ABDUL MATIN MALLICKversusSUBRATA BHATTACHARJEE (BANERJEE) AND ORS.
- Citation
- 2022 INSC 518
- Decided
- 5 May 2022
- Disposal
- Appeal(s) allowed
- Bench
- M R SHAH
Holding
Deposit of the entire sale consideration together with an additional 10% at the time of filing a pre‑emption application is a mandatory statutory condition; without it the application is not maintainable.
Summary
The dispute concerned a pre‑emption claim under the West Bengal Land Reforms Act, 1955 where three brothers (pre‑emptors) sought to exercise their right of pre‑emption over shares in a plot sold by their sisters to Abdul Matin Mallick (pre‑emptee). The trial court dismissed the claim, but the First Appellate Court allowed it, holding that a co‑sharer’s transfer of his entire share to a non‑raiyat does not defeat a pre‑emption application. The High Court upheld that decision but permitted the pre‑emptors to deposit the balance consideration later with an additional 10% surcharge. The Supreme Court examined whether the statutory requirement of depositing the entire sale consideration plus 10% along with the pre‑emption application is a mandatory pre‑condition under Sections 8 and 9 of the Act. It held that the right of pre‑emption is a weak right and must be strictly construed; the deposit requirement is mandatory and must be fulfilled before any enquiry can commence. Since the pre‑emptors had not made such a deposit, their application was not maintainable, and the High Court’s permission to deposit later was erroneous. Consequently, the Supreme Court quashed the orders of the lower courts and dismissed the pre‑emption application.
Issues considered
- The pre‑emption application under Section 8 of the West Bengal Land Reforms Act, 1955 is maintainable without the deposit of the full sale consideration plus 10% along with the application.
- Whether the High Court erred in allowing the pre‑emptors to deposit the balance consideration after the filing of the pre‑emption application.
- Interpretation of Sections 8 and 9 of the West Bengal Land Reforms Act, 1955 regarding the deposit requirement as a pre‑condition to trigger the right of pre‑emption.
Legislation cited
- West Bengal Land Reforms Act, 1955s. 5(5), s. 8, s. 9
Subjects
Judgment
[2022] 3 S.C.R. 611 611
ABDUL MATIN MALLICK A
v.
SUBRATA BHATTACHARJEE (BANERJEE) AND ORS.
(Civil Appeal no. 3499 of 2022)
MAY 05, 2022 B
[M. R. SHAH AND B. V. NAGARATHNA, JJ.]
West Bengal Land Reforms Act, 1955: s.5(5), 8, 9 – Right of
purchase by co-sharer or contiguous tenant – Pre-emption
application – Maintainability of – Vendors of the pre-emptee
C
transferring their entire share in the property to person other than
a raiyat in the said plot of land without notice to the pre-emptors –
Pre-emption application by respondents-pre-emptor to exercise their
right as pre-emptors u/s 8, allowed by the first appellate court –
However, the High Court while upholding the said order, granted
time to the pre-emptors to deposit the balance consideration money D
together with further sum of 10% of that amount – On appeal, held
: Right of pre-emption is a very weak right – Any provision to enforce
such a right must, be strictly construed – Deposit of the entire sale
consideration with additional 10% of the sale consideration
alongwith the pre-emption application is a statutory and mandatory
E
requirement – It is a pre-condition before any further enquiry as
contemplated u/s. 9 is held – On facts, the pre-emptors had not
deposited the entire sale consideration with additional 10% of the
sale consideration alongwith the pre-emption application – First
appellate court or even the High Court did not consider the said
aspect – Unless and until the same is complied with, the pre-emption F
application would not be maintainable – High Court not justified
in permitting the pre-emptors to deposit the balance sale
consideration while deciding the revision application – Such
direction/permission/liberty would be against the intent of s. 8 –
Thus, the orders passed by the High Court and that of the first
G
appellate court quashed and set aside – Pre-emption application
filed by the original pre-emptors-respondent dismissed.
Allowing the appeals, the Court
HELD: 1.1 The right of pre-emption is “a very weak right”.
That being the character of the right, any provision to enforce H
611
612 SUPREME COURT REPORTS [2022] 3 S.C.R.
A such a right must, thus, be strictly construed. The deposit of the
entire sale consideration with additional 10% of the sale
consideration alongwith the pre-emption application is a statutory
and mandatory requirement and it is a pre-condition before any
further enquiry as contemplated under Section 9 of the West
Bengal Land Reforms Act, 1955 is held. In the instant case,
B
admittedly, the pre-emptors had not deposited the entire sale
consideration with additional 10% of the sale consideration
alongwith the pre-emption application. The said aspects have not
been considered either by the First Appellate Court or even by
the High Court. [Para 6.1, 6.3][618-G-H; 623-B-C]
C 1.2. The submission on behalf of the pre-emptors that they
bonafidely believed that the sale consideration mentioned in the
sale deed is in favour of the vendee, who is an outsider (outside
the family) was higher than the actual sale consideration and
therefore, they did not deposit the entire sale consideration with
D additional 10% of the sale consideration alongwith the pre-
emption application is concerned, it is to be noted that the said
cannot be a ground not to comply with the condition of deposit as
required under Section 8 of the Act, 1955. Such a dispute can be
the subject matter of an enquiry provided under Section 9 of the
Act. The enquiry under Section 9 with respect to the sale
E consideration in the sale deed would be only after the condition
of deposit of entire sale consideration with additional 10% as
provided under Section 8 of the Act has been complied with. [Para
7][623-D-F]
1.3. The submission on behalf of the pre-emptors that the
F contention of non-deposit of the entire sale consideration with
additional 10% of the sale consideration by the pre-emptors was
not raised before the Courts below and has been raised for the
first time before this Court, and therefore the same be not
considered/permitted to be raised now, is concerned, it is to be
G noted that the said contention would go to the root of the matter
on maintainability of the pre-emption application as without
complying with the statutory requirements as mentioned under
Section 8 of the Act, 1955, the same is not maintainable. It is an
admitted position that the pre-emptors had not deposited the
H
ABDUL MATIN MALLICK v. SUBRATA BHATTACHARJEE 613
(BANERJEE) AND ORS.
entire sale consideration with additional 10% of the sale A
consideration along with the pre-emption application as required
under Section 8 of the Act in the instant case. [Para 8][623-F-H;
624-A]
1.4. Even the High Court in the impugned judgment and
order has permitted the pre-emptors to deposit the balance sale B
consideration. However, faced with the decision of this Court in
the case of Barasat Eye Hospital and Ors. and in light of the
observations that alongwith the pre-emption application, the pre-
emptors have to deposit the entire sale consideration with
additional 10% and only thereafter the further enquiry can be
conducted as per Section 9 of the Act, 1955 and therefore, unless C
and until the same is complied with, the pre-emption application
would not be maintainable, the High Court is not justified in
permitting the pre-emptors to now deposit the balance sale
consideration with additional 10% while deciding the revision
application. Such a direction/permission/liberty would go against D
the intent of Section 8 of the Act, 1955. [Para 9][624-B-D]
Barasat Eye Hospital and Ors. v. Kaustabh Mondal
(2019) 19 SCC 767 – relied on.
1.5. The impugned judgments and orders passed by the
High Court and that of the first appellate court are quashed and E
set aside. Consequently, the pre-emption application submitted
by the original pre-emptors-respondent Nos. 1 to 3 is dismissed.
Respondent Nos. 1 to 3-original pre-emptors are permitted to
withdraw the amount, which they might have deposited either
alongwith the pre-emption application and/or any subsequent F
deposit pursuant to the orders passed by the High Court. [Para
10][624-E-F]
Barasat Eye Hospital and Ors. v. Kaustabh Mondal
(2019) 19 SCC 767 – relied on.
Sk. Sajhan Ali & Ors. v. Sk. Saber Ali & Anr. 2016 (1) G
W.B.L.R (Cal) 133; Naymul Haque and Ors. v.
Allauddin Sk. and Ors. 2019 (1) CLJ (CAL) 488;
Bishan Singh v. Khazan Singh AIR 1958 SC 838 :
[1959] SCR 878 – referred to.
H
614 SUPREME COURT REPORTS [2022] 3 S.C.R.
A Case Law Reference
(2019) 19 SCC 767 relied on Para 6.1, 9
[1959] SCR 878 referred to Para 6
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 3499
B of 2022.
From the Judgment and Order dated 17.04.2019 of the High Court
at Calcutta in Co. No. 4266 of 2016.
With
Civil Appeal No. 3500 of 2022.
C
Anand, Ms. Rajeshri N. Reddy, Dibyadyuti Banerjee, Abhijit
Sengupta, Kumar Neeraj, Advs. for the Appellant.
Mainak Bose, Sr. Adv., Pawan Kumar Ray, Shreshth Nanda, Riju
Talukdar, Deepak Goel, Advs. for the Respondents.
D The Judgment of the Court was delivered by
M. R. SHAH, J.
1. Feeling aggrieved and dissatisfied with the impugned judgment
and order passed by the High Court of Calcutta in C.O. NO. 4266 of
E 2016 by which the High Court has dismissed the said writ petition
preferred by the appellant herein and has confirmed the order passed by
the first Appellate Court allowing the application submitted by the
respondents herein – pre-emptors, the original respondents – revisionists
before the High Court, the appellant herein - pre-emptee has preferred
the present appeal arising out of SLP (C) No. 5394 of 2022.
F
1.1 Feeling aggrieved and dissatisfied with the impugned judgment
and order passed by the High Court of Calcutta in C.O. NO. 1153 of
2016 by which the High Court has allowed the said writ petition preferred
by the respondents herein and has revived the execution case filed by
the respondents for implementing the pre-emption order and has further
G directed that the executing court shall direct possession to be handed
over to the pre-emptors in respect of the property in question positively
within 31.08.2021, the appellant herein – pre-emptee has preferred the
present appeal arising out of SLP (C) No. 4261 of 2022.
2. The facts leading to the present appeals in nutshell are as under:-
H
ABDUL MATIN MALLICK v. SUBRATA BHATTACHARJEE 615
(BANERJEE) AND ORS. [M. R. SHAH, J.]
2.1 That the disputed property in question, which was the subject A
matter of application for pre-emption before the Appropriate Authority
under the West Bengal Land Reforms Act, 1955 (hereinafter referred
to as the “Act, 1955”) belonged to one Khudiram Bhattacharya, who
died on 17.04.2001 leaving behind him, surviving his widow Purnima
Bhattacharya who also died on 14.08.2001 and three sons namely
B
Subrata, Debabrata and Ratan (the pre-emptors herein) and two daughters
Kalyani and Alpana, the vendors of the pre-emptee (appellant herein).
On the death of Khudiram Bhattacharya and his widow, the aforesaid
three sons and two daughters inherited the property in question each
having undivided 1/5th share therein. The daughters of the original owner
- Khudiram Bhattacharya sold their undivided 2/5th share in the property C
in question to the appellant herein - pre-emptee - Abdul Matin Mallick
vide registered sale deed dated 23.11.2011. The sale in favour of the
appellant by the daughters of the said Khudiram Bhattacharya was sought
to be pre-empted by the sons of said Khudiram Bhattacharya on the
ground that their sisters have transferred their undivided share in the
D
property in question to the appellant, a stranger to the said property
without serving statutory notice under Sub-Section (5) of Section 5 of
the Act, 1955. The said application under Section 8 of the Act, 1955 was
registered as Misc. Pre-emption Case No. 8 of 2012 before the learned
Trial Court.
2.2 The learned Trial Court dismissed the said application for pre- E
emption as not maintainable mainly on the ground that since the vendors
of the pre-emptee had transferred their entire share in the suit property,
the application for pre-emption under Section 8 of the Act, 1955 is not
maintainable.
2.3 Feeling aggrieved and dissatisfied with the judgment and order F
passed by the learned Trial Court dismissing the pre-emption application,
pre-emptors preferred the appeal before the First Appellate Court being
Misc. Appeal No. 7 of 2014. The Appellate Court allowed the said appeal
and set aside the order passed by the learned Trial Court and consequently
allowed the application for pre-emption holding that even when a co- G
sharer of a plot of land transfers his entire share to any person other
than a raiyat in the said plot of land, the application for pre-emption
under Section 8 of the Act, 1955 would be maintainable.
2.4 Feeling aggrieved and dissatisfied with the order passed by
the First Appellate Court allowing the pre-emption application, the H
616 SUPREME COURT REPORTS [2022] 3 S.C.R.
A purchaser – pre-emptee filed the present revision application before the
High Court.
2.5 By the impugned judgment and order, the High Court has
dismissed the said revision application and has not interfered with the
judgment and order passed by the First Appellate Court, however, has
B granted the time to the pre-emptors to deposit the balance consideration
money together with further sum of 10% of that amount by further period
of 30 days.
2.6 Feeling aggrieved and dissatisfied with the impugned judgment
and order passed by the High Court, the purchaser – pre-emptee has
C preferred the present appeals.
3. Shri Anand, learned counsel appearing on behalf of the appellant
has vehemently submitted that in the facts and circumstances of the
case, the High Court has committed a grave error in dismissing the
revision application and not interfering with the order passed by the First
D Appellate Court allowing the pre-emption application.
3.1 It is vehemently submitted by learned counsel appearing on
behalf of the appellant that as such there was a non-compliance of the
mandatory requirement of the deposit of the entire sale consideration
with a further sum of 10% of the sale consideration as required under
E Section 8 of the Act. It is contended that it is an admitted position that at
the time of submitting the application for pre-emption, the pre-emptors
did not make any full deposit of the sale consideration with further 10%
of the sale consideration alongwith the application for pre-emption.
3.2 It is urged that before any application for pre-emption is
F considered and further enquiry is conducted as required under Section 9
of the Act, deposit of the entire sale consideration with 10% more of the
sale consideration is a condition precedent. That unless and until the said
condition is satisfied and/or fulfilled the pre-emption application shall not
be maintainable at all; that only thereafter the further enquiry as
contemplated under Section 9 of the Act, 1955 shall have to be conducted.
G That in the present case, there is non-compliance of the statutory
mandatory requirement as per Section 8 of the Act, 1955. Therefore,
the pre-emption application was liable to be rejected.
3.3 Learned counsel appearing on behalf of the appellant has
heavily relied upon the decision of this Court in the case of Barasat Eye
H
ABDUL MATIN MALLICK v. SUBRATA BHATTACHARJEE 617
(BANERJEE) AND ORS. [M. R. SHAH, J.]
Hospital and Ors. Vs. Kaustabh Mondal, (2019) 19 SCC 767 (paras A
23 to 33).
3.4 Making the above submissions and relying upon the above
decision, it is prayed to allow the present appeals.
4. Present appeals are opposed by Shri Mainak Bose, learned
Senior Advocate appearing on behalf of the contesting respondents. It is B
vehemently submitted that as such the learned Trial Court dismissed the
pre-emption application as not maintainable on the ground that since the
vendors of the pre-emptee have transferred their entire share in the suit
property, the application for pre-emption under Section 8 of the Act,
1955 would not be maintainable. It is submitted that however, in view of C
the binding decision of the High Court in the case of Sk. Sajhan Ali &
Ors. Vs. Sk. Saber Ali & Anr. reported in 2016 (1) W.B.L.R (Cal)
133 by which it has been held that even when the entire share of a co-
sharer in the plot of a land is transferred to any person other than a
raiyat in the said plot of land, the application for pre-emption under Section
8 of the Act, 1955 would be maintainable. It is therefore submitted that D
the First Appellate Court rightly set aside the order passed by the learned
Trial Court and allowed the pre-emption application, which is rightly not
interfered with by the High Court.
4.1 It is submitted that whether an application under Section 8
would be maintainable when a co-sharer of a plot of land transfers his E
entire share to any person other than a raiyat in the said plot of land, is
answered in the affirmative by the Larger Bench of the High Court in
the case of Naymul Haque and Ors. Vs. Allauddin Sk. and Ors.
reported in 2019(1)CLJ(CAL)488.
4.2 Now, so far as the submission /contention on behalf of the F
appellant that as the pre-emptors did not deposit the entire sale
consideration with 10% higher than the sale consideration and therefore,
the pe-emption application was not maintainable is concerned, it is
vehemently submitted that as such the said contention was not raised
either before the Courts below and/or even before the High Court, and G
it has been raised for the first time before this Court.
4.3 It is further submitted that alongwith the pre-emption
application, the pre-emptors did not deposit the entire sale consideration
with 10% additional sale consideration as the pre-emptors bonafide
believed that the sale consideration mentioned in the sale deed was on a
H
618 SUPREME COURT REPORTS [2022] 3 S.C.R.
A higher side. It is submitted that thereafter the entire sale consideration
with additional 10% has been deposited by the pre-emptors pursuant to
the order passed by the High Court. Therefore, even the condition
mentioned in Section 8 has now been complied with; therefore, the
contention raised now regarding non-deposit of the entire sale
consideration with 10% additional sale consideration shall no longer be
B
available to the appellant.
4.4 Making the above submissions, it is prayed to dismiss the
present appeals.
5. We have heard the learned counsel for the respective parties
C at length.
6. At this outset, it is required to be noted that pre-emptors
submitted the application before the learned Trial Court under Section 5
of the Act, 1955, in respect of the share sold by their sisters. Therefore,
the contesting respondents herein – the original pre-emptors sought to
D exercise their right as pre-emptors under the provisions of the Act, 1955.
The right of the pre-emption has been elaborately dealt with and
considered by a Four Judge Bench of this Court in the case of Bishan
Singh Vs. Khazan Singh, AIR 1958 SC 838, wherein at paragraph
11, it is observed and held as under: -
E “11. … (1) The right of pre-emption is not a right to the thing sold
but a right to the offer of a thing about to be sold. This right is
called the primary or inherent right. (2) The pre-emptor has a
secondary right or a remedial right to follow the thing sold. (3) It
is a right of substitution but not of re-purchase i.e. the pre-emptor
takes the entire bargain and steps into the shoes of the original
F vendee. (4) It is a right to acquire the whole of the property sold
and not a share of the property sold. (5) Preference being the
essence of the right, the plaintiff must have a superior right to that
of the vendee or the person substituted in his place. (6) The right
being a very weak right, it can be defeated by all legitimate
G methods, such as the vendee allowing the claimant of a superior
or equal right being substituted in his place.”
6.1 Thus, as observed and held by this Court in the aforesaid
judgment, the right of pre-emption is “a very weak right”. That being the
character of the right, any provision to enforce such a right must, thus,
be strictly construed. [Barasat Eye Hospital and Ors. (supra)]
H
ABDUL MATIN MALLICK v. SUBRATA BHATTACHARJEE 619
(BANERJEE) AND ORS. [M. R. SHAH, J.]
6.2 The submission/contention on behalf of the pre-emptee that, A
as in the present case, alongwith the pre-emption application, the pre-
emptors did not deposit the entire sale consideration with 10% additional
sale consideration, and therefore their pre-emption application was not
required to be further considered and no further enquiry as contemplated
under Section 9 of the Act, 1955 would be maintainable is concerned,
B
identical question came to be considered by this Court in the case of
Barasat Eye Hospital and Ors. (supra) wherein at paragraphs 23 to
33, it is observed and held as under: -
“23. The historical perspective of this right was set forth by the
Constitution Bench of this Court, as far back as in 1962, in Bhau
Ram case [Bhau Ram v. Baij Nath Singh, AIR 1962 SC 1476]. C
The judgment in Bishan Singh case [Bishan Singh v. Khazan
Singh, AIR 1958 SC 838] preceded the same, where different
views, expressed in respect of this law of pre-emption, have been
set out, and thereafter the position has been summarised. There
is no purpose in repeating the same, but, suffice to say that the D
remedial action in respect of the right of pre-emption is a secondary
right, and that too in the context of the “right being a very weak
right”. It is in this context that it was observed that such a right
can be defeated by all legitimate methods, such as a vendee
allowing the claimant of a superior or equal right to be substituted
in its place. This is not a right where equitable considerations E
would gain ground. In fact, the effect of the right to pre-emption
is that a private contract inter se the parties and that too, in respect
of land, is sought to be interfered with, and substituted by a
purchaser who fortuitously has land in the vicinity to the land being
sold. It is not a case of a co-sharer, which would rest on a different F
ground.
24. The second aspect of importance is that given the aforesaid
position, even the time period for making the deposit, under Section
8(1) of the said Act, has been held to be sacrosanct, in view of the
judgment of this Court in Gopal Sardar case [Gopal G
Sardar v. Karuna Sardar, (2004) 4 SCC 252]. The very provision
of Section 8(1) of the said Act came up for consideration and, as
held in that case, if the time period itself cannot be extended and
if Section 5 of the Limitation Act would not apply, while interpreting
Section 8 of the said Act, then the requirement of deposit of the
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620 SUPREME COURT REPORTS [2022] 3 S.C.R.
A amount along with the application, within the time stipulated is
sacrosanct. The amount to be deposited is not any amount, as
that would give a wide discretion to the pre-emptor, and any pre-
emptor not able to pay the full amount, would always be able to
say that, in his belief, the consideration was much lesser than
what had been set out. If we read the judgment in Gopal Sardar
B
case [Gopal Sardar v. Karuna Sardar, (2004) 4 SCC 252], in
its true enunciation and spirit, there is sanctity attached to both,
the amount and the time-frame. There cannot be sanctity to the
time-frame, incapable of extension even by the Limitation Act,
and yet, there be no sanctity to the amount.
C 25. In the context of the Bihar Land Reforms (Fixation of Ceiling
Area and Acquisition of Surplus Land) Act, 1961, the recent view
of this Court, in the context of the relevant provision (now repealed
[ Vide Section 2 of the Bihar Land Reforms (Fixation of Ceiling
Area and Acquisition of Surplus Land) (Amendment) Act, 2019.]),
D itself puts a precondition for the exercise of the right of pre-emption,
by requiring the deposit of the full stated purchase money and
10% of the purchase amount. In our view, it makes no difference
that the proviso in Section 16(3) of that Act states that “… no
such application shall be entertained …”, in the context of filing
of applications, without the deposit of the full amount. We may
E say so because, if we turn to Section 8(1) of the said Act, the right
of pre-emption is activated “on deposit of the consideration money
together with the further sum of 10% of that amount”. Thus, unless
such a deposit is made, the right of a pre-emptor is not even
triggered off. The provisions of Section 8 are explicit and clear in
F their terms.
26. Now turning to Section 9 of the said Act, from which,
apparently, some judgments of the Calcutta High Court have sought
to derive a conclusion that an inquiry into the stated consideration
is envisaged. However, the commencement of sub-section (1) of
G Section 9 is with “on the deposit mentioned in sub-section (1) of
Section 8 being made…” Thus, for anything further to happen
under Section 9 of the said Act, the deposit as envisaged under
Section 8 of the said Act has to be made. It is only then that the
remaining portion of Section 9 of the said Act would come into
play.
H
ABDUL MATIN MALLICK v. SUBRATA BHATTACHARJEE 621
(BANERJEE) AND ORS. [M. R. SHAH, J.]
27. The question now is as to what would be the nature of inquiry A
which has been envisaged to be carried out by the Munsif. If
Section 9, as it reads, is perused, then first, the amount as mentioned
in the sale transaction is to be deposited, as per sub-section (1) of
Section 8 of the said Act. Once that amount is deposited, the next
stage is for the Munsif to give notice of the application to the
B
transferee. The transferee thereafter, when enters appearance
within the time specified, can prove the consideration money paid
for the transfer “and other sums”. Such other sums, if any, are as
“properly paid by him in respect of the land including any sum
paid for annulling encumbrances created prior to the day of transfer,
and rent or revenue, cesses or taxes for any period”. The inquiry, C
thus envisaged, is in respect of the amount sought to be claimed
over and above the stated sale consideration in the document of
sale because, in that eventuality further sums would have to be
called for, from the pre-emptor. In that context, the additional
amount would have to be deposited. Even in the event that a pre-
D
emptor raises doubts regarding the consideration amount, enquiry
into the said aspect can be done only upon payment of the full
amount, along with the application. In this aspect, the phrase “the
remainder, if any, being refunded to the applicant” would include
to mean the repayment of the initial deposit made along with the
application, if considered to be excess. To give any other E
connotation to these sections would make both, the latter part of
Section 8 of the said Act and the inception part of Section 9 of the
said Act, otiose. We do not think such an interpretation can be
countenanced.
28. In our view, when the inquiry is being made by the Munsif, F
whether in respect of the stated consideration, or in respect of
any additional amounts which may be payable, the pre-requisite
of deposit of the amount of the stated consideration under Section
8(1) of the said Act would be required to be fulfilled. The
phraseology “the remainder, if any, being refunded to the applicant”
would have to be understood in that context. The word “remainder” G
is in reference to any amount which, on inquiry about the stated
consideration, may be found to have been deposited in excess,
but it cannot be left at the own whim of the applicant to deposit
any amount, which is deemed proper, but the full amount has to
be deposited, and if found in excess on inquiry, be refunded to the H
applicant.
622 SUPREME COURT REPORTS [2022] 3 S.C.R.
A 29. We are, thus, firmly of the view that the pre-requisite to even
endeavour to exercise this weak right is the deposit of the amount
of sale consideration and the 10% levy on that consideration, as
otherwise, Section 8(1) of the said Act will not be triggered off,
apart from making even the beginning of Section 9(1) of the said
Act otiose.
B
30. We are not inclined to construe the aforesaid provisions
otherwise only on the ground that there are no so-called “penal
provisions” included. The provisions of Sections 8 and 9 of the
said Act must be read as they are. In fact, it is a settled rule of
construction that legislative provisions should be read in their plain
C grammatical connotation, and only in the case of conflicts between
different provisions would an endeavour have to be made to read
them in a manner that they co-exist and no part of the rule is
made superfluous. [British India General Insurance Co.
Ltd. v. Itbar Singh, AIR 1959 SC 1331] The interpretation, as
D we have adopted, would show that really speaking, no part of
either Section 8, or Section 9 of the said Act is made otiose. Even
if an inquiry takes place in the aspect of stated consideration, on a
plea of some fraud or likewise, and if such a finding is reached,
the amount can always be directed to be refunded, if deposited in
excess. However, it cannot be said that a discretion can be left to
E the pre-emptor to deposit whatever amount, in his opinion, is the
appropriate consideration, in order to exercise a right of pre-
emption. The full amount has to be deposited.
31. We may also note that, as a matter of fact, the pre-emptor in
the present case i.e. the respondent has not filed any material to
F substantiate even the plea on the basis of which, even if an inquiry
was held, could a conclusion be reached that the stated
consideration is not the market value of the land.
32. We also believe that to give such a discretion to the pre-emptor,
without deposit of the full consideration, would give rise to
G speculative litigation, where the pre-emptor, by depositing smaller
amounts, can drag on the issue of the vendee exercising rights in
pursuance of the valid sale deed executed. In the present case,
there is a sale deed executed and registered, setting out the
consideration.
H
ABDUL MATIN MALLICK v. SUBRATA BHATTACHARJEE 623
(BANERJEE) AND ORS. [M. R. SHAH, J.]
33. We are of the view that the impugned order and the view A
adopted would make a weak right into a “speculative strong right”,
something which has neither historically, nor in judicial
interpretation been envisaged.”
6.3 Therefore, deposit of the entire sale consideration with
additional 10% of the sale consideration alongwith the pre-emption B
application is a statutory and mandatory requirement and it is a pre-
condition before any further enquiry as contemplated under Section 9 of
the Act is held. In the present case, admittedly, the pre-emptors had not
deposited the entire sale consideration with additional 10% of the sale
consideration alongwith the pre-emption application. The aforesaid
aspects have not been considered either by the First Appellate Court or C
even by the High Court in this case.
7. Now, so far as the submission on behalf of the pre-emptors
that they bonafidely believed that the sale consideration mentioned in
the sale deed is in favour of the vendee, who is an outsider (outside the
family) was higher than the actual sale consideration and therefore, they D
did not deposit the entire sale consideration with additional 10% of the
sale consideration alongwith the pre-emption application is concerned, it
is to be noted that the aforesaid cannot be a ground not to comply with
the condition of deposit as required under Section 8 of the Act, 1955. At
the most, such a dispute can be the subject matter of an enquiry provided E
under Section 9 of the Act. As observed hereinabove, the enquiry under
Section 9 with respect to the sale consideration in the sale deed would
be only after the condition of deposit of entire sale consideration with
additional 10% as provided under Section 8 of the Act has been complied
with.
F
8. Now, so far as the submission on behalf of the pre-emptors
that the contention of non-deposit of the entire sale consideration with
additional 10% of the sale consideration by the pre-emptors was not
raised before the Courts below and has been raised for the first time
before this Court, and therefore the same be not considered/permitted
to be raised now, is concerned, it is to be noted that the said contention G
would go to the root of the matter on maintainability of the pre-emption
application as without complying with the statutory requirements as
mentioned under Section 8 of the Act, 1955, the same is not maintainable.
It is an admitted position that the pre-emptors had not deposited the
entire sale consideration with additional 10% of the sale consideration H
624 SUPREME COURT REPORTS [2022] 3 S.C.R.
A along with the pre-emption application as required under Section 8 of
the Act in the instant case.
In view of the aforesaid admitted position, we have considered
the submission on behalf of the appellant on non-fulfillment of the condition
mentioned in Section 8 of the Act.
B 9. At this stage, it is required to be noted that even the High Court
in the impugned judgment and order has permitted the pre-emptors to
deposit the balance sale consideration. However, faced with the decision
of this Court in the case of Barasat Eye Hospital and Ors. (supra)
and in light of the observations made by us hereinabove that alongwith
C the pre-emption application, the pre-emptors have to deposit the entire
sale consideration with additional 10% and only thereafter the further
enquiry can be conducted as per Section 9 of the Act, 1955 and therefore,
unless and until the same is complied with, the pre-emption application
would not be maintainable, the High Court is not justified in permitting
the pre-emptors to now deposit the balance sale consideration with
D additional 10% while deciding the revision application. Such a direction/
permission/liberty would go against the intent of Section 8 of the Act,
1955.
10. In view of the above and for the reasons stated above, present
appeals succeed. The impugned judgments and orders passed by the
E High Court and that of the First Appellate Court are hereby quashed and
set aside. Consequently, the pre-emption application submitted by the
original pre-emptors – respondent Nos. 1 to 3 herein stands dismissed.
Respondent Nos. 1 to 3 – original pre-emptors are permitted to withdraw
the amount, which they might have deposited either alongwith the pre-
F emption application and/or any subsequent deposit pursuant to the orders
passed by the High Court.
Present appeals are allowed accordingly. However, in the facts
and circumstances of the case, there shall be no order as to costs.
Pending application(s), if any also stands disposed of.
G
Nidhi Jain Appeals allowed.
(Assisted by : Tamana, LCRA)
H
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