Raghunath (D) By LRs. v. Radha Mohan (D) Thr. LRs. & Ors.
Background
A property in Ajmer was sold multiple times, in 1945, 1946, and again on 5 November 1966 (just after Rajasthan's new pre-emption law came into force), before being sold once more on 21 January 1974. The plaintiff, a co-sharer with a right of pre-emption, sued only over the 1974 sale, without ever challenging the earlier 1966 sale. The buyer defended on the ground that the suit was barred by limitation, since the one-year limitation period should have run from the earlier, unchallenged 1966 sale.
Decision Breakdown
The Supreme Court held that the right of pre-emption is a "very weak right" that can be exercised only once: the first time a sale takes place after it accrues. If a person entitled to pre-empt does not exercise that right when an earlier sale occurs, the right is treated as waived and does not revive for every subsequent sale of the same property. Since the plaintiff never challenged the 1966 sale deed, his later suit over the 1974 sale was barred by limitation. The Court set aside the High Court's judgment and restored the trial court and first appellate court orders that had dismissed the suit, ending litigation that had run for 45 years.
Lesson Learnt
A legal right that is not exercised at the first opportunity can be permanently lost: pre-emption rights (and similarly structured "first refusal" type rights) do not automatically renew with every future transaction once waived.