Babu Ram v. Santokh Singh (Deceased) Through His LRs

Civil Appeal · 2019 INSC 335Decided 7 Mar 2019
Civil Appeal No. 2553 of 2019
Justice Uday Umesh Lalit · Justice M.R. Shah

Background

Two brothers, Santokh Singh and Nathu Ram, inherited agricultural land from their father. Nathu Ram later sold his share to an outsider, Babu Ram, instead of offering it first to his brother. Santokh Singh sued, claiming he had a preferential right under Section 22 of the Hindu Succession Act, 1956 to buy back that share before it went to a stranger. The courts below, including the High Court of Himachal Pradesh, ruled in Santokh Singh's favour, and Babu Ram appealed to the Supreme Court.

Decision Breakdown

The core legal question was whether the "preferential right" given to co-heirs under Section 22 of the Hindu Succession Act applies to agricultural land, since state land-reform laws sometimes separately regulate farmland transfers. The Supreme Court held that Section 22's preferential right does apply to agricultural holdings inherited under the Act, reasoning that since the right to inherit itself flows from the Act, the restrictions on how that inherited interest can be transferred also flow from the same Act and are not excluded merely because the property is agricultural. The Court affirmed the High Court's judgment upholding Santokh Singh's preferential right and expressly declared that contrary High Court rulings on this point stand overruled. The appeal was dismissed without costs.

Lesson Learnt

When co-heirs inherit property, including farmland, under the Hindu Succession Act, an heir wishing to sell their share generally must first offer it to the other co-heirs before selling to an outsider; selling directly to a third party can be challenged and undone by the other heirs.

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