PUNJAB PRE-EMPTION ACT, 1913

S.1 Short title and local extent.

       (1) This Act may be called the Punjab Pre-emption Act, 1913.
       (2) It extends to 1[the territories specified in sub-section (1) of section 5 of the Punjab Re-organisation Act, 1966].
       1. Subs. by A.O.1968, for the word Punjab which was subs, for "East Punjab" by Adaptation of Laws Order, 1950.

S.2 Repeal of certain enactments.

       (1) The Punjab Pre-emption Act, 1905 is hereby repealed.
       (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, 18871 ;
       2[***]

       1. Repealed and replaced by H.P. Tenancy and Land Reforms Act, 1972 (8 of 1974).
       2. Omitted by A.O.1973.

S.3 Definitions.

       In this Act, unless a different intention appears from the subject or context, -
       (1) agricultural land shall mean land as defined in the Punjab Alienation of Land Act, 1900 1[as amended by Act 1 of 1907] but shall not include the rights of a mortgagee, whether usufructuary or not, in such land;
       (2) village immovable property shall mean immovable property within the limits of a village, other than agricultural land ;
       (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 town (a) if so declared by the 2[State Government] by notification in the Official Gazette, or(b) if so found by the Courts.
     &nbs

S.4 Right of pre-emption: application of.

       The right of pre-emption shall mean the right of a person 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 tie 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.

S.5 No right of pre-emption in certain cases.

       No right of pre-emption exists in respect of-
       (a) the sale of or foreclosure of a right to redeem-
       (i) a shop, serai or katra ;
       (ii) a dharamshala, 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].
       1. Subs. by Punjab Act No. 10 of 1960, Sec. 2.

S.6 Exists in agricultural land and village immovable property.

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].
1. Subs. by Punjab Act No. 10 of 1960, Sec. 3.

S.7 Exists under certain conditions in urban immovable property.

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 subdivision at the time of the commencement of this Act, and not otherwise.

S.8 State Government may exclude areas from pre-emption.

       (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) The 1[State Government] my 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 State Government
       may specify, shall exist.
       1. Subs. for the expression Central Government(which was subs, for "State Government" by A.0.1968) by A.O.1973. The word "State" was subs, for the word Provincial by Adaptation of Laws Order, 1950.

S.9 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 1[Government] or by or to any local authority or to any company under the provisions of Part VII of the Land Acquisition Act, 1894 2[ * * *].

       1. Sub. for the word crown" by Adaptation of Laws Order, 1950.
       2. The words "or in respect of any sale sanctioned by the Deputy Commissioner under section 3(2) of the Punjab Alienation of Land Act, 1900 (XIII of 1900)" by A.O.1973.

S.10 Party to alienation cannot claim pre-emption.

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

S.11 Sum deposited by the pre-emptor not to be attached.

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.

S.12 The law determining the right of pre-emption.

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.

S.13 Joint right of pre-emption how exercised.

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.

S.14 Limit of exercise of right in respect of land sold by member of an agricultural tribe.

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 Bribes as the vendor shall have a right of pre-emption in respect of agricultural land sold by a member of an agricultural tribe.

S.15 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 Hall vest-
       (a) where the sale is by a sole owner,-
       FIRST, in the son or daughter or sons son or daughters son of the vendor ;
       SECONDLY, in the brother or brothers son of the vendor ;
       THIRDLY, in the fathers brother or fathers brothers 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

Legal Commentary on Section 15 of the Punjab Pre-emption Act, 1913

Introduction

The Punjab Pre-emption Act, 1913 governs the right of pre-emption in respect of agricultural land and village immovable property in the State of Punjab and Haryana. Section 15 is the core provision that specifies the persons in whom the right of pre-emption vests. The section has undergone significant amendments, most notably by the Haryana Amendment Act No. 10 of 1995, which substantially curtailed the scope of pre-emption rights.

What Section 15 Says

Section 15 of the Punjab Pre-emption Act, 1913 deals with the right of pre-emption vesting in tenants. As substituted by Haryana Act 10 of 1995, the right of pre-emption in respect of sale of agricultural land and village immovable property shall vest in the tenant. [Source: ""]

Essential Ingredients

The essential elements for a claim under Section 15 include:

Tenancy Status: The claimant must establish that they are a tenant holding the land in question at the relevant time.
Continuous Possession: The right must subsist from the date of sale through the date of filing the suit and until the decree.
Sale Transaction: There must be a completed sale of agricultural land or village immovable property.
Pre-emption Money: The claimant must be ready and willing to deposit the pre-emption amount.

Scope of Section

Section 15 applies to agricultural land and village immovable property. The scope has been significantly narrowed by the 1995 amendment, which confined the right primarily to tenants, removing the earlier rights based on co-sharership and consanguinity. The provision is prospective in operation and does not affect rights that had accrued prior to the amendment.

Punishment under Section

Section 15 itself does not prescribe any punishment. It is a substantive provision conferring civil rights. Non-compliance with orders passed under this section may attract consequences such as dismissal of the suit or execution proceedings under the Civil Procedure Code, 1908, but no criminal punishment is provided under this section.

Legal Comments

Co-owner Estoppel - A co-owner who sells land to strangers cannot subsequently claim pre-emption rights against subsequent purchasers from those strangers, as the principle of estoppel applies. [Karan Singh VS Bhagwan Singh - 1996 1 Supreme 739]
Judicial Notice of Amendment - Courts can take judicial notice under Section 57 of the Evidence Act, 1872, of amendments to Section 15 during the pendency of an appeal, and if the amendment takes away the right of pre-emption, the suit must be dismissed. [Karan Singh VS Bhagwan Singh - 1996 1 Supreme 739] [Ramjilal VS Ghisa Ram - 1996 2 Supreme 542]
Joint Holding Right - Where land is jointly held in a joint Khewat and has not been partitioned, a sale of a specific portion by one co-owner is considered a sale of a share out of the joint holding, and other co-owners have the right to pre-empt under Section 15(1)(b). [Jai Singh VS Gurmej Singh - 2009 0 Supreme(SC) 65]
Prospective Amendment - The 1995 amendment to Section 15 is prospective in operation and cannot affect decrees passed in pre-emption suits that became final prior to the amendment. [Shanti Devi VS Hukum Chand - 1996 6 Supreme 622]
Final Decree Binding - Decrees that have become final are binding inter-parties, and the subsequent declaration of provisions as unconstitutional does not affect decrees that have attained finality. [Shanti Devi VS Hukum Chand - 1996 6 Supreme 622]
Tenant's Right Survives - Even after the 1995 amendment abolished co-sharer rights, a tenant's right of pre-emption remains viable, and in the absence of cogent evidence of surrender of tenancy or eviction, presumption of continuity of possession operates in favor of the tenant. [Mansu VS Shadi Ram - 1996 2 Supreme 491]
Partial Pre-emption Bar - A suit for pre-emption is not maintainable if the plaintiff is a tenant on only any part of the land sold, as partial pre-emption is not permitted. [Shanti Sarup VS Baldeva - 1985 0 Supreme(P&H) 651]
Step-Brother Exclusion - The term "brother" in Section 15(1)(a) does not include a step-brother, as the law of pre-emption is a piratical law and must be strictly construed. [Surjan Singh VS Harcharan Singh - 1967 0 Supreme(P&H) 15]
Tenant Eviction Effect - If a tenant's tenancy is terminated by a decree of eviction before the decree in the pre-emption suit, the tenant loses the superior right to pre-empt the sale. [Rehmat VS Sarab Khan - 2014 0 Supreme(P&H) 1406] [Bhagwan Dass VS Chet Ram - 1970 0 Supreme(SC) 436]
Continuous Right Requirement - The right of pre-emption must continue to exist from the date of sale to the date of the decree; a pre-emptor cannot improve his status after the date of sale. [Naurata VS Megh Raj - 1961 0 Supreme(P&H) 197]
Splitting of Bargain - Courts are not entitled to split up the bargain of sale for the benefit of the plaintiffs; a pre-emptor has the right to obtain possession of that part of the property to which his right extends on payment of proportionate price. [Sarwan Singh VS Tarsem Lal - 1972 0 Supreme(P&H) 29]
Co-sharer Right Upheld - If a person establishes co-sharer status on the date of sale, filing of suit, and decree, the suit for pre-emption must be decreed, and the right is mandatory, not discretionary. [Lilu Ram VS Sohni - 2007 0 Supreme(P&H) 1823]
Consanguinity Unconstitutional - The right of pre-emption granted on the basis of consanguinity has been declared ultra vires the Constitution as archaic and inconsistent with modern constitutional scheme. [Mahant Braham Dass Singh Pannu VS Om Parkash Chaudhary - 1994 0 Supreme(SC) 1317] [Bachan Singh (Dead) Through Lrs. VS Labh Singh - 2004 0 Supreme(P&H) 1108]
Half-Brother Inclusion - The term "brother" under Section 15 includes a half-brother born of the same father but different mother, as the ordinary and natural meaning of "brother" encompasses half-brothers. [JHANDA VS DHARAM DASS - 1968 0 Supreme(Del) 188]
Section 15(2) Overrides Section 15(1) - The provisions of Section 15(2) override Section 15(1); where a female sells property inherited from her father, the right of pre-emption vests in her brother or brother's son, not in a co-sharer. [Birjee VS Pirthi - 1972 0 Supreme(P&H) 155] [Karta Ram Mansa Ram VS Om Parkash Hirda Ram - 1970 0 Supreme(P&H) 178]
Personal Right Extinguishes on Death - The right of pre-emption is a personal right that dies with the person; however, if the pre-emptor dies after obtaining a decree, the decree becomes property of the estate and can be enforced by legal representatives. [Kanshi Ram VS Ram Krishan (Deceased By Lrs. ) - 1984 0 Supreme(P&H) 35]
Waiver and Res Judicata - An objection to a decree that is not raised in a timely manner may be deemed waived and become res judicata, making the decree final and binding. [Des Raj VS Vinod Kumar Lal Chand - 1970 0 Supreme(P&H) 35]
Amendment Relates Back - An amendment of pleadings introducing a new ground to support the relief relates back to the date of institution of the suit, and by introducing a new ground, the suit cannot become time-barred. [Prithi Pal Singh VS Amrik Singh - 2008 0 Supreme(P&H) 524]
Piratical Right Interpretation - The right of pre-emption being aggressive and piratical in nature must be strictly construed, and all legal means for defeating it can be resorted to by the vendee. [Fateh Singh VS Het Ram - 1995 0 Supreme(P&H) 206] [THOILU VS KRISHAN GOPAL - 1983 0 Supreme(HP) 58]
Executing Court Lack of Jurisdiction - An executing court has no jurisdiction to order restitution of property after decrees for pre-emption have become final and possession has been delivered, especially where the stay order had not become effective at the time of possession. [Khushi Mohd. (Minor Son) VS Mahabir Parshad - 1992 0 Supreme(P&H) 299]

S.16 Persons in whom right of pre-emption 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.

S.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 pre-emption, the said right shall be exercised:-
       (a) if they claim as co-sharer, 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 vendors decease without other heirs ;
       (c) & (d) 1[*****]
       (e) in any other case, by such pre-emptors in equal shares.
       1. Clause (c) and (d) omitted by Punjab Act No. 10 of 1950, sec. 5.

S.18 Provisions of sections 15 and 17 applicable to foreclosures 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 costrued 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.

S.19 Notice to Pre-emptors.

       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 stuck up on the chaupal or other public place of the village, town or place in which the land or property is situate.

S.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 tinder 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 fight 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.

S.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.

S.21(a) .

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

S.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

S.23 Special conditions relating to sales of agricultural land.

       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 -
       (a) that the sale of in respect of which pre-emption is claimed is not in contravention of the Punjab Alienation of Land Act, 19001 : and
       (b) that he is not debarred by the provisions of section 14 of this Act from exercising the right of pre-emption.
       1. Repealed by Adaptation of Laws (Third Amendment) Order, 1951

S.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 Punjab Alienation of Land Act, 19001, the Court shall dismiss the suit.
1. Repealed by Adaptation of Laws (Third Amendment) Order, 1951.

S.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 find if that the price was not go 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 t

S.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 mortgagee, 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 Hs 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.

S.27 "Market value" how to be determined.

       For the purpose of determining the market value, the court may consider the following among other Hatters as evidence of such value :-
       (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 ;
       (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

S.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 degree state the order in which each claimant is entitled to exercise his right.

S.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 of other immovable property, and the title to such land or property is liable to be defeated by the enforcement of 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 pf a right of pre-emption, the court shall disallow the claim or pleas based upon the fight of pre-emption derived therefrom.
       1. Ins. by Pun

S.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 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. 1[* * * *]
       (2) No stamp shall be required upon such application and the provisions 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) No appearance by or on behalf of the Deputy Commissioner shall be deemed necessary for the disposal of the application.

S.30 Limitation.

       In any case not provided for by article 10 of the Second Schedule of the 1[Limitation Act, 1963], 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 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, 18872 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 immovable property, from the date on which the title of the mortgag

S.31 Punjab Pre-emption (Amendment) Act, 1959, to apply to all suits.-

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, 1959, which is inconsistent with the provisions of the said Act].
1. Added by Punjab Act No. 10 of 1960, sec. 6.