v. Umar Hayat Khan
    (Jan 31, 1936)