1980 JTR(Raj) 211
1981 RRD 68 ; 1980 WLN 212
RAJASTHAN HIGH COURT
C.M.Lodha, Miss Kanta Bhatnagar, JJ.
Sukhdeo Singh and Ors. - Appellant
Versus
Sukhdeo Singh and Ors. - Respondent
D.B. Civil First Appeal No. 96 and 104 of 1970 and 14/71.
Decided On : 5-02-1980
The right of preemption does not accrue upon the transfer of Khatedari rights in agricultural land by a Khatedar tenant.
PREEMPTION - RIGHT OF PREEMPTION - SALE OF KHATEDARI RIGHTS IN AGRICULTURAL LAND - WHETHER RIGHT OF PREEMPTION ACCRUES - RAJASTHAN PREEMPTION ACT, 1966 (RAJASTHAN ACT 15 OF 1966), SECTIONS 2(IV), 2(V), 2(VII), 2(VIII), 3, 4, 5, 6, 14, 15, 38, 39, 40, 41, 42, 43, 45, 54, 213.
Fact of the Case:
The plaintiffs filed suits for preemption in respect of transfer of Khatedari rights in agricultural land. The trial court dismissed the suits holding that no suit for preemption can lie in respect of sale of Khatedari right in agricultural land. The plaintiffs appealed to the High Court.
Finding of the Court:
The High Court held that the right of preemption does not accrue upon the transfer of Khatedari rights in agricultural land by a Khatedar tenant.
Issues: Whether the right of preemption accrues upon the transfer of Khatedari rights in agricultural land by a Khatedar tenant.
Ratio Decidendi: The Court held that a Khatedar tenant is not the owner of the holding under his occupation, though his rights may be larger than the rights of a Ghair Khatedar tenant. Therefore, the transfer of Khatedari rights cannot be said to be a transfer of ownership in immovable property and hence, the right of preemption does not accrue.
Final Decision: The appeals were dismissed.
PREEMPTION - RIGHT OF PREEMPTION - SALE OF KHATEDARI RIGHTS IN AGRICULTURAL LAND - WHETHER RIGHT OF PREEMPTION ACCRUES - RAJASTHAN PREEMPTION ACT, 1966 (RAJASTHAN ACT 15 OF 1966), SECTIONS 2(IV), 2(V), 2(VII), 2(VIII), 3, 4, 5, 6, 14, 15, 38, 39, 40, 41, 42, 43, 45, 54, 213.
Fact of the Case:
The plaintiffs filed suits for preemption in respect of transfer of Khatedari rights in agricultural land. The trial court dismissed the suits holding that no suit for preemption can lie in respect of sale of Khatedari right in agricultural land. The plaintiffs appealed to the High Court.
Finding of the Court:
The High Court held that the right of preemption does not accrue upon the transfer of Khatedari rights in agricultural land by a Khatedar tenant.
Issues: Whether the right of preemption accrues upon the transfer of Khatedari rights in agricultural land by a Khatedar tenant.
Ratio Decidendi: The Court held that a Khatedar tenant is not the owner of the holding under his occupation, though his rights may be larger than the rights of a Ghair Khatedar tenant. Therefore, the transfer of Khatedari rights cannot be said to be a transfer of ownership in immovable property and hence, the right of preemption does not accrue.
Final Decision: The appeals were dismissed.
JUDGMENT
Section 2(iv) Immovable property meant land of house property wherever situate in the State;
Section 2(v). - 'Land' includes things attached to the earth or permanently fastened to anything attached to the earth, when sold or foreclosed along with the land to which they are attached but not otherwise;
Section 2(vii). - 'Sale' means a transfer of ownership in Immovable property in exchange for a price paid or promised or partly promised;
Section 2(viii). - 'transfer' means a sale, or a mortgage where the final decree for foreclosure in respect thereof has been passed.
Section 3 - 'Right of preemption' defined the 'right of preemption' is the right accruing under Section 4 of this Act, upon and to be substituted as the transferee thereof in place of and in preference to the original transferee and preemption' means a person having a right of preemption.
Section 4. - Cases in which right of preemption accrues: subject to the provisions contained in Section 5, the right of preemption shall, upon the transfer of any Immovable property, accrue to the persons mentioned in Section 6
Section 5 Cases in which right of preemption does not accrue: (1) The right of preemption shall not accrue
(a) upon the transfer or a shop, karta, sarai, musafirkhana, dharamshala, temple, mosque or other similar buildings; or
(b) upon a sale
(i) by or to the Central or the State Government.
(ii) by or to any local authority, or
(iii) to any company under the provisions of part VII of the Rajasthan Land Acquisition Act, 1953 Rajasthan Act 24 of (1953), or
(iv) for the purpose of manufacturing industry, or
(c) on a transfer to any of the persons mentioned in Section 6 to any person who has an equal or inferior right of preemption; or
(d) In the case of a transfer by joint owners, to a part to such transfer; or
(e) in respect of
(i) any sale in execution of a decree of a civil or revenue court, or
(ii) any sale in default of payment of land revenue or of any sum legally recoverable as an arrear of land revenue:
Provided that, in the case contemplated by Sub-clause (iv) of Clause (b) the right of preemption that accrue, subject to the other provisions of this Act, on the expiry of one year from the date of the registration of the tale deed, in case such sale is made without a registered deed from the date of taking physical possession of the immovable property sale if such property has not been used in good faith for the purpose for which it was ostensibly purchased.
(2) Nothing in this Act shall.
(a) effect the provisions of Rule 88 of Order 21 of the Code of Civil Procedure 1908 (Central Act 5 of 1908) or the provisions of Rajasthan Tenancy Act, 1955 Rajasthan Act 3 of 1955) or of the Rajasthan Land Revenue Act, 1956 (Raj. Act 15 of 1955), or of the Rajasthan Colonisation Act 1964 (Rajasthan Act 27 of 1954), or
(b) confer on any person the right of preemption to respect of any immovable property which such person is not entitled to purchase under any law for the time being in force.
Section 6. Person to whom right of preemption 'accrues-(1) Subject to the other provisions of this Act, the right of preemption in respect of any immovable property transferred shall accrue to, and vest in, the following classes of persons, namely.
(1) co-sharers of or partners in the property transferred, (ii) owners of other immovable property with a staircase or an entrance or other right or amenity common to such other property and the property transferred.
(2) Among the different classes of persons mentioned in Sub-section (1), persons of the first class will exclude those of the other classes persons of the second class will exclude those of the third class
(3) Among persons of the same class claiming the right of preemption, the person nearer in relationship to the person whose property is transferred will exclude the more remote.
(4) Where two or more persons of the same class, claiming the right of preemption are equally entitled thereto in all respects, the court may, -
(a) determine, by drawing lots, the person in whose favour preemption may be decreed, or
(b) after taking into consideration the circumstances of the case and the respective requirements of all such persons:
(i) determine which of such persons may be allowed to exercise the right in preference to rest, or
(ii) direct the division of the property equally among all such persons, each of them paying an equal share of the consideration for the transfer."
A glance at the above provisions of the Act of 1966 makes it clear that in order that a preempt or may enforce the right of preemption, there must be a transfer of immovable property. In other word, in order to give rise to preemption, it is necessary that there must be either sale or a mortgage where the final decree for foreclosure in respect thereof has been passed. In the present case, we are required to deal with a question of sale and therefore, we must address ourselves to the definition of the term "sale". "sale" has been defined to mean a transfer of ownership in immovable property in exchange for a price paid or promised.
(a) in the Abu area, a permanent tenant or a protected tenant;
(b) in the Ajmer area, an ex proprietary tenant or an occupancy tenant or a hereditary tenant or a non occupancy tenant or a Bhooswami or a Kahtedar
(c) in the Sunel area, an ex-proprietary tenant or a pakka tenant or an ordinary tenant,
(d) a co-tenant (e) a grove-holder
(f) a village servant (g) a tenant of Khudkashi (h) a mortgagee of tenancy rights, and (I) a sub-tenant;
but shall not include a grantee at a favourable rate of rent or an ijaredar or a thekadar or a trespasser.Section 14. Class of tenants:- For the purposes of this Act, there shall be the following classes of tenants, namely:
(a) Khatedar tenants,
(aa) Maliks; and
(b) Tenants of Khudkashi, and
(c) Ghair Khatedar tenants.
"Section 15. Khatedar tenants (1) Subject to the provisions of Section 16 and Clause (d) of Sub-section (1) of Section 180 every person who, at the commencement of this Act, is a tenant of land otherwise than as a sub-tenant or a tenant of Khudkasht or who is, after the commencement of this Act, admitted as a tenant otherwise than as a sub-tenant or a tenant of Khudkasht or an allottee of land under, and in accordance with, rules made under Section 101 of the Rajasthan Land Revenue Act, 1956 (Rajasthan Act 15 of 1956 or who acquires Khatedari rights in land in accordance with the provisions of this Act or of the Rajasthan Land Reforms and Resumption of Jagirs Act, 1952 (Rajasthan Act VI of 1952) or of any other law for the time being in force shall be a Khatedari tenant and shall, subject to the provisions of this Act be entitled to all the rights conferred, and be subject to all the liabilities imposed on Khatedar tenants by this Act:
Provided that no Khatedari rights shall accrue under this section to any tenant, to whom land is or has been let out temporarily in Gang Canal, Bhakra Chambal or Jawai Project area, or any other area notified in this behalf by the State Government.
(2) Notwithstanding anything contained in Sub-section (1), Khatedari rights shall not accrue thereunder to any person to whom and had been let out before the commencement of this Act by the State Government in furtherance of the 'Grow More Food Compaign' or under special order or subject to some specified conditions or in pursuance of some statutory or non-statutory rules and who shall have, before such commencement made & default in securing the objective of such complain or a breach of any such order, condition or rule.
(3) Any person referred to in Sub-section (2) may within three years from the date of commencement of this Act and on payment of a court-fee of twenty-five naye paise apply to the Assistant Collector having jurisdiction praying for a declaration that he acquired Khatedari rights under Sub-section (1) in the land held by him.
(4) Such application may be made on any of the following grounds, namely:
(a) that the land held by him was, let out to him after the commencement of this Act.
(b) that it was not let out to him in any of the circumstances specified in Sub-section (2);
(c) that when the land was so Set out to him, he was cot apprised of such circumstances;
(d) that he had before such commencement, made DO default or breach of the nature specified in Sub-section (2).
(5) The Assistant Collector shall, upon the presentation of an application under Sub-section (3), make inquiry in the prescribed manner and afford reasonable opportunity to the applicant of being heard and shall, if he does not reject the application declare the applicant to have became a khatedar tenant of his holding in accordance with the subject to the provision of Sub-section (1)."
Section 38. Interest of tenants - Save as provided in this Act, the interest of a tenant in his holding is heritable but not transferable.
Section 39. Bequest. A Khatedar tenant may, by will bequeath his interest in the holding or part thereof in accordance with the personal law to which he is subject.
Section 40. Succession of tenants. When a tenant dies intestate, his interest in his holding shall devolve in accordance with the personal law to which he was subject at the time of his death.
Section 41. Transferability of Khatedar's interest. The interest of a Khatedar tenant shall be transferable, otherwise than by way of sublease, subject to the condition specified in Sections 42 and 43,
Section 41. General restrictions on sale, gift and request. - The sale, gift or bequest by a Khatedar tenant of his interest in the whole or part of his holding shall be void, if-
(a) it is not of a survey number except when the area of the survey number so sold, gifted or bequeathed is in excess of the minimum area prescribed for the purpose of Sub-section (1) of Section 53, in which case also the area not transferred shall not be fragment.
Provided that this restriction shall not apply if the area so transferred becomes merged into a contiguous survey number.
Provided further that this restriction shall not apply if the sale, gift or bequest is of the entire interest of a tenant in the survey number;
(b) such sale, gift or bequest is by a member of a Scheduled Caste in favour of a person who is not a member of the Scheduled Caste, or by a member of a Scheduled Tribe in favour of a person who is not a member of the Scheduled Tribe,"
Section 43. Mortgage. - (1) A khatedar tenant, or, with the general or special permission of the State Government or any officer authorised by it in this behalf, a Ghair Khatedar tenant, may hypothecate or mortgage his interest in the whole or part of his holding for the purpose of obtaining loan from the State Government or a Land Development Bank of defined in the Rajasthan Cooperative Societies Act 195 (Act 13 of 1965) or a Co operative society registered or deemed to be registered as such under the said Act or any Scheduled Bank or any other institution notified by the State Government in that behalf.
(2) A Khatedar tenant may transfer his interest in the whole or part of his holding in the form of usufructuary mortgage to any person but such mortgage must provide that the mortgage amount shall be deemed to be paid off by the usufruct of the property within a specified time not exceeding ten years, and in the absence of such period being specified such mortgage shall be deemed to be for ten years
Provided that on or after the publication of the Rajasthan Tenancy (Amendment) Act, 1970, in the official Gazette no Khatedar tenant being a member of a Scheduled Caste or Tribe shall so transfer his rights in the whole or a part of his holding to any person who his not a member of a scheduled caste or a scheduled tribe.
(3) A usufructuary mortgage under Sub-section (2) shall, upon the expiry of the period mentioned herein before, be deemed to have been satisfied in full without any payment what so ever by the mortgagor, and the mortgage debt shall, be deemed to have been extinguished and the mortgaged land redeemed and the possession thereof shall be delivered by the mortgagee to the mortgagor free from all encumbrances.
(4) A usufructuary mortgage of any land made before the commencement of this Act shall, upon the expiry of the period mentioned in the mortgage deed or twenty years from the date of execution thereof, whichever period is less, be deemed to have been satisfied in full without any payment whatsoever by the mortgagor and the mortgage debt shall accordingly be deemed to have been extinguished and thereupon the mortgaged land shall be redeemed and possession thereof shall be delivered to the mortgagor free from all encumbrances.
(6) If the mortgagee does not so redeliver the possession of the land mortgaged, he shall be deemed to be a trespasser and liable to ejectment in accordance with Sub-section (1) 183.
Section 45 Restriction on letting and sub-letting:
(1) No holder of Khudkasht shall let and no Khatedar tenant or fail holding at any one time for a term exceeding five years.
(2) Where a lease or sub-lease has once been granted for any term under Sub-section (1), no further lease or sub lease, as the case may be in respect of the same land be granted within two years of the expiry of the first mentioned shall lease or sub lease.
(3) No Ghair Khatedar tenant shall sub-let the whole or any part of his holding for a term exceeding one year.
(4) No sub-tenant or tenant of Khudkasht shall sublet the whole or any part of his holding except in circumstances mentioned in Section 46 Section.
54. Sale of holding in it certain cases: (1), Wherever in any suit for the division of one or more than one holding the court finds that such division among the persons entitled thereto will result in shares of less area then the minimum prescribed under Sub-section (1) of Section 53, of the court shall, instead of proceedings to divide the holding or holdings, direct a sale of the same and a distribution of the proceeds thereof among such persons.
(2) when the sale of a holding is ordered under Sub-section (1), the court shall order a valuation of the same to be made, and offer it for sale in order of priority to the following persons:
(a) a co-tenant of such holding,
(b) a sub-tenant of such holding,
(c) an agricultural or other labourer or servant of the village community who permanently resides in village,
(d) a person not being the landholder who cultivates land and resides in the village,
(e) the landholder.
Provided that where two or more persons, belonging to the same class being a class mentioned in Clauses (a), (b), (c) or (d) claim to take such interest preference shall be given to the claimant who cultivates the smaller area In the village; and where two or more claimants cultivate the same area of claim to take such interest, the claim shall be decided In the prescribed manner.
Provided further that in the case of such sale of the holding of a member of a scheduled caste or a scheduled tribe preference shall be given among rival claimants belonging to the classes mentioned In Clauses (a), (b), (c), and (d) to the claimants of a particular class who is a member of scheduled caste or a scheduled tribe."
Section 213:- Sale of Khatedar tenant's interest in execution of decree for arrears of rent: (1) Subject to the provision of Section 42, the interest of a Khatedar tenant in his holding or in any part thereof may be sold in execution of a decree for arrears of the rent of such holding and unless such interest is purchased by the landholder thereof, the purchaser shall, subject to the provisions of Sub-section (b), have the same Interest in such holding or part and be subject to the same liabilities in respect thereof as the tenant.
(2) Before selling the interest of a Khatedar tenant in a part only of his holding in accordance with Sub-section (1), the court executing the decree shall, in accordance with the rules made by the Board, , distribute the rent of the holding over such part and the remainder of the holding.
(3) When such interest is sold
(a) a sub tenant, or
(b) an agricultural or other labourer or a
(c) village servant, who resides in the village, or
(c) any agriculturist who resides in the village, or
(d) the landholder, other than the State Government or an EState holder, or
(e) the estate holder, may, in the above order or priority, within fifteen days of the date of sale, claim to take such interest, preference shall be given to the claimant who cultivate the smallest area in the village & when they cultivate an equal area the claim shall be determined in the prescribed manner.
Provided further that if two or more persons belonging to the same class mentioned in Clause (b) claim to take such interest, the claim shall be determined in the prescribed manner.
(4) Notwithstanding anything contained in Sub-section (3) where the Khatedar tenant whose interest is sold under this section is a member of a Scheduled Caste or a Scheduled Tribe, preference among rival claimants belonging to any of the classes mentioned in Clause (a), (b) and (c) shall be given to the claimant of particular class who is a member of a Scheduled Caste or Scheduled Tribe."
"The rights of the owner, then can be contrasted with the lesser rights of the possessor and of the encumbrancer. The owner's rights are indeterminate and residuary In a way in which these other rights are not. As we have seen, the possessor's rights do not extend in time to infinity as do the owner's and on the extinction of the possessor's rights those of the owner revive. As compared with the rights of an encumbrancer those of the owner are again Indeterminate and residuary but on a different plane. An encumbrancer is one who has a right over the property of another."
Again, summing up the position the author observed as follows at page 110: (P.415)
Summing up the conclusion to which we have attained, we may define the rights of ownership in a material thing as the general, permanent, and inheritable right to the uses of that thing.
"The ownership of a material thing means the ownership of a jus in re propria in respect of that thing... The ownership of a jus in realiena Is always incorporeal, even though the object of that right is a corporeal thing... In its full and normal compass a jus. in re propria over a material object is a right to the entirety of the lawful uses of that object. It is a general right of use and disposal, all jura in realiena being merely special and limited rights derogation from it in special respects. It is only this absolute and comprehensive right - this universum jus that is identified with its object... This compass, however, may be limited to any extent by the adverse of jura in realiena' vested in other persons. The rights of the owner of a thing may be all out eaten up by the' dominant rights of lessees, mortgagees, another encumbrances. His ownership may be reduced to a mere name rather than a reality. Yet he nonetheless remains the owner of the thing, while all the others own nothing more than rights over it.
17. In
In fact, the plaintiffs themselves accept in their plaint that they were recorded as Khadamdars or bapidars, that is, a particular class of tenants in the settlement of the State of Mewar which was made in Smt. 1998. Thereafter when the Act of 1955 came into force, the plaintiffs at the best could have become Khatedar tenants thereunder, and no more, and it is this right only which they can and do essentially and substantially claim in these suits against the defendants The question is whether a right like this can be treated or accepted to be a proprietary right. The answer to this question can only be in the negative As I look at the matter, to say that a person who had been a tenant with respect to certain land or could have thereafter been recorded as such, is a proprietor of, or has proprietary light in, that land is a contradiction in terms. It may be that the Bapidar of the older days in Mewar or a Khatedar under the Act of 1955 enjoys certain rights as respects the transferability of heritability of the lands under his occupation but it will be an; entire misnomer to call him a proprietor of such lands. It also appears from the plaint in each of these that these tenants had been paying rent to the State, and this is yet another ground for coming to the conclusion that they are not proprietors of lands.
Examining the present case in the light of these principles, it must be observed that the defendants were merely khatedar tenants of the land in dispute. They had no proprietary rights in the land, and therefore, there could be no question of their attempting to sell the land. It is not infrequent that it an instrument of transfer of "interest in land' the term 'land is sometimes loosely used for' interest in land' and I think it is in this loose manner that the term 'land' has been used in the sale deed Ex. 2.
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