The Punjab Pre-emption Act, 1913

1. (1) This Act may be called the Punjab Pre-emption Act, 1913.
2. (2) It extends to [Haryana].

1. (1) The Punjab Pre-emption Act, 1905, is hereby repealed.
2. (2) Nothing in this Act shall affect the provisions of Order 21, rule 88, of the Code of Civil Procedure, 1908, or sections 53 and 54 of the Punjab Tenancy Act, 1887.
3. (3) Notwithstanding anything to the contrary in section 4 of the Punjab General Clauses Act, 1898, the Courts shall in all suits, appeals and proceedings pending at the commencement of this Act give effect, so far as may be, to the procedure prescribed by this Act.

In this Act, unless a different intention appears from the subject or context,—

1. (1) 'agricultural land' shall mean land as defined in the Punjab Alienation of Land Act, 1900, (as amended by Act I of 1907), but shall not include the right of a mortgagee, whether usufructuary or not, in such land;
2. (2) 'village immovable property' shall mean immovable property within the limits of a village, other than agricultural land;
3. (3) 'urban immovable property' shall mean immovable property within the limits of a town, other than agricultural land. For the purposes of this Act a specified place shall be deemed to be a

Subject to the provisions of section 5, the right of pre-emption shall mean the right of the persons hereafter mentioned or referred to, to acquire agricultural land or village immovable property or urban immovable property in preference to other persons, and it arises in respect of such land only in the case of sales and in respect of such property in the case of sales or of foreclosures of the right to redeem the same.

Explanation.— For the purposes of this section the expression “waste land” means land recorded as banjar of any kind in revenue records and such ghair mumkin lands as are reclaimable.

No right of pre-emption shall exist in respect of—

1. (a) a shop, serai or katra;
2. (b) a dharmsala, mosque or other similar building;
3. (c) agricultural land being waste land reclaimed by the vendee by cultivation;
4. (d) any other property which the State Government may by notification in the Official Gazette declare to be exempt from the law of pre-emption.

A right of pre-emption shall exist in respect of village immovable property, and, subject to the provisions of clause

1. (b) of section 5, in respect of agricultural land, but every such right shall be subject to all the provisions and limitations in this Act contained.].

Subject to the provisions of section 5 a right of pre-emption shall exist in respect of urban immovable property in any town or sub-division of a town when a custom of pre-emption is proved to have been in existence in such town or sub-division at the time of the commencement of this Act, and not otherwise.

1. (1) Except as may otherwise be declared in the case of any agricultural land in a notification by the [State] Government, no right of pre-emption shall exist within any cantonment.
2. (2) The [State] Government may declare by notification that in any local area or with respect to any land or property or class of land or property or with respect to any sale or class of sales, no right of pre-emption or only such limited right as that the [State]

Exclusion of pre-emption in respect of certain alienations Notwithstanding anything in this Act, a right of pre-emption shall not exist in respect of any sale made by or to [Government] or by or to any local authority or to any company under the provisions of part VII of the Land Acquisition Act, 1894, or in respect of any sale sanctioned by the Deputy Commissioner under section 3

1. (2) of the [Punjab Alienation of Land Act, 1900.

In the case of a sale by joint-owners, no party to such sale shall be permitted to claim a right of pre-emption.

No sum deposited in or paid into Court by a pre-emptor under the provisions of this Act or of the Code of Civil Procedure shall, while it is in the custody of the Court, be liable to attachment in execution of a decree, or order of a Civil, Criminal or Revenue Court, or of a Revenue Officer.

In respect of all sales and foreclosures not completed before the commencement of this Act right of pre-emption shall be determined by the provisions of this Act; but in respect of all sales and foreclosures completed before the commencement of this Act the right of pre-emption shall be determined by the law in force at the time of such completion.

Whenever according to the provisions of this Act a right of pre-emption vests in any class or group of persons the right may be exercised by all the members of such class or group jointly, and, if not exercised by them all jointly by any two or more of them jointly, and, if not exercised by any two or more of them jointly, by them severally.

No person other than a person who was at the date of sale a member of an agricultural tribe in the same group of agricultural tribes as the vendor shall have a right of pre-emption in respect of agricultural land sold by a member of an agricultural tribe.

[The right of pre-emption in respect of sale of agricultural land and village immovable property shall vest in the tenant who holds under tenancy of the vendor or vendors the land or property sold or a part thereof.]

The right of pre-emption in respect of urban immovable property shall vest in the tenant who holds under tenancy of the vendor the property sold or a part thereof.

Where several pre-emptors are found by the Court to be equally, entitled to the right of pre-emption, the said right shall be exercised—

1. (a) if they claim as co-sharers, in proportion among themselves to the shares they already hold in the land or property ;
2. (b) if they claim as heirs, whether co-sharers or not, in proportion among themselves to the shares in which but for such sale they would inherit the land or property in the event of the vendor's decease without other heirs ;
3. (c) [Omitted]
4. (d) [Omitted]
5. (e) in any other case, by such pre-emptors in equal shares.

In the case of a foreclosure of the right to redeem village immovable property, the provisions of sections 15 and 17 and in the case of a foreclosures of the right to redeem urban immovable property, the provisions of sections 16 and 17 shall be construed by the Court with such alterations, not affecting the substance, as may be necessary or proper to adopt them to the matter before the Court.

When any person proposes to sell any agricultural land or village immovable property or urban immovable property or to foreclose the right to redeem any village immovable property or urban immovable property, in respect of which any persons have a right of pre-emption, he may give notice to all such persons of the price at which he is willing to sell such land or property or of the amount due in respect of the mortgage, as the case may be. Such notice shall be given through any Court within the local limits of whose jurisdiction such land or property or any part thereof is situate, and shall be deemed sufficiently given if it be stick up on the chaupal or other public place of the village, town or place in which the land or property is situate.

The right of pre-emption of any person shall be extinguished unless such person shall, within the period of three months from the date on which the notice under section 19 is duly given or within such further period, not exceeding one year from such date, as the Court may allow, present to the Court a notice for service on the vendor or mortgagee of his intention to enforce his right of pre-emption. Such notice shall state whether the pre-emptor accepts the price or amount due on the footing of the mortgage as correct or not, and if not, what sum he is willing to pay.

Suits for pre-emption Any person entitled to a right of pre-emption may, when the sale or foreclosure has been completed, bring a suit to enforce that right.

21-A. When improvement of status of a vendor after institution of suit not to affect right of pre-emptor [Any improvement, otherwise than through inheritance or succession, made, in the status of a vendee defendant after the institution of a suit for pre-emption shall not affect the right of the pre-emptor plaintiff in such suit.]

1. (1) In every suit for pre-emption the Court shall, at or at any time before, the settlement of issues, require the plaintiff to deposit in Court such sum as does not, in the opinion of the Court, exceed one-fifth of the probable value of the land or property, or require the plaintiff to give security to the satisfaction of the Court for the payment, if required, of a sum not exceeding such probable value within such time as the Court may fix in such order.
2. (2) In any appeal the Appellate Court may at any time exercise the powers conferred on a Court under sub-section (1).
3. (3) Every sum deposited or secured under sub-section
4. (1) or
5. (2) shall be available for the discharge of costs.
6. (4) If the plaintiff fails within the time fixed by the Court or within such further time as the Court may allow to make the deposit or furnish the security mentioned in sub-section
7. (1) or
8. (2) his plaint shall be rejected or his appeal dismissed, as the case may be. (5)
   • (a) If any sum so deposited is withdrawn by the plaintiff, the suit or appeal shall be dismissed.
   • (b) If any security so furnished for any cause becomes void or insufficient, the Court shall order the plaintiff to furnish fresh security or to increase the security, as the case may be, within a time to be fixed by the Court, and if the plaintiff fails to comply with such order, the suit or appeal shall be dismissed.
9. (6) The estimate of the probable value made for the purpose of sub-section
10. (1) shall not affect any decision subsequently come to as to what is the market value of the land or property.

No decree shall be granted in a suit for pre-emption in respect of the sale of agricultural land until, the plaintiff has satisfied the Court —

1. (a) that the sale in respect of which pre-emption is claimed is not in contravention of the [Punjab Alienation of Land Act, 1900; and
2. (b) that he is not debarred by the provisions of section 14 of this Act from exercising the right of pre-emption.

In a suit for pre-emption in respect of a sale of agricultural land, if the Court finds that the sales is in contravention of the [Punjab Alienation of Land Act, 1900, the Court shall dismiss the suit.

1. (1) If in the case of a sale the parties are not agreed as to the price at which the pre-emptor shall exercise his right of pre-emption, the Court shall determine whether the price at which the sale purports to have taken place has been fixed in good faith or paid, and if it finds, that the price was not so fixed or paid, it shall fix as the price for the purposes of the suit the market value of the land or property.
2. (2) If the Court finds that the price was fixed in good faith or paid, it shall fix such price as the price for the purposes of the suit : Provided that when the price at which the sale purports to have taken place represents entirely or mainly a debt greatly exceeding in amount the market value of the property, the Court shall fix the market value as the price of the land or property for the purposes of the suit, and may put the vendee to his option either to accept such value as the full equivalent of the consideration for the original sale or to have the said sale cancelled, and the vendor and vendee restored to their original position.

If in case of a foreclosure the parties are not agreed as to the amount at which the pre-emptor shall exercise his right of pre-emption, the Court shall determine whether the amount claimed by the mortgagee is due under the terms of the mortgage, and whether it is claimed in good faith. If it finds that the amount is so due and is claimed in good faith, it shall fix such amount as the price for the purposes of the suit; but if it finds that the amount is not so due, or, though due, is not claimed in good faith, it shall fix the price for the purposes of the suit the market value of the property.

For the purpose of determining the market value, the Court may consider the following among other matters as evidence of such value —

1. (a) the price or value actually received or to be received by the vendor from the vendee or the amount really due on the footing of the mortgage, as the case may be;
2. (b) the amount of interest included in such price, value or amount;
3. (c) the estimated amount of the average annual net assets of the land or property;
4. (d) the land revenue assessed upon the land or property;
5. (e) the value of similar land or property in the neighbourhood;
6. (f) the value of the land or property as shown by previous sales or mortgages.

When more suits than one arising out of the same sale or foreclosure are pending, the plaintiff in each suit shall be joined as defendant in each of the other suit, and in deciding the suits the Court shall in each decree state the order in which each claimant is entitled to exercise his right.

28-A. Postponement of decision of pre-emption suits in certain cases

1. (1) If in any suit for pre-emption any person bases a claim or plea on a right of pre-emption derived from the ownership of agricultural land or other immovable property, and the title to such land or property is liale to be defeated by the enforcement of a right of pre-emption with respect to it, the court shall not decide the claim or plea until the period of limitation for the enforcement of such right of pre-emption has expired and the suits for pre-emption (if any) instituted with respect to the land or property during the period have been finally decided.
2. (2) If the ownership of agricultural land or other immovable property is lost by the enforcement of a right of pre-emption, the Court shall disallow the claim or plea based upon the right of the pre-emption derived therefrom.

1. (1) The Court shall send to the Deputy Commissioner a copy of every original decree granting pre-emption other than a decree granting pre-emption in respect of a building or site of a building in a town or sub-division of a town, and the Deputy Commissioner may, within two months from the date of the receipt of such copy, apply to the Court to which the appeal in the pre-emption suit would lie, or if no appeal lies, to the Divisional Court for revision of the decree on the ground that the decision of the Court of first instance is contrary to the provisions of the 'Punjab Alienation of Land Act, 1900.
2. (2) No stamp shall be required upon such application, and the provision of the Code of Civil Procedure as regards appeals shall apply, as far as may be, to the procedure of the Appellate Court on receipt of such application.
3. (3) No appearance by or on behalf of the Deputy Commissioner shall be deemed necessary for the disposal of the application.

In any case not provided for by article 10 of the Second Schedule of the Indian Limitation Act, 1908, the period of limitation in a suit to enforce a right of pre-emption under the provisions of this Act shall, notwithstanding anything in article 120 of the said schedule, be one year —

1. (1) in the case of a sale of agricultural land or of village immovable property; from the date of the attestation (if any) of the sale by a Revenue Officer having jurisdiction in the register of mutations maintained under the Punjab Land Revenue Act, 1887; or from the date of which the vendee takes under the sale physical possession of any part of such land or property; whichever date shall be the earlier;
2. (2) in the case of a foreclosure of the right to redeem village immovable property or urban immovable property; from the date on which the title of the mortgagee to the property becomes absolute;
3. (3) in the case of sale of urban immovable property, from the date on which the vendee takes under the sale physical possession of any part of the property.

[No court shall pass a decree in a suit for pre-emption whether instituted before or after the commencement of the Punjab Pre-emption (Amendment) Act, 1960, which is inconsistent with the provisions of the said Act.]