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Arjun Singh (Opposite Party) v. Sarfaraz Singh (Petitioner).

Allahabad High Court
Jan 9, 1888
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Structured Summary of the Provided Opinion

Factual and Procedural Background

The facts as recorded by the court are these: Ram Kant Misr sold a 5 annas 6 pies share by sale-deed dated Pus badi 12, 1290 Fasli (1883) to Ganga Mahton and Har Bakhsh Mahton. Two rival pre-emptive suits were instituted over that sale — one by Arjun and the other by Sarfaraz. Both suits were decreed on 16 August 1884, and those decrees were upheld on appeal on 31 October 1885.

The decrees allocated pre-emption as follows: Arjun was awarded a 3 annas share in lieu of Rs. 1,308-9-0, and Sarfaraz was awarded the remaining 2 annas 6 pies share in lieu of Rs. 1,090-7-0. Each decree contained a condition that if either pre-emptor defaulted in paying the specified amount within thirty days, the other pre-emptor could pre-empt the remaining portion on payment of its price within fifteen days of such default.

Neither Arjun nor Sarfaraz deposited their respective sums within thirty days. After Arjun failed to deposit Rs. 1,308-9-0 (thus allowing his own decree to lapse), he deposited Rs. 1,090-7-0 within the fifteen-day period and sought execution of Sarfaraz's decree to obtain the 2 annas 6 pies share (the share originally decreed to Sarfaraz). The Subordinate Judge disallowed Arjun's execution application; the District (lower appellate) Court reversed and allowed execution; the High Court (Mahmood, J.) set aside the District Court's order and restored the Subordinate Judge's order. From that High Court decree Arjun appealed under section 10 of the Letters Patent.

Legal Issues Presented

  1. Whether a rival pre-emptor who has allowed his own decree for pre-emption to lapse by failing to pay the decreed purchase-money within the prescribed time can, by paying the purchase-money decreed in favour of the other rival pre-emptor within the permissible "successor" period, execute the other pre-emptor's decree and obtain only the portion decreed to that rival pre-emptor.
  2. Whether allowing execution of a rival pre-emptor's decree by a party who is a judgment-debtor under that decree would impermissibly split up the bargain of sale contrary to the fundamental rule of pre-emption.

Arguments of the Parties

Appellant's Arguments (as presented in the opinion)

  • Arjun (the appellant) contended that the court should construe the decrees in the pre-emption suits so as to permit him to obtain the 2 annas 6 pies share (the portion decreed to Sarfaraz) by depositing Rs. 1,090-7-0 within the fifteen-day period, even though he had allowed his own decree (for 3 annas on payment of Rs. 1,308-9-0) to lapse by not paying within thirty days.
  • In support of that construction the appellant relied on three authorities (as cited in the opinion): Salig Ram v. Debi Parshad, Mahabir Parshad v. Debi Dial, and an unreported Second Appeal from Order No. 4 of 1886.

Other Arguments Recorded

  • Mahmood, J. records that "Mr. Ram Prasad, on behalf of the respondent," argued that a court executing a decree is bound by the terms of the decrees and is thus precluded from applying broader or general principles of the law of pre-emption at the execution stage.
  • It is also recorded that Sarfaraz opposed Arjun's execution application in the lower court (the opinion notes that the application was opposed by Sarfaraz, the holder of the decree under which Arjun claimed).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Kashi Nath v. Mukhta Prasad Explication of the rule that applies to decrees for pre-emption in cases of rival pre-emptors (decrees relate to the whole subject of sale). The court relied on this case to show that the decrees in rival pre-emption suits properly relate to the entire share sold and are consistent with the rule against splitting the bargain of sale.
Hulasi v. Sheo Prasad Approval of the rule stated in Kashi Nath; shows the rule applies even when a pre-emptor brings his action after another has already brought suit. Used as authority for the fundamental principle that a pre-emptor must claim the whole property sold and the court must avoid splitting the sale.
Durga Prasad v. Munsi Expresses the proposition that the bargain of sale cannot be split up with reference to the subject-matter of the sale. Cited as authority for the proposition that decrees which would result in splitting the sale are contrary to the fundamental rule of pre-emption.
Salig Ram v. Debi Parshad Decided that under village settlement/administration papers a sharer was entitled to maintain an action for less than the whole share sold. The Chief Justice held this Full Bench decision was not authority for the appellant's proposition that a decree could be executed so as to give a pre-emptor only part of the subject where he had defaulted as to his own allotted portion.
Mahabir Parshad v. Debi Dial Held that parties could be ordered to pay into Court respective sums proportionate to their shares, and that if either failed the other making the further deposit would be entitled to the share of the defaulter — construed by the court to mean payment of the whole share-price. The opinion treats this decision as showing that the price of the whole share should be paid (not a part only), and therefore it does not support the appellant's contention that he could pay only the part-price and obtain only the part share after default.
Second Appeal from Order No. 4 of 1886 (unreported) Noted in the opinion as a different factual situation where the person before the Court was not a defaulter and had in fact paid into Court the amount for which he ultimately succeeded on appeal. The court found this unreported case materially different from the present factual situation and therefore not supportive of the appellant's position.

Court's Reasoning and Analysis

The opinion contains two complementary judicial analyses (Mahmood, J. and the Chief Justice, Sir John Edge) that reach the same legal conclusion. The court's reasoning proceeds along these lines:

  1. The decrees in the rival pre-emption suits were for the whole 5 annas 6 pies share subject to the conditional provision allowing the rival pre-emptor, on default by the other, to step in by payment within a further period. Thus each decree related to the entire subject of the sale.
  2. The fundamental rule of pre-emption (as stated in the cited authorities) is that the bargain of sale cannot be split up with reference to the subject-matter of the sale; a person claiming pre-emption must claim the whole property sold and not part only where he has, as against the vendee, a pre-emptive right to the whole.
  3. Arjun allowed his own decree (which required him to deposit Rs. 1,308-9-0 within thirty days for the 3 annas portion) to lapse by default; once his decree had lapsed it could not be of further use to him. The decree which Arjun seeks to execute (the decree obtained by Sarfaraz) was a decree under which Arjun himself was a judgment-debtor; the decree-holder entitled to execute a decree is the holder of that particular decree, not a person against whom that decree was passed.
  4. If Arjun were permitted to execute Sarfaraz's decree to obtain only the 2 annas 6 pies portion by paying the price thereof, the practical effect would be to split the original bargain of sale: Arjun would obtain one part (2 annas 6 pies) while the remaining 3 annas would remain with the vendees. That outcome would be contrary to the fundamental rule of pre-emption.
  5. Mahmood, J. addresses the argument that a court executing a decree is strictly bound by its terms and cannot apply general pre-emption principles at the execution stage. He rejects that contention on two grounds: (a) the decrees themselves were framed so as to avoid splitting the bargain of sale, and (b) in interpreting the decrees the court must not disregard the general principles of pre-emption.
  6. The Chief Justice supplements and confirms this analysis: he examines the authorities cited by the appellant and explains why they do not support the proposition that a defaulting pre-emptor may thereafter obtain only the rival's portion. He construes the decrees as meaning that the right to obtain the other portion on default is contingent on the successful pre-emptor having paid his own decretal price within the specified time; if he fails, he cannot then step in to obtain only the other portion without paying the full price of the whole share.

Holding and Implications

APPEAL DISMISSED.

Direct effect on the parties:

  • The High Court (Mahmood, J.) judgment restoring the Subordinate Judge's order was confirmed by the Chief Justice; the appellate order that had allowed Arjun execution was set aside.
  • The respondent (Arjun) is precluded from availing himself of the decree obtained by rival pre-emptor Sarfaraz because Arjun allowed his own decree to lapse by non-payment; as a result Arjun cannot execute Sarfaraz's decree to obtain only the 2 annas 6 pies share.
  • The respondent (Arjun) was ordered to pay costs in all the courts (as recorded in Mahmood, J.'s judgment) and the appeal before the Chief Justice was dismissed with costs.

Broader implications: The court applied established principles in prior authorities (cited in the opinion) to reaffirm that in rival pre-emption suits the court must avoid any construction or execution that would split the bargain of sale. The opinion does not state that it establishes a new rule beyond reaffirming existing authorities.

Show all summary ...

Mahmood, J.:— The facts of this case are these:—One Ram Kant Misr was the owner of a 5 annas 6 pies share, which he sold under a sale-deed, dated Pus badi 12, 1290 Fasli (1883) to Ganga [183] Mahton and Har Bakhsh Mahton. Upon this sale two pre-emptive suits were instituted, one by Arjun and the other by Sarfaraz. Both suits were decreed on the 16th August, 1884, which decrees were upheld in appeal on the 31st. October, 1885. The effect of those decrees was that whilst the pre-emptor Arjun was held entitled to pre-empt a three annas share in lieu of Rs. 1,308-9-0, the rival pre-emptor Sarfaraz was held entitled to pre-empt the remaining 2 annas 6 pies share on payment of Rs. 1,090-7-0. But it was provided in both the decrees that in case of default of either of the pre-emptors to pay in the amount above specified within a period of thirty days, the other pre-emptor would be entitled to pre-empt the remaining portion of the share decreed to the other pre-emptor on payment of, the price thereof within fifteen days of such default.

It is therefore clear that the decrees of Arjun and Sarfaraz related to the entire 5 annas 6 pies share, subject to the restriction therein contained as I have mentioned. Such decrees were in full accord with the rule which applies to decrees for pre-emption in cases of rival pre-emptors, as fully stated in the case of Kashi Nath v. Mukhta Prasad(1), which was approved in Hulasi v. Sheo Prasad(2). It is also clear that each decree awarded pre-emption in respect of the whole subject of sale. Nor can these decrees be understood to have infringed the fundamental rule of preemption, namely, that the bargain of sale cannot be split up with reference to the subject-matter of the sale. This latter proposition is the effect of the ruling in Durga Prasad v. Munsi(3) and the cases referred to therein.

What appears to have happened here is that neither Arjun nor Sarfaraz deposited their respective sums of money within the thirty days specified in their respective decrees. The present dispute, however, has arisen because Arjun, the present respondent, having lost the benefit of his decree, is seeking to obtain the benefit of the decree obtained by Sarfaraz by depositing within fifteen days from the date of the default the sum of Rs. 1,090-7-0 as the purchase-money of the 2 annas 6 pies share which had been decreed in favour of Sarfaraz and in respect of which the decree provided [184] that Arjun, the rival pre-emptor, might enforce pre-emption on default of payment by Sarfaraz.

The Court of first instance held that the decree obtained by Sarfaraz could not be executed in this manner in favour of Arjun, who was judgment-debtor of that decree, and that such a partial execution of a pre-emption decree could not be allowed. Upon this ground that Court disallowed the application for execution, which, I may add, was opposed by Sarfaraz also, the holder of the decree under which Arjun claimed. The lower appellate Court, however, has reversed that order, and from that order this second appeal is preferred.

It seems to me clear that the lower appellate Court has misapprehended the case and the rule of law applicable to it. It is admitted that in the decree obtained by Arjun, the vendor, and the vendee, as well as the rival pre-empt or Sarfaraz, were defendants and became judgment-debtors when the claim was decreed. Similarly in the decree obtained by Sarfaraz the vendor and the vendee were defendants, as also Arjun, the rival pre-emptor. Now this being so, the decree of which the decree-holder could avail himself was the decree which he himself obtained, and not the decree which had been passed against him, whatever its terms may have been. The present respondent Arjun allowed his decree for pre-emption to lapse — by reason of not having deposited Rs. 1,308-9-0, which that decree required him to do within thirty days, and that decree could not therefore be of any further use to him. Having thus foregone the benefit of his decree, I do not think he is entitled to execute the decree which Sarfaraz had obtained, simply because that decree, with reference to the other decree, allowed Arjun to pre-empt the remaining 2 annas 6 pies share within fifteen days of the default of payment of the purchase-money by Sarfaraz. The effect of the ruling of the lower appellate Court would be to split up the bargain of sale, because if Arjun could pre-empt only the 2 annas 6 pies share as he is seeking to do here, the remaining 3 annas would still be left in the hands of the vendees. The view of the law taken by the lower appellate Court is erroneous, because it is opposed, as I have already said, to the very fundamental principles of the law of pre-emption. Mr. Ram Prasad, on behalf of the respondent, has [185] indeed argued that in dealing with this case as a Court executing the decree, I am hound by the terms of the decrees, and thus I am precluded from applying the general principles of pre-emption at this stage. As to this contention, it is enough to say that, in the first place, the decrees themselves have for their sole aim and end the exclusion of such a splitting up of the bargain of sale as would result from the order of the lower appellate Court, and in the next place that in interpreting those decrees I cannot disregard the general principles of the law of pre-emption.

I hold, therefore, that the respondent Arjun, by foregoing his own decree by default of payment, is precluded from availing himself of the decree obtained by the rival pre-emptor Sarfaraz. In this view of this case this appeal is decreed, and the order of the lower appellate Court being set aside, that of the Court of first instance is restored. The respondent will pay costs in all the Courts.

From this decree Arjun appealed under s. 10 of the Letters Patent.

Munshi Ram Prasad for the appellant.

Mr. J. Simeon, for the respondent.

Sir John Edge, Kt., C.J, C.J:— This appeal has arisen in the execution of a decree in a pre-emption suit. The share-holder in the village sold to a stranger, so far as is material, a 5 annas 6 pies share. Upon that Arjun Singh, the present appellant, brought his action for pre-emption of the whole share. Sarfaraz Singh, who was equally entitled with Arjun to pre-emption, brought his action claiming to pre-empt the whole. These two actions were tried together by the then Judge of Gorakhpur, and he dealt with them in this way:—he passed a decree in Arjun Singh's favour in respect of 3 annas out of the 5 annas 6 pies on payment within thirty days of the date of the decree of Rs. 1,308-9-0, and in favour of Sarfaraz Singh in respect of the remaining 2 annas 6 pies on payment within a like period of Rs. 1,090-7-0, and by both of the decrees it was provided that in case of default on the part of either of the pre-emptors to pay the amount above specified within a period of thirty days, the other pre-emptor would be entitled [186] to pre-empt the remaining portion of the share decreed to the other pre-emptor on payment of the price thereof within fifteen days of such default. What has taken place is this the two pre-emptors made default of payment within thirty days. Arjun Singh after the expiration of thirty days, and within the further period of fifteen days, paid into the Court the Rs. 1,090-7-0, the pre-emption price decreed in respect of the 2½ annas share, and he now claims in execution to have possession of that 2½ annas share. It appears that by some arrangement to which Arjun Singh was no party, and which is not necessary for me to consider, Sarfaraz Singh, although he made default, got possession of the 2½ annas share. For the purposes of my judgment it is immaterial whether Sarfaraz Singh got possession of the 2½ annas share or not. The Subordinate Judge dismissed Arjun Singh's claim to have execution in respect of the 2½ annas share. The District Judge on appeal allowed that claim. My brother Mahmood, on appeal to this Court, for the reasons given in his judgment, confirmed the order of the Subordinate Judge and set aside the order of the District Judge with costs. From that decree of my brother Mahmood this appeal is brought under s. 10 of the Letters Patent. The case of Kashi Nath v. Mukhta Prasad, that of Durga Prasad v. Munsi, and that of Hulasi v. Sheo Prasad are clear authorities in this Court, if any such authority was required, to show that the rule of the Muhammadan law which applies in pre-emption cases is that the person claiming pre-emption must claim the whole property sold and not part only if he has, as against the vendee, a pre-emptive right to the whole. Indeed, the case of Hulasi v. Sheo Prasad shows that rule applies even to the case of a pre-emptor who brings his action after another pre-emptor has already brought an action in respect of the same share. It is contended before us on behalf of Arjun Singh that we should construe the decree in these pre-emption suits as if they gave Arjun Singh a right to get the 2 annas 6 pies share even if he made default in paying the Rs. 1,308-9-0, the decreed preemption price in respect of the 3 annas share which was decreed to him. It is contended that such a decree would have been a good one according to the rulings of this Court. For that proposition three cases have been cited. [187] The first of those cases is that of Salig Ram v. Debi Parshad(4), a Full Bench case of this court. That case is no authority for that proposition. That case simply decided that by the settlement administration papers of the village a sharer was entitled to maintain an action for less than the whole share sold. The next case was that of Mahabir Parshad v. Debi Dial(5). In that case this Court held that the appellants there, on payment of Rs. 200, were entitled to obtain a two-thirds share, and that one Duliman should pay into Court within the same time, that was one month, Rs. 100 and obtain a one-third share, and that if either of the appellants in that case or Duliman should fail to pay the amount within one month, “the other of them making the further deposit within the time shall be entitled to the share of the defaulter.” It is perfectly plain from that judgment that the Court meant that the price of the whole share should be paid, and that not a part only of the price should be paid by some or one of the parties. The last case relied on is unreported. It is Second Appeal from Order No. 4 of 1886(6). That case is very different from the present case. In that case the person before the Court was not a defaulter; he had in fact paid into Court the amount of money for which, in the result of his appeal, it had been decreed he should obtain a moiety of the share. Now I take it to be the law that in a case such as this, where two rival pre-emptors having each an equal right to claim pre-emption bring their pre-emption suits, and there is nothing in the wajib-nl-arz to the contrary, the rule of Muhammadan law must still be observed, and however the share may be divided by the decree of the court between such successful pre-emptors, the court must take care that the whole share must be purchased by both pre-emptors or on the default of one by the other, or that neither of them should obtain any interest in the share in respect of which the pre-emption suits arose. To hold otherwise would be to enable the shareholders in a village who did not wish to comply with the rule of Muhammadan law to which I have referred, where it applies, as in this case, to obtain possession of a portion of the share and leave the other portion of the share in the bands of the vendor or vendee. I must apply a reasonable construction to the decree of the Judge of Gorakhpur, and I hold that decree meant, to take the case [188] of Arjun Singh, that if lie within a specified time paid the Rs. 1,308-9 in respect of the 3 annas share, he would be entitled, on default made by Sarfaraz Singh, to obtain Sarfaraz Singh's share on payment within the further period of fifteen days of the Rs. 1,090-7-0. I am of opinion that the judgment of my brother Mahmood is a right judgment in law, and that this appeal must be dismissed with costs.

Brodhurst, J.:— I concur with the learned Chief Justice in dismissing the appeal with costs.

Appeal dismissed.