(1) This Act may be called the Punjab Pre-emption Act, 1913.

(2) It extends to 7Punjab.

(1) The Punjab Pre-emption Act, 1905, is repealed.

(2) Nothing in this Act shall affect the provisions of Order 21, rule 88, of the 8Code of Civil Procedure, 1908 (V of 1908), or sections 53 and 54 of the Punjab Tenancy Act, 1887 (XVI of 1887).

(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) agricultural land shall mean land as defined in the 9Punjab Alienation of Land Act, 1900 (as amended by Act I of 1907 (XIII of 1900)), but shall not include the rights of a mortgagee, whether usufructuary or not, in such land;

(2) village immoveable property shall mean immoveable property within the limits of a village other than agricultural land;

(3) urban immoveable property shall mean immoveable 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 town (a) if so declared by the 10[State] Government by notification in the Official Gazette, or (b) if so found by the Courts;

(4) member of an agricultural tribe and group of agricultural tribes shall have the meanings assigned to them respectively under the 11Punjab Alienation of Land Act, 1900 (XIII of 1900).

(5) sale shall not include

(a) a sale in execution of a decree for money or of an order of a Civil, Criminal or Revenue Court or of a Revenue officer,

(b) the creation of an occupancy tenancy by a landlord, whether for consideration or otherwise;

(6) any expression which is defined by section 3 of the 12Punjab Land Revenue Act, 1887 (XVI of 1887), shall, subject to the provisions of this Act, have the meaning assigned to it in the said section.

Chapter-II

The right of pre-emption shall mean the right of a person to acquire agricultural land or village immoveable property or urban immoveable 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 only in the case of sales or of foreclosures of the right to redeem such property.

Nothing in this section shall prevent a Court from holding that an alienation purporting to be other than a sale is in effect a sale.

13[ No right of Pre-emption shall exist in respect

(a) the sale of or foreclosure of a right to redeem

(i) a shop, serai or katra;

(ii) a dharmsala, mosque or other similar building; or

(b) the sale of agricultural land being waste land reclaimed by the vendee.

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.]

14[ A right of pre-emption shall exist in respect of village immovable property and, subject to the provisions of clause (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 immoveable 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) Except as may otherwise be declared in the case of any agricultural land in a notification by the 15[State] Government, no right of pre-emption shall exist within any cantonment.

(2) The 16[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 the 16[State] Government may specify, shall exist.

Notwithstanding anything in this Act, a right of pre-emption shall not exist in respect of any sale made by or to 17[Government] or by or to any local authority or to any company under the provisions of Part VII of the 18Land Acquisition Act, 1894 (I of 1894), or in respect of any sale sanctioned by the Deputy Commissioner under section 3(2) of the 19Punjab Alienation of Land Act, 1900 (XIII of 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 20Code of Civil Procedure (V of 1908) 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.

Chapter-III

In respect of all sales and foreclosures not completed before the commencement of this Act the 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.

2115. Persons in whom right of pre-emption vests in respect of sales of agricultural land and village immovable property. (1) The right of pre-emption in respect of agricultural land and village immovable property shall vest

(a) Where the sale is by sole owner,

FIRST, in the son or daughter or son's son or daughter's son of the vendor;

SECONDLY, in the brother or brother's son of the vendor;

THIRDLY, in the father's brother or father's brother's son of the vendor;

FOURTHLY, in the tenant who holds under tenancy of the vendor the land or property sold or a part thereof;

(b) where the sale is of a share out of joint land or property and is not made by all the co-sharers jointly,

FIRST, in the sons or daughters or sons' sons or daughters' sons of the vendor or vendors;

SECONDLY, in the brothers or brother's sons of the vendor or vendors;

THIRDLY, in the father's brothers or lather's brother's sons of the vendor or vendors;

FOURTHLY, in the other co-sharers;

FIFTHLY, in the tenants who hold under tenancy of the vendor or vendors the land or property sold or a part thereof;

(c) where the sale is of land or property owned jointly and is made by all the co-sharers jointly,

FIRST, in the sons or daughters or son's sons or daughters' sons of the vendors;

SECONDLY, in the brothers or brother's sons of the vendors;

THIRDLY, in the father's brothers or father's brother's sons of the vendors;

FOURTHLY, in the tenants who hold under tenancy of the vendors or any one of them the land or property sold or a part thereof.

(2) Notwithstanding anything contained in sub-section (1):

(a) where the sale is by a female of land or property to which she has succeeded through her father or brother or the sale in respect of such land or property is by the son or daughter of such female after inheritance, the right of pre-emption shall vest,

(i) if the sale is by such female, in her brother or brother's son;

(ii) if the sale is by the son or daughter of such female, in the mother's brothers or the mother's brother's sons of the vendor or vendors;

(b) where the sale is by a female of land or property to which she has succeeded through her husband, or through her son in case the son has inherited the land or property sold from his father, the right of pre-emption shall vest,

FIRST, in the son or daughter of such 22[husband of] the female,

SECONDLY, in the husband's brother or husband's brother's son of such female.

16. Person in whom right of preemption vests in an urban immovable property. 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.

17. Exercise of right of pre-emption where several persons equally entitled. Where several pre-emptors are found by the Court to be equally entitled to the right of preemption, the said right shall be exercised

(a) if they claim as co-sharers, in proportion among themselves to the shares they already hold in the land or property;

(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;

(c) and (d) 23[Omitted.]

(e) in any other case, by such pre-emptors in equal shares.

18. Provisions of sections 35 and 17 applicable to foreclosure mutatis mutandis. 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 foreclosure 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 adapt them to the matter before the Court.

Chapter-IV

19. Notice to pre-emptors. When any person proposes to sell any agricultural land or village immoveable property or urban immoveable property or to foreclose the right to redeem any village immoveable property or urban immoveable 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 stuck up on the chaupal or other public place of the village, town or place in which the land or property is situate.

20. Notice by pre-emptor to vendor. 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.

When the Court is satisfied that the said notice has been duly served on the vendor or mortgagee, the proceedings shall be filed.

21. 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.

24[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 preemptor-plaintiff in such suit.]

22. Plaintiff may be called on to make deposit or to file security. (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) In any appeal the Appellate Court may at any time exercise the powers conferred on a Court under sub-section (1).

(3) Every sum deposited or secured under sub-section (1) or (2) shall be available for the discharge of costs.

(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 (1) or (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.

(6) The estimate of the probable value made for the purpose of sub-section (1) shall not affect any decision sub-sequently come to as to what is the market value of the land or property.

23. Special conditions relating to sales of agricultural land. No decree shall be granted in a suit for preemption in respect of the sale of agricultural land until the plaintiff has satisfied the Court

(a) that the sale in respect of which pre-emption is claimed is not in contravention of the 25Punjab Alienation of Land Act, 1900 (XIII of 1900):

and

(b) that he is not debarred by the provisions of section 14 of this Act from exercising the right of pre-emption.

24. Procedure on determination of the said issues. In a suit for pre-emption in respect of a sale of agricultural land, if the Court finds that the sale is in contravention of the 26Punjab Alienation of Land Act, 1900, the Court shall dismiss the suit.

25. Fixing of price for purposes of suit in case of sales. (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) 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.

26. Fixing of price for purposes of suit in case of foreclosure. 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 as the price for the purposes of the suit the market value of the property.

27. Market value how to be determined. For the purpose of determining the market value, the Court may consider the following among other matters as evidence of such value:

(a) the price or value actually received or to be received by vendor from the vendee or the amount really due on the footing of the mortgage, as the case may be;

(b) the amount of interest included in such price, value or amount;

(c) the estimated amount of the average annual net assets of the land or property;

(d) the land revenue assessed upon the land or property;

(e) the value of similar land or property in the neighbourhood;

(f) the value of the land or property as shown by previous sales or mortgages.

28. Concurrent hearing of suits. 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 suits, and in deciding the suits the Court shall in each decree state the order in which each claimant is entitled to exercise his right.

27[28-A. Postponement of decision of pre-emption suits in certain cases. (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 liable 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) 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 pre-emption derived therefrom.]

29. Copy of decree to be sent to Deputy Commissioner; application for revision. (1) The Court shall send to the Deputy Commissioner a copy of every original decree granting preemption other than a decree granting pre-emption in respect of a building or a 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 28Punjab Alienation of Land Act, 1900 (XIII of 1900).

(2) No stamp shall be required upon such application, and the provisions of the 29Code of Civil Procedure (V of 1908) as regards appeals shall apply, as far as may be, to the procedure of the Appellate Court on receipt of such application.

(3) No appearance by or on behalf of the Deputy Commissioner shall be deemed necessary for the disposal of the application.

Chapter-V

30. Limitation. In any case not provided for by article 10 of the 30Second Schedule of the 31Indian Limitation Act, 1908 (IX of 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) in the case of a sale of agricultural land or of village immoveable 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 (XVII of 1887); or

from the date on which the vendee takes under the sale physical possession of any part of such land or property:

whichever date shall be the earlier;

(2) in the case of a foreclosure of the right to redeem village immovable property or urban immoveable property,

from the date on which the title of the mortgagee to the property becomes absolute:

(3) in the case of a sale of urban immoveable property, from the date on which the vendee takes under the sale physical possession of any part of the property.

32[31. Punjab Pre-emption (Amendment) Act, 1960 to apply to all suits. No court shall pass a decree in a suit for preemption 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.]

1. For Statement of Objects and Reasons, see Punjab Gazette, 1912, Part V, page 189, for Report of the Select Committee, see ibid, 1912, Part V, case 332, and for Proceedings in Council, see Punjab Gazette, 1912, Part V, pages 215-217 and ibid; 1913, page 23.

2. For Statement of Objects and Reasons, see Punjab Gazette, 1928, Part V, page 18.9, for Report of the Select Committee, see ibid, 1912 V, page 29, and for Proceedings in Council, see Punjab Legislative Council Debates, Volume XI, pages 31-51, and 894-95. It came into force on 1st December, 1928, vide Punjab Government Notification No. 5489 , dated 16th November, 1928.

3. For Statement of Objects and Reasons see Punjab Government Gazette, (Extraordinary), 1957, page 689.

4. For Statement of Objects and Reasons, see Punjab Government Gazette, (Extraordinary), 1959, page 993.

5. For Statement of Objects and Reasons, see Punjab Government Gazette, (Extraordinary), 1962, page 680.

6. Substituted for the words East Punjab (which had been inserted for the words The Punjab by the Indian Independence (Adaptation of Bengal and Punjab Acts) Order, 1948, by the Adaptation of Laws (Third Amendment) Order, 1951.

7. Substituted for East Punjab by Adaptation of Laws Order, 1950.

8. Unrepealed Central Acts, Volume V.

9. Repealed by the Adaptation of Laws (Third Amendment) Order, 1951.

10. Substituted for the word Provincial by the Adaptation of Laws Order, 1950.

11. Repealed by the Adaptation of Laws (Third Amendment) Order, 1951.

12. See Volume I.

13. Section 5 substituted by Punjab Act 10 of 1960, section 2.

14. Section 6 substituted by ibid, section 3.

15. Substituted for the word Provincial by the Adaptation of Laws Order, 1950.

16. Substituted for the word Provincial by the Adaptation of Laws Order, 1950.

17. Substituted for the word Crown by the Adaptation of Laws Order, 1950.

18. Unrepealed Central Act, Volume III.

19. Repealed by the Adaptation of Laws (Third Amendment) Order, 1951.

20. Unrepealed Central Acts, Volume V.

21. Sections 15 and 16 substituted by Punjab Act 10 of 1960, section 4.

22. Inserted by Punjab Act 13 of 1964, section 2.

23. Clauses (c) and (d) omitted by Punjab Act 10 of 1960, section 5.

24. Added by Punjab Act 1 of 1944, section 2. It applies to all suits or appeals pending on instituted after, the commencement of this Act.

25. Repealed by the Adaption of Laws (Third Amendment) Order, 1951.

26. Repealed by the Adaption of Laws (Third Amendment) Order, 1951.

27. Inserted by Punjab Act 2 of 1928, Section 2.

28. Repealed by the Adaptation of Laws (Third Amendment) 1951.

29. Act V of 1908. Unrepealed Central Act, Volume V.

30. (Sic.) Read First .

31. See now Limitation Act, 1963 (Act 36 of 1963).

32. Section 31 added by Punjab Act 10 of 1960, Section 6.