Case Note & Summary
The case involves a dispute over the right of pre-emption under the West Bengal Land Reforms Act, 1955. The appellants purchased a plot of land from the raiyat holder for a consideration of Rs. 5,21,000/- as per the registered sale deed dated 27.5.2005. The respondent, a contiguous raiyat, filed an application under Section 8 of the Act for pre-emption, but deposited only Rs. 2,75,000/- (Rs. 2,50,000/- as principal and Rs. 25,000/- as 10% levy), alleging that the actual consideration was only Rs. 2,50,000/- and that the sale deed showed an inflated amount due to collusion. The respondent sought leave to deposit any further sum as determined by the court. The trial court allowed the application, holding that the actual consideration must be proved by the transferee and the balance could be deposited later. The appellate court reversed, holding that the full consideration as per the sale deed must be deposited at the time of filing. The High Court restored the trial court's order, relying on a Division Bench decision and noting the absence of penal consequences for non-deposit. The Supreme Court allowed the appeal, setting aside the High Court's order. The Court held that the right of pre-emption is a statutory right that must be exercised in strict compliance with the conditions prescribed. Section 8(1) requires the pre-emptor to deposit the consideration money together with 10% thereof at the time of filing the application. The consideration money referred to is the amount shown in the sale deed, not the pre-emptor's own assessment. The inquiry under Section 9 is only to verify the consideration and other sums, but the initial deposit must be the full amount. The Court emphasized that allowing a short deposit would defeat the purpose of the provision and cause uncertainty. The Court also noted that the absence of a penal provision for non-deposit does not mean the condition can be ignored. The appeal was allowed, and the respondent's application for pre-emption was dismissed.
Headnote
A) Pre-emption Law - Right of Pre-emption - Deposit of Consideration - Section 8, West Bengal Land Reforms Act, 1955 - The pre-emptor must deposit the full consideration amount as shown in the sale deed at the time of filing the application under Section 8; a short deposit based on the pre-emptor's own assessment is not permissible. The court cannot conduct an inquiry into the actual consideration before the deposit is made. (Paras 10-15) B) Pre-emption Law - Procedure - Inquiry by Court - Section 9, West Bengal Land Reforms Act, 1955 - The inquiry under Section 9 is limited to verifying the consideration paid and other sums, but the initial deposit must be the full consideration as per the sale deed. The court cannot allow a conditional deposit or defer the deposit until after inquiry. (Paras 16-20) C) Pre-emption Law - Interpretation - Strict Compliance - Sections 8 and 9, West Bengal Land Reforms Act, 1955 - The right of pre-emption is a statutory right that must be exercised in strict compliance with the conditions prescribed. The requirement of depositing the full consideration is a condition precedent, and non-compliance renders the application liable to be rejected. (Paras 21-25)
Issue of Consideration
Whether a pre-emptor under Section 8 of the West Bengal Land Reforms Act, 1955 can deposit only a part of the consideration amount as per his own assessment and seek to deposit the balance after inquiry, or whether the full consideration as per the sale deed must be deposited at the time of filing the application.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court order, and dismissed the respondent's pre-emption application. The Court held that the pre-emptor must deposit the full consideration as per the sale deed at the time of filing the application under Section 8 of the West Bengal Land Reforms Act, 1955. The respondent's application was not maintainable due to short deposit.
Law Points
- Pre-emption
- Right of pre-emption
- Deposit of consideration
- Section 8 West Bengal Land Reforms Act
- 1955
- Section 9 West Bengal Land Reforms Act
- Interpretation of statutes
- Strict compliance
