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Moti Bai And Others v. Kand Kari Channaya .
Structured Summary of the Opinion (Hyderabad High Court)
Factual and Procedural Background
Three separate pre-emption suits pending in a City Civil Court were referred to this Court under Section 113 CPC for determination of a common constitutional question. The constitutional question was whether the right of pre-emption, as enforced by Courts in the State prior to the commencement of the Constitution, is restrictive of the fundamental right of acquiring, holding and disposing of property and therefore void under Clause (1) of Article 13 after 25-1-1950.
The factual matrix of the three suits (as pleaded in the opinion) is:
- Tulsibai seeks to pre-empt land sold on 9-2-1950 by one Hulliah (defendant No. 2) to Irya (defendant No. 1).
- Motibai instituted a suit relating to a house sold on 27-1-1951 by one Mohd. Sultan to Chittia (the two defendants to her suit).
- Govardhan Das filed a plaint alleging that on 30-5-1951 Kamala Bai (defendant No. 2) conveyed for Rs. 3,000 the house adjacent to his shops and he claimed entitlement to purchase it for that amount.
A common plea raised by defendants in all three cases was that, although the Mohammedan Law of pre-emption had been regarded as the law of the land before the Constitution, after the Constitution such law cannot be made applicable to those who do not profess the religion; therefore, the suits should be dismissed.
Procedurally, the City Civil Court referred the question under Section 113 CPC to a Division Bench; the Division Bench referred it to a Full Bench. The Bench considered the appropriate procedure under Article 228 but proceeded to decide the constitutional question collectively, treating the Motibai case as representative and covering the other two suits.
Legal Issues Presented
- Whether the right of pre-emption, as enforced in the State prior to the Constitution, is restrictive of the fundamental right of acquiring, holding and disposing of property (Article 19(1)(f)) and therefore void under Clause (1) of Article 13 after 25-1-1950.
- Whether the right of pre-emption in these cases was enforced before the Constitution on the basis of Mohammedan Law being the law of the State (i.e., whether it was an "existing law").
- If the pre-emptive right restricts Article 19(1)(f), whether it is saved by Clause (5) of Article 19 as an "existing law" imposing a reasonable restriction in the interest of the general public or protection of scheduled tribes (and, specifically, whether a customary pre-emption right qualifies as an "existing law" under Article 366(10) / Article 13).
- Whether a customary pre-emption right (as distinct from a statutory pre-emption right) can be regarded as a "law" or "law in force" for the purposes of Article 13 and thus capable of being saved from invalidation.
Arguments of the Parties
Defendants' Arguments
- Before the Constitution the Mohammedan Law of pre-emption was regarded in the State as the law of the land; after the Constitution such law cannot be applied to persons who are not Mohammedans, and therefore the pre-emption suits by non-Mohammedans should be dismissed.
Plaintiffs' Arguments
The opinion does not contain a detailed account of the plaintiffs' legal arguments beyond their claiming pre-emptive rights in each suit. Specific pleading details or broader legal submissions by the plaintiffs are not set out in the provided opinion.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Gangaram v. Hari Bhav, 10 Deccan LR 159 (A) | Held that Mohammedan Law was the common law of the State and discussed the starting point of limitation for pre-emption suits; possession or registration deemed knowledge of sale under the Limitation Act. | Used to show that, prior to the Constitution, courts in the State treated Mohammedan Law as the common law governing pre-emption. |
| Manik Chand v. Channappa, 20 Deccan LR 581 (B) | Decided that the right of a Hindu to pre-empt arose under Mohammedan Law (not on custom) and on the death of a pre-emptor the right did not survive to heirs. | Relied upon to demonstrate that pre-emption in the State had been governed by Mohammedan Law in earlier authorities. |
| Ramchander v. Surajkaran, 28 Deccan LR 1071 (O) and related 28 Deccan LR 107 (C) | Decisions indicate that, in Hyderabad State, the right of pre-emption is governed by Mohammedan Law and not based on custom (as stated in the opinion). | Cited as authority showing that Hyderabad decisions treated pre-emption as governed by Mohammedan Law. |
| Jadu Lal Sahu v. Janki Koer, 39 Ind App 101 (PC) (D) | Held that in Bihar the Mohammedan Law of pre-emption, on the basis of custom, was enforceable between non-Mohammedans. | Adduced to show that prolonged recognition could convert Mohammedan pre-emption into local custom enforceable between non-Mohammedans. |
| Fakir Rawot v. Sheikh Emambaksh, Beng LR Sup Vol 35 (FB) (D1) | Reviewed earlier cases and held a right or custom of pre-emption recognized among Hindus in Bihar; such custom presumed to be founded on Mohammedan Law unless contrary shown; preliminary forms of Mohammedan Law must be observed. | Quoted via Jadu Lal Sahu and used to support the proposition that custom based on Mohammedan Law could operate among non-Mohammedans. |
| Dashrathlal Chhaganlal v. Bai Dhondubai, AIR 1941 Bom 262 (E) | Held that where pre-emption exists by custom in a locality it is a right attached to the land (not merely personal) and can be exercised by others. | Used to support the view that customary pre-emption may operate as a right attached to land and thus be enforceable by others. |
| Sheobaran Singh v. Kulsum-Un-Nissa, AIR 1927 PC 113 (F) | Observes that it is easier to establish a custom which is adjunct to ordinary law (such as pre-emption) than a custom varying the law (e.g., succession). | Referred to in discussing how pre-emption may be established as custom. |
| Karim Ahmad v. Rahmat Elahi, AIR 1946 Lah 432 (G) | Presumed the custom of pre-emption in Delhi City because of its foundation by Moghuls (as stated in the opinion). | Illustrative of the presumption of customary pre-emption in localities founded by Moghul administrations. |
| Sheikh Kudratuliah v. Mohini Mohan Shah, 4 Beng LR 134 (FB) (H) | Described pre-emption as "nothing more than a mere right of repurchase" (not from vendor but from vendee). | Used to present one analytical view of the nature of pre-emption (as a right of repurchase). |
| Gobind Dayal v. Inayatullah, 7 All. 775 (PB) (I) | Held that pre-emption is a right of substitution rather than repurchase and likened it to an easement; described it as creating a legal servitude running with the land. | Relied upon in the Court's analysis of the nature of the pre-emptive right and whether it is a limited interest in land or a right to acquire. |
| Nathu Singh Ganpat Singh v. Narain Singh, AIR 1935 Nag 195 (J) | Followed the view that pre-emption is a right of substitution (cited in the opinion). | Supported the reasoning that the right may be analogous to substitution/easement. |
| Dhani Nath v. Budhu, 136 Pun Re 1894 (K) | Observed that preferential right to acquire is a 'jus ad rem' (a right to acquire) and not a 'jus in re' (a right in the land itself); it restricts transfer but does not create interest in land until exercised and complied with. | Used to illustrate the view that pre-emption imposes a burden on transfer (a restriction) rather than creating an immediate proprietary interest in the land. |
| Mahomed Azim v. Slier Ali Khan, AIR 1933 Pesh 74 (L) | Describes pre-emption as a special right based on custom that tends to limit freedom of alienation; its exercise should be limited strictly to recognised law. | Quoted to show judicial caution about extending pre-emption beyond recognised limits because it limits contractual freedom. |
| Abdul Hakim v. Jan Mohammad, AIR 1951 All 247 (M) | There the right of pre-emption was held a reasonable restriction and upheld under Clause (5) of Article 19 because in that jurisdiction the right was given by statute (Agra Pre-emption Act of 1922). | Distinguished by the Court: relied on to show that statutory pre-emption may be saved by Article 19(5), but not applicable where no statutory basis exists. |
| Sonabashi Kuer & Others v. Chaudhury Ramdeo Singh, AIR 1951 Pat 521 (P) | Patna High Court held pre-emption between Hindus in Bihar applied as a matter of custom, based on Privy Council observations in 39 Ind App 101 (PC). | Used to illustrate jurisdictions where customary pre-emption between non-Mohammedans was recognised. |
| Imperial Oil Soap & General Mills Co. v. Misbahuddin, AIR 1921 Lah 69 (N) | Observation quoted that a custom of pre-emption must be presumed to exist in a town founded by the Moghuls (as stated in the opinion). | Referred to in describing origins and presumptions regarding pre-emption customs. |
| Punjab State v. Indersingh, AIR 1953 Punj 20 (Q) | Considered the Punjab Pre-emption Act (1913) and held that, although pre-emption is a clog on sale, Section 15 of the Act did not go beyond the object aimed at and was not ultra vires the Constitution. | Cited to show that a legislative (statutory) scheme of pre-emption may be constitutionally valid if restrictions are reasonable and within the Act's object. |
Court's Reasoning and Analysis
The Court proceeded through a series of analytical steps grounded in precedent and constitutional text:
- Preliminary characterization: The Court first examined historical and local authorities to determine whether, before the Constitution, the right of pre-emption in Hyderabad was enforced on the basis of Mohammedan Law as the law of the State or as a local/customary law. Several Full Bench and other decisions of the Hyderabad courts had applied principles of Mohammedan Law to pre-emption; other authorities in India showed that long recognition could produce a local custom enforceable even between non-Mohammedans.
- Nature of the right: The Court reviewed divergent authorities on the legal character of pre-emption — some authorities describing it as a mere right of repurchase (jus ad rem), others as a right of substitution or even analogous to an easement (jus in re aliena). The opinion emphasized that the distinction between a limited proprietary interest and a right to acquire (i.e., a restriction on transfer) is crucial for constitutional analysis.
- Constitutional text and saving provision: The Court framed the constitutional issue: if pre-emption operates as a clog on the right to dispose of property it will conflict with Article 19(1)(f). However, Clause (5) of Article 19 saves "existing law" imposing reasonable restrictions. The Court therefore asked whether pre-emption, in the present cases, qualified as an "existing law" saved by Article 19(5).
- Definition of "existing law": The Court relied on Article 366(10)'s definition of "existing law" and Article 13's definitions and distinctions between "law", "laws in force", and "custom or usage having the force of law." It concluded that a statutory provision or law enacted before the Constitution would qualify as an "existing law," but a mere customary right not embodied in enactment did not fall within that definition for the purposes of Clause (5).
- Application to the cases: The claims in Motibai (and thus the other two cases) were founded on custom (and not on any pre-existing statute). Because such customary rights were not caught by the "existing law" definition and because the pre-emptive right operates as a restriction on the fundamental right to dispose of property (Article 19(1)(f)), the Court held the claimed pre-emptive rights were void under Article 13(1).
- Distinguishing contrary authority: The Court distinguished decisions (for example Abdul Hakim v. Jan Mohammad) where pre-emption had been upheld because the right rested on a statute (and so was saved by Article 19(5)). The Court emphasized that statutory pre-emption could be treated differently from customary pre-emption for constitutional survival.
- Reservation on equity and conscience: The Court expressly reserved the question whether pre-emption enforceable on grounds of equity and good conscience (as distinct from custom or statute) would be constitutionally permissive; that issue was not before the Court in these cases and was left open.
Holding and Implications
Holding: The Court held that the pre-emptive rights claimed by the plaintiffs in all three cases were not preserved as "existing law" under Article 19(5) because they were based on customary recognition (not on a pre-constitutional statute) and that these customary pre-emptive rights operate as a restriction on the fundamental right under Article 19(1)(f). Consequently, such rights, as claimed in these suits, are void by virtue of Article 13(1).
Direct implications for the parties:
- The plaintiffs' suits for pre-emption (including Motibai's representative case) cannot be decreed and should be dismissed; the court below was to be informed accordingly.
- The decision in Motibai's case was treated as determinative of the other two cases because they involved similar claims and legal bases.
Broader implications and limits of the decision:
- The Court concluded that customary pre-emption in Hyderabad is no longer good law to the extent that it violates Article 19(1)(f).
- The Court expressly limited its ruling: it did not decide whether pre-emption asserted on grounds of equity and good conscience (a different legal basis) would be constitutionally permissible; that question was reserved for future adjudication if presented.
- No new statutory test was formulated beyond applying the Constitution's definitions and prior authorities; the decision distinguishes statutory pre-emption (which may be saved by Article 19(5)) from customary pre-emption (which in these cases was not saved).
Judgment authorship and concurrence: The principal opinion was delivered by Mohd. Ahmed Ansari, J., with Palnitkar, J. concurring. Srinivasa Chari, J. added a concurring opinion emphasizing similar reasoning and elaborating historical and comparative treatment of pre-emption in various Presidencies and Provinces.
Mohd. Ahmed Ansari, J.:— The constitutional question raised in three cases pending in a lower Civil Court is whether the right of pre-emption, as enforced by Courts in this State prior to the Constitution is restrictive of the fundamental right of acquiring, holding and disposing of property and therefore void under Cl. (1) of Article 13 after 25-1-1950.
2. The land, which Tulsibai seeks to preempt, was sold on 9-2-1950 by one Hulliah, defendant No. 2, to Irya, who is defendant No. 1 in the case. Motibai has instituted a similar suit, because a house has been sold on 27-1-1951, by one Mohd. Sultan to Chittia, the two defendants to her suit. In the third case Govardhan Das has filed a plaint alleging that on 30-5-1951, one Kamala Bai, defendant No. 2, has conveyed for Rs. 3,000 the house which is immediately adjacent to his shops and he is entitled to purchase it for the amount. A common plea raised in all the three cases is that before the Constitution the Mohamedan Law of pre-emption was regarded in this State as the law of the land, but after the Constitution such Law cannot be made applicable to those who do not profess the religion; hence the suits should be dismissed.
3. The Court in which the three suits were filed has referred the question to this Court under Section 113 of the CPC. A Division Bench on 17-2-1953, took the view that the question was of sufficient importance and therefore referred the cases to a Full Bench. When they were being heard before the Full Bench, it was considered that the appropriate procedure for inviting decision by this Court on the constitutional question would be by way of an application under Article 228 of the Constitution. Accordingly, Chittia, defendant No. 1 to Motibai's suit filed an application which has been referred to the Full Bench. As the personal law of the pre-emptors in each case is not Mohamedan Law and the sale of property in each is after the Constitution, it is obvious that the question whether the right claimed is violative of the fundamental right given by Sub-Cl. (1)(f) of Article 19, is common to all the three cases. We have, therefore, preferred to decide the question without insisting on applications under Article 228 being made in each case. The decision in the case of Motibai will in these circumstances cover the other two cases. The first point to be decided is whether the right of pre-emption was enforced in this State before the Constitution on the basis of the Mohamedan Law being the law of the land. In — ‘Gangaram v. Hari Bhav’ 10 Deccan LR 159 (A), the point decided by the Full Bench of five Judges, was about the starting points of the period of limitation for pre-emption suits under Article 7 of Sen. 2 of the Limitation Act (No. 2 of 1322 F), and it was held that though the right of pre-emption was under the Mohamedan Law and according to the law, the right to enforce it arose on the knowledge of the sale yet under the aforesaid Article the possession of property or the registration of the deed was deemed as amounting to the knowledge of sale. At p. 184, it was observed that the Mohamedan Law was the common law of the State and would be followed in absence of statutory or other order to the contrary.
4. Then in — ‘Manik Chand v. Channappa’, 20 Deccan LR 581 (B), a Full Bench of three Judges decided that the right of a Hindu to pre-empt arose under the Mohamedan Law and not on custom, and therefore when the pre-emptor dies during the pendency of his suit the right to continue does not survive to his heirs. Another case reported in— ‘28 Deccan LR 107 (C)’, also decides the same principle. So far as I am aware there is no authority insisting on all parties to the suit or the pre-emptor and the vendor being Moha-medans to justify the conclusion that pre-emption was enforceable on grounds of religious usage or equity and conscience as has been done by some other High Courts in this country. There is therefore considerable force in the argument that the right as enforced by the Courts in this State prior to the inauguration of the Constitution was not on the basis of custom or religious usage or rules of equity and good conscience.
5. But the ceasing of the Mohamedan Law as the law of the State does not necessarily lead to the absolute elimination of the right. The recognition of the right for a long time may give rise to custom and where such a custom exists, persons other than Mohamedans have been held entitled to exercise the right. In — ‘Jadu Lal Sahu v. Janki Koer’, 39 Ind App 101 (PC)(D), it was held that in Bihar the Mohamedan Law of preemption on basis of custom was enforceable between non-Mohamedans. At p. 107, Mr. Ameer Ali says:
“In the case of — “Fakir Rawot v. Sheikh Emambaksh’, Beng LR Sup Vol. 35 (FB) (D1), a Full Bench of the High Court of Bengal gave judicial recognition to the existence of the right of pre-emption among the Hindus of Behar. In delivering the judgment the Chief Justice (Sir Barnes Peacock) reviewed the earlier cases bearing on the subject, and held that “……a right or custom of pre-emption is recognized as prevailing among Hindus in Behar, and some other provinces of Western India; that in districts where its existence has not been judicially noticed, the custom will be matter to be proved; that such custom when it exists, must be presumed to be founded on and co-extensive with the Mohamedan Law upon that subject, unless the contrary be shown; that the Court may, as between Hindus, administer a modification of that law as to the circumstances under which the right may be claimed, when it is shown that the custom in that respect does not go the whole length of the Mohamedan law of pre-emption, but that the assertion of the right by suit must always be preceded by an observance of the preliminary forms prescribed in the Mohamedan Law, which forms appear to have been invariably observed and insisted on through the whole of the cases from the earliest times of which we have record.
6. In their Lordships' judgment the decision in — ‘Fatar Rawot's case (D1)’, is conclusive on the point raised on behalf of the defendants.”
7. Then in the Full Bench case of — ‘Dashrathlal Chhaganlal v. Bai Dhondubai’. AIR 1941 Bom 262 (E), it has been held that the custom of pre-emption as adopted in a particular locality must be in accordance with the law as it originally was and therefore in places in which the law of pre-empt on exists by custom, it must be regarded as a right attached to the land and not as a mere personal right and consequently, the right can be exercised by others. In — ‘Sheobaran Singh v. Kulsum-Un-Nissa’, AIR 1927 PC 113 (F), it is said that it is easier to establish a custom which forms a well recognised adjunct to the ordinary law, such as pre-emption than a custom which varies the law, such as one as to succession. In — ‘Karim Ahmad v. Rahmat Elahi’, AIR 1946 Lah 432 (G), the custom of pre-emption was presumed in Delhi City because of its foundation by Moghuls.
8. Thus, it is clear that in order to sustain the plea raised in the cases the view that Mohamedan Law has ceased to be the law of the State would be insufficient to sustain it, and it has to be further ascertained whether the right is of such a nature as to make it restrictive of the fundamental right of disposing property. There are several authorities holding divergent views about its nature. Dwarka Nath Mitter, J., in — ‘Sheikh Kudratuliah v. Mohini Mohan Shah’, 4 Beng LR 134 (FB)(H), says:
“Now, so far as I can judge of the Muhammadan Law of pre-emption from the materials within my reach it appears to me perfectly clear that a right of pre-emption is nothing more than a mere right of repurchase, not from the vendor, but from the vendee, who is treated for all intents and purposes as the full legal owner of the property which is the subject matter of the right…….”
9. Mahmood, J. in — ‘Gobind Dayal v. Inayatullah’ 7 All. 775 (PB)(I), took the view that it was a right of substitution rather than of repurchase on the ground that if it were regarded as one of repurchase from the vendee who had derived an absolute title unhampered by the pre-emptive right the vendee could insist on terms other than those on which he had purchased the property & such new terms the vendee could not insist upon. This view has been followed by the Nagpur High Court in — ‘Nathu Singh Ganpat Singh v. Narain Singh’, AIR 1935 Nag 195 (J). The view of the right being one of substitution appears to be correct. But it may be either ‘jus in re aliena’ or ‘jus ad rem alienam acquierendam’.
10. Mahmood, J. in the aforesaid case at p. 7991 defines it as easement:
“I may, however, observe that the nature of the right, as appears from the definition, which I have given, partakes strongly of the nature of an easement the ‘dominant tenement’, and the ‘servient tenement’ of the law of easement being terms extremely analogous to what I may respectively call the ‘pre-emptive tenement, and ‘pre-emptional tenement’ of the Mahomedan Law of pre-emption. Indeed, the analogy goes further, for the right of pre-emption, like an easement, exists before the injury to that right can give birth to a cause of action for a suit. In short, I maintain that, under the Mahomedan Law, the rule of pre-emption, proceeding upon a principle analogous to the maxim ‘sic uteretuo ut alienum non leadas’, creates what I may call a legal servitude running with the land.”.
11. There are difficulties in accepting the view of the right in its entirety; for the definition of easement does not mean reciprocity of the burden. In every claim of easement there is a dominant and a servient tenement, whereas under pre-emption law each owner of adjacent lands has the right of being substituted for the stranger. For purposes of this case the distinction between ‘jusin re aliena’ and ‘jus ad rem alienam acquierendam’ is important. The former is a limited interest in land and the Constitution, in my opinion, has not enlarged every holder of a limited estate or interest in and into lull owner. There are, however, authorities holding that the pre-emption is a mere right of acquiring property which means restriction on the right of transfer and this view is borne out by Mahmood, J.'s own observations in the concluding part of his judgment in — ‘Gobind Dayal's case (I)’.
12. Sir Meredith Flowden, J. in — ‘Dhani Nath v. Budhu’, 136 Pun Re 1894 (K), observes:
“A preferential right to acquire land, belonging to another, upon the occasion of a transfer by the latter, does not appear to me to be either a right to or a right in that land. It is a ‘jus ad rem alienam acquierendam’, and not a ‘jus in re aliena’. The right, title, and interest of the owner of land, which is subject to rights of pre-emption, is not qualified or affected by the circumstance that it is so subject. The right, title and interest which passes upon a transfer is precisely the same, whether the transfer be to a pre-emptor, or non-pre-empt or, the only difference being that in the latter case the transfer is avoidable at the instance of any pre-emptor. What is really affected by the existence of the right of pre-emption is not the right, title or interest of the owner but the exercise of the owner's power of transfer…. He is not at full liberty to transfer to whomsoever he pleases …. until he has given the pre-emptor the opportunity prescribed by law to exercise the preferential right of acquisition. If he exercises the pre-emptor's right between him and the owner, I think it becomes still more apparent that it is not a right to the land fold. A right to the offer of a thing about to be sold, is not identical with a right, to the thing itself, and that, is the primary right of the pre-emptor. The secondary right is to follow the thing sold, when sold without a proper offer to the pre-emptor and to acquire it if he thinks fit, in spite of the sale made in disregard of his preferential right but even a decree in a suit brought for the purpose of enforcing this secondary right does not give the pre-emptor a right to the thing sold. He does not acquire that right until he has paid the price fixed in the decree within the prescribed period; and this he need not do unless he chooses. If he does so the right, title and interest of the vendor which had in the meantime vested in the vendee is divested and vests in the pre-emptor and then, and not till then, he has a right to the land itself…… Briefly, the subjection of village land to rights of preemption is a burden on the land in the hands of every holder of the land, and restricts his freedom of transfer, but from this burden, as it seems to me, no right to or interest in the land so subject arises in any other person.”
13. The right being restrictive of the power of transfer is admitted by Mahmood J., at p. 314 of — ‘Govind Dayal's case (D):
“Moreover, the right, though it no doubt operates as a restriction of the principle of free sale, and thus tends to diminish the market value of property, must have enough to recommend itself, tr even in some of the most civilized parts of Germany, a similar right (‘retractrech’) is still maintained, either as a custom or as a rule of law.”
14. In — ‘Mahomed Azim v. Slier Ali Khan’. AIR 1933 Pesh 74 (L), it is said:
“It is scarcely necessary for us to remark that the right of pre-emption is a special and peculiar one based on custom and tending to limit freedom of alienation and to deprive parties to a contract of the fruits of their contract and that therefore all Courts are agreed that its exercise should be limited strictly to that recognised by law and not be extended so as to encroach on the rights of contract further than is unavoidable….”.
15. It seems to me that the weight of the authorities is in support of the view that the right of pre-emption is a right to acquire by compulsory purchase in certain cases the immoveable property of another in preference to other persons, and as such it is a clog on the right to dispose property. This clog on the fundamental right of disposing property as given by Sub-Cl. (1)(f) of Article 19 is void after the inauguration of the Constitution unless it be covered by Cl. (5) of Article 19, whereby the operation of any existing law in so far as it imposes reasonable restriction on the exercise of any of the rights conferred by the Sub-Cl. (f) either in the interest of the general public or for the protection of the interest of any scheduled tribe is saved. But to make the aforesaid Clause applicable, it is necessary that there should first be an existing law, and what is an ‘existing law’ has been defined by Cl. (10) of Article 366, which reads as follows:
“existing jaw” means any law, Ordinance, order, by-law, rule or regulation passed or made before the commencement of this Constitution by any Legislature, authority or person having power to make such law. Ordinance, order, bye-law, rule or regulation.”
16. The right of pre-emption as claimed by Motibai in her case can only exist on the basis of custom and such a law is not covered by the definition of “existing law”. Therefore, the right is not saved by Cl. (5) of Article 19. The result is that the restraint on the disposal of the property is void under Cl. (1) of Article 13, and her suit should be dismissed.
17. Reference was made to — ‘Abdul Hakim v. Jan Mohammad’, AIR 1951 All 247 (M), wherein the right of pre-emption had been held as a reasonable restriction and upheld. But the case was covered by Cl. (5) of Article 19, there being this difference between the case and the one before us that in Uttar Pradesh the right of pre-emption is given by a statute whereas in the easel before us the plaintiff cannot claim any statutory right. I am, therefore, of the opinion that the right claimed by Motibai has ceased to be a legal right after the inauguration of the Constitution and is void. This decision will apply to the other two cases also because the plaintiffs in them have also claimed similar rights.
18. In conclusion, I would point out that the three cases before us have not raised any question relating to the constitutionality of the right of pre-emption being enforceable on grounds of equity and good conscience. It may be that when such a case arises, we may be called upon to adjudicate even on this basis of the right being directly violative of the fundamental right to dispose property, but any adjudication on it does not arise in these cases. Therefore, my judgment should not be taken to cover such cases. Having made the aforesaid reservation, I am of the view that the rights as claimed by the plaintiffs in all the three cases have become void and therefore their suits cannot be decreed. The court below be informed accordingly.
Palnitkar, J.:— I agree.
Srinivasa Chari, J.:— My learned brother Mohd. Ahmed Ansari J. has dealt in detail with the facts of this case and inasmuch as the question that has arisen in this case is coming up for consideration for the first time and as it involves an important question of law which affects a large class of persons, I desire to add a few words of my own in this judgment.
19. The City Civil Court made a reference stating as to whether a suit for pre-emption was competent after the coming into force of the Constitution. A plea was raised in a suit for pre-emption on behalf of the defendant that after the Constitution such a suit could not lie. Three such cases were referred to the High Court and the matter came before a Division Bench of this Court. The question that was canvassed before the Division Bench was that inasmuch as this right of pre-emption affected one of the fundamental rights conferred by the Constitution in that the right to sell property was restricted and subjected to the law of pre-emption, it was void in view of Article 13 of the Constitution. The Division Bench referred the case to a fuller Bench.
20. The principles of the law of pre-emption were introduced in this country by the Mohammedan conquerors and it is essentially a part of Mohammedan Jurisprudence. Under the Moghul administration it became and remained for centuries the common law of the country and was applied universally both to Mohammedans and Hindus, for, the Mohammedan law in this respect made no distinction of caste or creed. In course of time pre-emption came to be adopted as a custom. A right of pre-emption, as was observed in the case of —‘4 Beng LR 134 (FB)(H)’ is nothing more than a mere right of repurchase not from the vendor but from the vendee, who is treated for all intents and purposes as the full legal owner of the property which is the subject-matter of that right. It imposes an obligation upon a Mohammedan owner of a property in the neighbourhood of which other Mohammedans have property, or in respect of which other Mohammedans have a share, to offer it to his neighbours or his partners before he can sell it to a stranger.
21. The object of the right of pre-emption is stated to be the avoidance of disagreeable strangers. The application of the law of pre-emption with the object of preventing the admission of strangers into a community is, according to a learned author, at least as old as 468 A.D (Ratigan, Digest of Customary Law, Article 97, p. 121). The right to pre-empt is very special in its character. It is founded on the supposed necessities of a Mohammedan family, arising out of their minute sub-division and inter-division of ancestral property. It has to be observed that a custom of pre-emption must be presumed to exist in a town founded by the Moghuls. This is made clear by the observations of Sir Shadilal C.J in the case of —‘Imperial Oil Soap & General Mills Co. v. Misbahuddin’, AIR 1921 Lah 69 (N).
22. The principle that Indians should be governed by their own laws was accepted by the British and important guarantees were given to the people of India regarding the same. The Statutes passed by Parliament, Regulations made by the Governor-General and the Acts passed by the Imperial Council from time to time provided for the enforcement of the important branches of Hindu and Mohammedan Laws and it was provided that where in any suit it was necessary to decide any question regarding succession, inheritance, marriage or caste or any religious usage or institution, in cases where the parties were Mohammedans, the Mohammedan law should form the rule of decision and in cases where the parties were Hindus, Hindu Law should govern the decision. Pre-emption is not one of the matters specifically enumerated in the Civil Courts Act as one to be enforced by the courts.
23. The Allahabad High Court enforced the same on the footing that questions of gift, pre-emption etc., though not governed by the Mohammed in Law as expressed clearly in the Quran, were controlled by religious usages founded on or institutions enjoined by oral law or sayings of the Prophet and that, therefore, the suits giving rise to question of pre-emption should be determined by the principles of Mohammedan Law without reference to the principles of justice, equity and good conscience. This was the view which was first adumbrated by Mahmood J. in the Full Bench case of — ‘7 All 775 (I)’.
24. In Bengal and N.W.F.P it was thought that although Mohammedan Law as such was not strictly applicable to suits relating to pre-emption among the Mohammedans, it was equitable to apply that law in the same way as a court would have enforced a well established custom.
25. In the Presidency of Bombay, however, it was regarded that the right of pre-emption being special in its nature, founded upon the supposed necessities of Mohammedan families arising out of their minute sub-division and inter-division of ancestral property, it could not be applied on the principle of justice, equity and good conscience.
26. In the Punjab it was specially dealt with by the Punjab Laws Act which was subsequently repealed by the Punjab Pre-emption Act, Act 1 of 1913. According to this law, the provisions of the Act could be taken advantage of by anybody without reference to creed, colour or race.
27. In the Madras Presidency it was considered that questions about pre-emption were not questions regarding succession, inheritance, marriage or caste or any religious usage or institution, for which express provision had been made in Section 16 of the Madras Civil Courts Act, Act 3 of 1873. It was also held that the Mohammedan Rule of Preemption was not the law in the Presidency either by positive enactment or by customary law, assimilating the rule about the Mohammedan Law of Pre-emption and making it an existing rule of law as had happened in other places. The Hindus do not claim the benefit of Law of Preemption under their personal law. They adopted the Mohammedan Law of Pre-emption as part of their customary law in some parts of India, for example, in the Province of Bihar, in some districts of Bombay and some districts of Southern Bengal.
28. In Hyderabad it may be said that the judicial decisions are so many that a court may take notice of the custom existing in Hyderabad about pre-emption and such judicial records may be admitted as evidence of the existence of a local custom. I might advert to the decisions of this High Court in the case of — ‘20 Deccan LR 581 (FB)(B)’. in which a Full Bench of this Court declared that even if the party was a Hindu, in a suit relating to pre-emption he would be governed by Mohammedan Law. Likewise are the observations of the Judges in the case of — ‘Ramchander v. Surajkaran’. 28 Deccan LR 1071 (O)’. It has also been held in that case that in so far as the Hyderabad State is concerned, the right of pre-emption is governed by Mohammedan Law and it is not based upon custom These rulings must be considered to be laying down the law that the principles embodied in the Mohammedan Law of Pre-emption would govern the decision of cases relating to pre-emption. It may not be correct to say that pre-emption is not based on custom, because where the parties are Hindus it could not be said that they would be governed by Mohammedan Law. It could be applied only as customary law.
29. The ground of attack with regard to this existing custom of pre-emption is that it fetters the right of a person to hold and dispose of his property and as such it infringes Article 19(1)(f) of the Constitution and, therefore, the law must be regarded as being void under the pro vision of Article 13(1) of the Constitution. There can be no doubt that by the application of the law of preemption, the right of the vendee to possess the property is adversely affected because if the pre-emptor ‘shafi’ offers to purchase the property and pay the price that was paid by the vendee the latter would be obliged to surrender the property although he purchased the property to have the same for himself.
30. After the coming into force of the Constitution this question came up for consideration before the Allahabad High Court in a case reported in — ‘AIR 1951 All 247 (M)’. This was a Judgment of a Single Judge & the learned Judge considered as to whether this particular law imposed any unreasonable restriction on the right of holding property. The learned Judge was considering the provisions of the Agra pre-emption Act of 1922. In coming to the conclusion that the Agra Pre-emption Act had not become void by virtue of Arte. 13(1) & 19(1)(f) the learned Judge adverted to the fact that the enjoyment of the right of property mentioned in Article 19(1)(f) was limited by the power of the State to enact laws for the general welfare of the people. He held that the law of pre-emption was for the welfare of the people because it avoided litigation, consolidated property and tended to increase the production of wealth. On these grounds lie held that it could not be regarded as an unreasonable restriction on the right of acquiring, holding and disposing of property.
31. In another case, — ‘Sonabashi Kuer & Others v. Chaudhury Ramdeo Singh Resp.’, AIR 1951 Pat 521 (P). the learned Judges of the Patna High Court held that pre-emption between Hindus in Bihar applied as a matter of custom and they based this decision of theirs upon the observations of the Privy Council in the case of — ‘39 Ind App 101 (PC)(D)’, wherein their Lordships of the Privy Council observed:
“The law of pre-emption under which the plaintiff claims the right was introduced into India with the Mohammedan Government. The Province of Bihar to which the District of Champaran appertains, was an integral part of the Mohammedan Empire, and consequently it would not be surprising to find that in Bihar the right of pre-emption is enforceable irrespective of the persuasion of the parties concerned.”
32. The East Punjab High Court had to consider this question with reference to the Punjab Preemption Act, Act 1 of 1913, in the case of — ‘Punjab State v. Indersingh’, AIR 1953 Punj 20 (Q) In this case while the learned Judges held that the law of pre-emption was a clog or fetter upon the freedom of sale, they held that the terms of Section 15 of the Punjab Pre-emption Act did not go beyond the objects aimed at and the restrictions imposed were just sufficient to achieve the interest of the general public. Accordingly they said that Section 15 of the Punjab Pre-emption Act was not ultra vires the Constitution. The reasoning appears to have been that where for a particular purpose a certain legislation is passed it cannot be held to be ultra vires the Constitution, if the provisions of the Act did not go beyond the object aimed at in the legislation.
33. The illegality or voidability of any such law as affecting any of the fundamental rights conferred by the Constitution would arise only when such law could be brought within any one of the categories of ‘law’, or ‘laws in force’ mentioned in Article 13 of the Constitution. Article 13(1) says that
“all laws in force in the territory of India immediately before the commencement of this Constitution, in so far as they are inconsistent with the provisions of this part, shall, to the extent of such inconsistency be void.”
34. That the law of pre-emption is inconsistent with the provisions of Article 19(1)(f) is clear. But the question is whether the law of pre-emption would come within the category of a law in force in the territory of India. The term ‘laws in force’ has been defined in Article 13(3)(b) as
“‘laws in force’ includes laws passed or made by a Legislature or other competent authority in the territory of India before the commencement of this Constitution and not previously repealed, notwithstanding that any such law or any part thereof may not be then in operation either at all or in particular areas.”
35. This definition is not an exhaustive definition but only an inclusive definition. The expression ‘laws in force’ has also been, mentioned in Article 372 of the Constitution and in the Explanation 1 to the above Article ‘law in force’ has been given the same definition as in Article 13(3)(b) Obviously the law of pre-emption cannot be regarded as a law passed or made by a Legislature or other competent authority. The law of pre-emption cannot, therefore, be said to fall within the category of ‘law in force’ as defined in Article 13(1). Let us see if it could be regarded as a ‘law’ coming within Article 13(2) of the Constitution. In Article 13(3)(a) an inclusive definition of the term ‘law’ mentioned in Article 13(2) has been made. The term ‘law’ has been held to include among other things not merely enacted law but also custom or usage having the force of law. Therefore if the law of pre-emption could be regarded as a custom or usage having the force of law then necessarily it would be hit by Article 13(2) of the Constitution and such law would have to be held void after the Constitution. It may be argued that if the definition of the word ‘law’ in Article 13(3)(a) were read along with Article 13(2) it would lead to an absurdity. Article 13(2) forbids the State from making any law which takes away or abridges any of the rights conferred by Part 3 of the Constitution. If, therefore, the word law also includes custom or usage and we substitute the words ‘custom or usage having the force of law’ in place of the word ‘law’ the clause would read as under:
“The State shall not make ‘any custom or usage having the force of law’ which takes away or abridges the rights conferred by this Part ‘and any custom or usage having the force of law’ made in contravention of this clause shall, to the extent of the contravention, be void.”
36. It is a well accented principle relating to the interpretation of Statutes that the interpretation ought not to lead to absurdity and if two constructions are possible, one which renders the meaning absurd and the other reasonable, the latter should be preferred. The interpretation of the words can be reconciled only by holding that a custom or usage having the force of law is included in the term ‘laws in force’ occurring in Article 13(1) of the Constitution.
37. Having come to the conclusion that expression ‘custom or usage having the force of law’ is included in the term ‘laws in force’ it naturally follows that the customary law of preemption in Hyderabad can no longer stand, the law being in violation of Article 19(1)(f) of the Constitution. The law may have been advantageous and beneficial to village communities in that it ensured homogeneity, and prevented the coming in of an unwanted neighbour but decidedly the law is not suitable to conditions of life in a city. Further it would be difficult to reconcile such a law with the modem views regarding the desirability of a free disposition of immovable property. Therefore, it cannot be said that the restriction imposed on the acquiring and possession of property is a reasonable restriction in the interests of the general public so as to be saved by Article 19(5) of the Constitution.
38. My answer to the question involving constitutional law is that the law of pre-emption in Hyderabad is no longer good law and is void as it violates Article 19(1)(f) of the Constitution.
A./K.S.B
39. Answer in the affirmative.
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