Summary
Co-sharers obtained pre-emption of their sisters’ sale to a stranger, although they had not deposited the full stated consideration plus 10% with their application. Applying Barasat Eye Hospital, the Court held the initial deposit mandatory and a prerequisite to inquiry. Neither their belief that the stated price was excessive nor the High Court’s permission for a later balance deposit cured the defect. Their application was dismissed.
Issues
- Whether failure to deposit the full stated sale consideration plus 10% with the pre-emption application barred further inquiry.
- Whether the admitted deposit defect could be considered for the first time before the Supreme Court or cured by the High Court’s later direction.
Provisions considered
- Sections 8(1) and 9(1), West Bengal Land Reforms Act, 1955Applied the initial deposit requirement as a condition precedent to activation of pre-emption and the subsequent inquiry. (¶ 6.2-9)
Held
- Deposit of the full sale consideration stated in the instrument together with an additional 10% is a statutory prerequisite when seeking pre-emption. The inquiry under section 9 follows that deposit; an applicant cannot select a smaller initial amount on the view that the stated consideration is inflated. Any excess established in the subsequent inquiry may be refunded. (¶ 6.1-7)
- The Court considered the deposit objection despite its being raised for the first time before it because the admitted noncompliance went to the application’s maintainability. Its approach rested on the undisputed absence of the required initial deposit. (¶ 8)
- The High Court could not cure that failure by permitting deposit of the balance consideration and 10% when deciding the revision. Such permission defeated the statutory sequence and the mandatory initial condition. The application failed on this ground, without a separate Supreme Court determination of the competing arguments about transfer of an entire co-sharer’s share. (¶¶ 4-4.3, 6.3, 9-10)
Result
Appeals allowed without costs. The High Court and first appellate court orders set aside and the pre-emption application dismissed. The original pre-emptors may withdraw any sums deposited initially or later under the High Court’s orders. Pending applications disposed of.